York North Yorkshire and East Riding Local Enterprise Partnership Board Meeting

4 March 2016 10.00-12.30

Harrogate College Hornbeam Park Ave, Harrogate, HG2 8QT AGENDA

Item Title of Item Enclosure Lead

1. Apologies for absence BD

2. Minutes of the Last Meeting –22 January 2016 1 BD

3. Matters Arising- action plan 2 BD

4. Chairs Update BD

5. Bio Vale Centre Business Plan 3 TF

6. Flood Defences Investment 4 JF

7. Local Growth Fund Update 5 AL

8. Draft YNYER SEP Update 6 JF

9. 2016/17 Delivery Plan 7 JF

10. Communication 8 TF

11. Performance Update JF

12. Any Other Business

Meeting Date Venue Agenda Items in addition to standing items; Minutes, Chairs Update & Performance and Finance

15 April 2016 Tennants Auctioneers Infrastructure.

27 May 2016 Bishop Burton Business.

08 July 2016 TBC LEP AGM

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York, North Yorkshire & East Riding Local Enterprise Partnership (The LEP) Date of meeting 22 January 2016

York St John University, York. MINUTES OF MEETING PRESENT Barry Dodd Chairman David Kerfoot The Kerfoot Group Ltd Nigel Pulling Yorkshire Agricultural Society Colin Mellors Higher Education Peter Emery NG Bailey Jane Lady Gibson Make it York Keon Lamberts University of York David Dickson David Dickson Ltd Cllr Carl Les North Yorkshire County Council Cllr Jane Evison East Riding of Yorkshire Council Cllr Derek Bastiman Scarborough Borough Council Cllr Richard Cooper Harrogate District Council Cllr Chris Steward City of York Council IN ATTENDANCE James Farrar Chief Operating Officer Sarah Barkey The LEP Tim Frenneaux The LEP Andrew Leeming The LEP Peter Campey BIS Richard Flinton North Yorkshire County Council APOLOGIES Dr Ruth Smith PM Management Consultants Sarah Church DEFRA Cllr Stephen Parnaby East Riding of Yorkshire Council Cllr Mark Robson Hambleton District Council Welcome from- BD welcomed the board to the first board meeting of 2016. Following on from the last meeting at GCHQ, BD mentioned that there was extra money being invested in to GCHQ and the summer school is being run again this year. 1. Minutes of last meeting: the minutes were agreed with minor amends. 2. The apologies were noted. 3. Matters arising/ LEP Board Outstanding Actions Log: The actions log was covered and the actions are to be updated.

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4. Chairman’s Update: BD has received a telephone call from the HM Treasure to discuss the devolution asks, of which they seemed very supportive. The board have received an invitation to the regional premier of Dad’s Army in Bridlington. Please let SB know if you would like to attend. Devolution- The board noted that various proposals were being developed and discussed. There is a timeline of March 2016 to have a mayor in place by March 2017. LEP Board recruitment, there are at present two vacancies on the board, the advertisement has gone on the website today. Actions: board members to let SB know if they would like to attend Dad’s Army Premier. 5. Flooding: JF talked through his paper on Flooding. The board discussed the following items.

There has been £13m pledged for the Foss Barrier.

Tadcaster Bridge has been classed as national major infrastructure, the bridge carried telephone lines for BT, the emergency services and the Armed Force. Following the bridge collapsed these services all lost telecoms.

DK JF and TF have looked at how the LEP can help going forward.

DK had been in contact with the two banks in the town to make sure that they don’t use this as an opportunity to reduce opening times.

99% of the businesses in Tadcaster are SME’s and the LEP putting boots on the ground and being visible was very important to them. JG said that with both York and Tadcaster.

The message of broken bridges and floods now needs to be superseded with the open for business message.

We now need to move towards welcoming people back to York, 3% of the businesses were flooded but 100% were affected. There is due to be a campaign from Visit England to say that we are open for business.

Stamford Bridge and Pocklington had some flooding and BD commented that there were two Royal visits to Tadcaster following the floods.

CS gave an update from City of York explaining that for a couple of days the message was not to come in to the City as some of the car parks were underwater and the roads were covered in mud. Also as some of the telephone lines were down a large amount of businesses were unable to take card payments. There are lessons to be learnt from this and how they go about getting the message out that the City is open for business. Most of the businesses are now back up and running and Council would like the media to stop showing pictures of York when they talk about flooding.

CM asked the LEP board to consider more flood defence work going forward. Central government funding is primarily aimed at people and homes and not for economic reasons. The concern is that in 6 months the economic impact will have been forgotten.

JG commented that there have been job losses and these people have been directed towards the hardship funds.

There have been some lessons learnt within communities, with more flood wardens and new business groups being formed.

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6. Local Growth Fund Update: AL talked through his paper, he thanked the three board members that have sat on his sub-committee for their help with complex projects. DB thanked AL and his team for all of their work on the Middle Deepdale site. Potential Delivery Risks- BD explained that a lot of work has gone in to these projects there is nothing usual with 25-30% slippage PE and DD commented that the earlier we can get involved with schemes the less slippage there will be as we will get better at managing the process. Also the mitigating in this paper is well thought out. Programme Variations-BD commented that Olympia Park is a difficult site. He wanted to acknowledge all of the work on this big site of strategic importance. CM said that as this site was very high on our list of priorities this needs to be kept on the radar. Skills Capital- There is a good pipeline for skills capital programmes. PE commented that we should have more projects like these available for the end of the financial year. Future Years Highways Projects-JE explained that the original proposal of dualling of the A1079 project came in over budget due to an underpass being needed. East Riding Council are happy with the revised plans for upgrading of roundabouts which will actually deliver greater value for money. RF explained that DfT modelling seemed to bring prices in at the top end of budgets. There was a discussion around lower costing projects that could bring higher returns, and that this should be looked at when picking projects. JF has said that if we have underspend this needs to come back to the board. Budget Variations. PC said that the work AL has done on this has been excellent and this has put us in a strong position. Recommendations. Olympia Park LEP Board:

Acknowledged the strategic importance of the Olympia Park site and agreed in principle the options being explored in taking this project forward and that a more detailed report will be considered by the Infrastructure Board at its next meeting and subsequently presented back to the main LEP Board.

Agreed that the £2.4m 2015/16 allocation for this project is maintained and moved to 2016/17. This slippage in 2015/16 being taken up by bringing forward the NY Road Improvement Programme.

Skills Capital LEP Board:

formally ratified the variation to the overall Growth Deal Programme as set out in the budget variation table

Highways Schemes LEP Board approved the following

That the A1079 funding initially approved for dualling parts of the route, is now reallocated to the identified improvements at Killingwoldgraves and Dunswell roundabouts.

That the £1.67 million underspend from the A1079 scheme, is reallocated to fund the increase in costs associated with the upgrade to A1(M) Junction 47

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That the LEP board receives further updates on costs estimates from East Riding and North Yorkshire County Council's following further detailed design and preparation work to take in to account any decreases in optimism bias and contingencies.

NY Strategic Road Improvement Programme. The LEP board ratified the that £2.7m of future allocated LGF is brought forward from 2016/17 to the NY Road Improvement programme as set out above. Overall Profile LEP Board formally agreed the variations to the Growth Deal budget profile as set out in Table 3 of the 22 January 2016 Local Growth Deal Update paper, table 3 is shown at the end of these minutes. 7. How’s Business Update: TF and DK talked through the paper. TF commented that Southend growth Hub has held a Pop Up café, using our model. DK commented that the Pop-ups were now demand led and that we had won a national award. The passion from the team of four is plain to see. This also delivers better value for money than models used by other LEPs that used paid advisors. BD commented that the LEP network might be able to get sponsors to help to run these cheaper. Also the issues with the How’s Business website have been resolved. JG explained that the £500 grant to business networks was working well and was a lot of money to these small networks. 8. Small Business Update: TF talked through this information paper. PC said that following the issues with the ICT call this needs to be fed back up to BIS. The board discussed the issues with EU funding and AL stated that he could bring a paper to the board to show how it is align with the SEP. There was a discussion around the Northern Investment Bank and the need to make sure that we have enough projects going forward to make sure there is a return on our investment. Action: Al to bring an EU funding / SEP paper to the board. 9. Performance Report: JF talked through the performance paper. JF explained that the Innovate UK Science & Innovation Audit is a national project to connect geographical thinking with world class R&D. This is about strategic positioning for the region, and could then lead on to future funding. On the skills Area Reviews we are in phase 3 of the National Programme which will start in our region September 2016. KL talked about the Apprenticeships levy and asked if we can look at this at a strategic level. JF agreed that this need to be looked at and said that he and Annabel Jelley would meet with KL to discuss further. BD explained that Graduate Sponsored Apprenticeships were big in Germany. Recommendation: Actions: JF, KL and AJ to meet to discuss Apprenticeships Levy. SB to organise. 10. AOB- None The next meeting is 4 March 2016 at Harrogate College. The meeting closed at 12.25 pm.

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Table 3: Budget Variations

This Financial Year 2015/16

All Years 2015-21

Project Name Original Revised Variance

Original Revised Variance

£m £m £m £m £m £m

Business Growth

National Agri-Food Innovation Campus. 0.3 0 -0.3 8.3 8.3 0

York Bio-Hub. 1 0 -1 5 5 0

Skills Capital

Harrogate College. 4 2.83 -1.17 4 3 -1

Askham Bryan College - Agricultural Skills 1 1 0 1 1 0

Askham Bryan College -Engineering Centre. 0.6 0.6 0 0.6 0.6 0

Skills Capital projects (Additional Call for projects)

0 0.17 0.17 0 1 1 • Derwent Training Equipment

• Selby College Equipment

• Craven College new build

Strategic Sites

Housing growth at Scarborough. 2.3 2.3 0 2.3 2.3 0

Growth at Catterick Garrison. 1.2 1.2 0 1.2 1.2 0

Housing and employment at Northallerton. 1 1 0 6 6 0

Olympia Park, Selby – LGF 2.4 0 -2.4 8 8 0

Skipton Employment -Flood Alleviation Scheme (Growth Deal Extension)

0 1.2 1.2 1.2 1.2 0

Malton Agri Business Park (Growth Deal Extension)

0 0.8 0.8 2.1 2.1 0

Olympia Park, Selby HCA Loan (THIS IS DEALT WITH DIRECTLY BY THE HCA – NOT PART OF THE LEP GRANT)

3.5 0 -3.5 3.5 3.5 0

Transport

Newlands Bridge Drax-M62 1.5 1.5 0 1.5 1.5 0

North Yorkshire Road Maintenance Scheme (DEALT WITH DIRECT WITH DfT)

0 2.7 2.7 24 24 0

A1079 – Improvements (Growth Deal extension)

0 0 0 8 6.3 -1.7

A1/A59 improvements (Growth Deal Extension)

0 0 0 0.8 2.5 1.7

East Riding Road Maintenance Scheme (DEALT WITH DIRECT WITH DfT)

0 0 0 16.7 16.7 0

Pre-allocated transport funding (THIS WILL NOT FORM PART OF THE LEP GRANT)

15.5 15.5 0 28 28 0 1. Bedale Bypass (£18.4m)

2. York-Harrogate Rail Improvements (£9.6m)

Total value of Growth Deal 34.3 30.8 -3.5 122.2 122.2 0

Business

Hows Business Growth Hub

33,000 Business Engaged

4.665 Accessing Support

£400m Investment Fund Launched

New Programmes

Start Up

Innovation Support

Supply Chain Development

Tourism Infrastructure & Support

IT Infrastructure (Rural Broadband)

Forward Plans

Low Carbon Strategy

Science & Innovation Audit

Northern Poiwerhouse Inward

Investment

UKTI Export Plan

Infrastructure

£17.3m LGF Investment

£xxm Growing Places Returns

£3.5m HCA Loan to Olympia Park

Investment Complete:

Malton Agri-Food Park

Skipton Flood Scheme

Middle Deepdale Access Road

Catterick Junctions

Bedale Bypass

Sherburn Industrial Estate

Forward Plans

York Central Enterprise Zone Plan

Implemented

Strategic Economic Plan Update

Growth Town Plans

Yorkshire Coast Plan

Transport Invewstment Plan

Skills

£0.9m LGF Investments

4 College Capital Investments Complete

30 Schools Engaged in Careers

Programmes

New Programmes:

Skills Support for the Workforce

Apprenticeships

Higher Level Skills

Not in Eductation, Employment or

Training (NEET)

Careers & Employability

Big Lottery Building Better Opportunities

DWP Access to Employment

SFA Community Grants

Forward Plans

Apprenticeship Plan

FE Area Review

Higher Level Skills Plan

Skills Capital Investment Plan

Organisational Development

Stakeholder Plan & Survey

Board Development Plan

Devolution Deal

Long Term Financial Plan

Full Audit Compliance

Fully Transparent Processes

2016/17 Delivery Plan

Summary

Key Economic Indicators

KPI's

Committed Investments

Growth Hub

Pop Up Business Café's

Tourism Innovation

BE Groups Business Growth Fund

33,000 businesses engaged

4665 Acessing Support

15 Pop Up Café's

EUSIF - Finance Opt In

Northern Powerhouse Investment

Fund

£400m Fund Launched

EUSIF - In Development

Business Start Up

Innovation Support

IT Infrastructure (capital)

Supply Chain Development

Tourism Infrastructure

Tourism Support

New Programmes Launched

Future EUSIF Activity

Potential Content Fund

IT Business Support

Market appraisal & Specification

Complete

LGF Capital Investments

NAFIC

York BioHub

£3m LGF Investment

To be Reviewed following Board

Investrment Decision

EUSIF - In Development

Bio-Economy Innovation

EAFRD Rural Productivity

TBC following Board Investrment

Decision

Future Activity -

National Agri-Food Innovation

Network

Low Carbon EUSIF Call

Market appraisal & Specification

Complete

Strategy/Planning

1. Science & Innovation Audit

2. Low Carbon Strategy

3. Northern Powerhouse Inward

Investment Plan

4. UKTI Export Joint Working Plan

Strategies/Plans Adopted

Agri Food & Bioeconomy

Activity

Ambitious, profitable small and

micro businesses

BusinessNo. Businesses

Start Ups / Closures

Productivity

Innovation

Exports

Inward Investments

Superfast Broadband Coverage / take up

Key Economic Indicators

KPI's

LGF Committed Investments

Askham Bryan Agri-tech,

Askham Bryan Engineering,

Harrogate College

Craven College

£0.9m LGF Investments

Askham Bryan x2 Complete

Harrogate College Complete

Craven College Complete

LGF Future Pipeline

FE Investment PlanPipeline Investments developed

EUSIF - SFA Opt In

Skills Support for the Workforce,

Apprenticeships,

Higher Level Skills

New Programmes Launched

Future EUSIF Activity

Targetted sector research,

Higher Level Skills inc Graduates, Interns,

Enterprise, Apprenticeships

Leadership and Management

Market Appraisal & Specification

Complete

Committed Investments

Careers Guidance Pilot

Careers & Enterprise Company

Scarborough Engineering Week

30 Schools in York & North

Yorkshire.

EUSIF - In Development

NEET,

Employability,

Careers Informartion, Advice & Guidance

New Programmes Launched

EUSIF - Big Lottery Building Better

Opportunities Opt InNew Programmes Launched

EUSIF - DWP Access to Employment Opt In New Programmes Launched

EUSIF - SFA Community Grants New Programmes Launched

Strategy/Planning

1. Apprenticeship Plan

2. FE Area Review

3. Higher Level Skills Plan

4. Skills Capital Investment Plan

Strategies/Plans Adopted

Social Inclusion

Young People

Activity

Skills Capital

Workforce Skills

Skills

No. Jobs

Skills Levels

Apprenticeships / Higher Level Apprenticeships

NEETs

ESA/JSA Claimants & Costs

Graduate Retention

Key Economic Indicators

KPI'sGrowing Places Committed Investments

Potter Group,

NYM Railway,

NAFIC,

Whitby Business Park,

Sherburn Industrial Estate

Investments Managed

Min £xx Returns

Growing Places Future Pipeline -

Secure funding

Market engagement & project developments

Pipeline Investments developed

LGF Infrastructure Investments

Middle Deepdale,

Olympia Park,

North Northallerton

Malton Business Park

£11.9m LGF Investment

£3.5m HCA Loan

Malton Agri Park opened with1st

tenant

Skipton Flood Scheme Opened

Middle Deepdale Road Complete

LGF Pipeline Growth Plans agreed for key towns

& City of York

Housing Growth

Housing Delivery Investment Plan (via Housing

Board)

HCA Investment Attracted

York Central Enterprise ZoneEnterprise Zone Delivery Plan

developped & on track

LGF Transport Committed Investments

Catterick Junctions

NY Highways Maintenance,

ER Highways Maintenance

Bedale Bypass

£5.5m LGF Investment

Cattrerick/Bedale Bypass Complete

LGF Pipeline

A1/A59 Junction

A1079

Investments Contracted

Strategy/Planning

1. SEP Update

2. LGF Round 3 Bid

3. Evaluation Plan Implemented

4. Growth Town Plans

5. Yorkshire Coast Plan

6. Transport Investment Plan

Strategies/Plans Adopted

Well Connected Economy

Activity

Successful Distinctive Places

Infrastructure

Houses built

Planning permissions granted

Flood stats

Transport Indicsators TBC

Activity KPI's

Project Management

IT System Developed & ImplementedSystem operational

Staff Development

Team Development Plan

Individual Development Plans

Staff Survey Results

Stakeholder Plan

Annual Report, AGM, Media/PR,

Social Media/Twitter, LEP Website

LA Liaison Plan, Government

FE Principals, Business

Stakeholder Plan KPI's TBC

Stakeholder Survey Results

Board Management

Main Board

Skills Board

Infrastructure Board

Growth Hub Board

Board Briefings

Board Member Activity

Board Survey Results

Audit

Assurance Framework

LGF Audit

Overview & Scrutiny Committee

LA Partner Overview & Scrutiny

Satisfafctory compliance with all

audits

Finance

Long Term financial Plan developed

Financial Reporting Implemented

Long term financial plan approved

by Board

TransparencyAll Board & Investment Papers

Published

Devolution Support development of devolution plansDevolution deal secured with

Government

Organisational Developoment

Good Governance

LEP Management

Organisation Chart

COOJames Farrar

Deputy COOTim Frenneaux

Business Growth6.5 FTE

Growth Hub Mngr

Simon King

Growth Hub Grad placement Alex McDonnell

Small Bus SupportLiz Barker

Karen Booth

KAM/UKTI0.5xMark Haynes

(Hambleton)

Agri-tech & BioeconomyGesa Reiss

Food Innoation Network Manager

TBC

Online & Communications

2 FTE

Comms OfficerPenny Coles

Comms Intern

Vacancy

Senior ManagerAnnabel Jelley

Skills3.5 FTE

Skills Support

Pete Johnson

Skills Support

Vacancy

Careers & Ent0.5xLouise Lunn

(Ryedale)

Careers & Ent0.5xJames Curran

NYBEP

Social Inclusion0.5 x Vacancy

Deputy COOAndrew Leeming

Infrastructure2.5 FTE

Housing & Spatial Planning

0.6 x Julian Rudd

Rural & Growth Town

0.5xDavid Smurthwaite

Transport Secondmenrt

0.5 x James Gilroy

Coastal Secondment

0.5xLiz Philpott

Housing Board0.4xSarah Hall

Strategy Development

3.8 FTE

Research Officer Vacancy

Research InternVacancy

EU Technical Assistance

0.2xClaire Watts0.6xPip Betts

LEADERHelen Patchett

Senior ManagerAdrian Green

Investment Management

3.6FTE

Finance Support Pam Preston

Technical Support Norma Hood

Legal Support 0.6x Maria Hill

Project Manager

Exec Support0.5xSarah Barkey

Organisation Chart

Total Cost

LEP/LA

Core

Funds

Growing

Places

Growth

Hub

Local

Growth

Fund

Careers &

Enterprise

Company

LEADEREU Technical

Assistance

LEP

Reserves

Staff Costs inc. 8 Secondments 1,206,000 861,000 66,000 74,000 124,750 28,750 34,500 0 17,000

Accomodation & Meetings 42,000 42,000 0 0 0 0 0 0 0

Comms & Online 35,000 35,000 0 0 0 0 0 0 0

Professional Services 50,000 0 0 0 50,000 0 0 0 0

Evaluation 10,000 10,000 0 0 0 0 0 0 0

Office Sundries 5,000 0 0 0 0 0 0 0 5,000

IT & Project Management 10,000 0 0 0 0 0 0 0 10,000

Programme Delivery

Business excl Local Growth

Capital Growth Hub 193,000 0 0 172,000 0 0 0 0 21,000

Skills excl Local Growth CapitalCareers Enterprise Company 47,000 0 0 0 0 45,000 0 0 2,000

Contingency 30,000 0 0 0 0 0 0 0 30,000

Total Costs 1,628,000 948,000 66,000 246,000 174,750 73,750 34,500 0 85,000

Income Details

NYCC 205,000

E Riding 60,750

York 40,500

7x Districts (£20,250) 141,750

Total LA Income 448,000

BIS 500,000

Total Secreatariat Core Funds948,000

Capital Receipts

Growing Places Revenue 66,000 Local Growth Fund Capital £20,825,250

Growth Hub 246,000

Local Growth Fund

(capitalised costs) 174,750

Careers & Enterprise Company73,750

LEADER 34,500

EU Technical Assistance Eligible Activity to be confirmed 0

Reserves 85,000

Total Income 1,628,000

Funded by

Board Meeting: 4th March 2016 Report Presented By: Tim Frenneaux Title of Paper: Biovale Centre 1.0 Purpose

1.1. For the LEP Board to make an investment decision on the latest Biovale Centre Business Plan submission which is seeking £5m Local Growth Deal funding.

2.0 Background 2.1 The Board will be aware that a previous business plan submission, seeking Local

Growth Funds (LGF) was considered by the Board at their July 2015 meeting. At that point the Board chose to reject the proposal.

2.2 Subsequently, York, North Yorkshire and East Riding LEP, along with Leeds City Region LEP have been working with the applicant (now University of York) to develop the proposal. This involved discussions on the operating model for the Centre, the approach to State Aid compliance and the commissioning of a Market Assessment, the £50,000 costs for which were jointly met by the LEP and the University of York.

2.3 The Centre is seeking £8m of LGF funding: £5m from York, North Yorkshire and East Riding LEP and £3m Leeds City Region LEP. In parallel with the LGF submission, the University of York is also seeking £8m of ESIF European Regional Development Funding.

2.4 Following the 2015 rejection, both LEPs have protected allocations within the LGF and managed associated slippage of projected spend from 2015/16 into subsequent years.

2.5 In the light of the Board’s July 2015 decision, Leeds City Region LEP chose not to take a formal investment decision on the previous submission. Leeds City Region will be taking an investment decision in March this year, with their Investment Committee scheduled for 9th March.

2.6 Significant changes to the business plan in the intervening period included:

Bringing York Science Park on board to market and operate the Centre, rather than the Biorenewable Development Centre (BDC) as previously

Revised rental fees to the BDC to avoid issues with State Aid by charging market rates.

Revised financial projections for the Centre.

Revised match funding contributions from University of York, down to £1m from £2m.

Revisions to the proportion of the Centre allocated to Office/Lab/Hangar/Communal space

3.0 Evaluation 3.1 North Yorkshire County Council, as the York, North Yorkshire and East Riding LEP’s

accountable body, commissioned an independent State Aid Assessment. This concluded that the Project will be compliant from a State Aid perspective.

3.2 Leeds City Region LEP commissioned an independent appraisal of the Business Plan Submission on behalf of both LEPS. This concluded the project should be categorised as Red for delivery for the following reasons:

3.2.1 Concerns remain over the demand of this type of facility, and the extent to which this has influenced the design and function of the building.

3.2.2 Significant concerns over the Financial Case of the project and longer term viability. The revised projections indicate on-going public sector support will be required to sustain the project and the anchor tenant: the BDC.

3.2.3 The Economic Case does not provide a robust case for the intervention, ie the cost/benefit ratio is low for the anticipated outputs, which are considered optimistic.

3.2.4 Annex 1 provides the independent evaluation report

4.0 Recommendation 4.1 The Board are recommended to reject the Business Plan. 4.2 Recognising the strategic importance of the Bio-economy to our long term economic

success, the Board are recommended to establish a LEP led working group that can work closely with the Biovale Steering Group to establish plans for major investments that realise the potential of agri-food and bio-renewables sector.

4.3 The business plan included the purchase of open access equipment that would help businesses test new bio-refining processes. The potential for a revised submission to fund this equipment to contribute in the immediate term to the development of the sector should be considered.

Annex 1: Independent Evaluation Annex 2: Market Assessment Executive Summary

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BOARD MEETING: 04 March 2016 REPORT PRESENTED BY: Tim Frenneaux TITLE OF PAPER: 2016 COMMUNICATIONS STRATEGY 1.0 Purpose of Report 1.1. To provide the Communications Strategy for our Board to note and comment upon. 1.2. To ask for a response to a recommendation – point 14.

2.0 Our Aim 2.1 We shall be superb at building the profile of the LEP by telling our story engagingly

through high quality, timely, well-targeted communications that maximise our resources and impact.

3.0 Summary 3.1 After achieving a great deal with our communications last year - particularly the AGM,

there was a subsequent pause whilst we recruited. Now, our focus is firmly back on engaging stakeholders and the media.

3.2 Given devolution, we must continue to build on our transparency and to be better at selling our story to MPs.

3.3 Overall, our communications strategy will be based upon three strands: selling ourselves better, collaborating with our partners and maximising our impact.

4.0 Background and Context 4.1 2015 was described as the year when `rocket-boosters’ were put under LEPs. In

Communications much was achieved. We separated the LEP website from How’s Business, had our first annual conference and published our first annual report. We did a great job engaging with our businesses. This year more of our Skills and Infrastructure activities have moved from strategy to delivery, and we can focus on increasing engagement in these areas.

5.0 Strategy 5.1 This will be proactive and reactive, juggling our daily commitments with strategic

responsibilities. Overall, the strategy will be based upon three strands: selling ourselves better, collaborating with our partners and maximising our impact.

5.2 Our focus is getting the communications activity back up and running. We will continue to establish transparency whilst also raising the LEPs profile by engaging with the right tone, imagery and style. Timely, well-coordinated communications that maximise our impact. We will utilise joint promotional opportunities with our key partners such as local authorities, district councils and businesses, and we will develop specific campaigns to reflect the needs and growth aspirations of our patch.

6.0 Plan 6.1 By giving the LEP a clear voice, we will clearly articulate our SEP targets and how to

achieve these with our stakeholders. Our Communications Plan sets out our channels, themes and timelines.

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7.0 Budget 7.1 We will maximise our budget (£35,000) by prioritising spend on joint promotional

activities, and other activities that have the most impact.

8.0 Resource 8.1 Reporting into Tim Frenneaux we have a senior communications officer, and we are

planning to employ two interns on a part-time basis, equivalent to one full-time employee.

9.0 Monitoring and Return on Investment 9.1 Activity will be checked and monitored via a Communications Dashboard.

10.0 Key Messages 10.1 Our communications will reflect our priorities and help make them a reality. We will

seek to understand our stakeholders’ perceptions of us as well as their needs, and we will communicate accordingly. Please see Appendix A for an initial draft of our key messages.

11.0 Media 11.1 We will use the media to sell ourselves better, build our profile and to communicate

with some of our stakeholders. 11.2 Overall

To maximise coverage and make the best use of our resources, we will contribute to partner releases and produce our own media campaigns where we have a strong lead. The latter offers us the best opportunity for media coverage. We are updating our media lists and will organise meetings with key media. Channels have been opened with highly influential news outlets (Look North and The Today programme for example). Where there is the possibility for national news coverage, these opportunities will be looked into and pursued as appropriate.

11.3 Spokespeople The LEP Chairman and Board Directors are key figureheads for the organisation and best placed to speak on our behalf. A list of Board member spokespeople and their deputies will be agreed, drawn up and circulated.

11.4 Reputation We will aim to maintain our reputation with a strong pipeline of positive stories, and to manage risk by looking ahead, mitigating them where possible and communicating the right messages.

11.5 Media Training Where there are spokespeople who haven’t received media training we will do our best to offer it.

12.0 Stakeholders 12.1 We will work our partners and stakeholders by delivering high quality, timely and

appropriate communications to build our reputation and brand. We intend to engage our stakeholders to create a sense of ownership and to build advocacy and champions. The following stakeholders have been identified to particularly focus upon currently.

12.2 LEP Board

The LEP is working to ensure a high level of transparency through its communications

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activity. Board member biographies are being updated and LEP Board minutes are being published. We’ll also be looking at publishing some of the recommendations from the Localis (Lloyds Banking Group) report The Next LEPS as part of the Stakeholder study.

12.3 Neighbouring LEPs In Communications, we will aim to work with our neighbouring LEPs to share best practice, and help clarify any confusion on overlapping boundaries.

12.4 MPs Our LEP needs to better at selling its story to Westminster, and communications with MPs need to be increased. A review of the political landscape is being put together. The programme of Briefings should also be developed to provide clear, concise, newsworthy insights on high priority topics. These are being looked into and scheduled.

12.5 Stakeholder Survey In 2014, some informal research was completed to see how our stakeholders felt about the LEP. The feedback was mixed. Some wanted to see greater transparency around our work and more examples of how we work with our partners. We have increased transparency through our annual report and conference, and are publishing increasing news about our activities. We are planning a survey this year.

13.0 Communications and Digital Marketing Channels 13.1 Website

Work continues to clearly voice the LEPs far-ranging activities on our website. Our focus is on editing and adding content. We are requesting better images from partners to sell our messages (women engineers, men in healthcare), and will commission new photography to support this when required.

13.2 Social Media Regular updates are being scheduled into twitter with an interesting mix of content. A wider strategy can be considered.

13.3 Monthly Newsletter A monthly email newsletter will be written for stakeholders and partners showcasing our work and asking for participation when needed.

13.4 Annual Conference This provides stakeholders and partners with an opportunity to hear what has been achieved and our future activities. Our first was held last year. We are coordinating it again with Local Government North Yorkshire and York who host a meeting at the event. It is being held on 8 July. Venues, themes and speakers are being researched. Pavilions of Harrogate has been provisionally booked. More ideas are always welcome. Marketing will start in April.

13.5 The annual report To explain our work and to be transparent, our first annual report was published last year. Planning for this year’s will start in March. Publication will coincide with our annual conference.

14.0 Recommendation 14.1 The Board are asked to consider how they want to monitor communications activity

going forward. More details are available in relation to the Communications work including a Dashboard, Communications Plan and Stakeholder Matrix.

14.2 Options include continuing to monitor via this Board or setting up a smaller group to steer and look at the Communications in more detail.

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Appendix A: Key Messages

1.0 Overall LEP

We are:

1.1. Creating the conditions for growth.

2.0 Priority 1 – Profitable and Ambitious Small and Micro Businesses

We are:

2.1. Making it simpler to be successful in business, for established businesses as well as start-

ups and growth businesses.

2.2. Doing a few things well: our sole sector priority is agri-food and the bio-economy,

though we do recognise the prevalence of Visitor Economy and Care sector businesses,

and the growing importance of creative and digital.

2.3. Ensuring that How’s Business and Popup Business Cafés are amongst the most

innovative and engaging low cost approaches to business support

2.4. Listening to the needs of business owners and responding appropriately.

2.5. Working together with other LEPs at the right scale to make impact.

3.0 Priority 2 – A global leader in food manufacturing, agri-tech and biorenewables.

We are:

3.1 Enabling small and micro businesses to access new intellectual property, technology and

processes to drive commercial value.

3.2 Enabling small and micro businesses to drive commercial value.

3.3 Connecting the agri-food and bioeconomy sectors.

3.4 Attracting investment to our area and our businesses.

3.5 Developing the skills needs by businesses for the future.

4.0 Priority 3 Inspired People

We are:

Increasing the employability of our young people.

4.1 Helping attract and keep young people in our area.

4.2 Developing our local workforce.

4.3 Helping communities build the right skills, attitude and ambition to help people access

jobs.

4.4 Working to ensure the area has the right investment in skills infrastructure.

5.0 Priority 4: Successful and Distinctive Places

We are:

5.1 Unlocking housing growth.

5.2 Fast-tracking employment sites for high value sector growth.

5.3 Galvanizing market demand on the coast.

5.4 Enabling sustainable rural economies.

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5.5 Investing in infrastructure to unlock employment and housing growth.

5.6 Investing in infrastructure for growth.

6.0 Priority 5: A Well Connected Economy

We are:

6.1 Improving East West connectivity, particularly between towns and neighbouring cities.

6.2 Maximising high speed rail investment through station improvements and better access.

6.3 Easing congestion in York and Harrogate.

6.4 Enhancing the road network’s resilience particularly to flooding.

6.5 Ensuring widespread telecommunications and broadband.

Longer How’s Business messages.

BOARD MEETING: 4 March 2016 REPORT PRESENTED BY: James Farrar TITLE OF PAPER: FLOOD DEFENCE INVESTMENT

1.0 Purpose 1.1 The purpose of this paper is to seek LEP Board approval to accept a Loan of up to £2.5m from

North Yorkshire County council to allow the LEP to invest in flood defence projects in 2016/17. The loan will be secured against future available Local Growth Fund monies.

2.0 Background 2.1 The flooding between Christmas and the New Year across much of the North of England

highlighted the importance of flood defences and the potential impact on businesses when areas become flooded. Over 250 businesses were flooded in our LEP area, whilst flood related damage to Tadcaster Bridge and A59 at Blubberhouses has closed key roads for a significant period of time. Currently, it is expected to take 9-12 months to repair or replace Tadcaster Bridge, whilst the A59 between Harrogate and Skipton will be closed until at least the end of February to assess and secure land slippage. In cases such as these, the impact on businesses is far longer effect than the flooding itself.

2.2 There is a need to further invest in flood defences protecting our town centres and key business parks from future flooding. This will increase the investor attractiveness to these places and help support the competitiveness of businesses, safeguarding against potential job losses.

2.3 The LEP has already successfully invested in flood defences, investing alongside the Environment Agency in flood defences in Craven which will enable the future safe development of the South Skipton Employment Zone.

2.4 Availability of funding is the key issue and whilst the LEP has secured a £122.3m Local Growth Fund Deal, this money is currently fully allocated against specific projects.

2.5 The LEP and North Yorkshire County Council have been working together to explore ways in which collectively we could accelerate investment in key flood defence infrastructure.

3.0 The Proposal 3.1 The proposal is to allocate up to £2.5m of future Local Growth Funding to support flood

defence investments in 2016/17 which will either protect key business parks or town centres.

3.2 The future Local Growth Funding (LGF) will come from either; (a) Future LGF Bidding Rounds, (b) Current LGF project underspend; or, (c) LGF returns (Olympia Park, Selby is a loan)

3.3 Subject to the LEP Board agreeing to allocate up to £2.5m against future LGF, North Yorkshire County Council have agreed to provide the LEP with an interest free loan to allow the flood prevention work to be complete in 2016/17. This will significantly accelerate key flood defence work protecting key businesses, homes and town centres in the LEP area.

3.4 North Yorkshire County Council will be repaid when the LEP secures funding from one of the above detailed sources. The table below provides a risk summary of securing future LGF;

Funding Source Risk

Future LGF Bidding Round In the Chancellors Autumn Statement in 2015, the Chancellor re-confirmed the government commitment to providing LEPs with £12bn nationally. Currently c.£7.5bn has been committed, therefore it is reasonable to expect that there may be up to £4.5bn potentially available nationally to bid for. Whilst the process is likely to remain competitive, and the content of monies (i.e departmental contributions and restrictions) remain unknown, based on success levels in current LGF bidding rounds the LEP could reasonably expect to target £65-£75M from the remaining £4.5bn. Given the national profile of the recent flooding, it would be unlikely that flood defences were excluded from bids. It should be noted this funding would likely be for years 2017/18-2020/21.

Project Underspend Whilst all £122.3m LGF remains allocated against specific projects, there are several projects which are classed as high risk. In particular,

£2.3m investment in National Agri-Food Innovation Campus (with a further £6m allocated for future years)

£8m Loan to support housing growth at Selby (Olympia Park)

Future LGF returns Should the £8m Olympia Park investment succeed, and it remains a priority, the investment will be a loan, repaid as the housing site is developed.

In addition the £2.3m Middle Deepdale Investment, in Scarborough, whilst a grant, contains an overage clause providing the potential for further repayment.

Summary Committing £2.5m to flood defences, funded in 2016/17 by North Yorkshire County Council and secured against Local Growth Funding presents a very low risk.

The largest risk is not if the £2.5m will be repaid to North Yorkshire County Council, it is specifying the exact year given the current unknowns around future Local Growth Funding bidding rounds and decisions on projects at risk.

Whilst I would expect to repay the loan earlier, I propose a ‘backstop date’ of 2020/21 when the current Growth Deal expires, with North Yorkshire County

Council having first call on project underspend or LGF returns in the interim.

Confidential Annex A provides a risk appraisal of all Local Growth Funding Projects for current and future years.

4.0 Identifying & Approving Projects 4.1 We are aware of several potential investment opportunities as a consequence of flooding,

including examples whereby then long term future of major employers could be at risk.

4.2 To ensure good governance and transparency we have issued a call for flood defence projects. All Local Authority partners and Environment Agency are aware of the call. This call has been issued at risk with a closing date of 31 March 2016.

4.3 All submitted projects will be subject to due diligence and recommendations will be submitted to the LEP Infrastructure Board for approval/rejection and prioritisation. This ensures decisions are made in accordance with the LEP Assurance Framework.

4.4 We anticipate investment decisions to be finalised April/May 2016 with all infrastructure work complete in 2016/17.

5.0 Recommendation That the LEP Board approves accepting a loan of up to £2.5m from North Yorkshire County

Council to support investment in Flood Defence infrastructure. The Loan will be repaid against future Local Growth Fund Monies. North Yorkshire County Council will retain first call over Local Growth Fund underspend or returns until the Loan is fully repaid.

1

BOARD MEETING: 4th March 2016 REPORT PRESENTED BY: Andrew Leeming TITLE OF PAPER: Local Growth Deal Update – Report of the LEP Growth Deal

Performance Sub Group. Purpose of the Report 1.0 This report is presented to the main LEP Board from the LEP Growth Deal Performance Sub

Group with the purpose of:

Reporting progress of the York, North Yorkshire and East Riding Local Growth Deal (Local Growth Funding);

Considering delivery issues and risks and mitigation measures to this Board;

Local Growth Funding Progress 2.0 The Local Growth Deal for York, North Yorkshire and East Riding totals £122.2m supporting

21 capital projects. This is made up of the Round 1 July 2015 announcement of £110.1m (2015 to 2021) for 14 projects, together with the Round 2 January Announcement of £12.1m (2016 to 2021) for 4 projects, and as a result of funds being made available through underspends, a further 3 new skills capital projects.

3.0 Progress update At the last LEP Board meeting a comprehensive report was presented that agreed a series of variations to the programme and the latest position on delivery and risk. This report therefore provides a brief update on the current position as we approach the end of the first year of the Local Growth Fund.

4.0 Financial position As reported at the last meeting spend has been slow during the first year. However since the last meeting spend is currently at £9.8m against a budget for the year of £15.3m. This is significant progress on what was reported in January 2016 (spend was at £2.5m). There is still some way to go but forecasts for the final month suggested full spend in 2015/16.

5.0 The successes since the last meeting:

The three Skills Capital Projects, two at Askham Bryan and one at Harrogate College, totalling £4.6m are now all fully on site, with significant building works completed;

Catterick Road improvements has started on site in January, Newlands Bridge improvements have been fully completed, Skipton Flood Alleviation Scheme is now well into construction phase, Malton agri business park is due to start on site shortly and work has started at Middle Deepdale;

Funding agreement has been issued to Hambleton District Council for the North Northallerton Development Area and is should be signed by the date of this Board meeting;

A further two skills capital projects at Selby College and Derwent Training College have been issued funding agreements.

6.0 Delivery issues:

To get to the £15.3m spend target for this year there are still some actions required:- Harrogate College to progress as scheduled; New arrangements made to ensure payment of the LGF before the

end of the year for the Askham Bryan projects; Agreements signed and payment made for the North Northallerton

project. There is a low level of risk with each of these and arrangements are in place to ensure their delivery.

2

The major housing and employment development site at Olympia Park Selby has encountered some major delivery delays which means that they would not be able to take up their 2015/16 LGF allocation. Alternative plans are still under discussions.

A revised full business case was submitted and has been appraised for the Biohub project, this is the subject of a separate Board Paper.

Moving into 2016/17 it is already clear that there is a high risk against three significant projects which take up approximately 50% of next year’s budget allocation. It is therefore essential, and work is progressing on this, to begin to bring forward a good range of reserve projects. Discussions have already started with Local Authorities and other Partners to mitigate the risk. In addition there will hopefully be the launch of a further round of Local Growth Funding which we need to be prepared for with a good stock of pipeline projects.

7.0 Table 1 below provides a summary of the programme tracker detailing the progress towards

delivery of each of the projects for which we have been awarded Local Growth Funding. This table focuses on projects that spend in 15/16.

8.0 Summary –The last month has seen significant progress in terms of project starts and spend moving towards delivery of the 2015/16 profiled expenditure. The biggest risk going forward, however, is the stock of high quality projects coming forward to either take up any potential slippage in the current programme and to form the basis of future submissions for more Growth Funding. During the next couple of months this will become the focus of activity with local partners. This will also involve an open call for projects aimed at delivering against our SEP priorities and contributing to our Growth Deal outcomes.

9.0 LEP Board to:-

Note the progress to date in the development of the Growth Deal projects and the expectation of full delivery of the first year (2015/16) of the Local Growth Funding.

Note the risks going forward regarding the development of pipeline projects, this will be the focus for the coming months. A call for projects will open shortly targeted on supporting our LEP priorities and sectors.

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Table 1 : Summary of Progress for all 2015/16 Project starts

15

/16

Sp

en

d

Pro

file

d £

m

Futu

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ear

s

£m

Stag

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15

/16

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York Bio hub

1.0 4.0 Jan 2016 March 2016 April 2016 April 2016 2017 GF Funds moved to 16/17. To be considered at the 4th March Board

National Agri-Food Innov. Campus

0.3 8.0 Tbd tbd tbd tbd tbd tbd The LEP has already invested Growing Places in this site. Previous LEP Board agreed moving small 15/16 spend to 16/17. Discussions now ongoing to bring forward scheme for the site in future years.

Harrogate College 3.0 0 Jul 2015 May 2016 Funding agreement signed. Claimed £1.1m (33%) All on track for a September opening. Will retained small proportion of funding until completion in 16/17.

Askham Bryan Agri-engineering

0.6 0 Jun 2015 Mar 2016 Funding agreement signed. Claimed £0.5m (85%%). All on track.

Askham Bryan Agri-tech centre

1.0 0 Jun 2015 Mar 2016 Funding agreement signed. Claimed £0.2m (20%). Project on track but spend profile has slipped however still due to spend by end of March.

Selby 2.4 5.6 Project stalled

Tbd

tbd tbd Processed through appraisal and approved by Infrastructure Board, however encountering major delays with start of project. Negotiations ongoing regarding future delivery – reallocate 2015/16 funding.

Northallerton 1.0 5.0 Jan 2016 Jan 2016 Mar 2017

Draft Funding agreement issued. To be signed 26th February Progress on track for 15/16.

Catterick 1.2 0 Jan 2015 June 2016

Funding agreement signed Project started but potential overrun to 2016/17. This will not affect 2015/16 LGF funding.

Middle Deepdale 2.3 0 Jan 2016 Mar 2016 Funding agreement signed. Claimed £2.3m (100%)

Skipton 1.2 0 July 2015 Dec 2016 Funding agreement signed. Claimed £1.2m (100%). All on track.

Newlands Bridge 1.5 0 Mar 2016 Funding agreement signed. Project completed Claimed £1.5m (100%).

Bedale By-Pass

15.5 2.9 Mar15-sep16 Dec 2016 DfT retained scheme. On site

Projects Brought Forward

Malton Agri Business Park

0.6 1.5 Jan 16 Oct 16 Funding agreement signed. On site

4

Table 1 : Summary of Progress for all 2015/16 Project starts

15

/16

Sp

en

d

Pro

file

d £

m

Futu

re y

ear

s

£m

Stag

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/16

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Derwent Training Equipment

0.06 0 Feb 16 Feb 16 Mar 2016 Funding agreement issued but awaiting response

Selby College Equipment

0.11 0 Feb 2016 Mar 2016 Draft funding agreement signed On track

NY Road Improvements

2.9 21.3 Brought forward to take up potential LGF slippage (£2.9m)

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Table 2: Local Growth Fund Financial Position

This Financial Year 2015/16 All Years 2015-21

Project Name Original Actual spend

Revised Variance

Original Revised Variance

£m £m £m £m £m £m £m

Business Growth

National Agri-Food Innovation Campus. 0.3 0 0 -0.3 8.3 8.3 0

York Bio-Hub. 1 0 0 -1 5 5 0

Skills Capital

Harrogate College. 4 1.1 2.83 -1.17 4 3 -1

Askham Bryan College - Agricultural Skills 1 0.2 1 0 1 1 0

Askham Bryan College -Engineering Centre. 0.6 0.5 0.6 0 0.6 0.6 0

Skills Capital projects (Additional Call for projects)

0 0 0.17 0.17 0 1 1 • Derwent Training Equipment

• Selby College Equipment

• Craven College new build

Strategic Sites

Housing growth at Scarborough. 2.3 2.3 2.3 0 2.3 2.3 0

Growth at Catterick Garrison. 1.2 1.2 1.2 0 1.2 1.2 0

Housing and employment at Northallerton. 1 0 1 0 6 6 0

Olympia Park, Selby – LGF 2.4 0 0 -2.4 8 8 0

Skipton Employment -Flood Alleviation Scheme (Growth Deal Extension)

0 1.2 1.2 1.2 1.2 1.2 0

Malton Agri Business Park (Growth Deal Extension)

0 0 0.6 0.6 2.1 2.1 0

Olympia Park, Selby HCA Loan (THIS IS DEALT WITH DIRECTLY BY THE HCA – NOT PART OF THE LEP GRANT)

3.5 0 0 -3.5 3.5 3.5 0

Transport

Newlands Bridge Drax-M62 1.5 1.5 1.5 0 1.5 1.5 0

North Yorkshire Road Maintenance Scheme (DEALT WITH DIRECT WITH DfT)

0 2.9 2.9 2.9 24 24 0

A1079 – Improvements (Growth Deal extension)

0 0 0 0 8 6.3 -1.7

A1/A59 improvements (Growth Deal Extension)

0 0 0 0 0.8 2.5 1.7

East Riding Road Maintenance Scheme (DEALT WITH DIRECT WITH DfT)

0 0 0 0 16.7 16.7 0

Pre-allocated transport funding (THIS WILL NOT FORM PART OF THE LEP GRANT)

15.5

15.5 0 28 28 0 1. Bedale Bypass (£18.4m)

2. York-Harrogate Rail Improvements (£9.6m)

Total value of Growth Deal 34.3 30.8 -3.5 122.2 122.2 0

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