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Economic Development Office Service PlanPage 1

TABLE OF CONTENTS

Introduction

1.Summary

2.Strategic Context

3.Economic Challenges

4.Review Of 2008/2009

5.Forward Programme 2009/2010

6.Working with Partners

7.Support and Resources

8.Conclusions

Annex 1: Summary Budget

Annex 2: The EDO Team

Introduction

The Economic Development Office (EDO) is a service of Hampshire County Council, funded in part by the Council’s mainstream revenue budget and in part from other external sources.

Its mission is:-

“Working for a successful economy in Hampshire”.

The Office is led by the Head of Economic Development. The EDO works with and across Departments and Services of the Council to fulfil corporate aims forthe economy. Partnership is essential in everything the EDO does as Hampshire’s economy is very large and faces many challenges. The EDO Team is relatively small and can only have significant impact through the influence which can be brought to bear on other organisations and agencies. Key organisations for the work of the Office are PUSH, the proposed north Hampshire Economic Board, the Regional Development Agency (SEEDA) and the Hampshire Economic Partnership.

As well as developing economic policy and responding to policy proposals, the EDO runs a series of programmes and projects, aimed at addressing economic weaknesses or to give further impetus to positive market trends. These are set out in the pages which follow together with targets and approximate budgets.

The policy framework and budgets are ultimately set by the Cabinet of the Council, where the Executive Member for Economic Development, Councillor Glen, has the lead role for all economic issues.

The annual Service Plan provides both the framework for the work of the Team, setting defined targets and outcomes, and a guide to other interested stakeholders as to the policy priorities for each year. Actions are based on in-depth research and information on the needs of the local economy.

The general economic situation of the County has deteriorated substantially in the past 12 months, as the credit crunch and recession have affected most sectors of activity. The EDO has the lead role for the Council in responding to the recession and has been provided with additional resources to initiate a number of projects designed to help business and alleviate the impacts on business and communities. Work continues with the Hampshire Senate to deliver Local Area Agreements on skills and employment though the target for generating more employment has had to be substantially reduced to reflect economic realities. We have also have a significant role to play in the rural and sustainability agendas.

The County Council is committed in its Corporate Improvement Plans, to improving well-being through sustainable development and ensuring that resources are also targeted at areas of greatest need. The EDO, as the only service exclusively dedicated to Hampshire’s economic interests, has a key role to play in delivering these aims and assisting post recession recovery.

John Rees-EvansCllr Jonathan Glen

Head of Economic DevelopmentExecutive Member for Economic Development

1.Summary

This Service Plan gives a review of the wide range of work undertaken by the Economic Development Office in 2008/09 and its programme of action for 2009/10 in order to meet the challenges faced by Hampshire’s economy. Specifically, the plan aims to:

  • Offer a brief introduction to the EDO and its services
  • Outline the strategic context and the drivers for change
  • Give a review of actions carried out in 2008/09
  • Set out our vision
  • Summarise the proposed actions and programmes for 2009/10
  • Outline the budget and resources

The work of the EDO is set out under 6 headings, and these are used consistently throughout this document. The headings are:

  • Economic Policy
  • Rural Economy
  • Business Development, Sector Support and Marketing
  • Employment, Skills and Community
  • Support and Resources

Within each heading, there are described a number of projects which contribute to the delivery of the overall targets for the Office. These are linked into the “Individual Performance Plans” (IPP) of each member of the Team and the budgeted resources. Budgets are allocated on the basis of these priority areas and professional staff work to the objectives set out in the programmes.

2.Strategic Context

2.1New legislation – the Local Democracy, Economic Development and Construction Bill

The new Bill is expected to receive the Royal Assent in early Autumn and will give Local Authorities a much stronger role in supporting their local economies. +The Bill proposes a new partnership between regional development agencies and Loc al Authorities and the development of one Regional Plan covering spatial planning, transport and the economy. It will also for the first time impose a statutory duty on upper tier Authorities (Unitary Councils and County Councilsto undertaken an annual economic assessment of their areas. The EDO is leading a partnership in Hampshire to start work on this Duty in advance of the government guidance being issued.

2.2Hampshire Senate

The Local Authorities in Hampshire have joined with other major public sector organisations (police, fire, health) to seek better and more effective collaboration across boundaries. In addition a Senate Economic Board has been established to lead action in response to the recession. The EDO has had the lead supporting role in this work and has produced comprehensive information on the Local Authority initiatives both for businesses and for communities through publications and the EDO website. The EDO has also contributed specific new initiatives such as support for the retail sector, smarter working centres, apprenticeships and volunteering.

2.5HampshireCounty Council - Corporate Improvement Plan

The Council is currently reviewing its approach to economic development and the conclusions will be implemented this year. However, it is clear that the future of the Hampshire economy will continue to be very high in the Council’s agenda and the need to work to reduce some of the economic disparities which often get even worse in recessionary times. It will also be important to position the significant resources of the Council so as to have maximum influence on the changing partnership and policy landscape. Hampshire County Council’s corporate priorities are:

  • Hampshire safer and more secure for all
  • Maximising wellbeing
  • Enhancing our quality of place

Whilst the EDO’s key focus is on ‘maximising wellbeing’, the Office also makes significant contributions to other corporate priorities, such as reduction of CO2 emissions from business, and waste recycling/reduction particularly in the construction industry. The Office also leads on developing the skills of the workforce, reducing economic inactivity, promoting local suppliers and supporting market towns. It has played a significant role in the development of the Council’s new Rural Delivery Strategy.

3.Economic Challenges

An assessment of some of the trends and factors which influence strategy and policy in developing economic development initiatives.

  • Clearly the key challenge at present is the impact of the recession on jobs and investment. The Council has made provision for a variety of initiatives to try to help both businesses and communities, and the EDO is developing these projects. Unemployment which has reached nearly 20000 in the County area is nevertheless set to grow for at least another 12minths after we move back into positive growth.
  • globalisation and low labour cost areas will continue to attract manufacturing investment away from Hampshire. Our strategy must be to focus on areas of high capital investment such as advanced manufacturing and the knowledge economy. This suggests the need for supporting spin out businesses from Universities and working closely with the whole Higher Education sector to promote innovation.
  • With the transfer of significant areas of funding from the Learning and Skills Council in 2010/2011 the Council will take on an even more important role in the ‘skills agenda’ which is regarded as the highest economic priority. We will work closely with the new Skills Funding Agency and the National Apprenticeship Service. A particular challenge will be matching FE and HE supply with demand as numbers increase. The recent cuts in Learning and Skills Council funding for capital and revenue expenditure programmes may only be a foretaste of what is to come. The Council is planning to set up a Skills Board to oversee work in this area..
  • The growth agenda is very important if the County is to maintain its competitiveness and attract new investment as we move out of recession. However, with the severe crisis which has hit the development industry and the state of public finances it is unlikely that the old method of funding the necessary infrastructure (S106/278 and public subsidy) will continue to work. We will have to develop new business models such as ‘tax incremental funding’ (TIF) and the south Hampshire area will be putting forward a bid to pilot this approach.
  • rural parts of Hampshire are going through major economic and social change, with the restructuring of the CAP, pressure from supermarkets on farm-gate prices and loss of services to rural areas e. g. closure of village post offices and reduced transport services. The vitality of small rural towns, and indeed also medium-sized towns, is under threat due to the current economic downturn and also from large out of town centres and the continued growth in internet shopping. The EDO is leading a county-wide initiative to help these small service centres. The development of a County Council ‘Rural Delivery Strategy will also help, and the EDO will have a very significant role to play in this.
  • urban south Hampshire has significant pockets of deprivation and, as an area, is underperforming relative to the rest of the region in terms of economic output and productivity (this has been a key factor in the setting up of the Partnership for Urban South Hampshire – PUSH). The EDO will lead corporate work on this with the development of a ‘framework strategy’ to address economic inequalities in the County.
  • there are many people seeking work and often lacking basic skills; there are also large numbers of people with health conditions and disabilities who would also like to be in a job (e.g. there are approximately 25,000 people on Incapacity Benefit, including the Cities). There are also approx 34000 people wanting a job – the Hampshire Employment and Skills Strategy (which EDO has led) is designed to tackle this challenge.
  • ICT and the effective use of broadband technologies are essential contributors to the competitiveness of both rural and urban industry. The EDO has developed a specific project to address this issue, working with its partners in “e-Hampshire”. Work is underway to promote the use of ICT and the provision of the latest and most advanced broadband technologies. The Partnership also has initiatives designed to help areas with a slow service which can hamper the growing nos. of self-employed and homeworkers.
  • Climate Change presents opportunities as ell as threats. The County is seeking to attract investment in the new ‘environmental technologies’. There is also continuing pressure on our environment from increasing volumes of domestic and commercial waste. The Sustainable Business Partnership, which is hosted by the EDO will have a key role to play in this work.

4.Review Of 2008/09

4.1.‘Headline’ Statistics

647 Hampshire Ambassadors visited 15 key Hampshire businesses in 2008

59 Events organised by the Economic Development Office

Over 86,000 visitors attended events during the 2008 Hampshire Food Festival, spending an estimated £2.45m. An estimated £64K media coverage was generated.

The number of queries the External Funding Unit has dealt with in the last year has increased from over 200 in 2007/08 to over 370.

Hampshire County Council secured over £7.5million from external sources in 2008/09.

The Hampshire Market Town Project successfully secured an additional £230K of additional funding for much needed improvements to keep shoppers using the town centre in Alresford.

This contributed to a total spend of at least£1.06 million over 3 years for projects in Whitehill/Bordon, Alton, New Milton, Whitchurch, Stockbridge and Alresford, with a further £1M to follow.

The Economic Development Office answered over 2000 business enquiries

eHampshire provided 400 Companies with grants to connect to Broadband for the first time and delivered advice on ICT to over 500 businesses. The ADSL network of telephone exchanges was completed in Hampshire with grant aid supporting the enablement of Martin Cross, Privett, and Hatherden.

The Sustainable Business Partnership generated more than 200 sustainable business actions in the final quarter, and dealt with over 400 enquiries from businesses and support organisations.

Conference Hampshire issued 12 e-bulletins sent to 10,000 businesses.

Film Hampshire serviced over 100 enquiries about filming in Hampshire

Hampshire Fare now actively supporting over 200 food & drink businesses in Hampshire.

12 Village Shops were supported with grants totalling over £171,878, matched by over £236,754 additional investment

4.2Key highlights of 2008/09

The MATISSE teleworking pilot project was successfully completed - over 87% of participants reporting increased productivity and reduced commuting costs

Thenew Village Community Grant Scheme was launched to help offset the loss of Post Offices in Hampshire – funds totalling £400,000 were secured to fund grants to village shops.

Over 100 delegates attended the Economic Development Office presentation on the

impact of the recession and future economic outlook to business representatives in Feb 2009

Over 140 delegates attended the annual e-Hampshire conference in Winchester which promoted the use of technology (the three-screen-world) and smarter working practices

The Sustainable Business Partnership launched a new Construction Network which generated a significant amount of local and regional interest.

Hampshire Fare launched its new Membership Scheme in February 2007, with the first two Corporate Partners of Fullers PLC and Vitacress Ltd and its first Corporate Friend the National Trust

Film Hampshire organised its first familiarisation trip to Hampshire for Film Location Managers.

Conference Hampshire celebrated its 5 year anniversary and recruited its 250th venue.

A new Partnership was established to increase economic activity in the County and develop an ‘Employment Strategy ‘ for Hampshire

Completed site assessment study of all employment sites in Hampshire over ½ hectare

The External Funding Unit launched its Hampshire-wide funding website.

Nine successful projects benefitting their local economies were commended in the national Action for Market Towns Awards, with a Hampshire project topping the South-East Regional Awards.

Hampshire Fare and Hampshire County Council County Supplies won the national “Good Egg” for introducing 600,000 New ForestFreeRange eggs into schools and care homes.

5.Forward Programme 2009/10

5.1Priorityareas of work

Four key priority areas have been identified for the 09/10 work programme.

5.1.1Economic Policy: overall net revenue expenditure = £456K

The environment in which business operates is critical for growth and success. The EDO will work with its partners to influence the development of policies which meet the needs of the Hampshire economy. This includes working with SEEDA, the Hampshire Local Area Agreement, particularly on the economic ‘block’, and with PUSH.Other areas of focus are land provision, rural change and European working. The Office continues to lead, corporately, on the development of external funding. Underpinning all our work is a strong research and analytical base.

5.1.2Rural Economy: overall expenditure = £48K

The EDOwill continue to play an important role in supporting the economy in rural areas. the Economic Development Office is leading the Rural Economy and Skills Action Plan of the new HampshireCounty Council Rural Delivery Strategy. We will continue to encourage the development of the local food supply chain , and in particular local food and drink producers, as our rural areas move towards a more market-driven economy. We will also continue to lead the regeneration of our market towns and villages, through the Hampshire Market Town Programme and the Village Community Grant Scheme. Skills and employment in rural areas is another key area of focus, and we will be working with partners such as Lantra help develop a highly skilled workforce and reduce skills gaps in rural industries.

5.1.3Business Development, Sectors and Marketing overall expenditure = £165K

Business investment is the foundation of our economy and the County Council has a significant direct and indirect impact. Working with our partners including business support agencies and other local Authorities, we will continue to support the increased and effective use of ICT (eHampshire), increased business sustainability through the Sustainable Business Partnership, the established business partnerships of the Segensworth and WinchesterBusiness Improvement Districts, and other business partnerships in Winchester and Basingstoke. We will continue to support the tourism and leisure markets through our specialist marketing campaigns Conference Hampshire and Film Hampshire).Our information to business (e.g. Business Directory) will be enhanced this year through the development of the County’s Business Portal, and continuing encouragement and recognition of business success through our sponsorship of local Business Awards and attendance at business exhibitions.

5.1.4Community, Employment and Skills: overall expenditure = £141K

The EDO leads on the Local Area Agreement Employment and Skills targets, and this continues to be a main focus for 09/10. We will be revising the Employment and Skills Strategy and working with partners to develop a range of actions. Internally, we will work with Human Resources on a range of measures impacting on recruitment and retention policies, including a corporate approach to apprenticeships and delivery of the Public Sector Skills Challenge. We will also be working with other public and private sector employers to promote best practice.