Appendix O Funding Opportunities and Delivery Options

There are a wide range of public sector funding opportunities available to unlock development schemes. For each funding stream there is a different process and set of criteria to meet to obtain funding. Funding opportunities are dynamic with new funding streams coming forward comparatively frequently.

The majority of funding routes require an application form and adherence to the HM Treasury Five Case Model. The Five Case Model is the approach for developing business cases recommended by HM Treasury, the Welsh Government, and the UK Office of Government Commerce. It is widely used across central government departments and public sector organisations.

The purpose of the HM Treasury Five Case/Green Book Compliant route is to address specific questions and provide evidence to satisfy the approver or funder on the following themes:

Towns Funding

On 6 September 2019 the government invited 100 places in England to develop proposals for a Town Deal, forming part of the £3.6 billion Towns Fund.

The Towns Fund seeks to drive the economic regeneration of deprived towns and deliver long-term economic and productivity growth, by renewing and reshaping town centres and high streets in a way that drives growth, improves user experience, and ensures future sustainability.

Town Deal Boards are responsible for developing a Town Investment Plan that sets out a clear vision and strategy for the town. Plans should reflect local priorities and be co-designed with local businesses and communities. A Town Investment Plan will be used as the basis for agreeing the Town Deal. Following the Town Investment Plan, the second stage of the application process requires Heads of Terms to be agreed and a Full Business Cases to be prepared and submitted for local assurance.

Strategic

Policy context and strategic drivers / the case for change

Commercial

Overview of market/supply side and approach to commercial delivery

Management

Programme management arrangements and key programme milestones

Financial

Overview of capital and revenue resource available and outline of sources and application of funding

Economic (Including Benefit Cost Ratio)

Programme level option assessment and portfolio of sub-programmes and projects.

The Towns Fund comprises up to £25m to deliver local priorities whether that be regeneration, transport, culture, employment & skills. Projects have to be delivered by March 2026.

Brownfield Land Funding

The £75m Brownfield Land Release Fund (BLRF) can be leveraged to support the release of local authority-owned brownfield land for housing. The fund will also seek to support self and custom-build projects on both brownfield and greenfield sites.

The Fund is administered through the One Public Estate Programme, a partnership between Cabinet Office, the Ministry of Housing, Communities & Local Government, and the Local Government Association.

The BLRF offers up to £75 million of capital grant funding to unlock and accelerate the release of sites. Of this £75m, £25 million will be allocated for self and custom-build projects that meet the gateway criteria.

Encourage the use of public assets to drive innovative delivery, through SME support, bespoke delivery models, high-quality design and modern methods of construction.

Demonstrate a return for Government investment into these small sites.

Enable schemes to deliver within the funding timescale.

It is expected that this funding to be attractive to sites typically accommodating up to 250 homes, but larger sites may be considered by exception.

All local authorities across England are eligible to apply, apart from those in Mayoral Combined Authority (MCA) areas that had the opportunity to benefit from the £400 million Brownfield Housing Fund (Greater Manchester, Liverpool City Region, North of Tyne, Sheffield City Region, Tees Valley, West Midlands and West Yorkshire).

Levelling up Funding

The Levelling Up Fund will invest in local infrastructure that has a visible impact on people and their communities. This includes a range of high value local investment priorities, including local transport schemes, urban regeneration projects and cultural assets. The Fund is jointly managed by HM Treasury (HMT), the Ministry of Housing, Communities and Local Government (MHCLG), and the Department for Transport (DfT). The Fund will focus investment in projects that require up to £20m of funding.

Applications for funding are required to demonstrate how proposed investments will support relevant local strategies and their objectives for improving infrastructure, promoting growth, enhancing the natural environment and making their areas more attractive places to live and work. Local areas will also need to show why the proposed investment or set of investments represents the highest value local priorities.

To provide an insight into the funding landscape and the types of funding which is available, a range of funding streams are set out below, with key elements of the fund such as how much can be applied for and the expected outcomes might be denoted:

The aims of the Brownfield Land Release Fund are to:

Release local authority owned land by the end of March 2024 for housing development that otherwise would not come forward during that period.

An initial funding round closed on 18th June for schemes related to transport, culture, regeneration, towns funding objectives. A second round opens in Autumn 2021.

Appendix O Cultural Strategies continued

Homes England Funding Community Renewal Funding

Homes England is an executive non-departmental public body, sponsored by the Ministry of Housing, Communities and Local Government. Homes England offers a range of funding opportunities to its investment partners. Organisations can apply to become an investment partner with applications determined on criteria such as financial and commercial standing.

Affordable Homes Programme

Through its Affordable Homes Programme 2021 to 2026, Homes England provides grant funding to support the capital costs of developing affordable housing for rent or sale. There are two routes to access this funding: scheme by scheme bidding through continuous market engagement or a multiyear strategic partnership to access grant for a longer-term development programme.

Home Building Fund

Through its Home Building Fund, Homes England can loan between £250,000 and £250m to cover development or infrastructure costs. Smaller loans for innovative housing solutions and serviced plots for custom builders are available. Interest is payable at transparent, pre-agreed variable rates. Sales income can be recycled to minimise the loan request.

The UK government is providing £220 million through the UK Community Renewal Fund to help local areas prepare for the launch of the UK Shared Prosperity Fund in 2022. This Fund aims to support people and communities most in need across the UK to pilot programmes and new approaches and will invest in skills, community and place, local business, and supporting people into employment. All places across the UK are eligible for pilot funding. The funding will replace the EU Structural Fund which ends in 2023. Successful projects will be announced in July 2021 onwards.

The UK Shared Prosperity Fund will include:

A place-based portion which will target places most in need across the UK, such as ex-industrial areas, deprived towns and rural and coastal communities; and

A second portion of the Fund will be targeted differently to people most in need through bespoke employment and skills programmes that are tailored to local need. This will support improved employment outcomes for those in and out of work in specific cohorts of people who face labour market barriers.

North West Evergreen Fund Cultural Funds

The North West Evergreen fund provides development debt for a wide range of commercial, energy efficiency, low carbon energy generation, regeneration property, and infrastructure projects within Greater Manchester, Cheshire & Warrington and Lancashire. The Fund has £140m to invest and is supported by the European Regional Development Fund programmes 2007-2013 and 2014-2020, the JESSICA Programme, as well as by 16 local authority partners. The fund seeks to invest in projects where there is a clear benefit to the local employment, regeneration, environmental, and economic prospects that cannot access debt from traditional sources.

The fund was established in 2011 and has supported 21 projects including Citylabs 1, Didsbury Tech Park, Broadway Green, and Ince Loan 2.

Heritage Lottery Funding

Grants available ranging from £3,000 to millions of pounds. Monies must go towards heritage schemes which will deliver the following outcomes: heritage will be in better condition; heritage will be identified and better explained; and people will have learnt about heritage, leading to change in ideas and actions.

Arts Council

Individual artists and practictioners, community and cultural organisations, museums and libraries can apply for arts, museums and libraries projects that engage people in England with creativity and culture.

Museum Development Fund

Capital grants available between £50,000 and £5 million. To be eligible, applicants are required to be non-national Accredited museums based in England, and/or local authorities based in England who are responsible for maintenance of nonnational Accredited museum buildings. Through the fund it is expected that museums across England will improve their core infrastructure by tackling their maintenance backlogs and reduce the immediate risks to buildings, visitors, staff and collections due to improved core infrastructure.

Appendix O

Cultural Strategies continued

Delivery / Intervention Options

Some sites across the City Centre have barriers which have prevented them from being brought forward for development / investment. These barriers can be categorised as follows:

Viability gap

An issue affecting many local authorities, whereby the cost of development and risk, exceeds the sales / rental values, which minimises profit for private sector developers;

Land ownership/assembly

Fragmented land ownerships require a greater resource to assemble land, which can deter developers; and

Lack of demand from developers/occupiers

There may be either a lack of demand, or lack of evidence of demand for developers, who therefore view sites as too risky, which affects viability. Also, there can be a lack of comparable evidence to demonstrate demand and values therefore making it difficult for developers to secure debt funding.

To assist with overcoming these barriers, the Council could adopt a number of intervention tools. These tools are indicated below. The tools have been categorised into those which require varying levels of effort and risk by the Council.