Agenda item

            The Members of the Committee considered the following report:

 

“1.0     Purpose of Report/Summary of Main Issues

 

1.1            This report is to provide the Committee with an update on the progress of the Belfast Region City Deal (BRCD), including progress on the development of the Programme Business Case for the Digital Programme and next steps in the establishment of Belfast City Council as the Accountable Body for the deal.

 

 

 

2.0       Recommendations

 

2.1       The Members of the Committee are asked to recommend that, in accordance with the Council decision of 4th May, the Chief Executive exercise her delegated authority to note:

 

·        the development of the deal document, based on the agreed approach to delivery of a phased deal;

 

·        that Belfast City Council will act as the Accountable body for the deal ensuring that decisions are made in accordance with all legal, financial, and administrative requirements;

 

·        the programme overview and the progress that has been made in the Digital Innovation Programme Business Case; and

 

·        the update in respect of the BRCD Council Panel.

 

3.0       Main Report

 

            Programme Update

 

3.1       In May, the Committee received a detailed update on progress across the programme and an outline on the development of the deal document. The key components for a phased deal are now well advanced, with Business Cases submitted and being reviewed by NI and UK Governments across the programme.  Discussions continue with UK and NI Governments to agree a timeline and process for negotiation and approval of the deal document, in parallel with the formal consideration of Outline Business Cases (OBCs). 

 

3.2       As outlined previously the overarching deal document is supported by both an Implementation Plan and Financial Plan. Following the last update to Members in May work has continued with the NI and UK government departments and the Deal document and both the Implementation and Financial Plans are now well advanced.  The BRCD partners are aiming for autumn for these plans to be finalised, allowing the deal to be signed and funding to start to flow to the projects.

 

3.3       As previously reported the Tourism and Regeneration and Innovation OBCs have been submitted to the relevant Government Departments for formal review. Four of the Innovation OBCs have been approved through Casework and by the Economy Minister and await Department of Finance approval. The remaining Innovation OBC is to be reviewed through Casework in October. Two of the Tourism and Regeneration have Casework dates confirmed for September and Partners are working closely with Departments to schedule Casework dates for the remaining projects.

 

3.4       The Employability and Skills Proposition for the BRCD has been developed, following a detailed engagement process with partners and key industry stakeholders, with the aim of creating a collaborative model for identifying and providing the skills required for the jobs that are being created through the BRCD programme of investment. It incorporates three core component elements of an Employability and Skills Partnership, a core E and S programme and approach to deliver inclusive growth.   Partners continue to work to develop and implement collaborative partnership projects in support of the BRCD objectives.

 

            Digital Innovation Programme Business Case (PBC)

 

3.5       As previously outlined to Members, as part of the Deal, partners led by Belfast City Council have been developing a Programme Business Case (PBC) for the £125m BRCD digital innovation programme, which sets out the strategic areas of intervention under the Digital pillar.  The Digital Advisory Board, chaired by the Digital Innovation Commissioner, has overseen the development of this business case which sets out an approach to create an agile, place-based funding environment to help address core societal and regional challenges through digital innovation.

 

3.6       This has been produced in line with HMT Green Book guidance and will enable a long-term and flexible investment programme, which continues to respond to economic and social challenges and opportunities.  As with all BRCD projects, specific investments will require full Outline Business Cases in order to receive expenditure approval for significant expenditure. 

 

3.7       Utilising BRCD funding, the Digital Innovation programme sets out to establish:

 

·          A £55 million Innovation Challenge Fund designed to help address the regional Grand Challenges of Health and Wellbeing, Artificial Intelligence and Data and Sustainability and Resilience providing potential for competitive grant funding, equity/debt finance and an SBRI-style programme;

 

·          £40 million investment in Enabling Infrastructure to support the Belfast Smart District and regional connectivity through investment in advanced wireless infrastructure and data infrastructure; and

 

·          £30m investment in Regional Innovation Hubs (including £5m of capital contributions from partner Councils outside Belfast) to ensure diffusion of innovation and skills throughout the region, building further on sub-regional strengths including the creative sector and cleantech.

 

3.8       The PBC has been developed in a highly collaborative way with detailed engagement and input from the Department for Economy, Department of Finance, Invest NI, Innovate UK, and the Department of Culture, Media and Sport as well as with private sector organisations through an Industry Reference Group.  Following detailed feedback and engagement from January 2021 until June 2021 the PBC has been updated to address stakeholder views – resulting in an assurance statement from UK Government that it is supportive of the proposals. 

 

3.9       Following this, at its June meeting, the Digital Advisory Board recommended that the BRCD Executive Board support formal submission of the PBC to the Department for Economy and UK Government.  With the Executive Board agreeing the recommendation the PBC has now been formally submitted with approval expected from NI Government in the coming weeks.

 

3.10     In parallel with development of the PBC, a Digital strategic narrative has also been advanced, as per the attached appendix, and will provide a strong communications tool for both the Digital Pillar and the overall Programme.

 

            Next Steps – Establishment of BRCD Accountable Body

 

3.11     Members will be aware that Belfast City Council is the Lead Authority for the BRCD, which means it carries out a range of functions that support and enable regional partnership working, such as employing the Programme Management Office and providing administrative, professional and technical support as required to support the Deal.

 

3.12     When the final deal document is signed, Belfast City Council will also be the Accountable body for the deal ensuring that the partnership makes decisions in accordance with all legal, financial, and administrative requirements. 

 

3.13     The main role of the accountable body is to:

 

·        Ensure that BRCD funds remain identifiable from Belfast City Council’s own finances and are released and used appropriately and in accordance with the funding terms and conditions;

 

·        Put in place all financial and budget management arrangements and processes to ensure the BRCD funding is managed and accounted for.  This will be through Belfast City Council’s financial systems and subject to the Council’s Financial Regulations

 

·        Establish appropriate accounting and reporting arrangements in line with the requirements set out in the letter of offer, financial plan and financial agreement

 

·        Prepare set of annual accounts

 

·        Provide appropriate internal audit services;

 

3.14     All grant funding for BRCD from the relevant NI government department will flow to the council, with the exception of projects delivered directly by NI departments (DfI) and the Council will then distribute the funding to the BRCD partners.

 

3.15     The Council is now working with the Department of Finance to agree funding flow and governance arrangements including the development of letters of offer, processes for the drawdown of money and reporting and monitoring requirements. 

 

3.16     Over the coming weeks, officers from the BRCD team, finance and legal services will also work to ensure appropriate internal processes and procedures are put in place to allow the organisation to carry out the functions of the Accountable body as set out above. 

 

            BRCD Council Panel

 

3.17     Members will be aware that the BRCD Council Panel provides a forum for members from all six partner councils to meet to jointly discuss issues, progress and benefits of the BRCD.   Each council is represented on the Forum by four members and, as previously agreed by this Committee, the four BCC nominees are the party group leaders (or their nominees) from the four largest parties.  

 

3.18     Members received an update on the last Council Panel meeting in May and are asked to note that the next Council Panel meeting will be hosted by Belfast City Council on Wednesday 29th September.

 

            Financial and Resource Implications

 

3.19     All costs associated with the BRCD are within existing budgets. 

 

Equality or Good Relations Implications/

Rural Needs Assessment

 

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

 

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

 

            The Members of the Committee agreed to recommend that, in accordance with the Council decision of 4th May, the Chief Executive exercise her delegated authority to note the report.