Alison JarrettAssistant Director Finance – Development and Culture

Birmingham City Council

Investment through austerityor

the answer’s jobs, now what’s the question?

The Jaws of Doom

The Heseltine Hope

No Stone Unturned – headlines• 89 Recommendations

• Big ideas….– Single Pot of funding

– Localise EU Funding

– Legal status for Chambers

– Unitary local government

– Conurbation Mayors

• 81 Accepted

– Single Local Growth Fund

– From 2014

– Rejected

– Rejected

– Seeking legislation

Be careful what you wish for…

AREA FUNDING STREAMS 15/16

TRANSPORT Local Authority Transport Majors 819

Local Sustainable Transport Fund 100

Integrated Transport Block 200

SUB-TOTAL 1,119

SKILLS Further Education capital 330

ESF skills match funding 170

SUB-TOTAL 500

HOUSING New Homes Bonus 400

SUB-TOTAL 400

TOTAL 2,019

• 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

Local Enterprise Partnership 2020 Targets

Enterprise Zone

Eastside & Science Park

Paradise & Westside

Snow Hill

Wholesale Market

Enterprise Zone

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

• New Street Station £ 630m• Midland Metro £ 125m• Airport expansion £ 125m• Highway/Lighting PFI £ 2,700m• Library of Birmingham £ 190m• Green housing retrofit £ 1,500m• Eastside Park £ 60m• Enterprise Zone £ 875m• Digital infrastructure £ 10m• High Speed 2 terminal ? £ 1,000m

Example current investments

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