Agenda item

RESOLVED: That the Cabinet:

a)    Would receive the transfer of all the Local Enterprise Partnership (LEP) rights, loans and liabilities including all reserves and funding as the accountable body for the six local authorities within South East Midlands economic area from 1 April 2024 as detailed in paragraph 4.2 and in recognition of Luton’s ongoing accountable body role as detailed in 4.5.

b)    Would receive future funding as accountable body, where it is deemed appropriate that services or functions should be managed by the accountable body.

c)    Accepted the transfer of staff and any liabilities, in accordance with TUPE, to include where applicable finance, communications and operational support.

d)    Noted the inherited financial position as set out in paragraph 6.1.1

e)    Agreed the governance structure and responsibilities for the transferred LEP functions, as described in paragraph 5.2.4 option 2, with Milton Keynes City Council, Luton Borough Council, North Northamptonshire Council, Bedford Borough Council and Central Bedfordshire Council

f)     Would enter into an agreement with the five authorities in relation to the delivery of the services on their behalf and for the use of the reserves to meet the liabilities and where the reserves are insufficient to meet the liabilities to be able to recover the liabilities from the relevant local authorities including any successor bodies as described in paragraph 5.11.

g)    Delegated authority to the Director of Communities & Opportunities in consultation with the Leader of the Council, to lead the integration process, including finalising the joint agreement with the other local authorities.

REASONS RESOLVED:

·         To satisfy the Government with respect to the transfer of LEP functions in accordance with guidance in August and December 2023, to integrate these functions into local democratic institutions across a functional economic geographical area

·         To deliver LEP functions across the South East Midlands functional economic area to ensure the wider benefits to the area associated with the delivery of strategic economic growth

·         To ensure that the transfer of functions is managed to ensure the Council has mitigated its exposure to financial liabilities and other risks arising from the transfer of LEP functions

ALTERNATIVE OPTIONS:

·         Option 1 - Utilise Government funding and any existing project funding only.

This is the lowest cost option but requires a reduction in the capacity and functions currently provided by SEMLEP and the Council providing corporate service support rather than the function having dedicated staff.  The WNC management fee would be slightly higher to reflect no dedicated enabling resource. This option has no call on LEP reserves although any contingency requirements for the Council would need to be identified from LEP reserves.

·         Option 2 - Utilising Government funding, any existing project funding and reserves to create a stronger year one position.

This is the mid-range option and would see the continuation of existing functions and capacity and bringing over the existing corporate “enabling service” support roles rather than using WNC services and some use of LEP reserves. It is recognised that use of reserves couldn’t be sustained in a long-term model, but this would be a year one position with a review before the end of year one, when government direction is clear and true costs of hosting it within a local authority are established.

·         Option 3 – Lift and shift the current LEP service – utilising government funding, existing project funding and reserves. This is the most expensive option and includes some functions and roles to drive the profile and investment of the body, dedicated corporate service roles and an increased use of reserves.

The Chair introduced the report and its main points, copies of which had been previously circulated.

Councillors made the following comments.

·         As WNC was currently in a transformation phase would this enterprise have any affect.

·         The importance of ensuring that young people were given the skills to meet the needs of the future was noted.

·         It was queried whether WNC would have to cover costs.

The Chief Executive advised that there would be no effect on the Council’s transformation work. Councillors were advised that there would be no additional costs other than shared costs and that the SEMLEP reserves would cover that.

The Executive Director Place & Economy confirmed that he would be happy to answer any questions from councillors.

RESOLVED: That the Cabinet:

a)    Would receive the transfer of all the Local Enterprise Partnership (LEP) rights, loans and liabilities including all reserves and funding as the accountable body for the six local authorities within South East Midlands economic area from 1 April 2024 as detailed in paragraph 4.2 and in recognition of Luton’s ongoing accountable body role as detailed in 4.5.

b)    Would receive future funding as accountable body, where it is deemed appropriate that services or functions should be managed by the accountable body.

c)    Accepted the transfer of staff and any liabilities, in accordance with TUPE, to include where applicable finance, communications and operational support.

d)    Noted the inherited financial position as set out in paragraph 6.1.1

e)    Agreed the governance structure and responsibilities for the transferred LEP functions, as described in paragraph 5.2.4 option 2, with Milton Keynes City Council, Luton Borough Council, North Northamptonshire Council, Bedford Borough Council and Central Bedfordshire Council

f)     Would enter into an agreement with the five authorities in relation to the delivery of the services on their behalf and for the use of the reserves to meet the liabilities and where the reserves are insufficient to meet the liabilities to be able to recover the liabilities from the relevant local authorities including any successor bodies as described in paragraph 5.11.

g)    Delegated authority to the Director of Communities & Opportunities in consultation with the Leader of the Council, to lead the integration process, including finalising the joint agreement with the other local authorities.