Public Document Pack

County Offices Newland Lincoln LN1 1YL

19 February 2018

Environment and Economy Scrutiny Committee

A meeting of the Environment and Economy Scrutiny Committee will be held on Tuesday, 27 February 2018 at 10.00 am in Committee Room One, County Offices, Newland, Lincoln, LN1 1YL for the transaction of the business set out on the attached Agenda.

Yours sincerely

Tony McArdle Chief Executive

Membership of the Environment and Economy Scrutiny Committee (11 Members of the Council)

Councillors T Bridges (Chairman), B M Dobson (Vice-Chairman), B Adams, Mrs A M Austin, G E Cullen, M A Griggs, R P H Reid, S R Kirk, Mrs E J Sneath, C L Strange and Dr M E Thompson

ENVIRONMENT AND ECONOMY SCRUTINY COMMITTEE AGENDA TUESDAY, 27 FEBRUARY 2018

Item Title Pages

1 Apologies for Absence/Replacement Councillors

2 Declarations of Councillors Interests'

3 Minutes of the meeting held on 16 January 2018 5 - 12

4 Announcements by the Chairman, Executive Councillors and Lead Officers

5 Environment and Economy Quarter 3 Performance Measures 13 - 44 (1 October to 31 December 2017) (To consider a report by Justin Brown (Commissioner for Economic Growth), which describes progress against the indicators in the council business plan)

6 Environmental Services Property Portfolio 45 - 54 (To receive a report by Chris Miller (Team Leader for Countryside Services), which invites the Committee to consider individual recommendations for the various types of property in the Environmental Services portfolio)

7 Hotel Strategy 55 - 62 (To receive a report by Mary Powell (Tourism Manager), which describes the work that Lincolnshire County Council and the Greater Lincolnshire Local Enterprise Partnership have done to understand what should be done to attract more hotels to the county)

8 European Regional Development Fund (ERDF) 63 - 68 (To receive a report by Justin Brown (Commissioner for Economic Growth), which proposes that Lincolnshire County Council will make two bids for European Regional Development funding – 1) to extend the Business Lincolnshire growth hub; and 2) attract funding towards the Saltfleet to Gibraltar Point beach nourishment scheme)

9 Greater Lincolnshire Local Enterprise Partnership - 69 - 88 Accountable Body Progress Report To receive a report by Justin Brown (Commissioner for Economic Growth), which provides an update from the Accountable Body on the progress of the Single Local Growth Fund operated on behalf of Greater Lincolnshire Local Enterprise Partnership) 10 Anglian Water's Draft Water Resources Management Plan Verbal (To receive a presentation from David Hickman (Growth and Report Environment Commissioner), which invites the Committee to consider Anglian Water's Draft Water Resources Management Plan consultation and provide an opportunity for direct member input)

11 Peppermint Park - Delivery of the Food Enterprise Zone 89 - 90 (To receive a report by Simon Wright (Principal Officer Regeneration), which invites the Committee to consider a report on the Peppermint Park - Food Enterprise Zone which is due to be considered by the Executive Councillor for Economy and Place on 2 March 2018. The views of the Committee will be reported to the Executive Councillor as part of his consideration of this item. NOTE: Appendix 1 to the report has been marked 'to follow')

12 Environment and Economy Scrutiny Committee Work 91 - 100 Programme (To receive a report by Daniel Steel (Scrutiny Officer), which enables the Committee to consider and comment on the content of its work programme for the coming year)

Democratic Services Officer Contact Details

Name: Cheryl Hall

Direct Dial 01522 552113

E Mail Address [email protected]

Please note: for more information about any of the following please contact the Democratic Services Officer responsible for servicing this meeting

 Business of the meeting  Any special arrangements  Copies of reports

Contact details set out above.

All papers for council meetings are available on: www.lincolnshire.gov.uk/committeerecords Agenda Item 3 1

ENVIRONMENT AND ECONOMY SCRUTINY COMMITTEE 16 JANUARY 2018

PRESENT: COUNCILLOR T BRIDGES (CHAIRMAN)

Councillors B M Dobson (Vice-Chairman), B Adams, Mrs A M Austin, Mrs J E Killey, S R Kirk, R P H Reid, Mrs E J Sneath, C L Strange and Dr M E Thompson

Councillor M J Storer attended the meeting as an observer

Officers in attendance:-

Steve Blagg (Democratic Services Officer), Justin Brown (Commissioner for Economic Growth), Ruth Carver (Commissioning Manager (LEP)), Michelle Grady (Head of Finance (Communities)), Andy Gutherson (County Commissioner for Economy and Place), David Hickman (Growth & Environment Commissioner), Stephen Jack (Lincolnshire Wolds Countryside Service Manager) and Daniel Steel (Scrutiny Officer)

46 APOLOGIES FOR ABSENCE/REPLACEMENT COUNCILLORS

The Chief Executive reported that under the Local Government (Committee and Political Groups) Regulations 1990, he had appointed Councillor Mrs J E Killey to the Committee, place of Councillor G E Cullen, for this meeting only.

47 DECLARATION OF COUNCILLORS' INTERESTS

No declarations of interest were made at this stage of the meeting.

48 MINUTES OF THE MEETING OF THE ENVIRONMENT AND ECONOMIC DEVELOPMENT SCRUTINY COMMITTEE HELD ON 28 NOVEMBER 2017

RESOLVED

That the minutes of the previous meeting held on 28 November 2017, be agreed as a correct record subject to "Long Leys Road" being replaced by "the Transfer Centre, North Hykeham", in bullet point 2. (Minute 41).

49 ANNOUNCEMENTS BY THE CHAIRMAN, EXECUTIVE COUNCILLORS AND LEAD OFFICERS

The Executive Support Councillor for Economy and Place made the following announcements:-

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 He had attended the Lincolnshire NFU AGM and had discussed farming and trade post Brexit. He had expressed the Council's support for farmers and working with central Government to ensure farmers got a good deal after Brexit.  He stated that later this week was the Lincolnshire Business Expo. This was a major event and a new grant scheme would be launched (Midlands Engine Investment Finance). He stated that the Committee had spoken regularly about the importance of providing finance for growing businesses so it was good news that the Council was a partner in this fund.  He stated that on 31 January 2018 he would be opening an event to tell local businesses about supply chain opportunities that would arise from the Tritton Knoll project. The opportunities ranged from high technology engineering through to things like onsite catering, there was something for everyone.

50 COUNCIL BUDGET 2018/19

The Committee received a report on the Council Budget 2018/19 and in particular its implications for the following commissioning strategies – Protecting and Sustaining the Environment and Sustaining and Growing Business and the Economy. The budget proposals were now open to consultation and any comments made by the Committee would be passed to the Executive for consideration at its meeting on 6 February 2018.

Officers stated that since the despatch of the report the Secretary of State in the provisional Local Government Finance Settlement had announced the referendum threshold for the general Council Tax element would increase for both 2018/19 and 2019/20 to 3% and that the threshold for Adult Care precept remained unchanged. The Council was consulting on various proposals as detailed in the consultation process which was available for viewing on the Council's website. Officers stated that the Council had also been successful in being selected to participate in the Government's Business Rate pilot which would have an impact on the budget.

Comments made by the Committee and the responses of officers included:-

 There was the possibility of disparity between local authority areas if the Business Rate pilot proved successful. Officers stated that the pilot project was only for one year and the Government was carrying out consultations on the project.  The need to increase the budget for economic development, especially skills and growth. Officers stated that, in addition to funding by the Council, economic development attracted external grants but that the process was time consuming.  Officers stated that the Brexit Working Group was examining the replacement of EU funding following Brexit.  The waste budget was of concern in the long term especially as the Energy from Waste plant was reaching capacity, issues of dealing with food waste and the decision made by China to refuse to take any more of the UK's plastic waste. Officers stated that they were aware of the various issues affecting the

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waste budget and added that the Joint Waste Management Strategy was due to be considered by this Committee in the near future.

RESOLVED

That the report be noted and that the comments made by the Committee in the consultation process be passed to the Executive for its meeting on 6 February 2018.

51 REVISED LINCOLNSHIRE WOLDS AONB MANAGEMENT PLAN 2018- 2023

(Councillor C L Strange requested that a note should be made in the minutes that he was a member of the Wolds' Joint Advisory Committee (JAC)).

The Committee received a report on the revised Lincolnshire Wolds Area of Outstanding Natural Beauty (AONB) Management Plan 2018/23 which had been prepared by the AONB Partnership (JAC) for public consultation. Officers stated that the Plan tried to strike a balance between economic development and environmental and heritage preservation in the area. The views of the Committee were sought on the Plan.

Comments made by the Committee and the responses of officers included:-

 The "light" touch approach to prepare the Plan was welcomed.  The last five years of the previous Plan had brought benefits to the AONB.  The Wolds was an excellent area to visit with an active working landscape. It was important to improve opportunities for tourism because there was a shortage of quality accommodation. Officers agreed to provide a list of Bed and Breakfast accommodation in the AONB to Members and a link to the website which had these details.  There were some concerns regarding the levels of consistency on planning decisions across the AONB and there was a recommendation for increased collaboration between the relevant local authorities to help develop a joint approach.  There was a need to attract more tourists to the AONB. In this respect officers stated that some concerns had been raised about the AONB's boundary with some supporting an expansion but others supporting the retention of the existing boundary. Officers clarified that the AONB Partnership currently recognised that there were known anomalies, with regular calls to review and extend the northern and southern boundaries, for example, Winceby Civil War Battlefield site and Snipe Dales Country Park were both within the Wolds but lied south of the AONB. Any future review would be a significant and lengthy undertaking and would require the full support of the relevant local authorities and AONB Partnership with Natural England coordinating the required legal procedures.  The Committee noted there were 41 AONBs in the UK and that they were considered as important as the National Parks but the latter received more resources from the Government. There was an acknowledgement that the Plan sought to promote and enhance the nationally important special qualities of the

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area whilst seeking to secure future sustainable development for a living and working landscape.

RESOLVED

(a) That the draft AONB Management Plan be endorsed with an acknowledgement that there was still some further changes to take account of additional observations and recommendations as part of the ongoing public consultation.

(b) That the comments made by the Committee and the responses of officers be noted.

(c) That it be noted that the final Plan would need to be validated by Natural England, prior to its formal adoption by all relevant local planning authorities – including Lincolnshire County Council, East Lindsey and West Lindsey District Councils and North East Lincolnshire Council.

52 PRIORITIES FOR NATIONAL INFRASTRUCTURE - RESPONSE TO NATIONAL INFRASTRUCTURE ASSESSMENT

The Committee received a report on the Council's response to the National Infrastructure Assessment which would underpin national policy towards economic infrastructure investment for the next thirty years. Officers stated that because the closing date for the Council's response it had been necessary to prepare a response before this meeting which was tabled. Officers stated that there would be further opportunities to respond to the Assessment.

Comments made by the Committee and the responses of officers included:-

 A balance needed to be sought between the cost of installing flood defences and economic development. Officers stated that there was a need for any final Assessment to recognise that Lincolnshire had the highest flood risk in the country and therefore there was a need for flood defences to be installed to encourage economic development. Officers stated that it would be interesting to see if this was reflected in the final document.  Some waste disposal authorities had set up retail outlets on waste sites to sell recyclable waste.  Food which in the past had been thrown away was now being donated by supermarkets to foodbanks.  Were there any benefits of separating food waste? Officers stated that there was a pilot project operating in a South Kesteven District Council electoral Ward. The project would ascertain if separating food waste was cost effective because there was a lot of dry recycled waste contaminated by food waste. The project had been promoted by the Lincolnshire Waste Partnership and would run for 12 months with the results reported to the Lincolnshire Waste Partnership. Should the project proved successful then the scheme would be extended across the county.

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 Was any income generated from the pilot project? Officers stated that no income generated from the pilot project. However, in the long term how waste was collected and how waste was used to improve the income generated for all local authorities in the county would be explored.  Broadband connectivity was a problem in many parts of Lincolnshire and Members considered that this matter should be brought to the Executive's attention. Officers agreed with the Members' comments and agreed to report on this matter to a future meeting of the Committee.  Some residents had told Councillors that BT had reduced its broadband service in some areas and there was inequality of service provision between rural and urban areas.  It was important that there was a detailed understanding of the opportunities associated with, and the potential problems with, Smart Grid technologies because Smart Grids would have a significant influence on economic growth in the future.

RESOLVED

(a) That the comments made by the Committee and the responses of officers, be noted.

(b) That the draft response tabled in connection with the National Infrastructure Assessment, be supported.

53 STRATEGIES TO ATTRACT VISITORS

The Committee received a report in connection with the detailed analysis of the intelligence that was held on visitors to Lincolnshire and on current strategies to attract visitors.

Comments made by the Committee and the responses of officers included:-

 There was a shortage of quality hotel accommodation especially in the Wolds. Officers stated that there was a shortage of hotel accommodation in the Wolds AONB. However, there was more self-catering accommodation.  Officers stated that visiting friends and relatives in Lincolnshire was popular especially with those people who had relocated from Lincolnshire. Heritage days were also a good way of attracting people to the county.  There were still problems of internet access in Lincolnshire.  Attracting people to Lincolnshire was important for the local economy and more investment was required in this area. In this respect, there was a need for the Council to work with its partners.  More publicity needed to be given to antique markets, RAF heritage sites and the quality of the food in Lincolnshire.  Public transport services were provided from the Port of Hull to York but not Lincoln. Officers stated that they were talking to travel agents about this matter and that the opportunity to visit RAF heritage sites was a good idea. Officers agreed that Lincolnshire had good food to offer visitors and agreed to email to

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Members details of the tourism event being arranged by P&O ferries in February 2018.  The cost and availability of car parking in Lincoln especially for day visitors was an issue. Lincoln had a shortage of parking for coaches compared to York.  Officers agreed to circulate the annual impact summary of the council's Travel Trade PR Consultant when it became available.

RESOLVED

(a) That the comments by the Committee and the various actions identified be noted.

(b) That the work of the Council in promoting the county to the travel media, be endorsed.

(c) That the breadth of information that is available to assist in the development of tourism strategies, be noted.

(d) That officers work with the Greater Lincolnshire Local Enterprise Partnership and other partners to make this information available to tourism businesses to assist them with their planning.

54 LINCOLNSHIRE'S GROWTH HUB

The Committee received a report in connection with an evaluation of the Lincolnshire Growth Hub's services because the current business support programmes were coming to an end and to identify any gaps before the Council made new bids for funding. The evaluation showed that the Hub operated effectively but identified several gaps in provision. Businesses' priorities were detailed in the report.

Comments made by the Committee and the responses of officers included:-

 It was noted that businesses had not mentioned broadband connectivity issues as a constraint to their growth. Officers stated that this was likely to be identified as a problem in current and future surveys.  What action was the Council taking to help businesses to prosper? Officers stated that there were a number of ways the Council could facilitate businesses to prosper, all as part of the Growth Hub programme, and promoting the growth hub to businesses was achieved by emailing and posting information to businesses, placing adverts in the press and publications and using social media.  The use of business cards had proved successful in East Lindsey.  Officers stated that "word of mouth" was important in helping to disseminate information and leaflets were available for Members to distribute as Members carried out a lot of networking.

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RESOLVED

(a) That the outcomes and customer satisfaction which the Business Hub is delivering be noted.

(b) That the gaps identified in current provisions be noted and that officers develop approaches for meeting these business needs including appropriate funding bids.

(c) That Members through their networking be asked to promote the Business Hub website www.businesslincolnshire.com to businesses in Lincolnshire.

55 GREATER LINCOLNSHIRE LOCAL INDUSTRIAL STRATEGY

The Committee received a report in connection with the Government's Industrial Strategy. Officers stated that the Government was concerned about how to encourage economic growth and improve communications between higher education and industry. The UK was good at research but poor in developing this research down to the manufacturing level and therefore the Strategy was intended to help industry and commerce in this respect and to grow "places". The Government's proposed Industrial Strategy was tabled.

Comments made by the Committee and the responses of officers included:-

 Communication with businesses and commerce about the Strategy might be difficult and a "bottom up" approach was preferable instead of something which was imposed. Officers agreed that the communication process about the Strategy was important and stated that Boards had been established for each area of the strategy. Officers stated that the process had reached a stage where it was possible to inform business what was available and the improvements which could be made.  The effects of Brexit were unknown and therefore planning for different scenarios was important.  The role of MPs in the Strategy was noted but could lead to them just pursing the Government's agenda. Officers stated that MPs were only a small part of the consultation process.  The provision of power resources needed to be a priority. Officers agreed adding that the provision of utilities was a priority.

RESOLVED

(a) That the comments made by the Committee and the responses of officers be noted.

(b) That the work of the Greater Lincolnshire Local Enterprise Partnership (LEP) in producing a Local Industrial Strategy, with a particular emphasis on the LEP's engagement process and on raising the profile of Lincolnshire's priorities at a regional and national level, be endorsed.

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(c) That the Committee receive regular reports on the process of the Strategy and use those reports to offer advice/support to the LEP during the preparation of the Strategy.

56 ENVIRONMENT AND ECONOMY SCRUTINY COMMITTEE WORK PROGRAMME

The Committee received a report on its Work Programme.

The Committee agreed that following concern expressed by Members about broadband connectivity in the county, at today's meeting, it was agreed to receive a report on this matter at a future meeting.

RESOLVED

That the Work Programme be noted subject to the need to programme the following:-

 Lincolnshire Waste Management Strategy  Lincolnshire's Local Industrial Strategy  Broadband Connectivity

The meeting closed at 1.10 pm.

Page 12 Agenda Item 5

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Environment and Economy Quarter 3 Performance Subject: Measures (1 October to 31 December 2017) KeyDecision decision? Reference: Summary: This report describes progress against the indicators in the council business plan. It shows that 4 indicators have been met fully, that there has been measured progress against three indicators, and that two indicators have not been met.

The report also has an attachment of the latest quarterly economic survey; this provides a useful summary of the local economy and therefore the context of how the work of Environment and Economy is delivered.

Actions Required:

Members of the Environment and Economy Scrutiny Committee are invited to: 1) Consider the performance against the indicators and highlight any recommendations, changes or actions for consideration; and, 2) Seek assurance from senior managers on how they will maintain and improve performance against the indicators.

1. Background

The Lincolnshire County Council (LCC) business plan has 9 indicators for Environment and Economy that are reported quarterly. Progress is good; 4 indicators have been met, there has been measured progress against three, and two have not been met.

The two that have not been met relate to the Joint Municipal Waste Management Strategy, which is now out of date, and is currently being fully revised. The draft new strategy will be considered by the Environment and Economic scrutiny committee in due course.

54 complaints have been received, nearly all of which relate to one single issue.

Page 13 The report also has an attachment of the Quarterly Economic Survey. It is useful for members to use the quarterly economic survey as a backcloth against which Environment and Economy activity is delivered. In particular, members should note that the pressure on prices has eased slightly, but that there are still more than 30% of businesses surveyed who expect their prices to increase this year. LCC's work both on economic development, and on waste and on flood prevention may have a positive impact on those price pressures.

2. Conclusion

Performance continues to be good against the most relevant measures. Where performance is not meeting the indicators it is because the indicators are outdated, and work is in progress to replace these indicators.

3. Consultation

a) Have Risks and Impact Analysis been carried out? N/A

b) Risks and Impact Analysis

N/A

4. Appendices

These are listed below and attached at the back of the report Appendix A GLLEP Quarterly Business briefing Appendix B Q3 Performance Indicators Appendix C Q3 Customer Complaints information

5. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Justin Brown, who can be contacted on 01522 550630 or [email protected]

Page 14 > DOMESTIC SALES AND ORDERS DIP BUT REMAIN POSITIVE

> OVERSEAS SALES STAGNATE WITH ORDERS CONTRACTING

> BUSINESSES RETAIN CONFIDENCE LEVELS AS WE MOVE INTO 2018

> PRESSURE ON PRICES EASES SLIGHTLY

> JUMP IN RECRUITMENT ACTIVITY WITH FUTURE INTENTIONS TO RECRUIT STRONG Page 15 QUARTERLY BRIEFING Q4. 2017

On the face of it, the latest Q4 results from the QES EU) set to experience surges provide a slightly disappointing end to 2017, particularly in growth. Yet there is still an undercurrent of uncertainty, in light of Q3’s strong performance. However, there even at this level, with concerns are still many positives that can be drawn from around the cessation of these results with strong performance in UK sales monetary programs which and orders maintained, stable investment plans, and have kept some economies continued confidence around recruitment and business afloat post the financial crash, historically low global interest performance into 2018. rates which can only go up, and If 2017 was anything to go by, are set to start in earnest and the potential for growth factors then the only thing we can these will likely dominate to push up inflation further. predict about 2018 is that it headlines throughout the year. will be unpredictable, certainly At the global level, then many politically, which will inevitably are optimistic for economic mean a certain amount of prospects throughout the year economic uncertainty. Trade with all the main economies talks with the European Union (America, China, India, and the

2020 2020 UK GDP GROWTH (Change in GDP compared1717 to previous0.50.5 quarter)% % 1717 0.30.3% % Source: Office for National Statistics

20 20 2020 2020 20 20 17 0.5% 17 0.3% 1717 0.30.3% % 1717 0.40.4% % 17 0.5% 17 0.3%

UK ECONOMIC GROWTH (GDP) FORECAST 20 Source:20 HM Treasury, Forecasts for 20 20 the UK Economy: a comparison of 17 independent17 forecasts, No. 368 1.7 1.4 17 17 0.3% January 20180.4% 2017 2018 0.3% 0.4% Page 16 As we now move into 2018, it gives us a chance to look back at the survey results from throughout 2017 and consider how the Services and Manufacturing elements of the economy faired.

Businesses operating in the for Manufacturing businesses, Office for National Statistics ‘Service’ sector make up the meaning that Manufacturing (ONS) has recently reported majority of respondents to enters 2018 on a high. This is that in the three months to the survey, in line with what also backed by national level October 2017, services output we would expect given that findings from the most recent increased by 1.3% compared Services makes up around EEF survey which reported with the three months ending three quarters of economic on Manufacturing businesses October 2016, which on the activity nationally. So, whilst being positive with regards to face of it sounds strong but is at the local economy level we the their prospects in the year actually at its lowest since the can see positive performance ahead (though tempered by three months ending October across many of the indicators the fatc that there they are also 2013. This is a concern both we report against, if we go reporting a positive balance nationally and locally, given below this then we can see of manufacturing businesses the size and importance of that Service sector businesses agreeing with the statement the sector when it comes generally had a good start to that ‘There are more risks than to economic growth, and is the year but performance has opportunities for my company something that we will be dropped away over time. The in the year ahead’). Turning our monitoring closely throughout opposite of this can be seen attention back to Services, the 2018.

UK SECTORAL DOMESTIC SALES GROWTH (Q4 2017 - % CHANGE ON AND ORDERS DIP PREVIOUS QUARTER) Source: Office for National Statistics BUT REMAIN POSITIVE 1.3% After five quarters of growth in a row, 0.6% 0.6% this quarter sees the balance for UK sales fall back slightly. Advanced sales and orders have also contracted this quarter but retain strong positions.

-0.4%

-1.0% AGRICULTURE PRODUCTION MANUFACTURING PART OF PRODUCTION CONSTRUCTION SERVICES

Page 17 OVERSEAS SALES EXCHANGE RATES STAGNATE DEC 16 WITH ORDERS £1= $1.23 €1.17 CONTRACTING NOV 17 Overseas sales levels are unchanged with no signs of growth, whilst overseas orders have contracted $1.35 €1.13 further this quarter, with both Services and Manufacturing driving this development. DEC 17 $1.39 €1.14

Source: x-rates.com

with both Services and JUMP IN RECRUITMENT Manufacturing elements of the economy increasing ACTIVITY WITH their workforces. FUTURE INTENTIONS TO RECRUIT STRONG

EMPLOYMENT RATE UNEMPLOYMENT RATE (AGED 16-64) (AGED 16-64) Source: Annual Population Survey, Source: Annual Population Survey, Office for National Statistics Office for National Statistics OCT 16  SEP 17 OCT 16  SEP 17 GREATER UK GREATER UK LINCOLNSHIRE LINCOLNSHIRE

73.7% 74.4% 4.6% 4.6% Page 18 The financial markets were right to indicate a high INFLATION probability of an interest rate rise when the Bank of Source: Office for National Statistics England’s Monetary Policy Committee (MPC) met on the 2nd November 2017, with the base rate increased CONSUMER PRICE INDEX from 0.25 per cent to 0.5 per cent, the first increase in (CPI) 10 years and a return to the level it was at prior to the vote to leave the EU. For a while now the rate of to raise interest rates at least inflation has been well above twice over the next three that of the Bank of England’s years, they do have concerns target (2 per cent) and clearly regarding personal debt levels 2.8% 2.7% the MPC felt now was the right and the ability of consumers to time to act, which in itself service these debts at higher NOV DEC means that their confidence rates of interest. The Bank of in the ability of the economy England’s own research has to handle an interest rate rise shown that it is those with the PRODUCER PRICE INDEX has improved. Since that point, highest debt to income ratios (PPI) the Consumer Price Index has that are less likely to consider fallen further, from 2.8 per cent the impacts of future interest to 2.7 per cent, but the pressure rate rises. This is a particular on producers to raise prices cause for concern, especially if remains with the Producer we consider that the number of Price Index increasing back up, county court judgments (CCJs) from 3.1 per cent to 3.3 per against consumers in England cent, over the same period. hit a record high in 2016, with 3.1% 3.4% However, and despite the numbers increasing every year Bank of England’s expectation since 2011. NOV DEC

The balance of businesses expecting to increase prices of their goods/services over the next PRESSURE three months has fallen from +38 to +32 this quarter, which follows falls in both Consumer O N P R I C E S and Producer Price Inflation rates during the quarter (though we note that the Producer Price Index subsequently rose from 3.1% to 3.3% in EASES December). SLIGHTLY

2016 2017 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Input Prices 16.6 19.9 19.3 16.8 15.3 12.1 9.9 6.4 8.2 8.3 5.0 7.3 4.9 Output Prices 2.9 3.6 3.7 3.7 3.6 3.6 3.3 3.3 3.4 3.3 2.9 3.1 3.3

Page 19 BUSINESSES RETAIN CONFIDENCE Bank of England interest rate LEVELS AS WE MOVE INTO 2018 0.50% Despite what looks like a challenging end to 2017, businesses have retained last quarters levels of confidence. In fact, and heading into 2018, business confidence is actually up slightly on last quarter with balances for future profitability and turnover both increasing.

HOUSEHOLD SPENDING Source: Office for National Statistics

Q3 2016 Q4 2016 Q1 2017

0.8% 0.3% 0.1%

0.2% 0.5%

Q2 2017 Q3 2017 www.ons.gov.uk/ons/rel/consumer-trends/consumer-trends/index.html Page 20 Lancaster House | 36 Orchard Street Lincoln | LN1 1XX

T: 01522 550540 E: [email protected]

GreaterLincsLEP WWW.GREATERLINCOLNSHIRELEP.CO.UK Page 21 This page is intentionally left blank 68

Businesses are supported to grow

Jobs created as a result of the Council's support Jobs created and safeguarded Number of jobs created and safeguarded as a result of the Council's support. A higher number of jobs created and safeguarded indicates a better performance.

Achieved

Jobs created and safeguarded

302 350 Jobs 300 Cumulative Actual as at December 2017 250 200 Jobs 150 100 151 50 0 Jobs Q1 Q2 Q3 Q4 Cumulative Target as at Cumulative total 96 281 302 December 2017 Jobs 96 185 21 Target 50 101 151 202

About the latest performance One of the main aims of economic development is to create and safeguard jobs. We do this by advising businesses, providing finance and premises for businesses, and signposting businesses to support that can help them to meet their growth plans. Our work in this regard is delivered through a strong partnership between LCC and Greater Lincolnshire Local Enterprise Partnership. As of Quarter 3, we have helped businesses to create and safeguard 302 jobs. This included 68 jobs that have been created through our support to foreign owned businesses in the county, 12 jobs being safeguarded by companies moving into our business centres, and 222 jobs being created by our support to businesses across Lincolnshire.

Page 23 Further details

Page 24 About the target The council commissions a series of programmes which help business leaders to grow their business. This includes the building of business sites and premises for selling or renting to businesses which are growing. We do this in order to create jobs in the county, and the jobs are counted in this target. The target for this measure will be reviewed for the 2018-2020 Council Business Plan. About the target range

No target range has been set for this measure.

About benchmarking

This measure is local to Lincolnshire and therefore is not benchmarked against any other area.

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Businesses are supported to grow

Jobs created as a result of the Council's support

Businesses supported by the Council

Number of businesses who receive direct support and advice from services the Council commission. A higher number of businesses supported by the Council indicates a better performance.

Achieved

Businesses supported by the Council 800 743 700 Businesses 600 Cumulative Actual as at 500 December 2017 400 Businesses 300 200 100 0 562 Q1 Q2 Q3 Q4 Cumulative total 213 544 743 Businesses Businesses 213 331 199 Cumulative Target as at Target 187 375 562 750 December 2017

About the latest performance In total 199 businesses have been supported in Quarter 3. This is broken down into: the Business Lincolnshire Growth Hub which has provided direct business support to 121 businesses. The focus during Oct-Dec has been to work more intensively with existing clients to help them fulfil their growth ambitions. Additionally 37 businesses were supported by the European LEADER programme which is counted against Lincolnshire County Council as the accountable body. The growth team have supported 41 foreign direct investment businesses.

Page 26 Further details

About the target The council commissions a series of programmes which help business leaders to grow their business. The businesses who receive support will grow, creating jobs and other opportunities (e.g. supply chain) and the number of businesses counted in this target. The target for this measure will be reviewed for the 2018-2020 Council Business Plan. About the target range

No target range has been set for this measure.

About benchmarking

This measure is local to Lincolnshire and therefore is not benchmarked against any other area.

Page 27 70

Businesses are supported to grow

Jobs created as a result of the Council's support

Qualifications achieved by adults

Number of qualifications achieved (Skills programmes, vocational training programmes, adult and community learning) through programmes supported by the council. A higher number of qualifications achieved indicates a better performance

Achieved

Qualifications achieved by adults 1,056 1200 Qualifications 1000 Cumulative Actual as at 800 December 2017 600 Qualifications 400 544 200 0 Qualifications Q1 Q2 Q3 Q4 Cumulative Target as at Cumulative total 70 801 1056 December 2017 Qualifications 70 731 255 Target 44 500 544 630

About the latest performance This indicator has been exceeded. Over the past 12 months there has been a greater level of flexibility with the adult learning budgets which has allowed the service to deliver training that both does and does not lead to qualifications depending upon what beneficiaries would like to do. The service estimated that beneficiaries would prefer to undertake training without qualifications. However, the service has promoted the benefit of training with qualifications to its beneficiaries and this has led to a higher than expected number of people decided to seek training with qualifications. This is a better outcome for the beneficiaries themselves.

Page 28 Further details

About the target The council commissions a series of training schemes which help individuals to gain skills. These training schemes are focused on the skills that employers need. Employers can understand an individual's skill level by the qualifications that they hold, hence the reason that we count the number of qualifications achieved. The target for this measure will be reviewed for the 2018-2020 Council Business Plan. About the target range

No target range has been set for this measure.

About benchmarking

This measure is local to Lincolnshire and therefore is not benchmarked against any other area.

Page 29 71

Businesses are supported to grow

Jobs created as a result of the Council's support

Amount of external funding attracted to Lincolnshire

Amount of external funding attracted to Lincolnshire (including Greater Lincolnshire Local Enterprise Partnership and European Union funding programmes) by the council. A higher amount of external funding indicates a better performance.

Achieved

Amount of external funding attracted to Lincolnshire 48,349,451 60,000,000

£ 50,000,000 Cumulative Actual as at December 2017 40,000,000 30,000,000 £ 20,000,000 33,750,000 10,000,000 0 Q1 Q2 Q3 Q4 £ Cumulative total 32,152,321 33,152,321 48,349,451 Cumulative Target as at £s 32,152,321 1,000,000 15,197,130 December 2017 Target 31,250,000 32,500,000 33,750,000 35,000,000

About the latest performance

During the last quarter we have given advice and information to several projects which have now been approved for funding. Whilst the exact figure that will be approved has yet to be determined (it could change due to the minutiae of funding rules) the general sense is that these projects will have attracted just under £15.2 million.

Page 30 Further details

About the target EU Growth Fund of £5 million – International/external projects contracted for European Regional Development Fund (ERDF), European Social Fund (ESF) and European Agricultural Fund for Rural Development (EAFRD). A bid for £30 million European Growth Deal Round III anticipated and will be awarded in 2017/2018.

About the target range

No target range has been set for this measure.

About benchmarking

This measure is local to Lincolnshire and therefore is not benchmarked against any other area.

Page 31 72

Businesses are supported to grow

Reduce the risk of flooding

Flooding incidents within a property

This measure is calculated on the basis of the number of formal investigations undertaken by the County Council under section 19 of the Flood and Water Management Act 2010 where the incident involves flooding within a property from any source, although under the Act the County Council only has a responsibility for local flood risk i.e. from surface water, groundwater or ordinary watercourses. Lincolnshire County Council has interpreted a flooding incident to be any in which one or more domestic properties are flooded internally. A smaller number of flooding incidents indicates a better performance.

Measured

1 Flooding incidents within a property 3.5 Incidents Quarter 3 December 2017 3 2.5

2 Incidents 1.5 2 1 Incidents 0.5 Quarter 2 September 2017 0 Q1 Q2 Q3 Q4 Incidents 3 2 1

About the latest performance

In Quarter 3 (October - December 2017), there was one flood event requiring investigation in accordance with S.19 of the Flood & Water Management Act. This involved surface runoff entering a single commercial property in Spalding following a period of persistent rain just after Christmas. In comparison, the same period in 2016 saw no incidents of flooding within a property.

Page 32 Further details

About the target

This measure is reported to provide context to the outcome reduce the risk of flooding. It is not appropriate to set a target for this measure.

About the target range

A target range is not applicable as this is a contextual measure.

About benchmarking This measure is local to Lincolnshire as each Local Flood Authority (Unitary and County Councils) defines a flood incident as they consider appropriate and therefore is not benchmarked against any other area.

Page 33 76

Businesses are supported to grow

Increase recycling Recycling at County Council owned Household Waste Recycling Centres The percentage of waste collected at LCC Owned HWRCs which was reused, recycled or composted. This measure excludes all sites which are not owned by Lincolnshire County Council as the Council has limited control and influence over what streams are recycled. Performance includes some estimates where actual figures are not yet available. Officially approved data is available four months after the end of the Quarter to which it applies. A higher percentage of recycling indicates a better performance.

Not achieved

Recycling at County Council owned Household Waste Recycling Centres 72.3 100 % 90 80 Quarter 3 December 2017 70 60 % 50 40 30 20 10 75 0 Q1 Q2 Q3 Q4 % Percentage 73.9 73.8 72.3 Target for Quarter 3 December Target 75 75 75 2017

About the latest performance The percentage of recycling at Household Waste Recycling Centres has decreased slightly in this quarter but is currently above the year end forecast of 72.0%. It is anticipated that this figure will decrease in Quarter 4 due to the decrease in composting because of weather changes and growing conditions. We are seeing an overall reduction in the HWRCs recycling rate; a contributing factor will be the processing of some materials has been moved down the waste hierarchy from recycling to recovery. The Environment Agency have concerns around some materials being stored which has reduced the available recycling outlets in Lincolnshire.

Page 34 Further details

About the target

The annual target of 75% represents a sustaining of our previous high performance.

About the target range

No target range has been set for this target. About benchmarking

Availability of data for other authorities is limited as this has never been an official National Indicator.

Page 35 77

Businesses are supported to grow

Increase recycling

Tonnage of recycling material collected at the kerbside The tonnage of recycling material collected at the kerbside depends on how much is presented by the public in kerbside recycling collections and on how much of that material has to be excluded due to it being non- recyclable. This measure excludes waste that has been 'rejected' so that we can see how much recyclable material was collected. Performance includes some estimates where actual figures are not yet available. Officially approved data is available four months after the end of the Quarter to which it applies. A higher tonnage of recycling material collected at the kerbside indicates a better performance.

Measured

Tonnage of recycling material collected at 37,541 the kerbside Tonnes 40,000 Quarter 3 December 2017 35,000 30,000 25,000 Tonnes 20,000 15,000 10,000 41,085 5,000 Tonnes 0 Q1 Q2 Q3 Q4 Quarter 3 December 2016 Cumulative total 12,734 26,176 37,541 Tonnes 12,734 13,442 11,365

About the latest performance

Our Waste Collection Authorities (WCAs) continue to collect a similar quantity in kerbside recycling collections. Unfortunately, around 25% of what our WCAs collect from kerbside recycling turns out to be non-recyclable. This contamination level needs to be addressed with the District councils as part of the Waste Strategy to ensure we have a resource which is acceptable to the processing contractors and they tender accordingly.

Page 36 Further details

About the target

This measure is included for context and so it is not appropriate to set a target for this measure.

About the target range

No target range has been set for this target.

About benchmarking As tonnage collected depends on the size of a Local Authority, comparisons with other councils is not meaningful.

Page 37 78

Businesses are supported to grow

Increase recycling

Household waste recycled

The percentage of waste collected by either the County or District Councils which was reused, recycled or composted. Performance includes some estimates where actual figures are not yet available. Officially approved data is available four months after the end of the Quarter to which it applies. A higher percentage of household waste recycled indicates a better performance.

Not achieved

Household waste recycled 100 47.5 90 % recycled 80 Quarter 3 December 2017 70 60 % recycled 50 40 30 20 10 55 0 Q1 Q2 Q3 Q4 % recycled Percentage 50.1 50.1 47.5 Target for Quarter 3 December Target 55 55 55 2017

About the latest performance The Kerbside collected waste recycling rate is 47.5% for quarters 1 to 3 of the 2017/18 reporting year. Figures are normally higher for the first 2 quarters of the year due to increased composting in the summer months. We are forecasting an overall decrease of household waste recycled; our year end forecast is 45.8% for the 2017/18 reporting year. This is compared with 46.7% in 2016/17. This is due to an increase in the reported level of contamination (non-recyclables) in the mixed dry recyclable material collected at the kerbside.

Page 38 Further details

About the target The annual target of 55% was set as a long-term aspiration in our Joint Municipal Waste Management Strategy (2008). About the target range Given the number of separate figures which go into this calculation, a target range of +/- 0.5 percentage points allows for small fluctuations to remain on target. About benchmarking National data is available for each Local Authority. However, given the delay in finalising official figures, this is usually only available for the previous year.

Page 39 79

Businesses are supported to grow

Increase recycling

Green waste composted

The tonnage of green waste collected by either the County or District Councils which was sent for composting. Performance includes some estimates where actual figures are not yet available. Officially approved data is available four months after the end of the Quarter to which it applies. A higher tonnage of green waste composted indicates a better performance.

Measured

Green waste composted

67,954 80,000 Tonnes 70,000 Quarter 3 December 2017 60,000 50,000 Tonnes 40,000 30,000 20,000 69,685 10,000 Tonnes 0 Quarter 3 December 2016 Q1 Q2 Q3 Q4 Cumulative total 26,437 53,294 67,954 Tonnes 26,437 26,857 14,660

About the latest performance

We are seeing a small reduction in composting compared to 2016/17, although this may simply be due to growing conditions this summer. West Lindsey District Council who have so far not charged for Kerbside green waste collections are now looking to implement their charging scheme. This could have an effect on the totals collected, however, this is only a contextual measure.

Page 40 Further details

About the target

No target has been set, as this is measured for reference purposes. The tonnage composted depends on how much green waste is presented to us by the public and external factors such as weather conditions.

About the target range

A target range is not applicable as this is a contextual measure.

About benchmarking

As tonnage of waste composted depends on the size of a Local Authority, comparisons with other councils is not meaningful.

Page 41 This page is intentionally left blank Customer Satisfaction Information Environment & Economy Scrutiny Committee Q3 Date range for report 1st October 2017 – 31st December 2017

LCC Overview of compliments

Overall Compliments The overall compliments received for Environment & Economy shows a decrease of 82% this Quarter, with 2 compliments being received compared to 11 received last Quarter.

Current Q2 Q1 Q4 Q3 Total number of compliments Q3 relating to Environment & Economy Scrutiny Committee 2 11 7 8 14

Environment & Economy Compliments Environment & Economy have received 2 compliments this Quarter. The compliments were: 2 x Environmental - 1 x Countryside in relation to a footpath bridge repair - 1 x staff at Gt Northern Terrace HWRC

LCC Overview of complaints The total number of LCC complaints received this Quarter (Q3) shows a 10% increase on the previous quarter (Q2). When comparing this Quarter with Q3 of 2016/17, there is an 68% increase when 143 complaints were received.

Current Q2 Q1 Q4 Q3 Q3 Total number of complaints 17/18 17/18 16/17 16/17 received across all LCC service 17/18 area. 241 219 159 169 143

Total number of complaints relating to Environment & 56 23 4 4 4 Economy Scrutiny Committee Total Service Area Complaints broken down Environmental Management 2 3 4 2 4 Planning 54 20 0 2 0 Number of complaint escalations 18 4 0 0 How many LCC Corporate complaints have not been 4 10 0 1 6 resolved within service standard Number of complaints referred to ombudsman 10 11 9 7 8

Page 43 This Quarter Environment & Economy has received 56 complaints which is an increase of 33 as l ast Quarter they received 23 complaints. When comparing this Quarter with Q3 2016/17, there is an in crease of 52 with 4 complaints being received for that period.

Environmental management

This Quarter Environmental Management has received 2 complaints which is a decrease of 1 from last Quarter when 3 were received. The complaints were regarding: - Member of staff not returning calls or taking complaint seriously. This was not substantiated - The public tender of bulk coverage of waste contract. This was partly substantiated.

Planning

This Quarter Planning has received 54 complaints which is an increase of 34 from last Quarter when 20 were received. 51 were in relation to the Hazardous waste recycling site at South Hykeham, Lincoln. These were all unsubstantiated

1 x No objection from LCC to BBC to planning permission of 195 houses in Frampton. 1 x planning application regarding land off Asserby Lane, Asserby 1 x lack of information from Development Management Officer. These were all unsubstantiated.

Complaint escalations In Quarter 3 of 2017/18 there were a total of 32 complaint escalations for LCC. 18 of these related to Environment & Economy.

18 x Planning: 17 of these were all in relation to the Hazardous waste recycling site. 1 was in relation to lack of information from Development Management Officer.

Ombudsman Complaints In Quarter 3 of 2017/18, 10 LCC complaints were registered with the Ombudsman. 3 of these complaints were recorded against Environment & Economy, all relating to the Hazardous Waste Site.

Page 44 Agenda Item 6

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Subject: Environmental Services Property Portfolio KeyDecision decision? No Summary:Reference: The Environmental Services property portfolio consists of a significant number of sites and properties ranging from small sites used for accessing the coast up to the ownership of the visitor centre at Gibraltar Point National Nature Reserve. For the purposes of this report no consideration as to property required for operational Waste services are included (Household Waste Recycling Centres etc.)

In general the sites may be broken into 4 separate subsets;  closed landfill sites,  picnic and transit sites  coastal access sites  environmental sites

The following summary provides general information and considerations regarding each subset whilst reflecting on potential options with regard some of the key sites.

Actions Required: Members of the Environment and Economy Scrutiny Committee are invited to: 1) consider the individual recommendations for the various types of property in the Environmental Services portfolio and; 2) recommend any priorities for future development or, alternatively, withdrawal of services for consideration by the relevant Executive Councillor.

1. CLOSED LANDFILL SITES

1.1 7 individual sites where general maintenance is covered through waste services budgets with Mareham Pastures Local Nature Reserve being the predominant site supported by the LCC Project Officer and local volunteers and aided through a Community Wildlife Grant. Both Nettleton and Barlings are let for grazing and as a consequence liabilities for fencing etc.

Page 45 are moved from LCC. Generally the sites contribute towards the Council's Natural Environment Strategy but not in every case.

1.2 The only potential site of concern is that of Cow Bank, Skegness where the site is leased to Seagull Recycling as an environmental training centre. The roadway access to the site is not highway maintainable at public expense but is shared with another premises. The roadway is becoming more hazardous and may need investment in the near future.

1.3 Given the previous usage of the sites as landfill there is very little scope to alter current arrangements and it is highly unlikely anyone other than current tenants would be interested in leasing the land.

1.4 Recommendations

1.4.1 Review management regimes for mowing / repairs at the publicly accessible sites to minimise costs where possible.

1.4.2 For Cow Bank – Assess the costs of improving the road prior to considerations concerning the current lease.

1.5 Outcomes

1.5.1 Minimal opportunities to alter current arrangements 1.5.2 Minimal cost reductions to LCC through improvements to management regimes where possible

2 PICNIC & TRANSIT SITES

2.1 This subset consists of sites that were mainly created in the early 1970s following the formation of Lincolnshire County Council following Governmental recommendations for authorities to provide suitable rest stops on the major arterial roads. These have taken the form of "layby" transit facilities such as at Willingham Woods, Stickney, Carter's Plot (Heckington) and Leverton or bespoke sites following the closure of road sections (Scampton) or purchase of former railway land (Stickney and Tattershall). One further site at Sutton Bridge is leased from the Crown and provides a facility generally for locals and visitors to the River Nene banks to park prior to walking.

2.2 Most of the sites have toilet facilities which, sadly, can be prone to vandalism with Stickney suffering significant damage in 2016 leading to the present closure of the site whilst this property review is undertaken. Some sites are also subject to inappropriate usage of an adult nature.

2.3 Opportunities to operate concessions can be found at Willingham Woods and Tattershall with a further option at Carter's Plot being explored. As part of the leases the concessionaire is expected to undertake the required wardening duties for bin emptying and toilet cleaning. As a consequence a

Page 46 deduction is made to the rental amount to reflect this. Wardens are also employed at Legbourne and Stickney where no concessions facilities are available although the latter position has been vacated since the temporary closure of the site. Similarly the funded warden post at Sutton Bridge is vacant causing difficulties for the opening and closing of the site to prevent inappropriate activity due to being a remote site from Lincoln.

2.4 The Leverton Transit Site was been leased to Boston Borough Council in 2017 and they now maintain the facilities.

2.5 Recommendations

2.5.1 At first sight these sites would appear to be of minor value but their popularity with the travelling public remains. Generally situated on former trunk and arterial routes running east – west of the County they provide facilities for coast bound traffic and in developing the wider coastal offer and with the development of the "Coastal Highway" there may be scope for investing in these sites to encourage wider commercial enterprise (concessions).

2.5.2 Whilst it does not appear immediately financially necessary to alter management arrangements this should be kept under review should there be an inability for LCC to keep sites secure through wardening of sites. In these instances initial consideration should be given to offering the site to the local parish council(s) before consideration is given to either closing the site or, as in the case of Stickney, removing the infrastructure to leave only public open space and parking facilities.

2.5.3 All sites should be subject to review of management and contractual operations to ensure best value and to minimise LCC input and costs.

2.5.4 Of immediate concern the facilities at Stickney need the following decisions  To refurbish / improve the facilities and employ a warden.  Consider viability and feasibility to redevelop the site as a caravan / camping site, with the operation of the site leased to generate an income and discharge LCC's ongoing liabilities.  To remove the facilities in total and retain the site only as a car park and Public Open Space.  To remove the facilities in total and "gift" the site to the Parish Council as a car park and Public Open Space.

2.5.5 At Sutton Bridge, since LCC has no means to open and close the site, it is more prone to inappropriate usage – consideration should be given to re-assigning the remainder of the lease from the Crown Estate to Sutton Bridge Parish Council. Should the parish council decline this opportunity then consideration to closing the site to

Page 47 visitors for the remainder of the lease or negotiating with the Crown Estate for early termination.

2.6 Outcomes

2.6.1 Potential to either close sites or transfer responsibility at a point where ongoing investment is no longer practical.

2.6.2 Potential to retain and invest in specific sites where they have greater strategic importance for other LCC aspirations such as economic development, commercialisation and coastal zone improvements.

3. COASTAL ACCESS SITES

3.1 With Lincolnshire's extensive coastline the County Council owns and manages a number of parcels of land predominantly in the East Lindsey district area between Tetney and Gibraltar Point. This is by virtue of the Sandhills Act of 1932 which vested the land in the then Lindsey County Council for protection against development of the coastal zone and for the purposes of being public open space. This legislation remains extant and as a consequence Council's aspirations towards development of certain sites may be restricted and limited and will require further investigation. Many of the sites also have an environmental designation as either a local or national nature reserve.

3.2 Many of the sites consist of just small areas of land with sufficient parking space for a handful of vehicles to access the foreshore (e.g. Horseshoe Point, Donna Nook, Rimac). However in the region between Mablethorpe and Skegness there are a number of sites with greater capacity and, given their location, greater popularity. A number of these sites are in the emerging Lincolnshire Coastal County Park (LCCP) and as such have a wider strategic value for both tourist facilities and environmental management. Considerations for investment in this region and especially around Huttoft Car Terrace and Anderby Creek car park will need to be made although the current budgetary situation would not cover the scale of investment required to develop the sites significantly.

3.3 Due to the Sandhills Act and the limited size and scope of the land outside of the LCCP area it is not envisaged that any alterations other than a review of the grounds maintenance regimes for the sites in these locations will be made. All these sites have open access and are not wardened in any way.

3.4 Some of the LCCP coastal access sites suffer from known anti-social behaviour and the Huttoft Car Terrace also has issues of overnight stays and the hogging of the available area by inappropriate parking by larger motor home owners. Various management operations have been implemented with a lack of genuine success. Height restricting barriers have been installed which are almost immediately vandalised and removed

Page 48 posing a significant drain on resources and bylaws for the various sites have proved largely unenforceable although consideration as to whether these are revoked in favour of other opportunities to managing car parking on these sites are being undertaken as part of the LCCP project.

3.5 It is clear that to ensure the Council's ambitions concerning the LCCP and delivering a wider coastal "offer" to both the local population and visitors alike significant redevelopment in the existing facilities and / or investment in new infrastructure is required.

3.6 LCC is not the sole manager of access to the coastline and the associated public facilities and it is considered important to work with the East Lindsey District Council which operates car parking and toilet facilities at Sandliands as well as managing toilet facilities at Anderby Creek and Huttoft Car Terrace on LCC land. A summary of toilet facilities in the LCCP region is as follows:

Location Owne Status d / Mana ged by Chapel Six Marshes LCC Closed Anderby Creek ELDC Open Marsh Yard LCC Open but at End of Lifespan - in need of replacing or demolishing Huttoft Car Terrace ELDC Open but in poor condition Sandilands (not LCC ELDC Open Land)

3.7 Recommendations

3.7.1 For the non-LCCP coastal sites a review of grounds maintenance activity and contracts to ensure effective and efficient delivery to ensure LCC input is minimalised

3.7.2 For the sites within the LCCP region consideration at each site should be given to:  Car Parking provision, restrictions and management (ongoing already)  Repair, demolition or renewal of toilet blocks  Review of grounds maintenance management (litter, bins, grass cutting, sand clearance)  Improvements for natural environment enhancement  Potential for development and commercialisation (e.g. usage / conversion of the former boat house at Huttoft Car Terrace)

Page 49 3.8 Outcomes

3.8.1 A review of the potential opportunities to invest in sites focussing on wider Council strategies of natural environment enhancements and commercialisation and economic opportunity.

3.8.2 Resolution as to the provision of facilities at sites within the LCCP in collaboration with ELDC.

3.8.3 For non-LCCP sites a review of grounds maintenance management may see a minimal reduction in costs.

4. ENVIRONMENTAL SITES

4.1 These sites are a combination of land acquired by LCC for natural environment enhancement and long stretches of sandhills and foreshore from the Sandhills Act 1932 (see 5.1 above) and areas of land designated by environmental legislation as Sites of Special Scientific Interest (SSSI) and/or local or national nature reserves. (LNR/NNR)

4.2 Two sites have active community engagement at Horncastle Community Woodland and Cross O'Cliff Orchard and the financial impact to the authority is minimal.

4.3 Other sites coincide with existing public rights of way (Spa Trail, Willoughby Rail Line LNR, Farlesthorpe Rail Line LNR)

4.4 The two main foreshore areas at Saltfleetby and Theddlethorpe are protected SSSI and there are leases with the Lincolnshire Wildlife Trust to undertake the statutory management of these sites on LCC

4.5 The site at Snipe Dales Country Park and Nature Reserve is managed through a joint Advisory Committee with the Lincolnshire Wildlife Trust with the Trust leasing the area from LCC at a peppercorn rate whilst undertaking all necessary management. Liabilities for LCC remain in paying the rates, security alarm costs and buildings maintenance.

4.6 The site at Gibraltar Point consists of surfaced pathways, a fee-paying car park and a new visitor and education centre since the devastating flood of winter 2013 rendered the previous building unusable. The visitor centre is leased to the Wildlife Trust and negotiations as to the terms of the lease and the respective responsibilities and liabilities of each party are nearing completion. As yet the costs of the various elements that LCC will be responsible for on an annual basis are unknown but it is likely that to ensure the quality of this prestigious building and its surroundings is maintained to high standards that a figure in the region of £2000 per annum would be appropriate. Any repairs to the infrastructure for which LCC is responsible for is likely to be a capital project as opposed to revenue funding.

Page 50 4.7 The Council also lease a bungalow in the area to LWT which is occupied by the Reserve's warden. Whilst this may have a resale value it is not considered a realistic prospect to sell the property and would have a negative effect on the relationship between LWT and LCC.

4.8 Currently LCC provides a grant to LWT to deliver the statutory management of designated sites. This grant is diminishing in size to the extent that by 2018-19 there will be no funding to provide it and this poses a potential risk to these managed sites.

4.9 Recommendations

4.9.1 To continue to progress the lease between LWT and LCC concerning the Gibraltar Point Site and Warden's Bungalow properties to ensure LCC minimises its input.

4.9.2 Consideration should be given however to establish that ongoing grounds maintenance by LCC staff could provide an alternative to direct grant funding.

4.9.3 For the two community sites and remaining sites such as the LCC managed LNRs there is only minimal opportunity to alter current regimes.

4.9.4 To consider improvements requested by the general public at Spa Trail (car park surface)

4.10 Outcomes

4.10.1 A review of lease arrangements between LCC and LWT to ensure greatest efficiency for the management of environmental sites.

5. Consultation

a) Have Risks and Impact Analysis been carried out? N/A

b) Risks and Impact Analysis

N/A

Page 51 6. Appendices

These are listed below and attached at the back of the report Appendix A List of Environmental Property Sites Appendix B Running Costs of Sites 2017-18 (as at Feb 2018)

7. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Chris Miller, who can be contacted on 01522 782070 or [email protected]

Page 52 Appendix A – List of Environmental Services Sites (excluding those allocated to Waste Services)

South Thoresby Warren LNR Tattershall Closed Landfill Cow Bank Closed Landfill

Alford Closed Landfill

Barlings Closed Landfill

Closed Landfill Closed Mareham Pastures LNR Nettleton Nature Reserve Stickney Picnic Site

Legbourne Picnic Site Tattershall Picnic Site Willingham Woods Transit Site

Scampton Viewpoint

Sutton Bridge Picnic Site

Picnic & Transit & Picnic Carters Plot Transit Site Leverton Transit Site Gibraltar Point NNR Croft & Wainfleet Foreshore Theddlethorpe St Helen NNR

Horncastle Community Woodland

Snipedales Country Park & Nature Reserve Gibraltar Point Warden's Bungalow Farlesthorpe Rail Line LNR

Willoughby Rail Line LNR Environmental Saltfleetby Foreshore SSSI Cross O' Cliff Orchard LNR Huttoft Marsh Nature Reserve

Spa Trail

Frieston Shore Crook Bank Chapel Six Marshes Huttoft Car Terrace Wolla Bank

Marsh Yard & Moggs Eye

Huttoft Sandhills & Beach Chapel St Leonards Chapel St Leonards, Pullover etc Anderby Creek Horseshoe Point Donna Nook

Howdens Pullover Coastal Access Sites Access Coastal Saltfleet Haven Paradise Sea Lane Rimac Churchill Lane Brickyard Lane

Page 53 Appendix B – Running Costs of Sites 2017-18 (as at Feb 2018)

ACTUAL PROJECTED TOTAL COSTS BUDGET SITE ACTIVITY COST 2017-18 INCOME NOTES (@02/2018) 2017-18 Mowing £336.00 South Thoresby Warren £349.79 Miscellaneous £13.79 Tattershall Site repairs £500.00 £500.00

Cow Bank £1,000.00 £1,000.00 £500.00 Lease expired 2017 - Tenant holding over

Alford Site Repairs £500.00 £500.00 Barlings £250.00

Nettleton Grass land management £3,080.00 £3,080.00 Scrub and Hedge Works Services Grant to volunteers £500.00

Mareham Pastures LNR Mowing £1,000.00 £1,999.13 Covered by Waste by Waste Covered Site Maintenance £499.13 CLOSED CLOSED LANDFILL Total Cost Closed Landfill £7,428.92 £750.00 Rates £1,700.90 Insurance £83.46 Electricty £72.99 Stickney Picnic Site £2,534.93 Site currently closed following vandalism Water Rates £12.10 Sanitation Contract £642.08 Miscellaneous £23.40 Rates £2,027.10 Electricity £57.22 Water Rates £287.44 Insurance £78.82 Site Warden £4,573.20 Legbourne Picnic Site Warden Cover £350.00 £8,559.59 £ of repair to door lock unknown (Vinci) Cleaning Equipment (toilet rolls etc.) £194.15 Refuse Collection £500.00 Facility Repairs Site Repairs £480.00 Miscellaneous £11.66 Rates £2,073.46 Electricity £304.60 Water Rates £309.18 Insurance £101.74 £34,597.00 Septic Tank Emptying £540.00 Refuse Collection £300.00 £6,501.16 Tattershall Picnic Site Mowing £750.00 £ of repair to basin unknown (Vinci) Water Rates £250.12 Facilities Contract £1,007.06 Facility Repairs Hedge Flail £165.00 Site Repairs £700.00 Concession £4,000.00 Rates £1,968.00 Insurance £122.18 Water Rates £1,300.32 Electricity £1,500.00 Cleaning Equipment (toilet rolls etc.) £2,400.00 £13,375.50 Willingham Woods Transit Site Facilities Contract £2,000.00 PICNIC & TRANSIT & PICNIC SITES Septic Tank Emptying £720.00 Facilties Repairs £365.00 Refuse Collection £3,000.00 Concession £5,521.87 Lease Rent £483.10 Hedge Flail £300.00 Sutton Bridge (Winglands) Picnic Site £1,108.10 Facilities Repairs £250.00 £4,820.00 Mowing £75.00 Rates £2,982.40 Insurance £104.32 Water Rates £293.23 Septic Tank Emptying £842.00 Electric £2,000.00 Seeking to defer cleansing responsibility to Carters Plot Transit Site £22,851.95 Refuse Collection private concession operator on site. £22,454.00 Mowing £15,000.00 Cleansing Site Repairs £550.00 Facilities Repairs £1,080.00 Scampton Viewpoint Site leased at £0 to Boston Borough Leverton Transit Site Council £14,671.00 Total Cost Picnic & Transit Sites £54,931.23 £9,521.87 £76,542.00 Horseshoe Point Donna Nook (Stonebridge) Rent £500.00 £500.00 Howdens Pullover Saltfleet Haven Site Repairs £3,940.00 £3,940.00 Paradise Sea Lane Rimac Churchill Lane Brickyard Lane Crook Bank Rates Area A £699.00 Rates Area B £660.91 Huttoft Car Terrace £2,145.92 Rates Boat House £226.01 Sand Clearance £560.00 Huttoft Sandhills & Beach Concession £10.00 Wolla Bank Rates £284.26 £284.26 Septic Tank Emptying £190.00 Marsh Yard Facilities Repairs £650.00 £1,490.00 £20,927.00 Toilet Block Survey £650.00 Moggs Eye Rates £617.45 £617.45 Rates £142.00 Anderby Creek Car Park Lining £400.00 £1,112.00 Skip £570.00 Rates £363.48 Chapel Six Marshes £886.28

COASTAL ACCESS SITES COASTAL ACCESS Skip £522.80 Lease Rent £400.00 Chapel Pullover Former Conveniences Lease £337.50 Chapel St Leonards Frieston Shore Fly Tipping Removal £348.00 Grass Cutting £21,202.36 Across All Sites Miscellaneous £17.80 £22,078.16 Fencing at Anderby Creek, Marsh Yd & £510.00 Chapel Six Marsh Total Cost Coastal Access Sites £33,054.07 £747.50 £20,927.00 Rent to Crown Estate £1,000.00 Insurance £1,713.65 £4,213.65 Gibraltar Point NNR Facilties Repairs £1,500.00 £1,300.00 Feed in Tariff (Solar) £218.26 Skegness Yacht Club Lease £700.00 Croft & Wainfleet Foreshore Gibraltar Point Wardens Bungalow Gas Boiler Service £61.50 £61.50 £70.00 Insurance £84.05 £84.05 Rent £10.00 Water Rates £165.90 Snipedales Country Park & Nature Reserve Facilities Contract £43.68 £4,224.35 £4,369.00 Rates £2,665.87 Security Alarm £1,338.90 Huttoft Marsh Nature Reserve Saltfleetby Foreshore SSSI Theddlethorpe St Helens NNR Grass Cutting, Refuse Collection & Toilet Horncastle Community Woodland £1,415.00 £1,415.00 cleansing contract £1,000.00

ENVIRONMENTAL SITESENVIRONMENTAL Volunteer Expenses £50.00 Cross O' Cliff Orchard Pruning Works £390.00 £840.00 £1,000.00 Additional Pruning Works £400.00 Spa Trail Bins (Provision & Repair) £1,200.00 £1,200.00 Willoughby Rail Line LNR Farlesthorpe Rail Line LNR Total Cost Environmental Sites £12,038.55 £918.26 £7,739.00 PROJECTED TOTAL COST - (Exc Landfill) @ 30/11/2017 £100,023.85 SET BUDGET - ALL SITES £105,208.00 INCOME £11,937.63 TOTAL AVAILABLE BUDGET £117,145.63 PROJECTED UNDER / OVER SPEND 2017/18 £17,121.78 Page 54 Agenda Item 7

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Subject: Hotel Strategy KeyDecision decision? Reference: Summary: This report describes the work that LCC and the Greater Lincolnshire Local Enterprise Partnership have done to understand what should be done to attract more hotels to the county.

Actions Required: Members of the Environment and Economy Scrutiny Committee are invited to: 1) Consider and comment on the work being undertaken to attract hotel development in Greater Lincolnshire and the associated barriers attracting development due to the county's size and population, and, 2) Endorse further discussions with developers and the ongoing work to attract hotel development in Greater Lincolnshire.

1. Background

The shortage of visitor accommodation in Lincolnshire has been of concern for some time. In 2008 a Hotel Demand Study was commissioned for Greater Lincolnshire and this did lead subsequently to new developments, such as the Hilton Double Tree and Premier Inn in Lincoln. However we were disappointed not to have achieved more, particularly as the two new hotels in Lincoln indicated that the £22m redevelopment of the Castle was a contributory factor. Hotel occupancy rates in 2015 and 2016 have been extremely high and this has rolled out across the county as the city has not had the capacity to cope.

Lincolnshire is notably missing a luxury hotel brand/spa, with only three 4 star hotels within the whole of the region: DoubleTree by Hilton in Lincoln, Belton Woods Hotel in Grantham and Forest Pines Hotel near Brigg.

Additionally it is proven that Greater Lincolnshire is losing valuable business from the MICE (Meetings, Incentive, Conference and exhibitions) industry. A piece of work commissioned by Meet Lincoln in 2014 & 2015, specifically focussed on raising awareness of Lincoln as a destination for business tourism activity and driving enquiries to MICE venues. It is estimated that in the year 2014 – 2015 over

Page 55 £500,000 of business tourism was lost in the city of Lincoln, of which a lack of accommodation was a major factor in failing to convert business.

High occupancy rates may seem like a desirable position, but apart from the loss of business it does appear to imbue the sector with a sense of complacency and a disinclination to invest. In 2016 through funding from the GLLEP it was decided to commission a refresh of the 2008 Hotel Demand Study, but learning from that experience we felt that it needed to be far more focussed on identifying locations across Greater Lincolnshire that are suitable for hotel investment; examining the current supply of serviced accommodation; recommending solutions to the removal of the apparent barriers to development and providing evidence to present to potential hotel investors.

Greater Lincolnshire Hotel Study: Key Findings

Greater Lincolnshire has 106 hotels providing 4,459 bedrooms with a capacity for 3.3 million overnight stays per year. The most significant supply is in Lincoln, with Grantham having a sizeable hotel stock for a town of its size; other concentrations of hotels are to be found in Grimsby, Skegness, and Scunthorpe and there is very limited hotel provision in Gainsborough and Sleaford.

Hotels are predominantly rated 3 star and are described as being of mixed quality; there is a growing stock of budget hotels and very few 4 star and boutique hotels. As far as recent and planned developments are concerned there are budget hotel openings in Lincoln, Grimsby and Humberside Airport; new budget hotels planned for Lincoln, Humberside Airport, Skegness and Gainsborough and boutique hotel openings in Lincoln, Stamford and Scunthorpe.

National trends that we need to be aware of are the:  Continuing rapid growth of Premier Inn and Travelodge, as the clear market leaders in the budget hotel sector  Holiday Inn Express, Hampton by Hilton and Ibis also expanding as budget brands  Emergence of budget boutique hotels in major cities  Boutique hotel development, particularly in historic cities and attractive market towns – independent boutique hotels + boutique brands in major cities (Hotel Indigo, Malmaison, Hotel du Vin)  4 star hotel development focused on major cities  Holiday Inn, Village, Hilton Garden Inn, Countryard by Marriott expanding at the midmarket level – major towns and cities + business park locations  Aparthotels and serviced apartments developing in major towns and cities  Some new country house hotel and golf hotel openings

There are currently a number of hotel business models. There may be a split between the property and the operators where the bricks are in effect separated from the brains. There may be multiple players in any delivered hotel: Owner/investor; Developer; Franchisor; Operator - and they will all have different objectives. There are a number of options of how this could work:

Page 56  Invest, develop and operate (all one company)  Invest & develop then bring in an operator/management company  Separate investor, developer and operator  If the operator is not branded, a franchise can be bought for any of the above options  To fund a development a property company requires the hotel operator to take an institutional lease guaranteeing income over 25 years – only Travelodge + Premier Inn have the covenant to do this  This impacts on which sites can be matched to which hotel brands  Getting the optimum brand to the optimum site might need some intervention

Hotel companies have their development criteria, although on occasion they can sometimes be opportunistic:

Population levels

 100,000+ for larger (100+ rooms) branded hotels, especially upscale  Budget brands 50,000 and below, 40-60 rooms  Critical mass of infrastructure & demand drivers

Locations of strong and growing corporate demand

 Mid-week high rated business required.

Something for the weekend

 Attractions, events, VFR (visiting friends and relations), weddings, year round

Target performance levels

 Occupancy 75% (80%+ for budgets)  Achieved room rates (ARR) from £50 (budget) to £100+ (4 star)

Evidence of demand

 Existing supply/take market share  Performance data/market studies

Hotel Demand Opportunities in Greater Lincolnshire

Lincoln

 City centre hotel occupancies are high (80.4%), particularly for branded hotels  ARRs for city centre budget hotels are strong (because no Travelodge)  3/4 star ARRs are £10 below the national average (£73 cf £83)

Page 57  Strong demand + denials on Tuesday, Wednesday and Saturday – but spare capacity on other nights  Independent 3 star hotels in the city centre and outer locations have seen a drop in occupancy and ARR – due to local market factors and the increase in city centre hotel supply  The market should absorb the additional bedrooms at the Doubletree and the Holiday Inn + the new Travelodge  The priority beyond this additional provision is hotel products and brands that will help to grow the Lincoln hotel market  The priority then is additional boutique hotel provision – including potentially a branded boutique hotel – a Hotel Indigo could work in Lincoln – a Hotel du Vin would be good for the city but room rates are an issue and there is no suitable site

Scunthorpe

 Potential for a budget hotel as part of the regeneration of the town centre – would impact on independent hotels  Corporate market does not appear to be strong enough to support a new 3 or 4 star hotel + challenge of weekend demand  Possible scope for adding bedrooms to Hirst Priory (to be investigated)  Scope for development of Scawby Hall as a wedding venue.

Grimsby

 Potential for further budget hotel provision – Cartergate is the strongest site – likely impact on independent hotels  Rate an issue for a 3 star hotel + challenge of weekend demand

Grantham

 The Designer Outlet Village if delivered should generate demand for a budget/limited service hotel or pub/lodge  Grantham otherwise unlikely to be able to support additional hotels

Stamford

 Budget hotel interest + site at Exeter Park  Boutique hotel potential – but no current conversion opportunities

Other Locations

 Upgrading existing hotels  Budget hotel/ pub lodge potential: Skegness, Boston (The Quadrant),Spalding (Lincs Gateway) and Sleaford ( Sleaford West)  Independent hotels: Sleaford, Boston, Spalding Gainsborough (PING)  Pub accommodation

Page 58 Barriers and Issues in Lincolnshire

 The size of the market for some hotel brands (including Lincoln)  The relative weakness of the corporate market  New demand drivers – but hotels won’t precede the market they bring  Deliverability of sites  Land values – competition from residential and student  Below average ARRs  Viability and the returns sought by Private Equity investors  Planning (including Member buy-in)  Opportunistic strategies – competition from other destinations with strong metrics  Developer driven schemes looking for leases

How local authorities can support hotel development

1) Putting in place a clear hotel development strategy which can be used to influence developers and agents. It would seem appropriate that these should be prepared on an area basis where we know there are opportunities, for example Lincoln, Stamford. 2) Disposal of suitable council-owned sites and buildings 3) Through direct investment. This could be by a number of means: whole ownership by a council funded through a public works loan; joint venture, land contribution; public realm or highways contributions; gap funding to reach viability and return on investment thresholds. 4) Taking a head lease on a strong site to secure a particular hotel product or brand that the market might not otherwise deliver. 5) Providing well presented evidence to influence developers and agents. This might include a hotel investment fact file, hotel performance data and market studies. 6) Through Planning local authorities can provide the right policy framework which gives certainty to the market and a cooperative approach. 7) Work on growing the local market. This could be by attracting businesses to the area who will then have a need for accommodation; by marketing the destination to attract visitors, particularly driving off-peak business; investigating conference market potential. 8) Through funding to support the upgrading of existing accommodation. This might be through promoting currently available funding (EAFRD) or through new funding bids. 9) As part of the development strategy identify a pub accommodation programme. This could be by identifying pub properties with potential and then targeting pub accommodation operators (e.g Ever So Sensible Group, Green Welly Inns).

Hotel development is ultimately a matter for the market to determine. The case for public sector intervention to support hotel development is where there is evidence of market failure in terms of the commercial sector failing to deliver the new hotels that are needed to support economic development and tourism growth, and

Page 59 investment in existing hotels. Our consultants Hotel Solutions’ research has shown evidence of such market failure.

As part of the Hotel Development Study we asked Hotel Solutions to discuss with hotel companies their likely interest in Greater Lincolnshire.

Lincoln is the only location that attracted interest for a wide range of hotel products and brands, including 4 star, 3 star, boutique, budget boutique and lifestyle hotels and aparthotels. Even here however, the room rates that are currently being achieved by the city’s 3 and 4 star hotels, and the depth of corporate demand for hotel accommodation, present a challenge for the market to deliver full-service hotels. The more detailed hotel performance and market research and hotel demand projections that Hotel Solutions has completed for Lincoln shows that the city should be able to absorb the additional bedrooms planned for the Doubletree by Hilton, the Holiday Inn and the city centre Premier Inn, and the new Travelodge. Beyond this, the priority in Lincoln is for hotel products and brands that will help to grow the Lincoln hotel market, in terms of additional boutique hotel provision, including potentially a branded boutique hotel; a budget boutique or lifestyle hotel to attract the Generation Y market; and an aparthotel to cater for the extended stay corporate market. Hotel Solutions’ research suggests that public sector funding support may be needed to secure such hotels for the city. Continued investment in existing hotels, including potentially the repositioning of some hotels, is also a priority.

There is interest in Scunthorpe, Grimsby and Grantham for upper-tier budget (Hampton by Hilton or Holiday Inn Express) hotels, with the hotel development opportunities at the proposed Scunthorpe United football stadium at Lincolnshire Lakes, the Cartergate site in Grimsby, and the hotel development opportunity at the proposed Grantham Designer Outlet Village attracting the strongest interest for hotels at this level.

In other locations (Boston, Cleethorpes, Gainsborough, Skegness, Sleaford, Spalding and Stamford) the interest is only from Travelodge and Premier Inn for budget hotels and Marston’s for pub lodges. These towns are too small to support upper-tier budget or 3/4-star hotel development. While there are strong budget hotel sites in these locations, Travelodge and Premier Inn are struggling to achieve financially viable hotel projects in these places as their hotel markets are unable to support the rental levels that their developer partners are looking for. Investment in existing hotels in these towns is also a priority.

Stamford has the potential for further boutique hotels. No potential boutique hotel development opportunities have been identified here however.

Other towns (Alford, Barton-upon-Humber, Brigg, Bourne, Burgh-le-Marsh, Holbeach, Horncastle, Ingoldmells, Louth, Mablethorpe, Market Deeping, Market Rasen, Spilsby, Wainfleet and Woodhall Spa) are too small to support budget hotel development. The priorities here are the upgrading of existing 3 star hotels and the development of good quality pub accommodation.

Page 60 Next Steps

In progressing the implementation of the Hotel Development Action Plan there is a clear role for Greater Lincolnshire LEP to play in terms of leadership and co- ordination with regard to:  Promoting the Hotel Development Action Plan to local authority partners through circulation of the Action Plan and follow-up discussions, meetings, presentations and workshops to agree and monitor the process of implementing the Action Plan.  Monitoring of hotel development activity and interest, and local authority interventions to support hotel development.  Developing relationships with hotel companies.  Commissioning/co-ordinating the commissioning of any further consultancy support that may be required.  Securing funding for Greater Lincolnshire-wide programmes and initiatives e.g. the suggested Pub Accommodation Development Initiative.

There could be a case for setting up a Greater Lincolnshire Hotel Development Group that periodically brings together all of the relevant officers from the local authorities to review progress and discuss future support requirements.

Progress

Hotel Solutions provided us with four comprehensive and detailed reports: an action plan, a hotel investment fact file, a developer survey and a hotel sites assessment report. Following on from the original studies North Lincolnshire District Council took the decision to commission an additional study providing more detail about their area. The GLLEP also made the decision to support an additional study on Lincoln City and to also produce a Lincoln Hotel Strategy as Lincoln clearly has the most potential. This identified the St Marks re-development as a particularly suitable site. Team Lincolnshire approached Standard Life and a meeting was set up to explore ways that we could work together to secure a branded hotel on the site.

Team Lincolnshire attended the Annual Hotel Conference with a view to engaging interest. A boutique hotel brand was interested in Lincoln as a possible location and they were invited to the city with their visit being very positive. Discussions are ongoing although they have made us aware that there are barriers in that Lincoln is perceived as a relatively small market and that a hotel is unlikely to be as profitable as in a bigger city.

2. Conclusion

It is felt that the work supplied to us by Hotel Solutions has armed us with the necessary background to speak to Hotel developers and brands with confidence and that we know what they are looking for. Attendance at the Annual Hotel Conference in October is clearly very worthwhile.

Page 61 3. Consultation

a) Have Risks and Impact Analysis been carried out? N/A

b) Risks and Impact Analysis

N/A

4. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Mary Powell, who can be contacted on 01522 550612 or [email protected] .

Page 62 Agenda Item 8

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Subject: European Regional Development Fund (ERDF) KeyDecision decision? Summary:Reference: This paper proposes that Lincolnshire County Council will make two bids for European Regional Development funding – 1) to extend the Business Lincolnshire growth hub; and 2) attract funding towards the Saltfleet to Gibraltar Point beach nourishment scheme.

Actions Required: Members of the Environment and Economy Scrutiny Committee are invited to support that the Executive Councillor for Economy and Place approve the submission of EU funding bids as outlined in the report.

1. Background

European Regional Development Fund (ERDF) Summary Brief

LCC regulations state that all bids for external funding of more than £250,000 should be agreed by the relevant Executive Councillor. Officers have prepared two bids which meet priorities that have been discussed at previous meetings of the Environment and Economy scrutiny committee.

Following the management information paper presented on 28th November 2017, the Greater Lincolnshire European Regional Development Fund (ERDF) Growth Programme is launching calls in January 2018 and March 2018 to commit remaining funds.

ERDF Grant Allocations by Priority Axis: Priority Axis % Committed to Remaining ERDF to allocate projects to projects £000s 1: Research & Innovation 82% 2.683 2: ICT 85% 0 3: SME Competitiveness 49% 15.914 4: Low Carbon 66% 2.799 5: Flood risk management 59% 2.043 6: Protecting the Environment 0% 2.376

Page 63 January 2018 Calls:

In Greater Lincolnshire the European Structural and Investment Fund (ESIF Committee) agreed to launch three calls for activity to bring forward projects under:

Priority Axis 1 Promoting Research & Innovation Priority Axis 3 Enhancing the Competitiveness of SMEs Priority Axis 5 Promoting climate change adaptation, risk prevention and management

Calls were published on 8th December 2017 with a closing date of 26th January 2018 for outline applications and promoted through the Greater Lincolnshire Local Enterprise Partnership, Business Lincolnshire and various meetings, events and workshops.

Projects submitted by Lincolnshire County Council as the applicant organisation under the January 2018 calls:

1) Business Lincolnshire Sustainable Business Growth 2 (Priority Axis 3 SME Competitiveness)

Business Lincolnshire Sustainable Business Growth 2 (BLSBG2) will be submitted with Lincolnshire County Council being the applicant organisation. This will be phase 2 of our current Growth Hub activity which has been developed to provide comprehensive business support advice to the business community. The current activity has been reviewed and phase 2 will ensure continuity of delivery but also include additional activity where any gaps in provision have been identified. The programme will provide advisory support, capacity building and growth funding, and will include:  1-1 business support covering  information advice and guidance and action planning for growth  investment readiness/ access to private sector investors  resource efficiency  developing use of digital technologies and ICT  supply chain development  legislative risks and best practice  enhanced assistance for high growth potential SMEs (scale ups)  Leadership and management development including a mentoring service  Events, briefings, workshops and masterclasses  Business Growth Grants  Growing Graduate Enterprise - start up support for Greater Lincolnshire Local Enterprise Partnership based graduates who want to start in business

The project will dovetail into existing provision and start 1st June 2019 with delivery being completed by 31st May 2022. The total project cost of Phase 2 is £6,304,012 with £3,782.407 of European Regional Development Funding being requested. Lincolnshire County Council will be matching this with £1,839,831 of own funds.

Page 64 2) Interim Beach Management Lincolnshire Coast 2018/18 Priority Axis 5 Flood Risk Management

The project will re-nourish key locations of the Lincolnshire coastline between Saltfleet and Gibraltar Point with sand that is washed away from the beaches by natural coastal processes. The works involve:  Dredging sand from the sea bed via a licensed site located off-shore  Transporting the sand via a sea barge at high tide to the pre-determined locations off the Lincolnshire coast  Pumping approx. 500,000m3 of sand over a six week period onto the beach in 5 main locations between Mablethorpe and Skegness  Distributing the sand across the beaches to the required designed profile.

Beach re-nourishment is the current approved strategy (2018 – 2021) to manage coastal flood risk to meet the policy for this frontage as determined by the Shoreline Management Plan for this section coast. The Saltfleet to Gibraltar Point Strategy is reviewing how to maintain the beaches through alternative approaches. The Environment Agency have led the delivery of its beach re-nourishment strategy ‘Lincshore’ for more than 20 years and will continue this strategy during the interim period (2018/21), before the new strategy is implemented.

If this project is successful in attracting European Regional Development Funding, this in turn will allow for a study to be supported to look at longer term sustainable options to beach re-nourishment on the coast.

The Environment Agency will carry out the delivery of the project, but Lincolnshire County Council will be the lead applicant due to the wider economic regeneration benefits and fit with the Water Management Plan.

The total project cost of the scheme is £7,500,000 with £1,000,000 European Regional Development Funding being sought. Match funding is being provided by the Environment Agency of £6,500,000.

Page 65 Pipeline project up-date

The following table is an up-date of anticipated projects that will be submitted in the January 2018 call:

Priority Project Title Total Project ERDF requested Axis Cost 1 Centre of Excellence for Greater £4,499,485 £2,549,485 Lincolnshire's Engineering Sector (UoL) £2,000,000 Growth Deal (secured) £2,549,485 3 Better off in Business (PT) £633,964 £380,378 3 Growing Enterprise (NBV) £2,040,318 £1,224,191 3 Business Lincolnshire £6,304,013 £3,782,407 Sustainable Business Growth 2 (LCC) 3 Innovation Programme for £3,830,183 £2,285,012 Greater Lincolnshire (UoL) 3 Collaboration for Growth £1,336,900 £802,140 (Lincoln BIG) 3 Saxilby Light Industry £1,800,000 £807,712 Workspace Units (WLDC) 3 Grantham Incubation Units £1,000,000 £600,000 (SKDC) 3 Start up and Grow (YKTO) £2,500,000 £1,500,000 £11,381,840 5 Interim Beach Re-nourishment £7,500,000 £1,000,000 Scheme (LCC) £1,000,000 Total £10,817,134

The European Structural Investment Funds Committee also reviewed the 4 outline applications that were submitted in the 2017 call under Priority Axis 6 Protecting the Environment. The 4 projects are:

 Gainsborough Green Corridor (West Lindsey District Council),  Witham and Slea Blue/Green Corridor (North Kesteven District Council and South Kesteven District Council),  Growing Environmental Resilience (City of Lincoln) and  Freshney Valley Chalkstreams (North East Lincolnshire Council).

The projects are requesting ERDF grant funding of £3,995,031 but we currently only have £2,376,000 against Priority Axis 6. Projects were appraised by national team colleagues and reviewed by the European Structural Investment Funds Committee. Prioritisation of projects is now being carried out by DCLG based on European Structural Investment Funds Committee comments and 2018 national spend/output targets.

Page 66 2. Conclusion

March 2018 calls are currently being agreed and a summer call will be open for any Priority Axis that has remaining/unallocated funds.

3. Consultation

a) Have Risks and Impact Analysis been carried out? N/A

b) Risks and Impact Analysis

N/A

4. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Susannah Lewis, who can be contacted on 01522 5 or [email protected] .

Page 67 This page is intentionally left blank Agenda Item 9

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Greater Lincolnshire Local Enterprise Partnership – Subject: Accountable Body Progress Report KeyDecision decision? Summary:Reference: This report provides an update from the Accountable Body on the progress of the Single Local Growth Fund (SLGF) operated on behalf of Greater Lincolnshire LEP.

We focus on:  Annual Conversation - The aim of the review is to provide sufficient assurance to the Accounting Officer and ministers that LEPs fully implement existing requirements for appropriate governance and transparency.  Governance - Following a report by the Public Affairs Committee in July 2016 the government asked Mary Ney to conduct a review (Mary Ney Review) into Local Enterprise Partnership (LEP) governance and transparency. In January 2018 Local Enterprise Partnership governance and transparency: best practice guidance was published to support LEPs in meeting some of the recommendations made by the review.  Year-End target and Progress – An update on the current spend position and proposed arrangements for formal sign off of the LEP financial report.

Actions Required: Members of the Committee are invited to:

1) Consider and comment on the current progress being made on the Growth Deal Programme for Greater Lincolnshire. 2) Continue to support the role of Lincolnshire County Council as Accountable Body of the Single Local Growth Fund.

1. Background

Lincolnshire County Council continues to deliver the Accountable Body service for the Greater Lincolnshire LEP. We administer all funding on behalf of LEP including their core funding, other core contributions, growth hub, loan funding with the

Page 69 predominant fund coming from the Growth Deal. We also hold all reserves on behalf of the LEP.

As the role of the LEP continues to grow so does the need for a strong Accountable body function to aid the LEP in following the required systems and processes and enabling them to make informed decisions. Although we have always seen this as an important role recent scrutiny into the function of Leps nationally has resulted in a period of review and scrutiny into how we deliver our service.

Contracting is ongoing within the 2017/18 period and this year has seen an increase in workload compared to previous years given a greater number of projects and additional project spend and delivery. Current resourcing requirements are being met and the Accountable Body is funded primarily by interest gained on LEP Cash balances. Costs are estimated and signed off at year end. We are mindful that increased governance, as detailed below, may impact on future capacity and cost especially around the proposed enhanced role of the S151 officer.

1. Annual Conversation

Each year The Cities and Local Growth Unit (C&LG)1 conducts a performance review (known as an Annual Conversation) with each LEP. The purpose of the review is to assess progress on Growth Deal delivery over the past 12 months. The Annual Conversation also considers a range of issues, including governance and transparency. This is very much a two-way conversation which leads to an agreed set of actions and next steps to be addressed either by the LEP or by central government.

Greater Lincolnshire LEP held its Annual Conversation with Government on the 5th December. We believe it to have been a very positive discussion focusing on:

 progress with actions from the last Annual Conversation;  implications from the Mary Ney Review and governance;  delivery of the growth deal programme and in particular risk management;  adoption of the new government reporting mechanism;  Local Industrial Strategy development/Greater Lincolnshire Strategic Economic Plan

It was also an opportunity for the LEP and Accountable Body to raise any concerns, proposals and ideas to government. We specifically highlighted how we might move away from fixed unrealistic annual capital targets enabling forecast flexibility.

1 The Cities and Local Growth Unit is a joint unit between the Department of Business, Energy and Industrial Strategy (BEIS) and the Ministry of Housing, Communities and Local Government (MHCLG).

Page 70 Formal actions arising from the discussion are currently in draft pending further review by government however we have published a full list of actions within a Greater Lincolnshire LEP Governance and transparency Action Plan.

2. Governance

In April 2017, Melanie Dawes, the MHCLG Permanent Secretary, commissioned a review into LEP governance and transparency. The MHCLG Non-Executive Director, Mary Ney, led the review and following formal publication, Government accepted the review recommendations in full and is currently undertaking the following steps to implement them:

 Enhancing the LEP Annual Review process: Development of new guidance to enhance the 2017 LEP Annual Review process. This guidance ensured the Annual Review process had a greater focus on LEP governance and transparency arrangements.  Best Practice: Producing best practice guidance covering the following areas: codes of conduct; publication of meeting and agendas; confidential reporting procedures for third parties and the public; whistleblowing policies; and registers of interests.  Finance: Providing further guidance on the publication of financial information and the role of the Section 151/73 Officer. This guidance is being produced in partnership with the LEP network and The Chartered Institute of Public Finance and Accountancy (CIPFA) respectively.  Assurance Framework Guidance: Following the completion of the Minister led LEP Review; the Government will publish revised guidance for LEP Assurance Frameworks. This is expected in June 2018.  Government approach to non-compliance: Following the completion of the Minister led LEP Review; the Government will share its approach to non- compliance with LEPs.

Mary Ney Review Best Practice Guidance Recommendations from Mary Ney's review will be included in a revised National LEP Assurance Framework which we expect to be published in June this year.

Following consideration by MHCLG and BEIS Ministers into strengthening the role of LEPs, Government wrote to all LEPs on the 22nd December 2017 sharing draft best practice guidance to set out the minimum standards required for certain governance and transparency requirements. The final guidance document was subsequently published in early January 2018.

The document included:  Guidance on the publication of meeting and agenda items.  Guidance and an example of confidential reporting procedures for third parties and the public.  An example Whistleblowing Policy.  An example Code of Conduct.  A bespoke proforma Register of Interests for all LEPs to adopt.

Page 71 The Government has developed this guidance for LEPs to ensure their policies and procedures meet minimum standards of robust corporate governance. Cities and Local Growth Unit have drawn on best practice by reviewing the policies of Local Authorities, Government Departments and LEPs. Advice has also been provided by the Government Legal Service and the Centre for Public Scrutiny.

Further guidance will be provided to address additional elements once the Ministerial review of LEPs is complete.

We are confident that the Greater Lincolnshire LEP already meets many of the minimum standards contained with the recommendations however as we have identified there will always be areas that can be strengthened as we share best practice with others.

The LEP board received papers at the 31 January meeting specifically on the Mary Ney recommendations. This included draft policies for review and endorsement.

To note, our Local Assurance Framework is currently compliant with the existing published National Assurance Framework (NAF) dated October 2016. We are in the process of building in some of the new requirements and are on target for producing a final document which will be signed off by our Section 151 officer by the 28th February 2018.

Aligned to this deadline is the need to address the points highlighted above. At the time of writing we have produced and published the LEP Board Code of Conduct and updated the Growth Deal Implementation Plan. We are already moving towards the new publishing requirements including uploading draft minutes within 10 days of the scheduled meeting.

Work continues on a LEP specific Whistleblowing policy, a new enquiry, complaints and compliments policy to include provision for confidential reporting and we are in the process of working with LEP Board Directors to ensure the new register of interest requirements are adhered to and signed off.

Additional Scrutiny A requirement under the NAF to ensure accountable decision making is that the LEPs must set out what independent scrutiny arrangements are in place. Since LEP inception this committee has taken on the role of scrutiny of the LEP but with a focus on the role and function of the Accountable Body.

Under the Mary Ney recommendations it has been identified the need for a separate scrutiny committee which is independent from the LEP with a focus on reviewing decisions made by the LEP Board, how the Strategic Economic Plan is being implemented and ensuring policies are being operated in an effective manner.

The LEP board received a discussion paper (co-authored by Richard Wills as Head of Accountable Body) detailing the options for enhancing scrutiny arrangements. The LEP team will be undertaking additional work once formal guidance has been given and will report back on proposals.

Page 72 3. 2017/18 Overview

New reporting model

For the last two years of the Growth Deals, data has been reported through the LOGASnet system. DCLG retired LOGASnet in August 2017 and has provided a revised reporting mechanism. This new system is an excel based system and is designed to provide a higher level of information than previously delivered through LOGASnet.

Following the launch of the new system we have been working with DCLG to fine tune the data within the new reporting mechanism. There have been many teething problems with the transfer of data that have been experienced by all LEP's.

The new mechanism shows the following:-

 Dashboard: Presenting the progress of the overall Growth Deal to a particular quarter. It is designed to be a useful snapshot and allows delivery to be measured against forecasts. It is worth noting that it captures key outputs only and also omits the DFT retained monies that were awarded to the Lincoln Transport Hub.  Forecast Sheet: Detailing yearly spend targets for each project and also yearly output targets that link fully to the Dashboard. Forecasts were set at Quarter 1 and therefore when we provide the most updated figures these may differ as the forecast within the new mechanism is locked.  Quarterly reporting Sheets: There is a sheet for each quarter and this is used to capture data that we collect from quarterly claim submissions. These sheets do allow us to capture additional outputs that are detailed within our contracts but these do not link to the Dashboard. The sheets also include a project risk analysis around three specific areas: Delivery, Finances and reputation. The overall risk RAG rating feeds through to the Dashboard.

We are required to submit this data to Government on a quarterly basis following sign off by the LEP Board and the Accountable Body Section 151 officer.

Included as part of the report (Appendix A) are the summary Dashboards for:

 Quarter 2 covering the period July – September 2017 - Overall performance is classed as Amber/Green. It identifies two high risk schemes in relation to the programme. This dashboard has been formally signed off by both the LEP board and S151 Officer.  Quarter 3 covering the period October – December 2017 – This remains in draft as has not been reviewed by the required signatories. It shows that the Growth deal remains in the Amber/Green classification however following claims submission and progress reports from project leads we believe that there are indeed three high risk projects.

Page 73 The dashboard for Quarter 3 will be reported to the March Investment Board in preparation for formal submission to government by the 20th April 2018.

As part of our work as Accountable Body we have discussed the new mechanism in full with the LEP Finance and Audit Committee. This was to allow them to gain a greater understanding of the mechanism and provide them with greater confidence in making recommendations on the programme to the LEP and LEP Investment Board.

Project and spend Update

To date we have received £89.9million of Single Local Growth Fund (Growth Deal).

We currently hold 24 contracts to the value of £248.895million in total project costs providing £81.606million SLGF grant levering in £167.289million of public/private sector investment.

As previously reported to committee the 17/18 growth deal spend target is £15.8million and remains a challenge following high levels of funding released in previous years.

The majority of projects are successfully delivering on the ground and with some projects complete we are beginning to capture outputs and impacts to the programme. A full project update is provided in Appendix B and reflects activity to Quarter 3 reporting.

Three projects were identified to the LEP Investment Board as high risk in terms of milestones to the programme; Skegness Countryside Business Park (Skegness Gateway Scheme), Grantham Southern Relief Road, and Lincolnshire Lakes.

The LEP Investment Board requested an update paper on Grantham Southern Relief Road having been highlighted previously as a higher risk scheme. The board were pleased to see further progress on the project given LCC Executive approval to take forward preparation and publication of the statutory orders. Although a small delay on publication to February the board remained supportive.

A due diligence appraisal report on the agreed delivery approach for the Skegness Gateway Development (phase 1) was presented and endorsed. Phase 1 of the project will build, service and make available of 5 hectares of "spade ready" employment land and "ready to move in" small industrial units, which are targeted at emerging demand. The project will now move to formal contracting subject to sign off by the Section 151 Officer and compliance with a variety of contractual conditions.

Progress with the Lincolnshire Lakes scheme had been delayed with regard the required land transfers which were meant to take place in November 2017. This had raised concerns around the progress of the other elements of the scheme and hence it was flagged as higher risk in Q3. A meeting was held in late January by all parties to ensure the project was brought back on track given the amount of funding invested.

Page 74 We can update that:

 access to the land has been confirmed with the land owners with draft heads of terms for a memorandum of understanding outlining how they plan to work with NLC.  formal land transfer will occur by the end of the financial year however a licence to operate on the land to enable as much work as possible to take place as to not hold up the construction of either Lake 1is in place.  The primary focus is on the discharge of planning conditions, understanding the permits from the EA and conducting the final detailed surveys of the site.  The project would expect to defray circa £400k this financial year.

Outputs

All project contracts contain direct output targets however they are also encouraged to report on wider impacts as per the monitoring and evaluation framework. Many of the outputs will be delivered in the long-term however we can report that the following outputs have been achieved as at quarter 3 period December 17:-  298 completed Housing units  3.32 Hectares Land reclaimed  6 new Jobs with 39 jobs safeguarded  2908 Sq. metres Commercial Floor Space  80 businesses supported  378 Learners supported  £1.9million of additional leverage

Spend

The programme is currently forecasting £9.5m (£1.4m related to Lincoln Transport Hub) in expenditure for this financial year and actual expenditure to the end of Quarter 3 totaled £2.426Million (15.45% of the required £15.7m government forecast).

The wider picture is that:-

 Projects have evidenced £6.5Million however £4million this has been evidenced against advance payments and are not reflected in outturn.  £4.3million of proposed yearly spend is within uncontracted projects.  We had already identified that higher spend levels were likely in Q4.

We are still identifying a minimum gap of £6.1m which are to be considered as part of its freedoms and flexibilities, as per options endorsed at the September Investment Board to help prevent an underspend situation.

We have released £13.5million in advance payments and have recouped just over £6million through evidenced claims. Forecasts for 2018/19 continue to exceed

Page 75 agreed government targets; hence the LEP intends to begin to significantly rebalance existing offset figures.

The table below provides the latest programme overview:-

ACTUAL FORECAST

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Total ALL Years TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL

SLGF Allocation 26,400,000 47,863,787 15,687,335 8,733,858 6,809,606 18,153,052 123,647,638 Project spend 17,901,011 38,359,044 9,526,999 20,386,572 21,902,444 15,571,568 123,647,638 Offset used - (298,990) - (11,652,714) (6,351,020) (18,302,724) Offset gained 8,498,990 9,803,734 - - - - 18,302,724 GAP - - (6,160,336) - 8,741,818 2,581,484 -

The programme is currently 66% (£81.6million) contracted against the agreed allocation of £123million.

There is clearly a challenge in the next two months to help all projects maximise their spend and deliver against the contractual spend targets. All projects will be asked to submit a claim in early March detailing actual spend to February and estimated spend to the end of March. This has helped in previous years to direct our support in an appropriate way.

We continue to support the LEP in contracting of projects and implementing the agreed Freedom and Flexibilities.

Year End

As per previous years we will produce a financial report which covers all the finances that the Accountable Body holds on behalf of the LEP. Both Assurance Lincolnshire as our Internal Audit team and Streets LLP as the LEP's external auditors will check the relevant information and provide assurance prior to sign off and publishing.

We expect this exercise to be completed in May 2018.

2. Conclusion

The Accountable Body team continues to provide a robust environment in which the LEP operates and the single local growth fund projects are in the main progressing well into delivery.

We will continue to work with the LEP to ensure that projects progress to contractual agreements in order to support the delivery of our strategic priorities.

Page 76 3. Consultation

a) Have Risks and Impact Analysis been carried out? N/A

b) Risks and Impact Analysis

N/A

4. Appendices

These are listed below and attached at the back of the report Appendix A Growth Deal Dashboard

Appendix B Growth Deal Project Summary Report

5. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Linsay Hill Pritchard, who can be contacted on 01522 550632 or [email protected]

Page 77 This page is intentionally left blank Growth Deal Dashboard

LEP Name Greater Lincolnshire LEP Growth Deal Performance Area lead comments

SLGF allocation for 17/18 is 15.7 million although the figures below do not take account of the 3million allocated to Lincoln Transport Hub through DFT. Recent profiles show that we have an identified underspend this financial year and we have reported to board who have agreed mitigation measures to move us toward hitting the target. Spend does appear low in % terms but it is worth to note that we are in the cycle of rebalancing some advance payments and higher intervention rate This Quarter: Q2_1718 AG payments made in the previous financial year. We have already identified that the majority of spend will occur in the final quarter of this year. We are working with projects to improve our reporting around contractual committments and will be updating this section in later reporting periods. You will also note that we continue to identify 2 higher risk projects and both projects are required to report formally to board on a 6 monthly basis.

Deliverables Progress Financial Progress

Financial Year 2015-16 2016-17 17-18 18-19 19-20 20-21 Total This Quarter 15-17 Total LGF Award Housing 17-18 18-19 19-20 20-21 21-25 £26,400,000 £39,863,787 £12,687,335 £8,733,858 £6,809,606 £18,153,052 £112,647,638 Houses Completed 43 0 144 0 0 0 - - 144 Forecast for year 455 - 455 566 896 675 5,023 7,615 Financial Year 15-17 Total Progress towards forecast 9% - 32% 0% 0% 0% - - 2% LGF Outturn This Quarter 17-18 18-19 19-20 20-21 Actual £ 974,711 £ 46,524,178 £ 1,197,704 £ - £ - £ - £ 47,721,882 Jobs Forecast for year £ 8,252,961 £ 46,524,178 £ 8,252,961 £ 18,914,836 £ 18,756,360 £ 20,199,303 £ 112,647,638 Jobs Created 0 0 6 0 0 0 - - 6 Progress towards forecast 12% 15% 0% 0% 0% 42% Apprenticeships Created* 0 0 0 0 0 0 - - 0 Jobs including Apprenticeships 0 0 6 0 0 0 6 LGF Expenditure Forecast for year 302 - 302 526 1,427 2,627 7,969 12,851 Actual £ 3,449,440 £ 36,605,631 £ 4,469,505 £ - £ - £ - £ 41,075,136 Progress towards forecast 0% - 2% 0% 0% 0% 0% - 0% Forecast for year £ 15,315,589 £ 34,980,339 £ 15,315,589 £ 23,796,048 £ 18,356,359 £ 20,199,303 £ 112,647,638 * Apprenticeships included within jobs totals prior to 2017 Progress towards forecast 23% 29% 0% 0% 0% 36%

Skills Non-LGF Expenditure Area of new or improved floorspace (m2) 0 0 0 0 0 0 - - 0 Actual £ 12,520,502 £ 45,471,567 £ 18,381,000 £ - £ - £ - £ 63,852,567 Forecast for year 0 - 0 0 0 0 6,025 6,025 Forecast for year £ - £ 45,471,567 £ - £ 65,891,508 £ 39,885,489 £ 47,523,296 £ 198,771,860 Progress towards forecast ------0% Progress towards forecast - - 0% 0% 0% 32%

Number of New Learners Assisted 0 0 378 0 0 0 - - 378 Total LGF + non-LGF Expenditure Forecast for year 700 - 700 350 350 437 3,550 5,387 Actual £ 15,969,942 £ 82,077,198 £ 22,850,505 £ - £ - £ - £ 104,927,703 Progress towards forecast 0% - 54% 0% 0% 0% - - 7% Forecast for year £ 15,315,589 £ 82,077,198 £ 15,315,589 £ 89,687,556 £ 58,241,848 £ 67,722,599 £ 313,044,790 Progress towards forecast 104% +149% +0% +0% +0% 34% Transport Length of Road Resurfaced 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0 Length of Newly Built Road 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0 Length New Cycle Ways 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0 Page 79 Page Project RAG Ratings Contractual Commitments (manual entry) Previous Quarter This Quarter Previous Quarter This Quarter 15-17 17-18 18-19 19-20 20-21 Total Project Name Q1_1718 Q2_1718 Project Name Q1_1718 Q2_1718 Forecast £ 34,980,339 £ 15,315,589 £ 23,796,048 £ 18,356,359 £ 20,199,303 £ 112,647,638 Actual £ 36,605,631 £ 36,605,631 Grantham Southern Relief Road R R - - - Variance +5% -100% -100% -100% -100% -68% Boston Quadrant Infrastruture Programme A A - - - Boole Technology Centre G G - - - Unlocking Rural Housing G AG - - - Commentary Bishop Burton College Lincolnshire Showground RiseholmeAG Campus G - - - Tentercroft Street Growth Corridor Phases 1 and 2 G G - - - Lincoln Transport Hub G G - - - Skegness Countryside Business Park R R - - - Go Skegness Sustainable Transport G G - - - Access to Employment Zones G G - - - Normanby Enterprise Park AG AG - - - Northern Roundabout Junction N/A N/A - - - South Humber Infrastructure Investment Programme (SHIIP)G A - - - Lincolnshire Lakes Lake 1 AG A - - - Agri-Food Centre of Excellence N/A N/A - - - Holbeach Peppermint Junction AG G - - - Scunthorpe Town Centre N/A N/A - - - A46-A15 N/A N/A - - - Sleaford Growth Project N/A N/A - - - Sutterton Roundabout G G - - - Grantham Technology and innovation Centre N/A N/A - - - Gainsborough Growth N/A N/A - - - Skills Capital Investment Fund N/A N/A - - - Section 151 Officer Approved GL Centre of Medical Science N/A N/A - - - Name Advanced Engineering R and D Centre N/A N/A - - - Food Enterprise Zones N/A N/A - - - Signature SLGF Balance N/A N/A ------Date ------Growth Deal Dashboard

LEP Name Greater Lincolnshire LEP Growth Deal Performance Area lead comments

This Quarter: Q3_1718 AG

Deliverables Progress Financial Progress

Financial Year 2015-16 2016-17 17-18 18-19 19-20 20-21 Total This Quarter 15-17 Total LGF Award Housing 17-18 18-19 19-20 20-21 21-25 £26,400,000 £39,863,787 £12,687,335 £8,733,858 £6,809,606 £18,153,052 £112,647,638 Houses Completed 154 0 298 0 0 0 - - 298 Forecast for year 455 - 455 566 896 675 5,023 7,615 Financial Year 15-17 Total Progress towards forecast 34% - 65% 0% 0% 0% - - 4% LGF Outturn This Quarter 17-18 18-19 19-20 20-21 Actual £ 1,228,400 £ 46,524,178 £ 2,426,104 £ - £ - £ - £ 48,950,282 Jobs Forecast for year £ 8,252,961 £ 46,524,178 £ 8,252,961 £ 18,914,836 £ 18,756,360 £ 20,199,303 £ 112,647,638 Jobs Created 0 0 6 0 0 0 - - 6 Progress towards forecast 15% 29% 0% 0% 0% 43% Apprenticeships Created* 0 0 0 0 0 0 - - 0 Jobs including Apprenticeships 0 0 6 0 0 0 6 LGF Expenditure Forecast for year 302 - 302 526 1,427 2,627 7,969 12,851 Actual £ 2,039,622 £ 36,605,631 £ 6,509,127 £ - £ - £ - £ 43,114,758 Progress towards forecast 0% - 2% 0% 0% 0% 0% - 0% Forecast for year £ 15,315,589 £ 34,980,339 £ 15,315,589 £ 23,796,048 £ 18,356,359 £ 20,199,303 £ 112,647,638 * Apprenticeships included within jobs totals prior to 2017 Progress towards forecast 13% 43% 0% 0% 0% 38%

Skills Non-LGF Expenditure Area of new or improved floorspace (m2) 0 0 0 0 0 0 - - 0 Actual £ 13,002,066 £ 45,471,567 £ 31,383,066 £ - £ - £ - £ 76,854,633 Forecast for year 0 - 0 0 0 0 6,025 6,025 Forecast for year £ 48,623,854 £ 45,471,567 £ 48,623,854 £ 65,891,508 £ 39,885,489 £ 47,523,296 £ 247,395,714 Progress towards forecast ------0% Progress towards forecast 27% 65% 0% 0% 0% 31%

Number of New Learners Assisted 0 0 378 0 0 0 - - 378 Total LGF + non-LGF Expenditure Forecast for year 700 - 700 350 350 437 3,550 5,387 Actual £ 15,041,688 £ 82,077,198 £ 37,892,193 £ - £ - £ - £ 119,969,391 Progress towards forecast 0% - 54% 0% 0% 0% - - 7% Forecast for year £ 63,939,443 £ 82,077,198 £ 63,939,443 £ 89,687,556 £ 58,241,848 £ 67,722,599 £ 361,668,644 Progress towards forecast 24% +59% +0% +0% +0% 33% Transport Length of Road Resurfaced 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0 Length of Newly Built Road 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0 Length New Cycle Ways 0.0 0.0 0.0 0.0 0.0 0.0 - - 0.0

Project RAG Ratings Contractual Commitments (manual entry) Page 80 Page Previous Quarter This Quarter Previous Quarter This Quarter 15-17 17-18 18-19 19-20 20-21 Total Project Name Q2_1718 Q3_1718 Project Name Q2_1718 Q3_1718 Forecast £ 34,980,339 £ 15,315,589 £ 23,796,048 £ 18,356,359 £ 20,199,303 £ 112,647,638 Actual £ 36,605,631 £ 36,605,631 Grantham Southern Relief Road R R - - - Variance +5% -100% -100% -100% -100% -68% Boston Quadrant Infrastruture Programme A A - - - Boole Technology Centre G G - - - Unlocking Rural Housing AG AG - - - Commentary Bishop Burton College Lincolnshire Showground RiseholmeG Campus G - - - Tentercroft Street Growth Corridor Phases 1 and 2 G G - - - Lincoln Transport Hub G G - - - Skegness Countryside Business Park R R - - - Go Skegness Sustainable Transport G G - - - Access to Employment Zones G G - - - Normanby Enterprise Park AG AG - - - Northern Roundabout Junction N/A N/A - - - South Humber Infrastructure Investment Programme (SHIIP)A A - - - Lincolnshire Lakes Lake 1 A R - - - DRAFT Agri-Food Centre of Excellence N/A N/A - - - Holbeach Peppermint Junction G G - - - Scunthorpe Town Centre N/A N/A - - - A46-A15 N/A N/A - - - Sleaford Growth Project N/A N/A - - - Sutterton Roundabout G G - - - Grantham Technology and innovation Centre N/A N/A - - - Gainsborough Growth N/A N/A - - - Skills Capital Investment Fund N/A N/A - - - Section 151 Officer Approved GL Centre of Medical Science N/A N/A - - - Name Advanced Engineering R and D Centre N/A N/A - - - Food Enterprise Zones N/A N/A - - - Signature SLGF Balance N/A N/A ------Date ------Growth Deal Project Summary Report

Name Summary progress

The project is complete and we have received evidence in full for the leverage, Tentercroft Street Phases 1 and 2 employment land and businesses safeguarded outputs. The project is still to evidence

11 jobs and these should be evidenced by the end of this financial year.

The project is complete and we have received evidence for the majority of outputs

relating to the previous financial year. The project is set to provide a project evaluation

as per their contract and further outputs are set to be evidenced by year end specifically Bishop Burton around learners and jobs.

Page 81 Page

The project is complete and we have received evidence in full for the leverage, employment floorspace and for 15 businesses supported. The remaining outputs are still to be claimed and quarterly updates will be provided against these targets by the Boole Technology Centre project. The Project manager provided the Finance and Audit Committee with a tour of the facility where members got to meet and talk with a number of the tenants.

We have received evidence for £5.6million private sector leverage. The remainder of this leverage plus other contracted outputs will be evidenced as the project progresses.

The AB attended a monitoring visit towards the end of last year to assess works and discuss project progress. Boston Quadrant There has been some slippage on overall project expenditure into 2018/19. Despite this works do continue to progress well on site. Recent works completed include the initial leg of the distributor road including the site roundabout for stage 1. Planned activities include completion of the remaining leg of the distributor road, drainage works including off-site foul drainage connections and service works on-going with off-site connections programmed to be completed for all services.

The project is nearing completion and has over achieved on the public/private sector leverage output. Further outputs are not due to be evidenced until 2020/21.

A monitoring visit was held last November which included a site visit on the variety of components of the project. This project is progressing very well and completed works to date include works at Sea Lane/Roman Bank junction near Fantasy Island to move the Go Skegness bus stop, realign kerbs, widen crossing points and increase junction capacity.

Final planned works include construction works to continue on Spirewic Avenues to

Page 82 Page Butlins east side and the Chapel St Leonard's coastal footway/cycleway link (this part of the project is a joint project being delivered by LCC's Countryside Service team).

As reported previously the project has been considerably delayed and remains as a high risk status however the project remains on track to meet the revised spend profile agreed in November 2017. Many of the key project deliverables are dependent on third party involvement and agreement, which has a bearing on the ability to progress some aspects of the project until such matters are, resolved e.g. land acquisition, approvals from other bodies etc.

The fundamental milestones are in relation to progressing the project to a point where GSRR Orders can be published for the scheme. This work has progressed so that Orders are being prepared for publishing in February 2018. Other work streams including full technical approval, land acquisitions and the Section 6 Agreement with Highways England (HE) were all on the critical path to enable the publishing of those orders. These work streams remain critical but the detailed documentation required for these processes are all progressing.

The AB now attends regular project review meetings to continually assess the status for the project and support where necessary.

The LEP Investment Board approved £1,279,000 of Growth Deal Funding towards Phase 1 of the Skegness Gateway Scheme and an allocation of £2,721,000 has been provisionally approved for Phase 2 subject to future due diligence. Skegness Gateway Development

(formally Skegness Countryside The current contract for Skegness Countryside Business Park will be formally Business Park) withdrawn and a new contract drawn up for the agreed new project. This will be completed in unison given the previous release of monies to the scheme.

The project is nearing completion

The AB attended a monitoring visit at the end of November last year and was shown

Page 83 Page around both the car park and bus station. It was noted that the project was progressing very well. Since then, the bus station has opened and all works to St Marys Street, Oxford Street and the new link road are complete and are now open to the public. Grounds 1-3 of the new car park opened to the public on Friday 17th November 2017 in time for the Lincoln Christmas light switch on and ground 4 opened on 7th December Lincoln Transport Hub 2017 in time for the Christmas market.

The AB also attended an open day/tour on 19th January just ahead of the bus station opening to the public. The remaining floor of the car park is due to be opened before the end of March.

We are beginning to capture the direct outputs on the project and output achievement remains on target.

The project has drawn down the full £2 m grant funding with £3m evidenced spend and continues to work with land owners in order to unlock the economic potential of SHIIP Phase 1 industrial development land in the North east Lincolnshire area of the Humber Estuary.

The project was hopeful that planning for one of the sites would go out by the end of January 2018 and have been in lengthy negotiations with all other land owners for all sites involved in this project.

There are eight land owners with whom land take agreements (approx. 122.5 hectares) are required. 2 have been completed and 6 are currently being negotiated The project has been classed as Amber in risk as we keep a watching brief on the land acquisitions that will enable the habitat works to progress in full. Both the Growth Deal manager and the AB met with the applicant in November to assess the delay in milestones and a further meeting will be scheduled for March 18.

The project is in the early stages of work with site investigation, site clearance and fees

Page 84 Page being the primary spend. Full costings are yet to be conformed and we would envisage a revised profile in April 2018. Updated milestones have been provided and include: SHIIP Phase 2  planning application to be finalised and submitted,  tender package to be released following planning.

Construction work is scheduled for July 2018.

Progress with the Lincolnshire Lakes scheme had been delayed with regard the required land transfers which were meant to take place in November 2017. This raised concerns around the progress of the other elements of the scheme and hence it was flagged as higher risk in Q3. A meeting was held in late January by all parties to ensure the project was brought back on track given the amount of funding invested. Lincolnshire Lakes Lake 1 Development We can update that

 access to the land has been confirmed with the land owners with draft heads of terms for a memorandum of understanding outlining how they plan to work with NLC.  formal land transfer will occur by the end of the financial year however a licence to operate on the land to enable as much work as possible to take place as to not hold up the construction of either Lake 1is in place.  The primary focus is on the discharge of planning conditions, understanding the permits from the EA and conducting the final detailed surveys of the site.  The project would expect to defray circa £400k this financial year.

North Lincolnshire Council (NLC) has approached the LEP with a request for an alteration to the road alignment in order to accommodate requirements for a potential investor. Variations to contract forms have been sent to NLC and we will assess the proposed changes in due course.

Normandy Enterprise Park 7 (NEP 7) The applicant is confident that these are minor changes and the project will be delivered under the existing construction tender, with costs remaining unchanged. Page 85 Page The project is not forecast to spend any money within the 2017/18 period.

There are 9 contracts that under Unlocking Rural Housing Programme. 4 are now physically complete with a further 5 due to be complete this year. Outputs delivered and evidenced to date include 250 new homes, £4.6 million public sector leverage and £30.8m private sector leverage.

Unlocking Rural Housing Various monitoring visits have been attended by the AB for these nine schemes each showing successful results. Just a few weeks ago, the AB attended a pre-launch event for the Boston Quadrant scheme: Further details can be found at Boston Quadrant Housing Scheme

Having recently been contracted the project is in the early stages of delivery.

Access to Employment Zones Toll Bar A public consultation was held in October last year following the concerns raised over Phase 1 the safety of the scheme. North East Lincolnshire Council worked with all partners to discuss and resolve any concerns via a partnership working group.

A special meeting of the Cabinet was held on 31st January 2018 to discuss all options and following the meeting it was agreed to proceed with the implementation of a signalised crossroads junction with appropriate pedestrian/cycle safety measures.

Despite some initial delays, the project plans to claim £400,000 for detailed deigns costs this financial year and works on site are due to start in June 2018 with an 8 month construction period. £500,000 of Growth Deal will be spent in 2018/19.

The project is now physically complete and the final £257,585 grant is due to be claimed in Quarter 4. Most of the private/public sector leverage has been evidenced though the claims and the other contractual outputs are due to be claimed in future years.

Page 86 Page The project will  Increase road safety and reduced risk of collision  Alleviate town-centre congestion by making access to the A17 safer, easier and faster than the current junction Holbeach Peppermint Junction  Encourage housing growth by providing safe, convenient access to up to 900 new homes to the east of the A151  Support employment opportunities and the local economy by providing safe, convenient access for up to 20 hectares of employment land west of the A151

Following the opening of Holbeach Peppermint Junction, steady progress has been made towards the new Peppermint Park Food Enterprise Zone. This project will create new employment space for the agri-food sector in South Lincolnshire as well as the construction of up to 650 new homes on adjacent land.

This project was recently contracted however covered mainly retrospective costs. The works comprised parts of the A16/A17 Strategic Highways, which links to the mid-South Sutterton Roundabout Lincolnshire corridor; A17 Newark to Kings Lynn.

The project is due to deliver outputs as follows:  £84,000 public sector leverage  243 jobs created  1180 new homes created

Some public sector leverage has been claimed to date, the remainder of this and the other outputs are due to be claimed at a later date. As part of the project monitoring, it was also agreed that over time LCC will monitor the traffic flow as a result of the Sutterton Roundabout Improvements and they will provide the GLLEP with a report on impact over a five year period.

This project has submitted one claim to date and £750,865 of grant was paid against this. The only outstanding works are some remedial works which are due to be carried this month and a claim submitted before the end of the financial year. Page 87 Page The Accountable Body will continue to monitor the projects through the quarterly claims, progress reports and monitoring visits.

This page is intentionally left blank Agenda Item 11

Policy and Scrutiny

Open Report on behalf of Richard Wills, Executive Director for Environment and Economy

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Subject: Peppermint Park - Delivery of Food Enterprise Zone

Summary: This report invites the Environment and Economy Scrutiny Committee to consider a report on the Peppermint Park Food Enterprise Zone which is due to be considered by the Executive Councillor for Economy and Place on 2 March 2018.

The views of the Scrutiny Committee will be reported to the Executive Councillor as part of his consideration of this item.

Actions Required: 1) To consider the attached report and to determine whether the Committee supports the recommendation(s) to the Executive Councillor as set out in the report.

2) To agree any additional comments to be passed to the Executive Councillor in relation to this item.

1. Background

The Executive Councillor for Economy and Place is due to consider a report on the Peppermint Park Food Enterprise Zone. The full report to the Executive is attached (Appendix 1) to this report.

2. Conclusion

Following consideration of the attached report, the Committee is requested to consider whether it supports the recommendation(s) in the report and whether it wishes to make any additional comments to the Executive Councillor.

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3. Appendices

These are listed below and attached at the back of the report APPENDIX 1 Peppermint Park Food Enterprise Zone (I015183) (TO FOLLOW)

4. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Simon Wright, who can be contacted on 07827 820467 or [email protected]

Page 90 Agenda Item 12

Policy and Scrutiny

Open Report on behalf of Richard Wills, Director responsible for Democratic Services

Report to: Environment and Economy Scrutiny Committee Date: 27 February 2018 Environment and Economy Scrutiny Committee Work Subject: Programme KeyDecision decision? Reference: No Summary: This item enables the Committee to consider and comment on the content of its work programme for the coming year to ensure that scrutiny activity is focused where it can be of greatest benefit. The work programme will be reviewed at each meeting of the Committee to ensure that its contents are still relevant and will add value to the work of the Council and partners.

Members are encouraged to highlight items that could be included for consideration in the work programme.

Actions Required: Members of the Committee are invited to: 1) Review, consider and comment on the work programme as set out in Appendix A to this report.

2) Highlight for discussion any additional scrutiny activity which could be included for consideration in the work programme.

1. Background

Overview and Scrutiny should be positive, constructive, independent, fair and open. The scrutiny process should be challenging, as its aim is to identify areas for improvement. Scrutiny activity should be targeted, focused and timely and include issues of corporate and local importance, where scrutiny activity can influence and add value.

Overview and scrutiny committees should not, as a general rule, involve themselves in relatively minor matters or individual cases, particularly where there are other processes, which can handle these issues more effectively.

All members of overview and scrutiny committees are encouraged to bring forward important items of community interest to the committee whilst recognising that not all items will be taken up depending on available resource.

Page 91 Committee Scope

The Environment and Economy Scrutiny Committee combines two areas of responsibility (Protecting & Sustaining the Environment, Sustaining & Growing Business & the Economy) to provide an opportunity to join these areas and encourage a more holistic approach and a greater focus on strategic outcomes. There is a clear logic to this arrangement as environment and economy are directly connected to supporting growth.

As part of its terms of reference, the Environment and Economy Scrutiny Committee will work to review and scrutinise the following services and their outcomes:  environment and growth, including:  carbon management  the natural and built environment  sustainable planning and the historic environment  growth and access  economic development projects including broadband  waste management, including waste recovery and recycling  skills and employability  support to business and growth sectors  business investment  attracting funding for Lincolnshire, including the Greater Lincolnshire Local Enterprise Partnership

There will inevitably be service specific subjects that the scrutiny committee will want to consider, either through policy development, project updates, or through pre-decision scrutiny.

There will also be a number of strategic considerations which span both environment and economy. It is likely that those areas which require strategic consideration will include but not be limited to the following:

Coast – taking a holistic approach to coastal issues. This should combine various partners' interests (especially Environment Agency) as well as achieving a balance between flood risk management and the exploitation of coastal assets for tourism and leisure purposes.

Water – Lincolnshire County Council, Greater Lincolnshire Local Enterprise Partnership, and other partners have worked on a water management plan, which was launched in the House of Commons last year. The water management plan is closely linked to Lincolnshire's Joint Flood Risk and Drainage Management Strategy, focusing on those strategic elements of our broader approach to managing water which can make a critical difference in promoting economic growth. The plan has been well received by government officials and local business and it is now an appropriate time for LCC and the LEP to take the plan into its implementation stage.

Page 92 Visitor economy – Lincolnshire's visitor economy has several strengths, but the natural environment and associated heritage is one of the most prominent strengths. Our historical importance, from Magna Carta and the Battle of Lincoln Fair through to the anniversary of the Pilgrim Fathers setting sail all provide opportunities to strengthen the visitor economy.

Members may also wish to note that environmental and economic issues should not be considered in isolation. There is a strong connection between investments in highway infrastructure and growth, between support for school age children and the wider skills agenda, and the relationship between the council's own heritage assets and the visitor economy. These will require a relationship with the Highways and Transport, Children and Young People, and Public Protection and Communities Scrutiny Committee's respectively.

Purpose of Scrutiny Activity

Set out below are the definitions used to describe the types of scrutiny, relating to the items on the Committee Work Programme:

Policy Development - The Committee is involved in the development of policy, usually at an early stage, where a range of options are being considered.

Pre-Decision Scrutiny - The Committee is scrutinising a proposal, prior to a decision on the proposal by the Executive, the Executive Councillor or a senior officer.

Policy Review - The Committee is reviewing the implementation of policy, to consider the success, impact, outcomes and performance.

Performance Scrutiny - The Committee is scrutinising periodic performance, issue specific performance or external inspection reports.

Consultation - The Committee is responding to (or making arrangements to) respond to a consultation, either formally or informally. This includes pre- consultation engagement.

Budget Scrutiny - The Committee is scrutinising the previous year’s budget, or the current year’s budget or proposals for the future year’s budget.

Requests for specific items for information should be dealt with by other means, for instance briefing papers to members.

Page 93 Identifying Topics

Selecting the right topics where scrutiny can add value is essential in order for scrutiny to be a positive influence on the work of the Council. Members may wish to consider the following questions when highlighting potential topics for discussion to the committee:-

 Will Scrutiny input add value? Is there a clear objective for scrutinising the topic, what are the identifiable benefits and what is the likelihood of achieving a desired outcome?

 Is the topic a concern to local residents? Does the topic have a potential impact for one or more section(s) of the local population?

 Is the topic a Council or partner priority area? Does the topic relate to council corporate priority areas and is there a high level of budgetary commitment to the service/policy area?

 Are there relevant external factors relating to the issue? Is the topic a central government priority area or is it a result of new government guidance or legislation?

Scrutiny Review Activity

Where a topic requires more in-depth consideration, the Committee may commission a Scrutiny Panel to undertake a Scrutiny Review, subject to the availability of resources and approval of the Overview and Scrutiny Management Board. The Committee may also establish a maximum of two working groups at any one time, comprising a group of members from the committee.

2. Conclusion

The Committee’s work programme for the coming year is attached at Appendix A to this report. A list of all upcoming Forward Plan decisions relating to the Committee is also attached at Appendix B.

Members of the Committee are invited to review, consider and comment on the work programme as set out in Appendix A and highlight for discussion any additional scrutiny activity which could be included for consideration in the work programme. Consideration should be given to the items included in the work programme as well as any 'items to be programmed' listed.

Page 94

3. Consultation a) Have Risks and Impact Analysis been carried out? Not Applicable b) Risks and Impact Analysis Not Applicable

4. Appendices

These are listed below and attached at the back of the report Appendix A Environment and Economy Scrutiny Committee – Work Programme Appendix B Forward Plan of Decisions relating to the Environment and Economy Scrutiny Committee

5. Background Papers

No background papers within Section 100D of the Local Government Act 1972 were used in the preparation of this report.

This report was written by Daniel Steel, Scrutiny Officer, who can be contacted on 01522 552102 or by e-mail at [email protected] .

Page 95 This page is intentionally left blank APPENDIX A

Environment and Economy Scrutiny Committee

27 FEBRUARY 2018 – 10:00am Item Contributor Purpose Peppermint Park - the delivery Simon Wright, Principal Officer - PRE-DECISION SCRUTINY of the Food Enterprise Zone Regeneration Executive Councillor – 02 March 2018

Quarter 3 Performance Report Justin Brown, Commissioner for Review of the Key Performance (1 October to 31 December Economic Growth, David and Customer Satisfaction 2017) Hickman, Growth and Information. Environment Commissioner Environmental Services Chris Miller, Environmental Analysis of property holdings Property Review Services Team Leader within the Environmental (Countryside Services) Services Section

Hotel Strategy Mary Powell, Tourism Manager Review of the results of the hotel feasibility study and on the progress made in attracting hotel developers to the region as a result of the supporting evidence the study provided. Future bids for EU funding Susannah Lewis, Principal Review of current situation with Commissioning Officer (Funding) regards to Future bids for EU funding Greater Lincolnshire Local Linsay Hill Pritchard, Principal To scrutinise performance of the Enterprise Partnership – Commissioning Officer projects funded by greater Accountable Body Progress Lincolnshire LEP (NB. Report Lincolnshire County Council is the accountable body for the GLLEP)

Anglian Water's Draft Water David Hickman, Growth & Consideration of the Anglian Resources Management Plan Environment Commissioner Water Draft Water Resources Management Plan consultation to enable direct member input while the consultation is live.

10 APRIL 2018 – 10:00am Item Contributor Purpose A Green Future: 25 Year Plan David Hickman, Growth & Consideration of the to Improve the Environment Environment Commissioner Governments 25 Year Environment Plan to help the natural world regain and retain good health. Implementing the Outcomes of Andy Brooks, Commissioning the Utility Study Manager (Regeneration Programme)

Page 97 10 APRIL 2018 – 10:00am Item Contributor Purpose Updating the Joint Flood Risk David Hickman, Growth & To shape the second edition of and Drainage Management Environment Commissioner Lincolnshire Joint Flood Risk Strategy Strategy, with particular focus on integrating economic and environmental benefits Capital Board Business Cases Jade Elkington, Justin Brown, Commissioner for Economic Growth Joint Municipal Waste Matthew Michell, Senior Management Strategy Commissioning Officer (Waste)

22 MAY 2018 – 10.00am Item Contributor Purpose Quarter 4 Performance Report Justin Brown, Commissioner for Review of the Key Performance (1 January to 31 March 2018) Economic Growth; David and Customer Satisfaction Hickman, Growth and Information Environment Commissioner Co-commissioning Historic David Hickman, Growth & To shape development of a more Environment Services environment Commissioner integrated approach to LCC services relating to the historic environment. Rural Broadband Provision Steve Brookes Lincolnshire Broadband Programme Manager

10 JULY 2018 – 10.00am Item Contributor Purpose Greater Lincolnshire Local Justin Brown, Commissioner for Review of the initial work Industrial Strategy Economic Growth; Ruth Carver, undertaken on the Greater Commissioning Manager (LEP) Lincolnshire Local Industrial Strategy

18 SEPTEMBER 2018 – 10.00am Item Contributor Purpose Quarter 1 Performance Report Justin Brown, Enterprise Review of the Key Performance (1 April to 30 June 2018) Commissioner; David Hickman, and Customer Satisfaction Growth and Environment Information Commissioner

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30 OCTOBER 2018 – 10.00am Item Contributor Purpose Greater Lincolnshire Local Justin Brown, Commissioner for Review of the work undertaken Industrial Strategy Economic Growth; Ruth Carver, on the Greater Lincolnshire Local Commissioning Manager (LEP) Industrial Strategy

27 NOVEMBER 2018 – 10.00am Item Contributor Purpose Quarter 2 Performance Report Justin Brown, Commissioner for Review of the Key Performance (1 July to 30 September 2018) Economic Growth, David and Customer Satisfaction Hickman, Growth and Information. Environment Commissioner

Items to be programmed

 Third Carbon Management Plan - Vanessa Strange, Accessibility and Growth Manager  Rural Broadband Provision - Steve Brookes Lincolnshire Broadband Programme Manager

For more information about the work of the Environment and Economy Scrutiny Committee please contact Daniel Steel, Scrutiny Officer on 01522 552102 or by e-mail at [email protected]

Page 99 APPENDIX B

Forward Plan of Decisions relating to the Environment and Economy Scrutiny Committee

DEC REF MATTERS FOR DATE OF DECISION PEOPLE/GROUPS DOCUMENTS HOW AND WHEN TO RESPONSIBLE KEY DIVISIONS DECISION DECISION MAKER CONSULTED PRIOR TO TO BE COMMENT PRIOR TO PORTFOLIO HOLDER DECISION AFFECTED DECISION SUBMITTED THE DECISION BEING AND CHIEF OFFICER YES/NO FOR TAKEN DECISION

I015183 Peppermint Park - 2 March Executive Environment and Economy Exempt Report Simon Wright - Principal Executive Councillor: Yes Holbeach New! Delivery of Food 2018 Councillor: Scrutiny Committee Officer, Regeneration Tel: Economy and Place Enterprise Zone Economy and 07827 820467 e-mail: and Executive Director Place simon.wright@lincolnshir for Environment and e.gov.uk Economy I015013 Lincolnshire Wolds 4 April Executive Environment and Economy Report Team Leader - Executive Councillor: Yes Ingoldmells Rural; Area of Outstanding 2018 Scrutiny Committee; Countryside Services Commercial and Louth North; Louth Natural Beauty Lincolnshire Wolds Area of Email: Environmental South; Louth Page 100 Page Management Plan Outstanding Natural Beauty chris.miller@lincolnshire. Management and Wolds; Market 2018-2023 - Public Partnership – Joint gov.uk Tel: 01522 Executive Director for Rasen Wolds; Consultation Advisory Committee and 553091 Environment and Woodhall Spa and Joint Management Group Economy Wragby (including other relevant local authorities and Natural England); relevant Parish and Town Council; local landowners and community representatives; general public (via Have Your Say); and formal consultation