Agenda item

(i)         Joint Report of the Assistant Chief Executive and Corporate Director of          Regeneration and Economic Development

(ii)        Update on the work of the County Durham Economic Partnership – presented by Sue Parkinson, Vice-Chair, County Durham Economic Partnership

The Chairman introduced the Vice-Chair of the County Durham Economic Partnership (CDEP), Sue Parkinson who was in attendance to speak to Members in relation to the work of the CDEP (for copy see file of minutes).

The Vice-Chair, CDEP thanked Members for the opportunity to speak to Committee and referred to the broader economic picture, noting the national economy having a Gross Domestic Product (GDP) growth of only 0.5% on average since 2010.  It was explained that the Government approach was to rebalance the economy with a reduction in public sector jobs and an increase in private sector jobs, with headline figures nationally being 1.25 million private sector jobs having been created, and 1 Million public sector jobs being cut.  The Committee were informed that in many cases the private sector jobs replacing those lost in the public sector were not equivalent in terms of either pay, hours, conditions (such as flexible working) or all three and also that the replacement private sector jobs were not equally spread across the country.  Councillors noted that whilst there had been a recent and welcome reduction in the number of JSA claimants 18-24, the total number of JSA claimants for County Durham had increased by around 65% since April 2006.  The Vice-Chair, CDEP explained that the numbers of people in receipt of JSA for 1 year or more had increased and that around a third of the working age population was not in work. 

Members were informed that there were labour cuts of around 10% since 2009 and this, in conjunction with Welfare Reform changes, meant an average reduction of £550 per working age adult per year, money that would not be available for the local economy. 

In relation to partners, the Vice-Chair, CDEP noted that the voluntary and community sector (VCS) constituted a substantial part of the economy, with 77% of those reporting increases in the number of beneficiaries of their services, with peoples’ ability to cope deteriorating.  The Committee noted that there had been considerable changes in the retail sector with many high street shops having closed due to out of town facilities or in some cases a larger collapse of a company.  It was added that a reduction in the contracts available via public sector procurement was also having an effect and local small businesses, such as butchers and newsagents, had noted a decrease in their takings.

The Vice-Chair, CDEP did note however that there were several areas that presented delivery opportunities:

·        Sign up by the CDEP to the DCC Regeneration Statement and Policy Setting, vibrant Durham City, vibrant and successful towns, competitive and successful people, sustainable neighbourhoods and rural communities and a top location for business.

·        Local Enterprise Partnerships (LEPs).

·        European Funding, with Government support in the form of the Heseltine Review and noting the new funding round (NUTS II), with £450 million being available over the next few years, Durham having been designated with a Transitional status, enabling additional funding support.

·        Less match funding, there would be a need to be flexible and focused to maximise opportunities for business and infrastructure.

·        Joint Working, Targeted Recruitment and Training (TRT), looking to have investment within the County on goods and services accessed by the Authority.

·        Social Enterprises, such as Social Housing Enterprise Durham (SHED), helping to provide work for the long term unemployed while transforming the local area.

·        Tourism and Culture, the visitor economy being worth around £740 Million annually for County Durham, with a growing programme of events, the Miners’ Gala, Durham Regatta, Lumiere, Lindisfarne Gospels, Brass Festival, Book Festival and Bishop Auckland Food Festival, noting that there was also value to the economy in the supply chain, another opportunity to source locally.

·        Durham Business Improvement District (BID), the logo designed by a local “cultural business”.

·        Rural perspective, with the Rural Growth Fund providing funding for a pilot scheme for rural County Durham, Gateshead and Northumberland supporting rural areas by creating 53 enterprise units, aiming for 300 jobs by March 2015.

The Chairman thanked the Vice-Chair, CDEP and noted the challenges faced by all those working in partnership, to maximise the opportunities to help improve the economy in County Durham.  Members noted that as many of them were new to the Committee, there may be value in having a session giving further information as regards the makeup and the mechanics/dynamics of the CDEP.

Resolved:

(i)         That the report be noted.

(ii)        That as part of the refresh of the work programme for the Economy and Enterprise Overview and Scrutiny Committee an overview on the County Durham Economic Partnership is provided at a future meeting.