City Region Deal Flexible Skills Project
Executive Summary
This report provides the Stirling Clackmannanshire City Region Deal (CRD) Joint Committee with an update on the work of the Flexible Skills Project (FSP) as a component of the overall CRD programme. This includes the development of CRD Project Skills Pathway Plans to assist projects in the planning and delivery of skills and employment opportunities as a contribution to the CRD Inclusive Growth objectives.
The report also seeks approval from the CRD Joint Committee on the establishment of a Flexible Skills Grant Fund that will be available to CRD projects to support them develop a range of skills and employment opportunities from CRD Project investment (see Appendix 1).
The Joint Committee is also asked to note that the FSP will be seeking to realign its timeline and budget to maintain its support across CRD projects over the remaining years of the City Region Deal. This realignment will form a part of proposed adjustments to the overarching CRD Implementation Plan for 2024/2025 and extend the FSP from its original completion date of March 2026 to March 2029.
Charlie McShane, City Region Deal Skills Lead, Clackmannanshire Council
cmcshane@clacks.gov.uk 07469 796200
Recommendations
The Joint Committee is asked to:
- Note the update on the Flexible Skills Project activities.
- Note the developing Skills Pathway Plan approach.
- Note the proposed realignment of the Flexible Skills Project timeline and budget will be a component of the City Region Deal Implementation Plan 24/25.
- Approve the establishment of a Flexible Skills Grant Fund.
Implications
- Establish a CRD Flexible Skills Grant Fund open to all CRD projects to support their work on skills and employment opportunities for targeted individuals and communities across Stirling and Clackmannanshire.
- Develop Skills Pathway Plans to assist CRD project leads and managers develop and deliver skills and employment pathway opportunities generated through CRD activities and investment, targeting individuals and communities facing barriers to participation.
- Realign the Flexible Skills Project with the broader CRD programme to support skills and employment development activities over the CRD programme period.
Legal & Risk Implications and Mitigation
The proposals in this report have been developed in accordance with the governance arrangements associated with the CRD.
Background
The Flexible skills Project (FSP) is a component of a set of priority projects that make up the Stirling & Clackmannanshire City Region Deal, the project commenced in the 2021 financial year for a 5-year period. The CRD investment themes and projects are set out below –
| Investment theme | Project/Program |
| Innovation | Scotland’s National Environment Centre The National Aquaculture Technology and Innovation Hub Intergenerational Living Innovation Hub |
| Digital | Digital District Regional Digital Hubs |
| Culture, Heritage & Tourism | Developing Culture, Heritage & Tourism Assets Japanese Gardens |
| Transport, Connectivity & Low Carbon | Active Travel Routes Walk Cycle Live Stirling Energy Masterplan |
| Infrastructure | Ministry of Defence Land at Forthside |
| Skills & Inclusion | Flexible Skills Inclusion Investment Fund Clackmannanshire Lone Parent Programme |
The Flexible Skills Project and the City Regional Deal Portfolio
The FSP has been designed to work alongside the CRD projects and the broader regional employability/skills practitioners to achieve inclusive growth outcomes. It is anticipated that this boost from the CRD infrastructure investment will increase the number of employment and skills opportunities available to individuals and communities facing barriers to participation.
CRD infrastructure projects have been given responsibility to develop Skills Pathway Plans to assist them in identifying the employment and skills opportunities that will be available through project activity now and into the future, as well as identifying the skills local people will require accessing these opportunities.
The FSP currently employs a Skills Lead to work with CRD projects and the various national and regional stakeholders delivering employability and skills support services across Stirling and Clackmannanshire. The FSP has an annual budget to support CRD related project activity that develops new programs or approaches that engage CRD target populations in pathways to employment or skills outcomes. CRD inclusive growth target populations are set out below –
| Low income and workless households particularly where there are children | Caring responsibilities |
| Women | Refugee and asylum families |
| Lone parent families and young mothers | Risk of transport poverty or travel limitations |
| Those suffering poor physical and/or mental health or alcohol and substance misuse | Those in remote rural or very remote rural geographies |
| Unemployed and inactive young people | Those in low-paid work and/or in-work poverty |
| Those in and leaving the care system | Those with low levels of literacy and/or digital skills |
| Criminal Justice service users | Those with low qualification levels. |
| Residents of Alloa South and East, Raploch & the area around the Mercat Cross | Those people formerly working in sectors particularly impacted by COVID (e.g. hospitality & tourism) who require retraining) |
| Disabledpeople | Residents of Plean, Cowie, Fallin and rural west Stirlingshire |
The CRD investment in the Stirling and Clackmannanshire region is estimated to be ongoing for a 15-year period from the deal commencing in 2020. CRD projects, although agreed in
principle, undertake a rigorous business case process prior to approvals from both the Scottish and UK governments. Final approval is then provided by the CRD Joint Committee.
Projects and programmes belonging to the CRD Portfolio are at varying stages in their business case development. Some started later than anticipated due to factors such as the COVID response and for other projects cost of living challenges have culminated in reconfiguration of initial plans to mitigate increasing delivery costs as well as responding to emerging local priorities.
Acknowledging the challenges of the business case process and infrastructure delivery, CRD projects are at differing stages of development relative to the establishment of employment and education opportunities for local people. It is anticipated that CRD employment and skills opportunities will be generated throughout the life of the overall CRD programme as each project works through their specific development stages.
Considerations
Flexible Skills Project Update
- The Flexible Skills Project development timeline has included the following activities –
- Discussions with Scottish Government on the core objectives of the emerging FSP project during the latter half of 2020
- Approval of the FSP Outline Business Case by Joint Committee at its meeting in February 2021
- FSP Business Justification Case submitted to the Scottish Government in May 2021
- CRD Joint Committee approval of the FSP Business Justification Case at its meeting in March 2022
- Appointment of a CRD Flexible Skills Lead in November 2022
- Skills Pathway Plans Report first phase development completed October 2023
- Reassessment of FSP approach and the development of a proposed Flexible Skills Grant Fund for CRD projects with associated guidance and application process during 2023/24
- Reassessment of the FSP delivery schedule and the development of re profile proposals to better align the FSP with CRD project activity over the remainder of the CRD programme provided to the CRD Chief Officers Group in May 2024
- Discussions and connections are ongoing with a CRD projects and other stakeholders on potential skills and employment programmes to support individuals and communities facing barriers to participation in the labour market.
- The establishment of a Flexible Skills Grant Fund will provide CRD Projects the opportunity to continue to formulate their skills and employment programmes and access available FSP funds to support the establishment and implementation of these approaches.
- It is important that strong engagement between CRD projects and existing employment and skills service providers is established. Local service providers hold a depth of experience on successful skills and employment approaches, and this offers a platform for joint or partnership working to enhance on shared outcomes.
- Local Employability Partnerships covering both Stirling and Clackmannanshire provide ideal fora to discuss and unpack skills and employment approaches as well as potentially engaging important service providers in the development and delivery of any future programme interventions. Equally, the Employer Engagement Forum covering both Stirling and Clackmannanshire also provides an opportunity to gauge the views of local employers on skills and employment support issues.
- Work is also currently underway to use existing council employability management systems to register, monitor and follow up participants during and after their participation in any skills and employment programmes funded through the proposed Flexible Skills Grant Fund. The FSP is working in partnership with Clackmannanshire Council’s Economic Development team to finalise this aspect of the grant programme to ensure processes are as streamlined as possible for both participants and CRD projects
- Across the CRD, skills and employment outcomes are reported to Joint Committee as a component part of the CRD Benefits Realisation monitoring arrangements across CRD project activities
Skills Pathway Plans
- Skills Pathway Plans (SPP) are a key component of the Flexible Skills Project outputs and have been designed to provide support to CRD projects as they develop skills and employment opportunities as part of their Benefits Realisation from CRD investment. It is anticipated that the Skills Pathway Plans will assist CRD projects to identify the key skills required at their project now and into the future; identify and support targeted individuals and communities to access skills and employment opportunities; and work with regional and local stakeholders to create skills and employment pathways that provide a platform for local individuals and communities to experience the benefits of CRD investment.
- Work to date on the Skills Pathway Plans (SPP) has focussed on the following areas of CRD investment –
- Digital hubs and digital districts
- Culture, Heritage and Tourism projects including the Japanese Gardens
- Scotland’s International Environment Centre
- National Aquaculture Technology and Innovation Hub
- Intergenerational Living and Innovation Hub
- There are also an additional two SPP themes that consider the construction sector and business/entrepreneurialism as cross cutting CRD themes that potentially impact on all CRD projects through development and ongoing operations.
- It is anticipated that additional work on the development of the overall Skills Pathway Plan Report will be commissioned later in 2024, and will focus on the proposed adjustments to the overall CRD programme, including further work on the Culture, Heritage and Tourism theme and, subject to further discussions, the film and television opportunities emerging from the Ministry of Defence site at Forthside in Stirling.
- The SPP approach provides a backdrop on each SPP theme through analysis of the representation of key groups at school, college and university. CRD projects will focus on increasing the number of target groups including, for example, women and girls, people with a disability and those living in Scottish Index of Multiple Deprivation (SIMD) neighbourhoods, that access skills and employment opportunities. It is important then that CRD projects are fully aware of baseline representation levels in their sector/occupation areas to develop skills acquisition approaches that engage with target groups and create pathways to future opportunities as it relates to CRD project activity and the broader labour market.
- Work on the SPPs to date also lays emphasis on the importance of the broader skills and employment service sector across the Stirling and Clackmannanshire region and the success or otherwise of the SPP approach. The importance of joined up working and collaboration between CRD projects and the broader sector will be essential to draw on existing expertise and resources and engage local individuals and communities in the opportunities that become available over the period of CRD investment. In the context of the broader skills and employment sector, the SPP report views the CRD projects as key employers who can develop skills and employment opportunities, provide supportive and flexible workplaces, and are strong collaborators across local and regional service providers to achieve inclusive growth outcomes.
- The SPP report points to a number of CRD project level actions to assist in the development of the overall CRD SPP approach. These are summarised below and include:
- Modelling out occupational profiles in terms of future employment and building this into business cases that demonstrate an understanding of skills supply and demand
- Reviewing the regional economy summary to understand its composition, noting the challenges and inequalities that are evidenced.
- Reviewing their specific SPP, as well as the Construction/Business Entrepreneurship SPPs, to gauge under representation across CRD target groups and consider approaches that engage with these individuals and communities on skills and employment opportunities.
- Engaging with the broader skills and employment sector, including local employability partnerships, education sector, community sector and local and regional service providers to collaborate and collectively deliver on skills and employment outcomes for CRD target groups.
- It is anticipated that the second phase work on the development of the SPPs will be commissioned later this year with the final SPP report being available to CRD projects on completion of the additional work.
Flexible Skills Project – Realignment
- The Flexible Skills Project (FSP) is a 5-year programme to support CRD projects maximise the skills and employment opportunities available from CRD investment in Stirling and Clackmannanshire. The FSP was established in 2021 and is scheduled to complete its activities at the end of the 2025/26 financial year.
- The total FSP CRD budget allocation over the 5-year period is £1,502,590.
- The FSP has a significant underspend that is associated with a range of delivery challenges including the COVID 19 Response and the ongoing cost of living pressures affecting all CRD partners and projects. These challenges have resulted in, in some cases, delayed business case development and the subsequent changes to CRD implementation timescales.
- Moreover, ongoing review of CRD project activity has also resulted in proposed adjustments to current project business case development activities and subsequent project delivery timescales.
- The Stirling and Clackmannanshire CRD was end loaded from inception with increasing levels of investment towards the latter part of the CRD programme. Further adjustments to CRD projects may result in this end loading increasing to a degree to meet the challenges of refocussing CRD priorities and intended outcomes.
- The FSP activities and expenditure has been designed to support CRD projects to develop and establish employment and skills opportunities from CRD investment. It is therefore important that the FSP matches the development and implementation timescales of the majority of CRD projects.
- Taking into account the challenges of the Covid Response; cost of living pressures across CRD project delivery; and the refocussing of CRD projects, it is proposed that the FSP is re profiled to better align with the current CRD programme schedule to maximise the employment and skills outcomes for local individuals and communities.
- It is proposed that the FSP is realigned to the continuing CRD programme of activities within its current budget limits and draws down on the FSP underspend to extend the work of the project. Moreover, original FSP outputs and outcomes remain unchanged.
- It is proposed that the Flexible Skills Project is extended from its current end date of March 2026 to a re-profiled date of end of March 2029, extending the FSP by an additional 3-year period.
- The proposed re profile of the FSP budget increases funding available to CRD projects incrementally from 24/25 through to 27/28 and reduces in the final year of the project. The FSP timeline and budget adjustment will realign with broader CRD project development activities to maximise funds available to support the delivery of skills and employment opportunities over the CRD programme period. A reduced funding amount will be available in the final year of the FSP to continue a level of support to CRD priority projects, it is anticipated that, if required, successful CRD skills and employment programmes will have the potential to attract a level of local funding to sustain successful activities beyond the lifetime of the CRD programme period.
- The CRD Joint Committee will be in a position to formally approve or otherwise the re profiling of the FSP as component part of the overall CRD Implementation Plan proposals for 2024/2025.
Flexible Skills Grant Fund
- The CRD Flexible Skills Project has an amount of discretionary funding available within its budget to support CRD Projects develop skills and employment opportunities from the implementation and future operations of their CRD investment activities.
- The CRD Flexible Skills Project is a 5-year CRD support programme that is currently in year 4 of operation.
- The funding profile of the Flexible Skills as agreed in March 2021 is as follows:
| 21/22 | 22/23 | 23/24 | 24/25 | 25/26 | Total | |
| Budget | £388,500 | £343,825 | £337,483 | £274,975 | £157,807 | £1,502,590 |
- An amount of approximately £60,000 per year is allocated to the costs of the CRD Skills Lead position associated with the Flexible Skills Project.
- Flexible Skills Project funding support for CRD project skills and employment activities for the financial year 2024/25 is at approximately £200k, taking into account the ongoing costs of the CRD Skills Lead position. The £200k will form the basis of the Flexible Skills Grant Fund and be available to CRD Projects via grant application. FSP funding support is allocated on an annual basis with each year’s allocation confirmed through a Grant Offer Letter provided by the Scottish Government.
- If approved by Joint Committee, the proposed re alignment of the FSP timeline and budget will reduce the funding support amount available for 24/25 Financial Year to £100k and then extend the FSP budget to March 2029, providing a Flexible Skills Grant Fund allocation for each of those out years. The proposed FSP realignment of timeline and budget is a component part of the CRD Implementation Plan 24/25 proposals to be formally approved by the CRD Joint Committee.
- A CRD Flexible Skills Grant Fund will be established and made available to CRD Projects, with the attached guidance information provided to all CRD Project Senior Responsible Officers and Project Managers. Guidance information is provided in Appendix 1.
- The grant programme will be available to CRD projects for the remainder of the 24/25 financial year until it is expended for that particular period. A further grant programme will then be made available for the 2025/26 financial year, the final year of the FSP. Subject to Joint Committee approval, a realignment of the FSP timeline and budget will result in the Flexible Skills Grant Fund being available through to March 2029
- As set out in the grant programme information, it is anticipated that CRD projects will access grant funds to assist them develop a number of skills and employment supports including:
| Training or skills development activities and accredited courses |
| Community based activities focussed on preparing people for employment or education |
| Job placement/work experience programs |
| Business start-up programs |
| Workshops or information sessions focussed on employment and education pathways liked to CRD themes |
| Development of volunteering programs |
| Recruitment Incentives |
| Apprenticeships or internships |
| Costs associated with barriers to participation |
- It is proposed that the decision-making process on all grant awards will be provided by a 3-member panel representing CRD partners at a Head of Service level or equivalent. Final decisions on grant awards will be provided by the CRD Chief Officers Group with delegated authority to award grants of up to £300k to any individual CRD project and £300k in total on an annual basis.
- It is proposed that the Skills Development Scotland Regional Skills Planning Lead covering the Forth Valley is also invited to join the 3-member assessment panel.
- The Flexible Skills Grant Fund Information encourages CRD projects to engage broadly with existing skills and employment stakeholders to draw on their knowledge and expertise as they develop their project ideas through to delivery. This engagement may also have the potential to identify other funding sources to work alongside Flexible Skills investment and support CRD project activities.
- CRD Joint Committee is asked to approve the establishment of the CRD Flexible Skills Grant Fund
Resource Implications
Financial Details
The full financial implications of the recommendations are set out in the report.
This includes a reference to full life cycle costs where appropriate. Yes
Finance Officers have been consulted and have agreed the financial implications
as set out in the report. Yes
Staffing
The full implications on staffing are set out in the report. Yes
Exempt Reports
Is this report exempt? Yes (please detail the reasons for exemption below) No
Equalities Impact
Have you undertaken the required equalities impact assessment to ensure that
no groups are adversely affected by the recommendations? N/A
Legality
It has been confirmed that in adopting the recommendations contained in this report,
the Joint Committee is acting within its legal powers. Yes
Sustainability and Environmental
It has been confirmed that sustainability and environmental issues have been
considered within the report. N/A
Policy Implications
The report is fully consistent with the policy intentions of the City Region Deal.
Consultations
The RPMO has been consulted on the intent of the report.
Skills Development Scotland have been consulted on the development of the Skills Pathway Plans.
CRD Projects have been consulted in the development of the Skills Pathway Plan approach.
Clackmannanshire Council as lead authority for the Flexible Skills Project has been fully consulted on the proposals contained in the report.
Discussions have taken place with the CRD Chief Officers Group on the contents of the report.
Background Papers
Have you used other documents to compile your report? Yes
The contents of the report fully aligns with the intent of the Flexible Skills Project business case.
Appendices
Please list any appendices attached to this report. If there are no appendices, please state “none”.
- Appendix 1: Additional Background Information and Application Example
Approved by:
Kevin Wells, Strategic Director: Place, Clackmannanshire Council.
Email address: kwells@clacks.gov.uk