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Welcome to North Devon

Welcome to North Devon. Steve Pitcher Chief Executive North Devon +. Introduction. Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council. Devon & Cornwall Business Council Business Perspective. Tom Jones Chairman.

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Welcome to North Devon

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  1. Welcome to North Devon Steve Pitcher Chief Executive North Devon +

  2. Introduction Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council

  3. Devon & Cornwall Business CouncilBusiness Perspective Tom Jones Chairman

  4. Economic Development Policy: Where we are? Pippa Ferguson Government Office for the South West 16 August 2010

  5. What does LEP stand for? • Lancashire Evening Post • Large Electron Positron (Collider) • Local Enterprise Partnership • London Energy Partnership

  6. What does LEP stand for? • Lancashire Evening Post • Large Electron Positron (Collider) • Local Enterprise Partnership • London Energy Partnership

  7. Context – the changing landscape RDAs/ GOs Centralism Big Government Localism Localism Localism LEPs

  8. RDA abolition is not just about “going local” Some things may be for “national leadership” instead: Key Sectors Innovation Trade Inward investment But it’s not that straightforward With sub-national delivery mechanisms?

  9. 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

  10. So – what do we know 2? • GOVERNANCE • Normally equal representation of: • Business • Civic leaders • Normally Business chair • But scope for variation

  11. 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

  12. 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

  13. 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 Back to the Future?

  14. 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 enacted June: 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 End Year: First Tranche Bids submitted April: Regional Growth Fund becomes available

  15. Tensions & balances 1 • 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 • More hands on … • Economy still stuttering •  Economic stakes are high • Anxiety that can not afford to leave local economies to chance

  16. Tensions & balances 2 • Local aspiration … • RDAs are being abolished  This is our chance to get RDA funding, staff … 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

  17. Tensions & balances 3 • Administrative boundaries … • Local authority boundaries already exist and already work for many issues  LEPs should be created along local authority boundaries 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

  18. LSPs SEPs Eco Towns Growth Points LIPs ERDF LESBs FEMAs LEAs EDCs URCs And what about Simplification?

  19. Planning Housing Business Support Innovation Sector Development Transport Employment/ Worklessness Skills Culture/ Tourism Regeneration Trade Technology Strands Finance R&D So What Matters?

  20. On the Economy On Whitehall policy On Funding And Lean And Intended? And what about Results?

  21. Regen SW? Sustainability SW? SW Observatory? Science Parks/ Incubators? Knowledge Networks? SW Brussels Office? Primare? Wave Hub? Honey, I just….

  22. The One Neutral Player? A Quarry for insights into key issues? A Focus for reflection of what might inadvertently be lost? RDA Role

  23. Devon and the Peninsula – A Unique Economy Rob Hetherington Chief Economist Devon County Council

  24. Anything but Average • National policy deals with national averages • Balances national priorities • Regional structures deal with regional averages • Compromises over regional issues

  25. 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

  26. 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

  27. Productivity

  28. A Growing Population • 10 year growth rates – 7.6%; 5.3% UK • Over 65 growth rates – 11.8%; 8.9% UK

  29. 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

  30. The Peninsula

  31. Peninsula Partnership Ian Harrison Deputy Executive Director of Environment, Economy & Culture Devon County Council

  32. 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

  33. Partnership Objectives • Create the conditions for businesses to prosper • Capitalise upon the natural advantages of the area • Use our USP to best advantage

  34. Common Needs • Improved infrastructure for community (transport, ICT) • Over dependence on public sector employment • Skilled workforce • Affordable housing

  35. Opportunities • Shared appetite for growth • Track record on science and innovation • Low carbon, particularly marine renewables • Visitor economy • Experience of European funding

  36. Partnership Governance • Business led board • Local government • Higher education • Local delivery framework

  37. QuestionsConsultation – www.devon.gov.uk/lep Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council

  38. Consultation Questions Which 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

  39. 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

  40. 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

  41. Consultation Questions • What would you like to see a peninsula enterprise partnership achieve over the next 5 years?

  42. Closing Remarks Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council

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