1. Learning, Skills and Innovation Partnership 8 th October 2015 Tracy Murphy Tracy.murphy@kpmg.co.uk

2. 1 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. City Deal Regions Collectively, the deals from Wave I have the potential to create an estimated 175,000 jobs over the next 20 years and 37,000 new apprenticeships. Wave IWave II Bristol Newcastle Manchester Birmingham Leeds Sheffield Nottingham and Liverpool the Black Country Greater Brighton Greater Cambridge Coventry and Warwickshire Hull and the Humber Great Ipswich Leicester and Leicestershire Greater Norwich Oxford and Oxfordshire Plymouth and South West Peninsula Preston, South Ribble and Lancashire Southampton and Portsmouth Southend-on-Sea Stoke-on-Trent and Staffordshire Sunderland Swindon and Wiltshire Tees Valley Thames Valley Berkshire

3. 2 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Summary of Ideas to support skills growth by Wave I City Deals 1)Creation of City Apprenticeship Hub to centrally promote and manage apprenticeship provision and to promote growth of apprenticeships. 2)Developing an employer brokerage system to provide employers with skills advice and guidance and to remove bureaucracy 3)Establishing Apprenticeship Training Agencies to act as an employment agency on behalf of employers unable to employ an apprentice directly. 4)Promotion of Group Training Agencies, which are employer owned and led. This model would enable groups of employers to each contribute towards the delivery of apprenticeship frameworks and standards. 5)Development of a new programme for enterprise education in local schools 6)To form a unified job creation investment fund for Small and Medium Size Businesses 7)Establishing a Skills for Growth Bank – an employer-owned mutual to simplify skills funding through grants and loans to businesses. 8)Improvement to the effectiveness of the skills system – by piloting a “payment by results ‟ approach to adult skills 9)The Commissioning of Youth Unemployment Task Force.

4. 3 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Summary of Ideas to support skills growth by Wave I City Deals 10)Implementing a Skills for Growth Compact. This will commit employers, colleges and schools to building a best-in-class skills service to link pupils and learners with real-world work opportunities. 11) To offer a Guarantee to the Young supported by a range of integrated pathways including education, training, volunteering, work experience and apprenticeships, leading to jobs and higher level qualifications. 12)Opening a 4-24 Apprenticeship Academy which will offer to young people of multiple routes to employment starting from school age and leading up to higher education qualifications. 13) Piloting a skills tax incentive and locally determined outcome payments to providers Full and completed bids for Wave 1 and submissions for Wave II can be found here. https://www.gov.uk/search?q=city+deals https://www.gov.uk/search?q=city+deals

5. 4 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bristol Implement a single skills investment plan linked directly to the West of England LEP jobs growth agenda, and complementing capital investment through the Economic Development Fund, for the whole of FE college post-16 provision with a total value of £114m. Create a City Apprenticeship Hub to deliver an average of 5% per annum increase in 16-24 apprenticeship starts over 3 years (2013-15). Develop and implement the business-led Charter Mark to enhance the employability of young people entering the labour market. Provide strong governance through the West of England LEP Skills Group with sustainable collaboration between business, the city-region and learning providers.

6. 5 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Newcastle To improve employment opportunities, through: co-location of services, sharing of data, more integrated working and co-financing between Jobcentre Plus and local services; implementation of a more effective employer-led skills system, including through the Newcastle Skills Hub; increasing apprenticeships by 15%; and delivering a locally-devolved NEET Youth Contract Pathfinder across Newcastle and Gateshead. We also intend to work with local apprenticeship providers and firms to reduce the cost and risk of taking on an apprentice for SMEs, increasing apprenticeships by 15%, or 500. Government funding, through the City Skills Fund, will be used support these activities.

7. 6 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Sheffield We believe we can play the key brokerage role necessary to stimulate businesses to invest in skills and to incentivise colleges and providers to respond quickly and flexibly to the emerging skills needs of key sectors. We will support small businesses in Sheffield City Region (SCR) by removing bureaucracy. Through this agreement, SCR will deliver 4,000 additional Apprenticeship places and achievements, and 2,000 additional employees’ up skilled The creation of a City Region Hub based on learning from the successful Opportunity Sheffield brokerage model (developed using the City Skills Fund) which will include an Apprenticeship Training Agency (ATA) and sector-based Group Training Associations (GTAs) that are organised by employers and supported by colleges and providers where no single SME can afford to employ the apprentice full time

8. 7 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Nottingham Work with the ESB to strengthen accountability on skills Up to £1m for a Skills and Apprenticeships Hub Notional ring-fending of up to 300 AGE grants to boost apprenticeships. Use of the Innovation Code to support the delivery of provision and development of new qualifications where gaps exist in the current offer. Flexibility and to develop a Youth Hub to tackle unemployment. Dialogue to develop a new programme for enterprise education in local schools. Subject to business case, up to £0.3m funding to increase capacity in the Voluntary and Community Sector to deliver qualifications to low skilled parents from disadvantaged communities.

9. 8 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Liverpool Up to 10,000 Additional New Jobs Created with SMEs – from a unified job creation investment fund for Small and Medium Size Businesses; The Skills for Growth Bank – an employer-owned mutual to simplify skills funding through grants and loans to businesses. Unlocking £20m skills co-investment from the Private Sector and allowing businesses to reshape the skills system to deliver 6,000 Apprenticeships and help 7,400 people into work; Significant improvement to the effectiveness of the skills system – by piloting a “payment by results ‟ approach to adult skills, where providers are rewarded when their services get people into work or progress in work; and Reducing long-term youth unemployment by half in three years – by Government supporting directly (and through its contracts) the recommendations of an ESB commissioned Youth Unemployment Task Force.

10. 9 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Birmingham Tackle the long-standing skills deficit that weakens our economy, by implementing a Skills for Growth Compact. This will commit employers, colleges and schools to building a best-in-class skills service to link pupils and learners with real-world work opportunities. Our ambition is to recruit 25% of local businesses to the Compact by 2015. 3560 apprenticeships (AGE) grants to be delivered by March 2013; We would also like to develop a gain-sharing arrangement whereby jobs created through specific initiatives are rewarded financially through a share mechanism to recycle the benefit into further development of the supply chain, skills training and creating a job-ready workforce. This model could be developed first around Birmingham Energy Savers and then once proven, rolled-out to other appropriate initiatives.

11. 10 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Leeds Transform the city region’s job market with progress on two fronts: a long-term ambition to move to a ‘NEET-free’ Leeds City Region and to shape the skills investments of Government, employers and individuals to align with the real growth sectors in our economy Our first step is to offer a Guarantee to the Young supported by a range of integrated pathways including education, training, volunteering, work experience and apprenticeships, leading to jobs and higher level qualifications 4-24 Apprenticeship Academy in Leeds at the heart of an offer to young people of multiple routes to employment starting from school age and leading up to higher education qualifications. These will incorporate Apprentice Training Agencies delivering sustainable jobs with SMEs which would otherwise not employ apprentices, supported by dedicated employer incentives in line with BIS and LEP priorities.

12. 11 © 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Greater Manchester Create a City Apprenticeship and Skills Hub to place apprentices with SMEs, as well as piloting a skills tax incentive and locally determined outcome payments to providers Creating 6000 apprenticeships & 2000 adult skills programmes To provide support to SMEs (information, contracting etc) through the Hub, where there are capability or information gaps that prevent SMEs from functioning as effective customers for skills. The Hub will also be used to make or broker 'deals' between groups of SMEs and skills providers which secure a better return on the state's investment in skills Development of agreements between providers and the LEP, to deliver LEP Priorities. These agreements should cover all of the budget deployed in the City Region that is received by providers from Government