Posted on April 7, 2014Category: News
Negotiations will soon begin between the Humber LEP and the Government on the Humber’s Growth Deal proposals to get its share of the £2bn Local Growth Fund (LGF) for 2015/16.
The LEP’s Strategic Economic Plan (SEP), which aims to maximise the potential economic activity surrounding the Humber Estuary, was submitted to Government last week and builds on the ‘Plan for the Humber’ we published in 2012 and other work the LEP has done in partnership since then.
The SEP is accompanied by the LEP’s first investment and delivery plan which requests funding from Government to support projects and programmes put forward by organisations and local authorities in the Humber region that could further the area’s economic growth. The LEP will be competing against 38 other LEPs for the funding. This is on top of over £4bn of planned investments that the LEP has identified as coming into the Humber over the next six years.
The strategy’s ambition is to maximise the potential offered by the Humber Estuary, leading the Humber to become a renowned national and international centre for renewable energy and an area whose economy is resilient and competitive.
The strategy also looks to continue to develop our strengths in our other key sectors – Ports and Logistics, Chemicals, Engineering, Food, Visitor Economy, and Digital – supporting our businesses to grow and helping our residents to access the opportunities they need to lead prosperous and rewarding lives.
It aims to do this through five key enablers:
- Creating an Infrastructure that Supports Growth
- Supporting Businesses to Succeed
- A Great Place to Live and Visit
- A Skilled and Productive Workforce
- Flood Risk and Environmental Management
This is reflected in the 46 projects put forward for negotiation which range from business centres to flood alleviation with some examples below:
- The bridge over the A63 Castle Street
- Rail Electrification Hull to Selby
- Extending the LEP’s successful Growing the Humber grant programme
- Town centre improvement schemes across the Humber
- Cleethorpes North Promenade development
- Flood protection for Albert Dock and Lincolnshire Lakes
- Helicopter pilot training base and access improvements for Humberside Airport
- Expansion of training at CATCH
Only projects that would not be able to go ahead without LGF funding have been submitted in the bid. The LEP considered over 100 potential projects to put forward. A full list of projects that the LEP will be seeking to negotiate support for can be found in the summary document on our SEP page.
The projects put forward seek £62m of LGF in 2015/16 with £192m pledged from local public and private sector partners. The total initial funding request between 2015/16 and 2020/21 is £156m, with £938m being provided locally. There will be an opportunity to put forward more projects and programmes in later rounds.
With the LGF pot likely to be oversubscribed, negotiations with government will soon begin to secure the maximum amount for the Humber. The final “Growth Deal” is due to be concluded in July 2014.
If all projects in the plan were supported, the Local Growth Fund would unlock the following:
- Direct jobs 13,138
- Land serviced/ redeveloped 336.45ha
- New/redeveloped floorspace 125,900m2
- Floorspace with energy efficiency improvements 29,900m2
- Businesses engaged/assisted 1,950
- New dwellings brought back into use 5,971 units
- Dwellings with energy efficiency improvements 4,071 units
- Commercial property protected from flooding 258,250m2
- Private sector leverage £615m
- Private sector leverage ratio (per £ of competitive LGF) £3.93
- GVA uplift through job creation £5.9bn
- GVA uplift through qualification achievement £118m
Consultation has seen input from employers, the University, colleges, skills providers, organisations and local authorities.
Lord Haskins, Chair of the Humber LEP, said:
“This is an ambitious plan for realising the Humber’s potential over the next six years, particularly in our role as the Energy Estuary. We have some fantastic things going for us – land, location, skills and the opportunity to develop a new manufacturing sector – so our plan is all about making the most of those and growing our economy.
“With the progress we have all made together over the last few years, we are changing the perceptions of the Humber to a place that can deliver, can attract major investment and can be trusted to take decisions for itself. We are asking for Government to back us, as it has done so far, and where necessary invest resources alongside us to help us get things moving.
“We have shortlisted £1.1bn of projects that would make a real difference to the Humber over the next six years, with more than 85% of the funding in place from local partners. Over the coming years we will be seeking Government support to enable as many as possible to go ahead, starting in this round with projects planned for 2015/16.
“We have also identified over £4bn of investment already planned for the Humber over the next six years, which we will support where we can to overcome any issues.
“We would like to thank everyone who has worked with us on this and look forward to negotiating with Government to get the best result we can for our area.”
The Minister for Cities, the Rt Hon Greg Clark MP, said:
“The Government welcomes the Strategic Economic Plan that the Humber LEP has published today and looks forward to continued engagement with local civic and business leaders over the next few months on the negotiation of their Growth Deal.
“The Growth Deal provides a fantastic opportunity for Humber LEP to seek freedoms, flexibilities and influence over resources from government, and a share of the Local Growth Fund to put towards their the growth priorities set out in this Strategic Economic Plan. This provides the opportunity to unleash the ambition and creativity of Humber’s local leaders, by devolving resource and responsibility in return for compelling local economic leadership in pursuit of growth.”
Local Growth Minister Kris Hopkins said:
“We are committed to supporting local communities and that is why we gave local businesses and councils not just the money but the powers to drive their own economy.
“Local Enterprise Partnerships all across the country are boosting business, creating jobs and removing barriers to local growth in a far more effective way than Whitehall. The Growth Deals will put an extra £2 billion in the hands of local people and I am delighted to see the Humber putting forward their plans for growth.”
Councillor Stephen Parnaby OBE, leader of East Riding of Yorkshire Council, said:
“The council has welcomed the opportunity to be involved with the creation of the Humber Strategic Economic Plan and has strongly advocated for investment in transport infrastructure and measures to improve resilience against flooding, which are important priorities for our residents in the East Riding.
“As well as emphasising these areas, the council also hopes that, following the recent high-profile announcement by Siemens and Associated British Ports in committing to the £310m Green Port Hull development, the plan can help all communities in the East Riding to benefit from this emerging sector, in terms of employment and skills opportunities, and that the Humber begins to realise its ambition of becoming the UK’s hub for the renewable industry – the Energy Estuary.”
Leader of Hull City Council, Councillor Stephen Brady said:
“These are exciting times forHulland theHumber, and the Local Growth Fund will help deliver the maximum benefits possible over the coming years.
“The announcement by Siemens means we are well placed to deliver the Humber’s ambitions as an Energy Estuary, andHull’s to become the leading UK Energy City. Projects outlined within the Strategic Economic Plan will significantly enhance these ambitions, as well as our work planning for City of Culture 2017.
“Projects within the Strategic Economic Plan will help with the creation of new industries, new opportunities and new hope for young people inHulland theHumber.”
Councillor Chris Shaw, leader of North East Lincolnshire Council, said, “Our priorities in North East Lincolnshire are to grow a stronger economy and have stronger communities. We see that this plan for the wider Humber area will help us deliver on those priorities. We need to capitalise on our key and unique advantages, in partnership with the LEPs and the private sector, to create the right environment to foster growth and development across the borough.
“And I’m confident through this and other work, we can deliver a vibrant future for our communities and accelerate development in some of the Humber’s key industries to help us lead the way in renewable and other technologies.”
You can find the Summary Document, SEP, Investment and Delivery Plan on The Humber Strategic Economic Plan web page.