new anglia local enterprise partnership board meeting · 5. managing director’s report • sep...

New Anglia Local Enterprise Partnership Board Meeting

Thursday 24th November 2016

10.00am to 12.30pm Hethel Engineering Centre, Chapman Way, Hethel, Norfolk, NR14 8FB

Agenda

1. Welcome

15 mins 2. Apologies

3. Declarations of Interest

4. Actions / Minutes from the last meeting

5. Devolution update 30 mins

6. Managing Director’s report incl. CONFIDENTIAL Brexit business intelligence log

25 mins

7. 24 month operational plan progress report 15 mins

8. Business Performance Reports 10 mins

9. Finance report 10 mins

10. Growth Deal spend update report 20 mins

11. LEP Investment Appraisal Committee – CONFIDENTIAL 20 mins

12. Any Other Business 10 mins

Date and time of next meeting: Wednesday 18th January 2017, 10am to 12.30pm Keystone Innovation Centre, Croxton Road, Thetford

New Anglia Board Meeting Minutes (Unconfirmed) 19th October 2016

Actions from the meeting: (19.10.16)

Item No: 5. Managing Director’s Report

• SEP Ambitions Dashboard – The LEP team to further develop the dashboard including commentary and progress chart which is to be circulated ahead of the next board meeting.

6. Business Performance Reports • Growing Places Fund – A timeline/priority be added to the projects, as well as a table

breakdown as per Growth Deal report. 9. New Anglia Enterprise Zones The Enterprise Zone team to report on jobs target with a breakdown between new jobs and retained jobs.

LiR

CD

MS

Present:

Cllr David Ellesmere (DE) Ipswich Borough Council

Doug Field (DF) East of England Co-op Cllr John Griffiths (JG) St Edmundsbury Borough Council

Cllr Cliff Jordan (CJ) Norfolk County Council

Cllr Colin Noble (CN) Suffolk County Council

Steve Oliver (SO) MLM Group Mark Pendlington (MP) Anglian Water (Chair)

Cllr Andrew Proctor (AP) Broadland District Council

Lindsey Rix (LR) Aviva General Insurance

Dr Nikos Savvas (NS) West Suffolk College Jeanette Wheeler (JW) Birketts

Dr Tim Whitley (TW) BT

In attendance:

Chris Dashper (CD) New Anglia LEP Iain Dunnett (ID) New Anglia LEP

Hayley Mace (HM) New Anglia LEP

Fiona McDiarmid (FM) Norfolk County Council

Charley Purves (CP) New Anglia LEP Lisa Roberts (LiR) New Anglia LEP

Sue Roper (SR) Suffolk County Council

Keith Spanton (KS) New Anglia LEP

Mark Stanton (MS) New Anglia LEP Chris Starkie (CS) New Anglia LEP

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1 Welcome from the Chairman

Mark Pendlington (MP) welcomed everyone to the meeting and introduced Roger Wright, Chief Executive, Snape Maltings, who welcomed the board to the venue. Roger provided background information to the site and detail of future development. Roger also thanked the LEP for the support given to the Cultural Board.

2 Apologies

Mark Goodall Aker Solutions

Shan Lloyd BEIS

Prof David Richardson UEA

Davina Tanner Britannia Enterprises

Cllr Alan Waters Norwich City Council

3 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: • None.

4 Minutes of last meeting 27th September 2016

Actions of the last meeting updated as follows:

5. Managing Director’s Report • Industrial Strategy – A copy of the submission drafted by CS to the BIS Select

Committee investigation into the industrial strategy has been circulated to the Board.

• MIPIM – A copy of the MIPIM programme, key messages and visuals of the stands were shared with the board.

• RAF Marham - An action plan is expected imminently and will be shared as soon as possible.

• Companies in Financial Difficulties – An internal document is to be drafted and discussions are underway to get this in place.

7. Growth Deal • Details of projects have been retained on the Growth Deal Dashboard and progress

reflected in October’s Business Performance Report.

8. Productivity Commission • This was discussed at the Innovation Board and further discussions to take place and

feedback to the LEP team.

10. Business Performance Reports • Sectors – Board members have been invited to the launch of Culture Drives Growth on

2 November at The Jerwood Dance House, Ipswich.

The minutes were accepted as a true record of the meeting held on 27th September 2016.

5 Managing Director’s Report

Chris Starkie (CS) introduced this item taking the paper as read and highlighted the following:

• SEP Ambitions Dashboard was circulated at the meeting, this is a quarterly document. Lisa

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http://www.newanglia.co.uk/about-us/the-board/

Roberts (LiR) talked through the dashboard, explaining the targets set out from the Strategic Economic Plan (SEP). The New Business target is under performing due to delays from the EU programmes but should even out in the next two quarters. There is also a time lag in reporting on new business. Discussion took place around the figures and how this is presented, including how the downturn in the economy is affecting targets. The board also requested further emphasis on how the LEP is influencing the figures. The LEP team to further develop the dashboard including commentary and progress chart which is to be circulated ahead of the next board meeting.

• Ely Junction Taskforce is continuing to develop the business case and the plan for Ely as a whole. This is highlighted in Greater Cambridge Greater Peterborough (GCGP) Growth Deal 3 as a priority project. New Anglia has also identified this as a priority for the area.

• GEML franchise was launched this week and Mark reported back on details of the commitments for improved track, trains and stations.

• Transport – the Permanent Secretary of State for the Department of Transport recently visited the site of the Northern Distributor Road, then went on to Ipswich to understand the improvements required around the town and surrounding area, this was a good opportunity to inform government of the integrated transport strategy and further work

• Bernard Matthews – 243 companies have been adversely affected by the sell-off of the company, the Growth Hub and economic development officers are working to proactively support these companies. Unfortunately Broadland District Council have not been able to get in contact with the company.

The Board agreed: • To note the contents of the report.

LiR

6 Business Performance Reports

• Growth Deal – Growth Deal 3 should be announced around the time of the Autumn Statement. £98m was bid for, though £50m would be a good result. Chris Dashper (CD) provided an overview of the additional information provided in the BPR. CS also detailed the mitigating factors on the underspend and the freedoms and flexibilities. Lowestoft and Great Yarmouth Colleges now has a joint principal and progress is now being made on the project.

• Growth Programme – the figures remain static due to the reporting system, though the report for November board will catch up. Promotion of the schemes is being increased.

• Growing Places Fund – the pipeline projects list provides oversight of the wider interest. The board requested a timeline/priority be added to the projects, as well as a table breakdown as per Growth Deal report.

The Board agreed • To note the content of the reports.

CD

7 Finance Report

The Finance Report was presented by Keith Spanton (KS) covering September 2016. Actual income of £483,849 ahead of budget, with expenditure £459,230. The final charges for MIPIM have also come through in September which is why Marketing & Events shows a deficit. However, projected figures for the year remain ahead of budget.

The Board agreed • To note the content of the report.

8 Devolution Report

CS detailed the requirement to ratify the draft order for the combined mayoral authority. The board agreed to an additional board meeting for this to be discussed 12pm 23rd November by

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teleconference.

The Board agreed: • To note the content of the report.

• To an additional board meeting to be held 23rd November at 12pm by teleconference.

9 New Anglia Enterprise Zones – Progress on Delivery

Mark Stanton (MS) provided a presentation of the Enterprise Zones for New Anglia. MS detailed the work undertaken by the team in pulling together the legal documents and partners to underpin the Enterprise Zones. MS also went on to detail the sites, the opportunities and the offer for businesses. The board was provided with a breakdown of the EZ business rates pots and how the retained rates are split.

Progress on the Enterprise Zones will be monitored and reported to the board through bimonthly BPRs and further reports from the EZ team. Targets have been worked on with a realistic stretch and we are the only LEP who has not revised our targets down. Jobs target will be shown as a breakdown between new jobs and retained jobs.

Issues around the marketing include an inaccuracy with the size of the Sproughton site and there is no mention of assisted area status. These are being worked on for a future print run of the brochure. The draft implementation plan also holds some inaccuracies which will be corrected.

Further marketing opportunities are being explored and each site has a marketing strategy and will work with similar sites where necessary. Events and opportunities are being explored to ensure representation.

The Growth Hub team and other partners are kept appraised of the sites and developments to ensure companies can be supported and ensure growth opportunities.

MP thanked MS for the presentation and the wider EZ team for their work.

The Board agreed • To note the content of the presentation.

MS

10 LEP Capital Investment Proposal Report – CONFIDENTIAL

The Board agreed: • To the principal of the LEP utilizing capital funding from the GPF and EZ Acceleration Fund to

co-invest in capital schemes.

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11 Updating the Strategic Economic Plan Report

This paper was taken as read and requests approval for the LEP to lead on the update of the SEP. Work has already begun to identify the evidence base and local plans which will help underpin and inform the SEP.

Doug Field (DF) requested that dedicated strategy sessions take place for the board to properly consider all elements.

The Board agreed: • To the LEP leading on an update of the Strategic Economic Plan for the LEP and the mayoral

combined authority.

• The board agreed to the request for dedicated strategy sessions to support the developmentof the SEP.

12 Any Other Business

None.

Date and time of next meeting: Additional meeting: Wednesday 23rd November 2016 12pm to 1pm by teleconference.

Thursday 24th November 2016, 10.00am to 12.30pm at Hethel Engineering Centre, Norwich.

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Actions from New Anglia LEP Board Meetings

Date of Meeting

Item No Action Update Actioned By

Date Status

19-Oct-16 5. Managing Directors Report

SEP Ambitions Dashboard - The LEP team to further develop the dashboard including commentary and progress chart which is to be circulated ahead of the next board meeting.

Circulated to Board members on 15.11.16

LiR/LA 15.11.16 Completed

19-Oct-16 6. Business Performance Reports

Growing Places Fund - A timeline/priority be added to the projects, as well as a table breakdown as per Growth Deal report.

CD/ID Ongoing

19-Oct-16 New Anglia Enterprise Zones

The Enterprise Zone team to report on jobs target with a breakdown between new jobs and retained jobs.

BPR updated MS/EE 16.11.16 Completed

27-Sep-16 5. Managing Directors Report

A copy of the submission drafted by CS to the BIS Select Committee investigation into the industrial strategy will be circulated to the Board.


CS 4.10.16 Completed


A copy of the MIPIM programme, key messages and visuals of the stands to be circulated to Board members in advance of the event on 19-21 October.


MC 4.10.16 Completed


An action plan to highlight the growth potential of RAF Marham to be created and targets set by the middle/end of October.

CS Ongoing


Hayley Mace and Chris Dashper to liaise with the support of Lindsey Rix and the Investment Appraisal Committee to establish a strategy of support as to how information can be published for companies to access and encourage those experiencing financial difficulty to engage at an early stage.

HM / CD / LR

Ongoing

27-Sep-16 7. Growth Deal Details of pipeline projects to be retained on the Growth Deal Dashboard and progress reflected in October’s Business Performance Report.

October BPR updated accordingly. CD 12.10.16 Completed

27-Sep-16 8. Productivity Commission

Productivity Commission to be discussed at the forthcoming Innovation Board on 10 October with feedback to be reported to the Board.

Discussed and updated TW / DR / LR

Completed

27-Sep-16 10. Business Performance Reports

Sectors – Board members to be invited to the launch of Culture Drives Growth on 2 November at The Jerwood Dance House, Ipswich.

Invitation issued to Board members and local MP's on 30.9.16.

MC 30.9.16 Completed

20-Jul-16 6. Devolution Executive team to continue to update board members over the summer period with details of any developments on the devolution deal.

MP has been keeping board members informed

MP 31.8.16 Completed

20-Jul-16 8. SEP Impact Report Comments or challenges to the SEP impact report to be sent to LiR as soon as possible to enable this to be launched at the September AGM.

Deadline passed All 31.8.16 Completed

20-Jul-16 8. SEP Impact Report Ambitions Dashboard to be revisited to ensure figures around Productivity are clearer.

Completed LiR 31.8.16 Completed

20-Jul-16 12. AOB Companies in Administration

A formal policy to be considered by the executive team and brought to the September board meeting for board approval.

Paper included for September board meeting

CS 20.9.16 Completed

23-Mar-16 12. Register of Interests

All Board members to complete and return ROI if still outstanding

Reminder issued to those outstanding. Register published on website updated 16.11.16

LA/CP Ongoing

New Anglia Local Enterprise Partnership Board Thursday 24th November 2016 Agenda Item 6 - Managing Director’s Report Author: Chris Starkie

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

Growth Deal Three: Indicative allocations received from Government. Two ranges of funding have been given. If a devolution deal is agreed New Anglia’s allocation will be between £65m- £75m. If no devolution deal is agreed the allocation will be between £45m - £55m. Ranges have been provided as there are a number of factors still to be agreed, including the amount of funding on offer.

Public announcement of allocations is likely to happen after the Autumn Statement, it is not clear exactly when it will be. In anticipation of an award, work has started on developing the Growth Deal three implementation plan.

Growth Deal Assurance Framework: Government has published the revised National Assurance Framework guidance and asked LEPs to update theirs by February 2017. This has been incorporated as a condition of funding future Growth Deals in the grant offer letters. Our current assurance framework already addresses a good number of the changes and new elements required. Work has commenced on ensuring our Assurance Framework fully complies.

Growth Deal annual conversation: During December BEIS will lead formal conversation with all LEPs to review progress on Growth Deal delivery over the previous year and to confirm LEP’s ambitions for the following year. Ours is scheduled for 12th December.

Area Review: The LEP has been leading on developing the economic evidence pack for the Area Review of our colleges. The review will assess local economic and education needs and the implications for post-16 education and training provision to make sure that college education meets the needs of learners and employers. The outcomes will form an implementation plan to establish the best depth and breadth of provision for both students and local businesses. The work, which is part of a national review process, will be led by a steering group, chaired by Dr Peter Funnell, Director of Oakmere Solutions Ltd, past president of Suffolk Chamber of Commerce and member of the LEPs Skills Board. The first meeting is on 7th December and the work will conclude in March 2017. Growing Places Fund: (Confidential)

Growing Business Fund: Interest levels increasing in Growing Business Fund again- December panel meeting is likely to consider a number of new applications, some of which will help to increase spend levels on the programme before the end of the current financial year.

Agritech: Discussions are anticipated about further funding from New Anglia LEP Growth Deal towards the programme and expansion of the geographical coverage to incorporate an additional LEP area.

Oil and Gas Taskforce: Further enquiries received for the Oil and Gas Taskforce, taking the total enquiries to 29, with a further project receiving grant assistance. Growth Programme: Growth Hub manager John Stenhouse left the Growth Hub first week of November 2016. Temporary arrangements are now in place to manage the

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delivery of the Growth Hub whilst a replacement manager is recruited. All other adviser posts have now been filled. All vacancies in the LEP ERDF delivery team are also now filled. Delivery of the Micro Grant Scheme is also now underway, with the first few project approvals made.

Growth Deal 1&2: Growth Deal spend is increasing, with a number of transport claims received in November. Considerable spend profiled for quarters 3 and 4, with the majority of grant offers now in place. New Anglia Capital: November pitching event included a number of potential projects for consideration by the New Anglia Capital board at their next meeting on 22 November, including investment opportunities from the advanced engineering, med-tech and digital creative sectors. Devolution has continued to generate significant media coverage and enquiries. Stakeholder engagement on this topic has also involved presentations at council meetings and collating letters from businesses in support of the proposals.

A number of project launches have also generated positive media coverage, including the Fabric First Institute, the Culture Drives Growth strategy launch event and the launch of the Cambridge Norwich Tech Corridor.

We were one of more than 25 LEPs to receive enquiries from the Daily Mail regarding LEP board decisions and perceived conflicts of interest. We have responded to the questions with assurance and explanation that there have not been any conflicts of interest.

Management accounts for 31 October 16 – year to date income is £569k with an operating surplus of £25k which is slightly ahead of budget by £9k

Operating cash balance is £268k 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.

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LEP actions and activity This section provides a detailed update on other activities and key issues since the October board meeting

MIPIM MIPIM UK took place at Olympia, London, for three days in October. The neighbouring Norfolk and Suffolk stands both carried The East branding and showcased investment opportunities across the region.

Staffed by representatives from local authorities, New Anglia LEP and business ambassadors, the stands were located centrally in the show hall and were highly visible. An investment prospectus for opportunities across Norfolk and Suffolk, Invest East was created for the event, which can be downloaded from a new page on the LEP website.

On the second day of the exhibition, the Suffolk stand hosted a reception to highlight business opportunities in Ipswich. This was well attended by delegates who heard from Ipswich Borough Council's David Ellesmere, Ipswich MP Ben Gummer, New Anglia LEP's Chris Starkie and Sean McMillan, chief executive of Ipswich-based Spirit Yachts.

The primary objective of attendance was to generate leads with investors, developers and property professionals from the UK and internationally to invest in the East. Early feedback has been good, with approximately 150 leads generated, which are currently being followed up by Local Authority and LEP staff. A full evaluation report will be written once all leads have been followed-up and assessed.

Cambridge Norwich Tech Corridor The Launch of the Cambridge Norwich Tech Corridor was held on the 8th November at the Houses of Parliament. Speakers included The Rt Hon Elizabeth Truss, Mark Pendlington, Aslam Farrakulah (Lotus) and Adrian Cannard (GCGP) to an audience of over 60 stakeholders.

Prior to the launch, this initiative was also well received at the MIPIM event attracting the interest of a number of key investors.

As a signatory of the MOU for the Corridor, representatives from the New Anglia LEP board will join colleagues from Local Authorities and GCGP for the next stakeholder meeting which is due to be held on the 28th November at the Hethel Engineering Centre.

The purpose of the corridor is to bring partners together from the private and public sectors to develop a cohesive development offer along the corridor, from Cambridge to Norwich. The project will help promote and bring forward development sites along the corridor such as the business parks at Mildenhall and Red Lodge, Thetford, Snetterton, Hethel and Norwich.

Brexit update and monitoring The LEP is continuing to develop a network of partners to help collect local intelligence on the ‘mood’ of business as Brexit issues continue to emerge and the Government’s plans start to clarify. We are keen to develop a thorough understanding of the positive and negative impacts of Brexit, and how businesses are responding to this. Whilst we are yet to have confirmation from all partners invited to participate in this exercise, the response has been reasonable and we have started to collect some valuable intelligence.

The attached (confidential) spreadsheet summarises the intelligence that has been gathered to date. As would be expected, issues covered are various, and will develop over time. The Board are invited to make suggestions on the format of this information and any changes that would add value to the local understanding of Brexit implications.

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http://www.newanglia.co.uk/investeast/

http://www.newanglia.co.uk/investeast/

On 1st November, Lord Bridges, Parliamentary Under Secretary of State for the Department for Exiting the European Union, met with a small group of businesses in Suffolk, hosted jointly by the LEP and Suffolk Chamber.

The purpose of the visit was to hear first-hand accounts of Brexit-related matters that are currently concerning rural business and their priorities for a post-EU economic landscape. The Minister was very attentive and whilst he was unable to report anything other than the key messages in the public domain, he was very much in listening mode and held a constructive discussion with attendees.

Issues to arise were broad and various, and focused on issues such as migrant labour, skills, EU funding, international trade (import and export), competition, exchange rate fluctuations and consistency in business and product standards.

Following Board agreement, the LEP Executive has agreed with the East of England European Partnership (Brussels Office) to commission some research on the EU funding landscape and how this may be impacted post-Brexit. This information will be a useful tool in helping to lobby Government for continued investment in the regions. We expect the results of this work to be presented to the Board in February.

LEP Innovation Board The Innovation Board held a workshop on 10th October to explore and agree the LEP areas unique innovation strengths, USPs, areas of competitive advantage and priorities to help shape the development of a New Anglia Innovation Strategy.

The workshop was facilitated by colleagues from the Governments Knowledge Transfer Network (KTN), Smart Specialisation Hub and Innovate UK and supported by the Head of Strategy and The Head of Enterprise Zones and Innovation.

The workshop concentrated on mapping and analysing the LEP areas Innovation assets and business strengths identified under the broad headings of Life Sciences, ICT, Energy and Quality of Place. Reassuringly, these were the same strengths identified in the previous work undertaken by Shared Intelligence last year.

A further Innovation Board meeting took place on November 1st to discuss the main outcomes of the facilitated workshop. The Board agreed with the Chairman that the Innovation Strategy should focus on two main strands; (i) how we can help existing businesses to innovate, and (ii) how de articulate our USPs and strengths to attract new business. The Board is now developing a framework for the Strategy and undertaking work to provide an evidence base so a first draft Innovation Strategy can be produced early next year.

RAF Mildenhall Steering Group The five week public consultation on the Vision and Prospectus for RAF Mildenhall closed on 11th October. The consultation included an online survey (paper versions also provided), two press releases, a social media campaign, two public drop-in sessions and a Chamber of Commerce event.

The consultation responses have now been analysed and the most common comments/concerns related to a desire for the site to be used as a regional airport; concerns around the infrastructure not being able to cope with thousands of new homes; the planned housing being too close to the runway; whether the site could be developed, given its contamination; and, the question over whether there was a need for another industrial estate, given that there are empty units in Mildenhall now.

The Vision and Prospectus for the site have been updated to reflect the consultation feedback and to provide clarity around the concerns raised. The final version is attached for the LEP Board’s consideration. This is being considered by Forest Heath District Council’s Full Council on 22nd November and at Suffolk County Council’s Cabinet meeting in December.

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Bernard Matthews Following the discussion regarding the takeover of Bernard Matthews, Chris Starkie met with the senior director at Bernard Matthews, David Joll. Mr Joll also met with Phil Kirby and Andrew Proctor from Broadland District Council.

Following the meeting an update was circulated to all board members and Chris Starkie also wrote to all MPs, including Keith Simpson, in whose constituency the company’s head office is located.

A number of the MPs including Mr Simpson have now made arrangements to meet with the company to discuss prospects following the takeover.

Culture Drives Growth The role of the cultural sector in driving economic growth for the region was highlighted at the launch of Culture Drives Growth at The Jerwood DanceHouse in Ipswich, 2 November. The strategy was launched by Darren Henley, Chief Executive of the Arts Council of England and Mark Pendlington.

The report sets out a number of objectives which will help to drive the sector’s economic, cultural and social impact, including: accelerating creative job growth, scaling cultural and creative investment, backing creative talent, increasing cultural and creative diversity, building inspiring places to live, work, visit and invest and broadening international engagement.

The New Anglia Cultural Board will now be tasked with delivering the strategy, which includes activities including securing funding to deliver StartEast - targeted, specialist business support to SMEs and start-ups in the cultural sector and attracting national cultural organisations to relocate to the East.

EEEGR House of Commons Reception The East of England Energy Group (EEEGR) with Great Yarmouth MP Brandon Lewis hosted a reception at the House of Commons on 21 October. At the reception, attendees were told there were at least 20 years’ production left in the Southern North Sea by Eric Marston, from the Oil & Gas Authority. Energy Minister Baroness Neville-Rolfe praised the work of the ‘brilliant region’ to the 200 attendees, representing small supply chain companies, major North Sea operators, wind farm developers and industry organisations, including Deirdre Michie, Chief executive of Oil & Gas UK and Peter Aldous, Waveney MP.

TechEast Embassy Launch TechEast launched its London Embassy on 1 October. The TechEast Embassy is located 4 minutes’ walk from Liverpool Street station, and is available for TechEast members to use for meetings and hot desking as part of their London business development plans. The provision of a London facility was the top requirement when potential members were consulted earlier in the year, and TechEast made it one of their six manifesto pledges.

The membership scheme includes opportunities for member companies to increase their brand visibility, networking and business development activities. In addition, TechEast provides access to discounted business services, such as legal, financial, insurance and recruitment from partners.

Launch of the Fabric First Institute The institute at Easton and Otley College was launched on 1 November. The project came about because of a need identified by Whole House Energy, who are supporting Norwich City Council in its ambitious plans to deliver homes to Passivehouse standards on a large scale.

The facility will upskill the construction workforce and train new workers in low energy building methods. It has been supported by the New Anglia Skills Deal.

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Infrastructure New Build conference Chris Starkie participated in a round table event at the Infrastructure New Build conference which took place at the Waldorf Astoria hotel in central London.

He represented the views of LEPs in a discussion around the pros and cons of the National Strategic Infrastructure Projects (NSIP) process which enables significant projects to be considered by a national planning process, with the aim of improving speed and certainty of planning decisions.

Daily Mail enquiry The communications team, along with all other LEPs, have been responding to a detailed information request from the Daily Mail.

Earlier this year New Anglia LEP provided a comprehensive list of grants awarded by the LEP since formation. The newspaper has since been in touch again asking a series of questions about a small number of the grants, which involves organisations run by board members or sector chairs.

As board members are aware, our conflicts of interest policy is rigorously enforced by the LEP executive. This means that declarations of interest are minuted at the start of each board meeting, and board members with an interest in a particular decision are forbidden from playing any part in the decision.

In addition a register of board members interests is published on the LEP website.

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

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RAF MILDENHALL VISION AND PROSPECTUS

VISION AND PROSPECTUS

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Short history of Mildenhall

Mildenhall is a small market town in West Suffolk with a history which can be traced back to Anglo-Saxon times, although there are traces of Stone Age living nearby. There were wealthy people living in the area in the 4th century as the discovery of the Roman Mildenhall Treasure showed, with a hoard of high quality, mainly large silver tableware pieces ploughed up from its hiding place in a field in 1942. These treasures are at the British Museum, with replicas on show at the Mildenhall Museum.

The manor of Mildenhall was owned by the Bury St Edmunds Abbey, which controlled law and order as well as the local wealth, for many years until it was sold following Henry VIII’s dissolution of the monasteries in 1536. A weekly market has been running since a royal charter was granted in 1412 – the 15th century Market Cross still stands in the town centre. For centuries the town served a mainly agricultural area, with its everyday life rarely featuring in national concerns.

Life in Mildenhall was to change significantly when the Government announced that a Royal Air Force base for bomber squadrons was to be built there. RAF Station Mildenhall was officially dedicated by King George V in October 1934, and immediately afterwards Mildenhall hit the international headlines when it hosted the start of the MacRobertson Trophy Air Race – an 11,300 mile race to Melbourne, Australia. The event attracted huge crowds keen to see the latest aircraft and famous flyers and put Mildenhall on the world’s map. The following year the base played host to 38 squadrons, with 370 aircraft lined up for a royal review by the King.

The Second World War (1939-45) was only six hours old when three Wellington bombers took off from RAF Mildenhall on their first bombing raid. Many more were to follow, with Wellingtons, Stirlings, Halifaxes and Lancasters becoming a familiar sight in the skies around the town, including those flown by the Royal Canadian and Royal New Zealand Air Forces at times. Two propaganda films, shown in cinemas nationwide, also used the base to show how bombers prepared for their raids.

Just after the war ended came the first major involvement of the United States Army Air Force (USAAF) with the base when B-17 Flying Fortresses arrived to take part in bomb trials. This involvement continued to grow over the following decades until the announcement in 2015 that the USVF (United States Visiting Forces) units based in Mildenhall would be moving elsewhere in 2023, leaving the site available for new uses.


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Contents

Foreword 4

Our vision 5

The need 7

Case studies and lessons 13

The lessons 14

The opportunity 15

The assessment 18

The task 26

Delivering the vision together 28

Glossary 32

Contacts 34


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Foreword

The United States Visiting Forces (USVF) have been a distinctive feature of economic life in west Suffolk for well over half a century. Whilst the increased American presence at RAF Lakenheath will ensure that the economic and cultural benefits will continue for some time to come, the communities and their representatives must now prepare for change at RAF Mildenhall.

This prospectus builds on the work that we have carried out with our communities and businesses to establish their ambitions for the site, ambitions which have been market assessed and presented as a concept showing how aviation, industry and housing can be delivered on one site. All of this has been put together to support work with Government on a plan for the site that achieves the local needs for new employment and infrastructure.

With positive collaboration across Government and the market, the departure of USVF from RAF Mildenhall brings tremendous opportunity to reshape the Mildenhall town and to improve the social, economic and physical landscape of west Suffolk and the wider sub-region. By working together we can achieve enhanced GVA accelerated through the early delivery of key infrastructure.

We envisage a future for the site that creates new high skilled jobs for local people, supported by upfront investment so that our infrastructure and services can meet the demands of the new development. We want a development that is truly mixed and sustainable; one where local people will work, live and prosper.

The task at RAF Mildenhall is urgent. Following the initial USVF departure announcements, we now need final and unequivocal decisions so we and our stakeholders can bring the plans to fruition. Our approach is long term so that money spent today will yield land value uplifts and economic benefit for many years to come. We need resourcing and funding from Government to deliver this economic regeneration of Mildenhall and wider area.

Above all, we want to deliver a focused and integrated approach with Government that builds, and responds to, a shared agenda for a new Mildenhall.

Cllr James Waters, Leader of Forest Heath District Council Cllr Colin Noble, Leader of Suffolk County Council Matthew Darroch-Thompson, Chair of Suffolk Chamber of Commerce, Newmarket & DistrictMark Pendlington, Chair of New Anglia Local Enterprise PartnershipMark Reeve, Chair of Greater Cambridge Greater Peterborough Local Enterprise Partnership


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Our vision

We believe RAF Mildenhall will be transformed into a successful mixed use, sustainable community that has aviation and employment to the north and east of the site, housing on the south and south west (and on the expansion land, and around the Mildenhall Hub) and public open space, for example a country park, separating the new housing from West Row. RAF Mildenhall and appropriate expansion land outside the wire will grow comfortably alongside the existing communities which will benefit from improved and integrated services and public realm whilst retaining their own identities.

Mildenhall will have a thriving business community that leverages the locational, physical and sectoral strengths of the site and the region. There will be room for existing local businesses to grow and we will pursue opportunities to attract inward investment in high value aviation sectors such as aerospace and aircraft maintenance and to secure occupiers attracted by the region’s existing clusters (such as agri-tech). Companies will be attracted by the region’s strengths in tourism and hospitality, its proximity – and separation – from Cambridge and the area’s exceptional quality of life.

The enlarged community will have access to a range of affordable, quality housing in a range of tenures that complements the existing stock of homes. The number and type of new houses will be appropriate to meet local needs and we will work with stakeholders to explore the opportunity for new and emerging delivery models including custom build, a range of retirement living and starter homes. With access to jobs, education and health facilities, as well

as new social and leisure facilities including formal and informal open space, Mildenhall will be a distinctive and aspirational place in which to live, work, bring up a family and retire.

Mildenhall and the wider community will benefit from investment in infrastructure that will be essential to unlock the site. New road access that avoids the centre of the town will ensure people can move around the town more easily and safely. Development of the site will provide additional weight to the business case for improvements to Fiveways roundabout and the A14/A11 junctions.

Ours is an optimistic and ambitious vision. There will be challenges to overcome: the condition of the site; the capacity of existing services and infrastructure to accommodate new development; the economic impacts as USVF shift to RAF Lakenheath; and the investment that is needed to attract, and risk-share with, new catalytic occupiers will need to be addressed. We propose to set up a governance structure that sets the standard for future communities facing similar opportunities. We will use this structure to work collaboratively with stakeholders from across Government and the private sector to find the best solutions to the challenges of delivering this vision.


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Plan shows indicative areas of focus. The scale and location of land uses may change as the site is masterplanned and will be subject to the Local Plan.

The location of any housing development will be dependent on the extent and cumulative impact of any land allocated for aviation use. We are asking the Government to protect 200 acres of the airfield land for aviation uses to be further explored.

RAF Mildenhall

The indicative outputs from the scenario shown above are as follows:

£70-100m GVA2000 Jobs2000 Homes72,000m2 Employment100Ha Public open space

Mildenhall Hub

Housing

Housing

Public Open Space

Aviation

Employment

Our vision


7

RAF Mildenhall – the story so far

01 An 80-year presence in our skies and within our communities

• Currently an operational airbase located on the edge of Mildenhall in west Suffolk, close to the borders of Cambridgeshire and Norfolk.

• Previously used as an RAF station, the site now hosts the United States Air Force.

• Along with RAF Lakenheath it forms a significant part of USVF’s presence in the UK.

02 USVF departure from RAF Mildenhall has been announced but there remains uncertainty about its future

• In January 2015 the US Department of Defense (USDoD) confirmed American forces will withdraw from RAF Mildenhall from 2023.

• At the same time, USDoD announced that RAF Lakenheath is to expand with new F-35A jets and additional personnel and that it would be investing a minimum of $120million in infrastructure construction at RAF Lakenheath to support the F-35A.

• The Ministry of Defence (MoD), which owns the RAF Mildenhall airbase, has confirmed that the airbase will be released for housing development following the US withdrawal.

• A more detailed programme for USVF withdrawal, currently scheduled from 2023 is expected by 2018.

03 Delivering local priorities

• Although the precise nature and scale of the departure remains uncertain, what is clear is that the 80-year continued presence of the RAF/USVF at RAF Mildenhall will soon be ending.

• We want to create a positive legacy for RAF Mildenhall in which it contributes to the local and regional economy and reduces the impact of the release of the site.

• The biggest fears among the local community are that the base is mothballed with no attempt at regeneration or that the site is developed as a sterile ‘commuter’ town.

04 Progress to date

• In 2015 we engaged with Government departments, including the DIO and HCA, with the aim of building consensus around a sustainable social, environmental and economic plan.

• We commissioned a study assessing the impacts of USVF in west Suffolk and neighbouring districts.

• The Government established the Mildenhall, Alconbury and Molesworth (MAM) Working Group with a remit to minimise the impacts from the departure from the three American airbases.

The need


8

• We set out the desire for a proactiveapproach to the regeneration of RAFMildenhall within the Mildenhall Place-Shaping Project Services & AssetsDelivery Plan (SADP) and we wereawarded capacity funding under OnePublic Estate Phase 3 (OPE3) in 2015.

• We engaged locally with stakeholdersincluding businesses, communityrepresentatives, partner organisations andthe West Suffolk Property Board.

• Initial discussions were held with the DIOand HCA with the intention that futureproposals and announcements for RAFMildenhall can be aligned to our agendafor a broad and collaborative responseso that the tremendous opportunities ofRAF Mildenhall are not lost. We believe acollaborative approach will deliver a betterresult for the local economy but also a larger,more certain and quicker return for DIO.

• Cushman & Wakefield were appointed toundertake a site baseline and feasibilitystudy in order to test a range of optionsfor different land uses, provide externalchallenge and commercial market-facinginsight to ensure that aspirations aredeliverable and support the creation ofour vision for the regeneration of RAFMildenhall.

Regional context

05 The current economic footprint of RAF Mildenhall is substantial and multi-faceted

• Over 80 years RAF/USVF presence.• 500 UK civilian staff are employed

in predominantly administrative,management, trade, craft and manualoccupations at RAF Mildenhall.

• RAF Mildenhall and RAF Lakenheath

account for 15,400 jobs and £690 million GVA (Gross Value Added).

• 6900 workers from RAF Mildenhall/RAF Lakenheath live off-base – a highproportion of US personnel and familiesare integrated into the local community.

06 The scale of RAF Mildenhall is virtually unprecedented and requires an appropriate national response

• 440 hectares.• It could accommodate the combined

land area of the NEC in Birmingham andBluewater Shopping Centre.

• Current and future ownership structureshould ensure long term control.

07 Mildenhall is strategically located within East Anglia, able to leverage regional strengths but vulnerable to fragile socio-economic conditions

• RAF Mildenhall is 13 miles fromNewmarket, 16 miles from Bury StEdmunds, 26 miles from Cambridge,45 miles from Norwich and 77 milesfrom London.


9

• Regional competitive advantages include composites, agriculture and quality of life.

• Economic threats include imbalanced economy and relatively weak property market in the context of stronger, more established markets with investment grade stock elsewhere in the region/country.

Local priorities

08 Forest Heath District Council has undertaken significant public and business engagement regarding the future of RAF Mildenhall including engagement sessions held to discuss local concerns and priorities which have revealed clear messages

• Concerns regarding lack of certainty about USVF withdrawal.

• Local people want clear and consistent direction and announcements.

• The local community must be properly engaged on future use options, not through press/social media speculation and rumour.

• A strong consistent message to complete the visioning and planning work in advance and avoid the site being mothballed at all costs.

• The USVF departure is seen as an opportunity to create a new vision and identity for Mildenhall.

• All options to be stringently assessed for viability and delivery.

• Advanced skills training required to support new employment.

• Learn from previous releases and development of MoD land elsewhere.

• New uses must address impacts on infrastructure and public services, especially access to the A11 through Mildenhall town centre.

A120

A12

A12

A143

A140A11

A47

A148

A149

A149

B1355

A148

A47

A10A14

A1

A14

A11

A10

A406A127

A120

A134

A13A13

A2

A2

A12

A12

A1120

A12

M2

M20

M26

M11

M25

M11M1

M25

M23

M25

M3

M3

M4

M40

M20

M11

A272

A3A22

A272 A21

A34

A322

A34

A31

A13

A2070

�

A28

A1(M)

A14

A140

A134A143

A134

A11

A1065

A406

Haverhill

Bury St Edmunds

Thetford

Brandon

Norwich

Newmarket

Mildenhall

Ely

RAF Mildenhall

Ipswich

Felixstowe

Colchester

Newhaven

Heathrow LONDON

Cambridge

RoyalTunbridge

Wells

BrightonWorthing

Chichester

Winchester

Andover

Reading

Aldershot

Portsmouth

Oxford

Eastbourne

Dover

Deal

MargateCanterbury

Folkestone

Luton

Newbury

Basingstoke

Southampton

Maidstone

Aylesbury

Stansted

Gatwick

RAF Mildenhall to: Straight Line By Road

Bury St Edmunds 13m 15.5m

Newmarket 9.2m 13.1m

Cambridge 18.5m 26.1m

Ely 9.2m 13.5m

Brandon 8.3m 11.6m

Thetford 12m 15.1m

Norwich 39.4m 45.3m


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• Strong support for continued aviation use if this is viable.

• Economic strength of Cambridge is an opportunity and a threat.

• Any new housing must be affordable with a range of tenures to sustain a balanced community.

• Avoid being a commuter town and villages and towns surrounding RAF Mildenhall to remain separate to retain their identity.

• Use the redevelopment to address the lack of health and retail facilities in Mildenhall.

• Opportunity to be self-sufficient so residents work, spend and access services in Mildenhall and surrounding area.

The required outcomes that will deliver a positive legacy

09 Building on the public engagement, we have developed a series of principles that should guide future development of RAF Mildenhall

• Support the strategic frameworks for Forest Heath District Council, Suffolk County Council, the Local Enterprise Partnerships and OPE.

• Contribute towards resolving any gaps or issues with local infrastructure, for example public transport, highways, health and education.

• Create new jobs to mitigate the impact of jobs lost as a result of the USVF departure.

• Take into consideration the expansion, and deployment of the F-35A, at RAF Lakenheath.

• Bring a significant return on investment from the A11 upgrade.

• Sustainable use of the site which brings long term benefits to west Suffolk.

10 These are reflected in the following legacy objectives which have guided the assessment of options and development of our vision

• Delivery of the principles described above.• Minimising adverse impacts of the USVF

departure from RAF Mildenhall.• Creating new employment opportunities.• Integrating new development into existing

communities.

The need for intervention

11 Redundant sites that require large scale shifts in land uses and infrastructure funding will typically have support from the public sector

In the case of RAF Mildenhall there are several factors that create a significant need for public sector intervention.

• Need for clarity over future use. It is difficult to envisage circumstances in any other sector – public or private – where an announcement to close a site of this scale would not swiftly be followed by a series of structured announcements about its future, supported by a long term plan. The precedent case studies point to a strong correlation with those sites that have had clear early planning and leadership and their ultimate success. The local engagement has also identified a real hunger from the public and local businesses for clear open communication. Mothballing the site must not be an option.

• Scale of the site. The size of the site means that the most likely scenario is that it will be developed and occupied for


11

a mix of uses over a long period. Other than for any as yet unknown Foreign Direct Investment (FDI) requirements, the site will not be occupied by a single commercial organisation on its own. Even aviation uses would require only part of the site. In order for the site’s tremendous opportunity to be realised, the public sector will have to take a strategic role in promoting and delivering the vision and coordinating the delivery of complementary land uses and occupiers across the whole site.

• Importance to the local economy. Our vision is driven fundamentally by our objective that the redevelopment has to meet local needs. We want to replace jobs with jobs to ensure a prosperous future. We estimate that our Vision has the potential to deliver at least £70 million GVA into the local economy.

• The likely need for support to optimise the continued use of the site for aviation and other uses that have strategic fit with the legacy objectives. We believe that there are grounds for optimism that aviation uses could continue but these are more likely to be in the areas of aerospace and maintenance rather than commercial passenger or cargo services. There is a need however for detailed business planning and discussion with operators in order that the most viable and deliverable mix of aerospace uses can be defined. It is possible that those aviation uses which have the strongest strategic fit and highest potential to bring value into the local economy will require investment in the infrastructure and other interventions. The public sector could have a role in supporting this activity.


12

We also make recommendations in this prospectus for the airfield and supporting infrastructure to be protected whilst aerospace uses are pursued. Promoting other employment-focused uses that have strategic fit with the legacy objectives will require public sector intervention to focus decisions not just on immediate short term value but wider social, economic and physical benefits that could be unlocked over the long term.

• Viability and land value capture. We have undertaken a high level financial assessment of a range of scenarios. As is typical at this stage of planning with strategic sites requiring significant infrastructure, all scenarios show the need for financial support. In order to meet the vision it is essential that the public sector embraces the long-term potential. Where investment in infrastructure is made it is appropriate that the public sector has a long-term view of capturing the uplifts in land value and economic benefits that would crystallise over many years.

• Safeguarding local businesses. Mildenhall and the local area contain a significant amount of local businesses with much of the commercial employment within the Mildenhall Industrial Estate. It is our fundamental objective to protect these businesses from the impacts of the USVF departure as much as possible. We see it as a role of the public sector to find an optimal position of providing additional commercial accommodation within the existing estate at RAF Mildenhall for local businesses to expand whilst enabling new strategic development to come forward.

• New uses will constrain the existing infrastructure. Access via road is limited and requires going through Mildenhall town centre. There is currently no rail or bus

access to the site. In order for the vision to be deliverable there needs to be significant infrastructure improvements. These are unlikely to be delivered by the private sector and so the public sector must intervene.

• Investing for the long term. The majority of the site challenges will not be addressed by the private sector given the substantial initial costs and limited financial returns in the short run. In contrast the public sector has the ability to fund projects over the long term making infrastructure projects increasingly viable allowing for wider area improvement and realisation of the vision.

• The build up at RAF Lakenheath. At the same time as the January 2015 announcement, the US DoD announced that RAF Lakenheath is to expand with new jets and additional personnel. The first F-35A is expected at RAF Lakenheath in 2021. The major infrastructure development at RAF Lakenheath is expected to start in 2018 with the US DoD investing a minimum of $120 million in infrastructure construction at RAF Lakenheath to support the F-35A. The build up at RAF Lakenheath and the withdrawal from RAF Mildenhall is complex and dependent on the timelines for the construction of facilities to house the departing units at their receiving bases. This will require careful planning within the public sector so that the economic benefits of the construction activity can be secured locally and that the construction capacity that is developed can be planned to be switched to RAF Mildenhall to avoid a sudden drop in activity, skills and capacity. This active co-operation between the two projects will result in greater speed and certainty during the planning process, delivering accelerated and enhanced returns.


13

23

7

5

4

8

9

6

1

4 Oakington > Northstowe• Ongoing development of new town• 10,000 new homes on 427 hectares• Awarded EZ status

3 RAF Alconbury > Alconbury Weald• 5,000 new homes• Ongoing development of former

USAF base• Located at junction of A14 and A1• Scheduled for final closure by

USAFE 2020

1 RAF Finningley > Robin Hood Airport• Redeveloped into commercial airport• Opened 2005• Cost £26 million to redevelop

8 Pfizer Sandwich > Discovery Park• Former site of Pfizer

UK research• Government

established Task Force• EZ status

2 RAF Coltishall > Scottow Moor Solar Park • EZ status• Numerous employment generating uses• Solar Park

5 BAE Hatfield• Successful redevelopment of

large former aerodrome• Located between Welwyn

and St Albans• Long term vision in

developing a strategy

7 Whitehill and Bordon• 250 of hectares of land

to be released• Clear governance through

a Delivery Board

9 RAF Manston > Kent International

Airport• Unsuccessful re-use of the

site as a commercial airportfocused on cargo and aircraftrecycling

6 Shell Haven > London Gateway• Successful redevelopment of complex

surplus site• Safeguard critical retained operations• Effective stakeholder engagement

Case studies and lessons

RAF Mildenhall

13


14

Lessons from precedent case studies

Infrastructure and accessibility

There is a strong correlation between connectivity (accessibility by road/rail/air and data connectivity) and property market activity, occupier demand and values. Northstowe is a good demonstration project with proposed improved access to A14 and a road linking the site to the Guided Busway. Coltishall has had less fundamental change, partly because it is in a relatively isolated location to the north of Norwich. RAF Finningley is succeeding as a commercial airport, albeit struggling, because it has a large catchment.

Anchor uses

Large-scale military and industrial sites lack market presence because of former uses and often as they are in poorly functioning property locations. Establishing occupier demand at scale requires investment to promote the location and to attract anchor uses and occupiers to establish focus and profile. Alconbury demonstrated that Enterprise Zones (EZ) can help. The effect of anchor occupiers was apparent at Discovery Park where Pfizer’s decision to retain some presence helped establish a supply chain from which other occupiers could benefit.

Governance and delivery

Governance has been identified across many of the case studies as being critical. At BAE Hatfield there were clear lines across stakeholders including the local MP. At Whitehill and Bordon, Discovery Park and Shell Haven, clear governance was seen as critical. It is

interesting to note that at two of the case studies the participants said that, even though governance was an ingredient of their success, they would in hindsight have brought in an even clearer governance structure earlier.

Creating a Vision

Any commercial organisation committing to the site will want to be certain that what is being offered will be delivered. Stakeholders will need to be seen as being ‘on board’ to deliver the Vision before occupiers take risks with their business. The redevelopment of the BAE Hatfield site was successful partly due to the early stage masterplan, visioning and public engagement. Alconbury is seeing dividends of sticking to its task of attracting mid tech occupiers. Conversely, the lack of clear vision at Manston contributed to its failure as an airport.

Early project planning

Sites with the scale and complexity of Mildenhall require careful and early business planning. Shell Haven’s success was partly due to early financial appraisals and market analysis to develop the exit plan as well as a detailed Technical Pack to support international marketing. The development of Whitehill and Bordon is showing that, with effective planning and analysis of market demands and constraints, a viable vision can be achieved, together with the benefit of quantifying the added value of upfront investment to create a strong business case.

The lessons


15

12 Having regard to the objectives, we have developed a preferred scenario that includes three main land uses – aviation, employment and housing. The mix of uses described below will form the basis of a more detailed masterplan assessment so that the mix, quantum and layout of uses can be optimised.

Preferred scenario: A hybrid scenario that has aviation to the north, employment adjoining the existing industrial estate, housing on the south and south west of the site (as well as on the expansion land and around the Mildenhall Hub) and public open space separating the new housing from West Row.

We have assessed two other mixed use scenarios, each with different anchor uses.

Scenario 1: Employment-led development, with a significant quantum of business space and industrial use. The business space is focused to the north of the site, with industrial to the south east. The scenario includes a reduced residential quantum, located to the south west of the site.

Scenario 2: Aviation-led development, focused on a composite aerospace centre, aircraft de-manufacturing facilities and aircraft maintenance, repair and overhaul (MRO). What land remains is assumed to be an industrial-based business park with renewable energy provision.

All scenarios envisage the Mildenhall Hub (http://mildenhallhub.info/) to the west of the existing town on the expansion land and housing development on the expansion land (outside DIO red line).

13 Key conclusions from the viability assessment

Sites that require major changes of use and infrastructure funding have often received support from the public sector. RAF Mildenhall is no exception and it is anticipated that the public sector will take a lead delivery role to enable a long-term view to delivering the site vision and maximising the identified economic and social benefits. The conclusions of the viability assessment bear out this public sector role.

• Significant infrastructure costs create a large front-loaded viability constraint for all scenarios and increase finance costs, and public sector intervention is needed in infrastructure to manage this and unlock the economic value of the project.

• The aviation and employment-led scenarios generate the highest GVA in terms of higher-skilled jobs, a key driver for the local communities and the agreed objectives.

• A scenario with significant residential will improve viability relative to the business space and aviation options which have a lower return on investment.

• It is not unusual for major schemes such as this to be considered as unviable in the early stage, especially where significant infrastructure costs are required.

The opportunity


16

• Costs and assumptions will be iterated as more information becomes available; schemes will be optimised, for example by changing mix and phasing.

• Part of the ask of Government is to work together to address how viability can be improved.

• Land values will be influenced by the condition of the site and the extent of any outstanding land contamination problems. These need to be investigated.

14 Preferred land uses

• The delivery of our vision requires a focus on creating new high-value jobs to mitigate the impact of jobs lost as a result of the USVF departure from RAF Mildenhall. Continued aviation and broader employment land uses should therefore be at the heart of the new development.

• Aviation uses have the strongest strategic fit with the existing infrastructure forming the basis of catalytic investment and activity. We have identified a range of aviation uses that have potential to be viable and deliverable at Mildenhall. The delivery of these uses will require an operator. We want to work with partners so that the opportunities can be presented to potential operators and this will give more definition to the nature of demand and the precise land take required. The aviation uses should be considered a priority, with the infrastructure safeguarded, whilst those discussions are pursued. The land to the north of the runway, and the runway itself, are considered suitable assets and the appropriate scale, subject to reviewing technical site data to be received.

• In addition to the aviation uses, the site has the potential for other employment uses. In order to develop at pace and scale the opportunity will need the public sector to support the development by providing pump-priming investment. The existing industrial base at Mildenhall and the wider strengths and clusters of the region including the Cambridge to Norwich Technology Corridor will form the basis of this growth. Land around the existing industrial estate is the optimum location for these uses.

• Housing uses will improve viability and ease the pressure on the regional housing markets. We have identified an area of land for housing development. The location of the housing development will be dependent on the extent and cumulative impact of any land allocated for aviation use. A more detailed business case and masterplan development should be completed to show land allocations in more detail.

• An area of expansion land west of the town centre and to the south of RAF Mildenhall has been identified in the Site Allocations Local Plan in order to achieve the visions and objectives of Forest Heath’s Core Strategy. This land will create opportunities to create linkages with RAF Mildenhall.

• The Mildenhall Hub will be located on this expansion land and bring a new school (Mildenhall College Academy) and improved leisure facilities together with council, health, police, fire, library, pre-school, citizens’ advice and Job Centre services on one shared site to the west of the existing town. The Mildenhall Hub is a project primarily designed to meet the current requirements of the community,


17

driven by the need to address the condition of existing facilities in the town. The Mildenhall Hub will be adaptable and expandable to complement any community facilities required as part of housing growth on the RAF Mildenhall site.

• This mix of uses is listed below and forms the basis of our vision. This is the preferred option pending the outcome of discussions with aviation operators as having the strongest fit with our objectives. GVA estimates are approximate at this stage.

Net Area (sq m) Dwellings FTE Jobs GVA (m)

Aviation 40,000 0 1200 £52

Industrial & logistics 32,000 0 770 £18

Energy generation n/a 0 0 £0

Market housing 95,200 1400 0 £0

Affordable housing 40,800 600 0 £0

Public open space n/a 0 0 £0

Total 208,000 20001 1970 £70

1

1. All houses are within the existing RAF site boundary


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The assessment15

Strengths

• Large site (440 ha): the scale gives the opportunity to create a step change

• Vacant possession

• Rapidly expanding area: Suffolk is one of UK’s fastest growing counties

• Potential for a creation of place: given the large parcel of open land

• Strategic location within East Anglia: dualled A11, A14 connections, Agri-tech, EZs, USVF presence at Lakenheath

• Cambridge growth: potential to feed off the major international hub

• Location: on the emerging Cambridge to Norfolk Technology Corridor

Weaknesses

• Location: unestablished market location

• Infrastructure constraints: limited road and rail networks serving the site

• Ecological: sensitive area

• Archaeological potential

• Challenging local economic and property conditions: relative to stronger locations with established investment markets which will impact on viability

• Some buildings are tired: nearing the end of useful life

Opportunities

• Scale: single ownership and vacant possession removes barriers

• Ecological designations: capitalise on these natural assets

• Local ambition backed by Government strategies and resources: opportunity to align input across Government to maximise the impact of interventions

• Policy whiteboard: opportunity to shape site’s future with limited policy constraints

• Airfield infrastructure: opportunity to specialise in aviation uses

• Existing buildings: potential to generate commercial income stream to cross-fund other initiatives

Threats

• Military legacy: contamination hotspots, some infrastructure/services unsuitable for new uses

• Competition: from other sites in the area that have been strategically allocated

• Limited current employment market: currently focused around primary services and accommodation and food, therefore limited existing market with scalability

• Overreach: in terms of what is deliverable and achievable on a site of such scale given the number of competitor locations/ sites


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The preferred land uses that will deliver a positive legacy

We have engaged with Cushman & Wakefield (C&W), a leading global real estate adviser, and

Infrata, a specialist aviation consultant. C&W’s advice, set out in the supporting document ‘Mildenhall Market and Visioning Report’, has informed the site baseline, feasibility study and vision for the regeneration of RAF Mildenhall.

16 A range of potential land uses options has been assessed

Sector/ theme Opportunity

Commercial Offices, business space, business incubation, data centre

Industrial, logistics

Retail and leisure Retail centre, retail boxes, retail outlet, permanent brand expo

Commercial leisure, sports

Hotel, conference centre

Tourism-related leisure

Amenity/ social infrastructure

Education, science and innovation

Education

Science, innovation

Housing Market housing

Emerging residential sectors – private rented sector, custom build, retirement, extra care

Affordable housing

Aviation Commercial air transport – passenger

Commercial air transport – cargo

General aviation – business, flight training, emergency services aviation, agricultural aviation, aerial survey

General aviation – recreational and leisure

Maintenance, repair and overhaul

Emerging sectors Energy generation – solar, wind, waste to energy

Sustainable industries manufacturing (eg turbines)

Foreign Direct Investment

Institutional (eg health, prison, other civic)

Do minimum Agricultural

Open storage


20

17 Each potential land use has been assessed against key criteria which reflect our legacy objectives and a series of delivery criteria

Legacy objectives

• Minimising adverse impacts of USVF RAF Mildenhall departure

• Creating new employment opportunities• Integrating new development into existing

communities and businesses • Delivery criteria• Planning• Market demand• Land value• Site preparation and remediation costs• Residual liabilities • Infrastructure requirements• Site suitability/competitive advantage• Delivery timetable and risks

18 The assessment has driven some key findings between land uses

Strategic fit

• The optimum mix of employment and the highest GVA is most likely to be secured through uses in high-skilled sectors such as aviation, agri-tech, education and science and innovation.

• The highest value land uses are residential and retail (small scale envisaged, in line with market norms).

• Given the scale of the site, a mixed use solution with an anchor land use is the most likely solution.

• All options involving intensification of use will require upgrades to existing public transport, highways, health and education infrastructure.

Aviation

• A review of the market potential indicates that there is very limited potential for a role as a commercial airfield given the market size and the proximity of Stansted and Norwich airports. A recent investment of £12million in an aviation academy at Norwich Airport helped to secure the airport’s future as they look to support local people to gain the skills needed to access the new jobs created by growth at the airport.

• It is important to recognise the importance of fully understanding the wider economic and commercial drivers as a failed re-use of the site as a commercial airport, similar to the RAF Manston example, would cause significant local concern.

• There is a proven ability of airports in the region to develop activity in aircraft Maintenance, Repair and Overhaul (MRO) with a major MRO centre at Cambridge (Marshalls) and an emerging civil aviation cluster based around Norwich International Airport.

• East Anglia has already developed a significant composite industry with major aerospace participation and the main research groups are active in composites.

• Whilst it would be difficult to attract a major overhaul company as their expansion is mainly in lower wage countries in eastern Europe and Asia, the ability to handle highly technical composite sections may prove useful.

• Expertise in new technologies and specialist areas such as cabin interiors could be an area of focus.

• There may be potential for aircraft de-manufacturing but more research is required within the sector. The long runway and availability of land makes Mildenhall a good long-term development option for this use relative to Norwich.


21

• In aerospace, the growing demand for lower emissions, aligned with advances in composite construction techniques, has led to a significant increase in the use of composites in civil aircraft in the last few years. This sector needs further research but Mildenhall offers some advantages.

• Modifications and cargo conversions is an increasing growth opportunity and Mildenhall’s long runway could be an advantage for larger aircraft.

• There is a substantial amount of military MRO already undertaken in the region. It is unlikely to form an anchor tenant but could be a valuable ancillary workstream.

Commercial

• Proximity to Cambridge and its science clusters presents the most obvious and tangible opportunity to attract some spin-off occupiers.

• A catalyst in terms of sector-specific focus and anchor occupier is needed to establish Mildenhall as a credible office location. Significant public sector support would be required in order to establish a market and pump prime development and we do not expect Mildenhall to become a major hub in this sector.

• IT/communications (mobile and broadband) infrastructure would require improvement.

• Demand for inexpensive start-up units is high and there are several companies who have expanded across multiple buildings on the Mildenhall Industrial Estate. Whilst not forming the anchor use, this would generate a source of recurring income and create activity on the site.

• Investment in infrastructure to improve site access will increase the potential for large-scale, national occupiers.

• Road infrastructure upgrades will be required for a development of any scale to minimise road impacts on the town of Mildenhall.

• There is some potential to build on the existing manufacturing base to provide space for high-tech specialist suppliers.

• An audit of existing buildings on the site is required so that we can safeguard some buildings that are fit for purpose, and not required for the strategic development of the vision, to be offered to local businesses.

Retail and leisure

• Retail outlet centres (eg Bicester Village) can come forward in locations such as this but catchment will not be strong enough.

• An anchor/sector driver is required in order to deliver brand expo space.

• Despite limited anticipated demand for commercial leisure or sports operators, the site could be promoted to major sports bodies.

• The provision of hotels and a conference centre could come forward if linked to other uses on the site (such as tourist facilities/business centre).

• There is some potential to build on the existing tourism-related networks and catchments, although site typography and location will limit potential.

Education, science and innovation

• Can act as a major and critical anchor if an occupier can be found.

• Local universities could be used to promote the area and site although sector-specific targeting would be the most effective and sustainable.

• Aviation hub encompassing training and technology would offer an opportunity to build on the existing skill set.

• Agri-tech may be an appropriate use and would need to complement the existing offer in the region.

• Is ideally placed to be a key site on the Cambridge to Norwich Technology Corridor.


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Housing

• The Forest Heath district currently offers greater affordability than some other areas in the Cambridge sub-region.

• Housing demand is present within the current Forest Heath market with land supply traditionally keeping pace with demand. However, a larger-scale development would require additional employment to underpin demand as well as creating a sustainable development. Any housing development must be in line with the locally assessed housing need.

• Sustainable transport links and high quality local jobs are critical to ensure that any residential development is more than commuter housing and it is plugged into the wider economy.

• The eco-awareness of Cambridge and west Suffolk positions Mildenhall to embrace a contemporary housing agenda including excellent environmental standards, design that promotes healthy lifestyles, creating communities that keep older people healthy and independent and sustainable development that meets garden community principles.

• West Suffolk has an ageing population which would serve to drive up demand for specialist housing ranging from retirement living through to extra care housing, for example allowing people with dementia to continue to live independently and safely.

Emerging sectors

• Significant support from the UK Government exists in order to improve the competitiveness of the agri-tech sector and a £160 million UK Strategy for Agricultural Technologies.

• There may be potential to create links with existing institutions such as the Norwich

Research Park (which combines four world-renowned research institutions, all of which engage in agri-tech, supported by the research at the University of East Anglia and the Norfolk and Norwich University Hospital) but this opportunity would require collaboration and intervention to attract an anchor occupier.

• In the last 20 years, energy generation and sustainable industries have been popular initiatives from the perspective of public sector support; however, in recent years, the Government has reduced the support for solar farms, where solar arrays are ground-mounted on either agricultural or brownfield land.

• Several RAF site conversions to solar farms in East Anglia include RAF Stradishall near Bury St Edmunds, purchased by Santander and one of the UK’s biggest solar farms and RAF Coltishall in Norfolk, a solar farm providing power for 10,000 homes.

• There are no known requirements for institutional or Foreign Direct Investment (FDI) uses although this should continue to be monitored.

19 Public realm

• Improved public realm offers opportunities to improve existing, and create new, pedestrian and cycle links between the site and its neighbouring communities.

• As a legacy military site there is some mature landscaping but the site is open and sparse.

• The use of high quality landscape and public realm will set the benchmark for development and impart a sense of pride in the local community. This will require improving the quality of existing open spaces with high quality materials and facilities.


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• The scale of the site also gives tremendous opportunity to create public open space which celebrates the local heathland landscape and draws people into the area.

• There are some examples of excellent public realm and landscape delivered by the private sector because they see long-term value benefits. For a site with the economics of Mildenhall this will generally not be a priority for those driven solely by profit and we think the opportunity to create an exceptional place could be lost without early public sector intervention.


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Market overview

Aviation

A range of potentially viable aviation uses has been identified. A detailed business plan is required, together with exploratory discussions with operators. In anticipation of a positive result it is recommended that the airfield and supporting infrastructure is protected and that an area of 200 acres is protected for aerospace activity.

Housing

Our assessment is that a predominantly residential development would be a sub-optimum outcome if it was at the expense of creating a balanced mix of uses including high skilled employment.

Logisitic

Whilst there may be some demand from local firms for the hangar space at modest rents, there is limited potential for large scale, national occupiers without substantial improvements to the strategic national road infrastructure.

1,965m

Cambridge Airport

1,841m

Norwich Airport

3,049m

London Stansted

2,810m

RAF Mildenhall


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Emerging sectors, including sustainable energy

Renewable energy generation offers some potential to boost employment and there are limited site constraints to restrict them. No known institutional demand or FDI requirement in the area.

Agri-tech

Agri-tech could be an appropriate use and would need to complement the existing offer in the region.

Offices

Potential for some spin-off from Cambridge’s market but, despite economic and population growth in East Anglia, there is no existing office/business cluster around Mildenhall and this sector would require public sector intervention.

Retail and leisure

Ancillary retail to support other uses is likely to be viable but given the location, catchment area and accessibility – as well as established centres at Bury St Edmunds and Cambridge – significant demand is unlikely.

Education, science, innovation

Any potential to build off the success of Cambridge’s science parks would likely require an anchor in this location – typically this would be a university or research facility.


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The taskThe public sector should be at the heart of delivering the vision

20 We think that the public sector has a critical role in delivering the vision so that an appropriate strategic framework can be established prior to development

• Vision and innovation – a project of this size requires a visionary approach and is much more than just property development. It will require wider support to ensure future generations can derive lasting economic and social benefits. For instance, attracting the high-skilled jobs for local people will need a focus on driving the knowledge economy, technology sectors and education and the higher level skills base including advanced planning by local education providers to create the right skills to support the new employment.

• Coordination – the project will require national and local government strategies and resources to be coordinated. The scale of the development will require input from central Government departments, Forest Heath District Council, Suffolk County Council, the HCA and the Local Enterprise Partnerships (LEPs) to maximise the impact of the project at national and sub-regional level and to keep land in public sector ownership to control phasing of development.

• Strong governance and public/private partnerships – the precedent case studies demonstrate that a complex and long-

term project such as RAF Mildenhall will require committed leadership and political support to be delivered through strong governance. The public sector bodies have a vital role to play in establishing the vision and credentials for the site and attracting private sector partners.

• Technical challenges – the legacy of military use could mean large, abnormal site costs and the scale of development is likely to require major off-site infrastructure upgrades. The public sector has a critical role to play in investing in appropriate infrastructure and capturing land value uplifts.

• Funding and financial mechanisms – major site development costs are likely to require public funding from central Government as well as Forest Heath District Council, Suffolk County Council, the LEPs and other sources, including potential funding from the Norfolk and Suffolk devolution deal. Innovative funding mechanisms such as Enterprise Zones which are designated by Government to encourage business investment on a site, and business rates retention schemes to fund major infrastructure will need to be pursued.

• Local Plan Process – Whilst the site cannot be included in the Local Plan currently because of the uncertainties around scale of release and contamination issues, once there is clarity on these issues it will be considered as part of the review of the Local Plan.

• Community and stakeholder involvement – another key lesson from many of the reference case studies is that existing communities could feel


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overwhelmed by the scale of this project and there is a real need to be in the driving seat to engage with and involve them in the design of the project from the outset to ensure the regeneration brings sustainable benefits.

• Timescales – this is a long term project. It will be 2023 before the USVF withdrawal. The redevelopment of the site will impact the social, economic and physical landscape of Mildenhall and surrounding communities over a wide area and regeneration will be phased over at least 20 years. There will be a need for long-term leadership to maintain momentum and manage the expectations of the local communities.


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Delivering the vision together

As local partners we will make a long term commitment to ensuring this vision is delivered and we are asking Government to join with us to provide a focused and integrated approach and a shared agenda for a new Mildenhall.

21 A shared vision

• A project of this scale and timescale needs sustained and committed leadership from the public sector at national and local level to give confidence to local communities, businesses and investors that the project has the necessary backing to succeed.

• The public and private sectors also need to speak with one voice to unite and put the legacy objectives at the heart of future planning for RAF Mildenhall. The One Public Estate programme and potential Norfolk and Suffolk devolution deal will help to improve this and RAF Mildenhall can become a showcase for alignment of public sector strategies and resources to deliver growth.

• We have some clear principles and legacy objectives which are set out in this document. These point strongly to mixed use, sustainable development with jobs at the forefront. We do not see a residential led commuter town as the default option and we must avoid mothballing the site at all costs.

• We propose a strong governance structure which draws on best practice from other military and industrial site closures which we envisage will have a Strategy Board and a Delivery and Implementation Board.

• The public sector should take a proactive role in maintaining the site in single

ownership and take the role of a ‘master developer’ to provide project leadership and manage the planning, consultation and strategic infrastructure stages of the development.

22 The governance structure should involve a collaborative approach with key public and private sector parties such as Forest Heath District Council, Suffolk County Council, a prospective Norfolk and Suffolk devolved combined authority, the DIO, the HCA, the LEPs, the Chamber of Commerce, business stakeholders, and the Cabinet Office and HM Treasury

We will establish a strong governance structure which will have two key functions

• Strategy Board – public and private sector stakeholders responsible for strategy, key funding streams and the big decisions.

• Delivery and Implementation Board – an operating function including public and private sector representation to ensure progress on delivery, site and area promotion, engagement with community and business groups.

The involvement of the private sector will be crucial to maximise the capacity to deliver the ambitious and significant development programme.


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23 We have considered a range of delivery options

The three main delivery options that we have assessed are:

HCA-led delivery As it currently stands, the DIO intend to transfer ownership to the HCA. In this scenario, the type and form of development will be driven to a significant degree by the needs/requirements of the HCA in terms of both the outputs of development (housing and job numbers) but also its financial requirements and attitude to property risk. It would be important under this scenario that local partners engage early with the HCA and establish an effective governance arrangement in order that the local partners have some real and sustained influence.

HCA/local partners joint delivery

The HCA and local partners would become fully aligned either through a properly constituted governance structure at one extreme or a shared interest in the land at the other. This could be a joint enterprise or more likely for governance reasons the local partners could take ownership of part of the site such as the initial land needed to create a viable early employment hub.

Locally-led delivery In this scenario, local partners would seek to intervene more directly by taking a direct stake in the land, either alongside the HCA or on its own. This would give local partners more control but would also increase the risk.

deliverability of the project and to then introduce private investors to fund discrete phases of the development.

• We will support capacity funding with local resources to enable a business plan to be developed for the aviation uses and other employment opportunities described in this prospectus and to support discussions with potential operators and investors.

• We will promote the site and the wider area as a place where people want to live, work and visit. A focused promotion will convey Mildenhall’s vision and identity to create demand for scalable inward investment.

• Should there be a decision for continued military use then we will collaborate with the DIO to apportion land uses that enable civilian (including aviation) and military uses to work alongside each other.

Our assessment is that a joint HCA/local partners-led approach is optimal because it shares risk, it embeds a collaborative and joint approach to delivering a shared vision and it increases capacity.

24 Local commitment

• Local partners are committed to delivering the best possible outcomes for the people and business of Mildenhall, Forest Heath and the region.

• We will develop a strong partnership with central government (including DIO and HCA) that will provide a strong combination of land ownership, funding resources, delivery expertise and local knowledge and buy-in.

• We will actively explore early opportunities for public sector intervention to pump-prime key off-site and on-site infrastructure to build confidence in the


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25 Our requests of Government

• We have set out our objectives and vision. We are asking Government to work in partnership with us, to respond to this prospectus and to accelerate and clarify decisions where possible about the timing of the USVF withdrawal.

• We ask for minimum site closure standards to be applied before all or part of the site is transferred from the military or a dowry fund be established to meet the costs.

• Whilst aerospace options are explored further, the airfield, supporting infrastructure and an area of at least 200 acres be protected for aerospace activity.

• We are asking Government and its agencies to make available capacity funding to assess the requirement and costs of new infrastructure required and to develop business cases which demonstrate the return on this investment.

• We ask that Government provides a funding package to be repaid from sale proceeds of the land when it becomes developed to meet the costs of the required improvements to infrastructure and services to facilitate new development.

• We want to explore with Government the benefits of designations such as Enterprise Zones, Housing Zones and development corporations to support delivery of the Vision.

• We ask that Government works with us to jointly develop a masterplan for the site that builds on the work of this Vision and Prospectus, having regard to local and central government priorities. To support this work we ask Government to share all information gathered to date so that we can jointly assess the need for further work to be commissioned jointly.


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Glossary

Term Meaning Page

agri-tech Agricultural technology – making farming and growing more productive by using technology. Eastern England is home to world-leading agri-tech companies and research.

5

aircraft de-manufacturing

Process of carefully taking apart aircraft so that components in good condition can be re-used or salvaged.

15

Cabinet Office Government’s corporate centre with overall responsibility for government property, among other things.

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capacity funding Funding awarded to allow an organisation to do extra work created by a project. This kind of funding is usually spent on extra staff or professional and legal services rather than the bricks and mortar parts of the project.

8

cargo conversion Where a passenger aeroplane is converted to carry cargo rather than passengers. While involving a lot of engineering work, it can be cheaper for operators than buying a new cargo plane.

21

catalytic occupier or catalytic ‘anchor’

An occupier acts as a catalyst when it kickstarts interest in and attracts others to a development. 5

combined authority

A combined authority is a group of local authorities who are given powers and funding through devolution. A deal to set up a Norfolk and Suffolk combined authority is going through the process of being agreed by councils and the government.

28

composites Advanced manufacturing material made up of a matrix and reinforcement which, when combined, give properties superior to the properties of the individual components (eg carbon fibre-reinforced polymers). The primary benefit of a composite material is weight saving for its relative stiffness and strength.

8

Core Strategy Planning policy document – sets out overall vision and strategy for development in Forest Heath up to 2026.

17

development corporations

Bodies set up by government that focus on development in a particular area. London has Mayoral Development Corporations, and some devolution deals have also included locally-accountable development corporations.

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DIO Defence Infrastructure Organisation – part of the UK Ministry of Defence. Builds and looks after the infrastructure and facilities used by the military.

7

EZ Enterprise Zones – areas set out by local authorities to offer incentives for businesses such as discounts on business rates.

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FDI Foreign Direct Investment – money invested by an overseas firm, sometimes as part of establishing a new presence in an area.

11

GVA Gross Value Added – total value of everything produced by an area or sector of industry (measure of economic output).

8


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Term Meaning Page

HCA Homes and Communities Agency – government agency responsible for increasing the supply of housing. It has a say when government-owned land becomes available for regeneration.

7

HMT Her Majesty’s Treasury – government department in charge of taxes and government spending. It has a say in how much money the government aims to raise from the sale of the RAF Mildenhall site.

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housing tenures Different kinds of housing tenure include private ownership, private rental, social housing and shared ownership, as well as other more specialised kinds. A mix of housing tenures is important to make sure that there is housing to suit all kinds of local need.

5

Housing Zones Brownfield (previously developed) areas that the government has agreed to provide investment funding for to help build new housing. The money is in the form of low cost loans and is intended to be spent on removing the barriers to construction.

30

inward investment

Where money is invested in an area by a firm from another location. Often investment in premises, staff and equipment and adds to the local economy.

5

joint enterprise Commercial partnership between two or more organisations. A joint enterprise is sometimes structured as a company with shares held by the partner bodies.

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LEP Local Enterprise Partnerships – regional business/local government partnerships who decide priorities for public investment in their local area. Forest Heath District Council is part of two LEPs, Greater Cambridge Greater Peterborough and New Anglia.

26

Mildenhall Hub Project to make public services in Mildenhall more efficient by putting them in the same place. Services like leisure, education, emergency services and more will share facilities and be less expensive to run.

5

MRO Maintenance, Repair and Overhaul – engineering work on aeroplanes, from routine maintenance to fitting them out with specialist equipment. This can be performed by a commercial or military operator, an equipment or aircraft manufacturer, or by an independent company.

15

OPE One Public Estate – partnership between central and local government aimed at making better use of publicly-owned land.

8

operator In aviation an operator is a business or organisation that uses aircraft for commercial purposes.

11

pump prime Where the public sector gives a boost to business by injecting money into the economy. This can be done by simply spending more money, or through strategic investments that create work.

21

Site Allocations Local Plan

Planning policy document – sets out which sites the district council thinks should be developed, and what they should be used for.

17

West Suffolk Property Board

Made up of representatives of public sector organisations working in West Suffolk, including Forest Heath District Council. The board oversees public sector property projects.

8


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Contacts

Forest Heath District CouncilCollege Heath RoadMildenhall IP28 7EYTel: 01638 719000 Email: [email protected]

Greater Cambridge Greater Peterborough Local Enterprise PartnershipThe IncubatorHuntingdon PE28 4WXTel: 01480 277180Email: [email protected]

New Anglia Local Enterprise Partnership Centrum Norwich Research Park Norwich NR4 7UGTel: 01603 510070 Email [email protected]

Suffolk Chamber of Commerce, Newmarket & District8 Swan Lane Business ParkExningNewmarket CB8 7FNTel: 01638 263107Email: [email protected]

Suffolk County CouncilEndeavour House8 Russell RoadIpswich IP1 2BXTel: 0345 606 6067Email: [email protected]


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9/2016

New Anglia Local Enterprise Partnership Board

Thursday 24th November 2016

Agenda Item 7

Update on the LEP’s 24 Month Operational Plan Author: Chris Starkie/Marie Finbow Purpose This report provides an update of progress made against the 24 month operational plan which was agreed by the LEP Board earlier this year. Recommendation To note the progress made against the 24 month operational plan. Background In April 2016 the LEP Board agreed the delivery priorities for the next 24 months which were built around the six main headings (cogs). This report provides a high-level summary of progress to date, which is six months into the 24 month plan cycle and therefore a useful opportunity to take stock. In order to check progress against delivery, the executive team has rag rated each of the workstreams. We are pleased to report that good progress is being made against 34 of the 54 workstreams, none are rated as red and four workstreams have been completed. In the majority of cases the amber rating means progress has not been as swift as we would have liked. In some cases this has been because of external factors. Our intention is now to utilise this report to identify measures to drive progress, focusing resources on the amber workstreams.

Cog – Strategic Priority Workstream RAG status Green Amber Red Complete

Visible Leadership in Driving Growth & Economic Development 7 7 0 3

Unleashing the potential & maximising impact from programme delivery 10 3 0 0

Building Solid Economic Evidence and Analysis 3 1 0 1 Good Governance 4 3 0 0 Clear strategic communications and engagement 6 0 0 0 Robust Finance 5 1 0 0

Totals 35 15 0 4 Full details of progress on each workstream is captured in a more comprehensive spreadsheet which is used by the LEP management team to record and monitor progress. This can shared with board members if requested. The next section provides a narrative summary of the key workstreams beneath each cog.

1

Cog One - Visible Leadership in Driving Growth and Economic Development Three workstreams have been completed – our bid for Growth Deal Three was submitted in July and we are expected to receive confirmation of our allocation in the coming month; the SEP impact report was launched at our AGM in September and the Board has agreed to the development of a new strategic plan for economic growth which will be published in September 2017. Since the LEP Board meeting in April, three new workstreams have also been added to this cog. Two are continuations of completed workstreams – the third a response to national events.

• To implement Growth Deal Three, this includes the need to update our Assurance Framework and the development of an implementation plan for Growth Deal Three.

• To develop a new Strategic Economic Plan for the LEP and proposed Combined Mayoral Authority.

• To develop an understanding of the impact of the Brexit vote on the local economy, identifying challenges and opportunities.

Good progress is being made on a number of other workstreams, with the appointment of consultants to develop the Integrated Transport Strategy for publication in February 2017 and the Skills Board continues to successfully drive delivery of our skills manifesto – notable achievements include the new youth employment service ‘MyGO’ which is well established in Ipswich and is being replicated in Stowmarket and Lowestoft; the launch of the Youth Pledge Marque in July this year, the Enterprise Advisor Network now in place and developing well; the launch of the new website for young people ‘ICANBEA’; and, the publication of the New Anglia Colleges Group vision document. Skills capital projects are also progressing well and are on track for delivery. Seven workstreams are rated as Amber. Some of these are because of external factors such as whether a devolution proposal is agreed, the outcome of Growth Deal Three, uncertainties around European Funding and the implications of Brexit. On two others we have identified actions to turn these green. Further work is needed on building our profile to support inward investment and harnessing our unique position as a facilitator between the private sector, education and the public sector in moving forward and addressing the housing challenge. We are working with a range of partners to develop an Inward Investment Strategy for the Invest East Brand which will be published during 2017. We are also taking a lead on discussions with key representatives from across Norfolk and Suffolk together with the Housing Finance Institute to agree a clear plan of action to support housing growth across our region. Cog Two - Unleashing the Potential and Maximising Impact from Programme Delivery Highlights on programme delivery include the award of ERDF funding to the Growth Programme which is delivering well; the 300th award of Growing Business funding has been made; and the creation of the Micro Grant Scheme which was launched in August 2016. Three workstreams are rated as Amber due to limited demand (Growing Places Fund) and the uncertainties caused by the Brexit vote. Work is underway to review the remit of our Growing Places Fund, the Enterprise Zone and our Growth Deal capital programmes to see how these can be enhanced and evolved. We continue to work closely with partners on the Ipswich Vision Board. The Ipswich Vision Co-ordinator is in place and progress is being monitored against each of the 24 ambitions. Funding secured includes £5K for Norwich Road, Ipswich; £1.6m for Ipswich Cornhill (via Growth Deal). A bid through Coastal Communities funding for £4.5m has been accepted at Stage 1, with Stage 2 deadline in December 2016 and a decision expected in April 2017 and HLF approval of Stage 1 for a new Heritage Centre with Stage 2 bid due for submission in October 2017.

2

Cog Three - Building Solid Economic Evidence and Analysis One workstream has been completed – a data dashboard for monitoring progress against our SEP ambitions has been developed with support of LEP Board Member Doug Field and is now presented to the LEP Board on a quarterly basis. A data framework has also been agreed locally.

One workstream is rated as Amber – the development of an annual business survey. Our intention is for this to be developed and inform the evidence base for our new Strategic Economic Plan alongside the New Anglia Economic Profile.

Cog Four - Good Governance We continue to work closely with our Local Authority partners and this relationship has been strengthened through the work of the Norfolk and Suffolk growth groups and the Devolution Programme Board. We are also continuing to build effective working relationships with our sector groups, recognising that our sectors have an active role in helping the LEP achieve its ambitions. In September the LEP Board agreed to allocate funding for Tech East and EEEGR and service level agreements are being developed to ensure delivery of specific outcomes for the ICT and energy sectors. A proposal is also in development for the Food, Drink and Agriculture group to identify tangible outputs to each to ensure the group remains focussed and board members engaged. In terms of transparency of decision making, our Assurance Framework was updated and published in May this year. This is due to be reviewed again by March 2017 in line with the National Assurance Framework. To support the LEP Board, we have developed a formal induction process which is now in place for new Board members to introduce them to the wide variety of work undertaken by the LEP, and the LEP executive team. We do however need to make further progress on board succession planning. We have strengthened our Executive team and internal communications with key messages provided to staff on a monthly basis, a full review and implementation of our HR policies and the introduction of a new performance review system. Cog Five - Clear Strategic Communications and Engagement A communications strategy and brand guidelines have been developed and are now in place. Positive media coverage has increased over the past year online, in print and on radio/television. The LEP has been seen increasingly as an independent expert commentator for business issues, which is a positive step and reinforces our reputation as thought leaders. The East brand was used at MIPIM UK in October across neighbouring stands for both Norfolk and Suffolk and is the branding used on the investment pitch book, bringing development sites in both counties under a single brand. The LEP continues to play a lead role in communicating positive messages about devolution – bringing business leaders together at events organised in partnership with the Chambers of Commerce and submitting a joint letter regarding devolution, representing more than 80,000 employees and learners. The LEP continues to lead on transport campaigns, including the very successful GEML Rail Campaign, which has led to the recent award of the new franchise and the promise of an entire fleet of new trains; the dualling of the A1307; the dualling of the A47; the ‘No More A14 Delays’ campaign and is a key partner on the Ely Area Taskforce.

3

Cog Six - Robust Finance Regular budgeting and reporting has taken place to ensure the LEP operates at its optimum whilst endeavouring to strengthen the LEP’s balance sheet. At the start of this financial year the LEP strengthened its finance function with a suitably qualified finance assistant. Over the past year the LEP’s finances have been consistently managed within budget. Continuous discussions have taken place between the LEP and the Accountable Body to ensure transparency and to maximise returns on deposits. A new financial model for our Enterprise Zones is in the process of being piloted with our partners, which is due to be completed at the end of November. This will create a framework based on our previous five years’ experience in running our Enterprise Zones. The new model will be rolled out across all partners in due course. The LEP is also currently exploring alternative financial models with partners which could provide the LEP with a more sustainable operational budget in the longer-term. Proposals are being developed for consideration by the LEP Board in early 2017. Conclusion The LEP Board will continue to receive monthly updates of progress against the six cogs in the managing director’s report and progress against our SEP ambitions will continue to be provided to the Board on a quarterly basis through the data dashboard. Recommendation The board is invited to note the progress being made against our operational plan.

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New Anglia Local Enterprise Partnership Thursday 24th November 2016

Agenda Item 8

Business Performance Reports – November 2016

Contents

No. Title RAG Status

1. Business Growth Programme Green 2. New Anglia Capital CONFIDENTIAL Green 3. Enterprise Zones

a. Great Yarmouth & Lowestoftb. Space to Innovate

Green

4. Media Dashboard N/A

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New Anglia Business Growth Programme November 2016

LEP Executive Lead – Jason Middleton

The New Anglia Business Growth Programme is the umbrella under which the LEP operates its direct business support programmes. Programme activity started in early 2013 and is made of the following areas of activity, funded by a number of funding streams, including BEIS and ERDF: -

• New Anglia Growth Hub – Providing face-to-face business support for SMEs• Growing Business Fund – Grants between £5,000 and £500,000 at 20% to SMEs• Oil and Gas Support Scheme – Grants to the businesses effected by the downturn• A NEW Micro Grant Scheme - Grants between £1,000 and £10,000 at 20% to SMEs• Start-up Programme – Providing support to individuals to start a new business

New Anglia Growth Hub Initially launched in June 2014, as a 12 month pilot via the Wave Two City Deal and delivered by Suffolk Chamber of Commerce. The Growth Hub is currently supported via a successful ‘New Anglia Business Growth Programme’ and is part-funded by the ERDF (January 2016 – September 2018).

The Growth Hub has become one of the best performing hubs in the country. From 2016, the Growth Hub now has more of an emphasis on providing ‘in-depth’ support as well as being able to refer to the private and public sector via a new website, launching at the end of 2016.

Growing Business Fund Launched in April 2013, the Growing Business Fund provides grants between £5,000 and £500,000, usually up to 20%, to SMEs across the LEP area. Funding for the scheme has come from a range of sources, including £12m from the Regional Growth Fund, £1.66m from Wave Two City Deals, and £25.57m from the Growth Deal by 2021 (£4m for 2016/17).

Growth Hub Target to April 2017 Delivered to

date Delivered to date %

RAG

Business Engaged with the Hub 6,010 5,892 98% Green In Depth Support (12 hours or more) 1,290 3,168 245% Green

Total hours of support (All businesses) - 27,225 - Green

Calls our Local 0300 Helpline - 2,890 - Green Events participated by Growth Advisers - 522 - Green

Growing Business Fund Target to April 2017

Awarded to date

Delivered to date

Delivered to date %

RAG

Number of grants awarded - 321 278 - -

Value of grants awarded £17.66m £16.4m £14.85m 84% Green Private sector match funding £70.64m £76.07 m £65.6m 92% Green

New Full-time jobs created 1239 2204 1122 90.5% Green

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Oil and Gas Support Scheme The LEP has introduced two schemes to support businesses which have more than 50% of their turnover derived from the sector. The first provides a 50% grant of up to £3,000 for companies to undertake a health check to adapt to and cope with the effects of the downturn, with the second providing companies with access to the Growing Business Fund scheme, without the need to create new employment. Activity around the schemes is outlined in the table below.

Micro Grant Scheme Following approval of the ‘Business Growth Programme’ ERDF application, a new Micro Grant Scheme was launched in August 2016, with eight applications received to date. The scheme provides capital and revenue grants between £1,000 and £10,000 at a 20% intervention rate to SMEs seeking to grow and expand, take on new staff, introduce new goods or services or become more efficient. Applications to the scheme are supported by the New Anglia Growth Hub. There are approximately 30 projects in the pipeline.

Start-Up Programme Starting in March 2014, the start-up programme provides a range of support, including workshops and face-to-face support, to individuals to start their own business and businesses during the first year of trading. The programme is delivered by Nwes in Norfolk and East Suffolk, and Menta in West Suffolk.

Demand for start-up support has grown and currently exceeds the level of support provided by the programme. It is anticipated that the programme will perform ahead of target. Activity will continue until August 2018, it is part of the successful New Anglia Business Growth Programme that is part-funded by the European Regional Development Fund.

Oil and Gas Support Project Target to April 2017

Activity to date

Approvals to date

RAG

Number of Enquiries - 29 - Green Number of Visits to companies - 24 - Green Business diagnostics undertaken - 12 - Green Applications for Consultancy Scheme - 7 6 Green Applications for GBF Fund - 6 3 Green

Micro Grant Scheme Target to April 2017

Awarded to date

Delivered to date

Delivered to date %

RAG

Number of grants awarded 80 4 0 0% Amber

Value of grants awarded £420,000 £15,389 0 0% Amber New to the firm products introduced 8 3 0 0% Amber

Private sector match funding £1.68m 62,357 0 0% Amber

Start-Up Programme Target to April 2017 Delivered to

date Delivered to

date % RAG

New business start-ups created 650 408 62.8% Green

New Full-time jobs created 816 563.5 69% Green

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Eastern Agri-tech Initiative Launched in April 2014 as a £3.2m RGF funded scheme, and operated by Greater Cambridge Greater Peterborough LEP, in partnership with New Anglia LEP. The scheme supports the development of new innovative ideas to support the Agri-tech sector via an R & D grant of up to 50% (no jobs required) An additional growth grant is also available for Agri tech businesses showing new ways of working and introducing new technologies this grants has an intervention rate of 25% and jobs to be created. The scheme has now been allocated additional funding with £2m of funding secured (£1m from Government, Growth Deal to GCGP LEP and £1m from New Anglia LEP Growing Places fund) to continue the programme. (Figures are shown for the whole project) There is no job creation associated the R&D projects and most jobs are reliant on “Agri Gate” project, which has only just been launched, with a time lag between awards and outputs.

Growth Programme Risks

The following key risks have been identified relating to the programme and its delivery:

1) Inability to draw down future funding to support the continuation of the programme.

Likelihood: Low Impact: High Mitigating Activity – An ERDF contract has been signed by DCLG and returned to the LEP on the 30th of August 2016. ERDF funding will ensure the continuation of the Programme, as well as a new Micro Grant Scheme, until the end of August 2018.

2) A lack of businesses requiring support via the Growth Hub.

Likelihood: Low Impact: Medium Mitigating Activity – Demand for Growth Hub support is very high and with the loss of the Business Growth Service BIS have confirmed that Growth Hubs are key to delivering business support, which will increase demand over time, particularly for ‘in-depth’ support.

Agritech Target to April

2017 Awarded to

date Delivered to

date Delivered to date, %

RAG

Number of grants awarded - 59 34 - -

Value of grants awarded £4,600,000 £4.45m £2,902,123 63% Green Private sector match funding £11m £9.6m £6m 54% Green

New Full-time jobs created (inc safe guarding)

702 685 469 66% Green

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Appendices

1) Geographical distribution of Growth Hub activity

2) Top ten most popular referrals through the Growth Hub

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3) New Anglia Grant Programmes Map: Growing Business Fund / Oil & Gas / SmallGrant Scheme / Agri-Tech (Apr 2013 – October 2016)

Awarded grants based on proposed investments

£25k - £500k grants, GBF Oil & Gas

£5k - £25k grants, SGS Agri-Tech

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£113k £277k

£727k

£824k

£1m

£0

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

2013/14 2014/15 2015/16 2016/17 2017/18

EZ Retained Rates Pots Forecasts

Pot A 10% Pot B 35% Pot C 55%

Great Yarmouth and Lowestoft Enterprise Zone - Six sites in Lowestoft & Great Yarmouth which has incentives such as business rates relief, a straightforward planning process and business-ready infrastructure offered to encourage business investment from the energy sector.

Targets for 2016/17

Investment Income 2014/2015/2016 Downturn in Oil & Gas industry impacting on EZ uptake Likelihood – High Impact – Medium Mitigating Activity - Establishment of a LEP Oil and Gas Taskforce Board Lead – Mark Goodall LEP Executive Lead – Eunice Edwards

GREEN

Indicators/Targets to the left of page are for 2016/17

November 2016 update (by site) since last LEP Board Meeting: Beacon Park – Head office and work shop development proposal due to start construction February 2017 securing 250 local jobs. 100% (18/18) are energy related or in supply chain. Mobbs Way – Lifecycles have unfortunately ceased trading in this quarter. 45% (5/11) are energy related or in supply chain. Riverside Road – Lowestoft 3rd crossing potentially using site for bridge construction. 0% (0/3) are energy related or in supply chain. South Denes - Construction works to enhance port infrastructure at Peel Ports Great Yarmouth for several high profile offshore wind projects have begun. 100% (6/6) are energy related or in supply chain. South Lowestoft Industrial Estate (SLIE) – SCC progressing plans for front site with Concertus as project managers Ellough – Waveney Resurfacing have purchased some land within EZ site. Details TBC 100% (2/2) are energy related or in supply chain. All sites are relatively static at the moment due to the downturn in the Oil & Gas industry. We still have interest in some of the sites but many of the energy companies and those in the supply chains are not investing or looking to expand in the current climate.

Energy Related business

73% (29/40)

70 Jobs (New to EZ)

96% 67

2 Businesses

50% 1

£500k Private Sector Leverage

40% £200k

265 SqM Floorspace

100% 265 SqM

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http://enterprisezones.communities.gov.uk/about-enterprise-zones/


Space to Innovate Enterprise Zone - Sixteen sites across Norfolk & Suffolk which has incentives such as business rates relief, a straightforward planning process and business-ready infrastructure offered to encourage business investment from various sectors.

Targets for 2016/17

Risk Probability Mitigation Required investment in infrastructure outstrips revenue available to cover repayments

Low Tailor pot sharing arrangements to suit. Phase infrastructure development.

Slower development take up than forecast

Moderate Marketing programme developed to maximise awareness in key sectors. Consider providing starter units.

Lack of ambition from landowners

Low Development agreements in place with landowners. On seven of the sites, local authority partners are the landowners which further mitigates this issue

Lack of availability of commercial finance for developers

Moderate Utilise LEP Growing Business Fund, local authority borrowing or pooled business rates

Difficulties with infrastructure providers

Moderate Develop robust plans for infrastructure provision

Slow planning decisions Low Use of Local Development Orders (LDOs) & Planning Performance Agreements

GREEN

Growth Indicators/Targets to the left of page are for 2016/17

NRP – £75m Quadram and £5m Leaf Systems buildings in construction. Leaf aiming for completion by January 2017. Work progressing on getting power on site.

Princes St, Ipswich – 4,000 sqm Connexions building fully refurbished and being actively marketed to potential tenants. Construction has started on the Birketts building. Outline permission for a 3,700 sqm office unit at 88-96 Princes Street.

Futura Park, Ipswich –Work planned to open up Alston site, adjacent to the EZ.

Scottow –Second successful open day and start-up masterclasses held. Projects to deliver SuperFast broadband and water well underway.

Nar Ouse, King’s Lynn – King’s Lynn Innovation Centre up and running. Infrastructure progressing, with gas pipe re-routing scheduled for summer 2017.

Sproughton, Ipswich – Draft masterplan received by landowner, with a mix of uses on site.

Waterfront, Ipswich – Event held with Ben Gummer MP, landowner Associated British Ports and other stakeholders including BT and the University of Suffolk. Master planning to commence soon.

Suffolk Business Park, Bury St Edmunds – Demand demonstrated by high volume of enquiries.

Stowmarket Enterprise Park – S106 in progress and developer hopes to be on site early 2017. Feasibility study planned for a tech hub.

Egmere – Zoning work completed. Working with Better Broadband for Norfolk (BBfN) on getting SuperFast broadband on site.

EZ Retained Rates Pot Forecast to be confirmed, pending input into PWC model which is being piloted with partners over the next few months.

100 Jobs (New to EZ)

71% 71

15 Businesses

73% 11

£2m Private Sector Leverage

65% £1.3m

5995 SqM Floorspace

100% 5995

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2,620 Members

Key Coverage: • Total articles published: 45

• Equivalent Ad Spend: circa £29,000

• Total Audience Reach: 5m

Media & Engagement October 2016

Social Media:

LEP and Board Engagements: 58

Out of Area: 20

Tweet impressions:

79,100 Followers:

5,585 Up:

79

“This new centre will attract

the best talent among students

and businesses across Suffolk

and beyond.”

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New Anglia Local Enterprise Partnership Board Thursday 24th November 2016

Agenda Item 9

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 31 October 2016. The report includes confidential appendices:

Appendix A - core management accounts 31 October 2016 Appendix B - core monthly and year to date graphs (incl. forecast)

Management accounts The LEP’s core income and expenditure account and graphs for the period ended 31 October 2016 are shown in confidential appendix A and B.

31 October 2016 Headline figures for seven months are: Total income £569,559 of which £436,333 represents core contribution with recharges and other income of £133,226 making up the balance. Costs to 31 October total £543,969 leaving a surplus of £25,590, slightly ahead of budget by £9,069. Further detail of the accounts and some of the larger variances will be explained at the board meeting.

Enterprise Zone – LEP Challenge Fund “Pot C” The six original Enterprise zones sites have been progressively attracting new businesses, creating 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 receives 55% of this income as part of its Challenge Fund – Pot C.

To date 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 2015/16 figures with Waveney District and as a result October 2016 management accounts shows additional income of £127,962 beyond what is budgeted to support the LEP’s costs. Further income is also expected this financial year from Great Yarmouth for the two Norfolk sites, this may provide an additional £100,000. The final figure should be agreed this calendar year.

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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 submitted to the LEP board in January on potential use of the funding. Recommendation The board is invited to note the contents of the report and agree to receive a range of options on use of Pot C additional income for 15/16 at the January board meeting.

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New Anglia Local Enterprise Partnership Board Thursday 24th November 2016

Agenda Item 10 Growth Deal Spend Author: Emily Manser & Chris Dashper

Purpose To provide the Board with an update on Growth Deal spend and consider two proposals to help manage project slippage in the current financial year. Recommendations The LEP Board is invited to:

1. Note the contents of this report.

2. Agree to bring forward up to £10m of the LEP’s contribution to the NNDR project into the current financial year ending 31 March 2017.

3. Agree to provide an additional £300k from the Growing Business Fund underspend to complete the development of the International Aviation Academy, Norwich. (See Confidential Appendix 2 – IAAN Business Case)

Background The Growth Deal programme has an ambitious annual spend requirement of £50.557m. This consists of a £12.008m capital swap from 2015/16 and a funding allocation for 2016/17 of £38.548m. Table 1 (below) shows that the project slippage currently stands at £4.852m. This is due to slippage on a number of projects, primarily Beccles Relief Road which has been subject to a public inquiry into the Compulsory Purchase Order of land, and the East Coast Colleges (Lowestoft and Great Yarmouth) which has been subject to a Statutory Area Review. The 2016/17 slippage has already been allocated into 2017/18 and as a consequence there is an overprofile of £2.587m in this year. This is within the 10% over profile agreed with the Accountable Body and is part of our plans to mitigate underspend and capital swaps in future years.

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Review of Growth Deal spend The LEP and partners have put in place a number of measures to manage the annualised spend requirement. Firstly we are closely monitoring and managing the projects/ programmes to ensure that they claim their allocation of funding by the financial year end. An update on all projects/ programmes at risk of slippage is provided to the monthly Performance and Risk Committee and further mitigating actions are agreed. In November the Committee agreed to:

• issue a letter reminding projects at risk of slippage of their obligation to spend their allocation by 31 March 2017 (as outlined in their Grant Offer letter);

• make aware to projects that have slipped substantially this year, that they may not be able to claim their total allocation for 2017/18 until the beginning of the following year (in order for us to manage our annual allocation).

Secondly we have brought forward spend on current Growth Deal projects and deallocated a project that was not spending to our required timescales. These measures have significantly reduced the risk of project slippage in the current year, and compared with the capital swap of £12.008m in 2015/16, we are considering a much lower amount of project slippage of £4.852m in 2016/17. Thirdly the LEP and Accountable Body have been exploring the potential for a capital swap. The option for a capital swap is more limited this year, and the amount available to us will depend on spend on the Accountable Body’s Growth Deal projects and its own capital programme. Therefore we can only identify the capacity for this later on in the financial year. It is therefore considered that an additional measure is required to mitigate unavoidable project slippage from 2016/17 into 2017/18, outlined below.

Table 1 - Growth Deal Spend in 2016/17 Amount Government allocation (This is the government allocation of funding for 2016/17, plus the capital swap from 2015/16)

£50.557m

Spend paid to projects (Note that a project can only be paid once the project has a legal agreement in place and has provided evidence of eligible expenditure.)

£9.656m

Projects with legal agreements in place (This is projects with legal agreements in place which allows them to claim spend when they are ready. We anticipate that the full spend on these projects will be achieved by the end of the financial year.)

£41.416m

Projects with legal agreements pending (This is projects with legal agreements still pending, they therefore cannot be paid any funds. We anticipate all the outstanding legal agreements to be in place by the end of December).

£4.289m

Project slippage (This is the amount of funding that has been re-profiled out of the current financial year).

£4.852m

Totals £50.557m

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Norwich Northern Distributor Road Project

Summary The board is asked to consider bringing forward its contribution of up to £10m to the Norwich Northern Distributor Road project (NNDR) into the current financial year, in order to cover the project slippage in 2016/17. This project slippage is at risk of being returned to government if we do not spend it this financial year.

Background On 9th September 2015 the LEP Board agreed to provide a £10m contribution from the LEP’s next Growth Deal, subject to the following conditions:

a) Norfolk County Council providing written confirmation of its underwriting of the LEP contribution.

b) This being the full and final LEP contribution for this project. c) Robust systems being put into place to monitor and deliver the expected outcomes and

outputs from this project, and for the LEP Board to receive regular updates. Condition ‘a’ refers to backloading the LEP contribution supported by an underwrite by NCC. This condition would be dissolved by this proposal to bring forward spend earlier in the NNDR project. Condition ‘b’ will be upheld and will be stipulated in the Grant Offer letter to NCC. Condition ‘c’ will be upheld and will be stipulated in the Grant Offer letter to NCC. The LEP’s next Growth Deal (Growth Deal Three) has not yet been announced, however the indicative allocation provides the reassurance that we will be able to bring forward NNDR as a Growth Deal project. The NNDR project is already underway and Norfolk County Council have confirmed that they are able to spend up to £10 million by 31 March 2017, in compliance with the LEP’s standard due diligence procedures. Proposal detail NCC to claim at least £5 million by January 2017 in order to cover this year’s project slippage of just under £5 million. The LEP to review the 2016/17 project slippage amount in February and if necessary request a further claim from NNDR to the value of the slippage amount for this financial year. The LEP to put in place a Grant Offer letter by early January, incorporating conditions b and c (above), in order to allow the project to claim the funding. Recommendations The LEP Board is invited to:

1. Note the contents of this report.

2. Agree to bring forward up to £10m of the LEP’s contribution to the NNDR project into the current financial year ending 31 March 2017.

3. Agree to award an additional £300k to complete the development of the International Aviation Academy, Norwich, using Growing Business Fund underspend. This will result in enhanced outputs and economic opportunity in addition to the original proposal. Total additional adult learners will be in excess of 120 across the aviation themes and 3 additional new businesses will be assisted to develop within the aviation academy. Full details contained in confidential Appendix 2.

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Appendix 1 – Update on live Growth Deal projects/programmes Introduction Work is progressing well, with 23 live projects/ programmes and five projects now complete. Currently no projects have ‘red’ status, two projects have ‘amber’ status due to significant project slippage. Status of projects: Note: amounts given below in brackets refer to the total Growth Deal grant amount, with 20 of the projects being delivered over multiple financial years. Amber: Beccles Southern Relief Road (£5m)– construction is now due to start in late 2016 due to delays with assembling the land. The public enquiry into the Compulsory Purchase Order is now complete. The business case will go to the Local Transport Body in December 2016. Amber: Bury St Edmunds Sustainable Transport Package (£2.25m)– the project has slipped due to the design and consultation process taking longer than anticipated. This will be partially addressed by bringing forward works on the Ipswich Radial Corridor project. The business case was agreed by the Local Transport Body in February 2016. Green: A47/A1074 Longwater Junction, Norwich (£2m)– starting this financial year and remains on track to be delivered by 2018/19 but delivery now focussed on later years. The business case was agreed by the Local Transport Body in February 2016. Green: Attleborough Sustainable Transport Package (£4.6m)– the project is on track. The business case (phase 1) was agreed by the Local Transport Body in August 2016 and subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. Green: Bury St Edmunds Eastern Relief Road (£10m)– works on the site are underway, due for completion in Summer 2017. The business case was agreed by the Local Transport Body in July 2015. Green: Felbrigg Junction Improvement (£0.042m) – the LEP Board approved the project in June 2016, following recommendation by the Local Transport Body. Green: Great Yarmouth Transport Package (£9.03m)– the project is on track. The business case (phase 1) was agreed by the Local Transport Body in August 2016 and subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. Green: Kings Lynn Innovation Centre (£0.5m)– the build is complete, with a launch event held on 14 June. The grant agreement is in development following recent receipt of key supporting information. Green: Growing Business Fund (£25.3m)– in progress (See BPR on the fund). Green: Growing Places Fund (£20m)– in progress (See BPR on the fund). Green: Ipswich Cornhill (£1.6m)–the project design is in progress and a grant agreement is being drafted. Green: Ipswich Radial Corridor Improvements Transport Package (£3.5m)– the project is on track and the business case (phase 1) was agreed by the Local Transport Body in February 2016. Green: Lynn Sport Access Road (£1m)– road construction on track for completion in winter 2016. Green: Norfolk & Suffolk Broadband programmes (£5m for each programme)– Norfolk and Suffolk County Councils’ programmes are on track. Grant agreements for the LEP contributions to both programmes are now in place. Green: Norwich Area Transportation Strategy City Centre package (£7m)– works in progress. The business case (phase 1) was agreed by the Local Transport Body in December 2015. The majority of works are on track, there is slippage to part of the scheme (Roundhouse Way Interchange) due to ongoing negotiations regarding land acquisition. This will be

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addressed by bringing works forward on the Norwich Area Transportation Strategy A11 Corridor project. Green: Norwich Area Transportation Strategy A11 Corridor (£4.175m)– works in progress. The cycle scheme is being brought forward to address slippage on the NATS City project. The business case (phase 1) was agreed by the Local Transport Body in December 2015. Green: Norwich Aviation Academy (£3m)– the project build is progressing well after commencing in April 2016. The grant agreement is in development with the relevant supporting information now in place. Green: Snetterton Employment Area (£2.3m) – this project has been added in place of the Haverhill Innovation Centre project. The project works are due to commence imminently with a grant agreement in development following the decision of the LEP Board to fund the project. Green: South Lowestoft Industrial Estate (£2.5m) – phase one of the project is complete, as the site was acquired on 22 January using Growth Deal funding, and an agreement is in place. Phase two is now in development with a tender out regarding designing the industrial units on the site. Green: Sudbury Western Bypass Study (£0.1m) –the project is on track for draw down of funds by March 2017. The business case was agreed by the Local Transport Body in September 2015. Green: Thetford Transport Package (£1.98m) – the LEP Board approved the revised project in June 2016, following recommendation by the Local Transport Body. Subsequently the Performance and Risk Committee agreed a financial re-profile in September 2016. Green: West Suffolk College Engineering and Innovation Centre (£7m)– phase one of the project is now complete, as the site for the New Centre has now been acquired using Growth Deal funding. Phase two will commence in 2017, focusing on refurbishment of the building.

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new anglia local enterprise partnership board meeting · 5. managing director’s report • sep...

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