welcome to north devon steve pitcher chief executive north devon +
TRANSCRIPT
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Welcome to North Devon
Steve Pitcher
Chief Executive North Devon +
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Introduction
Councillor Will MumfordPortfolio Holder for Economic
Regeneration & Strategic PlanningDevon County Council
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Devon & Cornwall Business Council
Business Perspective
Tom Jones
Chairman
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Economic Development Policy: Where we are?
Pippa Ferguson
Government Office for the South West
16 August 2010
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What does LEP stand for?
A. Lancashire Evening Post
B. Large Electron Positron (Collider)
C. Local Enterprise Partnership
D. London Energy Partnership
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What does LEP stand for?
A. Lancashire Evening Post
B. Large Electron Positron (Collider)
C. Local Enterprise Partnership
D. London Energy Partnership
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Context – the changing landscape
RDAs/ GOsCentralismBig Government
Localism Localism Localism
LEPs
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But it’s not that straightforward
• RDA abolition is not just about “going local”
• Some things may be for “national leadership” instead:– Key Sectors
– Innovation
– Trade
– Inward investment
With sub-national delivery
mechanisms?
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So – what do we know 1?• ROLE for LEPs
– “Provide the strategic leadership in their areas to set out local priorities”
– “Create the right environment for business and growth”
– Tackle issues such as:• Planning and housing• Transport & infrastructure• Employment & enterprise
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So – what do we know 2?• GOVERNANCE
– Normally equal representation of:
• Business• Civic leaders
– Normally Business chair– But scope for variation
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So – what do we know 3?• SIZE & COVERAGE
– Generally – smaller than the English regions, but regional focus acceptable
– Generally – more than one upper tier authority
– Generally – linked to functional economic areas
– No presumption of 100% coverage
– Particular focus on economically vulnerable areas
– But all very loosely defined
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So – what do we know 4?• FUNDING
– Likely to be:• No core funding• Bids into funding pots
– Regional Growth Fund already announced:
• £1bn over 2011-12 and 2012-13• Focused on areas where business
employment and growth needs stimulation
• Not new money – likely to be drawn from regeneration, housing, business growth, transport, etc
– Anything else subject to CSR
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Back to the Future?Regional Growth Fund• Key focus:
– Private sector driving of growth and jobs
– Areas and communities dependent on public sector
• £1Bn over 2 years• Formula (e.g to LEPs) and or Bid
Funding and/ or Loans and Investment
• National Evaluation• 2 Traches:
– Ist Bidding by end of year, decisions to allow spend from April
• Consultation to 6 September– 5 Questions– 8 Criteria
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Timeline
2010 2011
June: Budget confirms RDAs to be abolished
September: Introduction of Public Bodies Reform Bill
April: Earliest feasible date for winding up RDAs
Summer: Public Bodies Reform Bill could be enactedJune: LEP communication issued
Oct?: White Paper on economic growth
September: Expressions of interest on LEPs due in; enabling legislation introduced if needed. Plus consultation responses on Growth Fund
April: Regional Growth Fund becomes available
End Year: First Tranche Bids submitted
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Tensions & balances 1
More hands on …
Economy still stuttering
Economic stakes are high
Anxiety that can not afford to leave local economies to chance
More hands off …
Localism, localism, localism
Leave it to local businesses and Local Authorities to decide whether
they want LEPs, what they should do and where they should be
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Tensions & balances 2
National realities …
RDAs are being abolished
A good bit of the funding will be clawed back by HMT …
… and some RDA functions may not sit well with very local delivery: Aerospace, Composites, Automotive
Local aspiration …
RDAs are being abolished
This is our chance to get RDA funding, staff …
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Tensions & balances 3
Functional economic areas …LEPs will be most effective if they make sense to local businesses for who administrative boundaries often seem irrelevant LEPs should be created around functional economic areas (& local authority boundaries do not equate to functional economic areas) LEPs should not follow local authority boundaries
Administrative boundaries …
Local authority boundaries already exist and already work for many
issues
LEPs should be created along local authority boundaries
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And what about Simplification?
• LSPs• SEPs• Eco Towns• Growth Points• LIPs• ERDF• LESBs• FEMAs• LEAs• EDCs• URCs
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So What Matters?• Planning• Housing• Business Support• Innovation• Sector Development• Transport• Employment/ Worklessness• Skills• Culture/ Tourism• Regeneration• Trade• Technology Strands• Finance• R&D
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And what about Results?
• On the Economy• On Whitehall policy• On Funding• And Lean• And Intended?
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Honey, I just….
• Regen SW?• Sustainability SW?• SW Observatory?• Science Parks/
Incubators?• Knowledge Networks?• SW Brussels Office?• Primare?• Wave Hub?
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RDA Role• The One Neutral
Player?• A Quarry for insights
into key issues?• A Focus for reflection
of what might inadvertently be lost?
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Devon and the Peninsula – A Unique Economy
Rob Hetherington
Chief Economist
Devon County Council
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Anything but Average
• National policy deals with national averages
– Balances national priorities
• Regional structures deal with regional averages
– Compromises over regional issues
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Devon Stands Out• Four times more agricultural activity
• Over one third of employees work part time
• A quarter of all business below the VAT threshold
• One third less employment in the finance sector
• Twice as many tourism businesses
• One third of all employment is in the public sector
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Common Threads
• Characteristics shared across the peninsula
• Over 53 thousand commuters
• Around 10 Million visitors each year
• Home to almost 50 thousand students
• HQ functions
• Broadband connectivity
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Productivity
Cornwall£33,100
Plymouth£36,700
Torbay£33,000
Dorset£38,300
Somerset£38,000
Devon£35,700
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A Growing Population
• 10 year growth rates – 7.6%; 5.3% UK• Over 65 growth rates – 11.8%; 8.9% UK
Proportion of population over 65 years old - 2008
0
5
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20
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Torba
y
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tal
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Standing Together
• A population of over 1.5 million• Around 700 thousand workers• £24 Billion output • Around 10 Million visitors each year• Over 70 thousand businesses• 23% of people work in a large company
(over 30% nationally)• Over 26% work in firm of less than 10
employees (less than 21% nationally)• Strong learning and research base
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The Peninsula
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Peninsula Partnership
Ian HarrisonDeputy Executive Director of
Environment, Economy & CultureDevon County Council
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Principles for Partnership
• Giving business a real influence on strategy
• Adopting a common strategic approach across the whole area
• Putting delivery at the lowest possible level (subsidiarity)
• Avoiding creation of bureaucracy
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Partnership Objectives
• Create the conditions for businesses to prosper
• Capitalise upon the natural advantages of the area
• Use our USP to best advantage
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Common Needs
• Improved infrastructure for community (transport, ICT)
• Over dependence on public sector employment
• Skilled workforce
• Affordable housing
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Opportunities
• Shared appetite for growth
• Track record on science and innovation
• Low carbon, particularly marine renewables
• Visitor economy
• Experience of European funding
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Partnership Governance
• Business led board
• Local government
• Higher education
• Local delivery framework
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QuestionsConsultation –
www.devon.gov.uk/lep Councillor Will Mumford
Portfolio Holder for Economic Regeneration & Strategic Planning
Devon County Council
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Consultation QuestionsWhich of these functions do you think need tackling at a local level, peninsula level, or national level: Local level Peninsula Level National level
• Enterprise and business support • Employment • Skills development • Research and analysis • Agreeing local growth priorities • Sector development • Coordinate local funding • Inward Investment • Marketing and Promotion • Planning (development control) • Local economic infrastructure (e.g. strategic transport) • Housing • Broadband access • Supporting the marine industries • Support for the tourism Industry • Transition to low carbon economy • Representation at national level
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Consultation Questions
Do you think it appropriate that Devon County Council works on enterprise partnership issues with our neighbours?
Yes, many issues need a wider collaborative approach
No, Devon County Council should only tackle issues within Devon
No, growth must be driven at a national level
Not sure
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Consultation Questions
Which of the following statements do you agree with? The enterprise partnership should be:
A mix of business people and the public sector
Democratically accountable through the local authority
Limited in its public sector role
Only run by the private sector
Not sure
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Consultation Questions
• What would you like to see a peninsula enterprise partnership achieve over the next 5 years?
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Closing Remarks
Councillor Will Mumford
Portfolio Holder for Economic Regeneration & Strategic Planning
Devon County Council