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Ec051009cba Developing the Future Economy of Devon

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Ec051009cba Developing the Future Economy of Devon EEC/09/230/HQ Cabinet 3 November 2009 Developing the Future Economy of Devon - An Inclusive Architecture Report of the Deputy Chief Executive and Executive Director of Environment, Economy and Culture Please note that the following recommendation is subject to consideration and determination by the Cabinet (and confirmation under the provisions of the Council's Constitution) before taking effect. Recommendation: It is recommended that the approach outlined in this report be adopted. 1. Summary This report outlines the County Council's new statutory duty of economic assessment which will come into force on the 1st April 2010, the preparation carried out to date and proposes a focussed but inclusive approach for economic development activity in the future. 2. Background and Introduction The Devon Economy comprises many businesses, organisations, agencies and individuals. No single agency or council can determine what will happen to the Devon economy. It is both large and diverse and this is what gives the local economy its resilience. With the new economic assessment duty and a new Devon County Council Strategic Plan the consequences of the duty, the current economic picture and the likelihood of available resources have been examined in conjunction with the Cabinet Member for Economic Regeneration and Strategic Planning to design an inclusive approach for the County of Devon. This has been carried out with a view to clear accountabilities, the avoidance of duplication and a business like relationship with partners and stakeholders. It will result in clarity about the role of the County Council as the lead public authority in supporting all participants in the Devon economy to prosper. The resultant 'inclusive architecture' is illustrated in the diagram at Appendix II. The following paragraphs describe the proposed architecture in more detail. In summary it comprises 3 pillars: 1. The establishment of a Devon Spatial and Economic Board bringing together County Councillors and key people from various sectors of the Devon economy and local authorities to assist in the determination of policy in and delivery of the new Devon Economic Strategy 2010-2020. 2. The creation of a Devon Economic Sounding Panel representing wider interests and stakeholders to both help inform the new Economic Strategy and assist in the co- ordination of delivery. 3. The definition of seven key roles for the County Council itself to deliver. 3. The Devon Economic Assessment Part 4 of the Local Democracy, Economic Development and Construction Bill places a new duty on county councils and unitary district councils to prepare an assessment of economic conditions of their area. This takes forward one of the key recommendations of the Review of Sub-National Economic Development and Regeneration, published in July 2007. The Bill states that a principal local authority [county council or unitary council] may revise an assessment, or any part of it, at any time. It states that in undertaking an economic assessment a principal local authority should consult those organisations they consider appropriate and that in two tier areas, the county council is required to consult and seek the participation of non-unitary district councils within its area. District councils have a corresponding duty to co-operate with the county council. The county council in turn has to have regard to material produced by the district councils in its area in the discharge of those councils' local planning functions. Bilateral meetings are already taking place to ensure that each District Council is able to participate in the assessment in a way that suits their situation and to ensure that the eventual output is helpful and appropriately focussed for each part of the County. Joint workshops are due to take place regionally to agree a basic data set across the region both to ensure comparability and ease of analysis. Districts will be included in these workshops. The Government has designated the core objectives of a local economic assessment are to:- • Provide a sound understanding of the economic conditions in the area and how they affect residents and businesses • Identify the comparative strengths and weaknesses of the local economy and the nature and form of local economic challenges and opportunities • Identify the local economic geography, including the economic linkages between the area being assessed and the wider economy • Identify the local constraints to economic growth and employment and the risks to delivering sustainable economic growth. This will involve the County Council in being clear about trends and the strength of individual elements of the economy and will require interaction with a long list of stakeholders. The assessment will look at the structure of the local economy, its competitiveness, enterprise and innovation, research and development, business needs, the labour market and skills, all in the context of sustainable economic growth. The latter in particular will require an understanding of how the economy can adapt or meet commitments relating to carbon, biodiversity, reducing waste, climate change and so on. There will also need to be a clear understanding of the sufficiency of housing of the right size and affordability and sufficient infrastructure to support sustainable economic growth and economic inclusion. The assessment will need to take account of the particular history, demography and changes facing communities. It will need to look forward rather than back and be clear about the jobs of and for tomorrow. To deliver an assessment covering the above will need appropriate dialogue, participation and involvement of many sectors listed in Appendix I. 4. The Devon Economic Strategy 2010 - 2020 Whilst the assessment will inform aspects of the regional strategy it will also lead to the development of the Devon Economic Strategy 2010-2020 based on evidence, data and dialogue with local and regional partners. It is anticipated that the stakeholders listed in Appendix I will not only participate in the development of the economic assessment but will also play a considerable role in the development of the economic strategy for Devon which will need to be clear about the actions to be undertaken by various public and private sector players to deliver the vision and priorities contained within the strategy. 5. Working with the SWRDA and other Regional Bodies Existing close links with the RDA will continue to ensure that as a key partner in economic development our plans and theirs are closely aligned and linked where appropriate to the objectives of the HCA. The County Council will continue to act as agent for the RDA on matters such as the project management of the Exeter Science Park. 6. Economic Role of Devon County Council In the context of the new duty, changed economic circumstances and the expected downturn in public sector funding a review has taken place of the future economic role of the County Council. There are many 'players' in the economic development and regeneration world in the County. Straightened economic circumstances reinforce the need not only for partners to work together but also to avoid duplication. It is not unusual for partners to assume that the County Council will put in 'their share' to various economic development schemes and initiatives. With increasingly pressurised budgets it is important that such expectations are realistic and that accountabilities and deliverable outcomes are clear. It is recommended therefore that the key roles of the County Council in this field in future should be to lead in the delivery of the Strategy and to: 1. Lobby on behalf of the Devon economy and ensure that it at least punches it weight on behalf of the County. 2. Publish regularly Devon economic statistics and the interpretation thereof and to become the recognised first port of call for such information 3. Continuously monitor and assess the Devon economy - essentially keeping the economic assessment up to date and being aware of developments and their implication. 4. Be the spokesperson for the Devon economy 5. Deliver directly a limited range of projects 6. Commission projects/programmes and research from universities and special purpose vehicles [SPVs] such as the Devon Rural Network, North Devon +, the Devon Economic Partnership, Visit Devon and so on. 7. Provide a key point of contact for inward investors and to promote economic growth and investment in the County. 7. Governance To deliver the above will require efficient governance structures. It is proposed that two formal bodies be created, namely the DCC Economic and Spatial Board and an Economic Sounding Board. 8. DCC Economic and Spatial Board This Board is envisaged as having a tight membership with three members of Cabinet together with members from local government, the universities and business. The key purpose would be to have input from the Board members as decisions are made or recommendations are made to Cabinet rather than have a cumbersome round of consultations with their consequential delays. Functions : • Economic assessment • Devon Economic Strategy • Spatial planning • Infrastructure (including transportation, broadband etc). • Responding to the RSS • Regional Funding allocations • Skills • Strategic Housing Role: • To advise the Cabinet Member and County Council on the oversight of the Economic and Spatial responsibilities of the County Council. • Matters relating to the RSS, LDFs, the RFA etc. • Major schemes. • DCC links to Growth areas. Suggested Membership The Board needs to be small enough to operate efficiently with input from key sectors whilst avoiding members of the Board participating as mandated delegates. • 3 x Cabinet Members • 1 x Exeter City Council • 1 x Devon District Councils • 2 x universities [Exeter and Plymouth] • 3 x Business • 1x National Parks • 1x SWRDA Total 15 Board Members It is envisaged that the Board would be chaired the Cabinet Member for Economic Regeneration and Strategic Planning. The membership of the Board would be from a senior level in the organisations in question. The City and District members might be either senior officers or relevant portfolio holders.
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