Agenda item

This cabinet report provides an update on the LEP transition arrangements since the last report to Cabinet on this matter in February 2024; it sets out the reframed priorities of the local economic growth strategy and outlines a proposal for the long-term strategic funding framework to oversee investments made through legacy LEP funding and any other funds that support local growth initiatives, such as UK Shared Prosperity Fund.

(The decisions on this item can be called-in by the Communities, Environment and Highways Select Committee)

RESOLVED:

1.    That Cabinet notes the progress made in establishing the Council as Surrey’s strategic economic leader including the taking on of LEP functions and assets from Government.

2.    That Cabinet notes the use of delegated officer powers to approve the signing of a Memorandum of Agreement with Hampshire County Council, which formally sets out how ongoing governance will be undertaken, and how assets and liabilities will be split between both local authorities.

3.    That Cabinet approves the vision and priorities in the refreshed economic growth strategy following the endorsement by the One Surrey Growth Board and the Surrey Business Leaders Forum. These interconnected updated priorities are reinforced by the evidence review that has been carried out.

4.    That Cabinet approves the creation of the Economic Growth Funding Framework and related funding rounds for 2025/26, through which investments will be made to realise initiatives that support the agreed priorities. This includes approximately £4 million towards capital initiatives, £2 million towards revenue initiatives and £1 million towards an SME business grant scheme.

5.    That Cabinet approves funding thresholds for the Interim Executive Director for Environment, Property & Growth in consultation with the Cabinet Member for Transport, Infrastructure, and Growth and the Section 151 Officer (up to £100,000), and the Cabinet Member for Transport, Infrastructure, and Growth (between £100,000-£500,000), with Cabinet responsible for approving any investments over £500,000.

Reasons for Decisions:

To bring the significant strategic decision of approving the refreshed county-wide economic growth strategy and strategic funding framework to Cabinet, which will help give direction to local economic initiatives and enable greater coordination of local institutions with an ability to deliver.

(The decisions on this item can be called-in by the Communities, Environment and Highways Select Committee)

The report was introduced by the Cabinet Member for Transport, Infrastructure and Growth who explained that in April 2024 the delivery of economic growth functions previously held by Local Enterprise Partnerships transferred to Surrey County Council. Since taking on the responsibilities from the Local Enterprise Partnerships in April, the Council had been delivering effectively for residents and local businesses in several ways, including ongoing contractual agreements with responsibilities for Growth Hub services to SMEs, Careers Hub service linking schools and employers, the Innovation work programme with the three Surrey universities, and the upcoming Made Smarter Adoption programme for the South East. Some of the key successes for 2024/25 were described. The Economic Growth Strategy had been refreshed to be more reflective of the current economic context and the enhanced leadership role the council had taken. The Cabinet Member gave more details around each of these priorities. The Council was becoming responsible for an increasing range of funding sources aimed at supporting local growth, this includes the LEP legacy funds and UK Shared Prosperity Fund (UKSPF) for transitional year 2025/26. It was proposed that by April 2026, the following funding pots would be launched: Capital funding (approximately £4 million) towards physical infrastructure and/or assets that act as a catalyst for the delivery of the three strategic priorities in the refreshed strategy, Revenue funding (approximately £2 million) towards innovative proposals from local partners, stakeholders, and businesses that are aligned to the economic growth strategy and funding framework and Grant Scheme for SME business growth (approximately £1 million) towards grants between £10k-£50k to cover 50% of project costs and used to fund costs that support growth through workforce development and job creation in local businesses.

The Leader queried if the Council’s plans were aligned with the Local Skills Improvement Plan that had been agreed through the Surrey Chamber of Commerce. The Cabinet Member stated that this was correct and a Skills Leadership Forum had been set up just to review the skills agenda. The Cabinet Member also announced that 25% of the Council’s apprenticeship levy was open to small and medium sized businesses across Surrey to help upskill staff.

RESOLVED:

1.    That Cabinet notes the progress made in establishing the Council as Surrey’s strategic economic leader including the taking on of LEP functions and assets from Government.

2.    That Cabinet notes the use of delegated officer powers to approve the signing of a Memorandum of Agreement with Hampshire County Council, which formally sets out how ongoing governance will be undertaken, and how assets and liabilities will be split between both local authorities.

3.    That Cabinet approves the vision and priorities in the refreshed economic growth strategy following the endorsement by the One Surrey Growth Board and the Surrey Business Leaders Forum. These interconnected updated priorities are reinforced by the evidence review that has been carried out.

4.    That Cabinet approves the creation of the Economic Growth Funding Framework and related funding rounds for 2025/26, through which investments will be made to realise initiatives that support the agreed priorities. This includes approximately £4 million towards capital initiatives, £2 million towards revenue initiatives and £1 million towards an SME business grant scheme.

5.    That Cabinet approves funding thresholds for the Interim Executive Director for Environment, Property & Growth in consultation with the Cabinet Member for Transport, Infrastructure, and Growth and the Section 151 Officer (up to £100,000), and the Cabinet Member for Transport, Infrastructure, and Growth (between £100,000-£500,000), with Cabinet responsible for approving any investments over £500,000.

Reasons for Decisions:

To bring the significant strategic decision of approving the refreshed county-wide economic growth strategy and strategic funding framework to Cabinet, which will help give direction to local economic initiatives and enable greater coordination of local institutions with an ability to deliver.

(The decisions on this item can be called-in by the Communities, Environment and Highways Select Committee)