08:00 1 Welcome and Introductions Geoff Miles, Chair 08:05 2 Review
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Kent & Medway Business Advisory Board Thursday 13 September, 8.00 – 10.30 am in the Inspiration Suite @ The Village Hotel, Maidstone Light breakfast from 7.30 am Programme 08:00 1 Welcome and Introductions Geoff Miles, Chair 08:05 2 Review of BAB actions arising since the last meeting Dave Hughes 08:10 3 Matters arising 1) Local Growth Funding Local Growth Funding is capital funding given to Local Enterprise Partnerships for projects that benefit the local economy (and produce jobs, houses or new learners). A call for new expressions of Interest of interest closed on 31 Sarah Nurden August. A list of potential projects will be shared with BAB Members for their initial views. 2) Kent and Medway summit with MPs Please could BAB Members place a hold in their diaries for Friday 26 October between 15:00 and 16:30 for a meeting with the Kent and Medway MPs. The venue will be the Maidstone Studios. 08.20 3 Economic Commentary All 09:40 4 LEP Review Government established Local Enterprise Partnerships (LEPs) back in 2010 to drive forward economic growth. LEPs are partnerships between businesses, councils, universities and further education colleges. Kent and Medway are part of the South East Local Enterprise Partnership (SELEP). Due to its scale and a belief in subsidiarity, SELEP has four federated boards. The Kent and Medway Economic Partnership (KMEP) is the local federated boards for our area. Sarah Nurden In August 2017, the Minister for Local Growth wrote to say the Government would review the role and responsibilities of LEPs – as LEPs would be the vehicle to deliver the Local Industrial Strategy. In July 2018, the findings of the review were published at: https://www.gov.uk/government/publications/strengthened-local- Kent & Medway Business Advisory Board Thursday 13 September, 8.00 – 10.30 am in the Inspiration Suite @ The Village Hotel, Maidstone Light breakfast from 7.30 am Programme enterprise-partnerships A presentation will be given to BAB at the meeting on how the changes proposed (if implemented) will necessitate reform of SELEP and KMEP. BAB members will be asked to give their views on the reforms and discuss next steps in terms of Government engagement. 10:05 The Delivery of the Industrial Strategy Following discussion at the 10 January Board meeting, David David Godfrey and Godfrey and Joe Fyans (Localis) will present headline research Joe Fyans (Localis) findings and learning for Kent. The presentation will relate specifically to the work that Localis did for Kent and Essex. 10.20 7 Summing Up Geoff Miles Kent & Medway Business Advisory Board Thursday 13 September, 8.00 – 10.30 am in the Inspiration Suite @ The Village Hotel, Maidstone Light breakfast from 7.30 am Programme Future Meeting Dates - 2018/19 Business Advisory Board (BAB) Meeting • Thurs 8 November 2018 • Thurs 10 January 2019 • Thurs 7 March 2019 All from 8.00 – 10.30am (with light breakfast at 7.30am) in the Inspiration Suite at the Village Hotel, Maidstone. Kent & Medway Economic Partnership (KMEP) Board Meeting • Mon 24 September 2018 • Mon 26 November 2018 • Mon 28 January 2019 • Mon 25 March 2019 All meetings will be held at the Village Hotel, Maidstone from 5.00 – 7.00pm. South East Local Enterprise Partnership (SELEP) Strategic Board Meeting (all on Fridays from 10.00am – 12 noon at High House Production Park, Purfleet) • 28th September • 7th December • 22nd March 2019 Notes of the Kent and Medway Business Advisory Board – 5 July 2018 The Business Advisory Board meets bi-monthly and provides an insight from the business community in Kent and Medway on current trading conditions and experience of the local economy. The headline points are presented below and the full meeting note follows. Highlights from Economic Commentary • Staff recruitment and retention continue to be a problem for several sectors in the county, especially in financial and legal services which experience stiff competition from the capital. • Businesses in the retail sector are facing challenging times, but elsewhere there are mixed messages from small businesses. Some report that confidence levels are high although this could soon change unless there is more clarity from government about its Brexit plans. • There has been a marked increase in the number of employment tribunal claims since the recent removal of fees. • The construction sector is under pressure as materials prices rise, and skilled labour is in short supply especially for bricklayers and civil engineers. The industry is concerned that there will be further labour shortages following Brexit. • The short term nature of planning regulations can hinder growth, and local authorities need to press on with completing their local plans. • The impact of vehicle emissions on air quality is becoming a big concern, and although public transport should be seen as a solution the introduction of ultra-low emission zones in major urban areas will impact on those smaller operators with older vehicles. • The current state of the economy suggests that there could be several small interest rate rises over the new 18 months. 1. Welcome and Introductions The Chairman welcomed attendees to the meeting. 2. Review of actions from the last meeting (10 May 2018) • Apologies were received from Nick Fenton, so the actions regarding a) the planning process and b) ‘Delivering Design Quality in Kent and Medway’ were rolled forward to the next meeting. • The Kent and Medway business summit with MPs will be postponed from 20 July to a new date, to be confirmed. Further details will be circulated once the new date is known. • The housing growth figures shared at the ‘Planning for Future Water Resources’ workshop have been sent to Kent County Council’s officers as requested. 3. Economic Commentary Sarah Nurden (KMEP) – Businesses and other interested parties are welcome to bid for some Local Growth Funding (LGF). Projects ought to drive forward economic growth. The amount of money available is at least £8.3m. This amount will rise if the existing LGF projects experience 1 project delays, preventing their business case coming forward for approval. Full information is available at: http://kmep.org.uk/news/info-page/call-for-expressions-of-interest-capital-grant- opportunity. Sarah also asked BAB members for their permission to provide anonymised feedback from the BAB meetings to KMEP, which was granted. Andy Davies (Handelsbanken) – The bank continues to grow, with recruitment ongoing. The bank’s construction industry customers report that they are extremely busy, especially in east Kent, with much work in the pipeline. Bernard Spring (Chair of NKEZ) – The North Kent Enterprise Zone comprises three sites. The Maidstone site includes the Kent Medical Campus, which is progressing well with Cygnet (Mental Health) Hospital almost complete and open to patients by end of September 2018. There is planning consent for a 30,000sq ft Innovation Centre, and plans for a step-down facility at the site, for which NKEZ is looking for an operator. The second site is the Innovation Park Medway. Rochester Airport has resubmitted its planning application, which (if successful) will enable an innovation park to be built on half of the site. The third site is in Ebbsfleet. It is confirmed a modular housing factory will be erected there. Discussions are ongoing as to which part of the land will fall within the NKEZ zone. Keith McAlister (Thomson Snell & Passmore LLP) – Another significant year of growth in business services, and commercial property is also very busy. Furthermore, the company is seeing much movement in franchise sector (particularly food and drink franchises). Staff recruitment and retention continue to be a problem, particularly bright young talent being attracted to work in London. James Beatton (Cripps LLP) – The company continues to trade well. There are three sections to the business: a) corporate b) real estate and c) private client. The company is ahead of budget for this time of year, which is an unusual occurrence. Clients in the retail sector are continuing to face challenging times. However, anything that is business to consumer service with a high level of discretionary spend is also facing difficulties. As the news recently showed, 27% of estates agents are in ‘financial distress’. In contrast, the technology sector is particularly active now, much of it fuelled by private equity. There has also been a marked increase in the number of tribunal claims since fees were removed, especially in the public sector. Alison Palmer (Federation of Small Businesses) – FSB is reporting that confidence levels are at their highest since the start of the year. However, confidence levels will drop if Brexit plans do not come to fruition. The FSB is also noting that GDPR is creating a barrier to economic growth. Andrew Metcalf (Maxim) – Maxim has experienced two solid months, with encouraging future prospects. Maxim’s clients are reporting a different picture to FSB, with clients expressing low confidence levels due to lack of agreements being made by the MPs on Brexit planning. Maxim is seeing growth in engagements, especially planning work, although the revised NPPF coming out later this month may affect that. The Kent Press & Broadcast Awards are a week away; 147 journalists have entered the categories. Maxim is also sponsoring the 2 Kent Design Awards, alongside KCC and DHA, and BAB members were encouraged to submit entries. Charles Buchanan (Charles Buchanan Associates) – Heathrow’s third runaway is going ahead, subject to detailed considerations. There will be legal challenges although it isn’t clear how they will be heard, which could affect the timing of development. It is notable how long it takes for infrastructure delivery, and it was the 2003 White Paper that said additional airport capacity was required. Regarding skills, Charles Buchanan has become the Chairman of the East Kent College Group (East Kent and Canterbury Colleges).