Supporting Older

People Conference

Sponsored by:

Df

B7: The nation’s growth engines – where next

for the cities’ agenda?

Speakers: Andrew Carter Deputy Chief Executive and Director of Policy and Research, Centre for Cities

Cllr Sir Albert Bore

Leader, Birmingham City Council

Colin Blackburn Head of Infrastructure and Investment Leeds City Region Partnership

Chair: Ron Dougan Chief Executive, Trent & Dove Housing

The Cities Agenda : the

Birmingham perspective

Councillor Sir Albert Bore,

Leader,

Birmingham City Council

• Rapidly growing population

– Birmingham’s population grew by 88,000 or 9% over the period 2001 to 2011 (2011 Census)

– Projected to grow by up to 150,000 Over period 2011 to 2031 • Housing pressure

– Projected increase in households of at least 80,000 within next 15 years.

– Overcrowding - currently affects 31,000 households within the City = 7.5%

• Jobs

– We will need to create at least 100,000 new jobs

– Current relatively high levels of unemployment = 45,000 (12.7%)

• Wider issues

– Concentrations of deprivation, widening income inequality,

inward migration, etc, etc…

The Demand Challenge (#1)

The Demand Challenge (#2)

Birmingham Average house price = £156,388

House Type Average Price

Detached £313,267

Semi-detached £155,684

Terrace £127,090

Flat £112,742

Affordability

The average house is ‘6.49’ times the average (£24,090) wage.

The Supply Challenge

• Current capacity within the City (urban) for circa 45,000 net new homes

• Shortfall of space for at least 35,000 net new homes

– 9,000 new homes already have planning permission but are stalled

– In the last three years net completions were:

• 2009/10 933

• 2010/11 975

• 2011/12 1187

• To meet the target we need to build 5,333 new homes each year for 15 years !

• Birmingham can not meet all its housing needs !

– We have 192,000 commuters in to Birmingham every day, which is 38% of all jobs.

A problem shared ?

• Historically part of Birmingham’s housing provided by others

• RSS no longer a mechanism

• Duty to Cooperate – statutory requirement

• Neighbours also face challenges

• Need to consider housing and employment land supply at LEP level and commuting level

How have Councils been affected

by cuts so far? • By 2014/15 English local authorities’ spending

power is projected to be 12.2% below 2010/11 levels

(3% higher than planned in 2010)

• Forecast 50% cut in BCC controllable budget by

2016/17

•The need for services is high and still growing

• the “graph of doom” shows how social care

costs on average make up 22% of LA

budgets, as high as 40% for some LA’s while

income is falling

How will Councils be affected

by the Spending Review?

The Spending Review 2013 cuts £11.5 billion from the national budget between

2014/15 and 2015/16

A quarter of councils are likely to have reductions of more than 15.7%, with larger

cuts in London and other metropolitan areas

Central government grants make up 60% of LA budgets – reductions in

Government grant mean cuts to services or significant increase to Council tax

Housing and City Deal

• Aimed at delivering in excess of 2,800 additional new homes through

the use of public assets, plus generating economic growth by

regenerating employment sites.

•The Council and the Homes & Communities Agency land will create a

new joint fund to prepare sites, (access, infrastructure, viability and

site conditions) drawing on the revenue generated by former RDA

assets.

• The value of the HCA and Local Authority assets which are “pooled”

into the Public Assets Accelerator will have a value of £57m; (£25m

value of retained former RDA land)

The need for finance reform

In an environment of reducing funding and increasing demands for services the local government “asks” should be;

1. Full devolution of wider streams of funding into a single pot as suggested by Lord Heseltine – the default position should be: funding is devolved from Government unless it can be proved better managed centrally.

2. A move away from the ‘bidding’ approach which creates divisiveness, uncertainty, and wastes valuable resources. Prefer a need based allocation system

3. A greater emphasis from Government on the Enterprise Zone type of approach which rewards Local Authorities for the economic growth which they generate within their areas by allowing retention of business rates

4. Lifting the borrowing cap against BCC owned housing would raise in excess of £600m, which we could use to drive housing growth.

Summary

• We are bringing forward a refreshed housing strategy and investment strategy for

autumn this year.

• We are pressing Government in relation to levels of devolution and the borrowing cap.

• We are working with our neighbours to address the need for joint ownership of the

housing pressure

• We are reviewing our Green Belt policies and strategies

• We are keen to see housing of all types built within the City

• To achieve more traction I have merged strategic housing, skills, education and other

infrastructure related services into a more integrated Development & Culture

Directorate.

Thank You !

13

DEVOLUTION & THE SPENDING

REVIEW

Colin Blackburn

Head of Infrastructure & Investment

5 July 2013

www.leedscityregion.gov.uk

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LEEDS CITY REGION

3m population

£54 billion economy

Over 100,000 businesses

5% of UK GVA

1.2m homes

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CITY REGION DEAL HEADLINES (2012)

Devolved budgets

• £1bn Transport Fund

• £12m Apprenticeships & Youth Contract

Governance

• Combined Authority Plus

• Enhanced Local Enterprise Partnership

Investment

• LCR Investment Fund

• Single Pot

• Pooling budgets (Busn’ rates, EZ receipts, LA capital)

• Earn Back

LCR INVESTMENT FRAMEWORK

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SPENDING REVIEW

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A driver for growth?

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CONTINUING THE DEVOLUTIONARY

JOURNEY

Spending Review

• Business Plan - Single Local Growth Plan

• Competitive bidding – v - allocated budgets

• New budgets – £2bn LEP, £3.3bn Affordable Housing

• Departmental commitment ?

LCR Key Actions

• Do fewer things but better – return to a policy focus

• Pooled budgets and co-investment

• Fill the ‘finance’ market failure gap

• Focus capacity and resources

• Project development & scheme packaging

• Public–private partnership and collaboration

LCR INVESTMENT PRIORITIES

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Supporting Older

People Conference

Sponsored by:

Df

B7: The nation’s growth engines – where next

for the cities’ agenda?

Speakers: Andrew Carter Deputy Chief Executive and Director of Policy and Research, Centre for Cities

Cllr Sir Albert Bore

Leader, Birmingham City Council

Colin Blackburn Head of Infrastructure and Investment Leeds City Region Partnership

Chair: Ron Dougan Chief Executive, Trent & Dove Housing