BIRMINGHAM CITY COUNCIL
ECONOMY AND SKILLS OVERVIEW AND SCRUTINY COMMITTEE
WEDNESDAY, 24 APRIL 2019 AT 10:30 HOURS IN COMMITTEE ROOM 2, COUNCIL HOUSE, VICTORIA SQUARE, BIRMINGHAM, B1 1BB
A G E N D A
1 NOTICE OF RECORDING/WEBCAST
The Chairman to advise/meeting to note that this meeting will be webcast for live or subsequent broadcast via the Council's Internet site (www.civico.net/birmingham) and that members of the press/public may record and take photographs except where there are confidential or exempt items.
2 DECLARATIONS OF INTERESTS
Members are reminded that they must declare all relevant pecuniary and non pecuniary interests arising from any business to be discussed at this meeting. If a disclosable pecuniary interest is declared a Member must not speak or take part in that agenda item. Any declarations will be recorded in the minutes of the meeting.
3 APOLOGIES
To receive any apologies.
4 ACTION NOTES/ISSUES ARISING 3 - 6 To confirm and sign the Action Notes of the meeting held on the 27 March 2019.
5 CABINET MEMBER FOR EDUCATION, SKILLS AND CULTURE 7 - 38 ANNUAL REPORT
Councillor Jayne Francis, Cabinet Member for Education, Skills and Culture
6 LOCAL INDUSTRIAL STRATEGY 39 - 82 Councillor Ian Ward, Leader, Birmingham City Council.
Page 1 of 90 7 GBSLEP FUTURE OPERATING MODEL 83 - 86 Katie Trout, Director, GBSLEP; Alison Jarrett, Assistant Director Development and Commercial Finance.
8 WORK PROGRAMME - APRIL 2019 87 - 90 To note the work programme for discussion.
9 REQUEST(S) FOR CALL IN/COUNCILLOR CALL FOR ACTION/PETITIONS RECEIVED (IF ANY)
To consider any request for call in/councillor call for action/petitions (if received).
10 OTHER URGENT BUSINESS
To consider any items of business by reason of special circumstances (to be specified) that in the opinion of the Chairman are matters of urgency.
11 AUTHORITY TO CHAIRMAN AND OFFICERS
Chairman to move:-
'In an urgent situation between meetings, the Chairman jointly with the relevant Chief Officer has authority to act on behalf of the Committee'.
Page 2 of 90 Item 4
BIRMINGHAM CITY COUNCIL
ECONOMY, SKILLS & TRANSPORT O&S COMMITTEE – PUBLIC MEETING
10.30AM hours on 27th March 2019, Committee Room 2, Council House – Action Notes
Present: Councillor Tahir Ali (Chair) Councillors John Clancy, Fred Grindrod, Simon Morrall and Julien Pritchard
Also Present: Phil Jones, Director, Grant Thornton Baseema Begum, Research & Policy Officer Rose Kiely, Group Overview & Scrutiny Manager
1. NOTICE OF RECORDING/WEBCAST
The Chairman advised the meeting to note that members of the press/public may record and take photographs.
2. DECLARATIONS OF INTEREST
None.
3. APOLOGIES
Cllrs Ken Wood, Lou Robson and Phil Davis.
4. ECONOMY AND SKILLS ACTION NOTES
The Committee agreed the action notes for the meeting held on the 27h February 2019.
1 Page 3 of 90 5. WEST MIDLANDS LOCAL GOVERNMENT PENSION FUND
(See document No. 1) The Chair, Cllr Ali introduced the item for discussion and explained the purpose of the meeting and outlined that apologies had been received from the Director of the West Midlands Pension Fund Board for not being able to attend due to a Board meeting taking place at the same time. Cllr Ali added further that the Pension Fund had sent a briefing paper to share with Members ahead of the meeting and this was circulated. Phil Jones from Grant Thornton, the City Council’s auditor was welcomed by the Chair to give feedback on issues related to the Council’s accounts. During the meeting a number of questions and issues were raised:- What is the economic impact of the Pension Fund in Birmingham and the wider West Midlands region and how can the Fund’s assets be better used in the regional economy? The level of the contributions made by the City Council was seen as being too high when compared to other Pension Funds in the country (an example of a similar sized fund, West Yorkshire was given where contributions by its members was shown to be far less) and the subsequent impact of this on the Council’s revenue account. Can judgements made in respect of the level of liabilities and the discount rate be challenged by the Council and/or its auditor to understand how and why they are made? What is the Council obliged to accept on trust and must the Council follow the set process? Members recognised that this was an issue for the Pension Fund’s auditor to clarify. The attachment of liabilities to the City Council’s assets and why there is a liability showing on its accounts for this and the impact on Council’s balance sheet. It was clarified that City Council finance officers would be in a better position to provide an answer to this. Members noted the democratic deficit that Birmingham has on the Pension Fund Board. Currently Birmingham is the largest local authority contributor to the Fund and with the greatest number of employees paying in however it is under-represented on the Pension Fund Board of which there are 15 members (Birmingham has a single member). Members were interested in the investments made by the Fund, how much was paid in investment management costs and who the investment fund managers are as this information was not clear. In response Phil Jones, Grant Thornton explained that: He was only able to comment on those areas relevant to the City Council’s accounts and to ensure that as its auditor Grant Thornton are carrying out their role correctly and ensuring that the Council achieves value for money in its transactions.
2 Page 4 of 90 Actuaries employed by Pension Funds make assumptions on how likely employees are lively to live and this contributes towards the decision made on the levels of contributions that members need to make to ensure that there are sufficient funds for people to claim at retirement. These are reviewed in line with how well investments made perform to ensure that employee benefit obligations can be met and to ensure that member authorities are making the right level of contribution. CIPFA guidelines are followed in terms of accounting and in line with the legal framework. As the Council’s auditor, Grant Thornton can only base it’s response on the figures it is presented with and those that are passed to it by the Pension Fund. A comparison is done with other Pension Funds and Councils in relation to the assumptions made by actuaries to ensure that it is broadly in line with what happens elsewhere (i.e. reasonable). Furthermore Grant Thornton seeks the professional opinion of other sources of expertise in this matter to ensure that the opinion they are giving is correct. It was acknowledged by Members that some of these issues needed further discussion and clarification with Pension Fund representatives and other parties that could help and assist the Committee to understand the depth and impact of some of the issues with greater clarity. Following the discussion the Committee identified its next steps:- That a further meeting would be required to explore the issues raised with the Pension Fund and requested that the Chair, Cllr Ali write to the Pension Fund to request that a representative attend the June meeting; The CBI and a policy pension expert are invited to help Members to understand and ask the correct questions of the Pension Fund at this meeting; Following it’s meeting in June a report is presented to Full Council with a summary of key points raised at the sessions and recommendations that can be debated by all members. That recommendations within the report should include the key role that Audit Committee has in scrutinising issues relating to the discount rate and the impact that this has on the behaviour of investments. Furthermore the Economy & Skills O&S Committee investigates the economic aspects of how the Pension Fund assets can be used to invest in local economies. RESOLVED:- 1. Phil Jones will provide further clarification on if the City Council is obliged to accept the actuarial judgement made by the Pension Fund. 2. The Chair will respond to the offer made by the Pension Fund to discuss further areas in detail and will write on behalf of the Committee to invite representatives of the Fund to a future meeting of the Committee in June 2019. 3. The points from the meeting will be drafted to form the basis of a report to Full Council outlining how specific areas of work can be taken forward by the Audit Committee and the Economy & Skills Committee.
3 Page 5 of 90 6. WORK PROGRAMME
Cllr Ali informed the Committee that meetings would be held in June and September in the new municipal year. It was also confirmed that the Cabinet Member for Education, Skills and Culture would be attending to give her annual report and the Leader would be presenting the Local industrial strategy.
Following Cllr Grindrod’s request at the last meeting for a representative of the GBSLEP to be invited to talk about the new operating model, it was confirmed that Katie Trout, Director would be attending the Committee’s April meeting. Cllr Grindrod asked that the Committee consider looking into the how businesses are transitioning to the Green New Deal. Cllr Ali will raise this at the next Co-Ordinating O&S Committee to ensure cross-over with other interested Committees can be accommodated if required.
7. REQUEST(S) FOR CALL-IN/COUNCILLOR CALL FOR ACTION/PETITIONS RECEIVED (IF ANY)
None.
8. OTHER URGENT BUSINESS
None.
9. AUTHORITY TO CHAIRMAN AND OFFICERS
Agreed. RESOLVED:- That in an urgent situation between meetings the Chair, jointly with the relevant Chief Officer, has authority to act on behalf of the Committee. ______The meeting finished at 11:31 hours.
4 Page 6 of 90 Item 5
Economy and Skills Overview and Scrutiny Committee
Councillor Jayne Francis Cabinet Member for Education, Skills and Culture
Page 7 of 90 End of year update
Skills and Employment now part of new Education and Skills Directorate. Director Education and Skills, Dr Tim O’Neill. Assistant Director for Skills and Employability, Anne Ainsworth. Birmingham Adult Education Service 14-19 Participation and Skills Birmingham Careers Service Employment team
Page 8 of 90 Birmingham Labour Market
Quarterly report, latest is April 2019 Birmingham has a comparatively high claimant unemployment rate (8.2%) Core City average 5.2% UK 3.2%
Youth claimant unemployment rate (18-24) is 10.8% Core City average 6.4% UK 5.2%
Page 9 of 90 • Ward proportions vary widely • All 69 wards have more claimant unemployed compared with the same point last year • Highest levels of unemployment are largely concentrated in the inner city areas of Birmingham with some pockets in outer city areas
Page 10 of 90 Skill levels Birmingham has a greater proportion of working age residents with no qualifications (12%) compared to the UK (8%) and core city average (9.6%)
Page 11 of 90 Discrepancies between wards
Claimant unemployment • Birchfield (12.1%) • Handsworth (11.8) • Sutton Roughley (1.3%) • Sutton Four Oaks (1.2%)
18-24 claimant unemployment • Handsworth (13.3%) • Frankley Great Park (11.6%) • Sutton Four Oaks (1.3%) • Edgbaston (0.7%)
Page 12 of 90 NEET / Not Knowns
Local authorities are required to track the 2018/19 participation of young people aged 16-18 Bham England (25) into education, employment or training. EET 90.8% 92.3% The DfE publishes performance data in NEET 2.6% 2.6% the form of a ‘NEET Scorecard’ which Not Known 6% 2.9% shows comparative performance with other local authorities. Combined 8.5% 5.5% This is an improving picture in NEET & NK Birmingham (17% Not Known and 8% NEET in 2015/16). Now consistently one of the top performing core cities for NEETs.
Page 13 of 90 Skills and Employability Programmes
Youth Promise Plus World of Work Project Major Projects and Employer Engagement Commonwealth Games 14-19 / NEETs Apprenticeships Birmingham Careers Service Birmingham Adult Education Service
Page 14 of 90 Youth Promise Plus
European funded programme. Personalised employment support to 15-29 year old young people who are not in education, employment or training. Supports our most disadvantaged young people. Delivered from many locations across Birmingham and Solihull (job centres, youth centres, libraries, community venues and partner premises). NEET support workers at key frontline sites to reach the young people most in need. Extension to December 2021 approved in January 2019. Project target of engaging and supporting 16,610 young people. Opportunity to further develop partnerships including The Prince’s Trust, University Hospital Birmingham, Solihull Metropolitan Borough Council, Transport for West Midlands and The West Midlands Police and Crime Commissioner’s Office
Page 15 of 90 World of Work Project
Will provide progression pathways with vocational and employability skills training for unemployed residents over 25 years old from April 2019. Pathways linked directly to vacancies and key employers in target sectors and localities. Will engage with over 2,000 long term unemployed and inactive participants providing support. Target will be those with low/no basic skills, people from black and minority ethnic backgrounds, women, lone parents, people with disabilities and health conditions and those living in areas of high unemployment.
Page 16 of 90 Major Projects and Employer Engagement
The Employment Access Team works with employers to promote opportunities to Birmingham residents, particularly those who are unemployed/workless. EAT has worked with key employers, major projects and development opportunities (Library of Birmingham, New Street Station redevelopment, Grand Central, Bullring). This model is now being applied to key opportunities (HS2, Commonwealth Games).
Page 17 of 90 Commonwealth Games
EAT have secured commitments from the lead contractor on the Athletes Village – Development of an on-site training and engagement facility – 1,000 pre-employment training places to be supported – 50 existing apprenticeships working on site – 400 jobs to be created, including 50 new apprenticeships and 30 paid summer intern (6 week) placements Dialogue underway with the contractor delivering on the refurbishment of the Alexander Stadium as well as Sandwell MBC regarding the Aquatics Centre.
Page 18 of 90 NEETs and Not Knowns
Post 16 Forum • Focus on mental health, careers and apprenticeships, T-Levels Hotspot identification and targeted approach Improved September Guarantee Improved participation tracking Sufficiency of places Important priority for the Directorate and the Council
Page 19 of 90 Apprenticeships
Internal • Make best use of the Apprenticeship Levy (conversion of existing posts and creation of new posts where appropriate). • Workforce Strategy. • Use of most appropriate providers to deliver and expand courses. External • Potential to ‘gift’ part of the Levy. • Apprenticeship figures for the city need to improve. • Use of partnerships and engagement with private sector and WMCA.
Page 20 of 90 Careers
Birmingham Careers Service • delivers partly on Youth Promise Plus. Enterprise Advisor Network project WMCA and Careers and Enterprise Company Elected member working group Strategic coordinated approach and earlier careers support.
Page 21 of 90 Birmingham Adult Education Service
Ofsted inspection in March 2019. Service now rated “Good” in all areas. “An advisory board has strengthened governance arrangements. The board provides highly effective support, challenge and scrutiny for those in a governance role and for senior leaders and managers.” “Learners from areas of high deprivation and cultural diversity develop a good range of essential work-related skills that help them to improve their life chances.” “Teaching and learning for English for speakers of other languages learners are highly effective.” “Most learners benefit from highly effective careers advice and guidance. As a result, most learners move into other courses offered by the service or into volunteering and employment.”
Page 22 of 90 Questions
Page 23 of 90 Page 24 of 90 Item 5
Birmingham Labour Market Update
April 2019
Economic Research & Policy Economy Directorate
Page 25 of 90
Labour Market Dashboard
Claimant Count Unemployment - March 2019 Seasonally Adjusted
42,872 8.1%
+693 +0.1% points
7, 838 10.8% Youth +93 +0.2% points
18-24
Resident Employment 16-64 - Q4 2018
475,900 65.3%
+1,200 +0.1% points
16-64 Economic Inactivity - Q4 2018
212,800 29.2% -4,900 -0.7% points
Page 26 of 90
Claimant Count Unemployment March 2019
Important Notice - Universal Credit Roll Out Impact on Claimant Count The Claimant Count is the number of people claiming Jobseeker's Allowance plus those who claim Universal Credit and are required to seek work and be available for work. It is the new headline measure of those claiming benefits principally for the reason of being unemployed. The full service roll out of Universal Credit in the city between Nov 17 and Feb 18 has led to an increase in the claimant count in the city (as it has done in other full service areas), this is for two main reasons: Universal Credit requires a broader span of people to look for work than was the case for existing benefits such as ESA. New claimants who are awaiting or appealing Work Capability Assessments are being required to look for work and thus being counted as unemployed rather than economically inactive.
Seasonally Adjusted Unemployment The latest claimant unemployment figures released by the Office for National Statistics (ONS) show that seasonally adjusted claimant unemployment in Birmingham increased by 693 in March 2019 to stand at 42,872; the rate increased to 8.1%. Table 1 - Seasonally Adjusted Claimant Unemployment 42,872 March 2019 Total +693 Area Number Claimant Rate
United Kingdom 1,066,167 3.2% 8.1% West Midlands Region 117,297 4.1% +0.1% Point Birmingham 42,872 8.1% Seasonally adjusted claimant count unemployment increased Chart 1: Seasonally Adjusted Unemployment in the West Midlands and 12.0% nationally last month. Chart 1 10.0% illustrates that after falling sharply to return to pre 8.0% recession levels unemployment 6.0% in the city had been relatively 4.0% stable but has begun to increase 2.0% during 2018 due to the benefit eligibility changes associated 0.0% with the roll out of Universal
Credit. Birmingham West Midlands UK Unadjusted Unemployment In Birmingham, the unadjusted claimant count increased by 1,085 to 43,320 in March. The unadjusted rate increased to 8.2%. Unadjusted unemployment also increased for the WMCA (3 LEPs) and the UK as a whole last month.
B'ham WMCA UK
43,320 Birmingham 98,860 1,100,990
+1,085 30,685 +3,200 +38,5600 8.2% 4.9% 3.3% 2 -140 Page 27 of 90 6.1%
Claimant Count Unemployment Unemployment Count Claimant Unadjusted Unemployment - Core Cities Table 2 shows that Birmingham has a comparatively high claimant unemployment rate. At 8.2%, Birmingham’s claimant unemployment rate is the highest of the core cities - significantly above the core city average of 5.2%. Unadjusted claimant count unemployment increased in all of the 10 core cities last month.
Table 2 - Unadjusted Claimant Unemployed: Core Cities
March 2019 Birmingham Out of Work Total Claimant Unemployed JSA Area UC Claimants Claimant Claimant Claimants Number Proportion Rate 8.2% Birmingham 10,269 33,051 43,320 5.9% 8.2%
Newcastle 977 8,278 9,255 4.6% 6.3% ble 2 - Unadjusted Claimant Unemployed: Core Cities December 2017Liverpool 4,259 9,031 13,290 4.0% 5.5% Manchester 1,934 13,666 15,600 4.1% 5.5% JSA Out of Work Total Claimant Unemployed Area Glasgow 6,462 UC Claim-9,753 16,215 Claimant3.7% Claimant5.4% Claimants Number ants Proportion Rate Nottingham 3,617 4,278 7,895 3.4% 5.1% Birmingham 22,420 9,240 31,660 4.40% 6.20% Cardiff 1,404 6,041 7,445 3.0% 3.8% Core Liverpool 5,351 6,414 11,765 3.60% 5.10% Leeds 5,561 8,514 14,075 2.7% 3.4% Cities Nottingham 5,298 1,882 7,180 3.20% 4.80% Sheffield 4,608 4,617 9,225 2.4% 3.1% 5.2% Newcastle 1,856 5,059 6,915 3.40% 4.60% Bristol 1,910 5,115 7,025 2.2% 2.7% Glasgow 8,270 5,375 13,645 3.20% 4.50% Core Cities 41,001 102,344 143,345 3.8% 5.2% Manchester 4,988 4,842 9,830 2.60% 3.70% WMCA (3 LEPs) 24,540 74,320 98,860 3.8% 4.9% Sheffield 6,757 2,433 9,190 2.40% 3.30% GBS LEP Area 12,657 42,213 54,870 4.3% 5.6% Cardiff 3,621 1,499 5,120 2.10% 2.90% Greater London 36,593 120,072 156,665 2.6% 3.2% WMCA Leeds 7,560 3,700 11,260 2.20% 2.80%
BristolUnited Kingdom 259,9803,526 841,0101,644 1,100,9905,170 1.70%2.7% 2.10%3.3% 4.9% CoreClaimant Cities proportion: claimants divided by69,647 working age population42,088 111,735 3.10% 4.20%
Claimant rate: claimants divided by economically active working age residents. WMCA (3 LEPs) 47,123 24,812 71,935 2.80% 3.70%
Birmingham Constituencies
Table 3 shows claimant Table 3—Unadjusted Unemployment by Constituency unemployment data March 2019 Total Claimant Unemployed relating to the Out of Work JSA Constituency UC constituencies. Ward Claimants Claimant Claimant Claimants Number data is shown on page 5. Proportion Rate
Edgbaston 831 3,520 5.0% 8.0% The constituency of 2,689
Hodge Hill has the Erdington 1,154 4,680 7.1% 9.0% 3,526 highest claimant Hall Green 920 4,650 6.0% 8.7% unemployment rate 3,730
Hodge Hill 1,407 5,645 7.2% 12.3% (12.3%). The Sutton 4,238
Coldfield constituency Ladywood 2,003 7,840 7.5% 11.0% 5,837 has the lowest Northfield 908 3,720 5.9% 8.2% unemployment rate 2,812
Perry Barr 1,233 4,940 6.8% 9.6% (2.1%). 3,707
Selly Oak 702 3,190 4.3% 5.5% 2,488
Sutton Coldfield 226 1,115 2.0% 2.1% 889
Yardley 885 4,025 5.7% 7.6% 3,140
BirminghamPage 28 of 90 10,269 43,320 5.9% 8.2% 3 33,051
Claimant Count Unemployment Unemployment Count Claimant
Birmingham Wards
Table 4, on page 5, shows claimant unemployment data for the Birmingham wards. The ward unemployment proportions vary widely with the 7 Sutton wards having the lowest proportions and Birchfield (12.1%) and Handsworth (11.8%) the highest .
Table 4 also shows the annual change in claimant count unemployment at ward level. All of the city’s 69 wards have more claimant unemployed compared with the same point last year.
The number of youth (18-24) claimants in each ward is also contained in Table 4. Aston ward (313) and Alum Rock (304) have the highest number of youth claimants in Birmingham. Sutton Trinity (11) and Sutton Four Oaks (8) have the fewest.
Map 1 below displays claimant unemployment in Birmingham by Super Output Area (SOA). It shows that the highest levels of unemployment are largely concentrated in the inner city areas of Birmingham with some pockets in outer city areas.
4 Page 29 of 90
Claimant Count Unemployment Unemployment Count Claimant Table 4— Ward Claimant Unemployment – March 2019 Total Claimant Unemployed Monthly Annual 18-24 Ward Claimant Number Changer Change Claimants Proportion Acocks Green 837 5.4% 0 232 144
Allens Cross 417 6.1% 14 70 115
Alum Rock 1,494 8.9% - 9 339 304
Aston 1,581 10.3% 28 339 313
Balsall Heath West 621 7.8% 17 86 89
Bartley Green 1,028 7.3% 24 282 198
Billesley 711 5.8% 5 226 131
Birchfield 986 12.1% 30 141 135
Bordesley & Highgate 878 8.3% 23 236 169
Bordesley Green 674 8.9% 32 178 125
Bournbrook & Selly Park 452 2.3% 35 164 95
Bournville & Cotteridge 469 4.2% 2 116 92
Brandwood & King's Heath 528 4.3% 2 110 105 Bromford & Hodge Hill 762 5.9% 3 168 159 Castle Vale 395 6.5% 10 85 75 Druids Heath & Monyhull 566 7.7% 16 91 103 Edgbaston 431 2.6% 7 97 51 Erdington 752 5.8% 5 164 113 Frankley Great Park 509 7.0% 29 116 118 Garretts Green 487 7.6% 3 93 101 Glebe Farm & Tile Cross 1,097 7.5% 17 271 196 Gravelly Hill 702 9.7% 29 169 114 Hall Green North 576 4.1% 21 138 109 Hall Green South 123 1.9% 0 19 13 Handsworth 957 11.8% 40 254 171 Handsworth Wood 689 5.0% 10 124 126 Harborne 658 4.2% 18 145 83 Heartlands 565 7.2% 22 133 126 Highter's Heath 275 3.9% 5 64 54 Holyhead 552 6.9% 29 90 89 King's Norton North 306 4.4% - 2 40 67 King's Norton South 515 7.6% 22 135 96 Kingstanding 862 6.6% 22 152 170 Ladywood 1,192 5.2% 38 234 152 Longbridge & West Heath 649 5.1% 30 121 139 Lozells 717 11.7% 30 157 116 Moseley 850 5.7% 23 212 144 Nechells 779 6.2% 15 148 100 Newtown 957 9.6% 5 141 182 North Edgbaston 1,159 6.7% 29 245 221
5 Page 30 of 90
Claimant Count Unemployment Unemployment Count Claimant Table 4— Ward Claimant Unemployment – March 2019 Continued
Total Claimant Unemployed Monthly Annual 18-24 Ward Claimant Changer Change Claimants Number Proportion Northfield 260 4.0% 9 64 38 Oscott 462 3.7% 14 116 78 Perry Barr 536 4.0% 28 119 109 Perry Common 425 6.0% 15 108 80 Pype Hayes 377 5.6% 14 109 56 Quinton 620 4.9% 35 145 125 Rubery & Rednal 410 6.4% 22 117 78 Shard End 513 6.9% 20 104 79 Sheldon 469 3.8% - 2 108 94 Small Heath 792 6.1% 44 207 164 Soho & Jewellery Quarter 1,386 7.2% 13 263 222 South Yardley 301 4.4% 0 47 47
Sparkbrook & Balsall Heath East 1,533 9.3% 49 359 286 Sparkhill 888 6.6% 9 181 183 Stirchley 321 4.7% 6 82 62 Stockland Green 1,246 7.9% 34 293 245 Sutton Four Oaks 63 1.2% - 5 10 8 102 1.9% 0 34 20 Sutton Mere Green
Sutton Reddicap 218 3.5% 0 38 40 Sutton Roughley 86 1.3% 2 12 15 Sutton Trinity 119 2.2% 12 32 11 Sutton Vesey 257 2.1% 21 106 37 Sutton Walmley & Minworth 184 1.9% 9 67 39 Sutton Wylde Green 94 1.8% 5 26 24 Tyseley & Hay Mills 496 6.7% 42 97 91 Ward End 614 7.6% 2 120 144 Weoley & Selly Oak 914 6.0% 15 242 189 Yardley East 326 5.1% - 5 78 71 Yardley West & Stechford 570 7.4% 19 126 105 43,320 5.9% 1,085 9,485 Birmingham 7,915
6 Page 31 of 90
Youth (18 Youth Seasonally Adjusted Youth (18-24) Unemployment The latest seasonally adjusted youth (18-24) claimant unemployment figures released by the Office for National Statistics (ONS) show that seasonally adjusted youth claimant unemployment in Birmingham increased by 93 in March 2019 to stand at 7,838, the rate rose to 10.8%. .
- 24) Claimant Count Unemployment Unemployment Count Claimant 24) Table 5 - Seasonally Adjusted Youth Claimant Unemployment - March 2019
Claimant 7,838 Number Claimant Rate Proportion +93 Birmingham 7,838 10.8% 5.7% WMCA (3 LEP Area) 18,294 6.9% 4.6%
10.8% Core City Average 25,154 6.4% 3.2% +0.2% points United Kingdom 197,845 5.2% 3.4%
Seasonally adjusted claimant count unemployment for young people increased in the WMCA and the UK last month. Chart 1 illustrates that after falling sharply to return to pre recession levels youth unemployment in the city had been relatively stable but has been increasing since the turn of the year, again in part driven by changes in benefit eligibility associated with the roll out of Universal Credit.
Seasonally Adjusted Youth Claimant Count Unemployment rate 20.0% 18.0%
16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Birmingham WMCA Core Cities UK
Unadjusted Youth Unemployment In Birmingham, the unadjusted youth claimant count increased by 275 to 7,945 in March. The unadjusted rate rose to 10.9%. The unadjusted 18-24 count increased for the WMCA (3 LEPs) and for the UK last month.
WMCA4,195
Birmingham WMCA UK -570 7,945 18,675 206,9400 6.0% +275 +755 +9.50
10.9% Page 32 of7.0% 90 5.4% 7 8%
8%
Youth (18 Youth Birmingham Wards
Table 6—Unadjusted 18-24 Claimant Count Unemployment by Ward – March 2019
Total Claimant Unemployed Constituency Claimant Annual Change Number - Proportion
24) Claimant Count Unemployment Unemployment Count Claimant 24) Acocks Green 144 6.0% 19
Allens Cross 115 10.7% 27
Alum Rock 304 8.9% 61
Aston 313 10.8% 78
Balsall Heath West 89 5.0% -5
Bartley Green 198 9.0% 58
Billesley 131 7.8% 33
Birchfield 135 8.7% -5
Bordesley & Highgate 169 7.5% 48
Bordesley Green 125 9.0% 30
Bournbrook & Selly Park 95 0.7% 30
Bournville & Cotteridge 92 4.3% 32
Brandwood & King's Heath 105 6.8% 20
Bromford & Hodge Hill 159 7.0% 42
Castle Vale 75 7.6% 25
Druids Heath & Monyhull 103 9.6% 19
Edgbaston 51 0.7% 5
Erdington 113 6.5% 13
Frankley Great Park 118 11.6% 34
Garretts Green 101 9.6% 14
Glebe Farm & Tile Cross 196 8.5% 47
Gravelly Hill 114 9.3% 22
Hall Green North 109 4.7% -3
Hall Green South 13 1.5% -10
Handsworth 171 13.3% 50
Handsworth Wood 126 5.5% 19
Harborne 83 3.0% 15
Heartlands 126 8.3% 35
Highter's Heath 54 5.6% 0
Holyhead 89 7.1% 8
King's Norton North 67 7.0% 18
King's Norton South 96 9.4% 19
Kingstanding 170 8.3% 13
Ladywood 152 2.4% 42
Longbridge & West Heath 139 7.8% 30
Lozells 116 9.9% 21
Moseley 144 6.8% 41
Nechells 100 1.7% 13
Newtown 182 5.3% 38
North Edgbaston 221 6.6% 59
8 Page 33 of 90
Youth (18 Youth Birmingham Wards
Table 6—Unadjusted 18-24 Claimant Count Unemployment by Ward – March 2019 Continued
Total Claimant Unemployed Constituency Claimant Annual Change Number - Proportion
24) Claimant Count Unemployment Unemployment Count Claimant 24) Northfield 38 4.2% 3
Oscott 78 4.5% 5
Perry Barr 109 4.3% 25
Perry Common 80 8.0% 13
Pype Hayes 56 6.5% 15
Quinton 125 7.6% 25
Rubery & Rednal 78 8.5% 26
Shard End 79 7.4% 7
Sheldon 94 5.4% 22
Small Heath 164 6.2% 11
Soho & Jewellery Quarter 222 6.1% 54
South Yardley 47 5.3% 2
Sparkbrook & Balsall Heath East 286 9.4% 37
Sparkhill 183 7.2% 17
Stirchley 62 6.7% 19
Stockland Green 245 10.0% 74
Sutton Four Oaks 8 1.3% -6
Sutton Mere Green 20 3.4% 4
Sutton Reddicap 40 5.1% -5
Sutton Roughley 15 2.0% -3
Sutton Trinity 11 1.8% -1
Sutton Vesey 37 2.2% 8
Sutton Walmley & Minworth 39 3.6% 24
Sutton Wylde Green 24 3.9% -7
Tyseley & Hay Mills 91 7.9% 11
Ward End 144 9.8% 33
Weoley & Selly Oak 189 6.0% 35
Yardley East 71 7.7% 12
Yardley West & Stechford 105 8.2% 24
Birmingham 7,915 5.6% 1,560
9 Page 34 of 90
Employment & Skills
Latest Resident Employment
Birmingham West Midlands UK Q4 2018 Dec 2018 to Feb 2019
16-64 Employed 16-64 Employed 16-64 Employed
475,900 2.84m 31.4m +1,200 + 45,000 +166,000
Employment Rate Employment Rate Employment Rate 65.3% 74.3% 76.1% +0.1pp + 1.1p +0.3pp
The latest Annual Population Survey employment The latest Labour Force Survey figures for the data for Birmingham (Q4 2018) shows working West Midlands region for the three month period age employment levels increasing by 1,200 in the December to February 2019 show that the last quarter to stand at 475,900. The employment number of working age people employed has rate also increased, up from 65.2% in Q3 2018 to increased by 45,000 compared with the previous 65.3% in Q4 2018. quarter (Sep to Nov 2018). Employment rates regionally rose by 1.1% points compared to the
previous quarter. Nationally the employment rate rose to 76.1% a increase of 0.3% points.
Employment, Unemployment & Economic Inactivity
The working age population of the city can be broken down into 3 component labour market cohorts those who are:
i. Employed Economically Active ii. Unemployed but actively seeking work } iii. Economically inactive - This includes those who are full time students, looking after family and those who are unable to work for health reasons.
The latest APS data for Q4 2018 shows that there are 729,000 16-64 year old residents in Birmingham. Of theses 70.8% are economically active (in work or seeking 29.2 Employment work) and 29.2% are economically inactive. This 16-64 compares to a corresponding Workforce Unemployment figure of 78% and 22% for Breakdown the UK and 74% and 26% across the core cities as a 7.8 65.3 Economic whole. Inactivity
10 Page 35 of 90
Employment & Skills Employment
ILO Unemployment ILO Unemployment - Q4 2018
An alternative and widely used measure which defines unemployment as those who are not in employment but actively seeking work, regardless of benefit eligibility (see page 11 for further details)
The latest available local data form the APS shows that in Q4 2018 there were 40,400 working age Birmingham residents who declared themselves as unemployed an unemployment rate of 7.8%.
Unemployment in the city was above the national and core city average and increased by 4,500 on the previous quarter with the rate up by 0.8 percentage points.
Skill Levels On the supply side comparatively high unemployment and with no qualifications compared to the UK (8.0%) and the low employment rates in the city are linked to the skills core city average (9.6%). gap that exists locally with residents having lower skills and The city (52.2%) also has a correspondingly lower qualification levels than the national average. proportion of residents with NVQ3+ qualifications than the The chart below highlights this showing how Birmingham UK (57.6%) and core city average (59.2%). (12.0%) has a greater proportion of working age residents
Chart 4: Qualification Levels - 2018
70%
59.2% 60% 57.6% 53.7% 52.2% 50.9% 50%
40%
30%
20% 12.0% 11.0% 9.6% 9.3% 8.0% 10%
0% NVQ3+ No Quals
Birmingham GBSLEP WMCA Core Cities UK
11 Page 36 of 90
Guidance Notes
Methodology Notes Universal Credit—Impact on Claimant Count From May 2015 onwards there has been a phased introduction of Universal Credit (UC) in Birmingham which will replace a number of existing benefits including (means tested) Job Seekers Allowance for new claimants. The Claimant Count is therefore the number of people claiming Jobseeker's Allowance plus those who claim Universal Credit and are required to seek work and be available for work. It is the new headline measure of those claiming benefits principally for the reason of being unemployed. The full service roll out of Universal Credit in the city between Nov 17 and Feb 18 has led to an increase in the claimant count in the city (as it has done in other full service areas), this is for two main reasons:
Universal Credit requires a broader span of people to look for work than was the case for existing benefits such as ESA.
New claimants who are awaiting or appealing Work Capability Assessments are being required to look for work and thus being counted as unemployed rather than economically inactive.
From March 2017 the ONS are no longer reporting claimant count data as part of the UK and Regional Labour Market Statistical Bulletins, due to concerns regarding the impact of the introduction of UC on the accuracy of the claimant count data.
New Ward Data In May 2018 Birmingham adopted new ward boundaries, official ward data is not yet available for these new wards so the data presented in this update are estimates is based on a best fit approach using SOA data. Seasonally Adjusted Unemployment The seasonally adjusted unemployment count and rate is our headline measure of unemployment. Seasonally adjusted data removes the changes in the series that are merely due to seasonal factors. such as the dip in unemployment caused by seasonal employment over the Christmas period. It therefore gives a more accurate picture of real trends and movements in unemployment.
Unemployment Rates and Proportions Claimant count unemployment can be expressed as a rate or a proportion.
Unemployment Rate The claimant unemployment rate is the number of claimant count unemployed as a percentage of the economically active 16+ population. The unemployment rate is the most robust measure of unemployment – and allows Birmingham to be compared with national claimant rates published by the ONS. Claimant Proportion The claimant proportion is simply the proportion of the 16-64 year old population who are claimant unemployed. This includes those who are economically active and those who are economically inactive and who are not engaged in the labour market. The claimant proportion is therefore always smaller than the claimant unemployment rate due to having a larger denominator. Youth (18-24) Claimant Count Unemployment
Youth claimant unemployment refers to those aged 18 to 24 who are in receipt of JSA or out of work UC. Youth Unemployment Rate The youth claimant unemployment rate is the number of 18-24 claimant count unemployed as a percentage of the economically active 18-24 population. This is only available at a city level and not for wards. Youth Claimant Proportion The claimant proportion is the proportion of the total 18-24 year old population who are claimant unemployed. This includes those who are economically active and those who are economically inactive and who are not engaged in the labour market i.e. full time students. The claimant proportion is therefore always smaller than the claimant unemployment rate due to having a larger denominator. ILO Unemployment An alternative and widely used measure of unemployment which is consistent with International Labour Organisation (ILO) guidelines. This way of defining unemployment is not limited to benefit eligibility as in the claimant count measure but is survey based and defines unemployment as all those who are not in employment but who are actively seeking work and is calculated in the same way as the headline Labour Force Survey unemployment measure used at a national level. The data is taken from the ONS Annual Population Survey which is released quarterly.
Denominators The denominators are based on the latest available data. Unemployment rates in tables 1, 2 and 3 are derived using the economically active 16+ population from the Annual Population Survey (APS). For the claimant proportion the total 16-64 year old population (18-24 for youth) is used, derived from the latest ONS Mid Year Population Estimates.
Planning Policy Birmingham City Council
Phone: 0121 303 3760 www.birmingham.gov.uk/birminghameconomy
11 Email: [email protected] 37 of 90
Page 38 of 90 Item 6 1 West Midlands Industrial Strategy Consultation document
Page 39 of 90 2 Contents
Introduction - p1 Executive Summary - p3 Creating our Industrial Strategy - p5 A Global Economy - p8
• People, Skills and Employment • Ideas and Innovation • Infrastructure • Business environment • Sectors
Commitments - p22 Inclusive Growth -p24 Actions - p27
• Building on our competitive advantages • Improving Connectivity and Opportunity • Driving opportunities supply and value chains
Grand Challenges - p37 Local Industrial Strategy area map - p38 Evidence - p39 Next steps - p40
Page 40 of 90 1 Introduction
The West Midlands is a global force and a major • Our creative sector is internationally part of the UK economy, generating £92bn or recognised, at the heart of pioneering around 6% of total UK output. We are growing new content production and platforms, fast. Output is up by 23.5% over the past five including a world-leading gaming and years. We have a record number of people in artificial intelligence cluster. Our cultural, work. The employment rate is increasing faster tourism and sporting businesses will power than the UK as a whole and we have the lowest the delivery of the 2021 City of Culture and number of people out of work for ten years. 2022 Commonwealth Games
Our cities, towns and firms have long been At the heart of the West Midlands’ success is a centres of innovation and production, partnership between civic and business leaders generating new ideas, goods and techniques. focused on delivery. In 2016 we came together Building on our history of innovation and to agree a Strategic Economic Plan (SEP) that productivity, our Local Industrial Strategy sets set priorities for investment and ambitious but out the major, global opportunities ahead for achievable goals. In 2017, our devolution deal the West Midlands: recognised the West Midlands’ opportunity and put in place new powers, funding, and a • The home of the first global industrial strategic partnership with central Government. revolution is now a global centre of innovation in future mobility, with world We are making good progress, with a track competitive and innovative Original record of securing devolution and delivery Equipment Manufacturers (OEMs) and in transport, skills, housing, trade, inward supply chain firms in automotive, aerospace investment and business growth. The number and rail of people with higher level skills is on the rise • We are a major centre of translational and the number of people with no skills is falling medicine. University and NHS partnerships faster than the UK average. Last year, output with businesses power our expertise in per hour increased by more than double the using data to drive innovative approaches rate of the UK and the West Midlands was the to healthcare. This work is centred around only region in the country to see growth in both Queen Elizabeth Hospital Birmingham, Foreign Direct Investment (FDI) projects and the one of Europe’s largest number of jobs created by inward investment. • We have a globally competitive business and professional services cluster, the We have the youngest, most diverse population largest outside London and including the outside London, with more than one in five new headquarters of HSBC’s retail arm, people aged under 16 and 25% under 30. More providing the full range of services to a than 70% of college leavers from the West global client base Midlands return here. And in August 2018 we
Andy Street Cllr Ian Ward Jonathan Browning Mayor, West Midlands Leader of Birmingham City Council Chair, Strategic Economic Development and WMCA Portfolio Lead for Growth Board and Coventry and Warwickshire LEP
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secured a £50m investment to underpin the That is why we have come together to review rollout of 5G connectivity. This is an economy progress and agree the commitments and in renaissance, looking confidently to the actions needed now to ensure that growth future based on our long-standing tradition of continues and enables all our businesses and innovation and adaption. communities to benefit.
But we also know that entrenched inequalities Over the past few months, businesses, and productivity challenges remain. Both Gross colleges, universities, councils and voluntary Value Added (GVA) per head and per hour and representative groups have been working are still lower than the UK overall and recent to identify how we best meet our potential. growth has been concentrated in certain parts Alongside a detailed analysis of our economy of the region. We have communities that are and business base, independent commissions left behind and unable to access the jobs and have developed evidence and recommendations opportunities that growth brings. Indicators on diversity in leadership, skills and including healthy life expectancy and child productivity, land use and mental health. obesity show that too many people do not yet enjoy the life chances they deserve. Air quality A successful Industrial Strategy must be is still unacceptably low in some parts of the uniquely of the West Midlands, based on our region. existing and emerging strengths. It must focus on unlocking the potential that exists in our Our overall vision is to drive economic growth businesses and people, driving productivity and in a way that enables a healthier, happier, better growth, but in a way that enables more people connected and more prosperous population. to feel the benefits. It must build on existing plans for new investment in transport, skills Technology is continuing to change how and housing, and maximise the impact of major people live and work and how businesses opportunities such as HS2, the Commonwealth operate. Firms, entrepreneurs and social Games and City of Culture. enterprises of all kinds are forming new trading and supply chain partnerships nationally and Over the coming weeks, we want to get your globally. The Brexit negotiations will lead views on these commitments and actions, to changes in our regulatory, funding and whether through the range of planned events, trading environment that are not yet clear. And discussions or sending us your responses to the population growth is driving demand for new questions in this document. homes and infrastructure. All these provide new opportunities alongside the need for change. You can read more about the work, detailed Successful economies of the future will be evidence and how to get involved at those that enable the creativity, innovation and [https://www.wmca.org.uk/what-we-do/ energy of all their communities. industrial-strategy].
Page 42 of 90 3 Executive Summary
The West Midlands is a global force and a major part of the UK economy, generating £92bn or around 6% of total UK output. We are growing fast. Output is up by 23.5% over the past five years and we have a record number of people in work. This is a resilient economy in renaissance.
Our cities and towns have long been centres of innovation and production, generating new ideas, goods and techniques. The home of the first global industrial revolution is now the location of globally competitive and innovative clusters and supply chains in automotive and mobility, life sciences, creative and gaming and business and professional services. The West Midlands is a renowned centre of mobility innovation, leading the way globally in electric and autonomous vehicles of all kinds, digital and light rail and the use of data that underpins integrated transport systems.
We are consulting now as part of developing our 1. High employment, with more good jobs West Midlands Industrial Strategy that will guide and accessible opportunities, and diverse our investment and action in the years ahead. leadership in business and public life We have made substantial progress on the goals 2. A high quality and responsive regional skills we set in 2016, but there is more to do so our system businesses and people can meet their full potential. We have a track record of delivery and a very 3. Being known for the improvements we make to substantial opportunity through significant planned our natural environment, and a choice of high- investment in the years ahead. quality housing 4. A pre-eminent national creative & media We have developed a robust evidence base cluster through independent studies and commissions. 5. Being the home of future mobility and Our evidence base covers the drivers of our transport innovation in the UK economy with a detailed understanding of our businesses, sectors and supply chains. 6. Three globally and nationally-connected cities, where every part of the West Midlands is close Our overall vision is to drive economic growth to the rest of the world in a way that enables a healthier, happier, better 7. The UK’s leading exporting region with strong connected and more prosperous population. We demand-led innovation support – where are determined to drive growth that is inclusive, businesses and people come to develop and opening up opportunities and improved health and build new products, processes and services wellbeing for all our communities. 8. The UK centre for health diagnostics, devices We are proposing ten commitments which will and testing and translational medicine, based guide the work of public, private and voluntary on our unique population and driven by big partners: data and Artificial Intelligence (AI)
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9. A globally renowned 21st century advanced This strategy is focussed on the area covered by manufacturing and engineering centre the Greater Birmingham and Solihull, Coventry and 10. Innovative and successful new approaches to Warwickshire and Black Country Local Enterprise energy generation, storage and transmission Partnerships. But as well as global and national and clean growth markets our economy is deeply connected to neighbouring places, including the M54 growth We have set out the detailed actions needed to corridor and the wider Midlands Engine, for deliver these commitments, through improving example. We will continue to work closely with connectivity and opportunity, supporting supply all constituent and non-constituent members of chains and building on our competitive advantages. the West Midlands Combined Authority (WMCA) and other partners over the upcoming months and Many of these commitments and the actions in years. this strategy are already underway and build on existing investment, devolution agreements and This informal consultation phase runs until 15 agreed priorities. Others are further in the future. November 2018. Please respond to the questions in A successful Industrial Strategy will be uniquely this document or get involved through one of the of the West Midlands, building on our existing many events that partners are running in the and emerging strengths to unlock potential and weeks ahead. maximise the impact of major opportunities such as HS2, the Commonwealth Games and City of Culture.
Page 44 of 90 5 Creating our Industrial Strategy
This is the consultation document for the West The actions we are proposing address the Midlands Local Industrial Strategy. Our Industrial foundations of productivity (the horizontals in Strategy will not seek to describe all the activity Figure 1) and, importantly, are targeted through a that we and partners undertake. It will focus, detailed understanding of our sectors (the verticals rightly, on what public and private sector on Figure 1). partners need to do to support inclusive growth and productivity gains in the years ahead. This Not all of these are new. Our Industrial Strategy consultation document and the ideas in it have will build on the 2016 Strategic Economic Plan and been developed by the three LEPs and Combined integrate existing and agreed priorities such as Authority working together with our Local skills, transport and housing, using devolution to Authorities, universities, colleges, business sectors, make different kinds of investment work together. representative groups and independent academics, Figure 2 shows some of the different elements of voluntary, community and stakeholder groups. funding and delivery in the West Midlands.
This consultation document:
• Briefly summarises the evidence base, with more detail available on the website. It sets out our strengths and the opportunities and challenges we face • Reaffirms our overall vision • Proposes ten commitments • Sets out the actions needed to deliver them, grouped by three major themes:
o Building on our competitive advantages o Improving connectivity and opportunity o Supporting supply chains
• Sets out the approach we are developing to ensure that growth is inclusive • Shows how the West Midlands will make a leading contribution to the Grand Challenges which Government has defined for the UK economy
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Figure 1 Gains Inclusive Inclusive Growth & Growth &
Productivity Productivity Low carbon technology carbon Low
Energy Logistics/transport technology Logistics/transport
Future Future
mobility
Construction land Offsite modern
remediation
manufacturing manufacturing Creative makers design & design & designer- collaboration, collaboration,
Games, next gen content, creative creative content, Tourism Games
City of Culture Commonwealth Commonwealth Food & Drink & Food machinery, food & & fluid food
Food & & drink Food control tech, tech, control
photonics R&D photonics Professional services Professional Full Full
sector
services Life sciences Life testing Devices Devices
trials data trials
diagnostics,
Rail Aerospace Precision Precision & diverse diverse & intergrated intergrated component component
supply chains supply
manufacturing, manufacturing,
Metals & materials & Metals Automotive Battery development development People Ideas Infrastructure environment Business Place drive train CAV train drive Page 46 of 90 7
Most importantly this is not a strategy that will just be delivered or funded by the public sector. Businesses, large and small, and the people that work in them, create growth, prosperity and productivity in the West Midlands. Businesses and LEPs have led early work to create sector action plans for future success. Emerging actions from these are reflected in this consultation and will be developed further in the months ahead.
Figure 2 Partners Businesses, LEPs, Universities, Colleges, CA, Constituent and Non Constituent Local Authorities, NHS
Industrial Strategy Delivery Funding • Regional Skills Strategy • CA Revenue and Gainshare Integrating Delivery • Housing Deal and • Private Investment and Investment Delivery Plan • Project specific e.g. Inclusive Growth • Commonwealth Games • 5g, CAV, HS2 • City of Culture • National innovation and • Movement for Growth Research funding • National and Local Sector • ESIF - to 2020? Metrics by 2030 Action Plans Including: • LEP / local growth funding • Cluster Development Plans Increased healthy life expectancy • Shared Prosperity funding • Internationalisation (from 2020) 500,000 Jobs Strategy • HIF / Land Fund 215,000 Homes • HS2 Growth Strategy 20,000 New Businesses • Inclusive Growth Corridors
We have also worked with voluntary and Midlands can use its existing and future strengths community organisations and public services. to address the Grand Challenges and missions that This consultation sets out our thinking on how Government has set for the UK. we can work together to make growth inclusive, ensuring that all of our communities benefit. The Building on the extensive collaborative and WMCA Inclusive Growth Unit will develop this codesign process to develop the work to this point, approach with partners. we now want to hear your views in response to the questions set out in this document. This will be The core of this strategy covers the three LEP area a strategy by the region, for the region. We look at the heart of the West Midlands region. But it also forward to continuing to work with you to create it. recognises that economies and businesses operate across geographical boundaries and the significant commuting and supply chains which link our non- constituent members. We have worked widely across the three LEP area to create this strategy and we will continue to do so. We also set out ideas about how the West
Page 47 of 90 8 A Global Economy
High recent growth Significant future investment
The West Midlands is a £92bn economy that has Over the next decade the West Midlands will grown by 23.5% in the last five years. Over the last see a significant programme of investment – as 12 months, productivity growth was twice the UK’s we continue to build a connected, inclusive and rate. Our region provides a record two million jobs innovative economy, integrating private and public across a diverse range of sectors, including major capital: multinationals and large numbers of small and medium-sized enterprises (SMEs), many in major • More than £50m to create the UK’s first global supply chains. multi-city 5G test bed across Birmingham, Wolverhampton and Coventry Our cities, towns and rural areas are well • Commonwealth Games 2022 – Athletes positioned for the future. We are a region built Village, investments to Alexander Stadium and on social and commercial connections and on facilities across the region like the Olympic collaboration. More than 90% of the UK’s market is swimming pool in Sandwell within a four-hour drive and when HS2 arrives into • City of Culture 2021 – unlocking investments UK Central and Birmingham Curzon Street, with and productivity improvements in arts, culture, journey times of just 38 minutes to London,it will visitor economy and a Year of Wellbeing in bring the capital closer to the West Midlands than Coventry and the wider area it is to Cambridge. The West Midlands will also be • Nine new suburban rail stations and over 31km the site of the UK’s first 5G rollout. The potential to of new track will provide 20,000 new seats utilise early adoption of this technology across our • 215,000 new homes by 2031, providing high industries and services is immense and the West quality places to live, with real choice Midlands will trial implementation and application • £69m to support development of new skills – to communities and industry for the UK. provided in ways that meet the needs of how people live and work Investor sentiment is strong and the West Midlands • HS2 –with a £4.4bn HS2 Growth Strategy, is recognised as an excellent place to do business. including the Curzon Masterplan and 20 We are the fastest-growing UK region for goods transport schemes to fully connect HS2 exports and had the greatest number of new jobs stations to local transport networks and from FDI projects outside London last year. Since communities 2011, the number of FDI projects has tripled. • A new Metro system, including East-West Metro with extensions to Dudley/Brierley Hill and through East Birmingham to North Solihull and the HS2 Interchange station • £10bn opportunities in identified investor- ready sites
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Long-standing productivity The West Midlands exceeds the UK average for business births. Analysis indicates that the challenges structure of the West Midlands business base has huge potential, higher than the UK average. But The West Midlands’ opportunity and challenge regional firm productivity is below average. This is leveraging this investment in such a way that it suggests that problems of firm level productivity supports real productivity gains. Low productivity are more central to the productivity challenge growth is not unique to the West Midlands and than elsewhere in the UK. But the situation is the Government recognises this as a UK-wide not static. The digital interconnection of people, challenge. Significant challenges remain. But over machines and devices brought about by Industry the past two years we have worked tirelessly to 4.0 changes production processes along the entire understand the productivity puzzle here. industrial value-added process. So understanding the evolving impact of the different foundations of • GVA per head is £4,178 lower than the UK productivity in the West Midlands is key. average • Total average annual earnings are 4.1% lower in the West Midlands than the UK average and a lower proportion of people earn above the living wage • Performing to our full potential, our economy would be £16.9bn bigger, an overall output gap between the West Midlands and the UK has been increasing. This £16.9bn output gap is caused by:
£3.2bn Insufficient skills levels
£6.8bn Fewer residents in employment
Weaker performance in £6.9bn competition, investment, enterprise and innovation
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People, skills and employment The West Midlands as a whole also performs The West Midlands has a young and diverse below the national average on GCSE population, brimming with potential and attainment, adult attainment, employment opportunity. There are 1.3 million people under 25 and unemployment. 86,036 people need to be in the region (25% of the population), the youngest upskilled to close the skills gap. On basic skills, region in the country outside London. 71% of 11.4% of the WMCA area had no qualifications the region’s 52,000 graduates from eight West in 2017 compared to 8% nationally, and there is Midlands universities stay on to work here. The a ‘missing middle’ of technical skills at Levels 3 employment rate is increasing faster than the UK as and 4. Reflecting a UK-wide trend, the numbers a whole and we have the lowest number of people of people starting apprenticeships has fallen out of work for ten years. across the country, but the largest falls are seen here. Things are improving, but from a lower Communities that miss out base - since 2012, numbers of people with higher level skills increased by 113,000, faster than the We have record levels of employment. But our national average and the number of people with social mobility, wage growth and access to no qualifications is falling faster than the UK opportunities lag behind overall growth and average. vary widely across the West Midlands. We have concentrations of low employment and high levels of unemployment and deprivation. Too many of our communities don’t enjoy the access to jobs, skills and support for enterprise that they should, and face entrenched structural issues creating a confluence of poor economic, social and health outcomes. Around 50% of five-year-old children in the West Midlands do not achieve a good level of development compared to 34% nationally. Nearly a third of children in the region grow up in poverty and by Year 6 almost a quarter are obese. Healthy life expectancy is lower than the UK average. Black and minority ethnic (BAME) employment rates are 15% lower than for white groups. There are similar disparities for those with disabilities and low/no qualifications.
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skills delivery that is needs-driven by industry Skills Factory demand for skills whilst also meeting general “best practice” standards. The Black Country Skills Factory is an employer-led education and training Training and education courses are co- collaboration which aims to address the developed and co-delivered using shared shortfall of skills in the Black Country and facilities and industry trainers. This results increase the pipeline of suitably skilled staff in the provision of “bite-sized” skills training to respond to growth. It has been a highly courses which fit the current and future needs successful project in addressing skills shortages of highly technical industries. in the advanced manufacturing sector.
The aspiration is to fundamentally shift the relationship between employers and education providers to develop a networked approach to
The Hub will be an 800 sq m regeneration of an Elite Centre for historic but derelict building at the University Manufacturing Skills of Wolverhampton’s new Springfield Brewery site, with additional ‘spokes’ in foundry and (ECMS) patternmaking (Dudley Port), toolmaking (West Bromwich), and metal joining and advanced Funded through the Black Country Growth machining (Dudley) in other parts of the Black Deal, the flagship £12.4m Elite Centre for Country. Manufacturing Skills (ECMS) functions as an employer-led training facility, designed to Skills provided by the ECMS partnership improve productivity and growth in advanced underpin manufacturing performance, manufacturing through demand-led training productivity and growth and were identified provision. The Black Country LEP has been as current barriers to business growth by the instrumental in ensuring the project delivers Black Country Skills Factory. The training is training that does not currently exist in the delivered through both apprenticeships and Black Country. short courses, for example at Dudley Advance, Dudley College’s Centre for Advanced The ECMS follows a ‘hub and spoke’ model Manufacturing and Engineering Technology. with equipment and facilities being installed across four sites in the Black Country.
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Apprentices learn the latest technology in Manufacturing areas such as intelligent automation, additive Technology College layer manufacture, robotics, metrology, mechatronics, additive layer manufacture, (MTC) Advanced computer aided design (CAD) and computer aided machining (CAM). Apprentices will be Manufacturing able to test and develop their skills in sponsored placements, including the opportunity to Apprenticeship Centre undertake international assignments with MTC members and supporters. A £36m Advanced Manufacturing Training Centre (AMTC) has been developed at MTC in Ansty Park, Warwickshire to provide a flagship facility for advanced apprenticeship programmes. Having been named as one of the UK’s top 100 apprentice employers, courses here are setting the standard as the future of advanced manufacturing apprenticeships.
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Ideas and innovation But we also have clear opportunities to strengthen business innovation across the geography. Despite a long history of business innovation, West This is an innovation economy built on the Midlands business has the potential for stronger development and commercialisation of new levels of both new to firm and new to market ideas, processes and products. The 2017 Science innovation. We know too that process innovation and Innovation Audit (SIA) shows that we levels are lower than product innovation – this is have a sophisticated and thriving innovation an important challenge to address in an economy ecosystem, with a diverse mix of research with major supply chain firms in automotive, rail and applied universities all with commercially and aerospace and with specialisms in materials engaged academics, science parks, incubators and metals. And there are important sub-regional and accelerators (the largest concentration of variations. accelerators in the country, including London).
Innovation in industry, academia and research is focused in advanced manufacturing and engineering, digital technologies and data and systems integration. We have particular innovation strengths across the whole West Midlands in next generation transport systems.
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STEAMhouse will drive innovation and research STEAMhouse to create business solutions that fuel long-term economic growth through a combination of STEAMhouse is a co-working space for industry-led workshops, access to product businesses, artists and academics designed development facilities, partnership working to enable small companies and artists to work and SME grant-making. The first phase of together on new projects and business ideas. STEAMhouse launched in Spring 2018 and There are facilities such as 3D printers, laser will engage with at least 200 SMEs in the cutting machinery, virtual reality and printing Greater Birmingham Solihull Local Enterprise studios. Partnership (GBSLEP) area over a three-year period.
from industry, university academics and supply Warwick chain companies. It is intended to support Manufacturing Group advances in technology to reduce dependency on fossil fuels and vehicle emissions whilst also (WMG) developing the talent required for the demands of emerging technology. This is in addition to WMG is one of the world’s leading research the existing facilities: and innovation groups. Since its inception in 1980, WMG’s mission has been to improve the • Energy Innovation Centre competitiveness of organisations through the • Centre for Imaging, Metrology and application of value adding innovation, new Additive Technologies technologies and skills deployment, bringing • Automotive Composites Research Centre academic rigour to industrial and organisational • Advanced Steels Research Centre practice. • Make-Like-Production Facility • Cyber Security Centre WMG is a pioneer of innovative technology, • International Institute for Nanocomposites leading major multi-partner projects to create Manufacturing and develop new products and processes that • Institute of Digital HealthCare can be adopted by organisations. • International Manufacturing Centre • International Digital Laboratory The new National Automotive Innovation • International Institute for Product and Centre is the largest of its kind in Europe and Service Innovation the product of partnership with Jaguar Land • WMG Academy Rover and Tata Motors. The centre will focus on automotive research, combining expertise
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Infrastructure Changes in affordability and a lack of social housing risks holding back growth and impacting We are a well-connected region. More than 90% our communities. Housing costs are increasing of the UK’s population live no more than a four- faster than local salaries. Most WMCA areas hour drive away. The region is served by one of are in the top fifth of house price increases the UK’s fastest growing airports, carrying 13 nationally. The WMCA median increase is 6%, million passengers a year on 50 airlines to 143 more than double the national average. This has destinations. Birmingham International recently been exacerbated by a lack of supply, quality, announced direct flights between Birmingham choice and mix of affordable and social housing and Amritsar in India. This is a UK first. - typically only 10% affordable housing is being delivered as part of city and town centre housing But there is an overreliance on the road network schemes. The rate of housing completions in the compared to other modes of transport, which region is rising. With population set to increase results in poor air quality and costly congestion. by over 400,000 by 2038, we are committed Only 41% of residents are able to access three to ensuring housing meets the full spectrum of or more centres by public transport within 45 housing need. minutes in the peak morning traffic. And there is still a significant variation in superfast broadband, full fibre and gigabit capable broadband coverage.
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• 104,000 created and safeguarded jobs – HS2 growth strategy 10% jobs created for local residents who are currently unemployed The WMCA will leverage the benefits delivered • Increase the number of people qualified to by HS2 to drive local growth on a nationally NVQ Level 4 or equivalent to the national significant scale, through packages of average of 36% interventions to drive job creation, productivity • 2,000 apprenticeships and generate net national growth. • 700 businesses supported to take advantage of the opportunities The two HS2 stations and Birmingham Airport, • £14bn additional economic output with its huge potential and ability to open • 2m of the region’s population connected to access to key international markets, will drive HS2 by public transport new areas for regeneration, housing and business growth across the Midlands. The major investment in region wide connectivity is ultimately capable of delivering:
appointment at a later date or share it 5G applications securely with a family member or carer to help inform their care The West Midlands will be the first place in • “Connected Ambulances” - Paramedic the country to trial new 5G applications and crews at an incident could access specialist services at scale. This multi-million-pound advice while they are at the scene, e.g. trial of new high-speed connectivity will video conferencing with consultants or pave the way for a 5G rollout across the UK. other clinical specialists. Live streaming of The application to industry will be initiated patient data from ambulance en route to in areas of distinctive strength, particularly hospital would help inform the immediate health, construction and automotive sectors, care patients receive on arrival benefiting people’s lives through participation • Live streaming of CCTV footage from in new digital tech and transformed public public transport buses, enabling immediate services. Example uses include - action against anti-social behaviour. “Intelligent cameras” using artificial • Hospital outpatient appointments and intelligence (AI) to identify incidents could emergency consultations carried out provide the opportunity for far greater remotely by video link not subject to coverage than is possible at present droppage or latency barriers. As well as being more convenient for patients, this means they can play back their
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Business environment The West Midlands is the fastest growing UK region for goods exports, 27% growth between GVA per employee varies significantly across 2015/17. Outside London and the South East, we sectors in the WMCA, with an overall figure export the most by value, over £33bn in 2017. of £42,897. This average is below the national Between 2011/18, 775 Foreign Direct Investment average of £49,541. A total of six sectors have (FDI) projects have created nearly 46,000 new an above-WMCA average GVA per employee, jobs and the number of projects per annum including Business Professional and Financial has more than doubled. But there is uneven Services (£64,194), Advanced Manufacturing distribution of inward investment jobs – most and Engineering (£48,728), and Construction go to the Greater Birmingham and Solihull (£45,161). Meanwhile, four sectors, including Local Enterprise Partnership (GBSLEP) area Retail (£31,952) and the Public Sector (£33,614), (71%). One quarter are created in Coventry and have below average productivity. Warwickshire LEP (CWLEP), but only 5% in Black Country LEP (BCLEP).
The scheme works by matching mentors to Mayor’s Mentors young people who may be at the very start of their career, looking to retrain and move into Despite considerable economic success in new work. They will typically meet a young recent years, a dynamic and thriving business person, either face to face or virtually for up to community and wealth and opportunity, not a year, to discuss the young person’s studies, everyone has been able to benefit from this ambitions and career opportunities. WMCA success. Mayor’s Mentors is a new initiative is working with a number of organisations launched by Andy Street, Mayor of the West offering mentoring in the region to significantly Midlands, to help provide young people the life expand the scale, reach and impact of skills and advice they need to flourish. mentoring for young people.
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Sectors
The West Midlands manufacturing heritage has transformed into a globally significant advanced manufacturing sector. The West Midlands contains a critical mass of globally competitive businesses, and high-technology and technically specialist small and medium sized firms, operating within and across a range of transport-related industries.
Automotive. The West Midlands produces Rail. The West Midlands has a significant rail one third of the nearly two million vehicles supply chain, particularly in activities at the higher manufactured in the UK and one fifth of the UK’s end of rail design and engineering, and companies motor vehicle parts and accessories businesses are supplying rail as well as automotive. located here. The region has 35 automotive OEM brands, major R&D and headquarters operations The sector is underpinned by academic excellence and over 20 vehicle manufacturing sites. The and private sector leadership through Birmingham cluster has attracted and retained global brands Centre for Railway Research and Education which Jaguar Land Rover, Aston Martin Lagonda and specialises in digital train technology and Quinton BMW (engine manufacture), Geeley London Rail Technology Centre as the UK’s leading facility Electric Vehicle Company and smaller, niche for rail testing, trialling and product development. manufacturers. Major planned investments including HS2, Midland Metro Extension and projects in Control Period 6 The sector employs 46,000 people, generating present significant opportunities for growth and £3.2bn GVA and is supported by an integrated applying innovation locally. network of tier 1, 2 and 3 component and engineering suppliers. Both CWLEP and GBSLEP Key in underpinning these transport related areas employ more people in the sector than industries are the cluster of foundation industries any other in the country. The Black Country is within metals and materials. This historic presence home to a deep and diverse network of tier 1, 2, 3 and current and future expertise for advanced component and engineering suppliers that extends manufacturing plays an important role in the out across the region. regional economy, contributing 75,000 jobs and £4bn GVA. There are significant existing strengths and innovative capacity in Powertrain and battery Similarly, the region’s distinctive low carbon propulsion, Connected & Autonomous Vehicles expertise makes the West Midlands an attractive and Prototyping and product development. market for commercialising new energy and transport system technologies in the UK. This Some 70 West Midlands firms make up around sector is the most productive sector in the West 10% of the UK aerospace industry. Clusters exist Midlands, with GVA per employee that outstrips in the engine supply chain around Rolls-Royce and the national average. electro-mechanical systems, like UTC Aerospace Systems and Moog. Focused on civil aircraft, West The advanced manufacturing economy also Midlands products and services contribute to the underpins a food and drink sector which has seen latest passenger planes made by Airbus, Boeing the greatest long-term growth in food and drink and BAE Systems. manufacturing of all UK regions.
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Meanwhile a thriving business, professional and Ahead of landmark events like City of Culture 2021 financial services is the region’s largest GVA and Commonwealth Games 2022, the tourism contributor and employer with the UK’s largest sector will be primed to capitalise on its host regional full-service banking and professional status, with the opportunity to increase the length services cluster, serving a global client base. of the season and business tourism levels to drive The cluster is supported by world class business economic growth and leave lasting community schools, including Aston, Birmingham and legacies. Warwick, resulting in more business students than any location outside London. Already, the West Midlands is the UK’s fastest growing region for international visitors – attracting New technologies and world class assets support a record 2.3 million overseas visits in 2017, up a high value medical technology and life sciences by nearly 50% over the last six years. Business, cluster. There are particular strengths in R&D, conference and exhibition tourism is a particular design and production of high-tech medical strength. The Shakespeare’s England area, which devices (firms like Salts Healthcare and Kimal), includes Stratford, is one of the UK’s largest diagnostics including in-vitro (The Binding Site, cultural tourism draws, with around 9.3 million Serascience, Perspectum) and software as a people visiting every year. medical device (Safe Patient Systems, Evolyst). The region’s strengths in med-tech include the Our creative sector continues to grow, including application of AI, digital and data analytics, with important maker clusters and a globally significant the West Midlands as an important location concentration of gaming and innovative and for clinical trials. The region’s NHS Trusts and immersive content and high-end production, universities attract large numbers of trials from centered on screen media including film, TV and global industry to an international centre of virtual reality (VR) and augmented reality (AR). expertise in accelerated trials models and a track record in health data collection. By focusing on identifying the specific dynamics of our industries, we can ensure that our collective Industrial know-how in advanced manufacturing is effort across public and private partners supports strongly related to major construction activity and our people and businesses to take advantage of the expected spending of £3.8bn per year for the next opportunities ahead, including through having the five years in transport and housing investment. techniques and skills required. This is the third largest sector in the West Midlands with companies across the supply chain operating locally.
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Consultation questions
Have we identified the right Are the challenges and strengths and competitive opportunities facing our economy advantages in our sectors? accurately articulated?
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Commitments
We have agreed ten ambitious but deliverable commitments. These show the kind of West Midlands we will achieve, by working together on connectivity and access to opportunities, on supporting successful supply chains and building on our distinctive competitive advantages.
Our commitments are grounded in what the Locally, our expertise will have created a fully evidence shows about our strengths and the integrated, multi-modal and smart transport opportunities these unlock. These build on the network, enabling seamless travel across 2016 Strategic Economic Plan priorities, reflecting the West Midlands, dramatically reducing our changing national and global economy and congestion and journey times recent progress. Each commitment is followed by a 6. Three globally and nationally connected short explanatory note. cities. Where every part of the West 1. High employment, with more good jobs Midlands is close to the rest of the world – via and accessible opportunities, and diverse air, road and rail at UK Central’s international leadership in business and public life. Where gateway and with the best ultrafast and 5G wage growth has been driven by value chain networks in the country progression and productivity gains, including 7. The UK’s leading exporting region and strong through improved health and wellbeing demand-led innovation support – where and with more home-grown high growth businesses and people come to develop and businesses and a partnership that reflects our build new products, processes and services. population Supported by the business, academic and 2. A high quality and responsive regional public partnerships needed to drive new skills system. Recognised by individuals and ways of doing things and new products. With businesses as providing the opportunities, significant growth in the number of SMEs pathways, skills and retraining needed to take exporting to new markets advantage of future growth and a changing 8. The UK centre for health diagnostics, devices world and testing and translational medicine, based 3. Renowned for the improvements we on our unique population and driven by big make to our natural environment, and a data and AI. A global Life Science cluster choice of high-quality housing. Celebrating complementing and working in partnership and protecting the high-quality natural with the golden triangle and the cluster environment, public spaces and bio diversity centred around Euston just 38 minutes away that makes us a great place to succeed 9. A globally renowned 21st century advanced 4. A pre-eminent national creative & media manufacturing and engineering centre, home cluster anchored by institutions and world to OEMs, new Tier 1 companies, and extensive class facilities and networks driving innovation highly productive and technology driven and collaborative approaches to Intellectual supply chains in the biggest concentration Property and business growth of high value manufacturing businesses in 5. Being the home of mobility and transport Europe, supplying automotive, aerospace, rail innovation in the UK, the national centre for and marine, with high quality components and electric motor and battery manufacture for materials the full range of electric vehicles, supported 10. Innovation and successful new approaches to by supply chain adaption, and the highest energy generation, storage and transmission electric vehicle adoption and Connected and integrated with our transport system and major Autonomous Vehicles use anywhere in the UK employment sites Page 62 of 90 23
Consultation questions
Are these the right ten strategic commitments?
Do they reflect the momentum which is underway and the opportunities ahead?
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Inclusive Growth
As the economy section above shows we have Help workers to move up the value chain long term issues. But devolution, combined with and access more employment opportunities an economy in renaissance, gives us a unique through in work progression – increase the opportunity to make inclusive growth happen here, support available to people to access in-work now. The commitments at the heart of this strategy progression opportunities, particularly for set out what we believe a more inclusive West employers and residents working in tourism, Midlands can be. retail and other historically lower paying sectors, where technological change will open up new, We want to ensure that all our residents and higher skilled roles. This will require focus through communities can touch, taste and feel the benefits business support and skills provision. of rising prosperity. And we know that we will be most successful if we benefit from the creativity, Ensure that skills and employability support for talent and ideas in all our communities. Our residents are aligned with business support and opportunity is to use our Industrial Strategy and the that it is designed in a flexible manner that can potential of a young and growing population to act address evolving needs of employers. boldly where we have the levers to do so. Use our role as the public sector to deliver Our strong local partnership, together with the new ‘anchor’ commitments – through procurement powers and influence of the Mayoral Combined and our social value commitment minimise barriers Authority, gives us the chance to drive progress to bidding for SMEs and new entrants. Lead by over the long term, make the case to Government example to promote diversity by implementing and make things change. the Leadership Commission’s recommendations of organisational culture change policies and policies We will do this through focussing on specific to support individuals in the WMCA and wider challenges and specific cohorts. public sector.
Taking a place-based approach - integrating Nurture children & young people as our social investment in specific sites and growth corridors capital of the future - developing new ways bringing together transport, housing, skills, Public of tackling social problems that have become Service Reform and wellbeing investment to drive entrenched in the region and which block the long-term change. potential of so many of our communities.
Address wider determinants of Wellbeing - Expand radical prevention programmes - includes Coventry and Warwickshire will run a Year of work with NHS such as the MCP model in Dudley Wellbeing in 2019 driven by the European City or Wolverhampton’s health integration. of Sport and develop wellbeing & productivity Sustainability and Transformation Plan work with Embrace the role of social enterprise – to Clinical Commissioning Groups. diversify the types of economic activity available to create opportunities and improve wellbeing and Focused on bespoke solutions for individuals, productivity for people and communities. for example through the ‘Thrive into Work’ programme – a new employment support service for people with a mental health and/or physical health condition in primary and community care.
Targeted action to reduce youth unemployment – a fresh new approach to working with young people through the Transition to Work scheme to create a sustainable pipeline of young talent in the region.
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Work and the Government’s deficit reduction Black Country City Deal agendas. Working Together pilot Led by Accord Group, the delivery of the City Deal ‘Working Together’ is a pilot project project is based on individualised need and which aims to increase the employability of the provision of support to address identified 2,800 long-term unemployed and economically barriers to employment. ‘Working Together’ inactive Black Country social housing tenants operates within specific geographical areas and move 900 people into work over a across Black Country local authorities, three-year delivery period. The project is a highlighting the appetite to drive inclusive holistic “Journey to Work” programme which growth in the region. pulls together the key partner organisations and delivers tangible results for employers, employees, housing providers as well as delivering on the wider growth, Welfare to
The pilot is part of the Inclusive Economy Inclusive Economy Partnership, bringing together business, civil Partnership - Transition society and government to help address major societal challenges facing those on low to to Work middle incomes.
The ‘Transition to Work’ West Midlands Pilot The pilot has a number of partners including aims to take a data driven, systems based, Accenture, Movement to Work, UnLtd, O2, youth-led open innovation approach to reduce Youth Employment UK, Big Lottery Fund, youth unemployment in local communities Prince’s Trust, Department of Workforce and support young people into work. It is and Pension and West Midlands Combined designed to better reach young people who Authority with support from the Cabinet Office are currently not in education, employment or and the Department of Culture, Media & Sport. training by breaking down the silos that exist between organisations and taking an integrated approach defined by young people.
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Actions
The evidence, which is summarised in the previous sections, gives us a detailed understanding of both our business sectors and the foundations of productivity which Government identified in the national Industrial Strategy.
Partners have worked together to identify clear actions which will deliver our commitments and drive progress on the foundations of productivity. They are rooted in what we know about our existing strengths and future opportunities. We have grouped our actions under three themes. Improving connectivity, driving opportunities in supply and value chains and building on our competitive advantages. Building on our competitive advantages
All our sectors make an important contribution. The evidence shows that the West Midlands has particularly distinctive strengths and opportunities in four major fields:
• Mobility and transport innovation, as the home of electric vehicles, connected and autonomous vehicles and battery manufacture in the UK, supported by a dense and diverse network of supply chains • Health care diagnostics, devices and testing, driven by data and AI • Global professional services, driven by the largest full-service cluster outside London • A globally-significant creative sector, with particular strengths in new content platforms, software and gaming
These existing and emerging strengths will enable the West Midlands to make a significant contribution to the major opportunities and challenges facing the UK, whilst driving growth across our cities, towns and rural communities.
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Smart urban mobility Headline actions include: - lead the smart, low • Developing capabilities to use large volumes of near to real-time data sourced carbon movement of from intelligent roads and vehicles plus spatial and environmental data to manage people and goods new transport systems operating on a complex network. These will be developed The West Midlands is the recognised centre of alongside proposals for a new national transport innovation in the UK. We have global open data institute specialising in CAV data research and business strengths in digital rail, • Run a Challenge Fund call to look at digital the largest Connected Autonomous Vehicle services to support productive travel (CAV) testbed ‘Midlands Future Mobility’ • Run a demonstrator at the 2022 [https://midlandsfuturemobility.co.uk] and the Commonwealth Games using visitor travel leading specialist CAV vehicle manufacturers information to showcase new regional of Westfield and RDM. New facilities like the approaches to mobility across all modes of UK Battery Industrialisation Centre and the transport, including autonomous services Advanced Propulsion Centre will add to the • Establish data and mobility technology existing expertise. scholarships for the analysis of mobility data and application of disruptive We are also undergoing huge transport technology into the manufacturing supply investment, building an integrated, multi modal chain and logistics system linked to HS2. The combination of • Engage with UK government to develop the two gives us the platform for testing and a new West Midlands Future Mobility developing UK and global solutions for the Zone to pilot and prove out the future future of mobility. We know that resilience and transformation of UK smart mobility integration in transport systems are critical to • Working with the private sector to rapidly drive productivity, improve accessibility and accelerate the delivery of electric vehicle air quality. charging infrastructure
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An innovative public and private partnership Life Sciences – using will drive the next phase of cluster data to improve health development, including through ensuring the availability of employment land, incubator and wellbeing space and innovation support and the development of new commercial opportunities We are a centre of translational medicine, one and markets. of the few locations that can provide the full cycle of activity required including in testing, Other priorities include: devices and diagnostics. • Working with the national Centre for Data Our diverse population reflects the future Ethics and Innovation to provide evidence of the UK and we are a recognised centre of on how to improve the use of data and AI excellence and innovation in patient and health between businesses/sectors data. In the West Midlands the integration and • Exploring new citizen engagement availability of data creates a unique opportunity strategies (e.g. behaviour change, open to create an environment for new care products data etc) to further build active resident and services, AI diagnosis and modelling the involvement cost effectiveness of interventions. We aim • Work with the innovation base to develop to develop the UK’s first regionally-scaled approaches to building data sets from integrated translational research and health research and innovation projects into a data hub providing safe and curated access to coherent regional library of health-related large, integrated and comprehensive clinical data datasets, embedded within the innovation • Establish a virtual cluster of data ecosystem and ensure that this is accessible studentships to work on regional health to SMEs. data problems and develop a skilled workforce for the future. Support health data skills in professions such as nursing where there is a responsibility for citizen health
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Business, Professional • Developing better links with local High and Financial Services Education and Further Education colleges to facilitate business growth through (BPFS) attraction and retention • Significant local and national connectivity, Our thriving BPFS sector has specialisms in including HS2 and infrastructure like varied financial, legal, accountancy and insurance. housing stock The strong underpinning of world class • Continued investment in high quality business schools including Warwick, Aston and employment sites and office availability Birmingham results in more business students • Support for digital innovation and new here than any location outside London. approaches in the supply chain to encourage new products and services We are expecting to see continued growth in • Further inward investment marketing the sector supported by many of the actions in to establish the West Midlands as a key this strategy, particularly: location for firms and business
Creative and gaming Headline actions include: cluster • A business led Creative Innovation & Talent Hub to discover, develop and showcase The creative cluster is internationally new creative content and diverse talent in recognised. Leamington Spa and Coventry are broadcasting, arts, games and social media at the heart of new content production and and develop and implement an ambitious platforms. Emerging strengths include gaming, cultural investment programme artificial intelligence and immersive on-screen • Implement a strategic programme of media like film, TV, virtual reality (VR) and employment land development including augmented reality (AR). Birminghams Digbeth, smaller units for SMEs and grow-on and Jewellery Quarter have the strongest space to support scale-up businesses and concentration of creative maker employment growing industries like gaming within the of any LEP area in the UK. Significant creative cluster regional strengths are also identifiable across • We will respond to high demand for advertising and marketing, design (graphic, production by investing in the TV and product and fashion), ICT and web-based film production capacity of the region by services. In the coming years, our cultural, establishing new studio and production tourism and sporting businesses will power the facilities delivery of the 2021 City of Culture and 2022 • Through our 5G testbed, provide a public Commonwealth Games. asset and platform capable of driving market opportunities around new content generation • Continue to foster spaces and networks for sharing IP and building new approaches to developing valuable ideas
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Improving connectivity and opportunity
The West Midlands has always been built on connections between people, places and ideas. The innovations, products and opportunities of the future will come from the collaboration between sectors that were traditionally quite separate (such as gaming and automotive), from entrepreneurs in communities that have not historically had the access they deserve, and from creative businesses exploring new and different approaches, getting people engaged with their own health and wellbeing.
We need to continue to build the connections that Public and private partners in the West people need for the future. Alongside transport Midlands are committed to ensuring that connectivity and our digital infrastructure, this all our investment improves the natural includes improving the accessibility of skills and environment jobs for all our communities and the networks and linkages between businesses, universities and • Embed a natural capital approach in our colleges that drive ideas and innovation. Devolution investment strategies – in line with world gives us new tools to bring together investment in leading economies using innovative solutions transport, housing, skills, public service reform and to urban challenges such as air quality, flood wellbeing to drive long-term change and work in water management, overheating in urban partnership with Government, including to identify areas, climate change adaptation where further devolution would improve impacts. • Seeking to green transport routes; improve access for walking and cycling through natural Equip the region with efficient local, national corridors, with the ambition of an annual net and international infrastructure gain for biodiversity and natural capital • Improve air quality through a strategic action • Build a fully integrated and seamless, multi- plan for the West Midlands, to improve health modal transport system across the whole and wellbeing and unlock new clean growth region, investing £3.4bn over the next decade opportunities in trams, roads and rail. A West Midlands • Work with the private sector to accelerate integrated control centre to deliver the charging infrastructure for zero emission smartest streets and best managed network vehicles across the region, driven by demand including during HS2 construction and major • Build on planned investment of more than events such as the Commonwealth Games, £15bn in local energy projects to 2030 to reducing congestion, improving journey times, secure the additional power which industry air quality and productivity needs, particularly the manufacturing supply • Further strengthen international connectivity, chain. Energy Innovation Zones, as proposed ensuring that the region is nationally and by Energy Capital, are one way in which the globally connected through HS2, UK Central West Midlands is a pioneer in this field, as and a growing airport outlined in the following case study • Be the first 5G ready region, leading the way for the UK through the UK Government backed national Urban Connected Communities pilot and with a strong supporting digital infrastructure including a full fibre network
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Energy Innovation Zones will channel Energy Capital investment over the next 15 years including a £500m specialist regional public – The cost of energy is fundamental to increasing private investment fund to support local productivity in the West Midlands economy energy solutions for our clusters, transport whilst improving outcomes for residents. infrastructure and new communities. Energy Capital is the West Midlands’ place- focused approach to investment in energy Working with industry partners, government infrastructure and local energy supply, creating and regulators we are developing and new markets for businesses and addressing testing this new model of a regional energy citizen inclusion by reducing fuel poverty. infrastructure commissioning and market- making.
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Deliver an ambitious housing programme Give more people the skills they need to move into and ensure availability of strategic employment by: employment land • Delivering our £4.7m Employment Support • Increase the rate of housing delivery by Pilot to support those out of work and on low implementing the £350m housing plan, incomes in targeted communities investing £250m in land remediation and • Establishing an employment support developing the skills required through framework for the region to improve the the National Brownfield Institute in co-ordination, commissioning, delivery and Wolverhampton. We will work to re-set the impact of all programmes to support the housing contract as an economic good and the unemployed end to end approach to house building with a • Improving the range and impact of the career firm commitment to deliver a broader choice planning advice that unemployed and low- of tenures and styles. We will deliver quality paid adults can access through a West Midlands wide design standard • Improving our focus on upskilling low paid for new buildings and diversify this increased and low skilled residents, to improve their delivery by encouraging new entrants to the long-term career and income prospects market, including through modular build, and • Providing a new employment support service support the provision of new skills needed as for people with a mental health and/or physical the industry changes health condition in primary and community • Implement a strategic programme of care through the Thrive into Work project employment land development whilst also • Supporting the effective delivery of theWork revitalising existing sites to bring them back and Health Programme in the WMCA area into productive use. Provision will also include working with Jobcentre Plus and Department smaller units for SMEs and grow-on space for Work and Pensions and taking an active to support scale-up businesses and growing role in the performance management of the industries like our gaming cluster contract • Deliver current and future training and skills Ensure people of all ages, in all our diverse provision through the Adult Skills Budget communities, are able to access the skills (c£100m) and retraining funds (c£10m) building they need to sustain good jobs and careers on successful provision across region
• Create a West Midlands Career Learning Ensure skilled employees are available to Hub to improve the focus and impact of support business growth and productivity careers education and advice. Inspire more young people and encourage them to access • Accelerate the uptake of quality new regional opportunities, for example by apprenticeships by maximizing Levy celebrating and promoting our most powerful investment for the West Midlands. Lead a role models - our young talent across the regional campaign to promote the benefits region. Work closely with the Department for of apprenticeships – to employers, young Education (DfE) and its agencies, including people, employees and key stakeholders. Ofsted, to highlight regional issues and Support more young people to access pre- opportunities apprenticeship provision and to progress into • Use targeted inclusion to unlock participation high quality apprenticeships in particular cohorts, connecting communities • Support the introduction of new T-level routes and individuals to opportunity, using the and work experience openings to improve inclusive growth corridors as a primary the work-readiness of young people. We are mechanism for this. Maximise our international seeking full Government backing for Dudley assets in the universities and civic and global Institute of Technology which will redevelop exchange programmes, to give our young land to provide teaching facilities for higher people exposure to international experiences level skills programmes and for the Greater to support social mobility, including through Birmingham & Solihull IoT which focuses on mentoring and access to long term support advanced manufacturing and industry 4.0 and advice through greater collaboration of Further and
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Higher Education and creating clear pathways Ensure businesses are connected to the from level 3 to level 6 customers and opportunities which will • Create employer-led taskforces, for each of allow them to drive growth our priority sectors, to drive curriculum and skills provision that meets employers’ needs. • Explore a business led Creative Innovation & Develop an investment plan to build teaching Talent Hub to discover, develop and showcase capacity and access to industry standard new creative content and diverse talent in teaching equipment and facilities, across the broadcasting, arts, games and social media region and develop and implement an ambitious • Attract and retain the talent business needs cultural investment programme with employers and education providers • Increase internationalisation by continuing to working together to attract the brightest and leverage national resources and the Midlands best to the region Engine brand, focussing on both high value • Create the West Midlands new Digital Skills contracts and those new exporters and Partnership that links the region’s existing and securing first overseas orders. This will include emerging digital offer with national and sector- identifying, researching and accessing new based initiatives markets with a particular focus on smaller businesses, which may not currently be Through our devolved arrangements on supported skills, create a more agile and responsive • Embed support for growing business in our skills system that is more aligned to the most deprived and diverse communities for needs of business and individuals and which business-led inclusive growth allows more people to move into higher skilled jobs.
Develop a skills ecosystem for the West Midlands which:
• Recognises the inter-dependence of schools, further education (FE), higher education (HE), adult and community learning and private and voluntary training providers and facilitates stronger collaboration with employers, to address regional skills needs • Supports our local authorities in their work to improve school performance and young people’s attainment • Re-design the way we do partnerships – placing residents and businesses at the centre of our skills training offer with clearer progression and integrated training offers • Encourages region-wide approaches wherever possible so we can develop joint funding bids, shared infrastructure and sharing of good practice
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Improving innovation and making best • Innovation talent: Support business with use of research assets is central to the skills needed to innovate and deliver, productivity growth. either through access to appropriate training, or to resource in universities, We will further develop a strengthened and Catapults, and technology innovation integrated innovation support system through: networks, including exploring proposals such as CITEC and supporting businesses • Innovation networks and linkages: developing the management skills needed Building on existing programmes to join-up to unlock innovation assets, entrepreneurs and exploitation of • Innovation intelligence: Create a West synergies across sectors, technologies and Midlands foresight programme as a supply chains, including shared incubator mechanism to generate new ideas and environment, sector specific tech transfer promote awareness of latest market networks and business led forums to advise demand from large firms and the public on sharing and developing intellectual sector for innovative SMEs as well as property technology drivers of change • Innovation investment programmes: • Bids: Coordinate West Midlands’ highest Integrate investment in innovation with priority research funding bids with local supply chains, supporting broad and oversight from the Innovation Board accessible investment and access to a good • Innovation culture: Showcase the impact supply of appropriate finance products on and importance of innovation across the attractive terms including equity financing West Midlands’ public and private sectors and innovation support funding, such as SME Reach Fund and finance for smaller scale R&D projects
Driving opportunities supply and value chains
The focus will be on interventions that maximise impact by driving change into our deep and diverse supply chains, identifying unconnected supply chains and enhancing value chains.
Improve in work progression • Direct £40m Apprenticeship Levy funding to support more apprenticeships for SMEs, • Help workers to move up the value chain targeting Science, Technology, Engineering and access more employment opportunities and Mathematics (STEM) skills in our priority through in-work progression. This will happen sectors and supply chains by increasing the West Midlands offer around cross-sector in-work progression opportunities Ensure access to support for all businesses accessible to employers and residents working in retail and other low paying sectors. Support • Build on the existing advanced manufacturing retraining for those whose jobs are at risk of supply chains to improve their global automation competitiveness through supply chain SME • Create employer-led, sector action plans that support led by businesses for businesses, address current and future skills priorities including the Advanced Manufacturing Supply Chain programme
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• Deliver dedicated, segmented business Drive improvements into specific industries support focused on our highest growth to boost their capacity to respond to regional potential industries through dedicated “cluster” opportunities support for future high growth sectors • Maximise our management and leadership • Maximise the opportunity of the capabilities, building on existing successful Commonwealth Games and City of Culture, programmes and increase peer-to-peer including through focussed support to extend mentoring provision with business leaders of the season and further increase business today mentoring leaders of tomorrow, building tourism. Targeted support to drive productivity on successes of pilot programmes through the visitor economy, developing • Launch a fund for new industry co-investment bespoke qualifications for staff looking to to provide wrap-around support for businesses step into management roles, providing key looking to grow into new sectors, supply underpinning skills and competencies together chains and markets, who need to invest in new with the business insights required technologies and capital to grow into those • Maximise the opportunity of HS2 to create markets regional supply chains and the skills both to • Tackle access to finance from both the supply service HS2 and wider infrastructure projects and demand side. Maximise existing routes to include a long-term rail/infrastructure for loan and equity finance, attracting more strategy along with dedicated support private investment but also working with our to address both supply and demand side businesses to ensure that they are investment challenges ensuring our businesses benefit ready through business planning, support and fully from HS2 opportunities advice from entrepreneurs • Explore opportunities to accelerate the use of • Develop a virtual Productivity Factory, data and innovative processes and products working with businesses and trade bodies, in the construction industry - enhancing to strengthen supply chains by improving process innovation via modern methods of firm level productivity. Using expert industry construction, building information modelling benchmarking and coaching, masterclasses and modular build. Incorporating innovation on management processes, accessing new in houses as they are being built, working with markets, supplier efficiency and sector- housing associations and other providers specific topics • Develop proposals for a Brownfield Institute, • Expand scale-up support to ensure that no reinforcing our existing expertise and high potential companies miss out on support developing future skills and supply chain which will help position them to provide the opportunities good jobs of the future • Create a national Centre of Excellence for Commissioning to drive procurement excellence, social and environmental value and innovative behaviour through contracts, particularly focussing on construction and digital infrastructure
Consultation questions
Will these emerging actions help your business or community grow and succeed?
What else will help your business and/or community grow and succeed?
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Grand Challenges
The Government has identified four Grand Challenges: Future Mobility, Clean Growth, Ageing Society and Artificial Intelligence and Data. All are areas of significant, long term social, economic and technological change. Demand for solutions will drive the creation of new markets for innovative products and services and it will disrupt current models and approaches. The UK’s response to these changes will define its future success.
To understand the ways in which the West Other opportunities for innovative new markets Midlands can lead the response to and benefit driven by these large-scale trends and changes, from these national trends we have consulted linked to major investment and events in the West widely with academics, thought-leaders and Midlands include: industry experts. Our Industrial Strategy will be built on a clear understanding of where we can • Using the City of Culture as an opportunity to build on our existing and emerging strengths to bring creative approaches to engaging with deliver our ambition and make a major contribution older citizens and communities and reduce to tackling these challenges. There are three major isolation areas where the West Midlands can play a leading • Making the Commonwealth Games a role, which are central to the actions and analysis showcase for driving digital services and smart in this consultation and we can create innovative city applications at scale and leaving a legacy products and services that align with significant of digital citizen services future investments in the region. • Use the development of new homes and communities to drive innovative approaches to • Energy Capital – putting the West Midlands sustainable construction and improve sector at the forefront of developing of local energy productivity, and to address challenges around infrastructure and markets active living, digital community engagement, • Smart urban mobility - a global centre clean energy and urban spaces for mobility innovation and the smart, • Innovative products and services to support an autonomous, and low carbon movement of ageing workforce people and goods • Develop the infrastructure and support • Health data - a globally recognised centre for required to maximise value from future supply data driven diagnostics, devices and testing chains in waste and resident involvement in health Consultation question
Are these the right opportunities for the West Midlands to take in order to benefit from and make a major contribution to the UK’s response to Grand Challenges?
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The West Midlands Local Industrial Strategy area
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Evidence
Over the past two years, the West Midlands has developed a comprehensive evidence base and detailed understanding of our economy. This has involved detailed analysis of the drivers of productivity and growth, alongside our business sectors and how they inter-relate. To be effective, our strategy has to target action on both, and in ways that have maximum impact on our businesses and people.
This enables us to be precise about different In addition to the full evidence base, put together opportunities and challenges: initially for our 2016 economic strategy and recently updated, we also publish regular updates • In specific sectors and sub-sectors - such on key trends and statistics as new figures become as powertrain and battery technology in available. The most recent “State of the Region” automotive, or gaming in our creative sector report is published here [https://www.wmca.org. • Across sectors, such as our competitive uk/media/2341/wmca-sor-full-technical-report. advantage in mobility innovation or the need pdf]. for cross sub-sector innovation support in the manufacturing supply chain Since 2016 the West Midlands has also established • Understanding the relationship between the independent commissions of leaders and experts foundations of productivity and what drives in the fields of land supply, skills and productivity, inclusion, so that we can be clear about the Leadership and mental health. Together these impacts of different interventions and target directly address the foundations of productivity, investment accordingly their reports can be found here [https://www. wmca.org.uk/what-we-do/research-analysis]. This level of detail is fundamental in a world where technology is creating opportunities and The West Midlands has an established approach challenges that are increasingly cross sectoral to evaluation and internationally recognised and where success depends on technological academic expertise in understanding the impact of development, creating new markets and where we different approaches to productivity and growth in know that traditional approaches to growth models cities, clusters and supply chains. We are deeply and outputs have not delivered benefits to all our committed to building this capacity through this communities - not picking winners, but putting in strategy, so the West Midlands continues to make place support for new approaches to production, a leading contribution to global practice and new supply chains and working patterns, building expertise. on the expertise and global advantages that we have.
You can find the full emerging evidence pack that supports our Industrial Strategy here [https://www. wmca.org.uk/media/2457/economic-research- library.pdf].
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Next steps
In the weeks ahead, a large number of organisations will be running events and discussions about the ideas and actions in this consultation document. Please get involved and send us your responses to the consultation questions by Thursday, 15 November 2018. You can find further details on our website [https://www.wmca.org.uk/what-we-do/industrial-strategy].
Consultation Questions Summary
1. Have we identified the right strengths and competitive advantages in our sectors?
2. Are the challenges and opportunities facing our economy accurately articulated?
3. Are these the right opportunities for the West Midlands to take in order to benefit from these Grand Challenges and make a major contribution to the UK’s response?
4. Does this emerging approach to inclusive growth have the potential to meet the challenge?
5. How could your organisation get involved to help?
6. Are these the right ten strategic commitments?
7. Do they reflect the momentum which is underway and the opportunities ahead?
8. Will these emerging actions help your business or community grow and succeed?
9. What else will help your business and/or community grow and succeed?
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Page 82 of 90 Item 7
ECONOMY & SKILLS OVERVIEW AND SCRUTINY COMMITTEE
24th April 2019
GBSLEP FUTURE OPERATING MODEL
Background
1. The Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) was constituted as a company limited by guarantee in May 2011. However, its Board has never considered it to be an ‘active’ company as it has not had a bank account nor employed any staff. Instead, GBSLEP’s staff are employed on Birmingham City Council (BCC) contracts, BCC is GBSLEP’s Accountable Body (AB), holding all of its funding (both capital and revenue), and its funding is expended in accordance with BCC’s standing orders. 2. This arrangement has worked well over a number of years but as the LEP’s roles, responsibilities and funding allocations have changed, the LEP Board has reviewed the operating model with a view to ensuring that it can meet the following objectives: • Be a strategy-led organisation, with structures and processes that support agile delivery. • Be seen as a separate entity with a clear identity, its own culture and its own risk appetite. • Be able to determine job roles, pay and reward commensurate with the market rate, and to be able to attract and retain employees. • Have the freedom and agility to respond to customer demand and opportunity. 3. A number of challenges have also arisen with the current arrangements, including in relation to recruitment, procurement and the time taken to implement LEP decisions. 4. In addition, Government published the findings of its review of LEPs in July 2018. “Strengthened Local Enterprise Partnerships” set out that all LEPs should have a “legal personality”, be established as discrete and independent corporate entities such as companies limited by guarantee, and that their secretariats should be independent of Local Government. Future Operating Model
5. In order to meet the objectives set out above, address the challenges with the current model and fully meet the requirements of the LEP Review, the LEP Board agreed on 25th March 2019 that GBSLEP Ltd should become a fully independent active company. In order to achieve this, it has requested that BCC Cabinet considers formally consulting on the transfer of staff under the TUPE regulations. Under the new model, GBSLEP Ltd will hold its own revenue funding, whilst BCC will continue to be the AB for capital funding.
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Page 83 of 90 The intention is for the company to be fully active by 1st July 2019. The following sections provide more detail on how the model will be implemented. People
6. The GBSLEP Executive currently consists of 18 members of staff, the majority of whom are employed on fixed-term contracts owing to the relative uncertainty of funding available for LEPs. In addition, the Executive is currently carrying six vacancies. 7. The GBSLEP is aware that employees that have been on a fixed-term contract for four years will accrue permanent employment rights, whilst those who have been on a fixed- term contract for two years, will have the right to bring claims for unfair dismissal and redundancy rights. 8. The GBSLEP Board agreed to ask BCC Cabinet to agree to undertake formal consultation on the TUPE transfer of staff, with an effective date of transfer of 1st July 2019. 9. As per the regulations, successful conclusion of the consultation will mean that GBSLEP accepts BCC terms and conditions (T&Cs) for current staff, including pay, pensions and leave entitlement. Policies have been amended to ensure that they are commensurate with GBSLEP’s structure. 10. With regards to staff pensions, the LEP Board agreed that GBSLEP should apply for admitted body status to West Midlands Pension Fund. BCC will assume responsibilities for any surplus or liabilities up until the effective date of transfer. Thereafter, pensions will become GBSLEP’s responsibility. Discussions are ongoing around a guarantor for the Fund. Finance 11. BCC currently holds all of GBSLEP’s capital and revenue funding. The LEP Board has agreed that as part of the future operating model, GBSLEP should hold its own revenue funding, to be drawn down from BCC on a quarterly basis against an agreed budget and expended in line with its own Financial Controls Policy. The Board would like BCC to remain GBSLEP’s Accountable Body for capital funds. 12. In order to open a bank account and to give BCC confidence to transfer the funds to GBSLEP Ltd, the GBSLEP Board has agreed a Financial Controls Policy and a Treasury Management Policy. 13. The Treasury Management Policy is based on CIPFA guidance, and therefore represents good practice. BCC will undertake treasury management of all of GBSLEP’s capital, and the portion of revenue that has yet to be drawn down into the company’s bank account. The costs for doing so are 5% of the interest received on the funds held. 14. The Financial Controls Policy is based on BCC’s scheme of financial delegation to officers and is in line with good practice. 15. A new Accountable Body Agreement, setting out the relationship between GBSLEP and BCC as its AB is in the process of being developed.
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Page 84 of 90 Back office and operations 16. The GBSLEP considered the following options for the provision of back office and operations: • Remaining with BCC • Partnering with a similar organisation, such as West Midlands Growth Company • Procuring its own 17. On balance, it was concluded that the strongest and most viable options were to procure its own systems, with the exception of payroll which will remain with BCC, albeit on a commercial basis (the City Council provides payroll services to a range of external organisations, and this was felt to be the best option given the need to ensure continuity, particularly for staff having been TUPE transferred). 18. The Executive has undertaken procurement exercises to ensure that staff have access to IT (computers, software and mobile phones) and systems (finance and HR), and will look to ensure that these are in place ahead of the effective date of transfer. The Executive has sought to agree in principle short-term contracts, so that the organisation can adapt should the need to do so arise. 19. In addition, the Executive has confirmed with BCC that the data created by the Executive since its inception is owned by GBSLEP, and that GBSLEP will therefore continue to have access to it via a cloud solution.
Conclusions 20. This report sets out the case for the future operating model, which was approved by the GBSLEP Board on 27th March 2019, and some of the detail of how it will be delivered. BCC’s Cabinet will consider various recommendations to support the implementation in May 2019.
Prepared by: Katie Trout Director
Contact: [email protected] / 07825 318250
Date Created: 17h April 2019
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Economy & Skills O&S Committee: Work Programme 2018/19
Chair: Cllr Tahir Ali Committee Members: Cllrs John Clancy, Phil Davis, Fred Grindrod, Simon Morrall, Julien Pritchard, Lou Robson and Ken Wood
Scrutiny Officers: Rose Kiely (303 1730) & Baseema Begum (303 1668) Officer Support: Committee Manager: Errol Wilson (675 0955)
1 Meeting Schedule
Date What Officer Contact / Attendees
4th July 2018 Informal meeting to discuss the Work Scrutiny Office Programme with input from Officers (where 1030 hours possible) on key Economy & Skills issues Committee Room 6
10th October 2018 Economic impact of the Commonwealth Ian MacLeod, Assistant Director, Games Village Regeneration/ Ashley Innis, Major 1030 hours Programmes & Projects Link Manager Committee Room 6 Leader: Priorities & upcoming work areas Rebecca Grant, Leader’s office relating to the Economy and Skills portfolio
7th November 2018 Cabinet Member for Education, Skills & Chris Brockie, Cabinet Support Officer Culture: Portfolio priorities & upcoming 1030 hours work areas Committee Room 6 Quarterly update on the impact of Brexit on Lloyd Broad, Head of European Affairs the City and Interim Head of Employment and Skills
5th December 2018 Tour of National College for High Speed Rail Clair Mowbray, Chief Executive, National College for High Speed Rail **1000 hours**
National College for BCC Land & Property Strategy Kathryn James, Interim Assistant High Speed Rail Director, Property
2 Lister Street, B7 4AG East Birmingham & North Solihull Mark Gamble, Delivery Manager Regeneration Strategy - Update
Economy & Skills O&S Committee Page 0187 of 903rd April 2019
Date What Officer Contact / Attendees
30th January 2019 BCC Land & Property Strategy Kathryn James, Interim Assistant Director, Property 1030 hours
Committee Room 2 Inclusive Growth: Local Centres, Economic Richard Cowell, Assistant Director, Zones and the Urban Centres Framework Development consultation
West Midlands Local Government Pension Committee Discussion Fund
27th February 2019 Quarterly update on the impact of Brexit on Lloyd Broad, Head of European Affairs the City and Interim Head of Employment and 1030 hours Skills Committee Room 6 Update on EU funding and Skills Projects Lloyd Broad, Head of European Affairs and Interim Head of Employment and Skills
WMCA update on Jobs and Skills agenda Lloyd Broad, Head of European Affairs including regional skills plan and skills deal and Interim Head of Employment and Skills
West Midlands Local Government Pension Committee Discussion Fund
27th March 2019 West Midlands Local Government Pension West Midlands Local Government Fund Pension Fund representative (TBC) 1030 hours
Committee Room 2 Phil Jones, Director, Grant Thornton
24th April 2019 Cabinet Member for Education, Skills & Laura Hendry, Cabinet Support Officer Culture – Annual Report (interim) 1030 hours (Cabinet Member to attend) Committee Room 2 Local Industrial Strategy Becky Grant, Cabinet Support Officer (Leader to attend)
GBSLEP Future Operating Model Katie Trout, Director, GBSLEP; Alison Jarrett, Assistant Director Development and Commercial Finance
2 Further work areas of interest/Work to be programmed 2.1 The following items could be scheduled into the work programme if members wish to investigate further: WMCA Productivity & Skills Commission
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The Committee should in the future monitor the impact of the introduction of the Clean Air Zone on businesses. Further details on grants to SMEs from the Business Enterprise Team. 6 monthly updates to the Committee on the Youth Promise Plus programme (starting in September 2019).
3 Other Meetings
Call in Meetings ‘Phoenix Business Park, Brickfield Road, Tyseley - Proposed Compulsory Purchase Order’, Wednesday 6th June, 1030 hours, Committee Rooms 3&4, Council House ‘NEC Masterplan’, Wednesday 5th December, 1000 hours, National College for High Speed Rail, 2 Lister Street, Birmingham B7 4AG ‘Council House Complex Works – Phase 3A’ – Monday 7th January, 1300 hours, Committee Room 6, Council House
Careers Advice in Schools Working Group Meetings 4th March, 4.30pm, Room 335, Scrutiny Office 26th March, 4.30pm, Room 335, Scrutiny Office
West Midlands Pension Fund Member Discussion Group 26th March, 10.00am, Room 335, Scrutiny Office
Petitions
None scheduled
Councillor Call for Action requests
None scheduled
It is suggested that the Committee approve Wednesday at 1430 hours as a suitable day and time each week for any additional meetings required to consider 'requests for call in' which may be lodged in respect of Executive decisions.
Contact Officers Rose Kiely, Group Overview and Scrutiny Manager, [email protected] – 0121 303 1730 Baseema Begum, Research & Policy Officer, [email protected] – 0121 303 1668
4 Forward Plan for Cabinet Decisions The following decisions, extracted from the Cabinet Office Forward Plan of Decisions, are likely to be relevant to the Economy & Skills O&S Committee’s remit. Please note this is correct at the time of publication. Highlighted rows show a change to the previously listed cabinet proposed date.
Economy & Skills O&S Committee Page 0389 of 903rd April 2019
Reference Title Portfolio Proposed Date of Decision 005623/2019 Adoption of Supplementary Planning Documents for Langley Leader 16 Apr 2019 Sustainable Urban Extension and Peddimore Employment Site 006335/2019 National Manufacturing Competitive Levels (NMCL) Grant Leader 16 Apr 2019 Funding Offer £26m and AMSCI Funds Update 005336/2018 GBSLEP Future Operating Model Leader 14 May 2019
006318/2019 Proposed ICC and NIA Lease Extensions Leader 14 May 2019
006326/2019 Dudley Road Additional Land Requirements Leader 14 May 2019
006329/2019 Public Consultation on updating the Statement of Leader 14 May 2019 Community Involvement (SCI) for planning policy documents and planning applications 006350/2019 Property Investment Strategy Leader 14 May 2019
005280/2018 Midlands Art Centre - new lease Leader 25 Jun 2019
005423/2018 BCC International Strategy Leader 25 Jun 2019
005626/2018 Securing the legacy of the Commonwealth Games Village Leader 25 Jun 2019 through InReach 005776/2019 NEC - Disposal of land for Film Studio and Leader 25 Jun 2019 supporting development 006004/2019 Master Plan for the Alexander Stadium Leader 25 Jun 2019
006370/2019 Icknield Port Loop Deed of Variation Leader 25 Jun 2019
006459/2019 Appointment of Development Partner for Leader 25 Jun 2019 Birmingham Smithfield 006461/2019 Public Consultation on the Parking Supplementary Leader 25 Jun 2019 Planning Document 006426/2019 Property Prospectus - Tenders Leader 25 Jun 2019
004101/2017 Enterprise Zone Investment Plan 2019 Leader 23 Jul 2019
006208/2019 HS2 Curzon Station Public Realm Project Delivery Costs Leader 23 Jul 2019
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