Background to Localism in Action

Devolution Agenda  Devolve powers and budgets to boost local growth in England.  Devolve far-reaching powers over economic development, transport, skills and social care to large cities which choose to have elected mayors.  Legislate to deliver a deal for Core Cities and Combined Authorities.  Devolve further powers over skills spending and planning to the Mayor of London and other Combined Authorities.  As part of approving the ‘asks’, agree with each Combined Authority the scope of a skills area review.  9 areas have devolved powers over Skills. Tees Valley, West Yorkshire, Sheffield, Liverpool City Region, West Midland, Greater Manchester, North East, Cornwall, London.  Many more in discussion 2

Simplified Funding Underpinned by streamlined responsive funding that allows for flexibility:  Block grants to support local commissioning  Simplified national funding framework – eligibility  More flexible funding – not limited to qualifications  Simpler, more efficient and predictable funding system  Outcomes focused

Local Commissioning  Providers currently required to demonstrate working with LEPs to deliver priorities  Devolution/commissioning arrangements will go further  Local areas to participate in the reshaping and commissioning of local adult education budget provision  Area reviews looking at infrastructure – ensuring fit for purpose  Commissioning arrangements will link to strategic outcomes for areas

Commissioning the Skills Education Budget  The LA is a contracting authority, and as such is subject to the requirements of Public Contract Regulations Once the funding is theirs, it is down to them how they interpret the regulations in relation to education and training.  An LA may (as BIS does now) decide to fund a college or ACL provider under a grant arrangement to enable them to deliver their statutory function (i.e. the delivery of education and training to their local community). If so, they are not delivering a service under the terms of PCR 2015, removing the need to go out to competitive tendering. 5

Devolution Deals 1.Greater Manchester (Nov 2014);Greater Manchester 2.Sheffield City-Region (Dec 2014; Oct 2015);Sheffield City-Region 3.West Yorkshire (March 2015);West Yorkshire 4.Cornwall (July 2015)Cornwall 5.North East (Oct 2015)North East 6.Tees Valley (Oct 2015)Tees Valley 7.Liverpool City Region (Nov 2015)Liverpool City Region 8.West Midlands (Nov 2015)West Midlands 9.London

New areas being considered 7 Cheshire and Warrington Hull Leeds City Region Hull Leeds City Region Hampshire and Isle of Wight Oxfordshire and districts England's Economic Heartland (Oxfordshire, Buckinghamshire and Northamptonshire) Three Southern Counties (West Sussex, East Sussex) and Surrey Greater Brighton Heart of South West West of England Gloucestershire Wiltshire Dorset Cambridgeshire and Peterborough Suffolk Norfolk D2N2 (Derby, Derbyshire, Nottingham and Nottinghamshire) Lincolnshire Worcestershire Herefordshire Cumbria North Yorkshire

Skills Devolution Deals examples: 8 Skills Greater Manchester Funding Devolution Deal Responsibility:  Devolved Apprenticeship Grant for Employers.  Greater Manchester Partnership commitment Devolution Deal Power to re-structure the Further Education provision, 16 to 18 skills. Skills Sheffield City Region Funding Devolution Deal  Adult Skills Budget devolved from the Skills Funding Agency to the city.  Responsibility for chairing an area-based review of 16+ skills provision, including all post-16 education and training provision in the initial analysis phase. Recommendations will focus on General FE and Sixth Form Colleges. The outcomes of the review will be taken forward in line with the principles of the devolved arrangements. Cornwall Policy commitment Devolution Deal Greater LEP involvement:  In boosting skills, including reshaping training and learning provision, developing new apprenticeship opportunities and improving careers advice for young people. London (Still to be finalised)  Learners have the information they need to make informed choices about their learning, and have access to coherent skills development pathways that enable them to enter and progress in work;  London government has oversight of the skills system and is able to hold providers to account for delivering outcomes for London’s learners and businesses, while driving efficiencies by aligning and pooling budgets and services.

Example of a Skills Agreement 9 Three stages 1. The Combined Authority will begin to prepare for local commissioning in 16/17.  It will develop a series of outcome agreements with providers about what should be delivered in return for allocations in the 2016/17 academic year.  Providers will receive their total 19+ skills funding as a single block allocation. (SFA working on how do this).  Combined Authority to agree with providers the mix and balance of provision that will be delivered in return for the block funding, and to define how success will be assessed. 2. For the 2017/18 academic year, and following the area review, Government will work with the Combined Authority to vary the block grant allocations made to providers, within an agreed framework. 3. From 2018/19, there will be full devolution of funding.  The Combined Authority will be responsible for allocations to providers and the outcomes to be achieved, consistent with statutory entitlements.  Government will not seek to second guess these decisions, but it will set proportionate requirements about outcome information to be collected in order to allow students to make informed choices.

Timescales  2016/17 - enabling local commissioning of outcomes  2017/18 - deal areas will inform the block grant allocations made to providers, (within an agreed framework)  2018/19 - full devolution

Project Aims  This project has been designed to explore the different local mechanisms and structures that are being established to support the implementation of Devolution Skills Deals  The project takes into account the changing national and local authority landscape and legislation relating to localism, devolution and combined authorities and area reviews. 11

Project Intended Outcomes  Through a survey, assess sector readiness for devolution and localism.  Case studies: we will provide information on four successful partnerships  Guidance note – top tips on the different emerging models: This will include how best to:  set up a localism partnership including relationship building,  determine and agree priorities,  monitor the effectiveness of the partnership,  and build up the data needed to monitor outcome agreements.  Two dissemination events: March Target group for the first event will concentrate on leaders in Local Authorities while the second will target the supply chain of small charities that deliver ACL.  Broadcasting of good guidance materials through the ELMAG portal. 12

Source Materials  Devolution  Area Reviews training-institutions-list-of-area-reviews/reviewing-post-16-education-and- training-institutions-details-of-the-area-reviews  Leadership Support (ETF) 13