1

Summary

1.1

The report updates the Cabinet on the progress made towards implementing SEEDA's new funding regime in South East Hampshire - the Area Investment Framework. It recommends support for the priorities identified in the South East Hampshire Strategy and close involvement of the Council with implementation of the economic development and regeneration programmes.

2

Reason

It is a corporate priority to target areas in need of investment and regeneration.

3

Other options considered and rejected: None.

4

Conflicts of interest declared by the decision maker or other Executive Member consulted:

5

Dispensation granted by Standards Committee:

6

Reason(s) for the matter being dealt with if urgent:

Approved by: Date:

1.

Summary

This report informs Members on the latest progress on the South East Hampshire AIF, and recommends active participation in the regeneration and development programmes adopted by the AIF Board.

2.

Background

The South East England Development Agency (SEEDA) has decided that from 1 April 2004 it will start to devolve much of its regeneration funding to a number of AIF areas. This will gradually replace Single Regeneration Budget (SRB) money.

2.1

What is an AIF?

An AIF is a comprehensive strategy for an area in need of regeneration. Nearly all SEEDA's targeted 116 most deprived wards are encompassed by AIF areas. The AIF sets out to identify the needs and priorities in an area, and the current levels of public investment in support of economic and social regeneration. A Strategy is prepared which becomes the framework not just for specific SEEDA regeneration money, but also acts as a guide for all SEEDA activity in that area.

It is also aims to encourage collaboration directly and indirectly by other partner agencies e.g. Local Authorities, Primary Care Trusts and the voluntary sector. Effectively, the Strategy is intended to become the Master Plan for promoting investment and tackling issues of social inclusion and deprivation.

2.2

How does this affect Hampshire?

There are three AIFs in the Hampshire and IOW area: -

· IOW

· Southampton

· South East Hampshire

(Portsmouth, Havant, Fareham, Gosport)

The South East Hampshire AIF will attract about £1m in 2004/05, but this is expected to grow substantially over following years. The main themes of the Framework Strategy are:

· Competitive and diverse economy

· Workforce - skills development etc.

· Social inclusion and property

· Creating quality urban places

· Transport

· Cultural capital

Clearly, many of these link to County Council corporate priorities, the Public Service Agreement (e.g. Gosport schools) and to many County Council services (Education, Social Services, Environment, Recreation and Heritage, Economic Development etc.).

This is graphically represented in Appendix 1 which shows estimated public sector investment in the area (note also p32 of the "final report", available from the Head of Economic Development).

There is therefore an opportunity for the County Council to ensure that its actions link to those of others and address particular priorities in areas such as Leigh Park and Rowner.

3.

The Strategy for South Hampshire

Six months ago, with the support of the County's Head of Economic Development, a detailed study was commissioned from DTZ Pieda consultants by the Portsmouth and South East Hampshire Partnership (PSEHP).

Work undertaken involved a review of the key features of the area leading to a "Strengths Weaknesses Opportunities and Threats" (SWOT) analysis. Extensive consultation (interviews, focus groups, seminars etc.) was carried out to assess current investment activity and the views of partners.

This has resulted in the "Final Report", which was published in January 04. This Report is available in full to Cabinet Members, but some key findings were:-

· population growth in the area between 1981 and 2001 was only 3% compared with 11% for the South East

· Gross Value Added (a measure of economic output) grew by 58% compared with 83% in the South East

· 6 wards are ranked in the 20% most deprived in England and Wales.

· growth economic sectors are under-represented e.g. producer services 17% compared with 27% for the South East

· relatively small "business stock" - 21 per 1000 people v. 33/1000 in the South East

· other constraints such as low skill levels, shortage of good industrial premises, road congestion.

The Strategy identifies a number of opportunities grouped under the themes set out above (para 2.2) and describes in detail the investments and programmes which will be most likely to achieve the vision (section 7 of the "Final Report").

4.

Implementation

Under the auspices of PSEHP an AIF Planning Board has been set up with membership drawn from the Local Strategic Partnerships, including the Hampshire Strategic Partnership (HSP - with representation by Cllr Kirk as Chairman), Business Link Wessex, the Learning and Skills Council, SEEDA and Government Office for the South East. The Board agrees and approves the overall strategic direction and priorities of the AIF.

Supporting the Board are a number of other groups and sub-committees shown in more detail in the draft "Management Structure" at Appendix 2.

Project proposals will undergo an approval process based on their fit with overall priorities, and the contribution which they can make to the aims of the AIF. They should also show evidence of support from local stakeholders, especially the Local Strategic Partnerships.

SEEDA as a significant funder will expect also to see links to its "Tier 2" and

"Tier 3" outputs (e.g. employment, skills, business development etc.).

5.

Conclusion

5.1

Role of Hampshire County Council

Since the success of the AIF will depend far more on the effectiveness of investment by partners than its own directly controlled resources, it is highly desirable that mainstream Council programmes align as far as possible with the AIF priorities. It is estimated that the County Council is investing approximately £350m in the South East Hampshire Boroughs!

It is therefore vital that relevant services of the Council are familiar with AIF priorities and programmes and the Council takes an active part in the decision making processes of the AIF.

It is also desirable that such economic development and regeneration resources as are currently being spent in the area (as well as those planned for the future) should, at least in part, be used to lever additional partner resources especially through the AIF process.

5.2

South Hampshire Spatial Study

This spatial study, part of the "South East Plan" is expected to report in June 04 with an analysis of land, employment, and transport needs for the future. Since these issues are key to the success of the South East Hampshire AIF, it will be important to ensure that there is effective alignment of the visions and the solutions proposed across the whole sub-region.

Recommendations

That the Cabinet:-

1.

Welcomes the significant contributions being made by all the partners in the South East Hants AIF.

2.

Supports the priorities identified in the Final Report and

3.

Requests all Portfolio Holders to ensure that services being delivered in the area work closely alongside the AIF initiatives.