The LEP is running a range of programmes aimed at enhancing local economic prosperity and wellbeing; the two scenarios are examined presented below describe the local economy in three years' time is examined under two scenarios, one without the initiative (BAU) and one including the initiative.
The LEP is seeking to articulate and demonstrate to its stakeholders the difference its activities make to the City Region.
The LEP also wants to provide Central Government with a more holistic view of the total impact of the investment so that it can more easily and readily relate benefits to each Departmental agenda (e.g. jobs created, health benefits, increased tax take, welfare improvements, benefits reductions and less intense environmental impacts).
In this example, the TIMM framework is used to value not only the financial performance of the LEP, but also the economic, tax, environmental and social implications of the additional funding. The TIMM wheel shows the relative size of the impacts and any tradeoffs. The inner circle shows the financial performance of the LEP programme over the three years. Each bar around the circle shows the value of the programme impacts. These are positive (green) or negative (red). Because TIMM puts a monetary value on each impact they can be compared directly and even aggregated. All values are stated as Net Present Values (NPV).
TIMM identifies impacts using an Impact Pathway approach, and builds on the concepts in the Green Book for Government Appraisal using a range of market and non-market valuation methodologies.
In this hypothetical example, in the absence of TIMM thinking, the LEP might have struggled to articulate its wider impacts and focussed on collating information on only the direct economic impact of its investments, creating a relatively narrow picture of its true impact. Instead, TIMM provides a framework which can be tailored to local circumstances and allows impacts to be monetised for easy comparison and aggregation across different impact areas.
Benefits of the TIMM approach to local decision makers include providing: