leadership essentials: planning delivering economic growth
DESCRIPTION
A presentation from the Planning Advisory Service's Leadership Academy for English Councillors.TRANSCRIPT
Leadership Essentials: Planning Delivering Economic Growth
Steve Barker - PAS
October 2014 www.pas.gov.uk
Housekeeping
• Start / Finish• Food / Refreshments• Phones• Toilets• Fire• Q&A
What is Planning Advisory Service for?
“The Planning Advisory Service (PAS) is part of the Local Government Association. The purpose of PAS is to support local planning authorities to provide effective and efficient planning services, to drive improvement in those services and to respond to and deliver changes in the planning system”
(Grant offer letter for 2014-15)
Key Facts
• Started in 2004• Funded by DCLG• 11 staff. Supplier framework. Peer community.• Always subsidised. Mostly without charge.
• Non-judgemental. Not inspectors• Respond to reform. Keep you current• Support, promote, innovate
PAS 2013/14 impact assessment results1,890 responded to our surveys and the headline results are that PAS:• are worth using: 97% rated our service a good use of their
time• remain relevant: 88% think we are and are getting even
more so • help people improve: 92% said we improved their ability to
do their work• have depth in the sector: 75% shared information they
received from us. • provide value for money: 88% felt our service was value for
money.
Objective
• This programme is designed to look at how planning services can support the delivery of economic growth. Looking at working with new businesses, working with LEPs, having joined up strategies, understanding the financial returns from planning decisions and recognise if the a planning service is aligned to support council objectives
The Agenda: day 1• Economic value of Planning
- Matthew Spry (Nathaniel Lichfield Partnership)
• Strategic Leadership of Place: Planning, LEPs & Local Economies - David Marlow (Third Life Economics)
• Group Good Practice & Presentations- the Group
7 pm Pre Dinner drinks in the Bar
The Agenda: day 2• Economic Growth and Public Services in Non-
Metropolitan England- Rebecca Cox (LGA)
• Planning Quality Framework exercise: understanding your service
- Martin Hutchings (PAS)
Lunch 1pmFinish
The experience in the roomFor returns• #’s of CILs – 4 in place, 4 being
produced or interest• #’s of plans – 13 local plans, 8
post NPPF• Over 170 years of local
government experience
On the walls
The Car Park
Acronym Score Sheet
We need your feedback
This is nice, but we want more
• We need to know what you think
• Comments triply welcome
• We read all of them• We use your ideas to
change what we do and how we do it
Follow-up evaluation• We employ Arup to follow-up on our work
– On reflection, was today actually useful?– 10 mins of feedback in return for £100’s of support
• Our board use this to decide what we do with our grant. If we don’t get positive feedback we are unlikely to continue
The Agenda: day 1• Economic value of Planning
- Matthew Spry (Nathaniel Lichfield Partnership)
• Strategic Leadership of Place: Planning, LEPs & Local Economies - David Marlow (Third Life Economics)
• Group Good Practice & Presentations- the Group
7 pm Pre Dinner drinks in the Bar
The Economic Value of Planning
• Matthew Spry
– Nathaniel Lichfield Partnership
Economic Value of Planning
Matthew Spry, Senior Director, NLP
16 October 2014
Economic Value of Planning
What role can planning play in stimulating economic growth?
Economic Value of Planning
About Nathaniel Lichfield & Partners
• RTPI Planning Consultancy of the Year (x3) 2012-2014
• Founded 50 years ago – economics-based planning consultancy• Economic strategy for Milton Keynes
• Independent, and now employee owned
• 200 staff
• 5 offices (London, Newcastle, Cardiff, Manchester, Leeds
• Work for public and private sector• Economic evidence base for local authorities• Economic impact assessments and corporate economic footprints• Supporting investment strategy and making economic case
18
Economic Value of Planning19
Structure
• Economic and policy context• Economic outlook• Policy reform
• The Value of Planning – Key Instruments• Market Shaping• Market Regulation• Market Stimulus• Capacity Building
• Conclusions
Economic Value of Planning20
Economic and Policy Context
Economic Value of Planning21
After a turbulent few years, the economy seems to be gathering momentum
Indicators• Falling inflation and
unemployment• Business investment
is recovering• Housing market
indicators have picked up sharply
• Consumer spending has been the biggest driver of recent growth
Economic Value of Planning22
But still subject to uncertainty and geographical disparity
• Productivity and wage growth remain disappointing..
• ..while exports are still lagging behind pre-recession levels
• International uncertainty
• Localities with the strongest growth potential are those with a strong private sector base and particular concentration of high growth sectors...
• ..with London and SE leading the way
Economic Value of Planning23
With a key reliance upon certain sectors for growth, including construction and professional services
1.6
1.6
1.1
0.0
2.1
-0.6
1.9
1.7
1.6
-0.3
2.6
1.4
4.4
-0.2
-0.5
1.0
1.4
-2.4
0.2
0.2
-0.7
2.3
-1.8
0.3
-0.9
1.6
0.4
2.0
2.9
-3.6
3.3
1.7
0.7
-1.4
2.4
-2.5
Average annual growth rate for employment by sector for each cycle (%)
Decade of growth (1997-2007) Recession & Stagnation (2008-2013)
5 year growth forecast (2014-2019)
Source: Experian, NLP analysis
Retail
Finance & Insurance
Transport & Distribution
Hotels, Restaurants &
Leisure
Public Services
Construction
Professional Services
IT & Media
Manufacturing
Agriculture, Forestry & Fishing
Extraction & Mining
Utilities
Average Average Average
Economic Value of Planning
Construction output remains 12.2% below its peak. Private commercial/industrial construction still has the longest way to recover to reach its pre-crisis output levels.
24
Infrastructure
Housing(Public)
Public** (non- infrastructure)
Total Construction
Housing (Private) Private
Commercial
Private Industrial
* Pre-crisis peak for total construction was 2007**Public sector construction of buildings such as schools and colleges, hospitals, universities, fire stations, prisons and museums. NB excludes housing and infrastructure.
Change in sector output (£bn) from pre-crisis peak for construction* %
Source: ONS/NLP analysis
Economic Value of Planning25
Planning reform has placed economic growth firmly at the heart of the planning agenda, with a renewed emphasis on the important interactions between planning and growth
“Significant weight should be placed on the need to support economic growth through the planning system”
“To help achieve economic growth, local planning authorities should plan proactively to meet the development needs of business and support an economy fit for the 21st century”
More opportunity to think locally about how positive and proactive planning can support growth
Greater incentive for local authorities to achieve economic growth aspirations
Practical guidance on assessing economic development and housing needs to support the preparation of Local Plan evidence base
NPPF
Economic Value of Planning26
The Value of Planning
• RTPI research to examine the value of planning, focusing on economic and financial value
• Recognises that planning helps to create the kinds of places where people want to live, work, relax and invest..
• ..and is much broader than a purely regulatory role
• Identifies ‘planning’ as the deployment of policy instruments intended to shape, regulate and stimulate the behaviour of ‘market actors’ and to build their capacity to do so
Economic Value of Planning27
1. Market Shaping
Economic Value of Planning28
Market Shaping: The Theory
• Planning provides an important context for decision making by landowners, developers, investors and others involved in making places change by • increasing certainty• reducing risk• encouraging market actors to see benefit for themselves in
meeting wider policy objectives
• It ensures that individual developments are planned as part of a broader picture rather than in isolation• encouraging the provision of ‘collective goods’, such as better
connectivity and improved public realms
• Planning provides an institutional framework that encourages and rewards integration within the process of development, and deters disintegrated behaviour
Economic Value of Planning29
Market Shaping: Practical Examples and Strategies
• #1 – Plans, Strategies and Visions
• Used, particularly at the local level, to articulate how places should change over time
• Reliance upon other parties to share and help implement the plan-maker’s vision• Cross-boundary issues / functional market areas
• Relies upon a high quality evidence base and navigating a process that can make it difficult to see wood for the trees
Key Success Factors
Taking advantage of market information (e.g. rents, prices, yields, vacancy etc)
Engagement with key market actors (such as landowners and developers)
Deliberately seek to change market behaviour by specifying key criteria for development
Providing an effective balance between flexibility and certainty
Specific consideration of implications of allocations for land value
Connect with other policy instruments for example that stimulate demand
Economic Value of Planning30
Market Shaping: Practical Examples and Strategies
Critical factors What can planning do?
People
Proximity to skilled workersLabour productivity & flexibility
Provide adequate scale of housing for work forceSecure development commitment to drive skills and trainingEnsure right type of land / business space is available for different industries to function in areas with access to labour
Place
Quality of life/amenitiesAccessibility/transportInfrastructure Opportunity for development/expansion
Planning policy/development that preserves and promotes quality of place and access to labourPlan pro-actively to meet development and space needs of businessExplore approaches to unlock or bring forward employment space by providing upfront infrastructure to secure investment
Business
Supply chainsCustomers Clusters and competitive advantage
Ensure sufficient employment space is available to accommodate expansion/relocationBoil down regulations that may hinder or constrain competitive advantage / development of sector clustersConsider implementing Enterprise Zone style scheme, providing incentives for firms to co-locate and interact
Confidence in a location as a place
to do business
Making a place ‘open for business’: What drives investment decisions?
Economic Value of Planning
Market Shaping: Practical Examples and StrategiesThe dynamics of work are changing – Local Plans need to keep up with new ways of doing business
World leading in Tech employment
London, East and South East region*
744,000 tech/info workers
692,000 tech/info workers
California
*including Oxford and Cambridge
Source: South Mountain Economics
Implications for Planning and Property Sector:
Telecommunications, media and technology (TMT) industry driving job growth
Office demand and housing
A third industrial revolution?
Location derived from clusters and agglomeration
Factory is now one of the most productive in Europe
Impact of new technology, knowledge and high value added
1999271,157 cars4,594 workers
2013480,485 cars5,462 workers
Nissan’s factory in Sunderland
3D printing originally conceived as a tool to make one-off prototypes. Potential to be scaled up and completely transform manufacturing sectorAn additive approach to manufacturing
Open, innovative economy craves proximity and integration
Cambridge Life Sciences & Healthcare cluster
Media City Salford
31
Economic Value of Planning
Changing model of retail supply chain / logistics
Shift to convenience combined with leisure/transport hubs
Retail and spending behaviour is constantly evolving
2007 was the first year since the 1950s that no new US shopping mall opened
Up to 50% of US shopping malls could be closed or repurposed by 2030
Source: ICSC
2002 20120
5
10
15
20
25 Non-food Retail spend Leisure
% of total household expenditure
Source: ONS Family Expenditure Survey
Leisure includes restaurants & hotels, recreation & culture
Shift to convenience – integrated click and collect at major transport hubs/high footfall leisure centres Fulfilment centres/dark stores to
cater for rise in online spend
In the past five years (2009-13) Tesco has opened six dotcom centres in and around London
Other retailers include Sainsburys, JLP (Waitrose, John Lewis) are opening ‘dark stores’ targeting city/urban edge locations to cater for online shopping demand
Amazon to open pick-up lockers at London tube stations starting with Finchley Central and Newbury Park
Amazon has also tied up with Network Rail’s Doddle to create up to 300 click and collect centres at rail stations
Source: Retail GazetteSource: Telegraph/BBC
Market Shaping: Practical Examples and StrategiesPlanning for a changing retail and leisure economy - spending less in shops but spending more on leisure and experiences.
32
Economic Value of Planning33
Market Shaping: Practical Examples and Strategies• In a recent NLP survey of Local Authorities, around half of
respondents felt that the strategies they had in place are likely to respond effectively to future economic conditions.
The extent to which Economic Development officers and Planning officers view their Local Authorities’ suite of strategies (i.e. planning, economic, regeneration etc.) as responding to the likely future economic conditions for their area
Economic Value of Planning34
Market Shaping: Practical Examples and Strategies• #2 – Property Rights Reform
• Political, social, economic and legal institutions paying more explicit attention to how markets are constructed, rather than entrusting this to informal change.
• Decisive and deliberate institutional reform of property rights can have a significant effect on developer behaviour and development opportunities.
• e.g. land supply competition, land value tax, “use or it lose it”, CPO
Economic Value of Planning35
Market Shaping: Practical Examples and Strategies• #3 – Strategic Market Transformation
• Deliberate ‘place production’ generating added value from comprehensive, well-planned and integrated approaches to development
• Creating entirely new places or rescuing places that have fallen into decline, such as urban expansions and major regeneration projects
• Area-based plans / development frameworks• A significant feature of pre-recession planning• Most recent examples focused on urban extensions
• Challenge is to get the right balance of prescription, quality and flexibility to change
Economic Value of Planning36
Market Shaping: Discussion Topics
1) Are current business needs and key economic development priorities for your local area effectively reflected in current plans?
2) How well does the LEP interface with plan-making?
3) Does your plan and evidence base reflect recent economic change and help your area respond to economic opportunities as they arise in future?
4) Does your authority’s Local Plan present clear messages to the market about the place ‘offer’ to business?
5) Are there locations where specific/area-based plans could help unlock economic potential?
Economic Value of Planning37
2. Market Regulation
Economic Value of Planning38
Market Regulation: The Theory
• Regulatory instruments are those that seek to compel, manage or eradicate certain activities, whereby limiting actors’ scope for autonomous action
• In the UK, development management (formerly ‘devt control’) is the best known regulatory instrument affecting the use and development of land
• To ensure their intentions are achieved, regulatory instruments need to be supported by effective enforcement procedures
Economic Value of Planning39
Market Regulation: Practical Examples and Strategies
• #1 – Discretionary and pre-defined regulation
• Discretionary approaches consider each case on its merits but may publish in advance what will be expected in individual cases, while ‘material considerations’ may be brought into play when planning applications are submitted
• Pragmatic and enable flexibility, as circumstances change
• Pre-defined approaches publish comprehensive standards, norms and regulations setting out in advance what is permissible
• Create greater certainty and less open to political manipulation
• Examples include Design Codes and Local Development Orders (LDOs)• Difficult to get right balance of control/flexibility
Economic Value of Planning40
Market Regulation: Practical Examples and Strategies
Economic Benefits
• Setting or applying rules means understanding and articulating the economic contribution of development and giving adequate weight to the full range of economic benefits
Economic Value of Planning41
Market Regulation: Practical Examples and Strategies
• Understanding the counterfactual position (i.e. what would happen without the development)
• The cost of doing nothing
• Recognising future growth potential
• Recognising changing world of work
Net additional benefit:
Year 2 = 5 jobs / £250K of GVA
Year 10 = 30 jobs / £1.5m of GVA
Years 2 – 10 = 140 years of employment / £10m of GVA
Econom
ic Va
lue (Jobs / G
VA
/ Taxes)
Time
Yr 2Yr 10
Net additional benefit
Economic Value of Planning42
Market Regulation: Practical Examples and Strategies
• Consider the economic benefits beyond just quantity of local jobs• Thinking about wider contributions of business growth, e.g.
• ‘Gateway’ entry to labour market • Retaining productive capacity in UK economy• Growth in productivity• Maintain competitiveness• Deliver profitability• Taxes• Returns to shareholders• Pension returns• Investment
• National policy imperative and a sustainable economic future
Economic Value of Planning43
Market Regulation: Practical Examples and Strategies
• #2- Planning Obligations
• Used to prescribe the nature of a development (e.g. affordable housing), secure compensation for any consequent loss or damage (such as open space) or mitigate a development's impact (e.g. by enhancing public transport provision)
• Market regulation ensures that the private sector takes more responsibility for the social and infrastructure costs of development, rather than leaving these to be picked up entirely by the public purse.
• Examples include Section 106 agreements and Community Infrastructure Levy (CIL)
• Challenges around viability and effective delivery chain for infrastructure (esp. balance between s.106 and CIL)
Economic Value of Planning44
Market Regulation: Discussion Topics
1) How significant is the issue of economic growth when development proposals are considered within your authority?• Plan-making • Determining applications• Informal advice
2) To what extent are the economic benefits of proposals conveyed to you as a decision maker?
3) What are the pros and cons of discretionary vs pre-defined regulations)?
4) Does your authority use planning to regulate markets in other ways?
Economic Value of Planning45
3. Market Stimulus
Economic Value of Planning46
Market Stimulus: The Theory
• Helping to make development happen by nurturing, encouraging and stimulating development activity, especially in thin or fragile markets
• Facilitates the individual decisions of market actors (such as developers) by expanding their room for manoeuvre
• Directly impacts on financial appraisals by making some actions more (and some less) rewarding
• Usually specified as a discretionary rather than mandatory activity
• Patience and taking a long term view – success often measured over a whole economic cycle
Economic Value of Planning47
Market Stimulus: Practical Examples and Strategies
• #1 - Direct state actions
• Proactively making suitable land available for development in the face of market failure, particularly where physical, infrastructure or ownership constraints present significant barriers to development
• Most recently channelled through Local Enterprise Partnerships as part of Growth Deal funding packages
• Focused on enabling infrastructure
• Greater role for Development Corporations / Special Purpose Vehicles?
Economic Value of Planning48
Market Stimulus: Practical Examples and Strategies
• #2 - Price-adjusting actions
• Direct public subsidy to encourage private-sector development either in particular locations, such as regeneration areas or declining regions, or of particular types, such as affordable housing or small industrial units.
• Take the form of development grants, tax incentives and project bonuses that provide the minimum additional sum needed to turn financially unattractive, but desirable, developments into attractive ones.
• Less common today due to State Aid issues and desire among government agencies to switch development support from a subsidy to investment model
Economic Value of Planning49
Market Stimulus: Practical Examples and Strategies
• #3 - Risk-reducing actions
• Actions that reduce perceived risks and build confidence in regeneration areas can provide an important development stimulus.
Providing accurate market information (for example on opportunities associated with regeneration areas)
Ensuring policy certainty and stability (for example creating confidence through a Masterplan or development framework)
Demonstration projects and environmental improvements to generate confidence to the market
Place management, such as Town Centre Management and Business Improvement Districts can reduce risk through collective commitment to the effective management and enhancement of an area as a whole.
Economic Value of Planning50
Market Stimulus: Practical Examples and Strategies
• # 4 - Capital-raising actions
• Providing or facilitating access to development finance, where private sector capital is either not available or needs to be reinforced in some way.
• e.g loan guarantees to support borrowing for projects that might otherwise be considered high risk, and thus attract a viability-crushing high interest rate.
Economic Value of Planning51
• Application of market stimulus needs to be targeted to reflect outputs sought and market circumstances (is there latent demand?)
Market Stimulus: Practical Examples and Strategies
Economic Value of Planning52
Market Stimulus: Discussion Topics
1) Are there good examples of how your authority has been trying to stimulate economic development?
2) What kinds of market failure have they been trying to address?
3) How effective have they been? How long did they take to show success?
4) What are the barriers to local authorities implementing market stimulus and how can they be overcome?
Economic Value of Planning53
4. Capacity Building
Economic Value of Planning54
Capacity Building: The Theory
• Often an ethereal concept
• Capacity building enables actors to operate more effectively on an individual and collective basis
• Planning has a key role to play in producing and sharing information and evidence, for example about real estate markets, trends and opportunities
• Although identified as a separate ‘policy instrument’, capacity building inevitably has the opportunity to support market shaping, regulation and stimulus
Economic Value of Planning55
Capacity Building: Practical Examples
• #1 - Market-shaping cultures, mindsets and ideas
• Looking afresh at cultural perspectives, mindsets, or ways of thinking. Enhancing receptivity to new ideas
• Helping planners visualise their true task:• making places not just plans• achieving desirable change as well as resisting undesirable
change
• For planners in the public sector, means cultural shift to see themselves as active participants in development, communicating vision and championing innovation, rather than external controllers of development (source: RTPI)• Challenges in an era of resource constraints
• Those in the private sector need to understand policy drivers
Economic Value of Planning56
Capacity Building: Practical Examples
• #1 - Market-shaping cultures, mindsets and ideas
• Planning positively reflects a state of mind• Giving appropriate value to growth and jobs?• Looking for solutions as well as identifying barriers?• ‘Opportunity and risk’, not ‘predict and provide’
- ‘Objectively Assessed Need’
• Helping decision-makers understand the economic side of the equation:• Planning balance• Sustainable development• Financial considerations
Economic Value of Planning57
Capacity Building: Practical Examples• Plan positively for niche sectors and ‘special cases’ (such as
airports, theme parks, motor racing circuits etc)
• These may be a cluster of businesses/economic activities that: • aren’t significant in scale or value • may be seen to generate problems, or • don’t align well with local planning policy• (May not even be strictly legal)
• Rather than ignoring these niche activities, can planning embrace them to think creatively about how their value and benefits could be harnessed / maximised:• Recognise the important and valuable role they may play (jobs,
income, expenditure, infrastructure and public services)?• Incorporate into local policy, to ensure they receive the status
and recognition needed?• Use growth to help ameliorate their impacts?
Economic Value of Planning58
Capacity Building: Practical Examples
• #2 - Market-rich information and knowledge
• Creating better places requires information and knowledge about place quality and how it can be influenced through development
• Public sector drivers significant investment decisions simply by providing the data upon which decisions are made• Information vacuum = uncertainty and risks
• Better market information (e.g. property market intelligence) can help planners, landowners and developers understand how ‘windows of development opportunity’ open and close unevenly between places • create the confidence to take advantage of opportunities
• Engaging (through evidence preparation and generally) can encourage better understanding of the motives and behaviour of private-sector • recognise which landowners, developers and investors are most likely
to share policy agendas• Help support framework for interventions where necessary
Economic Value of Planning59
Capacity Building: Practical Examples
• #3 - Market-rooted networks
• Enhancing relations so that planners working for local authorities are well connected with other professionals and with those working within the development industry
• Recognising where power lies, but see benefits in mutual learning and sharing of experience between the public, private and voluntary sectors• break down barriers• overcoming potential distrust
• Significant (and low cost) networking opportunities exist, particularly in and around cities. Are your planning teams taking advantage of them?
Economic Value of Planning60
Capacity Building: Practical Examples
• #4 - Market-relevant skills and capabilities
• Human capital - enhancing the skills and abilities of key individuals and organisations
• Examples:• Helping economic development, housing, highways etc officers
understand planning (and vice versa)• Development economics and viability - enable planners to be
able to negotiate financially on level terms with developers.
Economic Value of Planning61
Capacity Building: Practical Examples
• Securing positive planning through the duty to co-operate• Healthy local competition between places? • Or a race to the bottom in pursuit of growth?• Functional economic and market areas
(requirement of NPPF/PPG)
• Recognising:• Different roles of places within business and
labour market areas• Flexibility and the scope for places to
compete, as sectors change and business operations consolidate, often with a pan-regional or national horizon
Economic Value of Planning62
Capacity Building: Practical Examples
• A recent NLP survey of Local Authorities identifies power and resources are two of the major issues for achieving economic objectives, with the majority of respondents (81%) stating that they lacked sufficient resources to address economic development issues in their area.
Do you believe your authority has sufficient powers and resources to address economic development issues in your area?
Economic Value of Planning63
Capacity Building: Discussion Topics
1) Do you see differences in planning ‘culture’ within and between Councils? How does this effect the approach to economic growth?
2) How does your council gather and use market intelligence?
3) To what extent are local stakeholders engaged within the planning process? Could this be enhanced?
4) Are their any gaps in the skills and capabilities of your teams to address economic development issues in your area?
Economic Value of Planning64
Conclusions
Economic Value of Planning65
Conclusions• Positive signs that the economic recovery is gaining momentum
• But significant disparities remain between different localities and their ability to capture future growth
• Policy reform has placed economic growth towards the top of the agenda
• Planning has a vital role to play if it thinks laterally and takes a positive and holistic approach…
…recognising the value it can have in shaping, regulating and stimulating local markets
Economic Value of Planning6666
This publication has been written in general terms and cannot be relied on to cover specific situations. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. NLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from acting as a result of any material in this publication.
Nathaniel Lichfield and Partners is the trading name of Nathaniel Lichfield & Partners Limited. Registered in England, no.2778116. Registered office: 14 Regent's Wharf, All Saints Street, London N1 9RL
© Nathaniel Lichfield & Partners Ltd 2011. All rights reserved.
Strategic leadership of Place:Planning, LEPs & Local Economies
• David Marlow
– Third Life Economics
Strategic leadership of place: Planning, LEPs and Local Economies
Presentation to: ‘Planning Delivering Economic Growth’ Programme
Name David Marlow
Third Life Economics
Date 16 October 2014
Introductions and agenda for session...
A bit about me... Four subjects to discuss and
develop What does ‘good’ strategic
economic leadership of place look like?
How far will LEPs provide the strategic economic leadership team of places 2015-20?
What issues does ‘LEP-land’ raise for LPAs
A quick look at three frameworks which might help you work through these issues
Not a lecture – nor a PhD – lets work through the topics together
Icebreaker...
Tell me a little bit about a ‘good’ example of local strategic economic leadership you have observed in the last decade:- Who? What results makes it
‘good’? What were the key
ingredients of success?
A word about leadership theory... Huge amount of work on
organisation leadership From ‘great man’ to traits,
behavioural, situational, transactional to transformational theories
Latest thinking more about dispersed, networked, ‘3-D’, emergent and formative models
Some relevance for local leadership teams, LAs and LEPs as organisations
Challenges of ‘big picture’ change....
Demographics and social innovation
Science and technological innovation
Globalism, recession and public sector austerity
Localism and complexity...
Some fundamentals of place-shaping
Physical investment-led
Enterprise, innovation, and creativity-led
Community regeneration-led
Positioning and branding approaches
Integration with LCD and sustainable communities
Leadership in the post-GFC context – International ‘good practice’ and the ‘Barcelona Principles’
Major OECD study looked at local leadership team responses to recession
Highly relevant process and content recommendations
...and the coalition game changer in the UK...
Focus on deficit reduction Initial strategies of
Localism, Rebalancing, Big Society, ‘Open for Business’ etc...
Destruction of regional tier and all Labour approaches (and language)
Gradual refocusing on growth; some re-learning of previous policies; some new ideas
So by 2014 we have ‘instruments’ of the new language...
New partnerships – LEPs, LTBs, LNPs etc., and local authorities
New policies – NPPF and planning reforms (CIL, NHB etc), EZs, etc.,
New funding instruments – RGF, GPF, LGRR, TIF, LGF, ESIF etc.,...
New sub-regional instruments – city deals, wave one, two; SEPs, local growth deals;
New local instruments – community and neighbourhood budgets
Renationalised E&I functions
After lunch, we’ll look at...
How to make some of these new instruments work well in terms of:- LEPs; their relationship to
LAs, LPAs and place; LA leadership of the
planning system; How do we put this
together coherently and anticipate 2015-20 challenges?
The ‘unusual’ birth of LEPs...
An ‘invitation’ to business and civic leaders – but NOT a requirement/voluntary
No specific roles and functions beyond ‘strategic leadership’
Ideally but not necessarily FEAs
No resources
From Year Zero to Year One....
From voluntary to universal coverage
Hugely diverse pattern of economic geographies
Given some start-up funding
Given something to do – RGF, EZs, GPF etc.
The Heseltine approach and government response...
No stone unturned:- Government ‘system’ too
Piecemeal Centralised
Decentralise through LEPs and create SLGF
LA reform and metro-mayors Government response
LEP SEPs and SIFs and LA delivery bodies
The 15% LGF(s) but still £2bnpa
‘Initial’ guidance and ESIF partial, top down opt-ins
Producing the heavy LEP/LA agenda to 2020...
Meeting very significant and complex government expectations, EU compliance and over £12bn of public funding
The opportunity to genuinely build a strategic economic leadership team, shared vision, and intervention strategies
‘No LEP is an island’... ...and neither is economic
development ...and a word about HEIs and
the ‘missed’ Witty opportunity
How far do your LEPs meet the descriptions of ‘fit for purpose’ strategic economic leadership we discussed before lunch?
Strengths and
how we build on
these
Weaknesses and how we mitigate
these
Opportunities and how we realise these
Threats and how we avoid
these
Planning in LEP-land I: A LEP perspective
The logic of strategic economic leadership of place Planning necessary
The underpinnings of sustainable local growth... Linking housing to employment
growth and vice-versa The principles of coherent
local growth Operates across functional
economic market areas The practice of SEPs
Major infrastructure and employment investments (including some housing)
Planning in LEP-land...II: A LA perspective
The principles of local leadership of place and planning decision-making Statutory process Democratic accountability and
legitimacy The practice of local planning
Long-run, evidence-based Based on LA administrative
geographies with ‘duty to cooperate with neighbours
The concerns of LEP-land To whom are they accountable? Are they really FEMAs/places? Do they have capacity and
capability to deliver?
Planning in LEP-land...III: ‘Difficult issues’ not yet resolved
What is/should be the national spatial strategy? Implicit/explicit Rebalancing/market-led
How to make the ‘duty to cooperate’ effective
Future of LEPs Form and functions Inevitable variabilities
National and devolution agendas 2015-20 Government...intermediate...LA Neighbourhood
Unknown/unknowns e.g. UKIP, EU referendum Genuinely unexpected shocks
Questions, comments and discussion...
How do we deal with and resolve these agendas?
What have I omitted?
Other comments...
What’s an LA/LPA to do? I: Think about your local growth ‘road map’
What’s an LA/LPA to do? II: Have you got the ‘fundamentals’ for local growth right?
Doing ‘business as usual’ agendas really well• Getting planning, delivery management, housing, infrastructure and other services right
• Excellence in business relationship management, signposting & brokerage
• Really knowing your ‘places’ – cities, town, villages/neighbourhoods – at a granular levelFocusing on a small number of transformers
• Identifying a manageable number of ‘big ticket’ changes you want to achieve – major capital investment projects or perhaps addressing a key business, skills or social issue
• Promotion, lobbying and advocacy of your place(s) consistently and distinctivelyRefreshing partnership working
• Partnerships with LA neighbours; LEP-level; business and third sectors relationships
• Building the ‘right’ place-based leadership team(s)
Institutional architecture and resourcing• Ensuring ‘whole council’ cultureis ‘fit for purpose• Allocating distinct capital and revenue resources for
growth and development, including new financing mechanisms
What’s an LA/LPA to do? III: What ‘intermediate’ tier do you want/need, and what are your enhanced devolution/localism ambitions for 2015-20?
•Establishing purposeful leadership and governance
•Moving beyond transactional deals to ‘pacts’
•Embracing asymmetric progression
•Enhanced localisation of EUSIF, growth deals, PSTN etc
•Strengthening collaboration between LA, business, HEI, LEPs and other role players locally
•Defining the national ‘project’/approach
•Evolving intermediate governance forms and structures – DAs, CAs etc
•Agree new ‘balance’ of funding including local revenue-raising powers
•Define what’s in and out of scope
•Sort out distinctive propositions and leadership of place
•Determine national policy priorities for local ‘shaping’
Define the
preconditions for
enhanced devolutio
n
Agree and
deliver structura
l and statutory change
Developing the
instruments of
change
Making the most of short
term incremen
tal opportuni
ties
Review and reflections...
What has been helpful and less helpful about the session?
Is there anything that hasn’t been covered, that you wish we had addressed?
What changes or considerations will you think about exploring further with your team(s) when you return to your LA next week?
coffee
Group Good Practice Examples
• You
– The Group
Group Good Practice Examples• Development Consultation Forum
– Havant• Engagement with developers
- Exeter
What is it?
How did you do it?
What has it delivered?
What was the leadership role in it?
Questions?
Evening Dinner 7pmPre dinner drinks from 6.30pm
The Agenda: day 2• Economic Growth and Public Services in Non-
Metropolitan England- Rebecca Cox (LGA)
• Planning Quality Framework exercise: understanding your service
- Martin Hutchings (PAS)
Lunch 1pmFinish
The Agenda: day 2• Economic Growth and Public Services in Non-
Metropolitan England- Rebecca Cox (LGA)
• Planning Quality Framework exercise: understanding your service
- Martin Hutchings (PAS)
Lunch 1pmFinish
Economic Growth and Public Services in Non- Metropolitan Areas
• Rebecca Cox
– The LGA
Non-Metropolitan Commission
Emerging findings
17 October 2014 www.local.gov.uk
About the Commission
• Independent Commission on Economic Growth and the Future of Public Services in Non-Metropolitan England
• Met for the first time in April 2014• Reports to the People and Places Board• Supported by three chief executive advisors
www.local.gov.uk
Remit
• “…seek ways to stimulate economic growth regionally, create new jobs and help people live their lives better.”
• RSA Future Cities Commission• LGA / CIPFA Commission on Local
Government Finance
Commissioners
• Sir John Peace (Chair)
• Lady Cobham• Stephen Gifford• Sir Tony Hawkhead
• Grainia Long• Professor Henry
Overman• Jane Ramsay• Lord Teverson
Call for evidence
• Nearly 50 submissions from business, councils, public sector, Government, voluntary and community sector, think tanks, LEPs.
• Evidence still being received.
ResearchThe current economy of non-metropolitan England account for over half of national value added and is bigger than the economy of metropolitan England.
Emerging findings
• Strong story about local economies in non-metropolitan areas.
• Appetite to tackle issues of devolution, funding, governance and public service transformation.
Next steps
• Interim report in the next few weeks.• Further comments will be sought on proposals
and initial findings.• Final report to be published in early 2015.• Eye to General Election and the first spending
review.
More information and contacts
www.local.gov.uk/non-met-commission
020 7187 7384
Planning Quality Framework exercise: understanding your service
• Martin Hutchings
– PAS
The Planning Quality FrameworkLeadership essentials Oct 2014
www.qualityframework.net www.pas.gov.uk
Martin HutchingsImprovement ManagerPAS
Today – Planning Quality Framework
Me• Why do we need it?• What is it? How does it work?• What does it do?
You• Is it useful?• 2 exercises to help us develop it• Q&A as we go
Quality?
“top quartile” performer(this is not uncommon)
or is quality…
Leading to:
Time for a change?
why we need a quality framework
the focus will always be on speed until there is something better to care about
wasted time/effort
validation
conditions
big stuff / small stuff
routine / unusual
how much of what?
permitted development
do customers like us? neighbours feel ignored?
good ideas did we/do we add value?
evidence / guesses
did that work?
focused improvement
measures not targets
VFM
end-to-end
leadership…
… does not manage the status quo; it challenges it • planning - passive, reactive to change?• time to create the change agenda?• ‘designation’ = ‘how can we get quicker?’• better questions: how do we measure and
deliver value and quality? and ‘how do we resource in an unpredictable world’?
councillors: better value from data
• Previous PAS work – officer focused
• Councillors: not just about access to data
• elected members need access to performance data they can use
demonstrate the value of your work
• performance management• customer care, customer satisfaction• pre-app and post app reviews• annual monitoring reports, design guides
“There’s nothing new under the sun” Ecclesiates 1;9
demonstrate the value of your work
• performance management• reporting system data (e.g. PS1/2
returns)• customer care, customer satisfaction• pre-app and post app reviews, AMR
“There’s nothing new under the sun” Ecclesiates 1;9
PQF: re-frames and enhances what you already do and applies some standards so that you can report and compare.
what is the planning quality framework?
in a nutshell
A collection of tools and techniques…that use data…to make reports…that help councils understand DM service performance…and/or benchmark against others.
no single measure of quality
The work
Agents
Neighbours
Applicants
Reviewer(s)
Organisational - (ICT, teams, headcounts etc.)
C’llrs
Amenity Groups
Staff
Outcomes
Resources
“Value”
Process
What if ?
Quantitative Qualitative
Design ?bui
ldoutcomes
Q&A
TipsPractice
OverviewThe work
Agents
Neighbours
Applicants
Reviewer(s)
C’llrs
Amenity Groups
Staff
Tips
Q&A ?
Outcomes
Resources
“Value”
Process
What if ?
Qualitative
Opinions
Design, build,
outcomesPractice helpful tools
Organisational - (ICT, teams, headcounts etc.)
Quantitative
Facts
quantitative: applications dataThe work
Outcomes
Resources
“Value”
Process
What if ?
data standards
qualitative: 8 customer Surveys
Agents
Neighbours
Applicants
Officer
C’llrs
Staff
Amenity Groups
Organisational - (ICT, teams, headcounts etc.)
practice
Design Pre/post
appnegotiatio
noutcom
es
• NPPF integrated into policy• Appeals / refusals based on design• Focus on design at PreApp • Design guides / panels• BREEAM• Building for Life• In house design expertise• Councillor reviews of development
Design Pre/post
appnegotiatio
noutcom
es
It’s a frameworkThe work
Agents
Neighbours
Applicants
Reviewer(s)
How are you organised ?(ICT, teams, headcounts etc.)
C’llrs
Amenity Groups
Staff
Outcomes
Resources
“Value”
Process
What if ?Quality
1. Quantitative
Quarterly reports: the ‘rounded’ picture:
Q: how many expensive process reviews focus on speeding things up but fail to notice that the service says ‘yes’ more often than its peers, creates less waste and has happier customers?
…less of this35 pages of histograms ?????!
more of this…Structured ‘story’
Part 1 – The work
Part 2 – The outcomes
Part 3 – Value/non-value
Part 4 – Resources
Part 5 - Process
Part 6 - Surveys
Council Planning Quality Report
Online
Trends over time Database – DIY reports
PART 1 - THE WORK1a. development categories
Big stuff
PART 1 - THE WORK1b. Application Counts/ Fee Comparator
Purpose: To understand your work and fee income and compare with your peers..
For review:• Are you very different from
your peers? • Are peers seeing more of a
particular type of development?• Something to learn? • Do the applications / fees mix
represent any risk?• Are you managing this risk
appropriately ?
work profile fee profile
PART 2 - OUTCOMES2a. Approval Rates
Purpose: What types of development are we saying 'yes' to and how often?
For review:• Granting more permissions? • Messages for stakeholders?• Is the %age of permissions always
a positive? • Do your approval rates differ
significantly from your peers?• What might be happening
elsewhere that you can learn from?
2a. Approval Rates
PART 3 – VALUE/NON VALUE3a. Withdrawn applications
Purpose: Rate of withdrawal. A 'waste' indicator. Where possible they should be reduced to near zero.
For review:• What is the overall trend ? • Are you doing anything - is it
working? • What’s the cost? Fees don’t
cover costs. Then the 'free go‘? • How many occur at the request
of the council?• What do your developer
community think ?
3b. Follow-up applicationsPurpose: Permission to start? 'follow-ups‘ – series’ of apps for same development. Often the market (EoTs, some NMA), sometimes required by us (vary/remove conditions).
For review:• These don’t cover the costs• Is there anything to be done?• Complex Vs simple • What do developers think? • Is there a positive/negative
story here?
3b. Follow-up applications
3d. Non-heritage applications zero fee
PART 4 – RESOURCES4b. Headcount estimate
Purpose: how well matched are resources (FTEs) to the volumes of work?
For review:• How does the FTE
estimate compare to reality?
• Caseloads?
• Does the trend correspond with volumes?
• Are there opportunities to re-focus resources?
4c. Development investment
Purpose: What is the investment value that development proposals represent? For review:
• significant inward investment £sum Vs costof planning
• What do the trends (rising/falling) mean for your place?
• Significance between this and fee income (e.g. future resources available)?
• FTE estimate (e.g. can you handle a growing upward trend, or re-focus resources for a downward trend)?
PART 5 – PROCESS5a. Valid on day 1
Purpose: Shows the proportion of applications received that can be worked on straight away.
For review:• This is avoidable time and
cost • Causes. Don't assume are
the sole fault of the applicant/agent.
• Are your procedures, processes, consistency and guidance as good as it could be?
• What are your customers saying?
• Are some application more vulnerable than others?
Why do we use boxplots?
• Shows variation in a set of data – something an ‘average’ doesn’t.
• e.g. average decision 48 days. Hides fact that most are issued between 35 and 54 days.
Knowing this you can:
• be clearer to customers
• improve the process – what is stopping us making 35 days?
Quick guide to box plots
Average
Improvement opportunity
5c. end-to-end decision times
Purpose: Shows the number of days between applications being received and a decision notice being issued.
avoid this
WHAT IF…?
• compare me to my peers (you’d expect that)
• compare me to “best of breed” (interesting)
• make me look like the best (very interesting)
Exercise 1
Task:Design a ‘dashboard’ of key planning measures for councillors
Hints/tips:• No more than 5 or 6• What do you need at your finger tips?• Who’s your audience(s)?
Part 2 - customer surveys
Agents
Neighbours
Applicants
OfficerC’llrs
Staff
Amenity Groups
Organisational - (ICT, teams, headcounts etc.)
‘customers’ part 1(regular, application - specific)
• applicants (members of the public that have made a planning application)
• agents (a professional person or company making a planning application)
• neighbours (a person/organisation that has commented on an application)
• officer case review (for the council to assess how well it did)
• web-based, by email• Each council gets it’s on toolkit• surveys have common themes:
– how helpful? – manage time well?– use information well? – clarity of decision?
How
survey results
Helpful
Use of time
Use of information
Clarity of decision -2
0
2
Applicant
Neighbour
Review
Application Ref: HA/FUL/4456/14
Customers – part 2annual surveys(planning more generally)
• councillors (what’s the community view, avoid the political)
• amenity groups (representative views from organised communities)
• staff (are we helping them to do a good job?)• Head of service – how the service is set up
Beyond “things are different” to “this appears to be why things are different”
Exercise 2
Task:Design a ‘councillor survey’
Hints/tips:• Ward councillors - communities• 4/ 5 questions• Avoid politics• What can councillors tell those running
the service that others can’t?
3. Practiceassessment Notes
a) Quality of planning Did we mediate well ?b) Quality of development
Has the development met its objectives?
quality (of planning)
How do we collect data on quality of planning?• Policy• Pre Application work• Design Guides• Building for Life• BREEAM• not much point in comparison
quality (of development)
How do we collect data on quality of development?• short term: go on site visits (with committee)• longer term goal: link planning data with
completions data. Understand what actually gets built and outcomes.
Bringing it all together
Annual Report• The annual report process is a catalyst to bring
everything together and publish it• We can help collect & collate, but it’s your report.
Your commentary. Your conclusions about whether you are delivering “quality”
• We want it to become a “badge”. Over time. • Combine data into a holistic framework.
PQF: better for management
• multi-layered views• database is yours – climb inside the numbers• focus on the important; no more expensive
‘blanket’ improvement projects• improve, defend, protect• evidence-based change• culture shift: customer focused service alongside
timely decision making• members?
what’s the commitment ?• No £cost• 4 days a year of your time
You get:• quarterly, annual reports• free customer survey system, free tools • new focus for cost and vfm, investment and
resources
sign up
• To sign up: email [email protected]• name of main contact and a sub• a JPEG file of your council’s logo on a white
background• the email address that you’d like the surveys to
be emailed from (this might be a person or a generic email e.g. [email protected])
• Portfolio holder (optional)
thank you – QUESTIONS?
email [email protected] www.pas.gov.ukphone 020 7664 3000
In comparison to benchmarkBenchmark Quality frameworkYou have to do it all ModularOnce per year Just startSnapshot Ongoing & regularIndustrial strength accounting
Low hassle
Internal management tool External badge Councils only Councils, developers and
RTPIUnderstand value for money
Understand quality
Questions?
What will you do when you return to your authority?
Forthcoming PAS events• Plan making & updating - 1 to 1 support• Supporting Neighbourhoods• Planning Quality Framework • S106 obligations and CIL • Viability training• Duty to cooperate• Leadership Essentials Plan Production• Economic & Financial Impact of Planning
View www.pas.gov.uk/events for details.
Two things to do before 10am tomorrow:
1. Sign up for the PAS Bulletin.
2. Follow us on Twitter.
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