Agenda item

The report of the Chief Executive is attached.

It was RESOLVED that:

a)    the progress made to date of the East Midlands Development Corporation Programme, and the establishment of an interim vehicle be noted;

b)    the principle of making a financial contribution to support the interim vehicle over the next three years be approved, subject to further negotiation and agreement by Council and subject to match funding from other affected local authorities and Government and, thereafter, the funding arrangements be included within the Medium Term Financial Strategy for 2021/22 onwards;

c)    the Chief Executive be requested to prepare a report including further detail on the Interim Vehicle and Rushcliffe Borough Council’s involvement in it, to be ratified by Full Council in December 2020; and

d)    the Council entering into the Members’ Agreement and participating in the incorporation of the Interim Vehicle Company Limited by Guarantee be approved in principle, and delegated authority be granted to the Leader and Chief Executive for agreeing the final form of the Members’ Agreement and Articles of Association subject to agreement by Council.

The Leader presented the report of the Chief Executive providing an update on the East Midlands Development Corporation Programme since Cabinet had been updated in February 2020.

The Leader advised that the Council continued to support the Development Corporation as a whole, with a particular interest in the Ratcliffe on Soar power station site, given its significant strategic importance to the Borough.  The power station would be decommissioned in 2025, and it was therefore vital that the Borough led on the future of that site.  The importance of encouraging external investment into the Borough to ensure economic growth and employment was acknowledged.  Currently the Alchemy Board, which had representatives from the three directly affected districts, the County Council and private partners was overseeing the Development Corporation.  It was noted that a detailed Business Case was being prepared and it was anticipated that it would be submitted to the Government in March 2021.  The report highlighted that an interim vehicle would be established and incorporated in January 2021, with the Borough represented on that body.  Cabinet was advised that the Development Corporation had applied to the Government for funding during this interim period, and once a response had been received, the Council would be aware of the financial contribution required to support that interim vehicle.  

In seconding the recommendation, Councillor Upton referred to the significant impact that the closure of the power station would have on the Borough, given the substantial loss in business rates and the impact of having a potentially very large derelict site in this key location and the Council needed to take action now.  Reference was made to the significant time that the parliamentary process could take and the establishment of an interim vehicle was the appropriate step to take, as was the suggested financial contribution to support it.   

The Leader reiterated that both he and the Chief Executive would be looking very carefully at the agreement once the final details were known.  It was hoped that the interim period would not be too long and that the Development Corporation would be fully established soon.  The significant loss in business rates should not be underestimated and it was essential that the Council supported this programme to ensure continued economic growth and employment. 

Councillor Edyvean referred to the importance of supporting both the interim vehicle and the future Development Corporation, to ensure the future ambition for the site, which would be significant in terms of contributing towards a carbon neutral economy.    

It was RESOLVED that:

a)     the progress made to date of the East Midlands Development Corporation Programme, and the establishment of an interim vehicle be noted;

b)     the principle of making a financial contribution to support the interim vehicle over the next three years be approved, subject to further negotiation and agreement by Council and subject to match funding from other affected local authorities and Government and, thereafter, the funding arrangements to be included within the Medium Term Financial Strategy for 2021/22 onwards;

c)     the Chief Executive be requested to prepare a report including further detail on the Interim Vehicle and Rushcliffe Borough Council’s involvement in it, to be ratified by Full Council in December 2020; and

d)     the Council entering into the Members’ Agreement and participating in the incorporation of the Interim Vehicle Company Limited by Guarantee be approved in principle, and delegated authority be granted to the Leader and Chief Executive for agreeing the final form of the Members’ Agreement and Articles of Association subject to agreement by Council.