Liverpool City Region Combined Authority

Devolution Deal Monitoring and Evaluation Framework

Submission to BEIS

27th September 2018Version 0.2

1

CONTEXT

Introduction

1.1 Monitoring and evaluation (M&E) is a critical component of an effective performance management regime. M&E quantifies and assesses the relative impacts and benefits of a scheme or series of policy interventions, including how it was delivered and whether the investment generated the intended benefits and delivered value for money. M&E creates a feedback loop to inform future policy development, priorities and budgets.

1.2 Figure 1 below demonstrates the ‘virtuous circle’ that effective, appropriate and proportionate monitoring and evaluation can support in the delivery of strategic objectives:-

Figure 1: Monitoring and Evaluation activities aligned with Project Life Cycle activities

2

1.3 The detailed processes associated with this model will be reviewed over the course of the next year. This is in the context of the Combined Authority’s new Strategic Investment Fund (SIF) Strategy which was adopted in July 2018 and which will recast the way future SIF schemes are commissioned and evaluated.

1.4 Similarly, the population of the Combined Authority’s staffing structures within its newly created directorates (Policy & Strategic Commissioning and Investment & Strategic Development) mean that the processes associated with managing M&E will evolve, not least in respect of the establishment of a Corporate Programme Management Office. These on-going changes will be reflected in the next iteration of this M&E plan in 2019, though the underlying principles will be maintained.

Purpose

1.2 The purpose of this document is to set out the approach of the Liverpool City Region Combined Authority (LCR CA) to M&E. It also includes the approach taken by the LCR’s Local Enterprise Partnership, which has specific roles and responsibilities aligned to the wider devolution deal. Although M&E is by no means a new concept to the LCR, it is increasingly important in the context of the Devolution Deal and which granted additional powers, freedoms and funding resources to the LCR CA.

1.3 The LCR CA’s Devolution Deal specifically includes a commitment between Government and the LCR CA to work together in developing an approach to monitoring and evaluating the impact of the Deal. A summary of the Devolution Deal is at Annex A.

1.4 This document sets out the LCR CA’s approach to M&E. It is locally owned and has been agreed with the Cities and Local Growth Unit. This document will also be reviewed annually so that it remains relevant and fully aligned to the progress of the Devolution Deal. On-going dialogue will thus be maintained with BEIS and other relevant government departments as this plan is implemented and reviewed.

LCR CA Commitment to M&E

1.5 The LCR CA is committed to implementing effective M&E so that it is able to:

a) Provide local accountability to the public by demonstrating: how devolved funding is spent and the benefits achieved; and tracking progress against local strategies and action plans (such as the ‘Building Our Future’ Single Growth Strategy1). As such, M&E will be important to demonstrate the value and effectiveness of local decision-making and to shape future priorities;

b) Comply with external scrutiny requirements i.e. to satisfy conditions of the Devolution Deal. Specifically, M&E will be used to demonstrate local progress and delivery to senior government officials and Ministers who are ultimately accountable to parliament for devolved funds;

c) Understand which policies/interventions work and are effective; and justify reinvestment or further funding. M&E will provide a useful feedback loop and enable this to be communicated to relevant stakeholders;

1 http://liverpoolcityregion-ca.gov.uk/uploadedfiles/documents/SGS_SUMMARY.pdf

3

d) Develop an evidence base for input into future business cases and land use/transport models; and can also be used for developing future submissions when competing for funds. M&E will collect, collate and analyse data which can be utilised for future work.

1.6 This framework aims to ensure that these commitments are delivered by setting out the approach, principles, resource and responsibilities together with the proposed approach to evaluating each element of the Devolution Deal.

LCR CA Approach to M&E

1.7 The LCR CA’s approach to M&E makes use of the Magenta Book2 definition of monitoring and impact evaluation:

Monitoring EvaluationSeeks to check progress against planned targets, formal reporting and evidencing that spend and outputs are successfully delivered and milestones met.

Assessment of the effectiveness and efficiency during and after policy/intervention implementation. It seeks to measure outcomes and impacts to assess whether anticipated benefits are realised.

1.8 Monitoring: The LCR CA will be using its performance management regime as the primary means of monitoring progress of the objectives/deliverables set out in the Devolution Deal. The same system will also be used to undertake performance management of other key areas of the LCR CA’s activity and interest such as the projects funded from the Strategic Investment Fund. Performance management reports will be provided regularly to the LCR CA’s governance structures to inform decision-making and if necessary additional interventions to deliver the agreed outcomes. The LCR LEP Board will receive reports on the performance and effectiveness of Local Growth Funds being invested through the SIF. Reports will also be provided to the Cities and Local Growth Unit.

1.9. Evaluation: The LCR CA will adopt a two tier approach, which is in line with government requirements:

a) A summary of how and where activity relating to Devolution Deal commitments will be monitored, locally or centrally and set out in Annexes B to K. For each theme there is a description of what has been devolved, the theory of change which underpins the devolving of that power/responsibility and where known how monitoring and evaluation of the theme/project will be resourced, what typical research questions will be posed, what data will be needed to answer these questions, and how findings will be disseminated.

b) Detailed plans for evaluating a small number of specific initiatives within the Devolution Deal as agreed with individual government departments are set out in Annex L.

1.10 The LCR CA recognises the main categories of evaluation as being:

2https://www.gov.uk/government/publications/the-magenta-book

4

a) ‘Process Evaluation’ assesses whether a process is being/was implemented as intended and what, in practice, is considered to be working more or less well, and why; and

b) ‘Core evaluation’ assesses the impact of policy interventions and projects and considers to what extent expected outcomes/benefits were delivered and whether there were any other consequences (positive and negative).

1.11 Figure 2 shows a (generic) logic chain schematic and highlights the split between monitoring (and performance management) and evaluation. Having this clarity will enable the LCR CA to optimally deploy its resources

Monitoring and Evaluation Performance Management

Figure 2: Generic Logic Chain

M&E Key Principles

1.12 The LCR CA’s approach is based on the following principles.

a) Focus upon conducting meaningful evaluation, to better inform the selection of future intervention, the allocation of funds and the prioritisation of schemes and measures. In discussion with the ‘What Works Centre for Local Economic Growth’, the LCR CA does not intend to undertake a complex meta-evaluation of the LCR CA’s Devolution Deal, as the overall effectiveness of such an approach is likely to prove negligible, and come at a very high cost. It is also likely to duplicate significant aspects of the five-yearly gateway reviews undertaken by the national evaluation panel. Instead,

b) Data is collected once and used many times. Equally, care will be taken to ensure that centrally-held data is used wherever possible, e.g. information from the Department for Education’s national surveys such as the Learner Satisfaction Survey and Employer Satisfaction Survey. These collect performance indicator data that measure aspects of performance such as success rates, learner and employer satisfaction and learner destinations. The Combined Authority is embarking upon a comprehensive review of its data collection and data processing capabilities and methodologies, in conjunction with external partners from academia and which will

5

The LCR challenge to

be addressed (Objective)

Inputs (Resources)

Outputs (What is

being done with the

resources)

Activities (What is

being delivered)

Outcomes (Short term

gains delivered)

Impact (Longer

term wider economic and social

impacts for the LCR)

seek to enhance the quality, consistency and availability of the Liverpool City Region’s data sets.

c) Automation will be exploited, wherever possible to reduce resource burden, e.g. to capture traffic or movement data from mobile devices, exploitation of smartcard data or through GPS technology, in the case of transport and connectivity schemes.

d) Make use of modelling tools it has at its disposal to assess the impact of interventions across policy areas, including the ability to model transport or economic growth scenarios from an air quality or a low carbon perspective. A Land Use and Transport Model is also being implemented to improve assumptions that inform scheme proposals and to improve future prioritisation of future candidate SIF schemes.

e) Lessons learnt and data generated in evaluation will also be used to inform future policy development and provide the evidence base for future interventions and utilised in the LCR CA’s modelling tools.

f) Reporting requirements and associated evaluation will be proportional to investment impact and in line with current guidance.

g) As appropriate, a baseline will be set prior to the execution of any intervention

h) Ex-post data collection will take place at appropriate intervals depending on the type of outcome/impact expected and the time for stabilisation of behaviours or benefits lag associated with each outcome or impact

i) Interim findings should be available at least 12-18 months after completion, depending on whether seasonality needs to be allowed for.

j) Economic impacts should be reportable three to five years after completion of any policy interventions and/or projects aimed at delivering new jobs and increased GVA.

k) M&E will be embedded in the Strategic Investment Fund (SIF) process. For example, applications for funding from the SIF (in the form of business cases), regardless of value will be expected to have a monitoring and evaluation plan and funding contracts will include M&E obligations on the applicant.

Specific M&E Approach

1.13 Transport: in respect of transport capital schemes, it should be noted that the DfT’s latest WebTAG guidance now includes a Monitoring and Evaluation module. These requirements will be included for future transport schemes that may be funded from the Strategic Investment Fund.

1.14 Investment Fund: As a condition of the LCR CA’s £30 million Investment Fund (“gainshare”) allocation over the next 30 years, there will be five-yearly gateway reviews undertaken by a national evaluation panel. SQW has been appointed to put in place the national framework for conducting these Gateway Reviews and to work with localities on developing a Local Framework to assess the impact of projects and intervention that are funded from ‘gainshare’. Further information on this national evaluation is set out within Appendix K12.

6

1.15 Existing agreements: Where a programme-wide approach has already been agreed with individual funding bodies (e.g. the Skills Funding Agency) the LCR CA will continue to evaluate on this basis.

1.16 In Depth Evaluation: The LCR CA will focus in-depth evaluation of a small number of Devolution Deal initiatives and set out in detail how this evaluation will be undertaken. This will include methods to identify the counterfactual – the outcome had there been no additional intervention – such as randomised control trials and/or the use of control variables in regression analysis. This is discussed further in later sections.

1.17 Independence: To ensure independence, across all themes evaluations will be expected to be conducted externally to the commissioning department or organisation. Evaluation will either be undertaken ‘in-house’ where the department is independent of the commissioning department and where appropriate ethical walls exist, or else by external parties who are independent from the business case or project being evaluated.

1.18 Quality Assurance: In a further effort to ensure the quality of all evaluation work, the LCR CA will further develop its relationships with the ‘What Works Centre for Local Economic Growth’, the academic community and other organisations such as the Urban Transport Group plus government departments. External quality reviews will be undertaken on evaluation activities.

2. RESPONSIBILITES AND RESOURCES

2.1 The primary M&E related responsibilities are outlined in the table below. These responsibilities will be reviewed over the coming year in light of changes being taken forward as part of the CA’s new staffing structures and which were outlined in section 1.4 above:

Responsibility Resource

Setting the LCR CA’s strategic approach to Monitoring and Evaluation, including annual review

Head of Paid Service

Monitoring progress of Devolution Deal objectives and of LCR CA wider programme of activity, including projects and programmes funded from the SIF

PMO (with support/input from policy leads and the LEP)

Preparation of individual Monitoring and Evaluation Plans

Devolution Theme Leads/SIF applicants

Undertaking individual evaluation Independent teams that are in the same organisation as the Devolution Theme Leads/SIF applicants

Developing the Local Framework in support of the Gateway Assessment

PMO (with support/input from policy leads and the LEP)

7

Responsibility Resource

Maintaining a repository of Monitoring and Evaluation data

PMO (with support/input from policy leads and the LEP)

Dissemination of evaluation conclusions

PMO /LCR CA / LEP Communications Team

3. DISSEMINATION STRATEGY PRINCIPLES

3.1 Each evaluation theme will be expected to develop its own timetable of research and reporting tailored to the dates at which new interventions will be developed, executed and delivered so that the impact can be measured in a timely manner.

3.2 Evaluation reports will be shared with LCR CA and its constituent authorities, the LEP, and central government, subject to any commercial considerations which may prevent full or partial disclosure of the findings. The LCR CA’s website will be the primary dissemination mechanism for such evidence and findings.

3.3 The LCR CA will use the findings from evaluation to improve the contribution of future investment to the LCR economy. These findings will inform local prioritisation decisions as well as supporting cases for interventions or funding at local, pan-Northern, national and European level.

3.4 A key element is to ensure that the data from the evaluation is fed back into the appraisal process to improve the evidence base for the future. This will also be used in modelling tools (e.g. strategic transport) where this is appropriate.

3.5 Findings from the evaluation will also be shared with relevant think tanks or special interest groups. Examples include: the Urban Transport Group, Core Cities, and the ‘What Works Centre for Local Economic Growth’. These bodies will also be engaged in research techniques used and the relevance of the findings.

8

Annex A

SUMMARY OF THE LCR CA’S DEVOLUTION DEAL

A.1 The Liverpool City Region Devolution Agreement was published on 17 November 20153 and subsequently updated in March 2016. This summary sets out the agreement between the government and Liverpool City Region and both the offer of powers and budgets from government, and the reforms and measures that Liverpool City Region will need to deliver. Central to this is a reformed governance system.

A.2 A new, directly elected Liverpool City Region Mayor will Chair to the Liverpool City Region Combined Authority (LCR CA) and will exercise the following powers and functions devolved from central government:

a) Responsibility for a devolved and consolidated transport budget, with a multi-year settlement to be agreed at the Spending Review.

b) Responsibility for franchised bus services, which will support the Combined Authority’s delivery of smart and integrated ticketing across the Combined Authority.

c) Powers over strategic planning, including the responsibility to create a Spatial Development Strategy for the LCR CA, a Mayoral Development Corporation and to develop with government a Land Commission and a Joint Assets Board for economic assets.

A.3 The Metro Mayor/LCR CA has received the following powers:

a) Control of a £30 million a year funding allocation over 30 years, to be invested in the Liverpool City Region Single Investment Fund, to unlock the economic potential of the River Mersey and Superport as well as maximise the opportunities from HS2.

b) Responsibility for chairing an area-based review of 16+ skills provision, the outcomes of which will be taken forward in line with the principles of the devolved arrangements, and devolved 19+ adult skills funding from 2018/19.

c) Joint responsibility with the government to co-design employment support for the harder-to-help claimants.

d) More effective joint working with UKTI to boost trade and investment, and responsibility to work with the government to develop and implement a devolved approach to the delivery of national business support programmes from 2017.

e) Building on the success of International Festival for Business (IFB) 2014 and the proposals for IFB 2016, Liverpool City Region and the government, and in particular UKTI and the GREAT Britain campaign, will continue engagement to establish IFB Liverpool as a vital feature of the international business calendar in 2018 and 2020.

A.4 Furthermore the devolution agreement also contained:

3 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/477385/Liverpool_devolution_deal_unsigned.pdf

9

a) To support the development of the Liverpool City Region, the government will offer Liverpool City Region expert advice and support to ensure they are able to put forward a City Region led proposal to undertake a Science and Innovation audit.

b) The Liverpool City Region will engage with the government to explore options around a sustainable and viable business model for National Museums Liverpool.

c) The government will work with the Liverpool City Region Combined Authority to agree specific funding flexibilities after the Spending Review.

10

ANNEX B

THE DEVOLUTION DEAL - GOVERNANCE

B.1 Core elements of devolution deal are outlined in the table below.

Deal Element: Governance/Mayoral Election Progress to dateSummary: To move to the model for a Directly

Elected Mayor for the Combined Authority, operative from May 2017, with associated legislative and organisational changes to implement both the model and the terms of the Devolution Agreement

Completed

Outcomes: Identify and specify the requirements of secondary legislation

Identify and specify required changes to the Combined Authority Constitution

Draft appropriate scheme for consultation and submission to Secretary of State

Agree electoral arrangements for the election of Mayor in May 2017

Review devolved powers and identify legal and risk implications in relation to rights and liabilities

Implement arrangements which provide the capacity to support the CA with a directly-elected mayor

Secondary legislation was enacted to create the Mayoral Combined Authority in March 20174.

Mayoral elections were held in May 2017 and Steve Rotheram was elected.

The CA’s agreed staffing body is being populated to support the work of the Mayoral Combined Authority. Dedicated policy leads covering the devolution deal’s main thematic areas have been appointed, and the SIF process is overseen by the Directorate of Investment and Strategic Development.

Proposed Analytical approach

B.2 It will be apparent that the majority of the activities detailed above are process-related and have largely been completed.

Dissemination

B.3 Not directly applicable but information is available on the Authority’s website and social media feeds at http://liverpoolcityregion-ca.gov.uk/

4 http://www.legislation.gov.uk/uksi/2017/430/made

11

ANNEX C

THE DEVOLUTION DEAL - SKILLS

C.1 Core elements of devolution deal are outlined in the table below.

Deal Element:

Skills Progress to date

Summary: The Government will enable local commissioning of outcomes to be achieved from the 19+ adult education budget starting in academic year 2017/18; and will fully devolve budgets to the Liverpool City Region (LCR) Combined Authority from academic year 2018/19 (subject to readiness conditions). In 2017/18, the City Region will develop a series of delivery agreements with providers about what should be delivered in return for allocations in the 2017/18 academic year. For the 2017/18 academic year, and following the area review, government will work with the LCR Combined Authority to vary the block grant allocations made to providers, within an agreed framework. From 2018/19, there will be full devolution of funding. The LCR Combined Authority will be responsible for allocations to providers and the outcomes to be achieved, consistent with statutory entitlements.

Devolution of the Adult Education Budget will now commence from 1 August 2019 for Liverpool City Region residents: this delay of 12 months was due to a number of reasons beyond the City Region’s control, including the limited Parliamentary time available following the General Election of 2017. Liverpool City Region Combined Authority (LCRCA) has successfully completed the Government’s readiness checks prior to devolution.

Orders were laid in Parliament prior to the summer 2018 recess to allow the devolution of statutory responsibility for learner entitlements whilst an MOU has been agreed with the Department for Education to ensure devolved budgets will follow.

The Combined Authority is as of August 2018 engaging in market testing prior to negotiating grant funding agreements for delivery with Colleges and Local Authorities and entering into a procurement process for provision from independent training providers expected to commence in October 2018.

The government commits to an Area Based Review of post-16 education and training: this started in April 2016 and reported in January 2017(Wave 3).

The Area Based Review was successfully undertaken and final report published in January 2017. Recommendations for mergers and qualitative recommendations from the Area Based Review (ABR) relating to curriculum and collaboration have been implemented.

12

Deal Element:

Skills Progress to date

To ensure continued local collaboration following the Area Based Review, the Liverpool City Region Combined Authority will work in partnership with local colleges and providers to publish a local skills strategy.

A renewed Skills Strategy was published in March 2018 following an extensive stakeholder consultation and skills survey of 1,800 local employers. Our vision is that in five years’ time Liverpool City Region will have: An outstanding and effective skills system that meets the needs of employers, individuals of all ages and communities and drives high aspirations and attainment, to create a truly global and competitive. City Region at the heart of the Northern Powerhouse.

The government will work with LCR Combined Authority to ensure that local priorities are fed into the provision of careers advice.

The Combined Authority has established the Careers Hub to co-ordinate and cohere careers provision locally amongst the range of providers and partners involved. There remains a need to work more closely on this and options are being explored with Government.

Liverpool City Region and the government will collaborate to maximise the opportunities presented by the introduction of the apprenticeship reforms.

The City Region has seen a greater fall in the number of starts than nationally since the introduction of funding reforms. Discussions are continuing with Government about how this can be addressed.

Our Apprenticeship Growth Plan was published in March 2018 which includes detailed priorities and key activities for local collaboration in order to ‘increase the volume, breath and relevance of apprenticeships across Liverpool City Region enabling more employers and learners to access and benefit from apprenticeships.

Liverpool City Region will work with the government to explore ways of continuing to improve standards of education and skills and vocational training across the City Region.

The Liverpool City Region Combined Authority is working in partnership with local Colleges and providers and The Gatsby Charitable Foundation in preparation for the launch of T Levels and technical education reforms ahead of 2020.

Outcomes: More resilient skills system which is more responsive to the needs of the local labour market

Greater local influence over adult skills provision

Our Commissioning approach for the AEB will help ensure local skills needs responsiveness from 2019/2020 and greater influence over the delivery of adult skills locally.

13

Deal Element:

Skills Progress to date

Clearer landscape for careers advice through improved co-ordination

Increased uptake of apprenticeships

Our Careers Hub continues to co-ordinate local activity for careers advice with a clearer position on how schools and other stakeholders are engaged by CEIAG deliverers.

Our Apprenticeship Growth Plan and local Apprenticeship Hub are co-ordinating task and finish groups that will support take up of apprenticeships following reforms.

14

C.2 LCR CA will adopt a tailored approach to evaluating the impact of the various skills elements of its devolution and related deals, but these are more likely to take the form of individual programme evaluations. For example:

a. Devolution of the Adult Education Budget (AEB): We will work closely with the Education and Skills Funding Agency, Government and comparable devolution areas to develop effective monitoring and impact evaluation of the devolved Adult Education Budget from 1 August 2019.

b. Skills Capital: The first Growth Fund Skills Capital Programme operated from February 2015 to March 2017 and invested £21.5m in 33 Skills Capital projects including 8 major refurbishment and/or new build projects. A further £11 million was committed by the Combined Authority from the second Skills Capital SIF prospectus launched in December 2016 for 9 refurbishment and/or new build projects. Investment of a further £6.2 million is still under consideration by the Combined Authority from this round for 2 new build facilities subject to the agreement of full business cases expected in the autumn of 2018. The Skills Capital Local Growth Funded projects will be evaluated in accordance with the LGF Assurance Framework agreed with Government. A third commissioning round for the remaining Skills Capital is expected in early 2019. Future skills capital investment will be monitored and evaluated as part of the Single Investment Fund and this Monitoring and Evaluation Plan.

c. Apprenticeship Grant for Employers: £3.077m was secured as part of the further Devolution Agreement, the LCR Apprenticeship grant was successfully implemented for local SMEs employing Apprentices aged 16 to 24. Initially 1,324 Expressions of Interest were registered on the Liverpool City Region AGE Grant website, which resulted in 837 grants being paid to employers. The total AGE Grant spend across the Liverpool City Region was £2,641,950 from a budget of £3,076,500, equating to an 85.9% drawdown.

The devolved AGE programme was evaluated and reported to the Employment and Skills Board in March 2018, as part of this evaluation was an employer survey with over 100 respondents. 89.3% of employers surveyed stated that a grant was very important to their future decision to recruit a young apprentice; only 1.8% stated a grant would not influence their decision.

LCRCA has secured an extension to the grant agreement with the Education and Skills Funding Agency to carry over unspent AGE funds into 18/19 with the expectation that funds should be fully expended by the end of the financial year 31 March 2019. The LCRCA is therefore required to confirm at the end of the financial year 2018/19 that the funding has been properly expended to the ESFA including monitoring and evaluation requirements.

Logic model

C.3 This will vary on a programme by programme level and include individual programme evaluations, but for skills capital (which is already being implemented) has included:

15

Skills Capital Investment - Outline Logic Map

Inputs Activities Outputs Direct Outcomes Impact

Investment in new

infrastructure plus match

funding

Construction of new facilities

Refurbishment of existing buildings

Improved internal

‘fit out’

Learning floorspace

created

Learning floorspace refurbished

Learning

floorspace rationalised

Increase in

learner numbers (by finding

source/type)

Increased GVA

Increased

productivity

Increased employment

Learner success rates

Learner

progression into employment/ further study

Improved

satisfaction rates

Improved financial

performance

Take up of vocational

coursed in City Region growth

sectors e.g. STEM

Analytical approach

C.4 As outlined above for each programme of activity.

Possible Evaluation Techniques

C.5 See above.

Each scheme for Skills Capital is continually monitored as part of on-going evaluation by the CA/ Merseytravel Programme Management Office and RAG rated against: Delivery Progress; Annual Financial profile; Reputation/Communication; Planned Spend; and Risk.

Where national data sets exist, such as the Learner/Employer satisfaction surveys, these will be used as far as possible to reduce duplication and to save on costs. National data also helps in providing comparators. Individual Learner Record data will also be used as appropriate to identify sectoral uptake impacts by providers as will National Achievement Rate Tables by provider.

16

Data requirements

C.6 This will vary according to project, but for skills capital is includes:

Metric Frequency SourceInputs:

1. Total Public investment (£)2. Total project co-investment (£)

As projects are commissioned

Project Monitoring Returns

Outputs:

1. Floorspace outputs (refurbished / created)2. Learner Benefits (e.g. apprenticeships, 16-18 classroom based learners)

1. Quarterly2. Annually on an academic year basis

Project Monitoring Returns

Outcomes:

1. Improved learner experience2. Greater employer engagement in curriculum planning

Baseline/post occupancy survey

Post Occupancy Survey

Dissemination of findings

C.7 Findings from any monitoring and evaluation exercises will be shared with the relevant Combined Authority Members and officers who will agree a broader dissemination approach, whilst programme progress and performance will be reported to the Employment and Skills Board as the lead for employment and skills on behalf of the Combined Authority and LEP Board.

17

ANNEX D

THE DEVOLUTION DEAL - EMPLOYMENT

D.1 Core element of Devolution Deal is below.

Deal Element: Employment Progress to dateSummary: Liverpool City Region Combined Authority

will work with DWP to co-design the future employment support, from April 2017, for harder-to-help claimants, many of whom are currently referred to the Work Programme and Work Choice.

The City Region engaged fully with DWP on the design and specification for the Work and Health Programme. Whilst it was disappointing that the views of the City Region were not fully taken on board for the design, there was full involvement at all stages of the evaluation of the procurement, which allowed a clear local perspective to be included.

This has extended now to include operational management and delivery, with the Combined Authority involved in quarterly contract performance reviews with DWP and the Contractor.

Liverpool City Region will work with DWP to develop a business case for an innovative pilot to support those who are hardest to help, taking a household approach.

The Business Case for the £4.6m Households into Work Programme was submitted in February 2017 and funding confirmed in August 2017. Recruitment of the Advocates took place in autumn 2017 and the first referrals took place in March 2018.

Work with Government to develop and implement new approach to help residents with sickness benefits back into work

Discussions are under way with the Work and Health Unit on this.

Outcomes: More targeted and locally responsive employment provision

Pilot of innovative approaches to supporting residents into work

The involvement of the Combined Authority in national procurement has enabled more targeted provision to be in place.

The pilot of the Households into Work approach will ensure that lessons are captured and shared on engaging with residents in a different way.

18

D.2 The elements of the Devolution Deal focussed on supporting residents in receipt of sickness benefits (i.e. first two bullet points above) has evolved since the signing of the agreement. LCR had a limited role in the co-design of the emerging national Work and Health Programme: this included some limited influence over the local procurement process and opportunity to articulate local context to prospective bidders.

D.3 The LCR’s work with DWP in developing and implementing an innovative, household-based employment support test provides a clear opportunity to locally evaluate the impact of the employment element of the Devolution Deal. The Combined Authority has established a clear evaluation framework for the Programme, working with the Heseltine Institute for Public Policy and Practice at the University of Liverpool, and will commission an additional external evaluation.

D.4 Discussions are continuing with DWP on access to additional information to allow this robust evaluation to take place.

Logic model

Employment support - Outline Logic Map

Inputs Activities Outputs Direct Outcomes Impact Total

Government monies invested

Total LCR

monies invested

Household-based employment support pilot

Number of households engaged (by employment

status/income)

Number of support plans

developed

Number of qualifications

obtained

Number of work placements

Number of job

interviews

Increased GVA

Increased

productivity

Increased employment

Number of participants in employment

Number of

participants in sustained

employment

Household income of

participants

Wellbeing of participants

Analytical approach

D.5 Locally-designed/commissioned evaluation, with indicative elements to include:

a) Analysis of participant profiles;b) Consultation with providers and wider stakeholders;c) Longitudinal tracking of participants;d) Longitudinal tracking of other similar cohorts;e) Participant case studies;f) Cost-Benefit Analysis; andg) Other approaches identified as best practice (i.e. ‘What Works’ / BIT approach),

such as sequencing, to provide control groups.

19

Possible Evaluation Techniques

D.6 The following evaluation techniques have been considered to be appropriate:

a) Quantitative analysis of employment levels amongst cohort;b) Baseline / evaluation wellbeing survey with participants; andc) Cost-Benefit Analysis of monies invested / savings realised / economic impact.

D.7 The job outcome information will be collected through traditional means through tracking support and engaging with participants after they have left the service support element of the programme. This would be easier to evidence and provide much more reliable evidence if the Combined Authority was able to access HMRC Real Time Information to confirm this.

D.8 The completion of a full Randomised Control Trial is beyond the scope of this project but it would be helpful to compare the group who are supported with:

a) Similarly profiled residents in the City Region who are not receiving this support; and

b) Similarly profiled residents from another City Region with similar characteristics to provide an external control.

D.9 Should the cohort group being supported in the Liverpool City Region pilot be similar to that in other parts of the country, it would be helpful to assess and compare the impacts observed in different pilots. In order to undertake these comparisons, it would be necessary to secure access to additional information from Department for Work and Pensions, and this would be a precondition of undertaking this evaluation work.

D.10 This quantitative approach to evaluation will be accompanied by a formative approach to understand which elements of the design being tested are most likely to lead to improvements in outcomes. This will be done through regular engagement with the Employment Advocates to capture their learning from front line delivery and insight from engaging with households. This approach had been used with the Youth Employment Gateway and found to be extremely beneficial and insightful. As part of this, employment advocates will be supported to maintain a reflective log to capture their views on what has made a difference in the lives of the households that they are supporting.

D.11 A proportion of households engaged in the test will be interviewed to capture a richer picture of what has and has not worked for them, and how the support could have been improved.

20

Data requirements

D.12 These will vary according to project and the focus of evaluation, however illustrations are listed below.

Metric Frequency

Source Performance to August 2018

Inputs:1. Total investment (£)2. In-kind contributions (£)

AnnuallyAnnually

Programme ManagerProgramme Manager

Outputs:1. Number of households

engaged2. Number of individuals

engaged3. Number of support plans

developed4. Number of progress

measures achieved5. Job starts

QuarterlyQuarterlyQuarterlyQuarterly

Programme ManagerProgramme ManagerProgramme ManagerProgramme Manager

334

493

-

56%

15

Outcomes:1. No. of participants in employment2. No. of participants in sustained employment

QuarterlyAnnually

Programme ManagerProgramme Manager

Impact:

1. Savings to the Exchequer (£)

2. Economic Impact (£)

Annual/ Final report Annual/ Final report

Cost-Benefit Analysis

Cost-Benefit Analysis

Dissemination of findings

D.13 Findings from any monitoring and evaluation exercises will be shared with the relevant Combined Authority Members and officers who will agree a broader dissemination approach.

21

ANNEX E

THE DEVOLUTION DEAL - HOUSING AND PLANNING

E.1 Core element of Devolution Deal is below.

Deal Element:

Housing and Planning Progress to date

Summary: Development of a Spatial Development Strategy to support delivery of strategic housing and employment sites throughout the City Region – with individual Local Authorities completing their own Local Plans by early 2017

The LCR Spatial Planning Team has been recruited and all Officers are in post (July 2018).

The LCR Statement of Co-operation has been signed off by the LCR CA and all constituent LAs.

The LCR was a volunteer Authority for the pilot for the new Statements of Common Ground (introduced through the Housing White Paper and the recent consultation "Right Homes Right Places"). The draft Statement of Common Ground has been completed.

The LCR CA has completed a technical consultation on the LCR SHELMA (key evidence base for the SDS) and the document updated accordingly.

The LCR CA has compiled a LCR Brownfield Register. Additional SDS Evidence Base procurement is underway:

- Brown Field Housing Site Viability study- Town Centre Hierarchy Review- Air Quality Study

The LCR Scrutiny Panel has completed a review of the Spatial Development Strategy focusing on recommendations on timescales and resources.

Power to call in planning applications with consent of Constituent LA

The LCR will not enforce these powers until it has an SDS in place (against which any applications can be assessed).

Completion of (non-statutory) identification of key housing and employment sites by 2017 and development of a brownfield register to support this work

Completed

22

Deal Element:

Housing and Planning Progress to date

Mayoral Development Zone designations with CPO powers Discussions are to be held with Teesside CA as they have identified in order to ascertain best practice. The MDZs are likely to follow the establishment of the LCR Land Commission.

A Land Commission and Joint Assets Board (with increased control over assets formerly held by the RDA) including representation from Senior Government Departments

The terms of reference for the Land Commission has been agreed by the CA. Work is on-going on who will be the constituent members of the Land Commission.

Outcomes: The City Region will produce a Housing Strategy Delivery Plan by Summer 2016 that will: Have an ambition to deliver 25,000 new homes over the

next five years (this has been discussed and now agreed as an ambition by the Housing and Spatial Planning Board)

Ensure that the condition of stock is improved – with the additional benefits of improving the socio-economic conditions within the City Region (e.g. in health, fuel poverty etc.)

Identify the best tenure mix of housing for the City Region recognising the complexities of where we start from, financing and funding changes, and what national policy is currently attempting to achieve

Have an honest assessment of where people want to live and consider how the implications of this can be managed including possible ‘zoning’ of areas based on their relationships with one another

The outcomes described in the Business Case for developing a City Region Single Spatial Framework are:

A working estimate of delivering 50,000 home over 10 years (the statutory process would determine an actual number)

Housing Delivery Plan was prepared in 2016. A revised Plan was prepared in 2017. Now being incorporated into a city region housing strategy position paper with the following objectives (subject to final approval):

Increasing housing supply to support growth and the ambition to deliver 25, 000 new homes over 5 years remains. 2016-17 – 6080 were delivered. 2017-18 data due in November.

Also looking to increase the supply of 1-bed social housing stock Meeting current and emerging housing need – tackling

homelessness by rolling out housing first services; and Meeting the challenge of an ageing population Regenerating neighbourhoods and improving housing quality

Key potential outcomes include: A Housing Deal with Homes England which will include devolved

housing funds to the LCRCA National policy flexibility to support regeneration and renewal

activity Devolution of landlord licensing decision making powers from the

SoS to the Metro Mayor

23

Deal Element:

Housing and Planning Progress to date

Up to 30,000 jobs enabled (using the estimates of job density for the economic sites identified in the 2013 Local Investment Plan agreed for the City Region)

Better communities through a more coordinated approach More investment through providing greater confidence to

investors about what activity will be supported and where spatially within the City Region area

24

Logic Model

Housing Outline Logic Map – Subject to agreement

Analytical approach

E.2 It will be apparent that the majority of the activities being taken forward in respect of housing and planning are process-related and these will be subject to process evaluation here (e.g. monitoring of outputs, ‘lessons learned’ exercises and so forth). Similarly, milestones will be set for processes such as monitoring of planning decisions and their speed, number of units with planning permission, allocations or parcels of land, housing starts, and changes in land value.

Possible Evaluation Techniques

E.3 In discussion with the ‘What Works Centre for Local Economic Growth’ and with BEIS, the city region will focus its monitoring and evaluation activities in order to:-

a) Ascertain the impact of devolved planning and housing powers on delivering the LCRCA’s corporate objectives of accelerating delivery of employment and housing development, with the particular focus on the development of sites on the Brownfield Land Register, in line with the LCRCA and Metro Mayor’s “brownfield first” agenda. This will include:-

Net additions to the housing stock Employment floorspace developed (as defined by Use Classes B1, B2

and B8) Proportion and net additions to the housing stock built on sites in the

Brownfield Land Register

25

b) Allow comparisons in effectiveness of policy interventions between similar or rival sites;

c) Understand the impact of powers such as ‘call in’ and Direction to Refuse planning applications, including examining the number of planning applications in comparison to other similar devolution areas that:-

i. are referred to the Mayor;ii. the Mayor submits comments on;iii. the Mayor calls in;iv. the Mayor directs refusal; orv. the Mayor has involvement in appeals.

d) For Mayoral Development Areas:

i. a qualitative assessment of the displacement from within the constituent authority and the LCR of businesses locating in a MDA.

ii. a qualitative assessment of the jobs resulting from the relocation into the MDA (i.e. is the company expanding the level of jobs i.e. academic level salary etc.).

iii. associated other investment for example on transportation, digital infrastructure, energy etc.

Dissemination of findings

E.4 This will conform to the overall dissemination strategy that is outlined in section 3.

26

ANNEX F

THE DEVOLUTION DEAL - TRANSPORT

F.1 Core element of Devolution Deal is below.

Deal Element:

Transport Progress to date

Summary: Responsibility for a devolved and consolidated local transport budget, including all relevant devolved highways funding, with a multi-year settlement to be agreed at the Spending Review.

The £26.5 million per transport budget forms part of the LCR’s overall SIF pot.  It has been agreed to detach this from the SIF for a further year to enable the funds to be apportioned to the constituent local authorities and Merseytravel to deliver local transport priorities, particularly in respect of local road safety and highway maintenance.  This has also entailed the creation of a top-sliced fund to support the Key Route Network, together with funding to support Mayoral transport priorities.

The LCR has also been awarded £134 million through the Transforming Cities Fund between 2018 and 2022 to support sustainable transport enhancements, and which will be managed as part of the Single Investment Fund.  The first tranche of projects were commissioned in July 20185.

The ability to franchise bus services in the city region, subject to necessary legislation and local consultation.

The city region, through Merseytravel, is currently progressing enhancements to the bus offer through a Bus Alliance, which is realising significant benefits; for example, the number of bus journeys young people are making has risen by 142% in the last three years and since 2014, bus journeys made by all paying passengers have gone up by 16.2% overall, with 92% of users happy with their experience, bucking the trend of long term bus passenger decline nationally.

In July 2018, the Liverpool City Region launched one of the country’s most generous discounted bus travel schemes for apprentices.  The scheme will introduce half-price weekly and four-weekly bus passes for all apprentices aged 19 to 24.

5 http://liverpoolcityregion-ca.gov.uk/uploadedfiles/Documents/LCRCA_TCF_AUG18.pdf

27

Deal Element:

Transport Progress to date

A strategic outline business case has been developed to assess the full range of options that are available to the LCR in respect of bus powers and operations, which include the option of franchising, and which was considered by the Combined Authority in April 2018.  The Authority agreed to move to the development of an Outline Business Case for the Bus Alternative Delivery options, which would assess in detail the potential for either an Enhanced Partnership, a Franchising scheme or the continuation of the existing LCR Bus Alliance, and make a recommendation on which option to take forward in the Liverpool City Region

A Key Route Network of local roads which will be managed and maintained by the Combined Authority on behalf of the LCR Mayor, from May 2017.

(Deal 2) The government will work with the Liverpool City Region Combined Authority and the LCR CA Mayor to establish appropriate local traffic and highway powers which would be conferred on to the Mayor as part of the Key Route Network.

The KRN has been defined and agreed by the Combined Authority Work is concluding on the development of a Carriageway Asset

Management Plan (CAMP) to define the condition of the network on a consistent footing.  This work is identifying priority areas for interventions.

Work is progressing on opportunities for joint contracting (e.g. Intelligent Traffic Systems) and the harmonisation of standards.

The LCR has commissioned a £25 million enhancement package for the Key Route Network, to be funded form the LCR’s Local Growth Fund 3 award. The full business case was approved by the Combined Authority in March 2018 and is now being implemented.

A long term Special Rail Grant Settlement for the Merseyrail network to allow Merseytravel to separately progress the locally-funded procurement of new trains for the Merseyrail network.

Certainty has been secured from the DfT in relation to the size of the overall Special Rail Grant to the end of the Merseyrail Franchise period in 2028

The £460m project for the procurement of the Merseytravel rolling stock is underway via Stadler, and the first trains expected to reach the network by 2019.

The project also includes infrastructure upgrades to power supplies, platforms and track, as well as refurbishment of the depots at Kirkdale and Birkenhead North and the on-going maintenance of the trains.

28

Deal Element:

Transport Progress to date

Bring forward alternative proposals for, in the first instance, the management of rail stations on the Merseyrail Electrics network and, subsequently, all stations in the Liverpool City Region.

A Strategic Outline Case (SOC) has been concluded, examining a range of options for alternative ways of managing stations on the Merseyrail Network, which range from the freehold passing from Network Rail to Merseytravel to a partnership / alliance model.

Negotiations remain on-going with the Department for Transport

The Department for Transport will continue to work with the Liverpool City Region in the review of the tolls on the Mersey Tunnels being undertaken by the Combined Authority.

The Combined Authority remains responsible for the management and associated tolling regimes for the Mersey Tunnels.

As part of the budget setting process for the 2018/19 financial year, the Authority has agreed to seek to introduce a "Fast Tag Off Peak" charge, which will see a £1 toll for car users making journeys between 19:00 and 07:00 each day, and any time on Sundays.

The proposals also include a 10p rise in the car cash toll taking it to £1.80 from April, which is 20p less than what the rise is authorised to be under the Tunnels Act.

Further proposals will be developed as part of the budget setting process for the 2019/20 financial year.

Government recognises and supports the city region’s crucial role in delivering Transport for the North, including improvements to the capacity of the Liverpool Lime Street area to serve as a major transport hub, and options for strategic road investment and smart ticketing.

The LCR continues to make the case to partners on the importance of Northern Powerhouse Rail and direct high speed HS2 services from the Liverpool City Region the capacity released will be especially important from a freight distribution perspective.

The LCR has developed an economic case quantifying the value of direct HS2/NPR rail links to Liverpool, which could result in a GVA uplift of £15 billion and would support the economic rebalancing of the UK’s economy.

Separately, upgrades to Liverpool Lime Street, the Halton Curve project and new Maghull North station are a few of the vital schemes that form part of a £340m railway investment in the Liverpool City Region. This work also sits within the wider Great North Rail Project to transform rail travel for customers across the north of England.

29

Deal Element:

Transport Progress to date

(Deal 2) The government will work with the LCR CA to explore ways in which the LCR CA Mayor can be enabled to implement Clean Air Zones in the CA area. This will help achieve Air Quality Plan objectives at both the national and local level.

The Liverpool City Region has developed a Preliminary Feasibility Study on air quality via AECOM, to assess the various measures which have a bearing on air quality. This examines a range of options, including Clean Air Zones.

The Combined Authority’s scrutiny panel established a task and finish group on the issues of poor air quality and presented recommendations to the Combined Authority in June 2018

The above work is informing a City Region Air Quality Action PlanOutcomes:

Greater levels of funding available for the delivery of key transportation interventions leading to better connectivity, better accessibility and a more equitable and sustainable transport network that supports the needs of the LCR.

Growth in bus patronage linked to improvements in the quality of the bus offer across the city region.

A well-managed and maintained Key Route Network for the Liverpool City Region that supports the needs of all road users.

A modernised, accessible local rail network that can accommodate growth and satisfy future needs.

Affordable, well managed Mersey Tunnels that support growth, environmental and social inclusion objectives and which support the delivery of transport interventions across the LCR through surplus toll income protected within the consolidated transport pot.

Radically improved transport links across the North of England to help rebalance the country’s economy, with a better connected city region and one that also alleviates transport pressures from congested ports and transport networks in other parts of the country.

See more detailed monitoring and evaluation logic models and metrics

30

F.2 In respect of transport, the Devolution Deal has two principal influences:

a) New or expanded transport powers and freedoms; andb) Freedoms and flexibilities in respect of a devolved transport budget.

The activities in a) will be evaluated using process evaluation, principally.

F.3 In respect of b), future transport capital spend will form part of the Single Investment Fund, governed by the SIF Assurance Framework. Proportionate monitoring and evaluation will thus form a contractual requirement of this funding, utilising evaluation drawn from the final business case submission and tailored logic maps and data requirements pertinent to the scheme. The type and depth of evaluation for each scheme will be assessed against the DfT’s guidance on monitoring and evaluating local major schemes6, or any subsequent WebTAG-related guidance on evaluation techniques, meaning that this will vary by scheme.

F.4 This has been the approach used in the programme of schemes that have recently been funded from the Local Growth Fund, and which has now been subsumed in the Single Investment Fund. These schemes include construction of a new rail station (Maghull North) and station and rail connectivity improvements (Newton-le-Willows and Halton Curve), the largest sustainable transport package in the UK (STEP) to improve access to opportunities for all; and a series of highway improvements, such as the A5300 and the A580 Windle Island to improve the reach and reliability of the network.

F.5 In respect of future transport capital expenditure, the focus of this plan will be on using monitoring data and evaluation of schemes to better inform future scheme identification, ahead of detailed, technical scheme evaluation. This is to strengthen the ‘problem identification’ and options testing processes, to ensure that schemes are not promoted as “solutions searching for problems”. This will build on principles set out within DfT’s ‘Early Assessment and Sifting Tool (EAST). M&E will also capture better evidence and intelligence on economic and social benefits, together with carbon emissions and factors leading to poor air quality, again, to improve the identification and prioritisation of future interventions.

F.6 Before and after evaluation techniques will also be employed, such as Highways England’s Post Opening Project Evaluation (POPE) methodological approaches. Resource issues are covered within section 14 of this plan.

Logic map

F.7 The following is a high-level logic model for transport capital scheme investment. The activities which are listed in the boxes are examples and will change depending on the actual scheme – detailed individual logic models will vary depending on the scheme. In all cases evaluation will be proportionate to the scheme under review and will be used to improve scheme prioritisation and appraisal benefits.

Transport Capital Scheme Investment - Outline Logic Map6 https://www.gov.uk/government/publications/monitoring-and-evaluation-framework-for-local-authority-major-schemes

31

Inputs Activities Outputs Direct Outcomes Indirect Outcomes Economic Impacts

Funds

Land

People

Civil engineering

Service planning

Land

Acquisition

Stakeholder engagement

Highway capacity

Bus &Rail

interchanges

Bus priority

Walking & cycling facilities

Public realm

Developer interest

Reduced business

costs

Expanded labour

catchment

Higher footfall

Jobs

GVA

Development sites

connected

Network connectivity

Network reliability

Journey

experience

Analytical approach

F.8 The first stage will be to build logic maps. Each scheme will be different but it is anticipated combinations of the following evaluation methods could be used:

a) Monitoring of project delivery this will include spend against delivery of outputs reported via the Programme Management Office processes.

b) Standard reporting on project delivery: budget, timescales. c) Monitoring of scheme outputs: length of road built / replaced, new

interchange, station, etc. d) Qualitative assessment of the logic mapping / narrative of how each of the 13

major schemes impacts on their local economy. e) Pre and post implementation surveys and data analysis utilising existing data

where possible.f) Econometric analysis of the impact on transport infrastructure investment on

economic growth (including possible use of Urban Dynamic Model).g) Process evaluation.

This is not an exhaustive list and will change depending on the scheme to be evaluated.

F.9 The evaluation approach is usually based on a combination of quantitative and qualitative data collection and analysis techniques. A primarily quantitative approach will allow efficient collection of the data needed to monitor and evaluate each scheme. Scheme budgets must include a fund for proportionate evaluation and will use the LCR’s existing datasets as sources as far as possible. Examples would include the datasets that form part of the Transport Plan for Growth’s performance management regime7. New surveys will only take place where there is a data gap that is crucial in measuring the schemes effectiveness, and this will be specified as part of a scheme’s M&E plan. This is agreed with the scheme promoter in advance.

F.10 A baseline study for key indicators for relevant schemes will be established before construction starts. Ex-post data collection will take place at intervals depending on the type of outcome/impact expected for each scheme and the time for stabilisation of behaviours or benefits lag associated with each outcome or impact. Interim

7 Table 3, pages 38-39 http://www.merseytravel.gov.uk/about-us/local-transport-delivery/Documents/8375%20Plan%20for%20growth%20WEB%20FINAL.pdf

32

findings should be available 12-18 months after completion, and economic impacts should be reportable three to five years after completion.

F.11 Analysis will focus on understanding the following key questions, where applicable.

a) What is the overall effect and net impact?b) Did the scheme deliver what was expected in the appraisal?c) Has mode choice changed?d) What are the views of the target audience?e) What is the additionality of the project?f) Is there any evidence of displacement?g) Is there any evidence of dead weight?h) Have the impacts of the project been double counted elsewhere?

F.12 The above process will also seek to understand changes arising from the intervention from changes that would have happened anyway. In the absence of comparable control situations or a similar control area not receiving the intervention, a second-best solution could include modelling to extrapolate from past trends after controlling for extrinsic variables or to utilise the general trend network data.

F.13 DfT guidance on strengthening the links between appraisal and evaluation will be followed, including storing data used for assumptions and the development of a ‘handover’ pack to evaluators.

Fuller Evaluation

F.14 Schemes subject to a fuller evaluation will be subject to the criteria stated in paragraph 1.1, Appendix 4 of the DfTs ‘Monitoring and Evaluation Framework for Local Authority Major Schemes’ (or any subsequent Webtag Evaluation Guidance).

F.15 For the Liverpool City Regions approved schemes the Halton Curve meets the criteria as being an innovative scheme (as a rail reopening, plus extending connectivity and having economic benefits etc.), costs more than £10m and will generate evidence to inform ‘key evidence gaps’ for this type of scheme which will be used to inform future business cases for schemes outlined in the City Regions Long Term Rail Strategy. The findings will also be disseminated to the Urban Transport Group, Rail Industry, DfT, Welsh Government and other interested parties.

Data Requirements

33

F.16 The data requirements will be dependent upon the project and the focus of evaluation. The below table illustrates the type of data that would be collected for the Maghull North Station project, which has a detailed evaluation plan in place.

Metric Frequency Source Progress to dateInputs:

1. Total Public investment (£)2. Total scheme co-investment (£)

On commission

Programme Management Office

1. £10.7 million (LGF)2. £2.6 million (Merseytravel,

Homes and Communities Association)

Outputs:

1. New rail station2. New park and ride facility

On project completion

Programme Management Office

Maghull North station opened on the Ormskirk branch of the Merseyrail network on the 18th June 2018 with a 156 space car park.

Outcomes:

1. Improved access to employment/housing

2. Modal shift to public transport

3. Increase in off-peak patronage

4. Reduction in traffic volumes

5. Improved customer satisfaction

Baseline/one year/three years

Baseline/one year/three years

Annual

Annual

Periodic

Accessibility data (TRACC)

Passenger survey

Count data

Highways Analyst

National Rail Passenger Survey

Baseline data:

Absolute number of households within 20/40 minutes of Maghull station using public transport/walking car and cycling = 44,7798 (20 mins), 195,499 (40 mins)

Modal access to stations between Aintree and Ormskirk9: 56% On foot, 31% (car driver/passenger), 6% bus, 4% taxi, 3% cycle.

Not yet available

AADF on A59, M58 and M57 to Switch Island (total 73,465, 59,464 cars).10

93% overall satisfied with the journey;72% satisfied with facilities for car parking at the station11

Dissemination of findings

F.17 This will conform with the overall dissemination strategy that is outlined in section 3. 8 Based on 2014 Mid-year population estimates9 Survey conducted at Aintree, Aughton Park, Maghull, Old Roan, Ormskirk, Town Green (excluding Maghull North) in July 201710 Annual Average Daily Flow, DfT Traffic Counts (2017)11 Sample sizes at Aintree, Maghull, Ormskirk and Town Green stations were boosted during the National Rail Passenger Survey (Autumn 2017). Maghull North will be included for this time during the autumn 2018 wave.

34

Fuller Evaluation

F.18 Schemes subject to a fuller evaluation will be subject to the criteria stated in paragraph 1.1, Appendix 4 of the DfTs ‘Monitoring and Evaluation Framework for Local Authority Major Schemes’ (or any subsequent Webtag Evaluation Guidance).

F.19 For the Liverpool City Regions approved schemes the Halton Curve meets the criteria as being an innovative scheme (as a rail reopening, plus extending connectivity and having economic benefits etc.), costs more than £10m and will generate evidence to inform ‘key evidence gaps’ for this type of scheme which will be used to inform future business cases for schemes outlined in the City Regions Long Term Rail Strategy. The findings will also be disseminated to the Urban Transport Group, Rail Industry, DfT, Welsh Government and other interested parties.

F.20 The following table summarises the approach to the evaluation of the Halton Curve.

35

Summary of approach to fuller evaluationName of project or initiative to be evaluated

Halton CurveDescription of project or initiative

The Halton Curve is a rail infrastructure scheme which will re-signal and reinstate one and half miles of track to enable bi-directional movements between the West Coast Main Line (WCML) at Runcorn with the Warrington Bank Quay to Chester line at Frodsham. The track element was completed in May 2018.

Eventually, the scheme will allow train services to run direct from Liverpool Lime Street and Liverpool South Parkway, Runcorn, stations located within Cheshire (Frodsham/Helsby) and onwards to Chester and North Wales in both directions. The scheme will be delivered by Network Rail and will also provide an operational track link to extend the service into North Wales. These are subject to discussions with Welsh Government as part of the re-letting of the Wales and Border franchise.

Scheme Objectives in the business case include to:

1. Enhance direct public transport connectivity between Liverpool and North Wales Coast / Wrexham (subject to capacity) and between Liverpool and Frodsham/Helsby

2. Improve direct public transport links between the Airport and Chester, Frodsham, Helsby, North Wales for both business and tourism purposes

3. Provision of direct public transport connections and capacity to help in mitigating the impact of forecast trip growth on the highway network.

The final business case estimated total cost at £16.2m funded through the LCR’s Growth Deal and local contributions. The scheme has an estimated BCR of 1.9.

The Liverpool City Region Combined Authority (LCRCA) approved the scheme in April 2016 with a target of completing the rail infrastructure element of the scheme in May 2018, with the new services commencing operation in December 2018. However, it has recently been confirmed that the services are now planned to operate from May 2019 due to issues with rolling stock availability.

36

Research questions to be addressed by the evaluation – what is being evaluated?

Evaluation approach/ methodologies to be used

The evaluation of the Halton Curve will consider what difference the scheme made through an assessment of the outcomes and impacts; as well as whether the scheme had any unintended adverse or positive effects to be reported one year (2020) and five years (2024) post completion. An economic evaluation will seek to provide evidence on whether the benefits of Halton Curve justified the costs.

The scheme will be monitored against a set of standard measures outlined in DfT Local Major Scheme guidance; as well as the guidance set out for schemes that qualify for ‘fuller evaluation’. The overall evaluation will incorporate three stages to gather the information required to assess the impact of the scheme.

Process Evaluation:To monitor the progress of the scheme, monthly Programme Management Office (PMO) dashboards will be created and stored. The collection of stakeholder feedback on the completion of the scheme to form a process evaluation will be considered by Merseytravel’s PMO team. This will include abstracting lessons learnt from delivery of the scheme and whether it was delivered as intended.

The feedback gleamed can also feed into the impact evaluation stage to qualitatively assess wider economic benefits of the scheme, particularly how it may have influenced economic development and business decisions.

Impact Evaluation:This will form a substantial element of the evaluation of the Halton Curve, seeking to assess whether the anticipated benefits were realised and how impacts were achieved.

On train surveys are planned with passengers using the new service to understand travel choices made and how passengers would have travelled in absence of the new service, i.e. the counterfactual position. In addition, satisfaction with the new service will be collected.

37

The survey findings, when triangulated with origin/destination and types of journeys being made, will help determine an estimate for changing levels of demand caused by the new services through trip generation, mode shift or destination shift. The survey will be conducted at one year and five years after the commencement of new services.

Interviews will be conducted independently of the scheme promoters post completion of the scheme, one year and five years after to identify wider strategic impacts and provide an understanding of the counterfactual position

Economic Evaluation:To assess the outturn figures generated by Halton Curve against the appraisal assumptions, to verify the benefits against the costs of the scheme. Wider economic benefits, such as, the contribution made to economic growth and access to employment opportunities will also be considered.

It is proposed to use theory-based monitoring of the number of jobs and associated GVA via the Liverpool City Region’s Urban Dynamic Model; as it is likely that any indirect jobs created as a result of the scheme will be dispersed across a wide catchment area, making it difficult to attribute economic impacts directly to the scheme.

Data requirements – what will be measured, how frequently and from what source?

Metrics Data to be usedData collection methods

Frequency of data collection

Scheme Build, Development and Costs

Programme assessment including delivery and costs of scheme at key milestones.

Issues identified through project management/stakeholder feedback to identity any emergent outcomes.

PMO dashboards

Stakeholder feedback

Monthly

On completion of the scheme

Travel DemandDemand at stations served along the line (Chester, Helsby, Frodsham,

Numbers of entries and exits at key stations

ORR Station footfall

Annual

(Dec release)

38

Runcorn, Liverpool South Parkway, Liverpool Lime Street)

Patronage levels on the Merseyrail Chester – Liverpool line via the Wirral (Abstraction)

Numbers of entries and exits at key stations

ORR Station footfall

Merseyrail patronage data

Annual

Travel BehaviourOrigin and destination data of those using the new direct service

Proportion of passengers travelling for employment, education or leisure plus changes prior to opening of the service

Passenger Survey

One year after completion and five years after

Mode shift Proportion of passengers changing employment/home/mode as a result of new direct services via Halton Curve

Passenger Survey

One year after completion and five years after

Journey travel times and reliabilityPassenger travel times to destination and purpose of travel

Proportion of passengers benefiting from a reduction of travel times since development of the scheme (including the need to interchange)

Passenger Survey

One year after completion and five years after

Travel times by rail, bus and road across area to key centres

Comparative journey times to key points by mode

Trafficmaster, rail punctuality and timetables and AA route planner

Baseline, one year and five years after

39

Travel Demand

Airport Surface Access by mode including origin and destination.

Proportion of passengers using the new direct services to travel to the airport (via Liverpool South Parkway) by journey purpose

Surface Access Study12

Baseline, one year and five years after

Terminal data for Liverpool John Lennon Airport

% of passengers using rail as a mode to the Airport and % using bus as a final mode.

Collection and monitoring of data on passenger numbers

Civil Aviation Authority data

Annual

Travel Demand

Access by mode to stations

% of demand travelling to stations by:

- Bus- Cycle- Car (dropped

off/as passenger)

- Car (as driver)- Taxi- On foot

Passenger surveys

LCR Household travel survey13

One year after completion and five years after

When available

Average daily traffic by peak/non-peak periods on key routes

Road traffic flows (A56, M56 and Chester Road)

DfT Traffic data

Trafficmaster

Annual (quarterly metrics)

12 Note this study is independent from the Halton Curve evaluation. Timescales of repeat studies are subject to external agreement13 Note, this survey excludes Cheshire West and Chester and will be used for wider contextual purposes only

40

Travel times

Average AM and PM peak journey time per mile on key routes (linked to objective 2)

Travel times and variability by roads (A56, M56 and Chester Road)

Trafficmaster

Annual (quarterly metrics)

Safety on the road network

Accident Rates

Casualty Rates

Number of accidents and accident rate by severity

Number of casualties and casualty rate (by severity and class of road user)

STATS 19 Five years after completion

Impact on the economy

Employment levels

Socio-economic assessment of the catchment area

ONS data, LCR UDM model

Baseline, one year and five years after

Rental Values

Rental and property values

Land Registry data, Household Price Index, e.g. Nationwide

Annual

Households with access to specific sites including by mode within threshold times

Households with access to specific sites within 20/40 minutes using public transport/walking, car and cycle

TRACC multi-modal transport accessibility tool

Baseline, one year after and five years after

41

Carbon

Estimate modelled on demand/vehicle speed on corridors of interest

Local Transport Plan (LTP) monitoring data

Merseyside Atmospheric Emissions Inventory

Baseline, one year after and five years after

Who will conduct the evaluation?

Whilst the Merseytravel Rail Development team are responsible for the scheme and it’s evaluation, the LCRCA Research/Intelligence team will co-ordinate the data collection, analysis and reporting of outcome metrics. Support will be provided from Merseytravel’s (Programme Management Officer) and external agencies where appropriate.

How much will the evaluation cost and how will it be funded?

An estimated cost for the implementation of the monitoring and evaluation programme has been made of between £50,000 and £100,000, which will be funded through the LGF allocation. This covers activities throughout the implementation of the development and at years 1 and 5 after opening.

What are the timescales for the evaluation and what will be the key milestones

Report Information to coverBaseline Baseline data on usage/patronage, journey times and

journey time reliability, model forecasts.Outcome Monitoring (One year after)

High level assessment of progress towards usage/patronage, journey times, journey time reliability, abstraction/displacement from other modes/stations

Stakeholder feedback on lessons learnt to inform future projects

Final Evaluation report (Five years after)

Assessment of whether the scheme met the original objectives and comparison of data with the baseline data and what was forecasted within the business case, including the economic impact.

Recommendations for future rail schemes similar to the reinstatement of the Halton Curve

Who is the audience for the evaluation and how will the findings be disseminated?

Evaluation reports will be shared with the Liverpool City Region (LCR) and its constituent authorities, the Local Enterprise Partnership (LEP), and central government subject to any commercial considerations which may prevent full or partial disclosure of the evaluation findings. Findings will be shared with other relevant networks and stakeholders.

The LCR will use the findings from evaluation to improve the contribution of future investment to the LCR economy. These findings will inform local prioritisation decisions as well as supporting cases for funding at local, regional, national and European level. The results will be disseminated to relevant partners and government bodies depending on the scheme. A key element is to ensure that the data from the evaluation is fed back into the appraisal process to improve the evidence base for the future. This will also be used in models where this is appropriate.

Merseytravel and the districts will use the findings from evaluation of these schemes to improve the contribution of future transport investment to the LCR

42

economy. These findings will inform local prioritisation decisions as well as supporting cases for funding at local, Regional, national and European level. Findings from the evaluation will be shared with Liverpool City Region Combined Authority partners and national partners for comment and feedback, such as the Department for Transport plus other central government departments as relevant; as well as the Urban Transport Group and the What Works Centre.

Dissemination of findings

F.21 This will conform with the overall dissemination strategy that is outlined in section 3.

ANNEX G

THE DEVOLUTION DEAL - INNOVATION

G1 Core element of Devolution Deal is below.

Deal Element:

Innovation Progress to date

Summary: The government supports the vision for innovation set out in the Liverpool City Region (LCR) Innovation Plan.

The government will offer Liverpool City Region a dedicated Smart Specialisation Advisory Hub workshop in Liverpool.

The government will offer expert advice and support to ensure that they are actively engaged in the forthcoming Science and Innovation audit process.

The LCR will work with others in the North West, to be at the heart of a collaboration of sufficient scale and ambition to develop internationally significant excellence and capacity, able to compete globally.

The LCR will aim to establish a robust case that ensures its innovation assets are recognised in UK context and beyond

The LCR + SIA was officially launched by BEIS in September 2017, and evidences actual/potential “world-leadingness” in each of its three focal themes:- Materials Chemistry (MC)- Infectious Disease (ID)- High Performance Computing

(HPC) and Cognitive Computing (CC)

The SIA has been recognised locally as an exemplar approach, to be mainstreamed into LCR/CA strategic programming going forwards, e.g. Single Investment Fund and local Industrial Strategy and Investment Strategy development.

Similarly, SIA ambitions have been written into CA Portfolio Plan, and ancillary projects become de facto priorities given the relative strength of the SIA-provided evidence base.

The Executive leads from each of the LCR+ core partners (LCR LEP, Liverpool City Council/CA, LSTM, STFC, Unilever, UoL) all now sit on the LCR Innovation Board, and the SIA is a standing agenda item. The Delivery Group

43

Deal Element:

Innovation Progress to date

also continues to meet. While focused on the LCR’s

assets, capabilities, and businesses, partners recognised from the outset that we can only fully maximise our potential by working with the “best of the best” industry, research bodies, and other major stakeholders wherever they are located, hence the important “+” designation.

Indeed, beyond the actual evidence base, ambitions and programmes identified, the real benefit of the LCR+ SIA process has been the strengthening of existing relationships and the creation of new ones, both locally and nationally, e.g. involving the Centre for Process Innovation Catapult in Tees Valley, Royce Institute in Manchester, Alderley Park in Cheshire, Turing Institute in London, EEF nationally and the Bill & Melinda Gates Foundation globally.

Since December 2016, the SIA process has also catalysed close dialogue and collaboration across all 11 Northern LEPs. Working closely with Innovate UK, and with input from N8, this has culminated in the “Innovation North” study currently being conducted. This will identify further research imperatives plus specify activities that are best delivered on a pan-North basis, while laying the foundations for further research

Outcomes:

An enhanced robust research and evidence base re the LCR’s smart specialisation innovation assets and capabilities.

A prioritised pipeline of investment-ready projects to maximise potential funding opportunities

44

Analytical approach

G.2 It will be apparent that the majority of the activities being taken forward in respect of innovation are process-related and these will be subject to process evaluation here (e.g. monitoring of outputs, ‘lessons learned’ exercises and so forth). Subsequent measures developed through the Strategic Investment Fund process will incorporate detailed monitoring and evaluation plans as part of their business cases and their implementation will be secured as part of the Grant Funding Agreement.

45

ANNEX H

THE DEVOLUTION DEAL - BUSINESS

H1. Core element of Devolution Deal is as below.

Deal Element:

Business Growth and Support Progress to date

Summary: The government will work with LCR to support the development of their growth hub so that it joins-up and co-ordinates public, private, national and local support to ensure businesses get the help they need to boost their productivity and grow. This will include agreeing how we will work in partnership to help the growth hub to: become sustainable; connect small businesses with national services that support exports, innovation, access to finance and skills; collaborate on innovative business support evaluation projects which develop robust evidence about what works; and share best practice widely to deliver better outcomes for the country as a whole.

The Liverpool City Region Growth Hub has been fully operational for two years. The Growth Hub has successfully created a true eco-system of support from across the public and private sector co-ordinated through a network of brokers. Brokers have worked with almost 8,000 individual businesses and 2,000 individuals, ensuring the support they receive is the most appropriate for them. The integration of over 50 deliverers from across the LCR into a single CRM system has provided significant added value and enabled the Growth Hub to see in real time what support each company has received to eliminate duplication. The Growth Hub has become a true partnership which fully integrates across the Local Authorities, Chambers, Universities and Private Sector through the brokers and the digital offer at www.localgrowthhub.com. Collaboration is at the heart of what the Growth Hub is; the best example of this is the setup of ESIF supported provision which offers joined up services tailored to the needs of the businesses and brokered through the Growth Hub. Since the launch of the Growth Hub almost 5,000 businesses/individuals have been brokered into specific support programmes from start-up support to access to finance and skills support, ensuring a fully joined offer. A key goal of the Growth Hub has been to develop the eco-system and collaborative work between multiple partners that will ensure a resilient infrastructure and robust partnerships.

46

Ring-fence trade services resource within Liverpool City Region; explore options for integrating it with the Liverpool City Region Growth Hub to form a single trade service for businesses; agree an export plan for the City Region with UKTI

The Growth Hub has been in discussion with DIT for some time regarding a dedicated full-time export brokerage resource for the Liverpool City Region being based at the LEP but this has not been forthcoming. We feel that the ESIF resource put into the DIT programmes by the LCR demands this to ensure that businesses in the City Region receive the same level of support as areas where DIT has a permanent presence. This new ESIF arrangement is due to begin in January 2019 and we seek a guarantee that DIT will deliver on its devolution commitment.

Establish IFB Liverpool as a vital feature of the international business calendar in 2018 and 2020. The Festival was delivered in 2018 as agreed. Analysis of

results is being undertaken and will be available later this year. Nothing has been agreed in respect of IFB 2020 due to budget reviews.

UKTI will agree joint objectives for a strengthened locally-delivered service to attract inward investment and will participate in a quarterly board to track progress. The government will consider the case for creating a Northern Powerhouse hub for foreign investment in discussion with key partners in the region. This approach will be focused on maximising high-level jobs and long-term economic impact.

Departmental for International Trade (DIT) continues to work closely with LEP through their MOU to achieve FDI for the LCR. Northern Powerhouse DIT team is established with sectors covering Health & Life Sciences, Advanced Engineering Manufacturing, Digital & Creative, Financial Professional Business Services and Energy and Environment. A Board has been set up for NPH Trade and Investment and meets on a regular basis to discuss how NPH programme should work and benefit the LEPs involved. It discusses market countries and sectors to achieve long term economic impact. The City Region is committed to establish “One Front Door” for investment enquiries in the City Region to improve co-ordination and management of investment opportunities.

47

HMRC commits to extending its existing policy of custom warehousing and other reliefs to any goods that are imported and then manufactured and/or assembled in Liverpool City Region before export as and when businesses LCR apply for this facility.

CA commissioned a review of the potential for extending custom warehousing and the likely demand it would generate subject to the nature of the Brexit deal. It retains an interest in the potential for “Free Trade Zones” to attract value added manufacturing and other operations.

Outcomes: A sustainable growth hub that effectively joins up and co-ordinates, public, private, national and local support to ensure businesses get the help they need to boost their productivity and grow.

LCR Exporters Network established for peer to peer export support ahead of LCR Export Plan being agreed with UKTI.

Outstanding IFB 2016 programme in place with many international delegations confirmed.

Significant progress made in moving towards a NP Foreign Investment Task Force with UKTI, but model still to be agreed. LCR partners agreed collaborative ESIF Bid for Investment/Sector place marketing.

The Liverpool City Region Growth Hub has been established and operational for two years. Work continues to constantly improve the process for businesses with a focus and impact assessment.

The National Export Plan has been launched and will be considered for the LCR working with DIT. Still awaiting DIT ring-fenced resource to support establishment of LCR Exports Network and Export Plan.

IFB 2016 and 2018 taken place. Analysis of results for 2018 taking place and will be available later this year.

Northern Powerhouse DIT team is established with sectors covering Health & Life Sciences, Advanced Engineering Manufacturing, Digital & Creative, Financial Professional Business Services and Energy & Environment. A Board has been set up for NPH Trade and Investment and meets on a regular basis to discuss how the NPH programme should work and benefit the LEPs involved. It discusses market countries and sectors to achieve long-term economic impact. The Place Marketing ERDF bid was submitted and has been delivering on target. An extension is currently being sought.

CA commissioned the LEP to develop an Internationalisation Strategy and Action Plan to cover trade and investment. This will be published in October 2018.

48

H.2 Through the Devolution Deal Liverpool City Region committed to develop and implement a devolved approach to the delivery of business support from April 2017 onwards, building on the Business Growth Hub framework.

H.3 Through the development of the Growth Hub infrastructure Liverpool City Region has developed a dynamic enterprise and innovation eco-system with a simplified, locally delivered and demand-led approach to business support.

H.4 Our ambition across key sectors is to become a beacon of excellence, productivity and accelerated growth, creating more and higher skilled jobs and more growth businesses throughout the economy.

H.5 There are a number of outcomes that the City Region is looking to achieve:

a) Starting, growing and attracting more sustainable businesses.b) Creating, attracting and retaining better jobs.c) Encouraging more innovation.d) Raising economic output and productivity per capita.e) Concerted, multi-intervention approach across a broad range of areas.f) Accelerated small business growth through targeted services and financial

instruments including small grants to incentivise investment and unlock potential.

g) Build in the City Region’s unique and / or nationally/internationally significant innovation assets and capabilities that have the potential to transform productivity and growth.

H.6 Particular interventions that are underway in Liverpool City Region:

a) Business leadership mentoringThe Growth Hub is working with Universities and the LCR Professional & Business Services Board to further this agenda and join it up with the Scale Up work which is in development.

b) Extended business starts and growth mentoringThe recent ESIF call had a specific call for more focused start-up support and more work with businesses in their first year of trading. Appraisal is currently on-going, and these new projects will come on stream in early 2019.

c) Finance hub and growth fundsThe LCR Finance Hub went live in late 2017 and the Growth Hub has worked very closely with them to ensure businesses seeking finance are directed to them as they are resourced to offer a full service to get the business investment ready and secure the investment.

d) Schools enterpriseThe LEP has managed the Enterprise Adviser Network for three years. The EAN is funded by the Careers and Enterprise Company which is funded by the Department for Education to introduce and expand Enterprise Education to secondary schools and colleges by linking them with a strategic co-ordinator and a dedicated private sector Enterprise Adviser. In September 2018 the City Region will launch one of the first Careers Hubs in the country. This is the next level of the Careers and Enterprise Agenda and LCR is aiming to be an exemplar in this area.

e) Specific support for female entrepreneursThe Enterprise Hub is the main start-up programme in the Liverpool City Region and one of the key delivery partners is the Women’s Organisation who have so far helped over 1,000 women with start-up support. This programme will continue up to 2020.

49

f) A sectors programmeSeveral sector specific support programmes are now live including:

LCR 4.0 LCR Activate Health Innovation Exchange Future Energy Low Carbon Eco Innovatory Sensor City

The Growth Hub ensures that these programmes are tailored to the needs of businesses in the City Region and that value is added through each intervention.

Logic model

H.7 Liverpool City Region business support services aim to address the multiple factors that impact upon business performance and barriers to growth.

The following logic model provides a high-level summary of the types of activities, outputs and outcomes that are common to all the business support services mentioned above.

Business Growth and Support - Outline Logic Map

Analytical approach

H.8 The City Region has an established monitoring and evaluation framework in place for Business Growth Hub services, including those outlined in section H6 of this document. All Growth Hub partners are contractually required to measure performance, customer service and impact. The common CRM system in place allows for evaluation of client engagement and destination following diagnostic which is reported is reported on quarterly. This information is incorporated into a quarterly report to BEIS.

H.9 In 2017-2018 LCR Growth Hub undertook a survey of Growth Hub businesses to provide both quantitative and qualitative information on the impact of Growth Hub

50

services in the City Region. BEIS use Growth Hub monitoring and evaluation information to ensure consistency and transparency of Growth Hub reporting and to help demonstrate the impact of funding on levels of business support and business growth in local places. The information is critical in informing the future development of Growth Hubs and in helping to shape future policy thinking. The LCR LEP Managing Director co-chairs the national Growth Hub customer Insight Data and Impact Steering Group ensuring the LCR Growth Hub is at the forefront of good practise in impact evaluation and application into approaches and programmes of delivery.

H.10 ESIF business support provision have an established reporting framework.

Data requirements

H.11 The following metrics are reported through the established Growth Hub monitoring and evaluation framework.

Metric Frequency SourceInputs:1. Growth Hub Financials2. Number of

businesses/individuals engaged with the Growth Hub

3. Unique visitors to the Growth Hub website

QuarterlyQuarterly

Quarterly

CRM/Growth Hub ManagerCRM/Growth Hub Manager

CRM/Growth Hub Manager

Outputs:1. Number of individuals who have

been helped to start a business2. Number of businesses receiving

interventions

Quarterly

Quarterly

CRM/Growth Hub Manager

CRM/Growth Hub Manager

Outcomes:1. Jobs created/safeguarded2. £ increase in GVA3. £ private match secured

AnnualAnnualAnnual

CRM/Growth Hub ManagerCRM/Growth Hub ManagerCRM/Growth Hub Manager

Dissemination of findings

H.12 The Liverpool City Region Local Enterprise Partnership and Combined Authority will use the evaluations from Growth Hub services and associated business support provision to improve the design and delivery of services in the City Region on an on-going basis.

H.13 Findings from evaluations will be shared with Liverpool City Region partners, national partners such as BEIS and other central government departments as relevant.

51

ANNEX I

THE DEVOLUTION DEAL - ENERGY AND ENVIRONMENT

I.1 Core element of Devolution Deal is below.

Deal Element: ENERGY AND ENVIRONMENT PROGRESSSummary: Government provide guidance to support

LCRs development of a cost-effective tidal power scheme proposal for the River Mersey or Liverpool Bay that could generate low carbon energy for businesses and consumers.

DECC and Ofgem commit to explore further LCRs proposals on how innovation and collaboration can enable a more coordinated approach to network investment in order to meet growing network demands. Ofgem commit to considering proposals put forward by the LCR and the DNO as part of the ‘Quicker and More Efficient Connections’ project.

DECC commits to work with LCR on the design of future home energy efficiency programmes, including ways to make delivery mechanisms more efficient and effective.

In November 2017, the Metro Mayor announced the appointment of industry leader, Brent Cheshire (previously the UK Chair of Dong Energy, now known as Orsted) to drive forward the Mersey Tidal project.

The plans are well under way and the core business case for the multi-billion renewable energy project in in development

In July 201814 the Combined Authority agreed a skeleton outline business case for the development for the project and approved the allocation of further funding to progress the next stages of business case development.

Outcomes: Cleanest river standard by 2030 and a discharge free Mersey by 2040.

Tidal range harnessed to produce power for the City Region's businesses and citizens.

A more co-ordinated approach to network investment to meet growing demands.

LCR home energy efficiency programmes.

I.2 Detailed monitoring and evaluation plans are being developed as part of the Mersey Tidal business case process.

I.3 Once further deliverables are confirmed and projects established then monitoring and evaluation requirements will be defined.

14 http://liverpoolcityregion-ca.gov.uk/uploadedfiles/Members/lcrca_270718_agenda.pdf

52

ANNEX J

THE DEVOLUTION DEAL - CULTURE

J1. Core element of Devolution Deal is below.

Deal Element: Culture Progress to dateSummary: Place culture and creativity at the heart

of Liverpool City Region’s strategy to accelerate economic growth, building on existing assets and strategically aligning funding to accelerate economic growth, improve skills and further develop its distinctive visitor offer.

Outcomes: Liverpool City Region will develop a place-based strategy to culture and creativity that brings together national and local partners in a Cultural Partnership, aligning strategic priorities to deliver shared outcomes over the mayoral term.

Produced a LCR Culture and Creativity Strategy – with series of actions to implement over short, medium and long term.

Established a multi-agency Cultural Partnership connected to national strategies and aligned to local strategy.

Delivering a programme including 3 core cultural projects with support from Mayoral Fund (which is being matched by other partners). Currently being delivered and impact measured:

i) Boroughs of Cultureii) LCR Cultural Eventsiii) LCRC Cultural Awards

Created resources to support delivery of strategy and outputs/outcomes, including:

i) LCR Cultural Working Group (chaired by chief executive lead)ii) Culture Co-ordinator Post within CAiii) Research post (resourced through Liverpool JMU)

Graduate Posts within CA Exploration of the options around a

sustainable and viable business model for National Museums Liverpool.

This was explored fully and the most appropriate and sustainable model was for NML was agreed with Government. One outcome was for LCR involvement in the appointment of the Chair and Director of NML. This

53

Deal Element: Culture Progress to datehas taken place for the Director post.

The development of Liverpool’s ambition for a National Migration Museum to reflect its heritage and future as part of wider city region cultural infrastructure plans

There was no money available from Government for this specific museum.

We are now developing wider opportunities to reflect LCR international heritage and contemporary culture that aligns with Government priorities.

The development and sharing of learning by Liverpool of its legacy as the European Capital of Culture in 2008 and the development of a city region wide cultural programme to celebrate the 10th anniversary in 2018

Currently in the middle of Liverpool’s anniversary year. Aim is to attract audiences in the region of 4m people, create £100m

economic impact, engage with 50,000 people through education and community initiatives.

Aim is also to push Liverpool to the top of the ‘must visit’ cities in 2018 and to link through to visitor economy drivers to impact across the LCR.

Lost Castles is an example of a 2018 anniversary cultural project being delivered across the LCR in all of the other 5 boroughs.

Economic and social impact being gathered for the whole 2018 programme with conference to share findings in Autumn 2018.

54

Possible Evaluation Techniques

J.2 It will be apparent that the majority of the activities being taken forward in respect of culture are process-related and these will be subject to process evaluation here (e.g. monitoring of outputs, ‘lessons learned’ exercises and so forth).

J.3 Discussions with the ‘What Works Centre for Local Economic Growth’ also highlighted the difficulties in obtaining meaningful impact evaluation from cultural activities and events, above these being recognised as ‘public good’ measures that have direct and indirect economic impacts that will be captured through on-going monitoring of the LCR’s economy and the ‘Building Our Future’ Growth Strategy.

J.4 The 2018 programme is being fully evaluated, using an independent organisation. The findings will be shared at a conference in the autumn. Some aspects of the 2018 programme are subject to separate reporting to the Combined Authority (through the SIF Fund).Aside from this, separate interventions are and will continue to be evaluated and reported including, for example the first LCR Cultural Events Programme ‘Lost Castles’.

Logic Model

J.5 The Culture and Creativity Strategy highlights aims and what success looks like. The Logic Model is in development and will track this to show inputs, activities and interventions needed to achieve the success needed (outputs, direct outcomes and indirect outcomes.

55

Data Requirements:

J.6 Many interventions in the Culture and Creativity Strategy relate to developing increased collaboration, partnership working, shared resources and different ways of working to support sustainability of the sector and stimulate new opportunities. The outputs of these interventions will be captured although this is unlikely to be numerical in the first instance.

J.7 Other key metrics include:i) Economic impact of Culture and Creative interventionsii) Visitor numbersiii) Increased participation in Culture and Creative interventions (that support

other priorities such as community cohesion, health and wellbeing, education, skills, place making, etc.)

iv) Increased external funding into the LCR for Culture and Creativity (to support sustainability and wider outcomes)

J.8 Baseline information across the LCR for Culture and Creativity is difficult to gather across all areas however the data that does exist relates to: Participation in the arts (Taking Part Survey) Arts Council Funding in local area Heritage Lottery Funding in local area Big Lottery Funding in local area Baseline GVA for specific areas of work (for example the first two occasions of

The Giants) Visitor numbers to cultural visitor attractions Visitor numbers (through Visitor Economy Board)

This is being gathered as part of the Logic Model development.

Dissemination of findings

J.9 This will conform to the overall dissemination strategy that is outlined in section 3.

56

ANNEX K

THE DEVOLUTION DEAL - SINGLE INVESTMENT FUND (SIF)

K.1 Core element of Devolution Deal is below.

Deal Element:

Single Investment Fund

Summary: Creation of a Single Investment Fund (SIF) drawing together national and city region funding streams, prioritising investment based mainly on economic impact. Government will capitalise this pot with £30m of ‘Gainshare’ funding and will work to identify additional funding streams which will form part of the LCR single pot. The Gainshare element will be subject to 5 yearly gateway assessments and will be covered by the SQW national evaluation work.

Outcomes:

Establishment of a SIF and delivery of a programme of investment projects which will deliver increased economic growth for the City Region.

The bringing together of public funding streams and the ability to make local decisions on priorities will ensure that resources are invested in ways that will have the maximum impact on the economy.

Progress: Single Investment Fund Round I

The Liverpool City Region Combined Authority (LCR CA) launched its single investment fund in late 2016, commissioning and calling projects to commit funds from the Local Growth Fund round I and II as well as £150 million of gainshare monies. The LCR CA included Local Growth Fund round III in 2017.

This round relied on a fund prospectus designed to reflect the LEP led, 2016 growth strategy for the City Region, underpinned by a DCLG approved assurance framework15.

The SIF is now fully operational and, as outlined in the current assurance framework, a rigorous five stage business case model has been developed to test the feasibility of the anticipated economic impacts. The underwriting process includes the LCR CA’s requirements in respect of monitoring and evaluation.

To date the SIF has attracted circa. £49m of additional match funding / local contribution to boost economic impact. By way of example, the following cumulative outputs have been reported to government as part of our latest Dashboard reporting:

35,189 m2 of new improved learning floor space 1949 new learners assisted 2129 jobs created including apprenticeships

The LCR CA’s Programme Management Office is responsible for the monitoring of on-going performance and produces regular reports which

15 https://www.liverpoollep.org/wp-content/uploads/2016/12/LCR-Combined-Authority-Single-Investment-Fund-Assurance-Framework.pdf.

57

highlight progress towards project completion and benefit realisation in line with government guidelines.

Project Breakdown

Overall SIF effectiveness and impact continues to be assessed via the evaluation of SIF funded projects and the independent evaluation to be undertaken by SQW.

To date:

86 applications have been legally agreed and contracted and projects are now in delivery to the value of £258,726,170.

11 additional applications with a total value of £64,331,657 have received approval from the CA to proceed to contract.

14 applications with a total value of £88,391,867 are currently subject to due diligence and consideration by the CA.

The LCR CA expects to approve a further £30-35 million in commitments in rest 2018 and to address the remaining pipeline under its SIF Round II approach (see below).

Strategic Investment Fund Round II

Responding to the need to improve the City Region’s ability to generate a high-quality, cross sectoral pipeline of projects; to underwrite projects more quickly; and to improve SIF’s commerciality overall, the LCR CA took the following key steps in 2018:

- Recruitment of a new, core investment team with vastly improved commercial investment skills to complement regular public sector investment skills

- Approval of a new investment strategy more focused on addressing demand, growth areas, market failures and areas of greatest public intervention potential16;

- Redrafting of the accompanying assurance framework- Establishment of new collaborative practices with LAs and

development of medium-term strategy

The LCR CA plans to launch a new round of SIF funding in November 2018, with a mixed focus on committing funds left over from Round I in the short-term and preparing for transformative new investments with the next round of gainshare monies.

In March 2018 the LCR CA secured £134m Transforming Cities Funding, which now forms part of the SIF. This is capital funding for local transport investments and is ‘open’ for applications at present17.

The LCR CA’s new SIF approach is based on the “Three Cs”:- Coherence (taking a cross-sectoral, multi-project view to maximise

16 http://liverpoolcityregion-ca.gov.uk/uploadedfiles/documents/LCRCA_Strat_Invest_Fund_July_2018.pdf 17 http://liverpoolcityregion-ca.gov.uk/uploadedfiles/Documents/LCRCA_TCF_AUG18.pdf

58

impact)- Commerciality (maximising the use of risk-based and repayable

funding)- Credibility (establishing LCR as a business focused, competent part

of UK PLC)

For example, the “Town Centres Commission” will provide development funding to local authorities to address the performance of their town centres, enabling the preparation of long-term interventions. The commission will combine expert, external advice with rigorous impact evaluation to guide learning in the City Region and beyond.

K.2 As context, the SIF now totals £596.56m and is primarily comprised of three elements:

a) Local Growth Funds; b) Investment Fund (Gainshare); andc) Transforming Cities Fund

However, the Authority’s medium-term plan is to widen the SIF to include funds such as Chrysalis, Urban Development Fund II, HE partnership, commercial lending, recycled SIF and related funds, which demonstrate a clear ambition beyond direct government funding awards. Many of these wider funds, especially those that relate to funding sources from the European Union will be subject to their own eligibility rules and governance processes beyond those set out in the SIF Assurance framework. M&E will remain a core expectation for any project that is developed through the SIF process, however.

K.3 Overall SIF effectiveness and impact continues to be assessed via the evaluation of SIF funded projects and the independent evaluation to be undertaken by SQW.

59

Inputs Activities

Outputs

Direct Outcomes

Impact

SIF investment

Co-development expertise

Local contribution/ match funding

Local transport

Land & PropertyInfrastructure

Low Carbon

Business Support& Innovation

Skills & training

Housing

Dependent on project activity. Examples could incl:

Rail & Highway Capacity

Business Supported

Land Remediated

Apprenticeships Created

Increased GVA

Increased

productivity

Dependent onProject activity. Examples could include:

Employment Creation

Visitor Numbers / Visitor Spend

Reduction in journey times

Reduced carbon emissions

/

Evaluation of Individual SIF Projects

K.4 All projects supported by SIF are required to produce an appropriate Monitoring and Evaluation Plan (M&E Plan). This will enable the LCR CA to assess the effectiveness and impact of investing public funds and to identify best practice and lessons learnt that can inform decisions about future delivery.

K.5 Each project specific M&E Plan will detail the anticipated output and outcome metrics methods for collection, reporting frequency and suggested evidence to verify their realisation.

K.6 Due to the scope of activity supported by the SIF (as per the Investment Strategy), the nature of activities, outputs and outcomes will vary from scheme to scheme.

K.8 Monitoring of project performance will be undertaken by the Programme Management Office. A failure to evaluate a scheme and produce a report in line with agreed details may render a scheme liable for claw back by the LCR CA.

K.7 The completed evaluation will allow LCR CA to build an evidence base, which will help inform future scheme decision making and assist in bidding for future resources from whatever source including future SIF.

Gainshare Monitoring and Evaluation

K.12 Government has set out a specific requirement to undertake five-yearly gateway reviews of the Liverpool City Region’s annual £30 million (over 30 years) Gainshare Investment Fund which will be undertaken by a national evaluation panel.

K.13 The M&E process for Gainshare will be informed by the independent evaluation of Local Growth Interventions (LGI); SQW have been appointed to lead this work. This work will provide context for understanding the impact of wider devolved funding pots investment at a country-wide level.

60

K.14 The LCR CA agreed the intended list of Gainshare funded projects what would form part of the national SQW evaluation in September 201718. This was agreed as the candidate projects based on a point in time with schemes that were progressing through the SIF approval processes. Some changes are proposed to this list to reflect the current position of the programme / schemes. It is now proposed the list of schemes will be as set out below but which is caveated by the fact that this list is subject to further consideration and approval by the Combined Authority.

Project Project Stage

International Festival of Business 2018 Complete / M&E

Liverpool Cruise Liner terminal Approved

Paddington Village, Liverpool City Centre Approved

Parkside strategic investment site access road In Diligence

Shakespeare Theatre, Prescot Approved

K.14 SQW will commence the baselining work to inform the evaluation in September 2018. We are working with SQW to support this process.

Dissemination of findings

K.16 This will conform to the overall dissemination strategy that is outlined in section 3.

18 (http://councillors.knowsley.gov.uk/documents/s49778/Item%2016%20-%20Report%20and%20Appendix%20One.pdf?StyleType=standard&StyleSize=none

61

ANNEX L

AREAS OF IN-DEPTH EVALUTION

L.1 LCR CA has identified elements of the Devolution Deal that would be strong candidates for in-depth evaluation, using ‘What Works Centre for Local Economic Growth’ principles. These principles include the use of a counterfactual (e.g. via a control group or through a randomised trial) to enable interventions stemming from the devolution deal to be assessed and reviewed in a timely, cost-effective manner.19

L.2 The LCR CA’s high quality impact evaluations will be focused on the following areas of the Devolution Deal, in addition to the five-yearly Gateway Reviews undertaken by a national evaluation panel evaluation.

L.3 These areas of focus that lend themselves to an element of randomised or control trials to provide quick and effective feedback on relative benefits and impacts will include:-

a. Employment support : further to the approval of the pilot business case by Government and Combined Authority, the City Region will work with DWP to use an innovative evaluation approach for the Household Pilot.

The City Region will continue to work with the ‘What Works Centre for Local Economic Development’ on the detail of its innovative evaluation approach to the household pilot, which will allow comparison between cohorts to establish what works in practice through a high quality impact evaluation.

Joint work is also underway with the University of Liverpool’s Heseltine Institute for Public Policy, Practice and Place to provide independent evaluation support. However, discussions are continuing with DWP on access to additional information to allow this robust evaluation to take place.

b. Business support activities: dependent on the type of schemes and projects that are developed and approved through the Single Investment Fund (SIF) process, there will be scope to evaluate the impact of these activities using quasi-experimental methods e.g. control groups as appropriate.

L.4 Importantly, for transport capital schemes, there will also be a clear focus will be on using monitoring and evaluation data to better inform scheme identification and prioritisation, ahead of detailed, technical scheme development evaluation. This is to strengthen the ‘problem identification’ and options testing processes in line with the DfT’s ‘Early Assessment and Sifting Tool’ (EAST).

19 This aspect has been informed by a meeting between lead officers from the city region and Professor Henry Overman in November 2016

62

Further Information

Liverpool City Region Combined AuthorityMann IslandPO Box 1976LIVERPOOLL69 3HN

63