ESTABLISHING THE CHESHIRE SCIENCE CORRIDOR ENTERPRISE ZONE

INVITATION TO TENDER

Introduction

  1. The Autumn Statement announced that Cheshire & Warrington had been successful in its bid to make the Cheshire Science Corridor an Enterprise Zone (EZ). The Zone covers sites at Alderley Park, Birchwood, Thornton and Ellesmere Port and will offer a mix of Business Rate discounts and Enhanced Capital Allowances to new occupants. It also allows the area, via the LEP, to retain business rate income across the Zone – albeit this raises issues about how much extra income this will generate for the sub-region following the announcement last September by the Chancellor that all LAs will be able to retain all business rate income by the end of the Parliament.
  1. DCLG will be passing a series of Parliamentary Orders that will give legal effect to the new zones from 1 April 2016 – leaving less than three months for C&W to complete the work necessary to have the Zone fully operational from that date. The Cheshire and Warrington LEP is therefore inviting bids from firms able to set up a small team to work within the LEP to deliver the set up work LEP.

Issues to be Resolved Before the Zone Becomes Operational

  1. The LEP is inviting tenders from firms able to assemble a small team of experienced staff able to undertake the work necessary to have the new EZ fully operational by 1 April. As a guide, the LEP, working with its local authority colleagues, has identified a range of issues that will need to be resolved before that date, including:

Legal Boundaries

DCLG and the Treasury will be passing orders establishing the legal boundaries of the sites that will benefit from Business Rate discounts, and those that will attract Enhanced Capital Allowances (ECA). Details of the former were sent to DCLG just before Christmas, and Treasury have just issued a similar request for the ECA boundaries.It is inevitable that queries will arise as the formal orders are drafted.

Business Rate Discounts

As the billing authorities, the three local authorities will be responsible for the implementation and operation of the Business Rate discount system in their area, including passing any regulations necessary to bring it into effect. DCLG will refund any discounts that are awarded and some care may be needed to ensure that discounts are not awarded that DCLG are unwilling to under-write.

Marketing, Branding and Communications

A key benefit of being an EZ is the value offered by its brand. If the Zone and the wider area are to get the most out of this, a strong branding and communication plan needs to be in place by the time of the formal launch of the Zone.

Ongoing Oversight

The original bid commits that C&W will put in place a formal EZ Board chaired by Robert Mee. Membership and terms of reference for this will need to be established, whilst DCLG will also expect some executive resource to be put in place within the LEP to oversee the operation of the Zone on a day to day basis. The latter will need to include provision for monitoring and evaluation of the Zone, something that is of heightened importance to DCLG following criticism from NAO about the lack of evaluation of other local growth initiatives. The successful contractor will be expected to set out the role description for this longer term role, and assist in its recruitment.

MOU with DCLG

DCLG have said that they will be looking to agree an MOU with each new EZ by the end of February. A template for the MOU is due to be issued shortly. This may introduce new issues that have to be resolved before the Zone goes live and/or demand an accelerated timetable for decisions, in particular, on the use of retained Business Rates.

Longer Term Issues

  1. The original bid said that business rates retained from new business on the EZ site would be used to cover the costs of infrastructure necessary to promote their success, with a specific reference to enhanced access roads at Birchwood. Anything left would be put into the Housing and Employment Investment Fund that has been discussed as part of C&W’s devolution proposals. However, this proposition assumed the current system of Business Rate retention, and that such investment would therefore be funded by the proportion of business rates currently retained by the Government.
  1. DCLG have yet to explain how the Chancellor’s new Business Rates system will work, so it is very difficult to understand its implicationsand whether the area will still retain income on the EZ that would otherwise go to the Government. LAs will, understandably, want to ensure thathaving an EZ in their area does not leave them worse off than they would otherwise have been. There will need to be a conversation between the LAs and the LEP about this, but it will be very difficult for this to be an informed discussion until more detail is providedabout the new Business Rates system. Nevertheless, it may be necessary to address the issues it raises prior to 1 April.

Resourcing

  1. Experience from elsewhere suggests that the volume of work necessary to have the EZ operating by 1 April requires a team of 2 – 3 people operating out of the LEP between now and April. The LEP is therefore looking to the successful tenderer to put together an experienced team of around this size capable of leading the EZ set up work. The LEP itself will provide an officer able to provide close to full time executive support to the team and anticipates that the winning contractor will have a discussion with Marketing Cheshire about the work required on marketing, branding and communications. Marketing Cheshire and the LEP are both part of 871 Growth, a company limited by guaranteeto lead on the strategic development and marketing of the Cheshire and Warrington economy.
  1. Given the short time available to complete the set up work, the team bidding to undertake this work will need to have previous experience of the issues that arise in establishing business parks and, ideally, Enterprise Zones. It will also need to be in a position to make a very quick start.

Direction and Oversight

  1. Board level oversight of the set up teams work will be provided by Robert Mee and the EZ Board (once it is formally established). On a day to day basis the team’s work will be overseen by a working group of LEP and LA officers, chaired by the Chief Executive of the LEP. This will meet as often as necessary, initially once every two weeks.

Submitting a Tender

  1. Given the urgency the deadline for return of proposals is close of business on Wednesday 27 January 2016 and must include:

-Names of the people it is proposed will work on the assignment, along with a description of their role and relevant skills and experience;

-A description of the proposed approach to the assignment and how this will best meet the needs of the LEP;

-Details of the main point of contact for the tender;

-The price, exclusive of VAT, including details of any ancillary costs and expenses likely to be incurred by the LEP;

-A completed version of schedule 1 to this invitation.

  1. The LEP is looking to appoint consultants within a few days of the closing date for receipt of tenders, and may decide to interview some or all of those tendering as part of the appointment process. Price will be a factor in the appointment, but the key determinant will be the LEP’s judgement, on the basis of the submissions it receives, of which tenderer is likely to be able to have the EZ successfully operating by 1 April.
  1. Tender responses, and any requests for further information or clarification should be directed to Philip Cox, Chief Executive of the LEP, who will also be the LEP’s primary point of contact for the duration of the assignment. Philip can be contacted directly, or via his PA, Alison Harkness at:

Cheshire and Warrington LEP

Richmond House

Gadbrook Business Park

Rudheath

Northwich CW9 7TN

Tel 01606 812289

01606 812280 (PA)

Mobile 07538 215280

Schedule 1 - Declaration

I/We the undersigned, hereby quote to supply the goods / service / products detailed in this tender, at the respective prices quoted. (Prices must not include VAT).

I certify that as far as I know, the information I have supplied is accurate.

I/We agree that this tender shall remain open to be accepted or not by the LEP for a period of six months from the closing date for the receipt of tenders.

I/We agree that the LEP may discontinue the tendering arrangements at any time before a tender has been accepted.

I/We accept the specification and terms and conditions accompanying the request for tender and undertake to be bound by them if my/our tender is accepted by the LEP.

I/We certify that I/we have not now or will in the future, canvassed or solicited any representative or employee of the LEP and any other companies in the group of which the LEP forms part, in connection with this tender and that to the best of our knowledge and belief no person employed by me/us or acting on my/our behalf has done such an act.

I/We understand that the LEP is not bound to accept any tender and will not be liable under any circumstances whatsoever for the costs I/we have incurred in preparing the tender.

The tender submitted herewith is a bona fide tender intended to be competitive.

We have not fixed or adjusted the amount of the tender by or under or in accordance with any collusive agreement or arrangement with any other person.

NAME OF CONTACT:
DESIGNATION:
COMPANY NAME:
ADDRESS (including postcode)
TELEPHONE:
FAX:
EMAIL:
SIGNATURE:
DATE:

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