Agenda item

Report of the Chief Executive of Nottinghamshire County Council

This item does not contain any decisions which are subject to call-in.

Anthony May, Chief Executive of Nottinghamshire County Council, presented the report which provides an update on examining the feasibility of a Midlands Engine Development Corporation: a single delivery vehicle, initially providing a business case which will be submitted to the Secretary of State for the development of the area around the HS2 line to include the proposed HS2 station at Toton, connecting to East Midlands airport, and the Ratcliffe on Soar power station.

The potential developments of the area would include residential, leisure, industry and commerce, with excellent road rail and air links. The power station site is important to Ratcliffe and the owner, Uniper UK Limited, is very progressive in its approach to low carbon energy generation, which will be attractive to industrial and residential consumers. The airport has recently been substantially expanded and has the capacity to be the busiest UK cargo airport in the UK with a huge area provided for logistics operators near to the new rail link.

Facilitated by Nottinghamshire County Council Officers, representatives of local stakeholders, including Universities, LEPs, and the private sector investors, have agreed a statement of intent, which is attached to reported appendix A.

During the discussion the following points were made and questions responded to:

a)  There is potential for construction of a Freeport within this scheme. Central Government has launched this initiative for 10 sites across the country to be designated as Freeports whereby goods enter, are manufactured/assembled, then distributed either within Britain or flown elsewhere, with tax breaks provided. A Freeport must not negatively impact the greater area as a result of displacement. A detailed proposal for East Midlands airport has been formulated by a working group with public consultation closing on 12 April 2020;

b)  The wider economic benefits for the County are welcomed as is strengthening of the business case to reopen the Maid Marian rail line, which would further increase connectivity into the County;

c)  It is a concern that this scheme could draw investment into the area to the detriment of the North the County. Increasing connectivity to the Newark and Sherwood area may benefit employment, but more assurance is needed with regard to the wider benefit across the County;

d)  The overall business case is very exciting and it is good to be ambitious for our citizens, but the inclusion of a Freeport must be very carefully considered, particularly with regard to the implications on the carbon agenda. Carbon offsetting does have benefits but would not necessarily address carbon emission issues within the immediate area. Although the greater scheme is planned over several decades and technology will undoubtedly progress, more detailed information is required with regard to air-quality;

e)  The rail line will connect with other areas in the county, and into Lincolnshire, removing freight from our roads and freeing them up for cars. A passenger rail link to the airport is most welcome;

f)  This is a whole package and it is not possible to select or reject elements in isolation, such as the Freeport;

g)  Further consideration must be given to citizens of North West Leicestershire, in the region of the airport, as they feel that this is being done to them and not with them so their positive engagement is necessary.  Anthony May set out the extensive efforts which were being made to engage partners across the region;

h)  The economic benefits are welcomed with what may be a ‘goldmine’ for the whole region. The opportunities for our young people and employment as a whole are welcomed and will hopefully help retain graduates from local universities. However, we must ensure that the benefit catchment includes the broader area of the County;

i)  The overall scheme is supported and the way forward for our region but this must be in addition to existing business and not drawn from other areas of the City and County, and  must benefit the whole county;

j)  In addition to increasing business potential for surrounding areas the scheme will also act as an incentive for the adaptation of other power station sites within the County. Central Government does not appear to be focusing on carbon capture technology, so possibly the Midlands could take the lead;

k)  An estimated £450 million is needed to put the connective infrastructure in place, to build the proposed development will be more than £1 billion, so the scheme must attract investment. There is already a commitment of £25 million into existing road systems. Whilst business and local authorities have great ambition for what may be a globally leading model, bold decisions may be required, we must consider this one step at a time.

Resolved

1)  to endorse the progress with work to examine the feasibility of a Midlands Engine Development Corporation:

2)  to endorse the statement of intent, as attached as Appendix A to the report.