The £100m Growth and Housing fund enables us to bridge funding shortfalls in highways schemes that are currently stalled. The fund is specifically targeted at mature local highways schemes that can both deliver improvement works on the ground, and enable the delivery of jobs and homes wherever possible.
All schemes are delivered in partnership and must attract significant match funding. It’s important that our funding does not displace private developer contributions or other funding from our government partners. We work directly with Local Enterprise Partnerships, Combined Authorities, Local Authorities and national growth partners, in particular; Homes England and the Ministry of Housing Communities and Local Government, to identify, develop and deliver schemes.
The fund has the following core objectives:
- To enable the delivery of as many jobs and homes as possible by 31 March 2021 by bridging funding gaps in specific highways improvement schemes on – or nearby and affecting – the Strategic Road Network needed to unlock specific stalled developments.
- To leverage as much match funding as possible, at least 50% overall, from both public and private sources, with Growth and Housing fund investments of up to £5m per scheme (up to £10m where exceptional value for money can be demonstrated).
- To enable the realisation of local, strategic housing and economic growth benefits, such as the likely unlocking of development outside of the current Road Period (after 31 March 2021) or beyond the immediate development sites.
We identify schemes using national bidding rounds. We invite the Local Enterprise Partnerships and Combined Authorities to work with Local Authority partners, and our local delivery teams, to develop proposals.
Our initial criteria are:
- Planning readiness – priority will be given to schemes where planning approvals are in place
- Early and substantial delivery of jobs – a clear route to delivery of jobs as early as possible within the Road Period can be demonstrated
- Early and substantial delivery of homes – a clear route to delivery of homes as early as possible within Road Period 1 can be demonstrated
- Intensity – we are aiming to attract over 50% of all scheme funding from other sources.
- Confirmation of match funding – confirmation that match funding is sufficiently secure to provide confidence that the scheme is ready to go
- Design readiness – scheme design is complete or expected to be complete within a timescale allowing quick delivery
- Additionality – clear case that the fund’s investment will be additional to what would happen anyway without the funding, for example by bringing forward developments more quickly
- Wider impact – a demonstrable benefit for other Designated Funds, or other HM Government priorities
Proposals that pass the initial sift will then be invited to proceed to a full and detailed appraisal, led by our service providers. Schemes that are unable, for example, to demonstrate reasonable levels of developer contributions may be asked to rework their proposals or may not proceed on value for money grounds.