Purpose

Proposed decision

 

Launch a new Growing
Places Fund (GPF) capital loan-based funding programme for
Kent.
Act as the
accountable body for projects within Kent’s geographical
boundaries that are to receive GPF loan funding.
Delegate authority to
the Director of Growth and Communities in consultation with
the Cabinet Member for Economic Development to take
relevant actions including but not limited to approving new
governance arrangements for managing the GPF programme, entering
contracts and/or other legal agreement as necessary to implement
the decision

 
 
Reason for the decision:
KCC has recently taken on a
number of responsibilities from central government following the
closure of the South East Local Enterprise Partnership (SELEP).
These include the ongoing monitoring and management of legacy
capital programmes previously administered by SELEP. One legacy
capital programme is the Growing Places Fund (GPF). Recycled GPF
loan repayments returned to KCC will enable a new Kent capital loan
programme to be launched to support projects that contribute to
economic growth.
 
Background & Context:
Since 2011, SELEP
administered Growing Places loan Funding (GPF) from central
government which was used to support stalled capital investments
that contributed to economic growth, job creation and
infrastructure improvements. SELEP used its federated boards
(namely the Kent & Medway Economic Partnership (KMEP) for our
region), asking them to advertise the call for GPF projects, and to
advise SELEP on which GPF applications provided best strategic fit
based on local intelligence and knowledge.
 
Following the closure
of SELEP, recycled loan repayments are being disaggregated to the
six upper tier local authorities in the SELEP area with the purpose
of reinvesting the funds to support new capital schemes. Some
£14.8m of ringfenced funding is due to be repaid to KCC over
the next three financial years and can be used to launch a new
programme to support new capital projects that contribute to
economic growth in the county through creating jobs, making
infrastructure improvements or supporting the development of local
skills. New governance arrangements now need to be put in place to
manage the GPF programme.
 
A governance paper
will be taken to GEDCCC in January 25 proposing that the Kent & Medway Economic Partnership (KMEP) acts as an
advisory board for KCC. This Growth Board is to provide
recommendations to KCC on the eligibility criteria for the new GPF
call for projects, supporting the promotion of the opportunity in
an open call, and rank and prioritise the funding applications
received. This ranked list of applications will then be passed to
KCC for final decision to be taken by the Cabinet
Member.
 
Options discounted:
 

1. 
Kent County Council manages the GPF programme
in-house without consultation or engagement with KMEP.
 
As
the formal Local Growth Board for Kent & Medway, KMEP is the
only forum which brings together private-sector business leaders,
further education principals, higher education vice-chancellors,
and all local council leaders to discuss economic growth. Each KMEP
board  member brings with them
specialised knowledge, expertise and skills. An option to exclude
KMEP from future GPF decision-making was discounted, as that would
not allow Kent to capitalise on this knowledge, expertise and
skills. Furthermore, KMEP has over a decade of experience in
advising on GPF funding decisions and ensuring good value for
money.
 

2. 
Return the funding to central government.
 
This option was
discounted as the funding would not unlock further economic growth
for Kent.
 
How
the proposed decision supports Strategic Priorities:
 
The decision supports
the strategic priorities within Framing Kent’s Future and
Securing Kent’s Future.
 
In relation to Framing
Kent’s Future, this decision will allow GPF capital loan
funding to be invested into projects that will strengthen the
county’s economy, help people gain the skills they need, and
narrow the gaps in outcomes between different parts of Kent and
between Kent and the rest of the South East. It will also ensure
that there is investment in economic infrastructure.
 
In relation to
Securing Kent’s Future, the decision adheres to Securing
Kent’s Future’s requirement for full cost
recovery
 
The decision also
supports ambitions in the Kent & Medway Economic Framework to
create the conditions for economic growth.
 

Decision

As Cabinet Member for Economic
Development I agree to:
 

LAUNCH a new round of the Growing
Places Fund (GPF) capital loan-based funding programme for
Kent;

 

APPROVE the new governance
arrangements for managing the GPF programme;

 

ACT as the accountable body for
projects within Kent’s geographical boundaries that are to
receive GPF loan funding; and

 

DELEGATE authority to the Director
of Growth and Communities to take relevant actions including but
not limited to entering contracts and/or other legal agreements as
necessary to implement the decision.