Purpose

To consider the report of the Cabinet Member
for Economic Development detailing the transfer of local enterprise
partnership (LEP) core function to local aurhorities.  From April 2024, the Government’s sponsorship
and funding of LEPs will cease, and instead support upper tier
local authorities to deliver the functions currently delivered by
LEPs. This empowers democratically elected local leaders to work
with the private sector to support local businesses and drive local
economic growth.

Decision

(i) 
To delegate authority to the Chief Executive, following
consultation with the Leader and Executive Director for Corporate
Services (and S151 officer), to agree the final details of the
transfer of LEP functions to the UTLAs, including future governance
arrangements.
(ii) 
To approve in principle the proposed draft governance structures
attached as Appendix One that demonstrate how SCC plans to work
with our sub-regional partners to achieve our economic growth
ambitions which will need to be outlined in an updated Solent 2050
Strategy.
(iii) 
Subject to the agreement of PCC and IOWC, to agree that PCC is
confirmed as the Accountable Body for the new a new joint UTLA
Board, with the Leader of SCC acting as the first board chair.
(iv) 
SCC agrees that the existing LEP funding, should be disaggregated
to the three Solent UTLAs and be pooled (subject to the agreement
of Isle of Wight Council and Portsmouth City Council), for the
benefit of economic growth of the sub-region, defined as the
combined geographies of the three Solent UTLAs.
(v) 
Agree that, subject to the three Solent UTLA area being recognised
by the Government as an area for LEP Integration, with appropriate
legal due diligence, to delegate authority to the Chief Executive,
following consultation with the Leader to determine whether SCC
will become a Member of Solent Partners (SP).  This agreement to be conditional on all three
UTLAs agreeing to become Members of Solent Partners in
conjunction.
(vi) 
To agree that SCC should not appoint a Director to the Board of
Solent Partners to ensure that there is no conflict of interest
with the wider governance needed for the new LEP integration
arrangements. The three UTLAs will seek appropriate requirements,
within the articles of Solent Partners, to ensure representatives
of the three Solent ULTAs are entitled to observe board
meetings.
(vii) 
To delegate authority to the Chief Executive, following
consultation with the Leader to work with all sub-regional partners
to develop an agreement on how to deliver economic growth for the
functional economic area and take ownership of the Solent 2050
strategy.
(viii) 
To support the creation of a Solent Economic Partnership, inviting
adjacent Districts and Boroughs, Hampshire County Council (HCC),
and other key public sector stakeholders to participate, to enable
Local Authorities leaders and the private sector to have an
opportunity to discuss and support economic growth in the Solent
sub-region.
(ix) 
To approve the proportional disaggregation of existing assets held
by the SLEP to the Accountable Body (PCC) on behalf of the Upper
Tier Local Authorities, including HCC (subject to the agreement of
the three Solent unitary UTLAs).

Reasons for the decision

1. 
The Government have stated that all core funding for LEPs will
cease, with the core LEP functions being transferred to democratic
control. The Government have set criteria for the return of these
functions and the recommendations in this report enable an
appropriate mechanism to be put in place to achieve the
Government's policy requirements.
2. 
While current guidance is clear that LEPs can continue in a private
capacity, the Solent LEP has confirmed that they intend to cease
operating as soon as possible after 31st March 2024 and have set up
an alternative company, Solent Partners, with aspirations to
continue to support the economic development agenda in the Solent.
This report therefore notes that assets and resources built up with
public money will need to be retained in the public domain.

Alternative options considered

1. 
The following options have all been considered and rejected in
favour our submitting an Integration Plan to Government across the
geography of the three Solent UTLAs and in partnership.
2. 
The option to do nothing has been rejected on the basis that the
Government is proposing to devolve the core functions and
responsibilities of the LEPs to upper tier local authorities or
combined authorities. 
3. 
The option of SCC to act unilaterally was rejected on the basis
that the new arrangements will be devolved to the sub-region, and
it is a requirement for UTLAs to act in partnership or to at least
to collaborate on delivery across sub-regions.
4. 
That the new arrangements be formed on a county wide basis of
Hampshire and the UTLAs of SCC, PCC and IWC.  This option was not supported by the three UTLAs
as in their view it ignores the clear Functional Economic Area
(FEA) across the Solent sub-region which has consistently been
recognised by Government with the creation of the SLEP and the
Solent Freeport.  As established
partners the three UTLAs will work together to bring about the
integration of the LEP functions across the three unitary
authorities.