Decision details

In 2015/16, the Government made £254,000 available to Kent and Medway, via the South East Local Enterprise Partnership, to deliver a new ‘Growth Hub’ service, offering businesses a central point of information about the support that is available to them. A pilot service was launched in December, and the Government has since announced that funding for the Growth Hub service will be maintained for the next two years.

To supplement the Growth Hub service with a wider programme of free, easily accessible support to start-up and growing businesses, KCC has joined a partnership with the other authorities in the South East LEP area to seek funding from the ERDF programme to deliver the South East Business Boost (SEBB) project. As well as advisory support, this also includes a grant programme, to which businesses may apply.

If approved, the SEBB project will operate across Kent and Medway, Essex and East Sussex, with Southend-on-Sea Council acting as the accountable body. The total amount of ERDF funding sought is £6.1 million, of which £1.2 million will be managed by KCC.

Approval of the SEBB project is anticipated in late spring 2016.

Options

Three alternative options have been considered:

a)   Do nothing. This would mean that the core Growth Hub service would be delivered using central Government funding, but there would be no provision for business advisory support, despite frequent views from business that an advice and support service would be helpful;

b)   Submit an individual application to ERDF. This would mean that KCC could receive funding direct, rather than as a partnership with other authorities in the LEP area. This could provide KCC with greater control; however, it is unlikely to be successful, given the specification of the ERDF call for projects.

c)    Seek central management of the SEBB project, without delegated funds to KCC. This could be simpler to manage, and would reduce the risks to KCC. However, it would limit our ability to align the new service with other local support services, including the Growth Hub.

Links with Increasing Opportunities, Improving Outcomes

The SEBB project directly contributes to Strategic Outcome 2: ‘Kent communities feel the benefits of economic growth by being in work, healthy and enjoying a good quality of life’. Specifically, it contributes to the Supporting Outcome that business growth is supported. It does this by providing advice to businesses, helping them to increase their growth potential.

The Cabinet Member for Economic Development has agreed to:

(a)  grant funding of up to £1.2 million revenue to deliver the programme; and

(b)  delegate to the Director of Economic Development the authority to sign a grant offer letter as required on behalf of KCC.