Agenda item

Report of the Corporate Director of Regeneration and Economic Development.

The Chairman thanked the Spatial Policy Team Leader, Regeneration and Economic Development, Maria Antoniou who was in attendance to give a update as regards the Combined Authority for the North East (for copy see file of minutes).

The Spatial Policy Team Leader reminded Members that the North East Combined Authority (NECA) had been established in April 2014 and the Leadership Board for the NECA comprised of the 6 Leaders and elected Mayor, from 7 North East Local Authorities together with the Chairman of the North East Local Enterprise Partnership (NELEP).  It was added that the Leader of Durham County Council, Councillor Simon Henig was the Chairman of the NECA. 

Councillors noted that the NECA had three broad areas of focus, namely: Transport; Employability and Inclusion; and Economic Development and Regeneration.

Members learned of the North East Growth Deal, which was announced in July 2014, which sets out funding allocation as regards Local Growth Fund (LGF).  It was explained that the North East had secured £289.3 Million, though an amount was “re-announcement”, with £110.7 Million “new” funding being allocated to transport, employability and infrastructure.

The Spatial Policy Team Leader noted that the Chancellor’s Autumn Statement had announced £1 Billion of Growth Fund monies, with the North East securing an additional £40.6 Million in January 2015.  It was noted that Durham’s allocation included projects such as: improvements at East Durham College at Houghall; Phase 3 works at NETPark; the Centre for Process Innovation (CPI); and power and road infrastructure works at the Newton Park site, adjacent to the Hitachi Site at Newton Aycliffe.  It was added that there were several projects across the County in rural areas and that there were also transport schemes in terms of both sustainability and infrastructure.  Councillors noted transport schemes included: works to Durham Rail Station; the re-announcement of the Rail Station for Horden/Peterlee; junction improvement works; and the infrastructure works for NETPark and the CPI as previously mentioned.

The Committee learned that the Leadership Board was supported by the “Transport North East Committee”, chaired by Councillor Nick Forbes, Leader of Newcastle City Council.  Members noted that a key theme among many Combined Authorities, in terms of transport, was to look to securing longer-term funding.  Councillors noted that funding from the Highways Agency had been secured for major works on the A1 and A19 and there was also ongoing improvement programmes in respect of public transport including: Nexus, in respect of the Metro; a Park and Ride scheme at Gateshead; and the rail station at Horden/Peterlee as previously mentioned.  Members noted that the NEAC had agreed that a Quality Contract Scheme (QCS) proposal should be submitted to an independent QCS Board, with the proposed scheme giving powers in respect of bus services.  It was explained that the NECA, together with the Association of North East Councils (ANEC), Rail North and the East Coast Mainline Authorities Consortium (ECMA) had been working to secure improvement to rail connectivity.  Councillors noted the long-campaigned for direct air link to the United States from the region, with the new route from Newcastle to New York running for a trial period from 23 May to 7 September this year.

The Spatial Policy Team Leader explained that unlike Transport, Employability and Inclusion did not have a formal Committee however the Lead Member for Employability and Inclusion, Councillor Grant Davey (Leader of Northumberland County Council) attended the North East Skills Board, which also included representatives from the Skills Funding Agency (SFA), Job Centre Plus (JCP) together with private and voluntary sector representatives.  Members learned of the case for devolution of Government powers was being developed which included functions and budgets in respect of welfare and employability which would allow the North East to tailor a framework to deliver welfare and employability support.  It was also highlighted that the NECA had secured a position as a “Mental Health and Employment Trailblazer” and was also involved in partnership arrangement to expand the number and range of apprenticeship opportunities via “The Apprenticeship Hub”.

It was explained that the Councillor Paul Watson, Leader of Sunderland City Council, was the Lead for Economic Development and Regeneration and while there was no formal Committee, Councillor P Watson and others from the NECA worked with the NELEP, including the NE Innovation Board and NE Business Support Board.  It was noted that the focus was on delivering against the Strategic Economic Plan, with an emphasis on: assets; infrastructure; inward investment; and business support. 

It was explained that work was ongoing in respect of: coordination of funds; having the right tools in place, such as a regional development plan; a one-stop-shop approach in respect of inward investment; and business support, mainly via the NELEP with links to the NECA and Local Authorities.  Members noted that Councillor S Henig, as Chairman of the NECA, had wrote to regional stakeholders and each Local Authority had contacted local stakeholders as regards consultation events setting out the proposals for devolved powers.  Councillors noted that the consultation event that would be held in Durham was scheduled for 17 March 2015, and that if the process was similar to that for the Greater Manchester City Region then the consultation process could last around 12 months.

The Chairman thanked the Spatial Policy Team Leader and asked Members for their questions on the report.

Councillor O Temple asked if a complete list of the projects benefiting from the Growth Deal could be obtained.  The Spatial Policy Team Leader explained that they were listed on the Government’s Growth Deal website, and details of how to access these could be circulated to Members.  Councillor E Adam asked what was meant by devolution of appropriate welfare and employability powers as set out at paragraph 21 of the report.  The Spatial Policy Team Leader explained that the Work Programme was a national, Government led scheme relating to getting people into employment, delivered locally by various agencies.  It was noted however, that there could be scope to have changes at a local level to be able to best match local needs, with co-design and co-commissioning.  It was highlighted that Scotland and the Greater Manchester City Region had been able to negotiate more tailored schemes.

Resolved:

(i)       That the report be noted.

(ii)      That the Economy and Enterprise Overview and Scrutiny Committee receive further          reports on the Combined Authority’s key activities at future meetings of the Committee.