1. PMC
2017/18 Programmes Overview
September 2017

2. Kicking the can?

3. BEIS funding profile vs Expected LEP profile

4. Available Funds 2017/18 (£52m) - unchanged
2017/2018 sees the LEPs biggest year to date in terms of available spend.
We have £52,355,875 to spend in this financial year.

5. LEP Growth Deal Spend Profile Approved plus pipeline projects

6. Growth Deal Funding Profile vs Predicted project spend profile
The red forecast spend represents pipeline projects which are subject to application and board approval.

7. Update on “Will we spend all the Growth Deal money we have in 2017/18

8. Update on: Will we spend all the Growth Deal money we have in 2017/18?
Current profile/underspend
Proposed spend
Potential spend
Summary
Related work packages
Projects beyond 2017/8

9. Current Spend

10. 2017/18 Profile Funding sources Unchanged since June PMC report
This includes £10.2m of Growth Deal 3 funds that have been brought forward by Central Government
And £16.2m DfT capital

11. Current £18m underspend –profile v committed – revised Aug 2017 (previous £20m)
GD3 £665k projects approved –Skills and Equipment fund
Projects approved at last LEP board – Stevenage theatre relocation and SG1 public realm, Hertford Town Centre and BRE Open Innovation Hub
Still significant risk of underspend this year

12. 2017/18 Growth Deal Programme Current Growth Deal Profile £18m (against allocation of £33.4m)
TOTAL
£33.4m
Profiled – committed 17/18 spend.
Recommended – Approved by programme boards.
Potential Future – all projects that could spend in 17/18.

13. 2017/18 Growth Deal Programme Profiled Spend £18m (up from £16.8)ID
Project
2017/18 (£)
Project Total (£)
Likelihood
Comment
LEP0005
Metropolitan Line Extension
3,830,000
16,850,000
Possible
Reprioritisation of TfL business plan by new London Mayor
LEP0006
A1(M) GAF
200,000
1,000,000
Likely
Now being considered as part of LEP futures work
LEP0007
Stevenage Joint Venture
3,800,000
34,000,000
Unlikely
Projects approved by LEP board
£200,000 Theatre relocation
£30,000 Public Realm
LEP0019
M11/A10 GAF
600,878
LEP0034
Evergreen Infrastructure Fund Programme
1,600,000
12,500,000
LEP0026
A602
6,460,000
18,490,000
Projects on track.
Outputs to be confirmed before LEP funds are released.
LEP0053
A120 Little Hadham Bypass
715,000
27,400,000
LEP0070
BRE Open Innovation Hub
6,000,000
New Project
LEP0084
Hertford Town Centre
200,00
New Approved re-profile from 16/17
TOTAL
£18,005,000
Explain Risk Category

14. Proposed Spend

15. 2017/18 Growth Deal Programme Recommended Profile of £0
2017/18 Growth Deal Programme Recommended Profile of £0.5m (against allocation of £33.4m)
Allocation 2017/18
Growth Deal 1/2
£23.2m
Growth Deal 3
£10.2m
TOTAL
£33.4m
Profiled – committed 17/18 spend.
Recommended – Approved by programme board.
Potential – all projects that could spend in 17/18.

16. Recommended Growth Deal projects
Projects recommended by Skills and Equipment board (£0.4m) More information in the Project Approvals Paper.
Project ID
2017/18 (£)
Project Total Funding (£)
Appraisal Form
Out
puts
State
Aid
Capital spend
Original Growth Deal
LEP0119
Electrical Training Test Facilities Hertford Regional
£40,000 
LEP0120
Hart Future Talent (NHC)
£95,462
LEP0121
Oaklands Engineering Extension
£50,400
LEP0122
UoH Engineering Healthy Apprenticeships
£220,008
Subtotal
£405,870

17. Potential Spend

18. Potential spend to fill in the underspend
Executive Team have been asked to look at bringing projects forward to fill in the gap …..
These have not been approved by boards as yet

19. 2017/18 Growth Deal Programme Potential spend of £12.2m
Allocation 2017/18
Growth Deal 1/2
£23.2m
Growth Deal 3
£10.2m
TOTAL
£33.4m
Profiled – committed 17/18 spend.
Recommended – Approved by programme board.
Potential – all projects that could spend in 17/18.

20. Potential GD Projects with 2017/18 spendID
2017/18 (£)
Project Total (£)
Source
Grant/
Loan
Spend
Likelihood
LEP0003
Stevenage Bioscience Catalyst
1,000,000
14,700,000
TBC
Loan/
Grant
Removed from 2017/8
LEP0071
Hemel Hempstead Dacorum Campus Phase 2
500,000
5,100,000
GD3
Almost Certain
LEP0076
A10 Buntingford Roundabout
100,000
1,463,500
Possible
LEP0077
Essex Road
6,500,000
LEP0085
Skills and Apprenticeship Hub
Moved to GPF - Revenue
LEP0087
Watford Campus Phase 2
4,250,000
Rare
LEP0088
Watford Business Park Phase 2
LEP0112
Business Expansion Loan
1,750,000
3,500,000
LEP0115
North Herts College Hitchin
3,000,000
Unlikely
TOTAL
12,200,000
51,010,000

21. Summary

22. Summary of changes
Overall the LEP has £9m less Growth Deal spend predicted than was reported in the last quarter, this is due to the following:
SIB
LEP Board not approve 2 SIB projects:
Royston Gateway
Hatfield MSCP
EIB
Stevenage Bioscience Catalyst has been removed from the project pipeline by EIB
Business Expansion Loan as been identified as revenue spend and therefore as been removed from the growth deal pipeline.
SEB
Skills and Apprenticeship Hub is revenue, and therefore has been removed from the Growth Deal pipeline. This project currently has an application in for GPF funds.

23. Summary of 2017/18 GD Programme by Board
Status
Strategic Infrastructure
Enterprise and Innovation
Skills and Employment
TOTAL
Programmed
£17,005,000
£1,000,000 £0
£18,005,000
Recommended
£405,870
Potential Future
£8,700,000
£3,500,000
£12,200,000
25,705,000
£3,905,870
£30,610,870
Removed from Growth Deal (£9m)
Royston
Hatfield MSCP
BRE Loan
Stevenage Bioscience Cat
Business Expansion Loan
Skills Apprentice Hub
Previously PMC (June)
Status
Strategic Infrastructure
Enterprise and Innovation
Skills and Employment
TOTAL
Programmed
£16,805,000 £0
Recommended
£4,623,000
£4,000,000
£8,623,000
Potential Future
£8,700,000
£2,750,000
£4,500,000
£15,950,000
£30,128,000
£6,750,000
£41,378,000

24. Summary of 2017/18 Spend Likelihood
Status
August Report
Rare (£)
Unlikely (£)
Possible (£)
Likely (£)
Almost Certain (£)
TOTAL (£)
Programmed
3,800,000
3,830,000
10,375,000
£18,005,000
Recommended
405,870
£405,870
Potential Future
8,500,000
3,000,000
200,000
500,000
£12,200,000
TOTAL
6,800,000
4,030,000
10,780,870
£30,610,870
% of Total
27.77
22.21
13.17
35.22
1.63
Status
June Report
Rare (£)
Unlikely (£)
Possible (£)
Likely (£)
Almost Certain (£)
TOTAL (£)
Programmed
£ 3,800,000
£3,830,000
£9,175,000 £0
£16,805,000
Recommended
£8,623,000
Potential Future
£8,500,000
£5,000,000
£2,450,000
£15,950,000
TOTAL
£3,800,000
£8,830,000
£17,798,000
£41,378,000
% of Total
20.54%
9.18%
21.34%
43.01%
5.92%
£15m
(was 29m June)

25. Related Work packages Conceptual programmes
No change since June report
Evergreen is linked with Loans policy
Loan policy
See Programme Update paper

26. Loan vs grant split (£41m) total
The LEP currently does not have a formal loan policy
A larger amount of funds could be released to applicants this year if a LEP Loan policy is agreed.
Project Number
Project Name
Potential Loan Amount
LEP0003
Stevenage BioScience Catalyst - Loan
£10,000,000
LEP0009
Stevenage Site Assembly
£1,178,794
LEP0070
Enterprise Zone BRE Open Innovation Hub
£3,000,000
LEP0087
Watford Health Campus Phase 2
£4,250,000
LEP0088
Watford Business Park Phase 2
LEP0089A
Hatfield MSCP - Loan
£1,200,000
LEP0090
Royston Gateway
£3,465,000
LEP0096
Stevenage Parking Deck
£ 2,040,000
LEP0107
Stevenage SG1 Land Assembly
£5,600,000
LEP0115
North Herts College Hitchin (NHC)

27. Future Spend

28. Future projects – beyond 2017/18
There a number of projects that have not been identified as potential 2017/18 projects but will be delivered in future years, these include:
Stevenage GD3 Projects which are dependent on a new governance structure.
Other projects have no anticipated spend in 2017/18.

29. Future Projects – beyond 2017
Project ID
Project
Delivery
Project Total (£)
Source
Grant/Loan
LEP0069
Enterprise Zone Infrastructure
2019/20
700,000
GD3
Grant
Stevenage Programme
LEP0094
Bus Interchange
2019/21
8,160,000
LEP0095
Magistrate’s Court
3,000,000
Gran/Loan
LEP0096
Parking Deck
2,040,000
Loan
LEP0097
Marshgate Land Assembly
5,100,000
LEP0098
Highways A-Grade
1,020,000
LEP0107
SG1 Land Assembly
2018/20
8,000,000
TBC
Project ID
Project
Delivery
Project Total (£)
Source
Grant/Loan
Project not approved at June LEP Board projects that may re-enter project pathway
LEP0090
Royston Gateway
2017/18
£3,465,000 GD
Loan
LEP0089
Hatfield MSCP
18/19
£6,000,000
GD2
Grant

30. Total profiled outputs for 2017/18 reported to Programme Boards

31. Outputs Breakdown A further breakdown of Outputs will be available at the next PMC
Projects with no contractual outputs
MLX – Mechanism agreed, collection on hold while project future is clarified.
A120 & A602 – Outputs have now been submitted and will be brought under contract
Growth Hub - Outputs profiled in contract extension/variation
Projects with no annual profiled contractual outputs
Project Name
Awarded Funds to 2021
Outputs detail
Ambition Broxbourne Enterprise Centre
£1,800,000
Total figure available
West Hertfordshire College - Dacorum Campus Redevelopment
£5,000,000
Airbus STEM Centre
£1,039,000
Stevenage Site Assembly
£1,548,500
Outputs profile will be contained in contract variation due Sept 2017
Uni of Herts Knowledge and Science Innovation Centre
£2,500,000
Hemel Hempstead Public Services Forum
£500,000
South Oxhey Regeneration - Phase 1 & 2
£2,250,000
Profiled Outputs submitted by applicant. Final figure contracted
Hertford Town Centre Redevelopment
£200,000

32. Outputs future work
The LEP Executive will provide PMC with a full breakdown of Growth Deal outputs in the near future. This is a substantial piece of work and requires input from a lot of partners.
The LEP Executive have set a deadline for the Annual Conversation and will give PMC a full breakdown before this date.
The annual conversation is due early December, no official date released at the time of writing.

33. Questions?