Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 6, 2025

Purpose:

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.   </AI2> <AI3>