Agenda item

Cllr Judy Roberts, Cabinet Member for Infrastructure and Development Strategy, Robin Rogers, Director of Economy and Place, Nigel Tipple, LEP Chief Executive, and Sadie Patamia, Corporate Governance Manager – Oxfordshire LEP, have been invited to present a report on the Local Enterprise Partnership Integration.

The Committee is asked to consider the report and raise any questions, and to AGREE any recommendations it wishes to make to Cabinet arising therefrom.

Cllr Liz Leffman, Leader of the Council, Cllr Dan Levy, Cabinet Member for Finance, Lorna Baxter, Executive Director of Resources and Section 151 Officer Robin Rogers, Director of Economy and Place, and Nigel Tipple, LEP Chief Executive, attended to present a report on the Local Enterprise Partnership (LEP) Integration.

The Leader of the Council introduced the report on the integration of the LEP into the County Council, noting that an interim business plan for 2025/26 had been approved which aligned with the Councils strategic objectives. The Leader also noted a new board had been formed, inviting former LEP board members to join the Economic Partnership Board. The Leader also informed the committee that the LEP had been renamed Enterprise Oxfordshire (EO) as part of this integration.

The LEP Chief Executive confirmed the transition effective from April 1st, 2025, and assured continued operation under the new name. He highlighted maintaining existing programmes, securing government funding, aligning with Council priorities, and appointing an independent business chair for the EO’s board and formation of the Oxfordshire Economic Partnership Board as the EO’s key areas of activity following its integration.

Concerns were raised about the governance of EOs integration, questioning why the County Council had established a complex governance structure and did not instead simply absorb the EO’s functions. The Leader and LEP Chief Executive explained that establishing EO as a separate company allowed flexibility for commercial activities. They clarified that the new governance structure, including the Shareholder Committee, independent members, and auditors, did not add significant costs but ensured operational flexibility and aligned with strategic objectives.

Members examined the financial liabilities of EO, questioning if the County Council would inherit these liabilities, including staff costs, as the sole shareholder. The LEP Chief Executive clarified that existing funding streams covered most liabilities, but the County Council, as the sole shareholder, would ultimately hold the underlying liability. If the funding from government grants or other sources were to dry up, the County Council might need to provide financial support to ensure the company's viability, but EO had an operating reserve for unforeseen expenses or liquidation.

Members were concerned about the impact of establishing new strategic mayoral authorities on the plans and ongoing activities of EO. The Leader of the Council clarified that Oxfordshire aspired to be a driving force behind any such strategic mayoral authority in the region. The emphasis was placed on formulating a strategic economic plan that would outline Oxfordshire's priorities, which would subsequently inform discussions with the newly elected mayor. This proactive strategy aimed to ensure that Oxfordshire's requirements and goals were explicitly conveyed and incorporated into the overarching regional strategy.

The Committee AGREED to recommendations under following headings:

• suggested that the Audit and Governance Committee should review the governance arrangements of Enterprise Oxfordshire in a year's time, including examples of how decisions were made throughout the year. It also proposed that the Performance and Corporate Services Overview and Scrutiny Committee should review the performance of the organisation in a year to assess how well the new model has delivered its business plan.

• It was recommended that the financial liabilities and resilience of Enterprise Oxfordshire should be clearly documented and monitored, ensuring that the organisation has adequate reserves to cover unexpected costs and maintain operational stability.