Agenda item

RESOLVED:

1.         That Surrey County Council gives consent for Enterprise M3 to sign the Agreement for the M3 Enterprise Zone with Government on the basis of the principles, as set out at Annex 1of the submitted report.

2.         That Surrey County Council and Runnymede Borough Council establish an Memorandum of Understanding (MoU) on agreeing the local initiatives for the Longcross site that are to be funded from the portion of retained business rates allocated to local authorities.

3.         That Surrey County Council, along with each of the other local authorities involved, makes a one-off contribution of £20,000 to co-fund the Enterprise Zone Programme Director position and consultancy support. The contribution to be found from the Surrey Growth Fund.

Reasons for Decisions:

The M3 EZ is a major opportunity to support economic growth on one of the largest available sites for commercial development in Surrey and to secure additional investment in the area. Over 25 years the ambition is for the EZ to deliver over 200 new businesses and over 10,000 new jobs and to generate an additional £178 million in retained business rates. The specific ambition for the Longcross site is for 49 new businesses, 5600 new jobs and 118,000 sqm of new floor space with the development generating £8.5bn in additional GVA over the 24 year construction and operational period.

The Programme Director will provide the dedicated leadership needed given the complexity of developing a multi-site zone. The Government requires an Implementation Plan for the EZ which needs specialist input alongside the LEP and the local authorities and two consultancy firms with experience of other EZs have been brought on board to make sure that the approach maximises income and has a well targeted investment programme. Successful implementation of the EZ requires support from all the relevant Local Authorities and agreement between SCC and Runnymede about the infrastructure and other interventions that are needed to maximise development on the Longcross site will ensure that the package of measures is well targeted.

[The decision on this item may be called in by the Economic Prosperity, Environment and Highways Scrutiny Board]

The Deputy Leader informed Cabinet that Enterprise Zones (EZs) were a Government initiative to support business growth, create new jobs and attract private sector investment to specific areas. Within the designated EZ boundaries newly located or expanded businesses were able to benefit from financial incentives, including reduced business rates. Business rate growth accruing from these new businesses would be used for investment to support the EZ.

Enterprise M3 LEP, in partnership with Basingstoke Borough Council, Runnymede Borough Council and East Hampshire District Council, submitted a successful application to Government for a multi-site EZ covering: Basing View in Basingstoke, Longcross Park in Chertsey, and Whitehill and Bordon’s Louisburg Barracks.

The M3 EZ would start in April 2017 and last for 25 years. The Government required a 5 year Implementation Plan setting out an investment programme to accelerate growth in the area and enable a greater business rates uplift. There was also a Programme Steering Group overseeing the development of the EZ of which Surrey County Council was a voting member.

Referring to paragraph 12, relating to retaining local business rates, the Cabinet Member for Adult Social Care, Wellbeing and Independence, who was the local Member for the Longcross area, requested that he was consulted on any proposed support for local initiatives in that area.

RESOLVED:

1.         That Surrey County Council gives consent for Enterprise M3 to sign the Agreement for the M3 Enterprise Zone with Government on the basis of the principles, as set out at Annex 1of the submitted report.

2.         That Surrey County Council and Runnymede Borough Council establish an Memorandum of Understanding (MoU) on agreeing the local initiatives for the Longcross site that are to be funded from the portion of retained business rates allocated to local authorities.

3.         That Surrey County Council, along with each of the other local authorities involved, makes a one-off contribution of £20,000 to co-fund the Enterprise Zone Programme Director position and consultancy support. The contribution to be found from the Surrey Growth Fund.

Reasons for Decisions:

The M3 EZ is a major opportunity to support economic growth on one of the largest available sites for commercial development in Surrey and to secure additional investment in the area. Over 25 years the ambition is for the EZ to deliver over 200 new businesses and over 10,000 new jobs and to generate an additional £178 million in retained business rates. The specific ambition for the Longcross site is for 49 new businesses, 5600 new jobs and 118,000 sqm of new floor space with the development generating £8.5bn in additional GVA over the 24 year construction and operational period.

The Programme Director will provide the dedicated leadership needed given the complexity of developing a multi-site zone. The Government requires an Implementation Plan for the EZ which needs specialist input alongside the LEP and the local authorities and two consultancy firms with experience of other EZs have been brought on board to make sure that the approach maximises income and has a well targeted investment programme. Successful implementation of the EZ requires support from all the relevant Local Authorities and agreement between SCC and Runnymede about the infrastructure and other interventions that are needed to maximise development on the Longcross site will ensure that the package of measures is well targeted.