Decision details

A detailed appraisal of the impact and overall effectiveness of the Rural Growth and Employment Fund (RuGEF), ESCC Capital Budget for Growth and Regional Growth Fund (RGF) programmes, looking at how different businesses have benefitted and the effectiveness of the programme.

17.1     The Committee considered a report by the Director of Communities, Economy and Transport.  The Assistant Director Economy set out the key features of the report including the creation of 900 new jobs, the cost per job created, the focus on those indigenous companies with high growth potential (‘gazelles’), and the efforts made to attract businesses to re-locate to East Sussex.

17.2     The Department keeps a close eye on the long term impacts of intervention through the reporting required by central Government.  Applicants are required to produce a business case and attend an interview, and to set out the number and salary ranges of the jobs to be created.  These are then included in the contractual terms agreed by the applicant and the County Council.

17.3     The Committee agreed that increased publicity for the Council’s interventions, particularly for local Members, would be beneficial.  It was made clear that the local member would not be part of the decision making process for accepting an application, but would be notified of successful bids, in order to act as ambassadors to other businesses who might benefit from the County Council’s aid.  The Committee suggested that successful applicants should also be asked to act as ambassadors.

17.4     The Assistant Director welcomed the suggestions of the Committee as to how to engage most effectively with the business community, as it was acknowledged that not all business are associated with a Chamber of Commerce or similar umbrella organisation.  It was suggested that an enclosure could be included with the annual business rate demand. 

17.5     The Assistant Director reassured the Committee that bids with obvious potential, but which failed to meet the criteria, will be referred to other organisations to help develop the business plan and to support a re-submission of the bid.      

17.6     The Committee discussed the manufacturing sector, with its strong base in the Hastings area and engineering companies in Wealden, which are linked to the skills development initiatives at the County’s universities and colleges.  The Committee also noted the expected outputs from the Social Business Investment Fund, which are different to the other funds with its focus on safeguarding existing jobs and apprentice/volunteer training.

17.7     RESOLVED to (1) note the report; and

(2) congratulate all the officers involved with the Economic Intervention Fund and Business Growth funding.