Agenda item

To receive a report by Cabinet Member for Economic Development and the Corporate Director for Growth, Environment and Transport that explains the proposed governance arrangements to manage funding received from the Local Growth Fund and asks the cabinet committee to consider and endorse or make recommendations on the proposed Cabinet Member decision

1.            Mr R Gill introduced the paper and explained that the County Council was responding to a recommendation contained within a recent review of governance for the South East Local Enterprise Partnership (LEP). This proposed the establishment of an accountability board, on the basis set out in the report, as the current governance arrangements were based on informal partnerships. Mr Carter added that the Kent and Medway Economic Partnership had stated its intention to apply to become a LEP for Kent and Medway, replacing the existing South East arrangements. Planning for and establishing governance arrangements had been fraught with difficulties, particularly in respect of the transport programme. Government funding would be spread over six years and would be dependent upon securing additional funding through developer contributions. In addition, the County Council was exposed to risk in respect of any overspend which might arise. It was therefore important that the County Council protect itself as far as possible by putting in place measures to ensure that its transport programme was delivered on time and on budget, and that regular reports were made to this Committee and to the Environment and Transport Cabinet Committee so progress could be monitored.  Mr Carter also noted that the County Council had a proven track record of delivering several major transport schemes over the past 20 - 25 years.

2.             Mr Carter, Mrs Cooper and Mr Gill responded to comments and questions from Members, as follows:-

a)    in response to a question about the background to the current informal arrangements and how these might change in the immediate future, following the General Election on 7 May, Mr Gill explained that, when the Government had launched LEPs in 2010, there had been no clear, prescribed guidance for their governance, and no supporting legislation. Most LEPs had therefore been set up as informal partnerships. However, as more Government funding had been channelled to local projects via LEPs, more robust governance was required, and only a few LEPs still retained purely informal arrangements.  Mrs Cooper added that, as Kent had an extensive transport programme, it needed to be ready to move ahead promptly now as the first few transport schemes to be funded via the LEP were being considered by the Environment and Transport Cabinet Committee;

b)    in response to a comment that the LEP arrangements had been unworkable from the outset and that measures added to try to improve them had only added complexity, Mr Carter said that a Kent and Medway LEP could help to resolve this and would still be one of the largest LEPs in England. However, within the current LEP structure, the proposal within the report offered a workable solution;

c)    another speaker emphasised that the proposed Joint Committee would make an important contribution to devolution as it would support and strengthen local decision-making about local funding; and

d)    Mr Gill clarified that the accountability board would be established and work alongside the LEP and would not replace it.

3.            The Chairman proposed, and it was generally agreed, that regular update reports be made to this Committee to allow it to monitor the working of the new partnership arrangements.

4.            RESOLVED that:-

a)    the decision proposed to be taken by the Leader of the Council, to agree to the establishment of a Joint Committee together with East Sussex County Council, Essex County Council, Medway Council, Thurrock Council and Southend-on-Sea Borough Council, for the purposes of the management of the Local Growth Fund and other funds which may be directed by Government to the South East Local Enterprise Partnership, subject to the continuation of that Partnership, and subject to further consideration at County Council on 21 May, be endorsed; and

b)    regular update reports be made to this Committee to allow it to monitor the working of the new partnership arrangements.