Content

 

9.1

The Committee considered a report of the
Executive Director, City Futures which set out a medium-term
Economic Programme. The report responded to Government confirmation
of funding for a transition year of UK Shared Prosperity Fund
(UKSPF) in 25/26 and indication thereafter that such funding will
cease and need to be replaced regionally or locally for programmes
that require retention.

 

 

9.3

RESOLVED UNANIMOUSLY: That the Economic
Development and Skills Policy Committee:
 
(a)   
 Approve that Sheffield City Council act
as Accountable Body for the UK Shared Prosperity Fund (UKPSF) for
activity within Sheffield and South Yorkshire and is authorised to
enter into funding agreements with the South Yorkshire Mayoral
Combined Authority (SYMCA) and/or Accountable Bodies appointed by
SYMCA to accept grants associated with UKSPF as outlined in this
report.
(b)   
 Approve the 2025/26 UKSPF programme as
set out in section 2.1 of this report and delegates approval of any
material changes to the Programme to the Director of Economy Skills
and Culture in consultation with the Chair, Deputy Chair and
Spokesperson of the Economic Development and Skills Policy
Committee and the wider membership of the committee where
practicable.
(c)   
 Delegate authority to Director of
Economy Skills and Culture or Director of Customer Experience &
Communities (communities element only)
in consultation with the Director of Finance and Commercial
Services to award grants of over £50,000 in value with
external organisations as part of the UKSPF.
(d)   
 Delegate authority to the Director of
Economy Skills and Culture in consultation with the Director of
Finance and Commercial Services, to the Council entering into
Partner Delivery Agreements with the other South Yorkshire Local
Authorities for the UK Shared Prosperity Fund where the Council
maintains its Accountable Body status and as directed by the South
Yorkshire Mayoral Combined Authority.
(e)   
 Approve the One-off funds of retained
EU Funding, retained UKSPF, Excess ESF match, City Deal reserve and
LEGI Investment Returns to be used as an Economic Programme Reserve
for the delivery of a business support, skills/employability and
cultural/tourism programme for the period 2026/27 to 2028/29. The
Economic Programme Reserve being subject to an annual review by the
Director of Economy Skills and Culture in consultation with the
Director of Finance and Commercial Services and the Chair, Deputy
Chair and Spokesperson of the Economic Development and Skills
Policy Committee.
(f)    
 Approve the Gainshare Revenue funding
for 2024/25 to 28/29 being used for a UKSPF replacement programme
from 26/27 to 28/29. The programme details being subject to
consultation with the Economic Development and Skills Policy
Committee.

 

 

9.4

Reasons for
Decision

 

 

9.4.1

This report provides Committee with a proposal
to extend the existing UKSPF programme into 25/26 but a reduced
scale using funding to be provided via the South Yorkshire Mayoral
Combined Authority. This will enable the continuation of projects
in respect to skills/employability, business support,
culture/tourism and community development. The funding will also
secure the employment of over 50 Council employees which will
retain critical skills and knowledge.

 

 

9.4.2

Government has now confirmed that UKSPF
funding will cease in March 2026. The proposal sets out a
Medium-Term Financial Strategy which will facilitate a UKSPF
‘type’ programme for a further three years thereby
maintaining the provision of core services to residents and
businesses and delivering activity that is closely aligned to
several strategic objectives of the Council.

 

 

9.4.3

Alternatives
Considered and Rejected

 

 

9.4.3

Alternative Option 1: Do not establish an
Economic Programme Reserve and use Gainshare for a medium term
UKSPF replacement programme in 26/27 to 28/29.

 

 

9.4.4

Without a replacement programme for UKSPF from
26/27 a range of critical services for Sheffield businesses and
residents are at risk of being significantly reduced or, more
likely, ended. The use of Gainshare Revenue and access to the
proposed Economic Programme Reserve will enable a programme to be
maintained at broadly the same level as proposed in 25/26 and will
also retain existing staff and their associated knowledge and
skills for future delivery activity.

 

 

9.4.5

In addition to staff retention a four-year
programme will enable more efficient delivery of interventions with
the use of longer-term contracts without having to factor in
potential breaks in activity to secure alternative funding.