Agenda item

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

(ii)      Presentation by the Corporate Director of Regeneration, Economy and Growth.

The Chair welcomed the Corporate Director of Regeneration, Economy and Growth, Amy Harhoff who was in attendance to provide the Committee with an update presentation in relation to the impact of COVID-19 on the Regeneration, Economy and Growth (REG) Service (for copy see file of minutes).

The Corporate Director, REG thanked the Chair and Members and noted the report and presentation were written prior to the Prime Minister’s announcement in relation to the Government’s route out of lockdown, with the Council in the process of understanding that information.  She explained the areas that would be covered within the presentation were: Transport and Contract Services; Culture, Sport and Tourism; Development and Housing; Corporate Property and Land; and Corporate Communications and Marketing.

In reference to Transport, the Corporate Director, REG noted the impact upon public transport and traffic, with passenger numbers on public transport at 30 percent of normal levels and commuter traffic at 80 percent of normal outside of peak times, 65 percent at peak times, with journeys seemingly for wider use rather than travel to work.  She explained that public transport was covering 80 percent of the normal network, with a focus on those routes with demand and those supporting key workers and schools.

The Corporate Director, REG noted that in respect of culture, the majority of the events in 2020 were cancelled as a result of COVID-19 and that events that would go ahead in 2021 would be reviewed in line with Government announcements and guidance.  She added that in terms of leisure centres, the lockdown had resulted in centres being closed and a number of staff being furloughed, with others supporting other areas of work, such as vaccination hubs. 

It was noted that a survey of centre users showed that only around three percent would not return to use the facilities, and therefore there was an expectation of a strong comeback in terms of use.  Members noted the use of virtual sessions, with over 1,000 users on the app being used by the service.  The Corporate Director, REG reiterated that events for 2021 would be dependent upon guidance and restrictions being lifted, and issues such as social distancing would need to be considered.  She added that investment was being made in several cultural venues, carrying out maintenance so that they would be ready for reopening.

In terms of development and housing, the Corporate Director, REG noted temporary accommodation for rough sleepers and the “Stop B4 you serve” mediation service to help avoid evictions.  Members were informed of the lower levels of referrals to employment services from Jobcentre Plus as a result of the pandemic and the Corporate Director, REG noted that those services would be key in terms of the displaced workforce.  In respect of investment, the Corporate Director, REG explained there was the Reopening High Streets Safely Fund and there would also be recovery grants.  She explained as regards additional maintenance works being carried out as part of the corporate property and land and also work being undertaken at Durham Bus Station and phase one at Aykley Heads.  It was added that there was ongoing maintenance work and COVID-19 safe working, and that County Hall was being used as a vaccination centre.

The Corporate Director, REG noted the launch of the £5 million Business Recovery Grant scheme, to safeguard and create jobs, sitting alongside the COVID Business Support Brochure to help plug any gaps, adding that if unsuccessful in terms of a grant, guidance and help in terms of applications for other opportunities would be given as appropriate.  The Committee were asked to note the significant additional demands on corporate communications and marketing, with public health messages relating to COVID-19 including: messaging; communications to communities affected by localised outbreaks; service changes following government announcements.  It was noted those areas were in addition to the day-to-day work of the communications team, and that work was joined up with partners in the region, and across the seven Local Authorities (LA7), to maintain consistency.

In respect of the known economic impact, Members were asked to note there was a need to understand which sectors had been impacted by COVIOD-19 in the short-term, the long-term, and the impact of Brexit.  The Corporate Director, REG noted 11 percent of the workforce in County Durham were currently furloughed, compared to 30 percent during the first lockdown which had reduced to 6 percent before latest lockdown.  She added that the latest employment levels were not known, and that data would be picked up within the next weeks and months, with the Council commissioning additional analysis.  She added that the claimant count was 6.1 percent, however it had risen sharply for young people, by 60 percent, and was nearer 10 percent for that cohort.

The Corporate Director, REG noted the visitor economy, hospitality sector and cultural sector were hardest hit by the pandemic.  She added there was demand and therefore it would be important to work in order to be ready to be able to open up safely.  It was noted that Brexit had also impacted on those sectors.  She noted that some sectors had actually grown during the pandemic, namely the manufacturing, logistics and digital sectors, in part due to the work supporting the pandemic response.

The Corporate Director, REG explained that a priority was local investment to help support recovery, through private investment and the Council working to access funding including the UK Shared Prosperity Fund, the Levelling Up Fund, and other recovery funding.  She added as regards the importance of working regionally to be able to help maximise such funding streams.

The Chair thanked the Corporate Director, REG and noted the move to the recovery phase, adding as regards the Prime Minister’s announcement and reiterating that there was still uncertainty in terms of funding, Brexit and the ongoing situation in respect of COVID-19.

Councillor M Wilkes thanked the Chair and Corporate Director, REG and noted the work in relation to the Aykley Heads development site and asked if there were other schemes in the pipeline, such as the leisure centre development programme.  He asked if the programme had started, what funding was allocated and why works had not started as it appeared to be an opportune time, while closed, to cause the least amount of disruption to the public.  Councillor M Wilkes noted the housing on the green belt within Durham City and asked if the Belmont Viaduct was included within the project, as it was at one time to be included and that in terms of walking and cycling it would be a shame if it was not included.  He asked as regards the Towns and Villages Programme, noting as far as he was aware Councillors had not been contacted as regards the scoping of projects.

The Corporate Director, REG noted there was a lot of development in the pipeline and noted that leisure centres were a priority.  She explained that the March meeting of Cabinet would receive an update on the leisure sites and locations for new build.  She noted that while some physical works had not yet been carried out, feasibility works had been undertaken.  In respect of housing on the green belt and the issue raised relating to Belmont Viaduct, the Corporate Director, REG noted she would look into the matter and come back to Councillor M Wilkes accordingly.  She noted the Town and Villages Programme was the next item on the agenda and that she had offered to meet with Councillor M Wilkes to speak as regards issues he had previously raised.  She added that the Team would be going to all the Areas Action Partnerships (AAPs) to provide an update and answer questions.

Councillor M Wilkes noted in respect of leisure centres, the plans were finalised, noting the example of Abbey Leisure Centre where original proposals had included extension works, works to the squash courts and did not include refurbishment of the changing rooms.  He noted local Councillors had not been contacted in terms of the scoping for the works to be undertaken and therefore if the programme of works was finalised when were Councillors to be contacted.  The Corporate Director, REG noted there would be two milestones, the March meeting of Cabinet seeking approval in terms of three new builds and the early technical analysis of the wider programme.  She added there would then be a further round of engagement with Councillors and AAPs on specifics and details.  She noted a final report including the specifics would then be produced later in the year.

Councillor R Crute, Chair of the Overview and Scrutiny Management Board, noted the amount of work ongoing and thanked the Corporate Director, REG.  He noted with the combined impact of COVID-19 and Brexit he felt there was as much work ahead as had already been undertaken, especially in terms of employment, jobs and skills.  He noted the statistics showed that the impact had fallen disproportionately on young people and therefore Government funding in respect of the levelling up agenda would be very much needed.  He noted locally there were the key development sites and that together with developing those there would be the need to be able to get young people to jobs, providing them with the requisite skills, via the work of Business Durham with training providers.  He asked how we would create more and better jobs, and how we would attract and develop those high level skills.

Councillor R Bell asked as regards Business Recovery Grants and demand, noting £3.5 million of £5 million being allocated.  He asked what the typical grant amount was and if a pre-existing business, before March 2020, had changed ownership would that business be eligible for a grant, citing Public Houses as an example of where that could occur.

The Corporate Director, REG agreed in terms of the impact on young people, as they often worked in the sectors most impacted by the pandemic such as retail and hospitality.  She added the Interim Managing Director, Business Durham, Sarah Slaven and the Economic Development Manager, Graham Wood were in attendance at Committee and that they led on a number of projects including working with Jobcentre Plus looking to match young people and their skills with employers and jobs.  She reminded Members that a lot of those programmes were underpinned by EU funding and therefore it would be critical to have UK Shared Prosperity Fund monies to be able to sustain those programmes.  She noted in respect of grants, there was not one size of grant and it varied with applications being up to £3 million, with some meeting the criteria, some not.  She explained demand was far greater than the funding available.

The Interim Managing Director, Business Durham explained that it had been heartening to see the applications from businesses. She noted two-thirds of applications were approved and had come from sectors including: tourism, hospitality, leisure and retail.  She noted many were looking to maximise use of outdoor space, in recognition that activities outdoors were safer in terms of COVID-19.  She added some grants had been in terms of helping businesses move online and therefore there had been a mix of different types of applications.  She noted that if a business existed prior to 11 March 2020, and could demonstrate the change of owner, then they would not be precluded from applying for a grant.

Councillor B Avery asked if an individual ran a business from their own home, would they be eligible for a grant.

Councillor E Adam noted the devastating impact upon young people and asked as regards the Youth Employment Initiative (YEI) and funding for the scheme, noting current EU funding would cease at some point.  He also asked as regards the “Stop b4 you serve” mediation scheme as he had understood that evictions had been suspended and that Government had not yet reinstated debt recovery companies however debt recovery did seem to be taking place.

The Corporate Director, REG noted she would look into the issue relating to debt recovery and come back to the Councillor.  The Interim Managing Director, Business Durham noted the Business Recovery Grants were different and separate to Business Rates Relief and that in terms of the recovery grants, if the business met the eligibility criteria then they would be able to apply for grant.  The Economic Development Manager, noted that the YEI, DurhamWorks, had received a European Social Fund (ESF) extension and notification of possible further extensions had been made around Christmas.  He noted that accordingly, possible further extension through to December 2023 would be looked at.

Councillor J Atkinson stated that he had heard comments that the Communications and Marketing Team did not offer value for money.  He noted he saw the great value in the work that was undertaken by the team and thanked the Corporate Director, REG for highlighting, in her presentation, some of the work they undertook.  However, he asked if she could provide further detail to the Committee on the various type of activities, they were involved in.

Councillor F Tinsley noted the issue of youth unemployment and the Kickstart programme launched several months ago by Government and asked as regards the uptake of that scheme.  He also asked as regard bus services across the county, noting that he felt there were systemic issues, especially in the rural west of the county, noting Government support in respect of services would not continue forever.  He added that with the move to increased homeworking, there would likely be a reduction in bus use and therefore asked whether discussions were being had with bus companies and Government, including in terms of a regulated model and quality contracts. 

Councillor F Tinsley noted the benefits in terms of increased walking and cycling, including in relation to older people who may not access leisure facilities in more normal times, and added he felt the Council should be helping to promote walking. 

He noted the county had a huge resource in respect of its network of old railway lines and felt looking at those areas in conjunction with the investment in leisure centres would be beneficial.

The Corporate Director, REG noted the work carried out by the Communications Team, in terms of working with schools, Public Health, regional promotions, and also statutory engagement and requirements of accessibility.  She added that also it was critical to be able to promote the county in order to attract inward investment and maintain our high profile and reputation.  She explained that the Council also had a duty to maintain the internal communications with Members and staff, and therefore this had been an area that was prioritised and invested in. 

In respect of bus services, she noted the impact of the pandemic, however, passenger numbers had been decreasing nationally and therefore the Council was conscious of that difficult market.  She explained that the Council was in regular dialogue with bus operators, noting the Council’s devolved powers in respect of grants.  She added there was a close working relationship with all operators, especially the two main companies, however, she noted there had not been any formal dialogue in terms of bus regulations.  She noted the Council worked around the county with partners and regional colleagues to ensure the best cross-boundary services were provided.  She noted that cycling had increased by 400 percent in some areas of the county during the pandemic and walking had also increased.  The Corporate Director, REG noted that there had been almost £500,000 of cycling investment secured via the urgency active travel schemes, however, she felt much more was needed and there were opportunities for increased sustainable travel.  She noted the importance of walking and cycling routes, including those on old railway lines, and explained that these were areas being invested in via the Town and Villages Programme, which was important in terms of not only sustainable transport, but also in terms of the Council’s environmental objectives.

The Economic Development Manager noted the Kickstart programme was a very important element of the Government’s plan for jobs.  He explained that the Council was acting as an intermediary, bringing together job opportunities from smaller employers, working through the DurhamWorks programme, and in conjunction with Business Durham and the Economic Development Team working with businesses across the county.  He noted work liaising with the Provider Forum and a number of other gateway organisations across the county as well as work helping a smooth flow of jobs presented to Jobcentre Plus for approval and being made available for young people. 

He noted that a number of opportunities had been coming online just as the further phase of lockdown commenced, noting some opportunities had been created as part of the national pool, with open applications coming through, an example being Livin, with opportunities with both them and within their supply chain being fed through to Jobcentre Plus for the South-West Durham area.  The Economic Development Manager added he would be meeting with the countywide Provider Forum later today, with discussions including those issues, looking at tracking how quickly Kickstart opportunities can be put through the system and made available to young people across the county.

Mrs R Morris thanked the Corporate Director, REG and noted she had mentioned the commissioning of a report to look at the recovery plan.  She asked as regards whether there would be inclusion of how to bring investment into the county, in particular in those areas where future jobs would be generated and sustained.  She noted a lot of companies had noted issues in terms of getting the number of skilled people they needed.  Mrs R Morris noted she hoped that the report would include information as regards how to bring young people, of school age, into science and technology.  She added there was a whole industry in battery production for the future and therefore that could be an area to sustain many jobs, however, figures showed that youth unemployment had been quite high and there was the further impact of the pandemic.  She added there were a number of employers that were waiting to work with schools in order to encourage young people into those industries, and she hoped that this would be mentioned within the report being commissioned.

The Corporate Director, REG noted at the current stage it was in preparing a baseline economic position ready for recovery.  She added that there would be work with the private sector to assist in providing the skills base they needed and to help residents within County Durham access those opportunities.

Resolved:

That the report and presentation be noted.