Agenda item

To receive a report  by the Cabinet Member for Economic Development that details progress since the submission of the Strategic Economic Plan and the European Structural and Investment Funds Strategy. It explains the next steps in the potential allocation of funding, recognising the ‘federated’ model operating in the South East LEP area. It also sets out a proposal for the final revision of Unlocking the Potential, the economic strategy for Kent and Medway, in the light of anticipated funding announcements.

(Report by Mr M Dance, Cabinet Member for Economic Development)

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

1.            The Cabinet Member for Economic Development, Mr Dance, introduced the report by thanking Mr Gill for all his work undertaken in Kent’s bid for funding from the Local Growth Fund.

2.            Mr Gill highlighted that the Government announced the Local Growth Fund allocation on Friday, 4 July 2014.  The South East Local Enterprise area; Kent, Essex Medway and East Sussex had secured a total of £442 million in Local Growth Fund across a six year period, of which, £84 million was committed for 2015/16.  This was approximately pro rata the allocation expected.  SELEP’s total bid was for £1.1 billion. The £442 million was allocated largely to the Transport Schemes, which was given a high priority on our agenda by the Kent and Medway Economic Partnership.  Mr Gill tabled a paper, attached to these Minutes, which listed the specific schemes that secured Local Growth Fund money totalling £133 million.

3.            Mr Gill highlighted that there was a £6 million allocation for Kent and Medway Growth Hub which was intended as a central mechanism to improve business support across the County; sign posting and improving access to the access to finance schemes.  A report would be submitted to the Cabinet Committee in the future on the emerging propositions to taking that forward.

4.            Mr Gill then spoke on the issues that were yet to be clarified which included how the funding would flow and the nature of the contracts. Consideration would also need to be given on how this worked within a federated model for the Local Enterprise Partnership (LEP).

5.            There were proposals for funding for land and property interventions but the government was not minded to support, which was consistent across the LEP area.  There were suggestions that there may be further funding that could be bid for later in the year.  If this opportunity arose a report would be submitted to this Cabinet Committee.  There was also funding of £22 million to improve the Further Education Capital Estate.

6.            Mr Gill responded to comments and questions by Members which included the following:

a)    In response to questions, Mr Gill advised the government had more interest in those schemes that started in 2015/16 as they want to see delivery.  The schemes listed on page 103 of the report were those schemes that were national schemes and would be those that the Highways Agency (HA) would be responsible.  The government had used some local growth fund money in some cases to contribute to HA schemes and M2 Junction 10a was part of that.  It was disappointing that there was no reference in the text to M2 Junction.  Ms Cooper advised that A2 Bean and A2 Ebbsfleet were on a budget line, it was just junction 5 that was not. 

b)    In reply to a question, Mrs Cooper advised that many of the Local Plan District Plans were helped by the government’s announcements, such as Maidstone Integrated Transport and Sturry Link Road, Canterbury.  For others the impact of the announcements needs to be considered such as Swale. 

c)    Ms Cooper advised that the response to the Maidstone Local Plan regarding Leeds and Langley By-Pass would be within the remit of the Environment and Transport Cabinet Committee portfolio.

d)    Mr Gill advised that a full profile was submitted up to and beyond 2021 in terms of completion of the schemes, so there was an awareness of when those schemes should happen but this had not yet been reconciled with the figures received.

e)    A comment was made regarding the funding allocated to Thanet Parkway to deliver a new railway station was a success for Thanet.

7.            RESOLVED that:-

a)    the responses to comments and questions by Members be noted; and

b)    the anticipated next steps in securing Local Growth Fund, European Structural Fund resources and in taking forward Unlocking the Potential  be reported to a future meeting of this Cabinet Committee and the report be noted.