Agenda item

To receive an update on the Business Rate Pool, (report attached), prior to considering the following funding proposals for the allocation of funding from the Strategic Economic Development Fund, (SEDF).

a)    SEDF Funding Proposal: Central Gloucestershire City Region Board

To consider a recommendation from the GEGJC Senior Officer Group to allocate £2 million, (to be set aside within the SEDF), to support the work of the proposed Gloucestershire City Region Board, as requested by Leadership Gloucestershire.

b)    SEDF Funding Proposal: Multi-Modal Transport Brief

Pending the outcome of the decision at 6 a), (above), to consider a recommendation from the GEGJC Senior Officer Group to allocate £410,000, (from the approved SEDF ring-fenced funding allocation allocated to the Central Gloucestershire City Regional Board), to support the commissioning of a Multi-Modal Transport Brief.

The committee: -  

1)    Received an update on the forecast outturn of the 2019/20 Business Rates Pool and the estimated balance of the SEDF.

2)    Considered funding proposals from the GEGJC Officer Group for the allocation of funding from the Strategic Economic Development Fund, (SEDF) and

RESOLVED to: -

a)    SEDF Funding Proposal: Central Gloucestershire City Region Board

Allocated £2 million, (to be set aside within the SEDF), to support the work of the proposed Gloucestershire City Region Board, as requested by Leadership Gloucestershire.

b)    SEDF Funding Proposal: Multi-Modal Transport Brief

Allocated £410,000, (from the approved SEDF ring-fenced allocation allocated to the Central Gloucestershire City Regional Board at 6 a above), to support the commissioning of a Multi-Modal Transport Brief.

Andrew Cummings, (Strategic Director of Resources at Stroud District Council), gave an update on the forecast outturn of the 2019/20 Business Rates Pool and the estimated balance of the Strategic Economic Development Fund (SEDF) for Gloucestershire.

Key points highlighted by the report included:

1.    The final financial gain to the SEDF from the 2018/19 100% Business Rates Pilot was £3.438 million.

2.    The impact of the coronavirus pandemic was expected to have a fundamental impact on the economy of the county, including the level of business rates collected.  Noting that the government restrictions had only come into place at the end of March 2020, it was anticipated that there would probably be minimal impact on the actual business rates collection for the 2019/20 year. 

3.    There had been a significant positive change in relation to the business rates position at Tewkesbury Borough Council during the last quarter for 2019/20.  This has seen the authority being able to release provisions previously set aside to cover appeal losses.  The release of these provisions had seen a significant boost to the position of both Tewkesbury and the pool.  This major boost was a one off event.

4.    Based upon the new positions, an estimated pool gain of £4.5 million was anticipated, of which £900k would be passed to the SEDF. The committee was advised to view this estimation with some caution, pending potential changes to the year end final position. As a result of the pandemic, the deadlines for producing year end figures had changed and local authorities would now have until the end of November 2020 to publish their final accounts

5.    The long term impact of the pandemic was not yet known.  An anticipated 20% reduction on the previously estimated figure was included in the report. This would, however, be subject to significant fluctuation.

6.    It was confirmed that the Business Rates Pool would continue into 2020/21, (under current arrangements), with Stroud DC acting as the lead body. It was hoped this arrangement would generate a further year of gain for the SEDF in 2020/21, currently estimated at £578k.  The uncertainty surrounding this figure would mean caution would need to be exercised if using this balance as part of any funding allocations.

7.    Members recalled previous updates regarding the risks to the pool from a legal case by the NHS foundation Trusts. In December 2019, the High Court had ruled that NHS Trusts and Foundation Trusts would not be eligible for business rates relief, which was considered to have eliminated the risk. Pending a possible appeal by the NHS Trust, it was agreed further updates would be required at future meetings. The issue of the NHS Trusts requesting charitable status remained the most significant financial risk to the pool.

a)    SEDF Funding Proposal: Gloucestershire City Region Board

1. In October 2018, Leadership Gloucestershire had established 3 Boards to help deliver the eight ambitions of the Gloucestershire Vision 2050.

The three boards included:-

2. In recent months, discussions at Joint Committee and Leadership Gloucestershire meetings, regarding the provision of funding for the three boards, (allocated from the SEDF), had resulted in Leadership Gloucestershire agreeing that the three boards should be merged in to a single Gloucestershire City Region Board, to serve the whole of the county. It was proposed that the GEGJC set aside an allocation of £2million within the SEDF, to be available solely for the work of the new board. The release of all future funding allocations would be subject to funding requests on a project by project basis.

3. The detailed governance arrangements for the new board would be considered at the next Leadership Gloucestershire meeting. Information on how the board would work with existing bodies and partnerships, (including the Joint Committee), and what, if any, other partnerships the board might replace in the interests of efficiency and avoiding duplication, would be considered. 

4. The aims of the new board would be to develop and deliver a vison for the future growth economic success of the whole of the Gloucestershire economic area, while, at the same time, taking into account climate change and related transport challenges.

5.    Leadership Gloucestershire had produced a range of potential projects for the new board to consider, including anticipated costs and funding requests. The initial list of projects, (outlined in the committee report for noting at this meeting), totalled an estimated £1.95 million. One of the projects included a proposal for a countywide multi-modal transport model, with anticipated costs of £600k.

6. In response to the request for the allocation of funding, the Senior Officer Group had concluded that the overall aims of the Gloucestershire City Region Board would substantially benefit the economy and the success of the county. It was accepted that the work involved would require a significant amount of funding.

7. Chair of the Senior Officer Group confirmed that the group supported the request for funding from Leadership Gloucestershire.

b)   Drawdown 1 – Funding for Multi Modal Transport Brief

1.    Subject to approval of the SEDF funding proposal at 6 a) (above), it was proposed that the first drawdown from the £2 million funding allocation should be to consider the request for £410k towards the multi-modal transport project. (Please refer to Appendix A for details).

2.    The committee noted the significant impact population growth and housing demand was likely to have on Gloucestershire and the repercussions of anticipated growth through additional development land allocations from emerging Local Plans.

3.    The Executive Director of Economy, Environment & Infrastructure advised the committee that, with this perceived level of growth, it would be necessary to undertake significant planning activities and to set out broad ambitious growth aims and priorities to guide the development of future spatial and strategic plans.

4.    At the heart of all spatial planning activities was consideration of the transport infrastructure for the development. Other challenges, including the urgency of reducing CO2 emissions to combat climate change and the need for a more inclusive transport system, would also need to be considered. Addressing challenges and accommodating additional growth would only be achieved through the modal shift away from private car use to more sustainable modes, including walking, cycling and public transport.

5.    It was explained that, at present, Gloucestershire was unable to fully assess the impacts of investing in major public transport schemes, or to model the (transport) sustainability of potential development sites, due to the limitations of the County Council’s highway base transport model.

6.    An up to date Highways model would be required to assess the impacts of future local plan growth and consider sustainable mitigation measures. It could take up to 18 months to provide the necessary crucial evidence for this piece of work. 

7.    The committee agreed it was now more important than ever, particularly in terms of assessing the missing transport links affecting the more rural locations of the county, to develop a multi modal transport brief for Gloucestershire.

8.    Stressing the need to review progress, members supported the drawing down of funding for the commissioning of the multi-modal brief by the Gloucestershire City Region Board.

9.    Endorsing the need for high quality data and creating a strong evidence base, the committee noted concerns about walking and cycling provision, (including electric cycling provision), between market towns and concerns from constituents in the Cotswold District about the lack of consideration given to HGV traffic travelling from the A40 to the A436.

Having noted the update on the forecast outturn of the 2019/20 Business Rates Pool, (including estimated balance of the SEDF), and having considered funding proposals from the GEGJC Senior Officer Group in relation to requests for funding from the Strategic Economic Development Fund, (SEDF), the committee

RESOLVED to allocate: -

a)    £2 million, (to be set aside within the SEDF), to support the work of the proposed Gloucestershire City Region Board, as requested by Leadership Gloucestershire, and

b)      £410,000, (from the approved SEDF ring-fenced allocation allocated to the Central Gloucestershire City Regional Board at 6 a above), to support the commissioning of a Multi-Modal Transport Brief for Gloucestershire.