Date 10 May 2017 Version 1.0 (Scrutiny) Approved by KB
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Date 10 May 2017 Version 1.0 (Scrutiny) Approved by KB ECONOMY AND REGENERATION PORTFOLIO OVERVIEW Portfolio Summary In Quarter 4, the Council began the process of developing an agreed framework for delivering Inclusive Growth – that is an approach to economic growth that creates opportunities for all and distributes the financial and other benefits of growth more fairly. This is not something the Council can address on its own however, and discussions involving key partners have begun to look at how they might support this work, which will develop during 2017/18. We are continuing to address youth unemployment through initiatives such as our work clubs. In addition, during Quarter 4 the Council ran the “Hackfest” event, which aimed to connect young people to businesses that use coding skills, engaging 34 young people and 5 businesses. It also ran a jobs fair specifically for employment opportunities at the airport which 308 people attended. Encouragingly, levels of employment, across all age groups, including the young, are continuing to fall. Work and skills will continue to be key priorities for the council, during 2017/18 and beyond, and these will be key elements of our work on Inclusive Growth. Town centre businesses voted overwhelmingly in October 2016 to make the town centre a Business Improvement District (BID). During this quarter the Stockport BID Company and an Interim BID Board were set up and an Interim BID Manager appointed. The Stockport BID will unlock almost £2.5m of additional funding over a five year period to be spent on improving the town centre and encouraging more people to visit it. And now that the BID has been established, it is hoped this will enable other contributions to be secured. A four-storey office building was completed at Stockport Exchange. Three of the four floors have now been completely let, with announcements on the fourth due imminently. Early tenants include Sainsbury’s, Cafélito and Stagecoach. The Holiday Inn, which opened in Quarter 3, has performed extremely well. Future phases will include a further 300,000 square feet of office space. A range of projects and initiatives have been established to improve the Market and Underbanks area. As well as the Council, these involve a number of partners, developers, landlords, agents and businesses. Progress at Redrock continues, with a number of additional lettings during the quarter. Construction is on schedule to be completed in late 2017. Our museums are performing well, with visitor numbers continuing to rise. Popular events such as the Strawberry Studios exhibition and Hatstock have been key factors in this success. Work on the A6 to Manchester Airport Relief Road has now been ongoing for two years and is scheduled to be completed in spring 2018. 2016/17 was the third year of the nine-year, £100m, Highways Investment Programme and indications so far are encouraging, with all measures relating to the condition of our roads and footways showing improvement. Cllr Kate Butler, Portfolio Holder (Economy and Regeneration) 2 Revenue Budget (Outturn) Capital Programme £000 £000 Cash Limit 2,792 2016/17 Capital Outturn 187,709 Outturn 2,800 2017/18 Capital Budget 91,869 (Surplus)/Deficit 9 2018/19 Capital Budget 49,151 “Approved Use of Reserves” Total 3,184 Utilisation of “Approved Use of Reserves” 1,035 in the above forecast “Approved Use of Reserves” Balance 2,149 3 1. ECONOMY AND REGENERATION PERFORMANCE MONITORING AND KEY PROJECTS 1.1. Priorities and Activity Update 1.1.1. Transforming the Local Economy The Council recognises that economic growth has a positive impact; but at the same time work to stimulate growth must also ensure that all residents and all parts of the Borough can benefit from it. For that reason this Council will ensure that its financial and staffing resources are targeted at supporting inclusive economic activity and at improving issues which the private sector alone does not address. The process of developing an agreed Inclusive Growth Framework for the Borough began during Q4. As this is not something the Council can address in isolation however, discussions involving key partners have begun to look at how they might support this work. 1.1.2. Supporting Business in Stockport Business Events/Engagement The Growth Service engaged on a one to one basis with 35 businesses during the quarter and an additional 140 directly through networking events and workshops organised by the team. The Council continues to provide two members of the team to work part time as Business Growth Hub engagement officers and to work closely with business support providers with the Manchester Growth Company. Business events held by the team during the quarter included the Finance and Professional Sector network, the Creative Sector network, two workshops with food and beverage providers in the town centre, meetings with Princes Street Traders and one Stockport Economic Alliance meeting. The Business Bulletin is currently emailed to over 5,700 local contacts with issues circulated in February and March, providing information to local businesses about events and investment news relevant to Stockport. The Stockport Business Finance scheme was also launched in January, providing opportunities for businesses to explore a range of finance options via the GM Access to Finance scheme. During Q4 the Business Improvement District (BID) Company was established, an Interim BID Board set up and an Interim BID Manager appointed. Baseline and Operational Agreements between the Council and the BID Company have been completed. BID banding has been agreed and is now being used and BID levy bills have been issued by the Council. Get Digital Faster The first 2 stages of the fibre broadband project have now completed, bringing 72 new fibre enabled cabinets across Stockport. Average take-up of superfast broadband via the new cabinets across the 8 participating local authorities has now reached 28%, which enables the programme to fully benefit from Gain share funding and further investment by BT in areas that remain unserved. This extended programme starts in April 2017. It aims to build additional fibre enabled cabinets across the borough to reach a further 570 premises. 4 Stockport Business and Innovation Centre (SBIC) The centre now has 41 office based customers and further 27 are either virtual customers or use the Shared Office facility. Over 137 people are known to work within the facility and there remains potential to grow as larger, unlettable units are divided into smaller units that are aimed at new start businesses. Over the year, the Business incubation director, located on site at SBIC, has supported 70 different business projects, providing around 500 hours of one to one support and delivering 15 business events at the centre. This support has led to 12 new jobs being created by businesses in the centre, 8 have experienced increased turnover, 8 have entered new markets, and 7 are expanding their product range. The final of the Pioneer 10 competition, which has supported a number of new and young businesses, will be held in May 17. Houldsworth Mill Business and Arts Centre The centre has maintained occupancy above 75%, reaching 84% in March 2017. This centre provides workspace for over 70 businesses, employing in excess of 260 people. The Council’s lease on this property has been extended to June 2017 after which the facility will be transferred to the landlord to continue operating as managed workspace. Business Investment New business investment announcements during the period include the relocation of Volcanic media into 5,000 square feet at Dale House in the town centre, creating 33 new jobs over the next 2 years, and financial services group Together acquiring No 1 Lakeside at Cheadle Royal Business Park - The 33,000 square foot property was bought to facilitate the company’s growth plans which is based in neighbouring Lake View building. Economic Assessment/Business Information The Stockport Economic Assessment will be refreshed during Quarter 2017 and work is ongoing to improve access to the council's business web pages. Brownfield Land and Mills Reviews Work is ongoing to build understanding of Stockport's mills resource and other brownfield land. Stockport Town Centre Business Improvement District (BID) Preparations for the start of the BID on 1st April 2017 are well underway. A BID Company has been established, an Interim BID Board has been set up and an Interim BID Manager appointed. Baseline and Operational Agreements between the Council and the BID Company have been completed. BID banding has been agreed and is now being used. BID levy bills have been issued by the Council. 1.1.3. Tackling Youth Unemployment The Employment and Skills Advisers continue to support clients in the Supporting Families programme and through the delivery of GOALS courses to wider groups. 30% of the clients worked with have achieved positive outcomes going into either employment, volunteering, training or education. The Council continues to use Employment and Skills plans as part of the planning conditions when agreeing commercial development. This has provided a significant number of jobs, apprenticeships, training and work experience placements for local people. The 5 Council's work clubs continue to offer a valued service to clients. Recent impact analysis with 70 clients shows that 54% obtained work, 14% are returning for further support and 4% were referred for support from other services. The Council ran a digital Hackfest to encourage young people to connect with business that use coding skills, engaging 34 young people and 5 businesses. The Council also ran a jobs fair specifically for the employment opportunities at the airport. 308 people attended the jobs fair with a number being offered interviews for jobs the following week, as well as employers finding good quality candidates for difficult to fill posts.