· Web view2015/09/24 · Minutes of WLEP Board Meeting on 23 July 2015 (5 mins) 3. Matters...

WORCESTERSHIRE LOCAL ENTERPRISE PARTNERSHIP BOARD MEETINGThursday 24th September 2015 3.00 pm - 6.00 pm

Worcester Bosch, Cotswold Way, Worcester WR4 9SW

AGENDA

1. Welcome and Apologies

2. Minutes of WLEP Board Meeting on 23 July 2015 (5 mins)

3. Matters Arising (5 mins)- Action List- Correspondence

4. Worcestershire Innovation Strategy Discussion – Cheryl Perry (45 mins)

5. Growth Deal Projects and Future Pipeline – Ian Edwards (10 mins)

6. Malvern Hills Science Park – Phase 5 – Nigel Hudson (15 mins)

7. Project Approval – Business Growth Fund - Ian Edwards (10 mins)

8. Project Approval - Vale Park – Ian Edwards (10 mins)

9. Balanced Score Card – Gary Woodman (10 mins)

10. Worcestershire LEP Enterprise Zone Bid – Gary Woodman (10 mins)

11. WLEP Conference 2015 – Kirsten Dally (10 mins)

12. EU Structure Investment Fund Strategy Refresh – Claire Bridges (10 mins)

13. Midlands Engine / Combined Authorities Update – Mark Stansfeld (10 mins)

14. LEP Budget Update – Gary Woodman (10 mins)

15. Any Other Business

16. Dates of Meetings in 2015:

19th November 2015 – Worcester Bosch 29th January 201618th March 2016

20th May 201622nd July 201623rd September 2016 25th November 2016

1.0 WELCOME & APOLOGIES

PRESENT:Mark Stansfeld (MS) Non-Executive Chair

Carl Arntzen (KA) Managing Director, Worcester Bosch Group

David Green (DG) CEO & Vice Chancellor of the University of Worcester

Cllr Margaret Sherrey (MS) Leader, Bromsgrove DC (rep Northern DCs)

Mark Martin (MM) Chair of WLEP Business Board

Cllr Simon Geraghty (SG) Deputy Leader, Worcestershire County Council

Dr Simon Murphy (SM) CEO, Worcester Community Trust

Nick Baldwin (NB) Chairman, Office for Nuclear Regulation

Stuart Laverick (SL) Principal & Chief Executive, Worcester College of Technology

Cllr Linda Robinson (LR) Leader, Wychavon District Council

Steve Borwell-Fox (SBF) Managing Director, Borwell Ltd (attending in place of Chris Walklett)

Chris Walklett (CW) Partner, Bishop Fleming

IN ATTENDANCE:Gary Woodman (GW) Worcestershire LEP

Ian Edwards (IE) Worcestershire LEP

Claire Bridges (CB) Worcestershire LEP

Kirsten Dally (KD) Worcestershire LEP

David Irish (DI) Worcestershire LEP

Jack Barnett/Steph Banfield Worcestershire LEP (Note Taker)

Ian Miller (IM) Chief Executive, WFDC

Graham Pendlebury (GP) DFT, LEP Senior Sponsor

Nigel Hudson (NH) Worcestershire County Council

Cheryl Perry (CP) Worcestershire County Council

MINUTES OF WLEP BOARD MEETING

Thursday, 23rd July 2015 3.00pm – 6.00pm

Worcester Bosch, Cotswold Way, Worcester WR4 9SW

PRESENT:Mark Stansfeld (MS) Non-Executive ChairCarl Arntzen (KA) Managing Director, Worcester Bosch GroupDavid Green (DG) CEO & Vice Chancellor of the University of WorcesterCllr Margaret Sherrey (MS) Leader, Bromsgrove DC (rep Northern DCs)Mark Martin (MM) Chair of WLEP Business BoardCllr Simon Geraghty (SG) Deputy Leader, Worcestershire County CouncilDr Simon Murphy (SM) CEO, Worcester Community TrustNick Baldwin (NB) Chairman, Office for Nuclear RegulationStuart Laverick (SL) Principal & Chief Executive, Heart of Worcestershire

CollegeCllr Linda Robinson (LR) Leader, Wychavon District CouncilSteve Borwell-Fox (SBF) Managing Director, Borwell Ltd (attending in place of

Chris Walklett)

Observer:Cllr Linda Robinson (LR) Leader, Wychavon District Council

IN ATTENDANCE:Gary Woodman (GW) Worcestershire LEPIan Edwards (IE) Worcestershire LEPClaire Bridges (CB) Worcestershire LEPKirsten Dally (KD) Worcestershire LEPDavid Irish (DI) Worcestershire LEPDiane Dwyers (WS) Worcestershire LEP (Note Taker)Clare Marchant (CM) Chief Executive Officer, WCCGraham Pendlebury (GP) DFT, LEP Senior Sponsor

APOLOGIES:Chris Walklett (CW) Partner, Bishop Fleming

1

1.1

1.2

Welcome and Apologies

Mark Stansfeld (Chair) welcomed the Board including Mark Martin who is a new member of the Board and Clare Marchant, he also noted that there were apologies from Chris Walklett.

The Board Objectives were circulated prior to the meeting and Mark conveyed that he wanted an open and honest meeting.

ACTION

2

2.1

2.2

2.3

2.4

Minutes from the Board Meeting 2 nd April 2015

The LEP confirmed that the secure web is now up and running and everyone has been given their login details.

The Chair voiced that he would like the Board to use this web as much as possible.

The LEP confirmed there would be monthly updates and help with access should anyone require.

Any feedback from Board members would be extremely helpful in the development stages of the secure website.

ALL

3

3.1

3.2

3.3

3.1

3.2

3.3

Matters Arising

It was agreed that the Assurance Framework would be circulated electronically and reviewed by the Board with electronic approval.

All other matters were on the meeting’s Agenda.

Correspondence:

Correspondence was noted.

SG commented on the LEP Network Letter re the importance of multi-year agreements to projects.

Enterprise Zones – the Board noted the correspondence and recognised that guidance was due out in the coming days. Once the guidance was received the Executive Team would organise a decision making process to the make the best possible bid on behalf of Worcestershire.

G Woodman

G Woodman

4

4.1

4.2

4.3

Balance Scorecard

The balanced scorecard model was presented with the detail being available on the secure web. This gave ease of reporting and performance against 15/16 Business Plan.

The Board recognised that amount of work that had gone into this and asked for the following refinements:

Inclusion of balanced scorecard reflecting external relations A simplified way of reviewing the red rated actions An understanding of the way changes in risks are monitored The need to use this as a management tool Development of preventative action vs containment actions Board members to be responsible and accountable for reporting their

areas of responsibility

The Board expressed their thanks to the Executive Team for this excellent piece of work.

G Woodman

5

5.1

5.2

5.3

5.4

Growth Deal

The Board discussed the current RAG rating of the Growth Deal projects due for implementation in 15/16. It was noted that this was an assessment of the projects ability to spend the money allocated within the financial year, not the merits of the project.

The Board agreed to review the Assurance Framework before the end of March 2016.

The Board noted the progress on developing the pipeline of schemes within the partner organisations within Local Government, FE Colleges, Private Sector Training Providers, University and others.

The Board discussed the projects that were rated red, or where the risk was increasing, in detail. The following actions were agreed:

In relation to MHSP, the delivery of Phase 5 is the responsibility of the County Council/MHSP Board. However, the wider development, including the relationship with the QinetiQ owned land will be led by the WLEP.

All paperwork and approvals for projects in the pipeline need to be agreed by the September Board.

Another review meeting to be arranged at the start of September where all members of the Board are to be invited to discuss the existing Growth Deal Pipeline.

At this review meeting progress on the Pipeline for the existing and future Growth Deal rounds would be considered.

An early review of the 16/17 Pipeline to take place at the September Board.

Recognition that the WLEP will have to lobby for larger projects such as Carrington Bridge on the Southern Link Road and A38 Bromsgrove which are extremely expensive in relation to the total budget and currently have no money allocated.

The WLEP continue to work with Partners, in particular the County

ACTION

G Woodman

D Dwyers

5.5

Council to ensure successful spend of the £13.8m. Private Sector Project Champions to be identified for each Growth

Deal Project where appropriate.

The Chair reminded the Board that this programme is likely to judge the success of the WLEP and, therefore, we are one team where we have to challenge and support each other to deliver the Pipeline of projects and go back to Government at the end of the year showing delivery and success.

6

6.1

6.2

6.3

6.4

6.5

6.6

EU Structure Investment Fund Strategy Update

The Board received an ESIF presentation which updated the position from the Board report and which reflected the outcomes of Managing Authority advice and the Worcestershire ESIF Sub Committee on 22 July 2015.

CB advised that the Government has confirmed that the European Regional Development Fund (ERDF) Programme and EAFRD (Rural Development) Programme are approved and that the European Social Fund (ESF) Programme is still subject to negotiations with the European Commission and approval is expected in September. At this final stage, Government’s full guidance on ESIF, nationally and locally, will be published. It was noted that in the interim, Government has issued extracts from the Guidance to steer localities such as setting up the LEP Area ESIF Sub Committees. The Government has also issued its latest advice (July 2015) requiring the submission of a refreshed ESIF Strategy by 23 October 2015.

The Board noted the agreed Worcestershire ESIF Calls Forward Plan 2014-2020. The Board received a commentary on the “Strategic Fit” recommendations to the DCLG and Defra Managing Authorities on bid applications submitted in response to the March 2015 Open Calls in under the ERDF Programme and EAFRD Programme.

The Board noted three major projects had been submitted by business for expansion schemes under the EAFRD Programme and questioned when the ERDF and ESF Programmes would produce other substantial projects for delivery.

CB advised that the architecture for the ESIF programmes has been dictated by continuing protracted UK Government and European Commission negotiations during the last year and which have essentially delayed project delivery under ERDF and ESF Programmes in all LEP locations. However, various early programmes being shaped by the some of the first ERDF bids means that funding to support business proposals will start to emerge during the next year.

The Board recognised that good project development is essential to realise successful delivery in Worcestershire under European Programme funding as also highlighted under the Growth Deal projects. It was recognised that the role of the WLEP Executive and Board, with allied local partner organisations, is now changing from that of strategic planners into front-line project developers and deliverers. This shift in

ACTION

approach to work with business interests in nurturing and developing robust, viable projects is essential for Worcestershire and to demonstrate that delivery matches the ambition for growth and justifies Government and/or European funding allocations. An equivalent form of RAG rating (as under Growth Deal) will be used to measure progress and success.

C Bridges

7

7.1

Partnership Structure & Sub Groups

Chair said he would welcome comments/feedback on this by Monday 3rd August.

This Item will be revisited at the September Board.

Board Members

8 World Class Worcestershire Progress Update

The Chair thanked Graham Pendlebury for his feedback following the last session

Since the last session the power-point slides summarised the progress made in developing the brand for Worcestershire. This is in recognition of the existing “World Class Worcestershire” work that has been developed as a requirement for events we have attended i.e. MIPIM UK.

The WLEP Board sub-group has met on a number of occasions to discuss this work and hone the outcome of the previous Board session.

The sub-group reported some of the challenges in developing this brand and it was agreed that further testing with the target audience should take place by the lead organisation.

The Board also agreed the establishment of a public/private marketing forum which would bring together marketing experts to comment and develop the work further. This was agreed that future work would be brought back to the Board.

K Dally

9

9.1

9.1.1

9.1.2

9.1.3

Midlands Engine/Combined Authorities Update

Midlands Engine

The Board recognised the work on the Midlands Engine and the announcements that were made by Central Government, the Board agreed that WLEP and particularly its Local Government Partners needed to engage with this construct to ensure it was benefiting the Worcestershire economy.

The Senior LEP Sponsor advised the WLEP Board to influence and shape Midlands Connect, which received £5m in the summer budget.

The Board acknowledged the wider economic footprint of the Midlands was important to Worcestershire, however, routes to London and the South West were of equal importance. The Board agreed to commit resources to produce the prospectus for Midlands Engine and work with the other 10 LEPs to identify the priorities that would benefit Worcestershire in terms of growth and jobs.

Combined Authorities

9.2

9.2.1

9.2.2

The Board recognised the important distinction between the Midlands Engine and the development of Combined Authorities/County Deals. This is particularly important as Combined Authorities are likely to include measure and powers devolved to local areas on public sector reform issues and economic drivers.

The Board discussed the progress of the West Midlands Combined Authority and work being undertaken in Worcestershire. It was agreed that the WLEP should continue to take an active role in the development of the Worcestershire proposal.

10

10.1

10.2

WLEP Conference

The Board agreed the paper and acknowledged the request for any sponsors.

Further information to come back to September Board Meeting

ACTION

K Dally

11

11.1

11.2

11.3

Any Other Business

SM reported back to the Board on a meeting that was held with County and District Representatives about Worcestershire Regulatory Services. It was recognised that public sector financial pressures were affecting the existing WRS service model, notably the substantial budget reduction from Worcestershire County Council.

CB advised that WRS is a national exemplar and pioneered the Government’s “Better Business for All” (BBfA) Programme with other select locations in the UK. WRS provides positive consistent business support and advice to aid SMEs’ self-compliance with prosecution and enforcement as a last resort. In this context, the SEP’s Ask of Government was accepted and the specific pioneering work on the UK Exemplar Project for the Agri-Food Agri Tech Sector is underway. CB advised that she had spent time with WRS staff recently which integrated the national Regulators’ Code and BBfA principles in all service delivery and that income-generation business models were being explored already in readiness to meet continuing Government requirements as well as find new local funding solutions for local regulatory services.

The Board agreed its willingness to work with WRS to ensure that it continues to build on existing BBfA principles and best practice to provide consistent positive business support to SMEs. It was agreed that a report would be submitted to a future Board to provide a progress update on BBfA focused work as well as on the emerging WRS business development model.

C Bridges

12 Dates of Meetings in 2015

WLEP BOARD:

24th Sept - Worcester Bosch19th Nov - Worcester Bosch

3.0 MATTERS ARISING (ACTION LIST & CORRESPONDENCE)

3.1 ACTION LIST

3.1.1 The LEP confirmed that the secure web is now up and running and everyone has been given their login details. Any feedback from Board members would be extremely helpful.

3.1.2 It was agreed that the Assurance Framework would be circulated electronically and reviewed by the Board with electronic approval.

3.1.3 Enterprise Zones – the Board noted the correspondence. Once the guidance was received the Executive Team would organise a decision making process to the make the best possible bid on behalf of Worcestershire.

3.1.4 Balance Scorecard – to be revised and the following points taken forwards to future meetings.

Inclusion of balanced scorecard reflecting external relations

A simplified way of reviewing the red rated actions

An understanding of the way changes in risks are monitored

The need to use this as a management tool

Development of preventative action vs containment actions

Board members to be responsible and accountable for reporting their areas of responsibility

3.1.5 Growth Deal - A review meeting to be arranged at the start of September where all

members of the Board are to be invited to discuss the existing Growth Deal Pipeline.

3.1.6 EU Structure Investment Fund Strategy Update - An equivalent form of RAG rating (as under Growth Deal) will be used to measure progress and success at future Board meetings.

3.1.7 Partnership Structure & Sub Groups - Chair said he would welcome comments/feedback on this by Monday 3rd August. This Item will be revisited at the September Board. Action: Board Members

3.1.8 World Class Worcestershire Progress Update - The Board also agreed the establishment of a public/private marketing forum which would bring together marketing experts to comment

and develop the work further. This was agreed that future work would be brought back to the Board.

3.1.9 WLEP Conference – the agenda was approved.

3.1.10 Regulation - It was agreed that a report would be submitted to a future Board to provide a progress update on BBfA focused work as well as on the emerging WRS business development model.

3.2 CORRESPONDENCE

3.2.1 Letter dated 5th August 2015 from LEP Network addressed to Chancellor and Secretary of State re Local Enterprise Partnerships – Certainty of Future Funding.

3.2.2 Letter dated September 2015 from George Osborne to LEP Network re thank you for your letter 5th August setting out your concerns about the future certainty of funding for your organisations.

3.2.3 Letter dated 4th September from Worcestershire Council Leaders and LEP Chair to The Rt Hon Greg Clark MP re Update on progress and intent.

3.2.4 LEP Area ESI Funds euro notional allocations - updated sterling valuation

4.0 WORCESTERSHIRE INNOVATION PROGRAMME OFFICE

WLEP BOARD RECOMMENDATIONThe Board is asked to note the progress to date regarding the feasibility study which will be presented by QinetiQ at the Board 24 September 2015. The feasibility was commissioned by the Worcestershire County Council, with the findings presented on 10 September 2015.

The Board is asked to agree the recommendation of the feasibility which is the establishment of the Worcestershire Innovation Programme Office with contribution from a range of partners.

The Board is recommended to agree a contribution of £50k across 2 financial years to the funding for the Programme Office. Worcestershire County Council has agreed a financial contribution if match-funding could be found from other innovation and business partners.

4.1 Context

4.1.1 In March 2015, the Worcestershire County Council approved a feasibility to be carried out by a private sector business into the viability of an innovation entity within Worcestershire. A collaboration between QinetiQ PLC, Worcestershire County Council (WCC), Herefordshire and Worcestershire Chamber of Commerce (HWCC) and Worcestershire Local Enterprise Partnership (WLEP) was formed with the feasibility, conducted by QinetiQ, spanning the five months of April to September 2015.

4.1.2 Conducted by QinetiQ and project managed by WCC, the feasibility focused on gathering information from a number of sources to determine ultimately if a Worcestershire Innovation entity would be a viable asset in the Worcestershire region. Using a mixture of academic based research and 1:1 interviews plus an ingrained understanding of the R&D and innovation environment locally and nationally, QinetiQ have assembled a presentation to present the findings of the feasibility.

4.1.3 In addition to the written feasibility, three concurrent activities have taken place, which have been used to aid the feasibility as a whole.

Worcestershire Innovation Wednesdays (WIWs) – free for businesses to attend, these events have happened once a month since February 2015 with tangible results being noted from each event.

ESIF Funding bids – submission of two bids in collaboration with QinetiQ

Access to the QinetiQ IP Portfolio is being made available through the WIW events.

4.2 Proposal and Delivery/Actions

4.2.1 The Board is asked to endorse the recommendation of the feasibility study for the formation of the Worcestershire Innovation Programme Office.

4.2.2 Objectives from the establishment of the Worcestershire Innovation Programme office are:

Develop an Innovation Strategy to act as the delivery strategy for the innovation aspect of the SEP

Facilitate the creation of a stakeholder group to continue the WIW activity utilising ESIF funds

Define a set of initial interventions / projects for the local business community, examples of which are:

o Working with the University on the detailed business case for an Engineering Faculty

o Develop a 'Wayra' style investment scheme for innovation activitieso Development of Enterprise Centres / Innovation Hubs initiated by the WLEP

Develop tangible connections within funding providers nationally and locally (Innovate UK, Horizon 2020 etc.) to aid R&D in the county. Coupled with a detailed analysis of the current R&D and innovation capability in the county.

4.2.3 Outcomes anticipated are:

Creation of a Worcestershire Innovation Programme Establish the Worcestershire Innovation Programme Office as a vehicle which holds

business credibility within a national context. Either as an independent structure or within an established entity

Ability to bid for and have access to multi million pound funding sources, within Europe and Internationally, which are usually not within the reach of public sector organisations

Growth in the number of businesses within Worcestershire introducing new projects and products

Creation of an environment in which 'spin outs/staff mutuals and new business development is encouraged and nurtured through access to networks, identification of new market opportunities, dissemination programmes to SMEs and supply chains and links to business support and finance

Co-location of teams from different organisations to work on projects within the Programme Office, enhancing the networking opportunities between academic, public and private sectors

Hosting of programmes to develop businesses, academics and individuals on key themes such as technology, innovation and knowledge transfer i.e. Worcestershire Innovation Wednesdays

Encouraging / facilitating a new culture of working between industry and academia, changing behaviours and breaking down boundaries to encourage innovation

4.2.4 A financial contribution of £25k per financial year for two years is requested from the WLEP Board, as match funding towards to the total cost of the Programme Office.

4.3 Partners and Engagement

4.3.1 As shown in the presentation, the structure / staffing of the Programme Office is anticipated to be drawn from the collaborative organisations (MHSP, University, WLEP, Chamber, and WCC) with investment of either cash, resources or in kind. Formal discussions are required with each of the organisations to clearly identify their level of input to the Programme Office.

4.3.2 Private sector businesses will also have a key role to play in the Programme Office, whether it is from a funding / staffing / expertise or a contracted role. QinetiQ have to date been very strong in the Business Development area, and as such the project wishes to continue this relationship through contract. As the Programme Office gains credibility there may be scope for private sector investment directly into the operating model to ensure sustainability of such a service.

4.3.3 As part of the development of the Worcestershire Devolution deal, an ask of Government has been made to second a member of staff from Innovate UK, the Government Innovation body, into the Programme Office to support the development of the delivery plan.

5.0 GROWTH DEAL UPDATE

WLEP BOARD RECOMMENDATION1. That the Board notes and discusses the RAG (Red, Amber, Green) rating

assigned to each Growth Deal Project.

2. That the Board notes and discusses the current project pipeline.

5.1 Growth Deal Projects – Risk Rating5.1.1 The Board is invited to review the updated RAG rating for all current Growth Deal projects

due for implementation in 2015/2016 and 2016/2017.

5.1.2 The figures identified for each project over the three year period represents the totality of budget approved by Government in Rounds 1 and 2 of the Growth Deal. This is being managed on a programme basis and therefore, projects within this framework can be accelerated or pushed back to achieve the bottom line expenditure which, for 2015/2016 is c £13.6m.

5.1.3 The current programme for 2015/2016 stands at around £13.8m which is insufficient particularly given the likely slippage of schemes. Therefore, the focus for the next 3 months is to continue developing a pipeline of projects within the context of the Employment and Housing Infrastructure Fund and Skills Capital Fund and to examine the potential for an Innovation Centre within the context of the emerging Innovation Strategy.

5.2 Pipeline Development – Skills Capital Fund5.2.1 The approach to developing the project pipeline has tended to focus on the identification of

schemes in the context of the programmes approved as part of the Growth Deal Round 2 negotiations. These being:

Skills Capital Fund

Housing and Employment Land infrastructure Fund

5.2.2 In terms of the Skills Capital Fund, the LEP team has now met with all Further Education Colleges within the county as well as the Midland Group Training Services, which has an engineering operation in Redditch, to develop a high level programme of capital investments for projects that contribute to the delivery of the WLEP Business Plan 2015 – 2018.

5.2.3 It is not suggested that the outcome of these discussions provides a fixed programme of activity that shapes skills capital investment for the next few years. There will still opportunities to develop schemes that contribute to the delivery of our Business Plan. The exercise does reveal that there are a number of projects that are capable of making a significant contribution to skills development in Worcestershire in the short to medium terms and are worthy of further consideration.

5.2.4 Table 2 below provides an overview of the emerging projects as well as a recommendation as to the next steps in project development.

5.3 Pipeline Development – Employment and Housing Infrastructure Fund5.3.1 In developing the Housing Implementation Plan, WLEP already has identified the priority

housing sites requiring investment of resources, both time and funds, over the next 5 years. We continue to meet with District Councils and the Homes and Communities Agency to identify the capital investment required for unlocking a number of the sites identified within the Plan.

5.3.2 The Housing Implementation Plan is attached as Table 3 for information. It is unlikely that any of the schemes required to unlock these sites will be delivered in 2015/2016. We have requested a refresh of the Plan from information that will be supplied by the District Councils.

5.3.3 In terms of the required infrastructure for employment sites, some of which will, of course, have a direct correlation with the infrastructure needs for housing sites, the Executive Director and the Head of Strategic Infrastructure and the Economy at Worcestershire County Council has met with individual District Chief Executives, Economic Leads and Council Leaders to identify the priority sites and investments where we can work together to develop a pipeline of schemes addressing infrastructure constraints on commercial sites.

5.3.4 This pipeline of possible sites and developments from these discussions is wide ranging and emerging, however there are some consistent themes which can be categorised in the following themes:

Town Centres – economic positioning of urban areas

Eg Lowesmoor regeneration Worcester City, Redditch Town Centre Master Plan and Evesham Shopping Centre Redevelopment.

Highway – network improvements

A4440 – Carrington Bridge, A38 Bromsgrove, Bromsgrove, Malvern, Evesham networks. Plus Junction 6 M5 and A46 – under Highways England control.

Rail – efficiency of services + station improvement

Station development - Kidderminster - additional halts, Pershore – expansion, Shrub Hill – Rapid transit, redevelopment, Network Lobbying

Cotswold line improvement, Birmingham / Bristol connectivity, Parkway phases electrification

Wider Infrastructure - Utilities, Innovation, University Technical College, Future ‘gamechanger’ sites – A435 Corridor.

5.3.5 The first to be funded in the context of the Employment and Housing Infrastructure Fund will be Vale Park, Evesham where an access road is opening up 30 acres of developable land as part of the Food Enterprise Zone. An application for funding will be considered by the Board at its 24th September 2015 meeting.

Ian EdwardsGrowth Plan Project Manager

Growth Deal – RAG Rating

Project Project Lead

Project Phase

2015/2016 Forecast

2015/2016 Actual

2016/2017 Forecast

2017/2018 - 2020/2021

Forecast

Total Budget RAG (Change) Commentary - IE

Pershore Lane Improvements (Worcester Six)

WCC Business Case £2,000,000 £925,000 £3,000,000 £0 £5,000,000

Approved by the Local Transport Body on 11th September 2015. Recommendation: Keep in programme at current budget level and review in Quarter 3 for potential increased spend.

Malvern Hills Science Park (Phase 5)

Nigel Hudson (WCC)

Programme Entry £1,000,000 £0 £3,000,000 £0 £4,000,000

Presentation at the WLEP Board on 24th September 2015 by WCC on development of Phase 5. Recommendation: Outcome dependent upon discussion at WLEP Board

Centre of Vocational Excellence

Duane Sanger

(HWGTA)

Business Case £0 £0 £880,000 £0 £880,000

Concerned that spend will not be achieved due to inability to identify location. Recommendation: Keep in programme but remove budget from 15/16 and put all costs in 16/17.

BroadbandSte

Ashton (WCC)

Business Case £0 £0 £1,200,000 £1,200,000 £2,400,000

Potential to increase expenditure in 2016/2017 but given that the last cabinet is due to be enabled in June 18, current profile remains for planning purposes. Recommendation: No action required.

Flood Alleviation

Matt Maginnis

(WCC)

Business Case £500,000 £0 £2,000,000 £1,500,000 £4,000,000

Amber risk relates to the fact that the Year 1 project, New Road, is unlikely to be implemented due to desire to work with the Cricket Club on the Phase 3 development of the Ground. Work already undertaken on A44 at wood Norton which will be WLEP funded once LTB Assurance Framework process is complete. Additional sites being identified for


Project Phase

2015/2016 Forecast

2015/2016 Actual

2016/2017 Forecast

2017/2018 - 2020/2021

Forecast


2015/2016 implementation. Forecast expenditure has already been reduced to £500,000 to reflect this uncertainty. Recommendation: Keep in programme at current budget

Hoobrook Link Road

Mark Mills (WCC)

Business Case £3,600,000 £2,700,000 £0 £0 £3,600,000

No change in risk to WLEP expenditure but WCC need to ensure that process to approve Growth Deal Funds in both GBSLEP and WLEP are adhered to. WCC has let works contract to Alun Griffiths and agreed to underwrite additional costs (c £3.4m) should additional funds from LEPs not being forthcoming. £2.7m represents total spend on the project and has not been apportioned between WLEP, GBSLEP and Pinch Point. Recommendation: Keep in programme at current budget

Southern Link Road Phase 3A

Andy McGinnis

(WCC)

FullApproval £5,200,000 £1,500,000 £3,700,000 £0 £8,900,000

Phase 3A (Norton Roundabout) approved by the Local Transport Body on 11th September 2015 in the sum of £8.9m which will be funded in its entirety by WLEP. As a result, historic capitalised fees, etc. for Phase 3 can now be met by the WLEP budget. Recommendation: Increase budget in 15/16 from £3.4m to £5.2m

Southern Link Road Phases 3B and 3C

Andy McGinnis

(WCC

Conditional Approval £0 £0 £0 £7.500,000 £7.500,000 Future Phase 3 Phases to be progressed to full approval in

accordance with LTB Assurance Framework

Parkway StationTom

Delaney (WCC)

Business Case £0 £0 £7,500,000 £800,000 £8,300,000

Planning permission granted in August 2015 and conditional approval granted by Local Transport Body on 11th September 2015. Potential to acquire land in 15/16 using WLEP budget. Recommendation: Keep in programme at current budget


Project Phase

2015/2016 Forecast

2015/2016 Actual

2016/2017 Forecast

2017/2018 - 2020/2021

Forecast


Kidd. Railway Station

David Balme (WCC)

Business Case £0 £0 £2,500,000 £0 £2,500,000 Recommendation: Keep in programme at current budget

Vale ParkPhil

Merrick (WDC)

Programme Entry £500,000 £0 £500,000 £0 £1,000,000

Tenders returned showing marginal saving on budget with contractor due to start in October 2015. Second phase work likely in 16/17 following winter period. Application being considered by September Board. Recommendation: Keep in programme at current budget.

META Project

Noreen Moses (South

Worcestershire

College)

Business Case £313,000 £0 £0 £0 £313,000

Low risk as essentially capital equipment for South Worcestershire College. Will be presented to the November 2015 Board for approval. Recommendation: Keep in programme at current budget.

Cathedral Square

Lynsey Keir

(WCC)

Business Case £500,000 £300,000 £0 £0 £500,000 New

Low risk due to relationship to wider development of Cathedral Square and contractor already on site. Project needs to be approved in the context of the LTB Assurance Framework. Recommendation: Keep in programme at current budget.


Project Phase

2015/2016 Forecast

2015/2016 Actual

2016/2017 Forecast

2017/2018 - 2020/2021

Forecast


Worcestershire Business Central

Ian Edwards (WLEP)

Approved £250,000 £50,000 £0 £0 £250,000

Risk relates to potential delays in appointing new staff as a result of WCC staff securing alternative employment prior to the expected transfer to be co-located with the Chamber of Commerce. All new posts for Chamber staff filled. Recommendation: Keep in programme at current budget.


Project Phase

2015/2016 Forecast

2015/2016 Actual

2016/2017 Forecast

2017/2018 - 2020/2021

Forecast


Employment and Housing Infrastructure Fund

Ian Edwards (WLEP)

Programme Entry £0 £0 £1,000,000 £500,000 £1,500,000

Risk reduced as budget in 15/16 now identified for Cathedral Square. Recommendation: Keep in programme at current budget.

Business Growth Fund

Ian Edwards (WLEP)

Programme Entry £0 £0 £1,000,000 £1,000,000 £2,000,000

Programme being considered for approval by WLEP Board in September 20015 with a view to launching at the 2015 Annual Conference. Potential to use an element of funds to support innovation priorities ie link to emerging Innovation Strategy. Recommendation: Keep in programme at current budget.

Skills Capital Fund

Ian Edwards (WLEP)

Programme Entry £687,000 £0 £1,200,000 £0 £1,887,000

Risk relates to requirement to develop and approve Skills Capital projects in time to defray expenditure this year. . Recommendation: Keep in programme at current budget.

Total £14,550,000£5,475,000

£27,480,000 £12,500,000 £54,530,000

Budget £13,650,000 £24,152,509 £16,662,357 £54,464,866

Table 2 - Worcestershire LEP Skills Capital FundProject pipeline and spend profile 2015 -2018

College Project SEP Priorities addressed Total project cost

WLEP Grant request

Indicative spend profile by financial year (WLEP grant only drawdown) Recommendation

15/16 16/17 17/18

South Worcestershire College

Manufacturing Engineering Training Academy (META)

Advanced Engineering, Automotive & Aerospace, Agritech

£435,000 £313,000 £313,000 £0 £0Identified as a preferred project within the Growth Deal 2 process. Agree to Programme Entry and develop an application to the Skills Capital Fund.

Automotive Body & Paint Workshop Automotive £200,000 £100,000 £50,000 £50,000 £0 Unlikely to be a priority in the context of the WLEP

Business Plan. No further action at this stage.

Heart of Worcestershire College

Advanced Engineering (Premises & Resource up-grade)

Advanced Engineering Automotive & Aerospace £3,670,000 £1,800,000 £1,000,000 £800,000 £0

Potential for inclusion in the Skills Capital fund but insufficient detail to progress at this stage. Further discussion with College prior to considering for Programme Entry

Pershore College

Food Manufacturing Centre Agritech/Agrifood £2,000,000 £1,000,000 £0 £500,000 £500,000


Agritech - Pershore College Agritech/Agrifood £1,000,000 £500,000 £500,000 £0 £0

Clearly articulated benefit to supporting skills development in the agritech/agrifood sector and associated with new facility at Pershore College. Agree to Programme Entry and develop an application to the Skills Capital Fund

Kidderminster College Construction - advanced skills Construction £500,000 £250,000 £0 £250,000 £0


Midlands Group Training Centre of Engineering Excellence (Redditch)

Advanced Engineering, Automotive & Aerospace, Agritech

£1,400,000 £350,000 £150,000 £200,000 £0

Clearly articulated benefit to increasing number of Higher Level Engineering Apprentices in North Worcestershire. Match funding from both MGTS and GBSLEP. Agree to Programme Entry and develop an application to the Skills Capital Fund

Total £9,205,000 £4,313,000 £2,013,000 £1,800,000 £500,000

6.0 MALVERN HILLS SCIENCE PARK – PHASE 5

6.1 A presentation will be made at the Board meeting. Delivery Business Case will be Available on the WLEP Secure Portal.

Nigel Hudson Head of Strategic Infrastructure & Economy

7.0 PROJECT APPROVAL - BUSINESS GROWTH FUND

WLEP BOARD RECOMMENDATION1. That the Board approves the Business Growth Fund in the sum of £2m subject to the

conditions identified within this paper;

2. Delegates to the Executive Director the ability to sign off each condition prior to the launch of the Business Growth Fund at the Annual Conference on 13th November 2015.

3. Delegates the investment decision for each and every Business Growth Fund application to the WLEP Business Growth Sub Group.

7.1 Background

7.1.1 As part of the Growth Deal Round 2 (GD2) negotiations, WLEP put forward a business grant programme, hereinafter referred to as the Business Growth Fund, which was favourably received by Government.

7.1.2 As a result, £2m of the £7.2m settlement for GD2 was made available for the introduction of the Business Growth Fund.

7.1.3 To satisfy our own Assurance Framework for the development, appraisal and approval of projects, Worcestershire County Council was invited to develop a funding application which has subsequently been appraised by the Executive Team.

7.1.4 The remainder of this paper examines the operation of the Business Growth Fund and presents the findings of the independent appraisal.

7.2 Scope

7.2.1 The Business Growth Fund is a capital grant programme that will be managed by Worcestershire County Council (WCC) on behalf of WLEP. It is essentially a continuation of the Worcestershire Expansion Programme (WEP) which was funded by Regional Growth Fund and has recently ended.

7.2.2 Grants of between £20,000 and £400,000 will be available to small, medium and large Worcestershire businesses as well as Inward Investors leading to the following outputs and outcomes:

Creation of 150 jobs through business growth in the county, leading to an additional £5.8m GVA per annum

To assist businesses in safeguarding at least 60 jobs by March 2017. Assist 40 businesses to increase their turnover by March 2017. Lever in at least £6m private sector investment by March 2017

7.2.3 The Business Growth Fund will be targeted towards ‘scale up’ type businesses with priority given to those in our key sectors of agritech, advanced manufacturing and cyber, defence and security and will use both General Block Exemption Regulation and Deminimus state aid solutions to underpin the programme.

7.3 Marketing and Promotion

7.3.1 The Business Growth Fund will be promoted by Worcestershire Business Central (WBC) who will be required to produce a clear marketing and communications plan to ensure quality applications are received

7.3.2 It is proposed that rather than have a continuous open application process, the scheme be managed via discrete funding rounds of, say, 3 months.

7.4 Governance7.4.1 It is proposed that the governance of the scheme remains similar to that used for the WEP

in that the investment decision is made by the WLEP’s Business Growth Sub Group.

7.4.2 Following the planned funding rounds, applications will be assessed by WCC along similar lines to the WEP with a recommendation presented to the decision making body. This ensures a clear separation of duties between the appraisal and approval. This will include the examination of current accounts and due diligence checks.

7.4.3 The decision making body will have access to any information it deems is necessary to make an informed decision.

7.4.4 Finally, once a decision has been made, WCC acting as Accountable Body for WLEP will enter into a funding agreement with the successful applicant.

7.5 Management and Admin7.5.1 WCC will administer the BGF on behalf of Worcestershire LEP and it is proposed that

reasonable costs for undertaking this will be met by the programme. Such costs could include, for example, financial management, legal input to state aids advice and appraisal.

7.5.2 WBC will market and promote the BGF and in a similar way, reasonable costs for this will also be met by the programme.

7.6 Appraisal Findings7.6.1 As previously stated, the Business Growth Fund application has been appraised by the

Executive Team and whilst the scheme is recommended for approval, the following issues need to be addressed before the scheme is launched at the WLEP Annual Conference on 13th November 2015;

(i) Evidence is required that supports the value of private sector leverage suggested within the application;

(ii) Clarity is required on the way in which WLEP priority sectors will be targeted

(iii) Clarity on what service the WLEP will be receiving for the £200,000 project management cost proposed within the application and how this relates to the role of Worcestershire Business Central in terms of generating enquiries from the WLEP priority sectors and how SMEs from those sectors, will be supported through the application process.

(iv) Clarity on how the project will be managed to ensure that innovation and inward investment activities are encouraged and supported.

(v) Clarity on how the project will engage with banks and commercial lenders as intermediaries and potential sources of referrals.

(vi) An agreed reporting procedure be put in place to meet the needs of the WLEP Executive Team, WBC and the Business Growth Sub Group

(vii) The completion of a Risk and Issues Log as well as a Communications Plan and an Evaluation Plan to be developed in partnership with Worcestershire Business Central


8.0 PROJECT APPROVAL - VALE PARK – EVESHAM

WLEP BOARD RECOMMENDATION3. That the Board approves a grant in the sum of £800,000 to Wychavon District Council to

construct an access road for Vale Park, Evesham.

8.1 Background

8.1.1 As part of the Growth Deal Round 2 (GD2) negotiations, WLEP put forward an Employment and Housing Infrastructure Fund of £3m which was favourably received by Government and was subsequently included as part of the £7.2m settlement.

8.1.2 To secure the funds, WLEP was required to identify a typical scheme that would be included in the Fund and as one of the original 23 priorities considered in the Strategic Economic Plan, Vale Park was identified.

8.1.3 To satisfy our own Assurance Framework for the development, appraisal and approval of projects, Wychavon District Council as landowner was invited to develop a funding application which has subsequently been appraised by the Executive Team.

8.1.4 The remainder of this paper examines the detail of the project and presents the findings of the independent appraisal.

8.2 Project Detail

8.2.1 The project is the construction in 2 phases of a new access road to open up 20+ acres of employment land at Vale Park, Evesham. The first phase being the construction to base course of the road in 2015/2016 with additional work including completing the pavement, lighting, etc in 2016/2017 and beyond. This programme may be accelerated should there be significant developer interest.

8.2.2 Details of the scheme are shown in Plan A.

8.2.3 The site is designated as a Food Enterprise Zone by Defra in recognition of its current success and its future potential to support the food and related agri-tech sectors.

8.2.4 Development of the site has been stifled for the past 8 years despite strong interest and demand from potential business investors. By bringing the site back into local ownership and control the District Council has created the conditions for the private sector to take further development on.

8.2.5 This project will enable the development of this strategically important employment site over the short and medium term. Creating the conditions to achieve this has taken several years and has required significant investments of both time and money (£2M+) by the applicant, Wychavon District Council.

8.2.6 The District Council has worked creatively with the private sector to enable the entire site to be brought back into local ownership and control so that it can fulfil its potential as an important local contributor to new business investment, growth and employment in the WLEP priority sector of food and agri-tech.

8.3 Appraisal Findings

8.3.1 As previously stated, the Vale Park application has been appraised by the Executive Team.

8.3.2 The applicant clearly demonstrates both need and demand for this project. WLEP funding will accelerate delivery of the access and related services infrastructure which is seen as crucial by potential occupiers. Having already spent over £2M on site acquisition, the District Council is understandably unlikely to approve further funds at risk.

8.3.3 Without WLEP funds the project development programme will be extended over the medium to long term and the opportunities to attract early investment would be missed in the WLEP Business Plan period.

8.3.4 WLEP funding and with it early delivery of the access road, would boost investor confidence and provide an important element of de-risking that would encourage the private sector to take on future development risk.

8.3.5 Prior to entering into a Funding Agreement, it is recommended that:

(i) The applicant provides details of conditions imposed as a result of planning approval

(ii) The applicant provides details of relevant enquiries for the site or enquiries that could be accommodated on the site.

(iii) Applicant confirms timetable for phase 2 prior to approval of the phase 2 grant component.

(iv) The applicant confirms its ability to defray costs prior to grant claim.

(v) Applicant provides milestones for monitoring purposes


Plan A – Location Plan and Acccess Road

9.0 BALANCED SCORECARD

WLEP BOARD RECOMMENDATION

The WLEP Board is recommended to note and comment on the Balanced Scorecard for the period ending 18th September 2015 which will be available on the secure portal.

9.1 CONTEXT9.1.1 At its meeting on 23rd July 2015, the Board approved a Balance Scorecard model covering

performance across the entirety of WLEP activity.

9.1.2 The Scorecard assigns a RAG rating to a number of performance measures relevant to the delivery of the 2015/2016 Delivery Plan and 2015 – 2018 Business Plan as follows:

The Operational theme highlights and categorises risks that apply across all areas of WLEP activity;

The Financial theme outlines spend against targets for the budgets the WLEP has control over – i.e. Local Growth Fund, Growing Places, and Core funding.

The Delivery theme outlines performance against measures identified in the Delivery Plan, and;

The Stakeholder Engagement theme reflects progress made in implementing the marketing and communications plan.

9.1.3 The agreed approach was that an updated Scorecard would be placed on the secure portal prior to each Board with a short, summary report addressing significant changes provided for discussion at the meeting.

9.2 COMMENTARY9.2.1 The following represents a brief overview of significant changes in risk since the last

reporting period.Operational Changes Following recent budget reviews, the operating costs risk (Revenue funding made

available is insufficient to cover operating costs) has been reduced from Red to Amber.

Delivery Changes Planning, Development and Infrastructure:

Worcester 6 risk reduced from Amber to Green as start on site has been achieved.

Developing a strategic case for the Housing and Employment Land Infrastructure Fund has been reduced from red to amber as a new date has been identified for this risk that is non critical for the 2015/2016 programme.

Completing the heat mapping and geothermal desk top review risks have been reduced from red to amber as a new date has been identified for this risk that is non critical for the 2015/2016 programme.

The risk relating to New Road stating in December 15 has been raised to Red. However, additional projects will be introduced to meet the spend targets for the flood project in 15/16.

Business Growth

Completing the Innovation Hub Study risk has been reduced to Green as it is now signed off.

National Profile and Promotion

The distribution of publications measure has been reduced from Red to Amber

The number of web site hits measure has been increased from Green to Amber

The number of enquiries risk has been reduced from Red to Amber

Financial Changes

Additional measure relating to Growth Hub performance added to previous targets

9.2.2 Finally, the Stakeholder Engagement measure on the main Balanced Scorecard summary page is new and therefore significant changes will be reported to future Board meetings.

Gary WoodmanExecutive Director

10.0 ENTERPRISE ZONE BID

WLEP BOARD RECOMMENDATIONThe Board to note the report and support and lobby for the bid during the period until the announcement due in November 2015

10.1 Context

10.1.1 Announced at the Summer 2015 budget, the government is inviting bids for a new round of Enterprise Zones. The existing Enterprise Zones have supported the creation of over 15,000 jobs throughout England. This new round will focus on ensuring that all places in England can benefit, including rural areas where appropriate, and the government encourages towns and districts to work with LEPs to develop bids.

10.1.2 The Guidance was received after the July 2015 WLEP Board and the closing date for applications was the 18th September.

10.1.3 In this application round preference will be given to proposals which:

involve smaller towns, places and districts, and/or have been clearly identified as the Local Enterprise Partnership’s top local growth priority

Applications for new Enterprise Zones should also demonstrate a strategic fit with areas’ plans improved governance arrangements, devolved powers and (where appropriate) devolution ‘deals’.

10.1.4 Assessment will focus on the extent to which proposals: Will deliver sustainable growth Offer value for money Can be implemented and delivered, with sites brought to the market in a planned

way

10.2 Worcestershire’s LEP bid

10.2.1 On Monday 7th Sept WLEP met the DCLG EZ team of Julie Wyeth and Neil Lawrence and talked through our possible bid. It was clear that from their advice and experience of existing EZ’s that

a) A multi-site approach was acceptable.b) The scale of most rural bids was too small and smallest viable bids are at least 60

hectares and an average of 100ha.

c) land value uplift was their key measure of success (not jobs and GVA) – therefore cleared sites are preferable to create the lowest possible base.

d) deliverability of business occupation preferably needed to be within the first 5 years and at worst in the first 10 years or the site was not considered viable.

10.2.2 We understand that DCLG will evaluate bids and place them in three categories

1) Extension on existing EZ

2) Devolution proposals

3) Rural.

10.2.3 Minsters will make the final decision in time for announcement at the Autumn Statement. DCLG has advised WLEP to explore cross LEP bids as a possible solution to the issue of scale. We have spoken to GBSLEP, Marches LEP, Gloucestershire LEP and Cov & Warwickshire LEP. Although none of the proposals fit well together to make a possible cross LEP bid, particularly in relation to the time line before submission. Therefore we have ruled this out.

10.2.3 The WLEP Board recommended the following sites at an extraordinary meeting on the 14th September. a) Worcester 6 – Phase 1

b) MHSP Phase 5 and new employment land.

c) South Kidderminster Enterprise Park – only cleared land

d) Redditch Eastern Gateway – Only the area in Worcestershire.

e) Evesham Vale Park - Food Enterprise Zone – Wychavon and Strickland ownership

f) University Park

This totals about 120ha.

10.3 Timescale and Next Steps

10.3.1 The timetable beyond the submission date of the 18 September 2015, when we submitted the application is; during September and October – DCLG and other Departments assess bids, we will have little opportunity to change the bid. The expect announcement of successful application is in November. If successful a business case has to be written by February 2016 and in April 2016 – regulations for business rate incentives come into force

10.3.2 A short briefing will be produced by the WLEP Executive week commencing 21 st

September to send to WLEP Board members, MPs and other partners in order to lobby our case and ensure communication between all potential benefices.


11.0 WLEP ANNUAL CONFERENCE 2015

WLEP BOARD RECOMMENDATIONThe WLEP Board is asked to note the progress made to date and since July’s Board meeting in planning the #WLEP15 Annual Conference and provide any final feedback to finalise the content in the agenda (Appendix A).

Following today’s Board meeting (September), Board members are asked work with Opening Doors and Venues, who will be in contact, and members of the Executive Team to finalise the content for their section so that key messages/stories that panellists wish to cover are submitted by 19 October and presentations received by 5 November.The WLEP Board are also asked to note the progress made in promoting the event to businesses and are requested to help raise awareness of the Conference. Board members are requested to share the invitation and sponsorship/exhibition opportunities through networks and supply chains to attract businesses of all sizes and sectors and to increase the number of producing companies in attendance.

To ensure all the Board’s individual requirements are met, including dietary requirements and attendance at any workshops, Board members are also requested to register via the dedicated Conference website (www.wlep15.eventreference.net) at the earliest opportunity with a direct link available at www.wlep.co.uk

11.1 Context

11.1.1 The Board received a report in July 2015 which provided an update on the planning for the Worcestershire LEP’s Annual Conference, #WLEP2015.

11.1.2 Board members provided feedback on the draft agenda which, as well as the feedback received on last year’s conference, has been incorporated before the Conference website was launched.

11.1.3 As mentioned in July’s Board paper, the purpose of the WLEP Conference is:

a) To share the latest information on the progress of the LEP with a large audience

b) To host a large event where all the partners can network together

c) To showcase the successes of the LEP

d) To provide an overview of the future priorities of the partnership.

11.1.4 Last year, the Annual Report was published to coincide with the Conference and it is planned to do this once again.

11.2 Proposal and Delivery/Actions

11.2.1 The Conference website was launched on 4 September 2015 when registration opened. The dedicated website included the event’s agenda. www.wlep15.eventreference.net

11.2.2 The keynote speakers have now been secured and include: Rt. Hon Secretary of State for Business, Innovation & Skills, Sajid Javid MP and Executive Director of Finance at the British Bankers Association, Irene Graham.

http://www.wlep15.eventreference.net/

http://www.wlep.co.uk/

http://www.wlep15.eventreference.net/

11.2.3 Two afternoon seminars have also been confirmed (which require pre-booking): Building Talent for Growth – Delivered by Hewett Recruitment and Innovation: A Strategic Necessity – Delivered by the Business Growth Service.

11.2.4 Registrations were well received and in two weeks, exceeded 200 delegates – with the majority being from businesses in the County.

11.2.5 The event organisers, Opening Doors and Venues, are continuing to pursue sponsorship and exhibition opportunities for the conference. Income from exhibition and sponsorship stands at £7,500 to date. Confirmed sponsors include: Hewett Recruitment, First Great Western, OGL Computer, Santander Corporate & Commercial and Business Growth Service. Four sponsorship opportunities remain: the Live Twitter Feed & Tweetup Meetings, The Energiser and 2 x Sponsor Feature Corners. One exhibition stand remains (correct as of 18 September).

11.2.6 New for 2015 includes: Slid.do, sponsored by OGL Computer, an innovative online platform that will be used to gather questions from the floor. Also new for 2015 includes live digital sketching, sponsored by Santander Corporate and Commercial. Digital sketching will be utilised during 3 sections: Drawing Success from the EU: Skills & Social Inclusion, Reviewing a Successful Year and Previewing a Bright Future and the Growth Hub – realising business potential.

11.2.7 Since the last meeting, the content for the agenda has been further developed and now includes an outline of messages that will be covered by each section. This is included in Appendix A for comment from Board members. Following the Board meeting, Board members will be contacted by Opening Doors and Venues on their slot and can work with the appropriate Executive Team member to develop presentations.

11.2.8 Key messages, case studies and stories from panellists that they would like to cover need to be supplied to Opening Doors and Venues by Monday 19 October. These will be provided to the host, Mary Rhodes, so that they can be incorporated into discussion and where appropriate - the digital artist will be briefed (for the 3 sections as outlined above).

11.2.9 For those presenting, PowerPoint format will be required by Thursday 5 November (a branded #WLEP Conference slide will be provided). Any videos will need to be submitted separately rather than embedded.

11.2.10 Board members are also asked to register via the website to ensure that their individual requirements are met for the conference, for example, around attendance at any seminars and the lunch as well as any dietary requirements.

11.3 Partners and Engagement 11.3.1 All available channels, as well as those from partner organisations, will continue to be

utilised to provide the invitation directly to Worcestershire’s businesses.

11.3.2 The WLEP Board are asked to engage with their networks and supply chains to increase attendance from businesses of all sizes across the County including producing businesses, as well as highlight any opportunities to exhibit/sponsor the event.

11.3.3 A site visit is taking place at the Chateau Impney (24 September) and on-going engagement with the venue is taking place through Opening Doors and Venues.

11.3.4 Following the Board meeting, Opening Doors and Venues will continue to engage with speakers regarding their part of the agenda.

Kirsten DallyPR and Communications Executive

AppendixWLEP15 Annual Conference

8:00 – 8:30 Registration

8:30 – 8:35 Welcome to #WLEP15

Mary Rhodes – housekeeping and introduction

8:35 – 8:40 Introduction by Mark Stansfeld

Welcome Agenda Reflection on experience since becoming Chair of WLEP Reflection on work done and still to do (which Gary Woodman will pick up later).

8:40 – 9:00 What makes Worcestershire World Class for Business?

Chris Walkett:

Last conference launched World Class Worcestershire (WCW) as a brand Since the last Conference, worked to raise profile of County as place to invest: MIPIM UK,

London investment event at Thistle Marble Arch, Birmingham investment event with Business Desk and then Cricket Club in April with Mervyn King’s keynote speech as well as MIPIM UK this year (October)

WCW now being seen as an aspirational brand internationally – Italy, China delegation, Foreign and Direct Investment received

Call to action: Businesses can start using the WCW branding – examples and how businesses can benefit

Now being seen as a brand for a place.

Clare Marchant:

What makes Worcestershire World Class as a place? Show: Cricket club video: which profiles Worcester landmarks and the #WorldClassWorcs Highlight elements of what makes Worcestershire a world class place to live and visit and

do business Call to action: our businesses have a part to play in raising the profile – your achievements

prove that this is the place to do business Show: WCW video – being developed.

Section to conclude with Q and A for Chris Walklett and Clare Marchant pre-prepared via Sli.do.

9:00 - 9:15 Growth Deal Q and A/Panel discussion

Nick Baldwin

7-8 minutes presentation for Growth Deal Update on delivery re: Growth Deal programmes Visuals included of projects.

Mary Rhodes to invite Gary Woodman and Mark Stansfeld to join Nick Baldwin for Q and A - all seated for an ‘interview’ type panel with Mary Rhodes facilitating.

9:15 – 9:35 Drawing Success from the EU: Skills & Social Inclusion

Slot to include brief introduction from Chris Hallam and then all seated for Q and A with Mary Rhodes facilitating: Chris Hallam, Keith Mowbray and Roger Allonby with questions pre-prepared using Sli.do. Digital artist will illustrate the points made.

Chris Hallam

Chris will cover 1) What EU funding is 2) How to get it and 3) What some businesses are doing/how they have benefitted as well as the number of SMEs that have expanded and jobs created since the last EU period

Chris will introduce 1-2 slides which include some visual examples of business projects to make the EU programme real from SME perspective, include how much money is available and then a slide which outlines where further support is available

The picture slides will include horticulture businesses, Innovation/Proof of Concept, Resource Efficiency and Enterprise Worcestershire examples from the end of the last EU Period.

Keith Mowbray

Examples of how driving up innovation in the County, for example, through the Proof of Concept Fund (including some case studies) and Worcestershire Innovation Wednesday

Mention the seminar delivered by the Business Growth Service on ‘Innovation – a strategic necessity’ which is taking place at 1:45pm.

Roger Allonby

Providing further details on the rural projects outlined.

9:35 – 10:05 Reviewing a Successful Year, Previewing a Bright Future

Gary Woodman

Reflecting on the year and looking forward to the coming year The presentation will mirror the Annual Report which will be distributed Digital artist will illustrate the points made.

Q and A: Ask What Worcestershire LEP can do for you: Mary Rhodes to invite Mark Stansfeld, Cllr Simon Geraghty, Linda Robinson and Margaret

Sherrey to join Gary Woodman on stage. All seated for an ‘interview’ type panel with Mary Rhodes.

10:05 – 10:45 Refreshments, Exhibitions and Networking

10:45 – 11:00 Surprise energiser

11:00 – 11:20 Delivering Skills for Worcestershire’s future

Mary Rhodes to welcome all to stage: Carl Arntzen, Prof. David Green, Stuart Laverick, Angela Joyce and Helena Baxter.

All seated for an ‘interview’ type panel with Mary facilitating. Mary will address Carl Arntzen first and session will focus on delivery in the County:

Show: Film from Apprenticeship Awards Apprenticeship Awards 2015

Apprenticeship Clearing House Most up to date Apprenticeship statistics Workforce Skills Development – 1000 companies University Technical College bid STEM – increasing the number of young people with these skills Encourage gender mix in different sectors e.g. cyber Launch of the careers app/website Employer event being held in each district Skills Show Show: Film on the skills show Mention the seminar ‘Building Talent for Growth’ at 1:45pm delivered by Hewett

Recruitment Call to action: Sign up on Connecting Schools and Business website and provide work

experience/speakers for schools Call to action: Sign up on Apprenticeship website and potentially be recognised at next

year’s awards.

11:20 – 11:50 Keynote: Rt Hon Sajid Javid MP

11:50 – 12:55 Keynote: Irene Graham, Scale Up Institute - Inspiring Aspiring Businesses

Slot to conclude with a short Q and A facilitated by Mary Rhodes.

12:25 – 12:35 Growth Hub – Realising Business Potential

Cassie Bray

Respond to Irene Graham in terms of the support businesses can access locally via Worcestershire.Business.Central.

Digital artist will illustrate the points made.

12:35 – 12:40 Our vision for Worcestershire

Mark Stansfeld

Conclusions and close.

12:40 – 13:00 Exhibition, networking and refreshments

13:00 – 13:45 Pre-booked lunch

13:45 – 14:45 Post Conference Seminars (booking required):

Building Talent for Growth – Delivered by Hewett Recruitment Innovation: a Strategic Necessity – Delivered by Business Growth Service.

12.0 EU STRUCTURAL INVESTMENT FUND STRATEGY REFRESH

WLEP BOARD RECOMMENDATIONThe WLEP Board is recommended to note:

a) UK Government request for refresh of the Worcestershire EU Structural Investment Fund (ESIF) Strategy

b) an update of Worcestershire LEP Area ESIF Sub Committee activityc) the appointment of AMION to support the WLEP Board and Executive in work

supporting the ESIF Strategy and Strategic Economic Plan delivery

12.1 ESIF Structural Investment Fund (ESIF) Refresh

12.1.1 As the European Structural Investment Fund (ESIF) Operational Programmes have now been substantially agreed with the European Commission, the UK Government has asked that all local ESIF Strategies be updated accordingly. While the local Strategies were approved recently in 2014, the documents are pivotal in securing effective local implementation as well as supporting the national ERDF, ESF and EAFRD Operational Programmes. The UK Government has set a deadline of 23 October 2015 and confirmed that each LEP area should conduct a “light touch refresh” and not embark on a fundamental revision of the existing ESIF Strategy.

12.1.2 The Worcestershire strategic framework of vision, ambition, objectives, principles, priority sectors and direction remains the core of the ESIF Strategy. The refresh is expected to review and “sense check” the original economic evidence, forecast and trends against the national economic recovery, especially during the intervening period since the ESIF Strategy was originally approved. The refresh is also expected to update activities and delivery which has occurred since the ESIF was originally approved as well as reflect subsequent decisions regarding Opt In/Out of national programmes. In essence, the ESIF Strategy will test the strategic model and will “future-proof” the Strategy before EU funding and tangible delivery starts in 2016. This work will simultaneously refresh the existing Strategic Economic Plan context in readiness for any similar potential request to refresh and/or preparing a competitive bid for Growth Deal 3 or any equivalent Government programme or initiative.

12.1.3 In tandem, the UK Government is committed to reassessing the sterling value of the notional LEP Area EU funding allocations on a twice annually basis. ESI Funds are allocated in Euros and given the current Euro/Sterling Exchange Rate, there is a need to understand the impact of fluctuations on money actually available in each area. Worcestershire is allocated €67.8m and the ESIF Strategy and underpinning tables and Programme/Project Calls have been working to the original sterling valuation of £58.1m. The August 2015 revaluation converts the notional Euro figure to £48.1m (based on an Exchange Rate of 0.71). Recent discussion between the National LEP Network and UK Government indicates that LEP Areas should continue to prioritise delivery of its original balanced ESIF Strategy and not be diverted by revaluations which will inevitably vary over time. The WLEP Board is recommended to be aware of the fluctuation in figures for future reference and note that the revaluation which will be reflected in the ESIF Strategy refresh.

12.1.4 Worcestershire’s top priority focus is to nurture and develop robust projects and proposals and establish solid delivery pipelines. Adjustments can be made continually throughout the ESIF 2014 – 2020 period in line with allocation valuations at any given time. Over-programming of projects remains the ambition in order to demonstrate that Worcestershire can deliver strong growth solutions successfully as well as develop reserve schemes ready to secure any additional EU funding arising from underspend in other LEP areas.

12.2 Worcestershire LEP Area ESIF Sub Committee Update

12.2.1 The WLEP Board received a presentation in July 2015 summarising the outcomes of outline applications received under the first WLEP Area Calls (March 2015). In brief, the schemes which gained support from the WLEP Area ESIF Sub Committee and which will be subject to further development towards the submission of full applications are as follows:

three local business expansion schemes (Tomatoes; Mushrooms; PakChoi/Baby Leaf salads) under EAFRD (Horticulture) Call (£300k)

Worcestershire Proof of Concept Programme delivery (ERDF PA1 Innovation Call £1.3m)

three bids delivering SME Growth Programmes (ERDF PA3 SME Competiveness £1.75m)

two bids to deliver SME Resource Efficiency Programmes (ERDF PA4 Low Carbon £1.3m)

12.2.2 DCLG (ERDF Managing Authority) and Defra (EAFRD Managing Authority) have provided feedback to all applicants and are currently supporting development work with those selected to proceed to full/detailed application stage.

12.2.3 One application has been registered so far against the Open Call for Technical Assistance,which has an October deadline. While other potential bids are awaited, the Sub Committee agreed to support the application in principle on the basis that it is the first proposal received ahead of the deadline. Although the first application represents a good start, it needs fundamental development work to establish a better holistic collaborative model and approach for Worcestershire. The Sub Committee has recommended to the Managing Authorities (DCLG and DWP) that the applicant should discuss a detailed proposal with other key partners to produce a more rounded solution. Examples given were to involve academia, WLEP, third sector and environment sustainability sectors.

12.2.4 In August 2015, two Big Lottery Fund Calls (£2.1m) for social economic inclusion proposals closed and the application assessment process is underway with a decision expected in late autumn.

12.2.5 There are two current EAFRD Calls which are being promoted extensively which target business expansion schemes in rural areas which fall in either a Business Development - Tourism or Business Development – Non Tourism category. Schemes are being actively sought in the WLEP’s top priority sectors (Agri-Food/Agri-Tech; Advanced Manufacturing/Engineering; Cyber Security) and Tourism although robust business expansion schemes in other sectors would also be welcome.

12.2.6 Further Calls are expected to be launched for the WLEP area during Autumn 2015, namely ERDF PA6 Protecting the Environment (£0.5m); EAFRD Forestry (£200k); ERDF PA3 Growth Investment/Green Tech/Growing Cyber and WM “Fund of Funds” (£8.25m); ERDF PA4 Green Tech/Resource Efficiency (£2.2m); and final Big Lottery Fund Social Economic Inclusion (£1.1m).

12.3 WLEP Commission

12.3.1 The WLEP has conducted a competitive procurement process to seek support for the next phase of WLEP development and delivery and AMION is confirmed as the successful tender. AMION has been commissioned under a call-off contract arrangement to provide augmented support, capacity and specialist expertise to the WLEP Board and Executive in delivering the WLEP’s Strategic Economic Plan (SEP) and ESIF Strategy in response to Government requirements. Through collaborative work with strategic and operational leads across the WLEP and key partner organisations, AMION has been asked to:

act as a critical friend to review and critically evaluate work undertaken to date; undertake a 'gap analysis' of existing datasets and analysis; review and refresh

existing datasets and evidence, incorporating the Cambridge Forecasting Model, to support further development of the Strategic Economic Plan (SEP), WLEP Business Plan and Delivery Frameworks; ESIF Strategy and Delivery Plans (ERDF, ESF and EAFRD Programmes, Calls, Projects)

produce a refreshed WLEP ESIF Strategy, in accordance with recent Government Guidance, which will provide the definitive reference point for all Worcestershire LEP Area ESIF Sub-Committee responsibilities, recommendations and decisions

convert strategic commitments into detailed pipelines of programmes and projects for future Growth Deal, ESIF and other national programme/project bids; identify possible sources of match funding to support the programmes’ pipeline development including co-design with partners

support WLEP in negotiations with central government around future funding rounds associated with SEP and ESIF Strategy i.e. Growth Deal negotiations with Government for Worcestershire, Technical Assistance, independent Enterprise Zone evaluation etc.

12.4 Partners and Engagement

12.4.1 The WLEP has conducted comprehensive consultations and engaged partners representing public, private and third sectors across Worcestershire throughout its SEP and ESIF process. The WLEP has been able to draw representation from the segmented interests required under Government Guidance and continues its commitment to stakeholder involvement. A wide range of partners and interested parties are now converting their involvement into a delivery focus, nurturing and developing projects which will implement Growth Deal, ESIF (ERDF and ESF), EAFRD and other Government programmes.

Claire BridgesStrategy and Partnership Executive

13.0 MIDLANDS ENGINE

WLEP BOARD RECOMMENDATIONThe Board is asked to note the progress of the Midlands Engine

13.1 Context

Developing the Midlands Engine

13.1.1 This paper provides a brief introduction to the Midlands Engine concept and proposes the immediate next steps leading up to the development of a prospectus for the Midlands region.

13.1.2 The prospectus will outline the manner in which the East and West Midlands local authorities and LEPs will cooperate to stimulate greater economic growth in the region.

13.1.3 The aim is to launch this prospectus at a Midlands Engine summit in Birmingham, led by Sajid Javid MP, Secretary of State for BIS. This summit is currently targeted for the end of this calendar year.

13.2 Midlands Engine Proposal

13.2.1 The Midlands Engine is an emerging concept that was partly triggered by the Government’s pre-election announcements linked to a Midlands Economic Plan. This plan sets out six aims that are listed in Appendix 1. It covered: raising the long-term growth rate; creating 300,000 extra jobs; putting skills at the heart of the economic revival; delivering £5.2 billion of investment into new transport infrastructure; backing science and innovation in the Midlands; and improving the quality of life through regeneration and investment.

13.2.2 More recently, in a speech in Derby in June 2015, the Chancellor set out his vision for how the new Government would work with the people of the Midlands. His key messages regarding “how do we build this Midlands Engine” are contained in Appendix 2 and covered the need: for an economy that works; to build on our strengths (highlighting business, science, enterprise zones and transport links); for people of the Midlands to have the right skills for these jobs; and for people to keep more of the money that they earn.

13.2.3 The Chancellor went on to say that he wanted there “to be a plan that hands power back to the people of the Midlands” and that he wanted “to see over the course of this parliament, over the next five years, a radical shift of power away from Whitehall and back into the hands of local people” on the back of “a new City Devolution Bill”. “Local leaders, local communities” were requested “to decide what they are interested in taking part in, and how far they want to go in this new revolution in city government.” This clearly links the Midlands Engine concept to the work that is being undertaken around Combined Authorities and Devolution Deals in the Midlands and the new powers these may bring.

13.2.4 The East and West Midlands LEP Chairs met with BIS and CLG ministers, Anna Soubry and Marcus Jones, at their request on 24 June 2015. The aim was to review the Midlands Engine vision and to discuss developing a joint positioning on it. The desire of LEPs across the Midlands to work together to deliver the Midlands Engine was stressed.

13.2.5 The LEP Chairs evidenced work that was already going on related to transport (through Midlands Connect), the potential to join inward investment and export offers through possible trade missions and support to business (based on a possible Midlands-wide access to finance programme). These areas were not seen by LEPs as being out of line with the Northern Powerhouse concept.

13.2.6 Subsequently, Sajid Javid as Secretary of State for BIS, has added his support to the Midlands Engine. In a recent Birmingham Post article, he vowed to champion it. This will provide helpful balance to the Chancellor’s support to the Northern Powerhouse.

13.2.7 As a follow up to this, the Secretary of State has asked for a summit to take place in Birmingham to “launch” the Midlands Engine based around a set of proposals and principles. The concept of a prospectus for the Midlands Engine has emerged from this.

13.2.8 Recently, the LA Leaders of Birmingham and Nottingham have written to Sajid Javid under the Midlands Connect “banner” to request a discussion as to how this may play more into the Midlands Engine delivery.

13.3 What is the Midlands Engine?

13.3.1 There is clearly a need to define the Midlands Engine and how LEPs and Local Authorities, perhaps under the guise of Combined Authorities or County Deals, play into this at the present; following the approach of the recently announced Northern Powerhouse. The Northern Powerhouse appears to be built around the economic elements that their Combined Authorities and LEPs can cooperate on. It primarily embraces transport (and associated regeneration investment) as well as science and research exploitation.

13.3.2 It will be important to agree the relative spatial levels for economic development as part of developing the positioning of the Midlands Engine. Key points to consider are:

13.3.4 At the present time, the core building blocks of economic development are the LEPs, driven by the jointly (public and private sector) agreed SEPs and investment plans/deals that have emanated from them.

13.3.5 Where Combined Authority/County Deal proposals are emerging, these are likely to cover many aspects of the economic development agenda supported by Local Strategic Economic Plans.

13.3.6 It is likely that work at this level will be theme based and only cover the areas that are agreed to be jointly worked on. In this case, it is very unlikely that there will be any appetite or need for a Midlands Engine SEP, albeit there may be specific economic statements for the areas chosen that build up into its narrative which could emerge in the prospectus.

13.3.7 The development of a Midlands Engine brand and the activities it overarches can be of use both defensively and assertively by partners. Defensively, in that it can act as a counterpoint to the London & South East and Northern Powerhouse agendas. Assertively, in that it recognises the increasing importance of collaboration across the wider Midlands.

13.4 Developing the Midlands Engine Prospectus

13.4.1 The primary aim of this next phase of work on the Midlands Engine is to:

13.4.2 Develop the contents of a Midlands Engine prospectus. This is likely to include: the rationale for the concept; some economic analysis to underpin its development; linkages to the Midlands Economic Plan announced pre-election; the initial areas of collaboration; the wider linkages to CA, LEP and LA contribution; the outcomes anticipated; and the manner in which this will be communicated and reported on.

13.4.3 Deliver a Midlands Engine summit in Birmingham to “launch” the prospectus and the wider concept. This is likely to be towards the end of this calendar year.

13.4.5 In order to meet the timescale for the summit, we will need to start this work in full from

the beginning of September. The work must be completed in time for the autumn statement/CSR if we want anything included within it related to the Midlands Engine.

13.4.6 The initial thought is that we focus our work on the starting point of Transport (Midlands Connect), Profiling (Inward Investment and Export, plus Tourism and Marketing), Innovation (linked to the work of the M6 and wider Midlands universities), Access to Finance (linked to the proposed ESIF-based Jeremie proposal for a fund of funds) and Skills (as this has been previously raised by senior Government ministers as an opportunity for the Midlands).

13.4.7 External support would be required to support the development of the prospectus. The external work could cover: the provision of economic intelligence; facilitation/coordination of the project; authorship of the prospectus; and organisation and hosting of the summit, with associated marketing and communications.

13.4.8 Whilst some of this work may be procured on a pro-bono basis, at the last LEP Board we agreed to allocate £20k as Worcestershire’s contribution to undertake this work. Subject to DfT agreement, national funding to support this will also be made available through the recently announced £5m of support for Midlands Connect. We may look for sponsorship from the private sector to mitigate cost, most likely around the production costs of the prospectus and the hosting of the summit.

13.5 Delivery

13.5.1 The Midlands Engine concept has been promoted recently by Government and been given greater profile with the recent support from Sajid Javid. In response, a summit led by Sajid Javid is proposed whereby a Midlands Engine prospectus will be launched.

13.5.2 This paper provides a briefing on the proposals to facilitate the summit and prospectus. Stakeholder support is now requested. This can include further suggestions as to how to evolve these proposals as well as providing volunteers to undertake the work described.

Appendix 1 - Midlands Economic Plan

This plan set out six aims, to:

• Raise the long-term growth rate of the Midlands to at least the forecast long-term growth rate of the whole UK; adding an extra £34 billion to the Midlands economy in real terms by 2030, equivalent to over £3,000 per person;

• Create 300,000 extra jobs in the Midlands by backing the core strengths of the local economy like advanced manufacturing and engineering;

• Put skills at the heart of the economic revival of the Midlands; working with local businesses and the LEPs on a radical new matching service for local working people and increasing skilled apprenticeships.

• Deliver £5.2 billion of investment into new transport infrastructure in the Midlands; upgrading the motorways to four lanes, delivering faster north-south rail connections and east-west links, and making the most of the economic opportunities of HS2;

• Back science and innovation in the Midlands; focusing on the plan for local universities to develop an Energy Research Accelerator and supporting new technology in the world-leading automotive sector; and

• Improve the quality of life in the Midlands by regenerating run-down estates, investing in the county towns, supporting the construction of 30,000 new homes and making improvements to local education so 150,000 more pupils attend outstanding schools.

Appendix 2 - Building the Midlands Engine

The Chancellor’s speech in Derby, in June 2015, set out his vision for how the new Government would work with the people of the Midlands. His key messages regarding “how do we build this Midlands Engine” covered:

• We need an economy that works. Without that, nothing else is possible;

• We need to build on our strengths:

- We can only get people into work if you back the businesses that are creating jobs (he highlighted the engineering strengths of firms like JCB, Bombardier, Toyota, Rolls-Royce and Jaguar Land Rover as well as the thousands of small and medium-sized businesses that are part of their manufacturing and engineering supply chains);

- We have some of the world’s best science happening in the Midlands (he cited the new Energy Research Accelerator and the new Energy Catapult Centre as part of this);

- Government wants to go further and faster this parliament to create more Enterprise Zones in the Midlands;

Good transport links are essential if we want firms to flourish and to expand (he invited bids for new projects into the Local Growth Fund to start things moving right at the start of this parliament; New Street station and HS2 were both cited);

• Jobs are only going to come and businesses will only invest if the people of the Midlands have the right skills for these jobs, and that starts by giving young people a top quality education (the GBSLEP Job Coaches programme with DWP was referenced); and People should keep more of the money that they earn.

14.0 LEP BUDGET UPDATE

WLEP BOARD RECOMMENDATION:a) Note the position of spend on the LEP Budget to August 2015 within the

financial year 2015/16.b) Agree that £1m of the unallocated balance of the Growing Places Fund is used

to contribute towards project pipeline development.

14.1 Context

14.1.1 The LEP, with the support of the accountable body, Worcestershire County Council, meet bi-monthly as part of budget monitoring process.

14.1.2 The Finance Audit and Risk Committee meet three times a year to review the end of year accounts, the half year expenditure and approve the budget for the year ahead.

14.2 Review

14.2.1 Budget overview to the 31.08.15 as follows:

• Net budget (or expected end of year outcome) £0.

• 42% of the year has passed (5 months), 58% left to go;

• £187k (31%) of the core funding expenditure budget is unspent/uncommitted at this stage but all staff costs have been committed;

• £49k (14%) of the growth plan expenditure budget is unspent/uncommitted at this stage but all staff costs have been committed;

• £105k (42%) of the growth hub expenditure budget is unspent/uncommitted but again staff costs have been fully committed;

14.2.2 Core Funding, Transport and Growth Plan Expenditure budgets have the ability to carry forward under spends into the following financial year. The FAR Committee have agreed that this figure should be £50,000 or under and therefore the LEP Executive are working to achieve a lower carry forward than previous years through project development and delivery.

14.3 Growth Hub Expenditure Budget

14.3.1 This is monitored through the Growth Deal programme and current spend levels reflect the allocation of a ‘red’ in the balance score card and risk register related to the delivery of the Growth Hub. This budget has to be spent in this financial year.

14.4 Growing Places Fund

14.4.1 Worcestershire Local Enterprise Partnership (WLEP) has been allocated £5.5m through central Government's Growing Places Fund (GPF) back in 2012. The funding is intended to boost economic activity by unlocking developments that create homes and jobs and is designed to operate as a revolving loan fund.

14.4.2 The WLEP Board in May 2012 agreed that eligible activities of the Growing Places Fund projects are:

• Supporting WLEP priorities

• Be located (fully or partly) in Worcestershire

• Begin within 12 months of funding being allocated

• Deliver change and growth to Worcestershire within a short timescale

• Safeguard and create jobs in Worcestershire (direct and indirect)

• Be economically viable

• Be completed in a timescale to ensure loan repayment within 5 years Income

14.4.3 Following two rounds of calls for projects the WLEP have committed approximately £4m of the total fund through a loan financing agreements with four projects. These were as follows:

HooBrook Link Road – Phase 1 - £909,500

Johnson Vellen Training - £91, 815

Worcestershire Cricket Club - £1,212,500

Redditch Eastern Gateway - £1,800,000 (Committed, but not yet drawn down)

14.4.4 This means a figure of just under £1.5m remains uncommitted within the Growing Places Fund. When WLEP launched rounds of open calls for projects the private sector approved schemes used our approval to negotiate an improved financial deal with their existing lender. This means that any possible Growing Places projects are probably linked to public sector schemes or unlocking affordable housing sites to fill a viability gap.

14.4.5 The WLEP executive has therefore not opened further rounds of allocating funding until potential opportunities can be identified. There has been a recognition that the Growing Places Fund remit can change and flex to achieve the needs and requirements of the WLEP Board and delivery of the Strategic Economic Plan.

14.4.6 The executive have also looked at options for the remaining funds.

a) Breaking the funding into small business grant to support activity. This was dismissed as it did not preserve the principle of a revolving loan fund.

b) A business loan fund – there is already an existing Worcestershire loan fund in

operation with ERDF support.

c) A pipeline development fund which is linked to a repayment through section 106 or similar principle. This becomes increasing complex and the likelihood of a repayment in the short term through a planning condition would be difficult to secure.

14.4.7 As WLEP moves into the next phase of pipeline development a number of partners have expressed the difficulty in securing this type of funding to produce a full business case and bring the project towards a ‘shovel ready’ state. The business case revenue costs can be capitalised at the point of delivery, therefore the only major risk of allocating a proportion of the unallocated to potential Local Growth Fund projects is that they are unsuccessful in attracting the funding for delivery. However this becomes a ‘bit chicken and egg’ if partners do not have the funds to undertaken this initial business case work, as the project pipeline will reduce.

14.4.8 It is therefore recommended that the Board make £1m available to develop business cases in line with pipeline priorities for the Local Growth Fund, these potential asks for business case development funding are considered by the Quad for investment.


LEP DASHBOARD 31st August 2015

Original Budget

Current Budget

Exp and Commitments

at 31.8.15 Projection to year end

Variance Under/(over)

spend Reason:£ £ £ £ £

Overall:Core Funding:

Income 563,600 594,543 589,793 4,750Expenditure 563,600 594,543 407,234 187,309 See below for key variancesNet 0 0 182,559 0 (182,559)

Transport:Income 70,000 75,245 75,245 0Expenditure 70,000 75,245 15,191 60,054Net 0 0 60,054 0 (60,054)

Growth Plan:Income 350,000 360,790 360,790 0Expenditure 350,000 360,790 311,688 49,102 See below for key variancesNet 0 0 49,102 0 (49,102)

Growth Hub:Income 250,000 250,000 115,000 135,000 Income is claimed quarterly

Expenditure 250,000 250,000 144,875 105,125

A lot of the non salary Expenditure still to be made/committed

Net 0 0 (29,875) 0 29,875

SEP Growth Plan:

Income 0 13,400,000 13,400,000 0

To be forwarded to WCC once Capital projects approved by WLEP

Expenditure 0 13,400,000 0 13,400,000Net 0 0 13,400,000 0 (13,400,000)

Apprenticeship Awards net 0 0 19,625 (19,625) Invoices raised for 2015 event

Total 0 0 13,681,466 0 (13,681,466)

Key Expenditure Variances:

Core Funding Expenditure:Staff Salaries and HWCC 260,000 260,000 260,000 0 Committed for the yearRents 16,700 16,700 14,908 1,792 UnderspendConsultant Fees 20,000 50,008 45,358 4,650 UnderspendProject Activity 75,900 76,835 15,000 61,835 UnderspendConference 35,000 35,000 26,370 8,630 UnderspendExhibition and Events 20,000 20,000 14,586 5,414 UnderspendPromotion Expenses 80,000 80,000 18,843 61,157 UnderspendMisc Other Expenses 30,000 30,000 6,089 23,911 Underspend

Transport:Exhibitions and Events 60,000 65,245 13,300 51,945 UnderspendOther Fees 10,000 10,000 1,891 8,109 Underspend

Growth Plan Expenditure:Staff Salaries and HWCC 130,000 130,000 130,000 0 Committed for the yearConsultant Fees 100,000 100,000 65,188 34,812 UnderspendOther Fees 120,000 130,790 116,500 14,290 Underspend

Growth Hub ExpenditureStaff and HWCC 0 140,000 140,000 0 UnderspendOther Fees 250,000 60,000 4,875 55,125 UnderspendExps Marketing 0 40,000 0 40,000 Underspend

£153,849

£15,191

£165,481

£33,845

£253,385

£0

£146,207

£111,030

£187,309

£60,054

£49,102

£105,125

£-

£100,000

£200,000

£300,000

£400,000

£500,000

£600,000

£700,000

Core Funding Transport Growth Plan Growth Hub

WLEP - Expenditure = Core Funding, Transport, Growth Plan and Growth Hub

as at 31st August 2015

Expenditure Commitments Budget Remaining

Unallocated, £1,492,892

Committed -Redditch Eastern

Gateway, £1,800,000

Cricket Club, £1,212,500

Johnson Vellen, £91,815

Hoo Brook, £909,500

Growing Places - £5,518,972 Received

£153,849

£15,191

£165,481

£33,845

£253,385

£0

£146,207

£111,030

£187,309

£60,054

£49,102

£105,125

£-

£100,000

£200,000

£300,000

£400,000

£500,000

£600,000

£700,000

Core Funding Transport Growth Plan Growth Hub

WLEP - Expenditure = Core Funding, Transport, Growth Plan and Growth Hub

as at 31st August 2015

Expenditure Commitments Budget Remaining

Unallocated, £1,492,892

Committed -Redditch Eastern

Gateway, £1,800,000

Cricket Club, £1,212,500

Johnson Vellen, £91,815

Hoo Brook, £909,500

Growing Places - £5,518,972 Received

· Web view2015/09/24 · Minutes of WLEP Board Meeting on 23 July 2015 (5 mins) 3. Matters...

Documents

Transcript of · Web view2015/09/24 · Minutes of WLEP Board Meeting on 23 July 2015 (5 mins) 3. Matters...