Agenda item

(i)   Report of the Corporate Director of Regeneration, Economy and Growth.

(ii)  Presentation by the Managing Director (Interim), Business Durham.

The Chair welcomed the Managing Director (Interim), Business Durham, Sarah Slaven who was in attendance to provide the Committee with a progress report relating to Business Durham (for copy see file of minutes).

The Managing Director (Interim) gave a presentation setting out the 2019-20 performance of Business Durham, activity highlights, and the impact of COVID-19 and support for businesses. 

She noted the high levels of occupancy of Business Durham units and highlighted the number of jobs created and safeguarded by Business Durham, 2,108, with around 40 percent of those being new, 60 percent safeguarded.  It was explained that 1,040 businesses had been engaged with, with 403 intensively assisted.  Members noted information relating to £3.4 million of funding secured for businesses, inward investment, contracts, start-ups and enterprise engagement, including activities such as the Future Business Magnates programme.

The Managing Director (Interim) noted activity at Jade Business Park with good levels of interest in remaining units and explained as regards European Regional Development Fund (ERDF) programmes including: Digital Drive County Durham; the County Durham Growth Fund; Durham Business Opportunities Programme (DBOP); and the Durham City Incubator (DCI).  Members learned of the South Africa Trade Mission undertaken in 2019 which had generated over £500,000 worth of contracts, however, for 2020 a virtual mission was held in September, with over 80 companies participating with a “return” virtual mission taking place on 5 November for companies in the North East to find out about opportunities within South Africa.

The Committee noted activities undertaken in terms of supporting businesses in the wake of the impact of COVID-19.  The Managing Director (Interim) noted the previous presentation and gave information relating to; occupancy levels holding up well; some sectors seeing opportunities to expand; 654 businesses being engaged since April; support being offered in relation to grants and advice; a COVID Business Support Brochure; business restructuring support; the rapid response service; start-up capacity; and future opportunities.

The Chair thanked the Managing Director (Interim) and asked the Committee for their comments and questions.

Councillor T Tucker asked as regards confidence in the enquiries in relation to investing in County Durham, the interest in units at Jade, Integra 61, the proposals for Aykley Heads, and how enquiries were turned into investments.

Councillor F Tinsley asked, given the importance shown in respect of ESF and ERDF programmes and only having 30 months left of that funding, what evidence there was in terms of Government replacing EU funding and whether bids to the Shared Prosperity Fund (SPF) were able to be placed yet.  He added that it was important not just to replace what the County had received in terms of EU funding, with County Durham being a transition region but in addition the GDP of the County would have fallen below 75 percent of the EU average and therefore County Durham would have been eligible for further EU funding.  He asked as regards any evidence in terms of Government not only replacing what County Durham got in terms of EU funding, but also in terms of what the County would have got had the UK remained a member of the EU.

Councillor P Sexton asked as regards how difficult was it to be able to change strategies based upon the data received, being able to change trajectory and strategy to be able to optimise efforts in a very difficult environment.

The Managing Director (Interim) noted the units on offer at Jade and Integra 61 were aimed at providing manufacturing units, with those enterprise zones in other areas of the region offering office space having known issues in terms of occupancy. 

She noted that the offer in County Durham played to existing strengths in terms of manufacturing and was reflected in the types of inward investment enquires being received.  She noted she had some confidence in terms of enquiries and noted the support in place, including the County Durham Growth Fund, that could help support an inward investor. 

In relation to EU funding, the Managing Director (Interim) noted there had been no guarantees as regards Government replacing those funds and it had been hoped that information relating to the Comprehensive Spending Review (CSR) would have been announced, however, the pandemic had impacted upon the timescale for the CSR.  She noted that it would be important to be able to demonstrate that County Durham had made best use of the available funding to date and to have proof of how it had made a difference in terms of jobs created and the productivity of businesses.  She noted that in terms of planning, it was very different to previous challenges, the current situation being driven by a health crisis.

She explained that the Council’s support programmes were aimed to be as flexible as possible, noting that early in lockdown an exercise had looked at all the offers for businesses and how they could be refocussed in terms of what businesses were likely to need as a result of the pandemic.  Members were reminded that businesses needed good information, access to markets and customers and a skilled workforce and therefore there was a need to be flexible in terms of the support being offered.  She added that Business Durham, and the Council, needed to be aware of where there were gaps and to lobby Government where appropriate.  The Managing Director (Interim) reiterated that there was a need to ensure we did not lose sight of the opportunities that there would be in the future by being so focussed on the immediate challenges.

Councillor J Atkinson asked if there was a contact where businesses and contractors could reach information quickly in relation to COVID-19 business advice and guidance.  The Managing Director (Interim) noted that they could contact the Business Durham enquiry line and explained that in terms of the support offered to the self-employed, a strand for microbusinesses had been launched this month, through the DBOP, focussing on how to get new customers, supporting marketing and offering one-to-one advice.

Resolved:  

(i)        That the content of the report and presentation be noted.

(ii)       That the Economy and Enterprise Overview and Scrutiny Committee, as part of the refresh of the Committee’s work programme for 2021/22, receive a further progress report on activity undertaken by Business Durham including support to aid recovery of the business sector resulting from the COVID-19 pandemic.