Agenda item

RESOLVED that 1) the EMIZ proposals be supported on behalf of the Council, 

2) delegated authority be granted to the Council’s Chief Executive Officer to accept and nominate officers to represent the Council on the proposed Development Board and nominate officers to represent the Council in any part of the interim or eventual governance structure for the EMIZ as appropriate and when offered,

3) to allocate £20,000 from the Transformation Reserve for business case developmentand other related costs. 

Executive considered a detailed report, presented by the Portfolio Holder for Growth, which provided an update on the proposals for the East Midlands Investment Zone (EMIZ), the emerging investment plan and next steps, including the Council’s future role in the EMIZ.

The report also sought Members endorsement for the EMIZ proposals and approval for the Council to participate in the East Midlands Investment Zone Development Board.

The Chancellor’s Autumn Statement published in November 2023, announced an Investment Zone for the East Midlands (EMIZ). The purpose of the Investment Zone was to boost productivity across green industries and advanced manufacturing sectors in the East Midlands with the support of £160 million funding from Government over a period of ten years.

The EMIZ covered the whole of Derbyshire and Nottinghamshire, i.e., the Investment Zone covered the same area as D2N2 and East Midlands Mayoral Combined County Authority (EMMCCA). The newly established EMMCCA would be the accountable body for the EMIZ and following the election of a Mayor, it was expected that the Investment Zone would help to leverage over £380 million in private investment and bring upwards of 4,000 jobs to the region.

The EMIZ proposals progressed alongside the creation of an Investment Zone policy that would set the criteria for approval of future financial incentives for development proposals and expenditure of the balance of the Government funding. An indicative Investment Plan had also been drafted. The Investment Zone policy would go live in April 2024, but the operational launch of the East Midlands Investment Zone was subject to completion of the final Gateway stages of the EMIZ process.

The report also recommended that Members consider allocating a budget for business case development for projects and programmes with partners that aligned with the EMIZ proposals and emerging Investment Zone policy to ensure that the Council was best placed to maximise the opportunities that would arise from the future allocation of flexible funding, which may amount to as much as £120 million over the next ten years.

Members welcomed the report.

Moved by Councillor John Ritchie and seconded by Councillor Duncan McGregor

RESOLVED that: 1) Executive confirm its support for the EMIZ proposals on behalf of the Council,

2)    delegated authority be granted to the Council’s Chief Executive Officer to accept and nominate officers to represent the Council on the proposed Development Board and nominate officers to represent the Council in any part of the interim or eventual governance structure for the EMIZ as appropriate and when offered,

3)    £20,000 be allocated from the Transformation reserve for business case development and other related costs.

Reasons for Recommendation

This report outlines the potential benefits to the District arising from the current EMIZ proposals, which will bring £160 million of Government funding into the region that is expected to drive an increase in productivity through the creation of higher skilled, higher paid jobs at two large employment sites within the local area with an associated rise in living standards and improved quality of life for those employees.

The proposed future investment in green industries and advance manufacturing also provides an opportunity to transform the District’s local economy through accelerating the growth of existing businesses in these sectors and by securing investment from these sectors to develop employment sites in the District to provide more high quality, high value jobs to local people.

In addition, the flexible funding associated with the EMIZ provides an opportunity to improve local infrastructure and the District’s connectivity to ensure the District remains a competitive location and an attractive place to do business.

The flexible funding associated with the EMIZ also provides an opportunity to build on the Council’s work with partners to facilitate more training opportunities within the District to upskill the existing workforce and create more opportunities for young people to strengthen their life chances in a stronger, more diversified, and high value economy.

As proposed, the EMIZ proposals do not give rise to any costs to the Council and any future planning decisions or proposals for business rates relief and/or tax incentives, or any other scheme that has a material impact on the District’s own statutory responsibilities will need this Council’s prior approval.

As the billing authority, the Council will likely administer any business rates relief under the tax incentive policy. Reliefs will be appropriately reimbursed by Government under a principle of no detriment.

In addition, the Council and Laing O’Rourke will be expected to agree to a Tax Policy, committing partners to best endeavours in promoting sector related (green industries and advanced manufacturing) activity on any designated tax site within the District.

Consequently, the establishment of the EMIZ would be highly unlikely to pose any significant negative risk to the Council’s own interests or impact on service delivery but there is a positive risk that the EMIZ will benefit the District’s local economy and its local residents.

It is therefore considered wholly appropriate to recommend that the Executive confirm its support for the EMIZ proposals on behalf of the Council.

It is also considered wholly appropriate to recommend that the Executive endorse officers’ continued engagement and active involvement with the EMIZ through the Gateway process to approval by Government and then through its subsequent operational lifetime to ensure that the EMIZ, and by extension the EMMCCA, are held accountable to their commitments to levelling up and ensure the District is best placed to realise the benefits of the Government investing £160 million in the region.

In addition, it is recommended that the Executive consider allocating a budget for business case development for projects and programmes with partners that align with the EMIZ proposals and emerging Investment Zone policy to ensure that this Council is best placed to maximise the opportunities that will arise from the future allocation of flexible funding, which may amount to as much as £120 million over the next ten years.

In this case, it is recommended that investment is made in the multi-user trail proposals because the money would pay for the design drawings that are needed for a crossing over the A617 at Doe Hill, and the planning application drawings for the associated lengths of tracks that would close a gap in the multi-user trail network.

This is significant because the track would then properly link the former Coalite site and Markham Vale with Bolsover and Shirebrook and other parts of the District. Onward links then connect with Staveley and Clowne Greenway with a further onward link proposed from Creswell to Worksop.

Therefore, this work has a close link with the combined authority’s key priorities and the Investment Zone and the Council may be able to draw additional funding from SUSTRANS and the Heritage Lottery Fund because this link would also improve connectivity to Hardwick Hall.

Alternative Options and Reasons for Rejection

The Executive could choose not to support the current EMIZ proposals and withdraw officers from any future involvement in its governance arrangements or decisions making. This option was rejected because of the potential benefits to the District of active involvement with the EMIZ, the risk of not realising benefits for the District if officers disengaged from the process, and the disbenefits of the loss of inward investment should the EMIZ fail to get approval.

The Executive could choose to decline to endorse a budget for business case development for the multi-user trail network but this option would further reduce the likelihood of any projects and programmes in development being included in the EMIZ Investment Plan.