C&W LEP Board 31st March - A1 8 Annex 2

LEP Strategy Committee

MINUTES

Friday 5th February 2016, 2pm, LEP Office, Richmond House

Present:

Robert Davis (Chair)Pete WatermanPhilip Cox

Louise MorrisseyAndy HulmeCharlie Seward

Andy FarrallMartin Forbes*

Apologies:

Caroline SimpsonRobert MeeNigel Schofield

Presenting:

Zoe Davidson & Anthony Shum (KPMG) – Agenda Item 3 only

*Agenda Item 7 only

Agenda Item 1: Welcome, Introductions and Apologies

Robert Davis welcomed members to the meeting along with Zoe Davidson and Anthony Shum of KPMG.Apologies were received fromCaroline Simpson, Robert Mee and Nigel Schofield.

Agenda Item 2: Declarations of Interest

Robert Davis (EA Technology) declared an interest in Agenda Item 6.

Agenda Item 3: Presentation – Quality of Place Study

Zoe Davidson and Anthony Shum of KPMG gave a presentation outlining the draft findings and emerging messages from the LEP-funded Quality of Place Study.

The brief for the study was to establish the extent to which quality of place is a factor the sub-region’s economic success.

KPMG has undertaken a mix of desktop research, workshops, surveys and 1-2-1 stakeholder consultations as part of the process. Amongst the key findings in the study are: -

  • The population and workforce is ageing. The sub-region (with the possible exception of Warrington) has been less successful than other areas in attracting or retaining those in the 29 – 44 age group. Young people entering the workforce are also generally less well-qualified. This combination could impact on productivity and GVA as well as increase demand on public services.
  • Our productivity advantage over other places is declining
  • Good physical and digital infrastructure is important in creating successful places – making access to employment as easy as possible.
  • It is difficult to create a cohesive identity for a sub-region like Cheshire and Warrington – so possibly focus on distinct areas within it.
  • It is important to learn from what other successful places have done to attract ‘talent’ – reference was made to the KPMG “Magnet Cities” research and the extent to which the findings could be applied to a non-city area

KPMG noted that a number of their stakeholder interviews were still to be completed. Initial conclusions were that quality of place can play a significant role in the success of an area in that without a good quality of place (including good schools, good quality of blue and green infrastructure and built environment, good cultural offer) it makes it harder to compete regionally, nationally and globally to attract and retain talent.

Following completion of business conversations KPMG plan to issue the draft report, including recommendations on potential interventions by the LEP, by the end of February.

Agenda Item 4: Minutes, Actions and Matters Arising.

Minutes of the meeting held on 16th November 2015 were approved. All actions were either completed or covered by the Agenda.

Matters Arising:

There were no matters arising.

Agenda Item 5:Transport for The North Independent Economic Review

Andy Hulme updated on the work of the Northern Independent Economic Review (IER). In particular the study has identified a number of pan-northern sector strengths which could provide a foundation for economic growth and where the north has a potential competitive advantage. These align very well with the key sector strengths identified with Cheshire and Warrington.

One of the IER workstreams is focussed on productivity and this had highlighted again the sustained fall in Cheshire and Warrington’s productivity premium over other places.

Agenda Item 6: Strategy Work Programme

Andy Hulme updated the Committee on the Strategy Work Programme. It was confirmed that work to refresh the Strategic Economic Plan (SEP) would progress once the outcome of the current Devolution discussions with Government were known.

The long list of options and the ‘provocation’ piece developed by SQW as part of the Atlantic Gateway Science and Innovation Study was discussed. There were some reservations as to how the options had been generated and what exactly was being asked of LEPs.

Action: Andy Hulme to feed comments back to SQW / Study Steering Group.

The full draft of the Energy Study has now been received from Mickledore. Robert Davis provided feedback from the presentation given by Mickledore to the members of the Cheshire Energy Hub. This included concerns that the report had not fully captured the views of major energy users.

The importance of properly reflecting (in the revised SEP) the economic growth potential of the energy sub-sectors highlighted within the study was discussed.

Robert Davis updated the Committee on the revised proposals from the Cheshire Energy Hub to create a ‘low cost energy zone’ within Cheshire and Warrington. It was noted that in excess of £1 billion per year is spent on energy in the sub-region and as such is a major cost to industry.

Action: Andy Hulme to circulate the draft Mickledore Report to Stratgey Committee

Agenda Item 7:Growing Places Fund

Martin Forbes (Local Partnerships) joined the meeting to present this item.

Philip Cox updated on the two current applications for GPF. It was noted that the Warrington Collegiate application is now unlikely to progress.

The appointment of GVA Financial Consulting to act on the LEP’s behalf to conclude negotiations on the Cheshire Green proposals were discussed and agreed. The Committee approved the recommendation to delegate authority to the LEP Chief Executive to agree suitable terms with GVA.

Martin Forbes confirmed that the ex-Ante evaluation of the Evergreen Fund is underway. This will provide evidence of the potential need for continued support through Evergreen II.

An outline proposal from The North West Fund for short-term usage of up to £4 million of GPF to invest directly in Cheshire and Warrington SMEs (as follow-on funding) was discussed. The Committee approved the recommendation that this proposal be considered in more detail.

The Committee gave in-principle support to an Expression of Interest for usage of GPF as match funding in the creation of a low carbon investment fund. This would be subject to the successful outcome of an ongoing ERDF application. The importance of continuing to have an open and transparent process for assessing GPF applications (within the constraints of normal commercial confidentiality) was re-stated by the Committee.

The likely future deployment of GPF as part of the proposed sub-regional Housing Employment and Investment Fund was discussed. The Committee was generally supportive of this principle although it was acknowledged that it could be some time before the HEIF is fully operational. It was agreed that short term uses for the GPF allocation should still be considered although no investments should be made until detail of the likely timescales for establishing the HEIF (and inputting GFP to it) are known.

Agenda Item 8: Any Other Business

Robert Davis and Pete Waterman raised the question of free Wi-Fi in our main town centres. This had been discussed previously by the Committee. It was agreed that Connecting Cheshire would be invited to a future Strategy Committee to update on their programme and discuss options around Wi-Fi provision.

Action: Connecting Cheshire Programme to be included as a future agenda item

Andy Farrall provided an update on the technical meeting held with DCLG and BIS officials regarding the Devolution proposals. The session had focussed on whether our policy proposals were clear and understood, and feedback following the session had been very positive. The Local Authorities and LEP were now seeking early engagement with the Leaders, LEP Chair and Ministers.

Agenda Item 9:Date, Time and Venue of next meeting.

Friday 11th March 2016, 9.00am – 11.00am, LEP Offices, Richmond House.

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