Agenda item

(i)        Joint Report of the Director of Transformation and Partnerships and the             Corporate Director of Regeneration and Local Services.

(ii)        Presentation by Business Development Director, Business Durham.

The Chairman introduced the Operations Director, Business Durham, Sarah Slaven who was in attendance to provide the Committee with an overview presentation on the work and impact of Business Durham in the County (for copy see file of minutes).

The Operations Director explained that the Business Durham Mission Statement was “to enable growth, create jobs and improve lives in County Durham”, with a vision to “have a reputation for delivering measureable and inclusive economic growth”.  Members noted that there were 5 strategic aims linked to this: to build a profile and reputation for County Durham as the best place to invest, start or grow a business; to improve Business Durham’s financial resilience and surplus; to deliver measurable economic growth and account for performance to stakeholders; to transform internal systems and processes to become a robust and agile organisation with a reputation for quality; and to be an employer of choice for attracting and retaining the very best people.

The Committee learned that Business Durham had developed “Our Promise to Business”, 5 things businesses could expect from Business Durham, being: “we and you and your business to prosper”; “we will deliver what you need to meet your business challenges”; “the knowledge you get from us will be up to date, authoritative, comprehensive and relevant so you can use it easily and immediately to make your business better informed and stronger”; “we will give you what you need to move forward – leaving you with answers, not more questions”; and “we will serve you so well that we will earn the right to be your first call when facing challenges”.

The Operations Director referred to performance over 2017/18, noting that the work of Business Durham did not include the retail and leisure sectors.  It was highlighted that over 140 business growth projects had been assisted and that 1,000 jobs had been created or safeguard in this period.  It was noted there had been 12 inward investments, with over 150 jobs associated.  Members noted the engagement in terms of the Future Business Magnates (FBM) competition, with 2,500 people engaged, of which 1,200 were Year 7 pupils. 

It was noted other highlights included: the launch of Digital Drive County Durham; the Aykley Heads launch and Waterstons moving into Northumbria House, retaining 130 jobs in the County; 19 additional schools in the FBM competition; securing funding for the North East Centre for Excellence for Satellite Applications, with 24 collaborative projects, 31 jobs and £4.25 million of investment; hosting of the “Get into Rail” event to highlight opportunities in the sector; and continued growth at NETPark, with the £7.6 million Explorer buildings having opened, creating 41 jobs.

In relation to Business Durham property, the Committee were reminded of the visit by Members to Salvus House and informed that across the whole portfolio there was an occupancy of 82.4%, and this was very positive given the increase in floor space in the portfolio.  It was explained there was the challenge for Business Durham to generate surplus that would then in turn help to pay for what Business Durham do, however, it was noted that Business Durham was well placed and good at managing properties and working with businesses.

Councillors noted that European Regional Development Fund funding had been secured for the Durham City Incubator, located at Salvus House, and also an Incubation Manager had been appointed in May.

The Operations Director noted that Finance Durham had 7 investments completed in 2017/18, worth £2.19 million.  It was added there had been 15 jobs created to date, with 193 jobs predicted and that Finance Durham had helped lever £3.24 million of private sector funding.  Members noted a further 4 deals were in the pipeline, and over 100 businesses had been supported to be “investor ready”.  Members noted the “NE Fund” via EU funding, with a 20% allocation for County Durham as a Transition Region.

The Committee noted the Durham Business Opportunities Programme (DBOP) utilising current EU funding to support mainly smaller businesses.  Members noted that Business Durham would signpost in terms of market opportunities and assist and identify strands of support.  An example was given in respect of childcare, and helping businesses be prepared for the entitlement to up to 30 hours free childcare as set out by Government.  It was added that there had been an incubator zone at the Oktoberfest Engineering Event, providing help to exhibitors in making contacts and with follow up and development work.

Members noted that looking forward it was highlighted that there would be work to maximise EU bidding opportunities, specifically with the County Durham Growth Fund and High Growth Start-up Project.  It was noted that responding to Brexit would be a challenge, as previously mentioned, and that Business Durham would be engaging with and supporting companies.  The Operations Director concluded by noting Business Durham would continue to identify opportunities, for example within the space sector and “Industry 4.0”, as well as look to influence the Local Industrial Strategy, the Shared Prosperity Fund and to address productivity issues.

The Chairman thanked the Operations Director and asked Members for their comments and questions.

Councillor M Wilkes noted the proposals in relation to the Aykley Heads site and noted it was a huge amount of jobs to have in a “cul-de-sac” and added he felt that a circular road was needed to mitigate any potential negative impacts. 

He noted that he worried in terms of the number of time Europe had been mentioned in relation to funding.  He added that he did not think this funding would be replaced in the future and that there had been no firm answers from Government on the issue.  He asked how we could manage without any certainty from Government and asked would the Authority use its money to fill gaps.  The Operations Director noted that Business Durham’s property portfolio payed to the core Business Durham and therefore was effectively self-sustaining. 

She reiterated that Business Durham looked to maximise EU funding, with a number of bids and that current programmes, with money committed ran through to 2020, and from 2019 there would be a “transition period”.  She agreed there had been a lot of EU funding in the past, with there now being a need to ensure foundations were solid.

Councillor P Howell noted he supported the work of Business Durham and asked if lessons had been learned in relation to the one business that had not been successful via Finance Durham.  The Operations Director noted that discussions with partners had noted the requisite checks had been carried out and lessons would be learned.

Councillor J Atkinson noted that in terms of networking events, Local Councillors sometimes would only hear about events in their areas through second-hand information and asked if local Councillors could be invited to events so that they could then help to get the message out into communities.

Councillor R Crute noted, if the Committee’s Work Programme would allow for it, that the impact of the Local Industrial Strategy on County Durham be looked at, in addition to links in terms of the CDEP and Business Durham.  He noted other issues including the low business base in the County and issues in terms of apprenticeships.  The Chairman noted that emerging issues would be look at, and this had been the rationale behind the Committee not taking on a focused piece of work within the 2018/20 work programme and agreed that the committee should receive detail of the Local Industrial Strategy at a future meeting.

Resolved:

(i)       That the report and presentation be noted.

(ii)      That the Economy and Enterprise Overview and Scrutiny Committee receive an update in relation to the work of Business Durham at a future meeting of the Committee as part of the 2019/20 Work Programme.

(iii)      That the Economy and Enterprise Overview and Scrutiny Committee receive an overview of the Local Industrial Strategy at a future meeting of the Committee.