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RESOLVED: That the
Cabinet:
a)   
Would receive the transfer of all the Local
Enterprise Partnership (LEP) rights, loans and liabilities
including all reserves and funding as the accountable body for the
six local authorities within South East Midlands economic area from
1 April 2024 as detailed in paragraph 4.2 and in recognition of
Luton’s ongoing accountable body role as detailed in
4.5.
b)   
Would receive future funding as accountable body,
where it is deemed appropriate that services or functions should be
managed by the accountable body.
c)   
Accepted the transfer of staff and any liabilities,
in accordance with TUPE, to include where applicable finance,
communications and operational support.
d)   
Noted the inherited financial position as set out in
paragraph 6.1.1
e)   
Agreed the governance structure and responsibilities
for the transferred LEP functions, as described in paragraph 5.2.4
option 2, with Milton Keynes City Council, Luton Borough
Council, North Northamptonshire Council, Bedford Borough Council
and Central Bedfordshire Council
f)    
Would enter into an agreement with the five
authorities in relation to the delivery of the services on their
behalf and for the use of the reserves to meet the liabilities and
where the reserves are insufficient to meet the liabilities to be
able to recover the liabilities from the relevant local authorities
including any successor bodies as described in paragraph
5.11.
g)   
Delegated authority to the Director of Communities
& Opportunities in consultation with the Leader of the Council,
to lead the integration process, including finalising the joint
agreement with the other local authorities.
 
 
REASONS RESOLVED:
·        
To satisfy the Government with respect to the
transfer of LEP functions in accordance with guidance in August and
December 2023, to integrate these functions into local democratic
institutions across a functional economic geographical
area
·        
To deliver LEP functions across the South East
Midlands functional economic area to ensure the wider benefits to
the area associated with the delivery of strategic economic
growth
·        
To ensure that the transfer of functions is managed
to ensure the Council has mitigated its exposure to financial
liabilities and other risks arising from the transfer of LEP
functions
 
ALTERNATIVE OPTIONS:
·        
Option 1 - Utilise Government funding and any
existing project funding only.

This is the lowest cost option but requires a
reduction in the capacity and functions currently provided by
SEMLEP and the Council providing corporate service support rather
than the function having dedicated staff.  The WNC management fee would be slightly higher to
reflect no dedicated enabling resource. This option has no call on
LEP reserves although any contingency requirements for the Council
would need to be identified from LEP reserves.
·        
Option 2 - Utilising Government funding, any
existing project funding and reserves to create a stronger year one
position.

This is the mid-range option and would see the
continuation of existing functions and capacity and bringing over
the existing corporate “enabling service” support roles
rather than using WNC services and some use of LEP reserves. It is
recognised that use of reserves couldn’t be sustained in a
long-term model, but this would be a year one position with a
review before the end of year one, when government direction is
clear and true costs of hosting it within a local authority are
established.
·        
Option 3 – Lift and shift the current LEP
service – utilising government funding, existing project
funding and reserves. This is the most
expensive option and includes some functions and roles to drive the
profile and investment of the body, dedicated corporate service
roles and an increased use of reserves.