Agenda item

Sir Paul Carter and Mr Martyn Riley (Project Manager) were in attendance for this item.

1.          Mr Murphy provided a brief introduction and welcomed Sir Paul Carter, Chairman of the Kent and Medway Business Fund Committee to the meeting.

2.          Sir Paul Carter provided an overview of the achievements of the Kent and Medway Business Fund since its inception in Kent.  He reflected on the history of the fund, including its performance and track record, and the future of the scheme. 

3.          Mr Riley introduced the Kent and Medway Business Fund bi-annual monitoring report on the progress of the Kent and Medway Business Fund. He referred to the summary of the report which included figures up to the end of September 2022. 

4.          Mr Riley, Mr Murphy, and Sir Paul Carter responded to the following questions and comments from Members:

(a)  Members commented on the success of the scheme for both the Council and businesses, and its benefit to Kent’s economy including the creation and protection of jobs.

(b)  Members discussed the importance of publicising and raising awareness of the scheme, within relevant networks, to suitable businesses.

(c)  Asked about equity investments in businesses, whether owners provided personal guarantees, and whether the exits so far from equity investments had been successful, Sir Paul Carter said security was not asked for and a couple of the equity schemes had significant potential, with one being partially exited with a reasonable return on investment. He said future success would depend on the global economy and highlighted, in particular, the life sciences area which showed potential for positive outcomes. 

(d)  Asked about the varying costs across Kent in terms of the creation and protection of jobs, Mr Riley said the difference in cost reflected the different sectors and use of investment.  For example, the tourism industry could produce more jobs compared to a sector that required capital for machinery.  Mr Riley said it was difficult to influence how investment was spent but the use of apprenticeships was encouraged.

(e)  Asked whether there was a forum for businesses involved in the scheme, Mr Riley said links were established based on monitoring information and where potential was identified, for example, companies where production was similar or where complementary services could be beneficial.  A newsletter was circulated regularly to raise awareness of achievements on the loan scheme. Mr Murphy referred to partner organisations, for example, Produced in Kent and Locate in Kent, as a way of reaching out to businesses and the Council’s work with the Kent Chamber of Commerce and Institute of Directors. 

5.    Mr Riley presented a series of slides (attached to these minutes) and provided a summary of the report by SQW - Evaluation of the Kent and Medway Business Fund - which looked at the achievements of the scheme and its future.

6.    Mr Riley responded to the following questions and comments from Members:

(a)  Asked about the initial amount of funding from government and the current value of loans outstanding, Mr Riley said the original allocation from government was £55m and the majority had been allocated to loan and equity schemes. Mr Riley said, going forward, it would be possible to provide an estimate based on agreements in place. He said there was an extensive focus on debt recovery and acknowledged that rising interest rates would have an impact on the loan scheme.

(b)  Members recognised the positive approach of potential businesses providing interactive presentations in person, and the benefit in having the opportunity to ask questions and obtain feedback.

7.    The Chair thanked all Members and officers involved in the success of the scheme so far.

RESOLVED that the Cabinet Committee notes the report.