Agenda item

To submit a report by the Head of Regulation and Economic Development.

Submitted – a report by the Head of Regulation and Economic Development on the Ynys Mȏn Levelling Up Programme for consideration by the Committee.

The Leader of the Council said that a bid submitted by the County Council was approved in January, 2023 for a sum of £17m within the Levelling Up Fund (LUF) Round 2.  She noted that out of the 529 bids that were submitted in the UK during Round 2, only 111 (20%) were successful.  This demonstrates that the bid submitted by the Anglesey was of a very high standard and more than fulfilled each of UK Government’s criteria and requirements.  During the assessment period it became apparent that only a bid focussing upon addressing Holyhead’s socio-economic needs would likely meet the UK Government’s specific requirements and have any opportunity of being approved.  A total of 5 projects were submitted in Holyhead which included Mȏn Communities First; the Town Council; the Church in Wales; Ucheldre Centre; and the Isle of Anglesey County Council – Heritage Regeneration.  She noted that the timescale for delivery are challenging with the £17m to be spent by March 2025.  The Leader wished to thank the staff of the Economic Development Service for their hard work in succeeding to secure the grant funding for Holyhead.

The Head of Regulation and Economic Development gave an insight into the preparation of the LUF bid to the UK Government.  He noted that the bid included a package of projects to increase employment, improve the town centre and visitor experience, increase the footfall and spending, provide modern floor space to meet business needs, and increase access to art, culture and leisure.   He further said that Holyhead has a number of commercial buildings that are empty and is increasing.  The Head of Regulation and Economic Development further said that only Holyhead had enough mature projects to be put forward for the LUF funding within the specific timetable.  He noted that it is the County Council’s responsibility for developing, submitting, managing and monitoring the programme of developments and it will be necessary for the Council and the Island to demonstrate that it is able to deliver the projects in a timely, cost effective and compliant manner.  A Partnership Board will be established to govern the delivery of the programme which will include Senior Officers of the Council and Portfolio Member for Economic Development.  

In considering the report the Committee discussed the following:-

·           Reference was made that the costs of building materials is continuing to increase.  Questions were raised as to what would happen if the funding of £17m is insufficient to complete the 5 successful bids in Holyhead? Questions were also raised as to where the funding would be targeted if there were underspending within the projects?

The Economic Development Manager responded that the risk of increasing building materials costs have been included in the programme delivery of the projects together with the increase in inflation.  Contingency measures have been included within the programme. Any underspend within one project will allow for resources to be available to fund the gap within other projects.  He addressed the question as to possible underspending within the programmes and said that other projects could be included as backup as long they add value to the programme. 

·           Questions were raised as to whether local companies on Anglesey will be able to contract for the work resulting from the successful bids?

The Economic Development Manager responded that local companies will be given an opportunity to contract for the work required within the successful bids.  However, due to the size advertisement of the contracts will have to be on the ‘Sell to Wales’ website and the North Wales Construction Framework.  He further said that a workshop has been put in place to ascertain the interest of constructions firms.   The Chief Executive said that due to the size of the developments it is hope that local companies will be able to be successful in contracting for the work rather than one large company contracting for the whole work on the 5 projects.

·           Questions were raised as to the risks that if the projects were not completed by the completion date of March 2025?

The Economic Development Manager responded that there are risks attached that the projects will not be completed by March 2025.  He said that the County Council is in the process of designing legal agreements with the five delivery organisations ensuring roles, responsibilities, governance arrangements, monitoring, performance, claims etc., are all outlined and agreed at the outset.  These will be based on the Memorandum of Understanding (MOU) by the UK Government.  At present a response is awaited by the UK Government to progress with these projects.  The Chair proposed that a letter be sent on behalf of the Committee to the UK Government to stress that the delay in receiving the MOU was putting pressure on the deliverability of the projects as the completion dates for the projects is March 2025.  The Committee agreed that a letter be sent to UK Government as noted above.

·           Questions were raised as to the economic strategy of the Council for industrial units within rural areas?

The Leader of the Council responded that no comparable grant funding stream is available to support rural areas and funding is being targeted towards the most populated areas.  She assured that continued pressure will be put on both the UK Government and Welsh Government for support for rural areas as regards to economic development. 

·           Questions were raised as to what extent does the Levelling Up programme as approved enable the Local Authority to realise the Council Plan for 2023-2028?

The Economic Development Manager responded by confirming that the Levelling Up programme does conform with the aims of the Council Plan.  The LUF programme brings regeneration opportunities and hopefully it will inspire residents to learn more about the history and culture resulting from the approved projects.  He further noted that climate change has been identified within each project and the Climate Change Manager has had input into every project.  

·           Reference was made that the Council does not have a direct delivery role within the LUF.  Questions were raised as to what arrangements are in place to manage the individual project to be successfully delivered?

The Economic Development Manager responded that a small LUF Team has been established which includes a Programme Manager and Project Assistant together with staff within the Finance Department who have experience in working with grant funding.  Resources have been included within the bid to for specialist advice.  Governance frameworks have been established with the input of the 151 Finance Officer and the legal department.

·           Reference was made that a Programme Board will be created to ensure robust governance measures are in place.  Questions were raised as to how it will be ensured that the representatives on the Programme Board will have the correct skills and experience to deal with the projects?

The Leader of the Council responded that the representatives on the Programme Board will include the Chief Executive, Section 151 Officer, Monitoring Officer, and Leader of the Council together with representatives from both the UK and Welsh Governments.  She noted that effective governance of the projects is essential for success. 

·           Reference was made that the town centres have seen deterioration due to out of town shops and people shopping on-line and there is a need for town centres to be vibrant for people to return to shop in the town centres.

The Leader of the Council said that it is important to change the town centres to address the needs of society.  She referred to the project bids and it is hoped that the needs of the younger population can be addressed with a dance school proposed at the old HSBC building together with an extension to the Empire Building for children’s play activities.  The Director of Education, Skills and Young People said that it is important that the voice of children and young people are important when such developments are proposed.  He noted that each school has a Schools Council and they discuss issues that are important to them.

It was RESOLVED:-

·           To note the progress in the development of the Levelling Up Fund bid;

·           To recognise the role of the Council in the development and submitted bid;

·           To support the delivery of the Levelling Up Fund (in line with agreed timescales, outputs etc.)

ACTION : As noted above.