Background:
On 10th June 2020, the Government made a call to Local Enterprise Partnerships (LEP) for shovel-ready schemes which were able to spend in the next 18 months, as a way to stimulate economic recovery and help mitigate the impact that COVID-19 has had on employment levels.
Consequently, the South East Local Enterprise Partnership (SELEP), via the Kent and Medway Economic Partnership (KMEP), wrote to local stakeholders (including KCC) asking for their shovel-ready scheme suggestions. All forthcoming proposals were then submitted to Government, via SELEP, on 18th June 2020. The accumulated total of these SELEP suggestions equalled £573m.
On 3rd July 2020, the Government informed the South East Local Enterprise Partnership (SELEP) that it would receive £85million of ‘Getting Building Fund’ (GBF) to deliver ‘shovel-ready’ schemes. GBF is capital grant funding.
The Government asked SELEP to prioritise its original scheme suggestions for inclusion within the £85m funding envelope. The SELEP Strategic Board met on 16th July 2020 to make its decision.
The SELEP Strategic Board confirmed seven Kent projects to be included within the £85m ask of Government. Four of these projects are to be delivered by third-party promoters and are covered by Decision 20/00086. Three projects are to be delivered directly by Kent County Council. These KCC schemes are:
Project Title
|
Project Title |
Impact on existing KCC scheme |
GBF ask |
Existing Decision Number |
|
Digitally Connecting Rural Kent & Medway |
Extends the Kent Top-Up Voucher scheme, so more businesses and residents in rural areas may apply |
£2,290,152 |
18/00024(a) |
|
Thanet Parkway Railway Station |
Secures and accelerates delivery with contributions from a range of sources including reduced KCC capital commitment. |
£11,999,000 |
19/00085 |
|
Javelin Way Development |
Accelerates the delivery of the scheme and mitigates the impact COVID-19 had on the timeline. |
£578,724 |
17/00119 |
The approval of Ministers to SELEP’s £85m list is awaited.
If Ministerial approval is granted, the business cases for these KCC projects will be presented to the SELEP Accountability Board in September, October or November 2020 for their approval of the funding award.
Subject to the necessary approvals being granted, SELEP will require Kent County Council to enter into a grant agreement with Essex County Council (which is SELEP’s accountable body) for all schemes awarded GBF by SELEP within KCC’s administrative boundary.
This key decision is therefore required to enable grant agreements to be entered into, so that additional Government funding may be secured for these Kent County Council projects from the Getting Building Fund.
Options (other options considered but discarded)
If Kent County Council were to choose to not enter into a grant agreement for the GBF projects selected by the SELEP Strategic Board, the GBF funding could be either (i) retained by central government or (ii) reallocated to other projects by the SELEP Strategic Board, not necessarily within Kent and Medway.
It is not clear at the time of writing if the project would be in Kent’s geographical area, or from another area of the SELEP.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: Recommendations Approved
Division affected: (All Division);
Notice of proposed decision first published: 05/08/2020
Decision due: Not before 3rd Sep 2020 by Leader of the Council
Reason: In order that the proposed decision can be published for a minimum of 28 days in accordance to statutory requirements
Lead member: Leader of the Council
Lead director: David Smith
Department: Growth, Environment & Transport
Contact: Sarah Nurden, Kent and Medway Economic Partnership's Strategic Programme Manager 03000 416 518 Email: sarah.nurden@kent.gov.uk Tel: 03000 416 518.
Consultation process
The Growth, Economic Development and Communities Cabinet Committee were consulted on:
· the Kent Top-Up voucher scheme on 9 May 2018
· the Javelin Way project on 21 November 2017
The Cabinet Committee consultation planned:
· Environment and Transport Cabinet Committee on 15 September 2020
· Growth, Economic Development and Communities Cabinet Committee on 25 September 2020
Financial implications: Kent County Council will enter into the following capital grant agreements for the amounts specified: Project Title and GBF ask: Digitally Connecting Rural Kent & Medway - £2,290,152 Thanet Parkway Railway Station - £11,999,000 Javelin Way Development - £578,724 The GBF capital grant funding is provided by the Government via SELEP. It is not KCC funding. The Government has specified that the GBF must be spent by 31 March 2022 or there is a potential that the funding will be clawed back. Appropriate project management oversight is being directed to these projects to minimise this risk.
Legal implications: The grant agreements give Kent County Council the legal and financial responsibility for ensuring the proper use and administration of the funding in accordance with the terms and conditions.
Equalities implications: Equalities implications: Each project will prepare an EqIA, which is a condition of their business case receiving SELEP Accountability Board approval. Data Protection implications: DPIA is not required, as personal data is not included in the grant agreements or project business cases.