Agenda item

Cabinet received a report setting out the proposed arrangements for the transfer of the Bucks Local Enterprise Partnership (LEP) functions to Buckinghamshire Council, and was asked to agree the approach within Buckinghamshire, in light of the Government’s decision to transfer the economic growth and business representation functions of LEPs to local authorities.

Following a period of consultation earlier in 2023, the Government had confirmed in August its decision to end Local Enterprise Partnership (LEP) core funding from 2024/25 and transfer current LEP functions to local government in the interests of supporting local leadership, establishing more joined up delivery, greater efficiency and increased clarity for the business community.  Councils would receive transition funding in 2024/25 (also funding for the growth hub) to support them to take on these functions, with all future funding to be set out at the next Spending Review.

The Government expected seamless Growth Hub provision across the area, that would continue to support businesses and to provide a convening point for broader business support provision. The current level and duration of funding to be received by Councils was not known at present and it was unclear when the level of funding would be confirmed.  The Government expected that all decisions on the transfer and future management of assets would be taken by the LEP and its Accountable Body by March 2024. Further guidance was expected by January 2024. However, in general, local agreement was expected, with government departments becoming directly involved only with those areas that could not reach agreement. Following a series of discussions locally, the Cabinet report set out the key principles and proposals that have been developed to achieve the transfer in Buckinghamshire.

RESOLVED –

That the proposed arrangements for the delivery of the Local Enterprise Partnership functions within Buckinghamshire, as set out at Section 4 of the Cabinet report, be AGREED.

Cabinet received a report setting out the proposed arrangements for the transfer of the Bucks Local Enterprise Partnership (LEP) functions to Buckinghamshire Council, and was asked to agree the approach within Buckinghamshire, in light of the Government’s decision to transfer the economic growth and business representation functions of LEPs to local authorities.

Following a period of consultation earlier in 2023, the Government had confirmed in August its decision to end Local Enterprise Partnership (LEP) core funding from 2024/25 and transfer current LEP functions to local government in the interests of supporting local leadership, establishing more joined up delivery, greater efficiency and increased clarity for the business community.  Councils would receive transition funding in 2024/25 (also funding for the growth hub) to support them to take on these functions, with all future funding to be set out at the next Spending Review.

The Government expected seamless Growth Hub provision across the area, that would continue to support businesses and to provide a convening point for broader business support provision. The current level and duration of funding to be received by Councils was not known at present and it was unclear when the level of funding would be confirmed.  The Government expected that all decisions on the transfer and future management of assets would be taken by the LEP and its Accountable Body by March 2024. Further guidance was expected by January 2024. However, in general, local agreement was expected, with government departments becoming directly involved only with those areas that could not reach agreement. Following a series of discussions locally, the Cabinet report set out the key principles and proposals that have been developed to achieve the transfer in Buckinghamshire.

It was envisaged that Buckinghamshire Business First (BBF) continued as the Bucks

Growth Hub and the Skills Hub working with the Skills Board. Future funding for BBF

would need to be clearly agreed by the Growth Board and its deliverables should be

defined as part of a new service level agreement negotiated with the Growth Board.

The Leader reported that the Council had a strong partnership with the Local Enterprise Board and it was a rationalisation of the existing structure. The Council had the Growth Board and the four Boards beneath it which included Skills, Opportunity Bucks, Regeneration and the Investment Board. The Council would look to transition the current Members to the Investment Board. The funding available was limited given the overall financial situation in the Country and Buckinghamshire received very little Government funding. This funding would be discussed by the Growth Board who would decide how much would be used for economic development and be given to the Investment Board. There was a limited amount of funding for the Enterprise Zone which had a specified geography in the north of the County and that money with some reserves should be available to the Investment Board. It was important to be aware of what functions the current LEP discharge and how many of those could transition easily to this Council. Some of them naturally fit in well with existing Council functions and others not so it was important to be clear what Government funding was available and whether those other areas could be integrated into the Council. Clarity was also required on whether this was short or long term funding in order to understand the sustainability of these services. Ideally this should be in place by April 2024. Further clarity was required on Board Members responsibilities and TUPE implications for staff within the LEP transferring to this Council.

Following a comment by a Cabinet Member the Leader confirmed that he had given assurance that the Enterprise Zone funding would be used for economic development. A future Council however could decide not to ringfence this money.

Another Cabinet Member welcomed the report and the rationalisation of services, avoiding duplication. He was concerned about maintaining close relationships with the business community so he welcomed that the Chairman of the Investment Board and the Vice-Chairman of the Growth Board would have a business background. The Bucks Business Group would continue as a regular forum.

Another Cabinet Member suggested that a letter of thanks should be written to the LEP Board for the support they had given to this Council and to Buckinghamshire as a whole.

RESOLVED –

That the proposed arrangements for the delivery of the Local Enterprise Partnership functions within Buckinghamshire, as set out at Section 4 of the Cabinet report, be AGREED.