New Anglia LEP Investment Appraisal Committee
Tueday 23rd July 2019
9am to 9:45am
The Colman Gallery, Norwich Castle
Agenda
No.
Item
1.
Welcome
2.
Apologies
3.
Declarations of Interest
4.
Minutes from last Meeting
5.
Horizon Paper - Confidential
Reporting - Growing Business Fund
6.1
Growing Business Fund Performance Report
6.2
Growing Business Fund approvals
6.3
Small Grant Scheme approvals
Items for discussion
7.
Innovative Projects Fund revised arrangements
8.
MSF Loan update (Confidential)
Items for approval
9.
GPF Large Company Grant Request (Confidential)
10.
GPF The Nest Grant Application - (Confidential)
Other
11.
Any Other Business
Date and time of next meeting: Wednesday, 25 September 2019. 9am-9:45am
Venue: The Bunker, Milsoms, Kesgrave Hall, Ipswich, IP5 2PU
1
Committee Members
Lindsey Rix
Aviva
Cllr David Ellesmere
Ipswich Borough Council
Andrew Proctor
Norfolk County Council
Sandy Ruddock
Scarlett and Mustard
Alan Waters
Norfolk County Council
Tim Whitley
BT
Dominic Keen
High Growth Robotics
Martin Williams
Santander
Exec Members
Rosanne Wijnberg
New Anglia LEP
Chris Dashper
New Anglia LEP
Iain Dunnett
New Anglia LEP
2
New Anglia Investment Appraisal Committee
Meeting Minutes (Unconfirmed)
25th June 2019
Present:
Committee Members
Lindsey Rix (LR)
Aviva
Martin Williams (MW)
Santander
Alan Waters (AW)
Norwich City Council
Dominic Keen (DK)
High Growth Robotics
David Ellesmere (DE)
Ipswich Borough Council
In Attendance
Rosanne Wijnberg (RW)
New Anglia LEP
Chris Dashper (CD)
New Anglia LEP
Iain Dunnett (ID)
New Anglia LEP
ACTIONS
Update Large Company Capital grant programme before submission to LEP board for approval
CD
Revisit Banham application to address questions from IAC
ID
Continue to explore repayment options with MSF. Discuss further with DK
CD
1
Welcome from the Chair
David Ellesmere as Vice Chair welcomed everyone to the meeting. Lindsey Rix joined the meeting later.
2
Apologies
Tim Whitley and Sandy Ruddock
3
Declarations of Interest
None
4
Minutes of previous meeting (5 June 2019)
The minutes of the previous meeting were approved by the committe.
5
Growing Places Fund Horizon Paper (Confidential)
Iain Dunnett (ID) reviewed the GPF Horizon Paper.
AP: Who should potential applicants to the VCSE call contact? All enquires can go to the Norfolk and
Suffolk Community Foundations
6
Growing Business Fund Programme Performance Report (Confidential)
6.1
Growing Business Fund RAG rating
6.2
Small Grants Scheme Approvals
The monthly GBF report and accompanying appendices were reviewed by the Committee. The report for
Page 1 of 2
the July meeting of the Committee would incorporate the revised budget as agreed in the LEP Capital
Budget.
7
Growing Places Fund Loan Criteria (Confidential)
The Committee were presented with a paper reviewing the primary purpose of the Growing Places Fund
in relation to loans to housing developments
DE and AW: Aggregated output totals are fine, but can quality outputs be identified on areas such as
affordable and social housing.
8
Large Company Grant Programme (Confidential)
CD reviewed the paper on a new programme to enable support for large companies that would not
normally be able to apply for grant funding.
The programme is primarily designed to support companies where there is a threat of relocation outside
of the region or where there is significant innovation or R&D planned that would create growth and jobs.
AP: Should the programme have an annual budget rather than a one-off allocation
DE: Could the fund apply to projects that were moving into the region?
The Committee agreed to recommend the Large Company Grant Programme to the LEP Board for
approval, with the addition of the following:
• Sufficient budget be made available to operate the fund in 20/21 as well as 19/20.
• That the criteria incorporate inward investment options for companies looking to locate to the
region
9
Growing Places Fund: Loan update (Confidential)
10
GPF Grant Request (Confidential)
12
Any Other Business
None
Page 2 of 2
Growing Business Fund Performance Report
Programme Overview - What is the Growing Business Fund?
Launched in April 2013, the Growing Business Fund provides grants for businesses to enable growth, an increase productivity and job creation
Capital grants between £25,000 and £500,000 are provided at up to 20% of project costs for SMEs, with an enhanced rate for small businesses located in an Assisted Area
Funding for the Growing Business Fund is provided on an annual basis by the LEP's Growth Deal
The fund is accessed through the New Anglia Growth Hub with Due Diligence undertaken by Finance East
What is the overall Programme Status?
Finance
Green
For 2018/19 the programme was over spent, with an additional £1m of funding put into the scheme, of which £363K has been rolled into 2019/20
Green
Outputs
Based on recent grant applications, spend and pipeline, the scheme will probably over perform against the targets for the year2019/20
Green
Delivery
A steady pipeline of high quality applications is still coming forward, ensuring that the scheme continues performs well
What are our key updates?
Membership of the Approval Panel was widened at the end of 2018, to ensure the panel has the knowledge required to operate effectively
Following a slight decline in the Autumn 2018, the pipeline of applications has now picked up, with a good number of high quality applications coming forward for support
In early 2019, the LEP worked with Suffolk County Council and the Growth Hub to tweak the programme guidance, which now has a greater focus on LEP priorities
What is our financial position?
Financials (£ million)
Year
2013 to 2016
2016/2017
2017/2018
2018/2019
2019/2020
2020/2021
2021/22
Total
Profile Spend (£m)
£12.000
£3.536
£3.050
£5.096
£4.121
£2.790
£0.000
£30.593
Actual Spend (£m)
£11.999
£3.001
£3.049
£4.764
£0.793
£23.606
Remaining Spend (£m)
£0.001
£0.535
£0.001
£0.331
£3.328
£2.790
£0.000
£6.986
2019/2020 Expenditure Profile
2
1
0
Q1-18/19
Q2-18/19
Q3-18/19
Q4-18/19
Quarterly Forecast
£1.030
£1.030
£1.030
£1.030
Quarterly Spend
£0.793
£0.000
£0.000
£0.000
Variance
£0.237
£1.030
£1.030
£1.030
What is our contribution to the Economic Strategy?
Actual to end of
Monthly
Outputs April 2019 to March 2020
Target
Shortfall
Notes
May 2019
Change
Value of grants approved
£4,121,000
£376,766
£206,766
£3,744,234
Value of private sector match approved
£16,484,000
£1,517,912
£835,997
£14,966,088
Number of New Jobs to be Created
206
26
18
180
Value of grants claimed
£4,121,000
£792,974
£647,792
£3,328,026
Private sector match funding drawn down
£16,484,000
£2,559,225
£1,638,947
£13,924,775
Number of New Jobs Created
206
25
17
181
What is the project status?
The following table shows grants approved by sector since the start of the programme in 2013/14
Number of
Projects
Grants
Private
Total Project
Jobs to be
Sector
Approved
Approved
Match
Costs
Created
A - Agriculture, Forestry and Fishing
2
£180,000
£794,946
£974,946
46
B - Mining and Quarrying
1
£100,000
£1,654,600
£1,754,600
10
C - Manufacturing
118
£13,454,233
£88,535,307
£101,989,540
1480.5
E - Water supply, sewerage, waste management and remediation activities
5
£295,594
£1,260,379
£1,555,973
28
F - Construction
15
£1,086,486
£5,231,673
£6,318,159
142
G - Wholesale and retail trade; repair of motor vehicles and motorcycles
24
£2,729,816
£51,630,071
£54,359,887
376
H - Transportation and Storage
8
£666,992
£3,275,957
£3,942,949
90
I - Accommodation and Food Service Activities
4
£262,000
£1,052,138
£1,314,138
34.5
J - Information and Communication
9
£685,700
£3,409,616
£4,095,316
70
K - Financial and Insurance Activities
1
£30,000
£79,425
£109,425
3
M - Professional, Scientific and Technical Activities
18
£1,737,372
£12,400,472
£14,137,844
195.6
N - Administrative and Support Service Activities
19
£1,848,771
£10,067,136
£11,915,907
224
P - Education
1
£20,000
£102,191
£122,191
4
Q - Human Health and Social Work Activities
1
£31,580
£126,320
£157,900
3.5
R - Arts, Entertainment and Recreation
7
£462,921
£3,033,716
£3,496,637
53.5
S - Other Service Activities
2
£320,000
£4,737,413
£5,057,413
32
Total
235
£23,911,465
£187,391,360
£211,302,825
2792.6
What are the next steps?
The LEP is working with delivery partners, to ensure that the scheme has a greater focus on business growth and productivity
The Growth Hub are now following up participants that have attended 'Scale-Up' Programme events to identify SMEs that may be eligible for grant support, including GBF
9
New Anglia LEP
Growing Business Fund
Grant Approvals 1st April 2019 to 31st March 2020
Date
Total
Jobs to be
Business Name
Grant Awarded
Private Match
Approved
Project
Created
Apr-19
Anglian Plant Ltd
£170,000
£681,915
£851,915
8
May-19
Portable Space Ltd (2)
£78,378
£313,513
£391,891
5
May-19
Goldwell Manufacturing Services Ltd
£40,000
£96,200
£136,200
2
May-19
Belle Coachworks Ltd (4)
£36,000
£85,151
£121,151
5
May-19
HBD Europe Ltd (2)
£52,388
£341,133
£393,521
6
£0
£0
£0
£0
£0
£0
£0
£0
£376,766
£1,517,912
£1,894,678
26
10
Small Grant Scheme Approvals (April 2019 - March 2020)
Total
Jobs to
Date
Grant
Private
Business Name
Project
be
Approved
Awarded
Match
Cost
Created
Apr-19 DXB Pumps & Power Ltd.
£16,845
£67,385
£84,230
1.0
Apr-19 Bradleys (Stowmarket) Ltd. (2)
£17,919
£71,679
£89,598
0.0
Apr-19 Praxis42 Ltd.
£6,362
£25,449
£31,811
4.0
Apr-19 Edmondson Hall
£25,000
£371,148
£396,148
0.0
Apr-19 The Penny Bun Bakehouse Ltd.
£7,203
£16,807
£24,010
0.0
Apr-19 Criterion Ices Ltd.
£19,515
£78,064
£97,579
2.0
Apr-19 Fruitful Media Ltd.
£8,805
£35,222
£44,027
7.0
Apr-19 Tosier Chocolate Ltd.
£2,724
£10,900
£13,624
1.0
May-19 Apex Print & Promotion Ltd.
£9,930
£39,720
£49,650
2.0
May-19 Pastonacre Ltd
£4,305
£17,224
£21,529
1.0
May-19 Donald Utting & Sons Ltd (2)
£24,973
£99,892
£124,865
0.0
May-19 Safety Devices International Ltd
£5,600
£22,400
£28,000
0.0
May-19 A J Laminated Beams Ltd
£5,500
£22,000
£27,500
0.0
May-19 P J Lee Hire & Sales Ltd
£6,600
£26,400
£33,000
2.0
May-19 Newton Automotive Ltd (2)
£16,160
£64,640
£80,800
1.0
£177,441
£968,930
£1,146,371
21.0
11
New Anglia Local Enterprise Partnership Investment Appraisal Committee.
Tuesday 23rd July 2019
Agenda Item 7
Innovative Projects Fund
Author: Tanya Nelson and Chris Dashper
Summary
This paper provides some initial context and background around a proposal for the delivery of a
2019/20 call of the Innovative Projects Revenue fund. This follows LEP Investment Appraisal
Committee approval for an annual allocation of £500k to the programme for 2019/20 and 2020/21
from LEP funds.
Following the outcome of the first call of the Innovative Projects Fund in 2018, both Suffolk and
Norfolk County Councils indicated interest in matching New Anglia LEP’s future allocations of the
Innovative Projects Fund through their respective pooled business rates. This would result in a
£1.5 million pot being made available to prospective projects under a 2019/20 call.
The paper outlines how delivery of the Innovative Projects Fund in partnership with Norfolk and
Suffolk County Councils might develop in terms of impact and governance, utilising match funding
from their respective pooled business rates.
The business rates funding generated by the District councils is also an important source of
revenue funding that can be used as an intervention programme for the region. Pooling the two
funds together would enable:
Greater alignment with the Economic and Local Industrial Strategies;
Better value for money and outcomes;
Potential for investment synergies across the two counties.
The proposal to combine LEP, SCC and NCC has been circulated for consideration by Norfolk
and Suffolk leaders and is due to be considered by leaders groups in both counties later this
week.
Recommendation
The IAC is asked to approve in principle the establishment of the larger fund jointly with local
authorities from Norfolk and Suffolk - with final sign off at the September LEP board meeting.
Background
On 27th March 2019, 8 projects from the 2018 Call of the Innovative Projects Fund were taken to
the NA LEP Investment Appraisal Committee. Three projects were approved and five were
subject to conditional approval. The total amount approved was £649,068. Four of the approved
projects required funding over 2 or more financial years.
13
At the same meeting, the IAC approved a recommendation that the Innovative Projects Fund
becomes an annual rolling programme, with a minimum annual allocation of £500k from Pot C
for calls in both 2019 and 2020.
The LEP Executive was invited to develop a specification for a 2019/20 call for innovative projects
from external partners which will help deliver the Economic Strategy and explore the possibility
of a joint partnership with Norfolk and Suffolk County Councils.
This paper builds on the approval above, defining the specification and process for the 2019/20
call for Innovative Projects Fund in partnership with Norfolk County Council and Suffolk County
Council.
Context of a 2019/20 Call of the Innovative Projects Fund.
The total amount available to allocate to projects through Pot C is expected to increase year on
year as businesses continue to relocate, expand and start up in the Space to Grow and Space
to Innovate Enterprise Zones across the New Anglia LEP area.
This will ensure sufficient headroom to accommodate multi-year projects (and allow for the over
commitment of funds from the 2018 call) and provide the budget for the approved project calls in
2019 and 2020.
In terms of regional spread, an equal number of projects were funded from each county, with an
additional number covering the New Anglia LEP area in its entirety.
Following the outcome of the first call of the Innovative Projects Fund, both Suffolk and Norfolk
County Councils have indicated interest in matching New Anglia LEP’s future allocation to the
Innovative Projects Fund through their respective pooled business rates. This would result in
£1.5 million being made available to prospective projects under a 2019/20 call.
There is great synergy between the current criteria for the allocation of funding to applicants
bidding to Norfolk County Council’s pooled business rate fund and that of the NA LEP’s Innovative
Projects Fund. The high-level objectives for Norfolk County Council’s Delivery Plan mirror the
LEP theme objectives outlined by the Economic Strategy for Norfolk and Suffolk.
At present, there is no formal programme criteria for assessing projects applying for funds from
Suffolk County Council’s Pooled Business Rates.
Additionally, it is agreed that the new Innovative Projects Fund call for 2019/20 should encourage
projects that support our competitive strengths and the high growth sectors (clean energy, agri-
food and ICT/digital) thereby supporting the Local Industrial Strategy.
The programme would again look favourably on cross-sector collaborations, where specialist
skills in one sector can drive innovation and growth in another. Furthermore, proposals for
revenue funding to accelerate the impact of LEP or county council led capital schemes will also
be considered.
The call will focus on Innovation across the LEP geography. A concerted effort will be made to
publicise the availability of the programme to the LEP area’s growth sectors via the respective
sector groups. Where required, the Programmes Case Worker will attend meetings of the sector
groups to outline the programme and answer any questions. Furthermore, the same offer will be
extended to the Growth Hub to ensure that the advisors meeting businesses that are
demonstrating innovative project ideas are alerted to the programme at the earliest opportunity
and are able to submit applications that meet the criteria.
The launch of the programme with be publicised via the normal LEP networks and media
pathways, likewise through the County Council’s.
14
Management and Administration.
A jointly funded Innovative Projects Fund Programme will continue to be led, managed and
monitored by the LEP. £500,000 from each partner would be held by Suffolk County Council as
the Accountable body for the LEP. A sum of £60,000 has been proposed to be top sliced from
the programme budget to pay for management costs, assessment of applications and delivery of
the programme. If necessary this cost could be met from LEP funds.
Process for the review and appraisal of projects.
Appraisals of all eligible applications to the fund will be undertaken by an independent body, this
is currently Hewdon Consulting.
The assessment process would rank proposals against the following criteria.
1 Demonstration of clear fit with the Economic and Local Industrial Strategy.
2 Additionality. How is this more than business as usual. The fund should not replace core
funding.
3 Value for money. Can the project demonstrate this is good use of public money.
4 Leverage. What additional funding, public or private or in-kind support does the project
generate.
5 Impact. What will the project actually deliver and how innovative is the proposal.
6 Sustainability. What will happen when the funding ends.
Each would be scored from one to five, with a total maximum score therefore of 30.
One being low. Three medium and five being good.
Governance and approval
A partnership arrangement between the LEP and the two local authorities will be put in place to
consider eligible applications for funding. This would comprise two private sector members of the
IAC and two local authority representatives from Norfolk and two from Suffolk, selected by their
respective leaders groups.
The partnership will meet to discuss the projects and define a shortlist of projects for approval,
based on the reports provided by the independent assessing body.
Recommendations for approval would only be made for projects which scored the highest across
the above categories.
A copy of all applicants’ appraisal and corresponding criteria score (projects will be scored and
ranked highest first based on their ability to meet the programme criteria) will be issued to
nominated officers within the partnership.
Monitoring and Reporting
SCC as the accountable body for the LEP will arrange for the Offer Letters for projects approved
by a 2019/20 Innovative Projects Fund call to be sent to the respective project lead organisations.
The NA LEP Programmes Caseworker will then liaise with the project managers to monitor the
progress of their projects against their agreed outputs and expenditure. The Programmes Case
Worker will also provide programme monitoring reports to the relevant meetings / boards as
required.
15
A suggested process for the appraisal and approval of projects is detailed below:
16
Timetable
A suggested timetable for the 2019/20 call is as follows:
Programme Call Launch - October 2019
Programme Call Closes - December 2019
Projects review and appraisal: January- February 2020
Funding Decisions: March 2020
Recommendation
The IAC is asked to approve in principle the establishment of the larger fund jointly with local
authorities from Norfolk and Suffolk - with final sign off at the September LEP board meeting.
17