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New Anglia Local Enterprise Partnership Board Meeting

Wednesday, 19 October 2016

10.00am to 12.30pm

Snape Maltings, nr Aldeburgh, Suffolk, IP17 1SR

Agenda

1. Welcome

15 mins 2. Apologies

3. Declarations of Interest

4. Actions / Minutes from the last meeting

5. Managing Director’s Report 20 mins

6. Business Performance Reports 15 mins

7. Finance Report 15 mins

8. Devolution Report 20 mins

9. New Anglia Enterprise Zones – Progress on Delivery -

Presentation 45 mins

10. LEP Capital Investment Proposal Report - CONFIDENTIAL 15 mins

11. Updating the Strategic Economic Plan Report 25 mins

12. Any Other Business 10 mins

Date and time of next meeting:

Thursday 24 November 2016, 10.00am to 12.30pm

Hethel Engineering Centre, Chapman Way, Hethel, Norfolk, NR14 8FB

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New Anglia Board Meeting Minutes (Unconfirmed)

27th September 2016

Present:

Cllr David Ellesmere (DE) Leader, Ipswich Borough Council

Doug Field (DF) East of England Co-op

Mark Goodall (MG) Aker Solutions

Cllr John Griffiths (JG) Leader, St Edmunsbury Borough Council

Cllr Cliff Jordan (CJ) Leader, Norfolk County Council

Cllr Colin Noble (CN) Leader, Suffolk County Council

Steve Oliver (SO) MLM Group

Mark Pendlington (MP) Anglian Water (Chair)

Cllr Andrew Proctor (AP) Leader, Broadland District Council

Prof David Richardson (DR) Vice Chancellor, UEA

Lindsey Rix (LR) Aviva General Insurance

Dr Nikos Savvas (NS) Principal, West Suffolk College

Jeanette Wheeler (JW) Partner, Birketts

Dr Tim Whitley (TW) Managing Director, BT

In attendance:

Lindsay Abigail (LA) New Anglia LEP

Madeleine Coupe (MC) New Anglia LEP

Chris Dashper (CD) New Anglia LEP

Iain Dunnett (ID) New Anglia LEP

Marie Finbow (MF) New Anglia LEP

Shan Lloyd (SL) Assistant Director, BIS London & East

Hayley Mace (HM) New Anglia LEP

Emily Manser (EM) New Anglia LEP

Fiona McDiarmid (FM) Norfolk County Council

Sue Roper (SR) Suffolk County Council

Keith Spanton (KS) New Anglia LEP

Chris Starkie (CS) New Anglia LEP

Cllr Mike Stonard (MiS) For Cllr Alan Waters, Norwich City Council

Jo Wilson (JW) DWP

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Actions from the meeting: (27.09.16)

Item No:

5. Managing Director’s Report

Industrial Strategy – A copy of the submission drafted by CS to the BIS Select Committee investigation into the industrial strategy will be circulated to the Board.

MIPIM – Madeleine Coupe to circulate a copy of the MIPIM programme, key messages and visuals of the stands in advance of the event on 19-21 October.

RAF Marham - An action plan to highlight the growth potential of RAF Marham to be

created and targets set by the middle/end of October.

Companies in Financial Difficulties - Hayley Mace and Chris Dashper to liaise with the support of Lindsey Rix and the Investment Appraisal Committee to establish a strategy of support as to how information can be published for companies to access and encourage those experiencing financial difficulty to engage at an early stage.

7. Growth Deal

Doug Field (DF) requested details of pipeline projects be retained on the Growth Deal Dashboard and progress reflected in October’s Business Performance Report.

8. Productivity Commission

Productivity Commission to be discussed at the forthcoming Innovation Board on 10 October attended by Tim Whitley (TW) and David Richardson (DR) with the assistance and support of Lindsey Rix (LR). Feedback to be reported to the Board.

10. Business Performance Reports

Sectors – Board members to be invited to the launch of Culture Drives Growth on 2 November at The Jerwood Dance House, Ipswich.

CS MC CS HM/CD/LR CD TW/DR/LR MC

1 Welcome from the Chairman

Mark Pendlington (MP) welcomed everyone to the meeting, and in particular new Board members, Cllr Andrew Proctor, Leader, Broadland District Council attending his first Board Meeting since his appointment in June and Jeanette Wheeler (JW) Partner, Birketts LLP who joined the board this month. MP also welcomed Hayley Mace, Head of Communications and Engagement recently appointed to the LEP Executive Team and Jo Wilson attending on behalf of DWP.

2 Apologies

Cllr Alan Waters Leader, Norwich City Council

Davina Tanner Britannia Enterprises

3 Declarations of Interest

David Richardson – UEA Enterprise Centre; Norwich International Aviation Academy; UEA partners in education with EEEGR. Tech East and NRP Board member.

Mark Pendlington – Low Carbon Innovation Fund

Doug Field – Pasta Foods, supplier of East of England Coop; East of England Coop own Wherstead Park; East of England Coop investor in Supapass, a member of Anglia Capital Group.

Alan Waters – Board member Norwich Airport, member of Regional Arts Council.

David Ellesmere – Ipswich Borough Council owns the sugar beet site at Sproughton and land on Princes Street (Enterprise Zone), part of Museum Project for Ipswich BC.

Colin Noble – Suffolk County Council are funders of the Cornhill Regeneration Project.

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Mark Goodall – Chair and Non-Executive Director of EEEGR Ltd

Jeanette Wheeler – Birketts’ new offices on Princes Street (Enterprise Zone)

Tom Whitley – founder funder of Tech East.

4 Minutes of last meeting 20 July 2016

Actions of the last meeting updated as follows:

4. Minutes of Last Meeting

Finance Report – Communications Strategy and Brand Guidelines circulated to Board members on 12 August 2016.

6. Devolution

Board members were updated over the summer period with a further update to be discussed at today’s meeting under Agenda Item 6.

8. SEP Impact Report

Board members’ comments on the SEP impact report have been incorporated with the final document to be launched at the AGM following today’s meeting.

Ambitions Dashboard has been updated to ensure figures around Productivity are clearer and will be brought to October’s Board

. 12. Any Other Business

Investment in Companies – A formal Policy has been drafted and will be discussed under Agenda Item 5 as confidential Annex A for Board approval.

The minutes were accepted as a true record of the meeting held on 20 July 2016.

5 Managing Director’s Report

Chris Starkie (CS) introduced this item taking the paper as read and highlighted the following:

Impact of Brexit – Representatives from universities, colleges, local authority Chief Executives and local business have been contacted to participate in an information gathering exercise coordinated by the LEP; the results of which will be shared with Government colleagues in order to provide an indication of the economic mood of the area. Agreement has also been made with the East of England European Partnership in Brussels to commission a breakdown of EU funding programmes in order to assess any gaps in local investment opportunities resulting from Brexit.

European Structural Funds – Work will be undertaken to identify pipeline projects which were underway prior to the Brexit vote; this follows an announcement from the Chancellor that contracts which were in place or ready to be signed would be underwritten, further information will follow in the Autumn Statement. New Anglia’s Growth Programme has now been signed off with a Project Implementation Visit (PIV) expected from Government officials in the near future after which funding can be claimed. Additional Growth Hub Advisers are currently being recruited enabling our service to businesses expand.

Industrial Strategy – this was recently highlighted by the Prime Minister as part of the new Government’s vision to create a nation that works for all. MP is keen to involve the Board in providing some input into the LEP’s approach to support this initiative. There will be a cross-government strategy led by Greg Clarke MP and the need to identify a clear role for LEPs to play in the process. Shan Lloyd (SL) will continue to keep the Board updated of any planned events to be set up in support. CS has drafted a response to the BIS Select Committee enquiry into the industrial strategy with focus on productivity and specifically answers queries posed by the committee; a copy of the submission will be circulated to the Board.

MIPIM is the world’s leading property market event and MIPIM UK takes place London from 19-21 October. Norfolk and Suffolk will have a strong visual presence at the event

CS

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with two sizeable stands focussing on opportunities to work together collaboratively within the East. Board members would be welcome to participate; Madeleine Coupe (MC) will circulate a copy of the programme, key messages and visuals of the stands.

RAF Marham – A recent skills event hosted by Elizabeth Truss MP highlighted vast employment opportunities at the base and the significant growth potential over the next few years. In conjunction with GCGP, a taskforce will be set up with the aim of recruiting more local employees from the area. MP suggested an action plan should be created and targets set by the middle/end of October.

Transport: Ely Junction – This project is a high priority for both New Anglia and GCGP who are currently looking at business cases to assist with the improvements to this junction and resulting economic benefits. A Rail Summit took place in Westminster on 7 September which was well attended and received good media coverage. A Suffolk Rail Conference is also due to take place on 24 October in Ipswich.

The Board agreed

To note the contents of the report.

Annex 1 - Companies in financial difficulties – CONFIDENTIAL

Chris Dashper (CD) introduced this report and set out proposals of how to consistently manage requests for grants and other financial support from companies facing financial difficulty.

Following discussion, Lindsey Rix (LR) suggested guidelines be produced detailing criteria of the circumstances of when support could and couldn’t be provided; this information is given in the guidelines for grant schemes, although new publicity for these schemes is currently being considered. Hayley Mace (HM) and CD to liaise with the support of LR and the Investment Appraisal Committee to establish a strategy of support as to how this information may be published for companies to access and encourage them to engage at the early stages of any difficulties.

The Board agreed

To the recommendations outlined in the Confidential Annex with the requirement that the Investment Appraisal Committee is involved in any discussions around financial implications of regionally significant issues prior to re-engagement with the Board at a future date if necessary.

MC

CS

HM/CD/LR

6 Devolution Update

CS outlined the report and gave an update on the current progress of the Devolution consultation. Over the summer period various stakeholder events have taken place for local councillors and local residents who also received a leaflet campaign. Three business breakfasts were held in Norwich, Ipswich and Bury St Edmunds attended by over 200 business leaders and Ipsos-Mori were commissioned to undertake a telephone survey of 6,000 residents and 250 businesses. Additionally letters of support were issued by the FSB, the IoD, CBI, various education institutes and a cross section of community and voluntary groups. The consultation will now be considered by the Secretary of State and if it meets the criteria, an Order will be published to establish the Mayoral Combined Authority. It is now known that a longer period for the draft to be published will be required which should now be week commencing 21 November rather than 4 November as was previously thought. In view of this, the additional Board Meeting which was suggested to take place early November to enable the Board to consider these plans may not now be required and the plans can potentially be covered by the November Board Meeting.

Colin Noble (CN) encouraged the need for businesses to continue to lobby councillors to show their support for the deal.

The Board agreed


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7 Growth Deal

Part 1 – Review of Growth Deal Spend – Emily Manser (EM) EM updated the Board on how the LEP is managing the Growth Deal spend; formal reviews are carried out bi-annually by the P&R and Finance Committee with the first one for the current financial year taking place on 16 September. This year’s allocation totals £38.548m, with an underspend from 20-15/16 at £12.008 (via capital swap) giving a total for 2016/17 of £50.556. Three projects have been highlighted as being at risk of an underspend and mitigating action was outlined for the Board to consider. The inability to secure match-funding for the Haverhill Innovation Centre was discussed with learning points raised by David Richardson (DR) that future innovation projects should ensure they match the strategy.

Part 2 – Assessment of Projects on the Project Pipeline – Marie Finbow (MF) MF reviewed six projects on the pipeline identified to have a funding gap of between £1m - £1.5m. These were assessed by criteria under four headings by the LEP Executive and which are deemed suitable for the potential reallocation of funding from the Haverhill project which could be delivered during the current financial year. Of the six projects discussed the Snetterton Heath Employment Area project was considered the most deliverable based on the set criteria.

Part 3 Snetterton Employment Area Proposal – CONFIDENTIAL – Iain Dunnett (ID) ID gave a detailed report on the background supporting the proposed project at the Snetterton Employment Area. Doug Field (DF) requested this be retained on the Growth Deal Dashboard and progress reflected in October’s Business Performance Report. The Board agreed


To the de-allocation of £1.3m grant for Haverhill Innovation Centre to an alternative Growth Deal project from the project pipeline.

To meet a maximum 1/3 pre-delivery costs incurred to date in developing Haverhill Innovation Centre project, capped at £100k, with the remainder to be covered by the developer and GCGP LEP.

A financial contribution of a maximum grant of £2.3m spanning 16/17 and 17/18 financial years as part of New Anglia’s Growth Deal for Breckland DC to enable development of the infrastructure at Snetterton Employment Area.

CD

8 Productivity Commission

This item was introduced by CS; an outline proposal to develop and implement a Productivity Commission with the steering group being led by the LEP and chaired by a Board member. The establishment of a productivity commission is a key element in the Norfolk and Suffolk devolution deal as well as being a local priority to drive growth with the productivity gap between the region and its peers having been noted to have increased since the recession with the gap between New Anglia and the UK average now standing at 8% compared to 6% in 2006.

Some concerns were raised by the Board including:

Clearer definition of what productivity is and how this would be used positively.

Duplication and potentially confusing cross-over between Innovation Board and Innovation Strategy.

The anticipated financial cost of the project and need to assess further evidence before committing.

Comprehensive details on the data which supports productivity and how like-for-like data can be gathered to compare areas when there are regional differences in the concentration of unproductive sectors.

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In view of the points raised it was agreed that the item would be further discussed at the forthcoming Innovation Board on 10 October attended by Tim Whitley (TW) and David Richardson (DR) with the assistance and support of Lindsey Rix (LR). Feedback to be reported to the Board.

The Board agreed:

To note the contents of the report and to the need for further scoping work to be carried out before agreement could be reached. To be further discussed at the next Innovation Board scheduled for 10 October 2016.

DR / TW / LR

9 Sector Support: EEEGR and Tech East – CONFIDENTIAL

Madeleine Coupe (MC) introduced this item and outlined the key elements of the report supporting the request to provide investment towards sector development in the ICT/Digital Creative Sector for TechEast and the Energy Sector for EEEGR. Progress will be reported back to the Board in the form of a planner as part of the Board papers going forward showing the deliverables against a timeline of phased funding by instalments.

The Board agreed

To investments of £75K each for Tech East and EEEGR thus ensuring these are sustainable and able to deliver benefits to the businesses they represent as well as contributing towards the delivery of the LEP’s strategic goals.

To the LEP Executive developing a funding agreement setting out a clear set of deliverables in return for any funding which will be target driven with progress being monitored.

10 Business Performance Reports

Chris Dashper (CD) introduced this report, highlighting the following:

Business Growth Programme – The ERDF contract arrived over the summer; this enabled the

launch of the Micro Grant Scheme in August 2016 which provides capital and revenue grants between £1,000 to £10,000 at 20% intervention rate to SMEs. The scheme is accessed through the Growth Hub. The role of Finance and Compliance Officer to support the ERDF programme has been re-advertised with interviews scheduled for week commencing 3 October; the filling of this position will provide the full complement of staff needed to deliver the programme. The Growth Hub are also recruiting new staff and interviews are currently underway.

New Anglia Capital - a cautious period over the summer months with the next pitching event scheduled for 3 November.

Sectors – the quarterly Sector Leads Meeting took place in September at which Jamie Thums, Chair of the New Anglia Advanced Manufacturing & Engineering (NAAME) sector group was introduced and outlined the group’s ambition to set up local productivity groups across the East which feed into NAAME. A cultural strategy for the East - Culture Drives Growth is set to be launched on 2 November at The Jerwood Dance House, Ipswich which sets out some significant ambitions for Norfolk and Suffolk and developed by the Cultural Board; Board members will be invited to this event.

The Board were content with the continuing improvements to the format of the BPR’s and feedback from the Executive team; a discussion took place on the process of reinvesting funds back into projects to make them regenerating and the consideration of how the larger amounts could be utilised.

The Board agreed:


MC

11 Finance Report

The Finance Report was presented by Keith Spanton (KS) covering July and August 2016. July was a standard month. Management accounts for the period ending 31 August produced a total

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income amounted to £403,285 with costs totalling £370,951 this left a surplus of £46,431; £8,736 ahead of budget.

Nikos Savvas (NS) queried the staffing costs which look to be under budget; KS advised this is due to a member of staff leaving and Ipswich Vision Coordinator is being covered as a secondment – a £4,000 - £5,000 charge will be built in which will reduce the gap.

Annual funding request letters for the year 2016/17 were issued to all local authorities at the beginning of September; MP wished to place on record his thanks to all Local Authority Leaders for their continued support and contribution to core funding for the LEP.

The Board agreed:


12 Any Other Business

MP informed the Board that The University of Suffolk, the third university in the area officially opened on 1 August 2016.

Ipswich Waterfront and Innovation Centre will open on Monday, 3 October.

MP gave thanks to Jeanette Wheeler for her support on the selection panel to appoint the new Chief Executive for East Colleges.

Date and time of next meeting: Scheduled for Wednesday, 19th October 2016 10.00am to 12.30pm at Snape Maltings, Suffolk.

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New Anglia Local Enterprise Partnership Board

Wednesday 19 October 2016

Agenda Item 5 - Managing Director’s Report

Author: Chris Starkie

Overview

This section provides a snapshot of main LEP team activity since the September board meeting

Devolution: The LEP is continuing to work with partners on the development of the implementation plan for the devolution deal, in advance of final votes on the deal by local authorities and the LEP. This will include the LEP leading on the development of a single economic plan. This is covered in Agenda Items 8 and 11. The LEP has also participated in a number of briefing sessions to councillors on the findings of the consultation.

Industrial Strategy and LEP Network research: The LEP executive team is continuing to play an active part in discussions with fellow LEPs around the future role of LEPs, including supporting a report commissioned by the LEP Network. We continue to discuss with fellow LEPs and Government colleagues the shape of the emerging Industrial Strategy.

European Structural and Investment Funds: The Government has announced that the HM Treasury guarantee introduced in August for EU funded projects contracted before the Autumn Statement (23rd November) has now been extended to cover all projects contracted before the UK formally leaves the EU and which continue to deliver after this point. More information on this later in this report.

Brexit: We are continuing to gather information regarding both positive and negative impact on businesses of Brexit, with more organisations now signed up to work with us on exchanging information.

Highlights of the LEP’s main programmes – more detailed information can be found in the Business Performance Reports

Growing Places Fund: As a result of the call for projects, a number of opportunities for engagement by the Growing Places Fund are emerging. This includes the potential for 3 or 4 capital investments in buildings and infrastructure including some on EZ sites and also a significant potential loan project in Ipswich.

Growing Business Fund: A number of new applications under development, including a significant maximum grant request of £500k to come to the November grant panel. Over £1.2m of spend on the programme as a whole anticipated before the end of December 2016. New promotion and publicity of the programme expected to increase the number of enquiries received.

Agritech: Discussions are ongoing about further funding from New Anglia LEP Growth Deal towards the programme and expansion of the geographical coverage to incorporate an additional LEP area.

Oil and Gas Taskforce: One award made to a business through the Oil and Gas taskforce process, using the Growing Business Fund mechanism. Further enquiries ongoing, including a potential £200k grant application which will support the consolidation of a business in Great Yarmouth and help to sustain the workforce.

Growth Programme: As a result of the completion of the ERDF award process for the Growth Programme, the Adviser recruitment has been ongoing, with 4 Advisers recruited during September, and a further 2 to be recruited during October. Initial applications to the Micro Grant Scheme have now been received, with 4 applications awaiting approval and a pipeline of a further 30 applications under development

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Growth Deal: Snetterton power project approved at September board meeting, award letter being drafted and spend of up to £900k anticipated during 16/17. First claim received for Norfolk Broadband project, with first Suffolk claim anticipated in early November 2016.

New Anglia Capital: £250k New Anglia Capital contribution to the Medtech Accelerator has now been released, paperwork and legal agreements have been completed and signed and the first board meeting will be held on 11 October 2016.

Devolution continues to generate significant media coverage and stakeholder engagement, much of it led by the LEP. The completion of a number of large projects has also generated positive media coverage, including the openings of the King’s Lyn University Centre and the Ipswich Waterfront Innovation Centre, as well as a Royal visit to Scottow Enterprise Park and the £2.3m investment in Snetterton Heath.

MIPIM UK takes place from October 19 – 21. Stands and the pitchbook for the event are complete. A number of the LEP team and Board will be attending and assisting on both the Norfolk and Suffolk stands over the three days. On the Thursday, Ipswich Vision will be hosting an ‘Invest in Ipswich’ networking reception to showcase investment opportunities in the town.

The month’s media agenda was dominated by our Rail Summit at Westminster, which was attended by close to 20 MPs and received coverage on two TV stations, radio, newspapers and earned 31,000 impression on our Twitter page.

An indication of the breadth of our work came on one day this month, when five separate articles in the East Anglian Daily Times mentioned the LEP – on skills, apprenticeships, the rail taskforce, cultural sector board and a recipient of a Growing Business Fund grant.

The LEP was also used for economic comment on a few occasions, notably the Hinckley Point announcement and its repercussions for Sizewell, and the return of KPMG to Norwich.

Management accounts for 30 September 16 – Year to date income is £484k with an operating surplus of £24k which is slightly lower than budget by £2k.

Operating cash balance is £436k which is in line with management expectations.

The LEP’s financial statements to 31 March 2016 were adopted at the AGM in September and have now been submitted to Companies House. They are also published on the LEP’s website.

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LEP actions and activity

This section provides a detailed update on other activities and key issues since the September board meeting

Industrial Strategy and LEP Network Research

We have been playing an active part in a piece of work commissioned by the LEP Network looking at the future role of LEPs.

The work has been carried out by Metro Dynamics and is designed to look at how LEPs have evolved and what they have achieved, then looking ahead to the changing landscape of a new Government, Brexit and devolution.

A first draft was issued to LEP chairs and chief executives at a workshop on Monday October 10th.

Key points raised by the report include:

LEPs are organisations that are business-led, operating efficiently and able to operate strategically to support their local economies.

They are also working together to support key national priorities.

LEPs have a path to navigate. As they are successful the temptation is to do more, but the danger is as a consequence LEPs become less responsive and fleet of foot.

The report says: The most successful LEPs have established their reputations through owning or driving the strategy to achieve this purpose locally, winning the support of business and political leaders in setting clear priorities based on that purpose, and using the funding they control as a strong lever to execute it, without becoming large organisations.

The report makes a number of recommendations, including:

Continuing to make the case to Government about the importance of an independent business voice in local governance arrangements.

Building on Strategic Economic Plans as effective local industrial and growth strategies.

Working with Government to build the sectoral element of the new Industrial Strategy.

Bringing more coherence and efficiency to activity around place based marketing and large scale inward investment and trade activity.

Developing further Enterprise Zones and piloting new ideas and concepts.

Ensuring that LEPs are known for the best possible approach to transparency and evidence based decision making.

Metro Dynamics is now completing the report in the light of the discussions at the workshop, and the final report will be circulated to board members as soon as available.

We intend to use the report to help support our plans moving forward.

One of the key strands to emerge from the work, is the key role that LEPs are expected to play in the development of the Government’s new Industrial Strategy.

At the dinner following the workshop, BEIS Secretary of State Greg Clark and cabinet colleagues Liam Fox and Sajid Javid all emphasised the key role of LEPs in driving forward UK economic growth.

(Notes from the dinner were previously circulated to board members, but are attached to this report for convenience at Appendix 1).

In particular, LEPs have an opportunity to shape the emerging Industrial Strategy.

We already in discussions with Government colleagues on this, with the Government

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expecting to publish a Green Paper in the next two months and then a White Paper next year.

We believe the update of the Strategic Economic Plan (details of this in the separate paper for Agenda Item 11) gives us the opportunity to develop a local industrial and growth strategy in parallel with the Government’s Industrial Strategy.

European Structural and Investment Funds

On 3rd October at the Conservative Party Conference, the Chancellor announced that the HM Treasury guarantee introduced in August for EU funded projects contracted before the Autumn Statement (23rd November) has now been extended to cover all projects contracted before the UK formally leaves the EU and which continue to deliver after this point. Over the preceding weekend the Prime Minister confirmed that Article 50 will be triggered before the end of March next year. This assurance therefore suggests that projects contracted prior to early 2019 will receive the HMT backed guarantee, though dates are still subject to some fluidity.

We consider this to be a positive step in reassuring partners who have been cautious in bringing forward proposals due to the uncertainty that it is still very much worthwhile to do so and that the Programmes remain open for business. We expect more details in the Autumn Statement. The full announcement can be viewed at: https://www.gov.uk/government/news/further-certainty-on-eu-funding-for-hundreds-of-british-projects

It is still possible that the Autumn Statement will be used to announce other changes to the ESIF Programmes, one of which may be a reduction in the value of the programmes due to a potentially shortened programme period. This could result in a pro rata decrease in the notional funding allocations to LEP areas, though this has not been confirmed as the Government’s intended approach. The Chancellor has confirmed however that all EU-funded projects contracted post-Autumn Statement will need to provide good value for money, offer scale and impact, and contribute to national economic priorities.

There are still 3 Calls open under the ERDF Programme in New Anglia (of only 14 Calls open across England currently). These Calls close on 3rd February 2017. We do not expect any new Calls to be published until after the Autumn Statement, though in preparation, the LEP is working with Defra and DWP to develop new Calls under the European Agricultural Fund for Rural Development (EAFRD) and European Social Fund (ESF) respectively.

The table below summarises the financial position in respect of commitment and projects within the advanced pipeline for each of the ESIF funding streams.

ERDF £ ESF £ EAFRD £ Total £

Notional Allocation 37,700,690 35,696,935 13,015,876 86,413,501

Contracted 12,982,203 2,685,779 0 15,667,982

Contracting Shortly (2016) 4,298,705 8,368,360 0 12,667,065

Advanced Pipeline 2,399,240 3,342,662 1,230,000 6,971,902

Funds Remaining £ 18,020,542 21,300,134 11,785,876 51,106,552

Funds Remaining % 48% 60% 91% 59%

https://www.gov.uk/government/news/further-certainty-on-eu-funding-for-hundreds-of-british-projects

https://www.gov.uk/government/news/further-certainty-on-eu-funding-for-hundreds-of-british-projects

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Ipswich Vision Board

Since last reporting, the Ipswich Vision Board met at the new Quay Place Heritage Wellbeing Centre, located in a converted church on the gyratory system close to the Ipswich Waterfront. This facility, which has been brought forward by Suffolk Mind, will open on 17th October and supports the Ipswich Vision by refurbishing a prominent building and generating new activity between the town centre and waterfront.

Key Ipswich Vision projects are moving forward. A shortlist of architectural firms has been drawn up as part of a design competition for delivering the Upper Orwell Crossings. The renovation of the Ipswich Rail Station forecourt is almost complete. Within the Princes Street Enterprise Zone/Office Corridor, the renovation of the former Fisons Building is complete and tenants are being sought, whilst the site of the new Birketts Office building is being cleared ahead of development.

An application for £4.5m from the Coastal Communities Fund – to support the repaving of large parts of the town centre and waterfront, and to create a series of heritage walking tours – has succeeded at Stage One and has been invited to submit a full application. The final result is expected to be known in April 2017.

Positive discussions have taken place regarding the Waterfront Island EZ site, as the landowner (ABP) and local authority begin to scope out the site masterplan. Interest is growing from key partners, such as BT Adastral Park, the Universities of Suffolk and Cambridge, and Ipswich Hospital around the possibility of building on Ipswich’s high tech and ICT offer at this prominent location.

Transport

Ely Junction Taskforce

Network Rail is continuing to develop the Strategic Outline Business Case; a first draft is expected to be circulated to the Taskforce by mid-October and Network Rail has arranged to meet with both New Anglia and GCGP to go through the first draft business case in detail. Estimated costs for developing the project to GRIP 3 stage is around £9m. This includes £1.5m contingency and £500K for industry risk fees. Network Rail is proposing to commit £2m to this project in match funding at its Steering Group meeting on 25 October.

The invitation to tender for the road study has now closed and Cambridgeshire County Council is in the process of evaluating bids in readiness to award the contract in the next couple of weeks. The road study will provide an understanding of the current situation at the three Queen Adelaide level crossings from a road, rather than rail perspective. Work is expected to start on this at the end of October and Cambridgeshire County Council is developing a communications strategy which will be in place before work commences on the road study.

In the meantime, GCGP is taking a report to the Shadow Authority in October setting out early priorities for capital investment, which includes Ely North junction as one of its top priorities. If the recommendations within the report are approved, GCGP will be in a position to part-fund this project outside of Growth Deal three.

A1307 Strategy Board

On 7 October, Haverhill and Suffolk Chamber of Commerce hosted the inaugural A1307 Strategy Board. The Board is to be chaired by Rt. Hon. Matthew Hancock MP and representatives included those from Suffolk and Cambridgeshire County Councils, local authorities, Haverhill Town Council, local business and the LEP.

Haverhill is identified as a growth location in the Strategic Economic Plans for both New Anglia and GCGP LEPs and is the location of one of the recently designated Enterprise Zones. Haverhill is due to see up to 4,000 new homes and is expanding as an economic destination. Forecasts suggest that by 2031, Haverhill is likely to be as large as present day Bury St. Edmunds. The A1307 corridor is identified in the SEP as being a growth corridor and improvements to the road is one of the LEPs strategic

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transport priorities. The part of the road in focus runs from Haverhill to the A11 interchange. Local stakeholders have been calling for its upgrade for a number of years and a formal campaign was launched around a year ago.

With the anticipated relaxation of Government fiscal priorities expected to be confirmed in the Autumn Statement (23rd November), the Board has been configured now to re-energise the campaign and seek strategic and political support. Over the last few months, both Suffolk and Cambridgeshire County Councils have undertaken a number of surveys and usage monitoring and the full results of these are expected by early December. This is expected to identify existing capacity constraints and growth modelling is likely to show critical future problems, which will impact on the growth prospects and ambitions of Haverhill and the surrounding area.

Matthew Hancock has undertaken to write to the Chancellor and the Roads Minister to place a future scheme on their radar. To bring forward options for improvement, business planning is required to demonstrate that an economically viable and value for money solution is available. To develop a full business case is a complex, lengthy and expensive undertaking though all parties around the table appear committed, at least in principle, to moving forward. It is estimated that the full costs of developing a DoT acceptable business case will be in the region of £1.5-2m, though a first stage (which could, if persuasive enough, lever in Government funds for further investigative work) will cost around £450-500k. As a strategic priority for the LEP, we are likely to receive a request in due course to contribute to this work, though the timing of this remains unclear.

Flourish Summit

The Flourish rural summit brought together local authorities, educational institutions, charities and voluntary groups and project leaders to discuss the challenges facing rural Suffolk. This follows the publication of a Hidden Needs report which highlighted that deprivation in certain areas of the county has worsened in the past five years.

The summit discussed a range of themes including infrastructure and transport (led by Mark Pendlington), isolation and social mobility, aspirations and skills (led by Nikos Savvas) and food, farming and agriculture.

The outputs from the summit will be used to guide the development of a rural strategy for Suffolk.

Recommendation The board is invited to note the contents of this report.

APPENDIX 1

New Anglia Local Enterprise Partnership Wednesday 19 October 2016

Agenda Item 6

Business Performance Reports – October 2016

Contents

No. Title RAG

Status

1. Growth Deal Green

2. Business Growth Programme Green

3. Growing Places Fund Green

4. New Anglia Capital CONFIDENTIAL Green

5. Skills Green

6. Media Dashboard N/A

Page 1 of 17

Growth Deal - New Anglia LEP’s total Growth Deal from Government is £221.5m to 2021.

It is estimated to create up to 16000 new jobs, 3000 new homes and the potential to generate an additional £240m public and private investment.

Growth Deal Spend (2016/17) Amount

Government allocation (This is the government allocation of funding for 2016/17, plus the capital swap from 2015/16)

£50.557m

Spend paid to projects (Note that a project can only be paid once the project has a legal agreement in place and has provided evidence of eligible expenditure.)

£6.795m

Projects with legal agreements in place (This is projects with legal agreements in place which allows them to claim spend when they are ready. We anticipate that the full spend on these projects will be achieved by the end of the financial year.)

£40.684m

Projects with legal agreements pending (This is projects with legal agreements still pending, they therefore cannot be paid any funds. We anticipate all the outstanding legal agreements to be in place by the end of December).

£5.772m

Under allocation (This is the amount of funding that has not been allocated in the current financial year. This is due to slippage on a number of projects, primarily Beccles Relief Road and Lowestoft and Great Yarmouth Colleges. Wherever possible we have brought forward spend on other projects to counteract this for example West Suffolk College, Ipswich Cornhill, Ipswich Radial Corridor Scheme, Snetterton Employment Area.)

£4.101m

Totals £50.557m

GREEN

Update on Live projects Work is progressing well, with 25 live projects/ programmes and five projects now complete. Currently no projects have ‘red’ status, three projects have ‘amber’ status due to project slippage.

Status of projects: Note: amounts given below in brackets refer to the total Growth Deal grant amount, with 20 of the projects being delivered over multiple financial years.

Amber: Beccles Southern Relief Road (£5m)– construction is now due to start in late 2016 due to delays with assembling the land. The public enquiry into the Compulsory Purchase Order is now complete. The business case will go to the Local Transport Body in Autumn 2016.

Amber: Bury St Edmunds Sustainable Transport Package (£2.25m)– the project has slipped due to the design and consultation process taking longer than anticipated. This will be partially addressed by bringing forward works on the Ipswich Radial Corridor project. The business case was agreed by the Local Transport Body in February 2016.

Amber: Lowestoft & Great Yarmouth Colleges - Energy, Engineering and Offshore Industries (£10m)–the project start date has been delayed due to the area review. The project is currently being designed with a small amount of spend profiled for the current financial year.

Green: A47/A1074 Longwater Junction, Norwich (£2m)– starting this financial year and remains on track to be delivered by 2018/19 but delivery now focussed on later years. The business case was agreed by the Local Transport Body in February 2016.

Green: Attleborough Sustainable Transport Package (£4.6m)– the project is on track. The business case (phase 1) was agreed by the Local Transport Body in August 2016 and subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. The grant agreement is now in place.

Green: Bury St Edmunds Eastern Relief Road (£10m)– works on the site are underway, due for completion in Summer 2017. The business case was agreed by the Local Transport Body in July 2015.

Green: Felbrigg Junction Improvement (£0.042m) – the LEP Board approved the project in June 2016, following recommendation by the Local Transport Body. The grant agreement is now in place.

Green: Great Yarmouth Transport Package (£9.03m)– the project is on track. The business case (phase 1) was agreed by the Local Transport Body in August 2016 and subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. The grant agreement is now in place.

Green: Kings Lynn Innovation Centre (£0.5m)– the build is complete, with a launch event held on 14 June. The grant agreement is in development following recent receipt of key supporting information.

Page 2 of 17

Green: Growing Business Fund (£25.3m)– in progress (See BPR on the fund).

Green: Growing Places Fund (£20m)– in progress (See BPR on the fund).

Green: Ipswich Cornhill (£1.6m)–the project design is in progress and a grant agreement is being drafted.

Green: Ipswich Radial Corridor Improvements Transport Package (£3.5m)– the project is on track and the business case (phase 1) was agreed by the Local Transport Body in February 2016.

Green: Lynn Sport Access Road (£1m)– road construction on track for completion in winter 2016.

Green: Norfolk & Suffolk Broadband programmes (£5m for each programme)– Norfolk and Suffolk County Councils’ programmes are on track. Grant agreements for the LEP contributions to both programmes are now in place.

Green: Norwich Area Transportation Strategy City Centre package (£7m)– works in progress. The business case (phase 1) was agreed by the Local Transport Body in December 2015. The majority of works are on track, there is slippage to part of the scheme (Roundhouse Way Interchange) due to ongoing negotiations regarding land acquisition. This will be addressed by bringing works forward on the Norwich Area Transportation Strategy A11 Corridor project.

Green: Norwich Area Transportation Strategy A11 Corridor (£4.175m)– works in progress. The cycle scheme is being brought forward to address slippage on the NATS City project. The business case (phase 1) was agreed by the Local Transport Body in December 2015.

Green: Norwich Aviation Academy (£3m)– the project build is progressing well after commencing in April 2016. The grant agreement is currently being drafted with the relevant supporting information now in place.

Green: Snetterton Employment Area (£2.3m) – this project has been added in place of the Haverhill Innovation Centre project. The project works are due to commence in October with a grant agreement in development following the decision of the LEP Board to fund the project.

Green: South Lowestoft Industrial Estate (£2.5m) – phase one of the project is complete, as the site was acquired on 22 January using Growth Deal funding, and an agreement is in place. Phase two is now in development with a tender out regarding designing the industrial units on the site.

Green: Sudbury Western Bypass Study (£0.1m) –the project is on track for draw down of funds by March 2017. The business case was agreed by the Local Transport Body in September 2015.

Green: Thetford Transport Package (£1.98m) – the LEP Board approved the revised project in June 2016, following recommendation by the Local Transport Body. Subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. The grant agreement is now in place.

Green: West Suffolk College Engineering and Innovation Centre (£7m)– phase one of the project is now complete, as the site for the New Centre has now been acquired using Growth Deal funding. Phase two will commence in 2017, focusing on refurbishment of the building.

Easton & Otley College (£2.5m) – the new construction training centre is complete, with a launch event held on 5th November 2015. It is the first Growth Deal project in the country to be completed.

Ipswich Wet Dock Crossing Feasibility Study (£2m)– the study was submitted to the Department for Transport on 24/12/15. Funds will be drawn down by the end of this financial year and work is now commencing on the full design, following the Government’s Spring budget (2016) announced funding towards the full capital project.

Lowestoft Third River Crossing Options Assessment (£2m)– the study was submitted to the Department for Transport on 29/12/15. Funds will be drawn down by the end of this financial year and work is now commencing on the full design, following the Government’s Spring budget (2016) announced funding towards the full capital project.

College of West Anglia (£6.5m)– the new university centre is complete, with a launch event held on 22nd October 2016.

Ipswich Waterfront Innovation Centre (£1.85m)– the refurbished building and new Innovation Centre is complete, with a launch event held on 3rd October 2016.

Completed projects

Page 3 of 17

Underspend on the Growth Deal Likelihood – Medium Impact – High

There is a risk that total spend will not be achieved within the financial year, due to minor project slippages in these complex large scale projects.

Mitigating Activity: The LEP has achieved its spend target for the financial year 2015/16. Regular monitoring of spend is undertaken, with a formal review of spend undertaken by the Performance and Risk Committee at least twice in the financial year. The first of these for the financial year 2016/17 took place in September 2016.

Lack of government support for future Growth Deals Likelihood – Medium Impact – High

There is a risk that the government will not support future Growth Deals which would undermine the credibility of the current deal and jeopardise pipeline projects.

Mitigating Activity: the LEP continues to raise the profile of its successful Growth Deal projects. Furthermore a third round of Growth Deal was announced in the Chancellor’s Spring budget. The LEP has applied to this and is waiting for the result to be announced in the Autumn budget.

Grant Determination for future years of Growth Deal is not issued Likelihood – Medium Impact – High

New Anglia LEP’s Grant Determination letter from government is only received annually for the current financial year. There is therefore a risk that projects that run over more than one financial year will not have assurance of funding.

Mitigating Activity: The Grant Determination letter for 2016/17 was received in early April. The LEP is working with government to gain assurance on this issue.

LEP Executive Lead – Chris Dashper

Page 4 of 17

New Anglia Business Growth Programme October 2016

LEP Executive Lead – Jason Middleton

The New Anglia Business Growth Programme is the umbrella under which the LEP operates its direct business support programmes. Programme activity started in early 2013 and is made of the following areas of activity, funded by a number of funding streams, including BIS and ERDF: -

New Anglia Growth Hub – Providing face-to-face business support for SMEs

Growing Business Fund – Grants between £5,000 and £500,000 at 20% to SMEs

A NEW Micro Grant Scheme - Grants between £1,000 and £10,000 at 20% to SMEs

Start-up Programme – Providing support to individuals to start a new businesses

New Anglia Growth Hub Initially launched in June 2014, as a 12 month pilot via the Wave Two City Deal and delivered by Suffolk Chamber of Commerce. The Growth Hub is currently supported via a successful ‘New Anglia Business Growth Programme’ and is part-funded by the ERDF (January 2016 – September 2018).

The Growth Hub has become one of the best performing hubs in the country. From 2016, the Growth Hub now has more of an emphasis on providing ‘in-depth’ support as well as being able to refer to the private and public sector via a new website, launching at the end of 2016.

Growing Business Fund Launched in April 2013, the Growing Business Fund provides grants between £5,000 and £500,000, usually up to 20%, to SMEs across the LEP area. Funding for the scheme has come from a range of sources, including £12m from the Regional Growth Fund, £1.66m from Wave Two City Deals, and £25.57m from the Growth Deal by 2021 (£4m for 2016/17).

Growth Hub Target to April 2017 Delivered to

date Delivered to date %

RAG

Business Engaged with the Hub 6,010 5,667 94.3% Green

In Depth Support (12 hours or more)

1,290 1,321 102.4% Green

Total hours of support (All businesses)

- 25,084 - Green

Calls our Local 0300 Helpline - 2,689 - Green

Events participated by Growth Advisers

- 472 - Green

Growing Business Fund Target to April 2017

Awarded to date

Delivered to date

Delivered to date %

RAG

Number of grants awarded

- 309 278 - -

Value of grants awarded £17.66m £15.9m £13.6m 75% Green

Private sector match funding

£70.64m £74.5m £57.3m 81% Green

New Full-time jobs created

1167 2209 975.5 84% Green

Page 5 of 17

Oil and Gas Support Scheme The LEP has introduced two schemes to support businesses which have more than 50% of their turnover derived from the sector. The first provides a 50% grant of up to £3,000 for companies to undertake a health check to adapt to and cope with the effects of the downturn, with the second providing companies with access to the Growing Business Fund scheme, without the need to create new employment. Activity around the schemes is outlined in the table below.

Start-Up Programme Starting in March 2014, the start-up programme provides a range of support, including workshops and face-to-face support, to individuals to start their own business and businesses during the first year of trading. The programme is delivered by Nwes in Norfolk and East Suffolk, and Menta in West Suffolk.

Demand for start-up support has grown and currently exceeds the level of support provided by the programme. It is anticipated that the programme will perform ahead of target. Activity will continue until August 2018, it is part of the successful New Anglia Business Growth Programme that is part-funded by the European Regional Development Fund.

Micro Grant Scheme Following approval of the ‘Business Growth Programme’ ERDF application, a new Micro Grant Scheme was launched in August 2016, with four application received to date. The scheme provides capital and revenue grants between £1,000 and £10,000 at a 20% intervention rate to SMEs seeking to grow and expand, take on new staff, introduce new goods or services or become more efficient. Applications to the scheme are supported by the New Anglia Growth Hub.

Oil and Gas Support Project Target to April 2017

Activity to date

Approvals to date

RAG

Number of Enquiries - 25 - Green

Number of Visits to companies - 21 - Green

Business diagnostics undertaken - 12 - Green

Applications for Consultancy Scheme - 7 6 Green

Applications for GBF Fund - 6 2 Green

Start-Up Programme Target to April 2017 Delivered to

date Delivered to

date % RAG

New business start-ups created

650 408 62.8% Green


816 563.5 69% Green

Micro Grant Scheme Target to April 2017

Awarded to date

Delivered to date

Delivered to date %

RAG


80 0 0 0% Amber

Value of grants awarded £420,000 0 0 0% Amber

New to the firm products introduced

8 0 0 0% Amber


£1.68m 0 0 0% Amber

Page 6 of 17

Eastern Agri-tech Initiative Launched in April 2014 as a £3.2m RGF funded scheme, and operated by Greater Cambridge Greater Peterborough LEP, in partnership with New Anglia LEP. The scheme supports the development of new innovative ideas to support the Agri-tech sector via an R & D grant of up to 50% (no jobs required) An additional growth grant is also available for Agri tech businesses showing new ways of working and introducing new technologies this grants has an intervention rate of 25% and jobs to be created. The scheme has now been allocated additional funding with £2m of funding secured (£1m from Government, Growth Deal to GCGP LEP and £1m from New Anglia LEP Growing Places fund) to continue the programme. (Figures are shown for the whole project) There is no job creation associated the R&D projects and most jobs are reliant on “Agri Gate” project, which has only just been launched, with a time lag between awards and outputs.

Growth Programme Risks

The following key risks have been identified relating to the programme and its delivery:

1) Inability to draw down future funding to support the continuation of the programme.

Likelihood: Low Impact: High

Mitigating Activity – An ERDF contract has been signed by DCLG and returned to the LEP on the 30th of August 2016. ERDF funding will ensure the continuation of the Programme, as well as a new Micro Grant Scheme, until the end of August 2018.

2) A lack of businesses requiring support via the Growth Hub.

Likelihood: Low Impact: Medium

Mitigating Activity – Demand for Growth Hub support is very high and with the loss of the Business Growth Service BIS have confirmed that Growth Hubs are key to delivering business support, which will increase demand over time, particularly for ‘in-depth’ support.

Agritech Target to April

2017 Awarded to

date Delivered to

date Delivered to date, %

RAG


- 53 29 - -

Value of grants awarded £4,600,000 £4.4m £2,167,242 47.0% Green


£11m £8.7m £5.9m 53.6% Green


702 685 182 25.9% Amber

Page 7 of 17

Appendices

1) Geographical distribution of Growth Hub activity

2) Top ten most popular referrals through the Growth Hub

Page 8 of 17

3) New Anglia Grant Programmes Map: Growing Business Fund / Oil & Gas / Small Grant Scheme / Agri-Tech (Apr 2013 – Aug 2016)

Awarded grants based on proposed investments

Page 9 of 17

GPF Report

New Anglia Growing Places Fund Quarterly Report LEP Executive Lead – Iain Dunnett Board Lead – Lindsey Rix, Chair of Investment Appraisal Committee The Growing Places Fund is the LEP’s loan fund. It has already committed over £17m on capital investment projects such as housing and commercial developments across the East, helping create an estimated 5,000 new jobs and 2,000 new homes as well as boosting skills and opportunities. On occasion, where projects have been regionally significant, generated high levels of outputs or secured considerable private match to allow a project to proceed, GPF has been awarded as a small grant award.

Key to RAG rating for live and delivered GPF projects: Red – indicates that project is stalled and is not progressing Amber – indicates that reasonable progress is being made with the project Green – indicates that project is progressing as expected Blue – indicates project wholly or nearly complete

Key to 1-3 rating for pipeline GPF projects: 1 – Approaching agreement stage 2 – Negotiations underway 3 – Early stage development of project

Page 10 of 17

GPF Report

LIVE GPF PROJECTS

Projects currently in a financial agreement with LEP and drawing down LEP funds

Project Descriptions RAG Rating

Amounts out on loan

Proposed repayment date

Financial benefit (interest estimate)

Match funding

North Walsham, formerly HL Food Site

Project to unlock redevelopment of a former canning factory on the outskirts of North Walsham for mixed use including housing, commercial and employment space. Recent site visit confirms good progress with site development.

G Loan offered

Ipswich Flood Defence The defence measures will protect around 1,500 existing homes and over 400 existing businesses with the potential to allow the construction of 2,000 new homes and create 4,000 new jobs.

G £6.6m loan with 1.5% interest rate.

To be repaid in instalments up to March 2023.

6.6m loan with 1.3% interest rate =£346,000 return

Public £3.4m Ipswich BC, £43m Env. Agency.

Kings Lynn Innovation Centre

The 2,300m2 Enterprise and Innovation Centre has been built on the Nar Ouse Regeneration Area in Kings Lynn. A further stage of development is under consideration and the LEP may provide finance for this, a draft proposal will be with the LEP Board in Nov 2016.

B £2.5m loan with 1.5% interest rate.

Repayment due March 2018.

£2.5m loan given at 1.5% interest rate = £112,000 return

Private £2.5m.

Barton Mills Roundabout This project will redevelop the current Barton Mills roundabout providing new ingress and egress to the roundabout, construction of a petrol filling station and a fast food drive through.

A Loan offered

Pasta Foods Capital loan to help facilitate the expansion of a significant Norfolk business, the only UK manufacturer of dried pasta and potato projects.

G Loan offered

Page 11 of 17

GPF Report

Norwich Airport Project to support the further development of Norwich Airport by conducting an in depth feasibility study of the project prior to a full development loan being arranged. A further stage of development is imminent and an approach to the LEP for finance is expected.

R Loan offered

Norwich Writers Centre at Dragon Hall, Norwich

Project to develop Norwich’s Grade 1 listed historic Dragon Hall, which will undergo a 21st century upgrade into an iconic centre for literature.

G £150,000 of GPF grant offered.

Public £2.66m.

Holkham Estate Workshops and business unit as phase 2 of a rural business development.

G Grant offered

Page 12 of 17

GPF Report

DELIVERED GPF PROJECTS

Projects that have received LEP funding, project is wholly or nearly complete

Project Descriptions RAG Rating

Amounts out on loan

Proposed repayment date

Financial benefit (interest estimate)

Match funding and outputs

Haverhill Research Park A joint project with Greater Cambridgeshire, Great Peterborough LEP to provide necessary infrastructure to access a previously unoccupied site on the outskirts of Haverhill, Suffolk.

Loan offered

Kesgrave Hall Refurbishment and expansion of underutilised function room at Kesgrave Hall into a dedicated conference centre and events room.

Loan offered

UEA Enterprise Centre The UEA Enterprise Centre is a new development on the UEA campus near Norwich. The centre provides incubator and business spaces for new businesses and is a centre of excellence in new energy efficient technologies.

£250,000 grant

Grant paid

N/A Public £16.5m.By March 2016: 1500m2 floorspace. By March 2019: 257 jobs created and 50 businesses created and 202 jobs safeguarded.

Whitespace WhiteSpace is a co-working space at St James’ Mill in the heart of Norwich designated for the local tech/digital creative community.

Grant offered

Norwich University of the Arts

An existing building has been converted in Norwich, as part of the Norwich University of the Arts campus, into an incubator to facilitate start-ups by companies in the digital creative sector. Recent site visit confirmed operation of building.

£200k grant.

Grant Paid

N/A Public £4m HEFCE. By March 2020: 108 businesses supported/created; 195 jobs created; 60 existing businesses supported.

Page 13 of 17

GPF Report

Heritage Home of Horseracing

The National Heritage Centre offers a new museum, art gallery and study centre celebrating the development of the thoroughbred horse and sporting art in Great Britain.

£250k grant

Grant Paid

N/A Public £8m Private £7m.By February 2016: 21 jobs created. By March 2017: 37,500 individual visitors to Newmarket.

Baxter Healthcare Planned LEP investment in the business to support research and development with advances on site manufacturing processes and productivity. Baxter are completing transformation work at plant but the experimental development is occurring at their Spanish plant, hence negating need for LEP finance.

1 The plant transformation investment was greatly encouraged by LEP/local authority intervention which Baxter state has helped to secure their internal investment at Thetford and future of 465 jobs on site.

Page 14 of 17

GREEN

Skills Skills are essential to increasing productivity and unlocking the significant growth potential of Norfolk and Suffolk. New Anglia, through the work of the Skills Board, provides real visible leadership from business on the skills agenda for Norfolk and Suffolk.

SEPTEMBER 2016 – MAIN HEADLINES SINCE LAST REPORT

The New Anglia Youth Pledge Marque, has been launched to recognise the role played by the private sector in creating opportunities for our future workforce. A marketing and communication plan is being drawn up to ensure that the Marque is effectively promoted and used.

The first funding agreement for a ‘New Anglia Skills Deals’ project has been signed. This will see new provision developed in the area for energy efficient construction methods. Further projects are in the pipeline with a total of £600k provisionally allocated to projects that will support growth in some of our key growth and enabling sectors.

A second New Anglia Sector Skills Plan has been completed. This addresses skills barriers for the construction sector. This follows on from the plan already produced for the Health and Social Care sector.

There has been significant progress on the key skills proposals in the devolution proposal for East Anglia. This will build on much of the work undertaken to date.

NEW ANGLIA YOUTH PLEDGE – Activity that contributes to the New Anglia Pledge that every young person in Norfolk and Suffolk will get the support they need to get into education, training, an apprenticeship or a job within three months of leaving education or employment.

Youth Guarantee – The Youth Employment Service in Greater Ipswich (MyGo) is providing intensive support and challenge to 16-24 year olds not in education, employment or training. This service has supported 6156 individuals including over 3800 of those furthest from the job market of whom 1750 have been supported into education or employment. Through the development of the ‘New Anglia Youth Pledge Marque’ work is also now ongoing to roll out the most successful elements of the Youth Guarantee to areas outside of Greater Ipswich. A MyGo service has already opened in Lowestoft involving partners such as the Department for Work and Pensions, Talent Match, Lowestoft College and other voluntary and community services. Further roll-out is being planned across Norfolk and Suffolk through European funding.

Apprenticeships - Apprenticeships Norfolk and Apprenticeships Suffolk are local approaches to encouraging and enabling development and uptake of apprenticeships in both counties. The LEP has a target of 5000 additional apprenticeships by 2019 from a baseline of 12,020 in 2013/14. Government statistics show an increase of 1840 starts in 2014/15 on that baseline. 1/3rd of the way to our 5000 target. Final 2015/16 are expected to be available in the next BPR.

New Anglia Enterprise Advisor Network –New Anglia successfully secured co-funding from Government in 2015 to establish a network of enterprise advisers – volunteers from the private sector - across Norfolk and Suffolk. This has provided an opportunity to build on approaches to work inspiration in both counties. These Enterprise Advisers are working with senior management in schools to create engagement plans to link the school with their local economy. 97 advisors have been recruited to date, 55 of whom have already been matched with a school or college. The project is expected to establish a network of at least 150 advisers across New Anglia.

Youth Pledge Marque for Employers – the Youth Pledge Marque for employers has been launched. This will help to mobilise engagement with the private sector by recognising the commitments made by employers across New Anglia to contribute to the New Anglia Youth Pledge by offering additional apprenticeships, work experience opportunities or through involvement in the Enterprise Adviser Network.

SECTOR SKILLS ACTIVITY – Activity focused on the specific skills needs of our sectors

Data and Sector Skills Plans –sector specific skills data is being pulled together to support the development of Sector Skills Plans. Sector leads, supported by the County Councils and the LEP, have developed the first 2 sector specific plans for Health and Social Care and Construction respectively. European funding will enable the development of plans for all key sectors. These sector plans will help to establish key priorities for our high impact sectors and outline skills needs to inform delivery for training providers and colleges in the future. This will create strong links between the skills board and the sector groups where they exist.

Page 15 of 17

Skills Activity Risks - the following key risks have been identified relating to the delivery of Skills related activity.

1) Capital Projects not Delivered or Fail to result in expected Impact Likelihood: Low Impact: High Mitigating Activity – SFA have previously provided input on the assessment processes – plans are in place to ensure assurance on future projects will be obtained. A relationship manager, representing the LEP is monitoring the projects as they commence to oversee implementation on behalf of the LEP. As part of this approach it was decided by all stakeholders to delay the commencement of the Lowestoft project. The funding has been re-profiled to 2017/18 in line with local discussions. 2) Decline in Apprenticeship Numbers due to impact of Reforms Likelihood: Medium Impact: High Mitigating Activity - The number of apprenticeship starts is subject to many factors. Reforms around payments and the introduction of the new levy means that uncertainty remains. Local activity will need to react to policy changes and provide further support to employers and others where necessary to overcome any barriers caused by reforms.

NEW ANGLIA SKILLS INVESTMENT FUND – Schemes providing direct financial investment in skills

Employer Training Incentive Pilot (ETIP) – provides financial support to help employers access training and upskill their workforce. As of the end of September 2016 the scheme has allocated grants to over 2000 employees across New Anglia including 324 Level 3 + qualifications. This has unlocked an additional £900,000 investment in skills by the private sector.

New Anglia Skills Capital Fund – work continues on many projects awarded funding (totalling £35m) through the Skills Capital Fund. Details of these projects can be found in the Growth Deal section of the BPR. A further project pipeline is due to be developed.

New Anglia Skills Deals Programme – a £2m pot from the County Councils and secured through the Greater Ipswich City Deal - provides up to 50% co-funding for projects that aim to raise skill levels in the adult workforce, create jobs and drive enterprise and economic growth in Norfolk and Suffolk by addressing a gap in the local training provision offer or a barrier to accessing it. This Programme has allocated funding to two projects with several others in the pipeline. £108k to a construction project that will develop new provision for energy efficient construction skills in Norfolk and £150k to support the creation of a welding and fabrication centre in Suffolk.

DEVOLUTION – Progress on some of the key proposals regarding skills

AGE Grant - local control over the allocation of the Apprenticeship Grant for Employers. This means that through the Local Authorities we are now promoting the AGE grant to employers to create local opportunities for young people and supporting them, through Training Providers, with the application process and matching. Since August 2016, we have already allocated over 600 grants across Norfolk and Suffolk.

Area Review - A review of post-16 education and training will commence in December 2016 and conclude by the end of March 2017. This is a nationally driven process to establish the best structure to offer provision based on the current and future needs of learners and employers within the local area. Officers from the two County Councils and the LEP are currently planning for the review.

Work and Health Programme - Part of our devolution agreement for East Anglia is to develop a locally integrated health, employment and skills system which will unlock significant economic growth opportunities in our area for local people whilst at the same time improving their health. We have the opportunity through devolution to both co-design and co-commission a new programme with DWP tailored to our local need. The new programme will begin delivering from the end of 2017.

Page 16 of 17

2,605 Members

Key Coverage: • Total articles published: 56

• Equivalent Ad Spend: circa £48,000

• Total Audience Reach: 3m

m

Media & Engagement

September 2016

Social Media:

LEP and Board Engagements: 48

Out of Area: 5

Tweet impressions:

78,400

Followers:

5,505 Up:

67

“The East is greater

than the sum of its

parts. We need to sout

about it because

nobody else will”

- Chris Starkie

Page 17 of 17



Agenda Item 7

Finance Report

Author: Keith Spanton

This report provides Board members with an update from the Finance Department on the LEP’s finances to the period 30 September 2016. The report includes confidential appendices:

Appendix A - core management accounts 30 September 2016

Appendix B - core monthly and year to date graphs (incl. forecast)

Management accounts

The LEP’s core income and expenditure account and graphs for the period ended 30 September 2016 are shown in confidential appendices A and B.

30 September 2016

Headline figures for the first six months are: Total income £483,849 of which £374,000 represents core contribution with recharges and other income of £109,849 making up the balance. Costs to 30 September total £459,230 leaving a surplus of £24,620, slightly behind budget by £2,398.

This deficit should be recouped in October as some costs which were budgeted for in October were actually incurred in September.

Further detail of the accounts and some of the larger variances will be explained at the board meeting.

Statutory Accounts - year ended 31 March 2016

Following the adoption of the annual Financial Statements at the September Annual General Meeting the accounts have now been submitted to Companies House. The accounts can also be viewed on the LEP’s website.

Recommendation

The Board is invited to note the contents of report.

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Agenda Item 8

Devolution

Author: Chris Starkie

Summary

This paper provides Board members with a short update on the progress being made on the East Anglia devolution deal since September’s Board meeting

Recommendation

The Board is invited to note the contents of this report.

The Board is also invited to agree to an additional Board meeting on November

Devolution update

Since the last Board meeting the LEP has continued to remain involved in the devolution process.

LEP Board member Steve Oliver deputised for Mark Pendlington at a meeting of the devolution leaders group last month.

The leaders group agreed to commission the LEP to lead on an economic strategy for the mayoral combined authority.

This will be an overarching plan owned jointly by the MCA and the LEP under which will sit a number of other more detailed plans relating to areas such as transport and housing.

It is anticipated the new plan will be built from the existing LEP Strategic Economic Plan and also serve as an updated SEP. More information on this can be found in the paper supporting Agenda Item 11 – Updating the Strategic Economic Plan.

Work is also underway on refining the governance structure of the MCA, including the development of place boards where possible in accordance with the principle of double devolution – ensuring decisions are taken as locally as possible.

At the same time work is underway on a number of workstreams including skills.

The Leaders Group received an update on the progress of the new Work and Health programme, which is the successor to the Government’s Work Programme.

This remains in the early stages of development, with the Government currently developing the contract packages.

More progress is being made on the area review of colleges.

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As part of the devolution process, the Government has agreed for the review to be chaired by a local person. Peter Funnell, a member of the LEP Skills Board, has been appointed by the Leaders Group to chair the review.

The review will involve all the colleges in the New Anglia LEP area. It is a nationally driven process to establish the best structure to offer provision based on the current and future needs of learners and employers within the local area.

The review steering group includes officials from Government as well as officers from Norfolk, Suffolk and the LEP is preparing for the review which will begin in December and conclude by the end of March.

Consultation meetings

Chris Starkie and colleagues from the Norfolk and Suffolk chambers participated in four meetings with councillors from Suffolk and Norfolk to consider the findings of the public consultation.

Ben Page, chief executive of Ipsos-Mori, presented the findings of his research which involved telephone interviews with just over 6,000 residents.

This showed broad support for devolution and general support for the deal including a mayor and combined authority.

This contrasted with the open access online consultation which, while also showing support for devolution, was negatively inclined towards a mayor and combined authority.

Ben explained his phone research was double the size of the online survey, and included a representative sample of the population of Norfolk and Suffolk. The online survey by comparison over-represented middle aged people and under-represented older and younger people.

Chris Starkie outlined why the LEP Board was supportive of the devolution deal and presented the findings of our business consultation, which showed overall strong support for the deal on the table.

This support from business for the deal was confirmed by Matthew Darroch-Thompson from Suffolk Chamber as well as Caroline Williams, Nova Fairbank, Paul McCarthy, Heather Garrod and Michael Baldwin from the Norfolk Chamber.

Open letter to the media

MPs, local authority leaders, the LEP and the chambers of commerce have written an open letter to councillors and the media highlighting the benefits of devolution and the opportunities it will bring.

The letter, attached to this report, (Appendix 1) was signed by the leaders of the 12 participating authorities and Mark Pendlington, 13 MPs and one MEP and the chief executives of the two chambers of commerce.

Next steps

The Secretary of State for Communities and Local Government is now considering the consultation and the proposal to create a mayoral combined authority. He must have regard to the consultation in deciding if the proposal meets the statutory tests - in essence that the creation of a mayoral combined authority would improve the delivery of services.

If he decides it meets the tests, the Secretary of State will then publish the order establishing the mayoral combined authority. This, a statutory instrument, must be laid before parliament and approved by both houses.

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However because this is a local proposal, it must first be approved by the 12 local authorities and the LEP.

Because of delays in getting the orders drafted by Government lawyers, the draft order is now not expected to be published until the first week in November.

The Secretary of State is expected to lay the order in the House of Commons on November 24th, the day after the Autumn Statement. This would still enable a mayoral election in May next year.

Before this can take place, local authorities have to consent to the order, with council meetings now taking place between the 17th and 23rd of November.

The LEP will also need to organise a meeting in this window – mindful of clashes with Board members who are leaders of participating authorities.

Recommendation

The Board is invited to note the contents of this report.

The Board is also invited to agree to an additional Board meeting between 17th and 23rd of November.

Time to be bold More jobs, better roads, better broadband and phones, more and better housing

Norfolk and Suffolk are at our best when we are innovative and bold. Traditionally, we have been a great draw for holiday makers and been known for great companies in financial services, in food, drink and agriculture, in manufacturing and in offshore energy production.

Today, we have developed great strengths in culture, clean, renewable energy, in ICT and digital technologies, in life and bio sciences and have many technology start-ups across both counties. All of this is underpinned by world class universities.

This has happened and we have lost none of our traditional strengths or our vibrant local identities. We have many of the components in place for a modern and exciting place to live, work and learn. But we can and should go further.

This sentiment is echoed in a recent survey where people across the two counties told us; remove the barriers to joined up Government, connect us better, help us to move around more efficiently and let us have a say over decisions that affect our lives. Furthermore almost 100 businesses and business organisations, representing more than 82,000 employees with an annual turnover in excess of £8bn (more than 25% of the area’s entire GVA), signed letters urging Government, the LEP and local authorities to support and implement the deal.

A better connected and more prosperous future for Norfolk and Suffolk is the reason why we are supporting a plan for Government to hand more powers and funding to Norfolk and Suffolk. The plan will take decision making and accountability away from Whitehall and put it into the hands of local people.

In the first wave of these devolved powers we have secured:

£750 million over 30 years to underpin investment in creating higher paid jobs, in helping ourbusinesses expand, in new road and rail links, coastal defences and in better broadband andphone services.

£130 million for much needed affordable homes for young, old and key workers, in our ruraland urban areas, including special arrangements where the need is most acute in our largercities and towns.

£25 million to improve the skills and life chances in the workforce of today and tomorrowencouraging them to stay with us and help us improve further.

£225 million for investment in local transport.

These are priority areas that were, unsurprisingly, reflected in the survey results. If we go ahead a new Combined Authority (councils working together more efficiently) and Mayor will democratically work with local leaders to generate a bottom up plan and set of priorities that reflect the needs of local people, businesses and places across Norfolk and Suffolk.

The Mayor and Combined Authority will not necessarily lead to an additional layer of Government – but accelerate our councils working more effectively together, saving time and money. The Mayor will work as part of a team alongside our MPs, our local authorities and our business leaders to champion our area nationally and internationally. This is just the start and we will look to secure more devolved powers, responsibilities and funding as our new relationship with Government develops.

We want to shine a light on the great people, places and business we have across our two counties. We want to be a truly international economy, competing and winning in the UK and global

APPENDIX 1

marketplace, and deserve to be at the top table with places such as Cambridge and Peterborough, the North West and West Midlands. Government have been clear with us – “You have real potential, fantastic people and wonderful places. Why not create the right arrangements locally so we can give you the opportunity to take decisions locally, support those decisions with money to spend and go on to realise your potential?” Norfolk and Suffolk can be even greater places to live, work and learn, that is what local businesses and people deserve. As Local Authorities approach landmark decisions on behalf of the future of people and places in Norfolk and Suffolk we, the elected representatives, local authorities, and businesses of the area, wanted to reiterate our support for this opportunity to help our people, places and businesses reach their full potential. Signed by:

Local authority Leaders MPs Andrew Proctor (Broadland District Council)

Peter Aldous (Waveney)

John Fuller (South Norfolk Council)

Richard Bacon (South Norfolk)

Cliff Jordan (Norfolk County Council)

James Cartlidge (South Suffolk)

Brian Long (Kings Lynn and West Norfolk

Borough Council)

Jo Churchill (Bury St Edmunds)

Colin Law (Waveney District Council)

Therese Coffey (Suffolk Coastal)

Colin Noble (Suffolk County Council)

George Freeman (Mid Norfolk)

David Ellesmere (Ipswich Borough Council)

Ben Gummer (Ipswich)

James Waters (Forest Heath District Council)

Matthew Hancock (West Suffolk)

Jennie Jenkins (Babergh District Council)

Norman Lamb (North Norfolk)

John Griffiths (St Edmundsbury Borough Council)

Brandon Lewis (Great Yarmouth)

Nick Gowrley (Mid Suffolk District Council)

Daniel Poulter (Central Suffolk and North Ipswich)

Ray Herring (Suffolk Coastal District Council) Keith Simpson (Broadland)

Elizabeth Truss (South West Norfolk)

Business representatives MEP

Mark Pendlington (New Anglia LEP)

Vicky Ford (East of England)

Caroline Williams (Norfolk Chamber)

John Dugmore (Suffolk Chamber)

Independent Chair of the leaders Andy Wood

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Agenda Item 11

Updating the Strategic Economic Plan

Author: Lisa Roberts

Purpose

To seek agreement from the LEP Board to begin work on an update of the Strategic Economic Plan (SEP).

Recommendation

The Board agrees that the LEP leads on an update of the Strategic Economic Plan which will serve as a single economic plan for the LEP and the proposed mayoral combined authority.

Background

The Strategic Economic Plan was published in April 2014 and provides the blue print for how we work with partners to deliver economic growth across Norfolk and Suffolk up to 2026.

Last month we published our SEP Impact report outlining progress being made against the SEP, showing good progress against some of our targets – new jobs and businesses – but highlighted that there is more work to do to meet our targets covering housing and productivity.

At the same time there have been a number of significant changes in the economic and political landscape, which will directly impact on the delivery of the SEP.

The Brexit vote and change of Government is likely to have an impact on the UK economy, and most importantly for the LEP, the tools and levers which are available to support local businesses, including the Government’s planned Industrial Strategy.

In addition the proposed devolution deal for Norfolk and Suffolk presents significant opportunities to take advantage of additional funding and powers in order to support our overarching economic ambitions.

The evidence which underpins the SEP has evolved and expanded. However there are still areas where further information and data is required to ensure our strategies, plans and decisions achieve the economic transformation change we all strive for.

There are a number of regional significant capital projects which will be realised post 2026. However a great deal of the work to achieve them has already started, indicating the SEP needs a longer timeline than 2026.

Assuming devolution goes ahead and the mayoral combined authority is established, it will

require an overarching economic strategy.

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Chris Starkie attended a meeting of Norfolk and Suffolk leaders last month where the

Leaders agreed that the LEP should lead the development of this strategy.

The current SEP provides strong foundations, and we believe time is right to evolve the SEP and create a single economic strategy for the LEP and proposed Combined Authority.

Regardless of the outcome of devolution we believe it is a good time to update the SEP further ensuring it reflects the evolving local economy and changing external factors.

Government officials are supportive of this approach, and have said most LEPs have plans to produce the next generation of SEPs.

Next Steps and Timetable

Between now and January the LEP executive will work with local authority colleagues and other partners to develop the scope for the update along with a resources plan and timeline for the development of the next SEP.

Reflecting on the discussion from the last Board meeting on Productivity and the importance of developing a robust strategy and plan to achieve our ambition, we are proposing to incorporate the action of doing further scoping work as part of the work for the update of the SEP. Productivity will be a golden thread for the SEP update.

Over the next couple of months will know the outcome of Devolution, Growth Deal 3 and the Autumn Statement. It is also hoped we will have a better understanding of the role Government would like us to play in the development of the Industrial Strategy and the requirements which will come from the updated national assurance framework.

Our initial thinking on a timetable is:

Timing Activity

Between now and 23rd November

Growth Deal Three – LEPs will be informed of their allocation and modifications made to the Deal to reflect the allocation and profile awarded. Public announcement will be around Autumn Statement.

Week beginning 21st November

Autumn Statement and decisions taken on whether to proceed with devolution

November/December Develop:

The scope of the next SEP

Detailed delivery plan and timetable

Resource plan and assemble resources

January Board SEP Update scope and delivery plan presented to LEP Board for agreement.

Jan / Feb / March/ April Work commences – Evidence base gathering

April/ May/June Review of evidence and development of SEP II

June/ July First Draft to LEP Board – Public Consultation

August Final amendments

September Final updated SEP Agreed by LEP and CA

September/October SEP II Published

Recommendation

The Board agrees that the LEP leads on an update of the Strategic Economic Plan which will serve as a single economic plan for the LEP and the mayoral combined authority.

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