Agenda item

Joint Report of the Assistant Chief Executive and the Corporate Director of Regeneration and Economic Development – SPP and Resources Manager, Regeneration and Economic Development.

The Chairman introduced the SPP and Resources Manager, Regeneration and Economic Development, Ray Brewis to speak to Members in relation to the recommendations that had come from the Members’ Reference Group that had looked at the Impact of Changes in Government Funding and Policy on the Economy of County Durham (for copy see file of minutes).

The SPP and Resources Manager, reminded Members that the Reference Group had made 6 recommendations, with 2 of those being the regular reporting and follow up against recommendations at Committee.  Councillors noted that the County Durham Economic Partnership (CDEP) Data Management Group were working to get better data against 5 key measures of success in terms of the economy, the main measure being job creation and the County had seen the beginning of improvements to the economy, however, there was a lag and significant gaps to narrow in comparison to the national picture.  Councillors noted interventions that utilised funding from the European Union (EU), Local Enterprise Partnership (LEP) and the North East Combined Authority (NECA), albeit the current funding levels were significantly lower than those pre-recession.  It was added that County Durham had the largest proportion of European Growth Fund (EGF) within the region (40% of the allocation) a number of projects being within Durham City including: North Road; Millburngate House; The Gates and at the sites of former Council Offices across the County.  It was explained that other projects included the expansion of NETPark at Sedgefield and the Rail Station at Horden.

The Committee noted that, working with partners, the Council was looking to influence and access as many funding mechanisms as possible and provide the maximum benefit for County Durham.  It was noted that DCC had good Member representation with the DCC Leader, Councillor S Henig being Chairman of the NECA, Vice-Chairman of the LEP and other DCC Portfolio Holders and senior Members representing the Authority on the NECA and other regional bodies.

The SPP and Resources Manager concluded by noting that guidance had not yet been received as regards the EU Operational Programme and the Single Growth Fund was just awaiting the final hurdles being cleared.

The Chairman thanked the SPP and Resources Manager and asked Members for their questions on the update.

Councillors asked as regards: DCC having match funding in place; any time-limits on funding relating to Employability and Skills; and any impact of the EU not recognising the role of the LEP.

The SPP and Resources Manager explained that match funding would have to be confirmed after EU funding was confirmed, though it was noted that LEP and DCC Capital funds would be utilised where appropriate.  It was explained that funding relating to Employability and Skills were allocated to a 6 year programme, with a 3 year period after to complete any programmes, and while there was a delay of approximately 1 year, this time allowed for high quality plans to be prepared, which should in turn lead to quicker delivery.  The SPP and Resources Manager explained that while the EU did not recognise the LEPs, Central Government would oversee EU funding, delegating to CAs and concerns as regards EU not recognising LEPs had been raised with Government.

Resolved:

(i)          That the report be noted.

(ii)         That the Economy and Enterprise Overview and Scrutiny Committee receive a further report detailing progress made against the recommendations contained in the Members’ Reference Group review report at a future meeting.