Agenda item

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

(ii)      Update on the work of the County Durham Economic Partnership –           presented by Professor Brian Tanner, Chairman, County Durham    Economic Partnership.

The Chairman thanked the Chairman of the County Durham Economic Partnership (CDEP), Professor Brian Tanner who was in attendance to give an update for Members in relation to the work of the CDEP (for copy see file of minutes).

The Chairman, CDEP reminded Members that the CDEP was not an executive body, and had a role of influence and coordination, working in partnership with others to help all move in the ‘same direction of travel’.  It was added that while there were still severe economic challenges, there had been signs of growth and the priorities of the CDEP remained the same; to work in partnership to improve our measure of success and achieve a 73% employment rate.  Members noted that this was one of five measures of success, all with 15 year targets (by 2030) and include: a GVA value of 87%; having 4,300 businesses; having a 103% household disposable income; and have an employment deprived index of deprivation reduction from 174 to 64.  It was noted that it was felt that the employment rate was making good progress and the GVA value was also well on track for the 2030 target.  It was added that the number of businesses had shown a 5.5% increase though there was still a way to go and that disposable income was also in the context of increasing costs of living and would be relative to the North East.  Councillors noted that the growth in the employment rate for County Durham was greater than the UK average.

The Chairman, CDEP explained that the CDEP looked to influence via several areas, including the North East Local Enterprise Partnership (NELEP); North East Combined Authority (NECA) and the North East European Structural Investment Fund (ESIF) Sub-Committee. 

Members noted that the CDEP supported higher value jobs by facilitating growth and enabling infrastructure, for example NETPark Phase 3, Explorer and Centre for Process Innovation (CPI), and Merchant Park Phase 2.

It was added that there was business and education engagement, for example via the Youth Employment Initiative (YEI), “Get the Buzz” and the successful Future Business Magnates (FBM) programme.  Councillors noted that the CDEP looked to maximise the economic impact of any events and worked in partnership to support people in accessing job opportunities.

The Chairman, CDEP noted that challenges ahead included having the right types of jobs to enable continued and sustainable growth, linked to job creation and infrastructure support and employability and access to employment.  Members noted other challenges included delivering an ESIF Durham EU Programme and match funding, and raising aspirations and changing perceptions.

The Chairman thanked the Chairman, CDEP and asked Members for their questions on the update.

Councillors asked questions in relation to: how much influence could be made on the GVA value; how partners would work strategically to improve the deprivation index value; whether the 2030 target of 4,300 businesses included those that may close in that time; how to retain those people with aspirations and skills within the County; any potential impact on EU funding as a result of the proposed referendum on Europe; any work to identify those self-employed and on zero-hour contract that are working “below subsistence”.

The Chairman, CDEP noted that influencing productivity was key, however the value of jobs was also important, noting in the past the jobs had shifted from mining and engineering to public sector and university, the latter not contributing to GVA.  The Head of Strategy, Programmes and Performance, Andy Palmer explained that the 5 measures had been developed in 2010 as a means of estimating “what success would look like” by 2030.  It was added that GVA and deprivation measures had been chosen to ensure “no-one was left behind”, though it was noted that resources as regards influencing change in Lower Super Output Areas (LSOAs) were now scarce, though there were some possibilities in terms of the new EU Funding Programme, including the YEI, noting the ending of the Working Neighbourhoods Fund (WNF) in 2010.  It was added that the main difference now was that the focus was on economic assistance, for example the Hitachi development, and to breed demand to then create new and real jobs.  Members noted that it was not just to create job opportunities, there was also a multifaceted approached in terms of helping individuals and families in deprived areas, looking to help remove any barriers to then allow those people to take advantage of new employment opportunities.  The Chairman, CDEP noted that there was a role for the voluntary sector in terms of social enterprises in helping to be part of the solution.

The Chairman, CDEP added that he felt transport links were a key issue in terms of linking to employment and linking companies to the rest of the country and wider world and that in terms of aspiration it was important to be able to match skills to the quality jobs we want for County Durham, and to therefore raise individuals’ aspirations so that they want to take on these types of job roles.  The Chairman noted that the NECA’s Overview and Scrutiny committee was looking at transport as a barrier to employment as a possible review topic.

The Chairman, CDEP added that in respect of any EU Referendum, then the CDEP and partners had to look at what was available now on the table in terms of EU funding, such as the ESF, noting a large amount was ring-fenced for County Durham as it was a transition region.  It was explained that should EU funding cease in the future, that would need to be dealt with accordingly, however, the current approach of working in partnership was working well and should continue.

Councillors noted that the Chairman, CDEP also wished to better understand the quality of the jobs in the County, working with JobCentre Plus, DCC and Housing Associations to try and better understand the situation.  Councillor N Foster noted there were good examples of high aspirations and quality jobs, for example the recent investment by Atom bank at Aykley Heads, and added that it was important to work with schools and colleges to let young people understand what opportunities there were and how to then access them.  The example of the FBM programme was given as a mechanism by which employers, teachers and schoolchildren learned the realities of work in the 21^st Century, noting it was often parents that had an outdated view of what job opportunities actually existed.  Councillor N Foster reiterated that it was important to let young people know that nothing was excluded in terms of what work was available to them and therefore to offer the right support to help steer them in the right direction.  Councillor E Tomlinson noted that the County Durham Housing Strategy was on hold, as it comprised part of the CDP, however, added that tackling deprivation and housing aspirations were issues being looked at.

Resolved:

That the update be noted.