Agenda item

To receive a report by the Director of Economy & Growth about local economic growth and strategy.

WITNESSES

• Matt Furniss, Cabinet Member for Highways, Transport and Economic Growth
• Simon Crowther, Executive Director for Environment, Property and Growth
• Patricia Huertas Cedeira, Assistant Director for Economy and Growth

KEY LINES OF DISCUSSION

1. A Member asked about the implications of Coast to Capital's decision to continue as a private company, and whether it had become a private competitor to the Council's support for businesses. The Cabinet Member for Highways, Transport and Economic Growth explained that Coast to Capital's continuation as a private company had slowed the transfer of assets to Surrey County Council, West Sussex County Council, and Brighton & Hove City Council. He did not view it as a competitor because its focus had historically been on the Brighton and Hove area, with limited business support provided to Surrey. Surrey had seen more success and funding from the EM3 LEP. The Cabinet Member explained how since establishing Business Surrey, Surrey County Council has now the government funding and mandate to provide the Growth Hub business advice service to Surrey businesses. The Assistant Director for Economy and Growth added that the funding expected from Coast to Capital was not expected to be substantial, but the final amounts were still to be determined.
2. A Member asked about the division of liabilities and assets during the transition, whether the private organisation would retain or dispose of its assets, and how liabilities from its previously government-funded role would be managed. The Cabinet Member for Highways, Transport and Economic Growth explained that liabilities and assets were being clarified by Brighton & Hove City Council as the accountable body, with investments from EM3 being converted into cash for local reinvestment, while Coast to Capital’s transition was slower due to plans to go private.
3. A Member asked if Surrey County Council could take any additional steps to improve its internal audit rating above reasonable assurance. The Cabinet Member for Highways, Transport and Economic Growth said that Surrey County Council had robust oversight with key individuals involved in decisions, and the last audit had raised no concerns about its governance. The reasonable assurance rating applied to Brighton & Hove City Council as the accountable body for Coast Capital, with the focus then on resolving Coast Capital’s assets and liabilities.
4. A Member asked whether the uptake of 280 businesses for the Surrey Growth Hub had been beyond or below expectations and requested feedback from those businesses on the tailored advice they had received. the Cabinet Member for Highways, Transport and Economic Growth said that feedback had been positive, with businesses describing the service as invaluable and helpful for direction. Current uptake of the service is in line with targets set out for the Growth Hub service, which focuses on a proportion of all 110,000 businesses in Surrey. The steady uptake and recommendations from participants indicated a strong start with growth potential.
5. A Member asked how Surrey had supported its green economy and net-zero targets while also supporting high-growth businesses in Surrey. The Cabinet Member for Highways, Transport and Economic Growth said that Surrey had supported its green economy and net-zero targets by helping high-growth SMEs transition to sustainable practices through dedicated support, advice, networking, and funding opportunities. He explained how the Growth Hub service and the Greener Futures team work together on business support provision and share specialist advisors.
6. A Member asked about the position and plans for the service after government funding ended in April 2025. The Cabinet Member for Highways, Transport and Economic Growth said that the government funding would continue beyond April 2025, though they were awaiting details on the exact amount.
7. A Member asked how the three priorities for economic growth had been developed and how Surrey County Council had directly benefited financially from supporting economic growth in Surrey, rather than the money going to central government. The Cabinet Member for Highways, Transport and Economic Growth said that the priorities had been developed in consultation with stakeholders, the relevant governance groups including the One Surrey Growth Board, and considering independent economic evidence reviews, focusing on innovation, sustainable growth, and a greener economy. While the Council might not have directly seen financial returns, the goal had been to ensure the local economy thrived, with housing and skills being key needs for businesses.
8. A Member asked if changes or cuts to Level 7 apprenticeship funding by the government had been communicated to businesses and whether this could impact skills in Surrey in the future. The Cabinet Member for Highways, Transport and Economic Growth said that the concern was not about Level 7 apprenticeships, which were mostly handled by universities, but rather about apprenticeships at Levels 1 to 3.
9. A Member asked how the Council intended to measure the success of its initiatives aimed at influencing economic growth in the county. The Cabinet Member for Highways, Transport and Economic Growth said that the main metrics for success would be business survival rates, employment numbers, and Gross Value Added (GVA). The Assistant Director for Economy and Growth added that they also focus on high knowledge intensity industries, startup numbers, and the growth of entrepreneurial initiatives, especially those linked to universities, ensuring the work contributes to the overall economy ecosystem for increase productivity and GVA growth.
10. A Member asked what "transparent mechanism" meant in real terms for the Growth and Innovation Fund (GIF), and what "exceptional and strategically important projects" were, along with how they were identified. The Cabinet Member for Highways, Transport and Economic Growth said that the GIF would provide an annual report to the Select Committee on fund performance and updates on funded projects. Strategically important projects would be identified through a strategy refresh, with business leaders providing input on how funding could best support small and medium-sized businesses in Surrey. Legacy funding from the LEPs would be used exclusively for economic growth in Surrey and would support private industry.
11. A Member asked how much the strategic funding framework would cost and whether there was an external source of funding to cover some of the costs. The Cabinet Member for Highways, Transport and Economic Growth said that that the government had allocated a one-off amount for the transition of the operation and that external funding would likely only come from government funding going forward. The Assistant Director for Economy and Growth clarified that £240,000 had been allocated as the transition one-off funding from Government and that it has been used to ensure the transition of services from the LEPs and the refresh of the strategy and future Surrey Growth and Innovation Fund.