Minutes:
The Head of Economic Development and Regeneration for North Worcestershire delivered a presentation which updated Members on the action that was being taken in respect of economic development within the Borough (Appendix 1). During the delivery of this presentation the following points were highlighted for Members’ consideration:
· The Council’s economic priorities were adopted by the Executive Committee in September 2015.
· The North Worcestershire Economic Development and Regeneration Unit (NWEDR) provided relevant services in relation to economic development on behalf of Redditch Borough Council.
· The Economic Development Theme Group, a sub-group of the Redditch Partnership, provided useful feedback on the views of businesses in respect of economic development in the Borough.
· Economic development also underpinned many of the Council’s strategic purposes, particularly ‘help me run a successful business’.
· The Council and businesses in Redditch could access the Worcestershire Business Central and Greater Birmingham and Solihull Growth Hubs for business support.
· Businesses had been consulted about economic development within the Borough as part of a piece of work jointly commissioned by the Council and NWEDR. This had found that many businesses were concerned that there was a perception issue in relation to the impression people had of Redditch.
· Issues had also been identified during consultation in respect of the aspirations of local young people and their potential to move into high value occupations.
· There were also difficulties in terms of Redditch residents earning low wages compared to those living in other parts of the region, with the majority of higher salary jobs in the Borough taken by staff who lived outside Redditch.
· There was the potential for existing industrial estates within Redditch to be redeveloped in order to attract more businesses to the area.
· The One Public Estate initiative was a project that was being delivered in partnership and investigating the potential to maximise the public estate to the benefit of the local community and economy. A report on this subject would be presented for Members’ consideration in the New Year.
· A new Engineering Centre of Excellence had been opened to help address skills shortages in the local economy.
· The Opening Doors to Business initiative had been launched locally to provide young people with an opportunity to experience working in a small business environment.
· The Redditch Town Centre Partnership was working hard to enhance the economic profile of the town centre. As part of this consideration was being given to the introduction of a Redditch Improvement District (BID), though this remained at the feasibility stage.
· The NWEDR and the Council had submitted an expression of interest to the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) for £5 million in grant funding. The LEP had concluded that the position of Redditch was essential to the delivery of the partnership’s business case, though no final decision had yet been taken as to whether the bid for funding would be successful.
· The Council and NWEDR were working constructively with Capital and Regional, the owners of the Kingfisher Shopping Centre, on a range of development projects.
· A review of economic performance within the Borough had discovered that Redditch’s economy appeared to be similar to that of Birmingham. Where nationally the economy experienced growth Redditch often experienced recession, partly due to the local economy’s reliance on manufacturing.
· As well as being a member of the GBSLEP and Worcestershire LEP the Council was a non-constituent member of the West Midlands Combined Authority (WMCA) and every attempt was made to access funding from these bodies.
· The WMCA could not achieve its strategic economic plans without locations such as Redditch performing well. This meant that there needed to be investment in non-constituent as well as constituent members of the combined authority.
The Committee raised a number of points in relation to economic development within the Borough during consideration of this matter:
· The skills shortages within the Borough and action that could be taken to address this. Members were advised that this related to a range of sectors in the economy and the NWEDR was working closely with HOW College to try to address this.
· The potential opportunities for economic development that might arise from the Eastern Gateway, subject to the outcomes of the planning process.
· The need to foster a balanced economy that would allow small and medium businesses to grow into larger premises whilst remaining in the local area. Members were advised that the Growth Hubs could potentially help businesses with this.
· The influence of landowners over economic development in the area, and the work of officers to meet with landowners to discuss development opportunities.
· The contribution that the Council’s Acquisition and Investment Strategy could make to stimulate the local economy.
· The need to proactively market Redditch to businesses that might be interested in locating to the area and the work that the Worcestershire LEP was due to undertake to promote the Borough.
· The action that would be taken to market Redditch and the timing of this. Officers advised that a plan would be developed over the following 12 months and the aim would be to take advantage of major development opportunities, such as the Eastern Gateway project, to promote the town to businesses.
· The requirements in respect of economic development with the Local Plan and the definition provided within the plan for the location of the town centre.
· The ambitious plans of the Council and partner organisations in the One Public Estate exercise, which included a focus on developing the town centre beyond the strict definition of that geographical area, as set out in the Local Plan.
· The purpose of a BID area. Officers advised that in such areas a levy could be imposed on business rates and the money collected spent on local initiatives. This could only be introduced with the support of businesses in the area which would have an opportunity to vote on the matter.
· The opportunities provided to Redditch by HS2, which had recently included a briefing at Osprey House attended by a range of local businesses.
· The links between the Council and NWEDR with the retail sector in the Borough. Officers explained that this was particularly strong in the town centre, due to the work of the Redditch Town Centre Partnership, though more could be done to enhance links with shops in outlying areas.
· The productivity levels within the Borough, which were lower than the regional average. Members were advised that other areas were struggling with productivity and this was a problem in the region.
At the end of these discussions Members thanked Officers for a detailed presentation and
RESOLVED that
the report be noted.