Agenda item

Consideration was given to a report on the overview on the progress of the Creating a Better Place strategic framework and capital regeneration programme.

The Committee was informed that Approval from Cabinet was obtained in August 2020 for the revised programme. Following discussions with Scrutiny Committee Members, the new programme reflected on the priority areas to support the Borough’s economic and social recovery in support of the financial implications associated with the response to the Coronavirus (CV19).

Members were provided with the priority areas which were as followed:

·         Building quality homes

·         Providing opportunities to learn and gain new skills

·         Providing opportunities to grow local businesses and create jobs

·         Ensuring Oldham is the greenest Borough

·         Embedding sustainability, energy efficiency and low (zero) carbon

·         Improving life-chances and the health and well-being of our staff, residents, and local communities.

The priority areas would bring social benefits to the Borough, which included the potential to deliver over 2,000 homes in the town centre by embracing brownfield sites to support urban development which would reduce the amount of greenbelt needed to meet Oldham’s Housing Need. Alongside that there was a potential to deliver an additional 1,000 jobs and 100 apprenticeships whilst also improving the populations life chances and health and well-being.

Members were informed of the Environmental Benefits which included:

·         Public sector leading by example – zero carbon by 2025

·         Zero carbon new homes and businesses by 2030

·         Energy efficient buildings – homes and businesses

·         Greenest Borough in Greater Manchester

·         Cleaner air

·         More electric vehicle parking / promotion

·         Better connected environment for healthier travel choices

·         Thriving communities and businesses.

The revised programme had helped reduce the Capital investment by c£90m with external funding bids to be sought. The programme had also identified £8.5m of revenue savings over the next 5 years, with the first year covering 2021/22. There had been a £285m capital commitment from the Council along with seven confirmed bids, two bids awaiting news and one bid to be submitted following publication of the White Paper, However, it would initially cost £125k of revenue to secure the Levelling Up Fund bid. The programme would allow for a 5-year delivery programme with +22% social value added. Out of the £7.5m contract value, £3m had been received back.

Whilst there were several benefits to the programme, there would be challenges to face mainly around construction. Within the construction market, Contractors were not able to hold prices by more than a few weeks (standard 90 days) that could be affected due to the decision-making processes. There were also issues of material shortages that caused escalation of prices and longer ordering timescales. The construction market had also suffered during Covid due to sourcing sufficient labourers and drivers and sourcing site accommodation. It was estimated that the current issues would cause a minimum of 20-25% increase to budget costs with Economic Specialists predicting that the problems would continue for 3-5 years.

Construction Insurance had also become a major challenge, prior to the Coronavirus pandemic, 17 insurers were available to underwrite building renovation works. That had reduced to 4 as a result of high-profile losses including Grenfell, Glasgow School of Art, Mandarin Oriental, and Primark in Belfast. It had been recommended by insurers to market six months ahead of the works being undertaken to assess the appetite for the projects.

The Committee were provided details of strategic partnerships in place at Broadway Green with Grasscroft and Seddons and at Hollinwood with Langtree. Members were also informed of the various housing projects which included the 19 x 5 bed homes for Affordable Rent at Primrose Bank, the various HRA infill sites that would create c40 new homes over 7 cleared sites and the housing pipeline development of c2,000 new homes which included over 900 in the town centre and 12 brownfield sites identified for different tenures/house types. To facilitate those projects £800k had been allocated from the Growth Deal Fund to facilitate road access onto the Southlink site and a Brownfield Housing Land Grant of £6m towards Derker and Southlink.

The programme included the School Capital Programme. Saddleworth School would be completed in early 2022 and Greenfield Primary, Crompton House, Oldham Academy North, Kingfisher Hydropool, Mayfield Primary, and St Pauls Primary School gone through practical completion. Future school developments included:

·         North Chadderton: Cabinet approval Nov/Dec ‘21. Start on site expected 2022

·         Kingsland: Design progressing in collaboration with school.

·         Bluecoat (II): Land deal confirmed with DfE. Planning approved. DfE appointed Willmott Dixon to progress design work

·         Kingfisher MAT Free School: New Special Educational Need Free School to open 2022.

The Committee were advised of the Green New Deal Projects which included:

·         Oldham Energy Futures (CWB): Externally led Carbon Co-op, funded.

·         Oldham Community Power: solar panels installed on 5 school rooves (phase 1). Currently seeking funding to all roll out of phase 2 (more schools and health sites)

·         Green Your Neighbourhood: appropriate community engagement to complement street cleaning and other community “green” priorities

·         COALESCCE: Interreg Europe revenue funding to lead integration of actions into GM Env Strategy. (complete)

·         Local Energy Market / green Power Purchase Agreements: GM programme procurement work needed

·         Growing the green economy / jobs & skills: integrated into Economic Growth Strategy refresh.

Members were informed of the £10m confirmed Future High Street Fund allocation that would be used for the Egyptian Room fit out, the Prudential Building, Union Street for the potential use as an incubator hub, and Accessible Oldham to enhance the public realm development around Mumps for pedestrians, cycling and public transport routes. £24m had been confirmed for the Town Deal Projects which would be used for Northern Roots, the new Theatre and Performance Space, Tommyfield Market and an Entrepreneur Space. To advertise and gain the public’s view on the schemes and programme, the Council had launched The Big Conversation which was now live.

Members asked for and received clarification on the following:

·         Projected and actual costs of schemes. Members were advised that Officers working on the projects would calculate the costs and contingencies would be in place if there was a need to go over budget.

·         Creation of green jobs. It was noted that a consultation would be held to look at green working for Oldham residents in the Borough. Oldham College had a construction qualification available that could be linked to future projects.

·         The creation of the Council’s own companies. Members were advised that 3 separate teams had recently applied for the Kickstart Grants to look into that option.

·         Possibility for the Committee to tour the sites and potential projects. It was noted that it would be arranged for the Members to attend.

RESOLVED that:

1.    The progress and updates provided for the Creating a Better Place strategic programme be noted.

2.    An update be provided to the Committee in June 2022.