Worcestershire Local Enterprise Partnership Board

Worcestershire Local Enterprise Partnership Board Time 3.00p.m.-5.00p.m, March 1st, 2012 Suites 1 and 2, Brindley Court, Gresley Road Warndon, WORCESTER, WR4 9FD

A G E N D A

1. Welcome, introduction and apologies- Peter Pawsey

2. Minutes of the Board meeting of 5th January 2012

3. Matters Arising  Action List  Approvals - UKTI Inward Investment MoU - Growing Places Fund allocations - Rural Growth Network

4. Chair's report

5. Executive Director’s Report (verbal report) Business Board Report Business Plan Timetable

6. Feedback from Board Training Away Day Discussion

7. Feedback from the Conference Discussion

8. Events  Forthcoming Events  Harriet Baldwin March 30, 2012  British Bankers Association 26th April  Employment and Skills Board Workshops

9. Start Up and Capacity Fund - Position statement (figures)

10.Date and times of next meetings at the LEP Headquarters

Thursday 29th March 2012 at 3:30p.m to 5:30p.m (TBC) Thursday 26th April 2012 at 3.30pm to 5.30pm Thursday 14th June 2012 at 3.30pm to 5.30pm

11.Any Other Business

1 2 Worcestershire Local Enterprise Partnership Board Thursday, 5th January 2012 3:30 pm – 5:30 pm AMS Group, 20-21 Padgets Lane South Moons Moat,, Redditch, Worcestershire B98 0RA MINUTES

PRESENT: Peter Pawsey (Chair) Chairman Robert West and Director Midland Heart Cllr. Carole Gandy Leader Redditch MBC representing North Worcestershire Districts Cllr. Simon Geraghty Deputy Leader and representing Worcestershire County Council Cllr. Phillip Grove Leader Malvern Hills DC representing South Worcestershire Districts Alan White Chief Executive Malvern Hills Science Park John Callaghan Principle of North East College representing Prof David Green Ed Webb Executive Chairman Webb’s of Wychbold Richard Soper MD Bosch Thermotechnology

IN ATTENDANCE: Clare Mitchell Worcestershire County Council Gary Woodman Worcestershire LEP

APOLOGIES Tony Hyde MD Thomas Vale Construction

1. Welcome and Introduction

The Chair wished the board members a Happy New Year, and thanked Jim Clark for hosting today's meeting at AMS Group. The Chair informed the board that they were to thank Paul Sampson and Jane Rigley for their involvement with the LEP in 2011 and he will do this personally.

2. Minutes of the Board meeting – Thursday, 17 th November 2011 A correction on page 4, the 4th paragraph - should read “AW commented that the Malvern Hills Science Park was submitting a separate response to the South Worcestershire Development Plan” - not the Malvern Hills District Council.

The Minutes were agreed as a true record. 3. Matters Arising Register of Interests Protocol – All forms had been returned by Board members.

Inward Investment MoU – this has been approved by the business board and public sector representatives. However the counties inward investment strategy is being developed, and this needs to be in place before signing the MoU.

3 AW commented that the “Government Business Rate Retention scheme”, was geared towards District Council providing large employment premises.

PP said that although inward investors tend to require large premises. Its to be the focus for the Place Shaping Group, and the LEP to create development. These are balanced and create a commercial property portfolio, in the right locations for large companies, as well as start up companies covering all sectors.

BIS economist - A programme of activity was being created for Tom Griffiths from BIS to spend the week in Worcestershire. South Worcestershire Development Plan - The LEP response was submitted.

Approvals – The Chair commented on behalf of the board, the successful bids for Evesham Bridge and Phase 1 of the Worcester Transport Strategy. This totalled £22.8m investment into the transport sector, in turn proved to be a positive result for the county. Inward It was noted that the County Broadband Plan had been submitted for Investme £3.5m, however, this has been matched by £8.5m from nt Worcestershire County Council. Strategy to come The Resource and Energy Efficiency Programme had been to the successfully bid for, as a result the programme would likely start April next 2012. Board meeting - GW informed the meeting that the trade and inward investment GW subgroup, had met and started to develop a draft of an inward investment strategy. This strategy needs to be in place before we sign the MoU. As we need to identify the role and responsibilities of the different stakeholders. It was agreed that the strategy will come before the Board at the next meeting. 4. Chairs Report

The report was noted by the Board. PP outlined the nature of the meetings with the MPs and Minister’s, which he had represented the Worcestershire LEP.

PP commented on the positive nature of the Redditch Business Leaders meetings, and the progress that had been made following the views of the businesses.

CG reported that she had been out to see a number of the larger businesses in Redditch. This had a positive outcome, in moving forward with a number of individual company issues.

4 PP highlighted the LEP network meeting, where GW and himself had attended. In terms of content this was not very productive. However, the discussion with other LEP representatives highlighted how much we are all in a similar position.

EW asked what was the view of the Worcestershire MP’s of the LEP. PP commented that they were supportive, and had been kept up to date with progress being made. 5. Business Board Report

GW outlined that the Business Board had not met since the last Board meeting.

The Business Board had undertaken an extensive survey with Worcestershire businesses, to gain their views on the planning process.

The results of the survey were noted.

PP outlined that the red carpet treatment is very important in creating a competitive advantage for an area. Some of the issues the survey outlined were regarding the handling of applications by the district councils. At that time were taking about 8 weeks. However, the time between pre-application and decision were far too slow. This is often not the fault of planners, but sometimes the applicant. The survey identified that the statutory consultees were by far the worst. The Highways Agency, Environment Agency, Sport England and English Nature were always looking for ‘gold plated’ solutions, and that needed to change. This was a point that PP had made to Ministers, in particular Eric Pickles. SG highlighted the need that we need to speak with one voice through the LEP on this issue, as the public sector had similar concerns.

AW commented that the agencies in the current climate need to be pragmatic.

PP highlight that the next chairs meeting for the West Midlands LEPs, is to discuss this issue at the end of January.

GW commented that before Mark Middleton retired, he had progressed at MoU Action with the County Chief Planning Officers. This draft was detailed in the board GW papers. GW expressed concerns that had been made to him, in regards to the document reflecting the ‘status quo’. We need to speed up the processing time with reference to the application process.

PG acknowledged this comment, and believed its to be subjected to a review after 6 months, with precision and effectiveness to be paramount. It was agreed that GW should progress the MoU with the support of TH.

Business Board Sub Groups

5 Jaguar Land Rover working group – Nick Scroggs from a Redditch based business, working with GW, would be attending a meeting of the West Midlands LEPs inc Liverpool. This group lead by Warwick Business School, was looking at the JLR development and seeing how automotive businesses could benefit within the supply chain.

AW reported that the Access to Finance sub group had met to discuss seed capital. Also links had been made to the Regional Finance Forum.

6. Open for Business Survey CM provided an overview of the process the county had been undertaking. The feedback pertained to priorities and conclusions. This became prevalent after communicating with the residents and businesses, it was their overall concerns.

This work highlighted that main “Open for Business” priorities are: – Supporting the growth of existing Worcestershire businesses – Bringing new companies to Worcestershire – Providing financial incentives through reducing business rates

However the key to this work was the question, what next? And from a communications point of view – You say this, “We are now doing this in response”.

AW highlighted the need to respond to this survey, as it was immensely important that residents and businesses had the same goal.

SG commented that the business development of a ‘one stop shop service’. As a result, improvement is needed for delivery of information to businesses, and a ‘red carpet’ service is a must.

Further investigative work will be undertaken by WCC, outcomes will be reported to the board.

7. Outline of the Strategic Priorities for the LEP GW outlined priority issues that the LEP should cover. This was a bullet point list at this stage. The aim of this bullet point list, was to show the areas of activity. The way forward with this list, is to comprise a current position statement on each theme. Then work amongst the stakeholders to identify an action plan, which would highlight the lead agency. Measureable objectives is the key contribution to the LEP.

6 The Board discussed a number of points, these included:

Priority was the need for a hotel, if the county is to develop a positive tourism and business trade. This was to include Worcester city, and the north of the county.

Marketing Worcestershire – across an area which included locally, regionally, nationally and internationally. RS suggested that we needed to answer the question of “Why Worcestershire,” then create a strategic plan to move us from where we are now, to where we want to be.

CG highlighted that the “Why Worcestershire” question had been Thoughts asked at the Shenstone group and Leaders group. on the strategic The VCS and 3rd Sector, was particularly focused on social list to enterprise. GW

Skills and improving the dialogue between business and training providers.

PP asked if board members had any more thoughts. If so then are to send them via to GW. 8. The Growing Places Fund Following the board meeting in November a sub group with PP met with BIS (Ian Smith) on 1st December. They were given a clear direction on what was being sought after by the PQQ. With their combining process, emphasis on governance, accountability, ensuring generation of economic growth and pay back- not on providing a definitive list of schemes.

After the meeting on 1st December LEP Board members were provided with an outline. This period of which it took place was through December and January. This included the PQQ being signed off by a LEP Board sub group on Friday 16th December, attended by Ed Webb, Tony King, Gary Woodman, Clare Mitchell and Sue Crow, with comments provided by David Greer on the draft.

The approval of the PQQ will trigger the release of funds to the accountable body (Worcestershire County Council) from January.

Eleven (11) persons expressed Interest. Being that evaluation is the criteria, it was to be recommended that five (5) projects were to be interviewed, by the sub group. Action GW to The following result was after a discussion by the Board, in reference set up to criteria and scoring, it was agreed that seven (7) projects would be the sub interviewed. group interview

7  Hoobrook Link Road, Kidderminster s and  Keytec Link Road, Pershore reduce  Blackmore Park, Malvern the  Springhill Farms, Pershore shortlist  Berry Hill, Droitwich to agreed  University Park, Worcester growing places  Cricket Club Hotel, Worcester projects. The Board delegated that the assessment and decision process was to be assigned to sub group, this was strategically signed off by PP.

9. Events LEP Board Training Away Day GW outlined the proposed Board training away day. It was agreed Action that the session needed to be facilitated. GW agreed to gain three (3) GW to quotes for this work and make a quick decision on the facilitator for gain this session. quotes for the RS suggested that the meeting with the business board and key facilitator public sector stakeholders, should take place the night before. He . offered Worcester Bosch facilities to host the Board away day. As a result would reduce the cost for the training away day.

The Board agreed to accept this kind offer. GW is to progress the Action Board Training Away Day under this new structure. GW

LEP Conference The Board members noted the current proposal for the LEP conference, and the need for this event to communicate with a wider business audience. It was agreed that we would speak to Cecil Duckworth to see whether Worcester Bosch 50th year, accommodate Action us in being our key note speaker. The attendance of the Minister is GW. still a working project.

Forthcoming Events PP highlighted a change on 23rd Jan – it was the All Party Parliamentary Committee for Local Growth, LEP’s and Enterprise Zones.

The Board noted the future meetings.

10 Skills Update on Activity . The Board noted the progression on skills, therefore were in favour of setting up the Worcestershire Skills Board. This is important for the economic growth for the county, as a numerous amount of businesses reported a shortage in skills.

SG commented that it was important that the LEP should improve the importance of development of businesses with encumbering

8 education. Although examples of good work were being undertaken, this is on an individual basis.

The challenge for FE /HE was central government funding models, which does not encourage the development of a bespoke course.

The Redditch skills survey was noted and results will be reported to the board. 11 Start up and capacity fund Action . The board noted the expenditure on the start up and capacity fund. GW to We are now delivering against the activity and will be on target for the produce next quarterly claim. The Board asked GW to prepare an evaluation a cash of spend. flow forecast The government had announced since the Board papers were published, that a of the new capacity fund had been launched. For round 2 there will be no bidding process. funds. As a further response to the request for simplification the fund is now aimed at the broad objective of supporting LEPs to address the issues that will best help them deliver local growth.

The types of activities that you may wish to support are: 1  Analysis of existing economic data or intelligence to help LEPs prioritise the activities to engage in.

 Analysis of new or emerging industries or clusters.

 Analysis of potential barriers and collection of new economic data.

 Training for board members.

 Consulting with stakeholders.

 Identifying economic benefits of working between LEPs on infrastructure issues or sectored priorities.

It was agreed that the Board would delegate the writing of the Capacity Fund bid to the officers with reference to the Funding Sub Group

GW to write the capacity bid by the deadline. 12 External funding GW to . Report noted gain

9 more info JC asked for more information on the NEET bid as a possible bid had on the been outlined in the north of the county. NEETs bid to JC. 13 Date and times of next meetings . 1st March 2012 3.30pm to 5.30pm 26th April 2012 3.30pm to 5.30pm 14th June 2012 3.30pm to 5.30pm

at LEP Offices, Suites 1 &2, Brindley Court, Gresley Road, Warndon, Worcester, WR4 9FD 14 Any other business . GW reported that the LEP offices would be ready week beginning 23rd January 2012. GW was also interviewing for two fixed termed posts an executive assistant and an operations manager, the expected start date would be in a couple of weeks.

The Chair thanked the Board and closed the meeting at 5:45pm

10 Item 3. – Action List from the Minutes

1. Inward Investment Strategy to come to the next Board meeting

2. Progress the MoU between the LEP and the Local Government Planners

3. Members of the Board to give comments on the bullet point list of strategic priorities.

4. Growing Places - to set up the sub group interviews and reduce the shortlist with a recommendation back to the Board.

5. To progress the Board Training Away Day at Bosch on the 1st Feb evening / 2nd Feb morning

6. To progress and deliver the LEP Conference

7. To produce a cash flow forecast of capacity Fund and Start Up Fund.

8. Write the Capacity Fund Round 2 bid – deadline 13th Feb

9. Send the details of the NEET bid to John Callaghan

11 Inward Investment

Current position Inward Investment

In 2011, the number of companies looking to invest in Europe rose 5%, and the number of investors without investment plans for Europe fell 6%. Overall, 33% will invest in Europe this year and, of these, 44% are expanding facilities.

When considering where to invest in 2010, companies viewed transport and logistics infrastructure (63%),telecommunications infrastructure (62%) and stability and transparency of the political, legal and regulatory environment (62%) as the most critical factors.

At a local level and as highlighted at the Inward Investment steering group meeting on (23/11/2011) following appraisal of current Inward Investment activity, Worcestershire lacks a clear strategy, structure, proposition, promotion or protocols for a coordinated approach to responding to inward investment enquiries.

Organisations including Worcestershire County Council, the District and Borough Councils, key strategic businesses, The Chamber of Commerce, University of Worcester, Worcestershire Local Enterprise Partnership and Worcestershire “ambassadors’ are all involved with activity that could and has attracted Inward Investment into the county, however this work is often conducted in isolation from each partner and is not as effective as a joined up co -ordinated approach.

Overview

This paper details an outline strategy for Inward Investment for Worcestershire.

There are a number of factors that determine the choices that firms make in relation to location, they include:

• Transport Infrastructure, • Premises and sites • labour supply and skills • Supply chain • lifestyle (environment, education and leisure and the support provided by agencies to secure an investment).

Research has shown that added value and a high quality Inward Investment Service are one of the key factors in the decision making process.

Indigenous and Overseas Investments should be prioritised by all stakeholders due to the positive impact on a range of indicators including:

1. Investment in new plant. A boost to UK GDP

2. Employment creation (and in some cases employment protection when foreign investment stops a plant or factory being closed)

3. Local / regional multiplier effects from higher employment, rising incomes and supply chain benefits.

4. Productivity and technology transfer effect. For example the so-called “Nissan effect” – where the development of a new overseas supplier requires an increase in the productive efficiency of domestic component suppliers

12 Prioritisation of target markets both in the UK and overseas, establishing the right routes for promotion and importantly the actual resource, co ordination and effort required to "go the extra mile" to achieve successful Inward Investment outcomes are central, including links to both regional and national resources to support early development of Inward Investment firms. It is important that Worcestershire develops a reputation as a "Can do County."

Goals and Strategy

Following consultation with a range of stakeholders in the private and public sector this document identifies the strategies that will be developed to secure increased investment in Worcestershire.

The document is meant to provide a steer on the direction and strategic priorities for the development of an excellent local Inward Investment Service and supports the economic priorities for Worcestershire.

To increase the number of UK and Foreign Investments in Worcestershire

To support the retention and expansion of existing UK and Foreign Direct Investments in Worcestershire.

To develop activities that focus on knowledge and relationship management, service quality and marketing to secure quality inward investments.

Strategic Priority 1

We will develop a strong value proposition that promotes the sectoral strengths in Worcestershire. With a diverse mix of business stock, the following sectors will be prioritised.

• Manufacturing (advanced, automotive, aerospace and high end) • Agriculture and food processing • Defence and security (potential co operation Herefordshire and Gloucester) • Medical Technologies • Logistics • Environmental technologies • Tourism-e.g (we might want to prioritise this because of the lack of good quality hotels, and the requirement to cast the net wider for investment opportunities).

This does not exclude other sectors from the proposition however it prioritises the key Sectoral strengths of the County. Each sector must have a detailed service offer to include:

• Premises and employment land availability • Workforce and skills availability • Business Opportunities • Planning and regulatory • Business Support and account management

It is important that the proposition is realistic and does not oversell to potential investors.

The high level Messages backed up by quantifiable data will centre on:

• Worcestershire has a strong and successful economy

13 • Worcestershire has a skilled and educated workforce • Worcestershire is a great place to visit, live and Invest (Environment, schools and health of workforce). • Worcestershire is in a central location that has a strong transport infrastructure, including close proximity to 4 regional airports and excellent road (M5/M42)and rail links • Worcestershire is located within an hour of some of the most respected Research and Development facilities. • Worcestershire will work collaboratively to achieve successful outcomes for the Investor. • Worcestershire has a strong track record of high quality Inward Investments.

Researching is currently being undertaken to support recommendations around sectoral priorities and to quantify the key indicators that support the high level statements.

We will harness the skills networks and capability of key partners and stakeholders to promote Worcestershire.

A significant proportion of Inward Investment comes from existing investors reinvesting and expanding their operations. We will focus on, local collaboration and structures including:

• Aftercare and re investment • New Inward Investments, establishing priority markets in the UK and Overseas

The private sector can play a vital role in attracting Inward Investment. Worcestershire has a range of Exporters who trade in multiple overseas markets, we will capitalise on these opportunities by ensuring that businesses are fully engaged and actively promoting the Worcestershire Inward Investment offer to their overseas supply chain and contacts .Investors often seek out professional advisers, including commercial agents, banks, lawyers and accountants. These organisations will need to be convinced that Worcestershire is a credible option for Investment.

Both the Chamber of Commerce and Worcestershire Ambassadors can support the development of this approach through their network of businesses

The public sector are pivotal in ensuring that barriers to investment are removed and that Investors are motivated to locate in Worcestershire because of a "can do approach" that seeks to provide solutions to planning, regulatory, property, transport and skills requirements. Worcestershire County Council is "open for business" and economic development is a priority.

UKTI, Chamber of Commerce and other business support organisations locally have a role to play in promoting Worcestershire, through overseas trade missions, contacts with the British overseas Embassies and capitalising on a range of links and relationships with key personnel that have been developed over a number of years. Companies looking to invest will often contact their overseas embassy in London, Worcestershire has already had some success in attracting business opportunities through these routes, we must now build on this by promoting Worcestershire's potential

Tourism Organisations play a vital role in promoting Worcestershire as a place to visit, work and invest. A Visit, Work, Invest brochure is currently being developed and starts to quantify the benefits of Worcestershire as a destination for tourism and investment. Case

14 studies have been developed ranging from local heritage businesses to foreign direct investments, concentrating on the rich diversity of Worcestershire as a location.

The right promotion and routes to market will actively support the use of established and practical approaches that have yet to be fully utilised or engaged. Targeted campaigns are important to attract Inward Investment and in particular to nurture key multipliers and organisations such as UKTI nationally and PA consulting operating at a national and regional level. Inward Investment marketing can also be highly competitive and succinct persuasive messages that address the key decision making drivers will make best use of marketing and promotion resources.

We will develop a common approach and structure to promote, respond, engage and manage Inward Investment opportunities.

Potential Investors may use a variety of different organisations to make an initial enquiry or approach, providing that there is a consistent initial response and a single process for prioritising, managing and monitoring enquiries then there is no reason to try and funnel enquiries into one organisation.

Serious investors typically require detailed information on a location and its opportunities and will want relevant and independently sourced data, which would include:

• Skills availability • Connectivity • Labour costs • Property or site availability

Management of potential and existing investments is critical to reinforcing Worcestershire as a business friendly location that is serious about supporting the growth and development of companies that locate in the area. The approach will be broken down into key stages or phases of development

• Proactive targeting, promotion and Relationship Development - Managed process direct contact made with a potential investor and single contact supplied. Includes links to national and regional Inward Investment organisations such as PA consulting and UKTI.

• Reactive Response - A common approach to providing initial information and data within a specified timescale regardless of the initial touch point.

• New Investment Co ordination and Management - The co ordination and management of an investment can be minimal or complex dependent on the scale of the project. A single responsibility to co ordinate activities will be considered, dependent on resources available and the priority given to Inward Investment activity. Activities may include:

Co- ordinating stakeholder activity, enquiries and actions to completion on behalf of the client

• Sourcing data and contacts • Arranging meetings • Linking to regional and national stakeholders • Meetings with business service providers

15 • Arranging visit programmes - securing a range of ambassadors and other key stakeholder involvement. • Managing the investment through to conclusion • Performance monitoring and reporting to key stakeholders.

After care -Once a company has located in Worcestershire it is important to ensure that we retain, support and encourage local integration, including

• Ensuring the company has a channel through which to seek support • Identifying further expansion opportunities • Early warning of potential issues and barriers to growth • Providing important feedback on business conditions and gaps in support

Phase 1 Milestones

1. Agree Inward Investment strategy with private and public sector partners via the LEP 2. Agree structure, resource s, priorities and responsibilities 3. Carry out research required to develop value proposition and to back up assumptions 4. Develop detailed 3 year plan, actions and timescales.

Next Steps

Input from business board - 15th February 2012 Agreement on strategy and prioritisation - LEP board

16 Growing Places Fund

Purpose

1. To provide an update on the Worcestershire Growing Places Fund process.

2. To recommend projects to receive Growing Places funding for approval by the Board.

Summary In total 11 Expressions of Interest (EOI) were submitted for the Worcestershire Growing Places fund. During the Board meeting on 5th January, it was agreed that the following seven projects could proceed to the next stage:

 Hoo Brook Link Road, Kidderminster  Keytec Link Road, Pershore  Blackmore Park, Malvern  Springhill Farms, Pershore  Berry Hill, Droitwich  University Park, Worcester  Worcestershire County Cricket Club

The Board agreed to delegate the assessment and decision process to the Growing Places Sub Group comprising LEP Board and Worcestershire County Council representatives. Berry Hill decided to withdraw from the process. The remaining six project applications were scrutinized in more detail which included interviewing representatives for each project proposal.

The evaluation criteria used during the interview included:  Current status, including planning permission  Timescales  Existing / planned finance investment package  Forecasted usage, cost, income levels  Estimated payback level and timescale  Number of type of jobs safeguarded and created  Secondary impacts on jobs, services, facilities  Risks and mitigation plans  Project delivery team

17 Each project is summarised below, together with funding sought and the level of funding which the project subgroup recommend is allocated to each project.

Hoo Brook Link Road, Kidderminster The Link Road would unlock 24 hectares of employment and residential land, in an area identified as a key development site by the Worcestershire LEP and Greater Birmingham and Solihull LEP (GBSLEP). Other funding sources include GBSLEP and St Francis Group. Planning permission estimated to be in place early 2012, for construction 2012/3.

The development of this link road opens up land for development. This fits with the local Rewyre Project. At interview, the project promoter proposed re-scaling the project and outlined a revised proposal for £1.2m. The Sub Group had questions around the delivery of the employment element of the scheme. It was felt that a scaled back contribution to reduce the Fund’s risk would be appropriate.

Payback: anticipated to be over 5 years Funding sought: £1.75m Recommendation: The Sub Group recommends approval of £1m

Keytec Link Road, Pershore Deliver an access road and bridge (across a railway line) to enable expansion of the Keytec business park and additional residential housing sites. The current access roads cannot cope with existing or increased levels of traffic resulting from required developments. The Link is identified in the Local Development Plan but a detailed planning application has not been submitted.

Local residents and businesses have expressed strong support for the need to extend Pershore, including development on and around the relevant site. The extended business park could provide 250 jobs, in addition to construction related jobs.

Timetable – a detailed design, costing exercise and implementation plan are still being undertaken. A planning application is unlikely to be achieved until 2013.

Funding sought: £2.5m Recommendation: The Sub Group recommends the LEP formally supports Wychavon District Council's plans for the Keytec Link plans and encourage the Council to re-apply in 6-12 months when the project is closer to implementation and complete costings are available.

Springhill Farms, Pershore Development of a new road traffic island to allow the construction of an Anaerobic Digestion plant and related expansion of commercial glasshouse (costing £5m, to be sourced from their own funds). These site developments would safeguard 30 jobs and create 12 jobs. Without the infrastructure, development and subsequent plant expansion, the company may move out of the area.

Payback: loan repaid in years 2, 3 and 4 of the project. Relatively small amount of funds required, planning permission has been granted and construction could begin in May 2012, completing in July 2012. Safeguarding and creating jobs. The project still needs highways technical approval. This project fits with the outline of the Fund and its objectives.

Funding sought: £275,00

18 Recommendation: The Sub Group recommends approval of £275,000

University Park, Worcester The university is working with commercial partner Wrenbrige to develop University Park in three phases: (1) health and wellbeing quarter including new doctor’s surgery and two residential housing complexes (subject to planning); (2) business development and research and development units; (3) teaching units. The application is for ground works including installation of electricity sub stations to allow progression on phases 1 and 2. Phase 1 would result in 150 jobs.

Payback: loan to be repaid over five year period. The commercial partners have funding to progress key aspects of phase 1 in a short timescale (2012/3), subject to planning. That funding will be lost if the development is delayed beyond 2013 (medical centre) or 2014 (care home). The proposal will be considered by WCC Planning Committee on 1st March. It is recognised that the employment land development is speculation

Funding sought: £2.5m Recommendation: The Sub Group recommends approval of £1m to progress Phase 1

Worcestershire County Cricket Club (WCCC) WCCC is working with Premier Inn to develop a hotel and conferencing facilities. The planning conditions require both buildings to be built, with accompanying flood defence works. Whilst Premier Inn has funding to begin the development, subject to planning, WCCC requires Grow- ing Places funds to allow progress on their facilities in the same timescale with completion of both buildings in 2013.

Payback: loan repaid over five year period The overall project could be completed in a relatively short timescale. 100 new jobs could be created, with indirect positive impacts on the city through increased tourism and conferencing and will have an economic impact in terms of £4.6mil and 35,000 bed nights. The application will be considered by WCC Planning Committee on 1st March.

Funding sought: £750,000 Recommendation: The Sub Group recommends approval of £750,000

Blackmore Park, Malvern Growing Places funding would enable a connection to the electricity and gas grid. This link would allow delivery of a biogas platform – with 60 construction jobs and up to 100 jobs (at the plant and in the wider local supply chain). The initiative could consequently unlock investment as the energy produced could be used by business units planned for the Park and in local agriculture and aquaculture developments. The biogas platform is one of 29 national biogas schemes being proposed by the applicant, alongside other green technology research and development initiatives.

Payback: loan repaid over five year period The applicant suggests Blackmore Park which could attract the kudos of being the first of 29 similar projects to be delivered in the UK. Construction could begin within a few months. Concerns: Deliverability of the biogas plant development could be hampered as funding is still being negotiated.

19 Further details will be provided to the LEP Board on 1st March to make the final decision. In essence, the applicant is in advanced discussions with two equity partners to provide £6.9m of funding for the biogas platform. However there is concern they have not yet committed to the project. An immediate start on the grid connection would reduce risks attached to changes in feed-in and renewable heat tariffs. It may be suitable to enforce contract conditions such that funding for the grid connection is only allocated when finance is secured for the biogas platform.

Funding sought: £375,000 Recommendation: The Sub Group requests that the LEP Board determines whether this project should be allocated £375,000.

Summary The Growing Places Sub Group will meet soon after the LEP Board in order to take forward the approved projects and establish detailed arrangements regarding contract requirements and state aid implications. This will ensure that funds will be released in April 2012 to support the commencement of the approved schemes. Subject to the Board’s decision on the Blackmore Park proposal above, between £300,000 and £750,000 would remain in the loan fund for subsequent schemes

20 Item 4 – Chairs Report

Worcestershire Local Enterprise Partnership

News bulletin no 10 – w/e 17 February 2012

From the LEP Chair, Peter Pawsey.

May I apologise for the delay in issuing this edition, due largely to an incredibly full programme of events in recent weeks, as you will see below. As a consequence, and against all my objectives, you have a bumper edition which spreads to two pages.

We are in interesting and challenging times with Worcestershire’s unemployment figures for January taking a post Christmas sharp upward turn after some four months of generally gradual downward trend, bucking the national picture. Meanwhile it is also reported today that output growth in the West Midlands accelerated to a 21 month high in January, outpacing the rest of the UK and ushering in new levels of business confidence. Encouragement, but what is clear is that we cannot afford in Worcestershire to rest in what has been described to me as ‘a culture of contentment’, as that will surely lead to a culture of complacency. We may still have relatively low unemployment on average, but there are parts of our County where figures are much higher, especially in the 18 to 24 year old category. Meanwhile we have an ageing population that will require the number of employed tax payers to be significantly higher in the years to come if public services are to be maintained at or above current levels. The message is clear - we must strive for more jobs and more working population. At the same time, we have much poor employment with low wage levels, and that defines our role in raising the quality of jobs and improving the training and skills of the workforce to fill them. Please be assured that the Worcestershire LEP is clearly focused on these key objectives.

LEP Offices and Secretariat I am delighted to advise you all that the new LEP office and Secretariat are both up and running. Due to the generosity of CMCA, we are now housed in Suites 1 &2, Brindley Court, Gresley Road, Warndon, Worcester WR4 9FD and we can be contacted on tel no 01905 346180 or via email [email protected] [email protected], [email protected] and [email protected]. I am sure you will all share with me a very warm welcome to Claire Bridges as Operations Officer and Stephanie Hudson as Executive Assistant, working alongside Gary Woodman. We are also grateful both to Government and to Worcestershire’s Council’s for their funding contributions which allow us now to function much more effectively and efficiently. Please feel free to contact the LEP as above and note that these contact details supersede any previous ones you may have been given.

Growing Places Fund Since the last Bulletin we have received confirmation that our approach to awarding funding from this revolving loan fund is acceptable to Government and that our allocated sum is in fact slightly higher than anticipated, at about £3.8m. Much progress has been made in assessing the appropriate recipient projects for this funding and we are well in advance of most LEPs in that regard. We have now received presentations from the six projects that were shortlisted by the appointed public/private panel and we expect to advise the successful recipients shortly, subject of course to a final due diligence exercise that the County Council as stakeholders will require to carry out before funds are handed over. We are very excited about the potential outcome as we believe we have identified good ‘shovel ready’ projects that will quickly come to fruition and create new jobs.

21 Liaison with other LEPs Through a series of events, I have now had discussions with about 25 of the other 38 LEP Chairs and I am most encouraged with the comparative progress made by the Worcestershire LEP on many fronts. It is easy to beat ourselves up on what we may not have yet achieved, but in comparison with others we are envied as being in a good place in many respects. Our comparatively slim LEP Board is certainly a positive in comparison, our progress in defining funding priorities under the Growing Places Fund is near the front of the field, the independent location and staffing of the Secretariat is where many others would like to be, and our now well defined priorities and focus are also well up with the game. Specifically, the six West Midlands LEPs’ Chairs have met several times, from which have stemmed draft planning protocols, responses to the UKTI draft MOU for inward investment, joint working on strategic transport issues (and subsequently budget allocations together with highways authorities), and a number of other emerging matters. Our representatives (Nick Scroggs and Gary Woodman) on the joint working group with Jaguar Landrover, especially in respect of the new engine plant at i54 near Wolverhampton, are also working in the best interests of our automotive supply chain companies, of which there are about 120 in Worcestershire.

Worcestershire LEP Board and Business Board Workshops Members of the LEP Board, the Business Board and other key Partners held a facilitated workshop and dinner, hosted most generously by Worcester Bosch on the evening of February 1st and the LEP Board met again for a further facilitated session throughout the following morning. The purpose of such sessions was to review our mission and vision, the LEP’s priorities, structure, strategy and forward programme. The resultant conclusions included an endorsement of the present structure, now supported by the Secretariat, a reconfirmation of the key roles and priorities and a unanimous view that we should work to provide not just a LEP output and image but an overall Countywide message. That principle needs to be developed and refined but it will draw on all resources and skills available across the public, business and third sectors as appropriate. Worcestershire needs to raise its profile and sell itself as a total entity.

Business in the Community and Prince’s Trust On 31st January I had the honour of representing the LEP at a reception and workshop in St James’s Palace by the kind invitation of His Royal Highness, The Prince of Wales. LEP Chairs from across England were given presentations on the work of these organizations and how they could assist LEPs in tackling some of the employment issues that we face, particularly with younger people. Prince Charles and the Secretary of State for Communities and Local Government, Eric Pickles, both contributed to the discussion and I hope that we are able to arrange a future event in Worcestershire at which key representative of both BITC and the Prince’s Trust can address the potential for collaboration across our County.

LEP Business Board At its meeting on Wednesday last, 15th February, the Business Board received interesting presentations from David Onions on the work of the Worcestershire County Council Statistics and Intelligence Unit, which revealed the depth and quality of information available, and from Nicky Griffiths of the Chamber of commerce on the work to date of the LEP’s Inward investment Strategy sub group. The latter is making excellent progress towards recommending the essentials needed to provide and maintain a ‘red carpet treatment’ service to would-be inward and indigenous investors in Worcestershire. The Board also received feedback from the LEP workshops and has challenged itself to review its representative makeup and balance. We shall shortly be issuing wider invitations in this respect.

22 LEP Business Conference The Conference is now imminent and will commence at 9am this Thursday, 23rd February, at Sixways. At the time of writing I understand that we have well over 175 registered attendees but there are a few places still available, so please call the Secretariat quickly if you have not yet registered. The Conference will celebrate the LEP’s achievements to date, will hear from successful entrepreneurs including Cecil Duckworth, who 50 years ago founded what is now Worcester Bosch, will learn more on available apprenticeship schemes, and finally will hear how and where the LEP is planning to focus its priorities in the year to come. I hope to see you all there.

West Midlands MEPs On Friday 17th February the Business Board Chairman, Tony Hyde, and myself met with the three Conservative West Midlands MEPs, Malcolm Harbour, Phillip Bradbourn and Anthea McIntyre. Following a presentation on the LEP’s work to date and plans ahead, we received strong promises of support and tangible information on the availability of European funds and methods of access to it. It will be one of our objectives to maximize such funding opportunities and other support for the benefit of Worcestershire.

23 Item 6 – Feedback from the Training Away Day

Introduction This note has been drafted to capture the key outcomes of the Board away day held at Worcester Bosch on 2nd February 2012. The event was attended by:  Peter Pawsey (Chair)

 Simon Geraghty

 Carol Gandy

 Paul Middlebrough

 David Green

 Neil Schofield

 Dean Atwell

 Ed Webb

 Alan White

 Gary Woodman

Facilitated by:  Mark Pearce

 James Hassett

LEP Support by:  Clare Bridges

 Stephanie Hudson

The Board noted a very positive session with the Business Board the previous evening. The consensus was a good deal of good will shown by the business community to see the LEP succeed and a desire to engage.

The morning’s discussions were shaped around three broad themes. The first was based on the role of the LEP, ways of working and structures. The second was based on priority areas of activity in the next 1-3 years. The third was based on communication. The detailed programme is attached at Annex 1.

Session 1 Key points agreed;  The LEP should be a “coalition of the willing”

 It should be results oriented

 Principal purpose of the LEP was to promote jobs and growth

24  Partners were prepared to buy into a common purpose

 Consequent need for greater coordination with the acceptance that individual organisations would compromise and work to the common good

 There was an ongoing role for the LEP to deliver business directly for Government and exploit direct contact and accountability to Ministers

 However, the ‘day job’ should be on maximising investment in Worcestershire from:

o existing businesses growing in Worcestershire

o new businesses (re) locating in Worcestershire

o new businesses starting up in Worcestershire

o the public sector encouraging this growth

 The Board structure was felt to be fit for its current purpose

o But to kept under review as priorities and actions emerged and evolved

 The LEP’s emphasis should be on Worcestershire as a whole and maximising investment in the whole county

 An executive support group for the Board should be created as a matter of urgency

 There was also a need to look at and refine the Business Board structure and composition as priorities became established

Session 2  There was a desire to see a single Worcestershire “brand” to promote investment

o Needed specific further work - Worcestershire Enterprise / Worcestershire Works were early suggestions

 The Board agreed there should be a unified approach in promoting the offer

 However, there was a need to understand and define the offer(s) in Worcestershire to investors

 There are a series of factors that impact on the suitability/ desirability of Worcestershire as a place to invest– those identified are set out in Annex 2

 There was a need to bring the factors to life by drawing together existing facts and figures against each factor into a presentation in map and summary factual form to inform prioritisation discussions and decision making

 The summary map and paper will be prepared for the next Board meeting 1st March and considered as the main agenda item

25  Partners agreed to provide relevant executive support (and existing information) to work with Gary Woodman in the next three weeks to prepare this paper

 The Board will use this information to identify priority actions and organisations to own and lead delivery of these

 On 1 March the Board will also agree the LEPs level and scale of ambition in terms of job creation and investment and set appropriate targets for the next 1-3 years

 The intention will be to provide a “red carpet” treatment for potential investors creating (a potential) single point of contact

Session 3  The Board agreed that the emphasis was not on the profile of the LEP per se, but the growth of the Worcestershire economy, supported, aided and abetted by the LEP and its partners

 The LEP agreed that their approach was not to create a separate vision, but to support the long term vision for Worcestershire as it emerged from the Shenstone group deliberations

 There was an urgent need to start on the Worcestershire brand identification work, and the communications strategy for the LEP

 Priority had to be success stories for business investment to reinforce the message of the single Worcestershire brand

 David Green offered support from the University PR team to help scope out the communications brief

 Key messages will follow from the agreement on priorities at the March 1st Board Meeting

 The awareness raising and dialogue sessions needed to continue between the Chairman and the individual Partner organisations

 Need to retain the sense of purpose and the coordinating and catalysing role of the LEP in dialogue with key political audiences – particularly Ministers and MPs – all partners had a role in reinforcing this

 Direct business engagement with schools should be a priority as part of the broader dissemination of the Worcestershire brand.

 There is an urgency to respond to upcoming opportunities such as the arrival of the Olympic flame in the County during the summer and Worcestershire MPs’ initiative on an exhibition of business growth

26 Annex 1 Programme for Board Members Away Day

The First Session Introduction including feedback from the dinner with Business Board members Discussion will cover the following topics;  Role of the LEP

 The LEP’s place in Worcestershire, and its relationship with other bodies

 Effective ways of working for the LEP to adopt

 Hurdles that could slow/hinder LEP success and how we tackle them

 Board composition/support structures – have we got it right?

Coffee break (up to 30 minutes maximum).

The Second Session Will be up to 1 hour, and will focus on our priority and future activity for the LEP over the next 1-3 years.

The Third Session Will run up to 1 hour, and will focus on –“How do we communicate the role, ways of working, relationships, and priority activity effectively to the Partnership members and wider audiences”?  Mission/Vision

 Profile/Image

 Key messages

 Supporting mechanisms

o Website

o Publicity material

We will then close with a summary and suggested next steps. Followed by lunch.

27 Annex 2 Factors Affecting the ‘Worcestershire’ Offer

• Quality of life / environment, (including safety and security)

• Housing

• Education (Schools, FE, HE)

• Skills

• Workforce (including health and turnover factors)

• Infrastructure

• Broadband

• Transport connectivity by road, rail and air – particularly Birmingham Airport

• Utilities

• Availability of sites / planning.

• Availability of / access to finance.

• Business advice / support

• Key assets

• Priority / target sectors

• Geographic location

28 Item 8 – Events

Future Events and Dates 22nd Feb Shenstone Group environment sub group @ County Hall

23rd Feb Worcestershire LEP Ist Annual Conference @ Sixways 9am till 1pm

24th Feb Wyre Forest DC ‘State of the Area Debate’ @ Stourport Sports Club 1pm to

28th Feb Place Shaping Group @ Malvern Hills Science Park 2pm to 4pm

1st March LEP Board at LEP HQ 3.30pm to 5.30pm

2nd March Institution of Civil Engineers, National Infrastructure Plan briefing, Birmingham

6th March Shenstone Group @ Hindlip Police HQ, 9.15am to 1.30pm

9th March Rail Franchise Workshop @ County Hall 9am to 12noon

12th/13th DCLG Local Economic Growth workshops @ Eland House, Westminster

21st March North Worcestershire Business Engagement workshop with GB&SLEP tba

28th March LEP Business Board tba

29th March West Midlands LEPs Chairs’ meeting Birmingham, 7.30am to 9.30am

29th March LEP Board @ LEP HQ 3.30pm to 5.30pm

30th March International Exports Event @ Bosch

29 Item 8 – Start Up and Capacity Fund – Position Statement

LEP Start Up Fund Contract

Allocated Claimed Remaining Invoices/Committed Purpose Company Invoicing the LEP Staff Costs Staff time and £31,300 £13,750 £17,550 £7,385 Overheads Office £5,055.57 Supplies

Database £15,000 £0 £15,000 WCC Claim

Training £8,000 £0 £8,000 £1,100.00 Production Video of (4) Interactive interviews £1,743.66 LEP Away REDC Day Facilitation £500.00 LEP Away BOSCH Day Venue £4,050.00 LEP Event Worcester Rugby Club LEP Capacity Fund

Publicity £10,000 £4,250.00 £5,750

[Type text] Capacity Fund Round 2

The Partnership was asked to outline its activities that it thought it would spend the Capacity Fund money on:

Activity 1

Title: To provide additional capacity within the Worcestershire LEP to enable it to benefit from ERDF opportunities which the current programme and help to prepare for ERDF opportunities in the 2014 – 2020 EU Programme.

Description: The Worcestershire LEP has the ERDF opportunities which it wishes to exploit: Following the announcement of an Open Call for ERDF Priority 3, there is an opportunity to work with The Marches LEP and Staffordshire & Stoke LEP to develop and deliver capital projects which will help achieve the ERDF outputs, particularly those not currently being achieved and to deliver the LEP's priority initiatives linked to economic growth and Job creation.

There is an awareness that the new 2014 – 2020 Programme will operate under very different circumstances to the current programme and partners will need to be fully prepared and develop their relationships in order to ensure they are in a position to exploit this new opportunity.

This activity will therefore allows us to invest a dedicated post in partnership with The Marches LEP and Staffordshire & Stoke LEP for three years to work across the LEPs to build the capacity, skills and expertise to bid for ERDF funding in to our priority projects.

Activity 2

Title: Consulting with Stakeholders and business Description: A consultation exercise will be undertaken to inform the LEP business planning process. Following past Start-up and Capacity Fund Bids The LEP has now defined its role and is creating a business plan, in year 1 this activity will ensure that the LEP is responding to business needs, years 2 and 3 activity will provide an opportunity to reflect on performance and refresh the plan to accommodate the changing environment.

Consultation activities will support the sub-groups of the Business Board e.g. Employment and Skills Board, Access to Finance Group, which are charged with the delivery of LEP priorities and to ensure wider engagement of the local business community.

The LEP will work with and identify new Ambassadors and local stakeholders to support opportunities for business investment and collaborate effectively for the benefit of the County.

Activity 3

Title: Research and Intelligence Description:

The LEP will undertake an analysis of new and emerging industries and/or clusters (The green economy, security and defence, food and drink linked to food processing and advances in the horticulture industry, advanced manufacturing and high technology industry) [Type text] in the county linked to potential opportunities such as identified key strategic employment sites, business supply chain opportunities including diversification and market identification.

The research will take account of barriers to entry to either the sector or supply chain for local companies, while also identifying the business opportunities which exist and can be exploited by local firms.

The LEP will identify gaps in existing intelligence and identify the collection of new economic data to inform the LEP and its partners to target specific investment/funding to attract and grow new and emerging industries.

The research in year 1 will commence with identifying companies in the county with growth potential and linked to analysis of emerging growth clusters, future years will build on this taking into account other key sectors for the county identified above.

Based on your initial thinking please populate the table below for the activities you have identified:

Activity Activity Title Timescale Funding Required from Capacity Fund No Round 2* (as 2012/2013 2013/2014 2014/2015 above) 1. Capacity for ERDF Aug 2012 8, 000 8,000 8,000 future funding – Dec 2015 2. Consulting with 10,000 10,000 10,000 Stakeholders and business 3. Research and 7,600 7,600 7,600 Intelligence

TOTALS £25,600 25,600 25,600

[Type text]