MD2997 Future Neighbourhoods 2030 – allocation and expenditure for 2022-24

1.1.    The Future Neighbourhoods 2030 (FN2030) programme is aligned to the priorities of the London Recovery Board’s Green New Deal (GND) mission, and a just transition to net zero-carbon. It also supports and aligns with the objectives of other missions, including High Streets for All and Stronger Communities. GND polling by the GLA showed that Londoners wanted the GLA to empower them to accelerate transformative, long-term change at the local level. The FN2030 programme has taken a place-based approach, supporting a series of projects that will have a transformative and demonstrable local impact with multiple benefits for communities.
1.2.    The FN2030 programme received 21 applications at the expression-of-interest stage in May 2021. The selection process was competitive, transparent and rigorous, and was run in accordance with the GLA’s Contracts and Funding Code. The prospectus outlined that the successful neighbourhoods would be invited to put forward projects for further funding to enable an ambitious scale of environmental transformation. From the shortlisted applications, Somers Town (London Borough of Camden) and Notting Dale (Royal Borough of Kensington and Chelsea) were selected in October 2021 as the two Future Neighbourhoods (FNs). These are both areas of high deprivation and climate vulnerability – factors that have been disproportionately impacted by the COVID-19 pandemic.
1.3.    The overall FN2030 programme will run over three years and will deliver strategies and projects that help to transform these areas to demonstrate what a zero-carbon, zero-waste, zero-pollution city could look like at a local level. The projects supported will deliver training, skills and employment opportunities for residents, as well as opportunities to improve health and wellbeing. An initial set of projects are already being supported in 2021-22 and 2022-23 across the two FNs; a further set of projects is in development for submission to receive funding in 2022-23 and 2023-24.
1.4.    The FN2030 programme is also supporting the development of a further 10 strategies in other areas across London (following strong submissions to the application process). These strategies will have at their centre the four overarching objectives of the GND mission:
•    to improve London’s natural environment, improve air quality, and tackle the climate and ecological emergencies
•    to promote and incentivise activities that sustain and grow London’s green economy
•    to prioritise interventions reducing health inequalities and social injustices
•    to engage Londoners and businesses in their journey to become a zero-pollution and greener city.
1.5.    The strategies will also support neighbourhoods to develop a pipeline of projects, ready for funding outside of this FN2030 programme, across the following key sectoral themes:
•    retrofitting of homes, commercial and public buildings
•    creating a decarbonised, smart and integrated energy system
•    improving air quality and creating zero-emission zones
•    developing climate-adapted, resilient and green neighbourhoods
•    zero-waste and circular economy.
1.6.    The GLA is developing an FN2030 strategy support workstream. This includes a learning programme that has provided access to expertise from across the Mayor’s missions and supports the sharing of good practice. The GLA has involved London Councils in the design of the support programme. 
1.7.    The support programme has involved teams from across the GLA as well as external expert organisations such as ReLondon and Arup. Design reviews have also been delivered by the Mayor’s Design Advocates. Where relevant, sessions have been opened up to other GLA funded programmes. 

1.8.    A collaborative network has been established for the FN2030 strategy area participants and this is being used to share information about FN2030 and other relevant GLA programmes, such as the School Superzones programme and to encourage greater collaboration between the neighbourhoods.  

1.9.    The GLA will also research the opportunities to better coordinate and spend existing budgets to get more sustainable results, and to identify alternative funding sources that may help to replicate the FN2030 approach. This includes proposing that the UK Cities Climate Investment Commission use the FN2030 strategies to help in developing area-based investment plans. This work will be delivered in partnership with the FN strategy cohort to maximise the opportunities to secure delivery funding for the strategy areas. 

First funding allocation – Somers Town and Notting Dale FN projects
1.10.    The FN2030 programme application was designed as a two-stage process. In their applications, bidders were asked to: detail projects to be delivered as part of the initial funding allocation; and develop strategies to identify projects for delivery in future funding rounds.
1.11.    At the beginning of 2022, Somers Town and Notting Dale executed and entered into funding agreements with the GLA; and began implementing their initial projects and the development process for their strategies. To date, these FNs have been awarded a combined £2.835m, and between them have provided £3.651m in match funding (16 per cent higher than the 40 per cent threshold required) for their initial round of projects and for strategy co-creation with the community. 
1.12.    Somers Town has a population of 11,600. The area is one of the most deprived in Camden, and among the most deprived 20 per cent of neighbourhoods in the UK, with 15 per cent of its residents living in fuel poverty. Somers Town also suffers from air pollution, which is having measurable public health impacts: the ward has Camden’s highest prevalence of asthma in those aged under 18. Notting Dale has a population of 8,547 people. It is the ward most impacted by the Grenfell Tower tragedy, which resulted in 72 residents losing their lives, and hundreds more traumatised individuals. The Grenfell Tower tragedy exacerbated pre-existing inequalities and deprivation present in the area. The Covid-19 pandemic has continued to deepen these inequalities, with the Notting Dale community disproportionately affected by its impact. Notting Dale is situated in an area of high climate risk and lies within an area of deficiency in access to nature.
1.13.    The FN projects are improving the environment and community wellbeing, whilst providing opportunities for community members to learn new skills and gain employment. For example, both projects feature mobile makerspaces offering tools and materials to support the repair-and-reuse economy; and training will be provided to upcycle products for a circular economy market. In Somers Town a home energy-efficiency and retrofit project will provide training to residents to develop their skills to deliver internal solid wall insulation, which will lead to formal apprenticeships; there will be opportunities for apprentices in Camden council’s in-house workforce. The retrofits delivered will also help to reduce energy bills for residents. In Notting Dale there will be renewable heating systems for five local schools, and a community energy programme is expanding the provision of solar power. The Notting Dale projects include supporting the SPACE initiative: a Black, Asian and Minority Ethnic female-owned enterprise that trades in preloved children’s clothing and is expanding to deliver a school uniform-swapping service. In both neighbourhoods urban greening and a healthy, climate-safe streets programme are being used to segregate road users to encourage more cycling, which will help to tackle the air quality emergency. Greening is providing new growing spaces, and supporting play and social interactions, whilst reducing surface water flows to help tackle the climate emergency and create new jobs in horticulture.
1.14.    The FNs will involve 55 grassroots organisations in the development and delivery of projects. On average, 85 cent of training, learning and development opportunities will be accessed by under-represented groups. Seven green businesses run by Black, Asian or other Minority Ethnic owners, or by female owners, will be supported. Two youth-training programmes aimed at 16-19-year-olds who lack opportunity, and may be marginalised, will be supported; these will lead to employment opportunities. Over 100 workshops and green skill qualifications in areas of disadvantage and inequality will be delivered. 
1.15.    Joint communication plans have been developed with the FNs to engage people within the neighbourhood and promote how the projects are improving Londoners’ lives and addressing the environmental emergencies. The FNs are actively engaging with their residents to demonstrate the benefits of the projects and to encourage involvement in the development of the next phase of work. Communication channels used include leaflets, posters, drop-in events, a digital platform and video. The FNs are now also working with trained members of the community to connect face to face with residents through door to door knocking. A calendar of events is planned for the rest of the year across both neighbourhoods to raise awareness of the projects and the opportunities to get involved. 

1.16.    The FN2030 programme evaluation will capture evidence of the impacts and outcomes of the work underway. This will be used to further communicate the benefits of the programme and the approach to the FN communities, London Councils and all other London Boroughs. The FNs are committed to sharing their learnings with other areas, including those producing FN2030 strategies. 

Process for selecting projects in the next funding allocation 

1.17.    The successful FNs have each received circa £1.4m of grant funding to support strategy development and their initial proposed projects. The next funding allocation will make circa £3.85m available in total (inclusive of the £2.35m being requested in this MD) to Somers Town and Notting Dale FNs (subject to their success in the assessment process and new grant-funding agreements) for additional projects identified through the initial development of their FN2030 strategies. These additional projects will enable the FNs to deliver the scale of change required to have a transformative environmental impact; deliver multiple benefits for the community; and inspire others to adopt such changes.

1.18.    In 2022-23, the GLA Environment and Energy Unit will invite the FNs to request the funding to deliver projects in 2022-23 and 2023-24. The selection and quality criteria for costed projects to be assessed and funded will be the same used in the original prospectus, which is based on the GND principles and themes. The selection process will consider each FN’s progress to date. There will be a minimum match-funding requirement of 40 per cent. Projects will be agreed in consultation with the Deputy Mayor for Environment and Energy, again by reference to the criteria mentioned above. The new projects will be selected in accordance with the GLA’s Contracts and Funding Code. Any funding requests should be for environmental projects which also seek to reduce health inequalities and social injustice and sustain and grow London’s green economy. The FNs will also need to continue to demonstrate how their projects are designed to reach under-represented groups. 

1.19.    The funding process will provide the opportunity to challenge submissions, and it will be competitive between the FNs to ensure the quality of projects. The FNs will be asked to submit projects of a greater value than the available funding, and projects will only be funded if they meet the selection and quality criteria. Whilst it is envisaged that each FN will be allocated around 50 per cent of the funding, the GLA reserves the right to allocate different funding proportions if appropriate. The GLA will assess the projects, and – in the very unlikely scenario that insufficient projects meet the required standard – its Environment and Energy Unit will invite the neighbourhoods undertaking FN2030 strategies to bid for funds. It will then select one or two of these to deliver new FN2030 projects.

Evaluation

1.20.    The sum of £0.35m, from the requested total expenditure of £2.5m, is proposed to conduct an evaluation of the FN2030 programme. This represents approximately 4.5 per cent of the total FN2030 budget. The evaluation will be procured in accordance with the GLA’s Contracts and Funding Code. 

1.21.    The evaluation will inform the GLA’s future environment programme development. The evaluation will include the creation of a framework to enable partners to evaluate the environmental, social and economic impacts of their strategies/projects, including their contribution to GND objectives (e.g., carbon emission reduction, job creation or impact on fuel bills). Boroughs will be able to select from a list of objectives, outputs and outcomes to measure the success of their strategies/projects. The evaluation work will include indicators to measure engagement and awareness of the programme amongst residents of the Neighbourhoods. This framework will be available for all boroughs to use, and for the GLA to apply to other environmental projects.

1.22.    The evaluation will assess both the process for grant giving and the impact of grants in delivering the desired outputs and outcomes. This includes assessing the impact on organisations that applied but did not receive funding, the effectiveness of community engagement and the benefits of taking a place based, multi-themed approach. The evaluation will be published.

1.23.    Evaluation activities will include:
•    collecting and analysing data from the FNs in relation to the outputs and outcomes
•    undertaking surveys and interviews with borough officers and community members involved in the project, to analyse the impact of the programme
•    outlining the programme’s organisational approach and processes to understand how it produced the results
•    resource modelling the approach in comparison to alternatives
•    assessing the learning from the programme
•    making recommendations for future programmes.
Budget
1.24.    FN2030 is a £7.77m programme. To date, £5.27m in expenditure has been approved. The first £3m of expenditure was approved in 2020 by the Mayor under cover of MD2708, and came from the 2020-21 GND budget. In line with a delegation of authority granted under cover of MD2708, the Executive Director of Resources in DD2522 approved detailed expenditure of the first £3m on the programme, strategy development and environmental projects in the selected FNs in 2021-22 and 2022-23. Under cover of MD2871, the Mayor approved a further £2.27m spend (£2m for the FNs and £0.27m for strategies). Table 1 details the proposed budget allocations for the programme over the financial years between 2021 and 2025.

1.25.    Due to GLA budget-setting processes, approval for the outstanding £2.5m is still required and is being requested by this MD. This additional funding will be allocated to environmental projects (£2.15m) and an evaluation of the programme (£0.35m). The FNs will apply for this funding in 2022-23, and spend it in 2023-24.  Although the evaluation will be procured in 2022, the expenditure on this activity will occur between 2023-24 and 2024-25.

1.26.    The £5.27m agreed by previous mayoral decisions has been allocated to workstreams. £2.835m has been contracted and of that just under £2.5m released to the FNs in 2021-22.

Table 1 Proposed FN2030 Programme Budget:

Objectives
2.1.    This funding will support the delivery of additional projects in the FNs that will enable them to act as environmental exemplars; share best practice; and drive new approaches to catalysing long-term reductions in greenhouse gas emissions and improvements to the environment. 
2.2.    Specifically, project funding for FN2030 should:
•    be spent on permanent interventions across the themes of the FN2030 programme
•    be completed by 2023-24
•    help showcase best practice in strategic interventions that can be scaled up across the borough and replicated elsewhere in London 
•    support projects developed in partnership with local organisations and communities
•    be used in locations with high levels of deprivation; in communities most impacted by the pandemic; and/or where residents are most vulnerable to the impacts of climate change
•    support diverse and inclusive communities, helping them to reduce inequalities and go further to encourage disengaged communities to participate in the co-creation of the FN. 
2.3.    The programme will support communities in the selected FNs that are in areas of deprivation and climate vulnerability, and that have been heavily impacted by the pandemic, to make long-term commitments (up to 2030) to deliver transformative action that will inspire others, be replicable and test innovation.
2.4.    The FN2030 programme will share knowledge and design replicable approaches that deliver the objectives of the GND, outlined in paragraph 1.4 and fit within the project themes listed in paragraph 1.5.
2.5.    The FN2030 programme will encourage approaches that support and align to the objectives of other missions vital to London’s recovery. These include, in particular, the High Streets for All mission; the Building Strong Communities mission; the Healthy Food and Weight mission; and the Good Work for Londoners mission. 
2.6.    FNs will be encouraged to maximise the use of relevant existing GLA programmes, such as the Retrofit Accelerators and the Local Energy Accelerator.
2.7.    FNs will also be encouraged to work with private-sector partners to test innovations, and scale up their own delivery plans, over the course of the programme.

Outcomes
2.8.    By funding the delivery of further projects that align with the five themes of the FN2030 programme outlined in paragraph 1.5, we expect the FNs to show demonstrable success in delivering the following outcomes:
•    reduction in GHG emissions
•    increase in renewable energy generated
•    improvement in air quality
•    improvement in waste reduction and recycling
•    improved access to high quality green space
•    implementation of measures to improve climate adaptation
•    development of green skills and green job opportunities for residents in FNs.
2.9.    The FNs will also report on other metrics specific to their projects. These include outcomes such as an increase in electric vehicle charging points; an increase in jobs created or green apprenticeships awarded; and cooling interventions installed on properties. 
2.10.    The FN2030 programme will support the development of engaged and inclusive local communities that have been involved in project design, and which are committed to the ongoing delivery of the FN2030 vision and associated projects.
2.11.    The FN2030 programme will provide examples of successful approaches to reducing climate impacts, and improving community sustainability, that can be replicated across London through knowledge-sharing and dissemination of exemplars. 
2.12.    The FN2030 programme will help identify opportunities to scale up activity in the longer term, to achieve greater impacts across a broader geographical area and potentially beyond borough boundaries. 
 

3.1.    Under section 149 of the Equality Act 2010 (the Equality Act), as a public authority the GLA must have due regard to the need to eliminate discrimination, harassment and victimisation, and any conduct that is prohibited by or under the Equality Act; and to advance equality of opportunity, and foster good relations, between people who share a protected characteristic and those who do not. 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, marriage or civil partnership status, race, religion or belief, sex, and sexual orientation. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have.
3.3.    The Mayor’s Equality, Diversity and Inclusion Strategy sets out how the Mayor works to create a fairer, more equal, integrated city where all people feel welcome and able to fulfil their potential. Equality, diversity, and inclusion are subsequently enshrined within the GLA’s strategies, programmes and activities.
3.4.    The GLA will ensure that (as part of its ongoing legal responsibility to have due regard to the need to promote equality, in everything it does, including its decision-making) barriers are removed that may prevent those with protected characteristics benefiting from the projects.
3.5.    The GLA Environment and Energy Unit commissioned an Integrated Impact Assessment (IIA) on the draft London Environment Strategy. This evaluated the social, economic, environmental, health, community safety and equality consequences of the strategy’s proposed policies to ensure they are fully considered and addressed. A post-adoption statement showing how the IIA influenced the final strategy and the Equality Impact Assessment report has been published here.
3.6.    The FN2030 programme selected FNs that would develop projects in collaboration with the local community, including underrepresented groups such as those with protected characteristics. This will help advance equality of opportunity, and foster good relations, between people who share a protected characteristic and those who do not.
3.7.    All strategies and projects are expected to illustrate: how they are considering the needs of Londoners, specifically under-represented groups (such as those with protected characteristics); and what they will do to ensure that, as relevant, their needs are included in the strategies and projects, and these groups benefit from them. The core of this programme puts under-represented communities first, at the forefront of the programme design and implementation. 
 

Key risks and issues
4.1.    The key risks and issues are set out in the table below. 

Links to Mayoral strategies and priorities
4.2.    This programme has direct links to the priorities of the London Recovery Board – specifically its GND mission, which aims to double the size of London’s green economy by 2030. The FN2030 programme supports cross-cutting recovery principles set out by the London Recovery Board. Funded projects will be expected to deliver outcomes that address social, economic and health inequalities; deliver a cleaner, greener London; and ensure Londoners are at the heart of recovery. The Mayor was re-elected in 2021 with a manifesto pledge for London to be net-zero by 2030. In January 2022, the Mayor published new analysis showing four possible pathways to net-zero in London by 2030. The Mayor’s preferred pathway is the “Accelerated Green” pathway, which will require a range of interventions including the retrofitting of homes, education sites and workplaces. 
4.3.    The portfolio of projects has direct links to many of the Mayor’s strategies including: the London Environment Strategy; the London Plan; the Economic Development Strategy; and the Transport Strategy. Each of these strategies has been consulted on, and each has policies aimed at addressing the environmental issues faced in London. Summaries of key elements of the relevant strategies are provided below, at 4.4 to 4.7.
4.4.    The London Environment Strategy sets out ambitions to: 
•    reduce emissions from London’s road transport network by phasing out fossil-fuelled vehicles, prioritising action on diesel, and enabling Londoners to switch to more sustainable forms of transport
•    deliver more decentralised energy in London
•    plan for London’s new smart energy infrastructure
•    deliver a more climate-adapted and resilient city
•    deliver a zero-emission transport network 
•    prioritise greener solutions across London in new development and retrofit solutions. 
4.5.    The Economic Development Strategy sets out the conditions required for Good Growth, which include the following sections in Chapter 4, “Creating the conditions for growth”:
•    Transport: “Applying the Healthy Streets Approach to encourage walking and cycling, reducing car dependency and investing in public transport capacity to enable growth whilst supporting the transition to a low carbon economy.” 
•    Infrastructure: “Ensuring London has the digital connectivity, water, energy, waste and green infrastructure it needs to grow and support the transition to an inclusive, low carbon circular economy.” 
4.6.    The London Plan includes policies on energy infrastructure (Policy SI2 and SI3) and healthy streets (Policies T1 and T2).
4.7.    The Mayor’s Transport Strategy includes policy 1 (80 per cent of all trips in London to be made on foot, by cycle or using public transport by 2041), policy 2 (improving street environments to make it easier to get around on foot and by cycle, and promoting the benefits of active travel) and policy 7 (transforming London’s streets and transport infrastructure to enable zero-emission operation). 
4.8.    Delivering a just transition is also a GND mission priority. There is a major opportunity for developing new skills and jobs as we grow the green economy and make the transition to a low-carbon circular economy. This programme will seek to identify and realise job creation and skills development opportunities.

Consultations and impact assessments 
4.9.    This programme has been created with the aim of developing and delivering strategically important projects that will contribute directly to the delivery of the Mayor’s London Environment Strategy, the Economic Development Strategy, the draft New London plan and the Transport Strategy; and to London becoming zero-carbon by 2030, as set out above at (at section b): Links to Mayoral strategies and priorities). 
4.10.    This programme has been developed in response to the issues and challenges that partners and stakeholders have raised in discussions on these projects. 
4.11.    An impact assessment was undertaken for both the London Environment Strategy and the Economic Development Strategy. As this funding will help deliver the objectives of these strategies, the original impact assessments are still relevant to the project. There will be appropriate levels of impact assessment and stakeholder consultation in relation to the development and delivery of this programme.
4.12.    The high-level outline for the programme has been tested with London Councils and the GND Expert Advisory Group.

Conflicts of interest
4.13.    No GLA officer involved in the drafting or clearance of this MD is aware of any conflicts of interest with the proposed projects.
4.14.    If any conflicts of interest arise during the grant-funding process, it is a requirement to declare that interest under the Contracts and Funding Code, and to not take any part in the grant-funding process for that particular project. This process should also be in accordance with the Code of Ethics and Standards for Staff, and accompanying guidance on registering and declaring interests. 
 

5.1.    FN2030 is a £7.7m programme delivering strategies and projects that help support and transform areas within the capital by demonstrating what a zero-carbon, zero-waste, zero-pollution city would look like. 
5.2.    Of the £7.7m, £2.5m had been spent in 2021-22 with the balance initially to be profiled across 2022-23 to 2024-25 as follows: 

5.3.    Following the agreement of the 2022-23 budget, £1.5m has been built into the 2022-23 financial year with the balance of £0.7m currently sitting in reserves or drawdown from the reprofiling reserve (as unspent from previous years carry forward). The indicative future years budget provision required to fund this programme spend will require reprofiling as set out in the table below; which will be incorporated into the base budget as part of the 2023-24 budget setting process.

5.4.    However as the 2023-24 budgets are not yet formally approved, this decision would constitute a pre-existing commitment against these budgets when the formal budget setting exercise is undertaken. To mitigate any risk of the programme not being sufficiently resourced in future years to cover costs following the budget setting process, all contracts and grant agreements will include the usual break clauses that could potentially be exercised if required. All appropriate budget adjustments will be made.

6.1.    The foregoing sections of this report indicate that:
•    the decisions requested of the Mayor concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or that are facilitative of, or conducive or incidental, to the promotion of economic development and wealth creation and the improvement of the environment in Greater London
•    in formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to: 
o    pay due regard to the principle that there should be equality of opportunity for all people
o    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
o    consult with appropriate bodies.
6.2    In taking the decisions requested, 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, and foster good relations, between persons who share a relevant protected characteristic (race, disability, gender reassignment, age, sex, sexual orientation, religion or belief, pregnancy and maternity, and marriage or civil partnership status) and persons who do not (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.    If the Mayor makes the decisions sought, officers must ensure that, to the extent that expenditure concerns the:
•    award of grant funding, it is distributed fairly, transparently, in manner that affords value for money, and in accordance with the requirements of the GLA’s Contracts and Funding Code; and that grant-funding agreements are put in place between, and executed by, the GLA and recipients before any commitment to fund is made
•    payment for services, those services are procured in liaison with TfL Procurement and in accordance with the GLA’s Contracts and Funding Code; and that contracts are put in place between, and executed by, the GLA and contractors before commencement of such services.
6.4.    In addition, as the proposals in respect of which decisions are sought involve the making of commitments that extend beyond the current Mayoral term, officers must ensure that the terms of all agreements entered into, in respect of the expenditure, do not have the effect of fettering the discretion of any successor administration, considering in particular the London elections taking place in May 2024.
 

7.1.    A timetable for the delivery of the FN2030 programme, relevant to this decision, is shown below: