Agenda item

            The Committee considered the following report:

“1.0      Purpose of Report or Summary of main Issues

1.1       To update Committee on the £850m investment Programme agreed for Belfast Region City Deal (BRCD) and to outline next steps including the signing of the Heads of Term document and the arrangements that need to be put in place to deliver the Programme. 

2.0       Recommendations

2.1       The Committee is asked to note;

·        The successful BRCD bid which has secured at least £850m investment programme for the region.

·        Next steps including the signing of the Heads of Term and the need to establish resources to further develop and deliver the investment programme.

3.0       Main report

3.1       Members will be aware that a major programme to enable the development of the Belfast Region City Deal (BRCD), in accordance with the requirements of the Ministry for Housing, Communities and Local Government (MHCLG), resulted in the submission of the BRCD proposition document to NIO and UK government on 30th September 2018. 

3.2       A number of weeks negotiation and engagement took place including a successful event in Westminster where all the partners came together to present the proposed programme and projects to political and business representatives.   

3.3       In his budget on 29th October 2018 the Chancellor announced a commitment of £350m from UK government to the (BRCD), levering at least £350m from NI regional government, £100m from the BRCD councils and £50m from the two universities.  This provides a starting funding package of £850m which will be further enhanced by at least £150m private sector investment, providing the BRCD with a 10 year £1billion Programme of Investment. 

            Programme Update

3.4       The BRCD comprises of approximately 22 projects across the investment pillars of Digital / Innovation, Infrastructure and Tourism led Regeneration underpinned by a significant employability and skills programme.  Each of the capital projects will require significant resources in their own right but the benefits of the deal can only be realised when managed and delivered at an overall programme level.  It is anticipated that BCC will be expected to act as the lead authority and accountable body, and therefore will now be required to work with the BRCD partners to put in place the appropriate management structures to manage and deliver this £1billion Investment programme in areas including;

·        Governance and Decision Making

·        Financial Planning and Management

·        Programme and Project Management

·        Performance Monitoring and Assurance

·        Communication and Engagement

3.5       All of these strands will not only need to build on the partnership arrangements already established at programme level but will have to be tailored at investment pillar level given the size and complexities of the projects and to ensure synergies at pillar and programme level.

3.6       In addition specific city region structures will need to be established to develop the Digital strand of the programme, given that this is not owned by a specific partner, the specialist nature of the projects and the potential for significant private sector investment. Specialist technical support will also have to be procured to support this strand.

3.7       Learning from other deals suggests it can take up to a year to develop the programme structures and develop an implementation plan.  It is envisaged that work will continue in developing individual business cases which will also feed into the delivery plan and financial strategy.

3.8       Given the scale of the Programme it will be necessary to allocate resources to support the development and delivery of the BRCD.  Officers are liaising with other authorities who are delivering similar city deals to help inform the possible structures and resources required to deliver the BRCD.  Following this a further report will be brought to committee with proposals including the likely resources required to deliver the BRCD Investment Programme.

            Next Steps

3.9       Heads of Terms

            Officers are liaising with the NIO and MHCLG who are now drawing up the Heads of Term document which details the funding commitments outlined in the report and will then be signed by both UK and Regional governments, the six councils and the two universities.

            It is envisaged that this process will be completed in advance of Christmas allowing the BRCD partners to move ahead with the further development of individual projects.  This Heads of Term will be brought to committee and council for formal approval.

3.10      Financial & Resource Implications

            Finance for the further development and implementation of the Belfast City Region Deal is being considered as part of the 2019 / 20 rates setting process.

            Additional costs associated with the development of the BRCD will be allocated across the BRCD partners.

3.11      Equality or Good Relations Implications/Rural Needs Assessment

            The Approach taken to develop the City Deal has been subject to independent equality screening and rural proofing and states that;

            BRCD is inherently inclusive, affording an opportunity for the region to grow in a way that will benefit the economy of Northern Ireland as a whole, thereby enhancing the lives and well-being of its citizens. If during further development of the programme it becomes apparent that there may be an adverse impact on certain groups or communities then the partnership commits to carrying out further Section 75 work and including screening and EQIAs as and when appropriate.”

            The Committee adopted the recommendations and noted the possibility to the holding of a special Council meeting before Christmas to sign off the Heads of Terms.