Leadership Essentials: Planning Delivering Economic Growth

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
results
1,890 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 1pm
Finish

The experience in the room
For 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

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 Economic Value of Planning
• Matthew Spry
– Nathaniel Lichfield Partnership

Economic Value of Planning
What role can planning play in
stimulating economic growth?
Matthew Spry, Senior Director, NLP
16 October 2014

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

Structure
• Economic and policy context
• Economic outlook
• Policy reform
• The Value of Planning – Key Instruments
• Market Shaping
• Market Regulation
• Market Stimulus
• Capacity Building
• Conclusions
19 Economic Value of Planning

Economic and Policy
Context

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

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

With a key reliance upon certain sectors for growth,
including construction and professional services
Average annual growth rate for employment by sector for each cycle
(%)
Decade of growth (1997-2007) Recession & Stagnation (2008-
Agriculture,
Forestry & Fishing
Construction
Extraction &
Mining
Finance &
Insurance
Hotels,
Restaurants &
Leisure
IT & Media
Manufacturing
Professional
Services
Public Services
1.6
1.1
1.7
1.6
1.6
0.0
2.1
-0.6
1.9
-0.3
2.6
1.4
4.4
-0.5
-0.2
1.4
0.2
1.0
-2.4
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
2013)
5 year growth forecast (2014-
2019)
Source: Experian, NLP analysis
Retail
Transport &
Distribution
Utilities
Average Average Average

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.
Change in sector output (£bn) % from pre-crisis peak for construction*
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.
Source: ONS/NLP analysis

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

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

1. Market Shaping

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

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

Making a place ‘open for business’: What drives investment decisions?
Critical factors What can planning do?
People
Proximity to skilled
workers
Labour productivity &
flexibility
Provide adequate scale of housing for work force
Secure development commitment to drive skills and training
Ensure right type of land / business space is available for different
industries to function in areas with access to labour
Place
Quality of life/amenities
Accessibility/transport
Infrastructure
Opportunity for
development/expansion
Planning policy/development that preserves and promotes quality
of place and access to labour
Plan pro-actively to meet development and space needs of
business
Explore approaches to unlock or bring forward employment
space by providing upfront infrastructure to secure investment
Business
Supply chains
Customers
Clusters and competitive
advantage
Ensure sufficient employment space is available to accommodate
expansion/relocation
Boil down regulations that may hinder or constrain competitive
advantage / development of sector clusters
Consider implementing Enterprise Zone style scheme, providing
incentives for firms to co-locate and interact
Confidence in a location as a place
to do business

The 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
California
692,000
tech/info workers
*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
Impact of new technology,
knowledge and high value added
Nissan’s factory in Sunderland
1999
271,157 cars
4,594 workers
2013
480,485 cars
5,462 workers
Factory is now one of the most
productive in Europe
3D printing originally
conceived as a tool to make
one-off prototypes. Potential to
be scaled up and completely
transform manufacturing
sector
An additive approach to
manufacturing
Open, innovative economy
craves proximity and
integration
Cambridge Life Sciences & Healthcare cluster
Media City Salford
31

Planning for a changing retail and leisure economy - spending less in
shops but spending more on leisure and experiences.
% of total household expenditure
25
20
15
10
5
0
Non-food Retail spend Leisure
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 2012
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: Telegraph/BBC Source: Retail Gazette
32

• 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

• #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

• #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

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?

2. Market Regulation

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

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

• 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 Benefits

• 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
Economic Value (Jobs / GVA / Taxes)
Time
Yr 2
Yr 10
Net additional benefit

• 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

• #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)

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?

3. Market Stimulus

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

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?

• #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

• #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.

• # 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.

• Application of market stimulus needs to be targeted to reflect
outputs sought and market circumstances (is there latent demand?)

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?

4. Capacity Building

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

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

• #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

• 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?

• #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

• #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?

• #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.

• 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

• 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?

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?

Conclusions

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

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
level
Focusing 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 distinctively
Refreshing 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
devolution
Agree and
deliver
structural
and statutory
change
Developing
the
instruments
of change
Making the
most of short
term
incremental
opportunities

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?

Thank you
DavidMarlow@thirdlifeeconomics.co.
uk

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?

Evening Dinner 7pm
Pre 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:
- Martin Hutchings (PAS)
Lunch 1pm
Finish

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.

Research
The 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
rebecca.cox@local.gov.uk
020 7187 7384
nonmet_commission@local.gov.uk

Planning Quality Framework exercise:
• Martin Hutchings
– PAS

The
Planning Quality Framework
Leadership essentials Oct 2014
Martin Hutchings
Improvement Manager
PAS
www.qualityframework.net www.pas.gov.uk

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

“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
did that work?
focused improvement
wasted time/effort
routine / unusual
validation
big stuff / small stuff
conditions
how much of what?
permitted development
do customers like us?
neighbours feel ignored?
good ideas did we/do we add value?
evidence / guesses
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
“There’s nothing new under the sun”
Ecclesiates 1;9
• performance management
• customer care, customer satisfaction
• pre-app and post app reviews
• annual monitoring reports, design guides

demonstrate the value of your work
“There’s nothing new under the sun”
Ecclesiates 1;9
• performance management
• reporting system data (e.g. PS1/2 returns)
• customer care, customer satisfaction
• pre-app and post app reviews, AMR
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
Applicants
Quantitative Qualitative
Neighbours
Reviewer(s)
Organisational - (ICT,
teams, headcounts etc.) C’llrs
Amenit
y
Groups
Staff
Outcomes
Resources “Value”
Process What if ?
Design build PoruatcocmteisceQ&A Tips ?

Overview
Outcome
s
The work Agents
Applicants
Neighbours
Reviewer(s)
C’llrs
Amenit
y
Groups
Staff
Quantitative
Q&A Tips ?
Resource
s
“Value”
Process What if ?
Qualitative
Opinions
Facts
teams, headcounts etc.)
Design, build,
outcomes Practice helpful tools

quantitative: applications data
The work Outcomes
Process What if ?

qualitative: 8 customer Surveys
Agents
Applicants
Neighbours
Officer
Staff C’llrs Amenity
Groups

practice
• 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 negotiation outcomes Pre/post app

It’s a framework
The work Agents
Applicants
Neighbours
PrQocess uWhata if ? lity
Reviewer(s)
Outcomes
How are you organised ?
(ICT, teams, headcounts
etc.)
C’llrs
Amenit
y
Groups
Staff
Design negotiation outcomes Pre/post app

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 this
35 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 WORK
1a. development categories
Big stuff

PART 1 - THE WORK
1b. 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 - OUTCOMES
2a. 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?

PART 3 – VALUE/NON VALUE
3a. 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 applications
Purpose: 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?

3d. Non-heritage applications zero fee

PART 4 – RESOURCES
4b. 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 cost
of 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 – PROCESS
5a. 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?

Quick guide to box plots
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?
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.

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
Applicants
Neighbours
Officer
C’llrs
Staff Amenity
Groups

‘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)

How
• 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?

survey results
Helpful
2
1.5
1
0.5
0
-0.5
-1
-1.5
-2
Use of time
Use of information
Clarity of decision
Applicant
Neighbour
Review
Application Ref: HA/FUL/4456/14

Customers – part 2
annual 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. Practice
assessment Notes
a) Quality of planning Did we mediate well ?
b) Quality of
Has the development
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
admin@qualityframework.net
• 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. planning@council.gov.uk)
• Portfolio holder (optional)

thank you – QUESTIONS?
email martin.hutchings@local.gov.uk
web www.pas.gov.uk
phone 020 7664 3000

In comparison to benchmark
Benchmark Quality framework
You have to do it all Modular
Once per year Just start
Snapshot Ongoing & regular
Industrial strength
Low hassle
accounting
Internal management tool External badge
Councils only Councils, developers and
RTPI
Understand value for
money
Understand quality

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.
(Both accessible from
our homepage.)

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