HERTFORDSHIRE COUNTY COUNCIL

POLICY & RESOURCES CABINET PANEL

TUESDAY 14 JULY2009 AT 10.00AM

ECONOMIC DEVELOPMENT – UPDATE/PROGRESS

Report of the Director of Strategy and Partnerships

Author: David Hughes, Key Sites Manager

Tel: 01992 555210

Executive Member: David Lloyd

  1. Purpose of report

1.1To update Members on the work of the new economic partnership,Hertfordshire Works,the current state of the Hertfordshire economy and other related economic development issues.

  1. Summary

2.1From 1st April 2009, Hertfordshire Works, a new economic partnership for Hertfordshire replaced Hertfordshire Prosperity Ltd. At its first meeting, it established five topic groups and also agreed to develop a fresh vision and economic strategy for Hertfordshire be prepared. The work of the partnership is underpinned by data on the performance of the Hertfordshire economy and the latest figures show that unemployment in Hertfordshire continues to rise.

2.2A contract has been entered into with EEDA to deliver business engagement, economic intelligence and advocacy services in Hertfordshire and a bid has been made to the Government’s Future Jobs Fund for 200 new apprenticeships across the county. Work is taking place to build on the economic development and regeneration opportunities offered by the Olympic White Water Canoe facility in Broxbourne and further opportunities developed to build on Hertfordshire’s tourism offer.

3. Recommendations:

3.1The Panel is asked to:

  • note the current position with regard to economic development issues and receive regular briefing reports at future meetings of the Panel.

4.Hertfordshire Works – the new Economic Partnership for Hertfordshire

4.1While Hertfordshire has a strong and diverse economy and is seen by EEDA as the economic engine house of the region, it is now facing recession. Responding to the Government’s Sub-National Review, EEDA has withdrawn core funding from Hertfordshire Prosperity Ltd and this organisation ceased to exist from April 2009.

4.2Following extensive discussions with partners, consensus emerged that a new, more inclusive and stronger economic partnership was required that had a longterm vision for the future, clear action plans and the capacity to deliver services both strategically and locally. The new partnership, Hertfordshire Works, held its first meeting on 30th March 2009 and agreed terms of reference and governance arrangements and also to establish five topic groups.

4.3Herts Forward the countywide Strategic Partnership has recently allocated £4m Performance Reward Grant to Hertfordshire Works to support Hertfordshire residents, communities and business through the recession and put Hertfordshire in the best place for economic recovery. Appendix A sets out list of indicative projects.

4.4Hertfordshire Works is supported by an Officer Group and constitutes one of five partnerships reporting to Hertfordshire Forward. The new partnership has established its priorities for the year ahead and set up five topic groups to take forward the work:

Strategy and Economic Intelligence

This group, comprising the University of Hertfordshire, Exemplas, EEDA, Herts County Council and District Councils is responsible for developing a fresh vision and strategy for the future economic growth and prosperity of Hertfordshire. A workshop was held on 6th July with partners to begin the process. It is proposed to launch the strategy at the Herts Forward Conference in November.

Skills and Economic Participation

The first task of this group is to combine/streamline the various “skills” groups including the (former) Investing in Communities Steering Group, LAA Jobs, Prosperity and Skills Group, Herts Adult Learning Partnership, and also to integrate the 16-19 year old skills agenda. Partners include Herts County Council, Herts Chamber of Commerce and Industry, Learning and Skills Council, Connexions, Colleges of Further Education and the Voluntary Sector. This group is overseeing Herts County Council’s commitment to create 350 additional apprenticeships across the public and private sector – a direct response to the shortfall in places resulting from the recession. In addition the group has recently submitted a bid to the Government’s Future Jobs Fund to create 200 jobs for 19-24 year old long term unemployment over the next 18 months. Progress on the delivery of the 2009-10 Hertfordshire Economic Participation programme is the subject of a separate report to the Panel.

Recession Task Force

This group comprises representatives of Herts County Council, District Councils, Job Centre Plus and the Herts Chamber of Commerce and Industry (HCCI) and is led by Hertsmere Borough Council. It has responsibility for taking forward the ‘Hertfordshire Pledge’, a 20-point action plan through which public sector partners can support businesses and residents through the recession. Action on implementing the ‘Pledge’ is underway and the group is due to meet again in early July.

Herts Forward has recently allocated £480k to Citizens Advice Bureaux in Hertfordshire to increase specialist debt advisers in response to the demand on their services as a result of the recession. The Recession Task Force will monitor the contract.

Inward Investment and Business Support

The first meeting of this group took place in June. It is led by Herts County Council and comprises East of England International (EEI) Business Link, HCCI, commercial property agents and a number of District Councils. It will develop an Inward Investment and Business Retention Strategy including key sites, a land and property database and promotional material and data to market Hertfordshire as a location for new business. A jointly funded post has been created between HCC and East of England International and a dedicated Hertfordshire Inward Investment Manager will start in September. A steady stream of Inward Investment enquiries are now being referred to HCC and Districts by EEI.

Regular meetings have been established with HCCI and the firstCountywide Business Forum will meet in July. To support the development of Business/Employer Engagement, HCCI is developing a number of Business Advisory Groups across Hertfordshire. These groups will be chaired by a local business person and supported by an Area Director or other senior member of HCCI staff. Groups are in place covering North Herts, Stevenage, East Herts, Dacorum, St Albans and Welwyn Hatfield. Plans for additional groups are advancing well in Broxbourne and Hertsmere and the Watford and West Herts Chamber of Commerce have agreed to develop groups in Watford and ThreeRivers.

The County Council’s Strategic Procurement Group is working with HCCI, Business Link and the University of Hertfordshire to develop a series of workshops for SME’s to increase their success in securing a range of contracts and strengthen supply chains locally.

The County Council’s Trading Standards Unit already works closely with Business to support them through a range of regulatory requirements. Work is underway with Districts to provide a more ‘seamless’ inspection and enforcement process across tiers and ease the burden on business where possible.

Vibrant Towns

Led by Watford Borough Council this group is looking at initiatives to support local shopping parades during the recession, the longer term future of our Town Centres, and tourism. It comprises District Council Officers, a representative from Hertfordshire’s Town Centre Managers and it is hoped to involve representatives of retailers in due course.

5.Economic Intelligence

5.1The latest monthly bulletin is attached as Appendix B. Key points to note are:

  • Despite a recent gloomy forecast from the Bank of England, there are increasing signs that the recession might be coming to an end. Unemployment is, however, due to increase into 2010;
  • Nationally, the high street banks increased their lending to small businesses by £287 million in April;
  • The county’s claimant count increased again in May, but for three months running the increases have been decreasing;
  • The number of Jobcentre Plus live unfilled vacancies in the county increased in May but are 47% lower than a year ago;
  • Possibly due to the recession, participation in learning among the county’s 16-18 year-old group in May was higher than a year previously (82.7% as against 80.5%). Increases in the rates of young people not in employment, education or training are being most acutely felt by the 18 year-old group.

6. EEDA

6.1Regular meetings are now taking place with EEDA’s Relationship Manager and EEDA has nominated a representative to join the Hertfordshire Works Board. Hertfordshire has recently been awarded an EEDA contract worth £80,000 pa over two years to deliver business engagement, economic intelligence and advocacy services which will support existing economic development activity. In addition, EEDA has also discussed with HCC becoming a pilot authority for funding in 2010/12 to bring together European Social Fund and Economic Participation provision that could significantly increase resources for skills development in future.

7. Hertfordshire Forward Conference

7.1This will take place on 6th November at Fielder Centre and will focus on the Hertfordshire Economy. A two-part approach is proposed with an early morning Business Breakfast (organised by HCCI) specifically focusing on issues of interest to business. The main part of the conference will address the wider economic wellbeing agenda. HCC is working with East of England International and other partners to identify suitable speakers.

8.Olympics

8.1The key economic impact is the Broxbourne White Water Canoe Centre (WWCC) now under construction with completion scheduled for November 2010. The contractor is Morrisons Construction Ltd and the contract value is £30m. After the 2012 Games, it will be the responsibility of the Lea Valley Regional Park(LVRP) to put the facility into legacy mode at an estimated cost of £1.25m.

8.2A Stakeholder Group is in place to secure legacy benefits which will include jobs, skills, business development, and regeneration and also to identify construction opportunities – the LVRPA has identified 8 fulltime and 30 part time job opportunities. Broxbourne has in place a Waltham Cross Regeneration Group which has met once.The WWCC also offers job prospects and tourism potential from early 2011 when LVRPA will operate the facility on a public use basis.Hertfordshire has the highest signup for CompeteFor registrations in the region (businesses registering interest in Olympic-linked contracts).

9.Tourism

9.1The Great Places to Visit Guide has been printed and is being distributed through libraries, tourist information centres, other public venues, Travel Trade Shows and other events. The focus is on value for money in Hertfordshire and the guide contains money-saving vouchers.

9.2Following the skills audit for the tourism and hospitality sector in Hertfordshirecommissioned in 2008, several ‘Welcome to Excellence’ training courses will be offered in 2009. Negotiations are taking place with Elstree Film Heritage to support the development of an ‘A- Z of Film and TV in Hertfordshire’ brochure

9.3The 2009CountyShow included theEnjoy! Marquee, attracted over 7000 visitors and showcased local tourism and leisure opportunities.Approximately 50 partners took part including leisure attractions, hoteliers, restaurants, four Districts and Rhythms of the World.

9.4The Market Towns Guideis to bereprinted to encourage visitors to Hertfordshire’s towns to boost the local economy. This will support the work of the Vibrant Towns group.

9.5A new visitor attraction, FutureGardens has opened in Chiswell Green with twelve innovative competition gardens on display.

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