Agenda item 5 - LEP and devolution update

Chief Executives' Group - North Yorkshire and York
18 November 2022

LEP and devolution update


1. Purpose of the Report 

1.1 To update on the LEP Delivery in 2022/23 and provide a briefing on progress with the devolution deal.


2. Summary

2.1     Annex A provides the LEP Delivery Plan on a Page.

2.2     The primary priorities for the LEP in 2022/23 is to;

  • Deliver the Plan for Growth & Investment Plan; and
  • Secure sign off for the Routemap to Carbon Negative
  • Support devolution,
  • retain its track record on delivery


3.0     Delivering the Plan for Growth and Investment Plan

3.1     As detailed in September, the LEP focus was on supporting the development of the Shared Prosperity Prospectus. Final decision is awaited from government and implementation is being planned.  

3.2     The Plan for Growth will be reviewed against the emerging needs of the proposed York and North Yorkshire devolution requirements to ensure it fits   within a wider suite of strategies

3.3     Reflecting the potential of the Shared Prosperity Fund, the LEP is also developing plans with a view to maximising potential. These include

    • Inward Investment
    • Expanded Growth Hub
    • Grow Yorkshire
    • Key sectors


4.0     Routemap to Carbon Negative

4.1     The Routemap to Carbon Negative has been approved by the LEP Board and engagement is ongoing with both City of York and North Yorkshire Council.

4.2     City of York plan to take the routemap through their approval route alongside their own Climate Change Strategy in Jan 23. Initial engagement with NYC Cabinet has taken place and further work is required to clarify the NYC role within the Routemap.

4.3     An additional resource has been recruited across Yorkshire & Humber to work with all Local Authorities on the potential of the Circular Economy. Andrew Gadd is now in place.


5.0     Delivery

5.1     Growth Hub – The Growth Hub continues to work across the region supporting businesses with their growth plans. A change in criteria has enabled the growth hub to extend its support to non-sme businesses which is enabling a more strategic relationship in some key areas.

5.2     The Growth Hub is also working closely with partners including;

  • Delivering grant funding for with Harrogate & York
  • Co-funded posts with Craven & Scarborough; and
  • A funded post through York st Johns University.

5.3     Work is underway to consider a Shared Prosperity Fund bid to extend and enhance provision across the region.

5.4     Inward Investment – The inward investment officer continues to develop working closely with Local Authority partners. Invest in York and North Yorkshire is now an active brand and feedback from the Rolls Royce proposal was that this came across well and was well received.

5.5     Careers & Enterprise Company – The CEC programme continues to deliver and is one of the highest performing programmes in the North. All Schools and Colleges are engaged.

5.6     Skills Advisory Panel – As previously reported, the LEP was awarded £50k to update the skills evidence base and to support development of the Local Skills Improvement Plans through the Chamber of Commerce. The LEP is working alongside NYCC and CoYC to ensure a single collective voice in influencing the plans being developed in the region. The Chamber are still awaiting confirmation of their funding from Government, however as a region we are well engaged.

5.7     Community Renewal Fund – The CRF programmes remain on track to deliver with the majority of workstreams due to report in Q3 2022.The Local Area Energy Plans are now in draft format and have been presented to stakeholders including Local Authorities. These will be refined with the final reports published in the new year.

5.8     The outcomes of this work has informed the priorities for the £7m devolution net zero funding and support further engagement with government and the National Infrastructure Bank


6.0     Devolution

6.1     The devolution programme team are focused on both the creation of the MCA Organisation and delivering on the commitments within the deal.

6.2     For the purposes of clarity the programme team have separated activity as:


Securing the requiring approvals and developing the formal constitution, assurance and democratic services functions.

Building the MCA

Scoping and commissioning the systems and procedures required to run the organisation


Funding the implementation phase and developing a Medium-Term Financial Plan


Formal TUPE Considerations & recruitment strategy

Implementing the Deal

Implementing the commitments agreed through the negotiations of the asks process.

Shadow Assurance Framework

How projects will be identified and prioritised prior to the creation of the MCA

Police, Fire & Crime Commissioner

The PFCC is an existing legal entity (two corporations sole – the Local Policing Body and the Fire & Rescue Authority).

with independent funding streams. A separate workstream will plan the transition of the PFCC under the Mayor and into the MCA.


Core Principles

6.3 In developing the headline plan the following have been taken into account:

  1. The deal is currently a ‘minded to’ deal and is subject to three formal decisions by the constituent Authorities before it is submitted to Whitehall. The first two decisions were taken in September 22 with the final decision - to consider the consultation responses and approval of a final Scheme for submitting to Whitehall – expected to take place in Feb 23.
  2. Once submitted to Whitehall, the submitted Scheme will be subject to central government due diligence, prior to an order created, approved by constituent Authorities and then passed in Parliament, expected Nov 23
  3. Any activity or costs incurred prior to Nov 23 are at risk, however assuming the deal progresses and the Order is passed in Parliament, the costs can be recouped from both capacity funding and Mayoral Investment Funding. 
  4. Considering the above we estimate the level of risk to be:

Phase 1:

Aug –Sept 22

No formal governance decisions taken by constituent Authorities.

High Risk


This phase ends when both NYC and CYC have approved the governance review and scheme paper.

Phase 2:

Oct 22 – Feb 23

Awaiting public consultation results and final decision by constituent Authorities.

Medium Risk


This phase ends when the consultations responses have been considered and both NYC and CYC have approved a final scheme to submit to Government.

Phase 3:

Mar 23 – Nov 23

Formal Scheme submitted to Whitehall and Order being developed.

Low Risk


This phase ends when the Order is passed in Whitehall, the MCA legally formed and the initial funding is drawn down from Government.


6.5    Considering the above assumptions, the principles used to develop the plans are therefore

  • No additional implementation costs to be incurred before Phase 1 is complete.
  • Any costs incurred during Phase 2 should be restricted to activity which
    • Is required to support the formal decision making process; or
    • Is required to meet the statutory responsibilities of the MCA within the timescales detailed in the plan; or
    • Is required to ensure the financial aspects of the deal can be delivered, in particular the expenditure which must be defrayed within the current CSR period
  • A maximum budget for Phase two has been agreed at £600k, to be signed off jointly by the CYC and NYC S151 Officers.
  • Costs which will be incurred in Phase 3 will be subject to a costed plan to be approved and may include the above plus additional activity which optimises the deal and positions YNY for future investment.

6.6     The devolution consultation is now live. At the time of writing (two weeks in) we have had c.750 responses with c.2/3 in support, consistent across the range of issues.

6.7     By comparison South Yorkshire received 675 responses in total, West Yorkshire received 4,300 and Tees Valley 1,160. The York and North Yorkshire consultation continues until 16 December.

6.8     A broad range of communities and business groups are being engaged including a minimum of one drop in event in each district. These will be reviewed through the process to ensure we are demonstrating sufficient reach. The consultation platform can be accessed at

6.9     In addition, following the formal governance decisions by North Yorkshire and City of York to accept the deal and agree the scheme for consultation, a Joint Committee has also been formed to lead implementation of the deal. The committee will meet for the first time on 30 November with papers on;

  • Terms of reference
  • Over-riding principles
  • HR & Workforce
  • Governance Update; and
  • Implementing the deal – agreeing the scope for brownfield and net zero funding.

6.10    Agreeing the scope for brownfield and net zero funding will enable an expression of interest process to commence at risk. This reflects that whilst the funding will be received c.Dec 23 when the MCA is formed, delivery has to complete within this CSR period (i.e complete by Mar 25). We therefore want projects approved as early as possible to increase the deliverability of the funding once received.

6.11    The MCA will be responsible for the Strategic Transport Plan for the region and a working group across NYC and CYC has been formed to develop both the strategic plan and also local LTPs.


7.0     Recommendations

3.1     Chief Executives are asked to note LEP progress against its delivery plan and promote the devolution consultation through their networks



Annex A: LEP Plan on a page