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Details have been revealed about how Lancashire will spend the £20m cash boost that comes with the county’s devolution deal.
The agreement – originally struck with the previous Conservative government a year ago and since rubber-stamped by the new Labour administration – established a fund for what was described only as “innovation-led growth and net-zero ambitions”.
The deal was short on specifics about exactly how the money would be used – referring only to a plan “to maximise the benefits” of the new National Cyber Force headquarters set to open in Samlesbury next year.
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However, Lancashire County Council has now announced a five-way split for the cash, agreed with the two other top-tier local authorities – Blackpool and Blackburn with Darwen councils – that signed up to the devolution arrangements.
The project related to the National Cyber Force HQ has been crystallised in the creation of an “innovation hub” within the Samlesbury Enterprise Zone, which will get the joint-largest share of the fund, at £6m. The hope is that it will encourage a ‘cluster’ of related specialist businesses to locate there and enable the site to become a centre of excellence in the cyber security field.
In line for the same amount is a new “innovation quarter” in Blackburn, which is similarly intended to drive the development of digital, cyber and creative ventures.
Across Lancashire, £2m will be invested in the existing £41m Cosy Homes initiative, which helps secure grants for householders to make their homes warmer and more energy efficient.
Meanwhile, Blackpool will see £4m head its way as a contribution to the development of a new town centre office for the Department for Work and Pensions, while the town will also get £4m for its Silicon Sands scheme to create a low-carbon data centre within the Blackpool Enterprise Zone It is hoped that the project – which will be powered by renewable energy – will kickstart a digital campus for high-performance companies.
‘‘Give us more and we’ll do more’
The value and the one-off nature – so far – of the devolution cash pot for Lancashire has previously proved controversial, with opposition parties on the county council comparing it unfavourably to the amounts initially awarded to other areas at the start of their devolution journeys. The likes of the Liverpool City Region were told they could expect £30m a year for 30 years.
However, the ruling Conservative group has described the deal as “historic” and stressed that it also gives the county control of other budgets – like adult education – which currently sit with the government.
At the cabinet meeting where the newly-funded projects were revealed, Labour opposition group leader Matthew Tomlinson said the £20m injection was “better than nothing”, but that it should be seen only as “a step on the journey”.
Tory cabinet member for economic development and growth Aidy Riggott acknowledged that Lancashire could spend more than a thousand times that amount if the Labour government was willing to invest more in the county.
“We have a whole pipeline of £22bn of projects that…we could absolutely deliver. Anybody who has close links to the Labour Party [is] welcome to encourage that course of conversation for us,” County Cllr Riggott added.
While the new government agreed to progress with the Lancashire devolution agreement done by its Conservative predecessor, the county has been asked to come up with proposals for a deeper deal by next autumn.
Cabinet agreed that the county council should become the “accountable body” for the £20m funding ahead of the establishment of the new combined county authority (CCA) which will be set up – likely early in the new year – to oversee Lancashire’s devolved powers.
Under the terms of the deal, the money has to be committed before the end of the 2024/25 financial year next spring – hence the need for an organisation to be responsible for it until the CCA comes into existence.
The Ministry of Housing, Communities and Local Government (MHCLG) approved a single business case for the spending of that cash, rather than assessing the individual projects to which it has been allocated. A report to cabinet members said the arrangement allowed “maximum flexibility and efficiency” to deliver the schemes.
The government has also agreed there will be no “clawback mechanism” for it to reclaim the funding for any reason. However, the county council may itself put in place such a mechanism for cash distributed to Blackpool and Blackburn with Darwen councils, for which County Hall is not the lead authority delivering them.
Grant funding agreements will ensure any conditions in the agreement between the MHCLG and the county council are implemented within each project.
Lancashire leaders react
Lancashire County Council leader Phillippa Williamson said the £20m in funding is “just the first pot of money which will come to Lancashire thanks to the new CCA”.
“These schemes are a great illustration of the type of projects we want to support, which we know will make a lasting difference in the county.
“Each scheme will have real tangible benefits, helping to innovate and create jobs – and, in the case of Cosy Homes, help some of our most vulnerable residents keep warm using the latest technology.
“The innovation hub located at Samlesbury Enterprise Zone, will be a new, exciting, space that allows Lancashire businesses, residents and key sectors to engage with National Cyber Force and the businesses within their supply-chain.
“This will open up new jobs, technologies and opportunities across the Lancashire economy strengthening our capacity to embrace innovation and drive growth,” County Cllr Williamson added.
Phil Riley, leader of Blackburn with Darwen Council, said the projects being funded “will start us on the journey of a new way of working with government for the benefit of the whole of Lancashire once the CCA is formally established”.
He added: “We are looking forward to seeing a new digital and creative business hub be created as a direct result of the devolution deal funding. The former St John Church in Blackburn town centre will get a new lease of life and the Making Rooms, home of innovative technical developments for all to use, will be extended.
“These are all designed to make sure we are well positioned to take advantage of the opportunities ahead and our borough’s entrepreneurial spirit,” Cllr Riley said.
Meanwhile, Blackpool Council leader Lynn Williams described the delivery of the £20m investment as “a historic moment – and signals the start of this new way of working where we will have more control over local decisions and the funding that supports those decisions”.
“The projects being funded in Blackpool are of strategic importance to us. The new town centre offices for the DWP will bring over 3,000 workers into the centre of Blackpool.
“Silicon Sands is a forward-looking project that will bring new, high quality tech jobs to Blackpool. Starting with a small data centre at the Blackpool Airport Enterprise Zone, it will bring a new industry and investment to Blackpool while also tackling the climate emergency at the same time,” Cllr Williams added.
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