Agenda item

The Head of North Worcestershire Economic Development and Regeneration (NWEDR) presented the Economic Priorities for Redditch Annual Report 2016/17 for Members’ consideration.  During the presentation of this report the following matters were highlighted for Members’ consideration:

·                The Council’s current economic priorities were agreed in 2015.  Since then good progress had been achieved in delivering on these priorities.

·                The local economy had performed reasonably well over the past 12 months, though was being out performed by neighbouring areas.

·                In 2016 employment levels had declined when compared to 2015, though overall employment rates remained relatively positive.

·                In September 2017 the NWEDR had commissioned Mr Brendan Nevin to review the economic performance of Redditch and how this fitted within the local region.  This had identified a number of challenges and opportunities.

·                Average earnings in Redditch were lower than the regional average.

·                Links had been identified between the West Midlands economy and the economy in the Borough, with the regional economy being largely southward facing. 

·                Redditch Borough Council needed to work closely with the West Midlands Combined Authority (WMCA) to ensure that the economies of both prospered.

·                An action plan had been developed to help improve productivity in Redditch moving forward.

·                The action plan had been refreshed for Redditch and a fifth theme had been added; Connecting Redditch, to ensure the Borough was connected to the wider regional economy.

Following the presentation of the report Members discussed a number of matters in detail:

·                The time taken to develop the report and action plan and the extent to which the Economic Development Theme Group and Town Centre Partnership had been engaged in this process.

·                The involvement of Worcestershire County Council in developing the action plan.  Members were advised that the County Council was primarily engaged through the Worcestershire Local Enterprise Partnership (LEP) and both the Worcestershire Employment and Skills Board (ESB) and the North Worcestershire ESB.

·                The Council’s membership of the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) and the WMCA.

·                The choice of Redditch, as a non-constituent member of the WMCA, in which to launch the Swift Card, the West Midland’s equivalent of the London Oyster Card, and the benefits of a forthcoming launch event to help promote this card.

·                The recent visit of the Mayor of the West Midlands, Andy Street, to Redditch and the discussions that had been held during this visit with regards to economic development.

·                The Redditch Eastern Gateway, which had recently received planning permission from Redditch Borough Council, Bromsgrove District Council and Stratford-on-Avon District Council and the opportunities for economic development potentially arising from this site.

·                The Opening Doors event at the Palace Theatre, which had provided students from local schools with an opportunity to learn about careers in different industries.

·                The £1.5 million investment in a centre of excellence in respect of engineering in Redditch.

·                The £5 million in funding identified for regeneration works in the town centre and the extent to which the Council had definitely secured this funding.  Officers advised that the funding was provisional and subject to the submission of a robust business case, though it was anticipated this would be successful as the proposals for regenerating the town centre had received an ‘A’ rating on strategic fit by GBSLEP and was seen as essential to the delivery of the LEP’s Strategic Economic Plan.  It was anticipated that the outline business case would be submitted by the end of 2018.

·                The extent to which the Redditch Town Centre Partnership had been consulted about the emerging regeneration proposals for Redditch Town Centre. Members were informed that representatives of the partnership had been consulted during the process and further engagement would take place during 2018.

·                The timescales in which a report in respect of the town centre regeneration would be presented for Members’ consideration.  Officers advised that this report would be presented for Members’ consideration in 2018.

·                The completion of the first phase of the public sector realm works on Alcester Street at a cost over £800k.

·                The fee that had been charged for the work that had been undertaken by the consultants on behalf of the Council.  Officers advised that they would check this and notify Members accordingly after the meeting.

·                The number of business representatives regularly attending meetings of the Economic Development Theme Group.  Officers acknowledged that engaging with the private sector in respect of the work of the group had been challenging but three local business representatives regularly attended meetings and efforts were being made to encourage more businesses to engage.

·                The action that was being taken by NWEDR to encourage businesses to remain in the Borough.  The Committee was informed that the NWEDR provided support to help businesses remain in Redditch.

·                The approach adopted by NWEDR to encourage businesses to utilise business premises when these became available in the Borough.

·                The level of public funding provided to projects detailed in the action plan and the potential for funding to be provided through private finance initiatives (PFI).  Members were advised that a significant amount of funding from the private sector underpinned many of the projects detailed in the action plan, though there remained a need for leadership from the public sector.

·                The Council’s close working relationship with the Kingfisher Shopping Centre.

·                The recent announcement that the Marks & Spencer retail outlet in the Kingfisher Shopping Centre would be one of a number across the country to close in spring 2018.

·                The need for greater action to be taken to promote Redditch and the benefits of basing businesses in the Borough.

·                The opportunities that could potentially arise from introducing an Enterprise Zone in Redditch and the role of the WMCA in helping the Council to make the case to the Government.

·                The employment figures that had been provided for Redditch.  Officers explained that these figures related to employment within the private sector only.

·                The causes of a decline in employment within the Borough.  The Committee was informed that there were multiple factors influencing this including improving productivity within organisations and increasing economic growth in areas neighbouring Redditch.

·                The extent to which sufficient car parking spaces would be available in the town centre to support the night time economy if existing car parks were included in any redevelopment schemes.  Members were advised that there were some car parks in the town centre that were open 24 hours a day.

·                The location of a Recording Studio in the Borough and the positive impact that this had on the local economy.

RESOLVED that

1)        the annual report setting out progress against the delivery of the economic themes, priorities and Action Plan be endorsed;

2)        the economic narrative set out at Appendix 1 to the report and the challenges and opportunities faced by the Borough be noted and endorsed;

3)        the need for a ‘Redditch Deal’ with the West Midlands Combined Authority incorporating the proposed ’10 point Action Plan’ as set out at paragraphs 3.19 and 3.20 to the report be endorsed;

4)        the updated Economic Themes, Priorities and Action Plan set out at Appendix 2 to the report be endorsed; and

5)        an annual report be brought back to this Committee in 12 months’ time.