Economy, Place, Access, and Transport Policy Scrutiny Committee

 

22 January 2024

Report of the Corporate Director Place

 

Draft Economic Framework for York & North Yorkshire Mayoral Combined Authority

 

Summary

 

1.      This report sets out a draft Economic Framework for the York and North Yorkshire Mayoral Combined Authority (MCA) for Scrutiny consideration and feedback.

 

Recommendations

2.        The Committee is asked to consider the draft York & North Yorkshire Economic Framework for the MCA and provide feedback to the Joint Devolution Committee


Reason: To keep the committee updated on this key draft document for York and North Yorkshire and ensure that it reflects City of York priorities.

 

Background

 

3.      The York and North Yorkshire Combined Authority (CA) was created on 20 December 2023, with a Mayoral election scheduled in May 2024. The aim of producing an economic framework now is to ensure that the CA is in a strong position when the mayor is elected in May 2024.

4.      Whilst acknowledging that a mayor will want their own opportunity to shape development of a long-term economic strategy, it is envisaged that the Economic Framework will provide initial direction for the CA and help with Joint Devolution Committee decision-making and prioritisation in advance of the mayor. The Economic Framework will also help create a strategic focus and ensure that the mayor is elected to a region and Constituent Local Authorities with a shared strategic ambition and established priorities.

5.      The draft Economic Framework for the York and North Yorkshire MCA was approved by the Joint Devolution Committee on 15th December 2023.  A copy of the full Joint Devolution Committee report is attached as Annexe A for information.

6.      As Annexe A explains, the draft framework seeks to build on the strategic economic plans of the City of York Council and North Yorkshire Council alongside existing sub-regional strategies, all of which have been developed from wider consultations and robust evidence bases.  This includes the York Economic Strategy, which was adopted by City of York Council in November 2022 and was the subject of a separate report to Economy, Place, Access, and Transport Policy and Scrutiny Committee in November 2023.

7.      The draft framework seeks to build on the synergies between the existing strategies and to identify the opportunities for the York & North Yorkshire sub-region that complement local ambitions and provide opportunities for economies of scale and shared benefits across the whole geography.

8.      A series of workshops have been undertaken with senior officers and the Leaders of City of York and North Yorkshire Councils to refine the draft Framework and ensure alignment with local ambitions.

 

9.      The Joint Devolution Committee has agreed that the draft Framework will now be subject to further consultation with elected members and officers of both Local Authorities and wider stakeholders.

 

Options

 

10.   Scrutiny members are being asked to consider what feedback, if any, the City of York Council should provide to the MCA on the draft Economic Framework.

11.   The draft economic framework is a single page diagram, as illustrated below:

 

12.   As the diagram shows, the framework has three overarching ambitions (shown in the outer ring of the diagram) as follows:



-      Transition to a carbon negative region: A carbon negative, circular and more resilient economy

-      Deliver good economic growth: A global, innovative, productive economy with strong and thriving businesses

-      Increase Opportunities for all: A thriving and inclusive economy

There is also a cross cutting theme around health and wellbeing (shown in the second ring on the diagram above).

13.   To deliver these over-arching ambitions, the framework also sets out eight priority themes:

 

·        Great Places sit at the heart of the plan, reflecting their importance to the economy of York and North Yorkshire and reflecting that they often act as the link between the other seven investment themes.  It recognises that York and North Yorkshire is comprised of many distinct places (ranging from rural, coastal, city/urban and market towns), each with their own strengths and challenges.

·        A Well-Connected Economy, reflects the importance of transport and digital in connecting businesses and people to opportunities;

 

·        Housing, with a particular focus on increasing affordable and sustainable homes;

·        A Thriving Workforce will develop clear opportunities and skills pathways for all

·        A Green & Circular Economy, reflects the value of our natural capital and economic potential of a sustainable energy sector;

·        A Global Economy, will develop the inward investment potential of the region prioritising high growth sectors;

·        A Productive & Innovative Economy will drive the performance of established core sectors, including through innovation and research & development;

·        Culture & Heritage reflects the world leading status of our cultural and heritage assets and will seek to strengthen and increase investment into them.

 

 


14.   The Joint Devolution Committee report acknowledges that, to complement the Framework, investment plans will need to be developed across the priority themes, identifying priorities and opportunities across York and North Yorkshire. This work will be done collaboratively and a further paper will be brought to the Combined Authority in due course outlining these plans.

15.   To support this process, the Joint Devolution Committee report also acknowledges the need to ensure a strong pipeline of projects to enable early investment decisions should the economic framework align with the Mayors priorities.   A separate budget update paper on the agenda for the same Joint Devolution Committee (attached as Annexe B) agreed an initial allocation of £1 million of revenue funding (from the £9m Mayoral Investment Funding to be received on creation of the Combined Authority) to support development of investible pipeline projects. 

16.   The aim of this initial ‘pipeline’ money is to ensure that City of York and North Yorkshire Councils have sufficient capacity to develop full business cases for priority projects which align with the Economic Framework. Both Councils will be asked to identify their own priority projects for this business case funding, and it is proposed that the funding is shared equally between the two authorities. Agreement to the specific projects that will be funded, and the delivery of the specific outcomes required from the funding has been delegated to the Interim Director of Transition and Interim S73 Officer.  

 

17.   The Joint Devolution Committee report also identified that a core element of the devolution deal is a 30-year Mayoral Investment Fund. A statutory requirement of this Fund is to deliver a 5-Yearly Gateway Review, essentially demonstrating progress and impact made via the investment. As part of that process, a Local Evaluation Plan and baseline report must be created. This Framework will help to establish that baseline position for future monitoring and evaluation.

 

Consultation

 

18.   A series of workshops have been undertaken with senior officers and the Leaders of City of York and North Yorkshire Councils to refine the Framework and ensure alignment with local ambitions.

19.   The Joint Devolution Committee has agreed that the draft Framework will now be subject to further consultation with elected members and officers of both Local Authorities and wider stakeholders, hence this report is being brought to Scrutiny for consideration.

 

Council Plan

 

20.   The City of York 10-Year Plan (York 2032) and Council Plan ‘One City, for all’ have been fully considered in the preparation of the Framework, including the four core commitments of Equalities, Affordability, Climate and Health – as illustrated by the fact that all eight of the priority themes set out at paragraph 13 have direct relevance.

 

21.   Health and Wellbeing has been embedded across the draft framework (recognising the key role in supporting the wider determinants of health e.g., transport / air quality, good housing, good jobs etc) and it is under-pinned by three strategic ambitions which also link to York’s core commitments as follows:

-      Transition to a carbon negative region: A carbon negative, circular and more resilient economy (Links to the CYC Climate & Environment core commitment and the York Climate Change Strategy)

-      Deliver good economic growth: A global, innovative, productive economy with strong and thriving businesses (Links to the CYC Affordability core commitment and the York Economic Strategy)

-      Increase Opportunities for all: A thriving and inclusive economy (Links to the CYC Affordability and Equalities core commitments)

 

22.    The Joint Devolution Committee report acknowledges that these three strategic ambitions, coupled with a commitment to improving health and wellbeing for all should be at the heart of future decision making for all aspects of the Framework.

 

Implications

 

23.   There are no direct financial implications linked to the recommendations of this scrutiny report.  However as set out in paragraphs 15-16 above and Appendix B, there is a positive financial implication from the separate Joint Devolution Committee decision to allocate MCA funding to North Yorkshire and City of York Councils for capacity to support development of a project pipeline.  For City of York, the MCA funding is likely to be used to help enhance officer capacity and/or to commission external professional capacity where relevant, to help accelerate strategic business case work relating to key York priorities.
 

24.   Work is underway at a corporate level to develop a prioritised project pipeline, linked to the MCA Economic Framework.  The process for drafting the project pipeline has been agreed via Corporate Management Team (CMT) and involves the CYC Policy Officer Network (representing policy officer leads from across the council) developing proposals for CMT consideration, followed by portfolio discussions.  In parallel, policy leads will also discuss the emerging pipeline with their equivalents in North Yorkshire Council and with Combined Authority colleagues to ensure future project deliverability and shared priorities.   

25.   There are no implications from the recommendations in this report in relation to:

·                   Human Resources (HR)

·                   Equalities

·                   Legal

·                   Crime and Disorder        

·                   Information Technology (IT)

·                   Property

 

Risk Management

 

25.  There are no known risks to the recommendations in this report.

Contact Details

 

Author:

 

Chief Officer Responsible for the report:


Author’s name Kathryn Daly

Title Head of City Development

Dept Name Place

Tel No. 01904 554153

 

Co-Author’s Name Claire Foale

Title Asst Director Policy & Strategy

Tel No. 01904552057

Chief Officer’s name:  Neil Ferris

Title: Corporate Director Place

 

Report Approved

Date

8/1/24

 

 

 

 

 

 

 

 


Specialist Implications Officer(s)

 

Financial                                        

Name         Debbie Mitchell                               

Title            Chief Finance Officer                               

Tel No.       01904 554161                                

 

Wards Affected:  [List wards or tick box to indicate all]

All

ü

 

 

 

For further information please contact the author of the report

 

 

 

Background Papers:

 

There are no background CYC papers relating specifically to the MCA Economic Framework. The following links relate to CYC decisions that will be considered in the project pipeline work:

 

Council approve 10-Year Plan (York 2032) Agenda for Council on Thursday, 15 December 2022, 6.30 pm (york.gov.uk) item 36

 

Council approve the Council Plan 2023-2027 Agenda for Council on Thursday, 21 September 2023, 6.30 pm (york.gov.uk) item 6



Annexes

 

A.      Joint Devolution Committee Report - Economic Framework for the York and North Yorkshire MCA– Friday 15 December 2023

 

B.      Joint Devolution Committee Report – Finance Update - Friday 15 December 2023

 


List of Abbreviations Used in this Report

 

CA              Combined Authority
CMT           Corporate Management Team
CYC           City of York Council
MCA           Mayoral Combined Authority