Memorandum submitted by Yorkshire Forward
The following submission provides evidence on
the role of the effectiveness of RDAs on behalf of Yorkshire Forward,
in line with the seven key areas highlighted by the BERR Select
Committee.
1. THE NEED
FOR A
LEVEL OF
ECONOMIC DEVELOPMENT/BUSINESS/REGENERATION
POLICY DELIVERY
BETWEEN CENTRAL
AND LOCAL
GOVERNMENT
Headline Issues
There is a threefold rationale for a level of
economic development/business/regeneration policy delivery between
central and local government:
— Critical mass—Yorkshire
and Humber is an English region with a large and diverse economy.
It has a population of more than five million people and over
300 thousand businesses. The £82 billion economy is as big
as Denmark, Norway or Scotland. In the increasingly global economic
context the region is, in very real terms, a functioning economic
unit for both business and Government;
— Cross-boundary collaboration—Key
policy areas such as labour markets, transport and housing are
often most effectively pursued on a cross boundary basis. For
example, labour markets reflect functioning economies rather than
local administrative boundaries, transport interventions are often
of a scale and context beyond local interventions and increasingly
the housing market operates on a wider geographic scale;
— Appropriateness and efficiency
of targeted policy interventions—The current economic
climate reinforces the need for effective use of finite resources.
Too strong an emphasis on national policy may fail to reflect
the diversity of England's economy. Although Yorkshire and Humber's
needs and aspirations have a strong correlation with national
priorities, the region faces very specific challenges based on
our current performance and industrial legacy. Macro economic
policy of the 1980s and 1990s was heavily influenced by the economic
realities of London and the South East, often at the cost of the
more peripheral regions. On the other hand, sub-regional policy
delivery based on England's 43 functional sub-regions presents
too many planning units to ensure efficient delivery of policy.
1.1 In the 1980s and 1990s, Yorkshire and
Humber was devastated by the massive decline in the traditional
industries that dominated our economy. Job losses were experienced
on an unprecedented level, with huge knock-on effects on the region's
social fabric. There was at that time, no single agency in the
region responsible for dealing with the scale of negative economic
impact experienced. The focus was on national economic policy,
with little joining up of local economic development activity.
The region, like many others, had become disadvantaged by not
having a powerful regional economic agency like those in Scotland
and Wales—agencies established to identify and address specific
regional economic strengths and weakness. A new approach to economic
development was needed that did not rely on growth in the UK economy
"trickling down" to the regions, especially those in
the north.
1.2 Yorkshire Forward was set up in 1999
in response, with a role to improve the regional economy. The
Regional Economic Strategy (produced by Yorkshire Forward with
and on behalf of the region) uses robust evidence to build on
the region's distinctiveness and unique economic geography. It
recognises that our £82b economy is as big as that of Denmark,
Norway or Scotland; that we have a highly urbanised core, with
half of England's 10 biggest cities outside London; and that we
have a large rural hinterland with three National Parks. It builds
on the success that the region has had in the last ten years in
recovering and diversifying its economic base; and matches this
with clear prioritisation of challenges that remain, to give a
framework for sustainable economic growth that is right for this
region.
1.3 We are deliberately a business-led organisation
with a long term strategy set up to take tough decisions to improve
the Yorkshire and Humber economy. Our role is more important than
ever in these tougher economic times. We have a strong track record
of responding to events that shock the region's economy—the
foot and mouth disease outbreak in 2001, Selby's coal mine closures
in 2002, and the devastating floods of 2007 are examples. Important
also is our relationship with business. We have made it a priority
to strengthen these links and to further our understanding of
regional business so that we can be flexible and responsive to
their needs, and feed this into policy making.
1.4 A range of examples illustrate critical
intervention by the RDA to achieve a specific outcome for the
region that would not otherwise have been achieved:
1.5 Flood response: The floods of
summer 2007 affected over 6,000 businesses in the region. Yorkshire
Forward co-ordinated a swift and decisive response, shaping a
clear policy position and deploying funds to minimise the negative
repercussions on the regional economy. Yorkshire Forward ensured
a clear message of support and commitment was sent to the business
community, mobilising support from a partnership of agencies and
deploying our own resources in a flexible manner across a number
of clearly defined schemes to meet the needs of business. In total,
1,387 claims were approved with a value of £4.22m. Through
our Key Account Management processes, Yorkshire Forward was able
to gain an immediate understanding of the impact of the flooding
across some of the largest regionally significant companies. Constant
dialogue between Yorkshire Forward, Government Office, and Government
allowed for clear updates on the immediate situation and as recovery
commenced. This intelligence highlighted the economic impact of
the floods informing action and longer term policy making. The
effectiveness of the response was recently verified by an independent
evaluation.
1.6 As noted above, this flexible response
has been deployed previously by Yorkshire Forward through foot
and mouth and the Selby mine closures. Yorkshire Forward is a
core member of the region's Rapid Response Task Force.
A key part of this role is reacting swiftly to announcements of
firm closures that will have significant impact on the local or
regional economy, working with business, trade unions and local
partners. Our work with Ventura, an important business in the
business services sector is illustrative—following the loss
of some of their major contracts, the Task Force worked with Ventura
to help redeploy staff who worked within its call centre operations.
Using contacts that our Key Account Management team have developed
the task force was able to link Ventura with organisations seeking
to recruit this profile of staff, such as First Direct.
1.7 Investment in rail rolling stock:
Yorkshire Forward has addressed a key constraint to economic growth
by improving rail access to and from the Leeds City Region—a
transport priority of regional economic importance. Yorkshire
Forward worked in partnership with Northern Rail and Metro to
finance the leasing of six additional trains. Network Rail and
North Yorkshire County Council have also provided longer platforms
on some stations. Yorkshire Forward contributed £8.66m to
the £20m total funding package for an additional 1,700 seats
in the morning and evening peaks on routes into and out of the
city region. An independent evaluation concludes that "there
is no realistic prospect that alternative funding could have been
found and it is therefore very unlikely that the scheme would
have happened without Yorkshire Forward's funding." The Northern
Way considers the project to be significant in lending credibility
and confirming the importance of the agenda with Government, influencing
DfT's decision to allocate 224 new carriages to the Northern and
Trans Pennine franchises.
1.8 Regional Carbon and Capture Partnership:
Yorkshire Forward is leading the region on taking forward the
Carbon Capture and Storage (CCS) agenda, engaging the private
sector in developing solutions to reduce the region's emissions
and move towards a lower carbon economy. Yorkshire Forward has
used its unique link to business to set up a regional CCS Partnership,
bringing together commercial stakeholders, industrial emitters
and the owners of the southern North Sea gas fields. The CCS Partnership
is developing the evidence base to support regional decision making
on priority actions and investment in CCS moving forward. Discussions
have been held with the EU's DG Transport and Energy and the DG
Environment on greater inter-European collaboration on CCS and
stimulating investment in CCS through the Emissions Trading Scheme.
Yorkshire is one of three places recognised by the EU as leading
European work in this field.
2. THE EFFECTIVENESS
OF THE
RDAS AND
THEIR ROLE
IN ADDING
VALUE
Headline Issues
Ensuring effective and efficient delivery of
our goals, and only intervening where we can add value are central
to our approach. Yorkshire Forward provides the strategic economic
leadership needed to deliver the region's economic aspirations
set out in the RES. Our deliver is focused in three areas:
— Helping people to access good
jobs, skills and transport—our interventions are intended
to build "enabling routes". Our approach to jobs includes
working with partners to increase the number of people in jobs,
creating employment opportunities in deprived areas, and promoting
equality and diversity. On transport our focus is on making a
strong case for investment, achieving regional consensus on priorities
and influencing operators. Our approach to skills focuses on raising
aspirations, stimulating business demand for new skills, and higher
level skills;
— Helping businesses start-up, grow
and compete through innovation—Our primary focus is
to make our existing business base more competitive and to get
more people to set up businesses. Our approach to competitiveness
is based on business improvement and innovation. In promoting
business start-up, stimulating a culture of enterprise, providing
a coherent start-up programme and ensuring access to finance are
the central priorities. Our focus in FDI is to improve regional
performance;
— Regenerating cities, towns and
rural areas - The RES identifies "great places",
in which to live, work and invest, as central to the economic
prosperity of the region. In urban renaissance we use the development
of property and public space as important tools in supporting
business growth and regenerating communities. Our approach to
rural renaissance aims at promoting our rural areas as modern,
integrated economies in their own right. We are also working to
move the region to a lower carbon economy through a focus on environmental
assets, sustainable production and consumption, and grasping the
opportunities offered by the development and adoption of new technologies.
2.1 Set out below are examples of key interventions
both in terms of our strategic and delivery roles.
2.2 Strategic Role
Yorkshire Forward provides the strategic economic
leadership needed to deliver the region's economic aspirations
set out in the RES. We use our unique position to catalyse Team
Yorkshire and Humber—organisations across the public, private
and third sector—to bring them together to focus on what
is best for the region's economy. In addition to our delivery
role via the single pot, we have two primary levers. First, influencing
key policies, strategies and activities in pursuit of RES goals—at
a local, sub-regional, regional and national level, as well as
in Europe. The ultimate aim is to influence the nature of policy
and investment decisions in support of the regional economy. This
influencing role extends to the private sector. Second, we lead
a partnership approach to prioritisation and investment via "Investment
Planning". Yorkshire Forward's funding is only one strand
of the total investment necessary for RES delivery. Investment
Planning is the region's approach to aligning, and therefore maximising,
the impact of public sector investment in pursuit of our economic
objectives.
2.3 Delivery Role: Helping people to access
good jobs, skills and transport.
We have invested £10m to create Charity
Bank in the North. This regional initiative, the first of its
kind, is designed to help third sector organisations move away
from dependence on grants and into sustainable self sufficiency.
This investment will enable charities, social enterprises and
community organisations in Yorkshire and Humber to obtain loans,
funds, business advice and mentoring—which commercial banks
are unable to offer this sector. It will also offset the effect
of the reduction in funding available to community economic development
from the EU.
Over the past three years we have been working
with HMP Lindholme, a closed prison, on a highly innovative project
which has shown that effective vocational training can successfully
re-integrate offenders. A new model offers changes to the way
in which the prison delivers training and resettlement support,
and engages with the private sector.
In September 2007, we announced a £9.5m
boost to the region's skills through the funding of a series of
projects to help reverse the decline in science, technology, engineering
and mathematics (STEM) knowledge. The project will help increase
the level of student participation, achievement and progression
in STEM-based subjects and careers, as a result of continued professional
development for teachers, new learning resource development, and
out-of-school activities for students and parents.
Directions Finningley: April 2005 saw
the opening of Robin Hood Doncaster Sheffield Airport (RHDSA),
estimated to create a net additional 6,000 jobs by 2014. This
presented the region with a unique economic development opportunity
and Yorkshire Forward has invested to reap the potential regional
economic and social benefits. Directions Finningley is focused
on meeting the employment and training needs of employers and
individuals. It has established strong industry links that have
given insight into industry needs. By working with Marshall Aerospace
and RHDSA, the site is now home to the National Aviation Training
Academy; and a specialist design, paint and executive jet upgrade
operation considered to be unique in Europe. The National Audit
Office's Independent Performance Assessment notes this investment
as an innovative way to link skills to business and an independent
evaluation highlights the success brought about by a flexible
and entrepreneurial approach.
2.4 Delivery Role: Helping businesses start-up,
grow and compete through innovation
Making business support easier to access:
In 2003 Yorkshire Forward brokered the creation of Better Deal
for Business (BD4B) as a partnership between regional LSC, Business
Link and Yorkshire Forward. This was to improve customer experiences
of, and access to, publicly funded business and skills support
and make best use of resources, helping to drive business success.
BD4B was the forerunner to Yorkshire Forward's work to rationalise
its own business support initiatives in line with national policy
and to re-direct £2.7m per year to frontline services, as
well as its decision to go out to the open market to secure a
supplier for the new Business Link contract.
Centres of Industrial Collaboration (CICs):
The £11.6m CIC programme provides direct business access
to the world-class research facilities and scientific expertise
contained within the region's universities. The National Audit
Office's Independent Performance Assessment notes that through
this Yorkshire Forward has successfully brokered collaborative
working between HE and business—a finding that is corroborated
by a recent independent evaluation. 12 accredited centres provide
support covering the healthcare, pharmaceuticals, chemicals and
biotechnology, digital and electronics, food and drink and engineering
sectors. By June 2008, the CICs had worked on over 1,800 projects
with business, grossed almost £11m of industrial research
income, levered additional funding of £16m, and created or
safeguarded almost 600 jobs.
FDI (Foreign Direct Investment): In 2007-08
Yorkshire Forward, in collaboration with partners, achieved record
outputs for FDI, exceeding the target by 51% with 76 successes
against a year start target of 40. Investment figures show that
out of these 76 investment wins, UKT&I were only involved
in 28 (37%). Over the last 12 months this investment has resulted
in 1,141 new jobs (an increase of 60% on last year) and safeguarded
a further 2,500 jobs—securing employment for 3,641 people
in total. Significant new investment in the region has been made
by the multi-million pound Icelandic Group, which owns an international
network of independent companies active in the USA, UK, France,
Denmark and Germany. New manufacturing and R&D strong projects,
supported by £985k of SFI funding, will create 200 new jobs,
safeguard 517 jobs, and attract private sector investment of £10.9m
within the food sector.
Large Company R&D Scheme: The scheme's
first phase has been very successful, supporting 28 projects over
its lifetime. Considerable tangible benefits have been obtained
in terms of new product development, improved strategic market
positioning, new facilities and increased capacities, increased
levels of skills and expertise, and enhanced competitive advantage.
Independent evaluation suggests that forecast new sales of £526m
over the period to 2012-13 are likely to be grossly understated.
Successful examples include Pace, a set top box manufacturer in
Shipley, whose "multi dweller" technology for use in
flats and hotels is looking extremely encouraging with an estimated
further £7.4m of private sector finance likely to be levered
into the project over the next couple of years. This is the only
region in England offering this sort of innovation support to
large companies.
Rotherham Ready: This is a programme
investing £1.4m over four years to create a culture of enterprise
in the town's schools and colleges. 51 schools have achieved the
University of Warwick Award for Excellence in Enterprise Education;
over 14,000 students have been supported in developing entrepreneurial
skills; and 145 school enterprise champions have been trained.
This sits alongside a package of enterprise support, including
the increasingly successful Enterprise Shows.
2.5 Delivery Role: Regenerating cities, towns
and rural areas
Renaissance Towns and Cities: Clear strategic
leadership from Yorkshire Forward has been critical in establishing
an integrated approach to regenerating urban areas and maximising
their contribution to sustainable economic growth. In total 12
renaissance programmes are operating across 19 towns. Yorkshire
Forward has brought together the public and private sector with
local communities to agree the long term priorities and vision
for the future of their town, creating a framework for aligning
investment behind a set of shared goals. This approach has given
the private sector the confidence to invest, raised aspirations
and emphasised the importance of good design. The transformational
impacts of the renaissance programme are being felt across the
region. In Barnsley, a £10m Digital Media Centre has opened,
the town's transport interchange redesigned, and work has started
on the redevelopment of the market. Wakefield is well underway
with two major projects—Westgate and the Waterfront—that
form the core of their renaissance strategy that will see £90m
invested. Major projects have been completed in Scarborough including
a redeveloped Spa Complex, a £9m Business Park, a Creative
Industries Centre, and public realm improvements to the harbour.
A recent independent evaluation supports the potential for this
programme to make a significant difference to the region's economy.
This sits alongside Yorkshire Forward's commitment
to ensuring that rural areas fulfil their economic potential through
the Renaissance Market Towns programme. Single pot investment
of £140,000 in Northallerton has helped the Chopsticks charity
expand its work with people with learning difficulties; £502,000
in Whitby's Community Centre has provided business and social
facilities; and £1.8m in the Upper Calder Valley has delivered
a mixed-use scheme. The National Audit Office's 2007 Independent
Performance Assessment (IPA) notes the whole programme as one
of the RDA's major successes and turning around local economies,
with Yorkshire Forward instrumental in bringing together—and
levering investment from—local partners including business.
Our £9.5m investment in the Environmental
Energy Technology Centre (EETC), currently approaching completion
on land adjoining the Advanced Manufacturing Park in Rotherham,
with investment from ERDF, will support more than 30 enterprises
engaged in the development of products and services which aid
the transition to a low carbon economy in the region. Businesses
based here will be able to access the expertise behind cutting-edge
manufacturing techniques and other technologies within the neighbouring
Advanced Manufacturing Park.
3. RDA EXPERTISE
Headline Issues
Yorkshire Forward was recognised as a strong
performing RDA in the recent assessment exercise by the NAO, achieving
the top mark in the capacity assessment:
— We have developed a lean and flexible
business structure with a strong focus on in-house expertise,
not reliant on the services of consultants, but with particular
strengths in economic analysis and policy, sustainable development,
strategic property development, business innovation and urban
and rural renaissance—with a strong emphasis on cross-team
work that takes full advantage of the flexibility offered by the
single pot;
— We have worked hard to ensure a strong
interface between the public and private sectors and actively
recruit from the private sector to strengthen our business focus;
— Yorkshire Forward has demonstrated
that it is a highly effective and efficient agency with proven
demand for our expertise and services.
3.1 Yorkshire Forward has unique expertise
in carrying out its role as strategic lead for economic development
in the region.
3.2 In-house expertise: We have built
technical capacity across the organisation and have attracted
experts from the private, public and third sectors. We have particular
strengths in economic analysis and policy, with our Chief Economist's
team increasingly called upon by regional and local partners to
assist in economic assessments and forecasting and strategy development,
and Yorkshire Futures—the regional intelligence function—being
very highly regarded by a very wide range of partners. Our sustainable
development team is leading the region in our ambition for a lower
carbon economy. In-house expertise in property development plays
a vital role working with partners in problem solving in often
very large, complex regeneration schemes. Teams in our business
directorate, with a strong industry background are often very
well placed to ensure a strong interface between the public and
private sectors, and our multi-skilled urban and rural renaissance
teams provide the driving force for the delivery of sustainable
communities, quality design, liveability and physical regeneration.
3.3 Flexibility: Thanks to the flexibility
granted by the single pot, Yorkshire Forward can be fleet of foot—and
can make sometimes difficult decisions—in responding to
economic opportunities and challenges. Key examples of this have
been our rapid response to economic shocks such as foot and mouth
and flooding; our role in the region's Redundancy Task Force;
or leading a bid to host the 2007 International Indian Film Awards,
broadcast to over 500m TV viewers.
3.4 Understanding regional business:
We have a core function to understand business needs and to articulate
this in the RES and in programme design and delivery. We have
significant expertise, demonstrated in programmes such as Key
Account Management; the Logistics Institute in Hull; the Manufacturing
Advisory Service; and through our work with key sectors of regional
economic significance. The latter has facilitated investments
such as the Advanced Manufacturing Park, with investors including
Boeing.
3.5 Innovative solutions: We bring
together the best of Team Yorkshire and Humber to deliver unique
solutions to regional economic challenges—investing £10m
in Charity Bank to help third sector organisations become self-sustaining,
achieving 100% regional broadband coverage, developing the renaissance
approach, investing in additional rail capacity, vocational training
at HMP Lindholme, and the establishment of the Sustainable Futures
Company are examples. In 2007, Yorkshire Forward received a number
of awards recognising achievements. Furthermore, the National
Audit Office's Independent Performance Assessment IPA notes stakeholders
recognising the RDA's achievements in developing exemplar sustainable
development projects.
3.6 Influence, partnership working and
leverage: Yorkshire Forward sets the economic development
agenda and works to generate stakeholder buy-in and activity.
Effective partnerships—from the local (eg delivering the
renaissance agenda), to the regional (eg securing a new regional
strategic relationship in response to SNR), to the national level
(eg annually inputting to HM Treasury Budget)—underpin our
success. We use this influence to secure private sector buy-in,
eg through Carbon Action Yorkshire where top businesses commit
to reducing their CO2 emissions by 20% by 2016. Yorkshire Forward
also uses this role to champion the region, which has generated
real success including in increasing business confidence, heightened
regional profile, and improved aspirations of local communities.
4. THE EXTENT
OF, AND
NEED FOR,
RDA OVERSEAS ACTIVITY
Headline Issues
In 2006, we carried out a full review of our
international business activity—the region had been consistently
in the lower quartile for FDI into the UK. The findings of the
review have resulted in more strongly market-led approach:
— We have boosted the effectiveness
of our operations using specialist agents and utilising our relationships
with the region's top businesses and universities;
— We have adopted a targeted approach
based on strong analysis of current and future market trends,
acknowledging that without targeted interventions and left to
the market most FDI would go to London and the South East.
4.1 In 2006, we carried out a full review
of our international business activity. We wanted to understand
why the region was consistently in the lower quartile for FDI
into the UK. The findings of the review led us to adapt the nature
of our overseas presence and engagement. Our approach to attracting
investment now is based on stronger evidence of market opportunity.
We are promoting identified priority sector offerings in Europe,
America and key emerging markets. An appointed network of sector
specialists are working in these markets to promote our regional
offering eg the role of Leeds as an economic hub in terms of business
and professional services, to generate investment opportunities.
We are working with partners including local authorities, Chambers
of Commerce, universities and sector representatives to co-ordinate
inward investment; ensure we have strong propositions to take
to market; and to build "virtual" teams that maximise
existing international links and local knowledge. The record FDI
figures shown above (paragraph 2.9) demonstrate our success in
this area.
4.2 This is complemented by our work with
UKTI to improve the international competitiveness of regional
businesses. We are adopting a more targeted approach to interventions,
through a restructured Targeted Export Support Scheme grant, where
market opportunity will be based on objective analysis of current
and future market trends and matched against regional sector strengths.
Our Key Account Management function further supports this activity
by working with our top companies to build business intelligence,
facilitate strategic relationships and encourage reinvestment.
5. THE CONSEQUENCES
OF EXPANDING
RDA REMIT TO
INCLUDE NEW
FUNCTIONS, AS
PROPOSED BY
THE SNR, INCLUDING
THE DELIVERY
OF EU FUNDING
Headline Issues
Yorkshire Forward welcomes the opportunities
provided by SNR. The RDA, local government and ultimately the
region will significantly benefit from a greater focus on delivering
sustainable economic development at the right level. The establishment
of an Integrated Regional Strategy (IRS) is a significant opportunity
and will let us focus on those issues that truly require a regional
response.
— Yorkshire Forward will need to adapt.
We will become more strategic; with a wider leadership role, in
terms of functional responsibility and increased partnership working.
We will build capacity in new areas of responsibility. Our Board
will also respond to the wider strategic remit, whilst at the
same time ensuring the continuation of strong business leadership
and engagement;
— At the same time as taking on a wider
strategic role underpinned by the central principle of partnership
working, particularly with local government, we will work to protect
our business-led focus in our operational delivery;
— Businesses create wealth and Yorkshire
Forward's work will continue to be geared towards the public sector
enabling business to operate more effectively.
In terms of EU funding, Yorkshire Forward has
created a new Europe team to oversee the delegated managing authority
functions to run the ERDF Programme as required by CLG. (CLG resource
into this is approx £1m per annum which is a substantial
saving on the admin costs of the previous Objective 1 and 2 programmes).
We have a strong track record in taking on new policy responsibilities
(SFI, tourism, etc) and we are well-advanced in further integrating
EU funding into RES delivery and increasing efficiencies.
5.1 The SNR sets out new arrangements for
decision-making and delivery at regional level. We believe that
in this region, although significant change will be necessary,
we are well placed to respond. Prior to primary legislation being
in place to implement SNR, Yorkshire Forward is working with the
Yorkshire and Humber Assembly and Local Government Yorkshire and
Humber to ensure an effective transition, not least as there remains
a significant body of work in relation to the partial review of
Regional Spatial Strategy (RSS).
5.2 Yorkshire Forward will need to adapt.
We will become more strategic; with a wider leadership role, in
terms of functional responsibility and increased partnership working.
Our planned move to a Geographic Programme-based, rather than
project-based approach to the single pot will be a key. This will
facilitate delegation of RDA funding to local authorities and
as such lead to a greater role for them, and other partners including
the private sector, in economic development. We will build capacity
in new areas of responsibility. Our Board will also respond to
the wider strategic remit, whilst at the same time ensuring the
continuation of strong business leadership and engagement.
5.3 Subject to legislation, as the body
responsible for regional planning, we will need to play a more
significant role in relation to housing. Addressing the region's
housing challenges and meeting ambitious new homes targets emphasises
the importance of effective leadership and strategic planning
at a regional level. Yorkshire Forward will work with the Homes
and Communities Agency, the Assembly, the Housing Market Renewal
Pathfinders and local authorities to ensure that the region can
deliver housing to meet its needs. We will jointly develop a strong
evidence base linking the regional economy, demography and housing
to support the partial review of RSS and the future requirements
of an IRS.
5.4 The RDA/local government relationship
will be pivotal to successful economic development. Local government,
with its democratic mandate, is our route to local people. We
have built a strong relationship with local government, particularly
through our renaissance programme, and will seek to enhance this
further. Our post-SNR relationship has three elements:
— A "strategic relationship"—primarily
to develop and deliver the IRS, but also to influence national
policy and investment (eg through a revised Regional Funding Allocations);
— Scrutiny—a new role of scrutinising
RDA performance for local government; and
— Delivery and delegation—ongoing
delivery relationships and increasing delegation of appropriate
elements of Yorkshire Forward's funding via geographic programmes
and investment planning.
5.5 In terms of EU funding, Yorkshire Forward
has created a new Europe Team to oversee the delegated managing
authority functions to run the ERDF Programme as required by CLG.
(CLG resource into this is approx £1m per annum which is
a substantial saving on the admin costs of previous EU programmes).
5.6 As stated in the national response,
the objective of the ERDF transfer from Government Offices to
RDAs was to better align European and UK domestic funding, streamlining
process and achieving efficiencies.
5.7 Yorkshire Forward has pursued a strategic
approach to the delivery of the 2007-2013 ERDF programme within
the Yorkshire & Humber region and has asked regional partners
to proceed with applications for ERDF investment of £1m+
only. This will result in fewer projects to manage as compared
with previous rounds of EU funding and lead to the required efficiency
savings to be achieved. ERDF processes, wherever possible as well
have been assimilated into day-to-day RDA business processes to
achieve to maximum efficiencies and minimum resource input. A
substantial portfolio of projects is now in development to ensure
that very challenging n+2 targets are met, especially the first
(December 2009) that align ERDF and Single Pot funding.
6. THE ACCOUNTABILITY
OF RDAS
Headline Issues
We were established by Government as a deliberately
business-led agency—but we recognise that we need to continually
strengthen our accountability—particularly in achieving
value for money for taxpayers. Value for money, transparency and
partnership working are central to the agency's core values.
6.1 The SNR and the Modernisation Committee
makes proposals for strengthening regional accountability. Yorkshire
Forward welcomes this work. As a key public sector stakeholder
and delivery body, we have a considerable interest in having strong
regional accountability arrangements in place. We wish to ensure
that new scrutiny and accountability arrangements for the regions
are both effective in their scope and reach, and avoid duplication
or overburdening of the regional and local level.
7. HOW RDA PERFORMANCE
HAS BEEN
MEASURED AND
WILL BE
MEASURED IN
THE FUTURE
Headline Issues
Since our establishment in 1999, Yorkshire Forward
has consistently achieved all core output and expenditure targets.
Our performance has been measured against a target framework,
primarily based on operational outputs set by Government which
has evolved over time. In terms of future measurement, the SNR
sets out a revised regional target framework that requires us
to set an overarching regional growth target, which will underpin
the Integrated Regional Strategy. The economic growth objective
for each region is:
To increase sustainably the region's trend
rate of growth (measured in terms of GVA per head) in comparison
with the region's trend growth over the most recent full economic
cycle.
As a principal delivery agent for the REP PSA,
we support the regional economic growth objectives through our
own direct investment activities and through helping to drive
and coordinate the activities of our partners to achieve regional
growth consistent with the PSA. However, it is our view that the
current methodology that is adopted to measure the Regional Economic
Performance PSA (REP PSA) has a tendency to focus on the second
part of the target, assumes to a certain extent that all regions
have the same economic aspirations and by the same degree does
not sufficiently recognise the economic diversity of the English
regions.
7.1 Yorkshire Forward has consistently achieved
all core output and expenditure targets. Spending £357m in
2007-08 with 94p in every pound spent going towards delivery.
We achieved this whilst at the same time exceeding our Efficiency
Plan's annual and three year targets. Over the three year period,
we exceeded our efficiencies target by £7.917m. The examples
given above demonstrate the value that we are adding in delivering
this spend and outputs and the national impact evaluation will
provide further evidence of this. Our evaluation work continues
to evolve and shape corporate policy and planning. It will play
a vital role in the forthcoming development of the IRS and its
evidence base.
7.2 We believe that the organisation has
benefited from the work carried out in 2006-07 by the National
Audit Office to independently assess the performance of out work.
Overall Yorkshire Forward was rated in the top category "Performing
Strongly" and achieved maximum points in the "Capacity"
category, showing the strength of our staff. We have worked hard
subsequently to ensure the improvement plan is delivered.
7.3 Since 2001, the RDA has worked with
the Yorkshire and Humber Assembly to develop the role of scrutiny,
and to carry out Scrutiny Reviews. The aim is to ensure that RES
objectives are being acted on, progress is monitored, and the
desired outcomes are met, for the benefit of the economy. There
are two reviews per year, culminating in recommendations for action
by Yorkshire Forward and a public report; with progress monitored
every six months.
7.4 Evaluation of our projects and programmes
helps us to learn and measure the impacts of what we do. We developed
an Evaluation Strategy in 2004 and have been working to fully
embed the requirements of the RDA Impact Evaluation Framework
since its issue in 2006. Our evaluation activities are currently
focused on the evidence needs of the national impact report to
be finalised in November 2008. Looking to the future, we have
developed a forward programme of evaluation to ensure that all
our main areas of activity are covered by IEF compliant independent
evaluation. Annex A, presents an assessment of our performance
against headline targets since our inception.
7.5 In terms of future measurement, the
SNR sets out a revised regional target framework which will underpin
the Integrated Regional Strategy. In summary, the new framework
requires us to set an overarching regional growth target. The
economic growth objective for each region is:
To increase sustainably the region's trend
rate of growth (measured in terms of GVA per head) in comparison
with the region's trend growth over the most recent full economic
cycle.
7.6 Our current Corporate Plan sets this
target at a trend rate of GVA per head growth of 1.8%+ over the
Corporate Planning period (2008-2009 to 2011-2012). The overarching
target is underpinned by five outcome-focused performance indicators.
These are consistent with the drivers of productivity and employment,
and are in line with the indicators for the REP PSA target. As
a principal delivery agent for the REP PSA, we will support the
regional economic growth objectives through our own direct investment
activities and through helping to drive and coordinate the activities
of our partners to achieve regional growth consistent with the
PSA.
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