Agenda item

*RESOLVED – That is be recommended to Full Council;

1.   That the submission of an East Midlands Investment Zone proposal to Government, to include 2no. development sites (as identified by the plan in Appendix A) within the borough of Chesterfield be supported.

2.   That it be agreed in principle by the Council for the 2no. development sites to be designated as Business Rates Retention areas in line with Government policy, subject to;

a)     The formal establishment of the East Midlands Mayoral Combined County Authority (EMMCCA) in May 2024

b)     The Council being satisfied with the final terms of the Business Rates Retention Policy applicable to the East Midlands Investment Zone

c)      The Council being satisfied with the final terms of the Reinvestment Strategy developed by EMMCCA to guide the reinvestment of the retained Business Rates within the East Midlands area

d)     The Council being satisfied with the governance arrangements for the East Midlands Investment Zone, when finalised, and the Council’s role within them

3.   That, given the need for the Council to be able to advise EMMCCA and Government in a timely manner of its position ahead of the final Gateway submissions, authority be delegated to the Chief Executive, in consultation with the Service Director for Finance and the Leader of the Council to consider the final proposals and arrangements for the East Midlands Investment Zone and conclude the terms of the Council’s involvement.

4.   That an update report be submitted to Cabinet on the East Midlands Investment Zone as and when the outcome of EMMCCA’s submission to Government is known.

5.   That the Council reserves it’s right to review its position in relation to the 2no. development sites being designated as Business Rates Retention areas should there be a change in Government policy and / or a change in the Council’s relationship with EMMCCA.

REASONS FOR DECISIONS

1.   An Investment Zone (IZ) offers the potential for the Council to secure tax incentives and additional capital and revenue funds to support the development of 2no. key regeneration sites within the borough of Chesterfield for the benefit of local residents and businesses. The proposal supports work already carried out with partners and landowners to catalyse development of the Staveley Growth Corridor as detailed in the Council Plan 2023-27.

2.   The designation of the 2no. development sites as Investment Zone sites with a focus on green industries and advance manufacturing will help support delivery of the Council’s Growth Strategy by strengthening Chesterfield’s competitive location as a place to do business, securing new business investment in the borough and supporting the move to a stronger, more diversified and high value economy offering high quality, high value jobs to local people.

3.   The Council will have the opportunity to take advantage of both the capital and revenue funds that EMMCCA will make available over a 25-year period once positive Business Rates returns are achieved over an agreed baseline.

The Service Director – Economic Growth presented a report seeking approval for 2no. development sites within the borough of Chesterfield to be part of an East Midlands submission to Government for Investment Zone (IZ) status and for the Chesterfield sites to be designated as Business Rates Retention areas.

It was noted that in its Spring Budget the Government had announced that 12 UK regions would be invited to submit proposals for new IZs – this included the East Midlands. Each region was asked to co-design the proposals with the Government working to the principles set out in an IZ Policy Prospectus, dated March 2023.

Subject to finalising and submitting a detailed business case to the Government, the region could expect to receive £160m over 10 years to support growth in two priority target sectors, namely ‘Green’ industries and Advanced Manufacturing.

Tax incentives would be available to businesses locating within the IZ for the full ten-year period, as would flexible funding for investment in a range of interventions aimed at unlocking barriers currently holding back growth of the two priority target sectors. The funding could be used for:

·        Research and Innovation

·        Skills

·        Local Infrastructure

·        Local Enterprise and Business Support

·        Planning and Development

It was proposed that two sites within Chesterfield borough would be included in the East Midlands IZ. These sites were shown on maps within Appendix A of the Director’s report. The north-eastern site was formerly the location of Hartington Colliery whilst the south-western site was part of the Staveley Growth Corridor (previously allocated as the site for HS2’s Infrastructure Maintenance Depot).

It was anticipated that the new East Midlands Mayoral Combined County Authority (EMMCCA) would be established in April 2024 with the inaugural elections for the Mayor held in May 2024.

The EMMCCA would oversee delivery of the East Midlands IZ with a launch date for the IZ planned to coincide with its establishment, in April 2024.

*RESOLVED – That is be recommended to Full Council;

1.   That the submission of an East Midlands Investment Zone proposal to Government, to include 2no. development sites (as identified by the plan in Appendix A) within the borough of Chesterfield be supported.

2.   That it be agreed in principle by the Council for the 2no. development sites to be designated as Business Rates Retention areas in line with Government policy, subject to;

a)     The formal establishment of the East Midlands Mayoral Combined County Authority (EMMCCA) in May 2024

b)     The Council being satisfied with the final terms of the Business Rates Retention Policy applicable to the East Midlands Investment Zone

c)      The Council being satisfied with the final terms of the Reinvestment Strategy developed by EMMCCA to guide the reinvestment of the retained Business Rates within the East Midlands area

d)     The Council being satisfied with the governance arrangements for the East Midlands Investment Zone, when finalised, and the Council’s role within them

3.   That, given the need for the Council to be able to advise EMMCCA and Government in a timely manner of its position ahead of the final Gateway submissions, authority be delegated to the Chief Executive, in consultation with the Service Director for Finance and the Leader of the Council to consider the final proposals and arrangements for the East Midlands Investment Zone and conclude the terms of the Council’s involvement.

4.   That an update report be submitted to Cabinet on the East Midlands Investment Zone as and when the outcome of EMMCCA’s submission to Government is known.

5.   That the Council reserves it’s right to review its position in relation to the 2no. development sites being designated as Business Rates Retention areas should there be a change in Government policy and / or a change in the Council’s relationship with EMMCCA.

REASONS FOR DECISIONS

1.   An Investment Zone (IZ) offers the potential for the Council to secure tax incentives and additional capital and revenue funds to support the development of 2no. key regeneration sites within the borough of Chesterfield for the benefit of local residents and businesses. The proposal supports work already carried out with partners and landowners to catalyse development of the Staveley Growth Corridor as detailed in the Council Plan 2023-27.

2.   The designation of the 2no. development sites as Investment Zone sites with a focus on green industries and advance manufacturing will help support delivery of the Council’s Growth Strategy by strengthening Chesterfield’s competitive location as a place to do business, securing new business investment in the borough and supporting the move to a stronger, more diversified and high value economy offering high quality, high value jobs to local people.

3.   The Council will have the opportunity to take advantage of both the capital and revenue funds that EMMCCA will make available over a 25-year period once positive Business Rates returns are achieved over an agreed baseline.