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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 Steve Pitcher Chief Executive North Devon +
Introduction Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council
Devon & Cornwall Business CouncilBusiness Perspective Tom Jones Chairman
Economic Development Policy: Where we are? Pippa Ferguson Government Office for the South West 16 August 2010
What does LEP stand for? • Lancashire Evening Post • Large Electron Positron (Collider) • Local Enterprise Partnership • London Energy Partnership
What does LEP stand for? • Lancashire Evening Post • Large Electron Positron (Collider) • Local Enterprise Partnership • London Energy Partnership
Context – the changing landscape RDAs/ GOs Centralism Big Government Localism Localism Localism LEPs
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?
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
So – what do we know 2? • GOVERNANCE • Normally equal representation of: • Business • Civic leaders • Normally Business chair • But scope for variation
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
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
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?
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
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
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
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
LSPs SEPs Eco Towns Growth Points LIPs ERDF LESBs FEMAs LEAs EDCs URCs And what about Simplification?
Planning Housing Business Support Innovation Sector Development Transport Employment/ Worklessness Skills Culture/ Tourism Regeneration Trade Technology Strands Finance R&D So What Matters?
On the Economy On Whitehall policy On Funding And Lean And Intended? And what about Results?
Regen SW? Sustainability SW? SW Observatory? Science Parks/ Incubators? Knowledge Networks? SW Brussels Office? Primare? Wave Hub? Honey, I just….
The One Neutral Player? A Quarry for insights into key issues? A Focus for reflection of what might inadvertently be lost? RDA Role
Devon and the Peninsula – A Unique Economy Rob Hetherington Chief Economist Devon County Council
Anything but Average • National policy deals with national averages • Balances national priorities • Regional structures deal with regional averages • Compromises over regional issues
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
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
A Growing Population • 10 year growth rates – 7.6%; 5.3% UK • Over 65 growth rates – 11.8%; 8.9% UK
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
Peninsula Partnership Ian Harrison Deputy Executive Director of Environment, Economy & Culture Devon County Council
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
Partnership Objectives • Create the conditions for businesses to prosper • Capitalise upon the natural advantages of the area • Use our USP to best advantage
Common Needs • Improved infrastructure for community (transport, ICT) • Over dependence on public sector employment • Skilled workforce • Affordable housing
Opportunities • Shared appetite for growth • Track record on science and innovation • Low carbon, particularly marine renewables • Visitor economy • Experience of European funding
Partnership Governance • Business led board • Local government • Higher education • Local delivery framework
QuestionsConsultation – www.devon.gov.uk/lep Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council
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
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
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
Consultation Questions • What would you like to see a peninsula enterprise partnership achieve over the next 5 years?
Closing Remarks Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council