Transcript In an age of austerity, maximising the sources of funding

Investment through austerity
or
the answer’s jobs, now what’s
the question?
Alison Jarrett
Assistant Director Finance – Development and Culture
Birmingham City Council
The Jaws of Doom
Grant Reductions and Budget Pressures
350
250
150
£million
50
2010/11 Adj
2011/12
2012/13
2013/14
2014/15
-50
-150
-250
-350
Grant Reductions
2015/16
2016/17
£615
The Heseltine Hope
No Stone Unturned – headlines
• 89 Recommendations
• Big ideas….
– Single Pot of funding
• 81 Accepted
– Single Local Growth Fund
– From 2014
– Localise EU Funding
– Rejected
– Legal status for
Chambers
– Rejected
– Unitary local government
– Conurbation Mayors
– Seeking legislation
Be careful what you wish for…
AREA
FUNDING STREAMS
TRANSPORT
Local Authority Transport Majors
819
Local Sustainable Transport Fund
100
Integrated Transport Block
200
SUB-TOTAL
SKILLS
1,119
Further Education capital
330
ESF skills match funding
170
SUB-TOTAL
HOUSING
SUB-TOTAL
TOTAL
15/16
500
New Homes Bonus
400
400
2,019
Local Enterprise
Partnership 2020 Targets
•
100,000 new jobs
•
£8.25bn increase in GVA
•
Key sectors:
– Advanced Manufacturing
– Business & Financial Services
– Clinical research & Med-tech
– Creative & Digital
– Low Carbon technology
– Research & Development
– Transport & Building Technologies
•
Build a world class workforce
Enterprise Zone
Enterprise Zone
Paradise &
Westside
Snow Hill
Wholesale Market
Eastside &
Science Park
Enterprise Zone Impact
• 40,000 new jobs across
range of growth sectors
• Floor Space
–By 2015, 97,000 sq.m of
new development
–Once complete 1.3m sq.m
including 700,000 sq.m
office/commercial
–The re-use of 3.8 hectares
of buildings/land
• £2.bn+ GVA per annum
Example current
investments
Example current investments
•
•
•
•
•
•
•
•
•
•
New Street Station
Midland Metro
Airport expansion
Highway/Lighting PFI
Library of Birmingham
Green housing retrofit
Eastside Park
Enterprise Zone
Digital infrastructure
High Speed 2 terminal ?
£ 630m
£ 125m
£ 125m
£ 2,700m
£ 190m
£ 1,500m
£
60m
£ 875m
£
10m
£ 1,000m
City Deal 2 – exploring
the following…
• Transport
– 10 year block funding for majors
– Exemption from Council Tax levy
– TfL type powers
• Skills
– Delegation of SFA responsibilities
• Housing
– Lifting the borrowing cap
• Employment
– Local management of ‘Work Programme’
• Opportunity to pilot ‘Gainshare’ scheme (earn-back)
• Whole place pilot – opportunity for ‘neighbourhood’ focussed
approach
What else is in the armoury?
RGF
FINANCE BIRMINGHAM
PRIVATE INVESTMENT
GAINSHARE
AIRPORT PASSENGER DUTY
ASSETS – SALE AND LEASEBACK
SALE OR RENTAL OF ASSETS
MOBILE INVESTMENT FUND