Agenda item

The Chairman and Executive Director of the Worcestershire Local Enterprise Partnership (WLEP) had been invited to the meeting to provide an annual update on the achievements of the WLEP over the last 12 months and to outline strategic objectives for 2019/20.  The WLEP Director of Operations and the Local Authority’s Section 151 Officer were also in attendance.

The Chairman and Executive Director of the WLEP introduced the report by way of a presentation.  The following main points were made:

·         Although Worcestershire was a small county it had a reputation for delivery and for thinking to the future.  The County had a strong profile with central government.

·         The importance of connectivity (both physical and digital) was emphasised.

·         The LEP was ahead on the 3 main KPIs as set out in the Strategic Economic Plan.  With economic growth at 3.1%, WLEP was one of the leading LEPs nationally.

·         It was now important to maintain the LEP’s reputation and keep the KPIs moving in the right direction.

·         In terms of structure, the WLEP was working effectively and had implemented all but a couple of the recommendations from the Government’s LEP review.  Having the right governance was important and the WLEP was in a strong position.

·         The WLEP was part of a local consortium of partners taking forward work on 5G and expertise within the County was now very strong.  This had resulted in the development of the UK’s first 5G-enabled factory and it was anticipated that 5G would have a significant impact on productivity.

·         Improved connectivity meant that businesses no longer needed to be based in cities and improvements locally meant that the benefits of an urban lifestyle could be found in a beautiful place.  5G had been a huge success, not just for Worcester or Malvern but for the whole county.  It was something that set Worcestershire apart from other regions.

·         The Worcestershire economy could be described as ‘a thousand flowers that bloom’ with no single specialism and no one huge employer.  The economy was mainly small to medium enterprises with a different make up in each district.

·         In October 2018 the WLEP had launched BetaDen, the county’s first Technology Accelerator.  This recognised the shift to the technology sector and aimed to give companies accelerated support.

·         In relation to skills development, the WLEP was working with every middle and high school in the county to deliver support in line with curriculum requirements.

·         The Energy Strategy was a large piece of ongoing work which included ambitious carbon saving targets.

·         Despite Brexit, inward investment was strong and the development of Worcester 6 was highlighted.  This was a good logistics site and had also attracted businesses from many different sectors.

·         The WLEP had hosted a number of foreign delegations including delegations from France and Israel looking at security technology, involving companies from across Worcestershire.  The aim was to create a cluster of companies in ‘Cyber Valley’ with a strong reputation within the UK and internationally.

·         The annual Skills Show had been held at Chateau Impney and had been attended by more than 5000 young people with representation by more than 100 companies.

·         Although it was important to develop a Worcestershire brand with a whole county feel, there was no huge marketing budget for this.  The WLEP was aiming to recruit 1000 county ambassadors to sell the county to other business people.

·         In terms of Business Plan priorities for 2019/20, the key objectives were to develop a Local Industrial Strategy and refresh the Strategic Economic Plan.  All LEPs were required to produce a Local Industrial Strategy in 2019.  This would highlight Worcestershire’s distinctive strengths and the evidence base would be critical.

·         Key infrastructure schemes receiving LEP investment were highlighted including:

o   A38 Bromsgrove which was one of the top ten priority areas for West Midlands Connect

o   Churchfields, Kidderminster which was being undertaken jointly with Wyre Forest District Council and Greater Birmingham and Solihull LEP (GBSLEP) with construction starting in September.

o   The Duckworth Centre of Engineering which was approved in November 2018 and would see £4 million investment in a multi-site engineering centre.

o   Kidderminster Rail Station which would see a partnership with GBSLEP to update the second busiest railway station in the county.

o   The Kiln Worcester would see £195k investment in the refurbishment of the old police station building to provide a collaborative space for professionals and entrepreneurs.  The formal launch would take place in September 2019.

o   Pershore Northern Link improvements would see a £5 million LEP investment.

o   Worcestershire Parkway station which would see a £8.3 million LEP investment in partnership with the County Council.  This was on target for completion by the end of 2019.

o   Dualling the Carrington Bridge which would build on previous investments in the road network.

·         Feedback from the WLEP’s Annual Performance Review had been positive with the WLEP receiving ‘good’ judgements across the three categories of Strategy, Delivery and Governance.  Despite this, the WLEP was committed to continuous improvement, with a particular target to improve the diversity of the LEP Board.

·         In summary, it was important for all partners to work together and contribute to the Strategic Economic Plan going forward.  The county had momentum and was building the enablers for economic growth.

Members were given the opportunity to ask questions and the following main points were made:

·         In response to a request for further information on 5G, Members were informed that 5G’s speed and capacity would lead to a fundamental change in technology.  It was part of a jigsaw of solutions with many applications.  The WLEP aimed to educate businesses on how 5G could help.

·         A question was asked about the future of WLEP given its small size.  In response, Members were informed that there had been no discussion about change.  The WLEP’s success meant that it had a strong voice which could be enhanced by collaboration with other LEPs in the region.

·         A Member suggested that, although it was positive to hear about the success of 5G, there were still areas of the county (for example parts of Kidderminster) which could not yet get reliable 3G.

·         It was suggested that Kidderminster Railway Station was a brilliant development but that the initial consultation had been flawed.  In particular, parking around the station continued to be a problem, causing real issues for local residents.  In addition, the road network needed to improve in order to meet passenger targets.  It was acknowledged that the development had some knock-on effects but development was an iterative process which had to start somewhere.

·         Although the suggested electrification of taxis was welcome, the number of available changing points was questioned.  In response, it was suggested that rapid charging would mean a taxi could be charged in 20 minutes.  The WLEP’s energy strategy was starting to look at this.

·         Members were encouraged to feed in their comments to the Local Industrial Strategy.

·         The focus on rail was welcomed.  A question was asked about the potential to increase capacity on the Shakespeare line which would open up Worcestershire’s Eastern gateway.  The feedback was welcomed and Members were reminded that rail expansion was a key enabler and differentiator for the county.

·         In response to a question about support for small and medium-sized businesses, Members were reminded that approximately 95% of the value of UK PLC was in small businesses.  The WLEP was working with local businesses to give them the tools to grow, with 5G connectivity providing a real opportunity.  It was acknowledged that these businesses were run by hard working people who were often difficult to reach as their focus was on running their business.

·         It was suggested that access to information on available support was difficult for small businesses.  The Board was informed about a scheme in Valencia, Spain where bigger businesses shared their expertise on how to get things done with smaller companies.

·         In response to a question about the engagement of children and young people with business, Members were informed that more young people were now looking at apprenticeships, something that was promoted by the WLEP.

·         A question was asked about what might be available to replace EU funding and whether central government could help further.  Given the reductions in local authority funding, it was suggested that the WLEP now had spending power that councils no longer had.  The Board was reminded that the WLEP did not make spending decisions but rather agreed priorities with partners.  The WLEP had a good track record for delivering.

·         Concern was expressed that, although Redditch was a key manufacturing and engineering base in the county, young people still had to travel to Worcester for skills training.  It was acknowledged that Redditch was an important area of advanced manufacturing and Members were reminded that Heart of Worcestershire College had an engineering centre in Bromsgrove.

In conclusion, Members noted the developments outlined in the report and presentation and suggested that:

·         The relationship between the WLEP and individual Councillors should be further developed.

·         Work to enhance the diversity on the WLEP Board should be supported.

The Board would welcome a further update in 12 months’ time.