Agenda item
Implementation of the Gravity Enterprise Zone via Gravity Locality Investment Plan
- Meeting of Executive, Wednesday, 5th June, 2024 10.00 am (Item 154.)
- View the background to item 154.
To consider the report
Decision:
Following consideration of the officer report, appendices and discussion, the Executive:???
a. Approved the detailed financial governance arrangements set out in the report.
b. Noted the Gravity Locality Investment Plan as set out in Appendix A of the report and agreed associated investment priorities for the plan as outlined in para 16.6 of this report.
c. Recommended to Full Council that the Gravity Scheme is added to the capital programme and that the Council’s Treasury Management Strategy is updated for this as outlined in Appendix B of the report, including adopting the Prudential Treasury Indicators included in table 3 of that Appendix.
d. Delegated authority to the section 151 officer to make final decisions about the Council undertaking borrowing, including the quantum and timing, to deliver investment in line with the Gravity Locality Investment Plan and within the limits set out in the Council’s Treasury Management Strategy, following consultation with the Leader and Executive Lead Member for Resources and Performance.
ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report
REASON FOR DECISION: As set out in the officer report
Minutes:
The Leader of the Council, Cllr Bill Revans, invited the Lead Member for Economic Development, Planning & Assets, Cllr Ros Wyke, to introduce the report.
The Lead Member for Economic Development, Planning & Assets, Cllr Ros Wyke, introduced the report, highlighting: that the report set out the third stage of the decision-making process for delivery of the Gravity Enterprise Zone (GEZ); consideration of the report alongside the revised Treasury Management (TM) Strategy Plan to accommodate proposed investment and borrowing; that the report focussed on the approach to deliver the GEZ; that the Gravity Locality Investment Plan (GLIP), will ensure the project delivers transformation for the County, specifically around movement, skills and business opportunities; and that the report and revised TM Strategy Plan would be considered at the next available Full Council meeting.
The Executive Director, Climate and Place, Mickey Green, further added to the above points, highlighting: that the report had been considered at Scrutiny Committee – Corporate & Resources on 29 May 2024; that a grant had been secured from the Department for Business and Trade alongside a 10 year extension to the Enterprise Zone Designation from the Department for Levelling Up, Housing and Communities; that the GLIP aims to create an environment that is commercially attractive to investors and future occupiers; joint working and progression of the viability assessment and business case and subsidy control assessment; that all funding applications will be decided in line with the existing financial delegations prescribed in the Council's constitution and that all funding agreements will protect the Council's finances by ensuring the inclusion of relevant clawback clauses and monitoring mechanisms; that the report summarised the risk and mitigations relevant to the recommendations and underpinned by a comprehensive programme risk register; and how the development can act as a catalyst to transform Somerset.
The Executive Director, Resources and Corporate Services, Jason Vaughan, added that the revised TM Strategy Plan was considered and approved at the Audit Committee held on 30 May 2024.
The Leader of the Council, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the initial energy connection and infrastructure costings and connection capacity availability; overview of mitigation of the impact on the housing market and sufficiency of school places; transport and travel solutions for the site and for wider public benefit; workforce profiling, employment and skills opportunities available across all Somerset schools and training facilities; comparison and lessons learned from the Hinkley Point project including community engagement and communication, development of supply chain and the significant local and countywide opportunities; the impact of possible changes to the national business rate policies and the acknowledgement of the work of Officers to secure the non-repayable £55m Government grant to cover the costs of borrowing until business rates commence; and multi phrase project work with different partners to educate children, adults and attract an inclusive and diverse workforce.
The Leader of the Council, concluded the discussion, acknowledging work to date and the opportunities this development will bring for the County.
The Executive proceeded to vote on the recommendations, which were agreed unanimously.??? ?
Following consideration of the officer report, appendices and discussion, the Executive:??
a. Approved the detailed financial governance arrangements set out in the report.
b. Noted the Gravity Locality Investment Plan as set out in Appendix A of the report and agreed associated investment priorities for the plan as outlined in para 16.6 of this report.
c. Recommended to Full Council that the Gravity Scheme is added to the capital programme and that the Council’s Treasury Management Strategy is updated for this as outlined in Appendix B of the report, including adopting the Prudential Treasury Indicators included in table 3 of that Appendix.
d. Delegated authority to the section 151 officer to make final decisions about the Council undertaking borrowing, including the quantum and timing, to deliver investment in line with the Gravity Locality Investment Plan and within the limits set out in the Council’s Treasury Management Strategy, following consultation with the Leader and Executive Lead Member for Resources and Performance.
ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report.?? ?
REASON FOR DECISION: As set out in the officer report.?
Supporting documents:
- Implementation of the Gravity Enterprise Zone via Gravity Locality Investment Plan, item 154. PDF 1 MB
- Appendix A - Gravity Locality Investment Plan for Exec Report May 2024 final draft, item 154. PDF 1 MB
- Appendix B - TMS 2024-25 Revised for Gravity, item 154. PDF 210 KB