Proposal for New Partnership Structure

APPENDIX 1 Report to:Hastings-Bexhill AIF Board

Date:9th August, 2005

Report from:Monica Adams-Acton

Title of Report:Proposed New Partnership Structure

Purpose of report:To set out the AIF Board working group’s proposal for a revised partnership structure.

Recommendations:It is recommended that

The AIF Board adopt the structure as proposed.

The structure be reviewed in early 2006 to ensure that it is fit for purpose in terms of the emerging Local Area Agreement, the outcome of a LEGI bid, and the Regional Economic Strategy.

The AIF partnership engages in dialogue with the LSPs and other key partnerships about coordinating the activities of the various sub-groups working on common themes.

1.Background

1.1.The Hastings-Bexhill AIF partnership structure was established in early 2004. It succeeded a working party of key stakeholders that had been formed to take a more strategic approach to identifying economic regeneration priorities and achieving closer alignment between SEEDA’s funding for economic development and the spending of other mainstream funds.

1.2.Earlier this year the AIF Board appointed a small group to work up a proposal for a revised structure that would enable the AIF structure to serve as a more effective vehicle for coordinating local economic regeneration and inclusion activity, and one that would also help to address the inefficiencies and duplication inherent in the existing multiple partnership structures across the area.

1.3.The group, consisting of representatives from Bexhill Regeneration Partnership, Hastings Borough Council, Hastings Regeneration Partnership, SEEDA, and Rother District Council, met a number of times and presented an outline proposal to the AIF Board at its meeting on 10th June. The AIF Board requested that the group work this proposal up in more detail.

2.Recent developments

2.1.Local Area Agreements

2.1.1.In June it was confirmed that East Sussex is included in the second round of Local Area Agreements(LAA). The three-year LAA gives local authorities and their partners the flexibility to find local solutions to local problems, and to prioritise spending to achieve the outcomes identified in a LAA. LAAs are to be taken forward by local authorities and Local Strategic Partnerships. In two-tier authorities there must be cooperation between the two tiers, as well as buy-in at the highest level from all partners to the LAA’s outcomes and targets.

2.1.2.The LAA is made up of outcomes, indicators and targets aimed at delivering a better quality of life for people through improving performance on a range of national and local priorities. The priorities are grouped around four blocks: Children and Young People, Safer and Stronger Communities, Healthier Communities and Older People, and Economic Development and Enterprise. LAAs must reflect priorities identified in Community Strategies, which in turn should be informed by the Local Neighbourhood Renewal Strategy (where relevant).

2.1.3.The objectives for the new 4th block – Economic Development and Enterprise – must address key drivers of the Government’s policy on economic growth and productivity: employment, enterprise, skills, innovation, investment and competition. Outcomes set out in this block should be made in the context of the Regional Economic Strategy and other sub-regional economic plans. The block also contains mandatory outcomes that apply to authorities that are successful in receiving support from the Local Enterprise Growth Initiative.

2.1.4.Areas in receipt of funding from the Neighbourhood Renewal Unit will have this funding pooled as part of the LAA. However, in two-tier areas such as East Sussex, where NRF is for a specific district, the funding must be directed from the County Council to the eligible district which must use the funding to help tackle deprivation in their most disadvantaged neighbourhoods.

2.2.Neighbourhood Renewal Fund

2.2.1.In July, the Government announced the next round of Neighbourhood Renewal Funding, for the years 2006-08. Hastings will continue to receive NRF allocations £1,574,148 in 2006-07 and a further £1,835,529 in 2007-08. Hastings is also eligible for funding through the new Neighbourhood Element of the Safer and Stronger Communities Fund.

2.2.2.It is important to note that a recent detailed GOSE inspection of the Hastings LSP structure revealed a clear concern that there is no partnership responsible for coordinating measures addressing economic priorities and monitoring the economic targets set out in Hastings Community Strategy. There are indications from GOSE that the Economic Alliance as proposed in this report would address this shortcoming.

2.3.Local Enterprise Growth Initiative

2.3.1.On 30th June, the Office of the Deputy Prime Minister announced a £10m fund to help local authorities in receipt of Neighbourhood Renewal Funding (NRF) to develop proposals for the Government’s new £300m Local Enterprise Growth Initiative (LEGI). The aim of the Local Enterprise Growth Initiative (LEGI) is to boost local incomes and employment opportunities in the most deprived local areas through enterprise and investment. Where Local Area Agreements exist the LEGI will be placed within the Economic Development and Enterprise block. As a recipient of NRF, Hastings is eligible to apply for LEGI support. A separate report covers LEGI in more detail.

3.Proposed revised structure

3.1.The following proposal has been developed by the working group in accordance with the AIF Board’s instructions and in the context of the above developments. While this structure is one that is aligned with local, regional and national priorities for partnership working, we are operating in a very dynamic and challenging environment, and further development of the RES, LAA, LEGI and NRF priorities will be taking place over the next few months. Further refinement and development of local partnership structures is likely to be necessary.

3.2.Proposed core structure and objectives

3.2.1.It is proposed that the current AIF Board be reformed as the Hastings and Bexhill Economic Alliance. The Alliance will carry out existing AIF responsibilities and serve as the vehicle to coordinate the development and implementation of all new economic regeneration and inclusion initiatives across Hastings and Bexhill. It is intended that the Alliance be a strategic body with the ability to lever in funding from a variety of mainstream and other sources to achieve economic prosperity and inclusion objectives. It will also be a tool for coordinating work on the Regional Economic Strategy and other regional plans affecting Hastings and Bexhill as they affect economic issues. The composition of the Alliance and the supporting structures will need to accord with these objectives.

3.2.2.The primary focus of the Economic Alliance will be economic regeneration and inclusion. In this context, inclusion means increasing the number of people who are economically active and the average income level of residents.

3.2.3.The membership and geographic remit of the Economic Alliance will be reviewed regularly in response to regional strategic developments and with a view to ensuring the remit of the partnership is in accordance with achieving local economic regeneration objectives.

3.2.4.In Hastings, the Alliance will nominate its chair or other representative to attend, along with other LSP theme groups, meetings of the Hastings Local Strategic Partnership.

3.2.5.The key functions (which are essentially the same as those for the existing AIF Board), will include:

Driving forward the strategic priorities for economic regeneration and economic inclusion across the area.

Facilitating the coordination of all economic regeneration funding.

Overseeing the development and delivery of all economic regeneration action plans across the area, excluding those administered through the Task Force.

Developing programmes which underpin the delivery of the objectives in, and actions arising from, the Hastings-Bexhill Task Force’s Five Point Plan.

Making decisions on funding for projects that have been appraised by the Project Appraisal Panel.

Coordinating the delivery and monitoring of economic targets contained within the Hastings Community Strategy.

3.3.Proposed Support/Advisory Groups

3.3.1.The four existing AIF theme groups will be adapted to become four Focus Groups, each concentrating on one of the following areas – Learning and Skills, Jobs & Business Growth, Economic Inclusion and Physical Regeneration. These Focus Groups will inform, advise and support the Economic Alliance. Whereas the role of the Economic Alliance is to agree the strategic direction and commission activity in support of this, the Focus Groups will play a key role in identifying problems and priorities for action. They will effectively drive the identification and development of projects that will deliver the solutions.

3.3.2.Membership of the Focus Groups will not be prescriptive, but will remain flexible to accommodate changing priorities and stakeholder involvement.

3.3.3.Currently, work is duplicated across a number of AIF and LSP theme groups. It is proposed that where the work of an Economic Alliance Focus Group cuts directly across LSP theme/priority group activity, these groups be merged into one Focus Group that will advise and serve the needs of both the Economic Alliance and the LSPs. This will help to reduce duplication of activity and encourage more integrated working across areas of common interest.

3.3.4.Where the Economic Alliance’s business plans address issues such as housing, health, crime/safety and community development, it is proposed that, in addition to the strategic input from the Alliance’s Economic Inclusion Focus Group, the Alliance seeks the input of relevant LSP theme groups.

3.3.5.It is proposed that the key aims of the Focus Groups be as follows:

3.3.5.1.Learning and Skills: Increase aspiration and educational attainment, encourage a culture of lifelong learning and ensure local people have the opportunity to acquire skills at any stage of their life cycle to achieve their potential.

3.3.5.2.Jobs and Business Growth: Promote business innovation and growth, increase employment opportunities for local people, raise average wage levels, and ensure an appropriately skilled local workforce.

3.3.5.3.Economic Inclusion: Remove barriers to employment and increase the number of people in Hastings and Bexhill who are economically active.

3.3.5.4.Physical Regeneration: Support the development of employment sites and ICT infrastructure, improve transport links and services, and promote urban development.

3.3.5.5.In addition to advising, supporting and making recommendations to the Economic Alliance and LSPs, other specific functions of each Focus Group will include:

Working with service providers to identify any gaps in service provision

Identifying investment priorities

Influencing the core programmes and mainstream funding of relevant statutory partners.

Consulting with all relevant partners and organisations within the field of the focus group, in particular those specialist groups already in existence in both Bexhill and Hastings.

Identifying appropriate projects or initiatives that will help address the strategic outcomes of the Economic Alliance’s Business and Action Plans

3.4.The current AIF Project Appraisal Panel will continue in essentially the same role as it currently has. Membership of the Panel will be at the discretion of the Economic Alliance. The Panel will support the objectives of the Economic Alliance by assessing projects identified by the Focus Groups. It will make recommendations on funding awards based on an objective assessment of how closely projects meet strategic economic regeneration and inclusion priorities, and in accordance with specific requirements of the funding body.

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