Agenda and minutes
London Enterprise Panel
Tuesday 7 January 2014 11.00 am

Venue: Committee Room 5, City Hall, The Queen's Walk, London, SE1 2AA. View directions

Contact: Jamie Izzard, Board Secretary  Tel: 020 7983 4420 Email:  [email protected]

Items
No. Item

1.

Apologies

Minutes:

1.1  Apologies were received from Professor Stephen Caddick, Councillor Michael White, Stephen Howard, Councillor Chris Roberts and Isabel Dedring.

 

2.

Declarations of Interest

The Chair to invite Board members to declare any interests which they may have in any of the items set out on the agenda.

 

[Note: In accordance with the GLA’s Code of Ethics for staff, officers must make a declaration of interest on any issue on which they are advising the Mayor which affects an interest held by them - or any person related to them or with whom they have a close personal relationship whether financial or otherwise - and ensure that the details are recorded in the Authority’s Register of Interests.]

 

Minutes:

2.1  There were no declarations of interests.

3.

Minutes of the meetings held on 2 October 2013 and 26 November 2013 (Part Reserved)

Additional documents:

Minutes:

3.1  The Chair of London Councils raised concerns regarding the ‘levers and influence’ element of the Growth Deal, which was discussed at the last meeting of the LEP on 26 November 2013 (as per section 4b of the minutes). The Chair of London Councils stated that the agreement at the meeting to submit the ‘levers and influence’ element of the Growth Deal to Government in draft form on 19 December 2013 was not followed up. He therefore considered that this matter raised wider concerns over the governance of LEP decision making, which needed to be addressed.

 

3.2  The Co-Chairs of the LEP’s Skills & Employment Working Group responded by stating that they had not supported submission of this section as contained within the London Councils proposals as the submission had been further developed following the LEP meeting on 26 November 2013 and therefore what had been proposed did not align with the way forward that had been agreed by the LEP (in that further detail on delivery mechanisms would be developed in consultation with the SEWG).

 

3.3  It was noted that the SEWG workshop was being scheduled for late January 2014 and that an officer-level discussion between the GLA and London Councils was taking place immediately following the LEP meeting, at which officers would consider the next steps for the Growth Deal both in terms of the ‘levels and influence’ section and the potential New Homes Bonus top-slice to the LEP under the Single Local Growth Fund.

 

3.4  DECISION:

 

That the minutes of the meeting held on 2 October 2013 and 26 November 2013 be agreed.

 

4.

Update on Actions Arising from Previous Meetings pdf icon PDF 92 KB

Minutes:

4.1  DECISION:

 

That the update on actions arising from previous meetings be noted.

 

5.

Presentation on the Mayor’s Plans for a New Airport- Oral Update from Daniel Moylan, Mayor of London's Aviation Advisor

Minutes:

5.1  The Panel received a presentation on the Mayor’s plans for a new airport to the east of London, following the recent publication of the Airports Commission interim report into airport capacity and connectivity in the UK. During the presentation, the following discussion took place:

 

·  The Mayor’s Aviation Adviser stated that the overall long-term costs for expansion at Heathrow were comparable to the construction of a new airport to the east of London, as were the likely timescales for delivery.

 

·  Further work was required in order to identify the likely impact of redeveloping the Heathrow Airport site for housing and other uses under a scenario where the existing airport was closed and replaced by a new hub airport elsewhere. The Chair suggested that a visioning strategy be commissioned to develop this.

 

·  Interim solutions to existing airport capacity problems were discussed and it was agreed that transport infrastructure works such as the four-tracking of the West Anglia line would help ensure existing capacity was fully utilised. The Mayor’s Aviation Adviser did however express doubt over the viability of proposals put forward by the Airports Commission to increase capacity at Heathrow in the short to medium term due to the likely environmental and societal impact.

 

·  The funding structure for the construction of a new airport to the east of London was discussed, and the Mayor’s Aviation Adviser explained that construction costs for the airport would be met by the private sector though land recharges, whilst costs associated with infrastructure outside of the airport site would require public sector intervention. The Panel acknowledged that this private sector-led approach was not widely known and was a key message for the Mayor to communicate.

 

5.2  DECISION:

 

  That the presentation be noted.

 

That it be noted that a visioning strategy for legacy uses of the Heathrow Airport site was required prior to the LEP taking a view on the Mayor’s plans for a new airport.

 

6.

Presentation on West London pdf icon PDF 60 KB

Additional documents:

Minutes:

6.1  The Panel received a presentation from Councillor Julian Bell (Leader, Ealing Council and Chair of the West London Alliance), Andrew Travers (Chief Executive of Barnet Council and lead for the WLA Chief Executives on Growth, Employment and Skill) and Andrew Donald (Strategic Director Regeneration and Growth at Brent Council) regarding West London’s role in creating jobs and growth.

 

6.2  During the presentation, the following discussion took place:

 

·  Members welcomed the vision for the area and the enthusiasm for supporting delivery of the LEP’s forthcoming ‘Growth Deal’. It was noted that, should London receive additional levers and influence as a result of the LEP’s Growth Deal submission, governance arrangements for groupings of boroughs would need to be strengthened, whilst utilising existing borough staffing resources.

 

·  The Deputy Mayor for Housing, Land & Property suggested that the West London sub-region could work together to pool their borrowing capacity through headroom within boroughs’ Housing Revenue Account (HRA) and additional borrowing recently made available by the Chancellor of the Exchequer. This could enable the sub-region to develop a significant housing development opportunity for the private sector to deliver via a Joint Venture or other delivery mechanism. It was agreed that the GLA would work with the West London Alliance to look at taking this forward.

 

6.3  DECISIONS:

 

a)  That the presentation be noted; and

 

b)  That discussions take place between the West London Alliance and the GLA regarding the potential to pool boroughs’ borrowing capacity to develop a significant housing development opportunity.

 

7.

LEP Update pdf icon PDF 260 KB

Additional documents:

Minutes:

7.1  The Panel received an update on activity undertaken since the last meeting. This covered several specific funding requests, stakeholder engagement undertaken by and on behalf of the LEP, and several LEP and LEP Working Group Membership changes.

 

7.2  The paper also proposed Terms of Reference for the LEP Strategy Working Group.  Sir William Castell proposed that the text be strengthened to reflect the Group’s role in developing a strategy that helps ensure London is a “cohesive, safe and vibrant city of opportunity”. It was agreed that the proposed Terms of Reference would be amended to reflect this change.

 

7.3  Oral updates on each of the LEP’s Working Groups were provided by the respective Chairs/Co-Chairs. Following the update from the Co-Chair of the Digital Creative, Science & Technology Working Group (DCST), a discussion took place regarding the relationship between the proposed ‘MedCity’ and the work being led by Sir William Castell to develop a ‘Southern Cluster’ for the science and technology sectors. It was noted that MedCity would act as the hub of the Southern Cluster, with a narrower geographical focus and covering life sciences only.

 

7.4  DECISIONS:

 

a)  That the following allocation of funding from the LEP’s ‘Strategic Plans and EU Funds Investment Strategies’ 2013/14 and 2014/15 be agreed in principle:

 

·  Up to £100,000 to fund a mapping exercise to show concentration of science and technology firms in London; and

·  Up to £70,000 in order to design, build, host and maintain an independent LEP website for an initial period of three years;

 

b)  That the proposed allocation of funding to support the LEP’s core   secretariat function in 2014/15 be agreed in principle;

 

c)  That the appointment of Professor Stephen Caddick as a member of the LEP representing London’s Higher Education sector, and the planned recruitment for an additional member of the LEP to represent London’s Further Education sector, be noted;

 

d)  That the LEP working group update be noted and that the following be agreed:

 

·  Revised Membership for the LEP’s London Infrastructure Group;

·  Terms of Reference and Membership for the LEP Strategy

Working Group, subject to changes proposed by Sir William Castell;

·  The appointment of Geoff Mulgan as Co-Chair of the Digital    

  Creative, Science & Technology Working Group; and

 

e)  That the update on stakeholder engagement activity undertaken since the last meeting of the Panel (as set out at Appendix 4) be noted.

 

8.

Final 2014-20 European Structural and Investment Funds (ESIF) Strategy pdf icon PDF 87 KB

Additional documents:

Minutes:

8.1  The Panel received a report on the final draft of the 2014-20 European Structural and Investment Funds (ESIF) Strategy. Members noted that further discussions were due to take place with Government and the European Commission regarding the split of responsibilities between the LEP and the GLA in its role as the Government’s intermediate body for ESIF funds in London.

 

8.2  Members supported the proposal for a distinct ESIF Working Group of the LEP and it was noted that further details on membership and Terms of Reference would be brought to the LEP once further guidance had been received from Government.

 

8.3  DECISIONS

 

a)  That the final draft London ESIF strategy be submitted to Government by 31 January 2014;

 

b)  That a LEP ESIF Working Group be set up in 2014 to meet Government and EU requirements relating to local management of EU funds.

 

9.

Growing Places Fund Programme Update (Part Reserved) pdf icon PDF 76 KB

Minutes:

9.1  The Panel received an update on delivery of the Growing Places Fund (GPF) Programme. The Assistant Director of Regeneration outlined several proposed budget reallocations and it was noted that these changes resulted in no net increase in commitments. A proposed delegation for variations to approved projects was also discussed and Members endorsed the proposals for agreeing such changes.

 

9.2  DECISIONS:

 

a)  That it be agreed that variations to approved projects within the GPF programme be considered by the Deputy Chairs and Chair/Co-Chairs of the relevant Working Group on behalf of the LEP. Following receipt of their views, any changes would then be approved in line with the GLA’s Financial Regulations;

 

b)  That the proposal that £280,000 revenue which is no longer required by the City Skills project be reallocated to the London Works project (£100k) and to provide specialist legal, financial and evaluation support (£180k) be approved in principle;

 

c)  That expenditure of up to £250,000 of revenue funds for business case analysis, legal and financial support and evaluation work across the GPF Programme with £180k of this funded from the existing City Skills Fund allocation and £70k funded from anticipated Sanofi underspend be approved in principle;

 

d)  That it be noted that the revenue underspend from the Sanofi project and Open Institute Project will be considered as part of future funding decisions;

 

e)  That the changes to the Southall GPF project, as endorsed by the London Infrastructure Group, be approved in principle for onward GLA approval; and

 

That the progress reported in delivering the GPF programme be noted.

10.

Growing Places Fund (GPF): Reallocations (Part Reserved) pdf icon PDF 62 KB

Minutes:

10.1  The Panel received a report which proposed an approach for reallocating funding made available to the LEP under the Growing Places Fund (GPF) following the discontinuation of commercially sensitive negotiations on projects previously allocated funding. The Panel welcomed the proposal that project proposals received during previous bidding rounds be revisited in order to further develop viable proposals for funding.

 

10.2  DECISIONS:

 

a)  That the availability of £19.212m unallocated Growing Places Funds (GPF) be noted;

 

b)  That the proposed approach to re-allocating funds to projects on the GPF Round 1 and 2 pipeline list be agreed; and

 

c)  That a final recommendation be agreed at the next full LEP meeting.

11.

GPF Round 2 Projects- SME Finance Fund Update pdf icon PDF 75 KB

Minutes:

11.1  The Panel received an update on progress in developing the shortlisted SME Finance Fund bid from Capital Enterprise.

 

11.2  DECISION:

 

That the progress in developing the shortlisted SME Finance Fund bid, the London Co-Investment Fund from Capital Enterprise and SME Wholesale Finance Ltd (SMEWFL) be noted.

 

12.

Use of Urgency Procedure (Part Reserved) pdf icon PDF 85 KB

Minutes:

12.1  The Panel received a paper on the use of the urgency procedure.

 

12.2  DECISION:

 

That the use of the LEP urgency procedure in relation to the proposals set out in this report be noted

 

13.

Labour Market Update- December 2013 pdf icon PDF 85 KB

Minutes:

13.1  The December 2013 Labour Market Update for London report was noted.

14.

Date of Next Meeting

The next scheduled meeting of the Panel is at 3.00pm on 13 March 2014 in Committee Room 5, City Hall, The Queen's Walk, London, SE1 2AA.

 

Minutes:

14.1  The next scheduled meeting of the Panel is on 13 March 2014 at 3.00pm in Committee Room 5 at City Hall. 

 

15.

Any Other Business the Chair Considers Urgent

Minutes:

15.1  There was no other business.

16.

Close of Meeting

Minutes:

16.1  The meeting closed at 12:50pm