Purpose

To outline the
transition of the Leicester and Leicestershire Enterprise
Partnership (LLEP) functions to Leicester City Council, effective
from April 2024.

Decision

To:
 

a)       Note
the transition of Leicester and Leicestershire’s Enterprise
Partnership Ltd (LLEP) functions into Leicester City Council on 1
April 2024, acting as delivery lead for the new Leicester and
Leicestershire Business and Skills Partnership.

b)         Note
that the Council continues to be represented on the Board of LLEP
Ltd for a short period whilst company business is concluded, and
that the Council formally remains accountable body until the
company is wound up.

c)         Note the
ongoing work to establish the new Leicester and Leicestershire
Business Board.

d)         Approve
that the operating reserve transferred from the LLEP on 1 April
2024 be added to the Council’s revenue earmarked reserves
(balance of £3.506m) and be used to fund and underwrite
transition costs and priority activity up to March 2026.

e)         Note
that on-going activity beyond 2026 will depend heavily upon
national policy guidance and local funding decisions by the City
and County Councils as the two upper-tier local authorities.

f)         
Approve that the capital receipts arising from the former LLEP
Growing Places Fund (uncommitted sum of £10.275m) at 1 April
2024 be added to the Council’s capital receipts and be
ringfenced to support economic development and prosperity across
the functional economic area.

g)         Note
that the Council holds two further key funds arising from its role
as accountable body to the LLEP, namely the residual countywide
business rates pool schemes not yet defrayed (which would be
returned to the County Council as pool lead, if no longer required)
and funds attributable to the three Enterprise Zones.

h)       
Delegate authority to the Director of Finance to determine the
specific budget ceilings affected by the transition, noting the
operating costs of the post-LLEP function will be funded by the
earmarked reserve, grants and other external income transferred
from the LLEP.

i)         
Note that the use of delegations approved by Council in respect of
Government investment programmes, for which the Council received
grant as the accountable body to the LLEP, will fall away during
2024/25.

j)         
Note the expected new arrangements for the governance of Enterprise
Zones.

k)         Note
that any necessary further decisions in connection with the ending
of the accountable body role will be brought forward in due
course.