Issue - meetings

The Aylesbury Vale Enterprise Zone (AVEZ) had been established in 2016 under the government’s Enterprise Zone policy to attract and develop new business investment and promote growth in three key locations in the Aylesbury Vale area. It had begun as a partnership between 4 parties (Ministry of Housing, Communities and Local Government, Buckinghamshire Local Enterprise Partnership, Aylesbury Vale District Council and Buckinghamshire County Council).

A Year 5 evaluation of the EZ had been undertaken in early 2021 and a new Implementation Plan had been prepared for the period 2021-26. The first 5 years (2016-21) had focused on EZ set up and establishment of development within the zone. The next period would focus on accelerating site development and providing greater business, skills, and inward investment support.

AVEZ had been set up as an informal partnership under a Memorandum of Understanding (Appendix 1) that was signed in 2017 and lasted for 4 years. In December 2021 it had changed its name to Buckinghamshire Enterprise Zone following agreement with government.

A MOU was a statement of serious intent that was entered into voluntarily by the respective parties. It had moral force but did not create legal obligations, unless it was expressly stated that it was to be a legally binding document. Now expired, the original MoU held little weight and the EZ relied on the goodwill of the parties to continue working together, as they had done. The absence of a MoU could be problematic if there was an issue or disagreement between partners.

Given the passage of time and new local government and policy context since the original MoU it was important to refresh it with a new agreement to govern the EZ. Buckinghamshire Council officers had worked with EZ/LEP staff to review the MoU to identify the main provisions to be retained, updated, or removed in creating a new MoU.

RESOLVED –

That the recommendations that have been agreed by the Aylesbury Vale Enterprise Zone Board be SUPPORTED, to:

(i)                Refresh the Memorandum of Understanding to reflect changes in governance since the EZ’s inception.

(ii)               Change the split of surplus income generated by the EZ from 70:30 (Bucks LEP : Bucks Council) to 50:50 to reflect the Council’s 50% share of uplift on business rates.

(iii)            Not activate the EZ MoU provision for distribution of ‘Surplus’ income in the period up to March 2026 to enable the EZ to maximise use of funding to maintain momentum and accelerate development of the EZ sites and support other relevant initiatives for the recovery and growth of the Buckinghamshire economy.

The Aylesbury Vale Enterprise Zone (AVEZ) had been established in 2016 under the government’s Enterprise Zone policy to attract and develop new business investment and promote growth in three key locations in the Aylesbury Vale area. It had begun as a partnership between 4 parties (Ministry of Housing, Communities and Local Government, Buckinghamshire Local Enterprise Partnership, Aylesbury Vale District Council and Buckinghamshire County Council).

A Year 5 evaluation of the EZ had been undertaken in early 2021 and a new Implementation Plan had been prepared for the period 2021-26. The first 5 years (2016-21) had focused on EZ set up and establishment of development within the zone. The next period would focus on accelerating site development and providing greater business, skills, and inward investment support.

AVEZ had been set up as an informal partnership under a Memorandum of Understanding (Appendix 1) that was signed in 2017 and lasted for 4 years. In December 2021 it had changed its name to Buckinghamshire Enterprise Zone following agreement with government.

A MOU was a statement of serious intent that was entered into voluntarily by the respective parties. It had moral force but did not create legal obligations, unless it was expressly stated that it was to be a legally binding document. Now expired, the original MoU held little weight and the EZ relied on the goodwill of the parties to continue working together, as they had done. The absence of a MoU could be problematic if there was an issue or disagreement between partners.

Given the passage of time and new local government and policy context since the original MoU it was important to refresh it with a new agreement to govern the EZ. Buckinghamshire Council officers had worked with EZ/LEP staff to review the MoU to identify the main provisions to be retained, updated, or removed in creating a new MoU.

The Cabinet report at paragraphs 2.6 to 2.14 the financial provisions of the MOU including the basic principle that the Council should not be made financially worse off by loss of business rates receipts under the EZ arrangements than without the EZ designation.  This included information on business rates including from new developments, and ‘ringfencing’ , income retention and sharing ‘surplus’ income (proposing to change this from a 70:30 split in favour of the EZ to a 50:50 split with the Council), when surplus income would be drawn and the priority order for investment of retained business rates.  The MoU’s intent was that a ‘Surplus’ payment to BC or BLEP would arise only once EZ priority infrastructure interventions/commitments identified in the Implementation Plan, or other priority interventions approved by the EZ Board, had been funded.

The EZ Board supported the view that neither the LEP nor Council should take out a ‘Surplus’ payment at this time, enabling the EZ to continue investing in projects to maximise the potential to generate additional business rates, floorspace, jobs and GVA growth.  It was recommended that during the next 5-year EZ Implementation Plan period there  ...  view the full minutes text for item 11