Agenda item

The above report is on the Cabinet Forward Decision List for 9 September

2015 and has been identified by the Chairman for consideration by the Panel.

The Panel are requested to consider the report and make any appropriate recommendations to Cabinet.

The Regeneration and Economic Development Manager presented the Cabinet report which outlined the key elements of Enterprise Zone status and provided information on the proposals to be put forward.  He explained that Enterprise Zones were built on two principles:

·         That the Government believed that the Private Sector was the generator of wealth.

·         That in order to achieve growth the Government should offer incentives to the private sector.

An Enterprise Zone was a designated area of land which had with it a package of incentives for business occupiers.  In terms of financial incentives, the business occupiers would not have to pay Business Rates for a period of five years.  In terms of planning incentives a Local Development Order could be established which would cover the area and could allow for automatic planning permission to be granted if it met development requirements.  Local Enterprise Partnerships would retain the business rates for 25 years.

The Regeneration and Economic Development Manager informed those present that the first wave of Enterprise Zones had been announced by Government in 2011 and 21 had been established across England.  The second wave of Enterprise Zones had been announced in July 2015.  The New Anglia Local Enterprise Partnership (LEP) had subsequently invited applications for Enterprise Zone Status to be put forward to Government. 

The New Anglia LEP invitation had stated that the site proposals should be sector focussed.  The New Anglia LEP had recognised that it could be unfair to retain Business Rates for 25 years so had come up with a Business Rates sharing formula as follows:

-       10% would go to the Local Authority.

-       35% would be ring-fenced for further development in the Enterprise Zone area

-       55% would be paid to the LEP for future development projects.

The Panel was provided with details of the NORA site and the proposed area to be put forward for Enterprise Zone status.  It was anticipated that this area would create 48,000 square metres of employment space for Advanced Manufacturing and Engineering.  Up to 2,200 new jobs could be available as calculated by the Government Employment Density Guidance formula.

The Regeneration and Economic Development Manager referred the Panel to the options considered as set out in the report.  He highlighted the benefits of developing the NORA land with Enterprise Zone status, which included, accelerated development, which could result in the creation of jobs and further investment, ring-fenced funding from the LEP which would be reinvested in the area from Business Rates and prioritised enhanced marketing by UK Trade and Investment and New Anglia LEP.

The Panel was informed that the Borough Council was only made aware of the opportunity to put forward a site for Enterprise Zone status six weeks’ ago so had put together the proposals within a short timescale.  The Regeneration and Economic Development Manager reminded those present that the proposals were still subject to Cabinet and Council approval, although the Regeneration and Economic Development Manager had worked closely with the Leader of the Council and other Cabinet Members in putting the proposal together.

The Regeneration and Economic Development Manager referred those present to page 14 of the agenda which contained the New Anglia LEP Enterprise Zone submission from the Borough Council.

The Regeneration and Economic Development Manager informed those present that, subject to Cabinet and Council approval, the proposal would be submitted to the New Anglia LEP Executive Team for initial assessment and then would be appraised by an Independent Consultant.  If successful through the preliminary stages the proposal would then be considered by the LEP Board and then submitted to Government.  If successful it was likely that Enterprise Zone Status would be granted in April 2016.

The Chairman thanked the Regeneration and Economic Development Manager for his report and invited questions and comments from the Panels, as summarised below.

Councillor Kunes referred to page 16 of the agenda which stated that the site to be put forward was clean and clear.  He asked if there were any contamination issues on the site and the Regeneration and Economic Development Manager explained that there were some contamination issues on the site, but the areas in question were not currently in the Councils control.  The Council was currently in negotiations with Morston’s Administrators regarding the possible acquisition of the rest of the NORA land and it was possible that there would be some contamination issues.  The areas not currently in the Council’s control had been left out of the proposal at this stage, but the New Anglia LEP was aware that the Council could gain control of the site and if the contamination was cleared it was possible that the site could be included at a later date.

Councillor Shorting commended the Regeneration and Economic Development Managers report and referred to table B on page 11.  In response to a question from Councillor Shorting, the Regeneration and Economic Development Manager explained that the figures within the table had been added up vertically rather than horizontally.

Councillor Shorting highlighted the importance of making sure that the roads to be put in were of good quality and not subject to flooding, like Nar Ouse Way.

Councillor Mrs Bower commented that it was good to see that there had been a lot of external inward investment enquiries.  She asked if the local enquiries were for businesses just relocating or if they were planning on expanding operations.  The Regeneration and Economic Development Manager confirmed that the figures contained within the report were from before the opportunity for Enterprise Zone status had been made available.

The Vice Chairman, Councillor Mrs Bambridge asked if the proposals would have any consideration to infrastructure surrounding the site such as the A17 and A47.  The Regeneration and Economic Development Manager explained that the New Anglia LEP had delegated transport issues to Norfolk and Suffolk transport bodies and the Council had been encouraged by the LEP to put forward road infrastructure proposals to Government.  The Council would ensure that the key priority areas were included and a strong case for improvements was put forward.

Councillor Rochford asked for clarification on Business Rates retention.  The Chief Executive explained that currently 40% was retained by the Council, 10% went to Norfolk County Council and the other 50% went into the Business rates pool.  Local Authorities in Norfolk could then bid for funding from the Business rates pool for small style infrastructure projects.

The Chief Executive went on to explain that the LEP offer through the Enterprise Zone was that 10% would be retained by the Council and 35% would be ring-fenced for reinvestment in the area.  55% would then be retained by the New Anglia LEP which the Council could bid into, similar to the Business Rates pool.

In response to a question from Councillor Mrs Mellish regarding timescales, the Regeneration and Economic Development Manager explained that the proposal needed the relevant approvals before Enterprise Zone status was granted.  If successful work could start on providing the relevant infrastructure, this could be in accordance with the layout provided in the existing Masterplan which had been created for the site or new plans could be produced.  The Regeneration and Economic Development Manager reminded those present that there was already outline planning consent on the site.

In response to a further question from Councillor Mrs Mellish, the Regeneration and Economic Development Manager explained that any funding awarded did not have a time limit for commencement of works attached to it, however the Council had a good reputation of delivering projects in the past and a good working relationship with the New Anglia LEP so any issues could be addressed at an early stage.

Councillor Smith asked if all of the NORA land was earmarked for Business use and the Regeneration and Economic Development Manager explained that if all business enquiries materialised the demand would outstrip the supply of Business use land at the NORA site.  The Regeneration and Economic Development Manager explained that other areas of land in different locations were available for business use if required.

The Chief Executive responded to a further question from Councillor Smith and explained that there were two further tranches of Business use land on the NORA site, which were currently not under the ownership of the Borough Council.  The Council were in discussions with Morston’s Administrators regarding the possibility of acquiring the sites.  The sites available were business use and housing land.  The Chief Executive reminded those present that the New Anglia LEP were aware of the situation and there was flexibility to expand the borders of the Enterprise Zone in the future if necessary, subject to the remediation of any contamination issues.

Councillor Mrs Watson referred to the jobs which could be created and commented that if more jobs were available more housing would be needed.  The Regeneration and Economic Development Manager reminded those present that the Council was providing housing through the NORA development and the Major Housing Project. 

Councillor Bubb asked if the development of businesses on the NORA site would enhance the chance of a Railway Station at South Lynn.  The Portfolio Holder for Regeneration and Industrial Assets explained that the creation of jobs in the area could strengthen the case for improved infrastructure.

Councillor Tilbury referred to the focus on advanced manufacturing and engineering.  He felt that the skills gap needed to be addressed if the area wanted to become a centre of excellence in that field.  The Regeneration and Economic Development Manager explained that the King’s Lynn Innovation Centre would become a hub for knowledge transfer and that there were over twenty of the world leading manufacturers operating in the area.

The Regeneration and Economic Development Manager acknowledged that there was an issue with skills.  Other projects were addressing the skills gap and the Greater Peterborough Greater Cambridge LEP had funded a project designed to engage with existing employers in providing education and training.  He reminded those present that the College of West Anglia had also secured funding to become a University Centre and the National Construction College in the area was an advanced construction institute.  The Regeneration and Economic Development Manager explained that dealing with the skills gap was a long term issue and was a high priority for the LEP’s.

The Chairman reiterated the comments made by Councillor Bubb in that it would be beneficial to have a Railway Station serving the Enterprise Zone area.  He felt that this intent should be specified within the plan so that it could be taken into consideration in the long term.  He explained that Network Rail’s funding period worked four years in advance so discussions to progress the possibility of a Railway Station would need to be looked at in the near future.

The Portfolio Holder for Regeneration and Industrial Assets, Councillor Beales, thanked the Panels for their debate and comments on the proposals.  He thanked officers for putting together the proposals within a short timescale.  Councillor Beales reminded those present that the NORA site was currently underutilised and the opportunity to gain Enterprise Zone status would give the opportunity to develop the site.  He also reminded those present of the opportunities available through the scheme to reinvest and retain some of the business rates.

RESOLVED: That the Regeneration and Development & Environment and Community Panel supported the recommendations to Cabinet as set out below, with an additional recommendation 4.:

It is recommended that Cabinet:

1.    Approves the submission of Nar Ouse Business Park for Enterprise Zone status as part of a multi-site New Anglia Enterprise Zone, as outlined in Appendix 1.

2.    Endorses the proposed Business Rates Growth sharing formula, as described in paragraph 8 of this report.

3.    Delegates authority to the Chief Executive in consultation with the Leader of the Council to undertake any further negotiations with the New Anglia LEP to enable the Enterprise Zone proposal to be submitted to Government by 18 September 2015.

4.    That the comments made by both panels be taken into account.