Purpose

Following Surrey County Council’s successful application to the Department for Business and Trade (DBT), the Made Smarter Adoption (MSA) programme expanded to the South East region from April 2025, with Surrey County Council acting as the Accountable Body for the regional programme as approved by Cabinet in June 2024.

DBT subsequently confirmed continuation of the programme for 2026/27, with Surrey County Council retaining the Accountable Body role, and following the Government Spending Review, DBT now has longer-term certainty about the national MSA programme. DBT has issued a letter to the Council confirming its intention in principle to continue funding the MSA South East programme following the existing delivery model, under which Surrey County Councill fulfils the Lead Accountable Body role for the region and delivers the programme via an in-house team. DBT have confirmed the forthcoming S31 grant contract will indicate a continuation of the programme until at least March 2029, with annual renewal for 2027/28, subject to delivery performance and agreement with all regional partners.

The DBT letter sets out the expectation that the programme will continue to operate without disruption across the South East region through a single Lead Accountable Body arrangement at strategic authority level, with responsibilities transferring to the appropriate successor authority to Surrey County Council through Local Government Reorganisation arrangements.

One of the conditions set out by DBT is that participating authorities across the South East region support the continuation of current arrangements for the programme. Engagement with regional partners and stakeholders is planned to secure the necessary formal endorsements. Given that the proposal maintains the existing delivery model and is intended to provide continuity and certainty for the region, the risk of any significant objections is low.

This delegated decision confirms Surrey County Council’s intention to support continuity of the MSA South East programme and associated Accountable Body and delivery responsibilities through successor local government arrangements as per the extension timelines and parameters that will be set out by DBT at the forthcoming S31 agreement.

Decision

Decision made:

It was AGREED that:

1. Surrey County Council notes DBT’s intention to continue funding the Made Smarter Adoption South East programme for 2027/28 and subsequent year 2028/29, subject to the conditions set out within DBT’s letter of intent and the subsequent formal Section 31 grant determination process.

1. Continuity of the Accountable Body and delivery responsibilities for the Made Smarter Adoption South East programme be supported through the relevant successor local government arrangements arising from Local Government Reorganisation.

Reasons for the decision

Reasons for Decision:

The MSA South East programme is delivering business support, technology adoption and workforce development activity to manufacturing SMEs across the South East region and has established Surrey County Council as the regional Accountable Body and delivery lead. The programme secures £3.1m of investment into the SME manufacturing sector across the South East of England, supporting at least 356 SME manufacturers with adoption of new digital technologies. It also delivers £1m of matched funded grants for 50+ SMEs along with 32 internship placements and 112 places on related training courses.

DBT has confirmed its intention to continue funding the programme during 2027/28, recognising the successful delivery and administration of the programme to date. The letter of intent provides important assurance to regional partners, delivery staff and participating authorities regarding programme continuity through the Local Government Reorganisation period.

Confirming support for continuation of the Accountable Body function through successor arrangements will help maintain stability of delivery, retain regional confidence in the programme, and enable forward planning ahead of formal funding arrangements being issued by DBT, and enable the extension of existing delivery team to continue to deliver the agreed KPIs.

The decision is consistent with the Cabinet approval of June 2024 which authorised Surrey County Council to undertake the Accountable Body role for the regional programme.

Alternative options considered

The option of not supporting continuation of the Accountable Body arrangements through successor local government arrangements was considered. This was discounted as it would introduce significant uncertainty for DBT, regional partners and programme delivery at a critical stage in planning for 2027/28.

The current delivery model is established and funded through to March 2027. A decision not to support continuation of the existing arrangements would require DBT to identify and implement alternative Accountable Body and Lead Delivery Authority arrangements for the South East region. This would likely result in delays to programme mobilisation for 2027/28 and disruption to delivery of business support services across the region. Any interruption to programme delivery could adversely affect businesses currently receiving support and reduce the level of investment secured for the South East region.

Continuing the established regional delivery model provides the greatest certainty for DBT, regional partners and programme beneficiaries, while minimising operational, financial and workforce risks during the Local Government Reorganisation transition period.