National Infrastructure Planning Reform: Innovation and Capacity Fund (Round 2)

Question

National Infrastructure Planning Reform: Innovation and Capacity Fund (Round 2)​

Accepted Answer

We are inviting local authorities to apply for the second round of our Innovation and Capacity Fund for local authorities participating in the Nationally Significant Infrastructure Projects (NSIP) consenting process.

The fund will support local authorities to consider ways in which their role in the NSIP process could be improved or done differently to help drive help drive better, faster and more resilient delivery of NSIP projects. This follows a successful first round which ran from March 2022 to March 2023 and saw clear benefits for local authorities that participated.

The fund is targeted at local authorities which expect to have a major role to play, as statutory consultee, in one or more Development Consent Order (DCO) applications for NSIPs.

The deadline for applications has been extended: please apply by 29 August 2023 (11:45pm)

Innovation and Capacity Fund (Round 2): Guidance

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 (NIS) 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 from 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. We have now set out an NSIP Reform Action Plan setting out five reform areas and are consulting on operational reforms to the consenting process that will have positive benefits for local authorities and support faster consenting.

We are launching a second round of our Innovation and Capacity Fund to support and enhance the ability of local authorities to engage in the Development Consent Order process for Nationally Significant Infrastructure Projects.

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 further improve our intended outcomes through provision of expertise or innovative work. This application constitutes an opportunity for local authorities (LAs) to apply for funding up to £100,000.00 (or £350,000.00 for projects relating to transport NSIPs) to support them in dealing with NSIP applications to address the issues and challenges they face as key users of the system.

2. Innovation and Capacity Fund (Round 2)

We launched the first Innovation and Capacity Fund which ran for 12 months from March 2022 to March 2023 and have seen clear benefits for local authorities that participated. The funding DLUHC provided through the scheme has enabled local authorities to become more proactive as well as playing a key role in supporting their local communities to understand the need for and benefit of new infrastructure. We reviewed each of the projects at various stages as a condition of the funding and have seen the positive impact the additional resource has made. Funding supported a wide variety of projects, and we have seen longer term outcomes for authorities in learning, and tools, that enable them to better participate in the NSIP consenting process. The awarded LAs agreed to participate in a Local Authority Forum, run by the Planning Advisory Service (PAS), which provided a positive and proactive way of bringing LAs together to share their learning as well as openly discuss the challenges they face with the NSIP process.

What we are looking for in Round 2

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, faster and more resilient 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 of this fund. The relevant NSIP project must be in one of the following phases: pre-application, acceptance, application, pre-examination or examination, or post consent discharge of conditions.

We are looking for proposals which drive better and more effective 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 more resilient 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).

Bids should fund work to enable constructive engagement of LAs in NSIPs, and following additional requirements will apply to any applicant. The following requirements will apply to those seeking to submit proposals:

Only projects where the LA is acting in their role as statutory consultee will be considered; and
No funding for any legal challenge, nor legal resource, will be funded.

This Round, we are looking for projects under 2 separate funding streams:

Stream 1: for projects relating to NSIPs in the transport sector only. We expect to issue grants up to £350,000.00, with funding for financial year 2023-24.
Stream 2: for projects relating to NSIPs of any sector. We expect to issue grants up to £100,000.00 with funding for financial years 2023/24 and 2024/25. Projects can span financial years and funding is available for up to 12 months from September 2023. As limited funding is available for financial year 2024/25 projects are recommended to apportion a maximum of 40% of funding in financial year 2024/25.

For both streams, funding should 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;
Improved adequacy of consultation;
Development of innovations at various stages of the NSIP process and contribute to better, faster and more resilient results;
Managing the demands of multiple NSIP projects in the same locality, especially when these overlap temporally, and or, spatially; and
Introduce digital innovations including digital ways of working and/ or better use of digital data in the NSIP process.

We encourage innovative bids. 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, or post consent discharge of conditions) in the NSIP process during the period at which the funding is provided (September 23 – March 24 for Stream 1 and September 23 – August 24 for Stream 2). Note that funding for legal challenges, or preparation for legal challenges, to decisions on projects will not be considered as they are out of scope of this work.

3. Application submission

The programme will provide funding for successful bids up to the value of £350,000.00 for Stream 1 (transport related projects) and up to £100,000.00 per bid for Stream 2 (for projects relating to NSIPs of any sector). Projects for Stream 2 will be asked to indicate funding amounts for FY23/24 and FY24/25 (maximum 12 month, i.e., up to and including August 24/25) – as limited funding is available for financial year 2024/25 projects are recommended to apportion a maximum of 40% of funding in financial year 2024/25.

At the end of the agreed start-up phase and at review meetings (outlined below), DLUHC and successful bidding authorities will consider the progress and value of the project to ensure that it continues to reflect the outcomes and benefits intended through the bid.

We are seeking proposals from all locations and contexts in England if they are relating to an NSIP at one of the recognised phases as specified. Note that funding for legal challenges to decisions on projects will not be considered as they are out of scope of this work and only application proposals that are constructively engaging in the NSIP process will be considered.

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:

project initiation
first progress meeting
mid-point review
second progress meeting
end-point review

Scoring of submissions

Applications will be considered against the following criteria:

clarity of application
outcomes and benefits
deliverability

Each application will be assessed by multiple independent, reviewers and will undergo a moderation process. Each question in the form, unless marked “Not scored” (or words to that effect) will form part of the scoring process. The scored questions will then be added up through a weighted process and a total final score is given. We will then rank the applications to create a shortlist.

Submitting an application

To submit an application please complete this form. The questions included on this form are set out in the Annex below. You may wish to prepare your answers using this list before uploading them to the form.

Only applications via the form provided will be considered. Please use the contact details provided below if you experience technical issues.

4. Timeline

25 July: Launch of applications
29 August: Application period closes
30 August to 1 September: Shortlisting
Early September: Provisional interview/presentation dates
4 to 15 September: Bid selection
18 to 22 September: Grant funding offer to selected LA(s) as well as Memorandum of Understanding
25 to 29 September: Acceptance of Grant funding offer and Memorandum of Understanding from LA(s)

5. Contact details

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

6. Frequently asked questions

What streams of funding are available?

This Round, we are looking for projects in one of the two funding streams:

Stream 1: For projects relating to NSIPs in the transport sector only.
Stream 2: For projects relating to NSIPs in any sector

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, examination, or post decision discharging of conditions) in the NSIP process during the period at which the funding is provided (from launch of fund to March 2024). Note that funding for legal challenges, or preparations for legal challenges, to decisions on projects will not be considered as they are out of scope of this work.

Can LAs apply for multi-year funding?

Under this application, the bid cap is £350,000.00 for Stream 1 and £100,000.00 for projects relating to Stream 2. Applicants should clearly state how much funding is required over the full duration of their project and, for Stream 2, indicate how much of the funding is required over the full duration of the project and indicate how much off that funding will be requested for financial years 2023/24 and 2024/25. Funding for stream - Stream 1 is available to fund projects during financial year 2023/24 and Stream 2 is available to fund projects up to August 2024. Projects may extend beyond these periods however there is no guarantee that further DLUHC funding will be available. LAs may consider ongoing work beyond these funding periods within their own means.

Is funding guaranteed for successful bids?

No. We reserve the right to rescope the size of the funding should it be necessary to. If the outcome of results in a more limited budget than anticipated, we may not be able to take bids forward immediately.

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 and for Stream 2, the apportionment of funding requested in each financial year However, funding cannot be guaranteed if the project spans beyond the financial periods identified above. For Stream 2, as limited funding is available for financial year 2024/25 projects are recommended to apportion a maximum of 40% of funding in the financial year 2024/25.

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.

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

No additional funding has been confirmed.

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.

When will the first grant payments be issued?

Applicants should outline a payment plan in their application. No grant payment shall be made before 1 September 2023. No grant payment shall be paid in advance of need.

Do applicants have to use the form provided to submit their bid?

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

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.

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. We will contact applicants ahead of each agreed payment point. Applicants should discuss with their finance teams and familiarise themselves with the Section 31 Grants process to ensure smooth processing of grant payments.

Can other departments/organisations which aren’t LAs apply for funding?

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

Is funding open to all types of LAs?

Funding is open to any LA as outlined at Section 43 of 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. Note that funding for legal challenges to decisions on projects will not be considered as they are out of the scope of this work.

Can a LA bid for multiple streams (i.e., Stream 1 and Stream 2)?

Applicants may submit individual bids under each stream, although a project will only be funded from one stream (i.e. projects cannot combine funding from each stream)

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 form provided.

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.

Can multiple local authorities submit a join bid for more than the total funding amount?

Funding is up to £100,000 or £350,000 per bid depending on which stream the application is submitted via. LAs are welcome to submit complimentary bids, at £100,000 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.

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

If a LA is already doing something which is, 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.

At a first instance, the outputs will be shared with DLUHC and as part of the Planning Advisory Service LA NSIP forum. 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.

The aim of the fund is to help LAs 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.

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.

While it is encouraged, not all bids will depend on promoter 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.

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.

Can local authorities focus more on ‘greener’ than ‘faster’, ‘better’ or ‘more resilient’ objectives?

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

What level of detail is required for the financial breakdown?

LAs 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.

How many applications are DLUHC anticipating putting through?

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

Can a local authority put more than one bid through?

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

How does this fund tie in with wider PINS process?

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

Annex: Expression of interest application – questions

Assessment criteria

We will assess the applications against the following criteria:

clarity of bid
outcomes and benefits
deliverability

Section 1: Proposal

This section asks you about the details of the NSIP application to which your project relates and the project which you are proposing for funding.

1.What NSIP application will this proposal be relevant to? Please describe the NSIP proposal and identify the key areas which require additional support for capacity or innovation.  (200 words maximum)

2. Please select the type of NSIP application this proposal will be relevant to. Please select all that apply. (Road; Water Resources; Ports; Biomass; Solar; Tidal; Interconnectors and Multi-Purpose Interconnectors; Rail; Energy from Waste; Network Connections; Offshore Wind; Strategic Rail freight interchanges; Airports; Nuclear; Transmission Connectors; Water Resources; Gas; Gas Transporter Pipelines; Waste water)

3. What phase is this NSIP application currently at? (Select one: pre-application, acceptance, pre-examination, examination, post consent discharge of conditions, other)

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

5. Briefly summarise the innovation, pilot or trial you would like to propose for consideration. (200 words maximum) 

6.Which of the objectives outlined in the guidance will you be seeking to address through your proposal? (select as many as applicable)

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;
Development of innovations at various stages of the NSIP process and contribute to better, faster and more resilient results;
Improved adequacy of consultation;
Managing the demands of multiple NSIP projects in the same locality, especially when these overlap temporally, and or, spatially; and
Introduce digital innovations including digital ways of working and/ or better use of digital data in the NSIP process.

7. If you have selected multiple objectives, will any of these be the primary objective? (100 words maximum)

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

9. Describe how you intend to capture and measure success of the proposal against the desired outcomes and benefits. This should include success factors, that are explicitly outcome and not output focused, that are SMART in accordance with chapter 8 of HM Treasury’s Green Book. (300 words maximum)

10. How do you propose to contribute to speeding up the NSIP application the proposal relates to? (200 words maximum)

11. How will you ensure the quality of the NSIP process is maintained and improved? (200 words maximum) 

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

13. What learnings do you anticipate being useful to other LAs and how will you ensure these are accessible and transferrable? (200 words maximum) 

14. Will you be drawing on any external consultants for additional support? (Yes/No)

15. If answered YES to question 14, please provide detail including: type of support, reason for external support, role of external support (200 words maximum)

16. Why do you want to be selected to be part of this fund? (100 words maximum)

17. If selected, will you agree that the copyright of the products of the second round of Innovation and Capacity Fund scheme (e.g., reports) can be shared with DLUHC and DfT and 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? (100 words maximum)

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

Section 2: Finance

This section asks about the Stream which you are applying under, and the finance requests of your bid.

This Round, we are looking for projects under 2 separate funding streams:

Stream 1: for projects relating to NSIPs in the transport sector only. We expect to issue grants up to £350,000, with funding for financial year 2023/24.
Stream 2: for projects relating to NSIPs of any sector. We expect to issue grants up to £100,000.00 with funding for financial years 2023/24 and 2024/25. Projects can span financial years and funding is available for up to 12 months from September 2023. As limited funding is available for financial year 2024/25 projects are recommended to apportion a maximum of 40% of funding in financial year 2024/25.

19. Which funding stream are you applying under?   (Stream 1 / Stream 2)

20. How much funding is the LA requesting to deliver the proposal? (Allocations up to £350,000.00 for Stream 1, or £100,000.00 for Stream 2). (Answer must be a number)

21. Please provide suitable breakdown and justification. (200 words maximum) 

22. For applications under Stream 2 only, how much of the above amount is requested for financial year 2023/24 (September 2023 - March 2024) (Answer must be a number)

23. For applications under Stream 2 only, how much of the above amount is requested for financial year 2024/25 (April 2024 - August 2025) (Answer must be a number)

24. Would you 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. (100 words maximum) 

25.Please confirm that this funding will be used for work in addition to any commitments already made by your LA relating to NSIPs. (100 words maximum) 

26.Would the proposal be feasible without a government grant? (100 words maximum) 

27.Has this funding been approved as laid out in your proposal by the LA Section 151 officer? (100 words maximum) 

Section 3: Information about the local authority

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

28. Name of main point of contact

29. Job title of main point of contact

30. Email address of main point of contact

31. Secondary point of contact (in case of difficulty contacting primary point of contact). Please provide name and contact details.

32. Which local authority is submitting this proposal? (Please name all LAs if this is a joint proposal).

33. What type of authority is the applicant? (mayoral combined authority, country council, district council, unitary authority, other)

34. By selecting ‘I agree’ below, I agree, on behalf of my organisation, that I consent to my data being used in the way that the privacy notice sets out. (required)

Section 4: Subsidy Control

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

Privacy notice

The following is to explain your rights and give you the information you are entitled to under UK data protection legislation.

1. The identity and contact details of the Department for Levelling Up, Housing and Communities (DLUHC) and our Data Protection Officer

DLUHC is the data controller. The Data Protection Officer can be contacted at ‘dataprotection@levellingup.gov.uk’

2. What personal data we are collecting and why

Your personal data is being collected as part of your application for the Innovation and Capacity Fund (Round 2) for the purpose outlined in this guidance. The personal data is being collected for this purpose is set out in the questions outlined above. We specifically draw your attention to the Section 3 of the application questions. We may also use it to contact you about further Rounds of Innovation and Capacity funding, or other similar funds, if the government chooses to take these forward.

3. Lawful basis for processing the data

The data protection legislation sets out when we are lawfully allowed to process your data. The lawful basis that applies to this processing is that it is necessary for the performance of a task carried out in the public interest: Article 6(1)(e) of UK GDPR - processing is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller.

Personal data is being processed in order to enable local authorities to apply for a fund will support them to consider ways in which their role in the NSIP process could be improved or done differently to help drive help drive better, faster and more resilient delivery of NSIP projects.

We will not be sharing personal data – we will however be sharing details of applications with the Department for Transport for applications under Stream 1.

5. For how long we will keep the personal data, or criteria used to determine the retention period.

Your personal data will be held for a period of up to two years from closure of applications.

6. Your rights, e.g. access, rectification, erasure

The data we are collecting is your personal data, and you have rights that affect what happens to it. You have the right to:

a) know that we are using your personal data

b) see what data we have about you

c)ask to have your data corrected, and to ask how we check the information we hold is accurate

d)complain to the ICO (see below)

In some circumstances you may also have the right to withdraw your consent to us having or using your data, to have all data about you deleted, or to object to particularly types of use of your data. We will tell you when these rights apply.

7. Sending data overseas

Your personal data will not be sent overseas.

8. Automated decision making

We will not use your data for any automated decision making.

9. Storage, security and data management

Your personal data will be stored in a secure government IT system. Following closure of the application period data will be moved from the application portal to a secure government IT system.

10. Complaints and more information

When we ask you for information, we will keep to the law, including the Data Protection Act 2018 and UK General Data Protection Regulation.

If you are unhappy with the way the Department has acted, you can make a complaint.

If you are not happy with how we are using your personal data, you should first contact dataprotection@levellingup.gov.uk.

If you are still not happy, or for independent advice about data protection, privacy and data sharing, you can contact:

The Information Commissioner's Office
Wycliffe House
Water Lane
Wilmslow, Cheshire,
SK9 5AF

Telephone: 0303 123 1113 or 01625 545 745

https://ico.org.uk/

Cookies on GOV.UK