Agenda item

Report of the Corporate Director, Regeneration and Local Services – Strategy, Policy and Partnerships Team Leader, Regeneration and Local Services.

The Chairman introduced the Strategy, Policy and Partnerships Team Leader, Heather Orton who was in attendance to give an update as regards Regional Funding, Local Growth Fund (LGF) (for copy see file of minutes).

The Strategy, Policy and Partnerships Team Leader noted that she would update Members in terms of Rounds 1 and 2 of the LGF and access to Round 3, with details to follow in the Chancellor’s Autumn Statement.

Members were reminded that since 2014 the LGF was a single competitive funding pot, with bids being placed by Local Enterprise Partnerships (LEPs), with projects looking to support infrastructure, business and housing development through collaboration between Local Authorities and business.  It was added that the project pipeline submitted by the NELEP was developed to support economic growth and was in line with the North East Strategic Economic Plan (SEP).  Members noted that Rounds 1 and 2 represented £320 million for the NELEP with an estimated £500 million of additional funding being levered-in, supporting approximately 5,000 additional jobs.  The Committee noted that the NELEP had various calls inviting project proposals and highlighted Table 6 within the report setting out the Round 1 and 2 Durham County Council LGF Projects: Infrastructure for Forrest Park; NETPark Infrastructure Phase 3; Horden Rail Station; NETPark Explorer; Auckland Castle Welcome Building and Infrastructure Works; and the Durham City Incubator.  It was added that projects were included within the Regeneration and Local Service Capital Programme in terms of forecasting and match funding.  Members were reminded that NELEP schemes, while extending beyond County Durham, would have economic benefit for the County.  Councillors were reminded of other projects led by partners including: National Centre for Healthcare Photonics Stage 1 and 2; and Rural Skills Development, via East Durham College.

It terms of Round 3, the Strategy, Policy and Partnerships Team Leader explained that it was open to all LEPs with no area being entitled to a particular share of funding.  It was added that Government had asked for a prioritised list of potential projects and this was looked at by Local Authorities, the North East Combined Authority (NECA) and NELEP and submitted to the Department for Business, Innovation and Skills (BIS) this week.  Members noted that the proposals listed as priorities included redevelopment of North Road in Durham City and the Integra 61 development at Bowburn.

Councillors noted that DCC would continue to monitor and manage its project pipeline and look to develop full business cases and development plans in due course, should projects be successful.

The Chairman thanked the Strategy, Policy and Partnerships Team Leader and asked Members for their questions.

Councillor J Clare asked for clarification in terms of which projects had been submitted on the prioritised list, was it just those mentioned.  It was reiterated they were those mentioned, North Road and Integra 61, simply at the time of production of the Committee Report this had not been known.  It was added that those not on the prioritised list maybe possible within a longer project pipeline.

The Chairman asked who set the list and the Strategy, Policy and Partnerships Team Leader reiterated that it was developed in line with the SEP, however it was ultimately a decision from Government in terms of those that would be successful, with Government looking at those projects that would support job creation and economic growth, while being deliverable and providing value for money.  The Chairman added that it was important that it was not simply a case of looking at what projects were easily deliverable, rather those that were able to support our economy, noting information from Scrutiny at NECA in terms of supporting 6,000 jobs.  The Chairman asked how potential benefits were qualified and quantified, for example by looking at GVA.  The Strategy, Policy and Partnerships Team Leader explained that each business case was assessed, however, the NELEP would look at the global benefits and it was highlighted that future evaluation of projects would be very important.

Mr T Batson noted he felt that the process of allocating funding should be business led. The Strategy, Policy and Partnerships Team Leader explained that as the NELEP led on this, the process was led by the public sector and business working together.

Councillor J Armstrong asked as regards projects, such as the Western Relief Road, that had not featured on the prioritised list.  The Strategy, Policy and Partnerships Team Leader noted that projects which had not been put on the prioritised list would remain on the long-list for 2019 onward.

Resolved:   

That the report be noted.