Agenda item

(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)

A report from Justin Brown (Commissioner for Economic Development) was considered, which provided an update from the Accountable Body on the progress of the Single Local Growth Fund operated on behalf of Greater Lincolnshire Local Enterprise Partnership (LEP).

The Committee was advised that Lincolnshire County Council had continued to deliver the Accountable Body service for the Greater Lincolnshire LEP. The County Council administered all funding on behalf of the LEP including their core funding, other core contributions, growth hub, loan funding with the predominant fund derived from the Growth Deal, all of which formed the basis of the Committee's report.

To date the Accountable Body had received £89.9 million of Single Growth Fund (Growth Deal).  The Accountable Body held 23 contracts to the value of £232 million in total project costs, levering in £151.4 million of further investment having allocated £80.6 million of the Growth deal monies received.

It was explained that as part of the ongoing transparency the Accountable Body produced an Annual Financial Report, which detailed all funds held on behalf of the LEP.  The report included a financial summary with accompanying notes and was fully audited by Assurance Lincolnshire and externally by Street Audit LLP.  The report summarised what had been achieved in 2016/17, as detailed on page 210 of the agenda pack. 

The Committee was directed to page 212 of the agenda pack, where it was stated that having reviewed the overall Growth Deal programme, and taking into account approval and delivery of Growth Deal 3 schemes, it was clear that the 2017/18 growth deal expenditure target would not be fully achieved without utilising further free and flexibilities.  The shortfall at the time of reporting was expected to be in the region of £6 million.  The report detailed four potential solutions, which could assist the LEP in achieving the 2017/18 target, as detailed below: -

·       Seeking further Lincolnshire County Council capital spend within 2017/18 seeking to release the related net budget against further Single Local Growth Fund;

·       Seeking to pay the amount of the skills capital pot as an advance "programme";

·       Seeking to advance pay for local authority capital projects for them to then release secured capital budget to projects; and

·       Collaboration with LEP areas that were overspending against target.

The Committee's views were sought on the four potential solutions, which covered the following areas: -

·       It was confirmed that each of the four solutions, as detailed above, were legally compliant, and this approach had been endorsed by Government;

·       A member of the Committee expressed his preference for the first solution to be used as the preferred option, with the third option being used as the second preferred option;

·       It was confirmed that 30 of the 38 LEPs across the country were also experience the same issue; and

·       A member of the Committee expressed his preference for option 3 not being taken forward.

The Project Officer – Accountable Body provided the Committee with an update with some of the current projects.  A full project update was provided at Appendix A to the report.

A member of the Committee queried the wording of the first sentence under the project update on the Skegness Countryside Business Park (page 213 of the agenda pack, paragraph 5 refers).  Further to this, the Commissioner for Economic Development agreed to address this issue outside the meeting with the Member of the Committee.

RESOLVED

(1)  That the current progress made on the Growth Deal Programme for Greater Lincolnshire and the Committee's comments be noted.

(2)  That the role of Lincolnshire County Council as Accountable Body of the Single Local Growth Fund be supported.

(3)  That the delegation to S151 Officer (Executive Director for Finance and Public Protection), in consultation with the Enterprise Commissioner (Environment and Economy), the implementation of measures to secure all funding for the 2017/18 period, be supported.