Agenda item

Report of the Head of Economy, Enterprise & Skills (EE/16/1) on progress with the creation of an Enterprise Zone in East Devon covering Growth points, seeking endorsement of the proposed Memorandum of Understanding with Government and the development of governance arrangements and an implementation plan, attached.

The Corporate Services Scrutiny Committee had on 27 June 2016 considered the findings of its Spotlight Review (CS/16/22) on this matter in parallel with an earlier Report from the Head of Economy and Enterprise (EE/16/10),  examining the potential effects of setting up an Enterprise Zone and resolved:

‘(a) that the Committee tentatively supports the proposals for an East Devon & Exeter Enterprise Zone, in particular, the potential to drive the local economy, notwithstanding its concerns over the lack of financial assistance from Government and the role of the Local Enterprise Partnership in the Governance arrangements, and the unequal application of methods to stimulate growth throughout the County; and

(b) that, in light a (a), the Committee strongly believes that robust Governance arrangements will be key in this proposal and recommends that Cabinet satisfies itself that such arrangements are in the best interests of both the County Council and East Devon District Council.’

(Councillors Brazil, Connett, Greenslade, Julian, Owen and Westlake attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the Head of Economy, Enterprise & Skills (EE/16/1) on progress with the creation of an Enterprise Zone in East Devon covering existing Growth Points, seeking endorsement of the proposed Memorandum of Understanding with Government and the development of governance arrangements and proposed implementation plan.

The Cabinet noted that the Corporate Services Scrutiny Committee had previously, in June 2016, considered the findings of its Spotlight Review (CS/16/22) on this matter in parallel with an earlier Report from the Head of Economy and Enterprise (EE/16/10), examining the potential effects of setting up an Enterprise Zone, and had resolved:

‘(a) that the Committee tentatively supports the proposals for an East Devon & Exeter Enterprise Zone, in particular, the potential to drive the local economy, notwithstanding its concerns over the lack of financial assistance from Government and the role of the Local Enterprise Partnership in the Governance arrangements, and the unequal application of methods to stimulate growth throughout the County; and

(b) that, in light a (a), the Committee strongly believes that robust Governance arrangements will be key in this proposal and recommends that Cabinet satisfies itself that such arrangements are in the best interests of both the County Council and East Devon District Council.’

The Head of Service’s Report summarised  the work undertaken in relation to 4 sites in East Devon District (Skypark, Science Park, Cranbrook and Airport Business Park extension) that would constitute the Exeter and East Devon Enterprise Zone; identifying the decisions needed to bring the Zone to fruition.   Members acknowledged that an Enterprise Zone could, potentially, capitalise on existing economic development initiatives and accelerate  delivery of key strategic sites in the Growth Point area; it was felt to be vital both in attracting inward investment and supporting the development of new jobs and businesses but also in supporting sustainable growth of cutting edge technology and developing centres of excellence.

In the Head of Service’s view, the work undertaken in the preceding 6 months demonstrated the strong financial case for introducing a Zone.  The provisions of both the Memorandum of Understanding, including its financial safeguards, and the Business Rates Relief policy would provide a robust framework for ensuring the designation would facilitate that accelerated delivery of new economic activity.  Moreover and as a landowner not only would the County Council have an interest and direct role in ensuring the proposed constituent sites benefited from the potential funding  available through the creation of an Enterprise Zone but would, potentially, also benefit from increased capital receipts in the Zone, thereby generating additional revenues to reinvest in employment space in other areas of the County.

The Cabinet also noted the receipt of representations received suggesting the inclusion of the area encompassing the Exeter Gateway Office Park within the proposed Enterprise Zone which was still under discussion and similar comments relating to the impact of any Enterprise Zone on economic development activity in adjoining Councils' areas.  The Head of Service confirmed that discussions were continuing with a number of Councils about economic development/strategic planning in line with the Council’s overall objectives which it was felt complemented the creation of an Enterprise Zone as now proposed.

While no formal Impact Assessment had been undertaken at this stage the Cabinet was assured that, in the fulfilment of its  Public Sector Equality Duty, all works undertaken within, or as a result of Enterprise Zone status would be subject to statutory Environmental Impact Assessments (EIA) and Habitat Regulation Assessments where required.  Notwithstanding that position,  the Head of Service opined that schemes would make a positive impact on the wider community through improving the economy of the area. 

The matter having been debated and the options and/or alternatives and other relevant factors (e.g. financial, sustainability, carbon impact, risk management, equality and legal considerations and Public Health impact) set out in the Head of Service’s Report and/or referred to above having been considered:

It was MOVED by Councillor Leadbetter, SECONDED by Councillor Hart, and

RESOLVED

(a) that the support of and comments from the Corporate Services Scrutiny Committee be welcomed;

(b) that the detailed analysis set out in Report EE/16/10 demonstrating the financial case for introducing an Enterprise Zone in East Devon be noted;

(c) that the Chief Executive be authorised to sign the Memorandum of Understanding with Government set out at Appendix I to Report  EES/16/1;

(d) that the County Treasurer and the Head of Economy, Enterprise and Skills be authorised to agree any amendments to the Business Rates Relief policy set out at Appendix II to Report  EES/16/1;

(e) that the Head of Economy, Enterprise & Skills be authorised, in consultation with the Cabinet Member for Economy, Growth & Cabinet Liaison for Exeter, to agree the Implementation Plan and the County Solicitor be also authorised, in consultation with the Leader of the Council and Chief Executive, to agree the proposed governance arrangements  and to execute all necessary document required to give effect to this proposal.