DD2522 2030 Future Neighbourhoods

1.1. This DD gives details of the 2030 Future Neighbourhoods (FN 2030) programme, a multi-year programme to support the delivery of 2-4 exemplar, transformative neighbourhoods tackling environmental challenges in areas of high deprivation. MD2708, which was approved in November 2020, allocated £3m of budget from the Green New Deal fund for phase 1 of the programme. MD2708 also delegated authority for detailed programme level expenditure plans through a Director Decision form.

1.2. The Green New Deal Fund is a three-year programme that aims to tackle some of London’s defining environmental challenges, including the climate emergency and air quality, whilst creating jobs, developing skills and supporting a just transition to a low carbon circular economy. MD2708 approved expenditure of £10 million for 2020/21.

1.3. The Fund is aligned to delivering the priorities of the London Recovery Board’s Green New Deal mission as part of London’s response to the COVID-19 pandemic. It represents one lever to drive action in relation to the mission.

1.4. £7.5 million has been proposed for the Future Neighbourhoods programme subject to further approval via the Authority’s decision making and budget processes. This includes £3 million of expenditure already approved by MD2708 on the first phase of the FN 2030 programme.

1.5. This DD2522 sets out the first phase of Future Neighbourhoods 2030, in which £3 million will be spent in the period 2021/22 and 2022/23. It is intended that there will be a phase 2 element of the programme that will span from 2022-23 to 2023-24. However, the detailed spending plans for phase 2 will be subject to further approval via the Authority’s decision-making and budget processes.

1.6. The FN 2030 programme will support the development of 2-4 Future Neighbourhoods by funding exemplar, transformative, area-based strategies and projects that have been co-designed with the local communities. The funding will start the delivery of a coordinated area-based plan of activity across a range of environmental priorities and deliver on the objectives of London’s Green New Deal. Grant funding will be awarded via a transparent competitive application process, in accordance with the GLA’s Contracts and Funding Code.

1.7. A key part of the FN 2030 programme is that exemplar neighbourhoods should initiate or accelerate the development of borough wide approaches for tackling their environmental challenges and establishing world-leading sustainable boroughs in London.

Objectives

2.1. To support the development of 2-4 transformative future neighbourhoods, which will act as environmental exemplars, sharing best practice, driving new approaches and catalysing long-term reductions in GHG emissions and improvements to the environment. Communities in the selected future neighbourhoods, currently in areas of deprivation, climate vulnerability or most impacted by the pandemic, will make long term commitments to 2030 to deliver transformative action that will inspire others, be replicable and test innovation.

2.2. Future Neighbourhoods should support the three themes of the Green New Deal, namely to:

• Decarbonise the Built Environment – improve the energy efficiency of buildings; reduce and manage energy consumption; reduce the carbon intensity of energy supply and waste systems; develop district energy networks; and accelerate the speed at which London decarbonises.

• Green Transport and Public Realm – reduce transport emissions; catalyse more active modes of transport and ultra-low emission vehicles; improve air quality; and the quality, diversity, connectivity and functionality of our natural environment while increasing its resilience and adaptation to climate change impacts.

• Provide Green Foundations – support the growth of new and existing low carbon, environmental and circular businesses; support Londoners on green skills; lobbying for devolved powers to support London’s transition; enable the flow of private sector capital for climate and environmental action; and engage with citizens to support sustainable behaviours.

2.3. The programme will support exemplar projects. Boroughs and partners will be expected to share knowledge and design replicable approaches that:

• improve London’s natural environment, improve air quality and tackle the climate and ecological emergency;

• promote and incentivise activities that sustain and grow London’s green economy;

• prioritise interventions reducing health inequalities and social injustices; and

• engage Londoners and businesses in their journey to become a zero pollution and greener city.

2.4. As well as support for projects, each FN 2030 area will receive support to develop a costed strategy and delivery plan to 2030. The strategy should identify how successfully demonstrated elements will be scaled up and rolled out across the borough by 2030, be embedded into their community plans and form an integral part of their plans to tackle the climate and ecological emergency.

2.5. To support a package of phase 1 projects in each exemplar zone or neighbourhood in 2021/22 and 2022/23 (and additional phase 2 projects in future years subject to funding approval in a future Mayoral Decision) that will:

• be permanent interventions;

• be underway in the year 2021-2022, delivering tangible outputs and impact within the first 12 months. Phase 1 projects will spend £2m in 2021-22 and a further £1m in 2022-23 against agreed milestones;

• showcase best practice in strategic interventions that can be scaled up across the borough and be replicated elsewhere in London;

• be developed in partnership with local organisations and communities;

• be in neighbourhoods with high levels of deprivation, in communities most impacted by the pandemic, and/or where residents are most vulnerable to the impacts of climate change; and

• support diverse and inclusive communities, reduce inequalities and go further to encourage disengaged communities to participate in the co-creation of the Future Neighbourhood.

2.6. The programme will also encourage approaches that support and align to the objectives of other missions vital to London’s recovery, in particular, the High Streets mission, the Strong Communities mission, the Healthy Food and Weight mission and the Good Work for Londoners mission.

2.7. Future Neighbourhoods will maximise the use of relevant existing GLA programmes, such as the retrofit accelerators and local energy accelerator.

2.8. Future Neighbourhoods will work with private sector partners to test innovations and scale up their own delivery plans too over the course of the programme.

Outcomes

2.9. Commitment of 2-4 neighbourhoods to work towards the Mayor’s net zero carbon emissions ambition by 2030.

2.10. An engaged and inclusive local community that has co-designed the strategy and been involved in the project development and is committed to the ongoing delivery to 2030.

2.11. A strategy and delivery plan to 2030 for each supported neighbourhood, which integrates existing schemes and trials new approaches to deliver:

• a proof of concept net zero carbon and zero emission zone, with energy efficient buildings and clean transport, transformed by the supply, integration and use of clean and flexible local energy;

• the best air quality in the Capital, with high numbers of zero emission vehicles and where active travel is the norm;

• a neighbourhood ready for the future, with changes to consumption patterns that help reduce climate impacts and with people, infrastructure and supply chains that can adapt to cope with severe weather and longer-term climate change impacts, like flooding, heat risk and drought;

• easy access to high quality parks and green spaces for all in the neighbourhood, with a leafy and green public realm, trees for shade and shelter and sustainable drainage to absorb rainwater;

• a network of green infrastructure to provide green routes to encourage healthy walking and cycling and wildlife corridors to encourage biodiversity;

• best practice waste handling, with no biodegradable or recyclable waste being sent to landfill and at least 65 per cent of municipal waste being recycled;

• a community with circular economy principles at its core;

• diverse communities empowered to take action, who are aware of their own environmental inequalities and motivated to help reduce them at a civic level, e.g. tackling fuel poverty and the unequal health impacts of air and noise pollution;

• green jobs that pay at least the London Living Wage, and local economic activity contributing to a doubling of the LCEGS sector in London, whilst developing skills and providing training opportunities, in order to facilitate a just transition; and

• a plan and commitment to scale up the approach beyond the zone and across their borough.

2.12. Strategies will be complete by March 2022. Phase 1 projects will be underway before this date and will align with existing relevant plans (e.g. climate action plans) that will feed into the Future Neighbourhood Strategies. Phase 1 projects will be delivered by March 2023 at the latest.

2.13. Future Neighbourhoods will be in areas that have been impacted hardest by the pandemic, are deprived or are particularly vulnerable to climate change. Future neighbourhoods will deliver outcomes which address the unequal health impacts of poor air quality, fuel poverty and lack of access to green space which have exacerbated the impacts of the pandemic, particularly for those in deprived neighbourhoods and from minority groups. Projects will deliver outcomes in relation to at least 3 (preferably more) of the following:

1. Retrofitting of homes, commercial and public buildings (prioritising fuel poor, social housing and new delivery models);

2. Decarbonisation of the energy system – heat networks, exploitation of local secondary energy sources, local renewable energy generation, energy storage;

3. Zero emission transport – active travel and transport, EV charging, cycle lanes delineated from the road network;

4. Climate adapted, resilient, biodiverse and green neighbourhoods, e.g. de-paving, green roofs, green infrastructure, sustainable urban drainage, river channel restoration; and

5. Zero waste and circular economy, e.g. waste action areas, food waste redistribution, repair shops, shared workspaces, libraries of things etc.

2.14. Projects funded by the Future Neighbourhoods programme will need to demonstrate how they are supporting more sustainable behaviour, sustainable development, community action and green skills and jobs. They will further need to demonstrate how they are addressing the unequal health impacts of exposure to air pollution, fuel poverty, heat waves and access to green space.

2.15. FN 2030 projects will also be expected to deliver additional investment from other sources to deliver the projects in addition to match funding from the applicant (see paragraph 2.23 below), such as support from utilities and other relevant stakeholders. Proposed levels of match funding have been tested with a number of boroughs, via London Councils.

2.16. Each Future Neighbourhood will demonstrate measurable environmental improvements, e.g. reduction in GHG emissions, improvement in air quality, green cover, recycling rates.

2.17. Once Future Neighbourhoods have been selected through a competitive two-stage process, aggregate targets will be developed for the entire programme, and will specify expected measurable environmental outcomes, such as those improvements outlined in paragraph 2.16.

How the Future Neighbourhoods will be selected

EoI stage

2.18. The GLA will invite expressions of interest (EoIs) from applicants which will set out their broad proposals for catalysing the development of Future Neighbourhoods. London Boroughs will need to be the lead applicant or be a key project partner, given the scope of the programme. Applications could also come from Business Improvement Districts or community groups, for example.

2.19. Applicants will need to define their target neighbourhood. These will focus on areas of deprivation and/or areas vulnerable to climate change and/or areas most adversely impacted by the pandemic. Applicants will be directed to GLA resources that set out areas of multiple deprivation and areas of high climate vulnerability, such as the Climate Vulnerability Map.

2.20. The size of the “neighbourhood” will be judged on a case by case basis. We do not want to be too prescriptive, but we expect them to be large enough to achieve economies of scale and ‘critical mass’ but small enough to be manageable and affordable. Future Neighbourhoods are likely to be centred around a large-scale development, a regeneration or refurbishment project where a lead partner is overseeing large-scale investment into an area. Many of these schemes are mixed use, heavily phased (in some cases over 10-15 years) and involve a broad stakeholder group. Their size makes them significant catalysts for action in the surrounding neighbourhoods. We would expect projects to be at least the scale of middle layer super output areas >5,000 people and 2,000 homes up to 200 acres, 20,000 people and 10,000 homes.

2.21. The applicants will propose in outline how they propose to develop their costed strategy and delivery plans in collaboration with the local community and the partner organisations they intend to work with.

2.22. The applicants will propose in outline the projects they would deliver in the first phase and how these link to and will enhance ongoing activities in the neighbourhood (e.g. regeneration of housing estates or development of zero emission zones). They will also outline how these identified projects will be further developed and implemented with local community groups and how they will benefit the local community.

2.23. Key criteria on which applications will be assessed include:

• demonstration that selected neighbourhoods include areas that have been most impacted by the pandemic and suffer from high-levels of deprivation and/or climate vulnerability;

• demonstration that residents and local organisations will be involved in the co-design of interventions, including Londoners from under-represented groups, typically, lower income BAME groups, who are also worst affected by poor environmental factors in London;

• demonstration that the proposed phase 1 projects build on existing actions already underway in the proposed neighbourhood (e.g. building retrofit or regeneration), that the phase 1 projects will be able to deliver across at least three of the five project themes and a commitment that they will be underway before March 2022;

• extent to which other funds have been leveraged:

 costed strategy and delivery plans for the neighbourhood will need to be 25% match funded by the applicant;

 phase 1 projects will need to be 40% match funded by the applicant;

 there are a range of government funding streams available and applicants will need to demonstrate that they are accessing/utilising those wherever possible;

 projects should seek to leverage in private sector funding and activity, e.g. from utilities or other stakeholders, to deliver projects in the neighbourhood and help achieve their objectives;

 Boroughs should consider the extent to which they can use their carbon offset funds to co-fund new projects or where this fund could enhance projects already being supported by carbon offset funds;

• ambition: The most ambitious proposals will be supported, which drive innovation and deliver activity in the neighbourhood from 2021;

• replicability: how the approach will be integrated into borough strategies and then replicated across the borough and shared with other boroughs;

• demonstration that existing GLA programmes will be used to maximise delivery potential: e.g. Retrofit Accelerator – Workplaces and Homes, and Local Energy Accelerator and Mayor’s Energy Efficiency Fund.

2.24. Applicants will also be encouraged to apply to the High Streets Challenge if the chosen zone includes a High Street, or abuts a High Street, as this will ensure that supported projects meet as many recovery objectives as possible.

Full application stage

2.25. A shortlist of applicants will be selected to progress to the full application stage, in which they will provide greater detail on their phase 1 projects, sources of match funding, more details on their approach to community engagement and demonstrate partner commitment to the programme.

2.26. 2-4 applicants will be selected for funding, each receiving up to £75,000 for the development of their strategy, and approximately £0.68 - £1.35 million for their phase 1 projects. It is expected that further funding will be made available, through a subsequent Mayoral Decision, to fund additional projects in each neighbourhood in 2022-2023 and 2023-2024, subject to the budget process for future years.

3.1. Under s149 of the Equality Act 2010 (the Equality Act), as a public authority the GLA must have due regard to the need to eliminate discrimination, harassment and victimisation, and any conduct that is prohibited by or under the Equality Act; and to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. This involves having due regard to the need to remove or minimise any disadvantage suffered by those who share a relevant protected characteristic that is connected to that characteristic, taking steps to meet the different needs of such people; and encouraging them to participate in public life or in any other activity where their participation is disproportionately low.

3.2. The relevant protected characteristics under section 149 of the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, race, gender, religion or belief, and sexual orientation. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have..

3.3. The Mayor’s Equality, Diversity and Inclusion Strategy sets out how he will work to create a fairer, more equal, integrated city where all people feel welcome and able to fulfil their potential. Equality, diversity and inclusion are subsequently enshrined within the GLA’s strategies, programmes and activities.

3.4. The GLA will ensure that (as part of its on-going legal responsibility to have due regard to the need to promote equality, in everything it does, including its decision-making), barriers are removed that may prevent those with protected characteristics benefiting from the projects.

3.5. The GLA Environment Unit commissioned an Integrated Impact Assessment (IIA) on the draft London Environment Strategy. This evaluated the social, economic, environmental, health, community safety and equality consequences of the strategy's proposed policies to ensure they are fully considered and addressed. A post-adoption statement showing how the IIA influenced the final strategy and Equality Impact Assessment (EqIA) report has been published: /programmes-and-strategies/environment-and-climate-change/london-environment-strategy.

3.6. The Future Neighbourhoods funded through this programme will contribute to tackling the climate emergency, supporting the green recovery and enabling the ‘just’ transition. They will do this directly or indirectly by delivering environmental projects, creating markets for addressing environmental challenges, integrating environmental sustainability into the wider economy and by supporting London’s businesses to access and compete in these growing markets. The GLA has also consulted Londoners and stakeholders on development of the Recovery programme including the Green New Deal mission.

3.7. All projects will be expected to illustrate how they are considering the needs of all Londoners and what they will do to ensure that, as relevant, they are both included in these projects and benefit from them. The core of this programme will be putting underrepresented communities first, at the forefront of the programme design and implementation. In the process of selecting future neighbourhoods, we will ensure that due regard is taken of all these requirements.

a) Key risks and issues

4.1. The key risks and issues are set out in the table below.

b) Links to Mayoral strategies and priorities

4.2. This programme has direct links to the priorities of the London Recovery Board and specifically its Green New Deal mission, which aims to double the size of London’s green economy by 2030 as set out in Section 1 and 2 and Appendix 1, 2, 3 and 4. The Future Neighbourhoods 2030 programme will support cross-cutting recovery principles set out by the London Recovery Board and funded projects will be expected to deliver outcomes which address social, economic and health inequalities, deliver a cleaner, greener London, and ensure Londoners are at the heart of recovery.

4.3. The portfolio of projects has direct links to many of the Mayor’s Strategies including: the London Environment Strategy, the draft New London Plan, the Economic Development Strategy and the Transport Strategy. Each of these strategies have been consulted on and have policies aimed at addressing the environmental issues faced in London. A summary of the relevant strategies are reference below.

4.4. London Environment Strategy:

• reduce emissions from London’s road transport network by phasing out fossil fuelled vehicles, prioritising action on diesel, and enabling Londoners to switch to more sustainable forms of transport;

• protect, enhance and increase green areas in the city, to provide green infrastructure services and benefits that London needs now and, in the future;

• delivering more decentralised energy in London;

• planning for London’s new smart energy infrastructure;

• a zero emission transport network;

• increase the amount of sustainable drainage, prioritising greener systems across London in new development, and retrofit solutions;

• reduce the impacts of heat on streets; and

• enabling the transition to a low carbon circular economy.

4.5. Economic Development Strategy

• The transport system is vital to the day-to-day workings of London’s economy and to the city’s international competitiveness. The transport system needs to make the city work better for both people and businesses and to do this there needs to be a move towards active, efficient and sustainable modes of transport.

• Infrastructure to enable London to function effectively: including energy and water networks, sewerage and drainage systems, waste facilities and digital infrastructure.

• The Mayor wants London’s economy to continue to grow, but he also wants to shape the direction of that growth and what it delivers for London and Londoners. He wants growth that is more inclusive, with less inequality as well as lower carbon and more circular in nature to make London a greener, cleaner and more sustainable city.

4.6. New London Plan policies on green infrastructure (G1), energy infrastructure (SI 3) and healthy streets (T2).

4.7. Transport Strategy policy 1 (80 per cent of all trips in London to be made on foot, by cycle or using public transport by 2041, policy 2 (improving street environments to make it easier to get around on foot and by cycle, and promoting the benefits of active travel) and policy 7 (transforming London’s streets and transport infrastructure to enable zero emission operation).

4.8. Just Transition – There is a major opportunity for developing new skills and jobs across the economy as we grow the green economy and make the transition to a low carbon circular economy. This programme will seek to identify and realise job creation and skills development opportunities.

c) Consultations and impact assessments

4.9. This programme has been developed with the aim of developing and delivering strategically important projects that will contribute to the direct delivery of the Mayor’s London Environment Strategy, his Economic Development Strategy, his draft New London plan, his Transport Strategy and to London becoming zero carbon by 2030.

4.10. The Strategies were all widely consulted on and in each the Mayor commits to policies and activities that this portfolio of projects delivers on.

4.11. This programme has been developed in response to the issues and challenges that partners and stakeholders have raised in our discussions with them on these projects.

4.12. An Impact Assessment was undertaken for both the London Environment Strategy and the Economic Development Strategy and its associated programmes. As this bid will help deliver the objectives the original impact assessment is still relevant to the project. There will be appropriate levels of Impact Assessment and stakeholder consultation in relation to the development and delivery of this programme.

4.13. The new London Plan has also been widely consulted on with numerous consultation responses considered in framing the final London Plan which has now been published.

4.14. The London Recovery programme and Green New Deal Missions have been consulted on widely via Team London and direct stakeholder engagement.

4.15. The high level outline for the programme has been tested with London Councils and the Green New Deal Expert Advisory Group.

d) Conflicts of interest

4.16. No GLA officer involved in the drafting or clearance of this DD is aware of any conflicts of interest with the proposed projects.

4.17. If any conflicts of interest arise during the procurement process, they will be required to declare that interest as part of a requirement of the Contracts and Funding Code, and not take any part in procurement process for that particular project.

5.1. Future Neighbourhoods 2030 is a multiyear programme funded from the Mayor’s Green New Deal fund to support the development of exemplar sustainable neighbourhoods within some of their most deprived and climate vulnerable locations. MD2708 approved a budget envelope of £3m for this programme and contained within this decision are further detail of how the first phase of grant funding supporting 2-4 Future Neighbourhoods will be spent. It has been agreed that £2m will be spent in 2021/22 financial year and the final £1m in 2022/23 financial year. The proposed profile of spend for this project has been built into the GLA’s spending plans as part of the 2021-22 budget setting process.

5.2. Within the Phase 1 allocation of expenditure, £300,000 will be available for the development of costed strategy and delivery plans. The remaining £2.7 million will be available for the first phase projects which will kick start in 2021-22 financial year with expenditure also in 2022-23 financial year. It has been agreed that 60% of projects are to be funded from the Future Neighbourhoods 2030 programme budget with match funding sourced and managed by the grant applicants to cover the remaining 40%. An expression of interest round will roll out between March 2021- May 2021. A shortlist will then take place for the most feasible projects. Following the shortlist, successful applicants will then be invited for full application round starting May 2021 with final decisions made in early October 2021.

5.3. All dates provided from the expression of interest round until the final awarding of grant funding are indicative. Payments will be made in arrears, based on evidence of milestones achieved and submitted through the GLA OPS system, where the projects will be managed. It is intended that there will be a phase 2 element of the programme that will span from 2022-23 to 2023-24. However, the detailed spending plans for phase 2 will be subject to further approval via the Authority’s decision-making and budget processes.

6.1 The foregoing sections of this report indicate that the decisions requested of the director fall within the statutory powers of the Authority to promote and/or to do anything which is facilitative of or conducive or incidental to the improvement of the environment within Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

(a) pay due regard to the principle that there should be equality of opportunity for all people;

(b) consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

(c) consult with appropriate bodies.

6.2 In taking the decisions requested of him, the director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the director should have particular regard to section 3 (above) of this report.

Funding

6.3 This decision form seeks the approval of a £3m budget for a series of grants in furtherance of the Future Neighbourhoods project. Section 12.3 of the Authority’s Contracts and Funding Code provides that decisions to award grant funding should generally be made on the basis of the outcome of a transparent, competitive application process. To this end, the officers have set out in the decisions field and paragraphs 1.6 and 2.17 that the grant funding will be awarded following such a process.

6.4 The officers have indicated in the decision field and in paragraph 2.25 above that each recipient will be required to provide match funding. The officers must ensure that an appropriate funding agreement be put in place between the Authority and the recipient before any part of the funding be paid and that the funding agreement include a requirement for the recipient to provide match funding and set the minimum level of such match funding. Moreover, paragraph 2.15 mentions additional investment from other sources. The officers should consider whether they wish to make the securing of additional investment from third parties a condition in the funding agreement.