Agenda item

23.1

The Committee considered a report of the Executive Director of City Futures which provided an update in relation to the UKSPF programme in Sheffield and outlined the implications should the funding not be extended in 2025/26 and beyond. In doing so, it also set out options to partially mitigate the loss of service provision should UKSPF no longer be available.

23.2

The Chair requested a briefing update on this item before the next meeting of the Economic Skills and Development Policy Committee.

23.3

RESOLVED UNANIMOUSLY: That the Economic Development and Skills Policy Committee:-

1.    Notes the programme and the benefits of the UK Shared Prosperity Fund programme in Sheffield and the implications should this funding cease to be available from 2025/26.

2.    Notes and supports the development of mitigation options to minimise the negative implications of the potential loss of the UK Shared Prosperity Fund and supports the implementation of such options.

3.    Approves the one-off funds (see 4.2.2) of retained EU Funding, retained UKSPF and LEGI Investment Returns being assigned to a 25/26 extension UKSPF programme, subject to confirmation that any financial liabilities to the Council and/or clawback clauses have expired (and in compliance with grant terms and conditions).

4.    Approves the Gainshare Revenue funding for 24/25 and 25/26 being ringfenced for a 25/26 extension programme until the future of UKSPF is determined.

5.    Requests the Leader of the Council continues to highlight the potential significant business and skills impact of the loss of the UKSPF programme for Sheffield to the South Yorkshire Mayoral Combined Authority and national government bodies to request the local outcomes are delivered for the future with a similar locally developed and delivered economic development programme of at least equal value and for at least a one-year period.

23.4

Reasons for Decision

23.4.1

This report provides Committee with an update of the UKSPF programme to date and highlights the real concern that this activity will come to an end in March 2025 when the current UKSPF programme is due to end.

23.4.2

Without a continuation of UKSPF or a similar replacement programme the Council will see a number of activities either cease or significantly reduce in scale which will have a direct impact on our ability to contribute to a number of objectives and priorities in the Council Plan and City Goals. The loss of funding will also potentially lead to resourcing implications.

23.5

Alternatives Considered and Rejected

23.5.1

UKSPF Funding Continues - The preferred option is to see Government continue UKSPF funding for at least a further three years or replace it with a similar programme. Should this be the case the funding identified in Section 1.5.1 could be used to develop and implement a significantly enhanced programme of activity using that could, for example, align closely with strategic initiatives such as the Investment Zone and Innovation Spine. Such a scenario would see a programme presented to Committee for consideration. However, without any certainty being provided in this respect the recommendation is for the Council to raise their concerns with Government to encourage that such funding is forthcoming.

23.5.2

Reduce programmes to SCC budget levels - The current position is that UKSPF funding will cease in March 2025 and this option would see business support and skills and employability activity significantly reduced in scale in line with the core budgets of Business Sheffield and Opportunity Sheffield. The community activity funded by UKSPF would likely cease altogether

23.5.3

Utilise alternative funding - Should UKSPF not continue or only be extended for a limited period the alternative approach is to utilise the funding identified in Section 1.5.1 to, in part, mitigate the loss of UKSPF and develop a programme that maintains an important but significantly reduced core offer of locally developed and delivered economic benefits to the residents and businesses of the City.