Agenda item

To hear from Jon Hitchin. Chief Executive of Renaisi the leading and accountable body on Southwark Local Access Partnership (LAP) with input from Councillor Martin Seaton, Cabinet Member for Jobs, Business and Town Centres, Danny Edwards, Head of Economy, Matt Little, Principal Strategy Officer on Southwark’s role as a key partner and supporter of the LAP.

The commission then heard from Councillor Martin Seaton, Cabinet member for Jobs, Business and Town Centres on Southwark Pioneers Fund (SPF) and Local Access Partnership (LAP)

• Development of SPF 2018-2019; council proposal £33m program; LAP program blended social investment for social enterprise over 10 years.
• Proposal in October 2019 setting out visions for LAP and social economy enterprise support plan submitted to foundation for social investment and Big Society Capital (BSC)
• LAP vision statement is to have a collaborative, sustainable and diverse social economy, which delivers positive social impact and a better future for all Southwark residents. The collective ambition for LAP is to build a new capacity skills, community connections and support across social ecosystems to tackle entrenched social issues in Southwark.
• Refresh of SPF; creation and scaling up of commercial and social enterprise including revenue rating for charities, widen diversity of people owning or leading enterprise in Southwark, reduce enterprise carbon emissions, start-up program to generate good quality employment and generate wider social value, and growth program which is the enterprise board for later stages of  an enterprise focusing on growth, and social and community program that supports enterprises led by women and from BAME backgrounds.

The commission then asked questions on the following points

• Allocation of LAP funding through Access foundation, and funding through SPF
• Lack of access to funds for businesses like East Street Traders and organisations like Black Business Network.

The commission heard from Matt Little, Principal Strategy Officer that the money is yet to be withdrawn through the access foundation which would then along with SPF funds be allocated at a granular level to businesses.

Councillor Seaton informed the commission that regular visits have been made to businesses across Southwark, the issue has been the underlying disconnect with traders, and leaflets have been distributed across Southwark to mitigate this. The council is constantly promoting the message across the community of buying locally from local businesses and many organisations such as the Federation of Small Business (FSB) and Chamber of Commerce offer professional support and guidance to local businesses.

The commission then heard from Jon Hitchin, Chief Executive of Renaisi the leading accountable body for LAP in Southwark

• Social Investment Models and driving investment into social businesses and social enterprise which is a thriving sector in the UK
• LAP- Renaisi’ s role and future plans to co-ordinate and access funds from Access Foundation and BSC
• Challenges- massive equity differences in BAME and Women led social enterprises and London economy driven land and property prices. Southwark is the only London Borough included in this program.
• £900k from Access as development grants and £500k from SPF for BAME and women led businesses to grow as Enterprises
• £5m from BSC and Access combined monies to go only to investment as repayable finance and not grants of any kind.
• Community Asset Trust model being developed to invest in local assets, properties and spaces with repayable finance at set interest rates which could be collectively owned by a community group and not the council or Renaisi.
• Renaisi co-ordinating with local businesses community groups to invest in multiple properties within the borough.
• Proposition to de-couple development finance from investment finance speeding up the delivery of finance in the community with an aim of perpetuity in the model.

The commission then asked questions around the following themes

• Deadlines on BSC monies investment and council’s role in supporting the development of the community asset trust model.
• Support within the LAP for successful BAME businesses like ‘Plush’ who have been evicted as a result of the private landlord wanting the land for redevelopment.
• Affordable work spaces for local businesses through long leases. Planning applications to help affordable work space provisions.

Jon explained to the commission that BSC are focused on having enough confidence in development of the Community Asset Trust Model rather than a deadline to spend the investment money. The council has been incredibly supportive of the LAP and developing the model. The council also has a major role in bringing together partners, building partnerships and networking. The decisions made on council owned properties and assets are dependent on variety of factors, pressures and demands.

Jon explained to the commission that in order to make the Asset Trust Model to respond to on demand issues for businesses such as Plush; it would depend on the viability of site, land value challenge and the market demand of the land for development. Although it’s unlikely that that a community social investment trust can outbid the market value for a site.

Councillor Seaton explained to the commission there are certain protection within the planning policy framework for businesses in-situ for 10 or more years. Small to Medium Enterprises have support available from professional organisations where the council could provide guidance. The current levels of funding through LAP of a few million pounds would be inadequate in resolving such issues.

Councillor Seaton explained to the commission that Southwark is a very resilient Borough when it comes to businesses, the council is doing more to protect local businesses, by promoting ‘buy locally’ campaign. Councillor Seaton explained to the commission that he is confident that members in the planning committee will enforce the planning policies on affordable work spaces provision. The council’s economic strategy plan is out for consultation and it’s very important for all members and parties to come together to support the strategy.

Jon explained to the commission that procurement is a very important tool through which the council can help support the local businesses in Southwark.