- Date:
- October 2019 Version
- 1.0
- Approved by
- DM
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ECONOMY AND REGENERATION PORTFOLIO OVERVIEW
Portfolio Summary
Since launching my portfolio agreement back in July, we have made good progress in several areas and seen major development in potentially achieving better public transport.
The Mayoral Development Corporation (MDC) is now a reality and the prospect of 3,500 new homes, many of which will be affordable, is now on the horizon.
Working with Homes England and with cabinet agreeing to a £100m loan
facility to ‘kick-start’ development, this represents a significant period in the
regeneration of our town centre and realising the true potential our borough has. Indeed, with the Mailbox – aka the old Sorting Office – nearing completion, the first project within the MDC boundary is almost upon us, providing 119 new homes.
Our work within the Market Place is bearing fruit: footfall is up 6.3% compared to the previous year,
above the forecast of 5%. Of course, the success of the Produce Hall is central to the Market Place’s
resurgence and I make no apology for being a vocal supporter of it. Of course, there is still much to do; I am still mindful that people want to see a more comprehensive outdoor offering. I do, too, but this must be sustainable for the long-term: we only need to look at what recently happened in Rochdale to understand that markets are a very delicate area within retail.
Occupancy within Stockport Town Centre is on course to meet our 75% target and we are hopeful we will meet our target of 300 independent businesses within the Town Centre this year. Indeed,
proposals we’re set to bring to E&R scrutiny in December will, I hope, support us in meeting this
target while also supporting the regeneration of our district centres. Regenerating our district centres is something I am incredibly passionate about: if we think about
‘the Stockport pound’ and how money spent locally circulates and multiplies, thereby benefiting more
residents, district centres are at the heart of delivering that. This also links into Community Wealth Building, which I touch on below.
Continuing with the Town Centre, our plans for Adlington Walk are ongoing and Stockport Exchange 2 is progressing well. Meanwhile, the old White Lion pub redevelopment is nearing completion and will bring 11 new homes right in the heart of Underbanks. Other developments within the Town Centre are also under discussion and I hope to bring you news about these soon.
My aim for Stockport to lead on walking and cycling within Greater Manchester has been recognised
by Greater Manchester’s Walking and Cycling Commissioner, Chris Boardman, who is delighted by the progress we’re making. We’ve recently gone to consultation on eight projects and the hope is these will have ‘buy-in’ from local communities and have a true, bottom-up approach.
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Walking and cycling proposals shouldn’t only aim to reduce car journeys, thereby supporting
healthier lives and addressing poor air quality, but make our communities nicer places to live and support wider road safety. I am grateful for the enthusiasm and ideas WalkRide groups across Stockport have and look forward to seeing further proposals from them in the coming months.
Linking into walking and cycling is improving public transport and the proposal for bus franchising is essential to reducing congestion, improving air quality and delivering integrated public transport after years of theory, speculation and discussion.
I am a vocal advocate for bus reform and feel we have an enormous opportunity to deliver a bus network that Stockport and Greater Manchester can be proud of. I believe we can gain the routes we need that will benefit people and communities, such as improving links to existing rail and Metrolink stations, while having a network that is truly accountable, more affordable and offers far better value for money.
Indeed, the franchising model is forecast to deliver around £345m in economic benefits across
Greater Manchester and I believe if we don’t take this opportunity now, we will regret it for many
years to come from an economic, social and environmental perspective.
The council’s statutory response will, from the outset, push for any benefits of bus franchising to
reach the borough as soon as possible. I also hope the government will provide the funding necessary to avoid a rise in the mayoral precept relating to bus franchising. Nevertheless, members who are pro-franchising must support the consultation and get their communities involved – and I am happy to help in this regard.
Finally, on Community Wealth Building, the council now has its own Steering Group and has commissioned the Centre for Local Economic Studies (CLES) to look at how the council can help develop a more socially just and progressive local economy.
CLES work closely with local authorities across the country, including Manchester, Oldham and most notably Preston, to support the delivery of local economies that people feel work for them: this is where our work on district centres comes in and supporting the development of small businesses.
The theme of Community Wealth Building is something I will be regularly returning to over the coming weeks and months.
Cllr David Meller, Cabinet Member for Economy and Regeneration
- Revenue Budget (Forecast)
- Capital Programme
£000
1,842 1,842
0
Cash Limit Forecast (Surplus)/Deficit
£000
63,424 44,544 33,616
2019/20 Capital Budget 2020/21 Capital Budget 2021/22 Capital Budget
Reserves
Approved use of reserves balance is £1.927m. Planned draw down at Quarter 2 is £0.403m (revenue) and £0.097m (capital) draw down.
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ECONOMY AND REGENERATION 1. DELIVERING OUR PRIORITIES
This report is based on the 2019/20 Portfolio Agreement, approved by Cabinet on 23 July 2019. The link to the Agreement is here.
A full update of performance data is in Appendix 1 to the report.
Priority 1: Inclusive growth
We will focus on support and regeneration of the local economy, including significant investment in the town centre. There will be a greater focus on securing the economic, environmental and social benefits of growth for local people, supporting the creation of good jobs for people to increase individual and community independence and taking steps to address the rising cost of living.
Progress on delivery projects, with highlights and exceptions
Local Employment & Skills Plans Agreements
Good progress continues to be made on the Stockport Exchange Phase 3 Employment & Skills Plan, including very positive engagement between the contractor (GMI) and Stockport schools for project work, and Stockport College for student site experience and work placements.
Other developments this quarter include the agreement of an Employment & Skills Plan for Adlington Walk (which begin soon), completion of the plan with the RG Group for the LSH Mercedes development and continuation of the Employment & Skills Plan for Elisabeth Mill.
GM Good Employment Charter
The GM Good Employment Charter has been actively promoted through the Business Bulletin, social media, Stockport Economic Alliance and the Stockport Work & Skills Board. The Cabinet Member for Inclusive Neighbourhoods also promoted the benefits to employers at the Jobs Fair. To date seven Stockport employers have signed up as Supporters (including the Council). A further big push will therefore be made through business engagement routes to encourage more employers to support the Charter by promoting its benefits.
European Social Fund (ESF) Skills Support Programmes
The ESF Skills Support Programmes (Skills Support for Employment, Skills Support for the Workforce and the NEET Support Programme) have all now gone live, and have been promoted via the Working Well Local Integration Board to ensure they are integrated with the Working Well Programmes. Skills Support for the Workforce has also been promoted via the Stockport Business Bulletin, and via Skills Need Analysis support provided by the GM SEDA (Supporting Employer Demand for Apprenticeships) Advisers for local businesses accessing Apprenticeship Grants. The ESF Skills Support for the Workforce Programme delivered by the Growth Company is also a key support in the Thomas Cook Task Force set up to support affected employees.
Stockport Work & Skills Board
The Board met during Quarter 2 and continues make progress on its Action Plan priorities. The Board has also received briefings on progress regarding the GM Good Employment Charter. Current work commissioned to review the Work & Skills offer in Stockport will support the work of the Board going forward in terms of responding to gaps, and avoiding duplication where possible.
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Small and Medium-sized Enterprises (SME) Apprenticeships Grant
Since the Grant Offer went live at the start of 2019-20, 16 employers have accepted a grant. The earliest offered grants are now reaching payment stage. A similar number of employers have received information / application forms and are considering applications. Forty grants are available, all to be offered by 31st March 2020. Regular marketing has taken place through the Stockport Business Bulletin, social media promotion and awareness raising at Business Network Groups.
Support for new business start ups
People Plus delivers support for new business start-ups on behalf of the GM Business Growth company using local authority funding and the European Regional Development Fund. Between April 2019 to end September 2019, 42 potential entrepreneurs have received support from the service, leading to 11 new business starts to date. One-to-one advisory sessions are delivered fortnightly from Stockport Central Library, as are themed workshops (e.g. on marketing skills).
Business/education liaison and support
Gander supported 268 students during the 2018/19 academic year. Funding for the Gander initiative is secure for another academic year and a new Gander coordinator is now in place. The memorandum of understanding has been revised and issued to all partners.
The Economy, Work and Skills team promoted and supported the "Meet your Future" speed career networking event in July, delivered by Bridge GM. The team encouraged Stockport employers to participate in discussing their careers and career choices with young people from across GM. Manchester Digital will deliver a version of this called "Meet your Digital Future" event in March 2020 in the Town Hall Ballroom. This will be a speed career networking event aimed at encouraging young people to consider careers in digital and technology.
The annual Education and Training information event took place in the Town Hall Ballroom on 15th October. All local further education colleges and training providers attended and all young people in Years 10 and 11 received invitations to attend.
Business engagement/liaison and events
Since April 2019, the Council has delivered two sector networking events (finance/professional and Digital), three area business events, a round table consultation for the digital sector and three Stockport Economic Alliance meetings. Topics included Preparation for Brexit, the Clean Air Plan and Apprenticeship Grants. The Council also supported an event for businesses in Stockport's Care Sector. The Employment, Work and Skills team has also supported Stockport Business Awards, Marketing Stockport, Business Growth Hub and the Chamber of Commerce in promoting and supporting their local business events.
Account management support was provided to approximately 20 businesses throughout the period, with additional enquiries referred to the Business Growth Hub as appropriate. In addition, the business incubation service at Stockport Business and Innovation Centre has provided direct support to 26 businesses and delivered six events since April.
Growth sector support
The Council supported the Finance and Professional Sector and Digital Sector through networking events and opportunities to share business and sector information. A Finance and Professional event took place on 1st May 2019 and a Digital event on 30th May 2019. The Council also worked with GMCA to understand productivity issues in these sectors and deliver a joint workshop on 10th September that also involved Manchester University and MMU, which focussed on barriers to growth in the digital sector.
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Business Growth Hub
Between April and September, the GM Business Growth Hub has supported 63 businesses, leading to the creation of 35 new jobs (compared to 594 businesses and 260 new jobs across GM). The majority of those receiving support were micro businesses (with up to 10 employees). The greatest job increases were in Heatons North, Brinnington & Central and Manor. In addition, 42 potential new entrepreneurs have been supported, leading to the creation of 11 new businesses (for GM these figures are 183 and 54). The Economy Work and Skills team, and the staff at Stockport Business and Innovation Centre (SBIC), continue to promote Business Growth Hub support and events, referring clients to the service as appropriate. The Growth Hub expects to have a dedicated Account Manager in place by November, to provide Stockport-based businesses with a dedicated resource. This proactive approach aims to have a positive impact on outcomes, productivity and growth.
Social Value
GMI Construction Group's contract from MUSE Developments to build Stockport Exchange Phase 3 (with Council money) is a current project with significant Social Value commitments in terms of work, skills and engagement with schools and colleges. There has been strong progress on this project during Quarter 2 in terms of engagement with Stockport schools and Stockport College.
Agreements to the Social Value commitments were also secured as part of the Adlington Walk investment, through the tender process and subsequent discussions with Graham Construction. These are tracked and monitored via meetings with contractors and use of the Construction
Industry Training Board’s monitoring database.
National social value performance measures were identified for potential bidders to address during the procurement process for the Stockport Steps to Work contract.
The Council has provided an overview of its priorities to STAR Procurement to map against the National Social Value KPIs to inform the development of a Stockport Social Value Charter.
Early preparatory work started in Quarter 2 with colleagues in STAR to review and update the Stockport Social Value Guidance, to make it fit for purpose and in line with STAR now adopting the national Social Value KPIs and Social Value Portal.
Officers and Cabinet Members are working with the Centre for Local Economic Strategies (CLES) to assess the scope for developing community wealth building in Stockport, and the role which the Council can play in the future as regards deepening existing progressive activity and harnessing even greater benefit for the Stockport economy and its residents. The CLES model is based on five strategies covering procurement, employment, land and assets, financial power and the democratic ownership of the local economy, and has been developed over the last ten years following
successful work with Preston and the “Preston Model”. CLES are clear that Stockport needs to
develop an approach and solutions that are appropriate for its local needs, and this work will be progressing over the next quarter. Updates on this work will be reported through future Portfolio Performance and Resources Reports.
Economic information
The Stockport Business Bulletin, containing business news and event information was circulated to around 2000 business contacts in August and September.
The Stockport Economic Overview (2019 edition) was posted on the Council's web pages in July, containing key statistics regarding the Stockport economy.
Employment statistics are published and circulated monthly via email.
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Information on the Council's web site is reviewed regularly and amended whenever necessary. The commercial property database is available online and via the Employment Work Skills team. EGi regularly updates the database. (EGi is the Estates Gazette website, which acts as a conduit for commercial property information and encourages all commercial property agents to post information about their available industrial/commercial sites and premises and details of any sales/lettings).
Natural Capital
Work is underway to embed a natural capital policy in the Stockport Local Plan. The evidence underpinning the strategy is in place and the Council will draft the policy in time for the next public consultation on the Local Plan due in Summer 2020. This work builds on the Natural Capital work for the Greater Manchester Spatial Framework.
Local Plan/GMSF
The Council has continued to contribute to the development of the GMSF. The consultation on the revised draft closed in March this year and work has been underway since then to analyse consultation responses. Officers have continued to work towards achieving the optimum urban housing land supply and this will continue in the coming months. Work also continues on assessing the allocations and working towards masterplans for the appropriate sites. On 27th September 2019. GMCA agreed that consultation on the next stage of the GMSF would take place over a 12- week period from Summer 2020.
Work has also been undertaken in respect of evidence across a wide range of topics to support the Stockport Local Plan (SLP), with further evidence to come. Officers have reported progress to the Local Development Framework Working Party and have agreed with members a series of meetings to outline that evidence and to discuss potential policies and allocations to support a local plan that meet the aims above. It is intended that consultation on the Draft SLP will take place alongside the GMSF consultation next summer.
Performance Highlights and Exceptions Number of breaches of planning control discovered as a % of complaints received (E&R1.1)
An increase in number of breaches has been found. As in Quarter 1, it is evident that the Council is receiving fewer complaints where there are no planning breaches. The service cannot determine the number of breaches as it is dependant of the complaints received and what is found on site.
Percentage of breaches where formal action was taken (E&R1.2)
The majority of the above breaches are resolved by negotiation – just 11% required formal action this quarter). This success is underpinned by the fact that the Council will take formal action when required.
Square feet of office, retail and industrial space let or sold to new occupiers (E&R1.5)
The 2019/20 outturn for this measure is currently forecast to be 550,000 square feet, which falls short of the 600,000 target. Though this measure can be subject to considerable volatility, the current position is similar to the same period in 2018/19. Increased sales/lettings are expected towards the end of the year, as summer is generally a quieter period for deals being signed. There is also some anecdotal evidence suggesting that uncertainties relating to Brexit have contributed to stalled investment decisions, in which case there is likely to be a degree of pent-up demand in the system. Potential deals before the end of March include those relating to space in Redrock, M&S, BHS and Stockport Exchange.
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Priority 2: Tackling unemployment
Our work on inclusive growth, set out above, aims to support creation of attractive employment opportunities within the Borough, whilst having a strengthened focus on securing the economic and social benefits of growth for local people. In addition to this, we will provide and support access to services to improve labour market inclusion, assisting those citizens who want to work, develop skills and increase earnings, but need help to enable them to enjoy sustainable employment opportunities.
We remain committed to the development of a youth jobs guarantee, alongside employment, skills and apprenticeship programmes, laying the foundations that will help eradicate youth unemployment. We will develop an employment pathway for looked after children and those with additional needs.
Progress on delivery projects, with highlights and exceptions
Stockport Steps to Work
The Stockport Steps to Work contract to provide employer engagement and in-work support has gone out to the market seeking proposals during Quarter 2, with submissions to be received and evaluated in early Quarter 3 for contract award and start.
Stockport Jobs Fair
The Jobs Fair took place held on 24th September. Over 40 employers and 650+ people attended. Initial feedback from both jobseekers and employers has been very positive.
The Jobs Fair was able to provide immediate support for former Thomas Cook staff, following the closure of the business the previous day, as part of the wide-ranging Thomas Cook Task Force set up by the GM Mayor. The regional BBC News and Radio Manchester attended to report on the support for Thomas Cook staff affected.
Three sessions on Apprenticeships were also delivered and these were well attended.
Work Clubs
Work Clubs in the three localities (Bridgehall, Lancashire Hill and Offerton) continued during Quarter 2. The Work Clubs offer and team are now part of the Continuing Education Service, and the staffing has been reviewed to ensure strong support is in place for the Service's learners, including through support at the Centre on Hardman Street. The team also provided support to jobseekers at the Jobs Fair.