Agenda item

(Report by Mr K Lynes, Cabinet Member for Regeneration and Economic Development and Mr D Cockburn, Corporate Director, Business Strategy and Support)

(Mr R Gill, Economic Strategy and Policy Manager was present for this item)

1.               Mr Lynes introduced the report highlighting that the Local Enterprise Partnership (LEP) received government endorsement in the Autumn 2010 and was now fully established with a Board and a smaller Executive Group now in place. The LEP was chaired by the recently appointed Chairman, John Spence.

2.               Kent had successfully secured £40million Regional Growth Fund investment in its bud “Expansion East Kent”, which would provide finance to businesses in Canterbury, Dover, Shepway and Thanet and support enhancements to the Ashford-Ramsgate rail route.  Mr Lynes also spoke on the Regional Growth Fund (RGF) grant awarded to Vesta in its wind turbine manufacturing in Sheerness.

3.               Mr Lynes announced that the Enterprise Zone designation had been secured for the Discovery Park, formerly Pfizer site, at Sandwich, which would mean a business rate discount worth up to £55k per year discount for any business locating onto the site.

4.               In response to a question, Mr Gill advised that Pfizer was in confidential negotiations with two interested parties about the sale of the site.

5.               In reply to a question, Mr Gill explained that the empty property rate was a complicated issue, especially in trying to make a case for the removal of the empty property rate or increasing the time.  It would be possible to use Pfizer as a case study as this was a national issue.

6.               In answer to a question, Mr Gill gave an example of how the RGF could be used.  “If an engineering company employed 9 people and needed to purchase machinery to improve access to employing more staff the RGF could give half of the funding and the applicant would have to find the other 50%, which had to be private funding. 

7.               In reply to further questions as to whether there were enough businesses and whether this would prevent straight relocation in East Kent, Mr Gill explained that we had to be assured that the application was genuine through the set appraisal. He agreed that this was a lot of money that had to be spent in 2 years.  The RGF could be used by existing businesses to set up in Kent if they were employing more people through relocating. 

8.               In answer to questions, Mr Gill advised that it was not know if this funding could be used for loans as it was a grant scheme.  Ms Cooper explained that officers were busy refining the process as there was no additional funding to administer the delivery of the scheme.  She reassured Members that banks were committed to the RGF.  Kent’s target was to establish 5000 jobs and considered that this was the best opportunity for East Kent.

9.               Mr Gill advised that it was anticipated that the government would be announcing a further investment programme Growing Places Fund (GFP).  This would be a £500 million national pot.  The intention is that the GPF is used to fund local recyclable funds.  It was not clear what the process would be but Mr Gill considered that the appraisal for projects would be complex.

10.           In reply to a question, Mr Gill said that in general this would include capital enhancement for property but he would need to check against the schemes guidelines and report back outside the meeting. 

11.           Mr Gill advised that 2 to 3 grant advisors would be appointed and each applicant would be allocated an advisor to guide them through the informal and formal process.

12.           RESOLVED that the information in the report and to Members be noted, with thanks.