Minutes:
Mick Lazarus, Regional Towns Lead, Ministry for Housing, Communities and Local Government, provided the Board with an update on the guidance associated with Town Fund application submissions.
It was reported that a detailed framework was in the process of being developed which would assist in the submission of Town Fund applications. There were three main cohorts for the submission of applications, noted as 1 July 2020, October 2020 and the end of March 2021. It was emphasised that there would be no advantage in submitting an application early compared to waiting for the final cohort in March 2021, as it was acknowledged that different areas were at different stages of their Town Deal considerations and proposals.
Kate Ellis asked whether the submission should consist of the investment plan and details of the potential projects that would effectively make up the Town Deal. Confirmation was provided that the submission should include the list of projects but that it was not expected that these should be accompanied by detailed business cases at this stage.
Lord Cormack sought clarity as to whether there would be any detriment to Lincoln’s cause in submitting its proposals in the first or final cohort and whether there would be an opportunity to change or add to the proposal once it had been submitted. It was noted that one submission could be made and there would be no further opportunity to make a resubmission.
Ursula Lidbetter asked further whether there would be any opportunities to submit a draft of the proposals or if there was just one single submission of the final proposal for Lincoln’s Town Deal. It was reiterated that there would be one submission. The Board was recommended to use its time before the submission to liaise and consult with its contacts at the Ministry for Housing, Communities and Local Government and Department for Business, Energy and Industrial Strategy as there would be no further opportunity to resubmit a proposed Town Deal.
Jo Walker asked whether any further information was available on the level of funding and requirement for co-funding or match funding and any due diligence processes that would be required for releasing those funds. It was reported that no ratios had yet been set in respect of co-funding but that co-funding would be an important aspect of Town Fund applications.
Pete Holmes, Assistant Director for Cities and Local Growth Unit for the East Midlands at the Department for Business, Energy and Industrial Strategy, confirmed that the evidence base and details of the projects included as part of the submission would be considered as part of negotiations which, inevitably, would translate into heads of terms. These would set out expectations as to how investments in the respective projects would address specific issues or contribute to improving economic growth as part of the Town Deal and which projects should be treated as priorities.
Caroline Killeavy asked how the Board would evaluate its projects and whether external consultants would be used for this part of the process. It would be necessary to wait for publication of the guidance, together with the framework previously referred to, but an external evaluation of the projects, deliverability and outcomes would be necessary. It was essential that the projects could achieve what they had been set up to achieve as part of the Town Deal, that they were strong and had maximum support of all partners on the Board.
Leo-Scott Smith acknowledged that there was no advantage in submitting early but asked, in terms of processing and decision making, whether the Government would wait until the end of the final cohort before making decisions on Town Fund applications or whether there would be a rolling decision making process. It was reported that, once submitted, the process of assessing the application, inclusive of negotiation, should take two to three months before a decision was made and heads of terms agreed. It would therefore consist of a rolling decision making process, rather than assessing all Town Fund applications at the same time at end of the final cohort for submissions.
Mary Stuart made the point that a later submission would provide the Board with more evidence to draw upon as part of its Town Deal evidence base and submission. An optional submission in October was therefore generally favoured.
It was RESOLVED that the update be noted.