Single Investment Fund Skills Capital Launch 14 December 2016

Transcription

1 Single Investment Fund Skills Capital Launch 14 December 2016

2 Welcome and Introduction Cllr Ian Maher Liverpool City Region Combined Authority Lead Portfolio Holder: Employment and Skills

3 Strategic Overview and Single Investment Fund Sue Jarvis Knowsley Council

4 The Liverpool City Region A 28bn and growing economy 1.5m people: 64% (970,000) of working age City Regions at heart of Government policy Combined Authority (2014), Devolution (2015), Elected City Region Mayor (2017) An ambitious agenda for growth Baseline higher, trend positive But not to underestimate the challenges

5 Labour Market Context More than 85% of residents live and work in the City Region Around 592,000 jobs in 47,500 workplaces Integrated and diverse labour market but earnings remain lower than national averages Employee / resident wages vary across City Region Residents more likely to travel further around and outside City Region for higher skilled / paid jobs Output lags European and Core Cities averages

6 35,556 more residents with some qualifications Skills Gaps with the rest of the Country are an issue 36,445 more residents with GCSE equivalent 665,600 73,939 more residents with A-Level equivalent 468,600 79,638 more residents with Degree equivalent 262, ,200 No qualifications NVQ2+ NVQ3+ NVQ4+

7 Underpinning Challenges Enhancing links between business and education / training Improving careers education and information, advice and guidance Making it easier for business to invest in workforce skills Promoting progression of individuals Tackling long-term worklessness

8 Skills for Growth

9 Generic Skills Priorities Digital skills Sector-specific technical skills Underpinning skills (literacy, communication, team working) Project management Science, technology and mathematics Leadership and management Customer service Practical logistics Plus industry-specific priorities in growth sectors

10 Commissioned Projects: Skills Capital Investment to c. 21.5m committed to 33 projects, across all 7 City Region economic growth sectors c. 12m of co-investment Including 8 major refurbishment/new build projects (+ 3 in due diligence) Date Outputs (forecast by 2020): 3,705 new classroom learners 2,218 Apprenticeships 22,527m2 of new and improved learner floor space 10

11 Skills Capital Example Wirral STEM Centre 2.0m towards a major refurbishment to create a STEM Centre at Wirral Met. College in Birkenhead High VFM (i.e. would have been 12m to do as a new build project) Includes support for laboratory facilities for higher level Apprenticeships (inc. for Unilever and local SMEs) Other curriculum areas supported include digital and manufacturing engineering 11

12 Skills Capital Example Northern Logistics Academy 1.38m for logistic skills training facilities across 2 Colleges (St Helens & Knowsley) Simulated distribution, warehouse and traffic control environments Comprehensive learning environments (from the initial receipt of goods to storage, picking, packing and despatch) Forklift truck training and HGV operations Project design and on-going curriculum support from employers inc. Jungheinrich, Asda, Bibby Distribution and Matalan 12

13 And many others including Advanced Manufacturing (Riverside College, Southport College) Digital and Creative (City of Liverpool College) Low Carbon Energy including construction (North Liverpool Regeneration Co. / multiple) Maritime and Logistics (the Engineering College, Hugh Baird College) Visitor Economy (multiple) Health and Life Sciences (City of Liverpool College, Myerscough College, Wirral Met. College) 13

14 Moving Forward: Our Strategic Approach

15 Single Growth Strategy Productivity Building on Our Sector Strengths Growing Successful Businesses People Attracting, Nurturing and Retaining Talent Employer led skills interventions Place Improving our physical & digital connectivity Enhancing and protecting our quality of place Upgrade and Rebalance Housing

16 Strategic Sector Investment Areas Chemical Cluster/FMCG Widnes Waterfront 2. Knowsley Industrial Park & Stonebridge 3. Knowsley Culture Quarter 4. Liverpool City Centre 5. Liverpool Knowledge Quarter UEZ 6. Liverpool Waters EZ 7. Liverpool, Halton & Knowsley Advanced Manufacturing Corridor 8. Maritime Corridor 9. Parkside and Haydock 10. Sci Tech Daresbury EZ 11. Southport 12. Wirral Waters EZ and Energy Waterfront 13. Knowsley and St Helens Housing & Employment Growth Point 14. Edge Lane Digital Zone

17 LCR Single Investment Fund (SIF) 250m over 5 years (to 2020/21) secured via the City Region s Devolution Agreement 150m of this expected to be invested in the next 3 years Builds on the Local Growth Fund process - multi-themed and designed to enable economic growth to be achieved in an integrated way Covered (in Round 1): Business support and development; inward investment; sector development; R&D and innovation; transport and infrastructure; housing and Round 1a: Skills Capital only Skills revenue support (primarily the Adult Education Budget) will be commissioned separately 17

18 New commissioning round 14/12/16, with successful projects likely to commence from Summer 2017 onwards. SIF funding will support the following areas: a) New technical skills pathways (new build and refurbishment projects). Specialisation opportunities include construction technology and aviation b) Priority sector improvements e.g. specialist high cost equipment for learners SIF - Skills Capital Framework c) Improving diversity and the life chances e.g. through improved training environments for those with Special Education Needs and those furthest from the labour market 18

19 Prospectus of Requirements Karon Brownbill City Region Employment & Skills Team

20 What I will cover: Application Conditions Appraisal Conditions Eligibility Skills Capital Investment Framework New Technical Skills Pathways Sector Improvements Improving Diversity and Life Chances Applications Stages & Submission timeline 20

21 Application Conditions The SIF will fund projects requesting a minimum of 250,000, but smaller projects can be combined to form packages or programmes Opportunity for partnership applications between employers and further education providers and consortia applications from training provider bodies or local authorities (must be legally able to enter into a contract on behalf of all the named partners) 2 or 3 Stage process stage 2 & 3 combined for projects less than 3m Upfront and non refundable fee from Stage 2 onwards to cover due diligence (appraisal, legal and financial costs) Provision for repayable loans (where appropriate) as well as grants per the overall SIF programme (and to follow the same principles and processes) 21

22 Application Conditions (2) One application form (Strategic Outline Case) per each skills capital project under area (a) Technical Skills Pathways For areas (b) Sector Improvements and (c) Improving Learner Opportunities one application (Strategic Outline Case) per each project or package of linked activities A single organisation can submit more than one application i.e. if they have multiple projects they are seeking funding for The process is competitive and demand is likely to exceed the available funding Round 1a submission deadline: Noon, Wednesday 25 January

23 Appraisal Conditions All applications subject to appraisal by independent consultants to HM Treasury Green Book Standards Preference will be given to proposals that provide value for money and lever additional private sector investment into the Liverpool City Region (assessed via the independent appraisal process) Scoring criteria will prioritise projects that clearly demonstrate evidence of employer support / joint partnership projects Each project will be assessed using the standard SIF appraisal criteria (i.e. a 5 business case model) and governance process, with the addition for skills capital applications of an educational case appraisal Governance - Appraisal and decision making processes compliant with the Liverpool City Region SIF Assurance Framework with Government In addition a prioritisation process will take place across all themes at SIF programme level 23

24 Eligibility The SIF Skills Capital theme is open to applications from the following organisations: General FE Colleges Sixth Form Colleges Employer Providers who offer apprenticeships and other training provision to staff and supply chains (including SME s) through their own provision Group Training Associations (providers led by a board of employers); Universities (who deliver or plan to deliver Higher and Degree Apprenticeships as a key part of their project) Skills Funding Agency (SFA) registered voluntary and community sector training organisations and social enterprises; (via the Register of training organisations or Register of Apprenticeship training providers) SFA registered Community learning providers including Local Authorities Other Skills Funding Agency approved training providers 24

25 Technical Skills Pathways For new build/major refurbishment to deliver L3+ (roughly A-Level equivalent) technical skills capabilities. To support specialisation based on identified gaps: Catapult Centre Model(s) e.g. to support skills training for sensor and low carbon engineering technologies to be accelerated within businesses Construction Technology Centre to support skills training for new build construction technologies and industry specialists Aviation College could include pilot training, aviation management, air traffic control, fire and rescue and ground operations (aligned to local Airport needs & impact on wider sector ) 25

26 Investment Principles Case for investment must be compelling with clear evidence of sustainable revenue funding for the project Employer engagement & support must be evidenced and joint partnership applications between employers and providers are welcome Single or consortia/partnership applications will need a named lead applicant Projects can be single or multi site within the Liverpool City Region Projects must offer high value added & be complementary to existing skills provision Looking to approve one application per specified project type (e.g. one Construction Technology Centre, one Aviation College) 26

27 For STEM, priority sector and other high volume employment sectors. To support: Equipment - Specialist high cost equipment purchase Learning environment - raising the standards of learning environments to improve progression opportunities to further learning and employment incl. degree apprenticeships New low carbon technologies - improvements to building energy management of learning facilities Higher Education (HE) within Further Education - capital support to enable greater volumes of learners and a broader curriculum New year old learner pathways to priority sectors - incl. real workshop environments Sector Improvements 27

28 Investment Principles Aim is to extend and improve the existing quality of learner pathways (onto further learning and relevant employment) rather than to enable providers to enter into completely new areas of provision Successful projects will provide the skills employers need but can t currently obtain in sufficient quantity/quality Development of Degree Apprenticeship opportunities through employer partnership and provider consortia applications welcome Must demonstrate how the capital investment will unlock genuine curriculum innovation and improve the quality of delivery (e.g. in the use of industry standard equipment or real work environments for the successful retention, application and achievement of vocational skills by learners) Proposals should not be for general maintenance or improvement to the Further Education or other applicant s estate (other than to reduce the carbon footprint) or be for generic improvements across a wide range of sector subject areas 28

29 Improving Learner Opportunities To support diversity and life chances (via premises adaptation and/or equipment purchase) Focus on specific groups of learners e.g. NEETs, BAME groups, learners with learning difficulties and disabilities (LLDD) and those with Special Educational Needs (SEN) English, Maths and Digital learning upgrades Equipment to improve the building energy management of learning facilities (including for energy generation/storage) Facilities to widen the accessibility and quality of employment provision 29

30 Investment Principles Enhancing choice, increasing learner volumes and positive outcomes including employment or progression to further learning for a diverse group of learners Minimum of 250,000 of SIF investment still applies, but consortia applications welcome (subject to eligibility) Projects can be packaged to benefit one or multiple groups of learners and at one or more sites Improve curriculum accessibility and quality of the learning environment for unemployed adults, NEET, BAME, LLDD and SEN groups 30

31 Application Stages 2 or 3 Stage application process (depending on funding level): Stage 1 Strategic Outline Case (SOC) (all applicants will need to complete this stage initially) Stage 2 Outline Business Case (OBC) (for projects invited to proceed from SOC stage) Stage 3 Full Business Case (FBC) (only for those projects seeking over 3m of SIF Funding and having already passed OBC stage) Stage 2/3 Combined (OBC/FBC) NB for projects seeking less than 3m of SIF Funding, Stage 2/3 will be combined to reduce investment decision timelines Round 1a is inviting Strategic Outline Case applications only at this stage (titled Stage 1) under the sub-themes of A) C) - The application process uses a proportionate approach, with greater levels of detail sought as the project is developed through each stage 31

32 Application Process John Corish City Region Employment & Skills Team

33 Purpose of the Strategic Outline Case (SOC) To proceed to the OBC stage, the project will need to demonstrate using a 5 business case approach: a strong fit with the strategic objectives of the Growth Strategy, SIF Skills Capital Prospectus and other policies that it delivers Value for Money and additional GVA / jobs need / demand for the intervention need for investment support the availability of matched funding appropriate management and delivery arrangements compliance with necessary regulations and requirements To demonstrate the above, please complete all the questions on the SOC form carefully... 33

34 Basic Project Information 34

35 Pt 1 - Strategic Case The strategic case should provides a compelling case for change and explain how the project provides fit with the objectives of the organisation and wider partner agendas 7 questions to complete This is the main opportunity to provide a clear narrative of your project idea and its likely impact Avoid unnecessary jargon / repetition The appraiser team will be looking for evidence of strategic fit with the Growth Strategy, SIF skills capital prospectus and other local and national policies Avoid pasting large blocks of text from other strategic documents into your question responses Instead, focus on how your project will align / deliver on national and local priorities and objectives 35

36 Pt 1 - Strategic Case Q s Please provide a brief description of the project (of approx. 750 words) If this project sits within a wider programme or package of investments or is linked to other projects, please provide details of the programme, package or other projects and the role that this project plays. (approx. 150 words) Which of the Liverpool City Region Growth Strategy objectives does this project address and how? (approx. 100 words) How will this project contribute to achieving the key investment priorities of the SIF Skills Capital Prospectus? (approx. 150 words) Which other local and national strategies will the project contribute to and how? (approx. 300 words) Please provide evidence of need or demand for the project with reference to market failure and the rationale for intervention (approx. 300 words) Please explain what barriers/problems the project will address and/or the opportunities it will unlock. (approx. 300 words) 36

37 Pt 2 - Economic Case The economic case should describe how the project/preferred option represents best public value 6 questions to complete Options generation / testing Evidence of relevant outcomes / impacts Outputs tables Wider benefits / additionality and displacement Cost per output with reference to VFM / quality 37

38 Pt 2 - Economic Case Q s What other options have been considered in selecting the proposed project? How has this project been developed to achieve the best set of outcomes that it can? What evidence has been used? (approx. 300 words) What are the main outcomes/impacts that the project is expected to generate? (approx. 500 words) Expected tangible outputs (separate tables) Please explain the other wider benefits (including social and environmental effects) that the project will generate (approx. 250 words). Please demonstrate that the benefits of the project are additional, i.e. that the intervention does not simply displace other existing activity or would have been smaller or of a lower quality and what consultation has taken place to ensure this is the case? (approx. 250 words). Explain how the intervention will ensure that inputs are at a minimum cost given the required quality. (approx. 150 words) 38

39 Pt 2 - Economic Case Tables Outputs Table (SOC Form): Learner floor space outputs Jobs and employment support output Summary learner outputs Recording up to 2021/22 Learner Benefits (separate excel sheet): Key part of the SOC for Skills Capital To give detailed additional learner outputs (split by funding source/learner group) Tabs for A-C Ensure tallies to the total learner benefits in Q10 39

40 Pt 3 Commercial Case The commercial case section (of 3 questions) is designed to give the Combined Authority confidence in the deliverability of your project To set out the management systems / experience in place to deliver the project Asks for evidence of relevant compliance (with regard to state aid, legal and planning etc. issues) On state aid, while we don t insist on a solicitors letter at SOC stage, we d welcome one if you do have it. Equally, it isn t sufficient just to say no state aid issues though If your project is endorsed at SOC stage, we would expect a solicitors letter stating compliance with state aid to be submitted as part of the OBC or combined OBC/FBC process (& which the CA can also place reliance upon) 40

41 Pt 3 Commercial Case Q s Please demonstrate that appropriate capacity, capability, systems and expertise will be available to deliver the intervention successfully. (approx. 300 words) Please demonstrate that procurement on this project will comply with public procurement requirements. (approx. 100 words) Please indicate how your project complies with the necessary regulations and requirements with regard to state aid, legal and planning and other consents: (approx. 200 words) 41

42 Pt 4 Financial Case The financial case this should confirm that the proposed spend is affordable and represents good value for money 7 questions Remember - SIF support under 1a is for capital funding only CA s approach to loans under the SIF is evolving. For now, it is about placing a marker down. NB the CA Investment Team will work with projects endorsed at SOC stage to negotiate in more detail how to structure any funding proposal prior to Stage 2 and 3 Clearly evidence the source of match funding (e.g. cash reserves / loan finance etc.) The additional equipment cost breakdown table (Tab C of the excel sheet with the application pack) should also be completed to help the appraisers understand what equipment items SIF support it sought for (and this should tally back to the overall Financial Case in the SOC form) 42

43 Pt 4 Financial Case Q s Project funding tables (x2) Please explain why public funding is necessary, for example, due to a funding gap (approx. 200 words). Please provide a development appraisal for commercial projects, with summary assumptions/evidence and programme How will you ensure there is a return or repayment to the SIF and over what timeframe? (approx. 300 words) How will the project, and provision of SIF support, ensure that private sector investment is maximised? (approx. 200 words) Please explain what arrangements have been made to secure the required level of matched funding (if applicable). To include: name of the organisation providing the match, together with evidence such as a letter of comfort from a lender, draft development agreement or letter of intent. (approx. 200 words) Please demonstrate that there is sufficient capability to meet the financial requirements and liabilities that flow from receipt of SIF support (e.g. to fund cash flow ahead of grant and to meet any cost overruns). (approx. 200 words) 43

44 Pt 5 Management Case The management case to confirm that what is required from all parties is achievable Indicative timescales (please be realistic by allowing for an element of slippage while mitigating avoidable risk to keep the project to a tight timescale) List the project risks and how you will mitigate them (more than just we may not get the funding ) 44

45 Pt 5 Management Case Q s Please insert the indicative timescales for the key project milestones [in the table on the form] What are the top 5 risks of your preferred option? [complete in the table on the form] Please list any other significant constraints and/or dependencies to delivering the project not mentioned above? (approx. 200 words) Please demonstrate that the project is deliverable having regard to these risks and dependencies. (approx. 300 words) 45

46 Declaration and Submission Finally Help - FAQ section on the website Submit the application in good time and at the latest by: 12 Noon on Wednesday 25 January 2016 Via to: sif@liverpoolcityregion-ca.gov.uk. Applications received after this time and date will not be considered. Don t forget to sign the form (Chief Exec or Principal) Complete and return the accompanying application checklist (included in the application pack to assist you) 46

47 Questions?

48 Employer Perspective Kate Willard LCR LEP & Stobart Group

49 Next Steps & Close Sue Jarvis Knowsley Council

50 Application Milestones Next Steps Timeline & Key Dates Skills Capital Fund Opens Paperwork to go live 15/12/16 STAGE 1: Skills Capital Strategic Outline Case (SOC) submission deadline Deadline: By noon on Wednesday 25 January 2017 (via SIF in-box Assessment Process Jan 2017 March 2017 SOC Decision (Reject / Return / Endorse) For endorsed projects - OBC (STAGE 2) or Combined OBC/FBC (STAGE 2 & 3 combined) Development OBC or Combined OBC/FBC submission deadline OBC/FBC funding decision Commencement of works March 2017 March 2017 April 2017 TBC June 2017 indicative From Summer 2017 ( indicative and subject to contract) 50