Issue details

South East Business Boost

 

 

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.

Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: Recommendations Approved

Notice of proposed decision first published: 23/02/2016

Department: Growth, Environment & Transport

Contact: 03000 417077 and 03000 417176 Email: ross.gill@kent.gov.uk Tel: 01622 221312, David Smith, Director of Economic Development Email: david.smith2@kent.gov.uk Tel: 0774 389 4252.

Consultation process

Financial implications

KCC will be accountable for funds granted to it from ERDF (£1.2 million between 2016-19). KCC will therefore need to ensure that funds are only used for eligible activities specified in the grant agreement.

 

As part of the proposal for ERDF funding, KCC has also agreed to contribute £8,580 in-kind match funding to the project.

 

Legal implications

KCC will be contractually committed to the delivery of outputs and for ensuring eligible expenditure via the ERDF grant agreement.

 

Equalities implications

The ERDF application contains an analysis of the equalities implications of the project and commits the partners to preparing an Equalities and Diversity Plan. The application also commits KCC to undertaking an Equalities Impact Assessment.

 

The project also contains actions to specifically promote entrepreneurship among groups underrepresented in the business community. This includes an Enterprise and Entrepreneurship Development Programme, offering additional workshops, coaching and one-to-one advice.

Consultees

Consultation with businesses took place in 2014/15 on new business support services. This has informed the design of the project and that of the wider Growth Hub service.

 

The proposed decision will be discussed at the Growth, Economic Development and Communities Cabinet Committee meeting on 3 March 2016

 

All Divisions and  Local Members are affected as the project will operate across Kent

Financial implications: Ross Gill Economic Strategy and Policy Manager 03000 417077 Ross.gill@kent.gov.uk David Smith Director of Economic Development 03000 417176 David.smith2@kent.gov.uk

Legal implications: 16/00022

Decisions

Agenda items

Documents