Local Engagement Guide

COMBINED AUTHORITIES

LOCAL ENTERPRISE PARTNERSHIPS

BUSINESS IMPROVEMENT DISTRICTS

REGIONAL ENGINES

NAVIGATING DEVOLUTION OF POWERS in england

MAY 2016

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INTRODUCTION 03

Combined Authority (CA) Engagement 04

Local Enterprise Partnership (LEP) Engagement 06

Business Improvement District (BID) Engagement 08

Regional Engines 10

Appendix 11

Combined Authorities and Announced Powers within Devolution Deals 11

LEP Board Retail Representation 15

contents

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The British Retail Consortium (BRC) has consistently emphasised the importance of getting the framework of devolution right to ensure the Government’s plans for more balanced growth are achieved. Specifically, we have encouraged the Government to address each of the following priorities to ensure the benefits of devolution are realised:

• Minimise uncertainty by publishing devolution roadmap• Make use of evidence to ensure powers sit at the optimal level• Engage the business community• Consider additional local fiscal mechanisms• Clarify the role of Local Enterprise Partnerships• Ensure local capability is in place• Review and assess measures taken

English devolution comes with opportunities and challenges. These in turn generate a significant amount of uncertainty which needs to be minimised. We ask that any step to devolve decision making to the optimal level of government be based on evidence demonstrating economic benefits locally and nationally. Evidence should include assurances that the appropriate authority has the necessary capability to implement safeguards and engage the business community so that we can collectively achieve greater productivity and prosperity. Clarification of the present and future role of Local Enterprise Partnerships (LEPs), and a review process of devolution measures are also needed.

At the same time, the retail industry must do its part and engage positively with local government. The Government has clearly stated its ambition to devolve more powers to local government and retailers need to respond to this challenge by further developing plans for local engagement. This guide is designed to assist with this process by explaining the basics and the need for business engagement with Combined Authorities (CAs), LEPs and Business Improvement Districts (BIDs). It also outlines the benefits for retailers which result from local engagement.

Useful publications and resources

• City Deals and Growth Deals• Local Growth white paper, October 2010

introduction

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What’s a combined authority?

Combined authorities (CAs) can be established by two or more local authorities and take on transport and economic development functions, and any other functions the authorities agree to share. The powers of some combined authorities are currently being strengthened by devolution deals negotiated with central government and by the Cities and Local Government Devolution Act. The act for instance allows for directly elected mayors across CAs.

Intermediate Body (IB) status for European Regional Development Framework (ERDF) and European Social Fund (ESF) has now been agreed as part of devolution deals for Cornwall, Greater Manchester, Liverpool City Region, North East, Tees Valley, and consideration of how an IB could be established in the Sheffield City Region and the West Midlands is underway. IB status enables authorities to award contracts, pay claims and monitor performance in relation to European funding.

Combined Authorities with Devolution Deals

Please see details of devolution deal powers on pages 11-14.

Combined Authority (CA) Engagement

Devolution DealsApprox. Retail jobs (ONS, Business Register and Employment Survey, 2014)

business rates payable by retailers in 2015-16 (DCLG, National non-domestic rates collected by councils in England: forecast for 2016 to 2017)

Cornwall (single local authority) 26,000 £54 millionEast Anglia 114,000 £283 millionGreater Lincolnshire 50,000 £112 millionGreater London (covered by separate legislation) 413,000 £2,038 million

Greater Manchester 124,000 £348 millionLiverpool City Region 68,000 £153 millionNorth East Combined Authority 95,000 £195 million

Sheffield City Region 78,000 £184 millionTees Valley 31,000 £74 millionWest of England 52,000 £150 million

West Midlands 122,000 £317 million

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Why should retailers become involved?

The Government has stated its intent to give combined authorities and elected mayors further powers. For instance, government has said CAs with elected mayors should be able to raise a business rates supplement (likely to be up to 2p) to fund major infrastructure projects with the support of LEPs. Mayors will be likely to use their authority to outline a vision and strategy moving forward, and provide opportunities for business engagement to support growth.

Combined authorities may enable a more coherent approach on issues such as transport, licensing, health, waste and so on where local authority policies frequently vary substantially. Opportunities for several local authorities to pool resources together may have positive benefits including costs savings.

The fact the Government intends to broaden the powers of CAs may enable strategic planning to operate across council boundaries similar to the planning powers of the Greater London Authority (GLA). For instance, Greater Manchester is currently developing a town centre policy across the combined authority. Consistency in approach and clarity to avoid confusion creates confidence for investors and developers. On the whole strategic planning could be beneficial for breaking down silos within and between local government in addition to sharing limited resources more efficiently leading to better and more timely planning decisions.

How to become involved?

Engagement will vary from place to place, but will require the development of relationships with officials at each particular combined authority. Meeting with officials once per annum could be valuable in developing relationships for when an issue arises. Developing relationships with directly elected mayors can be particularly helpful in trying to minimise potential bureaucratic barriers. It would also be beneficial to be involved with LEPs which may be aligned with combined authority boundaries.

Useful publications and resources

• House of Commons Combined authorities briefing• Unleashing Metro Growth, City Growth Commission, October 2014• english devolution deals, national audit office, april 2016

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Local Enterprise Partnership (LEP) EngagementWhat’s a Local Enterprise Partnership?

Thirty-nine Local Enterprise Partnerships (LEPs) were established in 2010 across England following the coalition government’s abolition of Regional Development Agencies (RDAs). LEPs should be a partnership between local businesses and local authorities with the aim of promoting growth and job creation. However, in some cases there are questions about who leads them, for instance, whether in reality they are led by councillors and local authority officials. In some cases, LEPs have been the driving force behind devolution deals.

Activities of LEPs vary widely, and include:

• Applying for Local Growth funding• Developing Strategic Economic Plans (SEPs)• Applying for European funding• Proposing Enterprise Zones (EZs)• Assisting devolution deals

The Government has committed to a £12 billion Local Growth Fund between 2015-16 and 2020-21. The fund was agreed following the Heseltine No Stone Left Unturned review and places money for local growth under the direct control of LEPs.

Why should retailers become involved?

LEPs provide an opportunity for business engagement on commercially important issues; therefore, retailers should welcome the opportunity and work to become involved. For instance, the Government has announced LEPs will be involved in deciding whether a combined authority with an elected mayor is able to implement a business rates supplement (likely to be up to 2p for every £1 of business rates) to fund major infrastructure projects.

We are concerned that LEPs are not accountable and lack retail representation, therefore, a business ballot similar to that used to approve levies for Business Improvement Districts (BIDs) should be used instead. Only 6 out of 39 LEPs across England have a retail representative on their board. If retailers are not represented it is unlikely the views of retailers will be given serious consideration when strategic economic plans are being developed in the area.

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How to become involved?

There is not a standard process to become involved in the work of LEPs, and it will vary from place to place. Businesses with particularly large presences i.e. head office or a major distribution centre within a LEP boundary, may find it easier to become involved. Often an invitation to sit on a LEP board may come via personal invitation of a current board member or chairperson. However, it may be easier to become involved informally with the work of LEPs by identifying a particular senior team member to participate in working groups which may ultimately result in an invitation to join the board. A board member could expect to spend approximately one day each month working on LEP business and is seen as a personal development opportunity.

Please see LEP boundaries and retail industry representation on LEP boards on page 15.

Useful publications and resources

• Find your nearest LEP, lep network• No Stone Left Unturned, Lord Heseltine, October 2012

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What’s a Business Improvement District?

A BID is a business-led and business funded partnership formed to improve a defined commercial area. The majority of BIDs exist in town centres, but they are also found in industrial, commercial and mixed-use areas. A BID can only be formed following consultation and a ballot in which businesses vote on a BID Proposal or Business Plan for the area.

Why should retailers become involved?

UK retailers are responsible for approximately 40 per cent of BID levy income meaning retailers contribute more than £30 million to BIDs across the UK each year. The intentions of BIDs are based on their individual business plans approved by levy payers. Objectives often include measures to improve safety and security, improve accessibility and increase footfall, but are dependent upon the particular area and business needs.

Each potential levy payer within a proposed BID boundary has a vote to either support or oppose a proposed BID or one considered for renewal typically every five years. A successful BID requires the support of half of those hereditaments which vote, and half of the total rateable value within the proposed BID boundary.

Retailers and other levy payers are funding BID activities therefore they should help shape the BIDs’ objectives. For instance, some BIDs are beginning to actively explore participation in developing Business Neighbourhood Forums/Plans which would benefit from retail industry input. Where businesses fail to engage effectively with BIDs they will potentially be faced with increased cost of operating with no commensurate strengthening of trading performance.

Business Improvement District (BID) Engagement

2012 2013 2014 2015 2016

129150

179203 220Growth of BIDs

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MB

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F B

IDS

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How to become involved?

BIDs should actively engage with local managers and head offices, however, their first port of call may be local store managers which may or may not be the best contact depending on the level of engagement required. Retailers should ensure store personnel understand the benefits and are given the ability to properly engage. BIDs should also ensure relevant head office employees are kept up-to-date with BID priorities, but this will vary from company so there is some responsibility for the retailer to make clear to local BIDs what they expect in terms of communication and engagement.

Most BIDs have websites which include phone numbers and email addresses. As levy payers you are entitled to attend meetings and meet with BID officials. There may also be opportunities to sit on BID boards where the vast majority of members are private business representatives.

Engaged store managers may spend one to two hours each month engaging with their local BID team, whereas, head offices may engage less regularly until the BID is seeking renewal.

Useful publications and resources

• Guiding principles of a well-managed BID, British BIDs• BID Industry Criteria and Guidance 2015, British BIDs• List of known UK BIDs - December 2015, ATCM• bids map with contact details, atcm

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What’s the Northern Powerhouse and Midlands Engine?

The Northern Powerhouse and Midlands Engine mean different things to different people. There are no formal responsibilities or powers, and some have described the Northern Powerhouse as a concept, rather than an actual, physical thing.

The references are visions used by government and regional leaders attempting to build upon the areas’ strengths. The Northern Powerhouse roughly includes the North East, Sheffield City Region, Liverpool City Region. Leeds City Region, Greater Manchester and Humber building on the particular strengths of each area to help attract outside investment similar to what has taken place elsewhere such as the Randstad in the Netherlands and the Rhine-Ruhr in Germany.

The Midlands Engine is focused on advanced manufacturing and stretches from Wales to the North Sea and the northern Home Counties to the Peak District. In addition to better collaboration amongst 11 LEPs, universities, etc. the Midlands Engine aims to produce a regional branding proposition to attract outside investment. Both the Northern Powerhouse and Midlands Engine focus attention on improving connectivity and aim to exploit and build upon investments such as HS2.

Central government has helped establish investment packages for both the Northern Powerhouse and Midlands Engine. In the North there’s an agreement to create an investment fund of more than £400 million (with support from the British Business Bank and European Investment Fund). The Midlands is supported by a £5 million trade and investment package to promote the region overseas.

Why should retailers become involved?

Retail fulfils an important role in every community across the UK. Attracting investment to help achieve economic growth in these at-large regions could benefit the retail industry. However, engagement at the combined authority and LEP levels may be a more beneficial use of retailers’ time and resources.

How to become involved?

Opportunities to become involved will vary. The visions are led by regional steering groups largely made up of LEPs and regional leaders.

Useful publications and resources

• 'we need a northern powerhouse', chancellor of the exchequer, june 2014

• 'building a northern powerhouse', chancellor of the exchequer, may 2015

• The Northern Powerhouse: One Agenda, One Economy, One North• The Midlands Engine for Growth

Regional Engines

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Cornwall(SINGLE LOCAL AUTHORITY)

– Cornwall Council will have power over franchising bus services by 2018, Intermediate Body status for two European Union structural funds

– Cornwall and Isles of Scilly LEPs will work with the Government to re-shape further education training and learning provision for adults; integrate local and national business support services

– Cornwall Council, Council of the Isles of Scilly and local health organisations will produce a business plan for the integration of health and social care services

– Government will work with local partners to jointly develop new apprenticeship opportunities, invite proposals for a low carbon enterprise zone, improve efficiencies in the public estate, invite local partners to create a Cornish Heritage Environment Forum

Appendix

Combined Authorities and Announced Powers within Devolution Deals

Combined Authorities

Announced Powers within Devolution Deals

Further powers may be agreed over time and included in future legislation. For instance, it has been announced all CAs are to have the power to place a supplement on business rates up to a cap to fund infrastructure with the agreement of the LEP.

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East Anglia – Elected mayor will have responsibility for a local transport budget, a Key Route Network of local authority roads, powers over strategic planning and housing, including £175m (out to 20/21) ring-fenced funding to deliver new homes, a non-statutory spatial framework and chair The East Anglia Joint Assets Board for economic assets

– CA will control £30 million a year funding allocation over 30 years, responsibility for chairing an area-based review of 16+ skills provision, devolved 19+ adult skills funding from 2018/19

– CA and central government will co-design the National Work and Health Programme

Greater Lincolnshire

– Elected mayor will have responsibility for multi-year local transport budget, ability to franchise bus services, delivery of smart and integrated ticketing, oversight of a new Joint Investment and Assets Board, and ability to make proposals for Mayoral Development Corporations

– CA will control £15 million a year funding allocation over 30 years to be invested to boost growth, have responsibility for developing a strategic infrastructure delivery plan, chair an area-based review of 16+ skills provision, devolved 19+ adult skills funding from 2018/19, feed into the national design of the new Work and Health Programme

– The Government will work with CA to agree specific funding flexibilities with the aim to develop a single pot to invest in growth

Greater London (covered by separate legislation)

– The Greater London Authority (GLA) is a unique authority unlike any other in the UK. It consists of an elected mayor (holding executive power) and London Assembly (may amend the Mayor’s annual budget, or a Mayoral strategy, on a two-thirds majority

– Principal purposes include: promoting economic development, social development and the improvement of the environment

– GLA has authority over the London Fire and Emergency Planning Authority and Transport for London and general power of competence used to promote economic and social development and environmental improvements

– Further local retention of business rates will be piloted in 2017/18

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Greater Manchester

– Elected mayor will have power over a devolved and consolidated transport budget, responsibility for franchised bus services, integrated ticketing, strategic planning including a statutory spatial framework, control of £300 million Housing Investment Fund, a reformed earn back deal of £30 million a year for 30 years, role currently covered by the Police and Crime Commissioner

– CA will have responsibility for devolved business support budgets, and alongside Greater Manchester Clinical Commissioning Groups will be invited to develop a business plan for the integration of health and social care

– 100 per cent local retention of business rates will be piloted in 2017/18

Liverpool City Region

– Elected mayor will have power over transport budget, bus services, integrated ticketing, and planning powers over strategic planning including a Single Statutory City Region Framework, a Mayoral Development Corporation and with government a Land Commission and a Joint Assets Board for economic assets

– CA will have control of £30m a year funding, skills provision, adult skills, employment support and joint working with UKTI

– 100 per cent local retention of business rates will be piloted in 2017/18

North East Combined Authority

– Elected mayor will have power over transport budget, bus services, rail services, integrated ticketing and strategic planning framework including a North East Planning Development Framework and North East Land Commission

– CA will create North East Combined Authority Investment Fund, have control of £30m a year funding, joint responsibility for an Employment and Skills Board, skills provision, adult skills, employment support, business support, joint responsibility for rollout of broadband and increased responsibility for rural growth

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Sheffield City Region

– Elected mayor will have power over transport budget, bus services, integrated ticketing, key road network and strategic planning framework

– CA will have control of £30m a year funding, skills provision, adult skills, employment support and joint working with UKTI

Tees Valley – Elected mayor will have responsibility for consolidated transport budget, creation of new Mayoral Development Corporations and leadership of a land commission

– CA will create Tees Valley Investment Fund, have control of £15m a year funding, leadership of the comprehensive review and redesign of the education, skills and employment support and business support

West of England – Elected mayor will have power over local transport budget, ability to franchise bus services, responsibility for key route road network and powers over strategic planning, adopt a statutory spatial development

– CA will control £30 million a year funding allocation over 30 years for the West of England Single Investment Fund to boost growth, responsibility for the 19+ Adult Education Budget from 2018/19, and joint responsibility with the government to co-design the new National Work and Health Programme

– Government will work with CA on trade and investment services

West Midlands – Elected mayor will have power over transport budget, bus services, integrated ticketing, key road network and planning powers to drive housing delivery

– CA will have control of £36.5m a year funding, skills provision, adult skills, joint responsibility for employment support and integrated working on investment and trade

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25

347

39

18

2019

1522

3

32

8

12

28

14

21

638

36 1

26

31

13

24

17

227

11

3733

35

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304

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1. Black Country2. Buckinghamshire Thames Valley3. Cheshire & Warrington4. Coast to Capital5. Cornwall & the Isles of Scilly6. Coventry & Warwickshire7. Cumbria8. Derby, Derbyshire, Nottingham & Nottinghamshire9. Dorset10. Enterprise M311. Gfirst12. Greater Birmingham & Solihull13. Greater Cambridge & Peterborough14. Greater Lincolnshire15. Greater Manchester16. Heart of the South West17. Hertfordshire18. Humber19. Lancashire20. Leeds City Region21. Leicester & Leicestershire22. Liverpool City Region 23. London enterprise panel24. New Anglia25. North East 26. Northamptonshire27. Oxfordshire28. Sheffield City Region29. Solent30. South East31. South East Midlands32. Stoke-on-Trent & Staffordshire33. Swindon & Wiltshire34. Tees Valley35. Thames Valley Berkshire36. The Marches37. West of England38. Worcestershire39. York & North Yorkshire

LEP board retail representatioNupdated may 2016

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