MD2692 Getting Building Fund allocation for London

1.1. The Government is making available £900 million through its Getting Building Fund to deliver jobs, skills and infrastructure across the country. They state that this investment is being targeted in areas facing the biggest economic challenges as a result of the COVID-19 pandemic. It is supporting the delivery of shovel-ready infrastructure projects, agreed with mayors and Local Enterprise Partnerships to boost economic growth, and fuel local recovery and jobs.

1.2. In June 2020 the Mayor of London responded to the invitation by the Secretary of State for Housing, Communities and Local Government to come forward with ideas to accelerate existing capital projects and propose additional shovel-ready projects to stimulate economic activity over the next 18 months. The GLA, working with London Councils and London’s local authorities, coordinated a submission of proposed investments that represent a range of spatial and sectoral priorities across London. These proposed investments specifically aim to drive a green recovery, support town centre and high street renewal, grow cultural infrastructure, and augment investment in infrastructure, skills and the wider innovation ecosystem.

1.3. In August 2020 the Mayor of London was allocated £22.1 million from the Getting Building Fund for a package of proposed investments to boost the local economy, regenerating key areas across the city, supporting businesses and creating new jobs.

1.4. Proposals were assessed by the Government against a number of criteria including deliverability, outputs, value for money and strategic fit. A full list of the selection criteria is provided in Appendix B to this report. The successful projects to be delivered through the Getting Building Fund allocation for London build on local priorities and existing GLA projects and programmes. They include:
• the Good Growth Fund Accelerator to support recovery and regeneration of town centres and improve high streets;
• the delivery of two large-scale film and TV studios projects to help develop world-class cultural production infrastructure as part of the Thames Estuary Production Corridor; and
• Outer London Full Fibre Funding to improve digital connectivity in areas currently not met by the market, prioritising areas of high employment density.

1.5. Existing GLA projects and programmes underpinning these projects are:
Good Growth Fund (MD2163, DD2222, DD2302, DD2352, DD2455)

1.6. The Good Growth Fund (GGF) is an overarching regeneration programme delivered through the London Enterprise Action Partnership (LEAP), the Local Enterprise Partnership for London. It provides funding to a broad range of public, private and third-sector organisations to support their projects to deliver against three strategic themes: Empowering People, Making Better Paces and Growing Prosperity. Since 2017 more than £75 million of grant funding has been awarded to help realise 138 innovative regeneration projects in 30 London boroughs. Through the Good Growth Fund, the GLA has insight into existing projects across London and maintains a reserve list of projects that could be supported subject to additional funding becoming available. In response to government’s call for shovel ready projects in June 2020, the GLA reviewed existing GGF projects and reserve projects, to identify those most aligned with the criteria of the Getting Building Fund including ability to deliver within tight timelines. In generating a shortlist, the GLA cross referenced GGF projects with borough priorities to maximise alignment.
Culture and Creative Industries 2020-21 (MD2632, MD2668)

1.7. Culture and the creative industries in London were worth £58 billion a year prior to the COVID-19 pandemic and accounted for one in six jobs in the capital, as well as delivering health, education and wellbeing benefits for communities throughout London. The Mayor’s culture and creative industries programme has been designed to mitigate against the impacts of the pandemic, prioritising activities that support the sector in the short term, whilst laying down foundations for longer term recovery and growth. The existing approvals include the receipt of £350,000 grant funding from the Ministry of Housing, Communities and Local Government (MHCLG) to develop the Thames Estuary Production Corridor vision which builds on the area’s manufacturing legacy to develop a series of large scale, state-of-the-art production centres. These will promote innovation and increase productivity, deliver local jobs and skills development and support the rapid growth of the creative economy.
Funding for Full Fibre Connections (MD2530)

1.8. The Connected London work programme provides grant funding dedicated to digital infrastructure in London. The Mayor has committed (MD2530) to £10m funding from the GLA’s Strategic Investment Fund (SIF) for the Connected London Full Fibre Network making use of public sector property to make surrounding areas more commercially viable by funding connections and using TfL assets. An additional £1m has been allocated to London’s sub-regional partners to address coordination challenges and support collaborative working and knowledge exchange. This GLA investment is complemented by the Strategic Investment Pool (SIP) funding to West London Alliance and Local London which each received £7.7m; and the Local Full Fibre Network Challenge Fund which secured £8.5m for eight local authorities.

• 2.1 The package of proposals is developed on the principles of ‘good growth’ and investment in London’s future in the wake of the COVID-19 pandemic. This includes further developing London’s strengths in innovation by encouraging collaboration across sectors, fostering entrepreneurial skills, and providing support for innovative initiatives.
• 2.2 The proposed investments to be delivered with London’s allocation of the Getting Building Fund are:
• Good Growth Fund Accelerator: High streets and town centres are subject to an economic restructuring brought about by shifting consumer behaviour, the changing nature of work, reduced local authority resources and the climate emergency. This has been accelerated by the pandemic. The Good Growth Fund Accelerator will provide grant funding to London boroughs to support delivery of nine projects, spanning London. The projects will be delivered in partnership with local organisations. The grant funding will be used to support recovery, regenerate town centres and improve high streets by enhancing the public realm and creating a diverse range of workspaces; creative hubs for fashion, art, performance space and production; small scale manufacturing; and market hubs. The projects will also provide sustainable travel solutions by improving walking and cycling facilities. Seven out of the nine selected projects were borough priority bids to the Getting Building Fund. Others were identified for their potential to deliver significant impacts for local communities and economies. and their ability to deliver recovery activities at pace.
• Thames Estuary Production Corridor: London’s culture and creative industries have been the hardest and earliest hit sectors by COVID19 but the demand for film and TV studios remains high and the industry will play an important role in the country’s economic recovery, with more than £3.6bn spent in the UK last year on film and television production. Grant funding to support the delivery of two largescale film and TV studios projects will help develop world-class cultural production infrastructure across east London as part of the Thames Estuary Production Corridor, boosting the growth of the UK’s world-leading screen industries sector and creating new jobs to aid long term recovery:
  
  • Dagenham Studios: A package of enabling infrastructure works will speed up delivery of Barking and Dagenham Council’s plans to build London’s largest film studios on former industrial land in Dagenham.
  • 3 Mills Studios: In partnership with the London Legacy Development Corporation, a series of capital projects at 3 Mills will help modernise the existing studios in Bromley-by-Bow, creating new space for businesses and increasing job opportunities on the site.
• Outer London Full Fibre Funding: The COVID19 crisis highlights that a significant number of Londoners are in digital poverty, with low or no digital connectivity. We anticipate London’s recovery will see a general shift towards even more online services ‘as normal’. This requires City Hall and partners to take further steps to improve conditions for private investment in digital connectivity, creating job opportunities installing infrastructure and improving digital access for Londoners. Funding for connections to areas with poor connectivity will be an important part of the recovery programme, which is in development with the Mayor, London Councils, and partners. In partnership with sub-regional partnerships West London Alliance (WLA), Local London, and South London Partnership (SLP), the GLA would match secured funding from the Strategic Investment Fund, and Strategic Investment Pot (SIP), for improving digital connectivity in areas of Outer London currently not met by the market, prioritising areas of high employment density. The model will bring wholesale fibre connectivity to local public assets lowering costs for private investment for ‘last mile’ connections to homes and businesses. Pending a review on delivery methods for delivering the connections, sub-regional partnerships WLA and SLP will make use of the TfL Telecommunications Commercialisation Project and Local London will use their existing framework developed for the SIP. The Connected London team will also work with providers and the Skills team to ensure support for infrastructure skills delivering the wider programme.

2.3 Further details on the projects are provided in Appendix A to this report.

2.4 The funding profile for the proposed funding is as follows:

1. 2.5 There are some projects under the Good Growth Fund Accelerator which will spend the Getting Building Fund allocation by the 31 March 2022 but will complete delivery in the 2022-23 financial year with match funding from the delivery partner.
3. 2.6 Indicative outputs of the three proposed investment strands are:

2.7 The Mayor, in partnership with London boroughs and delivery partners, will be expected to deliver the agreed projects but will have flexibility in prioritising the projects that deliver the greatest economic benefits to the area. Any significant changes to the projects should be discussed with the Government in advance, and all investment decisions must be undertaken in line with locally agreed audit and scrutiny arrangements.

3.1. Public authorities, such as the GLA, must have ‘due regard’ to the need to eliminate unlawful discrimination, harassment and victimisation as well as to the need to advance equality of opportunity and foster good relations between people who share a relevant protected characteristic and those who do not, under section 149 of the Equality Act 2010. This involves having due regard to the need to remove or minimise any disadvantage suffered by those who share a relevant protected characteristic that is connected to that characteristic, taking steps to meet the different needs of such people; and encouraging them to participate in public life or in any other activity where their participation is disproportionately low.

3.2. The relevant protected characteristics under section 149 of the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, and sexual orientation. Compliance with the duty may involve treating people with a protected characteristic more favourably than those without the characteristic. All of the recommended projects put forward for funding contribute to the sustainable growth of London’s economy and will directly or indirectly help create employment opportunities for Londoners.

3.3. Good Growth Fund Accelerator and Thames Estuary Production Corridor – Through the GGF and the Thames Estuary Production Corridor programmes and the selection of project proposals and development of these, the GLA will require applicants to evaluate the potential impacts regarding protected characteristic groups. Any project must minimise disadvantages to all protected characteristic groups within society. Recommended successful projects demonstrated the positive impact GLA investment would have in addressing disadvantages for groups with protected characteristics, as well as other disadvantaged groups. Across the GGF and Thames Estuary Production Corridor programmes, projects will undertake a wide range of activities to tackle disadvantage including targeted job creation, employability support and training, health and wellbeing support, cultural activities and civic participation programmes.

3.4. Outer London Full Fibre Funding – The Connected London team is implementing a work programme to address the infrastructure needs of all Londoners. The investment is designed to positively impact London through improving the digital divide faced by Londoners in ‘not spot’ areas where commercial investment is unlikely. Some identified sites for connections by boroughs include social housing, youth centres, and sheltered accommodation, and services will be delivered at these sites that will be designed to improve accessibility and reduce costs to address digital inclusion, as well as developing interventional programmes. In line with the policies of the Mayor, the objectives of Connected London aim to improve all Londoners access to digital infrastructure, and the work programme is to address areas that are underserved, or only served with expensive leased line connectivity. The team will work closely with the Digital Skills team who are developing a programme to tackle Digital Inclusion issues.

3.5. Specific proposals for individual workstreams undertaken by the team will undergo an individual assessment to ensure that, in accordance with the public sector equality duty under the Equality Act 2010, due regard is had to the effect of such workstreams on all groups with relevant protected characteristics (age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, and sexual orientation), and in particular that due regard is had to the elimination of conduct prohibited under the Equality Act 2010, and the advancement of equality of opportunity and the fostering of good relations between people who share a relevant protected characteristic and those who do not.

3.6. As a condition of funding agreements, projects awarded funding will be required to meet the Public Sector Equality Duty and demonstrate this through regular reporting of progress.

Key risks and issues

4.1. Programme – There is pressure with regards to forecasting spend accurately and ensuring projects deliver to that forecast. The selection process has already included a deliverability assessment by GLA officers. Following the public announcement of successful projects, each project will be incorporated in the delivery of its host team’s business and therefore will be subject to prevailing performance management processes and agreed corporate reporting arrangements. GLA officers will engage further with delivery partners to ensure that project milestones and delivery programmes are realistic. Once grant agreements have been signed careful programming and project monitoring is in place to ensure spend and achievement against targets and outcomes is achievable.

4.2. COVID-19 – There is a risk that the continuing impact of COVID-19 delays progress with initiatives. The impact of the pandemic has been considered as part of the development of this programme of work and the programme is proposed in direct response to it. The programme will be continually monitored and adjusted to incorporate government guidelines and respond to developing circumstances.

4.3. Expenditure – There is a risk that MHCLG could withdraw funding if the GLA fails to spend its allocation in year. All contracts with delivery partners will therefore include detailed funding profiles. Existing provisions in the GLA contracting arrangements relating to the breach of conditions, retention, suspension, withholding and recovery of GLA funding will be utilised to mitigate this risk.

4.4. Good Growth Fund Accelerator – Risks associated with individual projects have been identified as part of the GGF application process, and the evaluation criteria considers risk and deliverability when prioritising projects. Individual grants will be monitored through the GLA’s Budget and Performance Review process. All capital projects will be subject to design review during the design and implementation phase. Reviews will be undertaken by the independent panel of Mayor’s Design Advocates. Officers will ensure that appropriate and meaningful scrutiny is applied to each project as required.

4.5. Thames Estuary Production Corridor – Risks associated include a lack of engagement from delivery partners with the GLA during delivery, or struggle to work to key deadlines. The GLA will mitigate these risks through regular dialogue with delivery partners and through engaging the strategic support of Film London, the capital’s screen industries agency. The two film studios grants will be monitored through the GLA’s Budget and Performance Review process and subject to design review during the design and implementation phase. Officers will ensure that appropriate scrutiny is applied to each project as required.

4.6. Outer London Full Fibre Funding – Risks associated include borough engagement with GLA/TfL during delivery, or struggle to work to key deadlines. There are many teams involved in fibre delivery including housing, highways, planning, ICT, and others depending upon the asset being connected. Delays to delivery could impact funding allocation between the outer London boroughs, as where there are delays in process and approvals, we will be unable to connect as many assets in boroughs who engage less. The team will be mitigating this risk by continuing to build on their relationships with boroughs through regular dialogue, workshops and regional meetings. Should high level intervention be required, then the Chief Digital Officer can seek support from senior staff at borough level. The project will also work closely with London Councils to ensure engagement at borough level.

Links to Mayoral strategies and priorities

4.7. The investment supports the priorities set out in a City for All Londoners and the Mayor’s subsequent statutory and non-statutory strategies, including the Economic Development Strategy, the Social Integration Strategy, the Equality, Diversity and Inclusion Strategy, the Culture Strategy, the Environment Strategy, the Smarter London Roadmap and the Mayor’s vision for Healthy Streets. Specifically, the package of projects is developed on the principles of ‘good growth’ and investment in London’s future. This includes further developing London’s strengths in innovation by encouraging collaboration across sectors, fostering entrepreneurial skills, and providing support for innovative initiatives.

4.8. The Getting Building Fund projects also support the Mayor’s ambition to reimagine our city as a place with a better long-term future for Londoners, which is fairer, greener and more resilient than it was before. They support the Recovery Board’s priorities, in particular those to reverse the pattern of rising unemployment and lost economic growth caused by the economic scarring of COVID-19 and to support our communities, including those most impacted by the virus.

Consultations and impact assessments

4.9. The GLA, working with London Councils, coordinated a submission of proposed investments to government’s Getting Building Fund. This represented a range of spatial and sectoral priorities across London. These projects were specifically aimed to drive a green recovery, support town centre and high street renewal, grow cultural infrastructure, invest in infrastructure, skills and the wider innovation ecosystem.

4.10. The successful projects build on existing GLA projects and programmes which have undertaken specific consultations and impact assessments.

4.11. Good Growth Fund Accelerator - The GGF prospectus was developed following consultation with LEAP. The assessment process drew on input from 13 specialist teams across the GLA including Culture and Creative Industries, Community Engagement, Social Integration, Economic Development, Education and Youth, Food, Health, Housing and Land, Team London, Economics, and Transport. Input from other teams ensures alignment with Mayoral priorities across policy areas, and to add to the understanding of specific sectors.

4.12. Thames Estuary Production Corridor – In 2017, the Mayor launched the Thames Estuary Production Corridor Vision with the South East Local Enterprise Partnership and established a GLA working group to oversee the work and ensure it aligned with cross-cutting Mayoral policy objectives and LEAP priorities. The project drew input from specialist teams across the GLA including Regeneration, Economic Development, Skills, Planning and Transport. The Thames Estuary Production Corridor marks a strong commitment to cross-boundary collaboration with partners in the South East closely working together through the Thames Estuary Production Corridor Partners Board. The unique partnership includes the GLA, the Royal Docks Team, the seven East London boroughs that are part of the Thames Estuary region , the South East Creative Economy Network and South East Local Enterprise Partnership, Kent and Essex County Councils, and eleven local authority areas represented by Thames Gateway Kent Partnership and Opportunity South Essex.

4.13. In March 2018, under cover of MD2129 and DD2189, the GLA and the South East Local Enterprise Partnership, in partnership with the Royal Docks Team and the London Boroughs of Bexley and Lewisham, commissioned a case for investment report in the Thames Estuary Production Corridor. Over 200 local and external partners and stakeholders were consulted as part of the process in 2018-2019. The research found that the programme had the potential to double the size of the production sector across the Estuary, supporting the delivery of more than 50,000 new jobs and creating additional economic output of over £3.7bn per annum. It specifically identified a clear demand for space in and around London for film and TV production due to a global shortage.

4.14. The Dagenham Studios development follows a 2017 study, that was supported by the Mayor of London under cover of DD2053, outlining how Dagenham East represented an ideal opportunity for a new world-class film studio as demand for existing studio space in the capital grew.

4.15. Outer London Full Fibre Funding – This project will complement existing grant funding projects designed to improve full fibre availability across London. The Connected London team secured £8.5m through the Department for Digital, Culture, Media and Sport’s (DCMS) Local Full Fibre Networks (LFFN) fund. £15.7m has been secured through London Council’s Strategic Investment Pot (SIP) allocated to West London Alliance and Local London. An additional £10m was secured through the Strategic Investment Fund (SIF) allocated by the Mayor, MD2530.

4.16. The GLA’s Culture and Creative Industries Unit and the Connected London team, including their Mayoral advisers, have been engaged in the drafting of this decision.

4.17. There are no conflicts of interest to note for any of the officers involved in the drafting or clearance of this decision form.

5.1. The Ministry of Housing, Communities and Local Government has awarded the GLA a capital grant of £22.1m from its Getting Building Fund to help stimulate London’s economic activities following the COVID-19 pandemic. Therefore, this decision seeks approval for the receipt and expenditure of this grant.

5.2. The Authority has identified existing capital and shovel-ready projects which the grant will be spent on. The programmes, alongside their allocated budget can been seen in Appendix A.

5.3. As stipulated within the grant conditions, £11.05m will be issued during quarter 3 of 2020/21 and £11.05m in 2021/22. All funds must be spent in the financial year issued and will be monitored closely. There is a risk the Authority may not receive the full £22.1m as the release of the second tranche of funds relies on the satisfactory expenditure of the first. To alleviate this risk, all contracts with funding partners will include detailed funding profiles alongside existing clauses which allow the Authority to suspend, withhold or recover funds in instances where performance has been deemed unsatisfactory.

5.4. Lastly, permission is being sought to delegate authority to approve expenditure to the Executive Director Good Growth, the Head of Regeneration; the Assistant Director, Culture and Creative Industries Unit; and the Assistant Director for Transport, Infrastructure and Connectivity.

6.1. The foregoing sections of this report indicate that the decisions requested of the Mayor fall within the statutory powers of the Authority to promote and/or to do anything which is facilitative of or conducive or incidental to social development and to economic development and wealth creation within Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:
(a) pay due regard to the principle that there should be equality of opportunity for all people;
(b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and
(c) consult with appropriate bodies.

6.2. In taking the decisions requested of him, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

6.3. Officers have requested approval for the expenditure of the £22.1m grant from the Ministry of Housing, Communities and Local Government on the the capital investment proposals set out in section 2 and Appendix A of this report. To the extent that such expenditure involves the procurement of works, services or supplies or the provision of grant funding, the officers are reminded that they must adhere to the requirements of the Authority’s Contracts and Funding Code.

6.4. Any function exercisable by the Mayor on behalf of the Authority may also be exercised by members of the Authority’s staff albeit subject to any conditions, which the Mayor sees fit to impose. To this end, the Mayor may make the requested delegation to the Executive Director Good Growth; the Head of Regeneration; the Assistant Director, Culture and Creative Industries Unit; and the Assistant Director for Transport, Infrastructure and Connectivity, if he so chooses.

7.1. Project Governance - The three project areas of the Getting Building Fund will be managed with support from each of the relevant teams.

7.2. The Regeneration Unit will manage the Good Growth Fund Accelerator projects through the Good Growth Fund project and governance structures already in place. The regeneration area teams will oversee the management of the project delivery reporting on progress and performance to the Budget and Performance Review meeting chaired by the Assistant Director for Regeneration, and separately for information provide performance information to LEAP via the LEAP Programme Board as part of the Good Growth Fund monitoring.

7.3. The Regeneration Unit will oversee the management of the Thames Estuary Production Corridor projects’ delivery with close support from the Culture and Creative Industries Unit. Regeneration Area Team Officers will lead on reporting on progress and performance to the Budget and Performance Review meeting chaired by the Assistant Director for Regeneration. Regeneration and Culture and Creative Industries officers will work in partnership with delivery partners and ensure careful programming and project monitoring is in place to ensure smooth delivery.

7.4. The Outer London Full Fibre Funding, pending a review on delivery methods to ensure alignment with the Contracts and Funding Code, will likely use an existing TfL procurement. TfL’s Telecommunication Commercialisation Project (TCP) is commercialising TfL assets, which will deliver cellular (4G) services on the London Underground, a new fibre network for London, improved access to streetscape assets to deliver 5G and an improved Wi-Fi service on London Underground stations. The procurement is underway. The projected completion of procurement is late 2020. Fibre delivery from stations to public sites will commence once the concessionaire is appointed. The Connected London team in support with regional teams established through the Mayor’s £1m allocation (MD2530) will provide support to ensure smooth delivery by ensuring that local authorities are prepared and ready to allow necessary permissions to allow the concessionaire on site and access to the roads.

Appendix A – Project descriptions

Appendix B – Getting Building Fund selection criteria