News: SCR devolution deal set to be South Yorkshire only

Council leaders are to meet next week and are being recommended to approve work to continue to see through the Sheffield City Region (SCR) Devolution Deal with the Government, but based on South Yorkshire only.

Described as "the only deal on the table," a deal with central government includes the creation of a Mayoral Combined Authority, building on the 2013 agreement which saw the nine local authorities that comprise the city region create a new legal body with responsibility for transport, economic development and regeneration.

The £900m devolution deal includes a new gain share deal within an envelope of £30m a year for 30 years – giving the SCR the power to use new funding to boost local growth and invest in local manufacturing and innovation. In return, the Government will require a directly elected mayor to hold accountability for the new powers.

Following withdrawals from councils who had originally intended to become constituent members, and with others wanting to secure the best possible devolution deal for their area, the combined authority (CA) has said it would meet next week to decide the way forward.

A number of options are up for discussion relating to geography, powers and timescales - consultation will need to be carried out again and agreement is needed from Parliament.

The leaders of Rotherham and Sheffield Councils did not join leaders from 17 other authorities who met last month to agree to the development of a "single ambitious devolution deal for the Yorkshire."

The paper to the Combined Authority reads: "Given this context, and in the absence of agreement on an alternative option, it is recommended that the CA proceeds with additional public consultation on a modified scheme for a South Yorkshire only Mayoral Combined Authority. This will put in place the powers and functions Order before the May 2018 mayoral elections."

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How a Mayoral Combined Authority would work was laid out last year. The current CA will keep its existing functions with political decision making around strategic economic development and transport. It operates executive boards focusing on business growth, skills, housing, transport and infrastructure.

Further powers, such as control over adult skills budgets, are set to be handed down, and the elected mayor will bring new functions related to transport, establishing a mayoral development corporation for planning powers and powers to prepare and publish a "spatial development strategy."

It is expected that whilst the Mayor would need to be in the majority for decisions relating to powers secured through this Deal, they would not need to be in the majority for decisions relating to the CA's existing powers and functions. It is also expected that non constituent members may continue to be given full voting rights on appropriate issues.

If the four leaders, and their respective local authorities in South Yorkshire, agree with this option, which is not guaranteed, consultation would begin on September 20.

If an agreement cannot be reached, options include holding a mayoral election in 2018 but with the prospect of them having limited functions, or deferring the mayoral elections.

Current member authorities do have the option to leave the current combined authority but would need to undertake a review and audit on what affect this may have.

Proponents of a full Yorkshire wide devolution deal have been given until mid November to put forward a compliant proposal to government. This requires agreement and input from all four constituent South Yorkshire authorities.

Another option looks at an interim mayor being in place from 2018 as the region looks to hold elections in 2020 – either the Mayor of Yorkshire as the first option or the Mayor of South Yorkshire (as a default if the Yorkshire option does not materialise).

Sheffield City Region website

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News: Rotherham funding approved for BT broadband contract

Councillors have made assurances that Rotherham will get a good deal out of the new £22m superfast broadband project after their decision to approve up front funding came under further scrutiny.

Developed by a partnership with the leadership of the four partners' authorities in South Yorkshire, alongside the support of the Sheffield City Region Local Enterprise Partnership (LEP), the plan is set to enable 97.9% of South Yorkshire to have access to fibre broadband by the end of 2017.

Like other local authorities, Rotherham Council has agreed to underwrite the required local funding contribution of £1.596m in order to allow a contract to be signed with BT in August. It is also set to contribute a contingency budget of £124,000 and £112,500 towards the costs of employing staff to manage the project.

BT were the only bidders for the contract and will be contractually committed to the 97.9% figure, although specific areas and properties are not yet known. The focus is on so called "white areas" that do not have access to next generation (fibre optic) broadband and are not likely to in the next three years.

In a bid to boost business, BT's proposed solution is also set to cover approximately 79% of the South Yorkshire business parks and Enterprise Zones put forward as part of the tender exercise. It is estimated that the project could boost the economy by £271.6m. Rotherham Council believes the Rotherham Borough area "will do very well in respect of its Enterprise Zones and business parks, indeed better than the three other South Yorkshire local authority areas."

The broadband scheme is seeking £8m of funding from the Sheffield city region investment fund for strategic infrastructure investment (SCRIF) but the contract needs to be signed now to meet deadlines set by the Government's BDUK programme.

Opposition councillors wanted BT to cover the costs and wanted more information on the contract - the risks involved and the areas of Rotherham that are set to benefit.

Due to its involvement in the failed Digital Region project, South Yorkshire is the last in this current round of BDUK, the government project with the goal of delivering a fibre point in every community in the UK by the end of 2015. The project timescale "has caused a certain amount of stress which is beyond the control of the four local authorities of South Yorkshire" with the decision on SCRIF, to be made by the Sheffield City Region Combined Authority, not due until November.

Cllr. Ken Wyatt, cabinet member for finance, said: "This project is the second or third highest priority of the Sheffield City Region Combined Authority. All of the technical and financial details have been assessed and the coalition Government's legal experts have completed the due diligence tests. It would be perverse if the SCRIF monies were not ultimately approved to support the project delivery.

"This opportunity cannot be missed to provide broadband connectivity in this City Region and, in turn, stimulate economic growth and job creation. There is no other similar scheme available, because the private sector would not invest in rural areas. The scheme has coalition Government support and therefore we must take advantage of the project."

The remaining funding is set to be shared by BDUK and BT.

Gavin Patterson, chief executive officer at BT, said: "Getting fibre to rural areas is hard, and often complex, work but we are making great progress. Our engineers are busy, from Hampshire to the Highlands, connecting homes and businesses whatever the challenge. We are laying undersea cables to the Outer Hebrides, reaching remote villages in Wales and transforming rural areas across England.

"BT has brought technical expertise to the table as well as hundreds of millions of pounds. Some of the early projects are close to completion and further funds will be released if we come in under budget or take-up exceeds expectations."

Ironically, BT was one of two companies in the running to take over the Digital Region project before the tender process was halted and the decision was made to close down the network. BT was actually shunned in favour of French firm, Bouygues Energies & Services.

Last week, the request by opposition members was not supported and the cabinet decision was endorsed. The tender response from BT will now be accepted and the project will move to contract and delivery.

BT website

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News: Digital Region network sold

Geo Networks, part of the American Zayo Group, is to acquire the assets of the failed Digital Region project in South Yorkshire, offering a lifeline for businesses left without options for superfast broadband.

The aim of the £90m Digital Region project was to bring continuous 25mb+ broadband to over 97% of South Yorkshire, including 550,000 homes and 1.3 million people.

A combination of delays in appointing a contractor to build and run the network, failing to adjust as necessary in a fast-moving business sector and zero income risk being allocated to the network operator made the business hopelessly uncompetitive.

A spokesperson for Zayo said: "Digital Region Limited (DRL) has announced that the process to sell its fibre network assets has now been concluded and the company has entered into an agreement to sell the network assets to Geo Networks Ltd.

"The assets will be transferred over to Geo Networks and decommissioning work will commence following the migration of all Digital Region customers from the network in August 2014."

Geo Networks is focused on providing fibre-based bandwidth infrastructure services and Zayo delivers bandwidth infrastructure for carriers, enterprises, and governments. It specialises in "dark fibre" - optical fibre infrastructure, such as the miles of cables installed across South Yorkshire, that is currently in place but is not being used. The cabling is used as and when its required by organisations that need major bandwidth on a secure, private platform.

The company has a 100-route mile London network housed in the London sewer system and provides managed networks, dark fibre and co-location services to a variety of high-bandwidth sectors including media companies, service providers, financial services, data centres and gaming organisations.

Geo Networks was acquired by Colorado's Zayo Group in May, significantly increasing Zayo's fibre footprint in the UK, adding over 1,800 miles of national fibre connecting 130 data centres, telehouses and key internet exchanges.

Enjoying revenues of over $1 billion, Zayo Group Holdings, Inc recently filed for an IPO to join the stock exchange.

Financial details of the deal remain undisclosed but Zayo said that it plans to incorporate the fibre assets into the nationwide Geo network, and provide high-bandwidth fibre services to businesses and datacentres within the South Yorkshire region as well as carrying out the decommissioning of the existing Digital Region street furniture.

Local businesses will be hoping that carriers and service providers will make use of the dark fibre to connect buildings to the network. Zayo provides fibre-based bandwidth to nine of the ten largest global telecommunication carriers and quad-play operator TalkTalk recently extended a deal with Zayo to use its network services in the UK.

Work on installing the Digital Region network started in 2009, and by 2012, completion of phase one of the project saw 80% of homes and businesses within South Yorkshire able to be linked to the network.

The project was financed by contributions from local authorities and included £30m from the European Regional Development Fund (ERDF). It was wholly owned by the now defunct Yorkshire Forward and the four local authorities of South Yorkshire.

Last year, the then Minister of State for Business and Enterprise, Michael Fallon, described the previous Digital Region project as "deeply flawed" as it had failed to attract customers.

It was also revealed that the government would have to provide at least 45% of the funding to cover a significant proportion of the repayment of the ERDF grant which has to be paid back to Brussels, because the original conditions were not fulfilled. It will also pay a proportion of the contract due to the original operator, Thales.

With only 3,000 of the 100,000 customers it needed, the remaining shareholders agreed to halt their search for a private sector partner and begin a managed closure of the fibre optic network.

The network is currently being closed down and will be switched off on August 14. Recent estimates from Sheffield Council put the cost of closure at £83m.

Rothbiz was the first with the news that BT has had its tender accepted for a new £20m superfast broadband project that will target the remaining 20% of South Yorkshire where it is acknowledged that the market is unlikely to deliver superfast broadband and will likely remain so until 2017.

Zayo website

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News: Further funding for sustainable transport

A further £4.8m of Government funding has been secured to help boost the South Yorkshire economy and get people back to work.

The funding, from the Local Sustainable Transport Fund (LSTF), will be matched with local contributions to create a pot of £72m to support a range of schemes which bring environmental, health and economic benefits. Bidders had to show that the money would be used to help boost economic growth, reduce carbon emissions, improve air quality and encourage higher levels of cycling and walking.

The award follows the £24.6m received from the same source in 2012.

Delivered under the Inmotion! brand, a partnership between South Yorkshire Passenger Transport Executive (SYPTE), Barnsley, Doncaster, Rotherham and Sheffield Councils, schemes include Wheels 2 Work, which provides scooters on a short-term loan basis to people needing to take up work or training, but who haven't got the transport to get them there. JobConnector, a new hourly express bus service between Barnsley and Doncaster, connects communities and jobs in these two towns and in the southern Dearne Valley.

Other schemes include Travel Choices support, where help is offered direct to employers and employees to show them their travel choices without depending on a car. This includes giving 3,600 existing car drivers a public transport trial. And there is Independent Travel Training which will deliver travel "buddying" services to 80 young people with special educational needs and disabilities.

There are also schemes to help promote training and to help businesses convert their fleet to clean electric vehicles and to reduce fuel consumption, which in turn will help make our businesses more cost efficient.

Bill Mordue, chairman of Sheffield City Region Combined Authority Transport Committee, said: "We are delighted to have been awarded this funding, which will help us to get people into work and training and to do so in a sustainable way that helps the environment.

"Our bid, which we submitted together with all four South Yorkshire councils and a range of other organisations, has secured the second largest amount of funding of all the bids around the country, which we feel is testament to the high quality of the schemes we have put together."

Inmotion! website

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News: FDI report has region lagging behind

According to EY's annual UK Attractiveness Survey, the number of FDI projects secured by the region fell from 21 in 2012 to 20 last year, the lowest total of all 12 UK regions analysed.

However, the number of jobs generated as a result of Foreign Direct Investment (FDI) projects has increased by more than 150 per cent to 955 in 2013 compared to 380 in the previous year.

Analysis from the multinational professional services firm showed that UK projects rose this year by almost 15% to 799, driven by the pulling power of London for global FDI which is at risk of overshadowing the rest of the UK, especially the regions.

Whilst London attracted 380 projects in 2013, Yorkshire was one of five UK regions to record a year-on-year decline in 2013, alongside Wales, the South East, the North East and the West Midlands.

David Buckley, senior partner at EY in Yorkshire, said: "While a three-fold increase in jobs as a result of FDI illustrates that the quality of investments in Yorkshire is improving, the marginal decline in the number of projects last year from what was a very low base in 2012 highlights the continued need to re-focus support on the region’s global competitiveness.

"While some areas grew FDI levels significantly, total projects in the English regions – excluding London and the South East – were still 20% lower in 2013 than 2010, when the regional development agencies were abolished. The rest of the UK is at risk of being overshadowed by London, which accounted for nearly half of all investments in 2013.

"The fact that Yorkshire is in last place in the UK regions for foreign direct investment should be an alarm bell. What are others doing that we are not?"

Manufacturing was the dominant sector in Yorkshire in terms of volume of FDI projects last year, adding 13. Finance and business services, and transport and communications were the second most popular industries, each securing two projects.

Buckley added: "It's encouraging that Yorkshire continues to be a centre of excellence for manufacturing, an industry where the UK is punching well below its weight in terms of FDI investment.

"The country must develop a more ambitious manufacturing strategy and should look to Yorkshire as one of the primary destinations to promote, given the region's track record for nurturing businesses in the sector and supporting a skilled industry workforce.

"However, the region's pre-eminent cities – none of which featured in the UK top 10 for FDI projects secured in 2013 – must do more to articulate their benefits to attract important business services projects, which are increasingly driving high levels of employment."

According to the report, South Yorkshire attracted four of the region's FDI projects in 2013. It follows on from UKTI's 2012/13 Inward Investment Annual Report that recorded a total of 26 companies investing in the Sheffield City Region resulting in 631 new jobs and 3,099 safeguarded jobs.

Over the past year, FDI projects reported by Rothbiz include the decision by German-headquarted multinational group, Intersnack, to invest £16m to build a new state of the art nut processing and packing facility for KP Snacks in Rotherham.

Foreign investment also came in the source of acquisitions with Australian minerals firm, Iluka Resources Limited, agreeing to invest £12.2m for an 18.3% stake in Metalysis, the Rotherham-based innovator that is commercialising a low-cost way to manufacture titanium and other specialist powder metals.

Last month saw the conclusion of a £1 billion deal struck by Mexico's Grupo Bimbo to take over Canada Bread, the company owned by Maple Leaf Foods. The deal includes the largest bagel production facility in Europe, based at Swinton in Rotherham.

EY website

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News: Yorkshire manufacturers remain positive

Yorkshire manufacturers are outperforming the other regions in the UK, according to the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO LLP.

The data, published today, reveals that business confidence in Yorkshire has firmly taken root, with this quarter's findings showing that manufacturers' strong start to the year was sustained in the second quarter. Firms reported positives across every key indicator of business health.

A balance of 54% of Yorkshire-based manufacturers reported an increase in orders in Q2 – higher than all other UK regions. Yorkshire was only pipped to the post by East of England for output.

39% of manufacturers have ramped up recruitment during Q2 (second only to the South West), with a further 28% planning to invest further during the year ahead.

The one area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of Yorkshire manufacturers confident of achieving export growth in the third quarter of the year.

The strong results for the region mirror the national picture and EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year.

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Jason Whitworth, partner at BDO LLP in Yorkshire, said: "Government manufacturing policy is clearly paying dividends and is creating an environment in which Yorkshire manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital. This is a very positive indicator for the rest of the year. What is now needed is for this success to be replicated abroad.

"We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe."

Andy Tuscher, Yorkshire Region Director at EEF, added: "There is a palpable sense of mounting confidence amongst manufacturers here in Yorkshire and this set of results tells us that it is fully justified. The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession and a further boost to the local economy and the job market.

"Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK."

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, recently announced that it had acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

EEF website
BDO LLP website



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News: Community work placements in Rotherham

Interserve Working Futures has secured the government contract to help the long-term unemployed in South Yorkshire gain valuable work experience.

The new scheme – Help to Work – will give Jobcentre staff a new range of options to support the hardest to help get off benefits and into work.

Starting from June 2014, Community Work Placements will be one of three intensive options that Jobcentre Plus advisers can consider for Jobseeker's Allowance claimants who return from the Work Programme.

Claimants who lack work experience - and where this is felt to be holding them back from finding a job - may be asked to undertake a placement, which will also benefit their local community. This would include a range of roles in the voluntary and community sector that will give the claimant skills and experience within the work place. This could include gardening projects, running community cafes or even restoring historical sites and war memorials.

The placements will be for up to six months for 30 hours a week and will be backed up by at least four hours of supported job searching each week to help turn the experience into full time employment.

It will be for claimants who encounter multiple barriers to work and who would benefit from relevant and current work experience to help them back into sustainable employment.

Prime Minister David Cameron said: "A key part of our long-term economic plan is to move to full employment, making sure that everyone who can work is in work. We are seeing record levels of employment in Britain, as more and more people find a job, but we need to look at those who are persistently stuck on benefits. This scheme will provide more help than ever before, getting people into work and on the road to a more secure future."

Bob Vince, developments director at Interserve, said: "We are delighted to have been awarded these contracts, which will enable us to use our experience in this area to help job seekers add relevant skills to their CV's and provide sustainable employment opportunities for many people. We have strong relationships with many voluntary sector partners who can assist us in the delivery of this."

The cabinet at Rotherham Council recently discussed a local review into the government's Work Programme, which provides support, work experience and training for up to two years to help the long term unemployed (over three months) find and stay in work.

The report raised the issue of sanctions and stated that communication with claimants needed to be improved; a degree of local flexibility should be introduced; vulnerable claimants should be able to access one to one support; and a local working protocol should be established with the aim of ensuring complete fairness in the process of implementing sanctions in Rotherham.

The two Work Programme prime contractors for South Yorkshire – Serco and A4e - were invited to take part in the review either by giving evidence at meetings or answering written questions. Both turned down the opportunity to provide evidence and to have their input considered by the review, with A4e taking the view – based on advice from their Department for Work and Pensions account manager - that it would be inappropriate to respond to the panel's questions.



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News: Supertram spending could leave £30m hole in transport budget

It may have opened in 1994 but spending on the building of the Supertram system in Sheffield is set to carry on until 2034 with transport bosses proposing an unusual accountancy procedure with a number of risks to try and reduce the burden for the region's local authorities.


Sheffield's Supertram system cost a reported £240m and now serves major residential and employment sites in Sheffield. One of the first group of modern tram systems to be built in the UK, the assets are owned by the South Yorkshire Passenger Transport Executive (SYPTE) with the services operated by Stagecoach. A £60m extension is set to see innovative tram-trains join the system between Sheffield and Parkgate via Rotherham town centre from 2016.

The SYPTE still has a deficit of £30.5m on its general reserve budget with a significant part of this relating to capital expenditure incurred by the PTE as part of the construction of the Sheffield tram network.

The SYPTE and Stagecoach Supertram are currently funding a major programme of rail replacement works on the network, with the majority of work being undertaken during the next five years at an estimated capital cost of £32m.

The deficit means that around £3m of the executive's £84m total annual budget is being spent on covering the debt and, at a time of budget cuts, a new accountancy procedure is set to reduce this burden.

The South Yorkshire Integrated Transport Authority (SYITA) is the locally accountable body responsible for the strategic direction of transport planning and delivery. The SYPTE works in partnership with the local councils and transport service operators to manage public transport infrastructure, run the local bus, train and tram services and provide walking and cycling routes. Funding comes from the government and levies from South Yorkshire's four local authorities.

The SYITA has this week approved proposals to make a £30.5m capital grant to the SYPTE to cover the deficit with the aim of reducing the levies that councils pay each year.

Steve Pick, clerk and treasurer at the South Yorkshire Joint Secretariat explained at the authority's final meeting before its role moves to the new combined authority, that due to different accounting requirements, having the debt sit with the authority rather than the executive would enable the repayments to be extended for a further ten years, reducing the annual levy by around £1.5m.

However, the report by Howard Brier, technical and treasury services manager at the South Yorkshire Joint Secretariat, explains that advice has been sought from the Chartered Institute of Public Finance and Accountancy (CIPFA) and auditors from KPMG, and that further legal counsel is being sought due the risks of the grant.

The main risk is that, if for some as yet unknown reason, the £30.5m grant is deemed unlawful then it would fall to the local authorities to pick up the shortfall in funding.

This would come at a time when the SYPTE has put forward plans that aim to make savings of around 10% to their annual budget impacting on concessionary services, community transport services and free bus services in the Sheffield and Rotherham retail areas.

SYPTE website

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News: Councils set to intervene in South Yorkshire's broadband network again

Local authorities are set to lead on a project that aims to achieve 95% superfast broadband coverage in South Yorkshire by 2017, despite their involvement in the "deeply flawed" Digital Region project.

The aim of the Digital Region project was to bring continuous 25mb+ broadband to over 97% of South Yorkshire, including 550,000 homes and 1.3 million people. Work on installing the network started in 2009, and by 2012, completion of phase one of the project saw 80% of homes and businesses within South Yorkshire able to be linked to the network.

The £90m project includes £30m from the European Regional Development Fund and the project was wholly owned by the now defunct Yorkshire Forward and the four local authorities of South Yorkshire.

Last year the remaining shareholders agreed to halt their search for a private sector partner and begin a managed closure of the fibre optic network. It is expected to be decommissioned by August 2014.

Now consultation is underway for a "Superfast broadband project to deliver improved broadband infrastructure to areas where it is acknowledged that the market is unlikely to deliver Superfast broadband and will likely remain so until 2017."

Partners believe that broadband connectivity is essential for building a strong and competitive economy resulting in economic growth and creating more and better jobs.

Developed by a partnership with the leadership of the four partners' authorities in South Yorkshire, alongside the support of the Sheffield City Region Local Enterprise Partnership, the plan has been approved by BDUK, the government project with the goal of delivering a fibre point in every community in the UK by the end of 2015.

The BDUK Framework is based on a gap funded subsidy approach, where the private sector invests alongside a public subsidy to provide broadband to areas where there is not otherwise a viable commercial market. BDUK is providing £530m of funding to a number of projects across the UK and had originally ruled out funding South Yorkshire due to the Digital Region project that had similar aims.

The new South Yorkshire project will procure a private sector company to deliver the network to these "white areas" that do not have access to next generation (fibre optic) broadband. BT and Fujitsu are in the running (but is more likely to be BT).

Broadband suppliers are now being contacted regarding their current and future plans for South Yorkshire so that target areas can be established. Almost 80% of residential and business premises in the region will have access to next generation broadband in the next three years by way of commercial activity already undertaken or planned by operators.

The remaining 20% of South Yorkshire will form the next generation broadband intervention area of the project with around 2% (mostly rural areas) to form the basic broadband intervention area of the project.

Last year, the Minister of State for Business and Enterprise, Michael Fallon, described the Digital Region project as "deeply flawed" as it had failed to attract customers. It was also revealed that the government would have to provide at least 45% of the funding to cover a significant proportion of the repayment of the European Regional Development Fund grant which has to be paid back to Brussels, because the original conditions were not fulfilled. It will also pay a proportion of the contract due to the original operator, Thales.

What will happen to the physical Digital Region network after its closure is not yet known.

Images: BT Openreach

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News: Transport Committee reaffirms backing for HS2

The Transport Committee, a group of MPs including Rotherham MP Sarah Champion, charged by the House of Commons with scrutiny of the Department for Transport, has published its latest report on HS2.

HS2 is the Government's £50 billion high speed rail project that aims to provide extra capacity to handle increasing demand. By 2033, a South Yorkshire station will be on the proposed route from London to Leeds via Birmingham and the East Midlands.

The committee decided look again at the project following the publication of a revised business case and new research by KPMG on the project's possible regional economic benefits.

Analysis by KPMG showed that the UK will be £15 billion a year better off with HS2, recovering the cost of the scheme within just a few years. HS2 could add between £0.5 billion and £0.9 billion each year to the economic output of South Yorkshire.

With a proposed station at Meadowhall, the analysis shows that Rotherham could increase its annual economic output by between £131.7m and £272.12m due to the investment in HS2 and the re-design of the existing railway infrastructure.

The committee concludes that: "Having reviewed the revised business case for HS2 and the KPMG report on regional economic benefits we remain convinced that the project is justified. HS2 is needed to provide a long-term increase in the capacity of the railway and that alternative proposals to increase capacity are not sufficient to accommodate long-term forecast demand."

The report calls for more to be done to ensure more areas benefit from the investment in HS2, by prioritising rail projects that improve connectivity to the new line; building additional links between the conventional and high speed networks; and bringing forward projects to speed up journey times on the conventional network. It also adds that current projects such as the Northern Hub, should also be speeded up, in order to provide firmer evidence of the project's broader benefits.

The importance of the project in boosting economic growth and rebalancing the economy is also discussed. The committee makes it clear that local authorities and Local Enterprise Partnerships must develop economic development strategies to make the most out of HS2 and they must be supported in doing this by central Government.

The committee had also previously called for a full assessment of the case for building HS2 north to south. Since then Sir David Higgins has told the MPs that when he takes up his post as the Chairman of HS2 Ltd he will look at the case for building north to south concurrently with building south to north. The Tansport Committee believe that the economic, transport and political case for this has strengthened since its last report.

HS2 Ltd website

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News: Tata Steel investing a further £15m in South Yorkshire

Tata Steel has announced that it will build a Vacuum Induction Melting (VIM) furnace at its Stocksbridge site in South Yorkshire.

The cutting-edge VIM furnace will allow Tata Steel's Speciality Steels business, which already supplies steel to aircraft engine and airframe makers, to further develop relationships with its customers and expand its product portfolio.


The VIM production route involves melting high-purity recycled steel and alloys in a crucible furnace, extracting trace elements via a degassing process in a low-pressure vacuum, and casting the purified liquid steel into ingot moulds. The entire melting and casting operation is conducted in an oxygen-free atmosphere, resulting in clean steel with very low gas content.

Alloying additions, also carried out under vacuum, allow for very precise control of the steel's chemical composition. The ingots produced would be refined further by vacuum arc remelting before being rolled or forged into products for the aerospace market.

VIM-derived steels are typically consumed in aircraft engine transmissions and bearings as well as aircraft structural and undercarriage components and the investment will enable the Indian-owned steelmaker to tap into new market opportunities and develop innovative new products for the aerospace and oil & gas industries.

Henrik Adam, chief commercial officer at Tata Steel, said: "The addition of a VIM furnace to our asset base for aerospace steel production is an exciting prospect. It means we will be able to make more ultra-pure steel for fail-safe, safety-critical applications such as aircraft engines.

"This initiative enhances our role as a partner for key customers who require highly specialised products. Our ability to support them is an important aspect of our role in the aerospace steels supply chain.

"This investment is a clear demonstration of the contribution foundation industries like steel make towards rebalancing the British economy. We are supporting high-skilled manufacturing jobs and developing innovative new products and services for customers around the world."

Mark Broxholme, managing director of Speciality Steels, added: "While the business currently supplies small quantities of VIM-derived steel using ingots sourced from third parties, having our own manufacturing capability will greatly increase our scope for VIM sales.

"This is a clear signal to our customers that we are fully committed to the aerospace market for the long term.

"This is also great news for the team here at Speciality Steels, which has put enormous effort into bringing this facility to South Yorkshire."

Investment in 2005 saw the Rotherham site at Aldwarke become the focus for steel making, casting and rolling of specialist steels. The steel is manufactured from recycled material at the Rotherham site before undergoing further refining at the Stocksbridge plant or the Thrybergh Bar Mill to improve the quality.

In 2012, a £6.5m investment in aerospace steel production, including two new Vacuum Arc Remelting (VAR) furnaces at Stocksbridge, boosted output of these steels by 30% and safeguarded the South Yorkshire jobs.

A £1.3m development was recently confirmed that will meet the exacting needs of Tata's American customers.

Last year, Tata announced a collaboration with German technology company SMS Mevac, which has designed the new £15m facility. The VIM furnace (cgi above) is expected to be commissioned early in 2015.

Tata Steel Speciality Steel website

Images: SMS Mevac / Tata Steel

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News: MPs debate cut to region's EU funding

Opposition MPs are "seriously considering" asking for a judicial review on how the government is allocating new European Union funding, plans described by local Wentworth and Dearne MP, John Healey as "outrageous and unjustifiable."

Mr Healey raised the issue in Parliament this week after the government announced that the Sheffield City Region Local Enterprise Partnership (which includes South Yorkshire along with north Nottingham and north Derbyshire districts) can expect €203m for 2014 to 2020 as part of €6.2bn (£5.3bn) of EU Structural and Investment Funds to boost growth under a simplified "Growth Programme."

In the current settlement, South Yorkshire receives €410m. From 2014-2020 this will be cut to €180m.

MPs in areas such as South Yorkshire and Merseyside see the government topping up money going to Scotland, Wales and Northern Ireland, so they don't face cuts of more than five per cent, even though some English economies are weaker than that of Scotland or Northern Ireland. The local MP asked for a review of the allocations to South Yorkshire and Merseyside and a commitment to use other funding routes to rectify the shortfall.

During the debate, Mr Healey said: "Firstly, the relative rise in prosperity in South Yorkshire anticipated at the start of the period has not happened as we were hit harder than many other areas by the global financial crisis and the austerity-driven downturn after 2010.

"Secondly, the profile of the spend each year during the seven-year period has been broadly equal and not sharply declining towards the end of the period.

"Thirdly, unfortunately, it remains the case that only three regions in the UK are poorer than Merseyside and only four regions, including Merseyside, are poorer than South Yorkshire.

"I hate making the case in those terms because I want to talk about the new businesses, the jobs programmes, the skills base, the investment plans and the economic potential of our area, but that is the argument that the Government are using, so that is the argument that I must counter."

Michael Fallon, Minister for Business and Enterprise, could not explain why South Yorkshire was seeing a cut by half but areas of Scotland and Wales will get 95% of the previous amount but explained that due to South Yorkshire having "transition" status and moving towards becoming a competitive region, then European funding would taper off.

Mr Healey added: "We know how to use European funding in South Yorkshire, we know how to use it well, and we have firm plans for its use in the future.

"The Advanced Manufacturing Park on the edge of Rotherham would not be there without support from European funding, and the nuclear advanced manufacturing research centre and the knowledge transfer centre in Rotherham would not be there without £15m from the ERDF.

"We have plans for the future. We can put the money to good use, and that will include support for the city deal and for 4,000 extra apprenticeships throughout South Yorkshire."

John Healey MP website

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News: Tata Steel begins search for new apprentices

Tata Steel has launched a search to find 29 bright, talented and passionate people to join its apprenticeship schemes in South Yorkshire.

In 2012 the Tata Steel apprentice training scheme in South Yorkshire was highly commended in the National Apprenticeship Awards.

This year, 11 mechanical engineering, ten electrical, five technical and three commercial apprentices will join the company to work across Tata Steel sites in Rotherham, Stocksbridge and Brinsworth.

Tor Farquhar, HR director at Tata Steel said: "The steel industry is facing a challenging time, but we are continuing to invest in skills for the future and our apprentice programmes are central to our future success."

Tata Steel's Speciality Steels business in South Yorkshire is benefiting from a new strategy that focuses on exceptional high-value products and sectors. An engineering training centre at the Stocksbridge site was officially opened last year.

Just over 2,000 people are employed at Tata Steel in South Yorkshire and these sites specialise in the production of high grade and special steels for the world's leading companies in markets ranging from automotive to aerospace, civil engineering to component manufacturing, energy industries to consumer goods.

All of the steel produced is made from recycled steel.

In total, 122 new craft and technical apprentices will be taken on in the UK to study mechanical and electrical engineering or chemistry and metallurgy, and work towards NVQ qualifications at the Tata Steel sites.

Apprenticeship applications to Tata Steel are open until March 17 with successful applicants starting work in September.

Mr Farquhar added: "The successful candidates can look forward to achieving essential qualifications and contributing to an international company which manufactures world-class steel."

Apprentices are initially on a fixed three year contract and are regularly reviewed throughout this period to ensure they are fully supported to complete their chosen framework.

Apprentice and graduate recruitment restarted for Tata Steel in South Yorkshire in 2010 following large scale restructuring in 2009.

Tata Steel website

Images: Tata Steel

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News: CBRE to look after JESSICA

Leading commercial property and real estate services adviser, CBRE has been appointed to run an innovative £23m infrastructure and property fund for South Yorkshire.

The Sheffield City Region Local Enterprise Partnership (LEP) has been working with Creative Sheffield, part of Sheffield City Council to create a JESSICA fund, a financial engineering mechanism used to create a revolving fund that could be used for regeneration projects such as the creation of new commercial floorspace, brownfield redevelopment or investment in infrastructure.

It uses £8m of the government's Growing Places Fund for Sheffield City Region to leverage a further £15m of funding from the European Regional Development Fund.

James Newman, Chairman of the Sheffield City Region LEP, said: "We have been working very closely with our private sector colleagues in the construction industry and time and time again they refer to access to finance being a major barrier to development.

"This fund is a direct response to this barrier and whilst it will not solve every problem or be suitable for every development, it puts in place a significant financial tool to help stimulate the local economy.

"Importantly, we expect to see a return on the investments, which will then be recycled into further projects over the next ten years. It is hoped that over time it will be able to also support investment across the wider city region."

Businesses wishing to find out more about how they can take advantage of the fund should attend RiDO's Property Forum on March 19 at the Holiday Inn Express, Manvers, to hear from Will Church of CBRE.

As part of the government's City Deal with Sheffield, a Sheffield city region investment fund for strategic infrastructure investment (SCRIF) is also being created that brings together different funding streams to maximise economic growth across the city region. It has the potential to provide up to £700m over the next ten years

The South Yorkshire Transport Executive, (SYPTE) has submitted four schemes for assessment including bids to secure funding for improved public transport provision to the Waverley development and for highway and public transport improvements to ease existing problems and open up development sites at Parkgate.

CBRE website
RiDO website

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News: Tata Steel to introduce vacuum induction melting in South Yorkshire

Tata Steel, the Indian-owned steelmaker, has announced a new collaboration with technology company SMS Mevac, which will design a new facility for the production of high-purity vacuum induction melted (VIM) steels for the aerospace industry at the speciality steels business in Stocksbridge.

The VIM production route involves melting high-purity recycled steel and alloys in a crucible furnace, extracting trace elements via a degassing process in a low-pressure vacuum, and casting the purified liquid steel into ingot moulds. The entire melting and casting operation is conducted in an oxygen-free atmosphere, resulting in clean steel with very low gas content.

The ingots produced would be refined further by vacuum arc remelting before being rolled or forged into products for the aerospace market.

VIM-derived steels are typically consumed in aircraft engine transmissions and bearings as well as aircraft structural and undercarriage components.

Richard Bell, commercial director, speciality steels, said: "We have been supplying VIM steels for many years using ingot sourced from select third parties. However, our aerospace customers have been eager to see Tata Steel make a solid commitment to them by expanding its capability and integrating VIM into its existing UK asset structure.

"We are delighted to be taking this step and we look forward to working closely with key aerospace supply chains on VIM-derived products."

The VIM products are made in addition to the aerospace steel currently manufactured using an electric arc furnace at the Rotherham site at Aldwarke. Starting as high quality scrap, the steel goes on for further refining at the Stocksbridge plant or the Thrybergh Bar Mill to improve the quality.

The steel, predominantly stainless and low alloy grades, is used in landing gear and aircraft engines including the landing gear of the Boeing 787 Dreamliner.

Tata has made investments in the speciality steels business in South Yorkshire totalling over £23m in the last few years in support of both plant energy efficiency and improved processing capability.

A £6.5m investment project in aerospace completed this year which includes two new vacuum arc remelting (VAR) furnaces and specialist testing equipment, as well as a new ultrasonic immersion testing facility.

Tata Steel website

Images: SMS Mevac

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News: South Yorkshire employees set for sustainable journeys to work

South Yorkshire Passenger Transport Executive (SYPTE), with the four South Yorkshire councils, has secured £24.6m of Government funding to help boost the local economy and get people back to work.

The "Sustainable Journey to Work" project aims to invest in four main corridors in South Yorkshire including the Don Valley and the Dearne Valley which include key employment sites and communities in Rotherham.

The bid is for part of the Department for Transport's Local Sustainable Travel Fund. It builds on the £4.9m secured in 2011 for a key component bid for the project.

The bid seeks funding for a range of measures including improvements to bus routes, highway improvements, traffic management systems, cycle routes, training programmes, and information provision, as well as trials of electric vehicles, new bus services and other measures to help people get to work and training.

£10.9m had been earmarked for projects in the Don Valley and £2m for the Dearne Valley, based on a combination of genuine local need and a high potential for carbon-friendly economic growth.

Enhancements will also be focused at the Enterprise Zones along the M1.

The investment stands to benefit around 10,200 businesses in the four corridors which affects 226,000 jobs – with more jobs likely to be created.

A range of measures will be put in place including bus priority; 'Jobconnector' bus services; cycle routes; upgrade of tram stops; rail-based Park & Ride; promotion of electric vehicle use; infrastructure to unlock urban regeneration; training; marketing and travel planning.

Mick Jameson, chairman of the SYITA, said: "We welcome this crucial Government funding which will help support economic growth and help get people back to work.

"We have identified four key corridors in South Yorkshire which will greatly benefit from this level of investment and between them they include around 10,200 businesses and 226,000 jobs. We are confident that this funding will enable a step change in our ability to help people access jobs and help employers reach the right people.

"The Government wants to see carbon emissions reduced and this money will help facilitate economic growth while helping people to travel in a sustainable way."

Transport Minister Norman Baker, added: "We are serious about funding infrastructure where there is a clear business case for doing so. The money we are putting into these projects will unlock much greater economic benefits for communities as well as improving the environment – it's a win-win."

SYPTE website

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News: South Yorkshire waits on HS2 station location

An announcement will be made in the autumn on the proposed location of a station in South Yorkshire on the UK's £32.7 billion high speed rail network, HS2.


The first phase of the HS2 project will see the construction of a new 140 mile line between London and Birmingham by 2026. The second phase was detailed in January and will see lines extending north from Birmingham to Manchester and Leeds by 2033, including the construction of an intermediate station in South Yorkshire.

HS2 Ltd, the organisation set up by the government to develop and promote the project, is currently engaged in detailed planning work for options for the routes to the north, including the location of the station in South Yorkshire.

By the end of this month, they will provide their route and station advice to the government for high speed rail lines to Leeds, Manchester and Heathrow. HS2 Ltd's advice will include options for stations in Manchester, Leeds, South Yorkshire, the East Midlands and at Heathrow Airport, as well as advice on the case and potential locations for additional stations.

Justine Greening, the Rotherham-born Transport Secretary, said: "I will consider this advice objectively and in detail over the coming months, and I intend to publish it in the autumn together with a Government response setting out initial preferred route and station options.

"An important part of this process will be to consider the views of delivery partners in the cities where HS2 stations may be located, including any underpinning evidence which they have identified.

"Understanding local desires and plans for development will be crucial in helping me reach initial preferences for station locations. I am particularly keen to ensure that the network best supports the economic potential of the cities and regions it serves, through well-integrated station locations that build on local and regional plans."

Following publication, a full public consultation will be launched and completed before any decisions can be reached.

On the high speed rail network, journey times are set to be reduced significantly with trains travelling up to 250 mph. A journey from London to Sheffield currently takes two hours eight minutes. That would be reduced to one hour 15 minutes.

At present values, the government estimate that it will generate benefits of up to £47 billion and fare revenues of up to £34 billion over a 60-year period.

HS2 website

Images: dft.gov.uk

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News: Station proposed for South Yorkshire under HS2

Londoners can expect shorter journey times to Rotherham after the government backed proposals for the start of a new high-speed rail network in the UK.

The first phase of the HS2 project will see the construction of a new 140 mile line between London and Birmingham by 2026. The second phase will see lines extending north from Birmingham to Manchester and Leeds by 2033, including the construction of an intermediate station in South Yorkshire.

A formal consultation on second phase routes will begin in early 2014 with a final route chosen by the end of 2014.

HS2 is expected to increase dramatically passenger capacity along the key transport corridors of Britain with up to 26,000 extra passenger seats running each hour that will relieve congestion on existing intercity routes as well as roads and air routes.

Journey times are also set to be reduced significantly with trains travelling up to 250 mph. A journey from London to Sheffield currently takes two hours eight minutes. That would be reduced to one hour 15 minutes on the high speed rail network.

The government estimate that the capital cost at 2011 prices of building the complete network is £32.7 billion. At present values, they estimate that it will generate benefits of up to £47 billion and fare revenues of up to £34 billion over a 60-year period.

Justine Greening, the Rotherham-born Transport Secretary, said: "A new high speed rail network will provide Britain with the additional train seats, connections and speed to stay ahead of the congestion challenge and help create jobs, growth and prosperity for the entire country.

"HS2 will link some of our greatest cities – and high speed trains will connect with our existing railway lines to provide seamless journeys to destinations far beyond it. This is a truly British network that will serve far more than the cities directly on the line."

HS2 Ltd, the organisation set up by the government to develop and promote the project, is currently engaged in detailed planning work for options for the routes to the north, including the location of the station in South Yorkshire.

Possible locations for the station include Meadowhall, Tinsley Marshalling Yards and the old Victoria Station in Sheffield.

HS2 Ltd website

Images: HS2 Ltd

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News: Funding secured for sector growth in South Yorkshire

The economic growth in target sectors across South Yorkshire is set to increase after local councils secured a £3m investment from the European Regional Development Fund (ERDF).

Rotherham Investment & Development Office (RiDO), the regeneration arm of the council, will work alongside their counterparts in Sheffield, Doncaster and Barnsley, to support both inward investors and expanding indigenous businesses in sectors such as Advanced Manufacturing; Creative and Digital Industries; Business Services and Logistics.

The South Yorkshire Sector Growth Enhancement Programme will run for four years and could bring in 600 gross new jobs and generate an increase in GVA of over £9m.

The programme will be delivered via an extension of the successful Invest South Yorkshire model and key activities include proactive business development and developing contacts and networks, key account management and flexible support to high growth potential SMEs and the attraction and facilitation of new inward investment.

David Fletcher, Director of Business Investment at Creativesheffield, said: "Our key account management activities to date have been mainly focused on growing the larger private sector employers in the region. However, this funding allows us to develop this activity to identify and support high growth SMEs - a key element of the local economy.

"This programme builds on the very successful partnership working between the four investment teams across South Yorkshire. Over the last three years, this partnership supported the creation of over 4,000 new jobs and over £250 million of private sector investment."

Recommended reading: Creative And Digital Industries In Rotherham

The Sector Growth Programme will leverage the maximum potential of existing regional assets including the Advanced Manufacturing Park, Sheffield Digital Campus, Barnsley Digital Media Centre and Robin Hood Airport Doncaster-Sheffield.

In Rotherham, experts at RiDO supported Tata Steel Europe (then Corus) with their restructure and helped engineering company, MTL Group, to relocate to a 300,000 sq ft advanced manufacturing facility in Rotherham.

They also supported a number of Advanced Manufacturing & Materials (AMM) companies move to the Advanced Manufacturing Park including Xeros, Struers, EoSemi and Exova.

Rotherham Investment and Development Office

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News: £4.9m to help link people to jobs in South Yorkshire

A project to create low-carbon ways of linking people to jobs and training in South Yorkshire has secured £4.9m from the government.

The South Yorkshire Integrated Transport Authority's key component bid for "A sustainable journey to work in South Yorkshire" project has secured the funding from the Department for Transport's Local Sustainable Travel Fund.

The project has the twin objectives of supporting the local economy and facilitating economic development, and of reducing carbon emissions. It is designed to revolutionise the way people get to work, and their attitudes towards how they choose to travel.

The project includes an enhanced Wheels to Work scheme offering bike, scooter or electric scooters to those most isolated. Cycle packages will include infrastructure, facilities, training, education and marketing. Bus services will be improved such as a new service between Grimethorpe and Wombwell. A targeted programme of marketing, education, engagement and travel planning will aim to change people's behaviour towards travel.

Investment will initially focus on those communities and corridors where the need for sustainable travel options is the highest. These include Rotherham town centre, Maltby and the Dearne.

South Yorkshire ITA website

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