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Communities, Environment and Highways Select Committee - Thursday, 5 December 2024 10.00 am

December 5, 2024 View on council website Watch video of meeting Watch video of meeting
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Summary

The Communities, Environment and Highways Select Committee met to discuss four key topics: the draft budget and Medium Term Financial Strategy, the Community Risk Management Plan for 2025-2030, Economic Growth in Surrey, and a review of the forward work programme. The committee made a total of nine recommendations to the Cabinet.

The Draft Budget and Medium Term Financial Strategy

The Committee scrutinized the draft budget for 2025/26 and the Medium Term Financial Strategy for 2029/30. Councillor David Lewis, the Cabinet Member for Finance and Resources, explained that the Council is facing significant financial challenges.

Councillor Lewis reported that the council had received confirmation from central government that they would be able to raise council tax by up to 5%, but that this had come too late to be factored into the draft budget which included a 2.99% increase. The policy statement from the government indicated that government grants would be calculated using a new “Fair Funding Review”. It is likely that this will disadvantage Surrey, as funding is anticipated to be directed towards areas deemed to be more deprived.

Councillor Lewis also confirmed that a “Transformation Programme” is being funded to optimise how the council operates. This would affect: customer engagement and improvements to customer experiences and outcomes, organisation redesign to review ‘the way we do things’ across the whole council, data and digital to leverage emerging and innovative technology, place and communities support to improve outcomes for residents, and the development of the performance and culture that underpins the organization.

The draft budget identifies pressures across the organisation of £108 million, and requires £74 million of efficiencies to be found to deliver a balanced budget. The committee was informed that the process to identify efficiencies has been ongoing since February 2024 and that £57 million of efficiencies have already been found, leaving a provisional budget gap of £17.4 million.

The committee was informed that there were a range of options available to close the budget gap: Identifying additional funding from central government, containing costs and identifying further efficiencies, drawing on the council’s reserves, and raising council tax. It was reported that £140 million of usable reserves are available, equivalent to 12% of the council’s net revenue budget. Rachel Wigley, Director of Finance, Insight and Performance, reported that the council would not recommend using these reserves for ongoing revenue expenditure but would consider their use for one-off expenditure.

Councillor Lewis reported that the draft budget included investment in improvements to Children, Families, Learning and Lifelong Skills, particularly the continuation of the Early Help and Family Support services, additional Digital Demand Responsive Transport, and the cost of additional verge maintenance and cleanup gangs.

The impact of inflation

The Committee questioned the impact of inflation on the draft budget. Simon Crowther, Executive Director – Environment, Property & Growth, confirmed that a large proportion of the Council’s expenditure is in large multi-year contracts that include contractual uplift clauses. In particular, Lucy Monie, Executive Director of Highways, Transport & Infrastructure, drew attention to the £5 million pressure on the concessionary fares budget.

Concerns about the de-prioritisation of Greener Futures

The Committee discussed the £500,000 efficiency proposed for the Greener Futures programme at some length. There was concern about the impact of the efficiency on the ability of the council to achieve its net-zero targets.

Councillor Marissa Heath, Cabinet Member for Environment, reported that the roles cut as part of this efficiency had been involved in the 2050 net-zero targets and were very specialist. She explained that the work would continue in partnership with the South East Net Zero Hub and the LGA. The capital budget for ground mounted solar has also been reduced to zero. Councillor Heath reported that this was due to issues with grid connection and that the feasibility of these schemes being delivered before 2030 was very low. She reported that the council was still exploring options for rooftop solar schemes, and was working with private partners to explore alternative solar schemes and offsetting. She also reported that the council had lobbied central government to provide Surrey with the power to mandate net-zero targets in planning applications.

Councillor Lance Spencer expressed his concern that the 30% reduction in staffing would severely impact the ability of the council to deliver on its 2030 net-zero target. He also expressed concern about the reduction in capital budget for solar investment, suggesting that solar was one of the few areas in which the council could invest and achieve a return, as it would generate funds once installed. He stated his belief that, without the ground mounted solar schemes, the council would not be able to achieve its net-zero targets.

Councillor Andy MacLeod raised a concern that, as easier wins had been achieved, it would be more difficult and expensive to achieve future net-zero targets. He reported that, at a recent meeting of the Greener Futures Reference Group, the committee had been informed that there would be no funding for future feasibility studies and that the council might be penalized if it did not meet its government targets. He requested information on the scale of any potential penalty.

Councillor Heath responded that the penalty would be on the council, as they had voted for a net-zero target by 2030, and that the council would need to consider quality offsetting if they did not achieve their targets.

Councillor Stephen Cooksey questioned whether members had been consulted about changes to capital funding that affected their divisions and if the Districts and Boroughs had been consulted about the efficiency in the Recycling Support Grant. Councillor Heath confirmed that the Districts and Boroughs had been consulted as part of the Surrey Environment Partnership.

Councillor Catherine Baart asked if the work towards the 2030 target was being paused or slowed, and Councillor Caroline McKenzie, Director for Environment, confirmed that the 2030 target had not been cut. Councillor Baart then asked if the work towards the 2050 target was being paused or slowed as a result of the cuts. Councillor McKenzie confirmed that, with a reduction of four members of staff, they would need to partner with other organisations and prioritize to deliver the 2050 target.

Councillor Baart suggested that the £500,000 cut from the Greener Futures budget could be taken from the £5 million allocated to weed control and grass maintenance, arguing that investment in carbon net zero targets offered better value for money. Councillor Heath responded that both cabinet members had heard that point, but that it was a difficult balancing act, and that the council would focus on the next stage of the plan.

Road safety outside schools

Councillor Baart asked if there would be funding to address a potential future backlog of recommended safety improvements outside schools, and Councillor Matt Furniss, Cabinet Member for Highways, Transport and Economic Growth, confirmed that there would. Councillor Furniss reported that the council would continue the programme at £1 million per year.

Highways Capital Budget

Councillor Mark Sugden asked about the Highways Capital Budget, noting that it fell from £120.6 million to £60 million over the life of the Medium Term Financial Strategy. He asked how this would affect the maintenance of highways. Councillor Furniss responded that the council had carried out modelling that concluded that the proposed budget would be sufficient to maintain roads at their current level and that they were seeing significant improvements in the condition of roads. Councillor Sugden pressed Councillor Furniss on this point, noting that he had used the term “steady state” and that this implied no further improvement to roads. Councillor Furniss responded that the modelling showed that, at a steady state, a percentage of A and B roads would remain in a steady state of 5%, and that a percentage of C and D roads would be improved by 9% over a 15-year period.

Community Protection and Emergencies

Councillor Kevin Deenas, Cabinet Member for Fire & Rescue, and Resilience, reported that 90% of the Fire and Rescue Service's budget is for staffing costs. The draft budget includes a provision for a 3% pay award, which is a nationally agreed award, and therefore there is potential for pressure if a larger pay increase is negotiated.

Councillor Deenas was asked about the inflationary pressures on the Joint Fire Control Centre (JFC) and he confirmed that these are factored into the draft budget, reporting that a 3% increase in pay inflation had been factored in for JFC staff, effective from July 2025.

Registration and Coroner Services

Councillor Denise Turner-Stewart, Cabinet Member for Communities and Community Safety, reported that the Registration and Nationality Service is a highly successful income-generating service, reporting a £1.7 million surplus in 2024/25. She reported that a new operating model had been agreed for the service to co-locate the Registration Service in Surrey County Council buildings. She confirmed that the council would be working closely with Land and Property to make the best use of their assets.

Councillor Turner-Stewart also reported on Your Fund Surrey, noting that of the £42 million allocated to the fund, £19.3 million had been allocated to projects and that £8 million had been allocated to individual members, leaving £15.8 million to allocate to projects. The Your Fund Surrey team were present at the meeting and the committee was encouraged to apply for projects to receive funding.

Councillor Deenas reported on the Coroner’s service, highlighting the complexities caused by special inquests, which he reported were outside the council’s control, and noting the potential of digital post-mortems, which he reported could deliver both cost savings and improved services.

Councillor John Beckett asked if there were any efficiencies that could be safely implemented in the Coroner’s service and Sarah, from the Coroner’s service, responded that the Coroner's service was operating in a very limited market for specialised services, but that there were still opportunities to deliver efficiencies through robust contract management. She reported that the service had recently changed toxicology providers, delivering savings of £80,000 per year.

Sarah also reported that the service had recently received approval to proceed with a digital post-mortem service using CT scanning technology, and that this was likely to deliver further efficiencies from year two onwards, as the service adapted its operating model. She reported that the Coroner’s service had already identified £131,000 of efficiencies for 2025/26, and had delivered £100,000 of in-year savings, achieved through contract and staffing efficiencies and digitisation.

Councillor Richard Tear asked if there was any potential to reduce property costs associated with the Coroner’s service, and Councillor Turner-Stewart confirmed that the Coroner’s service has a capital programme of £1.2 million, and that the Registration service has a self-funding capital programme of £2 million.

Adult Wellbeing and Health Partnerships

Councillor Mark Nuti, Cabinet Member for Adults and Health, reported that the Communities team in the Adult Wellbeing and Health Partnership department had been doing good work, but that it sometimes went under the radar. He reported that Surrey is a national leader in the field of working with deprived communities, and that he had recently been advising Southwark Council on how to begin similar programmes.

Councillor Nuti reported that the budget for the Communities function included in the draft budget was £3.6 million. Councillor Catherine Baart asked where the main impact of the changes would be, and Councillor Nuti responded that the council was planning to implement a more flexible approach, with Place and Communities officers covering larger areas and being deployed to “firefight” specific issues as they arise. He reported that the council had funding for the next 12 months, and that he would be advocating strongly to retain the funding in future. He also reported that these changes would enable the service to adapt to any future changes in central government policy.

Committee recommendations on the Draft Budget and Medium Term Financial Strategy

  1. The Committee welcomes the Council’s ongoing focus on the Transformation Programme and requests an update on progress against this programme in 6 months’ time.

  2. The Committee requests a further update on the 20 mph policy and the implications for the Council’s finances by end October 2025.

  3. The Committee is very concerned about the de-prioritisation of the Greener Futures spend in the budget. It requests that the Cabinet reconsiders this de-prioritisation.

  4. The Committee requests that all divisional Members are advised if there is an item within the capital programme that is being considered which affects specifically their division.

The Community Risk Management Plan for 2025-2030

Councillor Deenas and Dan Quinn, Chief Fire Officer for Surrey Fire and Rescue, presented the draft Community Risk Management Plan (CRMP) for 2025-2030.

Mr Quinn reported that the CRMP had been subject to a full 12-week public consultation that had concluded on 6 September 2024, and that the responses to the consultation indicated a high approval rating for six of the seven proposals. Two of the proposals had been amended as a result of feedback from the consultation.

Mr Quinn gave a brief introduction to the way in which the Fire and Rescue Service manages and deploys fire engines, explaining that they respond to the whole county and do not have fire stations allocated to specific towns or villages. He reported that they use a system called the Dynamic Cover Tool to allocate resources proactively, responding to live information about incidents and risks across the county. The system uses data gathered over the past five years to identify where resources are needed, enabling the service to move their fire engines to the areas they are most likely to be needed.

The Committee heard that the service has 25 fire stations across the county, but that these are referred to as base locations because they are the locations at which the fire crews start and finish their working day. Crews also spend time out in their communities, carrying out prevention work and training, when not attending incidents.

Mr Quinn confirmed that the CRMP takes account of changing demand and that the service is aware of a number of emerging risks that it is monitoring. He explained that Surrey’s main fire and rescue risks were water, wildfire and road traffic collisions. He reported that Surrey loses more people to road traffic collisions than any other incident type and that he had taken on the role of National Road Safety and Road Rescue lead for the fire and rescue sector to try to improve road safety in the county. He also reported that Surrey has an unacceptable level of loss of life in water-related incidents, particularly during the summer, and that the service was developing strategies to address this. In relation to wildfires, he reported that Surrey has a unique challenge due to the urban-rural interface, meaning that fires often occur closer to homes and businesses than they do in other parts of the country. He explained that this meant that the service needed to respond differently to other parts of the country to mitigate the risk of fires spreading.

Councillor Richard Tear asked about the planned changes to Banstead and Camberley fire stations and Mr Quinn explained that the proposals for these stations had been developed in response to the community risk profile. The most recent CRMP shows that there is an emerging risk during the night in Spelthorne and Elmbridge and that there has been a material change to the risk in Haslemere.

Mr Quinn reported that Proposal 1.3, which concerns the relocation of the day crew and fire engine at Camberley Fire Station to either Spelthorne or Elmbridge to enhance night-time cover, had been amended as a result of the 2024 community risk profile to include Runnymede as an option. The 2024 community risk profile identified two additional areas of risk in Runnymede, around Egham and Englefield Green.

Councillor Catherine Baart asked about other potential risks the service was monitoring and Mr Quinn responded that, in addition to the three key risks outlined above, the service was also analysing data and gathering intelligence on emerging risks from technology and climate change, such as the management of electric vehicles, changes to road infrastructure, wildfires and flooding.

Councillor Cameron McIntosh asked about the potential for finding an appropriate and affordable site for the fire station in the Whyteleafe area, and Mr Quinn responded that the service had previously carried out site searches in partnership with the council’s Land and Property team and that the proposal to review this again was a direct result of feedback from the public consultation. He confirmed that, while this review was being conducted, the service would continue with plans to develop Godstone Fire Station to accommodate the crew and fire engine from Banstead Fire Station.

Councillor Luke Bennett, the Banstead member, asked why the review would not include Banstead and whether there was much difference between Whyteleafe and Godstone, noting that they were next door to each other. Mr Quinn explained that the service responded to risk, not geography, and that the risk profile for Whyteleafe dictated that they review this area for a new fire station. He also explained that the risk in Tandridge was very different in the north of the district than it was in the south, meaning that relocating resources to Godstone would improve response times in the north of the district without significantly impacting response times in Banstead.

Councillor Bennett then asked how moving the station from Banstead to Godstone would affect response times in Banstead, and Mr Quinn explained that the relocation would result in a 40-second reduction in response times in Reigate & Banstead, and a slight improvement in response times in Tandridge. He confirmed that this was because Tandridge is currently the least well-served area in the county in terms of response times, whereas Reigate & Banstead was one of the better served.

Councillor Jan Mason expressed her concern about the reduction of fire cover in Epsom. She reported that she had sat through many meetings in which projected numbers had been used to justify reductions in fire cover, but that she believed these numbers to be inaccurate, as no-one can know when they are going to call the fire service.

Councillor Mason also expressed concern that the plan was not taking account of central government’s housebuilding targets and the likely increase in demand that would result from additional housing. She expressed her belief that, if the Labour government were to find land in Epsom, they would build on it, and that the council would then regret removing services. She expressed her concern that it takes many years to train firefighters and that a certain type of person is required for the job, and that the council would struggle to recruit additional firefighters quickly if needed.

Councillor Mason reported that Epsom had a number of sites at high risk of fire, including Epsom Downs, which she reported is a triple SI site and a huge area, and Horton Country Park Local Nature Reserve, which she reported has “loads of tinder stuff”, and would be very vulnerable to wildfires. She questioned how a single fire engine could cover both Epsom and Banstead, stating her belief that the plan was not credible.

Mr Quinn responded that the service recruits and trains both male and female firefighters and that he would implore Councillor Mason to look at the detail of the CRMP which does take account of projected housing growth. He explained that the service is a statutory consultee on all planning applications and therefore has data on all premises that are likely to be built, including their occupancy type.

Mr Quinn reported that the Community Risk Profile, which informs the CRMP, is updated annually. He explained that there is a statutory requirement to review the CRMP every three years, but that Surrey had opted for a five-year plan to provide a longer term vision. He confirmed that the service would review the plan sooner if there was a significant change in the community risk profile. He also explained that the service prioritizes resources based on risk, and that Epsom is currently one of the best served boroughs in Surrey.

Mr Quinn confirmed that the service used Nottingham Trent University to audit the community risk profile and validate their methodology, noting that Nottingham Trent University is the author of the national methodology for Community Risk Management Plans.

Councillor Lance Spencer asked about the seasonal response model, and Sally Wilson, Assistant Chief Fire Officer for Surrey Fire and Rescue, responded that the proposal is not about cost savings, although the service is committed to being as efficient as possible. She explained that the seasonal response model was an additional layer of resilience that would enable the service to respond to incidents associated with specific seasons, such as flooding and wildfires. She reported that these incidents tend to take longer to manage, requiring additional resources. The seasonal response model would enable the service to release crews after longer shifts and provide cover across the county. She reported that the model was innovative and drew comparisons with the Army Reserve.

Councillor Mark Sugden asked how the service would manage their increased collaboration with health partners and Mr Quinn responded that the service would build on their existing strong relationships with partners, including South East Coast Ambulance Service, who he reported had responded to the consultation in full support of the proposal, GPs, care partners in the community, and those working with vulnerable people, such as rough sleepers. He reported that the service had begun a trial with the NHS, looking at how the service could be involved in making homes safe for vulnerable people being discharged from hospital.

Mr Quinn reported that the service had also worked with the South East Coast Ambulance Service on their burns management guidance. He confirmed that fire cover would not be impacted by this work and explained that Surrey had taken part in the National Emergency Medical Response Trial in 2015. This trial saw 400 Surrey Fire and Rescue staff trained to provide medical support to the ambulance service, and a number of fire engines were equipped to attend medical emergencies. The trial concluded in 2017, but the service has retained the equipment and skills that they developed as part of the trial, and will look to put these to use again, in partnership with the Ambulance service.

Mr Quinn confirmed that the service would adopt a structured project management approach to each of the proposals in the plan, working with trade unions and staff, to ensure that there was appropriate governance in place and that decisions were well-informed. He reported that the service would provide regular updates on the projects and make them transparent.

Councillor Sugden asked if the service envisaged that the increased investment in prevention and protection would result in a reduction in the need for fire and rescue responses.

Mr Quinn responded that the core aim of the service is always to prevent incidents from happening in the first place, but that an operational response remained essential. He reported that recent figures from the Home Office show that the number of fires the service is attending has fallen by two thirds over the last 20 years, with 140,000 fires attended in the last year. He also reported that this figure was the lowest since the year 2000.

Mr Quinn reported that, at the same time, non-fire related incidents had risen by 4% from the previous year, and had risen by 60% over the last decade, highlighting the importance of the service’s prevention work around road traffic collisions and flooding. He reported that every effort went into preventing incidents, but that the service believes the response model they have for Surrey is appropriate to the risk level in the county. He confirmed that they would continue to monitor this.

Councillor Cameron McIntosh asked if the service was confident that it had the right level of skills and knowledge to meet the challenges set out in the plan, particularly in relation to technical expertise such as fire engineering. He asked if the service was confident that it had sufficient skills in place to meet the increased emphasis on prevention, particularly in relation to the built environment and the government’s drive to increase housebuilding.

Mr Quinn responded that the service was working to ensure that all of their staff have the right skills and training in place, and that the Protection team is responsible for ensuring the built environment is as safe as it can be. He reported that the service is continually upskilling protection specialists, and ensuring that fire safety inspectors are trained to the competency framework. He confirmed that auditors and business education officers are also kept up to date as legislation changes.

Mr Quinn confirmed that the service does not employ fire engineers in-house but has contracts in place with fire engineering consultants to provide specialist support. The service also has a number of level 5 qualified engineer technicians, ensuring that the right skills are in place to meet current need.

Lee Spencer-Smith, Area Commander for Protection, explained that the service also prioritises prevention and response work, noting that the service has specialists who provide community fire safety advice, home fire safety checks, and Safe and Well visits.

Mr Quinn explained that the service also has a new training centre that is under development, and that the service uses apprenticeships at all levels, providing workplace adjustments where required, to ensure that staff have the appropriate skills and knowledge for their roles.

Councillor McIntosh pressed Mr Quinn on this point, asking if the service was confident that they would have access to a sufficient supply of qualified fire engineers in future, noting that there were only 250 qualified fire engineers in the country. Mr Quinn responded that the service is part of the 4F, a collaboration with East and West Sussex Fire & Rescue and Kent Fire & Rescue. He explained that this collaboration enables the services to share resources, particularly in areas of niche skills, such as fire engineering. He reported that he had recently taken over chairing the 4F to ensure that these arrangements were as effective and efficient as possible.

Mr Spencer-Smith then added that the service has a retainer in place with a fire engineering consultant to guarantee a certain level of response and that the service is continuously looking at their processes to ensure that they can manage the risks associated with the built environment. Mr Quinn then added that a recent example of these collaboration arrangements working well was during Operation London Bridge, when Royal Berkshire Fire and Rescue requested assistance in auditing the safety of hotels in their area.

Councillor Mason then raised a concern about the fire risk associated with the open spaces in her division, Epsom and Ewell. She asked if the service could install signage at the entrance to parks and heathland to remind people of their duty of care. Councillor Richard Tear responded that they already have signage at the entrances to commons, and that it was much appreciated.

Committee recommendations on the Community Risk Management Plan for 2025-2030:

  1. The Committee welcomes the Surrey Fire and Rescue Service’s continued focus on risk and demand data to inform their Community Risk Manage- ment Plan and commends the process they have followed so far in developing their plan for 2025-2030.
  2. The Committee welcomes the additional one-year lease agreed on the Banstead fire station to enable an updated, extensive review of any options within the Whyteleafe area to be undertaken.
  3. The Committee thanks the Service for their comprehensive answers to questions and queries throughout the session.

Economic Growth in Surrey

Councillor Matt Furniss, Cabinet Member for Highways, Transport and Economic Growth, updated the committee on progress in relation to economic growth. He reported that the team had hit the ground running and had established a single portal for Surrey businesses: “Business Surrey”. The service has also held its second Festival of Skills.

Councillor Furniss reported that the government had confirmed its commitment to fund the service in future, although the council was still waiting on detail of how much funding they would be receiving. He also reported that the response from the business community has been very positive and that the council is working closely with their education partners on skills.

Transitional arrangements from the Local Enterprise Partnership

Councillor John Beckett asked about the implications of Coast to Capital LEP becoming a private company and if this meant they would become a competitor to the council in supporting businesses. Councillor Furniss responded that the decision had slowed down the transition of assets from the LEP and that he did not see them as a competitor. He confirmed that Coast to Capital had largely focussed on Brighton and Hove and that the majority of funding for businesses in Surrey had come from Enterprise M3 LEP.

Councillor Andy MacLeod asked if there were any liabilities to be divided between the council and Enterprise M3, and if Coast to Capital would retain any of its assets, and what their liabilities were. Councillor Furniss reported that the council would be receiving a 51% share of legacy funding from Enterprise M3, and that the council was pressing Brighton & Hove City Council, who are the accountable body, to set out their liabilities and assets. He reported that this process was taking longer than anticipated, as Coast to Capital had decided to go private.

In relation to Enterprise M3, Councillor Furniss reported that Surrey and Hampshire would be jointly responsible for Longcross Park in Runnymede, which is an enterprise zone. He also reported that Enterprise M3 had a number of investments that the council was looking to divest from and then reinvest in local businesses. He confirmed that the council would be asking businesses to set out their priorities for this funding.

Councillor Richard Tear asked if there was anything that the council could do to improve the Internal Audit opinion of “Reasonable Assurance” to “Substantial Assurance”. Councillor Furniss responded that the audit report was focussed on the arrangements with Coast to Capital, and was not a reflection of the governance in place at Surrey County Council.

Surrey Growth Hub

Councillor Mark Sugden asked about the take-up of the Surrey Growth Hub, which offers free tailored support to high-growth businesses, noting that the service had supported 280 businesses to date. He asked if the council was happy with that level of take-up, and what the feedback had been from businesses. Councillor Furniss responded that he thought it was a good start, and that the council was pleased with the positive response from the business community. He reported that businesses had described the service as being like “having a board you can’t afford”.

Supporting Surrey’s green economy

Councillor Catherine Baart asked how the council was supporting Surrey’s green economy and net-zero targets. Councillor Furniss responded that there was a dedicated sustainability specialist working in the Growth Hub, and that this specialist worked with businesses to help them go green. He confirmed that the green economy was a priority from the start. He also reported that the Greener Futures Team were working with the business support team and that they shared some advisors.

Government funding for Economic Growth

Councillor John Beckett asked about government funding for the service, noting that the current funding was due to end in April 2025. Councillor Furniss reported that the government had confirmed that funding would continue, although the council was awaiting detail of how much funding would be available. He explained that Surrey had been ahead of the game in setting up the Growth Hub, as they had begun providing the service before government funding was guaranteed.

Financial benefits to the Council

Councillor Baart asked how the council’s economic strategy was supporting businesses in Surrey, noting that some businesses were lagging behind their neighbours and that some had contracted significantly. She asked how the three priorities in the strategy had been developed and how the council directly benefits financially from supporting economic growth.

Councillor Furniss responded that the council’s economic strategy, Surrey’s Economic Future 2030, had been developed in 2020 and was based on a report by the Lord Haran Commission and independent economic evidence. He reported that the strategy was being refreshed to take account of the changed circumstances since the pandemic. He confirmed that the priorities in the strategy had not changed significantly: Growing the leading edge, supporting growth for innovation economy, a whole-place approach to growing and sustainable quality places, maximizing opportunities within a balanced, inclusive economy, and capturing the potential of a greener economy.

Councillor Furniss explained that, when the government dissolved the LEPs and returned the power to upper-tier local authorities, they became responsible for the local and regional economy, but that there is not a direct financial benefit to the council. He noted that the two biggest issues raised by businesses in the county were housing and skills, and that the council was working to address these issues.

Patricia Hurtus-Saridia, Head of Economic Programmes and Localities, then added that the economic strategy was focused on gross value added. She explained that the council was seeking to support businesses that had the highest growth potential, and was working with universities to support spin-out businesses and start-ups.

Level 7 apprenticeship funding

Councillor Cameron McIntosh asked if there had been any feedback from businesses about the potential cut in government funding for level 7 apprenticeships. Councillor Furniss responded that he had not received any feedback on level 7 apprenticeships, but that he was concerned about the potential drop off in levels 1 to 3 apprenticeships. He reported that this was something that the council was considering how to address.

Measuring the council’s impact on economic growth

Councillor Andy McLeod asked how the council would measure the success of its initiatives in supporting economic growth, and Councillor Furniss responded that the council used Gross Value Added as its main measure. He also reported that the number of businesses surviving and the number of people employed were also key measures of success. He explained that any decision made now would take many years to see results, and therefore it was difficult to measure the impact in the short term. He confirmed that survivability was a key indicator and asked Ms Hurtus-Saridia to comment on any other measures that he had missed.

Ms Hurtus-Saridia responded that the council also looked at high knowledge intensity industries and worked to support start-ups and spin-out companies, measuring the number of businesses being created, the survival rate of businesses, and the impact of their support on business rates.

Growth and Innovation Fund

Councillor Richard Tear asked about the Growth and Innovation Fund (GIF), noting that it was described as a transparent mechanism. He asked for clarification on what that means and how exceptional and strategically important projects would be identified. Councillor Furniss responded that the committee would be receiving an annual report on the performance of the fund, and that strategically important projects would be identified through the refresh of the economic strategy, but that the council was placing an emphasis on the business community to set out its priorities.

Costs of the strategy

Councillor Lance Spencer asked how much the strategic funding framework would cost the council and if there were any external sources of funding. Councillor Furniss responded that the government had provided a one-off grant to support the transition of the LEP functions and that this was the only external source of funding available. He reported that the council had received £240,000 for the transition and that the government had confirmed funding would continue in future, although the council was waiting on details of how much would be made available.

Committee recommendations on Economic Growth:

  1. The Committee notes the progress that has been made to conclude the LEP transition process.
  2. The Committee endorses the reframed strategic priorities in the refreshed local economic growth strategy.
  3. The Committee endorses the approach to create a Strategic Funding Framework as the mechanism through which investment decisions are made using the LEP legacy local growth funds.
  4. The Committee approves the role of the Committee to receive an annual report about the performance of the Surrey Growth and Innovation Fund and updates on funded projects.

Tracker and Forward Work Programme

The committee reviewed the tracker of actions and recommendations and the forward work programme. It was noted that the next meeting was scheduled for 12 February 2025.

The Chair and Vice-Chairs then wished everyone a Merry Christmas, a safe journey home and a Happy New Year.