Agenda item

Joint Report of the Assistant Chief Executive and Corporate Director of Regeneration and Economic Development – presented by the Head of Strategy, Programmes and Performance, Regeneration and Economic Development.

The Committee considered the joint report of the Assistant Chief Executive and Corporate Director, Regeneration and Economic Development which provided members with an update on the progress made in relation to the recommendations contained within the Economy and Enterprise Overview and Scrutiny Committee Member’s Reference Group report looking at the impact of public sector funding and policy changes on the economy of County Durham (for copy of report, see file of minutes).

Mr A Palmer, Head of Strategy, Programmes and Performance was in attendance to present the report.

Councillor Davinson referred to the 2015 Indices of Deprivation which revealed that 150 County Durham LSOAs are ranked in the top 20% most deprived on the Employment Domain and sought clarification of how many were ranked in the top 10%.

The Officer responded that funding was usually by the top 20 or 30%. If the employment rate was increased then he would expect those LSOA’s in the top 10% of most deprived to move to the top of the 20% most deprived.

Councillor Adam sought clarification if the increase in disposable income was correct. The Officer confirmed that this was correct as there had been an increase in salaries and pay and an increase in the numbers in work particularly young people and those in part-time work.

The Chairman commented that in relation to the increase in employment and the quality of the jobs on offer there is a clear distinction between private and public sector, not comparing like with like. The public sector consists of a far greater proportion of professional jobs, higher paid wages and full time employment compared to the private sector. He continued that a number of employees leaving the public sector had become consultants working in the private sector.

The officer responded that local government had been hit the hardest by the government’s austerity measures and that local government in the North had been hit harder than local government in the South and confirmed that public sector staff are starting to move to the private sector via consultancy opportunities as it is seen as the better option.

Councillor Nicholson referred to wages still being 7% lower and how the public sector was under pressure in retaining staff.

Councillor Adam referred to paragraph 14 on page 28 and commented that whilst he welcomed highly skilled jobs within the county there is also a need for low skilled jobs, to ensure there is a mix of job opportunities available and asked whether the authority was doing any work on this.

The officer responded that the authority was working with partners in the County to identify opportunities for both low and highly skilled jobs.

Resolved: (i) That the progress made in relation to the recommendations contained in the Members’ Reference Group Scrutiny review report be noted.

(ii) That a further report detailing progress made against the recommendations contained in the Members’ Reference Group scrutiny review report be submitted to a future meeting.