Issue - meetings

The purpose of this report is to seek Council approval to the formal adoption of the Growth Incentive proposals and the subsequent pooling of business rates across the West of England Enterprise Areas and Enterprise Zone.

The Council considered a report seeking approval to the formal adoption of the Growth Incentive proposals and the subsequent pooling of business rates across the West of England Enterprise Areas and Enterprise Zone.

On a motion from Councillor Paul Crossley, seconded by Councillor Patrick Anketell-Jones, it was

RESOLVED

1.  To approve the pooling of business rates across the 4 West of England Authorities for the designated fiscal boundaries of the Enterprise Areas (together with the Enterprise Zone) for 25 years, as set out in the report on the basis of the Growth Incentive proposals;

2.  To approve the operation of the business rates pool and funding arrangements on the basis of the Tier 1, 2 and 3 parameters as set out in the report;

3.  To delegate to the Chief Executive, in consultation with the Group Leaders, authority to finalise the detail of the proposals, following central government due-diligence; and

4.  To delegate to the Divisional Director of Finance (S151), in consultation with the Monitoring Officer and Resource lead Members, authority to finalise the detailed elements and operation of the pooling arrangements and associated elements of the Growth Incentive proposal including the necessary legal documentation.

[Note; The above resolution was carried with all Councillors voting in favour except for one abstention.]

There will be a presentation on this item at the meeting, the presentation is attached for information.

Andrew Pate, Strategic Director Resources, introduced the report and gave a presentation to the Panel on the following:

·  West of England City Region Deal – Growth Incentive Summary

·  Business Rates Pool

·  Pool distribution

·  Economic Development Fund

·  £1bn Economic Development Fund

·  EDF Governance

The Director explained that there would be a report to Council in July and that it would also be reported to each Unitary Authority and then to the LEP Board (Local Enterprise Partnership).

The Panel raised the following points and asked the following questions:

Councillor Bull asked if all the projects had to be in the five enterprise areas. Tim Richens, Divisional Director Finance and the Strategic Director explained that it was possible that projects could be outside the areas if they can help unlock economic growth across the west of England but they explained that most of the projects would be within the enterprise areas.

Councillor Macrae asked for reassurance that other areas would be considered. The Director stated that the enterprise areas are linked to the deal and that the Council needs to consider how it invests in economic development.

Councillor Gerrish thanked the officers for the presentation and mentioned that a site in need of investment that would unlock economic development and create jobs is the Cadburys site in Keynsham which is already in the planning process. The Director explained that this is an example of the pressure that the fund might be under and that the vast majority of the fund will go into the project areas. He explained that while there may be some exceptions, the money would not be available for a project at this time as the fund needs to become established and the Authority would have to borrow in the mean time.

Councillor Myers asked if money would be available for schemes outside the area and the Director stated that there may be some money for schemes outside the areas and referred to his explanation earlier.

Councillor Roberts stated that the City Deal should be seen alongside other things such as the Core Strategy. He stated that this scheme offers an opportunity to get extra money into the area that we would not have had otherwise but the difficultly is that the designated area is the city of Bath. He added that there was a need to look at the level of commuting out of Midsomer Norton and other areas.

There was some discussion around the Core Strategy in relation to the City Deal. Councillor Bull stated that this report is concerned with the funding stream mechanism and does not affect the existing decision on the Core Strategy. The Director agreed and concluded that the City Deal does not affect the Core Strategy except that it would help to deliver it.

The Panel RESOLVED to note the report.