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Nottinghamshire Rates Retention Scheme: Pooling Proposal 1. Pool title or description Nottinghamshire County Pool – all local authorities in Nottinghamshire (excluding Nottingham City Council, Nottinghamshire Fire Authority and Nottinghamshire Police Authority) 2. Lead Contact for pool; Paul Simpson Director of Finance & Procurement Nottinghamshire County Council County Hall West Bridgford, Nottingham, NG2 7QP 01159 773441 [email protected] 3. Local authorities included in pool: Nottinghamshire County Council, Ashfield District Council, Mansfield District Council, Gedling Borough Council, Bassetlaw District Council, Broxtowe Borough Council, Newark & Sherwood District Council and Rushcliffe Borough Council. 4. Counties and / or Local Enterprise Partnership(s) pool covers: The pooling area covers Nottinghamshire County, being the two-tier area comprising the County Council and the District Councils of Ashfield, Bassetlaw, Broxtowe, Gedling, Mansfield, Newark & Sherwood and Rushcliffe. At this time, the pool excludes Nottingham City Council and the Nottinghamshire Police and Fire authorities. The pooling area reflects longstanding relationships and service integration between the County and District levels and in part, relationships with the D2N2 Local Enterprise Partnership (LEP). 5. What is the aim / rationale for the pool? Please briefly describe: As referenced above, the pool builds on the already strong and well-established service relationships, with the overall aim of growing the local economy. Specifically, opportunities will be exploited to enhance the pool through links to wider funding sources such as the D2N2 LEP’s Growing Places Funding and potentially, European Funding where that exists. This will allow the partners to prioritise activity that increases the competitiveness of the area and stimulates private sector economic growth. It will also allow for the planning of economic growth across the functional economic area covered by the pool rather than being constricted by local authority administrative boundaries. Furthermore, the financial benefits of any business growth will be shared by the authorities included in the pool. We are also interested in collectively exploring a single investment approach, aligned with proposals currently in development for wider investment funds across the City and County. 1 6. Does the pool support the area’s growth priorities (including Local Enterprise Partnership strategy and priorities)? If so, briefly describe how: The respective strategies of the local authorities at District and County levels prioritise the development of the local economies. The proposed pool will offer the opportunity to build a critical mass to the funding required for critical economic investment and afford the Councils to work collectively in partnership with the private sector to prioritise economic development activity. The County Council is currently facilitating the development of a Nottinghamshire Growth Plan, which in conjunction with individual growth plans of District Councils, has been openly welcomed by partners and notably the private sector with its overt focus on promoting growth. At the time of developing this Pooling Proposal, the Nottinghamshire Growth Plan is the subject of formal consultation with 3 inter-related themes as follows: • Competitive Business Growth • Connectivity • Aspiration and Talent The Growth Plan is designed to bring a strategic approach to our collective economic development ambitions and guide the deployment of our resources. The Pooling Proposal will sit within this context and potentially alongside other external funding and creative financial mechanisms (to be explored) could create the potential to resource activity under the themes, such as the unlocking of stalled sites and essential infrastructure developments alongside investment in new, growing and expanding businesses. The partners’ ambitions are aligned with the D2N2 LEP’s adopted Strategic Priorities and Areas of Economic Focus. Synergies are facilitated by the County Council’s role as a D2N2 LEP Board member and through the support of the Councils in delivering the LEP’s strategy. The D2N2 LEP has already explored pooling arrangements regarding the retention of business rates growth through the Enterprise Zone across the relevant authorities. Further, the re-payments via the Growing Places Fund allocations will be the subject of re-investment within the local economy. The proposed pooling of business rates offers opportunities to “match” the LEP resources to ensure key projects maximising economic growth are brought forward quickly and effectively. 7. Is there a pooling agreement setting out governance structures for management of the pool, decision making structures, how investment decisions will be made, and how the pool will handle dissolution? Please enclose a copy of the pooling agreement. Yes – our proposed pooling agreement is attached at Appendix 1. It is envisaged that rather than establish new and separate governance arrangements for the administration of the Nottinghamshire pool, the member authorities will utilise existing governance arrangements, namely the Leaders and Chief Executives meetings. These are held regularly to provide an opportunity for the member authorities to: • discuss issues of common interest, • promote partnership working, • jointly promote Nottinghamshire as a place to live, work and visit, and 2 • explore opportunities to share resources as a means of promoting economic growth and to continue to provide high quality public services to Nottinghamshire taxpayers. Furthermore, the Chief Finance Officers (S151 Officers) of all the authorities also meet monthly, again to discuss relevant issues. It is therefore proposed that the Lead Authority (Nottinghamshire County Council) will provide regular updates/reports to the CFO’s, not only on the operation of the pool and the governance arrangements in terms of membership, dissolution etc, but more importantly the comparison of expected to actual levels of resources generated. This would then form the basis on which opportunities to utilise resources generated from the pool in the form of the Net Retained Levy, could be identified and constructed, in accordance with the priorities set out in the Nottinghamshire Growth Plan. It is envisaged that this would give rise to business cases that would identify investment opportunities across the County, which would include: • rationale for investment • potential risks/rewards • economic/social/environmental benefits These business cases would need appropriate officer input to confirm robustness, due diligence etc, to then be presented for agreement by Leaders/Chief Executives/LEP. These proposals would ensure that not only are the financial implications of the Pool fully understood by all Members, but would also embed and strengthen partnership working across Nottinghamshire and the wider LEP, and would facilitate resources being targeted on shared economic priorities. Any governance issues pertinent to individual authorities would be managed within existing member authority governance arrangements e.g. through formal decision making bodies such as Full Council/Cabinet/Finance Committee or through appropriate Officer/Member delegated powers. Day to day issues will be dealt with through normal communication routes i.e. email/telephone. 8. Has the pooling agreement been signed off by the Chief Executive and Section 151 Officer for each local authority within the pool? Please enclosed signed confirmation from each authority. The relevant signatures from each authority’s Chief Executive and S151 Officer are included within the Governance proposal. 9. Is there a lead authority that has been agreed by the pool? If so, which? Please enclose confirmation from the Section 151 Officer for that authority that it is happy to act as lead authority, and how it plans to manage the pooled resources it holds. All authorities have agreed that Nottinghamshire County Council will act as the lead authority. The Section 151 Officer (Paul Simpson) has signed at Appendix 2 to agree this. The proposed approach to the management of the pooled funds is set out in Appendix 1. 3 10. Please briefly set out how the pool will provide transparency to its working and decision-making. The Memorandum of Understanding between the 7 authorities (Appendix 1) states that the pool will have as a key principle, an approach of openness and transparency. Regular information on the operation of the pool will be shared with all pool Members. As set out in Section 7, existing governance arrangements e.g. Leaders and Chief Executive Meetings will be used to avoid the need for separate governance arrangements to be established. 4 Appendix 1 Nottinghamshire Business Rate Pool Memorandum of Understanding This Memorandum of Understanding is made between Nottinghamshire County Council, Ashfield District Council, Mansfield District Council, Bassetlaw District Council, Newark and Sherwood District Council, Gedling Borough Council and Broxtowe Borough Council (together referred to as ‘Pool Members’). 1. Purpose 1.1. It is the intention of the Pool Members to improve the well-being of the communities we serve. By working together we can retain a greater proportion of any business rate growth within the Pool area, providing opportunities to promote further economic growth as well as building financial resilience. 1.2. It is the purpose of this Memorandum of Understanding to act as a Statement of Intent that will support the realisation of
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