Confirmed minutes of the SEMLEP Board Meeting Wednesday 25 September 2019 10:00 – 13:35 Cranfield Innovation Centre, University Way Cranfield, MK43 0BT
Private sector Peter Horrocks CBE, Chair Board Directors: Mary Clarke, Private sector Board Director and Private sector Deputy Chair Yvette Lamidey, Business Locksmith Neus Garriock, Galliford Try Jon Corbett, Barclays Bank Jean Gowin, CityFibre David Bailey, Private Sector Board Director Rachel Mallows MBE DL – The Mallows Company David Sheridan, Europa Components
Public sector Cllr Richard Wenham, Central Bedfordshire Council and Public sector Board Directors: Deputy Chair Mayor Dave Hodgson MBE, Bedford Borough Council Cllr Hazel Simmons MBE, Luton Borough Council Cllr Moriah Priestley, Milton Keynes Council (Deputy for Cllr Peter Marland) – arrived at 10:19 Cllr Jonathan Nunn, Northampton Borough Council – arrived at 10:15 Cllr Matthew Golby, Northamptonshire County Council
Higher/Further Dr Julie Mills OBE, Milton Keynes College Education representative Board Directors:
Accountable Darren Lambert, - Luton Borough Council Body representative:
Observers: David Ward, VCSE Observer Mike Todman, BEIS Paul Kellett, BEIS Contributors: Naomi Green, EEH – For item 45.6 only Daniel Lindsay, Hatch Regeneris – For item 45.9b only
SEMLEP Hilary Chipping, Chief Executive Officer Executive Team: Judith Barker, Director of Programmes and Governance
Apologies: Sir Peter Gregson, Cranfield University Dr Kerry Mashford OBE, Interfacing Cllr Peter Marland, Milton Keynes Council Cllr Ian McCord, South Northants Council Cllr Martin Griffiths, Borough Council of Wellingborough Brian Binley, BCC Marketing Services Ltd Cllr Barry Wood, Observer - Cherwell District Council Quorum Private sector Directors: 4 Public sector Directors: 4 required:
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Agenda Item No Action 45.1 Introductions and apologies
PH welcomed everyone to the meeting and noted the that Cllr Moriah Priestley was attending as a deputy for Cllr Peter Marland.
Apologies were noted as above.
PH outlined formal proceedings and expectations of Board members during meetings.
The definition of a declaration/conflict of interest was clarified and the chair reminded members of the Interests policy and its implementation.
45.2 Declarations of interest
PH noted the Registers of Interest are published on the website and asked for any other interests to be declared now and throughout the meeting.
Cllr RW declared an interest in M1 A6 and Dunstable High Street which would be discussed under item 45.9b. 45.3 Minutes of the Board meeting held on 17 July 2019
PH asked for any comments.
YL noted on page 9 it should read ‘YL was concerned’ rather than LN to ‘confirmed’. amend
The minutes were confirmed as a true record. 45.4 Actions Log
It was confirmed that all actions had been completed or would be covered as agenda items. 45.5 Implementation of Local Industrial Strategy and Proposal to establish new LIS Implementation Group
Following the successful publication of a Local Industrial Strategy for the South East Midlands on 19 July; attention is now focussed on implementing the Strategy. If SEMLEP is to be successful in achieving these LIS commitments, we need to secure buy-in from local partners across the SEMLEP area.
SEMLEP are working on a detailed schedule of commitments to take forwards which includes a timeline and how to assess the outcome of commitments. The plan will go to the 27 November Board meeting.
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A steering group was proposed and the Board discussed the membership of the steering group:
It was suggested to amend recommendation ii. to reflect Public Sector Board Directors joining the sub-committee.
It was noted it is critical to get businesses involved in implementing the LIS via the ambassadors and sector groups.
Cllr Matt G suggested a Northamptonshire representative from the Unitary Strategic Board.
Dr JM advised that collectively, must ensure existing plans are aligned and closed down and a new plan is in place to take forward.
MT volunteered to join the group.
DW reported that from his experience of sitting on sub-committees, it is very helpful to have a lead for each commitment for SEMLEP staff to liaise directly with to enable proposals to be discussed and formulated before coming to meetings for decision. PH noted the suggestions were all very helpful and confirmed a tracker table for accountability and deliverability will be created.
The Board agreed the following recommendations subject to the amendment to add public sector to ii:
i. To consider how to ensure that the LIS is embedded across HC to work and owned by the whole of the South East Midlands with PH to partnership. set up the ii. To agree a proposal to establish a new LIS Implementation Steering Sub-Committee with private and public sector Board members Group and local authority officers to oversee the implementation of the LIS. iii. Provide views on the proposed approach to developing an Implementation Plan for the Local Industrial Strategy (LIS). iv. Note that for some commitments SEMLEP’s role is one of facilitation rather than direct delivery and that some LIS commitments will require further funding if they are to be realised.
45.6 England’s Economic Heartland Outline Transport Strategy
Mayor DH provided a brief outline before Naomi Green from EEH joined the meeting to give a presentation. Copies are available from SEMLEP.
Questions following the presentation:
MC asked what assumptions, if any, had been made on HS2.
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NGreen advised that no assumptions had been made but conversations with local authority partners are ongoing. NG & DS to DS asked about the delays in planning permission for key infrastructure. discuss NGreen advised EEH will work with local authorities on a case by case history basis to see what can be done to push things through. behind DS concern
Cllr RW asked what the assumptions are for level 5 autonomous vehicles. NGreen advised EEH are working closely with experts on this but also more widely to deal with the congestion challenge. NGreen reported EEH are trying to strike the difficult balance between short term and future needs for an area.
NG expressed that the 2050 zero-carbon target has now been accepted by everyone but 2050 is a bit too late, can it be brought down to 2030 or 2040? NGreen advised they need to understand what is achievable first and then have a detailed conversation.
YL noted that affordability of decarbonising small business caused immense problems when it was introduced in London. We need to support business to understand the need to plan long term for their businesses when they are starting up. We have great bus services, but they do not support people who do shift work. The routes might go to residential area but do not fit within distance of the workplace if it is out of town or on industrial estates which is a barrier for young people getting to work.
NGreen explained EEH are going to the MK Youth forum in November. They will be launching a Vison 2050 competition via local colleges to ask students how they see the transport network in the future. They will try to capture the views and impacts of young people.
DB stated it is an excellent piece of work and noted that no projects are ever delivered on time and within budget. DB suggested to look at behavioural and social change before technology change. NGreen acknowledged and advised they are hoping to discuss this given supermarkets experience.
Dr JM said the personas are great but drew attention to diversity especially that it is not inclusive of new migrants and young people
Cllr MP suggested to map economic infrastructure in a place in addition to transport and hard infrastructure would help to ensure the key link between economic development and transport links.
NGreen highlighted that EEH are not yet a statutory body but are moving towards it.
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Mayor DH asked colleagues to submit any further comments or ideas via the website.
45.7 Oxford – Cambridge Arc
Arc Leaders Group update
Cllr RW informed the Board a workshop is taking place on Friday 27 September where there will be a further discussion on forming a non- statutory spatial strategy and budget. Concerns were raised at the previous meeting regarding duplicating data and emphasis reinforced to access and use existing data.
MT acknowledged there was a concern regarding the amount of work that had been devoted to developing projects that could be supported through a spending review and noted the work had not been forgotten and government are keen to develop projects with us to feed into a future Comprehensive Spending Review..
Central Area Growth Board update
HC explained this was initially chaired by Cllr Peter Marland but Cllr Ian McCord had taken on the role of chair with Cllr Peter Marland as deputy chair.
There was lots of activity during August with Kris Krasnowski asking the Board to think about projects to be put forward if a fiscal event should take place in September. The event did not happen, however it enabled officers to work together to establish a pipeline of projects for the future.
HC reported there are established work streams across the Arc: Connectivity (through the EEH work), productivity, environment and place groups. Government indicated over the summer that they were placing more emphasis on Growth Boards. There are ongoing discussions regarding future opportunities and future funding streams directly to Growth Boards. Officers supporting the Central Area Growth Board will be meeting with MHCLG to discuss further the possibility of a single pot of funding.
Following discussions a few months ago regarding commissioning an infrastructure study for projects needed across the area to unlock jobs and homes, Homes England have approved a £95K budget for the central area to deliver the infrastructure assessment. This will put the central area in a good position for building up a pipeline of future projects.
There is a meeting taking place on the 8 October to take this work forwards and to revisit the Terms of Reference of the membership.
45.8 Forward Planning
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Exiting the EU
HC confirmed that there is significant funding available for Brexit preparedness support and SEMLEP have been identified as the cluster lead for growth hubs across the Oxford to Cambridge Arc and New Anglia LEP. SEMLEP will use different channels such as business advisers and Chambers to get the messages out, building on to events already taking place and setting up its own.
HC reported she is liaising with Richard Carr from Central Bedfordshire Council, who is leading for Local authorities in the East of England to avoid duplication and to share intelligence from the LEP perspective.
HC highlighted that the business advisers are focusing on this short-term activity rather than long term growth hub work as Ministers have advised this is what they are expecting of LEP’s in the short term.
MT affirmed this point and noted the Cabinet Secretary has written to all civil servants confirming that this is government’s primary priority at the moment.
MT thanked SEMLEP for the event on the 16 September which received positive feedback whereby people left feeling much better prepared than when they arrived.
Mayor DH suggested HC should liaise with the leads for the other three HC to liaise regions also. with all leads RM recently held a Food and Drink Strategy Board with specific things to be disseminated via the Growth Hub. RM asked MT if other sectors are holding events.
MT verified there is engagement with industrial councils and sector groups at a national level with focus and engagement in the haulage and logistics sector where issues are anticipated. A weekly report is submitted to Michael Gove. MT referred colleagues to the Yellowhammer document on gov.uk.
Preparing for Spending Review
Covered in earlier item. 45.9 Items arising at Growth Funds Task Group for information and decision
Annual Delivery Report
HC explained that the ADP was published in May and this was a mid-year review. A revised version of the report was now available which showed 4 categories as amber rather than green. These were:
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• Stakeholder strategy • Equality and diversity update • Digital skills network • Maximising spend on LGF by March 2021
This reflects that although there is strong progress, there is still some risk. The Board approved the revised version. MDH suggested that if the delivery date is changed, there should be a strikethrough of the old date and the new delivery date added beside it to show a history of dates for audit.
LGF Projects to be delivered in 2019/20
Cllr HS declared an interest in the M1 A6 project.
JB outlined the format of the items: the first paper outlines the current programme position and project approvals. The second paper outlines the proposal for a bidding round to commence this autumn.
JB provided an update on the overall programme position which the Growth Funds Task Group review at each meeting. For this financial year the funding available is £44.8M. 15 funding agreements for 2019/20 have been issued worth just less than £39M which is 86% of the total sum available this year.
SEMLEP are continuing to work to conclude the last details of the remaining funding agreements and allocate the remaining sum to the newly approved and existing projects to maximise full spend by March 2020. The Growth Funds Task Group will review again on 8 November and a report will go to the Board at the 27 November meeting.
The final year of the programme will be 2020/21 and at this stage we have allocated £78M when the DfT retained funds are added to that pot. The profile is challenging to deliver spend.
There are some indications of flexibility from Government; both from Cities and Local Growth Unit and also from DfT as it relates to their retained schemes. The Executive will work with Government Departments to look at possible roll over into following year or maybe arranging a capital swap into 2021/22.
MT reported that this will be discussed at the mid-year review next week but keen for a meeting with the Accountable Body and DfT to work through the programme and look at options.
High Risk projects
Central Bedfordshire Council led M1 A6 scheme will be reviewed at a special Growth Funds Task Group teleconference on the 11 October and the intention is to take a report to the November Board meeting to ensure
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appropriate decisions and mitigations are considered, with reports on flexibility position available.
Northampton North West relief road
It is intended to discuss this at the 27 November Board meeting as the full business case is due to be submitted on the 4 October. The Growth Funds Task Group will review on the 8 November and then a decision will go to the 27 November Board. SEMLEP have been assured by Northampton colleagues that everything is on track for submission on the 4 October.
2018 Bidding Round Project Approval Requests
3 projects are recommended from the 13 September Growth Fund Task Group to the Board for full approval:
• Houghton Brook Flood Relief Scheme - £1M • Dunstable High Street - £2.5M • Hydroponics - £4.5M
It was noted that one project, Silverstone Sports Innovation Campus, has withdrawn due to state aid issues - the team will continue to work to redevelop for a future opportunity.
Daniel Lindsay from Hatch Regeneris provided a presentation on the due diligence reports and the issues arising to allow the recommendations to be considered.
Questions following the presentation:
Dunstable High Street
DS asked if there will be an increase in footfall, what options have been considered for additional parking?
Cllr RW clarified that Central Bedfordshire Council owns much of the off- street parking in Dunstable and carries out regular reviews. There is a surplus in off-street parking and CBC are looking at making more on street parking in residential zones available.
MT asked if the project is complimentary with the Heritage project.
JB to raise at a meeting with Central Bedfordshire Council next week.
There was some discussion on the relationship with the de-trunking of the A5 and how this worked in the appraisal.
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Hydroponics
Cllr Matt G confirmed his support and was pleased that due diligence had been completed to consider the Ofsted report.
JC clarified that the Growth Funds Task Group had a debate regarding this and reinforced that although it is on Moulton’s land, they are not delivering the project.
RM added that Moulton play a key role locally in terms of skills development for the Food and Drink sector.
JB confirmed she has seen their Improvement plan detailing how issues have been addressed and evidence of further steps they have in place.
Dr JM drew attention to the fact that skills are an essential part to funding the training and skills centre.
DS shared concern regarding the £9.5M equity.
JB provided assurance that Blue Sky have carried out financial due diligence and the offer is subject to conditions. Post approval, JB will be meeting with them and will instruct them on this matter.
The Board agreed the following recommendations: i. Note the wider LGF programme position and request updates to the November meetings ii. Approve £1M of LGF funding for Houghton Brook Flood Relief Scheme iii. Approve £2.5M of LGF funding for Dunstable High Street iv. Approve £4.5M of LGF funding for H2Organics for the Hydroponics National Training and Skills Centre with the conditions stated in the circulated paper
Options for new bidding round
The Growth Funds Task Group and Board reviewed options in July and concluded that proposals should come forward to the September meeting cycle. On 13 September, the Growth Funds Task Group recommended that the Board should approve an autumn bidding round.
£13M has been identified (mindful this figure may change due to other circumstances). SEMLEP have been successful in previously delivering full spend and are continuing to aim to maximise full spend again this year.
The proposed bidding round will broadly have a similar strategic alignment as to last year: Value for money, Impact and Deliverability but to have a stronger steer to the LIS commitments. The Executive are broadly
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anticipating a similar process and will use the same assessment and scoring framework as last year.
The Growth Funds Task Group were of the view that the weighting of Strategic Alignment, Impact and Deliverability should remain as it did last year but there is a need to have harder evidence of deliverability – possibly set the bar higher for the level of evidence provided.
The bidding round will be open across all 13 local authorities within SEMLEP and will run as it did last year. SEMLEP will provide the maximum support it can to help them develop their bids within the constraints of resources and timing. SEMLEP will invite all partners to bid but accepts that it will be challenging to deliver in 18 months. Will need to be realistic and quickly identify projects that could deliver within the timescales
JB and HC are aware of 4/5 projects that might be able to deliver in that window and may provide a good starting point.
Following discussion, JB suggested another category may want to be added for a future pipeline for future funding opportunities.
Questions:
NG acknowledged the difficulty in striking a balance between managing a pipeline as wide as possible but still being able to deliver within the timescales.
MC noted that strong guidance must be communicated to bidders.
It was agreed that the bidding round should be used to enhance delivery of the LiS.
Dr JM pointed out it is important to help smaller projects complete the groundwork who are unable to get themselves ready to be deliverable.
Cllr MP suggested to carry out a geographic review of which bids are coming from which areas to prioritise something in the future.
The Board agreed to commence a bidding round in October 2019 to enable maximum spend of the Local Growth Fund by March 2021 and to create a pipeline of projects for future funding opportunities.
45.10 Governance
Mid-Year Review Preparation
HC explained that the mid-year review has been introduced by Government for the first time which is a process to ensure that SEMLEP are on track and preparing for the Annual Performance Review.
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SEMLEP will have its mid-year review on Monday 30 September 2019 and are hopeful that it will be a useful process on both sides.
45.11 Resources
Update following paper discussed at special meeting of FRAC
JC as the Chair of the Finance, Risk and Audit Committee reported that following a paper which had been put to the Finance, Risk and Audit Committee in June, the committee asked HC to look into challenges and questions raised by the committee.
Following a revised paper and a further review from the committee, mindful of the LGF programme, bidding round, deliverability of the LIS, Arc work and the unknown details of the Growth Curve project, the committee were satisfied and approved two new roles to be recruited. The committee suggested for job titles to be explored to ensure the end goals which are to free up the time of Chief Executive, use the resources of local authority officers where appropriate and ensure the wellbeing of the SEMLEP team are achieved.
45.12 Delivery - Report from Growth Hub Board
YL reported that things are still developing into the new model of combining the two hubs. The statistics in the circulated paper look low due to how things are counted but the Growth Hub is doing very well and the team continue to work exceptionally hard.
45.13 Sector, Committee and Enterprise Zone Updates
Proposal to contribute SEMLEP’s unallocated ERDF to the Midlands Engine Investment Fund
MC outlined that the request in the circulated paper is seeking to take forward a proposal to the ESIF sub-committee.
SEMLEP currently has European Regional Development Fund (ERDF) calls open across five priority axes to a combined value of £22.4m. It is anticipated that once the calls close on 30 September 2019 there will still be unallocated ERDF and any which have not been allocated will be transferred by the Managing Authority - MHCLG, to a National Reserve Fund and will be made available through national calls and the funding will no longer be ring-fenced for use in the SEMLEP area.
British Business Bank have indicated that they would be able to utilise unused ERDF from SEMLEP to increase the size of the equity and proof of concept funds which cover the East and South East Midlands. Dependant upon the value of ERDF available, the Bank would increase the commitment to both the East and South East Midlands Equity Fund
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and the Proof of Concept Fund with a mandate to invest this additional funding only in three of the four East and South East Midlands LEP areas (the three LEP areas in the more developed region which are SEMLEP, Leicester and Leicestershire LEP and D2N2 LEP. The minimum value is £10M – looking to make use of the unused funds.
Due to the focus of MEIF, it can only take up ERDF from: Priority Axis 1 - Innovation and R&D Priority Axis 3 - SME Competitiveness Priority Axis 4 - Low Carbon
JC stated that he is the Chair of the Midlands Engine Strategic Oversight Board and advised that it continuously monitors if it is matching ESIF contribution. The performance in the South East in terms of the take-up of available funds is generally good with more emphasis on equity rather than loans.
The SEMLEP Board agreed that the recommendation should go forward to the ESIF Sub Committee that any ERDF left unallocated after selection decisions on the current calls should be used to top up the Midlands Engine Investment Fund.
Northampton Waterside Enterprise Zone
Cllr JN provided an overview and advised more information will be reported on at the next Board meeting.
• Intending on building 17 sites with work ongoing on 7 sites to identify strong business cases to seek funding the intervention requires • Now that the relief rates have gone there is a significant amount of marketing going on: - marketing treasured areas, promoting opportunities to express interests in sites and promoting the ‘Home to’ theme supporting the Food and Drink sector.
Luton Airport Enterprise Zone
The Luton Airport Enterprise Zone Board meeting is taking place on Monday 30 September, a full report will go to the November Board meeting
Skills Advisory Panel
Dr JM explained the circulated paper sets out the roll of the advisory panel but as a Board, there is a need to understand how the panel can be used to influence. The panel has a good membership and has useful discussions, the challenge is taking that and delivering impact. PH to PH reported that he recently attended a meeting at No.10 Downing Street discuss where the possibility of a roundtable with Ministers and the Prime Minister with Dr JM was discussed and highlighted that Skills is top of their agenda.
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Dr JM pointed out there is an opportunity to think how the Chairs work YL & Dr JM with the executives to join up and work together to get the same collective to discuss view through all committees.
45.14 Feedback from Leaders and Private Sector Board not already covered and AOB.
PH thanked the Board for their contributions to the discussions and for keeping focus on the business in the room.
PH noted the positive report from BBC Look East at the opening of the Advanced Construction and Engineering Centre at Northampton College on Friday 21 September.
Report on Board Awayday
PH noted the action points on page 4 will be followed up by the LIS Steering group and progress reported back to future Board meetings.
Membership
PH asked MC as Chair of the recruitment panel to look at the make-up of MC to the Board in order to comply with the requirements of the LEP Review. consider the need to MC suggested it would be for the local authority leaders as they will have convene a a view. meeting of the AGM - 13 November 2019 Recruitment Committee PH advised that to ensure accountability and transparency, the AGM will – LN to have a broader public involvement to emphasise its public profile. support
HC emphasised the need for the Board to attend or to complete a proxy form if unable to attend to ensure the AGM is quorate.
Date of next meeting Wednesday 27 November 2019 at 10:00.
These minutes are a true and fair record of the SEMLEP Board meeting on 25 September 2019.
Signed:
Date: 27 November 2019