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New Anglia Board Meeting

Tuesday 27th September 2016

10.00am to 12.30pm IP-City Centre, 1 Bath Street, Ipswich, IP2 8SD

Agenda

1. Welcome

2. Apologies - 15 mins

3. Declarations of Interest

4. Actions / Minutes from the last meeting

5. Managing Director’s report Inc. Annex 1: Companies in financial difficulties CONFIDENTIAL - 20 mins

6. Devolution - 15 mins

7. Growth Deal: Part 1 - Projects Progress Report Part 2 - Evaluation of Pipeline Part 3 - Snetterton Employment Area Proposal CONFIDENTIAL - 30 mins

8. Productivity Commission - 30 mins 9. Sector support: EEEGR and Tech East CONFIDENTIAL - 15 mins 10. Business Performance Reports - 5 mins 11. Finance Report - 5 mins

12. Any Other Business - 5 mins

Followed by lunch and Annual General Meeting at 1.30pm Date and time of next meeting: Wednesday 19th October at Snape Maltings, nr Aldeburgh, IP17 1SR 10am to 12.30pm

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New Anglia Board Meeting Minutes (Unconfirmed) 20th July 2016

Actions from the meeting: (20.7.16) Item No: 4. Minutes of Last Meeting

Finance Report – Communications Team to update the Communications Strategy and Brand Guidelines and circulate to board members.

6. Devolution Executive team to continue to update board members over the summer period with

details of any developments on the devolution deal.

RH CS

Present: Cllr David Ellesmere (DE) Leader, Ipswich Borough Council

Doug Field (DF) East of England Co-op

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

Cllr Cliff Jordan (CJ) Leader, Norfolk County Council

David Marsh (DM) Gt Yarmouth Tourist Authority/Bateman Groundworks

Cllr Colin Noble (CN) Leader, Suffolk County Council

Steve Oliver (SO) MLM Group

Mark Pendlington (MP) Anglian Water (Chair)

Prof David Richardson (DR) Vice Chancellor, UEA

Dr Tim Whitley (TW) Managing Director, BT

In attendance:

Lindsay Abigail (LA) New Anglia LEP Deborah Cadman (DC) Suffolk County Council

Chris Dashper (CD) New Anglia LEP

Rebecca Holmes (RH) New Anglia LEP

Shan Lloyd (SL) Assistant Director, BIS London & East Fiona McDiarmid (FM) Norfolk County Council

Charley Purves (CP) New Anglia LEP

Alastair Rhind (AR) New Anglia LEP

Lisa Roberts (LiR) New Anglia LEP Sue Roper (SR) Suffolk County Council

Cllr Richard Smith (RS) Cabinet Member for Finance, Suffolk County Council

Keith Spanton (KS) New Anglia LEP

Mark Stanton (MS) New Anglia LEP Chris Starkie (CS) New Anglia LEP

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8. SEP Impact Report Comments or challenges to the SEP impact report to be sent to LiR as soon as possible

to enable this to be launched at the September AGM.

Ambitions Dashboard to be revisited to ensure figures around Productivity are clearer.

12. Any Other Business Investment in Companies – A formal policy to be considered by the executive team

and brought to the September board meeting for board approval.

ALL LiR CS

1 Welcome from the Chairman

Mark Pendlington (MP) welcomed everyone to the meeting and thanked Tim Whitley (TW) for hosting the board at BT Adastral Park. MP also welcome Charley Purves (CP) back to New Anglia LEP after maternity leave.

2 Apologies

Mark Goodall Aker Solutions Cllr Andrew Proctor Leader, Broadland District Council Lindsey Rix Aviva General Insurance Dr Nikos Savvas Principal, West Suffolk College Davina Tanner Britannia Enterprises Cllr Alan Waters Leader, Norwich City Council

3 Declarations of Interest

David Richardson – UEA Enterprise Centre; Norwich International Aviation Academy; UEA partners in education with EEEGR, 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. David Marsh – Governor of East Norfolk Sixth Form College 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) Colin Noble – Suffolk County Council are funders of the Cornhill Regeneration Project.

4 Minutes of last meeting 21 June 2016

Actions of the last meeting updated as follows: 1. Welcome - Jeanette Wheeler from Birketts has accepted the offer to join the board with effect from September 2016. 4. Minutes of Last Meeting - A table of actions from previous meetings has been produced to ensure these are not overlooked. Open actions to be carried forward. 5. Managing Directors Report Ipswich Vision Board – the section of report relating to Ipswich Park & Ride has been amended to reflect that the relevant infrastructure was to be put in place before the revised service commenced. SEP Impact Report has been brought to July Board Meeting. A confidential Project pipeline document was circulated to Board members on 12 July 2016 outlining current funded and unfunded projects. 6. Finance Report – The Communications Strategy and Brand Guidelines are being updated and will be circulated to board members shortly.

RH

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7. Business Performance Reports – Communications team will be circulating the brand guidelines to show how GBF/GPF branding will relate to the EAST brand. 9. Growth Deal Three Update – A copy of the presentation for the ministerial Challenge Session was circulated on 28 June 2016; comments from board members were reflected in updates before this was presented to Lord Heseltine. 10. Devolution Agreement MP contacted all Local Authority Leaders encouraging support for the Norfolk/Suffolk devolution deal. A press release from the Communications Team was prepared on 24 June 2016, outlining reasoning behind the endorsement of the Devolution deal. The minutes were accepted as a true record of the meeting held on 21 June 2016.

5 Managing Director’s Report

Chris Starkie (CS) introduced this item taking the paper as read and highlighting a few key elements.

The Youth Pledge Marque launch was held in Ipswich. This was well attended by a variety of organisations and individuals with the emphasis on connecting schools and young people with businesses. MP thanked all those involved and advised of his willingness for this to be rolled out to businesses across the counties.

Focus on Innovation Mark Stanton (MS) is working to arrange a meeting with Board members to move forward with the Innovation Delivery Strategy.

Ipswich Vision Developer Engagement breakfast event was held in Westminster on 4 July which showcased the plan for Ipswich and forged links with key supporters. Public consultation for the Cornhill development has begun for which a lot of support has been generated to date with, in the region of 350 responses.

CS attended the LEP Chief Execs meeting in London on 19 July. Tom Walker was in attendance and provided an update on government changes. Ministerial changes are now in place and changes to departments have been made, specifically with BIS and DECC combining but retaining two permanent secretaries to the department. There will be a continued focus on devolution and local growth. It was stated that government will work hard to prevent a recession. Alignment of BIS and DECC could be beneficial for the LEP to ensure cohesion around our projects. The role of the LEPs is more significant now given the new opportunities around growth and international trade.

The Board agreed To note the contents of the report.

6 Devolution Update

CS introduced this item and took the paper as read inviting questions from board members. The consultation is now live and active. Three breakfast meetings are taking place week commencing 25 July which are well booked. Deborah Cadman (DC) commented that Norfolk and Suffolk are attracting a lot of interest from organisations and resources.

A meeting scheduled for 25 July with senior civil servants will discuss in more detail, the implications for the non-consenting authorities. Further discussions will need to take place with government around the projects that will have an impact on those areas not covered by the deal. The board will also need to discuss how funding is spent from other sources to support those projects.

It is understood that the funding attached to the deal is as set out regardless of those authorities that have opted out. Business cases will need to be put forward to bid for any of those funds.

Non-consenting authorities are still included in discussions and events around the deal and are

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invited to take part in the consultation process.

Communication from CS and the team will continue with board members over the summer period providing details of developments on the devolution deal.

The Board agreed To note the contents of the report. To receive further updates as progress is made.

CS

7 Impact of EU Vote Report

Alastair Rhind (AR) provided the board with an overview of the report. The current projects will not be affected by the Brexit vote and these projects will continue. Pipeline projects are of concern especially those in the early stages of conception with a number that are being worked up and are within government assessment and appraisal. This process of new funding agreements has now stalled whilst decisions are made. Government were clear that there is no alternative to EU funding.

David Richardson (DR) recently hosted a meeting with local universities and colleges, including those in Norfolk, Suffolk, Essex, Cambridge and Peterborough to discuss devolution and Brexit. Challenges were discussed around EU funding and recruiting students and staff from the EU and further afield, as well as infrastructure funds. There are ways to mitigate these issues and working together this message can be portrayed. A letter is being drawn up with a request to meet with regional MPs ahead of the Autumn Statement. Steve Oliver (SO) also plans to lobby government with views and requests from a cross-sector forum to ensure the East has a voice. It was agreed that a joined up and consistent message would have most impact.

There is still approximately 50% of the ESIF funding that has not been committed across all three programmes. Whilst there are a great deal of unknowns in the process, it is important to identify short and long term prospects for the remainder of the programme. David Ellesmere (DE) suggested that it would be beneficial to have a sector by sector report on the potential effects of the fall in the pound.

CS highlighted a number of recommendations for the board to consider:

Short-term recommendations:

Work with government to resolve immediate EU funding issues and those in the pipeline and to establish advice to give to partners.

For the LEP to act as a filter to government about Brexit issues for impact reports from sectors.

Promote the area and highlight successes and opportunities.

Medium-term recommendations:

Work with partners to channel funding into the area, i.e. funding that is available for regeneration and local growth.

Lisa Roberts (LiR) and Alastair Rhind (AR) are soon to be in discussion with the Brussels office and will be meeting with them in September to understand how they can be supported.

CS talked through an additional confidential paper regarding the impact of the EU vote on the LEP growth programme. The programme is partially operating at risk given delays in signing off the project by government. CS detailed how the programme is currently being funded and set out two options for the board to consider going forward. Following discussion, it was felt that it would be prudent to continue to support existing commitments until the end of October and for a further options review to be considered at the September board meeting. Shan Lloyd (SL) confirmed that Growth Hubs are still important and the Ministers understand the impact of the delays. The board agreed to endorse all recommendations in the report and raised no further concerns.

The Board agreed To the recommendations outlined in the report.

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To endorse the recommendations set out in the additional confidential paper.

8 SEP Impact Report

Lisa Roberts (LiR) talked through this report. It is envisaged that the SEP Impact report will be produced every two years with a formal summary delivered to the board on an annual basis. A copy of the new ambitions dashboard was tabled for the board members to consider.

John Griffiths (JG) commented that housing delivery does not appear successful suggesting there is a need to boost the emphasis on this in the document; this is an area of focus for the LEP with CS and LiR having recently met with representatives from the Housing & Finance Institute.

The impact report is due to be launched at the AGM in September; any comments or challenges to be sent to LiR as soon as possible. DE suggested that the figures around productivity were confusing; LiR explained this was due to the reporting mechanisms which cover the various data sources and this will be revisited to ensure the information is clear.

The Board agreed: The final draft of the SEP impact report with the amendments as discussed.

ALL LiR

9 Growth Deal Three Proposal

A Growth Deal Three challenge session with Lord Heseltine took place on 14 July to which MP was accompanied by CS, LiR and Tim Whitley (TW). MP expressed thanks to all those involved in preparing the document and attending the session. Further to this meeting and in advance of today’s board meeting, a copy of the full proposal was circulated to board members for comment.

An informal drop in session was also held for local MP’s at Portcullis House on 4 July allowing them the opportunity to input into the proposal together with additional one to one meetings for those who were unable to attend.

The proposal will now be circulated to Local Authority Leaders and Chief Executives and updated to reflect any feedback in advance of the 28 July submission deadline. Lobbying will continue over the summer with the outcome of the proposal due to be announced on or around the Autumn statement.

The Board agreed To note the content of the paper and annexes and for the proposal to be endorsed and

submitted to government.

10 Finance Report including LEP Audit and Accounts

Keith Spanton (KS) introduced this item taking the paper as read and delivered an overview of June’s management accounts detailing a surplus of £32,601 to 30 June 2016, ahead of budget.

KS also provided an overview of the Audit Completion Document prepared by Lovewell Blake and the draft financial statements for the year ended 31 March 2016. Doug Field (DF) has now taken over responsibility for finances and took part in the audit clearance meeting held on 5 July.

The Board agreed the following: To approve the annual accounts and audit completion document. To delegate authority for signing of the accounts and audit letter to Mark Pendlington,

Chairman and director, Doug Field.

11 Business Performance Reports

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

Growth Programme ERDF programmes continue to operate but consideration will have to be given to RAG ratings pending the outcome of the bid application, specifically those rated as amber. The Micro Grant Scheme is yet to start as this is supported by the Business Growth

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Programme and dependant on the ERDF application.

Growing Places Fund report is now in a new format and includes details of the projects, those that are completed, live and in the pipeline together with their RAG rating; this new format addresses previous queries raised by the board. As a result of the recent Ipswich Vision developer engagement event held in London on 4 July, positive conversations have commenced with a number of developers which are currently being managed by the LEP and will be reflected in the report going forward

Growth Deal CS provided further information around the amber projects and advised that the Beccles and Haverhill projects are currently receiving further attention.

New Anglia Capital is progressing with investments and companies receiving support.

The Board agreed the following: To note the contents of the report.

12 Any Other Business

Investment in Companies – CS brought to the boards attention a request for funding from a company in administration. It was deemed that it would be a high risk investment and not one that the board would look to endorse at this time. Consequently, discussion took place around the policy the LEP should adopt following a request to support a company. The board agreed that a formal policy should be implemented and this will be considered by the executive team and brought to the September board meeting for board approval.

Rebecca Holmes, Head of Communications and Engagement – MP advised the board that RH would shortly be leaving her role and wished to place on record thanks for her hard work during her time with the LEP in transforming the Communications function and to wish her well for the future.

David Marsh – David Marsh will also be standing down as a board member with effect from today’s meeting. MP thanked him for his time on the board and acknowledged the recognition he has brought to small businesses and the tourism sector within the area, again wishing him well for his future projects.

CS

Date and time of next meeting: Scheduled for Tuesday 27th September 2016 10.00am to 12.30pm at IP-City Centre, Ipswich. This board meeting will be followed by the AGM at 1.30pm

New Anglia Local Enterprise Partnership Board Wednesday 27th September 2016 Agenda Item 5 - Managing Director’s Report Author: Chris Starkie

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

• Devolution: A summary of the Consultation responses on the Norfolk and Suffolk devolution deal and proposed mayoral combined authority have been submitted to the Secretary of State for Communities and Local Government. There was a significant support for the proposal from the business community, reflected at business events organised by the LEP and letters of support included in the consultation. (More in agenda item 6)

• Brexit: The LEP is coordinating the gathering of economic evidence from partners locally to understand the ongoing impact of Brexit. (More information below).

• European Funding: The Government has announced it will underwrite programmes drawing down EU funding provided the agreements can be signed by the Autumn Statement on November 23rd. The Government has now signed the LEP’s flagship Growth Programme reducing uncertainty for the programme.

• Industrial Strategy and LEP Network research: The LEP executive is working with LEPs across the country to help shape the Government’s new industrial strategy. LEPs are making the case that the strategy should have a strong place dimension in order to work and LEP are well placed to play a key part. At the same time New Anglia LEP is working with other LEPs across the country to look at the future role of LEPs in the light of devolution and the industrial strategy.

• Growing Places Fund: The re-launch of the Growing Places Fund in July has helped stimulate the pipeline, which now stands at twenty one. It is expected that quite a number of these will be bought to the LEP’s Investment and Appraisal Committee in October for their consideration as outline or full applications to the fund.

• Growing Business Fund: To the end of August 2016 309 grants have been awarded, valued at £13.6m, unlocking more than £170m of private match funding and creating 2,209 new jobs, almost 1,000 of which have already recruited.

• Agritech: New Anglia LEP continues to work with GCGP to deliver the Eastern Agritech Growth Initiative which has created more than 700 new jobs to date and secured almost £9m of private match funding through 53 awarded projects totalling £4.4m of total grant value, (29 projects have been delivered to date) For each growth grant there are 5 R&D grants awarded. Discussions have commenced around the future of the programme beyond the current financial year.

• Oil and Gas Taskforce: 16 companies have been visited and offered support via the growth hub, as they can demonstrate they are deriving at least 50% of their turnover from the oil and gas sector. This has resulted in 7 applications for a grant towards the Oil and Gas consultancy scheme and 3 successful onward applications to the Growing Business Fund. The Oil and Gas Taskforce was earlier this month highlighted by Government as an example of best practice in the Government’s new workforce plan for the Oil and Gas sector

• Growth Programme: The LEP Growth Hub has now engaged with over 5,600 businesses, providing over 25,000 hours of direct business support. Government has now signed the ERDF contract for the Growth Programme, incorporating support for the Growth Hub, business start-up scheme and the micro grant scheme. The Micro Grant Scheme has been launched and we are in the process of receiving applications from across Norfolk and Suffolk. A Marketing and Communications ‘Task and Finish Group’ has been created to oversee the promotion of the programme and its individual elements, working with a range of partners. The Growth Hub is currently in the process of recruiting five new

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Business Growth Advisers, which will take the total number of advisers from eight to thirteen. The LEP is in the process of recruiting a Finance and Compliance Officer to oversee finance, compliance and claims relating to the programme. Growth Deal: Funding agreements are complete for both the Norfolk and Suffolk broadband awards, with full defrayal of £5m for each county expected before the end of the financial year. Final information for both the Kings Lynn Innovation Centre and the Aviation Academy projects has now been received, enabling final drafting of the legal agreements to be completed (more information in agenda item 7).

• Communications: July saw the LEP and Chambers host a series of events to call for the support of business for the Devolution deal for Norfolk and Suffolk, gaining strong coverage across TV, radio and newspapers. There was further coverage for the launch of the New Anglia Youth Pledge Marque and the re-launch, with updated branding, of our suite of business support programmes, the Growing Business Fund, growing Places Fund and Micro Grants Scheme, some of which we’ve brought along today.

• August was dominated by the announcement that Abellio had won the contract for the Great Eastern Main Line, together with the promise of more than a thousand brand new trains across every line in the network. Our Rail Taskforce was rightly credited for all its hard work across all media platforms, including national coverage in the Times, Financial Times, The Guardian, the Evening Standard and the Mirror. Our work on delivering business support for the Devolution deal formed part of a consultation document sent to Government, showing business leaders representing some 80,000 employees/learners supporting the deal.

• Finance: Management accounts for 31 August 16 – year to date income is £403k with an operating surplus of £32k, exceeding budget by £8k.

• Operating cash balance is £594k which is in line with management expectations. • The LEP’s year-end financial statements to 31 March 2016 were approved by the

board at the July board meeting. Lovewell Blake has now signed the auditor’s reports and issued a final set of accounts. A summary of these accounts will be presented at the annual general meeting after the September board meeting.

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LEP actions and activity This section provides a detailed update on other activities and key issues since the July board meeting

Impact of Brexit At the last meeting on 20th July, the LEP board started to look at the emerging implications of the UK’s decision to leave the European Union. Clearly it is early days, but the Board requested that the LEP Executive ensure that we keep an eye on how this decision is impacting the local economy, both positively and negatively. The Government has also asked that all LEPs do this and report centrally on how business activity and decision-making is being influenced by Brexit. The LEP has therefore written to a number of local partners to ask them to participate in an ongoing intelligence gathering exercise which the LEP has offered to co-ordinate. We shall be collecting and sharing factual and anecdotal evidence and linking this to SEP priorities where possible. The intention is that collectively we can gather information across sectors, geographies and themes which will enable us to gain a much wider sense of the economic mood than any one partner would be able to achieve individually. Information gathered will be reported to the Board and to Government at regular intervals, and shared with partners. In order to gather as complete a picture as possible, we will be gathering information on a confidential and a non-confidential basis. In other words information will be anonymised where requested by partners. This is critical as we know businesses and other organisations are prepared to be more confident on a confidential basis. In addition to this, and as reported at the last Board meeting, the LEP is developing a number of indicators and measures that we will monitor on an ongoing basis to help inform us of the health of the local economy in the run up to and post-Brexit period. It will take a couple of months to get this intelligence mechanism up and running, but there are some early trends starting to emerge. For example colleagues in the tourism sector noticed an upturn in demand immediately following Brexit. The weakening of the pound and good weather have clearly been contributing factors. Against this those relying on imported goods, from high street electrical retailers to food processors, are facing significant price increases. There are some reports of these having to be absorbed by the importers, some by the retailers and much of the impact being passed onto consumers. It is clear from our research that particularly electrical goods and some food products will at least in the short term are already becoming more expensive, with some of this being passed straight to consumers. The LEP has also agreed with the East of England European Partnership in Brussels (Brussels Office) to commission a detailed analysis of EU funding programmes currently available to Norfolk and Suffolk so that we can assess the gaps in local investment opportunities that may result from Brexit and plan and lobby accordingly. This work will begin shortly and is expected to report by the end of the year.

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European Structural Funds One of the immediate impacts of the Brexit vote was the future of EU funding. Of specific concern to the LEP is the future of the European Structural and Investment Funds. The New Anglia area has been awarded a notional allocation of £86.4m. After the referendum the Government paused the signing of contracts, while it reviewed its position. The Chancellor has since announced that projects where contracts were in place or where contracts were ready to be signed would be underwritten by Government, even if they go beyond the date the UK exits the EU. Further information will be given at the Autumn Statement. In practice what this means is that any projects that can be signed by the Autumn Statement will be underwritten. The process for projects signed after that date will be revealed at the Autumn Statement. From our perspective the Government’s announcement is welcome. The Government has now signed the contract for our Growth Programme, which is our flagship business support programme. We are due to have our Project Implementation Visit from Government officials in the next few weeks, after which we can start claiming funding for the project. We have also begun recruiting our additional Growth Hub advisers, which will enable us to expand our service to businesses. The Government’s decision also means that further projects close to approval are likely to have their contracts signed, including a project supporting cultural creative businesses which has been submitted by our Cultural Creative sector group. However there is still uncertainty over the funding which will still remain unallocated by the Autumn Statement – which will be a significant percentage of the overall programme. We are in dialogue with Government and LEP Network colleagues about this, and also making the case for the continuation of structural funds post Brexit. Industrial Strategy In her first speech, the Prime Minister highlighted the need for an industrial strategy as part of her vision of creating a nation that works for everyone. At the same time she enshrined industrial strategy in the name of the new department of Business, Energy and Industrial Strategy. Since then we and fellow LEPs have been talking to Government colleagues about what the Government’s plans for an industrial strategy might look like, and how the strategy might build on or differ from the industrial strategy developed by the Coalition Government. This policy was led by the Liberal Democrat Business Secretary Vince Cable and pretty much dropped by his successor Sajid Javid. We are expecting a speech from Business Secretary Greg Clark on the new approach, which is expected to see a return to a more interventionist approach. At the LEP Network chief executives meeting earlier this month, Government colleagues accepted an offer from the LEPs to support the development of the strategy, particularly feeding a spatial dimension into the development of the policy. LEPs are developing a short paper for Government on this and there is also the opportunity to feed into the Business Select Committee’s investigation into the Industrial Strategy. The LEP executive would welcome input from the board around our approach to

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supporting the Industrial Strategy. There is a close fit between the development of the Industrial Strategy and our Productivity Commission, which is covered more fully in agenda item eight. This is because the productivity commission is likely to produce recommendations which can help sharpen the effectiveness of an industrial strategy. LEP Network Research The LEPs have commissioned Metro Dynamics to carry out a piece of work looking at the current shape of LEPs and the opportunities and threats for LEPs from the development of devolution deals and future Government policy such as the Industrial Strategy. Chris Starkie has been one of four LEP chief executives developing the brief and preliminary findings were shown at a workshop in London earlier this month. 34 of the 38 LEPs have engaged in the process, participating in meetings with Metro Dynamics as well as completing an online questionnaire. The final piece of work will be made available to LEPs at an event next month.

Ipswich Vision Board The LEP has continued to support the Ipswich Vision project. Over the course of the summer, public consultation has taken place on two flagship Ipswich Vision projects. Ipswich Borough Council are considering public comments on the Cornhill enhancement project, towards which the LEP has agreed to provide up to £1.6m, and Suffolk County Council is analysing views on the Upper Orwell Crossings. Consultants will be appointed in the very near future to prepare strategies on improvements to the public realm, to identify future car parking needs and to make recommendations on the future success of markets in the town. Finally, construction of the Ipswich Waterfront Innovation Centre at the new University of Suffolk is complete and the formal opening will take place on 3rd October. The IWIC is located in the University’s Atrium Building, which has undergone a £5.5m refurbishment made possible thanks to a £1.85m grant by New Anglia. The new Centre will provide networking and collaborative opportunities with subject areas including: STEM (Science, Technology, Engineering and Mathematics), Digital Creative, Leadership, Business Management, and a range of other subject areas reflecting the academic expertise within the University and across New Anglia. Enterprise Zones Space to Innovate Enterprise Zone. The team is working with local authority partners to sign off the joint MoU between the LEP & the Secretary of State supported by the local authorities for the Space to Innovate Enterprise Zone. Eight out of the nine signatures will have been collected by September LEP Board, with the final signature to be collected after one of the authority’s October Cabinet meeting. There is also an MoU for the Great Yarmouth & Lowestoft existing EZ incorporating the extension sites due to come on board in April 2017. Tailored legal agreements for each of the seven authorities have been sent out by the EZ team for consideration and site project group meetings are already taking place. Site development plans are expected back from partners by the end of September, in preparation for amalgamating into the draft implementation plan to DCLG/BEIS for the end of October. Progress on the Great Yarmouth/Lowestoft EZ is captured in the Business Performance Reports. A full report on the whole EZ programme will be presented to the October board. (More detailed information on all other LEP programmes is found in the Business Performance Reports)

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Inward investment and promotion - MIPIM MIPIM is the world’s leading property market event and brings together the most influential investors from all international property sectors - office, residential, retail, healthcare, sport, logistics and industrial, offering unrivalled access to the greatest number of development projects and sources of capital worldwide. Held in Cannes for many years, the brand has been extended into other parts of the world, and London hosted MIPIM UK for the first time in 2014. MIPIM UK is the UK's largest exhibition and conference for property professionals and provides a marketplace for industry players and international investors to meet, discuss projects and opportunities, and do business. In 2015, Norfolk County Council took a stand, and the Ipswich Vision board took another. The LEP is coordinating attendance at MIPIM UK 2016, working with local authority partners across Norfolk and Suffolk. This year, both Norfolk and Suffolk will have stands at MIPIM, facing and mirroring each other across a main aisle. Both stands will be under the umbrella of the East identity, presenting a unified proposition and stronger message about the strength and ambition of the region, alongside others such as Northern Powerhouse and the Midlands Engine. The primary objective of attendance is to generate leads with investors, developers and property professionals from the UK and internationally to invest in the East. A number of approaches are being developed to maximise engagement with delegates, present the strongest image of the East, and provide useful information on the investment opportunities in our two counties. The stands are being designed and built by Great Yarmouth business TMS Media, with large high quality images of the region. Engaging content will be available on iPads at a ‘tech bar’ and each stand will present a ‘showreel’ on a large plasma screen. Engaging, knowledgeable people staffing the stands at the event will be critical to success. A delegation of business ambassadors from Norfolk and Suffolk will be attending the event to represent the East. Ipswich Borough Council is supporting an ‘Invest in Ipswich’ reception on the Suffolk stand, to tell delegates about opportunities to invest in the town and the work of the Ipswich Vision partnership. This follows the event held at Westminster in July and will feature firms from sectors important to Ipswich. Representing advanced manufacturing will be the Chief Executive of Ipswich firm Spirit Yachts, who designed and built a yacht used by James Bond in Casino Royale. A Norfolk reception is also being planned, with speeches from high profile Norfolk business leaders. In order to stimulate interest in MIPIM amongst Norwich and Norfolk partners, a business breakfast was held at the Norwich Research Park on Friday 16th September. In addition to the work being coordinated by the LEP, Greater Norwich and Norfolk have been working closely with Thinking Place, the UK’s leading place specialists, to build a visual identity and narrative for the area. An investment brochure promoting investment opportunities across the two counties is being produced for the East. The brochure will be the key piece of collateral used to generate leads with investors, developers and property professionals. Modelled on the UKTI ‘pitchbooks’ for Midlands Engine and Northern Powerhouse, the Invest East brochure will be a catalogue of investment sites across Norfolk and Suffolk. Designed to be flexible and reusable, the brochure will be made available to inward investment partners across the region and a legacy beyond the event.

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Inward Investment and trade - South West Trade Mission On 25th/26th October a ‘Trade Mission’ will visit the region from the South West. This is the initiative of the Rigby Group that owns a number of regional airports, including Norwich International. Through their ‘Connects’ Programme, sectors and businesses are encouraged to meet and develop business links across the UK, exploiting the air links between cities and regions. This is the first such mission to visit Norwich, and the expectation is that a return visit will be made in the New Year, while other potential links will be explored. It is hoped that the LEP network and the Chambers of Commerce network will be involved and help to facilitate working collaborations and business development opportunities across the UK. The focus for the October visit is currently technology, innovation and food and farming. Individual businesses will pair-up and undertake separate visits over the two days, with a dinner held in Norwich to bring everyone together for more general networking and discussions, to which other key stakeholders may be invited. The full programme and attendance list will be circulated shortly. Bids are invited for sectors or businesses to be included in the programme. Innovation A workshop is being held on Monday 10th October to enable the Innovation Board to discuss their vision, focus on strategic innovation priorities and inform the development of an Innovation Strategy for New Anglia. This workshop is being independently facilitated by colleagues from the Innovate UK family – specifically from the national Smart Specialisation Hub and Knowledge Transfer Networks (Innovate UK is the UK’s innovation agency and work with people, companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy.) The LEP’s Innovation Strategy will be built upon the outcomes of this workshop as well as the research work undertaken last year. The Innovation Board is chaired by Professor David Richardson and its membership includes the four innovation hubs in Norfolk and Suffolk: BT, Hethel, Norwich Research Park and Orbis Energy. Transport Ely Junction Taskforce Since my last report, two meetings of the Ely Junction Taskforce have taken place and the LEP was represented by strategy manager, Marie Finbow at both of these. Cambridgeshire County Council is in the process of commissioning a road study to get an understanding of the current situation at the three Queen Adelaide level crossings from a road, rather than rail perspective. Bids are currently being invited, with a view to appointing consultants to start work on the study before the end of October. Timescales for completion of this study will be agreed with the winning bidder – estimated to be before spring 2017. Network Rail is in the process of developing a Strategic Outline Business Case for the Ely Junction to emphasise the importance of improvements to this junction and the economic benefits these will bring. This project remains a high priority for both New Anglia LEP and Greater Cambridge, Greater Peterborough (GCGP) LEP and the Strategic Outline Business Case will support the case for investment. We are expecting a first draft of the business case in the first half of October. In the meantime, both New Anglia and GCGP are working closely with Network Rail and the Local Authorities to determine the current and future projections for rail passenger growth through Ely and identify future service patterns which would deliver best value for money.

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East Anglia Rail Franchise Abellio has been awarded a nine-year contract for the East Anglia Franchise. This contract is expected to deliver transformational change for the region’s train users including:

• More than 1,040 new state of the art carriages by 2020 and journey times cut by an average of 10%.

• At least four 90-minute services (two in each direction) between London and Norwich each weekday and two 60-minute services per day between London and Ipswich

• 32,000 more seats by 2021 and free Wi-Fi for all passengers • £1 billion contract for UK train manufacturer Bombardier to supply new trains

This award will see the replacement of the entire Greater Anglia fleet, in the largest privately-funded train order in the UK, giving our region a railway which will be unrecognisable from today. This is a great success for the Great Eastern Mainline Campaign, led by New Anglia LEP. However, the award of the new franchise is not the end of the campaign; Network Rail still needs to deliver track and infrastructure improvements to ensure the full economic benefits are realised and the Rail Taskforce will be monitoring both theirs and Abellio’s performance closely over the coming weeks, months and years as it continues to champion the cause of rail passengers in the East. East Anglia Rail Summit New Anglia LEP organised a successful rail summit in Westminster on 7 September which was attended by the new Transport Minister and included key speakers from Network Rail, Abellio and DfT. The audience included MPs and a cross-section of businesses from across Cambridgeshire, Essex, Norfolk and Suffolk. This event was the latest in a series of summits for East Anglia rail, which shows the strength of the alliance which the GEML Rail Taskforce, supported by New Anglia LEP, has brought together across the counties. This summit reiterated how the GEML Rail Taskforce will hold Abellio, Network Rail and the government to account for delivering their promises. The Taskforce also restated its ambition for the highest possible economic growth in our region, looking to additional projects like East-West rail, which hold such prospects for the people of East Anglia. Copies of the rail prospectus for East Anglia ‘Our Counties Connected’ published by New Anglia LEP earlier this year were provided to all attendees. This prospectus builds on the original Rail Prospectus published in 2012 and sets out the compelling case for investment in rail across Suffolk, Norfolk, Essex, Cambridge and Hertfordshire. The event received excellent media coverage from the BBC both before and after the event and through the EADT, EDP and Rail Magazine. Great Eastern Mainline Taskforce – membership and Terms of Reference Chloe Smith MP, who co-chairs the GEML Rail Taskforce with Mark Pendlington, will shortly be going on maternity leave. It has been agreed that for the next six months or so, Mark Pendlington will lead the Rail Taskforce as sole chair. Will Quince MP is also replacing Simon Burns MP as representative of Essex stakeholders. The Taskforce is currently reviewing its Terms of Reference to take account of the next phase of work - focusing on delivery of the required investments by Abellio and Network Rail, together with the promised improved levels of service performance.

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Skills Area review of Colleges The first planning meeting for the area review of colleges took place earlier this month. The area review is part of a national programme of reviews, looking at college provision across England. As part of the devolution deal, the review for Norfolk and Suffolk is a joint exercise between Government, the devolution leaders group and the LEP. This will give local partners a much greater opportunity to influence the review, and help to ensure that the review really reflects the needs of local areas and in particular the needs of local businesses now and in the future. As part of the local input, the Leaders Group agreed the appointment of Suffolk businessman Peter Funnell as the chairman of the review. Without a devolution deal, the Government would have appointed an individual from outside the area. Further it was agreed that the review would report into the LEP Skills Board, which will report into the LEP board and the devolution Leaders group. The area review will work at pace, and will aim to reach its conclusions and recommendations by next spring. New Anglia Enterprise Advisor Network The Enterprise Adviser Network brings together schools and business people who support the schools in the provision of careers and enterprise activity. The grant offer letter from the Careers and Enterprise Company for 2016/17 has now been received by the LEP and the target of establishing 100 partnerships by 31 July 2017 has been agreed by the Steering Group. By the end of August, 55 matched Enterprise Adviser ‘partnerships’ have been established between trained Enterprise Advisers and schools and colleges. A further 33 schools and colleges (14 in Norfolk,19 in Suffolk) are ‘engaged’ and waiting for suitable Enterprise Adviser ‘matches’ or to carry out the full school/college audit/needs analysis. 97 Enterprise Advisers have signed up or are ‘engaged’ with the programme, with at least 50 currently trained, matched and actively working with schools and colleges. Additional schools/colleges and business people have expressed interest to join the programme and are being followed up by the Enterprise Adviser programme team. Following the success of the first Norfolk EA networking event, held on 11 August, the next event is scheduled to take place on 19 January at the Maids Hotel in Norwich. University Centre – King’s Lynn The LEP has been involved in two events at the newly opened University Centre at the College of West Anglia in King’s Lynn. The new £6.5m facility is one of the LEP’s flagship Growth Deal projects which was completed on time and on budget. It takes university provision in King’s Lynn to a new level - providing dedicated facilities at the centre of the CWA campus for the college and its higher education partner Anglia Ruskin University. Chris Starkie was the keynote speaker at the college’s apprenticeship and higher skills conference on Wednesday September 14th, whilst Mark Pendlington was due to visit the college on Thursday September 22nd to perform the official opening ceremony. RAF Marham skills event South West Norfolk MP Elizabeth Truss hosted a skills conference at RAF Marham, which was attended by local education representatives, local authorities, New Anglia LEP and GCGP LEP as well as the MoD and its contractors. These include Rolls-Royce, BAE Systems and Serco.

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The purpose of the session was to highlight the huge job opportunities at RAF Marham now, and the significant growth potential from the arrival of the Lightning in a few years’ time. The meeting was told that RAF Marham makes up about eight per cent of the RAF – some 3,600 military and civilian personnel and a further 1,200 contractors. There are a further 5,000 dependents. The base is one of the largest employers in Norfolk with an annual wage bill of some £100m. Key opportunities are to increase the number of local residents employed at the base, and the opportunities for higher value skills in future years. Growth Corridors & Locations Cambridge – Norwich Tech Corridor Representatives from New Anglia LEP joined colleagues from local authorities and the GCGP LEP at a meeting of the Cambridge to Norwich Tech Corridor. The initiative brings together partners from Cambs, Suffolk and Norfolk and focuses on maximising the opportunities from the recent upgrade of the A11. The project was given a soft launch at the Venturefest East exhibition at Newmarket earlier in the year. Work has been undertaken developing a simple brand proposition to market the corridor. Work is also being undertaken to identify the key assets and ways of bringing forward the sites. These include the Norwich Research Park, sites at Wymondham, Snetterton and Thetford, Red Lodge and Mildenhall and sites in East Cambs. RAF Mildenhall Steering Group A five-week public consultation has been launched on a vision for the future use of land at RAF Mildenhall. The vision builds on discussions at community and business engagement sessions during 2015 and 2016 and has been produced in partnership with New Anglia LEP, GCGP, Suffolk County Council and Newmarket and District Chamber of Commerce (which covers the Mildenhall area). Using Government funding, the Steering Group appointed strategic development and planning advisers Cushman & Wakefield to carry out an independent assessment of some of the ideas suggested at public and business engagement sessions earlier this year. The assessment was then used to design a vision and prospectus to outline the best option for the site; a mix of aviation, employment land and new housing. The consultation runs from 6 September until 11 October and all information is available on the website: www.westsuffolk.gov.uk/mildenhallfuture. There are also two public drop-in sessions:

- 29 September from 4pm until 8pm at the Forest Heath office in Mildenhall; - 5 October from 4pm until 8pm at the Jubilee Centre in Mildenhall.

The consultation feedback will be analysed and presented to Forest Heath Council on 3 November. If it is approved it will then be submitted to government.

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

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http://www.westsuffolk.gov.uk/mildenhallfuture

New Anglia Local Enterprise Partnership Board


Agenda Item 6 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 July’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 1st, 2nd or 3rd. Devolution process Formal consultation on the proposed devolution deal for Norfolk and Suffolk, including the creation of a mayoral combined authority began on Friday July 8th, running until just before the end of August. The consultation exercise was carried out by the 12 of the 16 councils in Norfolk and Suffolk who endorsed the deal as well as the New Anglia LEP. 4 district councils decided not to endorse the proposals and thereby opted out of the area of the proposed Combined Authority, but all of Suffolk and Norfolk’s residents were consulted during the consultation period. Members of the public were encouraged to give their views through a dedicated website www.eastangliadevo.co.uk. There were also a significant number of stakeholder events for local councillors and residents across the two counties. Leaflets were sent to all households in Norfolk and the consultation exercise received coverage in the media. The LEP organised three business breakfasts which were attended by more than 200 business leaders. To ensure there was a proactive engagement, Ipsos-Mori was commissioned to carry out a telephone survey of 6,000 residents and 250 businesses. Just under 3,000 people participated in the online survey, with Ipsos-Mori completing 6,080 telephone interviews with residents and 252 with business leaders. The telephone consultation questions were designed by Ipsos-Mori to ensure the process was independent. The online survey was then based on the same mechanism. The Ipsos-Mori survey was a representative sample both by geography and age. The online survey was self-selective and therefore not a representative sample. For example 48 per cent of respondents to the online survey were aged between 45 and 64, but that age group only makes up 35 per cent of the resident population.

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http://www.eastangliadevo.co.uk/

Further just 10 per cent of the respondents to the online survey were aged 34 and under, but that age group makes up 23 per cent of the resident population. Responses to questions The full consultation responses, including the questions, a breakdown of responses by district council area and the letter sent by Andy Wood on behalf of the Leaders Group to the Secretary of State summarising the findings of the consultation exercise can be found at www.eastangliadevo.co.uk. Responses to the key questions were as follows: Ipsos-Mori residents – weighted sample size 6,080 53 per cent support the principle of devolution 16 per cent opposed the principle of devolution 52 per cent supported the election of a mayor 29 per cent opposed the election of a mayor 58 per cent supported a combined authority 25 per cent opposed a combined authority Ipsos-Mori businesses – weighted sample size 252 54 per cent support the principle of devolution 12 per cent opposed the principle of devolution 47 per cent support the election of a mayor 27 per cent oppose the election of a mayor 54 per cent support a combined authority 23 per cent oppose a combined authority Online survey – self-selected sample size 2,935 51 per cent support the principle of devolution 39 per cent oppose the principle of devolution 27 per cent support the election of a mayor 62 per cent oppose the election of a mayor 35 per cent support a combined authority 54 per cent oppose a combined authority Support from key stakeholders More than 150 different organisations contacted Andy Wood, independent chairman of the devolution leaders group to lend their support to the deal. This included a letter signed by the LEP chairman Mark Pendlington and the chief executives of the Norfolk and Suffolk Chambers of Commerce which was also signed by almost 100 business leaders. In addition, business groups such as the FSB, the IoD and the CBI added their support with individual letters. Alongside a further 30 plus businesses large and small. Education institutes such as the University of East Anglia and the University of Suffolk as well as a number of colleges have also back the deal. Together the businesses supporting the deal represent around 80,000 employees and an annual turnover of more than £8bn – around 25 per cent of the area’s entire GVA. As well as support from business organisations there were also letters of support from groups such as the Norfolk Youth Parliament and a cross-section of community and voluntary groups. Some stakeholders were opposed to the deal, with the main concerns being: resistance to an elected mayor, concern about what they perceive as an extra tier of government and some who want to preserve the status quo.

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http://www.eastangliadevo.co.uk/

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. However because this is a local proposal, it must first be approved by the 12 local authorities and the LEP. We are expecting the Secretary of State to publish the order towards the end of October. This will enable local councils and the LEP to meet before November 4th to consider the plans. All councils need to make their decision before November 4th as that is the date when Government must lay the orders before parliament. This is to allow six months between the laying of the orders and the mayoral election next May. Other deals The Norfolk and Suffolk deal is one of a number of proposed mayoral combined authorities proceeding through the system. Colleagues in Lincolnshire and Greater Cambridge/Greater Peterborough have also completed their consultation for their mayoral combined authorities. Their consultation responses were broadly similar. Lincolnshire opted for an online survey only, whilst Cambs also used Ipsos-Mori. Both Cambridgeshire and Lincolnshire are awaiting a response from the Secretary of State before putting the deal to their local authorities. This process is also being followed in the other areas also hoping to establish mayoral combined authorities, namely the West of England, Sheffield, Liverpool, Tees Valley and Manchester. In the cases of Sheffield, Liverpool, Tees Valley and Manchester, their process is to replace their existing Combined Authorities with mayoral combined authorities. In Cambs, Lincs and the West, like Norfolk and Suffolk, the process is to establish a mayoral combined authority effectively from scratch. The North East was also proceeding to create a mayoral combined authority. However three of the seven North East local authorities pursuing a deal rejected their proposal recently. This deal has now been scrapped by the Secretary of State, and the authorities – even the four who voted in favour – have been told to go back to the drawing board. 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 1st, 2nd or 3rd.

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New Anglia Local Enterprise Partnership Board Tuesday 27th September 2016

Agenda Item 7 Growth Deal Author: Emily Manser, Marie Finbow, Iain Dunnett This report is in three sections: Part One – Review of Growth Deal Spend Part Two – Assessment of Projects on the Project Pipeline Part Three – Snetterton Employment Area CONFIDENTIAL Recommendations The LEP Board is invited to:

1. Note the contents of this report.

2. Agree to de-allocate the £1.3m grant allocation for Haverhill Innovation Centre in favour of an alternative Growth Deal project from the project pipeline.

3. Agree to meet a maximum of one third of the pre-delivery costs incurred to date in developing the Haverhill Innovation Centre project.

4. Consider a financial contribution of a maximum grant of £2.3m spanning the 16/17 and

17/18 financial years as part of New Anglia LEPs Growth Deal for Breckland District Council to develop infrastructure supporting an increase in electricity capacity at the Snetterton Employment Area.

PART ONE – REVIEW OF GROWTH DEAL SPEND Introduction The purpose of the first part of this paper is to provide the Board with an update on how the LEP is managing Growth Deal spend, and to agree the reallocation of funding from the Haverhill Innovation Centre project. Background Government has granted New Anglia LEP with the maximum freedom and flexibility on managing its Growth Deal funding. This includes the ability to manage and reallocate funds in order to maximise impact on its Strategic Economic Plan. However, due to the new pressures of needing to spend budgets within year it is vital that measures are implemented to minimise the risk of slippage and/or underspend. Although a Capital Swap approach was approved by Government last year this cannot be relied on every year. This is for two reasons: firstly, it relies upon the appropriate level of expenditure in Suffolk County Council’s Capital programme; and, secondly Government has indicated that it may not accept the capital swap in future. In response to the requirement for annualised spend, the LEP has scheduled formal reviews of spend by the Performance, Risk and Finance Committee to take place twice in each financial year. The purpose of these meetings is to review any issues regarding project spend and to

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agree mitigating actions in order to ensure that we have robust plans in place to ensure that we meet our ambitious funding allocation. Review of spend The first review of Growth Deal spend within the current financial year was undertaken by the Performance, Risk and Finance Committee on Friday 16 September. This financial year our Growth Deal allocation from Government is £38.548m. The underspend from 2015/16 is £12.008m (via a capital swap). The total spend for 2016/17 is therefore £50.556m. A number of actions were agreed for projects that are at risk of underspending in this financial year. It was agreed that the Growth Deal Coordinator would monitor these projects closely and report back any issues to the Performance and Risk Committee on a monthly basis. As a result of the review, the following projects are of particular note for the Board: Growing Business Fund - based on current spend projections, the LEP has identified a potential underspend of £0.7m in the current financial year. Mitigating action: The Performance and Risk Committee has agreed to review this in January and if there is still an underspend, this will be redirected to the Growing Places Fund. Norfolk transport projects started in 2015/16 - these are Lynnsport Access Road (King's Lynn), A47/A1074 Junction (Longwater) Norwich, Norwich Area Transportation Strategy (NATS) City Centre, Norwich Area Transportation Strategy (NATS) A11 Corridor. No grant claims have been received for the current financial year. Mitigating action: The Performance and Risk Committee has agreed to escalate this at Norfolk County Council if no claims have been received by the end of September. Haverhill Innovation Centre - this project is not deliverable in this financial year as it has not been able to secure match funding within the timescales required by Growth Deal. Mitigating action: firstly the LEP Board is invited to reallocate the current allocation of £1.3 million of funding for the Haverhill Innovation Centre project. The project is still able to apply for LEP funding in future through our existing project pipeline process. Secondly, the LEP Board is invited to agree to meet a maximum of one third of the pre-delivery costs incurred to date in developing the Haverhill Innovation Centre project. The total pre-delivery costs are estimated to be around £300k up to the beginning of this financial year, when development was suspended pending the securing of the necessary financial match. New Anglia LEP would therefore expect to contribute around £100,000 of these costs. The remainder of the development costs will be met by the developer and Greater Cambridge Greater Peterborough (GCGP) LEP. Recommendations The LEP Board is invited to:

1. Note the contents of this report.

2. Agree to de-allocate the £1.3m grant allocation for Haverhill Innovation Centre in favour of an alternative Growth Deal project from the project pipeline.

3. Agree to meet a maximum of one third of the pre-delivery costs incurred to date in developing the Haverhill Innovation Centre project.

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PART TWO – ASSESSMENT OF PROJECTS ON THE PROJECT PIPELINE Summary Following the review of Growth Deal spend and the potential need to reallocate funding from the Haverhill Innovation Centre project, the LEP Executive undertook an assessment of projects on its pipeline which has a funding gap of between £1m - £1.5m and supported by a full business case. Each project was assessed against the following criteria:

• Delivery of SEP ambitions (jobs/houses/businesses created, businesses supported, unlocking employment sites and focusing on growth locations and growth sectors)

• Leverage of match funding and value for money • Deliverability and Risk • Additionality (apprenticeships, scale of outputs, early delivery of outputs, high-quality

jobs/businesses which are high impact)

The priority for this assessment was on deliverability. Funding allocated to projects needs to be utilised in this financial year – so deliverability was weighted more favourably in this instance. The template used for this assessment is attached as Appendix A. Six projects were identified and assessed by the LEP Executive and a summary of the results is as follows:

• Snetterton Heath Employment Area – TOTAL SCORE 44 This project scored highest in the assessment. It is deemed ‘oven-ready’ which means it can be delivered in this financial year. It unlocks a large employment site in one of our key growth locations (Cambridge – Norwich Technology Corridor) and supports 3,200 jobs; of which 1,750 are new jobs and 440 are high quality jobs.

• Bittern Line Growth Package – TOTAL SCORE 40 This project is not deliverable in this financial year as investment is needed to develop Network Rail GRIP 3 and GRIP 4 studies which will identify the total costs and funding gap for this project. It is likely that the LEP will be asked to make a contribution towards these studies which can be met from our revenue budget.

• Ipswich High Street Campus Museum regeneration – TOTAL SCORE 25 This is an ambitious project which currently has a significant funding gap with a large amount of match funding yet to be identified/secured. Construction is not expected to commence until August 2017 at the earliest.

• Shared Technology Centre, King’s Lynn – TOTAL SCORE 25 Match funding has not yet been identified/secured for this project with further feasibility work and planning consent required. Construction is not expected to commence until 2018.

• Bacton Gas Terminal – TOTAL SCORE 22 This project is currently scheduled for delivery in 2017/18. The consenting process, screening and scoping for Environmental Impact Assessments and Habitat Regulations Appraisal are currently underway. This work needs to be completed before construction can commence and it is therefore very unlikely that this project can be delivered in this financial year. Funding for this project forms part of our Growth Deal Three bid.

• Gainsborough House – TOTAL SCORE 19 This project is in the process of applying for Heritage Lottery Funding. A Stage 1 application has been submitted and a decision on this is expected shortly. The LEP has recently submitted a letter of support to the HLF in this regard. If Stage 1 is approved by the HLF, detailed feasibility work will be undertaken in readiness for a Stage 2 application to be submitted. A final decision is expected in June 2018. The LEP is not in a position to financially support this project until such time as match funding is confirmed by the HLF.

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Upon undertaking this assessment, it has highlighted the need to carry out further work on the LEP’s project pipeline in order to improve the quality of the information supporting each project. This work is already underway with our Local Authority partners, through the Suffolk and Norfolk growth groups and we will be working closely with other partners, including the Sector Groups and the Skills Board to improve the quality of the LEP’s project pipeline over the coming months. Our preference would have been to provide the LEP Board with a choice of options for reallocation of growth deal funding, rather than putting forward a single option for consideration. However, in this case, the assessment has highlighted only one project on our pipeline which, in our view, delivers the best outcomes and can be delivered in this financial year. Part Three provides more information on the Snetterton Employment Area project.

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APPENDIX A - Prioritisation Template for reallocation of Growth Deal funding

Project name Total Cost Total funding reqd Summary of Outputs

Scores Total

1 Low Impact 2 3 4 High Impact

1. Delivery of SEP Ambitions 1.1 Jobs created (investment leads directly to the creation of new jobs)

10 jobs or fewer 11- 50 jobs 51 – 100 jobs 101+ jobs

1.2 Unlocking employment sites Direct investment in new business premises; or in infrastructure to unlock the site

Direct investment in new business premises and in infrastructure to unlock the site

1.3 Benefits to SEP Growth Locations (list overleaf)

Project benefits a non-Growth Location

Project benefits 1 SEP Growth Location

Project benefits 2 or more SEP Growth Locations

1.4 Benefits to SEP Growth Sectors (list overleaf)

No sector-specific benefits Benefits a non-SEP sector Benefits a SEP ‘underpinning’ sector

Benefits a SEP ‘high impact’ sector

1.5 New businesses (investment leads directly to the creation of new firms)

5 new businesses or fewer 6 – 10 new businesses 11 – 20 new businesses 21+ new businesses

1.6 Supports existing businesses 10 businesses supported or fewer

11 – 20 businesses supported 21 – 40 businesses supported

41+ businesses supported

1.7 New dwellings (indirect & direct) 10 new dwellings or fewer 11 – 50 new dwellings 51 – 100 new dwellings

101+ new dwellings

2. Leverage and timings

2.1 Leverage Less than 50% match funding 50% or more match funding from mix of Private/public funds

50% or more private sector match only

2.2 Timescale for delivery of outputs Long term: 10+ years Medium term: 6 – 10 years Short term: 2 – 5 years Immediate: within 1 calendar month of funding being received

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3. Deliverability and risk

3.1 Deliverability (all 3 criteria must be met for a project to be prioritised for funding – 1 point for each

Match funding confirmed Confirmation of State Aid position and where required, independent statement of the State Aid position

Spend will largely take place within the current financial year (1.4.16 – 31.3.17) and this financial year will be the prime delivery period*

3.2 Planning Permission Planning permission has been applied for

Planning consent received/Not applicable

3.3 Risk (1 point for each) Applicant and/or their primary delivery partner has a track record of delivery

All risks have been identified and mitigated or plans are in place

Scalability identified – whether reduced outputs can be delivered if less grant applied for is received

4. Additionality

4.1 Net Benefits brought are over and above what would take place anyway (1 point for each)

Scale of outputs Timing – early delivery of outputs

Quality – jobs are of a high quality/impact; businesses are high-quality/impact

4.2 Apprenticeships created from the project itself

0 - 5 new apprenticeships created

6 – 20 apprenticeships created 21 – 50 apprenticeships created

50+ apprenticeships created

Total Score

* Only relevant for reallocation of Growth Deal funding for financial year ending 31.3.17

For purposes of reallocation of Growth Deal Funding – importance of delivery is weighted. For 3.1 and 3.2 scores should be multiplied by 3.

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Commentary

Recommendation

Names of Assessors

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Notes – Growth Sectors and Growth Locations (including EZs agreed since the SEP was published) Norfolk Strategic Growth Locations

o A11 Corridor: Thetford; Attleborough; Wymondham; Snetterton, Hethel Technology Park

o Norwich City Centre

o Norwich South West Quadrant: Norwich Research Park (EZ), the Food Enterprise Zone and Longwater

o Norwich North East Quadrant: Broadland Business Parks; Rackheath; Norwich International Airport (NIA) Aeropark and Business Park

o Fakenham / Wells Corridor: Egmere Business Zone (EZ); Fakenham

o A10 King’s Lynn Corridor: King’s Lynn and Downham Market, inc. Nar Ouse Business Park (EZ)

o Great Yarmouth & Lowestoft Enterprise Zone

o Scottow Enterprise Park (EZ)

Suffolk Strategic Growth Locations

o Greater Ipswich Enterprise Zone (Futura Park, Prince’s St Office District, Waterfront Island, Sproughton Enterprise Park)

o Felixstowe, Stowmarket (EZ – inc. the Food Enterprise Zone) and Bury St Edmunds (inc. Suffolk Business Park EZ), along the A14

o Sizewell and its nuclear power station

o Haverhill and Sudbury

o Great Yarmouth & Lowestoft Enterprise Zone

Growth Sectors

High Impact: Advanced Manufacturing and Engineering; Agri-tech; Life Sciences; Energy; ICT/Digital Creative

Underpinning: Agriculture, Food and Drink; Financial and Insurance Services; Ports and Logistics; Tourism and Culture, Construction

11

New Anglia Local Enterprise Partnership Board Tuesday 27th September 2016

Agenda Item 8 Productivity Commission Author: Chris Starkie and Lisa Roberts Purpose To provide the Board with an outline proposal to develop and implement a Productivity Commission. Recommendations

1. To consider the information provided and agree to proceed with developing and implementing the Productivity Commission.

2. Agree to setting up a Productivity Commission Steering Group and identify a chair from the LEP board; nominate any other board members who wish to be involved in the steering group and identify and agree representatives from other organisations to be part of the steering group.

3. Agree to appoint a consultant who will act as the Strategic Adviser in developing and planning the commission.

4. Agree to recommend this approach to the devolution leaders group. The Productivity Challenge Improving the productivity of our economy is a key strategic priority for the LEP and is one of the headline targets in our Strategic Economic Plan. The establishment of a Productivity Commission is also a key element in the Norfolk and Suffolk devolution deal. As well as a local priority – it is also a key priority for the new Prime Minister Theresa May. In her first speech as Prime Minister, Mrs May said she wanted her government to: "Build an economy that works for everyone, not just the privileged few. That is why we need a proper industrial strategy that focuses on improving productivity, rewarding hardworking people with higher wages and creating more opportunities for young people so that, whatever their background, they go as far as their talents will take them. "We also need a plan to drive growth up and down the country - from rural areas to our great cities." (2 August 2016) Productivity is likely to form a key thread of the Government’s new Industrial Strategy, a new initiative which LEPs are well positioned to influence and drive. The creation of a Productivity Commission is therefore timely and relevant.

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What is Productivity? From the point of view of a business it’s basically how efficiently it operates, or put another way, how much output (such as goods and services) is derived from a given set of inputs. Another way of looking at it is the rate of output per worker, with the Government saying that in manufacturing terms it now takes a UK worker five days to do what their German counterpart can achieve in four. Productivity in the UK lags considerably behind other major European economies such as France and Germany, and even further behind the US. In fact, the Government estimates that matching the productivity of the US would raise the UKs GDP by 31%, equivalent to around £21,000 a year for every household in the UK. Britain’s productivity was actually on a healthy upward curve until the financial crisis and subsequent recession, and since 2008 has largely stagnated. The Bank of England has estimated that productivity levels are now 16% below pre-crisis levels. Yet our economy continues to grow, prompting many to ponder what is called the ‘productivity puzzle’. The answer is actually simple – economic growth has been based on increased hours rather than increased productivity, so we’re basically working harder to produce the same amount of stuff, and that’s simply unsustainable. Rather than work harder, we need to work smarter. Why does that matter? Because low productivity leads to stagnation in revenues, wages and living standards. That means less investment in people and equipment, further declines in output and an ever-widening gap in a fiercely competitive world. What can we do? The Government has published its own 15-point plan aimed at encouraging long term investment and tackling issues like skills, transport and energy costs, while creating a ‘dynamic’ economy with an easier planning regime, better access to finance and higher wages. Given Mrs May’s renewed focus on productivity, we are expecting Government to ramp up this programme, not least through the Government’s new Industrial Strategy. Many of the Government’s points are relevant to Norfolk and Suffolk but we also face our own particular productivity challenges. The work of the commission would be to focus in on these issues. A focus on productivity does not mean jobs have to be lost, but a more productive and better paid nation with more sustainable employment. The CBI report “Better off Britain, improving lives by making growth work for everyone” found UK productivity has historically lagged behind developed economies such as Germany, France and the US. Over time the UK closed the gap, but since 2008, the gap has widened again. Output per worker is some 16 per cent lower than it where it would have been if it had grown at the same rate as during the years leading up to the crisis. The mystery of why this has happened is the so-called “productivity puzzle”. The Bank of England attributes about a quarter of this to measurement errors. It reckons half of the remaining gap is down to short term measures – chiefly workers accepting low or no pay rises and longer term measures such as a lack of business investment. But that still leaves around half of the gap unexplained, and a real challenge. Whatever the difficulties, there is no doubt that improving productivity offers a massive prize. Increasing the productivity of the Norfolk and Suffolk economy to the national average is one of the ambitions set out in our Strategic Economic Plan.

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https://www.gov.uk/government/news/productivity-plan-launched

How does the New Anglia LEP area rank? Though New Anglia is the 16th most productive LEP (out of 39), and some 14% more productive than the least productive LEP, we have seen the gap between our region and some of its peers increase since the recession, not least the all-important gap between New Anglia and the UK average which now stands at 8% compared to 6% in 2006. Moreover, New Anglia was actually exceeding the UK-less London rate before the recession, highlighting its once comparative advantage compared to other parts of the UK:

Figure 1 – GVA per hour worked (less rental-income) – Source ONS

Notwithstanding local data limitations, it appears New Anglia is suffering as much, if not more, in terms of the ‘Productivity puzzle’. Figure 2 below shows in nominal terms the region lurks some 18 p.p. behind its pre-crisis trend line, compared to 17 p.p. at a national level:

Figure 2 – GVA per hour worked (less rental-income) – Source ONS

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Unsurprisingly, New Anglia is also significantly behind its international comparators. According to analysis by Regeneris, New Anglia’s productivity is roughly 39% lower than the US average, 36% lower than the German average and 35% lower than the French average. Even the worst-performing US state has superior productivity to that of New Anglia’s. What would happen if we increased our productivity? The reward on offer for New Anglia would be significant if it were able to overcome its own ‘Productivity puzzle’. Matching the productivity of just the UK average would increase Norfolk and Suffolk’s GVA by 8%, almost £3 billion. Matching the productivity of the average US state would raise Norfolk and Suffolk’s GVA by an incredible 40%, or in the region of £13 billion. Our Proposal Our proposal is for the LEP to create a New Anglia Productivity Commission to tackle the problem head on and develop and implement a robust and dynamic action plan. The commission would be accountable to the LEP and also the devolution leaders group, which is anticipated to become the shadow combined authority. This dual accountability will ensure maximum local support for the commission and accordingly help it achieve maximum impact. We have undertaken research of other relevant commissions in order to gather best practice. This has involved identifying and analysing the purpose, findings, staffing, governance structure, duration and costs of sixteen commissions. This has informed our understanding of the model proposed here. The commission would initially conduct an inquiry to understand the issue - a call for evidence - and publish a report highlighting key issues as well as best practice, with a series of firm recommendations on how to improve productivity. As critical as the report and recommendations will be, a dynamic action plan in order to effect real change in our economy. The Productivity Commission will comprise a small body of experts from business and academia – the commissioners. Their expertise should cover – infrastructure, innovation, skills, and business support, urban and rural. It would be chaired by an independent business leader. A steering group chaired by a LEP Board member and made up of a mix of individuals from business, local authorities and academia would be responsible for the following:

• The appointment of the Chairman and Commissioners • Agreement of the Terms of Reference • Agreement of the budget • Overseeing the progress of the Commission • Review of the final report • Responding to the findings of the Commission

The steering group would be accountable to the full LEP board and progress of the commission would be a standing item on the LEP board agenda. The remit of the commission would include:

• Examine the productivity challenges facing Norfolk and Suffolk’s key sectors and the definition of productivity in each sector.

• Assess how Government and local policy interventions are assisting with these challenges.

• Work with businesses in a wide range of sectors to share insight and expertise to take forward best practice.

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• Examine best practice locally and in other parts of the UK and the rest of the world. • Develop an action plan for local partners and Government. • Oversee the implementation of the plan and evaluate its impact. • Make available findings and actions for roll out in other parts of the country.

The commission would have three phases: 1. Call for evidence and publishing of action plan 2. Implementation of action plan 3. Evaluation of action plan and roll out to other areas. Built into the action plan and then in

parallel with implementation. The process of establishing the commission would raise the profile of the importance of productivity as an issue. That in itself will set in motion a process of change within the local business community. It will also help stimulate the debate about what do we mean by productivity and the best ways of boosting it, providing a clear strategic direction for the LEP and the devolution leaders group to succeed in closing the productivity gap. Areas of focus In the same way that the Government’s “Fixing the Foundations” productivity action plan covers a wide range of policy areas, the commission would look at the full span of issues that relate to productivity. For example the commission will need to consider infrastructure, skills, business support and innovation as all of these are critical elements in the productivity puzzle. The commission will need to consider rural and urban issues, both of which are relevant to New Anglia. It will also look at a broad range of sectors of the economy. Whilst sectors such as manufacturing and ICT are the traditional focus of productivity and innovation, the commission will want to consider other large sectors such as healthcare and tourism. These sectors in particular require productivity improvements, not least in order to remain competitive with the advent of the living wage. Why are we proposing a Commission? We believe a commission is the best format for examining the Productivity Puzzle and coming up with a robust implementation plan for a number of reasons:

• It will offer a high profile approach to generate interest amongst key stakeholders in the process.

• It will allow us to bring together a group of experts one stop removed from the day-to-day issues with the ability to bring fresh insight into the problem.

• It will provide a safe place for robust and challenging discussions. • It will also provide a great opportunity for wider stakeholder involvement in the project. • It will hopefully secure buy in from a wide range of stakeholders which is critical in the

implementation of the action plan. Key elements of the Commission Chairman We are proposing this should be a business person with a strong and visible track record. This would lend credibility to the project locally and nationally. Some individuals will be prepared to undertake this role on a pro bono basis, particularly if they already have a strong link to the area to be considered.

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However, where the individual brings a particularly unusual blend of skills and expertise, where the time requirement is likely to be onerous, or where the individual is a “professional” Chairman, it will be more usual to offer payment based on an estimate of the number of days’ work required. Typical daily rates would vary between £1-2k per day. Commissioners Once the Terms of Reference for the Commission are agreed, the Chairman should be given scope to appoint individuals with an appropriate blend of knowledge and expertise to enable him/her to address the Terms of Reference. As with the Chairman, it is good practice to prepare a role specification outlining the skills needed from individual Commissioners and the requirements of the role. Given the span of areas covered by productivity such as skills, infrastructure, business support, it is suggested Commissioners are appointed on a thematic basis to head up particular strands of the enquiry. Secretariat A Secretariat is required with the experience and expertise to undertake the research and analysis needed for the Commission and to oversee the logistical tasks required for the smooth running of the Commission. The work of the Secretariat will have three specific elements:

i. Evidence gathering. The Secretariat is responsible for ensuring that the Commission has the necessary data, information and analysis for it to undertake its work. This typically starts with the initial briefing pack, and continues with briefing papers for each individual meeting of the Commission. The Secretariat is also responsible for responding to the on-going research needs of Commissioners throughout the life of the Commission. The Secretariat will also be responsible for initiating the call for evidence and ensuring that an appropriate stakeholder engagement strategy is devised which brings the widest possible response to the call for evidence. Once the written evidence has been received the Secretariat will analyse and synthesise it, before preparing it for presentation to the Commissioners.

ii. Providing logistical and organisational support to the Commission. The

practical dimensions of running a Productivity Commission are significant. These include regular liaison (meetings, phone calls, etc.) with Commissioners and other stakeholders, arranging meetings, ensuring the timely flow of information to Commissioners, and providing the seamless day-to-day support the Commission needs to undertake its work.

iii. Report writing. This process draws on the Secretariat’s involvement in the

collection, analysis and synthesis of data, the call for written evidence and the Secretariat’s own depth of expertise. The number of reports required and the reporting style will be a function of the subject matter and complexity of the issues being considered by the Commission. It would not be unusual to publish both an interim (or direction of travel) report, and a final report.

Strategic adviser A strategic adviser is generally appointed, with a good grounding in the technical issues under consideration by the Commission. The strategic adviser’s role is to keep the Commission moving in the right direction, on timetable and to budget. His/her specific responsibilities include the following:

• acting as a sounding board for the Chairman • advising the Commission on its work • inputting to the evidence gathering process

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• ensuring the Commission has appropriate technical underpinning for its work and recommendations

• liaising between the Commission and the Steering Group • advising the Steering Group.

Website A website is generally created detailing the membership of the Commission, the methodology to be adopted, the timetable for meeting and reporting, briefing and technical papers, reports of the Commission. Operation of the Commission Evidence gathering Once the Terms of Reference are agreed, a “Call for Evidence” is generally released which frames a number of questions essential for responding to the Terms of Reference. The call for evidence invites the submission of evidence, generally written, which is then analysed for presentation back to the Commissioners. The Call for Evidence is then typically supplemented by the following:

• Technical evidence: technical reports are commissioned to address specific technical issues raised by the terms of reference.

• Oral evidence giving: which may take place in open or closed meetings. Individuals are invited to give oral evidence for the following reasons: o To understand and probe written evidence an individual/organisation has already

provided. o To provide a counter-weight to the views already obtained through written evidence. o To investigate questions not covered in the written evidence.

In managing the evidence gathering process, the Secretariat should ensure that there is an appropriate audit trail in place, to ensure that where evidence is relied upon and incorporated in any public reports, it is property represented and attributed. Reporting Commission will produce a final report detailing:

• The nature of the issue under investigation • The membership of the Commission • The methodology of the Commission • A summary of the evidence received • A discussion of the key issues • A series of recommendations

It is good practice for the Steering Group to reflect upon and then issue a response to the Commission’s final report. The response would typically respond to each recommendation in turn, noting whether it can/will be implemented, and whose responsibility it will be to oversee implementation. The best responses include some form of implementation plan linked to effective governance arrangements for taking the recommendations of the Commission further. Follow-up It is worth considering inviting the Chairman of the Commission to revisit the matter sometime after the dust has settled on the final report (12-18 months). This might result in the issue of a follow-up report updating the evidence base where appropriate, and commenting on progress made on the implementation of recommendations. Timescales Commissions typically run for time periods of 6 to 12 months, depending on the complexity of the issues under discussion and the degree of public engagement required. The longer the Commission runs, typically the more expensive the process becomes. Long-running

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Commissions also run the risk that the evidence base is superseded by events (new laws, political change, technological change etc.) Funding The cost of commissions varies greatly. As a guideline, the City Growth Commission which ran for a year, cost approximately £1 million, whilst at the other end of the spectrum, the Barking & Dagenham Growth Commission, which ran for 6 months, cost £200k. It is not unusual to seek external funding from parties interested in the outcome of the Commission. In the case of a New Anglia Productivity Commission, this might include other LEP-partners, local authorities, locally-based companies, universities, think tanks etc. There is always a trade-off between accepting funding and guaranteeing the independence of the Commission. As a guide budget, we are proposing a budget envelope of between £150k and £200k. This could be met from LEP resources. It is not practical to agree a final budget at this stage ahead of the appointment of the chairman and finalising the commission’s timetable. There are four key elements to fund, with costs split pretty evenly between all four. The main variations are whether fees are paid to the chairman and/or commissioners and how much research is undertaken. We are proposing to resource the secretariat in-house.

1. Fees and/or expenses for chairman and commissioners. 2. Strategic adviser. 3. Research and/or surveys. 4. Workshops, report writing and publication.

Next Steps Set out below is a provisional timetable of activities for the creation, implementation and outcomes of the Commission.

September 2016 LEP Board agrees to proceed

October 2016

Devolution Leaders Group agrees approach

Steering Group set up and process for appointing Strategic Adviser underway

Secretariat in place

November/December 2016

Strategic Adviser in place

Chair identification and approach

January 2017 Productivity Commission chair identified and secured

February 2017 Commissioners in place

March 2017 Launch of Commission and call for evidence

March to October 2017 Commission in progress – to include interim report

November 2017 Final report to LEP Board and Combined Authority

November 2018 One year on revisiting commission – assessment of final report and follow up report produced

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Recommendations

1. To consider the information provided and agree to proceed with developing and implementing the Productivity Commission.

2. Agree to setting up a Productivity Commission Steering Group and identify a chair from the LEP board; nominate any other board members who wish to be involved in the steering group and identify and agree representatives from other organisations to be part of the steering group.

3. Agree to appoint a consultant who will act as the Strategic Adviser in developing and planning the commission.

4. Agree to recommend this approach to the devolution leaders group.

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New Anglia Local Enterprise Partnership Tuesday 27th September 2016

Agenda Item 10

Business Performance Reports – September 2016

Contents

No. Title RAG Status

1. Business Growth Programme Green 2. New Anglia Capital CONFIDENTIAL Green 3. Sectors Green 4. Enterprise Zone Green 5. Green Economy Partnership Green 6. Media Dashboard N/A

Page 1 of 1

New Anglia Business Growth Programme September 2016 LEP Executive Lead – Jason Middleton Board Lead – TBC 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 £174.5m £57.3m 81% Green

New Full-time jobs created 1167 2209 975.5 84% Green

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. 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. As with the Growing Business Fund, the scheme is accessed through 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

New Full-time jobs created 816 563.5 69% Green

Micro Grant Scheme Target to April 2017

Awarded to date

Delivered to date

Delivered to date %

RAG

Number of grants awarded 80 0 0 0% Green

Value of grants awarded £420,000 0 0 0% Green New to the firm products introduced 8 0 0 0% Green

Private sector match funding £1.68m 0 0 0% Green

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

Number of grants awarded - 53 29 - -

Value of grants awarded £4,600,000 £4.4m £2,167,242 47.0% Green Private sector match funding £11m £8.7m £5.9m 53.6% Green

New Full-time jobs created 702 685 182 25.9% Amber

Appendices

1) Geographical distribution of Growth Hub activity

2) Top ten most popular referrals through the Growth Hub

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

Sectors

Sectors are at the core of the LEP’s work. Our sectors are key to driving economic growth and stimulating innovation. Working together, sharing information and ideas we can achieve the growth

in our sectors that will deliver the ambitions of the SEP.

Food, Drink and Agriculture:

After agreeing the Terms of Reference at the June meeting, the Food, Drink and Agriculture Board has begun to develop specific action plans to address the sector’s key challenges.

Led by Easton and Otley College a working group has been set up to specifically look at developing a Skills Deal proposal. Responding to a shortage of mid-range managers in the sector, the proposal will be for a training scheme to support the development of production operatives with promotion potential by delivering training in core concepts.

September 2016

Sector Leads’ Meeting

A quarterly meeting of the Sector Leads took place in September with each lead providing an update of the work of their group, main challenges and opportunities for collaboration. Jamie Thums, Chair of New Anglia Advanced Manufacturing and Engineering (NAAME) sector group was introduced at the meeting. Jamie, who is Chief Operating Officer at Lintott Control Systems, spoke about NAAME’s ambition to set up local productivity groups across the East which feed into the NAAME.

Energy:

Several initiatives have been launched which aim to support businesses in Norfolk and Suffolk to capitalise on opportunities in the region’s offshore renewable supply chain.

East of England Energy Group (EEEGR) has announced the formation of a Special Interest Group (SIG) for the offshore wind supply chain. The SIG will work collaboratively to promote, support and strengthen the region’s supply chain companies and infrastructure.

A new £6m fund has been launched to help SMEs that are developing innovative technologies in offshore wind, from patenting a product to exploring concepts that offer new ways of solving problems and driving efficiency. The Supply Chain Innovation in Offshore Renewable Energy (SCORE) programme, part funded by the European Regional Development Fund and delivered by OrbisEnergy will support 200 businesses and create 100 new jobs.

Page 1 of 2

Culture & Tourism:

New Anglia Cultural Board has been notified that that the project Start East: Building the Cultural Economy has been awarded £600k of ERDF funding. The Cultural Board had already secured £500k from Arts Council England’s Creative Local Growth Fund, to support the initiative – one of only 3 to be awarded the full amount available through the fund. The new business development programme, which will be launched in January 2017, will focus on growing the number and range of cultural and creative enterprises in Norfolk and Suffolk.

New Anglia Cultural Board has submitted a bid to Arts Council England’s Cultural Destinations Fund. Delivered in partnership with Visit East Anglia, the project seeks to amplify the Norfolk and Suffolk’s world-class cultural tourism offer, building on previous work to make the East a must see cultural destination.

ICT and Digital Creative:

As part of a series of nationwide events, the Creative Industries Federation held a discussion on the impacts and opportunities of Brexit on the creative industries sector. The session, which was hosted at Ideas Factory, Norwich University of the Arts by the New Anglia Digital Creative Industries Group looked at a wide range of topics from funding, IP protection, freedom of movement and trade. The Creative Industries Federation will be presenting the findings of the nationwide consultation to Government.

Tourism:

Visit Norfolk has reported that the value of tourism to Norfolk has topped the £3bn mark, an increase of £100m in 12 months. Tourism in Norfolk is now more valuable than in Cornwall and Devon. The success is being attributed to collaborative marketing campaigns, including on the London Underground and increasing numbers of people holidaying at home. The trend for ‘staycations’ is likely to continue as the weaker pound makes it more expensive for people to travel abroad.

Building Growth:

Housing developers and planning authorities met at Easton and Otley College in August to discuss What You Would Change About the Planning System? The event was hosted by Building Growth as part of their work programme to address complications in the planning system to unlock greater housing development. Facilitated by the Planning Advisory Service, and with keynote speakers from Taylor Wimpey and Building Growth, attendees were asked to comment on what they perceive as the main blockages and to reach a consensus on how these might be overcome. Findings of the session will be reported on at the next Building Growth meeting.

The Construction Sector Skills Plan was considered by the August Skills Board, and has been referred back to Building Growth for further development.

Page 2 of 2

Great Yarmouth and Lowestoft Enterprise Zone - Six sites in Lowestoft & Great Yarmouth which has incentives such as business rates relief, a straightforward planning process and business-ready infrastructure offered to encourage business investment from the energy sector. Reporting for Space to Innovate Enterprise Zone will commence October 2016.

Targets for 2016/17 (TBC by Oct EZWG)

Investment Income

2014/2015/2016 Downturn in Oil & Gas industry impacting on EZ uptake Likelihood – High Impact – Medium Mitigating Activity - Establishment of a LEP Oil and Gas Taskforce Board Lead – Mark Goodall LEP Executive Lead – Eunice Edwards

GREEN

Indicators to the left of page are to April 2017

Sept 2016 update (by site) since last LEP Board Meeting: Beacon Park – 80% of the buildings on the site are currently occupied. 100% (17/17) are energy related or in supply chain. Gee-Force Hydraulics have moved into one of the small/medium industrial units. Gee-Force Hydraulics specialises in the sale and hire of hydraulic torque wrench equipment and other bolting equipment. We also sell and hire mechanical and hydraulic flange spreading and flange alignment equipment and we sell a wide range of other hydraulic tools and equipment.

Mobbs Way – No update 50% (6/12) are energy related or in supply chain. Riverside Road – No update 0% (0/3) are energy related or in supply chain. South Denes – No update 100% (6/6) are energy related or in supply chain. South Lowestoft Industrial Estate (SLIE) – No update Ellough – No update 100% (2/2) are energy related or in supply chain. All sites are relatively static at the moment due to the downturn in the Oil & Gas industry. We still have interest in some of the sites but many of the energy companies and those in the supply chains are not investing or looking to expand in the current climate. Energy Related business

73% (30/41)

200 Jobs (tbc) 34% 67

5 Businesses (tbc) 40% 2

£2m (tbc) Private Sector Leverage

10% £200k

1,000 SqM Floorspace 27%

265 SqM

£113k £274k

£734k

£1m

£1.6m

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

2013/14 2014/15 2015/16 2016/17 2017/18

EZ Retained Rates Pots Forecasts

Pot A 10% Pot B 35% Pot C 55%

http://enterprisezones.communities.gov.uk/about-enterprise-zones/

http://enterprisezones.communities.gov.uk/about-enterprise-zones/

GREEN

Blue Green Economy East

This is a New Anglia LEP/UEA led bid to the Natural Environment Research Council (NERC). LEP staff will be supporting a presentation made to NERC in Birmingham on Sept 29th. If successful the bid could attract from £2.5 to £5million of investment from NERC. The bid brings together a strong partnership including the Greater Cambridge Greater Peterborough LEP, the New Anglia Green Economy Partnership, Norfolk and Suffolk Councils, EDF Energy, Adnams, Gardline, Defra agencies, the Broads Authority and the Wild Anglia Local Nature Partnership. The bid aims to secure funding for a knowledge and innovation hub, and data development that supports the delivery of Agriwater, Coastal, and Low Carbon Projects that constitute a strong part of the region’s economic identity and complement its reputation for environmental research, agricultural innovation, and for its unique natural environments important for tourism, recreation and health.

East Coast Biorefinery

The LEP, the Institute of Food Research, and commercial partners Vireol and Dong Energy are collaborating on a feasibility study of the potential innovative and commercial development of an East Coast Biorefinery. The Biorefinery would produce ethanol with added value products being high value chemicals that are also produced in the process, making the economic activity potentially more profitable. The feasibility study will assess locations that maybe suitable for such a plant. The LEP Chair will meet with Dong Energy, Vireol and the IFR later this month and a number of site assessment visits will occur.

Green Economy Partnership

A business plan to develop the New Anglia Green Economy Partnership has been developed and consultation of key central partners has been completed. The plan will now be revised to reflect the consultation feedback and the wide discussion that the plan has encouraged. This work will outline a future for the Partnership with potential actions identified and will take account of wide changes that will affect the partnership such as regional devolution, changes to funding streams (such as the European programme) and the use of collaborations, such as that currently with UEA on the NERC bid. A final version of the plan will be produced by the end of 2016.

Green Economy Partnership GEP Implementation Group Chair: Johnathan Reynolds

The LEP does not given sufficient weight to the value of sustainable economic decision-making. Likelihood: Medium Impact: Medium Mitigating Activity • ESIF Regional Sub Committee being chaired

by a GEP Board member. Other regional LEP ESIF Sub Committee’s in East of England also have engaged sustainable development experts in similar roles. National profile of Green Economy Partnership suggests other LEPs look to New Anglia for leadership.

Negative publicity and a lack of support from both the public and private sectors reduces likelihood of securing funding and delivering effective green economy initiatives.

Likelihood: Medium Impact: Medium Mitigating Activity • Communications to be conveyed through GEP

Board partners; business plan developed together with clear marketing and communications strategy.

• Business plan will demonstrate successes and areas where strengthening is needed.

Board Lead – Mark Pendlington LEP Executive Lead – Iain Dunnett

LEP and Board Engagements: 30

2,590 Members

Key Coverage: • Total articles published: 37

• Equivalent Ad Spend: circa £15,000

• Total Audience Reach: 4.4m

Media & Engagement July 2016

Out of Area: 4

Social Media:

Top Tweet:

7,000

impressions

“This is a rallying call that will

leave the Government in

absolutely no doubt that we are

up for the challenge of building

on our success so far.”

Tweet impressions:

85,000 Followers:

5,362 Up:

75

LEP and Board Engagements: 25

2,597 Members

Key Coverage: • Total articles published: 69

• Equivalent Ad Spend: circa £40,600

• Total Audience Reach: 7.5m

Media & Engagement August 2016

Out of Area: 3

Social Media: Top Tweet:

5,600

impressions

“To have secured new

state-of-the-art rolling

stock is a massive win for

all those who depend on a

reliable and high-

performing railway here in

the East.”

Mark Pendlington

Tweet impressions:

47,000 Followers:

5,438 Up:

77

New Anglia Local Enterprise Partnership Board


Agenda Item 11 Finance Report Author: Keith Spanton Summary This report provides board members with an update from the finance department on the LEP’s finances to the period 31 August 2016. The report includes confidential appendices: Annex A – core management accounts 31 July 2016 Annex B – core management accounts 31 August 2016 Annex C – core monthly and year to date graphs (incl. forecast) Management accounts The LEP’s core income and expenditure accounts and graphs for the period ended 31 July 2016 and 31 August 2016 are shown in confidential annex A and B. 31 July 2016 Headline figures for the first four months are: Total income £322,651 of which £249,333 represents core contribution with recharges and other income of £73,318 making up the balance. Costs to 31 July total £276,219 leaving a surplus of £46,431, ahead of budget by £26,254. 31 August 2016 Management accounts for period ending 31 August 2016 show core income of £311,666, recharges and other income of £91,619 giving a total income of £403,285. Costs to August total £370,951 leaving a surplus of £32,334. This is £8,736 ahead of the budget surplus. Further detail of the accounts and some of the larger variances will be explained at the board meeting. Annual Funding Letters Funding request letters for the year 2016-2017 were sent out with invoices to the Leaders of the local authorities during the first week of September, with a copy of the letter also being sent to the Chief Executives of each authority. Audited accounts for the year ended 31 March 2016 At the July board meeting the draft financial statements were approved by the board and subsequently signed by Mark Pendlington and Doug Field. Lovewell Blake has now signed the auditor’s report and issued a final set of accounts. Whilst the LEP can file abbreviated accounts, for transparency a full set of accounts will be filed after the annual general meeting. Recommendation The board is invited to note the contents of report.

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