Guidance

NSIP Reform: Innovation and Capacity Fund (Round 1): expression of interest

Updated 22 March 2022

Applies to England

1. Contextual summary

The Planning Act 2008 (the ‘Planning Act’) created a new development consent regime for Nationally Significant Infrastructure Projects (NSIP) in the fields of energy, transport, water, wastewater, and waste. The National Infrastructure Strategy later committed the government to establishing an NSIP Reform Programme which aims to speed up the NSIP planning process by 50% for some projects entering the system in September 2023. The key outcomes of the programme are to achieve improvements in certainty, quality, and speed of the planning process for NSIPs.

The system is currently dealing with an increased rate of projects entering the system which are more complex than previous projects and require specialist knowledge and experienced personnel to consider wider issues like Net Zero and Bio-diversity Net Gain. This increase in both quantity and complexity of NSIPs is likely to reduce the speed at which NSIP projects progress through the system and result in delays to decisions on Development Consent Orders due to poor quality or missing information.

The aim of this fund is to explore if and how using resources more efficiently or supplying additional resources for key users of the regime can improve our programme outcomes through provision of expertise or innovative work. This expression of interest constitutes an opportunity for local authorities (LAs) to apply for funding up to £100,000 to support them in dealing with NSIP applications to address the issues and challenges they face as key users of the system.

2. What are we looking for?

We are inviting LAs to consider ways in which their role in the NSIP process could be improved or done differently to help drive better, greener and faster delivery of NSIP projects. This fund is targeted at LAs (or groups of LAs) which expect to have a major role to play, as statutory consultee, in one or more Development Consent Order (DCO) applications and are to be delivered during the period from the launch of this fund to March 2030. The project must be in one of the following phases, pre-application, acceptance, application, pre-examination or examination.

We are looking for proposals which drive better effective engagement with the developer, Planning Inspectorate and other statutory consultees in order to ensure that the DCO process delivers benefits for local communities in line with the government’s ambitions for better, faster and greener infrastructure delivery and our mission for levelling up (in this case securing economic benefit for local communities from the investment that major infrastructure development offers).

We expect to issue grants up to £100,000 to be used for initiatives which are over and above work that the authority already intends on undertaking. Bids which have an element of match funding from the LA and/ or demonstrate collaboration between authorities are particularly encouraged but are not compulsory.

We are asking LAs to address one, or several, of the following objectives:

• Develop innovative approaches to LA engagement with NSIPs.
• Identify and drive efficiencies in LA engagement with other system users including the Planning Inspectorate and Project Promoters.
• Achieve efficiencies or savings through collaboration with other LAs (e.g. shared resources or representations).
• Produce learning which could help enhance LA engagement on other NSIPs.
• Identify how sustainability can be embedded in any new models/processes/structures (i.e., transition to business as usual)
• Drive innovations which could support greener NSIP projects.
• Develop measures that enable better community and/ or LA engagement at pre-application.
• Introduce digital innovations including digital ways of working and/ or better use of digital data in the NSIP process.
• Development of innovations at various stages of the NSIP process and contribute to better, greener or faster results.
• Improved adequacy of consultation.
• Managing the demands of multiple NSIP projects in the same locality, especially when these overlap temporally, and or, spatially.

We encourage innovative bids, but example proposals could include commissioning research projects, engaging consultants to support development of processes or tools, onboarding project support or expertise in a particular area, design and development of new delivery models.

The proposal must be centred around NSIP projects which have already entered or will enter one of the recognised phases (pre-application, acceptance, pre-examination or examination) in the NSIP process during the period at which the funding is provided (January 2022 to June 2023). Only funding for work focusing on these phases will be considered to increase the period of time within which lessons or recommendations to the process can be adopted prior to entering decision phase.

3. Expressions of interest submission

The programme will provide funding for successful bids up to the value of £100,000 per bid. At the end of an agreed start-up phase and at review meetings (outlined below), projects will undergo a decision review where the department will take a decision as to whether or not to proceed with further funding depending on how well the project is delivering in line with the programmes proposed reforms and relevance to live cases.

We are seeking proposals from all locations and contexts in England and Wales as long as they are relating to an NSIP at one of the recognised phases as specified.

Only expressions of interest via the Microsoft Form provided will be considered. Please use the contact details provided if you experience technical issues.

Bidders who are shortlisted may be invited to a presentation or interview and / or be asked to share additional information with us based on their submission.

LAs are expected to collaborate with DLUHC, providing regular progress updates and enabling efficient escalation of risks, issues or opportunities where appropriate. The following key meetings should be reflected in the applicants proposed schedule:

Shortlisted candidates

• Introductory meeting with DLUHC officials – this meeting should provide the broad strategy as well as a detailed overview of the proposal which addresses the pathway to key benefits and outcomes they seek to deliver. The meeting should identify key deliverables which are defined and agreed prior to the project kick-off meeting.

Successful bidders

• Kick-off meeting – this meeting will be held in addition to the introductory meeting and will signify the start of the project. It will identify initial actions and steps to commence the projects and should outline the role and deliverables of external suppliers / stakeholders if required.

• Project mid-review update – to provide progress updates, review the risk register, surface any challenges and showcase work that has taken place.

• Project summary meeting supported by a short, written report which summarises the outcomes, learnings, hurdles, what could be improved in the future or replicated by other projects (e.g. policy, guidance, or engagement approaches) and how to sustain and embed lessons in continuous improvement and business and usual.

Please note that DLUHC reserves the right to withdraw future funding if the recipient is deemed to no longer fulfil the brief of the funds objectives and or the authority does not comply with the funding criteria outlined by DLUHC.

Please submit your expression of interest via the Microsoft Form application.

The questions captured in the Microsoft Form are provided at Annex A.

Applications will be considered against the following criteria:

• clarity of bid
• outcomes and benefits
• deliverability

4. Timeline

• Week commencing 28 February 22: Expression of Interest process launch
• 15 March 2022: Initial meeting and Q&A with applicants
• 8 April 2022: Expressions of Interest process close
• 11 to 22 April 2022: Shortlisting
• 27 to 29 April 2022: Provisional interview/presentation dates
• 3 to 6 May 2022: Bid selection
• Week commencing 9 May 2022: Letter of Offer to selected LA(s)
• Week commencing 16 May 2022: Acceptance of Offer from LA(s)

5. Contact details

Please contact us with any queries at Infrastructureplanning@levellingup.gov.uk.

Annex A: Expression of interest application - questions

Section 1: Proposal

1. What NSIP application will this proposal be relevant to? Please describe the project, outlining the current phase (pre-application – examination), and identifying the key areas which require additional support for capacity or innovation. (200 words maximum)

2. Which of the objectives outlined in the guidance will the LA seek to address through the proposal? (100 words maximum)

3. Briefly summarise the innovation, pilot or trial the LA would like to run. (200 words maximum)

4. Has the LA consulted the applicant on this proposal?

5. What are the planned outcomes of this proposal and what are the intended benefits of those outcomes? (300 words maximum)

6. Describe how the LA intends to capture and measure success of the proposal against the desired outcomes and benefits. (200 words maximum)

7. How will the LA’s proposal contribute to speeding up the NSIP application the project relates to? (200 words maximum)

8. How will the LA ensure the quality of the process is maintained or improved? (200 words maximum)

9. Outline any key milestones and timescales of the proposal. (100 words maximum)

10. What learnings does the LA anticipate being useful to other LAs and how will it ensure these are accessible and transferrable? (200 words maximum)

11. Will the LA be drawing on any external consultants for additional support?

12. If answered YES to question 9, please provide detail including: type of support, reason for external support, role of external support. (150 words maximum)

13. Why does the LA want to be selected to be part of this pilot programme? (100 words maximum)

14. If selected, will the LA agree that the copyright of the products of the pilot (e.g. reports) can be shared with DLUHC and that the outputs of the programme will be published for other LAs to learn from, including details of the process you have followed and the resulting products or outputs?

15. What are the biggest risks to this proposal? (150 words maximum)

Section 2: Finance

16. How much funding is the LA requesting to deliver the proposal (allocations up to £100,000.00)? Please provide suitable breakdown and justification. (200 words maximum)

17. Would the LA be looking to match-fund your proposal? If so, how much funding would it contribute to the project? Note that match funding is not an expectation but if the LA is not providing any funding please outline why that is.

18. Please confirm that this funding will be used for work in addition to any commitments already made by the LA relating to NSIPs.

19. To help DLUHC understand the scale of the challenge, we are asking LAs how much funding they need in order to engage properly with the NSIP process in total. What is the total anticipated cost required for the LA to engage fully on he average NSIP project in your area?

20. Would the proposal be feasible without a government grant?

21. Has this funding been approved as laid out in your proposal by the LA Section 151 officer?

Section 3: Information about the LA

This information will be used by DLUHC personnel for items relating to this application only. Personal information will not be shared with third parties.

22. Name, job title and email address of main point of contact

23. Which Local Authority is submitting this proposal? (Please name all LAs if this is a joint proposal).

24. What type of authority is the applicant? (E.g. Mayoral Combined Authority, Country Council, District Council)

25. Please select the type of NSIP project the LA is currently working on or anticipate working on during the duration of your proposal. Please select all that apply.

26. Within which region(s) is this project located?

Section 4: Subsidy control

27. Please confirm your proposal will not give rise to any Subsidy Control issues.

Assessment criteria

We will assess the expression of interest against the following criteria:

• clarity of bid
• outcomes and benefits
• deliverability

Annex B: Frequently asked questions

1. Can LAs who are not working on a live NSIP at the time of application apply for funding?

The LA must be working on one of the recognised phases (pre-application, acceptance, pre-examination or examination) in the NSIP process during the period at which the funding is provided (from launch of fund – March 2030).

2. Can LAs apply for multi-year funding?

Under this application, the bid cap is £100K. Applicants should clearly state how much funding is required over the full duration of their project. If the project runs beyond the end of this financial year, there is no guarantee that funding will be available in financial year 2023/24.

3. Is funding guaranteed for successful bids?

No. We are awaiting the results of internal business planning. If the outcome results in a more limited budget than anticipated, we may not be able to take bids forward immediately.

4. Will funding be limited to a certain timeframe?

Applicants must provide a clear project plan which identifies key milestones, and which justifies the duration of funding over the period requested. However, funding cannot be guaranteed if the project spans beyond this financial year and DLUHC reserve the right to withdraw further funding if the recipient is deemed to no longer fulfil the brief of the funds objectives and or the authority does not comply with the funding criteria outlined by DLUHC.

5. Will there be other funding like this one in the future?

No additional funding has been confirmed.

6. Could DLUHC withdraw funding from a selected bidder?

Yes. DLUHC reserve the right to withdraw further funding if the recipient is deemed to no longer fulfil the brief of the funds objectives and or the authority does not comply with the funding criteria outlined by DLUHC.

7. When will the first grant payments be issued?

Applicants should outline a payment plan in their expression of interest. No grant payment shall be made before 1 April 2022. No grant payment shall be made in advance of need.

8. Will I receive funding in this financial year (21/22)?

No. The timeframe for this expression of interest process will mean no payment can be made prior to 1 April 2022.

9. Do applicants have to use Microsoft Forms to submit their bid?

Yes. To ensure consistency in format and to ensure all questions are answered, the Microsoft Form must be used for all applications. If any LA experiences difficulty with the Microsoft Form provided, they should use the contact details provided.

10. Can a LA apply for funding for external resourcing?

Yes. If the applicant can justify the use of external suppliers, contractors or consultants in deliver of their proposal, LAs can use the funding for external parties.

11. How will the payment be made?

The payment will be made via a Section 31 Grant. All payments will be made in arrears unless there is an alternative agreement between departments.

12. Can other departments which aren’t LAs apply for funding?

No. This funding is available to LAs only at this stage.

13. Is funding open to all types of LA?

Funding is open to any LA as outlined at section 43 if the Planning Act 2008, providing the LA is working on a project at one of the phases outlined in the guidance, they are eligible to apply.

14. Can a LA submit more than one bid for different NSIP projects?

Yes. If a LA has more than one proposal, they must submit separate applications using the Microsoft Form.

15. Does match funding include staff time?

No. Match funding refers to actual expenditure only, unless ‘staff time’ refers to peoples employed or contracted to deliver work specifically relating to this fund. Match funding is not compulsory.

The questions below were added following a Q&A with potential applicants on 15 March 2022.

16. Can multiple local authorities submit a joint bid for more than £100K funding?

Funding is up to £100K per bid. LAs are welcome to submit complimentary bids, at £100K each, but there is no guarantee any or both will be taken forward. Bids must therefore be able to stand alone. Projects which seek to collaborate and coordinate their work with others is encouraged.

17. Can the fund be used for something which a LA is already doing?

If a LA is already doing something which is considered to be, or could become, ‘best practice’, and using this fund could help them develop or support it further, then yes. The LA must be able to justify how additional funding would make a notable difference to what is already in place, and what the subsequent benefits would be.

18. Is there a mechanism for sharing the outputs of successful proposals?

It has not yet been confirmed how outputs will be shared with others. Successful bidders will have the opportunity to work with DLUHC and agree how outputs can be shared but could include sharing of physical documents, holding workshops or presentations.

19. Does the proposal have to be related to process or can it be a something standalone?

The aim of the fund is to help local authorities engage with the NSIP process. If the fund is used to develop something which ultimately results in that effect (like an enduring working group or a way of bringing together specialists) and the bidder can justify how this funding helps deliver that and any associated benefits, then yes.

20. Can a project be enduring?

Yes. This funding could be used as a ‘start-up’ fund for something which will deliver longer term benefit beyond the period of funding. The bidder must be able to provide detail around the short, mid and long term benefits in a way which is relative to cost. The bidder should be aware that enduring costs over and above the agreed sum from this fund would not be covered by DLUHC.

21. How much engagement with the sponsor is needed?

While it is encouraged, not all bids will depend on promotor collaboration or impact projects in a way which requires a sponsor to be engaged. Bids put forward must be deliverable so if collaboration is required, that initial engagement should have taken place before the bid is submitted or be identified in the risk section accordingly.

22. Could the fund be used to procure additional expertise?

Yes. If there is a skills or capacity gap, this fund could be used to upskill or provide expertise in a given area. Bidders should consider how they might capitalise on this learning to share and secure experience for future applications and other councils handling NSIPs.

23. Can local authorities focus more on ‘greener’ than ‘faster’ or ‘better’ objectives?

Yes. Any initiatives which help deliver greener, better or faster NSIPs will be considered, but the bidder must consider all three so as not to prioritise one over the detriment or worsening of another.

24. What level of detail is required for the financial breakdown?

Local authorities must provide a breakdown which justifies the total funding requested. For example, if a council intend to hire a consultant for a given period of time, the cost breakdown must justify the time period, show how much the consultant costs (e.g. day rate) and what outputs would be provided during that period.

25. How many EOIs is DLUHC anticipating putting through?

The number of successful bids will be dependent on the number and quality of bids received.

26. Can a LA put more than one bid through?

Yes. Any council may submit more than one bid, providing they are independent of one another.

27. How does this fund tie in with wider PINS process?

This fund targets local authorities and how they engage with the system. Through your EOI, we welcome ideas about how touch points with others could be improved.