SCRUTINY MANAGEMENT BOARDSPECIAL MEETING

Jo Lappin12 March 2019

GOVERNANCE

OverviewØ Board – refreshed, 19 members including better

gender representationØ Local Assurance Framework - revised and new

version being developedØ Annual Performance Review – addressed issues

from 2018/19Ø Company formation – CLEP now a company

limited by guarantee

Governance

Strengthened LocalEnterprise Partnerships

Role of LEPs

Ø Strategy - developing an evidence-based LocalIndustrial Strategy that identifies localstrengths and challenge, future opportunitiesand the action needed to boost productivity,earning power and competitiveness across thearea

Role of LEPs

ØAllocation of Funds - identifying anddeveloping investment opportunities;prioritising the award of local growthfunding; and monitoring and evaluatingthe impact of activities to improveproductivity across the local economy

Role of LEPsØ Co-ordination - using our convening power, for

example to co-ordinate responses to economicshocks; and bringing together partners from theprivate, public and third sectors

Ø Advocacy – collaborating with a wide range oflocal partners to act as an informed andindependent voice for their area

ResponsibilitiesØDevelop an evidence-based Local Industrial

Strategy that sets out a long-term economicvision based on local consultation

ØPublish an annual delivery plan and end ofyear report. This will include KPIs to assessthe impact of their Local Industrial Strategy,funding and interventions, to inform objectiveassessment on LEP performance.

Leadership and Organisational CapacityØ Consult with business community before appointing a

new Chair; and introduce defined term limits for Chairs andDeputy Chair

Ø Representative boards of up to 20 persons with the option to co-opt up to five additional board members. Aspiration is that two-thirds are from private sector

Ø Improve gender balance and representation of those withprotected characteristics so women make up at least one third by2020 with expectation for equal representation by 2023

Ø Independent Secretariat in place

Accountability and PerformanceØ Have a legal personality, such as incorporation as companies, or

mayoral combined authorities or combined authoritiesØ Set out clearly and transparently responsibilities of the Chair,

Board, Director, and Accountable Body, including over spendingdecisions, appointments, and governance.

Ø Participate in relevant local authority scrutiny panel enquiriesto ensure democratic scrutiny of investment decisions.

Ø Hold Annual General Meetings open to the public to ensurethat communities can understand and influence economic plansfor the area.

GeographyØRemove geographical overlaps,

where these existØCollaborate across boundaries where

interests are aligned when developingstrategies and interventions to maximizetheir impact across their differentobjectives.

DELIVERY

Growth Deal Programme - ContractedProject Ref Project Title Project Applicant Project Status Area Funding Amount

ApprovedGD001 Optimising Connectivity Cumbria County Council Live South Lakeland 2,000,000

GD002 Barrow Waterfront Cumbria County Council Live Barrow 7,178,470GD003 Kendal Transport Infrastructure Cumbria County Council Live South Lakeland 2,300,000GD004 Barrow Advanced Manufacturing Centre Furness College Live Barrow 1,126,000GD005 South Ulverston Infrastructure Improvements Cumbria County Council Live South Lakeland 3,910,000GD007 Durranhill Carlisle City Council Live Carlisle 2,000,000

GD008 Devolved Majors Cumbria County Council Live Carlisle & Allerdale 7,800,000GD011 Connecting Cumbria Cumbria County Council Live Cumbria 3,600,000GD013 Cumbria Skills and Capital Programme Cumbria LEP / Cumbria County Council Live Carlisle, Eden, South Lakes, Barrow 2,000,000GD014 Advanced Manufacturing Centre Carlisle College Live Carlisle 900,000GD015 Port of Workington- Road Access Port of Workington (Cumbria County Council) Live Allerdale 2,000,000GD020 Carlisle Airport Stobart Air Live Carlisle 4,950,000

GD018 Business Flood Recovery Works James Cropper plc Closed South Lakeland 1,000,000GD019 Business Flood Recovery Works United Biscuits (UK) Limited Closed Carlisle 1,000,000GD025 Project Ark James Walker & Co Limited Live Allerdale 2,600,000GD026 Expansion of Business Premises Support-in-Sport (Manufacturing) Company Live Allerdale 274,305GD028 Manufacturing & Premises Purchase Clark Door Live 569,000GD029 MEC M-Sport In-Contracting Allerdale 1,300,000

TOTAL 46,507,775

Growth Deal Programme – In DevelopmentProject

Ref Project Title Project Applicant Project Status Area Funding Amount

GD022 Lillyhall North (Revised) Allerdale Borough Council In development Allerdale 2,000,000

GD023 North Shore Development(Whitehaven) Britain's Energy Coast In development Copeland 4,500,000

GD024 Skills Capital 2 Cumbria LEP / CumbriaCounty Council In development Cumbria 1,160,000

GD027 Cumbria Coastal Rail Cumbria County Council Approved, subject to DfTApproval West Cumbria 960,000

GD030 Optimising Connectivity 2 Cumbria County Council In development TBC 750,000

GD031 Carlisle Citadels Cumbria County Council In development Carlisle 3,000,000

GD032 Bulk Cement Import Atlas Concrete Ltd In development Allerdale 1,350,000

TOTAL IN DEVELOPMENT 13,720,000

TOTAL CONTRACTED (PREVIOUS SLIDE) 46,507,775

GROWTH DEAL OFFER 60,320,060

UNCOMMITED FUNDS 92,285

Outcomes

Programme Outputs

Jobs(Created /Safeguarded)

Investment(Public & PrivateMatch / Follow-onInvestment)

LearningOpportunities Housing

Sq MetresPremises(Created /Refurbished)

Premiseswith accessto superfastbroadband

Outputs in BEIS Growth Deal Offer Letter 4,000 £100,000,000 1,700 3,000 62,000 5,000

Project Allocations/Commitments 6,164 £90,561,461 4,576 3,400 230,785 5,925

Forecast 7,221 £103,649,252 7,470 3,400 235,244 9,171

Achieved 1,735 £20,901,529 2,169 408 6,515 6,776

Achieved (% of BEIS Target) 43.4% 20.9% 127.6% 13.6% 10.5% 135.5%

Still to be achieved (From Offer Letter Target) 2,265 £79,098,471 ACHIEVED 2,592 55,485 ACHIEVED

Development WorkØ Implementing contingency plans should any of the

in-development projects not proceed to contractØ Reviewing output/outcome/impact performance to

see if potential to accelerate deliveryØ Full review of Cumbria Infrastructure FundØ Influencing future funding – Shared Prosperity

Fund, Stronger Towns Fund etc.

STRATEGY

The Industrial Strategy• Government White Paper ‘Industrial

Strategy; building a Britain fit for thefuture’ produced on 27 November 2017

• Outlined plans to boost productivity andthe earning power of people throughoutthe UK

• Framed around five foundations ofproductivity and four grand challenges

Foundations of ProductivityIdeas - the world’s most innovative economy

People - good jobs and greater earning power for all

Infrastructure - a major upgrade to the UK’sinfrastructure

Business Environment - the best place to start and growa business

Places - prosperous communities across the UK

Grand Challenges• Putting the UK at the forefront of the

artificial intelligence and data revolution• Maximising the advantages for UK industry

of the shift to green growth• Becoming a world leader in shaping the

future of mobility• Harnessing the power of innovation to

help meet the needs of an ageing society

Twin Platforms

ProductivityGovernment’s

priority forthe LIS

InclusiveGrowthNobody

left behind

Our Strategic Location

Our Unique Offer

Cumbria’sUniqueOffer

Unique quality environment and geography• Centre of north of Britain

• On key road (M6/A66) and rail (WCML) corridors• Globally recognised for beauty and natural assets (2 National Parks, 3

AONBs, 2 World Heritage Sites)• Lowest population density in England:

space to visit and air to breath• UK centre for outdoor adventure of all kinds

Strategic resources for the UK in 21st century• One of England’s key centres for high

quality food• Energy renewable resources: wind, tidal• Water resources of the highest quality

•Forestry assets for recreation and the economy

Our people andbusinesses

• Global nuclear expertise• Centre for £40 bn “national endeavour” for

new nuclear deterrent submarines• Advanced manufacturing from specialist

paper, to lighting to plastics• Strong and resilient Communities

Unique economy• Major concentration of globally oriented

manufacturing• Large visitor and outdoor industries

• Land-based and environmental industries

Our Vision

The place to live, work, visit and build a career;where world-class industry, innovation and energy

generation meets a premier rural and visitoreconomy in an outstandingly beautiful location.

The place to live, work, visit and build a career;where world-class industry, innovation and energy

generation meets a premier rural and visitoreconomy in an outstandingly beautiful location.

The productivity challenge (1)Productivity 13%to 15% below UKaveragedepending onthe measure…….improvedsince 2010 butflatlined recently

The productivity challenge (2)A third of thegap on the UKdue to ourindustrial makeup the rest dueto differencesat a sectorallevel

Accommodation & food servicesWater, sewerage & waste

Public administrationTransport & storage

ManufacturingAdministrative & support services

Other servicesProfessional, scientific & technical

ConstructionHealth

Finance & insuranceEducation

Wholesale & retailArts, entertainment & recreation

Agriculture, forestry & fishingInformation & communication

40 45 50 55 60 65 70 75 80 85 90 95 100 105

113

98

96

91

88

86

85

80

79

78

76

75

69

58

54

Productivity per job, Great Britain=100

110 115

103

Strategic Imperative 1 –Declining working age population

Major challenge asCumbria one of fewplaces in England wherepopulation has beenfalling1. We need to look atattracting more peopleto work here2. Retaining older workers3. Addressingworklessness

-7000

-6000

-5000

-4000

-3000

-2000

-1000

0

1000

2000

3000

0-17 18-24 25-34 35-44 45-54 55-64 65-74 75+

Cumulative net internal migration to Cumbria 2012 to 2017

Strategic Imperative 1 –Declining working age population

Strategic Imperative 2 –Thin pool of higher level skills

0 100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

CumbriaTees Valley

The MarchesBuckinghamshire Thames Valley

HumberGreater Lincolnshire

Stoke-on-Trent and StaffordshireOxfordshire

Cheshire and WarringtonThames Valley Berkshire

LancashireLiverpool City Region

West of EnglandSheffield City Region

North EastD2N2

South East MidlandsGreater Manchester

South East

Numbers aged 16 to 64 with NVQ4 or better Smallest pool of thosewith “graduate”level qualifications inEngland of any LEP areaAnd in practice thelabour markets acrossCumbria are separateA bit offset by proximityto other parts of UK(Lancashire andScotland)

Strategic Imperative 3 –Cold spots of worklessness and deprivation

Areas with high rates ofunemployment, deprivation, lowskills, poor health and worklessnessoverlap and are concentratedParticular issue in parts of the WestCoast, Barrow and parts ofCarlisleAlso noticeable are those areaswhere deprivation is in areas withsuccessful (and often growing)employers

2.0

3.3

2.2

1.4

2.4

0.2

3.2

2.52.2

Age 16+ Aged 16-17 Aged 18-24 Aged 25-49 Aged 50+

Claimant Count rate January 2019Claimant Count Cumbria Claimant Count GB

Strategic Imperative 3 –Cold spots of worklessness and deprivation

0.010.020.030.040.050.060.070.080.090.0

100.0

1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363738

% g

rad

e 5

in E

nglis

h &

mat

hs, 2

017

Schools Cumbria England

Strategic Imperative 3 –Cold spots of worklessness and deprivation

Strategic Imperative 4 –Business start-ups/ Key Challenge

Start-up rate 40%below thenational averageLack ofdynamism andlimited rate ofchurn in thebusiness base

2017

Strategic Imperative 5 –Faster growing firmsu Cumbria has fewer business that grow fast in both

absolute and relative termsu Measured in many different ways:

u Proportion of start-ups that reach £1m+ turnover (2014-17)u Proportion of £1-2m turnover businesses that grow to £3m+

turnoveru OECD Definition of “High-growth firms”u Productivity growth – firms who grow both in terms of jobs and

revenues but have a faster rate of growth in revenues

Strategic Imperative 6 –Innovationu Some really world class activity

does take placeu Absolute rates of business R&D

investment are mid range (albeitconcentrated in a few firms)

u Levels and rates of engagementwith formal knowledge transferand innovation programmes

u Our challenge is the small numberand relative isolation of “innovationactive” firms

u Cumbria’s ideas assets in termsof research institutions,research intensive firms andknowledge transfer facilitiesare thinly spread

u Strong on nuclear though andto a lesser degreeenvironmental

Strategic Imperative 7 –Infrastructure

Our geography ischallenging…importance of excellentdigital/mobileconnectivity……infrastructure toattract and retainpeople and businesses……new housing forgrowth and affordability

M6

A69

M6

Penrith

Keswick

Ambleside

Maryport

Silloth

Workington

Whitehaven

Barrow-in-Furness Ulverston

LancasterPreston

LiverpoolManchester

Leeds

TeessideYorkshire

NewcastleNorth East

Scotland

Carlisle

Carlisle LakeDistrict Airport

Cumbria

Rail Access

Port

Airport

Motorway

A roads

Kendal

Windermere

M6

M6

A66

A685

A65

A590

A66

A591

A595

A595

Potential Exposure to BrexitMost exposedsectors arefarming, tourismand foodmanufacturing……then exportfocusedmanufacturingsectors……then majorpeople employerssuch as heathsector

Strategic Policy Responseu Growing and using our talent pool.u Capitalising on our productivity, innovation and

enterprise potential.u Exploiting underdeveloped economic opportunities to

help get a better balanced economy.u Ensuring that all of our residents contribute by sharing

prosperity and opportunity.u Improving connectivity across the county.

Cumbria LIS PrioritiesPromotingCumbria

Innovationand Idea

People andSkills

Businessenvironment

Infrastructure Places

PC1: Develop Brand Cumbria toeffectively markets Cumbria’s enviableoffer

Id1: Anchor more R&Dactivity

Sk1: Make best use of available talent(amongst the workless and olderresidents)

BE1: Develop and nurture a strongerenterprise culture inCumbria

Inf1: Improve our digital connectivity Pl1: Address cold spots of worklessnessand social deprivation inCumbria

PC2: Develop soft landing packages forthose relocating toCumbria

Id2: Operate as the national testbed fornew ideas

Sk2: Develop and retain higher levelskills in our economy

BE2: Increase the rate of fast growingbusinesses in Cumbria

Inf2: Invest in road and rail to facilitategrowth and productivity

Pl2: Support local place shapingprogrammes

PC3: Promote Cumbria as the placewhere outdoor lifestyle meetstechnology businesses

Id3: Commercialiseour excellent innovation and ideas

Sk3: Create the futureworkforce and skills to meet the needsof our economy

BE3: Develop strong and productivesectors and networks

Inf3: Develop products andinterventions to increase housingdelivery

Pl3: Encourage housing whichis the right product at the right price inthe right place

PC4: Promote Cumbria as a greatlocation for inward investment

Id4: Develop the Innovative Cumbriaprogramme

Sk4: Develop our future leaders andmanagers

BE4: Enhance and exploit supply chainopportunities

Inf4: Support development of new sitesand premises in areas of demand

Pl4: Encourage and support bespokelocal area economic diversificationstrategies

Id5: Identify opportunities for innovationin “cleangrowth”

Sk5: Address worklessness and youthunemployment

BE5: Increase trade and new investment Inf5: Ensure the keyInfrastructure to support thedevelopment of a resilient and greeneconomy

Pl5: Work with public sector partners todeliver high quality public services

Note: actions contribute to several strategic objectives, so symbol denotes contribution to the relevant strategic objectives:• Growing and using our talent pool

• Capitalising on our productivity, innovation and enterprise potential• Ensuring all our residents contribute by sharing prosperity and opportunity

• Exploiting under-developed economic opportunities• Improving connectivity

Headline Targets

Improvingproductivity

levels inCumbria –

geographicallyand sectorally

DeliveringInclusiveGrowth –reducing

economicdisparities and

levels ofworkless families

Maintaining ourworkforce andattracting more

people ofworking age to

live here