GREATER BIRMINGHAM AND SOLIHULL LOCAL ENTERPRISE PARTNERSHIP BOARD MEETING Thursday 19th September
LEP Board meeting – 09:00-12:00
Solihull College and University Centre, Blossomfield Campus, Solihull, B91 1SB
AGENDA
Item Time Owner Subject Pre Read Presenter Purpose of the Report
1 09:00 Solihull College Introduction to the College Verbal John Callaghan/Sean Howitt To introduce Solihull College and University and University and presentation on impact Centre and update the Board on the impact of Centre of LGF interventions LGF interventions
2 09:10 Chair Welcome and Introductions Verbal Tim Pile To note attendance and apologies
3 09:12 LEP Executive Notes / Matters Arising: Attached Tim Pile To agree notes of the last meetings and any a) 18th July matters arising b) Decision by written procedure
4 09:15 LEP Board Review of Agreed Actions Attached Tim Pile To note progress against agreed actions
5 09:20 LEP Executive Forward Plan Attached Tim Pile To agree Forward Plan
6 09:23 LEP Executive Director’s Report Attached Katie Trout To note key developments related to the strategy, delivery and operations of the LEP
7 09:28 LEP Board Strategic Discussion Attached Tim Pile / Katie Trout To frame a discussion on key strategic issues, including the Spending Review, future spending rounds, Brexit and the Oakervee Review on HS2 and to agree actions and next steps in response.
8 10:00 Programme Growth Programme Update Attached Chris Loughran/Sally Agass To note Q1 19/20 Highlight Report Local Growth Delivery Board Programme
9 10:10 Programme Commonwealth Games Attached Sally Agass To note the views of Programme Delivery Board Delivery Board (PDB) and issues raised through Independent Technical Evaluation (ITE) and approve conditional allocation of £20,000,000 (twenty million pounds) capital funding to Birmingham Item Time Owner Subject Pre Read Presenter Purpose of the Report
City Council (BCC) to support the delivery of the Commonwealth Games (CWG) Stadium.
10 10:25 Pillar Boards SEP Delivery Plans Attached Anita Bhalla / Paul Edwards To approve the updated delivery plan, noting progress and risks.
To note the potential for revisions following the forthcoming launch of the new screen industry body for the West Midlands and delegate authority to the Business and Innovation Pillar Board to make any changes; and
To note that the potential for co-investment from partners will be explored to enable delivery of key actions region-wide.
10:35 Break
13 10:45 Employment Plan 10,000 Plus Attached Paul Edwards To note the progress in the development of the and Skills Board ‘Plan 10,00 Plus’ which aims to increase the cohort of learners commencing NVQ 3+ qualifications in the Greater Birmingham and Solihull LEP area;
14 10:55 GBS Joint Joint Scrutiny Committee Attached Cllr Shelagh Mckiernan To receive the Annual Report of the GBS Joint Scrutiny Report Scrutiny Committee Committee
15 11:10 LEP Executive Annual Conference 2019 Attached Katie Fulcher To note an update on plans for our Annual Conference 2019 and to comment on direction of travel and make suggestions as to how best the Conference can be used as a platform to promote the GBSLEP’s key messages.
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Item Time Owner Subject Pre Read Presenter Purpose of the Report
16 11.20 LEP Board Statutory Accounts: Attached Kate Shaw To seek approval for historic statutory accounts from 2014 to 2017. A) Historic Accounts
B) 18/19 Accounts
17 11:35 FOM Committee Future Operating Model Attached Tim Pile / Katie Trout To update on the implementation of the FOM Implementation and to outline key issues for the Board to be aware of from the Transfer Agreement and the embedded Accountable Body Agreement.
18 11:45 LEP Governance Attached Tim Pile/Katie Trout To note update on Board Director recruitment. Board/Noms Committee To suggest platforms to advertise the opportunities on/ organisations to engage with and potential candidates.
To seek approval for an addition to the Assurance Framework relating to the Chair’s responsibilities.
19 11:55 Any other business
Reports for noting
20 LEP Executive Communications Update Attached N/A To note media coverage highlights since the last meeting and progress in delivering the Stakeholder Engagement Plan.
21 Business & Growth Hub Attached N/A To provide an update on the Growth Hub Next Innovation Pillar Phase 2019-2022 and the Growth Hub Board Marketing Plan.
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Item 3A
GREATER BIRMINGHAM AND SOLIHULL LOCAL ENTERPRISE PARTNERSHIP BOARD MEETING
Thursday 18th July
Safari Academy, West Midlands Safari Park, Spring Grove, Bewdley, DY12 1LF
DECISIONS & ACTIONS
Present In Attendance Apologies
Tim Pile Chair Katie Trout LEP Executive Anita Bhalla Performance Birmingham Chris Loughran Deputy Chair Paul Edwards LEP Executive Sophie Drake Story Comms Pat Hanlon Russell Eacott LEP Executive Matthew Rhodes Energy Capital Simon Marks Arcadis Natalie Benson LEP Executive John Callaghan Solihull College Mike Lyons HS2 Ltd. Peter Jenion LEP Executive Alec Cameron Aston University Perry Wardle Solihull MBC Saqib Bhatti Younis Bhatti & Co Ltd Dawn Ward Burton and South Derbyshire College Cllr Brigid Jones Birmingham CC Dean Piper Cannock Chase DC Cllr Ian Ward Cllr Ian Courts Solihull MBC Ostap Paparega NWEDR Cllr George Adamson Birmingham CC Cllr Jeremy Oates Tamworth BC Kate Shaw LEP Executive Cllr Doug Pullen Cannock Chase DC Edward Scutt LEP Executive Cllr George Allen East Staffordshire BC Steve Taylor Birmingham Life Cllr Karen May Lichfield DC Cllr Tony Johnson Cannock Chase DC Science Park Cllr Matthew Dormer Redditch BC Clive Heaphy Bromsgrove DC Alison Jarrett Deputy S151 Officer Company Secretary and S151
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Item 3A
Item Item Subject Decision Action Timescale Owner Number
1 Presentation on Darren Chorley, Managing Director of the West the West Midlands Midlands Safari Park, provided an update on the Safari Park impact of the Academy which was part funded through the Local Growth Fund and plans to develop Academy the wider Safari Park.
2 Welcome and The Chair welcomed everyone to the meeting and Apologies thanked the West Midlands Safari Park for hosting the meeting. The following apologies were noted:
• John Callaghan, Solihull College • Anita Bhalla, Performance Birmingham • Sophie Drake, Story Comms • Matthew Rhodes, Energy Capital • Saqib Bhatti, Younis Bhatti & Co Ltd • Cllr Karen May, Bromsgrove DC • Cllr Ian Ward, Birmingham CC • Cllr Doug Pullen, Lichfield DC • Cllr George Adamson, Cannock Chase DC • Clive Heaphy, Birmingham CC
Mike Lyons declared an interest in item 8 ‘HS2 Urban Realm EZ Project’ due to his role as Programme Director of HS2 Ltd.
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Item Item Subject Decision Action Timescale Owner Number
3 Notes / Matters The Decisions and Actions Note from the last Arising from the meeting on 6th June was endorsed as an accurate last meeting – 6th record. June 4 Review of Agreed The Board noted progress updates for items on the Actions Actions Log, including:
• Audited Accounts – since the last Board meeting, further work has been undertaken on the historic accounts. Key issues arising are: o Additional clarification notes will be added to further aid the reader’s understanding of the accounts; o Interest generated from various funds had not been transferred into the GBSLEP’s accounts at the time they were produced; and o The loans made from the Mezzanine Fund have not, to date, been accounted for by BCC in the LEP’s accounts
The LEP Executive has discussed these issues with Dains, the Auditors, and proposals for dealing with them were outlined to the Board. If agreed, these recommendations would not require the statutory accounts to be changed, aside from the insertion of clarification notes.
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Item Item Subject Decision Action Timescale Owner Number
The Board agreed to receive a report Report on the audited 19th July LEP Executive/ LEP including these recommendations and the accounts to be produced Board detail behind them for consideration under and circulated to the Board written procedure.
The Board thanked Pat Hanlon for his contribution to the audited accounts process.
• The Board noted that a training session on Training to be rescheduled September LEP Executive roles and responsibilities of Board Directors was scheduled for immediately following the Board meeting, had been cancelled. The Board agreed that this would be rescheduled.
• The Board has received further information A further briefing to be September WMCA/Henry Kippin / on governance, milestones and financial arranged, either at the LEP Executive information related to 5G. The need for more Board or outside of it. detail was raised and it was agreed that a further briefing should be arranged.
• The Board agreed to receive a report on HS2 Report to be produced End of HS2 Ltd. that synthesises the best evidence into a including the best available August clear narrative on the anticipated economic evidence to create a impact of HS2 for the region. This can then compelling narrative be used by the Board and partners to around the economic promote the need for HS2. impact of HS2.
5 Board Forward The Board noted the Forward Plan which outlines Plan items scheduled for future Board meetings.
It was agreed that the UK Central Full Business Case should be added to the Forward Plan. UKC FBC to be added 4
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Item Item Subject Decision Action Timescale Owner Number
Date to be Urban Growth advised Company/LEP Executive
6 Director’s Report The Board noted the Director’s update on the strategy and activity of the LEP including updates on the following:
• Public Accounts Committee Report review of LEPs;
• Enterprise Zone - opening of Centenary Square and progress on Paradise; • Commonwealth Games LGF Investment;
• Greater Birmingham and Solihull Ladder; • Future Operating Model – in particular, Decisions to be taken with 31 July Chair/FOM discussions on the need for a bond for the regard to the Pension Fund Committee/LEP West Midlands Pension Fund and progress and legal documents to be Executive on developing the suite of legal transfer signed. documents. It was noted that the FOM Committee and the Chair would make decisions on these issues under their delegated authority. It was noted that Cllr Ian Courts would join the Committee as an additional public sector representative.
• LEP Executive Team – the Board welcomed the new Chief Operating Officer and Head of Governance; and thanked Tom Fletcher who has left the team and Russell Eacott who is
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Item Item Subject Decision Action Timescale Owner Number
leaving at the end of the month for all their work on the LEP’s agenda.
7 Growth The Board noted the Quarter 4 2018/19 Local Programme Update Growth Fund Highlight Report
The Board agreed to receive Local Growth Fund Update on the LGF September Programme Delivery Highlight Report for Quarter 1 2018/19 at the Highlight Report for Q1 Board September Board meeting. 2018/19 to be delivered at the September Board meeting
The Board agreed to receive data for Quarters 2 and Update on the data for Q2 End of 2019 Programme Delivery 3 2018/19 by the end of 2019. and Q3 2018/19 to be Board delivered before the end of 2019
The Board agreed to receive an update on the Update on University September Programme Delivery progress of the University Station Project at the Station Project to be Board Board September Board meeting. The update should cover presented at the the wider benefits of the project. September Board
8 HS2 Urban Realm Mike Lyons left the room when the following EZ Project decisions were taken:
The Board noted the views of Programme Delivery Board (PDB) and issues raised through Independent Technical Evaluation (ITE) and approved conditional allocation of £26,172,419 (twenty six million one hundred seventy two thousand four hundred
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Item Item Subject Decision Action Timescale Owner Number
nineteen pounds) of Enterprise Zone (EZ) capital funding to Birmingham City Council (BCC) for the delivery of the Curzon Station Enhanced Public Realm project, subject to submission of a fully compliant Full Business Case (FBC) before January 2021 which includes:
a. Justified, evidence-based costs and the contingency approach b. Updated economic and financial cases based on the evidence-based cost c. Formal agreement of the respective responsibilities of BCC and HS2 Ltd including cost overruns across all aspects of the scheme d. Demonstration of value for money through a detailed procurement process e. Information in relation to the potential HS2 commercial development f. The rationale for enhanced public realm as catalyst for commercial investment g. Clarification of the potential business rates and impact of related income timing on EZ funding
The Board agreed to allocate £222,763 (two hundred twenty-two thousand seven hundred sixty three pounds) from the overall allocation as development funding for work needed to progress to Full Business
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Item Item Subject Decision Action Timescale Owner Number
Case (FBC) in addition to the £1,445,512 previously approved for options analysis and design work.
9 Precision Board Directors received a presentation from Steve Technology Taylor, Director of Strategy and Operations at Accelerator – Life Birmingham Life Sciences Park.
Science Park in discussions after the presentation, the Board
noted the views of Programme Delivery Board (PDB)
and issues raised through Independent Technical
Evaluation (ITE) and approved the conditional
allocation of £10,000,000 (ten million pounds) from
Local Growth Fund (LGF) to the University of
Birmingham (UoB) for the Precision Health
Technology Accelerator (PHTA) project subject to a
fully compliant Full Business Case (FBC) being
submitted before January 2020 which includes:
a. Evidence of match funding being in place
b. Developed and refined cost estimates including S106 agreements and showing how it builds up to the final total costs c. Agreement of respective responsibilities and risk allocation and a fully developed risk register with quantified costs of risks
d. A detailed procurement process and programme e. Confirmation that should grant be approved, it will be defrayed and claimed in full, in good time for the LGF end of March 2021 deadline
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Item Item Subject Decision Action Timescale Owner Number
f. Clarification of previous public investment in the site and potential for double counting of outcomes from related projects
g. Further information regarding the existing BioHub
facility to demonstrate evidence of demand
h. The opportunity for GBSLEP to share in the rewards of such investments
The Board also agreed to allocate £1,941,000 (one million nine hundred forty-one thousand pounds) LGF as development funding, repayable should full approval not be given, or the project not go ahead.
The Board agreed to receive a clarification of point Further details on point 1h ASAP LEP Executive 1h in the report relating to the opportunity for of the report to be provided GBSLEP to share in the rewards of investments in to Directors following its the Precision Technology Accelerator following consideration by the Audit consideration by the Audit and Risk Committee and Risk Committee.
10 Hoobrook Link The Board noted an update on the progress of the Road Hoobrook Link Road project and its economic impact since its completion from Ostap Paparega, Head of Economic Development and Regeneration at NWEDR. 11 West Midlands The Board: Local Industrial Strategy 1. Noted progress and proposed next steps on implementation of the West Midlands Local
Industrial Strategy.
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Item Item Subject Decision Action Timescale Owner Number
2. Approved, in line with the West Midlands Combined Authority (WMCA) Strategic Economic Development (SED) Board recommendations, that GBSLEP Executive
will work across the West Midlands, as a whole, to lead work with five specific sectors and to take forward the next stage of work on two of the four major new market opportunities. 3. Approved, in line with WMCA SED Board recommendations, that GBSLEP contribute to an integrated pipeline of strategic Local Industrial Strategy programmes and projects to be produced across the 3 LEPs and the WMCA. It noted that GBSLEP contributions
to the pipeline should be considered by the LEP Board.
4. Approved additional funding of £140,000
from the Strategic Economic Plan (SEP) Enabling Fund to support work from the Executive in leading the work highlighted in paragraphs 10 - 12 across the West Midlands geography. This will enable the LEP to recruit two dedicated staff for one year to support implementation of the Local Industrial Strategy.
The Board agreed to receive a 1-page summary of Paul Edwards to produce August Paul Edwards the Local Industrial Strategy to support the 1-page summary of the LIS
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Item Item Subject Decision Action Timescale Owner Number
communications and stakeholder engagement and send to Board activity of Board Directors. Directors.
The Board agreed to receive further detail on the Paul Edwards to report to September Paul Edwards allocation of resources for implementing the LIS by Directors on information the Coventry & Warwickshire LEP, Black Country relating to allocation of LEP and West Midlands Combined Authority. resources for LIS implementation.
12 SEP Delivery Plans The Board approved the updated Place Delivery – Place-making Plan and noted progress against agreed actions.
13 LEP Review – The Board noted an update on the progress of the Overlaps LEP Review relating to overlaps between different LEPs.
The Board noted that a meeting with local authority Meeting of local authority th leaders was being arranged to discuss potential Leaders to be arranged 24 July LEP Board/LA options with a view to developing a collective Leaders proposal to resolving the boundaries issue.
14 Governance The Board: Update 1. Noted the resignation of Steven Roy Claymore as a B Director; 2. Noted the resignation of Ian David Hardiman as a B Director; 3. Noted the resignation of Patricia Leslie Ackroyd as a B Director;
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Item Item Subject Decision Action Timescale Owner Number
4. Noted the resignation of Richard Gerald William Grosvenor as a B Director; 5. Noted the resignation of Michael John Wilcox as a B Director; 6. Noted the resignation of Gordon Alcott as alternate B Director; 7. Noted the resignation of Ian Maxwell Pardoe Pritchard as alternate B Director. 8. Noted the appointment and resignation of David John Bush as a B Director; 9. Noted the appointment and resignation of Chris John Rogers as a B Director; 10. Noted the resignation of David Stephen Eastwood as a C Director; 11. Noted the resignation of Michael John Hopkins as a C Director; 12. Appointed Jeremy Oates as a B Director; 13. Appointed Douglas Pullen as a B Director; 14. Appointed Duncan Hanson Goodfellow as a B Director; 15. Appointed Karen May as a B Director; 16. Appointed Matthew Dormer as an alternate B Director; 17. Appointed Iain Eadie as an alternate B Director; 18. Appointed George Allen as an alternate B Director 19. Appointed Tony Johnson as an alternate B Director 20. Reappointed seven B Directors and seven Alternate Directors; 21. Appointed John Callaghan as C Director; 12
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Item Item Subject Decision Action Timescale Owner Number
22. Appointed Alexander John Cameron as C Director; 23. Noted that the Annual Confirmation Statement for the Company has been filed at Companies House on 14 May 2019.
15 Board Composition The Board agreed to:
1. Reduce the number of Local Authority representatives from seven to six by 31 March 2020; noting ways to enable southern Staffordshire districts to maintain their current levels of engagement and influence; 2. Reduce the size of the Board to 18 Directors – 10 from the private sector (including a young person’s representative); two from the academic sector; and six from local authorities; 3. Endeavour to achieve a diversity of gender, ethnicity, age, geography, skills, experience and size of business on the Board; 4. Have both sector specialists and generalists, who lead on specific themes, represented on the Board; and 5. Have individuals with skills to support the functioning of the GBSLEP as an independent and active company on the Board; and 6. Appoint a Deputy Chair for Strategy.
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Item Item Subject Decision Action Timescale Owner Number
7. Delegate authority to the Nominations Recruitment process to Completion Noms Committee / Committee to oversee the recruitment commence. Reports on by end LEP Executive exercise; and progress to be brought to November 8. Agree that headhunters should be procured future Board meetings. to support the recruitment exercise.
Board Directors agreed to suggest suitable Board Directors to suggest Ongoing Board Directors candidates for Board membership. suitable candidates for Board membership 16 Finance Update The Board noted an update on the Quarter 1 2019/20 finances.
17 Medium Term The Board considered and agreed the Medium-Term Financial Plan Financial Plan 2019/20 to 2020/2021.
The Board agreed to receive an updated Medium- Medium Term Financial March 2020 LEP Executive Term Financial Plan once sources of future funding Plan to be updated and are clearer. presented to the Board meeting once future funding streams are confirmed 18 AOB The Board agreed to receive a KPI update at every KPIs to be reported at each Ongoing LEP Executive Board meeting, even when there is no new data Board meeting released, given the importance of focusing on outcomes and outputs.
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Item Item Subject Decision Action Timescale Owner Number
FUTURE LEP BOARD MEETING DATES:
• Thursday 19th September, Solihull College and University Centre – Blossomfield Campus, Solihull, B91 1SB • Thursday 21st November, Room 101, Library of Birmingham, Centenary Square, Broad Street, Birmingham, B1 2ND
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GREATER BIRMINGHAM AND SOLIHULL LOCAL ENTERPRISE PARTNERSHIP BOARD
Thursday 16th August
DECISIONS TAKEN BY WRITTEN PROCEDURE
Item Item Subject Decision Action Timescale Owner Number
1 GBSLEP Historic The Board: Statutory Accounts 1. Noted that additional clarification notes are being Clarification notes to be End August LEP Executive prepared for insertion into the historic statutory completed accounts to aid the readers understanding of them, specifically a more detailed statement of comprehensive income, a statement of cashflows and balance sheet notes on the Mezzanine Fund, the Revolving Investment Fund (RIF) and the Midlands Engine Investment Fund (MEIF).
2. Agreed to make no adjustment to the historic statutory accounts (years ended 31 May 2013, 2014, 2015, 2016, 2017, 2018) for the additional £1.2m Revolving Investment Fund (RIF), Growing Places Fund (GPF), Mezzanine Fund interest received in 2019 from Birmingham City Council (BCC) relating to earlier years, and instead, account for this interest in full in 2018/19 or 2019/20 financial accounts.
3. Agreed an accounting policy for the Mezzanine Fund interest whereby it is accounted for on a 1
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Item Item Subject Decision Action Timescale Owner Number
receipts basis rather than on an accruals basis, given that much of the loan interest is receivable once the final loan principal is repaid which could be months or years in the future, and there is always a risk that the organisation may be unable to pay the interest when the time comes.
4. Agreed to make no adjustment to the historic statutory accounts (years ended 31 May 2013, 2014, 2015, 2016, 2017, 2018) for the treatment of the Mezzanine Fund loans outstanding as Cash rather than Debtors, as the amounts are not material to the value of the Balance Sheets in those years; any outstanding Mezzanine Fund loans will be treated as Debtors in the 2018/19 financial accounts onwards.
5. Agreed to make no provision for impairment of the Mezzanine Fund loans in the historic statutory accounts (years ended 31 May 2013, 2014, 2015, 2016, 2017, 2018) as the outstanding loans are recoverable in full based on the latest quarterly report as at 31 March 2019 from Finance Birmingham which manages the Fund.
6. Agreed to make no adjustment to the 2017/18 statutory accounts for the error found in the 2016/17 Income & Expenditure comparatives, which has the setting-up of the RIF in both Income and Expenditure, whereas the 2016/17 accounts treated this 2
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Item Item Subject Decision Action Timescale Owner Number
correctly as a simple balance sheet transfer.
7. Noted that, in light of the above decisions, the only changes that will be made to the historic statutory accounts will be the inclusion of clarification notes, and that no changes will be made to the 2017/18 accounts which have been filed at Companies House.
8. Agreed to receive the revised historic statutory Revised historic accounts End August LEP Executive accounts for approval by written to be produced procedure in late August 2019.
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Item 4
ACTIONS LOG
The Actions Log is a record of actions agreed upon to support Board decisions. It provides an indication of the progress made against each action.
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
27/03/2019 1 Attendance at Board LEP Executive Ongoing In progress This action is being taken forward by the meetings to be collated and Head of Governance now he is in post published. and is being considered alongside the other recommendations from the Wates Review to identify any other areas of best practice that the LEP should follow.
27/03/2019 16 Audited Accounts for Chair/agreed ASAP Completed Item on the September Board’s agenda 2013/2014 to 2016/2017 to Director/LEP be signed and submitted to Executive Companies House
25/04/2019 8 Specific next steps to be Sophie Drake/ Tony June/July Ongoing The report was presented at the WM identified and potential Bhajam/LEP Executive Digital Skills Partnership. funding to be explored e.g. Work with the project authors to from NESTA. develop a pilot intervention using the report findings has begun with delivery commencing November
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
06/06/2019 6 LEP Executive and LEP Ongoing In Progress Projects being progressed with Programme Delivery Board Executive/Programme Investment Report at OBC and FBC to work with partners to Delivery Board stages along with new projects being developed. strengthen the project
pipeline to ensure that it is Letters are being sent out to partners well developed to make use and reviewing options within LEP of any additional funding Executive as how best to progress, that might become including planned call for skills projects available from government in line with Plan 10,000 Plus. following Brexit.
06/06/2019 7 Assurance Framework to be LEP Executive/ BCC After In Progress Initial discussions have taking place with amended to provide clarity Consultation BCC. over the ability to award with BCC Initial draft has been produced, being capital funding for the finalised. development of business cases only after further consultation with the Accountable Body
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
06/06/2019 8 Gantt chart to be produced James Betjeman, July 2019 Completed Gantt Chart to be shared with Board showing the key milestones BCC/Russell Eacott (September Directors as an appendix to the Review and interdependencies 2019) of Agreed Actions Item at the September Board meeting. across the different EZ projects in the EZ Investment Plan.
06/06/2019 8 OBC for Smithfield to be Birmingham City July In Progress OBC expected to PDB on 31 October developed Council (November) 2019 and Board in November 2019.
06/06/2019 11 Collaboration agreements Chair / LEP Executive July In progress Draft collaboration agreements are in with Stoke & Staffordshire the process of being developed with the and Worcestershire LEPs to neighbouring LEPs. be prepared
06/06/2019 12 The Chair, in consultation Chair/FOM End of June Completed See FOM Implementation report on this with the FOM Committee, Committee/LEP agenda. to approve the revised Executive Accountable Body Agreement, pensions, the formal Transfer Agreement and expectations of the S151 officer in relation to
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
revenue on behalf of GBSLEP
06/06/2019 15 Audit and Risk Committee Audit and Risk June Completed A recommendation is being made to this to consider outcome of Committee/LEP Board under Item 16. procurement exercise on Executive the appointment of auditors and make recommendation to the Board
06/06/2019 16 The most effective ways of LEP Board/LEP Ongoing In progress GBSLEP is supporting the West highlighting the economic Executive Midlands’ contribution to the Oakervee impact of HS2 to be Review (see Item 7). explored.
18/07/2019 4 Report on the audited LEP Executive/LEP July 19th Completed Report circulated and recommendations accounts to be produced Board agreed by written procedure. and circulated to the Board
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
18/07/2019 4 Roles and responsibilities LEP Executive September In progress This session is now to be arranged for training session for Board late November / early December so that Directors to be rescheduled any new NEDs that are appointed can attend. The date will be confirmed asap.
18/07/2019 4 A further briefing on 5G to WMCA/Henry September In progress WM5G Ltd has agreed to arrange a be arranged either at the Kippin/LEP Executive (November) briefing session for Board Directors from Board meeting or outside of GBS, BC and CW LEPs on 5G. Date is yet to be confirmed. it
18/07/2019 5 UK Central Full Business Urban Growth To be Case to be scheduled on the Company/ LEP advised LEP Forward Plan Executive
18/07/2019 7 Update on University Programme Delivery September Completed University Station project presented a Station Project to be Board Board progress update at the Programme presented at the Delivery Board on 04/09/2019 Included as part of the Director’s Report September Board on this agenda. 18/07/2019 9 Further details on point 1h LEP Executive November Exploration on ways for the GBSLEP to of the Precision Technology share in the rewards from any Accelerator report to be investment will be taken forward as the FBC develops. provided to Directors
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
following further consideration.
18/07/2019 11 Paul Edwards to produce 1- Paul Edwards August In progress A summary will be circulated shortly. page summary of the LIS (November) and send to Board Directors.
18/07/2019 11 The Board agreed to receive Paul Edwards September In progress A response will be provided at the further detail on the September Board meeting allocation of resources for implementing the LIS by the Coventry & Warwickshire LEP, Black Country LEP and West Midlands Combined Authority.
18/07/2019 13 A meeting of local authority LEP Board/LA Leaders 24th July In progress Southern Staffordshire Leaders have leaders to be arranged to met and agreed their position on discuss potential options overlaps. Motions on the issue were discussed and agreed by Redditch BC with a view to developing a and Wyre Forest DC and letters sent to collective proposal to the Minister informing him of their decisions.
Item 4
Board Date Agenda Action Agreed Owner(s) Date due Status Progress update Item for Number completion
resolving the boundaries issue.
18/07/2019 15 Board Director recruitment Noms Committee/LEP Completion In progress See Item 18 on this agenda. process to commence. Executive by the end Reports on progress to be of brought to future Board November meetings.
18/07/2019 15 Board Directors to suggest Board Directors Ongoing Ongoing Directors are encouraged to suggest suitable candidates for potential candidates Board membership
18/07/2019 17 Medium Term Financial LEP Executive March 2020 Awaiting Details of future finding streams have Plan to be updated and confirmation not been confirmed by Government so presented to the Board of future no further work on the MTFP has yet been undertaken. meeting once future funding funding streams are streams confirmed
Item 4a
Greater Birmingham & Solihull LEP Board
Enterprise Zone Investment Plan Programme Timeline
Recommendations The LEP Board is asked to: • Note the Enterprise Zone Investment Plan 2019 Programme Timeline attached as Appendix 1.
Background 1. In June 2019 the GBSLEP Board approved the Enterprise Zone Investment Plan 2019 (EZIP 2019) which sets out the investment strategy, including key projects that will drive economic growth and regeneration in Birmingham and the wider GBSLEP region. It focusses on a 10-year period over which to manage investment against forecasted income and deliver upon clear priorities. This approach responds to the need to continue the acceleration of major development schemes and infrastructure works that will unlock growth and maximise the potential of HS2. This approach is fully aligned to the Big City Plan, Curzon HS2 Masterplan and HS2 Growth Strategy as well as continuing the delivery of GBSLEP priorities. The EZIP 2019 sets out the 10 year phased investment programme, which has been structured as follows:
• Accelerate delivery of current commitments (Phase 1-2).
• Maximising early opportunities from HS2 (Phase 3-5).
• Longer term strategic priorities (Phase 6-9).
2. The GBSLEP Board requested that an overall programme timeline is put together by consolidating milestones from individual project plans. This is attached as Appendix 1 and is broken down by projects within investment phases 1-4 and are either onsite or in the development phase with business case approval expected in the next 12-24 months.
3. The timeline includes projects up to Phase 4, which is the remodelling of Digbeth High Street. The milestones for the subsequent Phases 5-9 have yet to be defined and will come forward as the projects are developed, for example the East Birmingham to Solihull Metro scheme is a longer term priority and the outline business case is not yet available. Other phases such as the wider Curzon programme and Digbeth Public Realm are programme based investment themes and will be defined in response to the development opportunities coming forward in these areas.
4. Further work is required to outline the interdependencies between projects as this is reliant upon the outcome of the HS2 review in late 2019, and any impact on the milestones set out in the timeline will be incorporated as appropriate.
Reviewed by:
Prepared by: James Betjemann – Head of Enterprise Zone and Curzon Development
Date: 5th September 2019
1 of 1 GBSLEP Board Forward Plan Item 5
Item Purpose Owner Lead officer Standing Supervisory Board item/Regular item/ Ad hoc item
Thursday 21st November 2019
Director’s Report To raise and discuss headline business LEP Director Katie Trout Standing item on the agenda, and to note performance against KPIs
Growth Programme To update on Growth Programme Programme Delivery TBC Standing item Yes progress and Pipe line Prioritisation Board update
Enterprise Zone Update To update on the Enterprise Zone Programme Delivery TBC Standing Item Yes Board
Local Industrial Strategy To discuss proposed next steps for WMCA SED Board Paul Edwards Standing item implementation of Local Industrial Strategy and its implications for GBSLEP activity.
SEP Delivery Plans To review and endorse the Delivery Pillar Boards Paul Edwards Standing item Plan for Life Sciences
Board Composition To update on the review of the Board’s LEP Board Katie Trout Ad Hoc composition GBSLEP Board Forward Plan Item 5
Item Purpose Owner Lead officer Standing Supervisory Board item/Regular item/ Ad hoc item
Finance update To update on the high-level financial LEP Board Katie Trout Standing Item position, the revenue spend to date and the forecast outturn for the year.
Communications Update ‘Below the line’ report to update on the LEP Executive Katie Fulcher Standing Item LEP’s communications activities.
Inward Investment Support To consider a recommendation for LEP Business & Paul Edwards Ad hoc Yes funding support for targeted inward Innovation Pillar investment activity for GBSLEP Board
Midlands Connect To receive an update on the latest Midlands Connect Katie Trout Ad Hoc developments with Midlands Connect
Enterprise Research Centre To update on the latest research on ERC Mark Hart Ad Hoc Update business start-ups, scale-ups and survival in the GBS region.
Thursday 23rd January 2019
Director’s Report To raise and discuss headline business LEP Director Katie Trout Standing item on the agenda, and to note performance against KPIs GBSLEP Board Forward Plan Item 5
Item Purpose Owner Lead officer Standing Supervisory Board item/Regular item/ Ad hoc item
Growth Programme Q1 Highlight Report Local Growth Programme Delivery TBC Standing item Programme and Pipeline Prioritisation Board Update
Enterprise Zone Update To update on the Enterprise Zone Q4 Programme Delivery TBC Standing Item 2018/19 Highlight Report and Q1 Board 2019/20 Highlight Report Enterprise Zone
EZ Smithfield To consider the OBC Programme Delivery TBC Standing Item Board
Local Industrial Strategy To discuss proposed next steps for WMCA SED Board Paul Edwards Standing item implementation of Local Industrial Strategy and its implications for GBSLEP activity.
SEP Delivery Plans To review progress in the SEP Delivery Pillar Boards Paul Edwards Standing item Plans
Finance update To update on the high-level financial LEP Board Katie Trout Standing Item position, the revenue spend to date and the forecast outturn for the year. GBSLEP Board Forward Plan Item 5
Item Purpose Owner Lead officer Standing Supervisory Board item/Regular item/ Ad hoc item
Communications Update ‘Below the line’ report to update on the LEP Executive Katie Fulcher Standing Item LEP’s communications activities.
Business Support & Access To consider a business plan for Business & Paul Edwards Ad hoc to Finance developing an Angel co-investment Innovation Pillar fund in GBSLEP (The Ark) Board
Thursday 12th March
Director’s Report To raise and discuss headline business LEP Director Katie Trout Standing item on the agenda, and to note performance against KPIs
Growth Programme Q1 Highlight Report Local Growth Programme Delivery TBC Standing item Programme and Pipeline Prioritisation Board Update
Enterprise Zone Update To update on the Enterprise Zone Q4 Programme Delivery TBC Standing Item 2018/19 Highlight Report and Q1 Board 2019/20 Highlight Report Enterprise Zone
Local Industrial Strategy To discuss proposed next steps for WMCA SED Board Paul Edwards Standing item implementation of Local Industrial GBSLEP Board Forward Plan Item 5
Item Purpose Owner Lead officer Standing Supervisory Board item/Regular item/ Ad hoc item
Strategy and its implications for GBSLEP activity.
SEP Delivery Plans To review progress in the SEP Delivery Pillar Boards Paul Edwards Standing item Plans
Finance update To update on the high-level financial LEP Board Katie Trout Standing Item position, the revenue spend to date and the forecast outturn for the year.
Communications Update ‘Below the line’ report to update on the LEP Executive Katie Fulcher Standing Item LEP’s communications activities.
Item 6
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19 September 2019
Director’s Report
Recommendations
Board Directors are asked to: 1. Note and comment as appropriate on recent developments in relation to strategy, delivery and operations of the GBSLEP.
Strategic Issues
KPIs
2. There are no major updates to the GBSLEP’s Key Performance Indicators to report in September (see Appendix A). Unemployment data has been released for Quarter 1 2019, but this has hardly changed since the previous quarter.
3. There have been, however, updates to some of our Leading Indicators. The Greater Birmingham Chambers of Commerce’s Quarterly Business Review for Quarter 2 2019 reports that the Export Sales Index has shown a deterioration of 4 points and is at the lowest level since 2016. Furthermore, the Capex, which is an indicator for firms’ investment in capital, has fallen into negative territory for the first time in over a decade. The Chamber has attributed firms’ reluctance to invest in new facilities and equipment to the enduring uncertainty around Brexit which is causing them to be more cautious in their investment decisions.
4. Latest figures from the Enterprise Research Centre’s (ERC) Local Growth Dashboard have been released for 2018. The number of new businesses created in the GBSLEP area is 17.7% lower in 2018 than the number for 2017. There has also been a fall in start-ups across the UK, but the reduction has not been as sharp as for GBSLEP, with 13% fewer start-ups in the UK in 2018 compared to 2017. The ERC attribute this slow-down of business creation to entrepreneurs’ concerns about Brexit.
5. In GBSLEP, there has been an improvement in the 3 year trend in the percentage of start-ups scaling to over one million pounds: the 2015-18 rate is 2%, in line with the national average; whereas the 2014-17 figures for GBSLEP were 1.6%, compared to 1.9% nationally.
6. The Start-up survival rate in the LEP area remains at 55%, suggesting that 45% of start-ups go out of business after 3 years in GBSLEP. These figures are in line with the national average.
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7. A representative from the ERC has been invited to attend the GBSLEP’s November Board meeting and will be able to explain in greater detail the reasons behind some of the changes in data them.
8. At the November Board meeting, Directors will should also receive an update on the LEP’s performance against the Quality of Life KPI (drawn from PwC’s Good Growth Index) and the levels of private sector job creation.
Mid-Year Review
9. As part of its annual review process of LEPs, Government has introduced a Mid-Year Review. This meeting will focus on Strategy, Delivery and Governance, with a particular attention on progress in addressing any issues raised at the Annual Performance Review (APR). GBSLEP’s mid-year meeting is being held on 26 September 2019 and will be attended by the Chair, Director and Deputy S151 Officer. The APR itself will be held between December and January 2020.
Delivery
Enterprise Zone
10. The Board received a presentation on the proposals for Birmingham Smithfield at its April 2019 meeting, which set out how the estimated 17 hectares of land of the old wholesale market site will be transformed to include over 2000 new homes, commercial space, cultural and leisure attractions, a public square and the home of a new Bullring Market. Since then, Birmingham City Council (BCC) and its preferred joint venture partner, Lendlease have been developing their proposals.
11. Through recent meetings with the LEP Executive, it has been agreed that BCC and Lendlease will aim to present the Outline Business Case (OBC) to the 11 December Programme Delivery Board (PDB). If deemed appropriate, the LEP Board will be asked to consider the OBC at its meeting on 23 January 2020. Planning approval for the project is expected to be sought in late 2020 with the start of Phase 1 on site in 2022 if funding is approved.
12. The PDB considered an update on Paradise at its September meeting, focusing on progress with addressing each of the LEP conditions that had been attached to the additional investment of £51.277m to BCC for Phases 1 and 2 through the Enterprise Zone.
13. All the conditions considered precedent with respect to release of EZ funding under the Service Level Agreement (SLA) have now been met. As such the provision of prudential borrowing into PCLP by BCC has commenced with, in turn, this funding being backed off by drawdown of EZ funding from GBSLEP under the SLA.
14. The project is now progressing with Phase 1 approaching completion on revised programme and within budget, albeit there are cash-flow pressures on the contingency within the Phase 1 budget.
15. A revised Phase 2 cash-flow is being developed and is due to be considered by the PCLP. This will identify that a reduced but (we are advised) workable contingency remains available. Commencement of Phase 2 delivery will be determined on
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completion of the financial work and the full satisfaction of any outstanding conditions.
16. Given the strategic importance of Paradise for Birmingham and the wider GBSLEP area, a review group of the PDB has been established to work with the LEP’s Paradise Executive Lead to monitor progress and to make any necessary recommendations in light of developments to the PDB, and ultimately the LEP Board.
Growth Programme
17. At its last meeting, the Board asked for an update on the University Station project which was given a red RAG in the Highlight Report. The project has made progress in several areas although some of the key risks remain high. The final design for the station was revealed in July 2019, and the DfT-compliant Outline Business Case and the project programme were finalised. According to the current programme, the new station buildings will be completed in May 2022, with the new station in operation during the Commonwealth Games.
18. In terms of the funding package for the current project cost of £39.5m, statements of intent have been received from six out of seven prospective funders, with the £5m NHS contribution remaining a key concern, as well as the £0.5m outstanding funding gap. Other ongoing concerns include land assembly conditional on agreements being achieved with the University of Birmingham and Network Rail; and removal of the existing covenants on the land.
19. Given the complexity of the project, monthly updates on progress are being provided to the LEP Executive and an update report is being provided to each PDB so that progress can be closely monitored. This is critical given the tight timescales the project has and the scale of funding being sought from GBSLEP.
Governance
20. Directors may have noted that Dawn Baxendale is stepping down from her role as Chief Executive at BCC to take up a post as Chief Executive of Christchurch Council in New Zealand. Clive Heaphy is due to become Interim Chief Executive. In the short term he will continue to be Chief Finance Officer, and therefore also the LEP’s S151 Officer. Going forward, an interim successor should be appointed who will take on the S151 role, but Clive’s intention is to continue to attend the LEP Board.
Operations
People Strategy
21. A project has been started to develop a people strategy which will set out how the LEP will grow, develop and enable its Executive team to deliver the LEP’s agenda. It will aim to ensure that GBSLEP is an employer of choice, with a culture, policies and procedures that set high expectations, whilst providing a stimulating and rewarding environment for its people and a competitive advantage to the organisation.
22. The Strategy will also recognise that following the implementation of the Future Operating Model that the organisation is entering a challenging period of both internal and external uncertainty. It will therefore aim to provide a people-centred
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framework to guide the choices of the LEP and its staff as the Board and Executive seek to steer a successful course through an unsettled landscape.
23. The first stage will be to commence recruitment of a number of key roles that are currently vacant or filled by interim consultants.
Business Transformation Project
24. Following the implementation of the Future Operating Model the Executive also now needs to review its current ways of working.
25. A change consultant has been engaged to assess the current state, help the team to define the required future state, and to identify gaps and the actions needed to improve. It is expected that this will identify improvements to existing processes, systems, policies, ways of working and controls.
26. It is also expected to identify changes required around clarity of roles and responsibilities both internally and externally and to highlight culture change opportunities.
Report by: Katie Trout LEP Director
Contact: [email protected]
Date Created: 8th July 2019
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GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19 September 2019
STRATEGIC DISCUSSION
Recommendations
1. The Board is asked to: a) Consider and comment on the issues raised in this paper; b) Agree any next steps.
Background 2. This report is intended to stimulate a discussion on key strategic issues currently facing the GBSLEP and the country. A brief overview of the recent Spending Review, Brexit planning and the independent review of HS2 have been provided, along with some suggested discussion points to help frame the conversation. There may be additional issues that Directors want to reflect on, and there will certainly be further points to explore over and above those highlighted. 3. The desire is to have a full and frank discussion and for the Board to identify implications for the GBSLEP and actions that should be taken forward as a result.
Key Issues Spending Review 4. The Chancellor of the Exchequer outlined his one-year Spending Review on 05 September 2019. The detail that was announced was high-level and, as there was no Budget linked to the announcement which would have enabled the realisation of the large funding commitments, it was more akin to a statement of intent from the Government. 5. The focus of the Spending Review was predominantly on public services rather than directly on economic growth. A few specifics relevant to LEPs were as follows: • Further Education Colleges will receive £400m increase in 16-19 funding for next year; • A total of £241 million from the Towns Fund in 2020-21 to support the regeneration of high streets, town centres and local economies; • continued funding for the Midlands Engine; • Local Government DEL will increase by £1.1 billion in cash terms on the adjusted baseline. With this increase in grant, Local Government Core Spending Power is estimated to increase by £2.9 billion in total in 2020-21. These changes will be reflected in the Local Government Finance Settlement for 2020-21; • £1.1 billion funding to ensure the Strategic Road Network;
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• Funding for bus services and rail infrastructure; and • The announcement of a National Infrastructure Strategy this autumn – which will include more detail on broadband. 6. The West Midlands, via the Mayor, had submitted a series of asks from the Spending Review. Given the one-year nature of the Review, these were not supported as part of this fiscal event, so will continue to be the basis of a discussion with Ministers and officials. 7. No announcements have yet been made on future funding post European and Local Growth Funding. It is understood that there remains the intention for Government to issue its consultation document on the UK Shared Prosperity Fund but timings for this are not clear. 8. Suggested discussion points: • How should the GBSLEP best influence the next Budget / Spending Round? • Are there specific requests for funding to support the delivery of the West Midlands Local Industrial Strategy and the LEP’s Strategic Economic Plan that should be submitted? • Should the GBSLEP move away from focusing on fiscal events for resources and instead seek to put proposals directly to Government? How best to go about this and are there any initial projects/initiatives that should be focused upon?
Brexit Impact and Business Preparedness 9. Following Boris Johnson’s appointment as Prime Minister, preparations for the UK leaving the European Union have increased significantly. The likelihood of leaving with a No Deal has grown over recent weeks, although a law has now been passed which has been designed to stop this happening. 10. The Board has previously received updates on the work GBSLEP has been doing to support Brexit preparedness. The Growth Hub continues to be the focus of support for local business, with the website and advisors utilising the plethora of material produced nationally. Latest information is being shared across all the LEP’s media channels on a weekly basis. 11. The LEP has worked closely with partners, supporting and promoting their activities as much as possible e.g. the Greater Birmingham Chambers of Commerce Brexit Toolkit and events held by business representative organisations. Intel from businesses on Brexit has been shared on a regular basis with Government. 12. The Mayor has established a Brexit Contingency Group which Coventry and Warwickshire (CW) LEP is a member of on behalf of the three West Midlands LEPs. Proposals for funding to support the economy post-Brexit have been submitted to Government. 13. The constituent authorities within the Combined Authority and some of the non- constituent authorities have pooled part of the funding received from Government to support Brexit preparedness. This is being used to fund collective activity. 14. The three Growth Hubs have received an allocation to increase activity to support business resilience, including providing dedicated advisors and improving engagement and communications. GBSLEP will receive c£190k over three years. This work is being led by CW LEP to help to ensure that there is a consistency of approach across the three Hubs and that resources can deliver as large an impact as possible.
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15. It has also been recently announced that Government will providing nearly £3m of further resources to Growth Hub across the country. They have created 10 clusters across England with each cluster having a cluster lead. CW LEP is the lead for the six Growth Hubs in the West Midlands. Individual awards are based on the VAT registered business density of each cluster and the West Midlands will receive a total of £198k. 16. Growth Hubs have been advised by Government that Brexit preparedness needs to be the main focus for the next six months and existing targets will be relaxed as a result. 17. Suggested discussion points: • What intelligence from businesses are Directors hearing in relation to the impact of Brexit, the potential impact of No Deal and how prepared they are? • Are there any messages that the LEP should convey to Government about businesses preparedness and what is required to enable the region to withstand any economic headwinds from Brexit? • Board Directors have previously advised that the LEP should seek to support partner activity as much as possible, where they are best placed to lead it. Does this remain the view or should the Executive seek to be more pro-active in certain areas? • What more should the Growth Hubs be doing to support businesses?
Oakervee Review of HS2 18. The Prime Minister launched an independent review of HS2 on 21 August 2019. The Oakervee Review, named after the Chair, Douglas Oakervee, has been tasked with considering all the existing evidence on the benefits and impacts, affordability and efficiency, deliverability, scope and phasing of HS2. The outcome will help to inform the decision by the Prime Minister, the Secretary of State for Transport and the Government on the future of Phases 1 and 2 of the project. 19. Full Terms of Reference for the Review are available here: https://www.gov.uk/government/publications/hs2-independent-review-terms-of-reference 20. Supporting the Chair will be Lord Berkeley as Deputy Chair and a panel including the West Midlands Mayor, Andy Street and Cllr Patrick Harley, Leader of Dudley MBC. They will be joined by Michele Dix, Stephen Glaister, Sir Peter Hendy, Andrew Sentance, John Cridland and Tony Travers. Each panellist will focus on a specific area of interest and will feed in to and be consulted on the report’s conclusions, without having a right of veto if consensus cannot be reached. 21. The Review will publish its report in the Autumn of 2019. 22. The Managing Director of Transport for West Midlands has been tasked with supporting the West Midlands panellists by gathering the evidence for the case for HS2 and why it is critical to the economic success of the region. GBSLEP has joined the group that she has convened. The desire is for the region to speak with one voice, based on one agreed baseline of evidence. 23. In light of this, it is proposed that GBSLEP contributes to the West Midlands group, rather than produce its own submission to the Panel. 24. Given the importance of HS2 to delivery of the LEP’s Strategic Economic Plan and to the realisation of all the ambitious targets in the West Midlands Local Industrial Strategy, the Board will, however, want to consider how best to communicate its views publicly once the key messages have been identified and agreed locally.
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25. The LEP is well placed to demonstrate a collective view of the private, public and academic sectors in relation to HS2, and critically the importance of HS2 and both Curzon and Interchange Stations to the local economy and to UK Plc. 26. Suggested discussion points: • Do Directors have any intel on the Review to share with the Board? • What existing evidence on the impact of HS2 do partners have that could be useful to the Review Panel that may not have been identified to date (the West Midlands Group is collating material that is well known e.g. work to develop the two stations, local transport links etc but is seeking additional evidence on indirect economic impacts); • Should the GBSLEP make its views known publicly and if so, how best to achieve maximum impact? • Are there any key individuals (including those on the Panel) that the GBSLEP should consider lobbying? • Should any work be undertaken to prepare for the potential different outcomes of the Review?
Conclusions 27. This paper is intended to frame a discussion on some of the key economic issues facing the country and how they relate to GBSLEP. Board Directors are asked to use it as a guide but are encouraged to consider all other relevant issues. Actions emanating from the discussion will be taken forward as required.
Report by: Katie Trout, Director Contact: [email protected] 07825 318250 Date Created: 10/09/2019
11/09/2019 4 of 4 Item 8
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
17 September 2019
Local Growth Fund Update
Recommendations
The LEP Board Directors are asked to: 1. Note the Quarter 1 2019 – 20 Local Growth Fund Highlight Report and the key issues set out below. 2. Note the progress to date and overview position in terms of spend to end of programme at 31st March 2021 and outputs to the end of our monitoring period of 31st March 2025.
Overall Programme RAG Status and Red RAG projects
3. The Programme Delivery Board received the LGF Highlight report for Q1 with an assessment that the programme for 2019-20 is RAG rated overall as Amber. The report for Q4 2018-19 similarly reported an Amber RAG rating. As more data is processed future highlight reporting will be able to show comparables and trends. 4. Detailed Information on a project by project basis is contained at Item 8, Appendix A Q1 2019-20 LGF Highlight Report. This report identifies those projects that require attention because of the potential risks to the overall programme of Red RAG projects. 5. Of the 27 projects currently in delivery (see Dashboard tab), the following six projects carry a Red Rag status: RED RAG Status LGF Project Explanation Clean Air Hydrogen Bus Project considered commercially unviable without a change in the funding strategy.
Dependant on BCC Cabinet approval. Date awaited Hagley Road Sprint Multiple delays caused by land assemble. Change request pending
Mid Cannock Delay due to dependency on Network Rail decision on overnight rail path
access University Station Concerns over deliverability although project in early stage of development
Redditch Gateway Multiple financial and operational issues
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due to complex project structure Unlocking Stalled Housing Sites Delivery delays and under-developed project risks creating uncertainty
Financial Position
6. Financial Q1 – Actual Claims for this quarter totalled £3.43m against a projection of £3.272m. This is against a total allocation for 2019- 20 of £12.7m.
7. Overall financial position, as reported to BEIS is as follows: LGF Values Total LGF Grant Allocation across all £186.05m years Total contracted and Conditional £199.38m1 allocations Pipeline Projects, currently £46.5m unallocated Total Claimed to date £113.43m Table 1: Overall allocation 1 Note Approval of over-programming by 107% by Programme Delivery Board (PDB) . Outputs
8. A comprehensive review of outputs of all the projects has been undertaken to ensure that the outputs agreed and reported are realistic and meet the descriptions published by government in August 2018. This has resulted in some reductions in jobs outputs where clarification on direct and indirect job totals were made. This reduction has been agreed with government and the LEP is still on track to exceed its set target. 9. Note outputs are only reported on an annual basis so actual figures for Q1 of this financial year are not yet available. 10. The table below shows forecast totals against outputs up until the end of the LGF spend programme. These have been agreed with completed projects, projects in delivery and projects with conditional allocation. Please note that the monitoring period for outputs is until 2015
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Output Forecast Actuals Total Forecast in Forecast Total 2018-19 achieve Actual 2019-20 to 2020 - actual and d 2018- 2015 to 2021 forecast to 19 date end of spend programm e 2021 Jobs 1,271 2,062 5,746 2,641 4,852 13,238 created/safe guarded Housing 450 407 1,379 1,502 1,780 4,661 Units Completed Numbers of 551 816 1,840 746 504 3,090 new learners assisted in courses leading to full qualification Table 2: Data from annual returns as reported to BEIS
11. Outputs forecast to the end of the monitoring period of 2025. As follows: Output Actual Forecast to Total actuals LGF Target achieved 2021 and forecast since start of to end of programme monitoring 2015 period 2025 Jobs 5,746 7,493 27,837 20,300 created/safeguarded Housing Units 1,379 3,282 11,495 4,900 Completed Numbers of new 1,840 1,250 4,665 12,500 learners assisted in courses leading to full qualification Table 3: Data from annual returns as reported to BEIS
Commentary- At the start of the Growth Deal allocation, government set targets for GBSLEP against these outputs. The end of the monitoring period for these outputs is 2025. The job and housing targets are projected to exceed target but the number of learners has fallen behind due to the early withdrawal from the programme of a significant college scheme. Against our target of 12,500 we are forecast to achieve 4,665 learners. There is a projected shortfall of 7,835 learners. We have conditionally allocated funding to several skills projects and are developing projects in the programme pipeline to improve our learner outputs. We are still likely to not meet our government targets and have alerted government to this.
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12. PDB has requested a classification of types of jobs created, for example the split between skilled and unskilled jobs. LEP executive will discuss with BEIS the best methodology to achieve this. The LEP PMO is drafting an outputs and outcomes policy that will be disseminated to all projects with clear descriptions for each outcomes and suggested baselines for evidencing their achievements. We are part of a LEP wide working group, working with government to produce guidelines for all LEPs to follow. 13. LEP Executive will research methodologies for measuring the wider economic benefits achieved by the LEP across the West Midlands region.
Pipeline 14. There is a Pipeline project review planned for September 2019 to enable a detailed report to be taken to PDB and then to the LEP Board. 15. Due to the possibility of unexpected delays occurring on projects there may be an issue of underspend at the end of the contract period. Hence the importance of the this review to ensure there are sufficient projkects that can deliver by March 2021 and that meet . PMO Systems, Resourcing and Communications 16. The interim Programme Director is reviewing the staff resourcing needed to deliver and monitor the programme and to allow the existing staff to work more closely with projects that have red or amber ratings. With vacancies filled, the team will be able to be more proactive in seeking pipeline projects that are strategically linked to both the LEP Strategic Economic Plan and the West Midlands Industrial Strategy. 17. The intention to purchase a Project Monitoring Office system is being pursued with a visit to Leicester to evaluate the fit for purpose of Verto, which are one of the three systems under review. A system will relieve some of the administrative burden on staff and allow for various reports to be produced at short notice. 18. There is a need to plan a communication strategy so that the project successes can be celebrated and shared with a wider audience. The PMO works with our Stakeholder Engagement Manager and Communications Officer to ensure a strategic approach to all our communications. We report, all our upcoming project milestones to government monthly.
Conclusion Overall the programme is on target to achieve spend at the end of this financial year and at the end of the programme. In terms of outputs, two out of three will be exceeded with skills the area that needs improvements. The team are undertaking a review of the pipeline projects to confirm a priority list against the agreed over- programming limit and will report outcome to the next Board. . The LEP Board Directors are asked to: 1. Note the Quarter 1 2019 – 20 Local Growth Fund Highlight Report and the key issues set out below. 2. Note the progress to date and overview position in terms of spend to end of programme at 31st March 2021 and outputs to the end of the monitoring period of 2025.
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Report by: Sally Agass, Interim Programme Director Rehana Watkinson, PMO Manager
Contact: [email protected] 07885 701002
Date Created: 17 September 2019
Appendices A: LGF Highlight Report Q1 2019-20
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GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19 September 2019
Local Growth Fund Investment Report Commonwealth Games Stadium
Recommendations
Board Directors are asked to: 1. Note the views of Programme Delivery Board (PDB) and issues raised through Independent Technical Evaluation (ITE) and approve conditional allocation of £20,000,000 (twenty million pounds) capital funding to Birmingham City Council (BCC) to support the delivery of the Commonwealth Games (CWG) Stadium. 2. The Board is also recommended to allocate the funding with the following conditions:
• Confirmation of West Midlands Combined Authority (WMCA) funding in November 2019. • Assurances received that the model used to calculation the Benefit Cost Ratio for phases 1 & 2 is robust and that the assumptions are transparent for audit purposes. • Representation of the LEP on the relevant CWG governance to support successful delivery of the project and to help ensure post games involvement in monitoring and evaluating the LEP contribution.
Background
3. Birmingham was announced as the Games host in December 2017. The principle of GBSLEP contributing £20m from its Local Growth Fund allocation to the Games was agreed on the basis of a ‘B’ strategic fit rating. 4. At the August 2017 GBSLEP Board meeting imposed the following conditions to the approval:
• evidence that the Games created sufficient economic impact across the wider GBSLEP area; and • that £20m of headroom could be found within the programme – principally from Birmingham projects.
5. Assurances have been sought from BCC that the model adopted and the assumptions about the output Benefit Cost Ratios were both appropriate and robust. Information has been requested in time for the LEP Board.
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At PDB in February 2018 it was confirmed that Birmingham projects to a value of £18.5m could be de-prioritised to enable headroom in the LGF programme for CWG projects. Those projects that were de-prioritised to make way for the games, if still relevant, are on the LGF Project Pipeline that is being reviewed in September 2019 as it is imperative that the LGF programme remains fully committed to March 2021. Additional capacity from the programme has been found to make up the £20m.
6. The total capital package is; 2019/20 2020/21 2021/22 Total Capital GBSLEP £20,000,000 £20,000,000 Capital CWG £2,187,000 £15,255,000 £ 92,000 £17,534,000 Capital WMCA £25,000,000 £25,000,000 BCC Prudential £10,000,000 £10,000,000 Borrowing Total £2,187,000 £35,255,000 £35,092,000 £72,534,000
Table 1 7. Given the overall cost of the stadium is £72.4m the LEP contribution is significant at 27.6%. In addition, it is significant to the LGF as the £20m contribution represents 16.08% of the total LGF allocation. 8. Based on the investment requirement at table 1, an Expression of Interest was received from Birmingham City Council in August 2018. 9. In April 2019 BCC provided a Summary Report outlining a proposal to provide an improved and enhanced sporting facility for the Games at the Alexander Stadium (phase 1). Funding for this phase, would enable Phase 2 which includes sports science and educational facilities with the concomitant benefits for the wider area. 10. Phases as follows;
o Phase 1 the subject of this FBC, includes the demolition of the west wing of the existing stadium and the construction of a world class sporting facility and associated landscape works related to athletics venue.
o Phase 2, post games provides a leisure legacy, including internal refurbishments, construction of a new leisure complex and space to cater for a new Birmingham City University sports science facility.
11. The Full Business Case was considered by PDB on the 27th June 2019 but was not recommended to proceed for investment decision by the LEP Board until issues on the Independent Technical Evaluation (ITE) were clarified or expanded upon, particularly on the economic and financial cases. Particularly relevant to the LEP was the demonstration of economic benefit which is the primary justification for LGF investment. 12. The main issues raised by AECOM, undertaking the ITE, were: • The lack of evidence of economic impact as a result of the investment in the Alexandria Stadium.
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• Clearer articulation of a lasting legacy from Phase 2 for the residents of West Midlands. • Certainty of match funding including BCC £10m, WMCA £25m and Commonwealth Games Budget £17.54m making a total budget allocation of £72.4m. Because of the interdependences of the funding package this project requires all approvals to be in place to progress. 13. At PDB on the 04th September 2019 the Board considered a revised FBC and ITE and accepted that these issues, and the others that had been identified, had been addressed but asked for further clarification of the assumptions used to arrive at the output Benefits Cost Ratio. The LGF investment is made on the basis of achieving economic benefit for the region and on that basis, because the LGF benefits mainly accrue in the Phase 2 legacy period, the GBSLEP will continue with its monitoring and evaluation role to ensure outputs, outcomes and value for money is achieved over the long term. AECOM’s assessment of the BCR for Phase 1 is low at 1.27 with Phase 2 at 3.99 considered high and it is this element for which assurances has been sought in time for the board. 14. Table 2 evidences the identified items relevant to Phases 1 & 2 Phase 1 Phase 2 New jobs in the economy 51 135 Indirect new jobs in the GBSLEP area 10 Leisure hub: Gross Internal Floor Area 11,31m2 Cement relationship of Birmingham as a New Stadium place for top athletic and sporting events Increased student numbers 350 Table 2
15. As table 2 illustrates the majority of the LEP outputs are dependent on the achievement of Phase 2 hence the importance of our ongoing monitoring and evaluation beyond the life of the games. 16. The question of the wider benefits accruing to the region as well as to the GBSLEP area was raised at Leaders Briefing meeting and LEP Executive is seeking responses from WMCA and BCC and will report further on this issue. 17. The Full Business Case and Independent Technical Evaluation are available on request.
Key Issues
18. Realisation of the majority of the benefits are dependent on Phase 2 delivering as anticipated. Phase 2 cannot go ahead without Phase 1 being delivered. 19. The recommendation in this report is dependant on assurances being received that the model used is robust and the assumptions are transparent. Work is being undertaken to receive those assurances. 20. As mentioned above confirmation of the full funding package remains to be achieved with WMCA contribution being considered in November 2019. Funding is confirmed
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for CWG and BCC. It should be noted that all funding packages are required for the project to go ahead.
21. In terms of governance, GBSLEP has requested membership of appropriate governance boards. The principle of our ongoing involvement has been established but the details are to be confirmed.
22. Given its size and the timescale for delivery, there will inevitably be issues that will arise as the project progresses and the PDB and LEP Board will be advised of any financial, economic or reputational risks as they arise.
Conclusion
23. Given the importance of the CWG to the wider economic wellbeing of the region and its residents and the significance of the Alexandria Stadium as the centre piece of the games, Board Directors are asked to: • Note the views of Programme Delivery Board (PDB) and issues raised through Independent Technical Evaluation (ITE) and approve conditional allocation of £20,000,000 (twenty million pounds) capital funding to Birmingham City Council (BCC) to support the delivery of the Commonwealth Games (CWG) Alexandria Stadium. Approval to be given in line with the GBSLEP Assurance Framework. • The Board is further recommended to allocate the funding with the following conditions:
• Confirmation of West Midlands Combined Authority (WMCA) funding in November 2019. • Assurances received that the WMDIEM model used to calculation the Benefit Cost Ratio for phases 1 & 2 is robust and that the assumptions are transparent. • Representation of the LEP on the relevant CWG governance to ensure post games involvement in monitoring and evaluating the LEP contribution.
Report by: Sally Agass Interim Programme Director
Wendy Edwards Project Champion
Contact: [email protected] 07885 701002
Date Created: 19 September 2019
Appendices a. PDB Investment Report
11/09/2019 4 of 4 9a
GREATER BIRMINGHAM & SOLIHULL LEP REPORT FOR PROGRAMME DELIVERY BOARD
04 September 2019
LOCAL GROWTH FUND INVESTMENT REPORT COMMONWEALTH GAMES STADIUM
Recommendation
Additional information has been provided with regards to the Full Business Case (FBC) for the Commonwealth Games Stadium (CWGS) project and has reduced the risks and issues previously identified through Independent Technical Evaluation (ITE) to an acceptable level. It is therefore recommended that PDB; i. consider this investment report and the revised ITE (Appendix A) and make a recommendation to the GBSLEP Board to conditionally allocate £20,000,000 (twenty million pounds) to Birmingham City Council (BCC) for the delivery of the CWGS project. ii. Allocation should be conditional on; • Confirmation of WMCA funding in November 2019 • Approval of the overarching CWG Capital Programme change control principles and process to access the associated contingency • Confirmation Heads of Terms have been agreed between BCC and Birmingham City University’s (BCU) in relation to phase 2 and development of teaching facilities
Background 1. The FBC for the CWGS underwent ITE in June 2019 this identified a number of risks and issues, however, given the tight delivery programme of the project it was submitted to the 27 June 2019 Programme Delivery Board (PDB) for consideration.
2. PDB received a presentation from BCC and considered the ITE, given the number of red risks raised it was decided the FBC was not sufficiently developed to be submitted to LEP Board for decision therefore asked BCC to address the risks and issues raised and for the project to be resubmitted to the 4th September PDB
3. Subsequently BCC has undertaken further work and submitted additional information and clarifications which has been reviewed by the ITE, the report has now been revised accordingly with no red risks remaining.
4. Additional information provided includes;
a. An updated procurement and delivery programme
b. A breakdown of the Jobs outputs related to the economic modelling
CWG Investment Report 20190820 1 of 4 Item 4c
c. The schemes approach to improving skills
d. An overview of BCU’s aims for delivery of the Sports Science faculty at the site post CWG
e. Draft Change Control principles including access to the CWG capital programme level contingency (£20% (£14m)). This is to be approved end August 2019
f. The process and timeline for WMCA funds for the project, approval due November 2019
Case for change 5. The case for change was outlined in the previous Investment Report and is summarised as;
a. Alexander Stadium requires structurally upgrading to be able to accommodate increased visitor numbers to host the Commonwealth Games
b. The CWGS will provide an opportunity to showcase Birmingham as an international centre for track and field events, with appropriate facilities to host similar events for many years to come
c. Redeveloping the Stadium to accommodate the Games will enable Phase 2 which will provide a new leisure complex and accommodate the longer term ambitions of BCU Sport Science directorate to expand its offer including development of new student accommodation.
d. The new Stadium and phase 2 have the potential to be a catalyst for wider regeneration and further development opportunities in the local area
6. Draft Heads of Terms for a Call Option Agreement are in place between BCC and BCU in relation to a masterplan for the wider Alexander Stadium site as part of phase 2 to include provision of a site to accommodate student accommodation
7. Draft Heads of Terms are in place between BCC and BCU in relation to phase 2 and development of teaching facilities
Notes, Risks and Issues 8. The additional information and clarifications provided by BCC have reduced the red and amber risks in the ITE to 0 and there are 28 advisory notes, the revised ITE is attached as Appendix A.
9. In terms of economic impact and legacy the outcomes that return value for money are dependent on delivery of phase 2. This phase 1 project is an enable for delivery of phase 2.
CWG Investment Report 20190820 2 of 4 Item 4c
Milestones Milestone Description Date Demotion Works start September 2019 Demolition works complete February 2020 Construction Procurement commence January 2019 Construction contract award March 2020 Start of construction works April 2020 Practical completion December 2021
Outputs and Outcomes
Output Description A sports stadium which meets the requirements of the Games Ancillary facilities incorporating leisure and commercial facilities such as restaurants and conferencing Enabling works to facilitate Phase 2
Outcome Description Phase 1 Phase 2 Phase 1 Benefit Cost Ratio 1.27 (Low) 3.99 (high) New Jobs in the economy 51 135 Indirect new jobs in the GBSLEP area 10 Leisure Hub: Gross Internal Floor Area: 11,312m2 Cement reputation of Birmingham as a place for top New Stadium athletes and sporting events Increased student numbers 0 350
Funding Profile
2019/20 2020/21 2021/22 Total
Capital (GBSLEP) £20,000,000 £20,000,000 Capital (CWG funding) £2,187,000 £15,255,000 £92,000 £17,534,000 Capital (Combined Authority) £25,000,000 £25,000,000 BCC Prudential borrowing £10,000,000 £10,000,000 Total £2,187,000 £35,255,000 £35,092,000 £72,534,000
CWG Investment Report 20190820 3 of 4 Item 4c
Conclusions Additional information has been provided with regards to the FBC for the CWGS project and has reduced the risks and issues previously identified through ITE to an acceptable level. It is therefore recommended that PDB; i. consider this investment report and the revised ITE (Appendix A) and make a recommendation to the GBSLEP Board to conditionally allocate £20,000,000 (twenty million pounds) to BCC for the delivery of the CWGS project. iii. Allocation should be conditional on; • Confirmation of WMCA funding in November 2019 • Approval of the overarching CWG Capital Programme change control principles and process to access the associated contingency • Confirmation Heads of Terms have been agreed between BCC and BCU in relation to phase 2 and development of teaching facilities
Appendices Ref Commonwealth Games Stadium FBC Aecom Review A
Prepared by: Wendy Edwards
Reviewed by Russell Eacott/Sally Agass
Contact: [email protected] Mob no’ 07548 712827
Date prepared: 20 August 2019
Decision
The GBSLEP PDB has reviewed the investment report for Commonwealth Games Stadium and decided to;
Decision Comment/action Progress to GBSLEP Board Progress to GBSLEP Board with conditions Not Progress
Date:
Signed:
Print Name:
CWG Investment Report 20190820 4 of 4 Item 10
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19th September 2019
Creative Industries Delivery Plan
Recommendations
1. The Board is recommended to:
1.1. Approve the updated delivery plan (Appendix A), noting progress and risks.
1.2. Note the potential for revisions following the forthcoming launch of the new screen industry body for the West Midlands and delegate authority to the Business and Innovation Pillar Board to make any changes; and
1.3. Note that the potential for co-investment from partners will be explored to enable delivery of key actions region-wide.
Background
2. Since the Board approved the GBSLEP Creative Industry Delivery Plan in March 2018, the West Midlands Local Industrial Strategy (LIS) has been launched. From a creative perspective this consists of two components; an overarching market opportunity, ‘Creative content, techniques and technologies’ combined with a ‘West Midlands Creative Industries Delivery Plan’. Black Country Consortium are leading on the former and GBSLEP the latter.
3. Creative industries are a cross-cutting theme of Local Industrial Strategy. That is why the market opportunity, ‘Creative content, techniques and technologies’ maximises opportunities for creative businesses to act as enablers of growth across all sectors. This includes, for example, bringing ‘design thinking’ and new technologies, such as virtual reality, into manufacturing companies, enabling them to develop new products and services and expand their markets.
4. The LIS’s ‘West Midlands Creative Industries Delivery Plan’ will not only maximise the impact of the sector within the creative market opportunity, but also its eight broad actions will address challenges and enable growth within the sector itself. These include cross-sectoral innovation, new creative infrastructure, such as studio space, skills and talent development, business scale-up and cluster development. One of the actions, around cultural action zones, is included in our Place Delivery Plan.
5. GBSLEP’s own Creative Industry Delivery Plan has been revised in the light of the LIS and now has the same broad eight actions as the West Midlands Creative Industries Sector Delivery Plan (see Appendix A). GBSLEP’s delivery plan identifies four priority actions to focus on first, based on the current political push around ‘screen industries’ and available resources, for example, the low cost high impact intervention of cluster development. Where possible the actions in GBSLEP’s delivery plan will be scaled to regional level.
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6. The region’s growth opportunity across the creative industries builds on our nationally important games, TV, Film, Virtual Reality (VR) and Augmented Reality (AR) firms and expertise. Our nationally significant cluster of design, advertising and marketing companies, alongside our leading universities with a strong creative and design focus, underpins the wider creative market opportunity across the entire region.
Key Issues
7. The Business & Innovation Pillar Board endorsed an earlier draft of the refreshed Delivery Plan noting the need to prioritise the interventions that the LEP will undertake and to strengthen KPI monitoring and reporting.
8. The Delivery Plan has been reviewed in the light of the Pillar Board’s feedback, with four initial priority actions identified, all of which would benefit the region by being scaled to the wider West Midlands geography, and stronger KPIs developed.
9. A significant amount of activity is planned in Q3 and Q4 for which preparatory work has already been undertaken and additional targeted resource will be brought in to deliver.
10. The LIS action around Cultural Action Zones, is being taken forward in GBSLEP’s Place Delivery Plan.
11. INTERVENTION 1: Invest in creative & cultural Infrastructure
• The first phase will be to conduct an Infrastructure Mapping Study which will be tendered during Q3 for delivery in Q4 19/20. This will identify existing provision and gaps around co-working spaces, grow-on spaces, studios, post-production and VR/AR facilities, cluster ‘hubs’, and short-term production spaces.
• The second phase will be to develop a pipeline of potential projects by Q1 20/21 and co-fund at least one new work space project by Q4 20/21 or sooner if achievable.
12. INTERVENTION 2: Improve the effectiveness of the FE/HE/apprenticeship pipeline and career progression for current creative sector workers, the overall objective to develop a future pipeline and address shortages in diverse and suitably skilled creative and digital workers.
• Potential candidates are being explored for a GBSLEP Creative Industries Sector Skills Champion, and the shortlist will be considered by the nominations committee so an appointment can be made in in Q3 19/20.
• Intelligence gathering has begun to scope proposals to launch a Creative Industries Regional Skills Taskforce, reporting to the CA and the three LEPs. Terms of Reference will be completed Q3 19/20 but resources will need to be identified for it to launch by Q4 19/20.
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• Consortia are currently being sought to develop and run a pilot Multi-employer Model Apprenticeship for delivery from Q4 19/20.
• A pilot New Entrants Support Programme and models for a proposed Skills Passport are being developed with programme design and tendering to be completed by Q3 19/20 for delivery from Q4 19/20.
13. INTERVENTION 3: Launch Specialist Creative Sector Business Support focused on IP, scale-up and internationalisation
• Website content is being scoped to implement a Specialist Creative Support Pathway with signposting and information within GBSLEP’s Growth Hub, including 20 Mentoring Videos for delivery by Q4 19/20.
• A £1.3m Scale-Up Programme, managed via GBSLEP but running across the region, will launch to businesses in Q3 19/20 and will engage the investor community, so more angels will wish to invest in creative companies from Q4 19/20. A Programme Manager is in place and undertaking initial work to prepare for the launch.
14. INTERVENTION 4: Strengthen Creative Clusters, cross-regional working and promotion to stimulate opportunities and economic growth
• Film Birmingham Growth Pilot is live. It is developing new region-wide location service, promoting the region to high-end producers like Netflix at International events and developing a more sustainable funding model for these services going forwards.
• Procurement will commence in Q3 19/20 for a Cluster Excellence Toolkit providing a training and manifesto resource to enable sector organisations to optimise their services, professionalise their management and establish KPIs to maximise their business, cluster and broader economic impact across the region, for delivery from Q4 19/20.
• A Cluster Development Fund will be launched in Q3 19/20 with the opportunity for cluster organisations to bid for grants via a competitive process to help them professionalise their operations, services, effectiveness and sustainability, to stimulate the wider creative ecosystem and individual business growth.
• Creative cluster Data Services will be procured in Q3 19/20 to provide a new on- going real-time source of information to connect creative activity and events across the region for delivery from Q4 19/20. This will help establish an effective Creative ‘Super Cluster’ across the region.
• Creative Sector Promotional Plans are being rescoped by Q4 19/20
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Considerations
15. The activity highlighted above is currently focused on GBSLEP and funded by the Strategic Economic Plan (SEP) Enabling Fund, where funding is required. Some of the actions would benefit from co-investment from West Midlands Combined Authority and/or Coventry and Warwickshire LEP and Black Country LEP to enable delivery region-wide (e.g. work space Capital project (intervention one), the Skills Taskforce, Skills Passport pilot (intervention 2) and sector promotional plans (intervention 4)). The LEP Executive will explore the potential for this.
16. The Mayor of the West Midlands is launching a Screen Industry Body in October 2019. It is likely that this launch will include several interventions for the sector which may mean GBSLEP should review its funding allocated to the sector and the prioritisation of actions. It is proposed that any changes are agreed by the Business and Innovation Pillar Board.
Conclusions
17. The Board are asked to note the refreshed Delivery Plan and the key interventions proposed that represent a leading and crucial contribution to driving the GBSLEP and wider West Midlands growth opportunity in the core creative industries and in other industries for which creative skills and techniques are key to realising future growth.
Report by: David Furmage LEP Executive Officer, Creative Industries & Culture
Contact: [email protected]
Date Created: 11th Sept 2019
Appendices A GBSLEP Creative Industries Delivery Plan – Quarter 2 19/20 Update
11/09/2019 4 of 4 Appendix A GBSLEP CREATIVE INDUSTRIES DELIVERY PLAN – Quarter 2 2019/20 Update
GBSLEP interventions Market Milestones Success measures Lead(s) and LEP Q2 19/20 RAG failures/opportunities KPIs partners Resources Progress update 1. Invest in creative & Shortage of work Complete Existing provision GBSLEP to Tender £25K Q2-for GREEN cultural Industry spaces and Infrastructure made available in for Mapping Strategic delivery in ⃝ infrastructure infrastructure to Mapping Study - searchable form. Study Economic quarter 4 ⃝ support creative existing provision, Q3 19/20 Plan ⃝ sector growth, what is missing and Space needs and Enabling where opportunities development WMCA, CWLEP, Fund including short-term exist for the opportunities are BCLEP potentially (SEPEF) office, production, development of new identified, and a provide studio, co-working spaces/projects. pipeline of projects additional and ‘hub’ space Q4 19/20 start to get resource to developed. extend scope of study across WMCA
Winning bidder completes study Q4 19/20
Creative Sector Strong and Partners not yet Local Q2-not GREEN Spaces/Infrastructure prioritised pipeline identified as Growth applicable ⃝ Pipeline of potential of creative awaiting output Fund ⃝ projects by Q1 20/21 infrastructure of the mapping subject to ⃝ projects ready for study. availability Co-fund at least one future LGF infrastructure project by Q4 20/21 At least 1 project gets co-funding
page 1 GBSLEP Creative Industries Delivery Plan 11Sep19
GBSLEP interventions Market Milestones Success measures Lead(s) and LEP Q2 19/20 RAG failures/opportunities KPIs partners Resources Progress update Address shortage of Launch a Creative Identify industry GBSLEP leading GBSLEP Q2- 2. Improve the GREEN diverse talent and Industries Regional gaps and needs. for WMCA, Skills & Intelligence effectiveness of the ⃝ skilled & reskilled Skills Task Force CWLEP, BCLEP Creative gathering FE/HE/apprenticeship ⃝ creative & digital Bring creative sector working with Industries has begun to pipeline and career ⃝ workers Develop the scope, FE, HE and wide-ranging (CI) scope the progression for current purpose and Terms of Apprenticeship stake holders Executive taskforce’s creative sector workers Reference (TOR) for provision in-line with purpose. Skills Task Force industry needs resources Q3 19/20 to be identified
Appoint new GBSLEP GBSLEP will have a CI GBSLEP CI Q2- GREEN CI skills champion. Sector Skills and Skills Shortlisting ⃝ Q3 19/20 Champion Exec underway ⃝ ⃝
Develop and Pilot a More creative Partners to be £45K SEPEF Q2- for GREEN Multi-Employer businesses can identified delivery in ⃝ Model access ‘agile (developed Other quarter 4 ⃝ Apprenticeship digital/creative’ consortia failed, resources ⃝ Tendering done by apprentices new options to be Q4 19/20 being sought) identified
Pilot New Entrants New entrants Partners to be SEPEF Q2- for GREEN Support programme functioning better as identified £60K, delivery in ⃝ and models for a freelancers. Additional quarter 4 ⃝ proposed ‘Skills ‘Skills Passport’ ideas Resources ⃝ Passport’ developed. to be Programme design Creative SMEs confirmed Q4 19/20 tangibly helped to find new workers
page 2 GBSLEP Creative Industries Delivery Plan 11Sep19
GBSLEP interventions Market Milestones Success measures Lead(s) and LEP Q2 19/20 RAG failures/opportunities KPIs partners Resources Progress update Address unfulfilled Implement a Go Live with GBSLEP Growth Growth Q2-new 3. Launch Specialist AMBER potential for Specialist Creative Specialist business Hub, Hub, CI content for Creative Sector Business ⃝ innovation and Support Pathway support signposting exec, exec website Support focused on IP, ⃝ growth within creative with signposting and services B&I being scoped scale-up and ⃝ businesses due to lack information (GBSLEP internationalisation of specialist business Growth Hub) support Q4 19/20 Launch 20x scale-up videos Make mentoring videos available Q4 19/20
Address challenges in Implement Creative Pipeline of creative DCMS, WMCA, £1.3m Q2 Project GREEN scaling-up Creative Sector Scale-Up businesses are GBSLEP, CWLEP, DCMS, live, with full ⃝ businesses and programme, supported in their BCLEP, IPO, GBSLEP pm launch ⃝ enabling them to including ability to scale-up UKBAA, and other (hired Autumn ⃝ trade globally Internationalisation and develop new IP, delivery partners through 2019 enter new markets TBC CA), ci exec Q3 19/20 Programme and secure growth Mapping marketing goes live, funding study first cohort starts on contracted, programme Investor programme to identify increases number of scale-up Q4 19/20 Mapping angels investing in potential Study completes creative SMES businesses yielding new data to develop subsequent cohorts 4: Strengthen Creative Lack of understanding Cluster Excellence Sector WMCA, LEPs, SEPEF £20K Q2- for GREEN Clusters, cross-regional of the value of strong Toolkit Launched Intermediaries Sector delivery in ⃝ working and promotion to clusters and the need Training & marketing professionalised and Intermediaries, quarter 4 ⃝ to have effective tools more effective ⃝ professionalised (member surveys)
page 3 GBSLEP Creative Industries Delivery Plan 11Sep19
GBSLEP interventions Market Milestones Success measures Lead(s) and LEP Q2 19/20 RAG failures/opportunities KPIs partners Resources Progress update stimulate opportunities and sector intermediaries Tender Q3 19/20 economic growth to promote complete Q4 19/20 collaboration and build the sector. Launch Cluster Ecosystem GBSLEP and SEPEF Q2- for GREEN Development Fund – developed. Greater partners £100K delivery in ⃝ to professionalise collaboration. quarter 4 ⃝ intermediaries Professionalised ⃝ Tender Q3 19/20 services. Super Live by Q4 19/20 Cluster established
Lack of data about Procure creative Accessible data is GBSLEP and SEPEF c. Q2- for GREEN what is happening cluster Data Services widely available on partners £20K, ci delivery in ⃝ across the region’s Tender Q3 19/20 sector activity across exec quarter 4 ⃝ creative ecosystem Complete Q4 19/20 the region ⃝
Lack of region-wide Film Birmingham More production in GBSLEP, Film £80K SEPEF Q2- Project GREEN location services and Growth Pilot – live region. New Location Birmingham live and on- ⃝ unfulfilled High-End and continuing Services. (BCC) track ⃝ Production Sustainable Funding ⃝ Models Address barriers Creative Sector Creative Offer of WMGC, WMCA, CI exec Q2-not AMBER around the advocacy Promotional Plans West Mids promoted LIS commitment resources applicable ⃝ and promotion of our Rescope required on regional, national Unclear how this to be ⃝ creative industries Q4 19/20 and international can proceed at identified ⃝ stage present
page 4 GBSLEP Creative Industries Delivery Plan 11Sep19
Risk Register GBSLEP CREATIVE INDUSTRIES DELIVERY PLAN Description Responsible Probability Impact Mitigation Post-mitigation Critical issues / probability decisions Actions get implemented GBSLEP M M GBSLEP sector lead will L Seek support and co- sub-optimally because of lobby for widest support for funding from WMCA a lack of support and/or actions which would be and/or other LEPs at match-funding from better delivered 3-LEP wide, earliest available other partners. such as the work space time. Seek additional mapping study. support from senior GBSLEP team. Proves difficult to finalise GBSLEP M H GBSLEP seeks to get the L The alignment of consortia to run bids, strongest buy-in possible individual projects to Project partners such as the Multi- from consortia. It also meet partner outputs, Employer Apprenticeship develops alternative and LEP strategic aims Model consortia options. placed as a core condition of any
partnership, to ensure sustainability. Challenge getting Local GBSLEP, WMCA, H H Good communication from M Seek support and co- Industrial Strategy CWLEP, BCLEP, GBSLEP on actions required funding from WMCA actions, that have been other partners and effective leverage of key and/or other LEPs at nominally agreed across influencers to maximise the earliest available the region, funded so chance of success. GBSLEP time. Seek additional they can start has a plan to implement in support from senior GBSLEP sub-region only as GBSLEP team. fallback position. Delays in delivery of GBSLEP M M Effective project L Strong project contracts and management to be in place monitoring and Project partners compromises in quality of with clear milestones set. management outputs procedures in place
page 5 GBSLEP Creative Industries Delivery Plan 11Sep19
Agenda item 13
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD
19 September 2019
Plan 10,000 Plus – Progress Update
Recommendations
Board Directors are asked to:
1. Note the progress in the development of the ‘Plan 10,00 Plus’ which aims to increase the cohort of learners commencing NVQ 3+ qualifications in the Greater Birmingham and Solihull LEP area; 2. Approve the high-level project plans for each of the workstreams (see Appendix A); and 3. Approve the detailed budget to support the delivery of the Plan (see Appendix B). 4. Note the risk register that has been developed (see Appendix C)
Background
5. GBSLEP has a longstanding ambition to close the gap between the qualification levels of working-age residents at NVQ Level 3+ (A-levels and vocational equivalents and higher) to those of the national average. This responds to increasing employer demand for higher skilled staff in order to remain competitive in the face of economic changes, and to help drive economic growth and productivity levels. Both the Employment and Skills (ESB) Board and main LEP Board have agreed that a greater intensity of activity needs to be undertaken to achieve this ambition to address the skills gaps.
6. The LEP Board received a report from the ESB on 6 June 2019 that detailed the development of a “Plan 10,000 Plus” with eight key areas of concentrated focus to increase the cohort of learners commencing NVQ 3+ qualifications in the Greater Birmingham and Solihull LEP area. The eight key workstreams are: • Apprenticeship Hub – Increasing Apprenticeship starts and supporting employers through the apprenticeship process • Growth Hub – Improving skills related support to businesses via the GBSLEP Growth Hub • Work Academies – Increasing the number of Work Academies and employer-led short courses in the LEP geography • Strategic Leadership – Strengthening GBSLEP strategic leadership and cross-institution collaboration • Joint Provider Planning – Future planning of apprenticeship provision with regional training providers • Graduate Attraction – Increasing the number of graduates resident in the region. • Adult Participation – Increasing post-24 year old levels of upskilling with focus on those in employment.
19 September 2019 1 of 3 Agenda item 13
• Experimental Approaches – Increasing the number of new skills approaches to meet emerging and predicted skills needs.
7. In line with the GBSLEP Strategic Economic Plan (SEP) the “Plan 10,000 Plus” will focus on the key economic sectors identified in the SEP.
8. The LEP Board approved, in principle, for £1.93 million of funding from the Strategic Economic Plan (SEP) Enabling Fund to be set aside to enable delivery of the Plan 10,000 Plus. This decision was formally noted by the Supervisory Board.
9. The Board requested that an update on the ‘Plan 10,000 Plus’ be provided in September with further detail on the interventions proposed and the £1.93m budget required to realise the ambition of the plan.
Key Issues 10. The ESB members utilised a large part of their Board meeting on 5 July 2019 to discuss the interventions in greater depth and seek additional suggestions from the Sector Skills Champions and Local ESB Leads to develop the themes further.
11. To further develop the programme of work, the ESB members agreed that working groups should be set up for the first four intervention workstreams due to commence in the ‘Plan 10,000 Plus’ 3-year timescale i.e. Apprenticeship Hub; Skills for Growth Hub; Work Academies and Strategic Leadership
12. The early establishment of the Strategic Leadership theme (which is intended to strengthen GBSLEP strategic linkages and cross-institution collaboration) will help identify potential new funding streams, policy changes, emerging risks as well as potential areas of expansion.
13. Individual ESB members volunteered to lead on each of these four working groups. For the Apprenticeship Hub the lead is the Independent Training Provider representative, Skills for Growth the Hub Life Sciences representative, Work Academies the FE representative and Strategic Leadership the acting Chair and BPFS representative. The ESB requested that the membership be extended to include volunteers from the Local ESBs and external representatives and project partners with key relevant knowledge or expertise. It is important that, as much as possible, there is a good sectoral and geographical spread of members across the groups.
14. Terms of Reference were agreed for the first four working groups which are due to meet in September/October. Additional development of this programme of work will be undertaken by the ESB and LEP Executive over the next few months in order to produce detailed action plans for each of the eight work streams. Updates from the working groups will be reported back to the next ESB planned for 05 November 2019 with delivery due to start commencement in Quarter 4 2019/20
15. Subsequent working groups will be established for the additional four interventions in the Plan 10,000 Plus well ahead of their individual delivery commencement.
16. High-level project plans for the eight work streams are attached as Appendix A. Sections of some of the work streams, such as the Apprenticeship and Skills for Growth Hub will run through the full timeline of the Plan 10,000 Plus. We expect these project plans to develop over time with the input of the ESB and task and finish groups. The Apprenticeship Hub is due to launch in Quarter 1 2020/21, Skills for
19 September 2019 2 of 3 Agenda item 13
Growth Hub and Work Academies in Quarter 4 2019/20, whilst the Strategic Leadership workstream has already commenced with the establishment of a West Midlands LEPs skills group.
17. Granular budgets have been developed to demonstrate the use of £1.93m SEP Enabling Funding across the 3 year duration of the ‘Plan 10,000 Plus’ and for the additional Employment & Skills Executive resource to support this delivery. This has also been aligned with planned yearly expenditure for each of the eight interventions. These are attached at Appendix B. The Apprenticeship Hub is the workstream with the greatest funding allocated to it and is expected to deliver the largest number of Level 3+ starts. The Skills for Growth Hub has already received £260,000 funding from BEIS. Of the overall budget, 37% is to be used as grant funding, 32% for staffing costs for the Apprenticeship and Skills for Growth Hub, and 20% for LEP Executive staffing costs. The remaining 11% will be used for marketing, research, expenses and evaluation.
18. In addition, a risk analysis has been undertaken see Appendix C [NB this needs some further development]. This highlights the key risks and how they are being mitigated.
Conclusion
13. Reflecting the importance and ambition of the Plan 10,000 Plus, updates and progress will be reported by the ESB to the LEP Board periodically. Skills shortages are a major factor limiting the growth of our key economic sectors. Delivered successfully, the Plan 10,000 Plus will have a considerable positive impact on these barriers.
Report by: Paul Edwards, Head of Strategy
Contact: [email protected] 07712 436969
Date Created: 30 August 2019
Appendices a. Plan 10,000 Plus Gantt Chart b. Plan 10,000 Plus Budget c. Plan 10,000 Plus Risk Register
19 September 2019 3 of 3
Appendix a. GBSLEP Plan 10,000 Plus Gantt Charts
1. Apprenticeship Hub
Project Schedule Financial years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Job Adverts Submit ESF Bid Job Interviews Website Apprenticeship Growth Plan Hub Launch Apprenticeship Week campaign Marketing campaign Meetings and Brokerage with Employers Referrals to training provides Employer mentoring scheme 1000 Key sector apprenticeship starts Progress Review 3000 Key sector apprenticeship starts 5000 key sector apprenticeship starts Evaluation
2. Skills for Growth Hub
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Staff Recruitment Staff Induction with Growth Hub Team Marketing activity & website development Events Meetings and Brokerage with Employers (TNAs) Referrals to other projects / activity Data analysis Review Progress Evaluation
3. Work Academies
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Work Academy Funding Call 1 Work Academy Funding Call 2 Work Academy Funding Call 3 Work Academy Funding Call 4 Review Revenue Funding Call 1 Revenue Funding Call 2 Evaluation
4. Strategic Leadership
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group WM LEP Skills Group Digital Infrastructure
5. Provider Planning
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Key Sector Provision Mapping Key sector provider and employer workshops Project Review Employer & Provider needs monitoring Evaluation
6. Graduate Attraction
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Calls for graduate/SME job matching schemes Call for resident mentoring scheme 1000 further graduates working in the region Top city for graduate retention outside of London Increase of students who return to region to work after graduation to 55% Evaluation
7. Adult Learners
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Call for Pilots Pilots Launch Project Review Evaluation
8. Experimental Approaches
Financial Project Schedule years 2019/20 2020/21 2021/22 2022/23 Timescale Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Working Group Ministerial Facetime Calls for Pilots 1 Launch of Pilot 1 Programme review Call for Pilots 2 Launch of Pilots Evaluation
Item 14
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
20th September 2019
GREATER BIRMINGHAM AND SOLIHULL LEP JOINT SCRUTINY COMMITTEE ANNUAL REPORT 2018/19
Recommendations
Board Directors are asked to: 1. Note the Greater Birmingham and Solihull LEP Joint Scrutiny Committee’s Annual Report 2018/19.
Background
2. The Greater Birmingham and Solihull Local Enterprise Partnership Joint Scrutiny Committee (GBSLEPJSC) first convened on 29th October 2014. The Joint Scrutiny Committee has since convened each municipal year since on a regular basis to fulfil its overview and scrutiny role of the Greater Birmingham and Solihull LEP.
Key Issues
3. The GBSLEPJSC remit requires that it demonstrates it is delivering robust scrutiny of the GBSLEP’s governance, finance and risk arrangements as well as its programme delivery. Scrutiny of these areas is undertaken with a view to identifying tangible outcomes and actions to assist in ensuring that the GBSLEP continues to be fully compliant with its duties in the above areas. 4. All future GBSLEPJSC annual reports will continue to detail the principle GBSLEP activities scrutinised during the municipal year and the outcomes and actions arising.
Conclusion
5. Taking into account the Joint Scrutiny Committee’s remit and overarching scrutiny role of the LEP, it is good governance practice for an annual report to be produced by the Joint Scrutiny Committee and reported to the GBSLEP Board annually.
Report by: Paul Rogers Democratic Services and Scrutiny Officer Contact: [email protected] 0121 704 6550 Date Created: 05/09/2019
Appendices a. Greater Birmingham and Solihull Joint Scrutiny Committee Annual Report 2018/19
11/09/2019 1 of 1 Greater Birmingham & Solihull Local Enterprise Partnership Joint Scrutiny Committee
Annual Report 2018/19
Content Page
1. A Message from the Chairman 1
2. The Greater Birmingham and Solihull LEP and Scrutiny – Our Role 2
3. Greater Birmingham and Solihull LEP Joint Scrutiny Committee 3-4
4. People 5-6
5. Governance 7-11
6. Strategy 12
7. Scrutiny and Public Engagement 13
8. Highlights 2018/19 14-20
9. Scrutiny Resources 21
10. Risks 21
11. Performance 22
12. What’s Next for the GBSLEPJoint Scrutiny Committee in 2019/20 ? 22-23
13. Acknowledgements 24
1 A Message from the Chairman
Welcome to the first annual report from the Greater Birmingham and Solihull Local Enterprise Partnership Joint Scrutiny Committee (GBSLEP Joint Scrutiny Committee). This Annual Report summarises the activities and features for the Joint Scrutiny Committee in the 2018/19 municipal year.
The GBSLEP Joint Scrutiny Committee first met on 29th October 2014. Today, the role of the GBSLEP Joint Scrutiny Committee is to review the LEP’s delivery of projects on the ground (such as physical infrastructure. skills training and provision of support services to businesses in the GBSLEP area) and to ensure that fiscal, risk and assurance arrangements are in place and updated as necessary to ensure the sound and robust management of the LEP’s funding. The LEP must comply with central government statutory guidelines for operating as a LEP as well as the governments review ‘Strengthening LEPs’’ Review.
The Joint Scrutiny Committee is comprised of nine Members from those local authorities comprising the GBSLEP geographic area. The principle role of the Joint Scrutiny Committee continues to be to scrutinsie the LEP’s project delivery performance, risk management and fiscal governance arrangements and the continued delivery of its Key Performance Indicators.
The Joint Scruitiny Committee is not funded directly to undertake the overview and scrutiny role of the GBSLEP. I wish to place on record my thanks to Solihull Metropolitan Borough Council, particularly to Democratic Service & Scrutiny Officer Paul Rogers for their administrative support during the year.
The Joint Scrutiny Committee’s focus during the 2018/19 municipal year was to review a number of the LEP’s key policy delivery themes, particularly their delivery on the ground, which are referenced in this report. The key theme for the Joint Scrutiny Committee during the 2019/20 municipal year will be to assess the success of the LEP in delivering its key projects and targets identified to date and to identify the tangible outcomes and impact they have had in communities throughout the GBSLEP region..
The Joint Scrutiny Committee established fundamental governance and working arrangements during the 2018/19 municipal year, which has placed it in a good position for a productive 2019/20.
Finally, I wish to thank the former Chairman of the GBSLEP Joint Scrutiny Committee, Councillor Nigel Knowles, and all those Members that served on the Joint Scrutiny Committee during the 2018/19 municipal year.
Councillor Sheila McKiernan
Councillor Shelagh McKiernan Chair, Greater Birmingham and Solihull Local Enterprise Partnership Joint Scrutiny Committee (2019/20)
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2 The GBSLEP Joint Scrutiny Committee - Our Role
The Greater Birmingham & Solihull Local Enterprise Partnership (GBSLEP) is one of 38 Local Enterprise Partnerships established by the Government to drive economic development across England. Established in May 2011, the GBSLEP covers the geographical boundaries of the local authorities of Birmingham, Bromsgrove, Cannock Chase, East Staffordshire, Lichfield, Redditch, Solihull, Tamworth and Wyre Forest.
The GBSLEP Joint Scrutiny Committee is comprised of a Councillor from each of the above local authorities. The Joint Scrutiny Committee Chairman and Vice Chairman are elected annually at the first meeting of the new municipal year, usually in July, by the Joint Scrutiny Committee Members.
The principle role of the Joint Scrutiny Committee is to provide independent Scrutiny of the delivery activities and performance of the GBSLEP; and to specifically review the effectiveness of the implementation of the Strategic Economic Plan.
The Joint Scrutiny Committee adheres to set terms of reference, which define the role and purpose of the Joint Scrutiny Committee. The terms of reference are reviewed and agreed annually by the Joint Scrutiny Committee at the beginning of the new municipal year.
Members also established a three year forward work programme, which was agreed at its meeting held in September 2018. The Joint Scrutiny Committee convenes four times per municipal year (May to April) and has agreed a schedule of meetings to March 2021. The Joint Scrutiny Committee may invite guests and expert witnesses from both the public and private sector to attend their meetings to provide additidnal insight, information and expertise for the subjects under review.
The Joint Scrutiny Committee established a number of fundamental governance improvements in 2018, namely the establishment and approval of the three year forward work programme and a three-year schedule of forward meeting dates. These measures have placed the Joint Scrutiny Committee in a strong position to ensure its scrutiny role continues to be robust, relevant and timely in focussing on the GBSLEP’s delivery priorities, governance arangements and financial management. All GBSLEP Joint Scrutiny Committee meetings take place in the Civic Suite, Solihull Council.
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Local Enterprise Partnerships: Location Map for England (As at 2018/ 2019)
There are 38 Local Enterprise Partnerships across England. They are business led partnerships between local authorities and local private sector businesses. They play a central role in determining local economic priorities and undertaking activities to drive economic growth and job creation, improve infrastructure and raise workforce skills within the local area. LEP boards are led by a business Chair and board members are local leaders of industry, educational institutions and the public sector.
Following the government's Strengthened Local Enterprise Partnerships review which sought to ensure that all businesses and communities are represented by one Local Enterprise Partnership, the map below is currently under review as LEPs work to eliminate overlap areas. It will be amended when all overlaps have been agreed and confirmed with the respective LEPs and the Cities and Local Growth Unit (CLGU).
Credit: lepnetwork website https://www.lepnetwork.net/
The core area of Birmingham and Solihull has a population of 1.3 million and contains many of the economic drivers of the conurbation such as the airport in Solihull, Birmingham city centre, a number of major universities and international meeting places. Constituent Local Authorities are: Birmingham, Solihull, Cannock Chase, East Staffordshire, Lichfield, Tamworth, Bromsgrove, Redditch, Wyre Forest
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1. Black Country 2. Buckinghamshire Thames Valley 3. Cambridgeshire & Peterborough 4. Cheshire & Warrington 5. Coast to Capital 6. Cornwall and Isles of Scilly 7. Coventry and Warwickshire 8. Cumbria 9. Derby, Derbyshire, Nottingham, Nottinghamshire 10. Dorset 11. Enterprise M3 12. GFirst 13. Greater Birmingham & Solihull 14. Greater Lincolnshire 15. Greater Manchester 16. Heart of the South West 17. Hertfordshire 18. Humber 19. Lancashire 20. Leeds City Region 21. Leicester & Leicestershire 22. Liverpool City Region 23. London 24. New Anglia 25. North East 26. Oxfordshire 27. Sheffield City Region 28. Solent 29. South East 30. South East Midlands 31. Stoke-on-Trent and Staffordshire 32. Swindon and Wiltshire 33. Tees Valley 34. Thames Valley Berkshire 35. The Marches 36. West of England 37. Worcestershire 38. York, North Yorkshire and East Riding 4
3 Greater Birmingham and Solihull LEP Joint Scrutiny Committee Members 2018 - 2019
Councillor Shelagh McKiernan (Vice Chairman) Councillor Nigel Knowles Richard Cox East Staffordshire District Council Wyre Forest District Council (previous Chair) Lichfield District Council
Councillor C. Allen-Jones Bromsgrove District Council Councillor Tony Johnson Councillor John Cotton Cannock Chase District Council City Council
Councillor Michael Rouse Councillor James Burn Councillor Richard Kingstone J.P Redditch Borough Council Solihull Metropolitan Borough Council Tamworth Borough Council
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4 People
The GBSLEP Joint Scrutiny Committee is comprised of nine Councillors from local authorities across the West Midlands region (Birmingham, Solihull, East Staffordshire, Wyre Forest, Lichfield, Bromsgrove, Cannock Chase, Redditch and Tamworth). Each Council appoints its own Councillor to the Joint Scrutiny Committee annually, normally following the Annual General Meeting of Council, which takes place in May/June. Councillors serve for one municipal year and are then either re-elected to the JOINT SCRUTINY COMMITTEE or replaced with another Councillor.
Members of the Committee elect the Chairman and Vice Chairman annually at the first meeting of the new municipal year, held in July.
The Committee may invites guests and expert witnesses to attend meetings to provide further evidence and information for the subjects under discussion at the meetings. Guests may come from the public, private and voluntary sector. All of the meetings are held in public session and members of the public and other organisations are welcome to observe.
During 2018/19, the Joint Scrutiny Committee was attended by LEP representatives and consultants to present reports and provide further evidence. In 2019/20, the Joint Scrutiny Committee will be seeking to expand the number of guests and witnesses attending the Committee from outside the LEP, to include private, public and voluntary sector representatives. The Committee will also seek to invite LEP Board representatives to attend future meetings of the Joint Scrutiny Committee in 2019/20.
The Joint Scrutiny Committee has recognised that delivering effective, robust and worthwhile scrutiny of any LEP is a significant task. The complexities involved across the range of LEP business, from commissioning projects, funding arrangements, policy and strategy formulation, delivery and complying with legislative and governance requirements. To this end, Members of the Joint Scrutiny Committee recognised during 2018/19 that to provide Members with the best chance opportunity of providing an effective scrutiny function, some form of Member induction for new Members was required. This was especially significant in light of the refresh of the composition of the Joint Scrutiny Committee at the beginning of each new municipal year. Members access to learning and development opportunities throughout the year were also identified as a means of further supporting Joint Scrutiny Committee Members scrutiny of the LEP and to this end consideration will be given to developing a LEP related Member development programme during 2019/20.
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5 Governance
The GBSLEP Joint Scrutiny Committee has well established governance arrangements, which are reviewed regularly.
The Committee has put in place a forward meetings schedule up to March 2021 and has established a forward work programme.
Both the GBSLEP Joint Scrutiny Committee Chairman and Vice Chairman are elected annually by Members of the Committee.
The Joint Scrutiny Committee has a duty to deliver overview and scrutiny of the GBSLEP’s delivery performance, governance and risk management arrangements and financial management. The Joint Scrutiny Committee seeks to ensure that there is accountability, transparency and accessibility around GBSLEP decision making and whether those decisions are leading to tangible benefits in the LEP region.
The above arrangements for the Joint Scrutiny Committee reflect the Centre for Public Scrutiny’s four principles of good scrutiny:
• Provides critical friend challenge to executive policy and decision makers
• Enables the voice and concerns of the public
• Carried out by independent minded councillors
• Drives improvement
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Greater Birmingham and Solihull LEP Joint Scrutiny Committee Terms of Reference 2018/2019
1. Governance
The Joint Scrutiny Committee will act as a Joint Committee under sections 101, 102 Local Government Act 1972 and s 21 Local Government Act 2000 (as amended).
1.2 Access to Meetings
Normal rules apply as to public access i.e. as a Joint Committee the public has access except for exempt business.
1.3 Host Authority
1.3.1 The Joint Scrutiny Committee will be hosted under local government arrangements by Solihull Metropolitan Borough Council.
1.3.2 Solihull Metropolitan Borough Standing Orders will apply to the Joint Scrutiny Committee (save for section 5 below).
1.3.3 The Host Authority will also provide section151 and Monitoring Officer roles to the Joint Scrutiny Committee as required.
2. Objectives of GBSLEP Joint Scrutiny Committee
2.1 To provide independent Scrutiny of the activities of the GBSLEP; specifically, to review the effectiveness of the implementation of the Strategic Economic Plan in accordance with the agreed Forward Work Programme.
3. Membership
3.1 9 Members in total comprising:
3.1.1 Provide for one member from Birmingham City Council, one member from Solihull Metropolitan Borough Council and one each from the seven districts. Appointments to the GBSLEP Joint Scrutiny Committee will be made by the councils concerned.
3.1.2 Power for the GBSLEP Joint Scrutiny Committee to co-opt other members as it sees fit [this can include further councillors but also covers ability to co-opt members from the private sector etc.]
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4. Voting
4.1 One member one vote for local authority members.
4.2 No ability to vote for non-local authority members or Members co-opted to the Joint Scrutiny Committee.
4.3 Conflicts of Interest will be dealt with in accordance with the Members Code of Conduct of the Host authority.
5. Quorum
5.1 Four GBSLEP Joint Scrutiny Committee members must be present at the formal meetings of the GBSLEP Joint Scrutiny Committee in order to be quorate.
6. Meetings
6.1 The GBSLEP Joint Scrutiny Committee Chairman will be elected at the first meeting of the GBSLEP Joint Scrutiny Committee each municipal year. A Vice Chairman shall also be elected at the same meeting.
6.2 The GBSLEP Joint Scrutiny Committee will convene a minimum of four times in a municipal year.
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GBSLEP Joint Scrutiny Committee Work Programme 2018 - 21
2018/19 2019/20 2020/21 Reports for Scheduling Scrutiny of Policy Making Scrutiny of Policy Delivery Evaluation in the Work Programme
Review of the Greater Birmingham Review of the Greater Birmingham Evaluation of the GBSLEP Skills Advanced Manufacturing and Solihull LEP Joint Scrutiny and Solihull LEP Joint Scrutiny Delivery Plan Delivery Plan Committee Terms of Reference Committee Terms of Reference Evaluation of the GBSLEP Place Emerging & Disruptive GBS LEP Review of Governance & Review of the GBSLEP Joint Scrutiny Making Delivery Plan Technologies Delivery Plan Accountable Body Arrangements Committee Work Programme 2019 – (including potential impacts on 2021 Evaluation of the GBSLEP Business, the current regional workforce) Future Focus of the Greater Professional & Financial Services Birmingham & Solihull LEP Progress in Delivering the GBSLEP Delivery Plan Skills Delivery Plan (focussing on Skills Delivery Plan delivery and outcomes arising GBSLEP Thematic Delivery Plan for GBSLEP Performance Review through the 10,000+ Skills Skills GBSLEP Annual Delivery Plan for 2020/21 Scheme as the main focus of 2019/20 enquiry) GBSLEP Joint Scrutiny Committee Outcomes of the GBSLEP Annual Forward Work Programme 2018 – Progress in Delivering the Place Conversation (including the GBSLEP West Midlands Industrial 2021 Making Delivery Plan Assurance Statement) Strategy: The GBSLEP’s role with delivering the industrial GBSLEP’s Place Making Delivery Governance and Programme strategy and addressing the Plan Monitoring for Enterprise Zones: impact and outcomes arising Audit of Procedures and Processes from industrial strategy Review of the GBSLEP Joint Scrutiny implementation across the Committee Work Programme 2018 – GBSLEP Key Performance Indicator GBSLEP region 2021 (KPI) Suite
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Strengthened Local Enterprise GBSLEP Joint Scrutiny Committee Partnerships – Implications for Annual Report 2018/19 GBSLEP GBSLEP Joint Scrutiny Committee GB&SLEP Business, Professional Forward Work Programme and Financial Services Delivery Plan Business, Professional & Financial Strengthened Local Enterprise Services Delivery Plan Partnerships Progress Report and Forward Plan GBSLEP 2019/20 Performance Review Progress with the GBSLEP Review Outcomes of the GBSLEP Annual E.U. Exit Preparations Conversation, including GBSLEP Assurance Statement Local Growth Fund Programme Update Outcomes of the Accountable Body Audit (including the Growth Deal and Enterprise Zone Programmes)
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6 Strategy The GBSLEP Joint Scrutiny Committee has established a three year forward work programme, based on annual themes of policy making, policy delivery and evaluation. The basis for the Joint Scrutiny Committee’s lines of enquiry across the three themes is:
Year 1- Policy Making • What policies are being developed and taken forward by the GBSLEP and why • Are they addressing the right priorities across the LEP region?
Year 2 - Policy Delivery • Are the policy themes effective in meeting objectives and business/community needs?
Year 3 - Evaluation • How effective and what difference have the LEP’s programmes made for business and communities across the GBSLEP region? • Have the projects been delivered to budget • What added value has project implementation brought to business, industry and communities in the LEP region?
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7 Scrutiny and Public Engagement
During 2018/19, the Joint Scrutiny Committee put in place a solid foundation to take the GBSLEP Scrutiny function forward in terms of its governance arrangements. The Joint Scrutiny Committee established its future meetings programme, forward work programme and reviewed its terms of reference to take the Joint Scrutiny Committee up to March 2021.
To build on its strong governance and work programming arrangements, Members of the Joint Scrutiny Committee have agreed that to fully engage with the LEP’s objectives and delivery programme across the LEP region, there was significant opportunity for the Joint Scrutiny Committee to foster greater public engagement and communication with those businesses, communities and organisations both receiving and seeking LEP support across a variety of needs. Members will be looking for opportunities during the year ahead to visit LEP project sites and meet with business and community representatives who have engaged with the LEP through the LEPs project pipeline delivery programme. Members have also recognised the different characteristics, challenges and needs communities face in larger, urban conurbations and more rural town centres. The Joint Scrutiny Committee started exploring these differences during its meetings of 2018/19, primarily through scrutiny of the Skills Delivery Plan and, in March 2019, the newly launched Town and Local Centres Strategy. The Joint Scrutiny Committee will be seeking to further explore the different demands placed on the LEP to successfully address issues such as access to appropriate skills training for young people, town centre regeneration and improving pathways to employment/re-training across the LEP patch and to establish how the LEP’s respective strategies and delivery programmes have been successful in addressing such disparate needs.
Members will be seeking to identify clear recommendations and actions arising from all future Joint Scrutiny Committee meetings which will lead to positive and tangible outcomes. The Committee’s objective is to contribute towards making a difference for the benefit of residents, local businesses and industry across the LEP region.
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8 Highlights 2018/19
During 2018/19, the GBSLEP Joint Scrutiny Committee reviewed arrange of issues, which included:
GBSLEP REVIEW OF GOVERNANCE AND ACCOUNTABLE BODY ARRANGEMENTS
The Joint Scrutiny Committee learned that the governance and accountable body review had been undertaken to address two recommendations arising from the Governments Deep Dive of the GBSLEP undertaken in January 2018, which were to review its governance arrangements (including the relationship between the LEP Board, Supervisory Board and LEP Joint Scrutiny Committee), and secondly, to review the LEP’s accountable body arrangements.
It was understood that the Government’s LEP accountable body guidance had been fully adopted and applied across the GBSLEP, Pillar and Supervisory Board operations. The LEP’s website reflected the new governance and accountable body practices. The GBSLEP had reviewed its relationship with Birmingham City Council as the accountable body, which included consideration of how best to focus the LEP’s future direction.
Other pertinent areas for review and comment were:
• Transparency arrangements
• The basis for LEP decision making processes
• Access to LEP Board decision making and transparency
• Funding of LEP programmes
• Project selection mechanisms for LEP funding and implementation and related private sector involvement in the project assessment process; and,
• LEP composition and membership arrangements.
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Members noted that it was beyond the remit of the Joint Scrutiny Committee to address how LEP priorities were taken forward, as it was frequently difficult for local Councillors to establish what was happening across the entirety of a LEP region at the local authority level. It was further raised that disparities in access to resources, including staff and budget, across different local authorities frequently made it difficult for some authorities to either initiate or support LEP projects, which in turn could act as a brake for further potential inward investment for the area concerned. However, the Joint Scrutiny Committee recognised that there was an inherent challenge for LEP’s to address the degree of separation that existed between LEP’s and local authorities, with the LEP’s role being that of a commissioner.
THEMATIC DELIVERY PLAN FOR SKILLS
The Joint Scrutiny Committee reviewed the delivery status of the thematic GBSLEP Skills Delivery Plan. The plan identified five key challenges where the GBSLEP could make a substantive difference through a range of interventions it had identified. The key challenges were recognised as:
• Insufficient numbers of young people choosing to study or train in areas relevant to growth sectors;
• Gaps in opportunity to progress through higher / advanced levels of study in subjects relevant to growth sectors;
• Inadequate employer support for those studying or in work to progress to higher / professional levels;
• Lack of co-ordination between employers, supply chains and providers in order to nurture and source talent locally; and,
• Inadequate focus on broader skill development in order to support people access higher level employment.
The Joint Scrutiny Committee established that a number of key challenges had been present across the West Midlands region for decades, which were both deep seated and complex.
The LEP had access to data for the regions demographic profile, health outcomes, skills profile etc. A Local Employment Skills Board was also in place, which included school and college representation. Further to the skills agenda, the GBSLEP was linked with the WMCA and local authorities across the West Midlands region. Members learned that in instances where local authorities or other organisations approached the LEP with project proposals, the LEP would seek to support them through their respective LEP Boards, after two qualifying questions had been met, which were:
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• How sustainable was the proposal / project?
• What was the scalability of the project?
The proposal would have to satisfy both questions on a LEP / regional scale before progressing
In terms of employers relocating to the GBSLEP region, the LEP had a role to play in drawing business leaders and providers together to explore the business opportunities available within the LEP region. The LEP recognised the need for greater dialogue between private sector organisations and skills providers in the LEP region and regular meetings were supported to this effect.
PLACE MAKING DELIVERY PLAN
Members welcomed a number of witnesses to the Joint Scrutiny Committee meeting who took Members through a report on the Place- Making Delivery Plan.
The GBSLEP had established a number of areas of place-focussed market failure and opportunities which would impact regional growth sectors. In summary these were:
• Insufficient key employment sites constraining growth
• Energy infrastructure constraining growth across key industries
• Towns and Local Centres support
• Housing stock – supply and affordability
• Key cultural aspects to attracting and retaining talent
The delivery plan identified initial interventions designed to bring about a step-change in each of the areas, and focused on interventions where the GBSLEP could lead, rather than simply support.
Detailed within the report Members also had sight of the Place Making Delivery Plan, Towns & Local Centres Framework and Housing Framework.
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Members received a presentation from Dean Piper, Head of Economic Prosperity, Cannock Chase District Council (member of the Town and Local Centres Working Group) and Mike Parker, Corporate Director of Economic Prosperity and Place, Wyre Forest District Council (Chair of the Housing Framework Working Group).
A number of points were raised by the Joint Scrutiny Committee, including the need to balance property price increases (arising from regeneration initiatives and related inward investment to an area) against the fact that increased property prices did not always benefit the wider community, especially in terms of affordability for young people and families. The Joint Scrutiny Committee further raised the prospect of such local housing economies displacing local people from their local areas, leading them to seek cheaper housing options in other locations. Members highlighted examples of modern town centres such as Bromsgrove, where housing development was taking place which was affordable for local people, and anticipated seeing town centres with greater focus on ‘liveability’ features and leisure activities.
It was concluded that the development of town centres would allow for the upgrading of the public realm, with Brindley Place in Birmingham cited as an example of this. Members further discussed the barrier to developing housing, which included developers stockpiling land, a shortage of construction skills and materials and the limited powers local authorities had to resolve these issues.
GBSLEP BUSINESS, PROFESSIONAL AND FINANCIAL SERVICES (BPFS) DELIVERY PLAN
The BPFS Plan was recognised by the LEP as an important constituent sector of the local economy. The BPFS sector was currently considered to be relatively self-sufficient, with the LEP addressing three areas which it felt it could support, namely Artificial Intelligence (AI), Finance Technology (FinTech), Universities and the Cyber Security sector.
In relation to the large auditing companies (i.e. the ‘big four’), and the GBSLEP’s working relation to them, Members queried what the LEP’s position was towards audit companies, particularly with regard to the scale of fees charged. The LEP’s view was also sought particularly in respect of audit companies that had appeared to fail in applying sound and robust auditing practice in companies which had been subject to on-going audit over a substantial number of years.
Scrutiny Members were advised that following a number of high profile public sector failures, the ‘big four’ audit companies were subject to intense, on-going scrutiny via the Financial Services Authority (FSA) and Parliamentary Select Committees.
At the time the Joint Scrutiny Committee was held, the audit sector in the United Kingdom was still awaiting the conclusions and outcomes arising from a major review undertaken by the accounting watchdog, the Financial Reporting Council (FRC). The FRC was reviewing auditor independence, audit quality, the needs of investors and rules on assessing a company’s long-term viability.
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Members noted the detail within the report which stated that the BPFS accounted for 56% of net employment growth in the GBSLEP region during 2010-2014 and established that the GBSLEP Sector Plan recognised the inclusive growth sector was an extremely important factor in delivering wider, regional economic growth across the West Midlands. Many components had a part to play in delivering successful inclusive growth, some of which included embedding companies in the right geographical areas, recognizing the diversity of regional labour markets and the range of employment and growth opportunities which attracted individuals and companies to the West Midlands region. The emerging West Midlands Industrial Strategy also addressed these factors. It was recognised that new companies to the region would bring their own labour sources and talent to varying degrees. The role of the LEP was seen as continuing to deliver improved and sustainable employment opportunities for local people.
In the case of the BPFS sector across the GBSLEP boundary, the Joint Scrutiny Committee learned that the main constraint for economic growth was that the local economy was not inclusive enough. Diversity in the West Midlands region was seen as potentially a very strong economic driver. Company Board Rooms also increasingly recognised that diversity was very important for generating wider, inclusive economic growth, company profits and supporting continued business innovation in the region.
Members of the Joint Scrutiny Committee questioned whether attitudes in respect of diversification of the workforce had yet spread beyond the larger cities and into smaller, rural economies and whether salary levels for BPFS careers were strong. The Committee was advised that jobs in the BPFS sector were frequently higher value jobs than their equivalents in other sectors. How far prospective employees were prepared to travel from rural areas to cities remained unknown. What was recognised, however, was that the issue of quality of life for some was a great determinant as to where they were prepared to work and how far they would travel to access employment opportunities? From the GBSLEP perspective, the issue of connectivity for employment opportunities via transport infrastructure was extremely important and recognised as a vital component in supporting further business growth. PROGRESS WITH THE LEP REVIEW
Undertaking its scrutiny role in respect of governance and performance, the Joint Scrutiny Committee reviewed progress with implementing the LEP reviews recommendations. The Joint Scrutiny Committee learned that requirements arising from the LEP Review included:
1. LEP’s had to demonstrate that they were fit for purpose.
2. LEP’s were constituted as Ltd Companies by guarantee and were subject to some aspects of local government legislation.
3. LEP’s had to be seen to deliver the highest standards of accountability and transparency.
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In respect of ‘fit for purpose, a requirement was placed on LEP Boards to have 66% Board representation from the private sector. The GBSLEP’s private sector representation stood at 60%. The GBSLEP Board was keen to review its Board composition in respect of private sector representation and gender balance. The Scrutiny Board was advised that of 18 GBSLEP Board Directors, 3 were women, which was recognised as insufficient and not representative.
It was further reported that only one local authority had put forward a female candidate for consideration for GBSLEP Board membership. In terms of private sector representation, Members were advised very few women put themselves forward for consideration for Board positions generally, including for LEP Board positions.
The Joint Scrutiny Board sought clarification as to whether affirmative action could be applied through the GBSLEP governance model to address the current gender imbalance of the GBSLEP Board. Members suggested exploring the option of reserving a set number of GBSLEP Board positions for women only. Members recognised that non-equitable female representation through Board positions was not applicable to the private sector only. Although the GBSLEP Board had the opportunity to introduce significant change with the composition of its Board membership, it was recognised the LEP needed its significant partners to engage with and progress this area of representation.
It was noted that the Government had moved to address the issue of female LEP Board representation through the National Local Growth Assurance Framework, which placed a requirement on LEP’s to report to government annually. The GBSLEP Board had reported a target of 33% of LEP Board positions being held by women by 2020. The GBSLEP also had to demonstrate to government what actions it was taking to deliver the target. With regard to the composition of the West Midlands Combined Authority Board, Members noted that only three of the thirty Board positions were currently held by women.
Another significant aspect of GBSLEP ‘fit for purpose’ criteria was reported to involve LEP geography, specifically the issue of LEP boundary ‘overlaps’. Government was seeking to remove LEP boundary overlaps. Members were advised that the GBSLEP rejected the Government’s position regarding LEP overlaps, as substantial economic data specific to the West Midlands region demonstrated definitive economic benefits arising from overlap arrangements for the GBSLEP. It was highlighted that any potential severing of links between District and County Councils would also be detrimental. For example, the GBSLEP Board continued to invest in transport infrastructure projects across its area through a number of County Councils
Members of the Scrutiny Board highlighted that a key component for maintaining equity across the GBSLEP region was the continued delivery of LEP projects and investment in the Shires and not only in the conurbations of Birmingham and Solihull. Members noted that there had been clear benefits arising from GBSLEP investment for many communities attributable to maintaining the GBSLEP boundary overlap.
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The GBSLEP advised Members that the issue was rated as a high priority on the GBSLEP risk register against continued delivery of live projects. The GBSLEP Joint Scrutiny Committee concluded to recommend to the LEP Board that in order to increase female representation from Councils and representation in general, LEP Board and Supervisory Board members should be drawn from all political parties and not only from the ruling Group in each constituency. Members also placed on record the GBSLEP Joint Scrutiny Committee’s support for the GBSLEP’s actions to deliver 33% female GBSLEP Board representation by 2020.
CORRESPONDENCE
In June 2018, on behalf of the GBSLEP Joint Scrutiny Committee, the GBSLEP Joint Scrutiny Committee Chairman wrote to Andrew Griffiths MP (former Under Secretary of State, Department for Business, Energy and Industrial Strategy) and Jake Berry MP (former Parliamentary Under Secretary of State (Ministry of Housing, Communities and Local Government), raising a number of issues, which addressed:
• Scrutiny, monitoring and accountability arrangements in relation to holding the private sector to account for LEP Capital programme spend and how best to deliver best practice in this field through a revised LEP Board structure.
• Tackling issues of housing supply and affordability through housing associations, local authority planning powers, private developers and Local Plans. The current role and remit of the GBSLEP in providing new housing stock and the constraints that the LEP has to work within.
• Public sector auditing arrangements undertaken by the ‘big 4’ audit companies and the effects of failed public sector contracts to the detriment of public sector organisations and the wider public.
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9 Scrutiny Resources
In respect of the Joint Scrutiny Committee itself, the Committee operates without a supporting budget to support its activities. Continued support for the Committee is supplied by Solihull Metropolitan Borough Council in the form of officer time for hosting the formal Joint Scrutiny Committee meetings, liaising with Joint Scrutiny Committee Members and working with the GBSLEP in respect of on-going work programming and agenda planning requirements for the four scheduled Joint Scrutiny Committee meetings each municipal year.
Going forward, the Joint Scrutiny Committee will be seeking to identify budget to facilitate Member site visits across the LEP region in support of the Committee’s work programme, to provide Joint Scrutiny Committee Members with LEP related learning and development opportunities and to provide induction for new Members to the Joint Scrutiny Committee at the beginning of the 2020/21 municipal year.
10 Risks
Future risks for the continued successful delivery of scrutiny through the GBSLEP Joint Scrutiny Committee have been recognised as including:
• Prospective Government led reviews for future LEP arrangements (for example, the LEP cross boundary issue) and for LEP scrutiny functions • Restricted access to financial information, risk management arrangements, suitable prioritisation of the Joint Scrutiny Committee forward work programme and access to witnesses. • Member continuity with the annual change of membership leading to the accompanying potential for the loss of scrutiny expertise and knowledge • Securing adequate resourcing to support the future development of the GBSLEP Joint Scrutiny Committee leading to improved ways of delivering effective scrutiny for benefit to residents, businesses and the GBSLEP
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11 Performance
The GBSLEP Joint Scrutiny Committee successfully delivered its scheduled meetings programme for 2018/19. During 2018/19, the Joint Scrutiny Committee delivered 14 of 17 reports scheduled in the forward work programme, with all three outstanding reports successfully rescheduled to later meetings in the three year work programme.
The GBSLEP Joint Scrutiny Committee scrutinised a range of issues fully addressing the scope of the Joint Scrutiny Committee’s remit, including GBSLEP delivery plans, governance arrangements, European Union exit reparations, scheme funding across the GBSLEP region and the Local Growth Fund.
Looking forward, the Joint Scrutiny Committee will be seeking greater engagement with the GBSLEP concerning project budget spend, risk arrangements, review of the GBSLEP Key Performance Indicator suite on an exception reporting basis, Section 151 LEP assurance sign off arrangements for the 2019/20 financial Year, outcomes of the GBSLEP Annual Conversation and the delivery role of the GBSLEP in delivering the West Midlands Industrial Strategy. In addition, they will keep abreast of and make appropriate recommendations on LEP Governance and Review reports.
12 What’s Next for the GBSLEP Joint Scrutiny Committee in 2019/20?
Work Programme
Looking ahead to the 2019/20 municipal year, the Joint Scrutiny Committee will amongst other topics be considering the following matters:
• Progress in Delivering the Place Making Delivery Plan
• Governance and Programme Monitoring for Enterprise Zones: Audit of Procedures and Processes
• GBSLEP Key Performance Indicator (KPI) Suite
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• Business, Professional & Financial Services Delivery Plan
• GBSLEP 2019/20 Performance Review
• Outcomes of the GBSLEP Annual Conversation, including GBSLEP Assurance Statement
• Outcomes of the Accountable Body Audit (including the Growth Deal and Enterprise Zone Programmes)
Learning and Development
Joint Scrutiny Committee Members have also discussed the possibility of implementing a future annual induction workshop for all new Members to the Joint Scrutiny Committee, as well as providing wider LEP scrutiny related learning and development opportunities through the course of the municipal year.
Member Site Visits
GBSLEP Joint Scrutiny Committee Members have expressed interest in visiting GBSLEP project sites between formal sittings of the Joint Scrutiny Committee. Members are keen to seek wider public engagement with residents, community groups and businesses in the GBSLEP region and will give further consideration to facilitating such site visits during 2019/20.
Attendance at GBSLEP Joint Scrutiny Committee Meetings
Members of the Joint Scrutiny Committee were appreciative of the support they received through guests and witnesses attending their meetings during the 2018/19 municipal year. Building on this support, Members are seeking to encourage wider attendance at future meetings, including GBSLEP Board Members
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13 Acknowledgements
Members of the Greater Birmingham and Solihull Joint Scrutiny Committee wish to thank those LEP representatives who contributed evidence and provided support to the Joint Scrutiny Committee during the course of the 2018/19 municipal year.
• Dean Piper, Head of Economic Prosperity, Cannock Chase District Council (member of the Town and Local Centres Working Group)
• Mike Parker, Corporate Director of Economic Prosperity and Place, Wyre Forest District Council (Chair of the Housing Framework Working Group)
• Nick Glover: (former) Executive Manager, Greater Birmingham & Solihull Local Enterprise Partnership
• Paul Edwards: Head of Strategy, Greater Birmingham & Solihull Local Enterprise Partnership
• Hilary Smyth-Allen: Business, Professional and Skills Sector Champion – Greater Birmingham Solihull Local Enterprise Partnership
• Lada Zimina: Project Support Officer - Greater Birmingham and Solihull Local Enterprise Partnership
• Councillor Julian Grubb (Redditch Borough Council) (GBSLEP Joint Scrutiny Committee Substitute Member)
• Councillor Karl Macnaughton (Solihull Metropolitan Borough Council) (GBSLEP Joint Scrutiny Committee Substitute Member)
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Useful Online Information
Greater Birmingham and Solihull LEP Joint Scrutiny Committee: Access to Agenda, Reports and Future Meeting Dates http://eservices.solihull.gov.uk/mginternet/ieListMeetings.aspx?CommitteeId=471
Greater Birmingham and Solihull LEP Website http://centreofenterprise.com/
The (national) LEP Network Website https://www.lepnetwork.net/
Department for Business, Energy & Industrial Strategy https://www.gov.uk/government/organisations/department-for-business-energy-and-industrial-strategy
West Midlands Industrial Strategy https://www.wmca.org.uk/what-we-do/industrial-strategy/
Gov.UK Local Industrial Strategy West Midlands: Progress Statement https://www.gov.uk/government/publications/local-industrial-strategy-west-midlands-progress-statement
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Item 15
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19th September 2019
GBSLEP Annual Conference 2019
Recommendations Board Directors are asked to:
1. Note progress toward planning the GBSLEP Annual Conference 2019; and 2. Comment on direction of travel and make suggestions as to how best the Conference can be used as a platform to promote the GBSLEP’s key messages.
Key Issues Annual Conference timings
3. The Annual Conference will take place on 27th November 2019 at the CBSO centre in Birmingham.
4. Suggested timing of the conference is as follows:
Arrivals – 8:00am Exhibition – 8:00 – 9:00am Conference – 9:00am – 10:45am Breakout sessions – 11:00am – 12pm Media interviews for speakers & Directors – 11:00am – 12:00pm Exhibition continues, further networking and refreshments – 10:45am -12:00pm
5. Analysis of feedback from last year’s conference revealed that attendees would have liked the option to attend separate sessions on their specific areas of interest in order to gain more from their attendance. Therefore, this year the conference will include sector/topic specific ‘breakout’ sessions following the main conference proceedings. These sessions will be targeted at industry attendees who will be able to register for these sessions in advance. This will provide a good opportuntity for GBSLEP to consult business on elements of the Local Industrial Strategy for the West Midlands, and our high growth industries.
Annual Conference theme
6. This year’s conference, intended for local businesses as well as public and education sector partners, will focus on ‘delivering our potential’. It will seek to answer the question ‘How can we build on our heritage, expertise and creativity to deliver long-term economic success that benefits everyone who lives and works in the region?’
1 of 3 03/09/2019 7. Key messages will include:
i) Strong delivery of GBSLEP’s Growth Programme and sector delivery plans is realising tangible benefits for local businesses and residents. ii) Our economy is growing, and the region has a strong strategy supported by detailed evidence. iii) There are significant opportunities that Greater Birmingham, and the wider West Midlands, is ideally placed to capitalise on. iv) In the context of the West Midlands Local Industrial Strategy, the LEP will play a key role in in supporting the growth of our key sectors. v) We’ll work together with our partners to continue to grow Greater Birmingham into a globally connected, pioneering city-region despite an uncertain political and economic climate.
8. The objectives for the conference are for the audience to leave with a clear sense of GBSLEP’s distinctive role, how we add value, and to be impressed by how much GBSLEP delivers. We also want attendees to understand the ways in which they can engage with the LEP going forward and for them to feel a desire to do so.
Audience
9. The intended audience for the conference is our key stakeholders across the public, private and education sectors.
10. 2018’s conference attracted 250 attendees and saw a split of approximately 60:40 split across public/education sector and private sector.
11. The intention for 2019 is to attract 300 attendees and to increase the ratio of private sector attendance. The desire is to use the conference to engage with more businesses, more intimately. The LEP Executive will focus on attracting midsize businesses from across our geography, particularly those operating within one of key sectors.
12. Board Directors are asked to identify key individuals who should be encouraged to attend, and to support promotion of the conference proactively via their networks. Promotional materials and suggested social media posts will be circulated following the Board meeting.
Exhibition
13. The venue has space for up to 10 trestle table and banner spaces in the main foyer area. A range of GBSLEP supported projects from across the geography will be invited to attend, as well as businesses with innovative services/technologies to demonstrate.
Content
14. All content should reflect the LEP’s core purpose and provide clarity on the LEP’s role to the audience. The conference agenda will include an address from both the GBSLEP Chair and Director, as well as video content to showcase a variety of GBSLEP funded projects and their beneficiaries across the geography.
15. Given the timing of the conference, the content of the conference will need to respond appropriately to the national context, in particular developments in relation to Brexit and the potential impact on the economy. Therefore, whilst all content will be planned in advance, the Executive recognises the need to be fluid in responding to changes.
16. The suggested approach for a keynote address will be to invite a senior representative from a national institute such as Institute for Economic Development (IED), or Institute for Fiscal Studies 2 of 3 03/09/2019 (IFS), or to invite a relevant politician. The keynote speaker must be able to speak credibly about regional growth in a post-Brexit environment.
17. The conference will feature a panel session and separate Q&A session. The intention is that the panel will comprise of business leaders and representatives from our key growth sectors. Representatives from local authorities, higher education and further education partners will be invited to participate across the panel and Q&A sessions to enable us to demonstrate our partnership working. Board Directors are asked to make recommendations of individuals to invite to panel and Q&A sessions.
Conclusion
18. The Annual Conference provides an important opportunity to communicate the GBSLEP’s key messages to stakeholders and local businesses and to engage with them on the LEP’s agenda. Directors are asked for their input into shaping the agenda, to help make the event as interesting, relevant and successful as possible.
Report by: Katie Fulcher
Stakeholder Engagement Manager
Contact: [email protected]
Date: 03/09/2019
3 of 3 03/09/2019 Item 16B
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD
19 SEPTEMBER 2019
2018/19 STATUTORY ACCOUNTS PREPARATION AND AUDIT – AUDITOR APPOINTMENT
Recommendations The LEP Board is recommended to: 1. Approve the re-appointment of Dains Accountants, 15 Colmore Row, Birmingham, as the auditors for the 2018/19 statutory accounts for GBSLEP Ltd.
2. Note the timetable for the preparation and audit of the 2018/19 statutory accounts.
3. Note the planned establishment of the Audit & Risk Committee in late September/early October.
4. Note the planned consideration of the 2018/19 accounting policies and accounts presentation format by the new Audit and Risk Committee in late September/early October, and agree to consider the Committee’s recommendations by written procedure in early October.
5. Note the intention for the Board to receive the audited accounts for consideration at the November Board meeting.
Background 6. The Board approved draft accounts for the five financial years 2013/14 to 2017/18 at the March 2019 Board meeting. The 2017/18 accounts were then signed and filed with Companies House. 7. Revised accounts for the four years 2013/14 to 2016/17 are being presented to the Board for approval (see separate paper). 8. Dains Accountants in Birmingham were appointed to prepare and audit these five sets of statutory accounts. 9. The year-end of the company was changed to 31 March, from 31 May, as from 2019 so the 2018/19 statutory accounts will be for the 10 months from 1 June 2018 to 31 March 2019. 10. A tendering process was undertaken in July/August to identify the firm of auditors to be appointed for the 2018/19 audit.
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Key Issues Appointment of Auditors for Statutory Accounts 2018/19 11. Following the tendering process, Dains Accountants in Birmingham are recommended to the Board for re-appointment to prepare and audit the 2018/19 statutory accounts for GBSLEP Limited.
12. Dains Accountants are the preferred firm of auditors based on the following strengths over other bidders: • Previous experience preparing and auditing year-end accounts of not-for- profit organisations • Previous experience preparing and auditing the last five years’ statutory accounts of GBSLEP Limited • Familiarisation of the key business and accounting matters of GBSLEP Limited • Availability of the same audit partner, audit manager and audit senior that undertook the preparation and audit of the historic accounts of GBSLEP Limited • Ability of the audit resources to undertake the work in the required timescale • Value for money of the quoted audit fee
13. The Board is asked to approve the appointment of Dains Accountants in Birmingham to prepare and audit the 2018/19 statutory accounts for GBSLEP Limited.
14. In future years, the new Audit & Risk Committee will consider the appointment of auditors and recommend to the Board for approval. In lieu of the Committee having been established, the Chair, Pat Hanlon and Cllr Ian Courts have been consulted on the proposed recommendation prior to it being presented to the Board and were all supportive of it.
15. It is intended to retain KPMG to calculate corporation tax due for 2018/19 and to submit the tax return and agree with HMRC.
Timetable for Audit of Statutory Accounts 2018/19 16. Provided Dains Accountants are appointed for the preparation and audit of the 2018/19 accounts by the Board at this meeting, the following timetable is proposed for the key activities and deliverables: • By 4 October – Audit & Risk Committee established, first meeting held, accounts format and accounting policies agreed. An update on membership of the Committee will be provided at the Board meeting. It is intended that Committee members will be appointed for circa nine months only to enable membership to evolve to include any new Board Directors appointed who have the appropriate skills and to allow for a wider recruitment exercise.
• By 11 October – LEP Board agreed accounts format and accounting policies by written procedure
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• By 11 October – LEP Executive obtained and reviewed the 10 months’ income, expenditure and year-end balances and supporting documentation from Birmingham City Council (BCC) Finance department
• 14 October – 1 November - Audit work carried out
• 11/12 November – Audit & Risk Committee considered the draft accounts
• 21 November – LEP Board approval of audited accounts
• By 31 December – signed accounts filed at Companies House
17. The accounting policies to be presented to the Audit & Risk Committee and then to the Board by written procedure for approval will include the following: • Grant income recognition • Other income recognition • Interest income recognition • Grant expenditure • Taxation • Presentation of statement of comprehensive income • Fixed asset capitalisation and depreciation • Debtors • GPF and Mezzanine Fund loans • Cash and cash equivalents • Creditors • Financial instruments • Pensions • Reserves
18. In future years, the new Audit & Risk Committee will consider the accounting policies to be applied before the start of each financial year. The Board will then be asked to approve them.
19. The Board is asked to note the timetable for the preparation and audit of the 2018/19 accounts, particularly the planned establishment of the Audit & Risk Committee in late September/early October; the planned agreement of the 2018/19 accounting policies and accounts presentation format by the new Audit and Risk Committee in late September/early October, and by written procedure with the Board in early October; the planned date of 21 November 2019 for presentation of the audited accounts to the LEP Board for approval.
Conclusions 20. Auditors need to be appointed to prepare and audit the statutory accounts for the 10 months to 31 March 2019.
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21. A tendering process has been undertaken and the LEP Executive recommends that Dains Accountants are re-appointed.
22. It is planned that the new Audit & Risk Committee meets in early October and recommends the 2018/19 accounting policies for approval by the LEP Board by written procedure.
23. It is also planned that the audited accounts will be presented to the Audit & Risk Committee on 11/12 November and to the LEP Board for approval at their meeting due to be held on 21 November 2019. The deadline for filing is 31 December 2019. 24. The Chief Operating Officer will take responsibility within the LEP Executive for the preparation and satisfactory audit of the 2018/19 statutory accounts.
Prepared for: Katie Trout LEP Director
Contact: [email protected] / 07825 318250
Date Created: 06 September 2019
4 of 4 Item 17
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19 September 2019
FUTURE OPERATING MODEL IMPLEMENTATION
Recommendations
1. Board Directors are asked to: a) Note the update on the implementation of the Future Operating Model; and b) Review and note the matters and issues identified in Appendix A in relation to the Transfer Agreement and the embedded Accountable Body Agreement. Background 2. At its meeting on 27 March 2019, the GBSLEP Board approved proposals for its future operating model (FOM). Key features of the FOM were as follows: • GBSLEP Ltd to become a fully active and independent company limited by guarantee; • GBSLEP Ltd to hold its revenue funding, and to manage it through processes and procedures to be agreed by the LEP Board; • Birmingham City Council (BCC) to be asked to continue to be the LEP’s Accountable Body for all capital funding; and • BCC to be asked to commence the formal consultation on the TUPE transfer of staff to GBSLEP Ltd. 3. The Board agreed that the effective implementation of the new model should be 01 July 2019. 4. Since that meeting, Directors have received updates on the implementation of the FOM at each of their Board meetings. On 18 July 2019, it was reported that as of 01 July, GBSLEP Ltd had become a fully active and independent company; the LEP has its own bank account and has received its first drawdown in revenue; new contracts were being procured in the LEP’s name; and new IT, finance and HR systems were in place. 5. The Board was, however, advised that it had not been possible to complete the TUPE transfer of staff by 01 July as hoped. This was because the LEP was waiting for the actuarial assessment from the West Midlands Pension Fund (WMPF) which would advise on company contributions and also on the level of bond that may need to be put in place in order for Admitted Body status to be secured. This information was received just prior to the Board meeting and Directors noted that the FOM Committee would take forward outstanding issues relating to the Pension Fund, and the signing of the Transfer Agreement, as per previously agreed delegations. 6. This report provides an update on developments since then, focusing specifically on: progress in securing Admitted Body Status to the WMPF; the TUPE transfer of staff; and approval of the necessary legal documentation.
11/09/2019 1 of 6 Item 17
Key Issues Admitted Body Status to the WMPF 7. In order for GBSLEP to gain Admitted Body Status to the WMPF, the lodging of a guarantee and a bond are required. 8. Within the WMPF, all members have a responsibility to pick up deficits of other organisations should they cease operation and they have a deficit. By having BCC as guarantor this then protects the other members within WMPF. BCC Cabinet agreed to provide a guarantee for GBSLEP in May 2019. 9. Whilst WMPF does not require a bond to be in place, this is something that BCC requires to cover the LEP’s commitments during the period that it is an Admission Body. Following actuarial valuations, WMPF confirmed the bond value required as £177k. 10. Several bond providers were contacted but only one bank come back with a firm proposal. They offered the bond at a charge of 2.2% of the bond value charged in quarterly instalments. There was an additional £150 set up cost plus £100 to take a charge over the equivalent cash sum. 11. Given the value of the required bond, and the set-up and management costs, an alternative proposal was put to BCC that they ringfence £177k of GBSLEP funds and provide the bond on behalf of GBSLEP. The benefits of this approach being that it would save GBSLEP the cost of securing a bond via a commercial route and interest on the sum would be accrued as it would be held in accordance with BCC Treasury Management Policy. It should be noted that a benefit of going with a commercial provider would be that GBSLEP would have access to the £177k which will not be the case with BCC. 12. Following consideration by the FOM Committee, it was agreed that BCC should be asked to hold the required amount in an account for GBSLEP. This was approved by the Chief Finance Officer. The sum will be reviewed every three years, or at pension valuation date and the amount will be maintained at that recommended within the valuation report. The funds will not be released by BCC unless an alternative bond is put in place or should the council no longer be required to act as guarantor for the company in their Admission Body Status with the WMPF. 13. With the guarantor and bond on place, GBSLEP’s request for Admission Body Status is progressing. A draft Admission Agreement between GBSLEP Limited (“Admission Body”), BCC (“Scheme Employer”) and Wolverhampton City Council (“Administering Authority”) has been received and commented upon. The final document is awaited for signing. Transfer of Staff 14. In light of the progress made with the WMPF, BCC was content to proceed with the TUPE transfer of the LEP Executive. BCC fully engaged with the trade unions as part of the consultation process and it is understood that pension status was the main issue that they raised. 15. Having not been able to meet the 01 July transfer date as originally envisaged, it was hoped that everything would be in place for a 01 August transfer. However, unfortunately not all the legal documentation was fully agreed in time. Rather than transfer mid-month and risk the chance of anomalies in pay (the team would receive half their pay from BCC and half from GBSLEP, and their national insurance, pension contributions etc would be split), it was agreed that the transfer should happen on 01 September instead.
11/09/2019 2 of 6 Item 17
16. The benefit of this was that it also meant a much simpler transition for finance as close down could happen at the end of August with BCC and a fresh month started with the new GBSLEP system. 17. The TUPE transfer of 17 staff happened as scheduled on 01 September, following the signing of the necessary legal documentation (see below). Relevant employee data and records from BCC systems are due to be transferred to GBSLEP. Signing of the Transfer Documentation 18. A suite of documents have been produced that underpin the transfer of functions between BCC and GBSLEP and aspire to provide greater clarity around roles and responsibilities. They reflect the outcome of extensive discussion between GBSLEP, BCC Legal Services and Bevan Brittan (representing GBSLEP). 19. The main document is the Transfer Agreement which details the assets being moved from BCC to GBSLEP including finance, data and people. It includes indemnities to be provided by both parties. 20. The Accountable Body Agreement is appended to the Transfer Agreement and provides greater clarity and transparency about the role of the Accountable Body. It is intended to provide freedom for GBSLEP to make its own decisions on operational and revenue matters, but to provide the S151 Officer with the assurance and information required to discharge their duties. 21. Appended to the Accountable Body Agreement are documents that further clarify roles and responsibilities, specifically the Assurance framework, Section S151 role, Joint working protocol and the Accountabilities matrix. 22. The draft Transfer Agreement with its supporting schedules was considered by the FOM Committee in July. Further discussions were had with BCC Legal as a result and amendments made to a small number of clauses. The full documents are available for review on request. 23. Appendix A sets out key matters and issues for the Board to be aware of from the Transfer Agreement and the embedded Accountable Body Agreement. The approach taken with Bevan Brittan was to put in place corresponding indemnities for GBSLEP and BCC wherever appropriate. The LEP’s insurance has been updated to provide cover, including having a ‘professional and legal liability’ insurance and ‘trustees and individual liability’ insurance policy in place. Given the number of employees transferring and the value of contracts novating, the overall risk to GBSLEP Ltd was deemed to be low. 24. The final documents were signed by Tim Pile and Cllr Ian Courts on behalf of GBSLEP. The transfer documents were dated on 01 September 2019, completed and exchanged. Conclusions 25. Whilst there are still some elements of the FOM to implement, including signing the formal agreement to join the WMPF, the majority of it is complete and becoming business as usual. This presents the start of a new and exciting era for GBSLEP and one in which Directors and officers will be keen to start realising the benefits of the new operating model. 26. The implementation process has been complex and not without its challenges. The LEP Executive would like to thank the FOM Committee for its support, guidance and decision- making during the process and also BCC officers from Finance, HR and Legal who worked hard to ensure a smooth transition.
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Report by: Katie Trout, Director and Edward Scutt, Head of Governance
Contact: [email protected] [email protected]
Date Created: 05/09/2019
Appendices a. Matters and Issues in relation to the Transfer Agreement and the embedded Accountable Body Agreement
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Appendix A
Matters and Issues for the Board to be aware of from the Transfer Agreement and the embedded Accountable Body Agreement
Transfer Agreement • Agreement includes provision for the transfer of the benefit and burden of transferring contracts. It anticipates that these will be transferred by Novation, but this cannot be guaranteed so there may be a run off period where the contracts have to be operated by Birmingham City Council (BCC), which will add to the overhead and administrative burden for both parties. The number and value of contracts to novate is relatively low as the Agreement only relates to revenue contracts. • GBSLEP has to indemnify BCC against any claim by any Transferring Employee that any proposed or actual substantial change by GBSLEP to the Transferring Employees' working conditions or any proposed measures of GBSLEP are to that employee's detriment whether such claim arises before on or after the Transfer Date. • In relation to the Pension Fund set up within the Local Government Pension Scheme, GBSLEP is required to have in place a bond or guarantee to support the Partner Admission Agreement to the scheme, in a form acceptable to BCC and the Fund. GBSLEP will be required to make actuarial valuations of the Fund available to BCC in respect of the GBSLEP employees, whilst GBSLEP has employees in the scheme and BCC is guarantor. Any replacement scheme is required to offer benefits broadly comparable to the Local Government Pension Scheme. • In respect of Indemnities from BCC there are some notable exclusions, covering:
o Direct Losses incurred as a result of any act or omission wilful default negligence of the GBSLEP its officers or employees prior to the Transfer Date, including but not limited to: . all and any liabilities relating to or arising from the Baskerville House Infrastructure; and . all and any financial liabilities, including but not limited to VAT and tax, relating to or arising from any accounting treatment applied to all financial accounts and records held and administered by BCC in connection with the activities for the GBSLEP prior to 1 April 2019. • GBSLEP is required to indemnify BCC - against all Direct Losses incurred or sustained by BCC after the Transfer Date arising from any act or omission, wilful default, negligence of GBSLEP, its officers, or employees (as the case may be) in connection with the GBSLEP’s activities prior to or after the Transfer Date except for those Direct Losses incurred as a result of any act or omission wilful default, negligence of BCC, its officers, or employees (as the case may be). Similarly GBSLEP is required to indemnify BCC in respect of any liability arising under contracts entered into by BCC as accountable body for the GBSLEP before and or after the Transfer Date arising as a result of GBSLEP’s default or resulting from any act or omission, wilful default, negligence of GBSLEP, its officers, or employees (as the case may be) in connection with the GBSLEP’s activities prior to after the Transfer Date except for those Direct Losses incurred as a result of any act or omission wilful default, negligence of BCC as accountable body, its officers, or employees (as the case may be).
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Accountable Body Agreement • Accountable Body Agreement runs to the 31st March 2021, unless the parties agree to an extension or the GBSLEP moves to another Accountable Body. • GBSLEP is required to ensure that when it allocates Funding or otherwise deals with it that it is done in such a way that it does not breach the terms and conditions upon which BCC as Accountable Body received the Funding for the purposes of GBSLEP. In addition, GBSLEP is required to seek and heed the advice of BCC (as the Accountable Body) prior to committing Funding relating to capital expenditure only to ensure monies are used appropriately. To ensure that this happens in a timely and efficient manner a Finance and Legal Services Joint Working Protocol is in place. The intention is to update this over the next few months to ensure that it is as effective and comprehensive as possible. • GBSLEP is required to promptly notify BCC in writing if it becomes aware that there are any material inaccuracies in information provided to BCC relating to Projects. The Joint Working Protocol needs to establish Service Levels and processes here, setting out expectations of BCC. • The Agreement sets out in high level terms only, the role of the S151 Officer in relation to revenue. More details will be included in the revised Joint Working Protocol. • BCC has the right to audit GBSLEP activities in relation to Funding. • The Agreement recognised that Interest which may accrue on the Funding, shall be held by the Accountable Body in accordance with BCC’s Treasury Management policy approved by the Council as amended by from time to time and transferred to GBSLEP from time to time. From the point of view of Cash Flow Management alone, GBSLEP and BCC need to arrive at an agreed timetable for this transfer. • GBSLEP is required to pay to BCC an annual fee in relation to the reasonable costs incurred by BCC taking its role as Accountable Body in accordance with this Agreement. There is no audit or review process recognised in the Agreement and the GBSLEP Executive need under the Joint Working Protocol to agree a timeline and a methodology, so this can be recognised in budgetary planning.
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GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19 September 2019
GOVERNANCE
Recommendations
1. Board Directors are asked to: a) Note the attached update on Board Director Recruitment; b) Suggest potential platforms to advertise the opportunities on / organisations to engage with and potential candidates; and c) Approve the proposed addition to the Assurance Framework relating to the Chair’s role and responsibilities. Background and Key Issues Board Recruitment 2. At its meeting on 18 July 2019, the Board considered a report on the Board’s future composition and agreed to undertake a recruitment exercise, overseen by the Nominations Committee, and supported by a headhunter which would: • Endeavour to achieve a diversity of gender, ethnicity, age, geography, skills, experience and size of business on the Board; • Have both sector specialists and generalists, who lead on specific themes, represented on the Board; and • Have individuals with skills to support the functioning of the GBSLEP as an independent and active company on the Board. 3. A tender document to procure a headhunter/recruitment consultant to provide a shortlist of applicants for review and utilisation by the Nominations Committee has been produced and, at the time of writing, is being considered by the Committee . The proposed timetable is as follows:
Phase Date
Undertake Tendering process 16h September – 27th September 2019
Selection and appointment of Consultant w/c 30th September 2019
Inception Meeting w/c 7th October 2019
Advertising, search and recruitment 7th October – 25th October 2019
Shortlisting at Nominations Committee 28th October – 8th November 2019
Interviews, Recommendation to LEP Board and 11th November – 29th November Appointments
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4. Given the desire of the Board to broaden its diversity, in its widest sense, it will be critical that the LEP works with the chosen headhunters in achieving these aims, which is likely to include signposting appropriate organisations with whom it would be sensible to communicate our recruitment process. 5. The opportunities will be advertised on the GBSLEP’s website and through our social media channels. Use of the Centre for Public Appointments website, which is highlighted with the National Local Growth Assurance Framework, is also being explored. These actions will assist in meeting the requirements of the National Framework in advertising openly on a variety of platforms, but the LEP Executive would welcome suggestions from Directors on additional platforms that it would be helpful to utilise. 6. Directors are also asked to identify any candidates that they think might be suitable for the roles. Feedback from other LEPs who have recently undertaken Board recruitment exercises has identified that this is one of the most effective routes for encouraging potential candidates to apply.
Chair’s Roles and Responsibilities 7. In March 2019, the Board agreed a revised Local Assurance Framework which sought to comply with the Government’s revised National Assurance Framework. Since then it has come to light that the role of the Chair was not explicitly set out in the document. 8. Appendix A seeks to ensure compliance with Clause 118 of the HM Government National Local Growth Assurance Framework, in setting out the role of the LEP Chair. It has been drawn from: • The Combined Code for Listed Companies; • The Wates Report for the FRC on improved Governance in the larger Private Companies; • The latest National Framework document; • The GBSLEP Local Assurance Framework; and • A couple of large organisations who have published Chair roles. 9. Directors are asked to consider draft role and, if appropriate, agree for it to be included with the Assurance Framework.
Conclusions 10. This report covers two governance matters: Board recruitment and the Chair’s roles and responsibilities and seeks input and approvals from Directors.
Report by: Edward Scutt, Head of Governance
Contact: [email protected] 07825 318250
Date Created: 05/09/2019
Appendices A Proposed Chair’s Role and Responsibilities for inclusion in the Assurance Framework
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Appendix A GBSLEP Chair - Roles and Responsibilities The roles and responsibilities of the Chair are to: • Chair and lead the Board to achieve the agreed objectives of the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP). • Promote and oversee the highest standards of corporate governance within the Board and the wider operation of the GBSLEP. • Work with fellow Non-Executive Directors (NEDs) and the LEP’s Director to set priorities, develop plans, monitor performance, manage risks and ensure that there are sufficient resources available to deliver the LEP’s plans. • Act as a leading representative, in conjunction with the LEP Director, in the presentation and communication of the company’s aims and objectives to external stakeholders and partners at both a local and national level. • Promote and seek to strengthen the LEP’s partnership working across the private, public and academic sectors. • Champion GBSLEP and it’s agenda with local and national politicians and officials within Whitehall. • Take responsibility for the Board’s composition and development in accordance with the principles set down in the GBSLEP Local Assurance Framework (which include the Articles of Association as currently in place) together with HM Government National Local Growth Assurance Framework. This includes overseeing the induction of new NEDs, together jointly with the LEP Director taking responsibility for the continuous professional development of the GBSLEP Board as a whole. • Take the chair at board meetings, which will include:
o Planning and agreeing the timing and frequency of board meetings. o Determination of the of the order and inclusion of items on the agenda, with the allowance of sufficient time is made available for meaningful discussion.
o Seeking to ensure that information that is presented to the board is clear and accurate, with any risks and opportunities clearly addressed where appropriate, to enable the board to make appropriate decisions.
o Seeking to ensure that all NEDs fully declare any actual or potential conflicts of interests, managing such resulting conflicts in accordance with the GBSLEP Local Assurance Framework.
o Ensuring that all NEDs are actively involved in the discussions and ultimate decision making of items on the board agenda, promoting open debate and facilitating constructive discussion
o Aiming towards a consensus view as a result of the board’s discussions and deliberations.
o Summarising the discussions and the resulting decisions, so that all board members are clear on what has been agreed and the basis of that agreement.
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• Chair the Nominations and Remuneration Committees, in accordance with the Terms of Reference set out in the GBSLEP Local Assurance Framework. • Attend the GBSLEP Supervisory Board as a Non-Voting Member. • In accordance with Clause 165 of the HM Government National Local Growth Assurance Framework, provide in conjunction with LEP Director, a formal assurance statement on the status of governance and transparency with the GBSLEP, to support the Annual Performance Review Process. • Represent GBSLEP on key external bodies where GBSLEP is a member, for example, the West Midlands Combined Authority and on other local, regional or national bodies were LEP representation is invited. • Provide such Review and relevant approval as may be required under the GBSLEP Scheme of Delegation as set out in the GBSLEP Local Assurance Framework. • Support and Mentor the LEP Director and the LEP Executive Team, providing a sounding board role as appropriate.
11/09/2019 4 of 4 Item 20
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19th September 2019
STAKEHOLDER ENAGEMENT & COMMUNICATIONS UPDATE
Recommendations
Board Directors are recommended to: 1. Note media coverage highlights for July and August; and 2. Note the progress in delivering the Stakeholder Engagement Plan and key highlights.
Background
3. This report provides a progress update, highlighting key achievements and points to note against stakeholder engagement and communications since the last Board meeting.
Highlights from July 2019
Media coverage key statistics
4. 96 pieces of coverage featured the Greater Birmingham and Solihull Local Enterprise Partnership in July 5. Total audience reach: 3,365,154 6. Key titles include, Birmingham Mail (web), Birmingham Mail (print), BusinessDesk (web), Express and Star (print), Stourbridge News (web) 7. 83 of these stories were online and 13 were print. Topics included: • Apprentice of the Year winner announced at Ladder for Birmingham awards. The Ladder is supported by GBSLEP. • The opening of the new-look Longbridge station, part-funded by Local Growth Fund via the Longbridge Connectivity scheme set enhance the overall transport offer in Longbridge • Sutton Coldfield town centre master plan funding announced, including a contribution by GBSLEP. • The opening of the redeveloped Centenary Square, funded by the Enterprise Zone.
Digital channels key statistics
8. Twitter:
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Twitter followers, 6239 (+13) Impressions, 25,600 Retweets, 31
9. LinkedIn: LinkedIn followers, 1455 (+43) Impressions, 6341
10. Newsletter: Delivered to 1,230 Open rate, 26.2% Click rate, 4.7%
11. An increased focus on features for LinkedIn continues to grow our engagement on this platform.
12. A coverage book is available on request.
Highlights from August 2019
Coverage highlights
13. Topics included: • Construction work starting on new multi-storey park and ride in Longbridge, the development was backed by the Greater Birmingham and Solihull Local Enterprise Partnership and Midlands Connect
• Kidderminster station demolition begins ready for rebuild, joint-funded by from the Local Growth Fund via Worcestershire and Greater Birmingham and Solihull Local Enterprise Partnerships
• Food and packaging wholesaler secure £1.5m investment from MEIF WM Debt Finance (part of MEIF). The MEIF, supported financially by the European Regional Development fund, designed to boost the region’s economy and help small businesses seize emerging growth opportunities
14. Full media coverage statistics for August 2019 will be available in the next report, ahead of the November Board meeting.
PR Agency appointment
15. GBSLEP’s PR contract with the West Midlands Growth Company (WMGC) ended on 31 July 2019. WMGC confirmed that they would not be bidding to renew the contract and therefore a new tender for the contract was advertised. Interest in the contract was received from five companies and full tender responses from two.
16. Following the conclusion of the recruitment process, we have appointed a new PR agency – Core Marketing. Core will be supporting primarily with the LEP’s media
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relations. This includes proactive press releases, writing quotes on behalf of Board Directors and media briefings. In refreshing the contract, a number of activities previously lead by WMGC will be brought in-house. The LEP Executive will take ownership of GBSLEP’s social media channels and newsletter.
Annual Report & Annual Conference
17. The LEP Executive is currently working on the delivery of the 2019/20 Annual Report. As part of this, we are visiting the sites of key projects across the full geography to enable us to highlight the work that has been undertaken over the past year. A photographer will be capturing fresh photos and video content at each site for use in the Annual Report and at the Annual Conference. This content will also be shared with Project Managers so it can be used locally.
18. The full report will be published in October and will be available in printed and electronic copy and we look forward to sharing it with you.
19. The Annual Conference has been confirmed for 27th November 2019, taking place at the CBSO centre in Birmingham. A separate report has been circulated within this set of Board papers.
Conclusion
20. This report provides an update on media coverage, and the progress of delivering the Stakeholder Engagement Plan and Communications Plan.
Report by: Katie Fulcher Stakeholder Engagement Manager
Contact: [email protected] Date Created: 03/09/2019
11/09/2019 3 of 3 Item 21
GREATER BIRMINGHAM AND SOLIHULL LEP BOARD MEETING
19th September 2019
Growth Hub Next Phase Update & Marketing Plan
Purpose
1. To provide an update on the Growth Hub Next Phase 2019-2022 and the Growth Hub Marketing Plan.
Recommendation
2. That the Board note:
2.1 progress on the European Regional Development Fund (ERDF) bid for the next phase of the Growth Hub to 2022 and the actions being undertaken to prepare to implement the next phase from 1st October (Appendix A); and
2.2 the Growth Hub Marketing Plan (Appendix B) and progress to date (Appendix C).
Background
3. In March, the Board approved the Growth Hub Next Phase Business Plan 2019-22 based on an ‘Enhanced Partnership’ model of delivery led by the LEP and involving wider delivery partners. 4. The ‘Enhanced Partnership’ model would offer significantly enhanced capacity comprising additional adviser, specialist account management, mentoring, and additional management and corporate capacity. 5. The additional costs would be met by a higher level of additional ERDF (£2.14m compared to £1m currently) matched with the LEP’s annual BEIS grant (currently £512,500), an annual allocation of £200k SEP Enabling Funds, and partner contributions.
6. The Board approved progression of an ERDF bid by the LEP as applicant and accountable body for the funding following which a bid for circa £2m ERDF was submitted to MHCLG in May.
7. In June, the Board asked that the Growth Hub continue to increase engagement with communities across the LEP geography, including female and BAME entrepreneurs, and that the Growth Hub marketing strategy be developed to improve engagement with SMEs.
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Key Issues
Next Phase Update
8. Since the ERDF application was submitted in May, the LEP Executive has responded to queries raised by MHCLG in their appraisal of the application and it is anticipated that the bid will be brought to the European Structural Investment Fund (ESIF) Sub-Committee on 20th September 2019 for approval. This would enable the next phase of delivery to commence on 1st October as planned with the funding confirmed (with the exception of the BEIS grant for 2020/21 and 2021/22 which is confirmed annually).
9. Should a funding decision be delayed, delivery will continue based on the current model pending a decision, as the current budget (minus ERDF) will cover core activities. In the very unlikely event of the bid being rejected, whilst existing activities would continue within the present funding envelope, the enhanced capacity could not be delivered. All affected Growth Hub staff are fully briefed on the situation.
10. An action plan covering the two key months of the transition phase has been developed (Appendix A) and a working group of key people within GBSLEP and the Chamber has also been established to oversee the transition to the next phase over the coming weeks. An away day for current and future partners and staff of the Growth Hub has also been arranged for 20th September to review best practice and plan for the next phase.
11. A review of the current office accommodation and future options, particularly given a larger team, has taken place and the Hub is planning to move to new, refurbished self-contained office within Chamber House in October.
Marketing Plan
12. Two interim roles (one senior, part time; one junior, full time) were recruited through the Chamber as lead partner to bolster marketing capacity for the final nine months of phase one.
13. An initial task of the interim Marketing Manager was to develop a suite of Key Performance Indicators (KPIs) as part of a marketing plan (Appendix B), where a baseline of activity could be established and then progress measured on a monthly basis.
14. These KPIs are set out in Appendix C, alongside targets for the end of September as well as monthly data collected so far. Most KPIs show improvement over time, and all business critical (contractual) targets (“Connect” section) are performing well.
15. Social media activity is showing a steady upward trend in terms of engagement and reach and is on course to reach 1,500 direct followers by the end of September.
16. The Hub e-newsletter is now produced monthly (rather than bi-monthly) and this has helped drive activity and promote the Hub more consistently. Open rates for the newsletter have improved significantly and are now in line with comparable sector benchmarks.
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17. The increase in marketing activities has supported work with businesses through events and adviser outreach and as a result all the key contractual targets where businesses are receiving direct advice and guidance are either already achieved or on track to be so by the end of September (3 and 12-hour assists).
18. A new Marketing Manager will be recruited through the LEP, to replace the interim arrangement that has been in place for the last nine months through the Chamber. The plan and KPIs will be reviewed and updated for the following year at that point. The Board will be consulted on the development of this Plan.
Conclusion
19. The Board are asked to note the progress being made towards implementing the Growth Hub next phase to 2022, particularly progress on the ERDF bid
20. The Board are asked to note the Growth Hub Marketing Plan (Appendix B) and progress to date (Appendix C).
Prepared by: Ian McLaughlan, GBSLEP Growth Hub Manager
Date Created: 3rd September 2019
Appendices Appendix A Growth Hub Transition Project Plan Appendix B Growth Hub Marketing Plan Appendix C Growth Hub Marketing KPIs to 31 August 2019
11/09/2019 3 of 3 A Blueprint for Marketing Jan-Dec 2019 Presented to GBS LEP Board Alan Gilmour Purpose of Paper
The purpose of the paper is to outline an approach to the marketing of the GBS LEP Growth Hub through to December 2019.
This plan will be re-visited and re-scoped prior to December 2019 with the recruitment of a permanent Marketing & Outreach Manager as part of the new ERDF bid from 1 October.
The Board are asked to note the approach presented.
‘no plan survives the first contact with the enemy’
-Helmuth von Moltke Chief of Staff, The Prussian Army, 1800-1891 The role of marketing
To build awareness of, interest in and engagement with the GBSLEP Growth Hub offer by the market we choose to serve, that we might help as many SMEs as we can connect with our tools and advice and opportunities, helping them fulfil their ambitions and aspirations for sustainable business growth The customer journey
AWARENESS ANONYMOUS ‘I am aware of The Growth Hub and I want to know more’
INTEREST
‘This looks interesting, I am going to keep in touch’
ENGAGEMENT
‘I am going to get in touch with them and find out how they might be able to help’
CONNECT KNOWN
‘I am going to involve them in my business’ Bringing this to life
AWARENESS Marketing to raise awareness and saliency to drive target market to visit website
INTEREST Campaigns to generate a passive interest in the offer
‘
ENGAGEMENT Marketing programmes to capture data and convert interest into prospects
CONNECT Marketing activity to connect prospects and clients with and involve in key elements of the offer e.g. Assist programme We will track marketing OUTCOMES against agreed measures
1. AWARENESS – unique visitors to website
2. INTEREST-followers; open rates; click through rates
3. ENGAGEMENT-number of new prospects ; enquiries;
4. CONNECT-3 hour/12 hour assists; referrals
There is a need to develop a marketing scorecard with SMART KPIs to allow us to track the performance of the plan. In doing this we will benchmark this scorecard and key performance metrics against similar Hubs The marketing focus
• Get all aspects of the Growth Hub offer noticed and understood
• Grow the prospect database for use by all partners
• Develop and benchmark a marketing scorecard
• Increase number of inbound and outbound referrals
• Build customer journeys and treatment strategies to move from prospect through to Connect
• Embed the proposition and its 4 legs across everything we do
• Deliver the contracted volume of Assist outputs
• Contribute to the development of Growth Hub 2.0
• Promote a collaborative approach Promoting a collaborative approach across the eco-system • The Growth Hub is a collaborative enterprise bring together a programme of events, tools and advice delivered across a range of partners, most notably • The Greater Birmingham Chamber • Birmingham City University • Aston Business School • Access to Finance • GBS LEP • Birmingham City Council
• The marketing approach must complement and supplement and market across all available channels all elements of the programme delivered through the Growth Hub eco-system
• The development of a database of prospects and clients shared by all involved (subject to data protection regulation) is a key enabler of the programme
• Structures will be developed to facilitate effective cross structure working and promotion of programmes distributed under the Growth Hub brand and across the Growth Hub eco-system
• In this regard a joined up marketing plan can support, promote and strengthen joined up working Transforming the Marketing Approach
FROM TO
MARKETING THAT INFORMS MARKETING THAT PERSUADES
To date our marketing our marketing materials have been highly informative, factual and rational e.g. invites to workshops have provided information on location/date/content.
Through being clear about what we want our audiences to think and do we can use a range of more emotionally charged persuasive tools to encourage the desired response which addresses the barriers to action and provides socially normative reasons to believe Using behavioural insights to transform marketing
To encourage the behaviours we want to drive the use of the EAST behavioural insights model will be deployed to inform what we say and how we say it. This is a simple, pragmatic, proven model developed to drive behaviour change
Make it EASY • Power of defaults • Reduce hassle factor • Simple messages
Make it ATTRACTIVE • Attract attention • Incentivise behaviour
Make it SOCIAL • Show the norm • Encourage networks • Obtain commitment and intent
Make it TIMELY • Use receptive trigger points • Help people plan their response An illustration- Invitation to Skills Training Workshop-EAST in action
NOWNOW
Up to 3 e-mails per event • One e-mail per event • Initial invite • Highly factual and rational content • ‘Places going fast’ • Location • ‘LAST CHANCE…’ • Date • Strong headlines to attract • Subject • ‘FREE skills training’ • Quotes • ‘Your personal invite….’ • List of features/benefits • ‘Book your place NOW’ • Limited use of other channels to support • ‘‘Hundreds already attended’ • ‘businesses like yours’ • Language mirrored in social media • PR support
We have made a successful start significantly improving workshop attendance-lots more to do BUT we can apply similar principles across all communications and customer facing materials Our target market
Businesses Business Less than 250 Potential/ owners/ employees/ Appetite to Leaders 50m euros grow turnover
Across GBS LEP Area Birmingham Solihull Sutton Coldfield Cannock Lichfield Tamworth Burton
In this market place, and due to constraints of insights from our CRM capability at this stage, targeting is more an art than a science-where third party lists are used we will use above criteria where possible to target messaging Our proposition-a four legged approach
A proposition is our offer to the markets we choose to serve
Our Overarching Proposition
Giving you the knowledge and the support YOU need to help YOU grow YOUR business…we enable this by connecting you with….
Access to Online Skills training Guidance funding and support and and support finance advice
Our messaging will work across all elements that comprise the proposition individually and collectively to add up the overarching proposition Developing the messaging
KEY INSIGHT I KNOW I NEED TO KEEP GROWING MY BUSINESS BUT I’VE NOT GOT THE TIME TO THINK ABOUT WHAT I NEED TO DO, WHERE I NEED TO GO……
OUR ESSENCE ACCESSIBLE KNOW HOW
HOW WE MAKE YOU FEEL PLUGGED IN Our messaging To bring greater meaning and emotional resonance to the Growth Hub proposition, It is important that we have a clear and powerful narrative to tell to the markets we choose to serve.
And we should be able to tell this story in a sentence, a paragraph, a page.
These are a set of words that directs and unites the key messages for The Growth Hub; describes its attitudes and beliefs; that sells The Growth Hub proposition to clients and potential clients, colleagues, and other stakeholders.
A story that brings to life the emotional and rational resonance of the proposition.
And through delivering consistency across all channels and communications amplifies and strengthens our message.
That makes it simple, meaningful and compelling.
This is what we are about. Why we exist.
Draft messaging follows Message in a sentence
For businesses like yours with the potential and appetite to grow, we have the know how you need to connect you with the knowledge, funding and people to help you achieve this…always accessible and always free.
The Growth Hub. Connecting you to growth. Message in a paragraph
Running a small business can be time consuming. Leaving you with little time to think about what you need to do to keep your business moving forward. We get this. And we have worked with hundreds of businesses like yours with the potential and appetite to grow. And if you don’t know where to turn we have the experience and expertise to support you to deliver your growth ambitions and aspirations. And the know how to connect you with the knowledge, the people, the training and the funding that will help you achieve this. Always accessible. Always free.
The Growth Hub. Connecting you to growth. Message on a page
Running a small business can be time consuming, all encompassing.
Leaving you little time and headspace to think about what you need to do to keep your business growing, ensuring it continues to move forward.
Giving you the opportunity to work on the business
Helping you realise the ambition and aspiration you have for your business and all who work there.
We get this.
We have worked with hundreds of businesses like yours with the potential and appetite to grow. And if you don’t know where to turn we have the experience and expertise to support you to deliver your ambition and aspiration to grow your business.
And the know how to connect you with the knowledge, the people, the training and the funding that will help you achieve this.
Always accessible. Always free.
The Growth Hub. Connecting you to growth. We will use OEP Model to determine channel to optimise channel use
OWNED CHANNELS Media activity generated in channels we control. Low cost and easy to use. e.g. website, colleagues, social media channels, newsletter, CRM driven e-mail marketing
EARNED CHANNELS Media activity generated by third party sources in channels we do not control. Low cost, highly effective but difficult to deliver. e.g. PR, word of mouth referrals, social media engagement, re-posts
PAID CHANNELS Media activity generated in channels by us we do not control and would pay to access. High cost, , easy to use and control, Results variable. e.g. online/offline advertising, paid for search, mailing lists Social media key to building awareness…..Our Principles We will build and maintain our online social media presence by adopting the following 9 principles…..
• Extensive use of LinkedIn/Twitter/Facebook supplemented by use of YouTube for case studies and testimonials
• All posts will be supported by visuals/video to attract interest
• We will target specific geographic communities as and when appropriate
• We will build a heavy presence with up to 10 Tweets per day and up to 5 per day on LinkedIn and Facebook
• Aim to deliver across all marketing outcomes with extensive use of strong Call To Actions
• Grow community of relevant followers to deliver reciprocity and referral
• We will build a bank of generic posts for use to promote all aspects of the proposition
• We will link to appropriate trends
• And we will make extensive use of polls, competitions, case studies, etc.
As a rule of thumb 70% of messages on social media will promote Assist outcomes/30% will promote other aspects of the Growth Hub offer e.g. Access to Finance, etc Channel selection
We will maximise use of low cost OWNED and EARNED channels to deliver our messaging, supplemented with limited tactical use of PAID channels
AWARENESS ENGAGEMENT Social media Social media Organic search Third party events PR Editorials (chamber/partner publications Face to face Case studies Database marketing Third party events Events
’
CONNECT INTEREST Database marketing Social media Website Website Social media PR Editorials (Chamber/partner publications Events Events Face to face Newsletter Website Marketing Outcome #1-AWARENESS
What will we do?
• Build social media presence across key social media platforms
• Develop a PR strategy across owned channels across all partners
• Embed case studies and testimonials
• Test programmatic online advertising
• Build a Communications Grid for use across the full Growth Hub eco system Marketing Outcome #2-INTEREST
What will we do?
• Continue to leverage digital and social media channels to build interest and lead generation for all aspects of the offer
• Develop an engaging content strategy to capture interest
• Identify marketing opportunities across all partner events Marketing Outcome #3-ENGAGEMENT
What will we do?
• Build and expand the prospect database
• Develop lead capture marketing programmes e.g. Competitions, Tell A Friend
• Build customer journeys and treatment strategies that convert prospects into Connections across the eco-system and minimises leakage from this Marketing Outcome #4-CONNECT
What will we do?
• Deliver the contractual requirements of the Assist programme
• Build customer journeys and treatment strategies to move clients through all stages of the programme and across the eco-system
• Build a test and learn approach into our marketing Tracking Performance Taking a baseline position of 1st April we will set targets and monitor performance of the Marketing programme. The following measures and targets are proposed. Targets have been based on benchmarking with other relevant Growth Hubs and a simple straight line flat rate increase Strategic Measure Baseline Target Objective
AWARENESS • Number of unique visitors • 1250 • 5% growth pm • Average time per session • 3’30’’ • 3’ 30’’ • % Returning • 22% • 25% INTEREST • Twitter/linkedInFollowers • 1100 • 5% growth pm • Twitter/linkedInImpressions • 65k • 5% growth pm
ENGAGEMENT • Newsletter sign ups pm • 5200 • 6000 • Open rates • 15% • 20% • CTR rates • 1.5% • 5% • Database growth • 5% growth pm • Enquiries • 50pm
CONNECT • 3 Hour assists-TA • 360 • 3 Hour Assists-Non TA • 840 • 12 Hour Assists-TA • 168 • 12 Hour Assists-Non TA • 72 • Referals • 1 per assist Coming Up-September
ACCESS TO FINANCE CAMPAIGN
• To support the Access to Finance offer we are running an integrated multi channel campaign to build awareness of the offer and to generate enquiries for advice, help and support
• To commence 2nd September to run through the month
• To target SMEs and brokers/intermediaries in the LEP area
• Overarching message ‘Don’t give up-there is a funding solution out there for you and we can help you find it’
• Channels used include PPC advertising, sponsored Facebook posts, social media, email marketing, Newsletter, dedicated landing page
• Aim is to generate 50 enquiries for the service
BACK TO SKOOL WORKSHOP PROGRAMME
• To support the delivery of the Transitional Area 12 hour Assist objective, a comprehensive programme of 6 skills workshops has been developed to run through September in Staffordshire and these are being promoted heavily across social media, email marketing and third party channels • Interest in and demand for these workshops is high with 80+ bookings taken to date • On track to deliver the Assist objective if current progress maintained Activity Calendar: September-December 2019
Channel September October November December
Paid For Media A2F-’Don’t Give Up’ Newsletter A2F-’Don’t Give up’ Innovation Exporting Round Up
Workshop 3/12 hour Assists Social Media Programme
Other GH Events/Programmes
Newsletter Content
Keep In Touch- Keep In Touch- Newsletter Sign Up Newsletter Sign Up
A2F-’Don’t Give Up’
Owned Publications Workshop 3/12 hour Assists e.g. ChamberLink Programme A2F-’Don’t Give Up’
Database Marketing Workshop 3/12 hour Assists Programme
A2F-’Don’t Give Up’
Website Home Page Workshop Programme 3/12 hour Assists
Newsletter
Keep In Touch- Keep In Touch- A2F-’Don’t Give Up’ Newsletter Sign Up Newsletter Sign Up Decision Required
The Board are asked to note the marketing approach to guide the marketing programme for the Growth Hub through to December 2019 as detailed above and to support its delivery and ongoing development