Project overview

Designing a process for the equitable allocation of Gainshare investments.

Capabilities demonstrated: Codesign the simplest governance, and delivery structures, processes, and tools to enable delivery and still operate with accountability and be flexible enough to respond to changing requirements.

Client: South Yorkshire Mayoral Combined Authority.

Date: Jan-Jul 2021.

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The job to be done

How best to  equitably allocate Devolution Investment Fund (Gainshare)  between the MCA and the four LAs in South Yorkshire to grow an economy that works for all?

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The key challenges

Funds have to be allocated in a way that respects key principles of equity, fairness, and subsidiarity. Two key questions were addressed:

 

• Could funding be distributed based on need whilst also achieving the outcomes desired by partners in the city region?

• Could we strike the right balance between devolved decision making and the need for the MCA to maintain accountability for expenditure and the quality of outcomes?

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The approach taken

The project was very much about re-setting the conversation between councils and the combined authority and doing so in a way that was open and transparent, to build trust and an ongoing dialogue. Working with a team from SYMCA, we:

 

• Identified good practices within 3 other combined authorities and took advice from them about their approach and the lessons being learnt.

• Developed an outcomes framework that reflected the shared priorities of the MCA and LA partners and their desired outcomes. The framework includes measures as diverse as productivity, business births, air quality and personal wellbeing, and was also tailored to the needs of individual council's priorities.

• Identified the gap between current performance and the national average. We used regional and ward level data to calculate current performance within each council area, compared to national data to calculate the gap and prioritise investment.

• Developed a four-stage process to lead the council through the analysis and start a conversation about investment priorities. From this councils could then start to prepare local action plans as the basis for funding submissions.

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Outcome and impact

The process is still on-going, but this approach helped to reset the discussion between partners and realised several interim benefits:

 

• Evidence-based decisions. Using widely recognised data and applying this to local circumstances, demonstrated rigor and injected objectivity into the discussion and the prioritisation of investments.

• Clearer accountability. Clarity of outcomes made it easier to agree who was best placed to be responsible for delivery, and accountable for outcomes realisation.

• Capacity building. Clarifying responsibilities meant that partners were better able to identify and assess the specific gaps in the skills and capacity required to deliver on their priorities, making it easier to justify their investment proposals.

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