New Anglia Local Enterprise Partnership Board Meeting

Wednesday 17^th January 2018

10.00am to 12.30pm

Orbis Energy, Wilde Street, Lowestoft, Suffolk, NR32 1XH

Agenda

No.

Item

Duration

Welcome

Apologies

Declarations of Interest

20 mins

Welcome from Orbis Energy

Actions / Minutes from the last meeting

Forward looking

30 mins

Aims and Objectives for the Year - Presentation

For discussion

Governance and delivery

100 mins

Capital Growth Programme Projects including Confidential Tables

For Approval

New Anglia Voluntary Community Sector Programme Extension

For Approval

Integrated Health and Employment Service Proposal

For Approval

10.

Growing Places Fund investment The Malthouse - Confidential

For Approval

11.

New Anglia Capital - Confidential

Update

Chief Executive’s report

12.

Update

including PwC and Mary Ney Review Implementation Plan

13.

Finance Report including Confidential Appendices

Update

14.

Appointment of New Director - Confidential

For Approval

15.

Remuneration Committee - Confidential

For Approval

16.

Any Other Business

Date and time of next meeting: 21^st February, 2018. 10am-12.30pm

Venue: The Marble Hall, Surry Street, Norwich, NR1 3NG

New Anglia Board Meeting Minutes (Unconfirmed)

22^nd November 2017

Present:

Cllr David Ellesmere (DE)

Ipswich Borough Council

Doug Field (DF)

East of England Coop

Cllr Cliff Jordan (CJ)

Norfolk County Council

Dominic Keen (DK)

High Growth Robotics

Cllr Colin Noble (CN)

Suffolk County Council

Cllr Andrew Proctor (AP)

Broadland District Council

Prof David Richardson (DR)

UEA

Sandy Ruddock (SR)

Scarlett & Mustard

Dr Nikos Savvas (NS)

West Suffolk College

Jeanette Wheeler (JW)

Birketts

Tim Whitley (TW)

In Attendance:

Cllr Mike Stonard

Norwich City Council (For Alan Waters)

Shan Lloyd

BEIS

Katherine Hunt

BEIS

Chris Dashper (CD)

New Anglia LEP

Hayley Mace (HM)

New Anglia LEP

Lisa Roberts (LiR)

New Anglia LEP

Keith Spanton (KS)

New Anglia LEP

Chris Starkie (CS)

New Anglia LEP

Helen Wilton (HW)

New Anglia LEP

Tracey Jessop (TJ)

Norfolk County Council

Sue Roper (SuR)

Suffolk County Council

Page 1 of 6

Actions from the meeting: (22.11.17)

LEP Governance Review

To express preferences over committee roles to LiR by 1^st December

ALL

Business Investment Proposal - Confidential

To receive more detail on the skills spending within the proposal

May Ney Review Including Standards of Conduct

To receive details of where the policies can be accessed.

Board Forward Plan

To provide feedback on the plan and propose any additional items

ALL

Business Performance Reports

To receive a proposal on the Eastern Agi-Tech initiative by email.

Welcome from the Chairman

Doug Field (DF) welcomed everyone and thanked Tim Whitley for hosting the meeting. He welcomed

Katherine Hunt from BEIS and Mike Stonard who is deputising for Cllr Alan Waters.

Apologies

Apologies were received from:

Cllr John Griffiths

Steve Oliver

Lindsey Rix

Cllr Alan Waters

Julian Munson

Declarations of Interest

Full declarations of interest can be found at http://www.newanglia.co.uk/about-us/the-board/.

The board were reminded that declarations of interest are required as part of LEP scrutiny and must be

submitted to the LEP office at the earliest convenience.

Declarations relevant to this meeting:

Jeanette Wheeler (JW) noted an interest in Item 7 and did not take part in the relevant discussion or

decision.

JW also declared an interest in the update on the CITB Announcement provided by Chris Starkie (CS)

within his Chief Executive’s Report.

Welcome from Adastral Park

Tim Whitley (TW) welcomed Board members to Adastral Park.

TW provided a presentation on the importance of BT & EE to the immediate geographic area

and gave an overview of the work carried out at Adastral Park.

Minutes of the last meeting 25^th October 2017

Actions from last meeting updated as follows:

Implementing the Economic Strategy: Review of LEP Programmes

To be advised of the retention rate of jobs created through the VCS Challenge Fund - this has

been requested and a response awaited from the Norfolk Community Foundation.

Investigate whether any Co-Ops have applied for the VCS Challenge Fund - this has been

requested and a response awaited from the Norfolk Community Foundation.

To receive Terms of Reference for each fund - Hard copies are available from Chris Dashper

(CD) or can be emailed on request.

Board to receive business cards with contact details for the Growth Hub and the programmes

HM/HW

team - awaiting delivery.

Britvic and Unilever Presentation

To receive an update from CS following the meeting on 26^th October - included in the Chief

Executive’s Report.

LEP Governance Review

Lisa Roberts (LiR) took the paper as read and reviewed the proposed scope and approach for

the governance review outlining the recommendations for the Board to consider.

The Board discussed the proposed new structure and the changes to the boards and

committees detailed under the diagram of the First Tier.

Page 2 of 6

David Ellesmere (DE) queried whether each of the priority areas should have its own

representative on the new board for the delivery of the Economic Strategy.

LiR advised that the make-up of the Boards had yet to be decided and that the terms of

reference for the Board would be worked up following the decisions made at this Board

meeting. The initial plan was that the priority areas would be represented through the Growth

Groups.

LiR noted that the recommendations being put to the Board were focussed on agreeing the

structure and the way forward and the composition and details would be presented at a later

date.

In order to ensure that the best committee members were in place for each group, the review

would establish membership from scratch and LiR asked that Board members contact her with

expressions of interest in particular boards/committees.

DE noted that the chair of the Economic Strategy Implementation Board should be neutral and

not tied to any particular theme.

The Board agreed:

 To note the content of the report

 To agree the scope of the governance review

 To agree the proposed approach and timetable for phase 2

 To agree the recommendations presented for the first tier of the new structure

ALL

 To express preferences over committee roles to LiR by 1^st December

Business Investment Proposal - Confidential

Page 3 of 6

The Board agreed:

 To receive more detail on the skills spending within the proposal from Nicole Kritzinger

(NK)

 That the LEP executive develop relevant funding agreements to ensure the proposed

outcomes are realised, and appropriate clawback mechanisms are in place.

May Ney Review Including Standards of Conduct

Chris Starkie (CS) took the majority of the paper as read and reviewed the key points of the

paper.

DE noted that the Standards of Conduct included details of employees remaining politically

neutral and queried whether this meant that they would not attend any meeting at which only

one political party was present.

The meeting discussed the issues around the attendance at meetings with representatives

from political parties and agreed the policy should be amended for clarity over this issue.

CS confirmed that the Whistle-Blowing Policy is currently being updated.

DF requested that all policies be available to access for Board Members.

The Board agreed:

 To note the content of the report

 To formally adopt the Mary Ney recommendations

 To endorse the timetable outlining the implementation of the recommendations.

 To adopt the revised polices around conduct, subject to emending the paragraph on

political meetings.

 To receive details of where the policies can be accessed.

LEP Board Attendance Policy

Doug Field (DF) took the majority of the paper as read and reviewed the key points of the

proposal.

The Board agreed:

 To note the content of the proposal

 To accept the recommendations made in the report

Board Forward Plan

LiR took the majority of the paper as read and asked for questions for the Board.

The Board was advised that the plan would change going forward as the implementation plan

for the Economic Strategy was developed.

Board members were asked for feedback.

The Board agreed:

 To note the content of the plan

 To provide feedback on the plan and propose any additional items

ALL

PwC Report

Doug Field (DF) took the majority of the paper as read and asked the Board for questions

Page 4 of 6

Shan Lloyd (SL) noted that while the implementation of the Mary Ney review needed to be

done by 28^th Feb 2018 further changes to the Assurance Framework would not be required

until after the further review has been completed.

The Board agreed:

 To note the content of the report.

Chief Executive’s Report

CS took the majority of the paper as read and provided an update on the following items:

Confidential-

CITB Announcement - A proposal has been made to close the office at Bircham Newton and

relocate the head office to Peterborough. Investigations are ongoing regarding retaining the

card business in situ and also to retain the training section of the site.

Tech Clusters - Plans have been announced to expand the Tech clusters have included

Cambridge but not Norwich or Ipswich. The LEP is supporting the aim to create an East cluster

covering multi-sites and asked for support from the Board.

CS and DF proposed to Greg Clark that the LEP be used to trial the local industrial strategies in

order to be at the front of any changes and have a positive influence in the implementation.

The Board agreed:

 To note the content of the report

 To support the proposal around a Tech cluster for Norwich, Ipswich and Cambridge.

 To ask Government that the New Anglia LEP be a pilot local industrial strategy area.

Business Performance Reports

CS took the majority of the papers as read and asked for questions from the Board.

It was noted that, given the ongoing changes to boards, the BPRs will also be subject to review

and so will not be included in the January Board pack.

Ambitions Dashboard - LiR noted that much of the dashboard data was reported annually

and that this would be investigated as part of the implementation of the strategy. The detail

behind the reduction in jobs in the region was being investigated further. The speed of housing

delivery was increasing although still below target.

Call for Projects - Applications are still being received. Those not meeting the conditions of

this call will be held in preparation for future calls.

DK asked how many applications had been received and whether any were turned down due

to lack of available funds.

CD advised that the call for projects under the Capital Growth Programme was likely to be

oversubscribed. He also said that in programmes such as the Growing Business Fund or

Small Grants Programme, bids had not been turned down due to funding availability but were

sometimes scaled down or rejected due to suitability with the criteria. The Growth Deal had

traditionally been oversubscribed so projects were selected that demonstrated the best

strategic fit, deliverability, outcome and value for money. This information can be added into

future reporting.

Growth Deal - Some legal agreements have proved more complex than expected but were

due to be in place before Christmas. The focus is now on chasing spend to ensure it is in place

as agreed however a mechanism for a capital swap has been put in place with Norfolk County

Council for this year.

Page 5 of 6

Eastern Agri-Tech - CS provided an update on the programme. GCGP funding is still frozen

however an Agritech panel is still in place to assess and approve projects. A proposal is being

drawn up for the LEP Board on how to manage the financial delivery of projects in Norfolk and

Suffolk approved through that panel, on a case by case basis. This will be circulated to the

Board in December for agreement.

Communications - Hayley Mace (HM) noted that the new website was now live and details of

usage statistics would be built into future reports.

Confidential -

The Board agreed:

 To note the content of the report.

 To receive a proposal on the Eastern Agi-Tech initiative by email.

Finance Report

Keith Spanton (KS) reviewed the Finance report as included in the Board papers highlighting

the following items:

Wages and Salary - LEP staffing is now almost at full capacity. Marketing costs for MIPIM and

Venturefest have come in lower than budgeted.

Legal & Professional fees are higher than budgeted.

The Board agreed:

 To note the content of the reports.

Eastern Agri-Tech Initiative

To be circulated by email in December.

Any Other Business

None

Next meeting:

Wednesday 17^th January 2018, 10am-12.30pm

Orbis Energy, Wilde Street, Lowestoft, Suffolk, NR321XH

Page 6 of 6

Actions from New Anglia LEP Board Meetings

Date

Item No.

Action

Update

Actioned By

Status

22/11/2017

LEP Governance Review

All

Completed

To express preferences over committee roles to LiR by 1^st December

22/11/2017

Business Investment

To receive more detail on the skills spending within the proposal

Further details to be included in the funding

On-Going

Proposal

application

22/11/2017

Mary Ney Review

To receive details of where the policies can be accessed.

Published on web site with link issued to Board

Completed

members

22/11/2017

Board Forward Plan

To provide feedback on the plan and propose any additional items

ALL

Completed

22/11/2017

Business Performance

To receive a proposal on the Eastern Agi-Tech initiative by email.

On hold pending clarification on the situation

On Hold

Reports

at GCGP

25/10/2017

Implementing the

To be advised of the retention rate of jobs created through the VCS Challenge

To be provided at the November Board

On-Going

Economic Strategy

Fund

meeting

25/10/2017

Implementing the

Investigate whether any Co-Ops have applied for the VCS Challenge Fund

To be provided at the November Board

CD/ID

On-Going

Economic Strategy

meeting

25/10/2017

Implementing the

Board to receive business cards with contact details for the Growth Hub and the

Card have been ordered and delivery awaited

HM/HW

Completed

Economic Strategy

programmes team.

20/09/2017

Business Performance

To receive a future report on the approach to NAC investments

To be presented to the Board in January

On-Going

Reports

23-May-17

Inward Investment

An inward investment/international committee to be created with Jeanette

A committee has been established with the

Completed

framework

Wheeler, David Richardson, Mark Goodall and Tim Whitley.

first meeting being planned

New Anglia Local Enterprise Partnership Board

17^th January 2018

Agenda Item: 7

Capital Growth Programme Call: Project recommendations

Author: Chris Dashper

Summary

The Capital Growth Programme call for projects was launched immediately following the

October 2017 LEP Board meeting.

Under the call £9m of grant funding from the Growth Deal has been made available to

support projects that help deliver the new Economic Strategy.

A total of 29 project Expressions of Interest were received, with sectors including

infrastructure, transport, employment projects, skills and cultural themed projects.

All projects have been independently appraised using a comprehensive range of criteria.

However questions raised by the independent appraisers means that the majority of the

projects need to supply further information to allow a more detailed assessment to take

place before a decision can be made on whether or not they should be recommended for

funding.

This paper recommends approving two projects which satisfy the criteria and require a timely

decision, deferring decisions on a further 20 projects pending further information and

rejecting seven projects.

Deferred projects, depending on when they are ready, would be brought back to a spring

board meeting or referred to a further Growth Deal funding round, currently scheduled for the

summer or autumn of this year.

Recommendation

The Board are asked to:

Approve the award of Growth Deal grant funding to the following projects in table 1:

 Bacton to Walcott Coastal Management Scheme

 Cefas Research Centre

Approve the recommended decision option for each of the projects in tables 2 and 3:

 Table 2: Recommended to defer

 Table 3: Recommended to reject

Background

The Capital Growth Programme call for projects was launched immediately following the

October 2017 LEP Board meeting.

Under the call £9m of grant funding from the Growth Deal has been made available to

support projects that help deliver the new Economic Strategy.

Of this funding £4.3m came from the deallocation of existing projects in Growth Deals One

and Two and £4.7m from our Growth Deal Three allocation.

The call for projects closed on 30 November 2017. A total of 29 project Expressions of

Interest were received, with sectors including infrastructure, transport, employment projects,

skills and cultural themed projects.

Following a first stage sift of the projects, our independent appraisers Hewdon Consulting

have completed the initial appraisal of the project applications received.

All projects have been appraised in accordance with HM Treasury Green Book principles of

viability, value for money, achievability, affordability and need.

To ensure that projects reflect New Anglia LEP priorities and most importantly assist in the

delivery of the Economic Strategy, the Strategic Prioritisation Framework, developed with

Metro Dynamics has also been applied by Hewdon Consulting.

Key areas have been scored 1-5 for each project, with 5 being the highest.

Details of the appraisal methodology can be found after the tables at appendix 1.

The top two projects are recommended for approval. Their scoring was clearly higher than

all other projects and they require a timely decision. These projects would utilise £2.48m of

the £9m. Details of these projects are in table one.

Most of the other projects need to supply further information to allow a more detailed

assessment to take place before they can be brought forward for a decision by the board.

None of these projects requires an urgent decision to be made. Details of these projects are

in table two. The information contained in this table should be considered confidential.

We recommend the LEP executive continues to engage with these projects, with a second

batch brought for consideration at a spring board meeting when ready. Funding available for

this would be £6.52m, being the balance of the £9m assuming the two projects for approval

are agreed.

Looking further ahead, once the £9m from this call is fully allocated, the Capital Growth

Round will still have £23m available and we are planning a second call for projects later in

the year. This will be in the summer or autumn.

Deferred projects if not ready to be funded in the spring round, will be encouraged to bid into

this new round.

Given the learnings from this round, chiefly that very few projects provide the level of

information required for a decision to be made, the next round will need some tweaks to the

process.

The main change will be to allow more time between the completion of the independent

appraisal and the board decision.

This will allow project promoters to supply more information which was lacking in their

application, or to answer specific queries raised by the project assessor.

We will also be working to ensure that applications to the new call are of a higher standard.

Finally there were a number of projects which were not strictly eligible for funding via this

mechanism. There were also a few applicants seeking additional funding for projects which

have already received funding from the Growth Deal. The LEP board has previously

indicated it would only put more money into a project if there were additional outputs

generated as a result of the further investment. Details of these projects are in table three.

The information contained in this table should be considered confidential.

Project sectors by county

Project Sector

Norfolk

Suffolk

Total

Flood defences and

Infrastructure

Transport

Employment Space

Skills

Tourism Culture and Media

Total

Financial implications

The two projects recommended for approval would utilise £2.48m of the £9m.

This would enable £6.52m to be available for a spring approval round.

A further £23m would then remain for a future call to be held in the summer/autumn.

Recommendation

The Board are asked to:

Approve the award of Growth Deal grant funding to the following projects in table 1:

 Bacton to Walcott Coastal Management Scheme

 Cefas Research Centre

Approve the recommended decision option for each of the projects in tables 1 and 2:

 Table 2: Recommended to defer

 Table 3: Recommended to reject

Appendix 1

Appraisals for approved projects

Bacton to Walcott Coastal Management Scheme £1.08m

Project

Bacton to Walcott Sandscaping Project

Applicant

North Norfolk District Council

Request

£1,080,000

Summary of Proposal - The Bacton to Walcott Sandscaping Project seeks to protect

Bacton Gas Terminal and the adjacent villages from coastal erosion by an innovative

Dutch ‘Sandscaping’ method. Large volumes of sediment (1.5-1.8 M cubic metres) will be

placed on the beaches in front of the soft cliffs to protect the area’s sea defences from

damage. The project cost is £17-20m and it is scalable, with the higher cost enabling more

sand to be poured and better protection. The private sector (Bacton Terminal) is

contributing £12.2-13.4m and £6.5m is coming from various public sector sources. The

contribution from the LEP would help the project reach optimum size.

Outputs



1,258 jobs secured



222 homes protected from flooding



Project supports 230 businesses and £51 million of annual GVA

In addition the flat sand beach created could attract sand yachts, kite surfing etc and boost

the tourist economy.

Strategic fit - The Economic Strategy recognises Bacton Gas Terminal as “a major

component of UK energy infrastructure, providing one third of the UK gas supply, making it

an essential component in ensuring the future energy security of the UK.” It also says that

“Infrastructure improvements underpin all our priority places and themes [including] Flood

defences that unlock or protect housing and commercial development.”

Deliverability of Project

This is a very sophisticated project with an international consultant team and subject to the

rigorous EA Green Book appraisal process. It is expected to receive Outline Business

Case approval in early 2018, leading to completion of detailed design and consents. The

project would start in Spring 2019 and take 4 months to complete. Even if the programme

were to slip, it should still be possible to draw down LEP funding in 2018-19.

Additionality

As this is a flood defence project, it largely safeguards existing activity and the additionality

in terms of increased economic activity is poor. For this reason, the government assesses

flood defence projects in terms of activity safeguarded, which is a more appropriate

measure. For this project, the “do nothing” option is to put a third of the UK gas supply at

risk. More guidance is set out in EA’s “Guidance for Risk Management Authorities” (Feb

2014)

Value for money

To obtain OBC approval the project will have to demonstrate a BCR in excess of 1:1. The

bid states that it is estimated as a minimum of 1:1.34 and could be as high as 1:6

State Aid Compliance

More detailed due diligence will be required but the state aid position appears to be

acceptable.

Comments

This project has national importance, is deliverable and will pass the government’s own

additionality test before proceeding. There is a slight concern about state aid although the

risk of challenge appears very slight.

Recommendation

Approve, subject to due diligence, particularly on state aid issues.

Cefas Research Centre

Project

CEFAS Marine Science Hub

Applicant

Department for Environment, Food & Rural Affairs

Request

£1,400,000

Summary of Proposal - To provide a long-term, fit-for-purpose marine science facility that

will secure the Centre for Environment, Fisheries and Aquaculture Science (CEFAS) in the

region for the next 40 years. Defra have considered a range of national alternatives. The

project will deliver:

- The replacement of Victorian, 1930’s and 1960’s buildings with a modern, fit for

purpose facility saving £2m per annum in capital and running costs;

- Scientific operations will be greatly enhance as physical interactions are enabled

driving innovations;

- Significant image and brand enhancement to better attract global customers and staff;

Outputs

 Safeguard 450 CEFAS jobs



3200m2 of new office space



5300m2 of refurbished laboratory and office space



12-15 apprenticeships per annum



50 immediate subcontractor jobs

Strategic fit - CEFAS is specifically referenced in both the SEP and the Economic

Strategy. Its presence in Lowestoft is seen as a vital component of the Life sciences

cluster which includes University of East Anglia and Norwich Research Park with two

major UK life science centres in the John Innes Centre and Sainsbury Laboratory. This

project secures CEFAS in Lowestoft. Their presence provides a critical mass to the

ambition for a Life Sciences cluster.

Deliverability of Project - the project appears to be in the advance stages of preparation,

though final costings are now expected by April 2018. The application states the following

have been obtained / secured:



Full planning permission approved in July 2017



Defra funding



Experienced contractor appointed



A fully developed business case



Designs developed to RIBA stage 3

This information is taken at face value for now but each should be evidenced if an award is

to be made.

Additionality

- While no new jobs, or dwellings will result from this project, the

application does state that this project will support CEFAS Lowestoft with potential for 10-

20% growth over coming years. The 34,000 additional sqft could play a role in this though

as the project includes the demolition of the former grand hotel building and ancillary

buildings it is not clear how much net additional space is being created.

Value for money - The development of a more modern and fit-for purpose working

environment and facility to support the 440 skilled jobs directly supported by CEFAS are

vital to this area of Norfolk and Suffolk. Two minor points require confirmation before the

final offer is released:



.No breakdown of the build costs was included in the application. The project appears

to deliver a cost per sqm of new or refurbished spaced for £1,800 which is acceptable.

However further review is needed on the refurbishment costs in particular, to be clear

on the extent of works being undertaken and the added value generated by the

refurbished space.

 The project also includes the demolition of the former grand hotel building and ancillary

buildings. It is not clear from the application how much net additional space is being

created.

State Aid Compliance - As a government agency housed in a building owned by a

government department, it is assumed that any public funding would be state aid

compliant.

Comments - CEFAS is a world class centre for marine science, research and

sustainability and is a key player in the economic offer of Norfolk and Suffolk. The LEP

considers CEFAS to be a strategic partner in the delivery of the outcomes contained in its

Economic Strategy, and believes that the CEFAS’ expansion plans involve an attractive

and progressive design very much in keeping with the wider regeneration of the Lowestoft

sea front. The development of a more modern and fit-for purpose working environment is

vital to this area of Norfolk and Suffolk. New Anglia LEP held the June Board meeting at

the current CEFAS building.

Recommendations - This project is supportable subject to final due diligence.

Appendix 2 Appraisal Process

New Anglia LEP Strategic Prioritisation Framework - key areas

 Strategic Fit

Consideration of whether the aim of the project is referenced in the Economic Strategy. Also

consideration of national economic development policy priorities, particularly those in the

Autumn Budget 2017 and the Industrial Strategy White Paper.

 Deliverability

The main criterion was whether the project was sufficiently well advanced to draw down LEP

funding in 2018/19 and to complete by 2020/21 as the Call required. Key indicators of

deliverability included:

o Planning consent and land acquisition in place

o Other funding being committed

o A well-developed business case

 Additionality

Projects should be able to demonstrate the addition of measurable direct outputs

corresponding to those in the Economic Strategy - such as jobs, houses, or Gross Value

Added (GVA) increase.

 Economic Impact and VfM.

Ideally the outputs should be converted to a monetary value such as GVA and compared

with the cost to obtain the Net Present Value of the intervention. The exception is transport

projects for which a Benefit:Cost Ratio (BCR) is used.

Call for Projects criteria

In addition to the strategic prioritisation framework, projects have been assessed in line with

the key criteria outlined in the Call for Projects paper from October board including:

Capital Growth Programme Core outputs

 Connectivity- investing in essential projects and assets that improve the infrastructure

and which create a modern, mobile, accessible future-proof digital connected

economy.

 Unlocking Growth- investing in infrastructure that unlocks or protects housing or

commercial developments in our key growth locations.

 Investing in skills- investing in projects that deliver the higher level skills needed to

drive growth across our economy with a particular emphasis on our ‘innovation’ and

‘enabling’ sectors,

Key project assessment criteria

 Whether the need for the project has been clearly demonstrated

 Evidence of option appraisal and business case

 How well the project meets the priorities of the Economic Strategy

 How well the project fits with local and sub-regional plans and priorities

 Potential for alternative funding, partnering and joint schemes

 Estimated costs with level of detail to reflect the current stage of the project

 Potential of the project to contribute to economic growth

 Potential of the project to achieve payback

 How likely the project is to be successful

 How risks will be managed and mitigated

 Economic outputs and impacts created by the project

 How the benefits of the project will be sustained after LEP funding finished

Further Appraisal techniques used in the assessment of the projects:

 Justification of local economic need

 Evidence of failure in commercial markets

 Viability gaps for development of sites

 Opportunity to accelerate delivery of development

 State Aid

New Anglia Local Enterprise Partnership Board

Wednesday 17^th January 2018

Agenda Item 8

Voluntary and Community Sector Prize Challenge Fund

Author: Iain Dunnett

Recommendation

The Board are asked to:

1. Note the commitment of Norfolk and Suffolk Community Foundations in seeking

further public/private match funding for the Voluntary and Community Sector (VCSE)

Prize Challenge Fund.

2. To agree the re-scoping of the criteria for the fund as described in this paper.

3. To agree that the LEP makes the further commitment of a £250,000 grant from the

Growing Places Fund for 2018/19 and to agree to review further commitments for two

years beyond 2018/19 at an appropriate stage.

4. To agree that two LEP Board Members are selected to sit on the Funds Appraisal

Panel.

Background

In 2014 the New Anglia LEP Board approved a grant of £500,000 from the Growing Places

Fund to develop the VCSE Prize Challenge Fund for the sector.

By working in partnership with the Norfolk and Suffolk Community Foundations the

programme has been able to support ready for work and employment initiatives developed

by VCSE organisations operating across both counties. The funding was split evenly over

three years from 2014 to 17.

The VCSE Prize Challenge Fund was designed to;

 Meet employability outcomes by providing grants to grassroots VCSE

organisations.

 Enable them to support people furthest from the labour market towards becoming

work ready or into employment.

 Encourage innovation in the VCSE around employability and skills.

The model deployed included annual grants of £20,000 per annum awarded to 8 VCSE

sector applicants, with the facility to award further investment of £25,000 later in the project

to the two best performing projects to help them to scale up and sustain their activity and

deliver more outputs. Those projects selected were able to demonstrate an innovative

approach to supporting those furthest from the labour market and an ability to co-invest

other funds into the programme.

The decision making progress for the allocation of grants involves an application process

overseen by the Community Foundations which includes;

 A call for projects.

 Applications being assessed by Foundation staff.

 Applications considered by an appraisal panel with LEP Board representation.

 A decision then conveyed to the organisation.

The lessons learned from the first three years are articulated below as follows:

 The VCSE has significant potential to deliver employability outcomes.

 The ‘work ready’ aspect needs more definition to enable groups to be able to report

across a spectrum of work readiness outcomes.

 The programme has attracted a good range of VCSE organisations.

Outcomes

The outcomes achieved were as follows:



227 people into employment over the three years.



628 people developed to a work ready situation.



30 projects supported in delivering employability and work outcomes.

The specific outcomes per project can be seen in Appendix A. Where there are gaps for

project results the outcome results are still awaited. Data is not available for some projects

until April for the current year projects, and June for those currently working through a year 2

award. Outputs achieved for some individual projects are lower than targets set, but this

must be viewed against the nature of the client group and extreme variations between

projects and individuals on how long it can take to achieve those outcomes, conversely this

is part of the reason to extend LEP funding to ensure the work continues with this client

group and is not a short term “funding one off”.

Although the fund was established prior to the publication of the LEP’s Economic Strategy

the fund has supported the LEP to realise ambitions within the Economic Strategy, in

particular to the development of skills in key sectors, employability and attainment

standards across Norfolk and Suffolk.

Proposal

Now the programme has successfully run for three years further work has been completed

on developing a proposal for a successor programme and re-scoping the criteria to ensure

linkage to the Industrial Strategy Key Sectors; to assist in implementing the LEP Skills Board

approved Sector Skills Plans; and supporting the LEP to realise its ambitions within the

Economic Strategy in particular to the development of skills in key sectors, employability

and attainment standards across Norfolk and Suffolk .

The LEP Board are requested to consider providing an additional £250k grant from the

Growing Places Fund to extend the programme over 2018/19, and to consider at a suitable

future stage a financial commitment for a further two years of operation, from 2018 to 2021.

This will sustain the positive employment outcomes and impact the fund has had within the

sector, and directly support the delivery of one of the key strands of the Economic Strateg -

“inclusive growth”.

As part of this continued activity the Community Foundations are seeking further

public/private match funding for the Prize Challenge Fund. It is expected that the successful

model used previously will be largely replicated and the general application criteria will be re-

used.

Re-scoping has indicated that further consideration will be given to the development of target

activities that have a high social investment value in relation to the objectives of the LEP and

the VCSE. For instance, the development of Care Farms and Care Social Enterprises,

Cooperatives/projects concerning the disposal of public assets to the voluntary and

community sector, or cultural/museum projects that have a strong volunteer/ tourism/visitor

economy benefit, would potentially be projects that both the LEP and VCSE would share an

interest in supporting.

Proposals for other elements of re-scoping the Community Challenge Fund include the

following:



Offering a two tier programme that offers opportunities for smaller, innovative VCSE

organisations as well as significant multi-year grants for larger organisations capable

of high level delivery and/ or consortium proposals.



Strengthening the links/ match funding requirement from the private sector for large

grant applicants.



In relation to “small” grants the overall targets for each year will be maintained at an

aggregate of 100 people into employment and 300 people becoming work ready.



In relation to “large” grants each application will be judged on its merits. However the

expectation will be that the larger grant awards will deliver significant results against

the new criteria.



New outcome headings will be added to the programme to develop a better

understanding of the projects effectiveness in relation to work readiness and

employment outcomes, and the projects ability to attract match funding. These new

outcome headings will be in the following areas:

1. Entered into self-employment.

2. Entered an apprenticeship.

3. Become a regular volunteer.

4. Achieved accredited qualifications.

5. Completed a work experience placement.

6. Entered or re-entered education or training.

7. Achieved increased basic skills.

8. Projects ability to attract match funding.

9. Job retention rates.

10. Cooperatives supported.

Finances

The funding required would be an allocation from this year’s LEP’s Growing Places Fund

budget. An allocation was previously agreed as part of this year’s budget and is therefore

available to invest in this project.

Recommendation:

The Board are asked to:

1. Note the commitment of Norfolk and Suffolk Community Foundations in seeking

further public/private match funding for the VCSE Prize Challenge Fund.

2. To agree the re-scoping of the criteria for the fund as described in this paper.

3. To agree that the LEP makes the further commitment of a £250,000 grant from the

Growing Places Fund for 2018/19 and to agree to review further commitments for two

years beyond 2018 at an appropriate stage.

4. To agree that two LEP Board Members are selected to sit on the Funds Appraisal

Panel.

Appendix A

Three year results monitoring report and projects are shown below. Where there are gaps

for project results the outcome results are still awaited. Data is not available for some

projects until April for the current year projects, and June for those currently working through

a year 2 award. Outputs achieved for some individual projects are lower than targets set on

a number of projects, but this must be viewed against the nature of the client group and

extreme variations between projects and individuals on how long it can take to achieve those

outcomes.

New Anglia LEP Outcomes 2014 - 2017

Suffolk

Organisation

Work Ready -

Employment -

Employment

supported

Target

Actual

Target

- Actual

Museum of East

Anglian Life (MEAL)

Suffolk Sport

Julian Support

Access Community

101

Trust

Suffolk Sport (Year 2

prize)

MEAL (Year 2 prize)

Limeskills

Headway

Pro Corda

Cook with Me

32-48

Headway (Year 2

prize)

The MIX

Suffolk Refugee

Support

Eastern Enterprise

Hub

Inspire Suffolk

Access Community

Trust

Suffolk totals:

549

335

309

134

Norfolk:

Organisation

Work Ready -

Employment -

Employment

Target

Actual

Target

- Actual

Bicycle Links

Equal Lives

GYROS

Harleston Information

Plus

Equal Lives (Year 2

prize)

St Edmunds Society

Action Community

Enterprises CIC

Purfleet Trust

Clinks Care Farm

Purfleet Trust (Year 2

prize)

Action Community

Enterprises CIC (Year

2 prize)

Voluntary Norfolk

LEAP East CIC

Workers Educational

Association

Norfolk totals:

584

293

198

New Anglia Local Enterprise Partnership Board

Wednesday 17^th January 2018

Agenda Item 9

Integrated Health and Employment Service

Author: Iain Dunnett

Summary and Recommendation

The Board are asked to:

1) Support the overall purpose of the proposal against the key LEP objectives of

employability and skills.

2) Agree match funding at a rate of £120k per annum for three years to the project to

assist in leveraging over £2million of European Social Funds (ESF). This is on a co

investment basis alongside Norfolk County Council and other organisations. The

project will have a total value of circa £5million over 3 years across a range of

funding sources.

This LEP match funding would be in the form of an allocated amount of the Growing

Places Fund which organisations delivering the project will bid into.

Background

This proposed project will be a locally Integrated Health and Employment Service (IHES)

delivering personalised support to unemployed or economically inactive people in Norfolk

with health related barriers to work. In relation to the LEPs Economic Strategy this project

has a clear ambition to “develop new approaches and remove barriers to get people back

into work, especially for those further from the job markets”.

In partnership with organisations from across Norfolk, Norfolk County Council have

developed this proposed project to address the fact that in Norfolk alone there are 55,000

people claiming working age benefits of which approximately 60% have a health related

barrier to work. More than half of current claimants of working age benefits are long term

claimants who have not been able to work for many years. The project will support over

3,000 people to move:

into work,

closer to work; and

back into engagement with education, apprenticeships and training

As a comparison to this proposal local investment aligned to ESF and focused on the

Ipswich MyGo project in Suffolk has seen a large impact on youth unemployment and

outcomes for young people seeking work. The aim with this project in Norfolk is to trial a

more wide ranging integration of services for a harder to reach group who are largely

economically inactive and not able to contribute to the local labour market or the economy.

Mainstream employment services offer very few effective interventions for this group with

complex barriers meaning that claimants with the aspiration or capacity to move back into

work cannot access the support to do so or rely heavily on oversubscribed voluntary sector

interventions. Additionally employment services do not currently engage with health

providers or deliver health related outcomes despite claimants having a health related barrier

to work; this is why an integrated approach will deliver better outcomes.

The partnership brings together voluntary sector organisations with expertise in employability

or social inclusion and health providers who offer solutions to those with physical or mental

health diagnosis. The proposal would be the first in the country to deliver within a more rural

context providing an opportunity for a local innovation to inspire new ways of working and

new mechanisms for delivering social innovation and social or economic benefits.

The proposal has been submitted to the Department of Work and Pensions (DWP) as a

stage 1 application for ESF and it is hoped that it will progress to stage 2 in early 2018 with a

project start date in Summer 2018.The proposal is currently undergoing stage 1 assessment

by DWP for its suitability to attract ESF.

Proposal

This IHES will deliver personalised support to unemployed or economically inactive people in

Norfolk with health related barriers to work e.g. physical or mental health condition, disability

(including learning disabilities). Support will focus on managing health needs within the

context of employment. Norfolk County Council will be the Accountable Body supported by a

strategic partnership of stakeholders. Delivery will be via Voluntary, Community and Social

Enterprise Sector organisations, with participants referred from Local Authorities, GPs,

Housing Associations and DWP.

Delivery organisations will employ Personal Advisers to work with participants creating

bespoke pathways to employment including one-to-one support; and flexible interventions

through a network of expert partners. In collaboration with participants and health

colleagues, Advisers will:

 Develop a support plan identifying targets and milestones.

 Engage services addressing health barriers to work.

 Assist with health condition management and personal well-being.

 Outreach via alternative engagement including arts and sports.

This activity will be funded by the ESF element secured by the partnership alongside Local

Authority match.

Advisers will also undertake referrals to services designed to address health barriers to work

and assist with health condition management in partnership with local Care Commissioning

Groups and NHS trusts, who are partners in the project. Advisers will identify opportunities to

improve participants’ ability to compete in the labour market including:

 Accredited training.

 Employability skills.

 Soft skills e.g. confidence, motivation, resilience, well-being, active living and

supported job search.

 Developing a system to link clients to employers within the LEP and Industrial

Strategy Key Sectors; to assist in implementing the LEP Skills Board approved

Sector Skills Plans; and supporting the LEP to realise its ambitions within the

Economic Strategy.

To fund this activity the voluntary sector organisations would be required to bid into the LEP

for match funding to trial client led innovations and interventions to move local residents into

work. This LEP match funding would be in the form of an allocated amount of the Growing

Places Fund which organisations delivering the project will bid into. This will be a similar

process to that currently in operation for the VCSE Challenge Fund operated by the LEP

with the support of the Norfolk and Suffolk Community Foundations. Indeed this successful

existing process may well be utilised for management of LEP funds into the new IHES

project.

The IHES will enable the LEP to continue to invest in local people and local voluntary sector

groups while adding additional rigour to the process with valuable outcomes around

additional skills and employment. This LEP funding will build directly upon the work already

completed and supported by the LEPs VCSE Challenge Fund, and the nature of this support

from the LEP can be traced through the LEPs Economic Strategy, Skills Strategy and

European Structural Investment Framework. Solutions supporting self-employment linked to

the New Anglia Growth Hub could also be explored.

Activities will be delivered over three years across Norfolk ensuring rural and urban

coverage.

Finance

To create a project of sufficient scale New Anglia LEP would be invited to be one of the

anchor co-investors in the project - not only to contribute to the drawing down of significant

ESF contributions - but importantly to secure the role of the voluntary sector in the delivery.

The proposal is that the LEP invests £120k per annum in the delivery of a 3 year project.

This will sit alongside secured local investment with a project finance profile as follows:

 LEP - £360,000

 Norfolk County Council - £360,000

 Norfolk Districts Pooled Business Rates - £350,000.

 Sport England - £100,000

 Arts Council - £100,000

 Housing Associations - £75k

 NHS/Health funding - £1.8m

 ESF £2.4m

Clinical Commissioning Groups, Housing Association and NHS match funding will be aligned

to this project to deliver the health related provision. Lastly, to support the social inclusion

and healthy living elements partners have also submitted bids with a value of £100,000 each

to Sports England and the Arts Council to wrap around the core offer. The project will have a

total value of circa £5m over 3 years.

Financial implications

The funding of this project by the LEP would be drawn from the Growing Places Fund

budgets from the three years from 18/19.

Taking into account existing commitments of £3m - there is £750,000 available in 18/19. The

commitments do not include the proposal in item 10.

For 19/20 and 20/21 there are no commitments against the annual allocations of £3.75m.

Outcomes

By integrating employment and health activity to support participants to manage health

conditions within the workplace the project expects:

36% of participants to move into work, including self-employment; and

25% of participants to move into education or training including apprenticeships.

The project will deliver a range of outcomes clearly linked to the delivery of the Economic

Strategy including:

 Increased skills levels.

 Better engagement with the local labour market.

 Reduction in skills shortages reported by employers.

 Reduced social isolation and improved economic independence.

 Improve GVA and economic outcomes for the participants.

There is an opportunity via co-investment in this proposal to develop the social impact and

value of Growth Deal investments. LEP supported projects can stimulate growth in the local

economy but the impact is greatly increased if labour market development also takes place.

The social value and innovation behind the delivery of the LEP’s investments into the local

economy can be accelerated through this project which could provide the pipeline of people

and skills required for Growth Deal supported projects.

The normal LEP monitoring process would be utilised for the projects outcomes, and these

would be complimented by shared outputs monitored by the other partners around health

and social improvement.

Summary and Recommendation:

The Board are asked to:

1) Support the overall purpose of the proposal against the key LEP objectives of

employability and skills.

2) Consider whether the LEP should provide matching finance at a rate of £120k per

annum for three years to the project to assist in leveraging over £2million of

European Social Funds (ESF). This is on a co investment basis alongside Norfolk

County Council and other organisations. The project will have a total value of

£5million over 3 years across a range of funding sources.

This LEP Match funding would be in the form of an allocated amount of the Growing

Places Fund which organisations delivering the project will bid into.

New Anglia Local Enterprise Partnership Board

Wednesday 17^th January 2018

Agenda Item 12 - Chief Executive’s Report

Author: Chris Starkie

Overview

This section provides a snapshot of main LEP team activity since the November board meeting

Annual Conversation

Doug Field Chris Starkie and colleagues from our accountable body (SCC) participated

in the annual conversation with Government officials.

The meeting is a stock check of progress being made by the LEP as well as a review of

governance, delivery and strategy. More detail can be found below.

Implementation of Governance reviews

Work continues on the implementation of both the PwC and Mary Ney reviews.

For Mary Ney - key developments have been the tweaking of a number of policies

around whistleblowing, code of conduct and confidential reporting as well as revised

forms are being circulated to board members.

More details on the Mary Ney review can be found in the table attached to this report.

Key work implementing the PwC review has been work on the membership of the boards

agreed at the November board meeting, and consultation on the structure of the boards.

More details on the PwC implementation can be found in the table attached to this report.

Growth Deal

The £3.3m legal agreement for the Ely Area Rail Enhancement Scheme to be delivered

by Network Rail has now been signed by both New Anglia LEP and GCGP LEPs and is

just awaiting Network Rail’s signature. Once in place the first £286k of funding can be

released before the end of the financial year.

Growing Places Fund

The Winerack project on Ipswich Waterfront has commenced drawdown of the £5m loan

allocated through the Growing Places Fund. The project is on target to request at least

£1.6m of the £5m loan this financial year, with £500k already released. Preparatory

works are underway at the site, with more extensive building projects set to commence

on site in February 2018.

Capital Growth Programme

The £9m call for projects for the new Capital Growth Programme produced 29 bids for

funding with a request of £49m of funding towards projects worth £183m in total. The mix

of projects included infrastructure, roads, skills and cultural projects. The projects have

been appraised by external consultants, Hewdon Consulting. More details can be found

on agenda item 7.

Communications

Media coverage in December included newspaper, TV and radio interviews to promote

the signing of contracts for work to start on the Ipswich Winerack and our work with

Britvic and Unilever in Norwich.

The new LEP website continues to develop, with a timetable for regular staff and partner

blogs now being developed to add interesting and timely content. Other new features

include showcasing the firms which hold the Youth Pledge Marque with scrolling logos,

profiles of the Growing Places Fund projects and additional governance FAQs, which are

regularly reviewed in line with our Assurance Framework and the Mary Ney review to

ensure our information is clear and, importantly, easy to find.

To increase engagement on social media, a new Linkedin company page has been set

up. Despite having a large membership, the current locked group gets very little

interaction but the new page is already popular, with regular likes, comments and sharing

of posts.

Finances

Management accounts for period ended 31 December 2017 - year to date income is

£999k with an operating surplus of just under £144k, this is ahead of budget by just

under £129k

Operating cash balance is £434k which is in line with management expectations

The LEP has received additional income from the Enterprise Zone Pot C fund. Further

details can be found in the finance paper.

LEP actions and activity

This section provides a detailed update on other activities and key issues since the November

board meeting

Annual conversation

Doug Field, Chris Starkie Louise Aynsley and Holly Field from Suffolk County Council

(our accountable body) and other LEP team members took part in the Annual

Conversation with Government in December.

The conversation was led by Hannah Rignell, acting director of BEIS London and

South East and supported by Shan Lloyd.

Hannah explained that the annual conversation was a formal process to discuss the

contribution the LEP has made towards driving local economic growth; to review LEP

governance and assurance processes; to look at progress with delivery on key local

growth programmes; and to discuss the LEP’s priorities and challenges for the year

ahead.

Hannah said that the National Audit Office report and the Mary Ney Review had placed

a stronger focus on governance.

It was therefore important that LEPs are implementing all its local policies and

continuing to improve. Hannah acknowledged that New Anglia had commissioned

PWC to carry out a review of governance and this was a good example of proactive

work to strengthen the LEP.

As well as governance, the annual conversation also covered the LEP’s delivery and

strategy, highlighting the difficulties of managing a capital programme on annual

budgets.

The LEP’s new economic strategy was also discussed and BEIS Local agreed to

support the LEP’s bid to develop an early Local Industrial Strategy.

In conclusion Hannah’s conclusion said New Anglia continued to be in the top two

LEPs in the London and South East patch: proactive, with a good culture and

continued to put forward a compelling case.

Following the meeting, the assessment of the LEP will now be subject to moderating

process to ensure all conversations are being carried out on a consistent basis.

Any issues of concern will then be fed back to the relevant LEP. We are not expecting

any issues to be fed back.

Growth Deal Government Data Submission

Since the beginning of the Growth Deal programme, the LEP has reported its outputs

to Government via an online system called ‘Logasnet’. This has now been replaced

with a comprehensive new Workbook.

The Workbook includes 23 spreadsheets and requires the input of both forecast and

actuals data from the start of the programme in April 2015 to the end of the

programme in March 2021.

It includes a ‘dashboard’ spreadsheet which draws from the various spreadsheets to

provide a summary of progress on Growth Deal spend and outputs.

The ‘dashboard’ requires sign off by the LEP Board and the Section 151 Officer from

our Accountable Body, Suffolk County Council, by 20^th January 2017.

The dashboard is quite unwieldy and difficult to print, therefore copies will be available

at the board meeting.

The LEP has target outputs for Growth Deal agreed with Government. These are:



38,750 jobs



6,800 new homes



£628m public and private sector investment



620 new apprenticeships



1190 new learners.



These numbers include indirect outputs i.e. outputs that are not directly achieved by

the project, but which should come about as a wider consequence of the project. For

example the construction of the Bury Relief Road will lead to the unlocking of land for

jobs and housing.

An update on progress towards the Growth Deal outputs, taken from the Dashboard, is

summarised below.

Output

Actual

Progress

New homes

176

44%

New jobs

177

New learners

248

91%

Match funding (‘Non-LGF Expenditure’)

£51.75m

14%

Spend this year (Apr-Sept 2017)

£1.7m

Dashboard data compared with LEP Board Performance Report

LEPs were not consulted on the format of the dashboard nor its contents and it is a far

from perfect tool. The data summarised in the Dashboard differs from outputs reported

in the monthly Growth Deal Board Performance Report (BPR).

There are three reasons for this:

1- Lag in reporting: The Dashboard is 3 months behind the data that is reported

in the BPR. This is a government set reporting period.

2- Indirect outputs not captured: The Dashboard does not collect any ‘indirect’

outputs i.e. for jobs, jobs safeguarded, homes, leverage. It therefore does not

show progress against our targets set by government.

We have agreed with government that we will provide additional targets for

direct outputs, in order to better measure our performance.

3- Different RAG rating: a different Red/ Amber/ Green (RAG) rating has been

used which measures projects against three points: delivery, finances and

reputation. We are looking to align this with our board performance reports in

future.

Recommendation to the board:

The board is invited to endorse the dashboard as required by Government

PwC Implementation

Governance Review and alignment with Economic Strategy

Following decisions made at the November LEP board regarding new committees, the

Economic Strategy steering group met on 14^th December to develop the details of the

governance consultation.

The consultation will be carried our through one to ones with key individuals and an

online form for partners to complete if they wish to input.

The priority for February’s Board will be to agree the Terms of Reference for the first

tier of the Governance structure to enable the setup of the Economic Strategy Delivery

Board, as well as revised terms of reference and membership for the Investment

Appraisal Committee, the Audit and Risk Committee and the Growing Business Fund

panel.

Once the Economic Strategy Delivery Board is in place it can drive the development of

the Economic Strategy delivery plan and lead the second phase of the Governance

review to ensure the governance structure will deliver the ambitions of the Economic

Strategy in the most effective and efficient way.

The progress report on all elements of the PwC review can be seen in the

accompanying table.

The consultation will continue to gather views and information which will enable the

Economic Strategy Delivery Board to shape the rest of the structure and make a

recommendation to the Board soon after it has been realised.

Implementation of the Economic Strategy - development of delivery plan

Partners including Local Authorities and Business have complete an online form

providing information on what activity is already underway which supports the delivery

of the Economic Strategy ambitions.

They have identified what they see the top three priorities are for the first 12 months.

Analysis of this information is underway and will help inform the development of the

high-level deliver plan.

Stakeholder Delivery Plan Consultation events will take place at the end of January in

to February. There has been a great response from business and we have increased

the number of events to cater for everyone who would like to attend.

The purpose of these events is to engage with stakeholders in heling to develop

delivery plan for the strategy along with supporting them to identify their role in

delivering the ambitions. A piolet session took place with the Norfolk Chambers of

Commerce in December, the feedback from the business attended was positive and

engaging.

There will be another LA, LEP and Growth Hub Summit with the aim to engage officers

in delivery, as well as providing an opportunity to learn how the Inclusive Growth and

Prioritisation toolkits can be used to help inform decisions and develop policy locally.

East of England Transport summit

Chris Starkie represented the LEP at a summit organised by the East of England Local

Government Association to look at options around the creation of a Sub National

Transport Body.

The meeting was also attended by local authority representatives from the region,

including Norfolk and Suffolk County Councils, as well as a number of business

representatives from organisations such as Hutchison Ports.

Sub-national Transport Bodies (STBs) have been made possible by the Government’s

devolution legislation, with four in the process of being established in England so far.

STBs are designed to fill a strategic space in transport between the Government and

LEPs and upper tier local authorities.

They have the potential to be given devolved power from Government over Highways

England roads and influence or control over rail franchises.

They are also expected to develop long term plans for infrastructure investment in their

areas.

Government will not impose STBs on areas, with the onus on STBs to form from the

bottom up.

To date Transport for the North and Midlands Connect are the most advanced. Both

have been awarded Government money to develop their proposals and are on their

way to being fully fledged STBs.

In development are England’s Economic Heartland which links Oxford with Cambridge

and Transport South East, which runs along the south coast.

The East of England meeting agreed that work should commence on developing

proposals for an East of England Transport Forum which could be developed into an

STB in its own right or to link with one of the existing STBs.

A key principle agreed was the role of LEPs alongside local authorities on the board of

the STB. Further meetings are planned over the coming weeks and the executive team

will ensure the LEP continues to play an active role in the development of proposals.

Visit by Secretary of State for Housing and Local Communities Sajid Javid

The LEP and Great Yarmouth Borough Council hosted a visit by Sajid Javid and Brexit

minister Steve Baker to Great Yarmouth.

The visit included a tour of the Beacon Park Enterprise Zone, which Mr Javid

acknowledged as being one of the best performing in the country. He saw the new

Proserve building which is a joint development by the LEP and GYBC.

Mr Baker also visited Pasta Foods in Costessey, to learn about their expansion plans

and opportunities that might be presented by Brexit.

The two ministers then hosted a round table organised by the LEP which included

local authority, education and business stakeholders. The round table covered a range

of issues from Brexit to housing, business growth and the opportunities for New Anglia

LEP to be a pilot area for a Local Industrial Strategy.

BEIS SME Round Table Event

The Department for Business, Energy and Industrial Strategy (BEIS) met with a

number of local Norfolk and Suffolk business leaders for a Round Table discussion on

Tuesday 12th December to discuss the issues and concerns they have, with a primary

focus on the EU exit, access to business support and feedback on working with

Government.

This round table also offered the opportunity to allow business to have their say and

raise and discuss other issues they feel affects them in business and government

strategies, both for their sectors and their local areas. A representative from BEIS

heard the feedback from businesses ranging from sole traders to globally trading

organisations covering sectors ranging from retail to engineering.

Those attending felt that the event was indeed a worthwhile and welcome opportunity

to speak one to one with the Government directly about a wide range of issues, which

affect them internationally, nationally and locally.

The meeting, arranged with the assistance of the New Anglia Growth Hub, New Anglia

LEP and was held at the offices of the Suffolk Chamber of Commerce.

Chancellor of the Exchequer Visit

Representatives from the New Anglia LEP attended an Ipswich Suffolk Business Club

event in Kesgrave with the Chancellor of the Exchequer Phillip Hammond being the

key note speaker. The event was well attended by up to 300 business and

Government representatives.

He spoke about Britain having a significant opportunity to transform its economy by

leading on the 4^th industrial revolution with scope and expertise to exploit new global

opportunities through embracing new technologies.

Whilst productivity and living standards were highlighted as the primary challenge,

investing in our emerging technologies and businesses will be a way of addressing this

and to develop future skills a more collaborative effort will be required. The Industrial

Strategy White Paper was referenced to provide the framework for much of this going

forward.

Greater Thetford Business Round Table

Chris Starkie and Linn Clabburn, the new Cambridge Norwich Tech Corridor manager,

participated in a business round table organised by South West Norfolk MP Elizabeth

Truss.

The round table brought together local authorities, businesses and community leaders

to discuss the future development of Thetford and opportunities presented by

investments such as the dualling of the A11, as well as the proposed extension to the

town.

The LEP is investing in road improvements in Thetford as part of the Growth Deal, has

supported as number of businesses in the town, and Thetford is a key centre in the

Cambridge Norwich Tech Corridor.

Financial Industries (Financial Industry Group):

The second annual conference of Norwich’s Financial Industry Group (FIG) was

held on 23^rd November. Over 100 people attended the event at UEA’s Business

School with some attending from outside the sector. The main topic of the evening was

innovation and attendees heard from Professor Amelia Fletcher on how this was

affecting consumers and also from Neil Garner on cashless payments. Professor

Narish Pandit presented a paper Norwich’s emerging financial cluster and Chris

Starkie presented the LEP’s new economic strategy. Based on the success of this

event the Group agreed that the conference should go ahead in 2018.

Chair Steve Davidson updated on recent activities including joint working with the

Councils and NALEP. He also discussed the work with UEA and the possibility of a

joint Executive MBA being developed with FIG in the future.

The website FIGNorwich.org is almost ready for launch and the new site will include a

Trade Directory to strengthen local links and further develop the cluster.

Britvic and Unilever update

The LEP and local authority colleagues have continued to be involved in a range of

discussions around the Britvic and Unilever sites in Norwich.

Just before Christmas Britvic confirmed that it would be going ahead with the closure

of its factory in Norwich.

In the New Year Unilever announced the outcome of its review of manufacturing at the

site.

Under the proposals Unilever’s current Norwich factory would close at the end of

2019. We propose a phased transfer of production to other sites, with the first phase

likely to begin in 2018.

The company has stated it wants to protect the historic link between Colman’s and

Norwich by retaining the production and packing of Colman’s mustard powder, the

historic mustard milling process, and mint processing in a new state-of-the-art facility in

the Norwich area, created through a new long-term partnership with a consortium of

local farmers, backed by significant investment from Unilever. The company will also

continue to source mint and mustard locally.

Manufacturing of the vast majority of the other products is planned to move to other

sites in the UK, predominantly to Unilever’s factory in Burton upon Trent in

Staffordshire, home of Marmite and Bovril. This move will take advantage of existing

land and buildings.

The proposals will affect 113 jobs in Norwich, with around 43 roles transferring to

Burton. The new milling facility near Norwich will create around 25 jobs.

The company said in a statement: “The review concluded that the proposals

announced today represent the best long-term solution for Unilever, while protecting

the historic local link between Colman’s and Norwich. Other options - including both

remaining at the existing site and building a new factory in the Norwich area - would

entail higher costs and would not be as well placed to meet future needs.”

The LEP has been in contact with Unilever and along with local authority colleagues

will be meeting with them to discuss the new milling plant, as well as support for

affected employees and to start a discussion about the future of the site. We are also

speaking with Britvic regarding their closure plans and support for staff.

Recommendations

The board is invited to endorse the dashboard as required by Government

The board is invited to note the contents of this report.

Mary Ney Review - Implementation Plan

January 2018

Key

No.

Recommendation

New

Action

Deadlines

Culture and Accountability

New

The new assurance statement has been completed as

Complete by

The National Assurance Framework to require a brief formal

part of the Annual Conversation which took place in

end of Apr

assurance statement on an annual basis from the leadership of

December 2017.

2018

the LEP - i.e. the chair and CEO on the status of governance and

To be published on the website following the conclusion

transparency within their organisation and which can be explored

of the Annual Conversation Process as per

in greater detail during the Annual Conversation with Government.

Government guidelines.

To be published on the website.

Culture and Accountability

New

New Anglia LEP standards of conduct policy has been

Complete

The current Assurance Framework requirement for LEPs to have

updated to include reference to Nolan principles and

a standards of conduct policy that all board members and staff

has been published on the website.

life to be adopted as the basis for this policy.

Structure and decision making

Existing LEP policy and processes already comply with

Complete by

The National Assurance Framework should draw explicit attention

this recommendation. PwC review will, however, ensure

end of Feb

to the importance of LEP decision making structures

this area is further strengthened beyond the minimum

2018.

accommodating these separate components of good governance

required by the Ney review.

and that they form an essential part of assurance and ensuring

In addition we will cross check with Government

probity.

guidance when published to ensure compliance.

Structure and decision making

Existing LEP policies and processes already comply

Complete by

Local Assurance Frameworks should set out that all decisions

with this recommendation. PwC review will ensure that

end of Feb

must be subject to the normal business case, evaluation and

this area is further strengthened beyond the minimum

2018.

scrutiny arrangements. There must be a written report with the

required by Ney review.

opportunity for the Section 151 officer to provide comments, that

In addition we will cross check with Government

the conflict of interests policy will apply to decision makers

guidance when published to ensure compliance.

regardless of whether there is a formal meeting, and that

decisions should be recorded and published in the normal way.

Conflicts of Interest

The standard Register of Interest form has been

Complete by

All board members taking personal responsibility for declaring

received and will be issued to Board Members for

28^th Feb

their interests and avoiding perceptions of bias.

completion.

2018.

This should be evidenced by producing and signing of their

Use of a bespoke proforma for collection and publication of the

information which ensures that all categories of interest are

systematically considered.

Categories of interest to included employment, directorships,

significant shareholdings, membership of organisations, gifts and

hospitality, sponsorship. Interests of Household members also to

be considered.

Action in relation to any declared interests applies to any

involvement with the work of the LEP and is to be recorded.

Conflicts of interest

Existing LEP conflicts of interest policy already covers

Complete

LEPs to include in their local statements how scenarios of

this. This was reviewed at the Annual Conversation in

potential conflicts of interest will be managed whilst ensuring input

December and no further amendments were required.

from their areas of expertise in developing strategies and decision

making without impacting on good governance.

Complaints

New

The complaints and whistleblowing policies have been

Complete

LEPs to publish a whistleblowing policy and arrangements for

reviewed upon receipt of the Best Practise Guidelines.

confidential reporting of allegations of untoward concerns by third

Minor amendments have been identified and the

parties/ the public.

policies have been updated.

Section 151 Officers

New

Completed as part of the Annual Conversation in

Complete

The National Assurance Framework to set a requirement for the

December 2017.

Section 151 officer to provide a report on their work for the LEP

and a requirement to identify any issues of concern on

governance and transparency.

10.

Transparency

The LEP Board is already compliant, but new

Complete by

National Assurance Framework to provide additional guidance of

requirements are being rolled out to the relevant sub-

end of Feb

publication of agendas, meeting papers and decisions.

boards as per Government guidelines.

2018.

11.

Transparency

New

Our accounts are already published. Rolling schedule

Complete by

LEP to publish its accounts and to keep on its website a rolling

of funded projects has been developed as part of our

end of Feb

schedule of funded projects.

website relaunch.

2018.

Agenda Item 12

Review of our Governance and Operations - Recommendations and Implementation Plan

Recommendation

Rating

Owner

Way Forward

Status

Next Steps

Board

Review the options available to the board to ensure transitional

 Chair to have discussion with

Pure

Shortlisting underway

High

Board

arrangements are made for the handover of activities currently

individual board members.

Executive

with interviews

undertaken by the existing chair. Options may include one or a

 Organisation to be reviewed -

appointed for

scheduled for

combination of the following:

CEO / COO roles to be agreed

COO

January/February



Re-allocation of strategic and representative duties to other Board

recruitment

members.



Creation of the position of a Deputy Chair(s)



Or creation of a new executive position focused on delivery of some of

the activities currently undertaken by the Chair.

Undertake a review of the current committees and groups,

Once economic strategy published

November

Consultation on details

Medium

Exec

including their roles and responsibilities, in order to simplify the

in October:

Board

is underway

governance structure of the organisation and to improve the

 Review committees, sub-board

agreed

transparency of the decision making process. In particular,

and groups to ensure they align

changes to

consideration should be made with respect to:

with priorities

IAC and



Creation of a single Investment Committee, responsible for

 Design reporting structure for

P&R, created

assessment of all investment proposals (perhaps with the exception of

committees, sub-board and

Economic

the Micro Grant bids);

groups

Strategy



Review the purpose of the Performance and Risk Committee within

Board and

NALEP governance structure and clarify the rationale for the Board

Audit & Risk

Members attendance at the Committee. This should include

Committee

consideration if the committee should continue to operate as a Board

Committee or a management group.



Review the quality of the Committee outputs for the Board to ensure

the Board has clarity over the Committee’s activities.

Review the focus of the Board, including the Board papers, to

Medium

Board

Chair to work with Exec team to

Complete

ensure balance between providing strategic focus and vision to

align Board meetings with

NALEP and reviewing operational matters and decisions. Review the

ambitions detailed in economic

format and content of the Board papers and management information

strategy

reported to the Board in order to increase quality of the Board

reporting.

1 of 6

Agenda Item 12

Review of our Governance and Operations - Recommendations and Implementation Plan

Recommendation

Rating

Owner

Way Forward

Status

Next Steps

Develop a register of decisions, with particular focus on funding

Medium

Exec

 Determine scope and

On track

Under development as

decisions. Develop a scheme of delegation for the Board, sub-boards

timeframe of decisions to

part of

and committees and the executive team. Review the annual Board

include on register

Recommendation 2.

planning calendar to establish key decision points for the Board, while

 Prepare register of decisions

ensuring flexibility for decision making is maintained.

(Recommendation repeated in Governance section)

Ensure that there is a process in place to escalate and address

Medium

Board

Chair to prepare paper for Board

Complete

issues of persistent non-attendance and lack of engagement, that

discussion on deputisation.

may result in skills shortages at the Board. Deputisation should

continue to be considered unacceptable.

Develop a Board Member handbook that would provide new Board

Medium

Exec

 Discuss current process with

On track

HR manager to

members with guidance on the operations of the Board and NALEP,

new Board members and

discuss process with

the governance structures and decision making. This should include

incorporate lessons learnt into

new Directors in early

the explanation of NALEP duties for meeting the requirements for

process going forward

2018.

appropriate spending of public funds and ensuring value for money,

and the list of the Nolan principles.

You may also wish to consider a rehearsal or implementation of

Medium

Exec

 Review need for Board

standard Board effectiveness training as well as a practical training

effectiveness training once new

session for those in a scrutiny role. This could ensure greater

organisation, committee and

consistency of understanding between members from differing

reporting structure is in place

backgrounds (private / public / education).

Governance

Undertake a comprehensive review of the Assurance Framework

High

Board/

Once economic strategy published

On track

Updated Assurance

to ensure that it reflects the organisational structure and provides a

Exec

in October

framework required by

clear and transparent view of the decision making process at NALEP.

 Review committees, sub-board

Government by

and groups to ensure they align

February 2018

with priorities and update

Assurance Framework

2 of 6

Agenda Item 12

Review of our Governance and Operations - Recommendations and Implementation Plan

Recommendation

Rating

Owner

Way Forward

Status

Next Steps

9. Formalise the reporting process from the sub-committees,

High

Board/

Once economic strategy published

On track

Under development as

boards and groups to the Board on the activities undertaken by

Exec

in October

part of

those bodies. Such updates can range from a regular formal update

 Review committees, sub-board

Recommendation 2.

papers with request to scrutinise and approve decisions, to an annual

and groups to ensure they align

or bi-annual presentation on activities undertaken by the sector

with priorities

groups.

 Design reporting structure for

committees, sub-board and

groups

10.The formal risk management process, as outlined in the

High

Board

 Review risk register in light of

On track

Get volunteers from

Assurance Framework, should be validated by the Board. This will

new economic strategy

Board to participate on

include clarity over the aggregation and escalation of risk. A routine

 Create a task / finish group to

task / finish group

and dynamic assessment of risk should be implemented (quarterly

include members of the

reviews by the Board are considered good practice). Part of this

Executive and Board to agree

exercise should include horizon scanning and the identification of

format of risk reporting

current and future mitigation activities as well as assurances obtained.

The annual development of a risk derived assurance map will allow

the Board focus resources as required. A succinct format of reporting

risks should be developed and agreed with the Board to ensure

strategic focus is maintained.

11. Clearly define a NALEP scheme of delegation. Articulate the

Medium

Component part of reviewing

On track

Under development as

change management process, including the need for re-submission to

committees, sub-board and groups

part of

the Board in case of significant changes to the approved Growth Deal

to ensure they align with priorities

Recommendation 2.

schemes.

12. Review the governance arrangements for NALEP representation

Low

Component part of reviewing

On Track

Agenda item at

on the New Anglia Capital board, and the feedback mechanism to

committees, sub-board and groups

January board.

update NALEP Board on the New Anglia Capital activities on regular

to ensure they align with priorities

basis (currently monthly).

13.

Low

Chair to prepare paper for Board

On Track

Board discussion on

In future, NALEP may wish to consider opening the Board

discussion on transparency

transparency

meetings to public, or operating a public forum system enabling

scheduled Q3 2018

public to ask questions relevant to the Board agenda. However, any

such changes need to be assessed, and may require a restructure of

the Board agenda and papers in order to protect confidential

information.

3 of 6

Agenda Item 12

Review of our Governance and Operations - Recommendations and Implementation Plan

Recommendation

Rating

Owner

Way Forward

Status

Next Steps

Organisation

14. While we appreciate there are differences between the different types

High

Exec

New appraisal mechanism being

On track

Investment Approval

of funding provided by NALEP, the existing appraisal processes

developed as part of Economic

Committee approved

should be reviewed in order to seek synergies and improve

Strategy implementation

at November Board.

efficiency. The existing funding appraisal documentation should be

Under development as

reviewed and further developed to identify clear criteria for the bids

part of

assessment, including clear requirements for assessment of value for

Recommendation 2.

money.

15. The creation of a new structure should be considered in order to

High

Organisation to be reviewed - CEO

Complete

provide total focus on the design and implementation of the strategic

/ COO roles to be agreed

vision. In turn this will enable the Board to move away from input into

LEP operations and re-focus on strategic leadership of the

organisation. (also recommended in team section)

16. Develop a more detailed (and where feasible, standardised)

Medium

Exec

New appraisal mechanism being

To be

Under development as

methodology for the project identification, commissioning,

developed as part of Economic

completed in

part of

appraisal and prioritisation, including clear criteria for ensuring

Strategy implementation

line with the

Recommendation 2.

value for money is robustly scrutinised during the project assessment.

Mary Ney

Review the existing project pipeline to ensure the proposed projects

Review

clearly identify how they meet value for money criteria. Develop

methodology for benefits realisation assessment for projects that have

been completed for Growth Deal but also for projects funded from

other LEP funds.

4 of 6

Agenda Item 12

Review of our Governance and Operations - Recommendations and Implementation Plan

Recommendation

Rating

Owner

Way Forward

Status

Next Steps

17. We recommend NALEP executive team:

Medium

Exec

Chair to work with exec team on

See Forward

New board papers

 Reviews the format of the Business Performance reporting in order to

format of new board papers and

Programme

begin being introduced

summarise and simplify the programme reporting, with a succinct

integrated dashboards

during remainder of

report for the Board supported by further detail in the report appendix.

2017

 Develops an integrated business dashboard which will provide

overview of the project positions and outline key matters for the Board

to focus on. It which would include information on the Growth Deal and

other funding programmes, but also on the status of the project

pipeline and the outputs measured for the funded projects. The

dashboard should be linked to the strategic objectives, and could

provide further analysis for the high profile programmes (such as the

Growth Deal transport or skills projects).

 Develops a financial dashboard could show the financial position of

NALEP and performance against the budget, but also show available

funding and future spending profiles.

18. Develop a more detailed methodology for RAG rating and escalation

Medium

New appraisal mechanism being

See Forward

Under development as

of issues with individual projects. The methodology should include

developed as part of Economic

Programme

part of

robust quantitative assessment of changes such as delays to key

Strategy implementation

Recommendation 2.

milestones and impact on completion, changes to spend profile and

re-profiling of funding across financial years, changes to outputs and

predicted benefits, and cumulative impact.

Linkage to the risk management system is encouraged for good

practice.

19. Confirm with the Board the methodology for escalation of slippages to

Medium

Component part of reviewing

On Track

Under development as

the Board’s attention.

committees, sub-board and groups

part of Item 2.

to ensure they align with priorities

20. The Board and Exec team should consider both the skills mix and

Medium

Exec

Approach to recruitment already in

Complete

backgrounds of individuals as part of any new recruitment exercises to

place with a policy recruitment

ensure a mix of private and public sector experience is achieved.

policy designed to attract recruits

Whilst there are wider issues with recruitment from the private sector

from a mix of backgrounds

(e.g. pay rates), this should help to ensure that there continues to be a

rich mix of experience within the Executive team as the LEP grows

further.

5 of 6

New Anglia Local Enterprise Partnership Board

Wednesday 17^th January 2018

Agenda Item 13

Finance Report

Author: Keith Spanton

Summary

This report provides board members with an update from the finance department on the LEP’s

finances to the period ending 31 December 2017. The report includes confidential appendices:

Appendix A - core management accounts period ended 30 November 2017

Appendix B - core management accounts period ended 31 December 2017

Appendix C - core monthly and year to date graphs

Appendix D - Balance sheet extract to 31 December 2017

Management accounts

The LEP’s core income and expenditure accounts and graphs for the month ended

31 December 2017 are shown in confidential appendices A, B and C.

30 November 2017

Headline figures for the eight months are: Total income £875,201 of which £498,667 represents

core contribution, with recharges and other income of £376,535 making up the balance. Costs

to 30 November total £757,818 leaving a surplus of £117,383, ahead of budget by £110,059.

31 December 2017

Headline figures for nine months are: Total income £999,082 of which £561,000 represents

core contribution with recharges and other income of £438,082 making up the balance. Costs to

31 December total £855,143 leaving a surplus of £143,939, ahead of budget by £128,789.

This is ahead of management expectations. This is due to some delays in the recruitment of

new staff, however these posts are almost filled with the final roles being occupied early 2018.

Some planned project costs have also been delayed which will materialise over the remaining

three months.

Further detail of the accounts and some of the larger variances will be explained at the board

meeting.

Balance Sheet

Confidential appendix D is a balance sheet extract which details loans issued through the

Growing Places Fund and the LEP’s bank balances for the financial period ending

December 2017. Loans issued and still to be repaid total £9.189m and these are listed along

with their respective long stop dates. The total of the bank balances is £49.107m with the

majority being the Growth Deal and Growing Places, being held by Suffolk County Council on

our behalf. The Growth Deal is an annualised spend programme so the majority of the funds

will be defrayed before 31 March 2018.

Enterprise Zone - LEP Challenge Fund “Pot C”

The six original Enterprise zones sites are continuing to create new businesses, jobs and as a

result generating business rates income. As part of the Memorandum of Understanding

between the LEP, Great Yarmouth and Waveney District authorities, the LEP currently receives

55% of this income as part of its Challenge Fund - Pot C.

Previously this income has been used to help both local authorities with their set-up costs. It

has also supported some of the LEP’s operational costs and projects. In its 2015/16 budget the

LEP agreed for £140,000 to be allocated for this use.

As anticipated the increase in business in the enterprise zone is now starting to generate

additional business rates income.

The LEP has now agreed the 2016/17 figures with Waveney District and as a result December

2017 management accounts shows additional income of £228,300. Further income is also

expected from Great Yarmouth for the two Norfolk sites, this may provide an additional

£400,000. The final figure will be agreed in this financial year.

Given the uncertainty about final income amounts because of the complexity and volatility of

the business rate system the LEP executive opted to take a cautious approach with regard to

the spending of this income. However as this income is now being realised the LEP executive is

preparing a range of options which will be incorporated in the LEP Budget presented to the

March 2018 board meeting.

Recommendation

The board is invited to note the contents of the report.