The Borderlands Inclusive Growth Initiative: A Framework ...egenda.dumgal.gov.uk/aksdumgal/images/att43382.pdf · Direct enquiries regarding this report should be submitted to: Chris

Final Report for the Borderlands Partnership

December 2016

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The Borderlands Inclusive Growth Initiative: ‘A Framework for Unlocking our Potential’

APPENDIX 1

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Contents

1. Introduction 1

2. Strategic Rationale – The Case for Investment 8

3. The Borderlands Framework 32

4. The Borderlands Initiative – Priority Project Activity 38

5. Delivering a Borderlands Initiative 51

6. Next Steps for Borderlands 62

Appendix A: Where Are We Now – Borderlands Baseline Position 65

Appendix B: Policy Analysis and Rationale for Intervention 97

Appendix C: Wider Public Sector Activity 105

Appendix D: SWOT Analysis 113

Appendix E: Monitoring & Evaluation Framework 114

Appendix F: The Business Case Development and Approval

Process 124

The Borderlands Inclusive Growth Initiative: A Framework for Unlocking our Potential 1

1. Introduction

The Borderlands Inclusive Growth Initiative is a long term (20+ year) partnership

involving five local authorities working together to submit a proposal to the UK and

Scottish Government to establish a new cross-border mechanism that will deliver

sustainable and inclusive growth and redistribute economic and social opportunity

across the region’s communities.

The Borderlands cover a large geographic area across the south of Scotland and

north of England, see Figure 1.1.

Scotland England

Dumfries and Galloway Council

Scottish Borders Council

Carlisle City Council

Cumbria County Council

Northumberland County Council

Figure 1.1: Borderlands Spatial Area

Source: Borderlands Partnership


1.1 Origins of the Proposition

The rationale for exploring a new partnership approach to delivering economic

sustainability and inclusive growth came from three initial drivers: a changing political

landscape; a number of shared challenges relating to economic sustainability and

growth; and recognition of the added value that could be driven by developing an

innovative cross-border partnership.

Changing political landscape – the initial driver for a Borderlands Initiative came

forward in the run up to the Scottish independence referendum in June 2014

(considering the opportunities for regional devolution – both within the Scottish and

English local authorities). Since this period, negotiations for establishing a North

East and Cumbria Mayoral Combined Authority have been underway, with devolved

responsibility likely to include: transport; employability and inclusion; economic

development and regeneration; and skills.

Shared challenges – there is recognition that, given their largely rural base and

socio-economic make-up, that the cross-border local authorities face a number of

shared challenges and there is a widening gap with the rest of Scotland and

England, summarised as:

low levels of productivity;

low levels of income;

low population retention (particularly working age and young people); and

an economic base dependent on traditional, rural sectors, that is vulnerable

to external pressures.

Opportunity through collaboration – there is also an acknowledged opportunity

that collaboration between the partners can build on regional strengths such as:

good quality of life/ high quality natural environment (National Parks, Areas

of Outstanding Natural Beauty etc);

establishing a ‘functional economic geography’ that is based on opportunity

and shared aspirations rather than on administrative boundaries;

shared strategic priorities; and


emerging opportunities such as the development of the Moorside nuclear

power station which could deliver high value employment and attract private

investment.

1.1.1 Early Development Research

Prior to the development of this Framework, two scoping studies have supported the

development of the Borderlands proposition:

1. Borderlands: Can the North East and Cumbria Benefit From Greater Scottish

Autonomy? (July 2013), Northumbria University Newcastle, University of Cumbria,

and the Institute for Public Policy Research North (IPPR North).

The Association of North East Councils (ANEC) commissioned research to consider

the potential opportunities arising through greater Scottish autonomy – ‘Devo Plus’,

‘Devo Max’ or full independence. The research concluded there was merit in

considering future opportunities for cross-border working and collaboration to

stimulate economic growth across the wider region.

2. Developing the Framework for a Borderlands Strategy (November 2015),

Northumbria University Newcastle and University of Cumbria.

As a follow up, in early 2015, the partnership commissioned further scoping works,

focused on:

developing a socio-economic baseline of the five constituent local authority

areas to identify key messages and trends;

undertaking an audit of existing regional strengths; and

reviewing the strategic policy environment and identifying cross-cutting

themes, and synergy/alignment across the partner areas.

The Framework builds on these initial research documents and provides the

foundations on which to design a more detailed and robust proposition.


1.2 What is the Borderlands Initiative?

At the highest level, the Initiative will act as a vehicle to leverage funding from the

UK and Scottish Government, and attract investment from the private sector to help

deliver sustainable and inclusive growth and distribute wealth across local

communities. To achieve this, the Initiative will deliver targeted intervention through

two delivery mechanisms.

1. Direct intervention – the Initiative will seek to secure funding and resource to

deliver a range of project activity that will contribute to the strategic and thematic

priorities of the partners.

2. Indirect intervention – to ensure a co-ordinated approach to delivering

economic development across the Borderlands and deliver maximum value from

any investment, the Initiative also plays a vital strategic role – endorsing,

lobbying and supporting the activity and priorities of wider stakeholders that will

complement the direct Borderlands activity. This role will be particularly

important for large scale strategic transport infrastructure projects such as HS2

and the Borders Railway.

As detailed in Section 4, the proposed project activity is therefore a mix of projects

delivered directly via the partnership and wider strategic projects where the Initiative

can support delivery through an advocacy or lobbying role.

1.3 Focus and Key Principles of the Borderlands

Initiative

The focus of the Initiative is to enhance the connectivity and accessibility of the

Borderlands to ‘open up’ and connect the region to centres of commercial

opportunity, which will help to ensure that the impacts will be retained and benefit

local people and local communities.

There are seven key principles that underpin the Borderlands Initiative.

1. The Initiative will support improvements and enhancements to the physical and

digital infrastructure across the region, which will act as the primary mechanism

for prioritising and connecting project activity.


2. Project partners will adopt a ‘strategic hub’ approach when developing

Borderlands project activity – identifying geographic areas where the greatest

level of commercial opportunity exists/ will be generated through the

infrastructure improvements and link/ connect this with project activity.

3. The Initiative will unlock the full potential of the region – administrative

boundaries have historically acted as a barrier for collaboration and constrained

opportunity and activity across the region. Through adopting a co-ordinated

approach between the five partner authorities the Initiative creates an

opportunity for collaboration that reduces competition, maximises impacts and

delivers value for money for the public sector.

4. The Initiative is a long term (20+ year) programme of investment, therefore there

will be ‘quick wins’ and longer term strategic projects.

5. The Initiative has an important lobbying and advocacy role in supporting

complimentary activity delivered by partners and stakeholders – this includes

strategic transport projects e.g. HS2 and Borders Railway.

6. The Initiative will support and deliver project activity that includes both cross-

region initiatives and local area priorities that contribute to the Vision and

Objectives of a stronger and growing Borderlands.

7. To achieve best value, the Initiative will not develop or deliver project activity in

isolation – all project activity will demonstrate strong linkages and connections,

and that activity is embedded and connected within the business/ resident base.

1.4 How will this Framework be used?

This document provides a high level Framework for the Borderlands Initiative and

has four critical roles. First, its development has stimulated discussion between the

partners and provided a shared and agreed understanding of what the Borderlands

Initiative is, including: the vision, the strategic objectives, the strategic and area

priorities and a high level appraisal of potential projects.

Second, it will be used to build wider stakeholder support and further engagement

with the business community, public sector agencies, land/ property owners, and

developers/ investors.


Third, it will be used as part of the ongoing dialogue with the UK and Scottish

Government’s with regards to the development, implementation and resourcing of

the activity that will be delivered through the Borderlands Initiative.

Finally, as the Framework is the ‘starting point’ it establishes a framework within

which partners will develop the detailed Programme and individual project activity,

this includes:

Direct project activity:

o support the implementation and delivery of advanced project

activity that have an established rationale and business case

o support the development of pipeline project activity – projects

which are at an early stage and require further development to

ensure that activity is aligned and can integrate effectively into the

Borderlands Initiative; and

Indirect project activity – the Initiative will have an important advocacy and

lobbying function – supporting wider complimentary activity that will help

deliver sustainable economic growth across the region.

1.5 Structure of the Report

The remainder of the report is structured as follows:

Section 2: The Case for Investment - Challenges, Need, and Opportunity.

Section 3: Borderlands Framework.

Section 4: Borderlands Initiative Project Activity.

Section 5: Delivering a Borderlands Initiative.

Section 6: Next Steps for Borderlands.

In addition, various appendices contain detailed analyses that have supported the

development of the Framework.

Appendix A: Where are we Now? Socio-Economic Baseline Analysis.

Appendix B: Policy Analysis and Rationale for Intervention.

Appendix C: Wider Regional Activity.


Appendix D: SWOT Analysis.

Appendix E: Monitoring and Evaluation Framework.

Appendix F: Business Case Development and Approval Process.

Appendix G: Project Activity – Appraisal.


2. Strategic Rationale – The Case for

Investment

This section provides a summary overview of the challenges and opportunities for

achieving sustainable and inclusive growth in the Borderlands - the Strategic

Rationale for investment.

The assessment is supported by the evidence-base presented within the socio-

economic baseline (Appendix A), assessment of policy priorities and market failure

(Appendix B), review of wider activity and interventions being developed and

delivered across the region (Appendix C), and a SWOT analysis (Appendix D).


Figure 2.1: Growth in GVA, 2010 to 2014

Source: ONS

2.1 The Challenges

Across the Borderlands there are a number of shared constraints and challenges to

achieving economic sustainability and inclusive growth. The evidence shows that

the gap between the Borderlands and the rest of Scotland and England is getting

wider and targeted intervention is needed to support sustainable economic and

social opportunities for the region’s communities.

The key economic and social challenges can be summarised as:

1. Low levels of productivity.

2. Low levels of employment growth and entrepreneurialism.

3. A declining and ageing population.

4. Gaps in educational attainment and skills.

5. Poor transport links and digital connectivity.

2.1.1 Low Levels of Productivity

The GVA output across the

Borderlands region in 2014 was £20

billion per annum, which represents an

increase of +12% since 20101.

This proportionate increase in GVA is

lower than both England, +16% and Scotland, +15%.

Rural areas in Scotland and the North West and East of England have historically

experienced a ‘productivity gap’ with the rest of the UK. If we consider productivity

within the workforce (2014), the average GVA per employee in the Borderlands is

£47,850 – this compares with England, £56,702 and Scotland, £50,692.

The differences in productivity (-6% lower than Scotland and -18% lower than

England) are primarily driven by the sectoral composition of the business base within

the region.

1 Unadjusted GVA figures


The Borderlands is heavily reliant on a number of ‘traditionally rural sectors’: for

example, over one in five businesses is within the agriculture, forestry and fishing

sector.

There is also a comparatively higher proportion of employment within ‘lower value’

sectors – for example within the retail and tourism sectors, which make up one

quarter of the employment base, a high proportion of these jobs are part-time and

seasonal in nature.

Figure 2.2: Split of Full-Time and Part-time Employment, 2014

Source: BRES

The sectoral makeup of the Borderlands economy

also plays an important role in the types of jobs in

the region: for example, there is a lower proportion

of people employed in director/managerial and

professional occupations – occupations that tend

to generate higher salaries.

Across the region the average (full time and

annual) salary/wage in the Borderlands is £23,425.

This is over -£3,500 lower than the Scottish

average, and almost -£5,700 lower than the English

average.2

2 Source: Survey of Personal Incomes.

Figure 2.3: Mean Employment Income, 2013 to 2014

Source: ASHE


Impact in the Borderlands

The lower GVA per employee output is directly linked to the business base sector

make up – higher than average employment in sectors that are considered ‘lower

value’’. This will drive the lower salaries and high proportion of part time and

seasonal working – which, in turn will impact upon the region’s ability to retain and

grow its working age population base (attract new residents) and investment.

2.1.2 Low Levels of Employment Growth and Entrepreneurialism

Employment and business start-ups have grown over the past four years, although

at relatively low rates in comparison with the English and Scottish averages – since

2010 employment in the Borderlands has grown +2% (6,200 more jobs), compared

with England, +5%, and Scotland +5%.

In terms of business base, the Borderlands has experienced growth of 3,500 (+8%)

businesses since 2010, compared with England, +18%, and Scotland +16%. While

the region has achieved strong annual growth in the post-recession landscape – 15

(out of 19) sectors experienced positive growth, it is still around half the

proportionate growth achieved across Scotland and England.

Overall, the economy in the Borderlands has shown resilience on the back of the

recession, however, growth is consistently around half that of comparator areas –

therefore the ‘gap’ with the rest of England and Scotland will be increasing.

Source: BRES and ONS

Figure 2.4: Growth in Employment, 2010 to 2014

Figure 2.5: Growth in Business Base, 2010 to 2014



The comparatively lower growth across the business and employment base will

negatively impact on employment opportunities i.e. there are less jobs available,

which will affect the region’s ability to compete with other areas where there are

greater employment prospects. The knock-on effect is that the Borderlands will

face additional barriers to growing the working age population base (attract new

residents) and investment.

2.1.3 Declining and Ageing Population

Over the last 30 years the total population in the Borderlands has increased by

46,000 people (+4%). However, this growth has been entirely driven by those aged

65+ (increased 75,000, +44%), with the number of children declining by 14,300 (-

7%) and the working age group by 14,400 (-2%). This shift in the demographic

structure and profile of the Borderlands will have a number of negative effects,

including on the availability of labour (smaller labour pool) and greater demand for

public services.

The decline in the number of young people (aged 16 – 24) in the Borderlands has

been sharp, -23%, or c. 32,000 – there have been a number of drivers for this

including: employment opportunities, availability of housing, and access to further/

higher education.

Figure 2.6: % Change in the Borderlands Population, 1986 to 2014

Source: NOMIS population estimates

4%

-7%

-23%

-2%

44%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Total populationchange

Children 16 - 24 year olds Working agepopulation

Over 65s



The declining and ageing population evident across the region will impact upon

the supply of labour i.e. smaller labour pool, and will also have a wider knock-on

effect on the demand for public services, for example, housing and healthcare.

2.1.4 Gaps in Educational Attainment and Skills

Secondary education performance in the Borderlands is broadly in line with Scottish

and English averages: Dumfries and Galloway and Borders have historically

performed slightly better compared to the Scottish average, while Cumbria/ Carlisle

and Northumberland have fluctuated against the English baseline. Across the

Borderlands, 28% of working age residents have a GCE A level or equivalent

qualification – higher than both the Scotland and England averages.

There is, however, a gap when we consider the Higher Education attainment within

the working age population, with one-third (33%) having a Higher Education

qualification, compared with England, 43% and Scotland, 37%.

Figure 2.7: Educational Attainment of the Working Age Population,

2015


Source: NOMIS Annual Population Survey

There are numerous factors driving this, including:

the sector base – rural, service-based and industrial sectors where there are

lower entry levels and a greater focus on ‘on the job’ learning and training –

much of the skills and experience of the workforce will therefore be

‘unqualified’;

the out-migration of young people – young people are leaving the area to

access education and training – with only a small proportion returning upon

completion of their education;

the out-migration of skilled workers – skilled workers and those with higher

level qualifications may be leaving the Borderlands to access employment in

more urban areas where there are generally more opportunities; and

accessibility of mainstream HE and FE in the region is limited with many

providers focused on specialist curriculum e.g. related to agriculture or the

service sector.


The lower levels of working age people with higher level qualifications across the

Borderlands will have a direct impact within the labour market – those with higher


levels of qualification tend to have higher rates of participation and can command

higher salaries. This, in part also helps to explain the low levels of productivity

within the region.

In addition, employers need access to a skilled and qualified labour force – the

current position may be constraining growth and diversification within the business

base, and limiting opportunities to attract new businesses and investment to the

region – availability of skilled labour is a key investment driver.

2.2 Transport and Digital Connectivity

Transport

Road Infrastructure

Across the region, road connectivity is mixed. The M74/ M6 connects Glasgow with

Birmingham along the west of the Borderlands region, and allows easy access to

other major cities in England; however, road infrastructure down both the West

Coast and the East Coast is fairly limited, typically restricted largely to ‘A roads’.

Road connectivity between Cumbria and Northumberland is via the A69 from

Carlisle to Newcastle, the A7 provides partial cover through the area from Carlisle to

Edinburgh, but between Dumfries & Galloway and the Scottish Borders there is no

primary access route. The A75 connects along the southern boundary of D&G while

the A68 is the primary route through the Scottish Borders.

As primary distributor roads connecting areas of opportunity together, and also with

the major settlements, there are clear restrictions with all of these primary transport

corridors, many of which are single carriageways. The major constraints and

potential infrastructure improvement works within the road network are identified as:

A595 Corridor/ West of M6 Strategic Connectivity – improvements to the

A595 – Carlisle to Gosforth to enhance connectivity and capacity both for

private vehicles and freight movement;

A69 – dualling of the road Carlisle to Hexham to help accelerate journey

times and reduce accident rate, improvement works include flood repairs;

A1 – dualling of the road at Morpeth to north of Alnwick with additional dual

stretches to the north of that up to Dunbar in East Lothian; and


A75 – dualling of the road between Stranraer (access to east coast and ferry

to Northern Ireland) and Dumfries (key hub in the Borderlands) and

improving connections with the M74.

Rail Infrastructure

The area is serviced by both the East coast rail line - which runs from London to

Edinburgh via Northumberland and the Scottish Borders, and the West coast rail line

– which runs from London to Glasgow via Cumbria, Carlisle and Dumfries and

Galloway.

There are, however, constraints identified within the local and regional rail network

identified as:

Borders railway – the new service (opened 2015) connects Edinburgh to

Tweedbank/ Galashiels, however there have been calls to consider extending the

line to Carlisle (Scottish Government has “committed” to considering the feasibility of

extending the railway to Carlisle in their 2016 manifesto). This could have a

significant impact within the Borderlands, in particular, improving accessibility to

major centres of commercial opportunity – Edinburgh in the North and Carlisle in the

South.

Cumbrian coastal rail line – long-distance route linking Barrow-in-Furness to

Carlisle via Sellafield, Whitehaven and Workington.

There are numerous infrastructure constraints on the line that affect both passenger

and freight movements, summarised as:

large sections are single track which limits the capacity of the line;

slow line speeds – 15 to 25mph in stretches with no part of the line able to

accommodate speeds exceeding 60mph, for comparison the main coast rail

lines can accommodate speeds of up to 125mph;

signalling is undertaken manually and on ‘Absolute Block’ and ‘Token Block’

basis – this further limits the capacity of the line; and

the route of the line means that it is vulnerable to coastal flooding, erosion

and land slips.


Arriva Rail North Ltd was awarded the Northern rail franchise in April 2016 and is

undertaking discussions with various stakeholders to address these constraints.

Carlisle to Newcastle – constraints on the rail line include journey speeds and the

condition of the passenger fleet. Arriva Rail North has outlined proposals to deliver

281 new carriages, upgrade/refurbish the existing fleet and remove pacer trains –

overall, journey times are estimated to be 12% faster. There are, however, no

defined timescales for these improvement works.

Carlisle Station – Cumbria’s primary strategic rail interchange station that provides

linkages between the West Coast Main Line, North East England, Scottish Borders,

and West Yorkshire. The current station layout and facilities are deemed unsuitable,

summarised as:

limited car parking provision;

conflict of movement to access the station – road access cuts across the

public realm at the station entrance;

the station does not operate as an attractive or functional ‘gateway’ to the

city; and

low quality and small commercial offering within the station.

The Cumbria Local Economic Partnership (LEP), with support from Carlisle City

Council, has submitted a funding bid to Growth Deal 3 to access funding of c. £22m

to support the redevelopment of the station.

South West Scotland rail connectivity – the Nith Valley and Stranraer lines

connect Dumfries and Galloway north to Glasgow via Kilmarnock/ Ayr and south to

Carlisle. The South West of Scotland Transport Partnership (SWestrans) is seeking

electrification of the Nith Valley Line which will help enhance local services and allow

faster rolling stock, and provide important lifeline services to the more rural parts of

the region.

Air Travel Infrastructure

Carlisle Lake District Airport is the only airport in the Borderlands, however, currently

it is primarily used for aviation flying schools and as a maintenance facility. There

are existing proposals to resurface the two runways and introduce routes to Dublin


and Southend – targeting the North American tourist market i.e. marketed/ promoted

as a potential stopover in the Lake District between Dublin and London.

There are three international airports (within c.30 miles radius of Borderlands) –

Newcastle, Edinburgh, and Glasgow Prestwick.


A good quality transport infrastructure network is considered a critical ‘hygiene’

factor for supporting economic prosperity and growth, sustaining communities and

attracting investment.

Connectivity is often an issue for rural areas across the UK – the Borderlands is

largely rural in nature, geographically remote and somewhat isolated from the

areas of greatest commercial opportunity with limited physical access to markets

and services. This geographic distance will impact upon the areas desirability as

a place to live, work, and invest.

Digital Connectivity

Across four of the five partner areas – Dumfries and Galloway, Borders, Cumbria

and Carlisle, less than 30% of residential and non-residential premises have access

to Superfast Broadband (Broadband that supports download speeds of 30Mbit/s),

while only 30% - 50% have access in Northumberland.

The average modem sync speed in the Borderlands is between 8Mbit/s – 10.5Mbit/s,

for comparison the average speed across urban areas in the UK is 21Mbit/s and

18Mbit/s across semi-urban areas.

Figure 2.8: Average Download Speed (Mbit/s)


Source: Ofcom

A recent Ofcom Connected Nations Report (2015) highlighted that “we believe that a

download speed of at least 10Mbit/s is necessary to deliver an acceptable user

experience”3 – the majority of the region therefore does meet this ‘minimum’ sync

speed. The current infrastructure within much of the region is unsuitable to

accommodate Superfast Broadband i.e. copper wiring and the significant distances

between residential/non-residential premises and a live exchange – the speed and

strength of the signal decays the further distance it travels.


The limited Broadband connectivity across the region will impact upon economic,

social and environmental opportunities. For example, slow Broadband speeds

can impact upon business productivity and limit remote working (often important in

rural areas or areas with limited transport connections), access to education/

education attainment, etc.

On the social and environmental side, there is evidence to suggest that faster

Broadband generates wider benefits, for example, increased civic participation,

improved general wellbeing, and reduced business travel (lower CO2 output)4.

3 http://stakeholders.ofcom.org.uk/binaries/research/infrastructure/2015/downloads/Fixed_broadband_services.pdf

4https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/257006/UK_Broadband_Impact_Stu

dy_-_Impact_Report_-_Nov_2013_-_Final.pdf

9.25

18

21

0

5

10

15

20

25

Borderlands UK semi-urbanareas

UK urban areas

http://stakeholders.ofcom.org.uk/binaries/research/infrastructure/2015/downloads/Fixed_broadband_services.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/257006/UK_Broadband_Impact_Study_-_Impact_Report_-_Nov_2013_-_Final.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/257006/UK_Broadband_Impact_Study_-_Impact_Report_-_Nov_2013_-_Final.pdf


2.3 The Opportunity

The Borderlands Initiative is a strategically led, long-term programme of activity that

is based on identified and evidenced challenges, and an opportunity to deliver

sustainable and transformational change across the region.

The Initiative will help partners realise an opportunity to:

1. Deliver sustainable and inclusive economic growth for local people and

businesses.

2. Deliver a significant contribution to regional and national policy objectives and

priorities.

3. Exploit and capitalise on the natural, physical and people assets of the region.

4. Unlock the full potential of the region through an innovative approach to cross-

border partnership that recognises the Borderlands as a functional economic

geography to create synergy and economies of scale through enhanced

collaboration.

5. Link in with, enhance and support economic development activity across wider

stakeholder agencies.

6. Sustain, and attract new commercial activity to the region.

2.3.1 Borderlands Initiative Contribution to Policy

The Initiative represents a unique opportunity to bring together five local authority

partners across a region facing shared challenges and barriers to achieving

sustainable and inclusive economic growth. As a result, the partners have

developed significant synergy within their policy responses and there is now an

opportunity to bring resources and activity together to deliver interventions that will

deliver economies of scale across these policy priorities.

Below we provide a review of the Initiative’s fit with, and contribution to both regional

and national policy priorities.


Fit with Regional Policy

Figure 2.9, over, gives a summary of the shared regional challenges and policy

priorities – identifying the significant thematic areas of synergy that already exist

across partners, with Table 2.1 providing a summary of how the Initiative will

contribute to these priorities.

Through a collaborative approach, the Borderlands Initiative presents an opportunity

to build on this and deliver against these policy priorities on a substantial scale.


Figure 2.9: Borderlands Regional Challenges and Policy Priorities


Table 2.1: Borderlands Strategic Fit and Contribution to Policy Priorities

Policy Priority Strategic Fit and Contribution

Strengthening the business base and increase levels of business start-ups and entrepreneurism

Creating a supportive business environment will be key to the success of the Borderlands, in order to encourage investment (domestic and foreign), attract new, and retain current businesses.

The Initiative will support the business base through investing in sites and infrastructure, and linking-up with existing enterprise initiatives to support local people to access the labour market.

Growing the key sectors across the region

Activity delivered through the Initiative will help create the ‘right’ economic conditions to grow the key sectors, whether that is through infrastructure/ site development, improving transport and digital connectivity, promoting the region to investors or developing the skills base.

Improving the transport and digital infrastructure – enhance connectivity across the region

Developing the transport and digital infrastructure across the Borderlands will contribute towards sustainable economic growth in the wider region. Improving transport links will improve connectivity, reduce costs and reduce distances to markets and commercial centres of opportunity (both physical distances and through improved digital connectivity).

The Initiative will have both a direct and advocacy role in delivering new infrastructure across the region to enhance competitiveness, and will be a key driver for attracting new investment to the region.

Improving the skills base within the workforce

Learning and skills are key issues both for Borderlands partners and local industry sectors alike. Access to a significant pool of skilled labour to supply businesses will be crucial for the success of the Borderlands – in particular, for growing and diversifying the economic base.

The Initiative will contribute to this through developing stronger formal and informal links with the wider FE/HE sectors and supply chain, to ensure the supply meets the demand in terms of skills and experience requirements.

Target specific opportunities and places

The Initiative will build on the assets of the region to help develop the ‘branding’ of the Borderlands as a place for both people (to live, to work and to visit) and for businesses (to operate from and to invest within).

Fit with National Policy

Within the existing Scottish Government Economic Strategy and as announced in

the Prime Ministers address to the Conservative Party membership as part of the

national campaign, there is growing policy focus at the national level on the

redistribution of both wealth and opportunity – inclusive growth.


As evidenced above, the ‘gap’ between the Borderlands and the rest of the UK is

growing and without intervention there is a risk that the region gets left behind. The

Initiative is not simply about leveraging additional funding from the public and private

sectors, and partners recognise the vital role the Initiative can play in promoting

access to opportunity and distributing wealth across the residents, businesses and

communities in the Borderlands.

The Initiative will have a focus on developing and delivering project activity that will

have the greatest impact within the region; including, connecting the region to the

larger centres of commercial opportunity, improving digital access, making sure we

have the right housing, education and employment opportunities to retain our young

people, and promoting the Borderlands as a great place to live, work and invest.

Appendix B provides a further review of the Initiatives’ strategic fit with, and

contribution to regional and national policy.

2.3.2 Our Assets

The Borderlands Initiative is not just about addressing the policy challenges across

the region – in order to deliver economic sustainability and growth, a key priority for

the Initiative is to identify and capitalise on the strengths, assets and

opportunities in the Borderlands. This includes:

Borders Railway

East and West Coast main

lines

M6/M74/A74

Improved Connectivity

Locational Assets

Good quality natural

environment

Attractive built heritage

Cultural and historic heritage

Dark sky observatories

Energy

Tourism

Food and drink

Rural economy

Sector Opportunity


Improved connectivity – The Borders Railway provides a direct connection

between Edinburgh and Galashiels/ Tweedbank and six months after opening,

passenger numbers have already surpassed the original forecasts by 22% (c.

700,000 total passenger journeys). In the recent Scottish Government manifesto

(2016) there was a “commitment” to consider the feasibility of extending the railway

to Carlisle. Further, the East and West Coast main lines pass through the region,

connecting Scotland with the North West, North East and London.

Although a longer term strategic project, there are aspirations for HS2 to extend past

the current proposed stage route two at Manchester up through the Northwest to

Glasgow – this would effectively service the entire west and central Borderlands

area with potential to generate economic and social impact of significant scale.

Similarly, by road, connectivity north-south is good in areas, with the M74/ M6/ A74

connecting Glasgow with the North West and Birmingham and allowing for access to

London; and on the east side the A1/ A68 connecting through Newcastle and the

centre of England to London.

The Initiative has a focus on supporting major transport and digital infrastructure

proposals which will connect strategic hubs across each of the Strategic Corridors

(further detail on the Strategic Corridors is provided in Section 3.5) – identifying key

areas/ destinations of commercial activity and opportunity. Through a focus on

enhancing/ improving physical and digital connections the Initiative will open up

these ‘strategic hubs’ to new investment. The Initiative is more than just an

infrastructure project and seeks to use the enhanced accessibility of the region to

connect and link project activity.

Locational Assets – the Borderlands has a number of locational assets including:

Good quality natural environment including the coastal and market towns and

greenspaces such as the Lake District and Northumberland National Parks,

Galloway and Kielder Forest Parks, and North Pennines, Solway Coast and

Northumberland Coast Areas of Natural Beauty. These assets are important ‘pull

factors’ in attracting people to the area – both residents and visitors.

The Borderlands also has an attractive built heritage – Carlisle is the main centre but

there are a number of large towns including Galashiels, Dumfries, Blyth and Kendal.


Settlements across the area include both modern and historic towns, coastal and

inland towns, heritage and industrial towns, commuter and visitor towns. The area

also has a rich cultural and historic heritage, including Carlisle Castle and Cathedral,

Hadrian’s Wall, Alnwick/ Bamburgh Castles, Dumfries Museum, Drumlanrig Castle,

and Melrose/ Kelso Abbeys.

Dark Sky Observatories – there are only three such facilities on the British mainland

with two located in the Borderlands, one in Galloway Forest Park, and the other at

Kielder Forest Park.

There are also proposals to develop the Kielder Observatory Astronomy Village –

which would house the largest observatory in the world. These facilities are

important both as tourism and educational attractions.

Sector Opportunities – the Borderlands has strengths and opportunities to

develop the key sectors including:

Rural economy – the extent of the wider and longer term impact of Brexit on the rural

economy will not be known until the UK has agreed the terms and conditions of its

exit from the European Union. At present, the rural economy benefits from

significant European funding and support, for example the Rural Development

Programme, Common Agricultural Policy, LEADER, etc.

Through the Borderlands Initiative there is an opportunity to develop a new

demonstrator model of funding and support for a thriving rural economy in a post-

Brexit landscape.

Tourism – as outlined above, the quality and number of natural and built assets

within the Borderlands help to make the area a prominent tourism destination within

the UK – tourism accounts for c. 10% of employment within the Borderlands. The

Lake District alone attracts 16.4 million visitors who spend c. £1,146m per annum.

There are already some initiatives in place to ensure the Borderlands can maximise

opportunities arising through tourism. For example, the Borders Food Network

brings local providers together to showcase the high quality produce available

across the Borders. The Network also helps form connections with local

accommodation providers and publishes food and drink trails to help develop

linkages across the region’s supply chain.


Energy – there is significant activity across the southwest of the Borderlands region

within the nuclear energy sector (including decommissioning). The decommissioning

of the nuclear power station at Sellafield started in 2011 and is expected to take

some 15-20 years at a total cost of £0.5 billion – this is expected to create significant

(albeit temporary) jobs both directly in the decommissioning process and through

supply chain spend.

Further to the closure of Sellafield, in 2011 it was announced that a new generation

of nuclear power station (3.8 GW gross capacity) had received outline consent (UK

Government National Policy Statement) at a location just north of Sellafield in west

Cumbria – Moorside nuclear power station. The operator NuGen (a joint venture

between Toshiba and ENGIE) is preparing plans for developing the site to be

submitted for consideration by the relevant planning authorities. The expected date

of commissioning for the new power station is 2024, at an estimated cost c. £10

billion and will support 21,000 jobs.

There are also opportunities for the Borderlands within the renewable energy sector.

The area is home to a number of both on and off-shore wind farms (e.g. Robin Rigg

in the Solway Firth, Barrow, etc.) and there are early stage proposals for

development of carbon capture and storage facilities at the former Chapelcross site.

Food and Drink – is a key sector sector across the region, both as part of the tourism

offering but also as a driver of exports and international trade, with several

international brands being located in Carlisle. While there are no regional figures,

available, total exports from the Scottish Food & Drink sector have grown by 62% (c.

£3.75 billion) since 2004 and stand at £9.8 billion in 2014, accounting for 12.9% of

Scotland’s total exports5. In Dumfries and Galloway there are 9,700 jobs in the

sector.

The individual authorities that make up the Borderlands have a strong branding

around food and drink and host various festivals and events that focus on promoting

local produce. For example, Taste Cumbria, D&G Year of Food and Drink (2015),

Scottish Borders Food Network, and Taste of Northumberland, to name a few.

5 Scotland's Economic Strategy - Growth Sector Statistics Database, available online. Table 5.1 and 5.2.

http://www.gov.scot/Topics/Statistics/Browse/Business/Publications/GrowthSectors/Database


Primary industry – the area has a strong and diverse rural base with strengths in

forestry and agriculture. Forestry in particular is identified as a key sector across

partners in terms of timber production, as a source of low carbon energy through

biomass developments, and as a key tourism asset).

There are 5,000 jobs directly supported by forestry in the Borderlands, with many

more supply chain jobs supported – particularly important within the more fragile

rural areas.

Kielder forest is one of the largest managed forests in Europe (c. 60,000 hectares)

and the South of Scotland contains 25% of all of Scotland’s forest resources (forest

and woodland account for almost one third of all land area in Dumfries and

Galloway. The region therefore has significant resources with potential to develop

the sector.In addition the urban area of Carlisle benefits from advanced

manufacturing as a key industry.

Case for an Innovative Cross Border Approach

Across the Borderlands there is no over-arching body or organisation to co-ordinate

policy or integrate activity. The border and administrative boundaries have

historically constrained the development of a ‘functional economy’ – for example,

Cumbria, Carlisle, and Northumberland looking at opportunities to the larger urban

centres in the South and Dumfries and Galloway and Borders collaborating through

initiatives such as the South of Scotland Alliance. As a result there is an

underdeveloped resource and opportunity across the region.

Through strengthening the cross-border partnerships and developing an

innovative approach to delivery that focuses on the synergy, shared aspirations and

policy priorities, the Borderlands Initiative will generate Strategic Added Value and

economies of scale through:

leveraging greater levels of private and public sector resources for large

scale cross authority project activity;

investing in infrastructure now to create a more sustainable region in the

future;

purchasing of services, goods and supplies – efficiency savings;


sharing resources and expertise – shared economic heritage across the

Borderlands;

local accountability – greater autonomy for delivering activity that will impact

the local area;

greater levels of influence – collaborative approach will help secure the

support and input from other stakeholders/partners (e.g. funding or resource

input into the Initiative), but also allow the partners to influence other public

and private sector partner’s activities;

providing the partner authorities with a greater advocacy role across the

region;

enhanced additionality and reduced competition/displacement (for resource

funding and investment/development activity) through a co-ordinated

strategic approach;

attracting higher levels of funding, and from multiple sources; and

developing a stronger identity and investment proposition.

This wider regional collaborative approach comes off the back of numerous City

Deal and Regional Growth models that have been successfully implemented across

the UK. There is therefore a strong case for collaboration via the Borderlands

Initiative to deliver best value for scarce public sector resources.

2.3.3 Linking the Borderlands to Wider Opportunity

The Initiative recognises the important strategic role it has to play in supporting

and co-ordinating wider regional activity. Projects delivered through the

Borderlands Initiative will complement and enhance activities of other public sector

partners and delivery bodies, either through directly supporting delivery (for example

providing funding or resource input) or through an advocacy role (for example,

lobbying and promotion).

The Initiative will not compete with or duplicate partners’ activities – this is reflected

in the strategic approach to developing project activity.


For example, there are a range of interventions focused on economic development,

planning and transport that are already/are planned to be delivered across the

Borderlands:

Edinburgh and South East Scotland City Regional Deal – Regional

Growth Model for leveraging additional public and private sector investment

to drive economic growth with a focus on in infrastructure, skills and

innovation;

North East and Cumbria6 Devolution Agreements – emerged from the

Cities and Local Government Devolution Act, 2016. The devolution deals

include the transfer of powers over transport, strategic planning,

employment and skills from central government to a new mayor and a

combined authority board;

The North East and Cumbria Growth Deals – delivered locally by the

LEPS with a focus on developing interventions across skills, infrastructure

and housing; and

The Northern Powerhouse – co-ordinated transport strategy/ initiative for

the North of England that will focus on developing and enhancing

connectivity between the Northern city regions and the areas of greatest

commercial opportunity.

Key Action: It is recommended that partners engage with wider delivery bodies and

stakeholders to keep them informed, and allow an opportunity to feed into and shape

the project proposals to ensure strategic cohesion.

Further detail on the wider activity that is currently, or is proposed to be delivered

across the Borderlands is presented in Appendix C.

6 Please note, as of July 2016 the Cumbria Devolution Agreement had not been agreed between local authority

partners and Government.


2.3.4 Commercial Opportunity

Through improving/ enhancing the physical and digital connectivity across the region

as a driver for new activity, we expect the Borderlands Initiative to contribute

towards generating a number of benefits and impacts within the region,

including:

increasing the GVA output and levels of productivity;

creating and safeguarding jobs with a focus on ‘higher vale’ jobs;

increasing salaries;

supporting a vibrant and sustainable demographic base across the region;

enhancing the attractiveness and competitiveness of the region – attracting

new investment, businesses and visitors;

supporting the development of a skilled and qualified workforce that meets

the demands of the labour market; and

developing the identity of the Borderlands.


3. The Borderlands Framework

The Borderlands Initiative is a mechanism/ vehicle for leveraging additional public

and private sector investment and resources to drive sustainable and inclusive

growth in the region. It is a long term partnership that is seeking to deliver

transformative change across the region – we therefore recommend a 20 year

Borderlands Programme period, in line with the approach adopted by other City Deal

and Growth Deal initiatives.

The Initiative aims to secure additional investment from the UK and Scottish

Governments, which will support the delivery of project activity and attract/leverage

additional investment from the private sector.

The approach to setting the Borderlands Framework is provided below.

3.1 Vision

Vision: The Borderlands Inclusive Growth Initiative will deliver sustainable and

inclusive economic growth and redistribute economic and social opportunity across

local communities. Our innovative and collaborative approach will support the

transformation of the predominantly rural-based economy and allow us to unlock the

full potential of the region. We will achieve this by improving physical infrastructure

and connectivity, delivering place-based regeneration, supporting growth sectors,

and building skills.


3.2 Strategic Objectives

The over-arching strategic objectives of the Borderlands Initiative are to:

1. Support regional economic development priorities to ensure the

opportunities for economic growth and prosperity across the Borderlands are

maximised.

2. Invest in infrastructure to improve accessibility and connectivity within the

region, and beyond to major centres of commercial opportunity.

3. Attract additional private sector investment to the Borderlands.

4. Grow the resident population with a focus on retaining and attracting young

and working age professionals.

5. Promote and take advantage of the regions natural environment and

resources.

3.3 Thematic Priorities

The Initiative will deliver against these strategic objectives by focusing activity and

resources against four core strategic priorities:

Transport and Connectivity: improving the road, rail, and air connections and

enhance digital connectivity into and across the region. This will enhance the

movement of both people and ‘goods’ within and beyond the region. The focus of

this priority is about creating opportunity through improving the accessibility and

connectivity of the region.

Place Development and Regeneration: focus on regenerating brownfield land

and sites, supporting and incentivising property investment and development

(residential, commercial, leisure, retail, housing), and creating sustainable and

vibrant towns. Regeneration is more than just development – the aim is to create

successful and sustainable places that drive economic and social change. Places

need to be attractive for both people (to live, to work and to visit) and for businesses

(to operate from and to invest within).


Key Sectors and Skills: Priority will be given to sectors of regional strength

(tourism, rural enterprise and food and drink) and those that provide an opportunity

for sector diversification and delivering ‘high value’ jobs (energy – nuclear and

renewables, and advanced manufacturing).

In addition, this priority is about building capacity by promoting access – ensuring the

key sector businesses have access to a workforce with the right skills and training to

meet the demands of industry, and promoting lifelong learning by ensuring access to

good quality Higher and Further Education and skills training.

Investment in infrastructure and place development/regeneration will help promote

the Borderlands as a place to invest and work – this will support the existing

business community and support in-migration of new companies and sectors.

Promotion: as a new initiative there is a need to develop an identity and brand for

the region, based on its strengths as a good quality place to live, the natural

environment and opportunities for economic growth – ‘why Borderlands?’


Figure 3.1: Borderlands Framework for Delivering Inclusive Economic Growth

Vision

Thematic Priorities

Strategic Objectives

Strategic Corridors


3.4 Spatial Area Priorities

The Borderlands covers a large and diverse geographic area, therefore, activity has

been compartmentalised based on five Strategic Corridor locations, see Figure 3.2

over.

The Strategic Corridor approach reflects the aspirations for cross regional

collaboration based on the existing physical and infrastructure connections.

Transport and connectivity will play a pivotal function in linking the opportunities

created, and informing the project activity to be delivered through the Initiative.


Figure 3.2: Borderlands Strategic Corridors


4. The Borderlands Initiative – Priority

Project Activity

The initial call for projects identified 16 priorities that could be delivered or supported

via the Initiative – as the focus of the Initiative is opening up the Borderlands to

geographic areas of commercial opportunity, there is strong focus on enhancing and

improving the transport connectivity within the region. Based on the evidence

presented in Chapters 2 and 3, this has been supplemented by a review of ‘project

development opportunities’ – complimentary activity that could add value to the

Borderlands proposition.

Please note that the initial shortlisted projects are at varying stages of development

with some having a completed Outline Business Case and (part) funding in place,

while others are at the very early scoping and design stage. As a result, there are

some significant gaps in both the evidence base and the project detail (for example;

costs, sources of funding, potential impacts/benefits, delivery partners, etc).

Therefore (as highlighted in Section 5.2), there is a need for partners to commit

resources to support the further scoping, design and development of project activity.

Project activity is presented against the four Borderland Initiative themes, and a

more detailed appraisal (where project detail allows) of individual project activity is

presented at Appendix G.

4.1 Transport and Connectivity

Overview

Improving transport and connectivity across the region is the foundation for

developing the Borderlands Initiative. Under this priority there is a broad mix of

proposed project activity, focused on improving the physical connectivity within the

region – road, rail, and air travel. The shortlisted projects for consideration are

presented in Table 4.1.


Table 4.1: Transport and Connectivity – Proposed Projects

Project Title Overview of Project Lead Local Authority

Lead/ Key Delivery Partners

Timescales for Delivery

Carlisle Lake District Airport Enhancements

Improvements to the runway to allow for commercial and freight logistics flights (new industrial units for warehousing have recently been completed next to the airport), and Route Development Activity to link Carlisle with Dublin and Southend.

Cumbria County Council / Carlisle City Council

Stobart Group 0-5 years

A595 Corridor Enhancements/ West of M6 Strategic Connectivity

Improve connectivity between Carlisle to Gosforth and enhance capacity both for private vehicles and freight movement. This will improve access to current and planned activity – Moorside.


Highways England 5-10 years

Dualling of the A69 Improvements to the A69 from Carlisle to Hexham, including dualling of the road and flood repairs.

Cumbria County Council / Carlisle City Council / Northumberland County Council

Highways England 5-10 years

Upgrading of rail services between Carlisle and Newcastle

Upgraded rolling stock and quicker services – part of Arriva Rail North’s bid for the Northern Rail Franchise, £1bn programme of investment across the franchise (10 year contract 2015 - 2025). Proposals include: introduction of 281 new carriages, refurbishment of remaining fleet and removal of all Pacer trains by 2019 (Pacer trains currently operate on the Carlisle-Newcastle line); and up to 12% faster services between Carlisle and Newcastle.


Arriva Rail North 0-10 years

Upgrading of rail services on the west Cumbrian rail route from Carlisle

Proposed work includes line speed improvements, infrastructure improvements, changes to signalling, station upgrades and access improvements. These will provide increased capacity, usage and resilience needed to support new investments in the west of the county.


Network Rail 0-10 years

Dualling of A1 Dualling of the A1 from Morpeth to north of Alnwick with additional dual stretches to the north of that within Scottish Borders between Berwick and Dunbar, East Lothian.

Northumberland County Council / Scottish Borders Council

Highways England / Transport Scotland

5-10 years, proposed start date 2018 - 2020

East Coast Main Line Improvements

Continued improvements to East Coast Main Line and future high speed train developments from North of England to Scotland (HS2).

Northumberland County Council Network Rail 10+ years


Tyne Valley Rail Line Proposed improvements include new pacer trains, full electrification of the line and a new station at Gilsland.

Northumberland County Council Network Rail 0-10 years

Borders/ Waverley Railway Extension

Extension of the Borders Railway from Tweedbank/ Galashiels to Hawick and Carlisle.

Scottish Borders Council Transport Scotland / Scottish Government

Pre-proposal stage

Programme of railway station reopening

Reopening and development of strategically important rail stations across the Borderlands.

All local authority partners Transport Scotland / Network Rail / Franchise Operators

0-10 years

Borderlands Tourist Trail Improved signage and public transport access to develop the region’s accessibility and encourage tourists and visitors to visit the key attractions in the area.

All local authority partners All local authority partners

0 – 5 years

West Coast Mainline improvement

Capacity improvements to West Coast Main Line and future high speed train developments from North of England to Scotland (HS2).

Cumbria County Council / Dumfries and Galloway Council / SWESTRANS

Network Rail / franchise operators

10-20 years

Carlisle Southern Link Road New link road connection J42 of M6 to A595 to open new development land and improve strategic connectivity.


Cumbria County Council

0-5 years

A75 Road Improvements Further upgrade and duelling of the A75 Euro route to support trade routes to Europe and Ireland, economic growth and the resilience of rural areas of the region.

Dumfries and Galloway Council / SWESTRANS

Transport Scotland / Scottish Government

0-5 years

Dumfries to M74 Fast Link Road Creation of a new link road between Dumfries and the M74 (Lockerbie Area) to support sustainability and growth of the business base, inward investment and tourism.

Dumfries and Galloway Council / SWESTRANS

Transport Scotland / Scottish Government

0-5 years

Digital Improvement Scheme/ Hyperfast Broadband

Project partners, working collaboratively with Broadband Delivery UK (BDUK), network and infrastructure providers should consider the development of a pan-Borderlands Digital improvement scheme that will deliver both Superfast/ Hyperfast/ satellite Broadband and greater 4G coverage. This can either be a new scheme or link into and connect with existing initiatives such as Better Rural Broadband that is rolled out in Dumfries and Galloway and Borders.

All local authority partners UK Government / Scottish Government / Broadband UK / national service providers

0-10 years

Borderlands Visitor Travel Pass To support and encourage tourism there is potential to develop an integrated travel pass that allows visitors to make use of mixed modes of public transport to access the region and major tourism attractions, e.g. Hadrian’s wall and the Lake District.

All local authority partners VistScotland / VisitEngland

0-5 years


Timescales

The proposed projects are at very different stages of development with some at an

advanced stage – the Carlisle Airport enhancement project has been granted

planning permission and is awaiting a funding decision, while others are very much

aspirational – the Borders Railway extension to Carlisle (the Scottish Government

announced a pledge in its 2016 Manifesto to undertake a study to examine the

feasibility of extending the line to Carlisle) and the HS2 extension to Glasgow via the

North West.

Delivery Organisations

It should be noted that as these projects are all transport infrastructure related, the

Borderlands partners will therefore not be the lead organisation for implementation

and delivery for the majority of projects – that remit will fall within the various

transport authorities, for example, Highways England, Transport Scotland, Network

Rail, etc.

It is therefore crucial that strong partnerships are developed at the outset between

the Borderlands partners and stakeholder organisations to agree the role that the

Initiative can play in supporting the delivery of these projects.

4.2 Place Development and Regeneration

Overview

Place making and regeneration is much more than simply enhancing and improving

the physical environment, it is about creating sustainable communities, places that

people want to live, work, and socialise. This includes providing access to good

quality (mixed tenure) housing, employment opportunities, retail and leisure

provision, public services, a sustainable transport network and greenspaces.


The place development and regeneration projects are focused on three main

priorities:

the reclamation and development of brownfield land/ sites, particularly along

the identified spatial corridors and as opened up by the infrastructure project

proposals – the redevelopment of these sites should focus on supporting

key regional growth sectors – energy and tourism;

town regeneration schemes which could provide funding for a range of

capital works including: renovation of buildings, cosmetic improvements to

street frontages and walkways and public realm works – these should be

priorities on key growth nodes and linked to wider place-making e.g. local

delivery of events/ activities, place promotion and business support; and

‘gateway’ projects that will enhance both visitors and residents experience/

enjoyment of the physical environment – these could include public art at

key nodes, attraction of major leisure/tourism operators, and improvements

to major transport/ access nodes.

The shortlisted project activity for consideration are presented in Table 4.2.


Table 4.2: Place Development and Regeneration – Proposed Projects

Project Title Overview of Project Lead Local Authority

Lead/ Key Delivery Partners


Chapelcross Redevelopment

Land reclamation and development – potential opportunity for carbon capture and storage facility at the former Chapelcross Nuclear Power Station site along with employment land for keys sectors and inward investment.

Dumfries & Galloway Council Dumfries & Galloway Council / Nuclear Decommissioning Authority / Scottish Enterprise

0-10 years

East Riggs MOD site Land reclamation and development – East Riggs is a former MoD that is surplus to requirement. There are no firm proposals for the site, however, potential developments include a holiday park/destination development.

Dumfries & Galloway Council Dumfries & Galloway Council and private sector

10+ years

Star of Caledonia Public art landmark and tourism attraction situated on the Border of Scotland and England off the M6/A74 at Gretna Green.

Dumfries & Galloway Council Wide Open and Dumfries & Galloway Council

5-10 years

Borderlands Town Regeneration Fund

Regeneration schemes across the main hubs/ towns (similar in scope to the SG Town Centre Regeneration Scheme) – no details available.

All local authority partners Individual authorities are responsible for delivery within their own region

0-10 years

Carlisle Station Gateway Redevelopment

Train station redevelopment and gateway improvements – the current station layout and facilities are deemed unsuitable, summarised as: limited car parking provision; conflict of movement to access the station – road access cuts across the public realm at the station entrance; the station does not operate as an attractive or functional ‘gateway’ to the city; and low quality and small commercial offering within the station.

Carlisle City Council/Cumbria County Council/Cumbria LEP

Cumbria County Council / Carlisle City Council / Network Rail

0-5 years


Border Uplands Demonstrator

Environmental project focused on supporting threatened habitats such as blanket bog or hay meadows, and species such the freshwater pearl mussel. The scheme aims to improve environmental networks by joining up fragmented patches of five key habitats of the North Tyne, Redesdale and Coquetdale uplands.

Northumbria County Council Northumberland National Park Authority / Northumbria County Council (wide support of stakeholders/ partners)

0-5 years

Carlisle South An application for Garden City status has been suvbmitted to the Government to create a major mixed use development to the south of Carlisle. This is identified within the Carlisle District Local Plan 2015-2030

Carlisle City Council/Cumbria County Council

Carlisle City Council/Cumbria County Council/Cumbria LEP/ private sector

0-20 years

Agri Village (Canonbie) Development of a centre of excellence for sustainable food production using land assets and renewable energy to create growth and added value through co investment in two key sectors for the region.

Dumfries & Galloway Council Dumfries & Galloway Council and private sector

0-5 years

Community Growth Areas In order to deliver wider place-making objectives, additional project activity should be developed that delivers mixed tenure housing, community facilities, greenspace, and public amenities via a ‘Community Growth Area’ approach. The Community Growth areas should be linked to the Borderlands town regeneration project activity

All local authority partners Private sector housing developers / social landlords

0-20 years

Simplified Planning Zones / Enterprise Zones

In order to stimulate private sector activity, partners should develop new and innovative activity and make use of initiatives such as the Simplified Planning Zone (SPZ) and Enterprise Zone (EZ), and other flexible zoning mechanisms for supporting commercial, leisure and residential development opportunities. Granting planning permission, developing site masterplans in advance, and offering financial tax or Business Rates incentives will help remove some of the barriers and risks for the private sector and encourage development activity.

All local authority partners Private sector housing developers / social landlords

0-10 years

Developer and Investor Prospectus

Partners should look to create a ‘developer prospectus’ – website, brochure and other marketing materials that provide details on the key available sites, land and development opportunities within the Borderlands to take to the market.

This should focus on the strategic hubs as the basis for identifying areas of commercial opportunity, using the proposed improvements/enhancements to the transport and digital infrastructure

All local authority partners NA 0-5 years


as the USP.

Heritage Investment Programme

One of the key assets in the Borderlands is the numerous heritage attractions – Hadrian’s Wall, Lindisfarne, Border’s Abbeys Way, etc. The partners should assess the opportunity to partner with external agencies such as Heritage Lottery and the national/regional tourism boards – both for the preservation and promotion of these regional assets and attractions.

All local authority partners Heritage Lottery Fund / regional tourism boards / National Trust / English Heritage / Scottish National Heritage, etc

0-5 years


Timescales

Again, these project are all at different stages, with the Carlisle railway

improvements at an advanced stage (developed the OBC and submitted a funding

bid via the Cumbria LEP Growth Deal – funding round three, July 2016), while the

land reclamation and town regeneration schemes are at the initial scoping stages.


The delivery of project activity would fall under the remit of the local authority

partners, enterprise agencies (SE and LEPs) and wider stakeholders, including

private sector investors and developers.

4.3 Key Sectors and Skills

Overview

This priority is about ensuring the right conditions for growing the key sectors in the

region (skills base, training, market opportunities, etc). One of the key sector projects

is the ‘Rural Economy Demonstrator Programme’ which will consider opportunities to

establish a new dedicated and bespoke enterprise support network to deliver

sustainability and prosperity within the rural economy.

There is a strong link between delivering project activity under thematic priority 1

(Transport and Connectivity) and priority 2 (Place Development and Regeneration)

and supporting the growth of the key sectors, examples include:

redevelopment of the Chapelcross site to support the development of carbon

capture and storage facility (energy sector);

upgrading of rail services on the west Cumbrian rail route from Carlisle – this

will support the decommissioning activity and development of Moorside

Nuclear Power Station (energy sector) through improving access to the

labour market and improving the movement of goods and materials; and

the wider transport infrastructure enhancement/improvement activity will

make the Borderlands more accessible for leisure and business tourism.

The shortlisted project activity for consideration are presented in Table 4.3.


Table 4.3: Key Sectors and Skills – Proposed Projects

Project Title Overview of Project Lead Local Authority Lead/ Key Delivery Partners


Rural Economy – Demonstrator Programme

The more traditional rural sectors will continue to play a significant role in the future development of the region. While the impact and consequences of Brexit will not be fully articulated or understood for a number of years, it is apparent that rural sectors such as agriculture and forestry which benefited through European funding (e.g. Rural Development Programme) will likely experience some negative effects.

Working in partnership with the Department for Environment, Food and Rural Affairs (DEFRA) and the Scottish Government, the partners should consider the opportunity to establish a new dedicated and bespoke enterprise support network to deliver sustainability and prosperity within the rural economy.

All local authority partners

DEFRA / Scottish Government 0-5 years

Centre of Excellence/ Innovation Centres:

Working in collaboration with HE/FE and industry partners, the Borderlands partners should explore opportunities to develop a Centre of Excellence, Innovation Centre or similar activity. Potential areas of activity should be linked to the key sectors and could include:

energy – opportunities related to Moorside and the development of Chapelcross for carbon capture. The UK National College for Nuclear’ will be established in Cumbria at Lakes College, Lillyhall;

science and technology – building on the emerging proposals at Kielder Observatory (significant bid included in North East Growth Fund 3) and the other ‘dark sky’ assets in the region. There is potential to develop activity around astronomy;

food and drink – strong base in the region and represents an opportunity to drive exporting activity and bring in ‘new money’ to the region;

hospitality and tourism – the region attracts significant numbers of visitors every year and tourism is a key employer; and

rural demonstrator – demonstrator of good practice in upland cultural landscape management and rural development.


HE and FE Institutions / Scottish Funding Council / Higher Education Funding Council in England / Enterprise Agencies / LEPs

5-10 years


Digital training scheme Alongside improving the digital and Broadband connectivity, it will be important to build capacity and skills within the business base and local people to enable them to exploit the opportunities to innovate that infrastructure improvements will offer.

It is therefore suggested that partners consider the provision of a pan-Borderlands digital training scheme that engages directly with businesses, particularly those in the service and hospitality sectors, and through HE/FE and schools.


HE and FE institutions / local schools / Enterprise Agencies / private sector providers, Skills Development Scotland / Department for Business, Energy & Industrial Strategy / Skills Funding Agency

0-10 years

Key Sector Networks Support the establishment of key sector networks that bring together industry, academia and public sector to share knowledge, information, identify key issues and opportunities impacting the sector and act as a conduit for lobbying policy makers. Note that there will already be active sector engagement initiatives and networks established across the individual authorises and the focus will include both developing new networks and bringing these existing networks together. Suggested sector/ thematic networks include: energy, tourism, rural economy, and digital.


Enterprise Agencies / HE and FE institutions / industry bodies

0-5 years

Supplier Development Programme

Unify and connect the Supplier Development Programme to the English authorities to ensure businesses are procurement ready and are made aware of the supply chain opportunities within the key sectors.


Supplier Development Programme

0-5 years

Key sector skills and training provision

Identify and address the skills challenges shortages within the key sectors. Energy and tourism are the priority sectors in the Borderlands and partners should engage and work with FE/HE to develop and deliver targeted and dedicated qualification accreditations and training where there is an identified need and demand, for example opportunities arising through the Moorside Nuclear Power Station with the creation of 21,000 jobs.


HE and FE institutions / local schools / Enterprise Agencies / private sector providers, Skills Development Scotland / Department for Business, Energy & Industrial Strategy / Skills Funding Agency

0-5 years

Enterprise support: There is an opportunity to commit additional funding and resources via existing networks such as the Business Gateway (Growth Advisory and Pipeline), Scottish Enterprise (Account Management), Rural Growth Network and the Growth Hubs delivered via the LEPs.


Enterprise agencies / private sector providers

0-5 years


Timescales

The proposed project activity under the Key Sectors and Skills priority is at an early

stage and partners should work together with stakeholders to develop a regional

Borderlands approach to delivery.


The partner local authorities will be responsible for driving activity under this priority,

however, in many cases, stakeholders will be responsible for delivering and leading

project activity – this ranges from HE and FE providers to enterprise and skills

agencies, to private sector providers.

4.4 Area Promotion

Overview

The Borderlands is a new concept, therefore there is an opportunity for partners to

undertake branding, marketing and promotion that will raise the profile of, and attract

attention to, the region.

Borderlands branding campaign: the partners should develop a region-wide

marketing and branding campaign for the Borderlands that places emphasis on the

key locational assets within the region and helps to address the question, why

Borderlands? Examples include:

promotional film and mixed media – similar to the Northern Powerhouse 7,

commission a film that tells the story/journey of the Borderlands – where it is

and where it’s going, backed up by social media campaigns, etc;

attracting new people – promoting the good quality towns, high quality of life,

access to greenspace, etc as the key selling points for the region. This

needs to be set in the context of the wider regional opportunities that will be

driven by the Initiative – improved transport and digital connectivity, new

housing, greater employment opportunities, and access to education;

7 https://www.gov.uk/government/news/gunning-for-growth-film-promotes-northern-powerhouse-to-the-world

https://www.gov.uk/government/news/gunning-for-growth-film-promotes-northern-powerhouse-to-the-world


visitor campaign – promote the key assets which include: Lake District,

quality towns, historic Carlisle City, coastal access, historical and heritage

attractions such as Hadrian’s Wall National Parks, Areas of Natural Beauty,

and the ‘foodie’ scene across the region. This could include the

development of a Borderlands tourist or food trail, or similar; and

business/ investor campaign – develop website and other marketing

materials to describe the opportunity (the journey the Borderlands is on),

provide testimonials, outline the unique area qualities, and give access to

relevant background research, etc.

Timescales

The Borderlands branding campaign is an early project for consideration and can be

a ‘quick win’ for the partnership.


The proposed project activity will be led by the partners with support and input form

national and regional tourism/visitor bodies, and private sector providers – marketing

and branding.


5. Delivering a Borderlands Initiative

5.1 Financial Inputs

The Initiative is a mechanism for leveraging public and private sector funding to

deliver sustainable and inclusive economic growth over a 20-year period. At this

stage it is unclear on the amount of funding available, however, we have provided a

notional estimate based on the recently announced Inverness and Highlands City

Deal8. Total funding available is estimated at c. £0.3 to £0.5 billion.

Sources of funding:

UK Government – 50%;

Scottish Government – 50%;

match funded by partners – partner councils will have flexibility to ‘top-up’

project funding allocations on an individual basis based on capital budget

allocation; and

private sector investment leveraged, 200% of public sector funding = c.

£1billion.

Key Action: Partners to seek clarification from UK/ Scottish Government regarding

potential funding – this will be used within the project appraisals to estimate the

potential to leverage private sector funding and asses ‘best value’.

5.2 Staffing and Resources

The Borderlands Initiative is at the initial stages of development with resources

having already been committed to developing a robust and strategic Framework with

clear objectives and priorities to inform project activity.

8 https://www.gov.uk/government/news/uk-city-deal-invests-315-million-in-inverness-and-the-highlands

https://www.gov.uk/government/news/uk-city-deal-invests-315-million-in-inverness-and-the-highlands


The further development and refinement of the Initiative proposals (i.e. the ‘pre

Initiative development work’) will require dedicated resources and it is recommended

that the partners commit funding/ resources to create one temporary Full Time

Equivalent (FTE) ‘Programme Manager’ post. The Programme Manager will have

responsibility for development of the detailed strategic governance and partnership

models, and project activity that is to be delivered. The partner councils should

commit internal resources to provide governance and administration support as

appropriate.

It is recommended that the post is procured, with one partner taking the lead using

existing procurement mechanisms on a two year contract and where appropriate

shall be supported by the in-house teams within the partner councils. It would be

appropriate to consider direct new appointments or secondments, but there is a

need to ensure that any secondment is made on the basis of the FTE post required

i.e. seconded on a full-time basis without retaining any responsibility for delivery of

their existing work.

Due consideration must also be given to the challenging nature of the role and the

need for a range of integrated skills e.g. strategic partnership working, technical

aspects of project development/ delivery, project monitoring and appraisal, strategic

communication etc. The key tasks and responsibilities for this role will include:

project development;

ensuring best value is obtained across all projects;

accurately plan projects to achieve agreed delivery timescales;

develop robust approval process;

manage day-to-day relationships and co-ordinating activity between

stakeholders and strategic groups;

liaising and communicating updates and progress to the Strategic Board;

ensuring monitoring and reporting processes are in place; and

designing and implementing a M&EF.


Key Action: Partners to agree and secure resources for development activities,

prepare a job specification and procure the position. It is recommended that

partners contribute or submit a funding bid to UK/ Scottish Government for £120,000

to support the Programme Manager (to cover all costs – salary, National Insurance,

expenses, etc) for a period of two years. This breaks down as £12,000 per annum

for individual authorities.

5.3 Funding Allocation

The funding allocation and draw down is estimated to occur over the duration of the

Programme. For the purpose of the Framework we have assumed that the

Borderlands funding allocation will be drawn down over three investment block

periods – however, in practice this will be led by project activity.

The funding model for the Initiative will need to be amended and updated as project

activity is developed – it is therefore crucial that a degree of flexibility is built into the

internal funding mechanism.

Table 5.1: Funding Allocation Model

Period 1 Period 2 Period 3

Timescale Year 0 to Year 5 Year 5 to Year 12 Year 12 to Year 20

Notional funding amount £90m - £150m £90m - £150m £120m - £200m

% of total allocation 30% 30% 40%

Key Action: Partners to discuss and agree the approach to allocating and awarding

funding and seek clarification from UK/ Scottish Government regarding timescales for

drawing down funding.


5.4 Project Approval

In order to ensure a robust and transparent process, an appraisal scoring system for

individual project approvals will need to be agreed and developed between partner

councils.

Based on a review of good practice, including other recently developed Regional

Growth Models and funding mechanisms, it is recommended that a three stage or

Gate approval process as follows:

Gate 1: Develop the Outline Strategic Case – high level appraisal of the

individual project against the objectives and priorities of the Borderlands. It is

suggested that a standardised appraisal form is developed which evaluates and

scores projects against specific criteria for example, contribution to strategic

objectives.

Gate 2: Develop the Outline Business Case – robust and detailed

appraisal of the project proposals based on HM Treasury five case model – the over-

arching objective of the OBC is to provide project partners and decision makers with

the relevant information to support and inform their investment decisions. This is

considered against the following key criteria:

that the intervention is supported by a compelling case for change that

outlines the fit with, and contribution toward, key policy documents and

contributes to the strategic priorities and objectives of the Initiative and

partner councils – the strategic case;

that the project represents best public value, and is tested against a

number of other delivery scenarios via an options appraisal, identifying

the impacts/ benefits that would be generated by the preferred approach

– the economic case;

consider whether there is demand and need for the project and whether

it would affect other service providers, that the proposed project is

attractive to the market place, can be procured and is commercially

viable – the commercial case;


outline the capital and revenue costs (lifetime costs of the project) the

funding sources, and consider value for money against the expected

outputs, all costs and returns should be accounted for, quantified and

affordable – the financial case; and

identify the staffing requirements, and the partnership and governance

approach - what is required from all parties, and that it is achievable –

the management case.

Stage 3: Development of Full Business Case

On completion and acceptance of the OBC, the project proposals should develop a

Full Business Case (FBC) which includes further consideration of the procurement

and management strategies for projects.

Appendix F provides a suggested approach to developing the case for project

approval.

Key Action: Partners to discuss and agree the approach to developing and

approving project activity via a robust internal appraisal process.

5.5 Stakeholder Engagement

The Initiative will be delivered in a complex landscape with a multitude of

organisations from all parts of the public, private and third sectors delivering a

myriad of projects and programmes of support, all with their own agendas and

strategic objectives.

As such, there is real potential for duplication, overlap or in some instances gaps in

service provision. Engaging with stakeholders and securing their buy-in and

commitment is vital for the successful delivery of the Initiative – in particular where

the delivery lies with stakeholders and the Initiative has a lobbying or advocacy role.

The partners will develop a Stakeholder Engagement Plan that has a focus on

communication and engagement that covers a range of aspects, including; who to

engage, method of engaging stakeholders, and are there any existing groups or

bodies to build upon.


There are five important stakeholder groups to consider:

potential funders;

strategic stakeholders;

operational and delivery stakeholders;

advisory stakeholders; and

beneficiary stakeholders.

The objectives of the stakeholder engagement are to:

ensure appropriate level and type of communication between all relevant

stakeholders in a way that promotes joined up working;

define and agree stakeholders and their roles and responsibilities – buy-in;

and

promote the Borderlands Initiative and develop a set of clear and consistent

messages to generate greater awareness and understanding.

5.6 Strategic and Operational Governance

The Partners recognise the critical importance of establishing appropriate

governance structures and procedures for the Borderland Initiative, to ensure that

efforts are targeted appropriately and the cost effective use of investment resources.

Figure 5.1, over, is a governance model based on good practice examples and

shows the recommended structure that should be adopted and implemented to

ensure successful delivery of the Borderlands.9

Key Action: As an early task the partners are to discuss and agree appropriate

governance structures with key funders – UK and Scottish Government.

9 Based on a review of other Regional Growth Models and large -scale transnational European funded programmes

e.g. Interreg.


Figure 5.1: Borderlands Governance and Implementation Structure

Borderlands Strategic Board: this will be the main Borderlands oversight

forum, with overall responsibility for:

agreeing strategic direction and priorities, including overseeing regular

updates to the Borderlands’ strategy;

final approval for all Borderlands project activity;

reviewing Borderlands Initiative and project-specific progress; and

overseeing Borderlands evaluation activity.

The Board will comprise an independent chair, two representatives from the UK and

Scottish Government (one member from each) and up to 10 other members,

comprising two senior representatives nominated by each of the local authority

partners e.g. Head of Service or Chief Executive and Council Leader/Portfolio

Holder..

As highlighted in Section 5.2, it is recommended that a dedicated resource is

secured/ appointed to support the Strategic Board with the further development of

Programme and individual project activity.


The Board will meet every three or four months, although there will be also written

procedures to enable project approvals between meetings.

Thematic Advisory Groups: advisory groups will be constituted on an ad hoc

basis with membership by invitation of the Board. Each Group will comprise public

and private sector representatives with appropriate thematic experience, and will be

responsible for:

overseeing the preparation and updating of thematic plans in strategic areas

of intervention such as transport and connectivity, place development and

regeneration, area promotion, etc; and

advising the Board and Delivery Team on appropriate project opportunities

and on the scope of feasibility, development and delivery activity.

It is recommended that Thematic Advisory Groups are established based on the

strategic priorities of the Borderlands – these groups will be chaired/ led by members

of the five partner authorities. Suggested organisations that could add value to the

Thematic Advisory Groups are highlighted Table 5.2 below.

Table 5.2: Thematic Advisory Groups – Suggested Membership

Thematic Group Suggested Members

Transport and connectivity

Arriva

Digital Scotland

Highways England

Ofcom

Scotrail/Abellio

Stobart (Carlisle Airport)

SWESTRANS

Transport for the North

Transport Scotland

Virgin Trains

Members of combined authority groups (devolution agreements)

Place development and regeneration

British and Scottish Property Federation

Cumbria and North East LEPs

DCLG

Homes and Communities Agency

House Builders Federation

Land owners

Investors/developers

Scottish Enterprise


Scottish Futures Trust (SFT)

Key sectors and Skills

Cumbria and North East Local Enterprise Partnerships

DCLG and Scottish Government

Department for Business, Energy and Industrial Strategy

HE/FE institutions

D&G Economic Leadership Group

Industry groups/bodies e.g. Scotland Food and Drink, Energy UK

Scottish Development International (SDI)

Scottish Enterprise

Skills Development Scotland

UK Trade and Investment (UKTI)

Promotion

Kielder Water Forest Park

Northumberland National Park

The Lake District National Park Authority

VisitEngland

VisitScotland

Note: this does not constitute a comprehensives list but presents suggested organisations that could add value to the thematic groups

Thematic Advisory Groups will prepare their own schedule of meetings and other

activity.

Delivery Group: this will comprise the staff engaged to deliver the Borderlands

Initiative and the Group will be responsible for:

project feasibility and development activity, including the appointment and

oversight of external studies;

delivery of projects directly under the control of the Borderlands Initiative;

liaison with external organisations with responsibility for delivering projects

not directly under the control of the Borderlands Initiative;

ensuring that project linkages are clearly understood and that potential

synergy benefits are pursued; and

collecting, collating and reporting performance monitoring data.

The Delivery Group will meet every three months for formal meetings to discuss

progress, etc, although it is expected that there will be close working between

members throughout the delivery of the Initiative.


It is recommended that each partner local authority appoints one senior staff

member that has responsibility for overseeing the development and delivery of all

project proposals (within the local authority area) and individual projects are

assigned a project lead and support staff.

Specialist Support Services: the Delivery Group will be able to call on

specialist support from within the local authority Partners, on an ad hoc/as needs

basis. This will comprise a mix of temporary secondments to work on specific

projects or other Programme activity, and more informal advisory relationship with

thematic specialists.

5.7 Monitoring and Evaluation

The section provides an overview of the suggested approach to measuring and

capturing the economic impacts and benefits of the Initiative, the Monitoring and

Evaluation Framework (M&EF). The evidence gathered will seek to:

help understand the signs of change and track progress towards achieving

economic growth;

help provide a robust assessment of economic development and growth

potential;

know if the project is making the difference you want;

learn from the project in order that we might share your experience with

other bodies and project sponsors, and

report to government and other stakeholders on the economic impact.

In thinking about what difference the Initiative might make, we have adopted a “Logic

Model” approach to how the Initiative will deliver final outcomes (benefits). The

usual approach is to think of the following steps in the process:

Step 1: Resources/ inputs are needed to fund and deliver a project [Inputs];

Step 2: Once you have access to resources, you can use them to purchase

or fund a range of activities [Activities];


Step 3: If planned activities are delivered, then you can generate immediate

benefits or effects and planned outputs [Outputs]; and

Step 4: If planned outputs are achieved, then the intended impacts and

benefits will result from the intervention [Outcome].

Measurement Framework

The Key Performance Indicators (KPIs) will measure the impact of individual project

activity (to allow for direct comparison) and the overall impact of the Initiative. The

indicators will be used to benchmark the expected outputs of various projects and

provide the Strategic Board with a greater understanding of the anticipated impacts.

The KPIs for measuring success are identified as:

increase in net attributable GVA;

return on Investment;

gross employment created or safeguarded;

increase in salaries;

increase in working age population; and

new public and private sector investment leveraged.

In addition, there will be bespoke quantitative and qualitative indicators across each

of the strategic priorities to measure the benefits and impacts of the Initiative.

A copy of the draft M&EF with suggested indicators is presented in Appendix E.

Key Action: The partners are to discuss and agree the M&EF including; the KPIs,

target setting, evidence requirements, responsibilities and frequency of collecting


data, and reporting formats. In addition, partners are to discuss with the funders

the structure for any payback models and ensure the M&EF is linked and aligned

to the payback e.g. net GVA generated.

6. Next Steps for Borderlands

This section sets out a summary of the key next steps for the partners to take the

Borderlands Initiative forward.

Memorandum of Understanding – partners to prepare and agree a

Memorandum of Understanding (MoU), or similar as the first step to establishing a

Borderlands partnership and Initiative. This will outline the common ambition of the

partners and secure buy-in at the senior level. Based on discussions with potential

funders this may develop into a formal agreement or partnership.

Engage with UK and Scottish Governments – the Framework has set

out the high level strategic case and rationale for collaboration. The next step is for

partners to present the Framework to the UK and Scottish Governments to gather

their input/ feedback and begin negotiations regarding securing and leveraging

public sector funding for delivering the Initiative.

Stakeholder Engagement – there a number of strategic and delivery bodies

and organisations that are crucial for the successful implementation and delivery of

the Initiative. The partners should now develop an engagement strategy and

undertake a period of pro-active engagement with stakeholders to secure wider buy-

in and support for the Initiative.

Investment model – the Framework has outlined the two delivery mechanisms

for the Initiative – direct intervention through funding and resourcing of activity, and

indirect intervention where the Initiative plays a strategic lobbying or advocacy role.

Based on discussion with funders and the partnership, there is a need to negotiate

and develop a detailed investment model. In particular there are two elements to be

addressed – how funding will be allocated and how it should be used.

Agree and secure a funding request for the pre-Initiative

development works – as highlighted in Section 5.2 it is advised that partners


commit or secure additional funding to support a Programme Manager post for a

period of two years.

The Programme manager will be responsible for a number of tasks, including

programme and project development; managing the day-to-day relationships and co-

ordinating activity between stakeholders and strategic groups; liaising and

communicating updates and progress to the Strategic Board; and ensuring a robust

governance and management structure is implemented.

Develop job specification and procure position – partners should

develop an appropriate job specification and procure the Programme Manager

position through existing council procurement mechanisms.

Project modelling and development – partners should discuss and agree

an appropriate and robust approach to project modelling to help prioritise project

activity. This will include the development of a Borderlands Initiative proposition

paper that can be disseminated to wider stakeholders. Future project development

work to include:

cross partner agreement on the finalised list of project activity;

agreement of project modelling – ‘ranking’ project activity;

agree the role of the Initiative in project delivery – direct or indirect;

prepare outline timetable for project delivery – based on the funding

allocation model; and

assign internal teams for project development, implantation and delivery.


Appendices

Appendix A: Socio-Economic Baseline

Appendix B: Policy Analysis and Rationale for Intervention

Appendix C: Wider Regional Public Sector Activity

Appendix D: SWOT Analysis

Appendix E: Monitoring and Evaluation Framework

Appendix F: Business Case Development and Approval Process


Appendix A: Where Are We Now –

Borderlands Baseline Position

This section presents a snapshot of the current socio-economic landscape in the

Borderlands and reviews wider trend data to assess the recent performance of the

region. Comparison is drawn with Scotland and the UK.

Population and Demographics

The total population of the Borderlands in 2014 was 1,077,800. This is the lowest

since 2010, and marks a slight population decrease of 2,700 people (-0.2%) over the

period. This decrease is in contrast to the national trends in both England and

Scotland, where population increased by +3% and +2%, respectively, over the same

period.

Table A.1 measures the change in population by age group between 2010 and 2014

– there has been a notable increase of those aged 65+.

Table A.1: Changes in population by age group, 2010 to 2014

2010 population

2014 population

Value change

% change

Children (0 – 15) 182,500 177,300 -5,200 -3%

Working Age population (16 – 64) 677,600 654,100 -23,500 -3%

Aged 65+ 220,300 246,400 26,100 +12%

Total Population 1,080,500 1,077,800 -2,700 -0.2%

Source: NOMIS Population Estimates. Children are those aged 0-15, and ‘working age population’ includes those aged 16 to 64.

The distribution of this population by local authority is as follows:

Cumbria - 497,900 (46%);

Northumberland – 316,000 (29%);

Dumfries and Galloway – 150,000 (14%); and

Scottish Borders – 114,000 (11%).


As the largest settlement within the Borderlands, it is also worth noting that the

population of the City of Carlisle local authority area in 2015 is estimated at

108,20010

.

There has been a slight increase in the Borderlands population over the last 30

years or so – the current population is up 4% (46,400 people) since 1986. Whilst this

is in keeping with the Scottish change over the same period (5%), it is lower than the

change in England over the same period (15%). However, the decline in the number

of young people (aged 16 – 24) in the Borderlands has been sharp, -23%, or

c.34,200, and there have been a number of drivers for this including; employment

opportunities, availability of housing, and access to education.

As shown in Table A.2, there has been a substantial increase in the 65+ population,

with decreases in the other age groups. This is particularly pronounced compared to

the national levels (in England, those aged 65+ increased by 31% over the period, in

Scotland, 30%).

Table A.2: Changes in population by age group, 1986 to 2014

1986 population

2014 population

Value change % change

Children (0 – 15) 191,600 177,300 -14,300 -7%

Working Age population (16 – 64)

668,500 654,100 -14,400 -2%

Aged 65+ 171,500 246,400 74,900 +44%

Total Population 1,031,600 1,077,800 46,100 4%

Source: NOMIS Population Estimates. Children are those aged 0-15, and ‘working age population’ includes those aged 16 to 64.

It should be noted that the number of young people aged 16 to 24 in the Borderlands

has decreased by 23% over the same period – 34,200 people. This is an important

finding as many of these young people would be looking to secure employment

within the Borderlands and help to grow the local economy. In order to retain these –

and attract new – young people, it is important that the area offers a suitable range

of employment opportunities, affordable housing stock, and access to education.

10

Source: NOMIS Population Estimates.


Over three-fifths of the Borderlands population are of working age (61% - compared

to 63% in 2010). As shown in Figure A.1, the Borderlands has:

a lower share of those of a working age and those aged younger than 16;

and

a higher share of those aged 65 and over.

Figure A.1: Demographic Breakdown, 2014 population

Source: NOMIS Population Estimates

There are slightly more females than males in the Borderlands (51%:49%) – this split

has remained consistent since 2010, and is in keeping with the gender split at the

Scottish and English levels.

Employment and Business Base

Total employment within the Borderlands in 2014 was 418,769. Whilst this

represents an increase of over 6,000 jobs since 2010 (+2%), this rate of growth is

lower than at the English and Scottish levels (both +5%).

This level of employment equates to 39% of the total Borderlands population – this is

lower than both Scotland (46%) and England (45%).

16%

61%

23%

19%

63%

18%

17%

65%

18%

0% 10% 20% 30% 40% 50% 60% 70%

Aged 0 - 15

Aged 16 - 64

Aged 65 and over

Scotland England Borderlands


Table A.3 provides a sectoral breakdown and changes in employment since 2010,

with key points including:

notable increases in employment:

o accommodation and food services – 6,735 (+19%)

o health – 5,602 (+9%)

o retail – 1,965 (+4%)

o professional, scientific, and technical – 1,561 (+8%)

o manufacturing – 1,433 (+2%); and

notable decreases in employment:

o public administration and defence – 5,653 ( -22%)

o education – 3,082 (-8%)

o motor trades – 1,868 (-16%).


Table A.3: Changes in Borderlands employment, 2010 - 2014

2010 2014

Change since 2010

% Change

Agriculture, forestry & fishing 2,020 1,970 -50 -2%

Mining, quarrying & utilities 4,974 5,778 804 16%

Manufacturing 59,031 60,464 1,433 2%

Construction 23,096 22,816 -280 -1%

Motor trades 11,535 9,667 -1,868 -16%

Wholesale 11,878 11,977 99 1%

Retail 48,225 50,190 1,965 4%

Transport & storage 15,715 16,686 971 6%

Accommodation & food services 35,210 41,945 6,735 19%

Information & communication 5,410 4,592 -818 -15%

Financial & insurance 4,345 4,126 -219 -5%

Property 5,858 5,948 90 2%

Professional, scientific & technical 19,813 21,374 1,561 8%

Business admin & support services 18,749 18,637 -112 -1%

Public admin & defence 25,090 19,437 -5,653 -23%

Education 38,416 35,334 -3,082 -8%

Health 64,319 69,921 5,602 9%

Arts, entertainment, recreation, 18,877 17,907 -970 -5%

Total 412,563 418,769 6,206 2%

Source: BRES

The sectoral split of employment within the Borderlands is largely in keeping with

that of both Scotland and England, with the public sector (comprising health,

education and public administration and defence) the largest employer (30% - Table

A.4). Notable differences include:

a higher proportion of manufacturing employment in the Borderlands (14%);

a slightly higher share of Borderlands employment in accommodation and

food services (12%) [perhaps driven in part by the Lake District]; and

a lower share of Borderlands employment in the business administration and

support services sector (4%).


Table A.4: Sectoral split of total employment, 2014

Borderlands England Scotland

Agriculture, forestry & fishing 0.5% 1% 2%

Mining, quarrying & utilities 1% 1% 3%

Manufacturing 14% 8% 8%

Construction 5% 4% 6%

Motor trades 2% 2% 2%

Wholesale 3% 4% 3%

Retail 12% 10% 10%

Transport & storage 4% 5% 4%

Accommodation & food services 10% 7% 7%

Information & communication 1% 4% 3%

Financial & insurance 1% 4% 4%

Property 1% 2% 1%

Professional, scientific & technical 5% 8% 7%

Business admin & support services 4% 9% 8%

Public admin & defence 5% 5% 6%

Education 8% 10% 8%

Health 17% 13% 17%

Arts, entertainment, recreation, 4% 5% 4%

Total 418,769 24,299,908 2,437,109

Source: BRES

The Borderlands has a lower share of full-time employees – 64% - compared to both

England and Scotland (69% and 67%, respectively – Figure A.2, over).


Figure A.2: Split of Full-Time and Part-time Employment, 2014

Source: BRES

In each area, the majority of employees in sectors such as retail and accommodation

and food services are part-time workers. As shown in Table A.4, the Borderlands

has a slightly higher share of employment within these sectors. If there are fewer full-

time jobs available, it can be difficult to attract people to the area, who may not wish

to relocate to an area without suitable access to full-time employment opportunities.

Table A.5 provides details on the occupation of employees within the Borderlands.

Whilst broadly consistent with the national levels, key messages include:

the Borderlands has a lower share of those employed in professional or

technical occupations (28%) compared to both England (34%) and Scotland

(33%); and

the area has a higher share of people employed in a skilled trade occupation

(15%) than either England or Scotland (10% and 11%, respectively).


Table A.5: Occupation of the workforce, 2015


Managers, directors and senior officials 10% 11% 9%

Professional occupations 16% 20% 20%

Associate prof & tech occupations 12% 14% 13%

Administrative and secretarial occupations 10% 11% 11%

Skilled trades occupations 15% 10% 11%

Caring, leisure and other service occupations 10% 9% 10%

Sales and customer service occupations 7% 8% 9%

Process, plant and machine operatives 7% 6% 6%

Elementary occupations 13% 11% 11%


As of 2015, there was a total of 45,720 businesses operating within the Borderlands

(Table A.6). This marks a growth of +8% on the 2010 business base, however, this

rate of growth is around half that of Scotland (+16%) and England (+18%) over the

same period.

Notable changes in the business base over this period include:

increased:

o professional, scientific and technical – 1,380 (+32%)

o agriculture, forestry, and fishing – 655 (+7%)

o business admin & support services - 570 (+23%)

o accommodation & food services – 320 (+9%); and

decreased:

o retail – 330 (-9%)

o construction – 235 (-4%).


Table A.6: Changes in Borderlands business base, 2010 - 2015

2010 2015 Change

since 2010 % Change

Agriculture, forestry & fishing 9,360 10,015 655 7%

Mining, quarrying & utilities 155 230 75 48%

Manufacturing 2,130 2,210 80 4%

Construction 5,385 5,150 -235 -4%

Motor trades 1,285 1,350 65 5%

Wholesale 1,315 1,225 -90 -7%

Retail 3,720 3,390 -330 -9%

Transport & storage 1,420 1,365 -55 -4%

Accommodation & food services 3,610 3,930 320 9%

Information & communication 1,120 1,240 120 11%

Financial & insurance 425 595 170 40%

Property 1,045 1,115 70 7%

Professional, scientific & technical 4,280 5,660 1,380 32%

Business admin & support services

2,440 3,010 570 23%

Public admin & defence 55 255 200 364%

Education 550 670 120 22%

Health 1,440 1,530 90 6%

Arts, entertainment, recreation 2,470 2,775 305 12%

Total 42,210 45,720 3,510 8%

Source: NOMIS UK Business Count

Again, the business base within the Borderlands is largely in keeping with that of

both England and Scotland; however, the area has a significantly higher number of

businesses within the agriculture, forestry & fishing sector (22%) – particularly in

relation to England (5% – Table A.7). Other notable differences include that the area

has a lower share of business operating in the:

professional, scientific and technical sector (12%) compared to England and

Scotland (18% and 19%, respectively); and

information and communication sector (3%) – particularly compared to

England (8%).


Table A.7: Sectoral split of business base, 2015


Agriculture, forestry & fishing 22% 5% 10%

Mining, quarrying & utilities 1% 0% 1%

Manufacturing 5% 5% 5%

Construction 11% 12% 11%

Motor trades 3% 3% 3%

Wholesale 3% 4% 3%

Retail 7% 8% 8%

Transport & storage 3% 3% 3%

Accommodation & food services 9% 6% 8%

Information & communication 3% 8% 5%

Financial & insurance 1% 2% 2%

Property 2% 4% 3%

Professional, scientific & technical 12% 18% 19%

Business admin & support services 7% 8% 7%

Public admin & defence 1% 0% 0%

Education 1% 2% 1%

Health 3% 4% 4%

Arts, entertainment, recreation, 6% 7% 7%

Total 45,720 2,116,295 168,275

Source: NOMIS UK Business Count

Productivity

Data limitations mean that we cannot provide full turnover data for the Borderlands.

For the Scottish regions within the Borderlands, combined total turnover in 2013 was

£7.5bn, around 3% of national turnover11

. This marks an increase of 11% (£721m)

on 2010, which is greater than the national increase of 8% over the same period.

As shown in Figure A.2, the total GVA for the Borderlands12

in 2014 was c. £20bn,

an increase of 12% (c. £2.2bn) on 2010.

11

Source: Scottish Annual Business Statistics. 12

N.B. Based on data available for both East and West Cumbria, rather than Cumbria as a whole.


Figure A.2: Total GVA within the Borderlands, 2010 - 2014 (£bn)

Source: ONS

This equates to a GVA per head of population of £18,592 in the Borderlands – this is

lower than both the English (£25,367) and Scottish (£23,102) figures. This is

perhaps to be expected, given the business base within the Borderlands area - e.g.

high number of businesses within ‘lower value’ sectors such as; agriculture retail,

and tourism related sectors which may typically generate lower levels of GVA.

Table A.8 sets out total GVA in 2014 for the sectors for which data was available.

Much of the area’s GVA is generated through four sectors, which account for 83% of

total GVA:

production - £4.546bn (23% of total GVA);

distribution, transport, accommodation and food - £4.140bn (21%);

manufacturing - £3.961bn (20%); and

public admin, education and health - £3.867bn (19%).

17.816 17.893

18.425

19.402

20.038

15.500

16.000

16.500

17.000

17.500

18.000

18.500

19.000

19.500

20.000

20.500

2010 2011 2012 2013 2014


Table A.8: Sectoral split of GVA in Borderlands, 2014 (£bn)

Total sectoral GVA

Agriculture, forestry & fishing 0.636

Production 4.546

Manufacturing 3.961

Construction 1.443

Information & communication 0.294

Financial & insurance activities 0.372

Real estate activities 2.359

Distribution, transport, accommodation and food 4.140

Business service activities 1.586

Public admin, education and health 3.867

Other services 0.792

Total 20.038

Source: ONS. N.B. Total may not sum due to rounding. It should be noted that some data is unavailable due to suppression, and so total GVA may, in fact, be higher.

Since 2010, there has been growth in GVA across the following sectors:

production - £0.659bn (17%);

distribution, transport, accommodation and food - £0.584bn (16%); and

manufacturing - £0.569bn (17%).

Information and communication is the only sector in which GVA has decreased over

this period, decreasing by -8%. This can partially be explained by decreased sectoral

employment over the period (15%, 818 jobs); however, other sectors (e.g. public

sector, construction, and agriculture, forestry & fishing) also experienced decreased

employment yet increases in GVA – it is perhaps the case that within the information

and communication sector, highly skilled and higher value jobs lost were replaced

with lower value jobs. Table A.9 provides further detail.


Table A.9: Changes in Sectoral Split of GVA, 2010 - 2014 (£bn)

2010 GVA 2014 GVA Change % Change

Agriculture, forestry & fishing 0.620 0.636 0.016 3%

Production 3.887 4.546 0.659 17%

Manufacturing 3.392 3.961 0.569 17%

Construction 1.259 1.443 0.184 15%

Information & communication 0.320 0.294 -0.026 -8%

Financial & insurance activities 0.340 0.372 0.032 9%

Real estate activities 2.011 2.359 0.348 17%

Distribution, transport, accommodation and food

3.556 4.140 0.584 16%

Business service activities 1.391 1.586 0.195 14%

Public admin, education and health 3.751 3.867 0.116 3%

Other services 0.676 0.792 0.116 17%

Total 17.816 20.038 2.222 12%

Source: ONS. N.B. Total may not sum due to rounding. It should be noted that some data is unavailable due to suppression, and so total GVA may, in fact, be higher.

The Economic Activity rate of the working age population within the Borderlands sits

at 80%, and has increased year-on-year since 2011. Further, since 2012, economic

activity rate of the Borderlands has been higher than that of both Scotland and

England, with increased employment across all three areas – Figure A.3.

Figure A.3: Economic Activity Rate, 2010 to 2015


77%

76%

78% 78%

79%

80%

77% 77% 77%

78%78%

76% 76%

77%

77% 77%

78%

75%

76%

77%

78%

79%

80%

81%

2010 2011 2012 2013 2014 2015

Borderlands Scotland England


Skills and Education

In looking to assess educational attainment of school pupils, we have undertaken

separate analysis of the Scottish and English areas of the Borderlands, due to the

inconsistency of the relevant datasets. As such, direct comparison between Scottish

and English attainment data should not be made.

For Scotland – we have analysed the number of S4 pupils achieving 5 awards or

more at SCQF Level 4. As shown in Figure A.4, S4 attainment within both Dumfries

& Galloway and the Scottish Borders has remained above the Scottish average

since 2009-10, and has increased in both areas at a higher rate than the national

rate over the period.

Figure A.4: Educational Attainment of S4 Pupils, 2009 - 2013

Source: Scottish Government Statistics

For the English regions, we have analysed data of the number of pupils at the end of

Key Stage 4 achieving 5 or more A* - C grades at GCSE level. Attainment in both

Northumberland and Cumbria has fluctuated in recent years, however, both have

remained broadly in line with the national average – indeed each area had a rate

higher than the national figure in 2015. Figure A.5 provides further detail.

80%

82%

85%86%

80% 81%

83%

85%

78%79%

80%

82%

74%

76%

78%

80%

82%

84%

86%

88%

2009-10 2010-11 2011-12 2012-13

Dumfries and Galloway Scottish Borders Scotland


Figure A.5: Educational attainment at Key Stage 4, 2009 - 2015

Source: Department for Education

In measuring the educational attainment of the working age population, we have

been able to revert back to collective data for the Borderlands, allowing for

comparison to the national levels. As shown in Figure A.6:

the Borderlands has a lower proportion of working age people educated to a

degree or Higher Education level than in both England and Scotland;

this is made up by a higher proportion of people whose highest qualification

is at GCE A or GCSE level; and

the Borderlands has a slightly lower proportion of people with no

qualifications.

54%

58%58%

55%

53%

57%

56%

57%

56%57%

57% 57%

54%

59%59% 59%

53%54%

48%

50%

52%

54%

56%

58%

60%

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Northumberland Cumbria England


Figure A.6: Educational attainment of working age population, 2015


The data also shows that in recent years, the working age population of the

Borderlands is becoming educated to a higher level, with increases in those

educated to degree level and to both GCE and GCSE level (Figure A.7). These

trends are in keeping with those experienced at both the Scottish and English levels.

23%

10%

28%

24%

8% 8%

28%

15%

24%

17%

6%

9%

29%

8%

23%22%

10%9%

0%

5%

10%

15%

20%

25%

30%

35%

% with degreeor equivalentand above

% with highereducation

below degreelevel

% with GCE Alevel or

equivalent

% with GCSEgrades A-C or

equivalent

% with otherqualifications

(GCSE)

% with noqualifications

(GCSE)



Figure A.7: Educational attainment of the Borderlands working age population,

2010-15


A skills shortage is defined as organisation that has insufficient skills/qualifications

internally within its workforce. A skills gap is an external factor, when an organisation

faces an insufficient labour supply of appropriately skilled/qualified people to fill a

specific role. A skills shortage vacancy (SSV) is a vacancy caused by an internal

shortage of skills or experience.

Data relating to skills gaps and shortages is collected through the UK Commission’s

Employer Skills Survey (UKCESS), with 2013 being the most recent year data is

available at the regional level13

. For the Scottish regions, we have used Skills

Development Scotland (SDS) data for 2013 relating to the ‘South of Scotland’.

The number of businesses reporting a skills gap was largely consistent in the areas

across the Borderlands:

South of Scotland – 17%;

Cumbria – 16%; and

Northumberland – 16%.

13

N.B. Results of the 2015 UKCESS are available, however, at time of writing only at the national and LEP levels.

20%23%

10%

24%

28%

23%24%

11%

8%

0%

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013 2014 2015

% Degree & above % HE below degree level% GCE A level % GCSE grades A-C% other qualifications % no qualifications


These figures lie between the national figures for both England (15%) and Scotland

(19%).

Skills gaps do, however, tend to have a larger impact on businesses within the

Borderlands – as shown in Table A.11, skills gaps have impacted on almost three-

quarters of businesses in Cumbria and the South of Scotland, 7-10% points more

than at the national levels.

Table A.11: Impacts of skills gaps on businesses, 2013

% with skills

gaps Major impact Minor Impact No impact

Northumberland 16% 18% 47% 35%

Cumbria 16% 12% 60% 28%

South of Scotland 17% 6% 64% 30%

England 15% 16% 47% 37%

Scotland 19% 15% 49% 36%

Source: UKCESS and SDS RSA data

As shown in Table A.12, businesses in the Borderlands typically have slightly fewer

vacancies than at the national level, whilst the share of all vacancies considered

‘hard to fill’ is largely in keeping with the national figures.

Table A.12: Hard to fill vacancies, 2013

% with at least one vacancy

% with at least one hard to fill

vacancy

% with a skills shortage vacancy

Northumberland 12% 4% 4%

Cumbria 12% 5% 4%

South of Scotland 10% 3% 2%

England 15% 5% 4%

Scotland 15% 6% 4%

Source: UKCESS and SDS RSA data

Table A.13 sets out the density of skills gaps by occupation – whilst there are some

notable differences (e.g. machine operatives in Northumberland, associate

professionals in Cumbria), this occupational split is broadly similar across the

comparator areas at all levels.


Table A.13: Density of skills gaps by occupation, 2013

North-

umberland Cumbria South of Scotland England Scotland

Managers 2% 2% 4% 3% 3%

Professionals 2% 2% 2% 4% 5%

Associate professionals

4% 1% 6% 5% 5%

Administrative/clerical staff

5% 4% 6% 5% 5%

Skilled trades occupations

5% 6% 6% 5% 7%

Caring, leisure and other services staff

4% 5% 2% 4% 6%

Sales and customer services staff

6% 6% 8% 8% 7%

Machine operatives

15% 2% 6% 5% 7%

Elementary staff 9% 10% 7% 7% 8%

Source: UKCESS and SDS RSA data.

Provision of Higher and Further Education

There are a total of five institutions offering Higher Education (HE) in Borderlands:

the University of Cumbria;

the University of Central Lancashire – Westlakes campus;

the University of Glasgow – Dumfries campus;

Heriot Watt University – School of Textiles & Design (Galashiels); and

the University of the West of Scotland – Dumfries campus.

These institutions offer a mixture of both general, ‘mainstream’ HE courses, as well

as more specialist courses which reflect local specialisms and assets – e.g. the

School of Textiles & Design, and the UCLan campus focuses on energy and tourism.


Scotland’s Rural College14

also have a campus in Dumfries, offering courses in land-

based and animal care industries, and incorporating the Scottish Dairy Technology

Centre and the Scottish Forestry Technology Centre.

Student data is only publicly available for institutions as a whole, and not by campus;

as such it is not possible to reach a figure of how many students study within the

Borderlands. In 2014/15, a total of 9,065 students studied at the University of

Cumbria; 77% undergraduate level and 23% at postgraduate level15

.

There is a total of seven Further Education (FE) institutions, many with campuses

spread across the area:

Borders College;

Carlisle College;

Dumfries and Galloway College;

Furness College;

Kendal College;

Lakes College West Cumbria; and

Northumberland College.

For the academic year 2014/15, there were a total of 23,99316

students studying at

FE institutions within the Borderlands.

Student data for the total numbers studying each subject by each institution are only

available for Scottish colleges. Of these Scottish institutions, the most commonly

studied subject group was health care/medicine/ health & safety, which 32% of all

students at FE institutions within the region studied in 2014/15 – this is double the

national rate of students studying these subjects. Other popular subjects in the

region include:

catering/food/leisure services/tourism (11%, compared to 6% across

Scotland); and

14 Formed in 2012 through a merger of Barony, Oatridge, Elmwood and the Scottish Agricultural Colleges. 15 Source: HESA institution profile. 16 Source: InFact database for Scottish institutions. Data for English institutions taken from BIS and Skills Funding Agency Skills and Participation data, and is basd on region, rather than by institution.


family care/personal development/personal care and appearance (11%

compared to 18% across Scotland).

House Prices and Affordability

The average house price within the Borderlands in 2016 is £134,502. As shown in

Figure A.9, this is largely in keeping with the Scottish average (£136,259), however,

both are substantially lower than the English average (£222,285 – this will be

skewed by prices in London and the south west).

Figure A.9: Average House Prices, 1996 to 2016 (£)

Source: UK Land Registry. N.B. Based on yearly average house prices in each location

All areas have experienced an increase in house prices over the last 20 years, and

again, this is particularly true in England, where prices have increased by 310%,

compared to 160% in the Borderlands, and 126% in Scotland.

House prices across the Borderlands have largely followed the same trend over the

past 20 years or so, with the highest house prices over the past decade or so found

in Northumberland and the Scottish Borders (Figure A.10).

50,000

70,000

90,000

110,000

130,000

150,000

170,000

190,000

210,000



Figure A.10: Average House Prices within the Borderlands, 1996 to 2016 (£)

Source: UK Land Registry. N.B. Based on yearly average house prices in each location

The largest growth in house prices has taken place in the English areas within the

Borderlands – Northumberland (209%) and Cumbria (183%), compared to 146%

within the Scottish Borders and 113% in Dumfries and Galloway.

The Borderlands typically has a higher level of detached, semi-detached and

terraced houses than both the English and Scottish averages, as well as a lower

share of flats (Table A.14).

Table A.14: Type of dwellings, English areas (2011) and Scottish areas (2013)

Detached Semi-

detached Terraced Flats Other

Northumberland 25% 35% 28% 11% <1%

Scottish Borders 28% 21% 22% 28% 1%

Cumbria 26% 32% 31% 11% <1%

Dumfries and Galloway 34% 26% 26% 14% 1%

England 22% 31% 25% 22% <1%

Scotland 21% 20% 21% 38% 1%

Source: 2011 census for English figures and Scottish Government Statistics for Scotland figures.

Detached, semi-detached and terraced properties may often be larger and more

expensive than flats, and as such, may not be as appropriate (i.e. too large) or

affordable for young people and families to move into.

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Carlisle Northumberland Scottish Borders D&G


The Lake District National Park Authority17

set out a number of factors that contribute

to a lack of affordable housing within the Lake District. It is likely that many of these

factors extend across the Borderlands:

low wage levels creating a gap between incomes and house prices;

high rates of second home ownership, and increased commuter/retirement

homes; and

a shortage of land available for development and a high purchase cost for

the available land.

This is also echoed by Cumbria Council18

, who identify low incomes and high

housing costs (driven by retirement and holiday/commuter homes) as driving factors

behind a shortage of affordable housing, as well as high land values caused by

scarcity of sites, land and construction costs, and protection of the environment. The

Council conclude that a lack of affordable housing may lead to an out-migration of

local workers – particularly young people.

The rate of second home ownership across the Borderlands is higher than both the

national averages of England and Scotland. The rate of second home ownership is

higher in in Cumbria (8%) and Northumberland (6%) – than in the Scottish areas;

however, the English national rate is also higher than the Scottish average (Table

A.15). That said, the rate of second home ownership is likely to vary considerably

between different localities and towns within each area.

Table A.15: Second home ownership, English areas (2011) and Scottish areas

(2013)

% of total

Northumberland 6%

Scottish Borders 2%

Cumbria 8%

Dumfries and Galloway 2%

England 4%

Scotland 1%

Source: 2011 census for English figures and Scottish Government Statistics for Scotland figures.

17

Available online. 18

Available online.

http://www.lakedistrict.gov.uk/caringfor/policies/affordablehousing

http://www.cumbria.gov.uk/elibrary/Content/Internet/536/38896113832.pdf


Assets, Opportunities and Constraints on Growth

Assets and Opportunities

Locational Assets

A key asset of the Borderlands area is the ‘good quality’ of the area’s natural

environment and its resources, including the coastal and market towns and

greenspaces such as the Lake District and Northumberland National Parks,

Galloway and Kielder Forest Parks, and North Pennines, Solway Coast and

Northumberland Coast Areas of Natural Beauty. These assets are important ‘pull

factors’ in attracting people to the area – both residents and visitors.

The Borderlands also has an attractive built heritage – the only city is Carlisle but

there are a number of large towns including Barrow-in Furness, Dumfries, Blyth and

Kendal. Settlements across the area include both modern and historic towns,

coastal and inland towns, heritage and industrial towns, commuter and visitor towns.

The area has a rich history, and much of this is still evident today, including Carlisle

Castle and Cathedral, Hadrian’s Wall, Alnwick/ Bamburgh Castles, Dumfries

Museum, Drumlanrig Castle, and Melrose/ Kelso Abbeys.

The Borderlands is also home to two Dark Sky Observatories – one in Galloway

Forest Park, and the other at Kielder Forest Park – which give public access to some

of the best opportunities for astronomy in Europe. As well as being assets in their

own rights, these facilities are also important tourist attractions for people from

across the UK – there are only three such facilities on the British mainland.

Infrastructure Assets

As with many rural areas, transport connectivity within the Borderlands is of varying

quality across all modes of transport. One key asset is the recently completed

Borders Railway, which provides a direct connection between Edinburgh and

Galashiels/ Tweedbank. Six months after opening, passenger numbers have already

surpassed the original forecasts by 22% (c. 700,000 passenger journeys). In the

recent Scottish Government manifesto (2016) there was a “commitment” to consider

the feasibility of extending the railway to Carlisle.


Further, the East and West Coast main lines pass through the area, connecting

Scotland with the North West, North East and London. That said, interconnectivity by

rail is lacking somewhat across the Borderlands region, and there is perhaps a need

and opportunity for enhancing this.

Similarly, by road, connectivity passing through the area is good, with the M74/ M6/

A74 connecting Glasgow with the North West and Birmingham and allowing for

access to London; and on the east side the A1/ A76 connecting through Newcastle

and the centre of England to London. However, road connections within the

Borderlands region are limited in places, particularly down both the west and east

coasts, and across the coast from east to west, where road travel is largely confined

to ‘A roads’.

Carlisle Lake District Airport is the only airport in the Borderlands, however, it is

primarily used for aviation flying schools and as a maintenance facility. There are

current proposals to resurface the two runways and introduce routes to Dublin and

Southend – targeting the North American tourist market i.e. marketed/promoted as a

potential stopover in the Lake District between Dublin and London.

There are three international airports (within c.30 miles radius of Borderlands) –

Newcastle, Edinburgh, and Glasgow Prestwick.

Sector Opportunities

Tourism

As outlined above, the quality and number of natural and built assets within the

Borderlands help to make the area a prominent tourism destination within the UK –

tourism accounts for c. 10% of employment within the Borderlands. The Lake

District alone attracts 16.4 million visitors who spend c. £1,146m per annum.

Enhancing the transport and tourism infrastructure (places to stay, eat, drink, built

attractions etc.) there may be potential to capitalise by attracting new visitors and

encouraging longer visits, and ultimately, increased visitor spend in the local area.

There are already some initiatives in place to ensure the Borderlands can maximise

opportunities arising through tourism. For example, the Borders Food Network brings

local providers together to showcase the high quality produce available across the

Borders.


The Network also helps form connections with local accommodation providers and

publishes food and drink trails to help develop linkages across the region’s supply

chain.

Energy

There is significant activity across the southwest of the Borderlands region within the

nuclear energy sector (including decommissioning). The decommissioning of the

nuclear power station at Sellafield started in 2011 and is expected to take some 15 –

20 years at a total cost of £0.5 billion – this is expected to create significant (albeit

temporary) jobs both directly in the decommissioning process and through supply

chain spend.

Further to the closure of Sellafield, in 2011 it was announced that a new generation

of nuclear power station (3.8 GW gross capacity) had received outline consent (UK

Government National Policy Statement) at a location just north of Sellafield in west

Cumbria - Moorside nuclear power station.

The operator NuGen (a joint venture between Toshiba and ENGIE) is preparing

plans for developing the site to be submitted for consideration by the relevant

planning authorities. The expected date of commissioning for the new power station

is 2024, at an estimated cost c. £10 billion and will support 21,000 jobs.

There are also opportunities for the Borderlands within the renewable energy sector.

The area is home to a number of both on and off-shore wind farms (e.g. Robin Rigg

in the Solway Firth, Barrow, etc.) and there are early stage proposals for

development of carbon capture and storage facilities at the former Chapelcross site.

The sector helps support higher value jobs and as shown above, GVA within the

production sector across the region has been growing in recent years, and it is

possible that this will continue to be an important sector in future.

Food and Drink

Food and drink is an important sector across the region, both as part of the tourism

offering but also as a driver of exports and international trade.


Total exports from the Food & Drink growth sector stood at £9.8 billion in 2014,

accounting for 12.9 per cent of Scotland’s total exports. This is a growing sector, with

the 2014 figure marking an increase of 62% (c. £3.75 billion) since 200419

. In

Dumfries and Galloway there are 9,700 jobs in the sector20

.

The individual authorities that make up the Borderlands have a strong branding

around food and drink and host various festivals and events that focus on promoting

local produce. For example, Taste Cumbria, D&G Year of Food and Drink (2015),

Scottish Borders Food Network, and Taste of Northumberland, to name a few.

Advanced Manufacturing

The area also has something of a focus on advanced manufacturing, with particular

assets in this sector including the Northumberland College Advanced Manufacturing

Centre, the International Advanced Manufacturing Park, and the Automotive and

Manufacturing Advanced Practice (although the latter two are located in

Sunderland). As suggested in the North East LEP Strategic Economic Plan (2014)21

,

the area [the North East] has a strong base of businesses who are in a position to

build on their strong standing in international market places in this innovative sector.

It is hoped that, in time, the area will be able to develop nationally and internationally

recognised high-value clusters within this sector. This sector is also identified as a

key sector in the Cumbria LEP Strategic Economic Plan (2014)22

.

Constraints on Growth

The rurality of the Borderlands presents a range of challenges, particularly around

connectivity, sectoral base of employment, and skills constraints.

Transport Connectivity

As noted earlier, transport connectivity within the Borderlands is of varying quality,

and this impacts negatively on the ability to move people and goods within, and

beyond, the region.

19

Scotland's Economic Strategy - Growth Sector Statistics Database, available online. Table 5.1 and 5.2. 20

http://www.gov.scot/Resource/0049/00493631.pdf 21

Available online. 22

Available online.

http://www.gov.scot/Topics/Statistics/Browse/Business/Publications/GrowthSectors/Database

http://www.gov.scot/Resource/0049/00493631.pdf

http://nelep.co.uk/wp-content/uploads/2014/11/North-East-Strategic-Economic-Plan-More-and-Better-Jobs.pdf

http://www.cumbrialep.co.uk/wp-content/uploads/2014/03/Cumbria-LEP-final-report-1-April-2014.pdf


By road, the M74/ M6/ A74 connects Glasgow with Birmingham, and allows easy

access to other major cities in England; however, road infrastructure down both the

West Coast and the East Coast is fairly limited (within the Borderlands area),

typically restricted largely to ‘A roads’.

Road connectivity between Cumbria and Northumberland is via the A69 from

Carlisle to Newcastle, the A7 provides partial cover through the area from Carlisle to

Edinburgh, but between Dumfries & Galloway and the Scottish Borders there is no

primary access route. The A75 connects along the southern boundary of D&G while

the A68 is the primary route through the Scottish Borders.

As primary distributor roads connecting areas of opportunity together, and also with

the major settlements, there are clear restrictions with all of these primary transport

corridors, many of which are single carriageways.

As outlined above, rail connections are reasonable in a north-south direction across

the Borderlands, with both the East and West Coast mainlines passing through the

area, but rail transport across the area in any other direction is limited or non-

existent. The Borders Railway offers a direct connection between Edinburgh and

towns in the Scottish Borders, and there is potential for future extension of this line to

Carlisle, giving a new direct route across the Borderlands region and opening up

areas of employment opportunity.

Whilst there are no international airports within the Borderlands, there are three

airports just outwith the area: Newcastle, Edinburgh, and Glasgow Prestwick. That

said, none of these can truly be said to be easily accessible from the whole of the

Borderlands area, and there may, therefore, be an opportunity to improve air travel

access within the area.

Sectoral Base

As shown in the socio-economic baseline, the Borderlands has a significantly larger

share of businesses operating within the primary industries than either the Scotland

or England averages. Despite this, employment within these sectors is comparatively

low – e.g. 22% of businesses operate within the ‘agriculture, forestry & fishing’

sector, yet this sector accounts for just 0.5% of total Borderlands employees. One

explanation for this could be a high number of very small businesses operating

within the sector who employ few staff.


This high concentration of (small) businesses could also make the area more

vulnerable to shocks and price changes within the agriculture market, as well as to

external factors such as foot-and-mouth disease, which had a devastating impact on

the area in 2001.

There are, however, also opportunities within the sectoral base of the Borderlands –

as outlined earlier, the area has strong tourism assets, and if the underlying tourism

infrastructure was developed, there may be further growth opportunities within this

sector – in both volume and value.

Skills Constraints

As shown in the socio-economic baseline, there is a good provision of FE Institutions

and Campuses within the Borderlands, however, opportunities for HE are lacking

somewhat, particularly around mainstream subjects - e.g. anecdotal evidence

suggests that some young people are leaving the area to access HE provision at

more established universities or campuses, or to study subjects not taught in the

area such as medicine, some engineering courses etc. This means that residents

who wish to study at university may need to leave the area to access these

opportunities.

There is an issue of how many of these young people return after their university

experience of more urban living, personal relationships formed, and access to

employment and salaries. If graduates had opportunities that encouraged them to

return to the Borderlands, they would bring back a range of skills, experience and

knowledge which would help to strengthen the local economy.

In encouraging graduates to return, it is important to ensure that an appropriate

mixture of amenities and opportunities are available to them – a diverse economy;

suitable employment opportunities; competitive salaries; affordable housing; social

and leisure amenities; transport connections, etc.

Digital Connectivity

As shown in Figure A.8, broadband provision across the Borderlands is generally of

a poor quality – particularly in relation to the surrounding local authority areas.

Broadband coverage is uneven within the Borderlands, being worse within the

Scottish local authority areas.


Figure A.8: UK Fixed Broadband Map 2013

Source: OFCOM

Table A.16 details broadband provision across a range of indicators.

Northumberland is the best performing area in terms of broadband, whilst

connectivity is especially problematic in Dumfries and Galloway – particularly in

terms of superfast broadband connectivity.

Table A.16: Broadband provision scores, 2013

Average sync

speed (Mbit/s)

% not receiving 2Mbit/s

Superfast availability Take-up

Superfast take-up

Northumberland 10.5 13.8% 49.6% 71.1% 6.2%

Scottish Borders 10.3 10.7% 20.3% 70.1% 4%

Cumbria County 8.4 16.3% 26% 69% 1.9%

Dumfries and Galloway 8 12.9% 6% 66.6% 0.4%

Source: OFCOM


Summary

Whilst the population of the Borderlands has decreased since 2010 (by 0.2%),

population has actually increased nationally in both Scotland and England. This

decrease has been driven by a reduction in the number of people of a working age

and of those aged under 16, with an increase in those of pensionable age.

The Borderlands has a higher share of people aged 65 and over compared to both

England and Scotland – 23% compared to 18% for both countries.

Total employment within the Borderlands in 2014 was 418,769, representing an

increase of over 6,000 jobs since 2010 (2%). This rate of growth is, however, lower

than at the English and Scottish levels (both 5%).

There has been significant value increases in employment in both the

accommodation and food services (c. 6,700) and health (c. 5,600) over this period;

with significant value decreases in public administration and defence (c. 5,650) and

education (c.3,100).

The Borderlands has a higher proportion of employment within the manufacturing

(14%) and accommodation and food sectors (12%) than both England and Scotland,

with a lower share of employment within the business administration and support

services sector (4%).

As of 2015, the local business base stood at just over 45,700, however growth of just

8% since 2010 was half that of the Scottish level, and 10% pts lower than at the

English level.

The Borderlands has a significantly higher share of businesses operating within the

‘agriculture, forestry & fishing’ sector (22%) in relation to both Scotland (10%) and

England (5%), with a smaller share of businesses operating in the ‘professional,

scientific and technical’ and ‘information and communication’ sectors.

Total Borderlands GVA for 2014 was c. £20bn, an increase of 12% on 2010. Much of

this GVA is generated through four key sectors – production (23% of total GVA);

distribution, transport, accommodation and food (21%); manufacturing (20%); and

public admin, education and health (19%).


Educational attainment among school pupils within the Borderlands is strong, and

competitive with the national figures, and is currently ahead of national attainment in

both England and Scotland. Whilst the Borderlands has a lower share of people

educated to degree or HE level, the working age population within the Borderlands is

becoming more highly educated, with the number of people educated to degree level

increasing since 2010.


Appendix B: Policy Analysis and Rationale for

Intervention

This section provides a summary of the Borderlands Initiative fit with, and

contribution to national and regional economic development policy.

Strategic Fit and Contribution

The Borderlands Initiative has a strong fit with, and will contribute to delivering both

national and regional policy objectives and priorities.

English and Scottish National Level Policy

Department for Communities and Local Government, Single Departmental

Plan: 2015 to 2020

Through increased devolution to the English regions, DCLG is aiming to enable a

shift in power to local government. This will enable local communities to have more

control over housing, skills, and transport, and DCLG will support local authorities to

help create strong local economies and deliver high quality services.

The four key priorities for DCLG to achieve this are:

Driving up housing supply – the proposed transport and digital infrastructure

activity will make the region more accessible and therefore open up development

sites and opportunities that will attract new investment to the region, including

residential development.

The Initiative also has a strong focus on place-making - ensuring that regeneration is

not just physical development but is more about creating sustainable and attractive

communities - creating places people want to live.

Increasing home ownership - A lack of affordable housing has been identified as a

constraint on population retention and growth in the region. Releasing sites and land

through improved connectivity will help support the delivery of affordable and mixed

tenure housing.


Devolving powers and budgets to boost local growth in England – The

Borderlands Initiative will complement and enhance the current and planned activity

across the region, including, the devolution agreements, the North East and Cumbria

Growth Deals, and the Northern Powerhouse proposals.

The Borderlands Initiative will help bring together strategic regional and local

stakeholders/partners to ensure that activity is directed towards delivering against

local priorities and achieving growth at the local level.

Supporting strong communities with excellent public services – While the

Initiative will not provide direct support, there is an advocacy role to support the

delivery of the devolution agreements across Cumbria (not confirmed) and the North

East- which have a strong focus on ensuring public sector services meet the needs

of the local communities.

HM Treasury, Fixing the foundations: creating a more prosperous nation

(2015)

The UK Government’s approach to raising productivity has two pillars:

encouraging long-term investment in economic capital including

infrastructure, skills and knowledge; and


promoting a dynamic economy that encourages innovation and helps

resources flow to their most productive use.

Underpinning each of these pillars are a number of priorities, of particular relevance

are:

encouraging long-term investment:

o business investing for the long-term – this will help the Government

to create the right conditions to support long-term business

investment. This will help to attract new businesses to the region, as

well as strengthening the existing business base across the

Borderlands

o skills and human capital – addressing long-standing skills

weaknesses within the UK workforce will help develop a diverse

pool of skilled labour across the country. This is particularly

important in the Borderlands, to help grow and diversify the business

base

o economic infrastructure – improving the digital infrastructure will help

more businesses and homes in the Borderlands connect to the

telephone and broadband networks, and so improve connections to

markets

o ideas and knowledge – investing in innovation and the knowledge

economy will help generate highly skilled and high value

employment, and help to diversify and grow the local business base;

and

promoting a dynamic economy:

o flexible and fair markets – additional affordable housing stock will

help meet growing demand for housing, and will contribute to

helping to attract and retain people in the Borderlands – particularly

young people. Further, coupled with investment in physical

infrastructure, this will help to open up new sites for development

o openness and competition – making it easier for businesses to

operate, invest, and grow will serve to strengthen the local business

base, and may attract more businesses to the region.


This will also help the region to attract and capitalise on international

investment, particularly in existing sectoral strengths and

opportunities, such as food and drink, tourism, and energy.

Conservative Government and Inclusive Growth Commission

Upon her appointment as Prime Minister, Theresa May pledged to fight injustice and

inequality, outlining her vision of a “country that works for everyone”23

. This vision

outlines a need for ‘serious social reform’ to ensure that the Conservative Party puts

itself at the service of ordinary working people.

Delivering this pledge is only achievable through making inclusive growth a priority

for the Government, and may require a shift in how deliver economic development:

“We don’t just believe in markets, but in communities…we don’t just believe in

individualism, but in society”.

As recent Inclusive Growth Commission report (2016)24

states:

“Too many people are being left behind, and this is now the biggest economic

challenge facing our society”.

This report sets out some short-term objectives towards achieving inclusive growth:

Inclusive Devolution and the Autumn statement – an opportunity for the UK

Government to set out the next phase of devolution, and how this can be

used to promote inclusive growth. There are clear opportunities for the

Borderlands region here, arising through increased devolution for the

English regions;

investment in social as well as physical infrastructure – putting social capital

on a par with traditional physical infrastructure. This will ensure that

communities within the Borderlands are equipped to develop and attract the

services, facilities and people to thrive;

putting inclusion in industry strategy – an opportunity for the Government to

make inclusion a key tenet of its forthcoming industry strategy.

23

Conservative Party Press Release (2016); ‘We can make Britain a country that works for everyone’. Available online. 24

The RSA (2016); ‘Inclusive Growth Commission: Emerging Findings’. Available online.

http://press.conservatives.com/post/147947450370/we-can-make-britain-a-country-that-works-for

https://www.thersa.org/discover/publications-and-articles/reports/emerging-findings-of-the-inclusive-growth-commission


The IGC recommends a strategy which invests in physical and human

infrastructure, and sees these are interlinked. The IGC also recognise the

importance of raising skills and capabilities in the lower and middle ends of

the labour market. The key focus of the Initiative is distribution of opportunity

and linking the strategic priorities of physical infrastrucutre and human

capital (skills)

economic policy and measurement frameworks that prioritise inclusive

growth – The IGC suggests a need to change economic policy to reflect

wider growth benefits – e.g. adopting use of ‘quality GVA’ as a measure for

growth, as this will measure change in inequality and the impact of

investment on deprived populations. The success measures of the

Borderlands will be wider and more inclusive than simply economic output.

Scottish Government, Scotland’s Economic Strategy, Refreshed (March, 2015)


The Initiative will contribute to the four strategic priorities of the Scottish

Government’s economic strategy:

Investing in people, infrastructure and assets - The Initiative has a strong focus

on investment – the priority projects for Borderlands have an emphasis on land and

property development for growing the business and employment base, and

enhancing the transport and digital infrastructure as essential ‘hygiene factors’ for

driving economic growth and attracting new investment.

Foster a culture of innovation – alongside direct intervention to support the key

sectors - Agriculture, Forestry, Tourism, Advanced Manufacturing, Energy, and Food

and Drink, and the development of broadband and digital connectivity across the

region will help enable business to adopt new and innovative ways of working,

historically a barrier for many businesses based in the Borderlands.

Promote inclusive growth – Borderlands activity is focused on providing and

promoting access to: the labour market and sustainable well paid jobs; education

and training opportunities; and housing and public services – in particular supporting

groups that face barriers to participation such as young people. The focus if the

Initiative is making sure that every person, business and community has an

opportunity to succeed and ensure the region does not fall further behind.

Enable Scotland to take advantage of international opportunities - Through a

collaborative partnership approach the Borderlands region is stronger and more

competitive, promoting and ‘selling’ the advantages of the region to international

investors – developing the Borderlands brand.

Improvements to the road and rail infrastructure will enhance the connectivity with

international airports such as Edinburgh, Newcastle, Glasgow Prestwick, and

Glasgow International that have connections to major international hubs.

Regional Policy Fit

We have identified the key economic development policy across the region and

identified the cross cutting challenges and policy responses, please see below.


Figure B1: Regional Policy and Challenges


Table B1: Contribution to Regional Policy

Policy Priority Strategic Fit and Contribution

Strengthening the business base and increase levels of business start-ups and entrepreneurism

Creating a supportive business environment will be key to the success of the Borderlands, in order to encourage investment (domestic and foreign), attract new, and retain current businesses.

The Initiative can support the business base through investing in sites and infrastructure, and linking-up with existing enterprise initiatives to support local people to access the labour market.

Diversifying the local business base Diversifying the local business base will make the local economy more resilient and sustainable. This will also help to create new jobs and opportunities, and may attract people with new skills and expertise to the area.

Growing the key sectors across the region

Activity delivered through the Initiative will help create the ‘right’ economic conditions to grow the key sectors, whether that is through infrastructure/site development, improving transport and digital connectivity, promoting the region to investors or developing the skills base.

Improving the transport and digital infrastructure – enhance connectivity across the region

Developing the transport and digital infrastructure across the Borderlands would contribute towards sustainable economic growth in the wider region. Improving transport links will improve connectivity, reduce costs and reduce distances to markets and commercial centres of opportunity (both physical distances and through improved digital connectivity).

The Initiative will have both a direct and advocacy role in delivering new infrastructure across the region to enhance competitiveness, and will be a key driver for attracting new investment to the region.

Improving the skills base within the workforce

Learning and skills are key issues both for Borderlands partners and local industry sectors alike. Access to a significant pool of skilled labour to supply businesses will be crucial for the success of the Borderlands – in particular, for growing and diversifying the economic base.

The Initiative will contribute to this through developing stronger formal and informal links with the wider FE/HE sectors and supply chain, to ensure the supply meets the demand in terms of skills and experience requirements.

Target specific opportunities and places

The Initiative will build on the assets of the region to help develop the ‘branding’ of the Borderlands as a place for both people (to live, to work and to visit) and for businesses (to operate from and to invest within).


Appendix C: Wider Public Sector Activity

In designing and preparing the Borderlands Initiative it is important to take account of

the wider activity that is being developed and/or delivered across the Borderlands

(and beyond). This will help identify areas of synergy and potential partnership/

collaboration (potential to achieve economies of scale) but also minimise duplication

of activity.

Key Action: It is recommended that an early task to be completed by the

Programme Manager is a mapping exercise on current/ planned activity across, and

on the periphery of, the region.

In order to provide some context as to the focus, scale and scope of the Borderlands

initiative we have provided a summary of the key activities that are proposed or are

being delivered across the Borderlands:

Edinburgh and Lothians City Deal

The Edinburgh and Lothian City Deal is a partnership that combines the six local

authorities of Edinburgh, West Lothian, Midlothian, East Lothian, Fife and the

Scottish Borders. It is a mechanism for leveraging additional public and private

sector investment to drive economic growth with a focus on in infrastructure, skills

and innovation. The Initiative aims to secure c. £1 billion of public funding which will

help release a further £3.2 billion in private sector investment over a 20 year period.

The Vision for the Initiative is:

“In a fast-changing world we will create a region where investment, intellect and

culture will fuse to create new ways of doing things.

In the next 20 years the Edinburgh and South East Scotland City Region will become

the most connected, creative, inclusive and entrepreneurial place in Europe. We will

build a network of businesses, universities, technical and creative skills attracted by

a great lifestyle and cultural offer.”


Some of the key activities to be delivered through the Initiative include:

developing a regional network of incubator facilities;

enhancing regional collaboration to expand exporting;

invest in infrastructure to protect and enhance the world famous culture and

leisure assets in the region including the Edinburgh Festivals; and

developing an integrated regional skills programme to increase opportunities

for learning and development for everyone.

Further information is available here: http://www.acceleratinggrowth.org.uk/.

North East Devolution Agreement

The North East Devolution Agreement emerged from the Cities and Local

Government Devolution Act, 2016. The North East devolution deal includes the

transfer of powers over transport, strategic planning, employment and skills from

central government to the region – led by an elected mayor (elections due to take

place in 2017) and supported by a programme board consisting of senior members

from the relevant local authorities. The North East Combined Authority includes;

Newcastle City Council, Sunderland City Council, South Tyneside Council, North

Tyneside Council Durham County Council, Gateshead Council and Northumberland

County Council.

The deal provides a significant boost for the region - £30m per annum over a period

of 30 years, £900m in total (unadjusted).

The specific powers identified for the North East Combined Authority include:

to create a North East Combined Authority Investment Fund, bringing

together funding for devolved powers and used to deliver a 15 year

programme of transformational investment in the region;

control of a new £30 million a year funding allocation over 30 years, to be

included in the NECA Investment Fund and invested to boost growth;

http://www.acceleratinggrowth.org.uk/


joint responsibility for an Employment and Skills Board, that will undertake a

comprehensive review and redesign of the post-16 education, skills and

employment support system in the North East, delivered through the area-

based review of post-16 provision, devolution of adult skills funding by

2018/19 and co-design by government and NECA of employment support

for harder-to-help claimants;

responsibility for a devolved approach to business support from 2017, to be

developed in partnership with government, and further devolution of UKTI

export advice services;

joint responsibility for the rollout of broadband across the North East; and

increased devolved responsibility for rural growth.

Further information is available here:

https://www.gov.uk/government/publications/north-east-devolution-deal

Cumbria Devolution Deal

The Cumbria Devolution Deal also emerged from the Cities and Local Government

Devolution Act, 2016 and sought to transfer powers including, transport, highways,

planning, enterprise, skills and tourism to a new mayor and a combined authority

board. The Cumbria Devolution deal includes seven councils (and other bodies),

Allerdale Borough Council, Barrow Borough Council, Carlisle City Council, Copeland

Borough Council, Cumbria County Council, Eden District Council, South Lakeland

District Council, Cumbria LEP and the Lake District National Park Authority.

The High Level Proposition document which is the basis for further negotiation with

the UK Government has identified potential activity across the following priorities:

economic growth;

transport and infrastructure;

learning, skills and employment;

housing;

health and social care;

public safety and resilience; and

https://www.gov.uk/government/publications/north-east-devolution-deal


management of the public estate.

Some of the early activities identified within the high level proposition for the Deal

include:

release of capital receipts from the Moorside development and the provision

of future business rate growth (or the equivalent) from the nuclear new build,

as well as resolving the outstanding business rates appeals issues related to

Sellafield;

creation of Investment and Infrastructure Funds from forward commitments

of Growth Programme funds, longer term transport allocations and future

business rate growth;

buyout of PFI schemes related to the health estate;

establish a new relationship with the Skills Funding Agency and HEFCE to

secure long-term commitment to their programmes;

develop and agree a Rural Productivity Plan with DEFRA;

early discussions with DCMS to deliver the Prime Minister’s 5 year Plan for

Tourism in Cumbria;

a 5 year Housing Investment Fund from the HCA; and

greater local oversight of the Criminal Justice system in the county.

It should be noted that as of June 2016 there has been no formal decision on the

proposals for a Cumbria Devolution Deal to progress – the initial agreement offered

by the UK Government was rejected in February 2016.

Further information is available here: http://www.cumbrialep.co.uk/wp-

content/uploads/2015/09/Cumbria-Deal-Final-040915.pdf

Local Growth Deals

In 2014 and 2015 the UK Government announced the introduction of Local Growth

Deals (£1 billion funding devolved from central Government) to support economic

development across England.

http://www.cumbrialep.co.uk/wp-content/uploads/2015/09/Cumbria-Deal-Final-040915.pdf

http://www.cumbrialep.co.uk/wp-content/uploads/2015/09/Cumbria-Deal-Final-040915.pdf


The Growth Deals will be managed by the LEPs and access funding from a central

pot with a focus on developing interventions across skills, infrastructure and housing.

The funding period for project activity is 2015 – 2021.

Cumbria Growth Deal

Funding: £26.8m.

Estimated private sector funding leveraged: £50m.

Priority projects:

Advanced Manufacturing Technology Centre at Furness College – to

equip Cumbrians with the skills to take up the expanding opportunities at

BAE and within the supply chain for major manufacturers;

Sustainable transport measures – to optimise connectivity within Cumbria,

particularly around key visitor arrival points and visitor attractions around

Windermere and Grasmere;

Remediation and improvement of the Barrow Waterfront site – enabling

growth in this key centre of manufacturing. Transport improvements in and

around Kendal facilitating housing development and business growth;

Junction improvements to increase capacity in South Ulverston – to

support the expansion of GlaxoSmithKline and housing development;

Nuclear Technology Innovation Gateway – an innovation and support

centre for the nuclear industry bringing together the National Nuclear

Laboratory, research activities from the University of Manchester and other

facilities; and

Durranhill Industrial Estate – access improvements to enable business

expansion and the revitalising of this enterprise asset.

North East Growth Deal

Funding: £329.9m (this includes additional funding of £117.5 m awarded in 2015/16).

Estimated private sector funding leveraged: £130m.


Priority projects:

National Centre for Healthcare Photonics – creation of a facility for a

national centre to develop and commercialise photonics based therapies.

The facility will be led by CPI part of the High Value Manufacturing Catapult;

River Tyne Economic Development – this project will prevent and remedy

on-going contamination (from historic sites) on the river Tyne to allow

additional development on the riverside;

Sunderland Central Business District – the creation of central business

district/urban quarter to link city centre to river Wear;

Newcastle Life Sciences Incubation Hub – lab and office space to support

businesses in life sciences and related sectors;

Northumberland College – advance Manufacturing Centre. Upgrading the

facilities at Northumberland College to improve skills levels and support

economic growth in key sectors such as advanced manufacturing,

renewables and ICT;

Newcastle Gateway 24/7 Centre – new entry portal to the college to allow

increased vocational resource workspace and provide a new library and

learning centre;

Sunderland Enterprise and Innovation Hub – Enterprise and Innovation

Hub, comprising the first ‘Fab Lab’ in the North East, incubation spaces and

workshop, office and laboratory space for manufacturing, creative and

science-based businesses;

Merchant Park 2 – support inward investment and supply chain

development adjacent to the future home of Hitachi Rail Europe;

Rural Growth Network infrastructure – a project to plug infrastructure

gaps in key rural market towns and to grow the innovative, community-led

network of rural enterprise hubs to support rural business growth;

Swans Wet Berth Infill – to create development land with quay frontage

within the Swans site of the North East Enterprise Zone, thereby increasing

availability of commercial land available for priority sectors;


a North East innovation programme – a package of five projects to

support and drive innovation in the LEP area: (1) Newcastle Life Sciences

Incubation Hub; (2) NETPark Infrastructure Phase 3; (3) Low Carbon Energy

Centre; Newcastle Science Central; (4) Sunderland Enterprise and

Innovation Hub; (5) The Centre for Innovation in Formulation;

a skills improvement package – five projects to increase skills levels in

key sectors: (1) Tyne Met College; (2) South Tyneside College; (3) Port of

Blyth Offshore and Wind Energy Training Facility; (4) Newcastle College

Group: Low Carbon Tech Centre; (5) East Durham College;

a transport improvement programme – nine strategic transport projects

starting in 15/16: (1) Northern Access Corridor: A189/A191 Haddricks Mill;

(2) Newcastle Central Metro Station Refurbishment; (3) A19/A194/A1300

Lindisfarne Roundabout; (4) Newcastle Central Station to Stephenson

Quarter; (5) A191 Junctions (Coach Lane and Tyne view Park); (6) A19

Employment Corridor (Silverlink North); (7) A1 Corridor Scotswood

Bridgehead; (8) A1056-A189 Weetslade roundabout; (9) Local sustainable

transport fund package; and

A185/A194/A19 Traffic Movements (The Arches Junction) – Sunderland

Strategic Transport Corridor Phase 3; Western Relief Road Durham City;

Metro Enhancements; and A1/A19 Local Junction Improvements Package.


https://www.gov.uk/government/collections/local-growth-deals

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/39884

6/07_Cumbria_Growth_Deal.pdf

http://nelep.co.uk/wp-content/uploads/2015/01/North-East-Growth-Deal-January-

2015.pdf

The Northern Powerhouse

The Northern Powerhouse is a transport initiative/strategy for the North of England

developed by Transport for the North Partnership Board – a partnership with the

Northern city regions and LEPs, working together with Highways England, Network

Rail and HS2 Ltd as the Transport for the North Partnership Board.

https://www.gov.uk/government/collections/local-growth-deals

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/398846/07_Cumbria_Growth_Deal.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/398846/07_Cumbria_Growth_Deal.pdf

http://nelep.co.uk/wp-content/uploads/2015/01/North-East-Growth-Deal-January-2015.pdf

http://nelep.co.uk/wp-content/uploads/2015/01/North-East-Growth-Deal-January-2015.pdf


The plan will focus on developing and enhancing connectivity between the Northern

city regions and the areas of greatest commercial opportunity. The Vision and

Objectives for the Northern Powerhouse are:

1. To establish a single body, Transport for the North – to bring together all the

relevant parties to work in genuine partnership to establish a clear, long

term, strategic transport vision for the North of England that is shared by all

parties and allows the North to speak with a single voice and execute that

vision;

2. Transport for the North will develop a portfolio of strategic prioritised

transport investment opportunities to support economic growth at both the

national, and local level using robust appraisal methods; and

3. Transport for the North will co-ordinate efforts to achieve this strategy across

the North of England, and develop its own in-house capacity to ensure that

national and local bodies can work together with the whole being greater

than the sum of its parts. This should be underpinned by sufficient financial

certainty to enable effective forward planning, through a clear future budget

envelope to be agreed at the Government’s Spending Review in 2015.

There are six priority areas of intervention and activity:

rail;

highways;

freight and logistics;

integrated and smart travel;

air travel; and

local connectivity.


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/42733

9/the-northern-powerhouse-tagged.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/427339/the-northern-powerhouse-tagged.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/427339/the-northern-powerhouse-tagged.pdf


Appendix D: SWOT Analysis

From review of the baseline context, strategic contribution and market failure

rationale (See Appendix A –C) we have prepared a SWOT analysis for the

Borderlands region.

Strengths Weaknesses

common issues, constraints and opportunities across the region

sectoral strengths in food and drink, tourism, manufacturing and forestry

natural resources – coastal, forestry and renewables sector

high standard of living and good quality of life

good quality residential towns and villages

established tourism destinations and strong ‘branding’ at the individual place/ project level

access to open space, National Parks, and the coast

access to specialist FE provision e.g. agricultural colleges

parts of the region are well served by existing transport infrastructure

comparatively lower levels of income and productivity

business base that is vulnerable to external pressures – challenges with sector diversity

lack of identity and branding for the Borderlands as a region

digital connectivity is patchy – both mobile and broadband – and very poor in places

demographics – retention of young people and move towards ageing population

entrepreneurial activity – low level of business start-ups per head

lower number of the workforce with higher level qualifications

access to FE provision is limited in parts of the region

lower development returns than city regions

Opportunities Threats

sector opportunities –advanced manufacturing, nuclear and energy related – Sellafield decommissioning and Moorside Nuclear Power Plant, renewables, carbon capture and storage

potential for linkages with wider economic development activity – for example, Edinburgh City Deal, North East Deal, Northern Powerhouse

Borders railway connection – improving accessibility to Edinburgh

M74 connectivity – better north to south connectivity

A595/A75/A7/A1/A69/A68 – improvements will enhance access and movement across the region to jobs and education opportunities

numerous large development sites that have potential to create wealth and jobs

knock on effects from HS2

competition from central belt and north of England for economic investment and development activity

five partner local authorities and two national Governments – challenging to agree Programme activity –‘political’ pressures

public sector spending reductions and availability of resources

increase in 2nd

home ownership – drive up prices which will present further barriers to retaining young people

further, and increasing, decline in young people and working age adults – puts pressure on business sustainability and growth due to lack of workforce skills

further relative decline in digital connectivity – affects business opportunities, and satisfaction for visitors/ residents, particularly young people


Appendix E: Monitoring & Evaluation Framework

This section presents the suggested approach to measuring and capturing the

economic impacts and benefits of the Borderlands Initiative. The evidence gathered

will seek to:

help understand the signs of change and track progress towards achieving

economic growth;

help provide a robust assessment of economic development and growth

potential;

know if the project is making the difference you want;

learn from the project in order that we might share your experience with

other bodies and project sponsors; and

report to government and other stakeholders on the project and programme

impacts.

Routes to Impact

Please note, this Framework is a guide and will be refined and finalised after

engagement with the project managers and the planned activities (and therefore

outcomes) are better understood.

In thinking about what difference the Borderlands Growth might make, it may be

helpful to think of a “Logic Model” approach to how a Programme delivers final

outcomes (benefits). The usual approach is to think of the following steps in the

process:

Step 1: Resources/ inputs are needed to fund and deliver a project [Inputs];

Step 2: Once you have access to resources, you can use them to purchase

or fund a range of activities [Activities];

Step 3: If planned activities are delivered, then you can generate immediate

benefits or effects and planned outputs [Outputs]; and

Step 4: If planned outputs are achieved, then new or safeguarded jobs will

result from the intervention [Outcomes].


Measurement Framework

The Key Performance Indicators (KPIs) will measure the impact of individual project

activity (to allow for direct comparison) and the overall impact of the Initiative. The

indicators will be used to benchmark the expected outputs of various projects and

provide the Strategic Board with a greater understanding of the anticipated impacts.

The KPIs for measuring success are identified as:

increase in net attributable GVA;

return on Investment;

gross employment created or safeguarded;

increase in working age population;

increase in salaries; and

new public and private sector investment leveraged.

In addition, there will be bespoke quantitative and qualitative indicators across each

of the strategic priorities to measure the benefits and impacts of the Initiative.

Notes on the Framework

Key points to note for the Framework:

outcomes will be measured and reported at: individual project, Local

Authority, Corridor and Borderlands level; and

outcomes are measured at the gross level – the exception is net GVA and

the Return on investment.


Key Action: Partners to discuss and agree the structure for any payback models

and ensure the M&EF is linked and aligned to payback e.g. net GVA generated.


Inputs Activities Outputs Outcomes Outcome definition

Overall Programme level

1. Direct partner contributions 2. Investment leveraged through the Initiative 3.Investment leveraged from other public sources

4. Investment leveraged from other private sources

Increase in net attributable GVA

Net GVA is the out turn of the gross effects accounting for deadweight, displacement, leakage, substitution and multiplier effects

Return on Investment

Return on investment considered as the discounted net GVA returns set against the project costs over the Programme period – 10 years

Jobs created or safeguarded

Direct jobs that are created or safeguarded as a result of project activity

Increase in salaries

The new/safeguarded salaries associated with the jobs that have been created or safeguarded

Increase in working age population

The % uplift in the number of residents aged 16 - 64

New public and private

sector investment leveraged.

The amount of additional funding and investment that is leveraged in through the delivery of project activity


Inputs Activities Outputs Outcomes Outcome definition Notes

Qualitative indicators

Transport and connectivity

1. Direct partner contributions

2. Investment leveraged through the Initiative

3.Investment leveraged from other public sources


Railway station upgrades

Km of road upgrades

Km of new rail track, upgrades or existing routes brought back into service

Reduced journeys times

Land ‘opened up’ - strategic sites more attractive to development proposition

Investment leveraged

Reduced journey times - measured as the average reduction in journey times

Ha of land in ‘strategic sites’ that have potential to attract new investment (residential, commercial, leisure or retail)

Improved gateway to key destinations

Improved perceptions

Km new broadband fibre cable

% of resident population with access to high speed broadband

% of residents that have access to high speed broadband, defined as speeds above 30 Mbps


% businesses with access to high speed Broadband

% of businesses that have access to high speed broadband, defined as speeds above 30 Mbps

Km new 4G cable

% of resident population with access to 4G mobile coverage

% of residents that have access to 4G mobile coverage

% businesses with access to high speed 4G mobile coverage

% of businesses that have access to 4G mobile coverage




Place development and regeneration





Ha land prepared/redeveloped

Hectares of land taken-up - for development and occupation

Sqm of floorspace developed and occupied

Additional investment leveraged

TBC

Sqm of floorspace developed - commercial, retail, leisure, other

No. of residential units developed – private, affordable and social housing

Sqm public realm created or improved




Key sectors





Number of Businesses accessing support products/projects targeted at key sectors

Increase in the number of businesses in key sectors

Increase in turnover of businesses operating in key sectors

Increase in the number of jobs in key sectors

Increase in exporting activity

Key sectors defined: as Agriculture, Forestry, Tourism, Advanced Manufacturing, Energy, Food and Drink

Focus on higher value

TBC




Skills





Number of individuals accessing HE/FE

Number gaining degree or higher level qualification

TBC

% of working age population with degree level qualifications

Number of individuals receiving training

Number of trainees gaining an accredited qualification

Vocational qualification

Number of trainees securing employment

Modern Apprenticeships created




Promotion





Number of tourism/visitor projects supported

Increase in day visitors

Annual increase in visitors

TBC

Increase in visitor nights

Annual increase in visitor nights

Increase in visitor spend

Annual increase in visitor spend

Branding and promotion campaigns


Appendix F: The Business Case Development

and Approval Process

This section provides an overview to the project approval process, see Figure F1.

Figure F1: The Business Case Development and Approval Process25

The Project Approval Process

In order to ensure that projects and activities contribute to delivering against the

strategic objectives and priorities of the Borderlands initiative, it is crucial to

implement a robust project approval process. As highlighted in Figure F1, there are

three suggested stages or ‘Gates’ for projects to be assessed and appraised.

25

Public Sector Business Cases Using the Five Case Model - Delivering Public Value from Spending Proposals

(HM Treasury) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/469317/green_book_guidance_public_sector_business_cases_2015_update.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/469317/green_book_guidance_public_sector_business_cases_2015_update.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/469317/green_book_guidance_public_sector_business_cases_2015_update.pdf


Developing and Approving the Case for Investment

It is the role of the project owner(s) to prepare the case for investment (Strategic

Outline Case, Outline Business Case, and Full Business Case). Where appropriate,

the project owner can co-opt support from; the Thematic Advisory Groups, internal

resources (for example, within the Local Authority) or external specialist support

services (e.g. consultancy services).

The project case will be submitted to the Strategic Board for review and approval.

There are three possible outcomes at the end of each approval stage/Gate:

approved;

approved with recommendations or conditions; or

rejected.

The tables below provides a breakdown of the information, data and evidence

requirements for each Gate for projects to secure approval – this is based on

comparator regional growth models and what is likely to be expected from funders.


Gate 1: Strategic Outline Case – Information/Data Requirements

Project name

Type of project

Transport

Broadband and digital connectivity

Developing industrial sectors

Economic regeneration and development

Investments to attract visitors

Energy

Other e.g. housing, towns, branding

Project description

Contribution to Borderlands strategic priorities

Linkages to strategic priorities Strong Medium Weak

Contribution to policy/strategic fit (Nat/ Regional/Local)

Potential to address market adjustment

Evidence of demand

Strategic objectives

Lead LA

Corridor area

Costs over project lifetime Capital Revenue

Potential to generate income How, one-off/ongoing, how much, from who, who gets, when

Potential to leverage additional funding Split public and private

Any long-term liability/burden for public sector e.g. road maintenance

Timescale for delivery/completion

Delivery partners

Risk and dependencies

Expected outcomes and targets

Wider activity in the region that may impact upon project, or be impacted by it Also need to say whether +ve / -ve impact

Qualitative review of additionality

Deadweight

Displacement

Leakage

Supply chain effects High Medium Low

Potential to release development land, if yes how much, brown/greenfield, and for what likely use

Any background research papers/studies or appraisal/evaluation studies


Gate 2: Outline Business Case – Information/Data

Requirements

Key Tasks

Strategic Case

Project description

Project specification

SMART targets and objectives

Identify key national and regional strategy, and evidence the project’s fit and contribution

Identify and present evidence of market failure (the root cause and the impact upon constraining the ‘optimum outcome’) and highlight the project’s capacity to promote market adjustment

Economic Case

Options appraisal – testing of delivery scenarios based on an agreed scoring Framework, including the ‘do nothing option’ and identify the “preferred option”

Economic impact appraisal of options, to include: jobs, GVA and salaries

Impacts and benefits reported at the local authority and Borderlands Programme area:

o gross effects o net effects taking account of: deadweight, displacement,

leakage and substitution effects – the additional effects

Net Present Value (NPV) of GVA effects

Cost Benefit Analysis

Commercial

case

Market overview

Assessment and quantification of demand

Impact on competing supply

Financial case

Cash flow statement over the project lifetime to consider: o sources of funding o capital costs o revenue costs o revenue generated o the capital value of asset at end of project timescales (if

appropriate)

Net Present Value over project lifetime

Management

case

Timescales, deliverables and milestones

Partners, stakeholders and dependencies

Governance and management structure

Approach to procurement

Staffing (if appropriate)

Risk register


Gate 3: Final Business Case

The Final Business Case (FBC) is prepared for final approval after the tender costs

of the project are known and timescales for delivery can be defined. It follows a

similar structure as the OBC, however, requires the project owners to provide further

detail and information around the following:

revisit the SOC and OBC to assess and update the main findings and

recommendations, for example, have costs changed and is the “preferred

option” still considered the most economically advantageous;

develop the procurement strategy – ensuring ‘best value’ for the public

sector;

agree and finalise any commercial or contractual obligations – i.e.

confirmation of tender costs; and

ensure the detailed operational and management structures and monitoring

Frameworks are in place to support the implementation and delivery phases.

Documents

The Borderlands Inclusive Growth Initiative: A Framework ...egenda.dumgal.gov.uk/aksdumgal/images/att43382.pdf · Direct enquiries regarding this report should be submitted to: Chris