Purpose

For the Marches Joint Committee to consider
and approve the Marches LEP transfer agreement, following
government's decision to transfer all LEP functions to Local
Authorities from April 2024.

Decision

That:

a)   
The Marches Joint Committee approve the Marches Local Enterprise
Partnership Transfer Agreement;
 

b)   
The Marches Joint Committee delegate to the respective constituent
Local Authority’s Corporate Director for Economy and
Environment/ Executive Directors:
 
i.               
To make any minor amendments in finalising and to sign the Transfer
Agreement on behalf of their respective council,
ii.             
To extend the Terms of Reference for the Joint Committee as set out
in Appendix 1 to include determining arrangements for ongoing
oversight and management of the transferring functions and
projects
iii.            
To enter into a further agreement to reflect that the benefit and
obligations under the Transfer Agreement are shared equitably
between the councils from the Transfer Date based on the principles
in paragraph 10 of this report AND provides a framework for future
collaboration for economic functions should the Joint Committee
require it.

Alternative options considered

1. To not agree the Transfer Agreement –
following a government decision to transfer LEP functions to Local
Authorities in 2023, the Marches LEP is due to cease operations at
the end of March 2024. Failure to agree the Transfer Agreement
would result in functions not being transferred, significantly
disrupting services to businesses and leaving publically funded
assets and contracts at risk. This option is not recommended.
 
2. Not to enter into the further agreement
– due to the short time frame to avoid the risk of extended
negotiations between the councils before the Transfer Agreement is
signed, the benefit and obligations will fall on Shropshire only
(being the accountable body and signatory to the Transfer
Agreement). This has been agreed but on the expectation that a fair
sharing of benefits and obligations will be agreed by the councils
within 30 days of the Transfer Date.