Agenda and minutes
LEAP Investment Committee - Tuesday 21 May 2019 3.30 pm

1.1  The Chair welcomed Members and attendees to the meeting, in particular Matthew Kaye, Policy Advisor at the London, Cities and Local Growth Unit, who was attending as an observer. There were no apologies for absence.

Members to declare any interests which they have in any of the items set out on the agenda. Unless dispensation has been granted ahead of the meeting, Members may not participate in any matter in which they have a pecuniary interest.

Members are reminded to review their individual register of interests before each Board or Committee meeting, submitting any necessary revisions to the LEAP Secretariat. Even if a meeting has not taken place a Member must, within 28 clear working days of becoming aware of any change to their interests, provide written notification to the LEAP Secretariat of that change.

Member Register of Interest forms are published at lep.london/about/members.

2.1  There were no declarations of interest in items set out on the agenda.

3.1  DECISION:

That the minutes of the meeting held on 27 March 2019 be agreed.

4.1  DECISION:

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

A report to be presented by James Hardy, Energy Efficiency Team Manager.

5.1   Members received a paper outlining proposals for the future of the Cleaner Heat Cashback (CHC) programme. The programme had a significant underspend, with a commitment of £168,000 against a £9.45million capital budget due to lower than expected take up. It was proposed to reduce the overall programme budget to £500,000 and transfer the remaining £8.95million to the Good Growth Fund (GGF) and Business Low Emissions Neighbourhood (BLEN) schemes. The Committee’s views were sought prior to the presentation of a final proposal to the LEAP Board on 12 June 2019.

[Note: Cllr Peter John joined the meeting at this point]

5.2  Members discussed whether the programme should continue to operate with the proposed £500,000 capital budget and discussed the possibility of transferring these funds to GGF and/or BLEN to ensure spend. Members heard that the £500,000 was based on supporting approximately 45 businesses over the following 12 months and that the boiler size threshold would be lowered to target to micro-businesses.

5.3  Members discussed the proportion of funds that should be transferred to GGF and BLEN and highlighted the need to ensure some of the funding was spent on projects that benefited the environment.

5.4  DECISIONS:

a)  That a full  ...  view the full minutes text for item 5.

A report to be presented by Laura Gilbert, Senior Policy Officer – Life Sciences, Regeneration and Economic Development.

6.1  Members received a paper outlining proposals for LEAP investment in MedCity. The proposed £100k investment over two years fell below the threshold of investment that the Committee would normally consider, but LEAP Co-Deputy Chair Angus Knowles-Cutler and Dr Celia Caulcott had been consulted on the proposal over several months and had asked for the Committee’s consideration.

6.2  Dr Celia Caulcott shared her hesitations regarding the additionality that the £100k funding would achieve when LEAP had previously invested a significant amount. She also believed that the funding would solely benefit the high-end knowledge sector and would not contribute to LEAP’s commitment to good growth.

6.3  Members considered MedCity’s achievements to dates and the options that would be available to investors should it cease to exist. Whilst officers were clear that an organisation of its kind was required, Members discussed whether such an organisation should be funded by the life sciences sector and not public money.

6.4   Members raised concerns that the outputs proposed in the paper were not quantifiable and that commitments to improving diversity did not go far enough.

6.5  DECISION:

That a further paper be presented to the Committee in September 2019, outlining MedCity’s purpose, outputs to date  ...  view the full minutes text for item 6.

A PowerPoint to be presented by Patrick Dubeck, Head of Regeneration.

[Note: It was agreed that Item 10 be taken at this stage of the agenda]

7.1  Members received a PowerPoint presentation[1] outlining proposals for the development of a new LEAP Communications Strategy. The presentation sought Member views prior to a formal paper being presented to the LEAP Board on 12 June 2019.

7.2  Members were very positive about the proposals presented and thanked officers for their work. In discussing the proposals, Members suggested that officers develop avatar profiles to improve LEAP’s understanding of its stakeholders and then build a framework of ways in which it can engage with them.

[Note: Having given apologies in advance, Natalie Campbell left the meeting at this point]

7.3  DECISIONS:

a)  That the presentation be noted; and

b)  That the draft proposals for presentation to the LEAP Board on 12 June 2019 be supported.

A report to be presented by Louise Duggan, North West Area Manager.

8.1   Members received a paper on the Good Growth Fund, which included an update on development funded projects, in replacement of the separate standing item. Officers were working towards all Round 2 projects being in grant agreement by end of Quarter 1 and there were 41 pipeline projects in receipt of development funding.

8.2  Members discussed the proposed Round 3 communications plan at Appendix A and asked that use of videos to evidence community benefit in applications be made optional, to be recorded using mobile phones, so to not become a barrier for applicants.

Action: North West Area Manager

8.3  DECISIONS:

a)  That progress to date on the Good Growth Fund be noted; and

b)  That the proposed Good Growth Fund Round 3 Communications Plan at Appendix A be endorsed.

A report to be presented by Jamie Dean, Area Manager – North East Team.

9.1  Members received a reserved report seeking an additional £80k LEAP funding from the Good Growth Fund contingency fund, as set out in DD2222 Part 2, to be made available to a project. The contingency fund enabled projects to apply for additional funding of up to 10% of the individual project value if cost increases became a barrier to delivery. The additional funding would be drawn on as required to ensure the sustainability of the significant regeneration project.

9.2  DECISION:

That the recommendations outlined in the reserved report be endorsed, in line with the process set out in DD2222 Part 2 that is associated with the Good Growth Fund contingency process.

[Note: The Area Manager – North East Team left the meeting at this point]

A PowerPoint to be presented by Nabeel Khan, Head of Economic Development.

10.1  Members received a PowerPoint presentation[1] outlining proposals for use of funds returned from the London Co-Investment Fund, which closed for new applications in March 2019. The presentation sought Member views prior to a formal paper being presented to the LEAP Board on 12 June 2019.

10.2  Members heard that the programme had been hugely successful in unlocking investment into SMEs; achieving more than double the target investment at 7:1 and creating almost three times the jobs expected to date at 1,760. The latest carrying value was 1.27x. Members also heard about the Fund’s successful targeting of disadvantaged groups, in particular BAME and female entrepreneurs; to date 22% of LCIF founders had been female, compared to an industry average of 8%.

10.3  In considering proposals for the reinvestment of exits to 2023, Members discussed the financing gap shifting to businesses needing to scale up and the likelihood of a recession.

10.4  DECISIONS:

a)  That the presentation be noted;

b)  That it be proposed to the LEAP Board that the returns from exits to 2023 be reinvested into follow-on investments in companies supported to date; and

c)  That a further review of the list of sectors to be targeted be  ...  view the full minutes text for item 10.

11.1  DECISION:

That the update be noted.

The next meeting of the Committee is scheduled for 10:00am on Thursday 18 July at City Hall, The Queen's Walk, London, SE1 2AA.

12.1  The next meeting of the Committee was confirmed for 10:00am on Thursday 18 July at City Hall, The Queen's Walk, London, SE1 2AA.

13.1   There was no other business.

14.1  The meeting closed at 5:13pm.