Agenda item

Report of the Head of Economic Development, Durham County Council.

The Board received an update report from the Head of Economic Development, presented by the Regeneration Policy Team Leader, G Martin on the Inclusive Economic Strategy (IES) Deliver Plan (for copy see file of minutes).

The Regeneration Policy Team Leader reminded the Board of the impact and challenge post-COVID 19 in terms of the economy, as well as the long-term challenges the County had faced for decades.  He noted that it was important to have a robust evidence base, in order to look to address those challenges, and explained the IES was developed between the Economic Partnership and Durham County Council (DCC).  He reminded the Board of the longstanding partnership arrangements that were place, emphasising that the economy was an area that required such a partnership approach.  The Regeneration Policy Team Leader noted the IES was adopted in 2023, with a delivery plan based upon the four “Ps”, People; Productivity; Places; and Promotion (of the County).  The Regeneration Policy Team Leader noted that throughout all of those was ‘planet theme’, looking at reducing carbon emissions, helping to improve the environment and in turn people’s wellbeing.

In respect of ‘People’, the Regeneration Policy Team Leader explained as regards the Council’s allocation of around £30million from the UK Shared Prosperity Fund (SPF), with the strand relating to ‘People and Skills’ representing around £10million.  He added that funding allowed the continuation of DurhamWorks, previously EU funded, as well as DurhamLearn, with an additional fund of around £2.8million from Government in respect of ‘Multiply’ an adult numeracy programme.  He noted there was also communication plans in respect of literacy in addition, as well as work via DurhamEnable helping to support disabled people to gain the skills and confidence to succeed in long term employment, and beyond.  The Regeneration Policy Team Leader noted that UKSPF funds were received in three-year allocations, with the current allocation being up to March 2025. 

He explained that DurhamWorks had currently reached 98 percent of target currently, with DurhamEnable being at 84 percent of target, with there being independent evaluation of each programme.

The Regeneration Policy Team Leader noted there had been some lag in terms of UKSPF guidance from the previous Government, however, following devolution and the establishment of a new North East Combined Authority (NECA) and a new Government elected in May 2024, the new Government was yet to set out its preferred approach to regional devolution and funding.  He added that the total national allocation for the UKSPF was £0.9billion, down from the previous allocation of £1.5billion, and therefore it would be important to lobby as regards ensuring allocations were based upon need.

The Regeneration Policy Team Leader noted the importance of engaging with business to help offer ‘good jobs’, and a living wage, noting the increase in national minimum wage introduced.  He noted there were cost of living challenges in addition, with some additional support having been put in place.  He explained as regards the work via the Economic Partnership to help bring in more external partners and noted that IES Delivery Plan would be reviewed in 2025, after the Local Government elections and Government’s Spring Spending Review, with hopefully clarity at that time as regards funding, the NECA.  He added that the IES Annual Report 2024 report would go to Cabinet in January 2025, setting out performance relating to around 150 actions, with many actions being completed or on-track, with the main risk being that of future funding.  The Regeneration Policy Team Leader noted that one of the big challenges was that of economic inactivity, especially those long-term sick, with around 28,000 in County Durham, and there needed to be as much support as possible.  He explained that inflation increasing would impact further on the cost of living and there were a great many people within the County with caring responsibility in addition.  He concluded by noting that it was not a ‘one size fits all’ approach to support and that funding was critical.

The Chair thanked the Regeneration Policy Team Leader and noted that at a regional meeting with Directors of Adult and Health Services, it had been noted that ’10,000 good jobs’ would be helpful as people were generally healthier if they prospered.  The Regeneration Policy Team Leader noted that the review in 2025 would look at where jobs were created, looking at each parliamentary constituency.  He noted that may highlight issues, for example there being more jobs in Durham City and East Durham.  He noted that issues such as employment land and inward investment would be important.

The Director of Public Health, A Healy noted there was a lot of individual activities in the space and asked if they could be joined up to be more effective. 

The Regeneration Policy Team Leader noted that he would always wish for more activities, including working with the voluntary and community sector (VCS).  He noted that discussions at the regional level as regards at what level activities should be, and how to involve the VCS. 

K Burrows supported the comments from the Regeneration Policy Team Leader, noting she was a member of the Economic Partnership.  She noted there had been a lot of hard work, adding that it was not just the VCS that could help.  She noted that small and medium-sized enterprises (SMEs) made up the majority of businesses in the county, alongside a few large anchor employers.  She noted that adding health and wellbeing as a priority within social investment could help, aligning the shared priorities with the Environment and Economic Partnerships, and the Health and Wellbeing Board could help get the best ‘bang for buck’.  She added it was important to record what was happening on the ground, not just new schemes, and remember that most VCS were in fact SMEs.  She added that upfront grants for 2-3 years work best, and that reiterated that SMEs made a significant contribution in terms of health and wellbeing.

P Sutton asked as regards metrics for the schemes up to 2035 and asked how we measured ‘more and better jobs’, with examples of say top three metrics.  The Regeneration Policy Team Leader noted the vision was for ‘more and better jobs’ and this included ‘green growth’.  He added that there were targets within each industry area, with targets aimed at closing the gap of County Durham performance against England averages.  He added that these were monitored over time, adding that employment data varied as the Office for National Statistics (ONS) statistics looked at a smaller set of measures.  He noted that Gross Valued Added (GVA) measured productivity, and this had increased post COVID.  He noted that the review of the economic base would be considered by Cabinet and the Economic Partnership in January 2025.

Dr J Carlton noted the review in 2025, and objectives linked to health and wellbeing, and asked how the board could engage in that process.  The Regeneration Policy Team Leader noted this was planned to be as soon as possible, over summer time 2025, to be concluded and in place by March/April 2026.  He added that he would come back with more details in late spring / early summer 2025 with more details.  Dr J Carlton noted the need therefore for more health-related metrics within the actual strategy.

Resolved:

That the Health and Wellbeing Board:

(a)     Note the progress of delivering the Inclusive Economic Strategy.

(b)     Note the improvements in economic performance but ongoing

challenges with long-term health problems that prevent people

from working.

(c)      Note the challenges relating to funding and the continuation of

activities.