Issue details

Proposed decision

• Launch a new Growing Places Fund (GPF) capital loan-based funding programme for Kent.
• Act as the accountable body for projects within Kent’s geographical boundaries that are to receive GPF loan funding.
• Delegate authority to the Director of Growth and Communities in consultation with the Cabinet Member for Economic Development to take relevant actions including but not limited to approving new governance arrangements for managing the GPF programme, entering contracts and/or other legal agreement as necessary to implement the decision

Reason for the decision:

KCC has recently taken on a number of responsibilities from central government following the closure of the South East Local Enterprise Partnership (SELEP). These include the ongoing monitoring and management of legacy capital programmes previously administered by SELEP. One legacy capital programme is the Growing Places Fund (GPF). Recycled GPF loan repayments returned to KCC will enable a new Kent capital loan programme to be launched to support projects that contribute to economic growth.

Background & Context:

Since 2011, SELEP administered Growing Places loan Funding (GPF) from central government which was used to support stalled capital investments that contributed to economic growth, job creation and infrastructure improvements. SELEP used its federated boards (namely the Kent & Medway Economic Partnership (KMEP) for our region), asking them to advertise the call for GPF projects, and to advise SELEP on which GPF applications provided best strategic fit based on local intelligence and knowledge.

Following the closure of SELEP, recycled loan repayments are being disaggregated to the six upper tier local authorities in the SELEP area with the purpose of reinvesting the funds to support new capital schemes. Some £14.8m of ringfenced funding is due to be repaid to KCC over the next three financial years and can be used to launch a new programme to support new capital projects that contribute to economic growth in the county through creating jobs, making infrastructure improvements or supporting the development of local skills. New governance arrangements now need to be put in place to manage the GPF programme.

A governance paper will be taken to GEDCCC in January 25 proposing that the Kent & Medway Economic Partnership (KMEP) acts as an advisory board for KCC. This Growth Board is to provide recommendations to KCC on the eligibility criteria for the new GPF call for projects, supporting the promotion of the opportunity in an open call, and rank and prioritise the funding applications received. This ranked list of applications will then be passed to KCC for final decision to be taken by the Cabinet Member.

Options discounted:

1.  Kent County Council manages the GPF programme in-house without consultation or engagement with KMEP.

As the formal Local Growth Board for Kent & Medway, KMEP is the only forum which brings together private-sector business leaders, further education principals, higher education vice-chancellors, and all local council leaders to discuss economic growth. Each KMEP board  member brings with them specialised knowledge, expertise and skills. An option to exclude KMEP from future GPF decision-making was discounted, as that would not allow Kent to capitalise on this knowledge, expertise and skills. Furthermore, KMEP has over a decade of experience in advising on GPF funding decisions and ensuring good value for money.

2.  Return the funding to central government.

This option was discounted as the funding would not unlock further economic growth for Kent.

How the proposed decision supports Strategic Priorities:

The decision supports the strategic priorities within Framing Kent’s Future and Securing Kent’s Future.

In relation to Framing Kent’s Future, this decision will allow GPF capital loan funding to be invested into projects that will strengthen the county’s economy, help people gain the skills they need, and narrow the gaps in outcomes between different parts of Kent and between Kent and the rest of the South East. It will also ensure that there is investment in economic infrastructure.

In relation to Securing Kent’s Future, the decision adheres to Securing Kent’s Future’s requirement for full cost recovery

The decision also supports ambitions in the Kent & Medway Economic Framework to create the conditions for economic growth.