Sheffield CEO calls for shift in attitude to risk
0City Deals should see councils getting used to different risk attitudes, according to Sheffield City Council chief executive John Mothersole.
“We have to develop an attitude to risk because to make progress risk has to be taken,” Mothersole told Room 151. “It should be sensible, commensurate risk, but it is a different approach to spending public sector money. In financial strategy terms, City Deals and TIF means we need to get more used to investing in schemes with a view to making our money back.”
As part of Sheffield’s City Deal, announced last week, the city will form a self-sustaining investment fund to spend on local projects and use TIF and devolved Department of Transport funding to fund infrastructure. Birmingham, Bristol, Manchester and Leeds will also create investment funds and Newcastle and Nottingham will also have access to TIF. “Those cities who have had TIF approved, clearly have the capacity to do the planning and the thinking around this,” said Mothersole.
Sheffield has created a fund of funds to contain several funds for growth, such as its City Deal transport fund and a £20m JESSICA for the newly formed – as part of the City Deal – South Yorkshire Combined Authority.
A fund manager will be appointed to manage Sheffield’s investment fund, which with all its components will deliver a shared investment of more than £700m. As well as the transport fund of £500m in devolved funding and levy and the JESSICA components the fund will comprise: £140 from the local authority, which includes £64m from a city centre TIF and £60m in assets and borrowing; £26m of Local Enterprise Partnership money and £9m from HCA.
James Newman, chairman of the Sheffield City Region Local Enterprise Partnership commented: “Our £700m shared investment programme creates the funding firepower for business leaders to influence local funding allocation decisions – so that future investments are prioritised on creating new growth opportunities.”
In other financial headlines of the City Deals announced recently, Leeds will form a combined West Yorkshire authority as well as Sheffield forming the South Yorkshire Combined Authority. Both follow in the footsteps of Manchester, which has worked with the Greater Manchester authorities for years. Newcastle is moving towards a North East Combined Authority and Greater Birmingham and Solihull are working closely across their LEP. All core cities will have joint investment programmes with the private sector for housing development and regeneration.
Announcing the deals Cities Minister Greg Clark said that the government would “shortly set out next steps for this radical extension of power to other places across the country”. On antagonism from some quarters over the core cities being given more powers Mothersole said: “My view on that is that this didn’t happen overnight, this organisation ‘in favour’ of cities took five years. We got together and we made the case, I think anywhere should do that if they feel they can.”
