scrutiny management board special...
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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