Agenda item

Mark Ryder presented the Economic Development Update, taking members through the following areas:

• Headlines/ Key Summary Points
• Economic Overview. The slight improvements in the overall economic outlook and a slowdown in the growth rate of inflation. It was anticipated that the Bank of England base rate may increase again to 5.5%. In terms of unemployment, the Coventry and Warwickshire (C&W) area was performing well with rates below the national average. Foreign direct investment was highlighted, with C&W seeing 56 new investment projects in 2023, a 24% increase.
• Business and Economy Support. Mark Ryder spoke of the small capital grant scheme, with Council investment securing private sector investment, the latest round totalling £80,000. Linked to this was the Warwickshire Recovery and Investment Fund (WRIF) with the report setting out the loans to business, and the Local Communities and Enterprise Fund had now reached £1.4m in investments.
• Business Support Programmes. A comparison was drawn between the UK Shared Prosperity Fund (SPF) which was smaller than the former European Regional Development Fund (ERDF). This had seen a reduction in the amount of support programmes which could be commissioned. There was close work with the district and borough councils which held the SPF to work collectively in commissioning four new programmes.
• Employability and Skills Support. Reference to the good progress with Fair Chance Jobs, where 50 businesses were working with WCC and the launch of a new jobs portal. The new Warwickshire Careers Hub was referenced.
• Development of the Business Centre Portfolio, with renovation works and rent reviews to secure market value rents.
• Sector Development and Inward Investment with a number of case studies being detailed.

Members discussed the following areas:

• On the UK SPF, it was noted that this was delivering some of the ERDF but was questioned if it was a lower percentage than the former scheme. In reply, the challenge was that the funding under the UK SPF which could be applied to business support programmes was at a lower level. The approach was to be innovative and to work with district and borough councils (DBCs) to encourage them to think about business support as an important pillar. The funding rested with the DBCs. A lot of work was taking place within Economy and Skills and to deliver value across the programmes.
• Reference to the Careers Hub. This was based in Nuneaton, and questions were submitted about expansion to other parts of Warwickshire and providing a digital offer. Councillor Watson had met with the team. He outlined the proactive service which was delivered county-wide, including through visits to schools. It was not just focussed on Nuneaton.
• Referring to the section on universities as drivers of trade and investment in the Midlands, the links to colleges was questioned.  They were a key link and a needed to provide training which led to jobs. Mark Ryder confirmed that WCC was engaged with further education colleges, giving examples. Whilst the colleges set their own curriculum based on demand from businesses, the Council had an influencing role, providing information about developing sectors. Councillor Watson spoke about apprenticeships as the college and university route was not for everyone. The Council had made budgetary allocations to assist employers during the first three months of apprenticeships. There was a mixed offer of support.
• The Chair referred to the section on commercial rent reviews. He was mindful that some properties were let to aid organisations and asked about the engagement with this group so that they were able to continue operating. He used an example in his locality to demonstrate this. Mark Ryder was aware that the Council had been helpful in assisting charities to establish in certain areas. Any members having such information were encouraged to speak with officers as the intention was not to drive out community benefit. There were good reasons to ensure rents were appropriate to enable maintenance, reinvestment and have a good base for business. He also touched on the business support available and wanting businesses to grow, and where appropriate, to move to larger premises.
• The Chair welcomed the update on provision of the new premises for the Royal Mail in Nuneaton. It was hoped this would address current residential postal delivery issues being experienced in Nuneaton. This was attributed in part to additional residential development in the area and a staffing shortage.

The Economic Development Update was noted.