Buckinghamshire Local Enterprise Partnership Limited, Bucks LEP, is a private company limited by guarantee incorporated in England and Wales. The registered office is Westcott Business Incubation Centre, Westcott Venture Park, Aylesbury, Buckinghamshire, HP18 0NX.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The Board met in January and February 2024 to agree an asset purchase agreement with Buckinghamshire Council, to adopt new Articles of Association leading to the voluntary dissolution of the company, to approve the TUPE transfer of staff, and to receive the resignation of private sector directors. The three public sector members of the board, all of whom are Buckinghamshire Councillors, remain in post to oversee the closure of the company later in 2024.
Income and expenses are included in the financial statements as they become receivable or due.
Grant income receivable by the company for the administration of grants is credited to the income and expenditure account so as to match the expenditure incurred.
Grant funding received but not utilised is included within reserves where held by the LEP or other debtors where it is held by the company’s Accountable Body, Buckinghamshire Council.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The company operates as a not for profit company, and receives income in the form of grants. As a result, any net surplus arising from these activities is non-trading and exempt from corporation tax. The company is liable to corporation tax on interest received and other investment income, after deduction of allowable expenses.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the year was
The balances held in other debtors greater than 1 year represent three loans provided pre-incorporation by Buckinghamshire Council on behalf of the LEP, to Silverstone Heritage, BBF & Satellite Application Catapult.
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
At Spring Budget 2023, the Chancellor announced that the Government was ‘minded to’ withdraw central government support (core funding) for Local Enterprise Partnerships (LEPs) from April 2024 and transfer their functions – namely, business representation, strategic economic planning, and the delivery of government programmes where directed – to local authorities. Government wrote in August 2023 to confirm their decision to defund LEPs. The LEP Board decided to move towards an accelerated integration programme to meet the Government’s objectives of supporting local leadership, effective use of public resource and providing greater clarity to the business community on provision of business support services. Ministers again wrote in December 2023 to provide transition guidance with the requirement that LEP integration should occur by April 2024. The Board subsequently met in January and February 2024 to agree an asset purchase agreement with Buckinghamshire Council, to adopt new Articles of Association leading to the voluntary dissolution of the company, to approve the TUPE transfer of staff, and to receive the resignation of private sector directors. The three public sector members of the board, all of whom are Buckinghamshire Councillors, remain in post to oversee the closure of the company later in 2024. The remaining assets and liabilities for the company – including the corporation tax liability listed in the balance sheet – transferred to Buckinghamshire Council.
In their role as the company's Accountable Body, Buckinghamshire Council has received and held income and paid costs on behalf of Bucks LEP. Amounts held by the council and due to the LEP are recognised in the balance sheet.
In addition, funds were drawn down from the Buckinghamshire Enterprise Zone (formally Aylesbury Vale Enterprise Zone) to support the ongoing operating costs of the company. This sum was approved and recorded through the formal budget setting process, governed by Finance and Audit Committee and the Board.
As with all Local Enterprise Partnerships, funding for core activities comes from Government and channelled through the Cities and Local Growth Unit (the Department of Levelling Up, Housing and Communities and the Department of Business & International Trade). Payment of these amounts is dependent on meeting the governance and transparency criteria set out by the Government, who have a representative on the company's Board as an observer.
In addition, the following are related parties in line with the Assurance & Accountability Framework. During the year 23-24 Bucks LEP engaged in transactions as part of its operations with these organisations where common directors have had non-financial interest. Members of the organisations below declared an interest at the LEP board and were not part of the decision-making process for the following awards:
Buckinghamshire Business First – operational and service delivery, covered by MOU between the two companies.
Pinewood Group - support for Planning Application
Buckinghamshire College Group - Management of Local Growth Funding for College Facility Development
Satellite Applications Catapult – Local Growth Awards and Loan Funding
Buckinghamshire Advantage - EZ funding for Woodlands project
The balance in other reserves is made up as follows:
Buckinghamshire Council, as the Accountable Body, hold funds on behalf of and that are managed by the LEP. Transactions of the funds are detailed below.
These funds are recorded in Buckinghamshire Councils accounts, and disclosed here for completeness.
Buckinghamshire Council, as the Accountable Body, hold funds on behalf of and that are managed by the LEP. Transactions of the funds are detailed below.
These funds are recorded in Buckinghamshire Councils accounts, and disclosed here for completeness.
The remaining balance of LGF 'recycled' funding is under the control of the LEP, and is recognised in these accounts in the LEP's reserves balances, with Buckinghamshire Council as a debtor. Funds will be transferred from the Council to the LEP during the first half of 23/24 Financial year.
Buckinghamshire Council is the Accountable Body for the Enterprise Zone and holds the funds on behalf of the LEP, with the management of the funds agreed between the LEP and Buckinghamshire Council via a Memorandum of Understanding.
Buckinghamshire Council holds Enterprise Zone funds on behalf of the LEP. The reserve position for the Enterprise Zone programme will be £5,285,000, this is anticipated to grow to £6,944,000 by March 2024. The current review of business rates is likely to increase the future revenue from occupied premises.