Date 21 Oct 2016 Version 0.6 Approved By

Date 21 Oct 2016 Version 0.6 Approved by ECONOMY AND REGENERATION PORTFOLIO OVERVIEW Portfolio Holder’s Introduction I am pleased to present my mid-year portfolio report, which demonstrates the various ways we are delivering on our manifesto pledges to transform the local economy and unlock Stockport’s amazing potential. Proposals for a Business Improvement District will help support and promote Stockport Town Centre, whilst we continue to engage and support local businesses, for example through the Get Digital Faster programme. A range of initiatives at a local and regional level are focused on increasing employment opportunities for young people, particularly working with employers to promote apprenticeships. Future opportunities are also being created through the GM Working Well pilot, along with local events including an Apprenticeship Information Evening and Stockport Jobs Fair. Our investment in inclusive and sustainable growth is evidenced in the developments at Redrock, Stockport Exchange and Aurora which have all taken shape during the second quarter. Alongside the Town Centre Access plan, these will help improve perceptions of our borough. Outside of the centre, good progress is continuing with the SEMMMS programme and regeneration in Brinnington, with work beginning on the Aurora Business Park. I was particularly proud to see the magnificent work to improve Bramall Hall at its re-opening weekend in July. Performance during the second quarter of the year has been maintained across most areas of the portfolio. More businesses are taking managed workspace to get started, whilst employment rates continue to increase. A range of new measures are also proposed to better reflect portfolio priorities, and I welcome feedback on these from Scrutiny Committee. My portfolio is forecasting a small budget surplus, with savings already achieved for the year. The capital programme now stands at over £185m, including a programme of improvements to address the damage caused by flooding in June and September. Our long-term £100m investment in improving local road conditions is also starting to bear fruit, with latest surveys showing improvements in line with the level of investment. The scale of our ambition is reflected in our latest budget proposals, which a long-term vision for Inclusive Growth to support and regenerate the local economy, linked to Greater Manchester’s wider growth plans. Cllr Kate Butler, Portfolio Holder (Economy and Regeneration)

Revenue Budget (Forecast) Capital Programme £000 Cash Limit 2,792 Forecast Outturn before reserves awaiting approval 2,739 £000 (Surplus)/Deficit (53) 2016/17 Capital Budget 187,669 2017/18 Capital Budget 98,567 2018/19 Capital Budget 38,828 “Approved Use of Reserves” Total 1,922 Utilisation of “Approved Use of Reserves” in the 1,004 above forecast “Approved Use of Reserves” Balance 918

2 1. ECONOMY AND REGENERATION PERFORMANCE MONITORING AND KEY PROJECTS

1.1. Priorities and Activity Update

1.1.1. Transforming the Local Economy Good progress continues across the various schemes in Stockport town centre, with summer 2016 seeing the opening of a number of new restaurants, cafés, shops and an art gallery.

Work has also begun on Stockport’s newest industrial park, transforming an 18 acre site alongside J1 of the M60 which will become Aurora Stockport. This modern 145,000 sq ft industrial park will breathe new life into an area that has been derelict over recent years, creating new opportunities for local businesses and an estimated 240 jobs locally.

Proposals for a Stockport Town Centre Business Improvement District have moved to a ballot of eligible businesses, with the results due at the end of October. If successful, this would bring new business leadership and financial resources to support and promote the town centre from April 2017.

1.1.2. Supporting Business in Stockport The Business Growth Hub continues to introduce local businesses to the range of funded support available. During Q2 events were held which led to engagement with approximately 70 businesses, and one-to-one meetings were held with 52 businesses. The summer edition of the Stockport Business Bulletin was also emailed to 4,800 business contacts.

Meanwhile, local employers have expressed an interest in engaging more strategically with the Voluntary, Charity and Social Enterprise (VCSE) Sector, as part of their Corporate Social Responsibility plans. Work is ongoing to establish a matching service which will enable businesses to liaise more effectively with the VCSE sector, matching skills and interests with need.

The Get Digital Faster (GDF) programme involving the rollout of fibre enabled cabinets, has now seen 71 new cabinets installed in Stockport, reaching over 4,500 premises. By the end of August, take up of digital services via the new GDF cabinets had reached 22.3%. The current programme ends in March 2017 but BT will continue to utilise ‘Gain share’ investment, extending the network to the remaining 0.7% of premises that are not able to access digital telecoms infrastructure.

Work is ongoing to create a Stockport Investment Funding scheme, in partnership with Business Finance Solutions (BFS). This will help promote a range of finance options for businesses in Stockport, with loans issued by BFS but jointly branded and marketed by Stockport Council.

1.1.3. Tackling Youth Unemployment The Council is committed to the development of a youth jobs guarantee, laying the foundations to eradicate youth unemployment. Proposals have been submitted for

3 £133,500 of GM funding to support unemployed 16-24 year olds in Stockport. These include both a wage incentive scheme for employers linked to apprenticeships, and a continuation of the Intermediate Labour Market project, which will provide paid employment opportunities for 3 months with both public and private sector employers, in particular targeting employers who could see opportunities potentially becoming more sustained as apprenticeships. Apprenticeship targets continue to be developed and tracked as part of the Council's Employment & Skills Agreements with construction contractors on key developments.

Breadth of opportunity continues to be developed via the Apprenticeship Store and Services for Young People. An Apprenticeship Information Evening was held in September, aimed at parents/carers and young people wanting to find out more about the apprenticeship route. Staff were on hand to give information on Apprenticeships and the potential progression routes. An open evening was also held at the Apprenticeships Store in August.

A range of activities continue to support all local job seekers during the second quarter. These included the work of the Employment & Skills Advisors, Work Clubs and the Working Well pilot, alongside the Stockport Jobs Fair. Employment & Skills Advisors are working with 77 individuals referred from the MASSH (Troubled Families / Vulnerable Adults) during Q2, with 7 moving into employment during the quarter, a further 4 into volunteering, and 12 into training / education. The four council-supported Work Clubs were attended by 72 individuals during Q2, with at least 4 moving into employment. Meanwhile, positive discussions have been held with employers moving into Stockport Exchange and Red Rock to provide support with recruitment of local jobseekers.

The Working Well pilot has had 30 job starts to date of which 10 have now been sustained for 50 weeks. Referrals onto the Working Well expansion across GM have dropped below the expected numbers, and this is being addressed with JCP and the providers. Further progress is being made in identifying opportunities for Jobcentre Plus to have some outreach provision in priority neighbourhoods as part of the review of Public Estates.

Stockport Jobs Fair was held on 20 September, bringing together local companies looking to fill vacancies, and organisations offering employment advice and guidance with local people looking for a job or career support. It was attended by 450 people and 40 employers, and included sessions by the Airport Academy and National Careers Service.

1.1.4. Regenerating Our Town Centre As the update on Redrock, Stockport Exchange and the Markets and Underbanks area shows there is now considerable physical evidence of the ongoing investment into the town. Work is progressing to tell this story so that perception of the town improves in line with the investments being made.

1.1.5. Bringing Metrolink to Stockport and Improving Rail Accessibility The initial feasibility work on Stockport Rail Station Improvement Proposals is nearing completion and a report on this will be prepared for members. 1.1.6. Reducing the Cost of Bus Travel

4 The Bus Services Bill is continuing to be considered by parliament with the Report Stage discussion taking place in the House of Lords in October. A number of amendments have been proposed to the Bill including a requirement for operators to make accessible information available on the bus, on proposed consultees to franchising proposals and to enable authorities to request information from operators in connection with their functions in relation to a franchising or partnership plan. TfGM has also informed the Council of some services changes which should improve access to Manchester Airport from Stockport.

1.2. Reform Programme Updates

1.2.1. Museums and Cultural Attractions The highlight of the quarter has been the reopening of Bramall Hall which has achieved strong visitor figures and income generation in its first two months of operation. Performance at Town Centre sites has also held up strongly despite the service focusing activities and events at Bramall.

1.2.2. Stockport Exchange Phase 2 of Stockport Exchange is nearly complete. The offices will be handed over in October with the ground floor retail unit prelet to J Sainsbury. Much effort is going into the marketing of this grade A space. The hotel is due to open in December. Both the hotel and offices will overlook the new gateway to the town from the station which represents a vast improvement. 1.2.3. Redrock The steelwork on Redrock is now far advanced and the impressive scale of the scheme is now apparent. The cinema is pre-let to The Light and we recently completed the pre letting to GBK Ltd who join Zizzi and Pizza Express in the initial line up. Discussions are ongoing in regard to three other units. The new car park will be managed by NCP. Clearly these works when combined with the TCAP works and works to the public realm in the town centre are causing considerable disruption and the Council is doing all it can to mitigate the problem including regular liaison with traders, good directional signage and free car parking during periods of specific change. Temporary reductions in rateable values have also been applied in some cases.

1.2.4. Stockport Market and Underbanks area A new vegan restaurant the allotments opened in August, followed by the Petersgate Tap and restaurant, with another restaurant due to open in October, adding to the diverse food and drink offer in the area. The restaurants have both been supported by the Council’s business premises grant scheme.

A ‘back to basics’ report has been commissioned into how Stockport markets and market place can perform for the benefit of all. In the meantime the Council is investing in the existing offer with a range of initiatives to promote the Market, including events, publicity and improved management have been put into place from September. During the quarter, events such as the Fringe Festival and Foodie Friday have seen significant footfall attracted to the Market Place.

In addition considerable resource is being employed to attract occupiers to premises in the area. Work is progressing on plans to regenerate The White Lion purchased late last year and plans are being prepared to redevelop Russell Morley House. 5 1.3. 2017/18 Proposals Following a review of the Medium Term Financial Plan (MTFP) over the summer, a number of proposals have been developed in order to meet spending reductions for 2017/18 and initiatives which will shape the Council’s reform and growth programme and address wider challenges over the medium-term.

Consultation on the savings proposals is underway, and will be considered by the Environment and Economy Portfolio on 4 November. This includes working papers setting out medium term proposals for 2017-19 and beyond, including Inclusive Growth. This involves an on-going focus on support and regeneration of the local economy, in particular a significant programme of investment in the Town Centre, planning for the future through the GM Spatial Framework and future local plan. There will be a strengthened focus on securing the economic and social benefits of growth for local people, addressing this principle in favour of creating good jobs for people to increase individual and community independence.

Future Portfolio Reports will include updates on these proposals, alongside implementation of the 2016/17 programme.

1.4. Performance Update

PI Status

2016/17 actual / forecast is significantly below target

2016/17 actual / forecast is below target but within acceptable tolerance range

2016/17 actual / forecast is on or above target or within target range

1.3 Measuring Performance and Reporting Progress

Appendix 1 outlines proposed changes to Portfolio Measures following an internal review.

Measures in bold are included within the Corporate Report.

* NB - some measures have no targets set as these may be contextual, however key trends are monitored for these and RAG ratings applied to highlight any issues.

Good 2014/15 2015/16 2016/17 PI Code PI Name perform Q2 Status Actual Actual Forecast Target -ance Actual % Occupied managed workspace and incubator E&R 01 floorspace actively High 68.0% 72.0% 79.0% 80.0% 75.0% managed for start-up/micro businesses Occupancy figures remain high at all 3 facilities. Merchants House averaging 84% during the quarter, Houldsworth Mill averaging 80% and SBIC averaging 76%. Pioneer10, the SBIC programme of business 6 Good 2014/15 2015/16 2016/17 PI Code PI Name perform Q2 Status Actual Actual Forecast Target -ance Actual support leading to a business start-up competition, commenced during the quarter with good attendance at workshops and 32 young and new businesses expressing an interest in submitting their business plan forward for the competition phase. Discussions are taking place with the landlord and managing agent at Houldsworth Mill with regard to the continued future of the centre from April 2017 when the current lease and management contract expire. Footfall in Market Area: E&R 02 Change from Previous Year in High 240,025 236,565 58,702 242,500 242,500 Footfall Footfall in Market Areas is down 8% on the same quarter last year. Whilst footfall is declining on the regular market, footfall continues to increase on Foodie Friday. A number of interventions have been put in place from September 2016 to improve footfall levels on regular market days. It is anticipated that these interventions will result in an increase of 10% on 2015/16 figures.

Overall Employment rate E&R 03 High 77.1% 77.9% N/A 78.1% N/A* (working-age) The latest available data is for up to Q4 2015/16 and is 77.9%, showing a slight rise from the quarter preceding it. During Q2 a total of 13 new clients attended Council Work Clubs. 4 Work Club customers confirmed they secured a job during Q2, although it is likely more have but have not been able to be contacted. 450 people attended Stockport Jobs Fair which was held in Q2. A cumulative total of 30 people on the Working Well pilot have now moved into employment, of which 10 have now sustained this for 50+ weeks.

The Neighbourhood Inclusion team are developing interventions that more directly support sustainable employment. Existing local and national best practice has been used to identify more holistic employment support pathways and investment in social enterprise development as potential strategic objectives. In relation to the latter a local delivery partner has already been identified and a project is being scoped. % working age people claiming out of work benefits (including 9.3% 9.2% 9.0% E&R 04 Low N/A N/A* Universal Credit claimants (16,430) (16,457) (16,000) not in work) in the borough (number of claimants) The latest available data is for Q4 2015/16 and is 9.2%, which reflects a small drop from the quarter preceding it. NB - Change to definition - this now includes claimants in receipt of Universal Credit Proportion of occupied retail, commercial and business E&R 10 High 92.0% 91.7% N/A 92.9% 92.0% premises within the borough's district centres These are based on annual surveys undertaken by the Council's Planning Policy team. Occupancy rates in Stockport's 8 District Centres have improved slightly from August 2015 from 92% to 92.9%. The best performing centres are Cheadle and Bramhall with 95% and 94.6% occupancy rates respectively. The poorest performing centre continues to be Hazel Grove with an 89.7% occupancy rate (20 business units currently vacant). Proportion of occupied retail, commercial and E&R 11 High 80.1% 80.1% 81.0% 80.0% 80.0% business premises within the Town Centre High street shops continue to face major challenges from on line and other forms of retailing. This challenging environment impacts not only on major 'national' retailers but also the independent sector. The

7 Good 2014/15 2015/16 2016/17 PI Code PI Name perform Q2 Status Actual Actual Forecast Target -ance Actual town centre continues to face competition from the regional centre, (Manchester city centre), generally robust and attractive secondary centres (especially food and beverage) and out of town retail parks (notably in the South Manchester crescent' Cheadle Royal & Handforth Dean). The town centre is also currently undergoing a major regeneration programme which has resulted in the loss of car parking. All of these factors are having an impact on the level of vacancies in the centre. By 2017 several of the major leisure and office led schemes will be completed. Alongside a successful BID ballot in October 2016, the forecast is that this will lead to a lowering of the vacancy rate. No. independent businesses E&R 12 High 334 301 315 305 304 in the town centre The number of independents has risen between the last survey (April 2016) to the latest survey (June 2016). However within this figure lie many borderline businesses with the prospect of closures during the remainder of the year. As such, although new independents will open in the centre, with targeted support from the Council, overall the forecast for the full year is expected to be around 305. Sqft of office, retail and E&R 13 industrial space let or sold to High 680,000 513,699 265,431 700,000 700,000 new occupiers During Q2 over 265,000 sqft of office, industrial and retail space was taken across the borough, giving a total to date of 416,000 sqft. Investment included Reddish-based fashion company Chilli Apparel which has taken the former Renold Chain premises on Bredbury Industrial Estate. The production and warehouse facility totals 145,000 sq ft. Boutinot Wines has relocated from Gatley to significantly larger premises at Cheadle Point. The wine merchants, with 85 employees in Stockport, purchased the property which totals 18,500 sq ft. Payzone consumer payments network acquired 9,000 s qft in Highbank House on Exchange Street in the town centre creating 80 jobs. Other companies relocating to, or expanding, in the borough include Vehicle Consulting who have relocated their Head Office to Acorn Business Park and Dawn Creative who have moved to larger refurbished premises in Cheadle Hulme.

8 2. ECONOMY AND REGENERATION FINANCIAL MONITORING

2.1 Revenue – Cash limit

Previously Increase Reported (Reduction) Revised £000 £000 £000 Cash Limit 2,787 5 2,792

2.1.1 The change in the Cash Limit budget is due to the allocation of Prudential Borrowing Recharges budgets to services (£0.038m) offset by the centralisation of printing costs to Corporate & Support Services as reported at Quarter 1 (£0.033m).

2.1.2 It is envisaged that Economy & Regeneration will achieve a surplus of £0.053m (1.9% of portfolio net budget). Within this position there is a deficit for Stockport Markets (£0.033m) however, this is offset by surpluses expected in Building Control (£0.050m) and Directorate Budgets (£0.040m).

2.1.3 Earmarked Reserves A review of reserves has taken place resulting in a new reserves policy. The new policy is in the process of being implemented and was presented at Executive on 4th October. The majority of Earmarked reserves are now kept at a corporate level and services will bid for the use of them. This strategic approach is designed to provide financial resilience for the council. The exceptions to this are the Directorate Reserves and ring-fenced reserves. Listed below are agreed utilisations against reserves directly linked to this Directorate and also the Corporate Reserves:

Reserve Reserve / Planned use of Balance of Category Approved Reserves / Reserve / Reserve To be used for Use Balance “Approved Use” “Approved Narration at Q2 2016/17 Use” £000 £000 £000 Directorate Reserves Directorate Directorate Markets Reserve Flexibility 100 100 0 Management Reserve - Place Corporate Reserves Reserve Transformation - Business Linked to Invest to Save Improvement 60 60 Budget Reserve District Reserve Transformation - Markets Linked to Invest to Save 75 75 Consultation Budget Reserve Reserve Aurora Transformation - Linked to additional Invest to Save 15 15 Budget planning Reserve support Reserve Transformation - Regeneration Linked to Invest to Save 100 100 0 Projects Budget Reserve Reserve Transformation - HLF Bramall 576 332 244

9 Reserve Reserve / Planned use of Balance of Category Approved Reserves / Reserve / Reserve To be used for Use Balance “Approved Use” “Approved Narration at Q2 2016/17 Use” £000 £000 £000 Linked to Invest to Save Hall Budget Reserve Strategic Capital Redrock Priority Programme Scheme Legal 152 152 Reserve Investment Fees & Costs Reserve Strategic Capital Priority Programme Walking & 472 472 0 Reserve Investment Cycling Projects Reserve Corporate Third Party Covent Garden 18 18 Reserves Monies Reserve Commitments Corporate Revenue Grant Reserves Reserve Apprentice (includes ring- 354 354 Funding fenced reserves) TOTAL 1,922 1,004 918

The following Reserves Movements have been approved and as a result are included in the anticipated £0.103m surplus:  Markets Management - £0.100m;  Funding of various Regeneration projects - £0.100m;  Funding of increased Bramall Hall expenditure during the early period following reopening after refurbishment works - £0.332m.  Financing of capital spending on Walking for Health Projects which commenced in 2015/16 and will be competed in 2016/17 - £0.472m.

2.2 Portfolio Savings Programme The Council’s savings programme was agreed by the Council Meeting as part of the 2016/17 Budget on 3 March 2016. The Portfolio has contributed £0.400m to the Council’s savings for 2016/17.

The portfolio savings within the Council’s overall approved programme are detailed in the table below with a risk assessment on progress to date and a progress commentary.

2016/17 2016/17 Project £000 Risk 2016/17 Savings Update Rating Museums & 400 Green 2016/17 Savings Achieved Markets

TOTAL 400

Risk rating  Green – good confidence (90% plus) the saving is/will be delivered or minor variances (<£0.050m) that will be contained within the portfolio. 10  Amber – progressing at a reasonable pace, action plan being pursued may be some slippage across years and/or the final position may also be a little unclear.  Red – Significant issues arising or further detailed consultation required which may be complex/ contentious

2.3. Capital Programme

2.3.1. The Capital Programme for 2016/17 is £187.669m. It includes the following schemes, progress against which is reported in section 2.3.5. A breakdown of the resourcing of the Capital Programme is shown in section 2.3.3.

The table below highlights the key schemes in the programme:

*Expenditure as at 2016/17 2017/18 2018/19 30 Sep 2016 Scheme Programme Programme Programme £000 £000 £000 £000 Highways 280 Street Lighting 560 560 560 570 LTP and SEMMMS Integrated 2,060 1,100 1,100 Transport 284 Highways Structures 831 743 743 12,536 SEMMMS Relief Road 29,260 30,778 11,631 851 Section 278 schemes 1,000 3,000 1,000 351 Drainage 300 300 300 18 Studies and Transport Minor 30 30 30 Schemes 0 Air Quality Grant 101 0 0 0 PROW 0 60 60 0 Flood Damage Infrastructure 303 0 0 Programme 0 Pot Hole Programme 151 0 0 5 District Centres 200 200 200 0 Interchange Bridge 100 3,000 400 6,588 Town Centre Access Package 20,887 18,989 7,199 Major Scheme Development 6,578 Highways Investment Programme 12,102 11,882 15,605 28,061 Highways sub-total 67,885 70,642 38,828

Non-highways 617 Offerton Precinct Development 617 0 0 11,424 Stockport Exchange (Phase 2) 13,961 0 0 12 Covent Garden 12 0 0 Supporting local businesses (PIF 3 7 0 0 2011/12) 0 Brinnington Regeneration (PRG) 0 39 0 11 Portas Pilot Bid match-funding (PIF 4 12 0 0 2012/13) 6,200 Redrock Development Scheme 22,253 13,582 0 Aurora Stockport (formerly Gorsey 892 2,015 8,262 0 Bank) 409 Markets and Underbanks 1,500 4,802 0 78,683 Merseyway Shopping Centre 78,740 0 0 1 Brownfield Site Schemes 155 1,240 0 452 GM Broadband 512 0 0 98,697 Non-highways sub-total 119,784 27,925 0

126,758 TOTAL 187,669 98,567 38,828

* This relates to expenditure on SAP and accruals for goods received or work performed up to the period end.

2.3.2 Capital Financing - Update and Outlook

Resources 2016/17 2017/18 2018/19 £000 £000 £000

Capital Grants 52,029 56,151 21,493 Directly Funded Borrowing 118,958 25,396 450 Unsupported Borrowing 12,578 13,170 15,885 Capital Receipts 210 850 0 External Contributions 311 0 0 Commuted Sums 1,000 3,000 1,000 Revenue Contributions (RCCO) 2,583 0 0

TOTAL 187,669 98,567 38,828

2.3.3 Capital Programme Amendments

Scheme 2016/17 2017/18 2018/19 Funding Reason Source £000 £000 £000 Flood Damage Infrastructure allocation of 27 0 0 Grant Programme 15/16 cfwd Flood Damage Infrastructure reallocation of 216 0 0 USB Programme HIP reallocation to Highways Investment Programme (216) 0 0 USB Flood Highways Investment Programme 3,318 (3,318) 0 USB rephase Additional Covent Garden 2 0 0 RCCO allocation Rephased to Brinnington Regeneration (PRG) (39) 39 0 Grant 2017/18 Additional Offerton Precinct 449 0 0 RCCO allocation Stockport Exchange (Phase 2) 665 0 0 DFB Additional

12 allocation Capital Tatton Cinema (Brownfield) 0 850 0 New Scheme Receipts Pot Hole Programme 151 0 0 Grant New Scheme TCAP 5,887 (3,201) (8,330) Grant Re-profile SEMMMS 1,289 2,179 (7,159) Grant Re-profile Update of Various 0 0 3,993 Grant 2018/19 Interchange Bridge 100 3,000 400 Grant New Scheme Total 11,849 (451) (11,096)

2.3.4 Progress on Individual Schemes

Street Lighting Planned Programme This programme includes the structural replacement of columns that are reaching the end of their life. Columns are identified for replacement following routine structural assessment and testing. All lighting columns on the network have been structurally assessed and we are working through a programme of sign pole testing.

The information is being used to develop whole life modelling of the street lighting assets across the network and feed into a business case to support a street lighting renewal programme. This will lead into a ‘one network’ approach incorporating maintenance of Public Rights of Way and Parks lighting.

LTP and SEMMMS Integrated Transport Programme The funding for this programme comes from the Greater Manchester Local Transport Plan 3 (GMLTP3), developer funded schemes and successful individual scheme bids and aims to improve transport networks and facilities in accordance with the Greater Manchester Local Transport Plan and SEMMMS Strategy.

Funding has also been secured as part of Transport for Greater Manchester bids for Local Sustainable Transport Fund (LSTF) over the three years 2012 – 2015. Further funding for a number of cycling schemes has been obtained from Cycle City Ambition (1 and 2) bids. The schemes will be delivered in 2013 - 2018. A number of local safety schemes are also in preparation as are works to mitigate traffic impact at Stockport Sports Village, Woodley.

Integrated Transport Corridors A scheme is in preparation to improve the traffic operation of the Marple Road / Lisburne Lane junction by installation of a MOVA type controller. This work will be carried out in Q4 prior to re-surfacing works.

Cycling, Walking and Safety Schemes  The Cycle City Ambition Grant (CCAG) scheme on Manchester Road has been completed during Q2 including the section over the M60. The CCAG schemes on Chestergate, in Gatley and on Newbridge Lane have now been completed and brought into use. The £2.2m CCAG 2 scheme in Cheadle Hulme was subject to significant changes to the scheme which is now principally off highway. These changes have now been agreed by TfGM and the scheme will be built in 2017/18. One element of the scheme, lighting in Bramhall Park, was installed in Quarter 4 2015/16 and is in use. 13  The majority of the Walking for Health project funded by Public Health was completed in Quarter 1 with improvements to a number of Rights of Way however there will be some further work in Q3/4. One scheme, in Bramhall, was damaged by recent floods and will need to be repaired;  Works to provide a path between Hoylake Road and Swythamley Road in Cheadle Heath have been completed and further works at Kingsland Rd will be undertaken in Q3.  A Zebra crossing on Hulme Hall Road has been built and further safety related works on this road will be undertaken in Q3 and Q4.  A bid has been submitted to TfGM under the GMCRP programme for safety improvements on Crookilley Way.  Improvements to walking and cycling facilities in the Goyt valley are being developed under the Growth Fund 2 Programme for implementation from Q4 16/17 to Q3 17/18

Highways Structures The funding for the Highway Structures programme comes from the GMLTP3 maintenance allocation and its aim is to inspect, maintain and replace highways structures including bridges, retaining walls and steps as necessary.

In 2016/17 ten capital projects have been programmed for completion. The work is varied and includes: bridge deck waterproofing; bridge deck repairs; bridge parapet repairs and specialist culvert repairs.

124 General Bridge Inspections and 39 Principal Bridge Inspections have been completed and the remainder are in the process of being completed. Additional inspections have been completed after the June and September flood events.

In 2016/17: The Bradshaw Estate Railway Bridge parapet repairs have been completed. The Merseyway Phase1 concrete repair works have been completed. The confined space plans for the culvert access works have all been completed and specialist contractor prices have been obtained. The feasibility studies for all the remaining schemes have been completed and contractor prices are now being obtained.

SEMMMS A6 to Manchester Airport Relief Road The Carillion/Morgan Sindall joint venture is now approximately 18 months into the construction programme for the delivery of the A6 to Manchester Airport Relief Road. Work commenced on site in spring 2015 with the initial focus having been on site clearance and environmental mitigation measures. Work is progressing on highways and minor and major structures at locations along the length of the scheme, and scheme opening is scheduled for late 2017. Recent Councillor briefing session and round of public exhibitions has been completed at various locations along the length of the scheme, providing updates on progress and addressing queries and concerns.

Work has commenced on development of a package of mitigation and complementary measures for the A6MARR. Priority has been given to a significant package of mitigation measures for High Lane which includes proposed improvements to the signal junction at A6 / Windlehurst Road, traffic calming measures and weight restrictions. Mitigation measures for Gilbent Road, Cheadle have been consulted upon. All mitigation measures are subject 14 to approval prior to progressing to implementation. TRO’s for speed limits and weight limits in High Lane are currently being advertised for objection. This package of works was the subject of consultation in November/December 2015. Further phases of work (mainly complementary measures) in Hazel Grove, Bramhall and Heald Green are being developed in terms of consultation and design.

Section 278 Schemes Funding is obtained from developers as part of a planning consent either as a commuted sum under Section 106 of the Planning Act or for defined off site highway works under Section 278 of the Highways Act.

S106 Public Rights of Ways improvements associated with sites at A34 Eden Park Phase 5 have been completed. Schemes for Redrow at Woodford and Bellway on the former Mirlees site are being developed.

Works for a scheme on Lisburne Lane being undertaken by Bellway Homes are yet to be completed.

Highway mitigation works are also being carried out for a number of school expansions.

Works are being designed to mitigate traffic impact from the Stockport Sports Village development at Woodley. Some works have been carried out and a junction improvement at Mill Lane/Hyde Road will be carried out in Q3/4.

Access improvements for the Barnes Hospital re-development are being designed for implementation in Q4.

Works will be carried out in the Quarter 4 to implement signal control at the A34/Eden Park Roundabout.

Commuted sum traffic calming and management schemes associated with developments in Heaton Moor are being developed.

Drainage In 2016/17:  The LLFA statutory role for major planning applications is ongoing and standardised advice is currently being produced to assist this process.  The drainage asset management system is continuing to be developed.  The Communications Strategy is being developed and an agile project has been set up to look at the customer perspective of flooding.  Additional drainage investigation and repair works are continuing to be completed as part of the Highway Improvement Project in advance of planned road reconstruction works.  Highway drainage investigation and repair works are continuing to be completed on behalf of Public Realm on a routine and reactive basis across the Borough.  Flood Modelling works for Cheadle is continuing in support of Grant in Aid applications.  Watercourses/Trash Screens are continuing to be inspected and cleared on a priority basis. 15  The team has responded to the flood events of June and September and this has slowed down progress on some of the programmed schemes.

Studies and Transport Minor Schemes The Stockport Rail Station Masterplan study has been completed and the Masterplan was approved by the Executive. The next stage of the Masterplan development has been commissioned which will provide initial feasibility information on the station proposals.

Flood Damage Infrastructure Programme A Flood Damage Infrastructure Programme has been developed following the recent flooding in June which caused damage to highways, bridges, highway and parks structures and rights of way. The programme has identified the issues caused by the flooding and prioritised the repairs required.

Further schemes have been identified following the flooding in September.

A separate report will be submitted to the Executive.

Pot Hole Programme The programme has been approved and work will commence on site in the next quarter.

Centre Improvements Works will be carried out in 2016/17 to the Heaton Moor Road/Shaw Road area and consultation is taking place with local businesses and stakeholders. A study will be commissioned to determine what improvements to the operation of the highways and public realm may be appropriate in Marple Centre.

Interchange Bridge Stockport is taking the lead on the interchange bridge and highways works working in close partnership with TfGM.

Town Centre Access Plan Phase 1 This scheme is part of the Investing in Stockport Programme and is to address the difficulties of navigating to and around the town centre. It was awarded funding as part of Greater Manchester Growth Plan. The scheme comprises of two phases of delivery 2015- 2017 and 2017-2020. An Outline Business Case has been approved by TfGM for both phases and a Full Business Case for the Phase 1 elements was approved in March 2015 by the Greater Manchester Combined Authority and the Department for Transport. In 2015/16 the TCAP Phase 1 Schemes started on site in April 2015 and the schemes that have started or are due to commence this financial year include:  Great Egerton / Little Egerton St / Port St works for Redrock, including revised access to Heaton Lane Car Park – packages complete or substantially complete;

16  Princes St / Bridgefield St public realm works for Redrock;  A6 Right turn to Leyland St for Redrock – retaining wall complete and highways works due to complete October 2016;  St Mary’s Way / Hempshaw Lane schemes – numerous work packages commenced; issues with Statutory Undertakers on site have resulted in significant delays and inactivity on site. Matters have been resolved / are being resolved and works are progressing accordingly on majority of sites.  Booth Street schemes in progress;  Works to Heaton Lane Roundabout – complete;  King Street West Car Park / safety works – substantially complete;  Edgeley 20mph Speed Limit Area – works complete;  Wood Street Toucan Crossing – works complete;  Lancashire Hill Toucan Crossings – works complete;  Belmont Way works – works complete;  Stockport Exchange – Public Realm works progressing to programme (Eric Wright) with Station Road element complete (George Cox, lead contractor);  Aurora Stockport (formerly Gorsey Bank) development – enabling works (Stats diversions) commenced in preparation for highway/junction works. Also Mersey valley Bridleway paths.

There are some delays to Phase 1 works, primarily as a result of delays from programmed utility works (highlighted above re St Mary’s Way schemes in particular). In order maximise the level of work which completed this financial year and minimise the pressure on the network in 2017/18, it is proposed that a selection of priority Phase 2 works are started in 2016/17 (i.e. before approval of the business case).

It is thought that there is only minimal risk that Phase 2 will not be approved and the works would be claimed on approval of the Business Case. There will be a focus on acquisition so that any assets can minimise risk further.

Phase 2 The Full Business Case (FBC) is continuing to be developed, however the submission has been delayed from October 2016 to early 2017. The Full Business Case cannot be submitted until all necessary approvals, including planning, and cost certainty from procurement process have been achieved. Detailed design has commenced on the majority of Phase 2 schemes and preparation for the Compulsory Purchase Order process for acquisition of lands to deliver Phase 2 schemes has also commenced. A number of schemes require planning approval to be in place before the commencement of the CPO process; therefore this critical path activity is also subject to re-scheduling. Subject to approval of the Full Business Case and gaining the relevant statutory powers and funding approvals, construction works for the major Phase 2 schemes is scheduled to commence from April 2017.

Highways Investment Programme We are now in Year 3 of the £100m Highway Investment Programme (total 9 year delivery programme) and the project is progressing well. Patch repair work will continue in the previously targeted ward areas to address any significant deterioration that occurs during the investment period.

A video survey will identify treated areas of the highway and provide an indication of the

17 level of deterioration on the remaining part of the network. The condition data will be used to compare the delivery outcome against the agreed target. Recent performance figures have shown that the footway and carriageway network is improving in line with the investment.

The funding for this programme comes from the Greater Manchester Local Transport Plan 3, Council resources and Prudential borrowing. The aim is to maintain and improve transport networks and facilities in accordance with the Greater Manchester Local Transport Plan and SEMMM Strategies.

Progress to Date: Footway and Carriageway Planned Maintenance –

Area of treatments completed so far,

Footways approximately 373,000 m2 Carriageways approximately 600,000 m2

There are a number of schemes that have been delayed due to developments and utility work being carried out on the network however these will be delivered as part of the ongoing programme.

Offerton Precinct Development This project is complete. The matter of compensation was finally settled immediately before the proposed hearing upon the advice of Counsel and the professional team. As previously reported the indemnity from Tenbest proved insufficient to cover the total compensation and fees sum, as such additional resource of £0.449m is now required and it is recommended that this is financed from corporate resources.

Stockport Exchange Phase 2 Phase 2 of the Stockport Exchange scheme (incorporating Office building and Hotel) was granted Executive Approval on October 1st 2013 (ED1548).

The total scheme cost is anticipated to be £20.582m, which will be funded by Prudential Borrowing. It has been agreed to upgrade the finishes in the public areas to the latest standard, but this additional cost has been contained within the overall scheme budget.

At Quarter 2 £0.665m has been added to the programme as a consequence of set up costs being recognised in this area.

Phase 2 commenced on site in September 2015. The offices will complete in October 2016 and final possession of the public realm and hotel in late December 2016. The hotel will open on the 18th/19th December 2016 trading as a Holiday Inn by Express.

Considerable interest is being shown in the offices with a number of viewings completed. However no deals are yet arranged. The shop unit has been pre-let to Sainsbury’s and they will begin shop fitting in November 2016. The Food and Beverage unit remains available.

18 Supporting Local Businesses (PIF 2011/12 Scheme) “Participatory Budgeting” grants: In 2012 Businesses and Groups of Businesses were invited to put forward proposals for Economic Development related activity, with the business community deciding how best to allocate the grant funding. Seven projects were allocated grant funding support (5 of which required capital funding), with Grant payments not being released until agreed milestones were reached and evidence of eligible expenditure had been received. All seven projects have now completed, and capital grants released.

The remaining £0.007m will be spent in the early part of 2016/17 on capital works at Stockport Business and Innovation Centre in Broadstone Mill. The first part of this work has been completed, costing £0.003m and the remainder will be allocated by the end of 2016/17.

Brinnington Regeneration Plan (PRG Scheme) Countryside Properties, SMBC’s preferred partner for housing delivery in Brinnington, has obtained planning consent to build 281 new family houses across 4 separate sites across Brinnington. A development agreement and a Section 106 Agreement have now been signed and work is due to commence in November 2016.

The Strategic Property Alliance (SPA), on behalf of SMBC, has obtained planning consent to build a new leisure facility in Brinnington Park. The procurement of a contractor partner to undertake the design and build has taken place through the North West Construction Hub, however, final costings from the contractor have come in significantly over budget. The SPA is currently negotiating with an alternative contractor and is confident that the scheme can be brought forward within existing budget tolerances.

The utilisation of the remaining £0.039m programme in 2016/17 will develop as the main scheme progresses. Due to the timing of the commencement of the main scheme, the £0.039m has been rephased to 2017/18.

Portas Pilot Bid match-funding (PIF 2012/13 Scheme) As a Portas Pilot, Stockport secured £0.100m funding, plus £0.100m Council capital match funding, with £0.088m of the capital allocation having been spent by 2015/16 leaving £0.012m available.

In September 2013 the Portas Pilot Project Delivery Group (PPPDG) (established following the Stockport Town Team vote in April 2013) agreed to allocate funds to a number of projects using the funds available to them (including this capital match-funding.

The PPPG allocated the capital match funding resources to a number of projects totalling £0.090m of which £0.078m was spent by the end of 2015/16.

Whilst all of the capital funds made available to this initiative by the Council have now been committed, there remain a number of outstanding claims. Based on these outstanding claims, together with the group’s current plans, it is forecast that all remaining expenditure will occur in 2016/17.

Redrock Stockport Development Scheme

19 The Redrock leisure led development scheme (incorporating Multi-screen Cinema, Multi- Storey Car Park, and Retail and Food and Beverage units) was granted Executive approval on December 17th 2013 (ED1447).

The anticipated total cost of the Development is £48.508m. However, elements of the overall scheme (including Public Realm and A6 right turn) will be funded by the separate Town Centre Access Package (TCAP) scheme, thereby reducing the scheme sub-total to £39.348m, of which £1.700m relating to the Spiral Ramp will be funded corporately.

The planning applications were approved in January 2015, with initial enabling works commencing in April 2015. These will continue under the TCAP programme.

A negotiated figure was agreed with Wates and they have started on site. Completion is expected in June/July 2017 with openings in late November 2017 following fit out and TCAP works completion.

An agreement for lease was signed with Light Cinemas in August 2014, with Zizzi’s and Pizza Express in January 2016 and with GBK in late September 2016. Terms are being agreed with a coffee operator and there is strong interest in two further units.

The latest programme, with completion falling within 2017/18, has led to £13.582m being rephased to 2017/18.

Aurora Stockport (formerly Gorsey Bank) The full business case was approved in August 2015. A revised planning application was submitted in October 2015 for 154,000 sq. ft. (approx.) of predominantly B2/B* employment space. This was approved in January 2016.

A tender from Seddons was accepted in February 2016 and the contract was executed in May 2016. There was been slight delay in making a substantive start on site and completion is now expected to be 5 weeks late in July 2017.

Early market interest in the development remains positive and terms have been issued on 17,000 sq ft. Whilst the construction budget is under pressure it is hoped that costs can be contained within the overall project budget.

Markets and Underbanks The scheme reflects the regeneration strategy for the wider Market Place and Underbanks area approved by the Executive on 30 September 2014 (ED1636): to create a vibrant retail, leisure and residential destination, focussed on the development of creative industries and specialist independent retail, with new residential development. The scheme includes proposals to invest in a rolling programme of measures in the area, including selected acquisition, redevelopment, refurbishment, letting and resale, coupled with public realm improvements, in order to drive delivery of the regeneration strategy.

The phasing of the expenditure is at this time the best estimate and will be regularly updated to reflect the rolling programme of investment opportunities.

A comprehensive action plan is in place to co-ordinate the programme and support a range of projects and initiatives that are now underway.

20 To achieve the aims of the programme the Council is working in partnership with a wide number of partners, developers, landlords, agents and businesses. The Council has recently acquired several units to facilitate the redevelopment of key sites and is currently preparing evidence for CPO on one site. A number of acquisitions (a mixture of freehold and leasehold interests), have recently been completed. These include 29, 31 and 35 Little Underbank, 6 Lower Hillgate and 16A Market Place.

Negotiations on the redevelopment of the former White Lion Hotel are now at an advanced stage and a proposal will shortly be submitted for approval. Subject to approval, expenditure on the scheme will begin to occur within the current financial year and into 2017/2018 and 2018/2019.

Negotiations are also underway for the redevelopment of Russell Morley House/6 Lower Hillgate. Depending on the success and timing of these negotiations, expenditure will begin to occur within the current financial year and into 2017/2018 and 2018/2019.

A revised Townscape Heritage Stage 1 application has recently been submitted based on the feedback the Council received following an unsuccessful bid in 2015. The outcome of this submission will be known in January 2017.

Merseyway Shopping Centre Significant work is continuing following completion to ensure maximum occupation and retention of tenants. Expenditure has been authorised to prepare a full business case looking at the further development and regeneration of the asset and the intention is to report these proposals to the Executive in 2017/18.

Brownfield Site Schemes A range of brownfield sites are being developed.

GM Broadband The GM Rural Broadband Project (known as Get Digital Faster) has eight participating local authority areas. Manchester and Salford are unable to participate due to State Aid eligibility. Stockport Council is the lead authority and accountable local body for the project. Stockport’s responsibilities include:

• Contract signatory (BT); • Funding agreement signatory (BDUK, ERDF funding and GM districts); • Programme finance including collecting funding from other authorities; • Project assurance over the TfGM Programme Team (Delivery Partner); • ERDF audit management support (with TfGM) – now complete.

BT won the tender to deliver open access fibre broadband to an Intervention Area (IA) within GM that is eligible for funding under State Aid rules (i.e. areas not currently or foreseeably served). The capital expenditure is invested in BT fibre broadband infrastructure which increases coverage and speeds to residential and business premises within the IA. This infrastructure will be owned and maintained by British Telecom and not the Council(s).

As a result Stockport Council will account for the full value of eligible capital expenditure set

21 out in the Funding Agreement as Revenue Expenditure Funded from Capital Under Statute (includes expenditure to finance capital investment by other parties on assets not owned by the Council in line with Section Code of Practice on Local Authority Accounting).

The current deployment plan and supplier contract combines a Phase 1, a re-baseline exercise and a Phase 2. The planned budget for the capital element of this is valued at around £13.56m which includes BT’s contribution. As of June 2016 around £12.5m of CAPEX has been spent and assured.

Deployment of the current Phase 1 & Phase 2 is expected to end by March 2017. This mostly comprises Fibre to the Cabinet (FTTC) structures but there are some Fibre to the Premises (FTTP) solutions where this is logistically required and still economical.

As of mid-September, Stockport currently has 78 new fibre enabled cabinets in the plan. To date 68 surveys are complete and 65 cabinets are live and ready for connection. These serve over 4,250 premises, compared to the end target of 4,990 premises.

Across the GM deployment area 541 structures are now live out of an expected 582. These serve some 46,463 premises out of an end total of 47,800 (97%). Overall deployment is slightly ahead of schedule but premises passed is slightly behind. Premises passed is the contractual metric.

Take up by August 2016 averaged 22.3% in Stockport and 22.5 % across the GM Intervention Area. Take-up rate is currently ahead of BT’s own projection curve, and has now met the minimum aspiration of 20%.

This threshold would normally trigger further infrastructure funding under a contractual Gainshare mechanism. However, to gain economies of scale BT has announced nationally that they will bring forward this mechanism, known as Gainshare Advance (GSA) on the expectation of a take-up level of some 30% in the long term. The project could benefit from a further £1.4m of capital investment. Initial proposals for additional premises to be covered by GSA have now been received. These are to be assessed and brought forward as a Change Request to the original contract.

Meanwhile the Gainshare Investment Fund, which accumulates due to take-up, is now estimated to be over £0.327m (June is the latest figure). This Fund will be formally reviewed at the end of the current contract. It is currently intended to use the monies for additional infrastructure.

22 3. ECONOMY AND REGENERATION RISKS, OPPORTUNITIES AND CHALLENGES

3.1 National and Regional Policy Drivers

Following the appointment of Theresa May as Prime Minister, a number of ministerial appointments were confirmed. These include Greg Clark as Secretary of State for Business, Energy and Industrial Strategy, Chris Grayling as Secretary of State for Transport, Damian Green as Secretary of State for Work and Pensions and Gavin Barwell as Housing and Planning minister. The new Government have made a number of policy announcements and published several consultations over the summer which will impact on economy and regeneration.

The new Chancellor, Phillip Hammond, announced in August that British businesses and universities will have certainty over future funding and should continue to bid for competitive European Union funds while the UK remains a member of the EU. This confirms that structural and investment fund projects signed off before the Autumn Statement on 23 November will be fully funded even when these continue beyond the UK’s departure from the EU. Further consideration is also being given to funding guarantees for projects signed off after the Autumn Statement.

The government is giving more weight to neighbourhood plans and refining the role of local planning authorities through what it calls ‘streamlining’ reforms. New regulations come into force on 1 October. Ministers have launched a consultation on further changes set out in the Neighbourhood Planning Bill published on 7 September.

A major consultation was launched on the future of transport in Greater Manchester, with the publication of the Greater Manchester Transport Strategy 2040. This has been developed by Transport for Greater Manchester on behalf of the Greater Manchester Combined Authority and Greater Manchester Local Enterprise Partnership and sets out long-term proposals to create a cleaner, greener, more prosperous city region through better connections and simpler travel. The consultation closed at the end of September.

The government is planning to implement a levy on employers to fund its new apprenticeship system, and establish a digital account through which employers can access and manage funds for delivering apprenticeships. DfE guidance published in August outlined how individual apprenticeships will be funded in the future, the support that will be available from the government, and some of the main rules that will govern what type of training can be funded and how. Registration to the new digital account will be available from January 2017, while the first funds will be collected in April 2017 and available to spend in May 2017.

3.2 Portfolio Risks

This section provides an update on each of the risks identified within the Portfolio Agreement during the second quarter of the year. Details of the projects and activities which are helping to mitigate the Portfolio risks are included in Section 1 of the report.

23 Risk Description (and potential Update on controls and mitigating actions impact) E&R 01 - Unemployment Rates - Increased unemployment rates Unemployment rates have remained low and stable in (particularly youth recent months. unemployment) as a result of the prevailing economic Work continues to invest in activities to support long term conditions unemployed (Working Well & Troubled Families) and E&R 02 - Effectiveness of young unemployed (Apprenticeships and Jobs with Government welfare to work Training), as well as general activity to help address programmes - Government unemployment such as the Jobs Fair, Work Clubs and Welfare to Work programmes Employment & Skills Agreements on new developments. not effectively reaching the right (see paragraph 1.1.3) people and priority neighbourhoods The programme continues to be closely monitored and updated accordingly, with detailed annual programmes E&R 03 - Capital Programme giving a clear indication of anticipated spend. Project Allocation management systems ensure changes are communicated across all areas impacted, with opportunities identified for working across services and Directorates. The Council operates Managed Workspace from Houldsworth Mill Business and Arts Centre and Merchants House and Business Incubator space at Broadstone Mill E&R 04 - Managed workspace/ (SBIC). Managing agents are employed to ensure a professional service is delivered to tenants and to manage business incubator financial accounts. Monthly monitoring takes place for all 3 facilities sustainability with respective centre managers, including financial monitoring. All 3 centres are currently outperforming their occupancy and P&L forecasts, and Merchants House is now fully let. To be deleted, as this risk is linked to the Asset E&R 05 - Maintenance of assets Management Plan, reported under the Reform and Governance Portfolio. Performance against income targets is closely monitored, with services promoted to maximise take up along with E&R 06 - Income generation timely recovery of charges. Opportunities for external funding continue to be researched. E&R 07 - Management Data sets continue to be developed to inform the leisure Information (absence of and cultural offer, along with close performance monitoring accurate, current and detailed of Life Leisure. Customer and complaints data is also management information sets reviewed regularly with surveys conducted to supplement could result in development of this. an offer which fails to engage customers)

24 Appendix 1 - Review of Portfolio Performance Measures

As highlighted within the First Update Report, a review has been conducted of the measures included within the Economy and Regeneration Portfolio Report. Proposed new measures for inclusion and any other changes are outlined below. These are intended to reflect progress against delivery of key priorities within the Portfolio, alongside commentary on specific activity within the report.

A more fundamental review of the format and content of all Portfolio reports will be conducted for 2017/18, but in the meantime, Members are asked to consider and comment on these proposals for reporting during the remainder of 2016/17.

Where quarterly data is available for the new measures, this has been included, and where the data is reported on an annual basis, this will be included within the Annual Report or as soon as this becomes available.

Table A - New measures proposed for inclusion in 2016/17 Portfolio Reports

Good 2016/17 2014/15 2015/16 PI Name Reported Perfor- Actual Actual Q2 Annual mance Target1 Status Actual Forecast Area of retail / commercial / industrial floorspace let or sold to Quarterly High n/a n/a 70,000 32,370 70,000 new occupiers in the town centre (sqft) This measure supplements the existing boroughwide measure (E&R.13) and provides context to the Council’s growth programme and investment in Stockport Town Centre. It is largely influenced through promotion of development and management of retail units. The measure reflects the ‘churn’ in the local property market so acts as a proxy indictor for investment levels. It is based on transactions so is dependent on availability of properties, but does not show latent demand. Can be split out to show office, retail/leisure and commercial separately.

Measured for new occupiers only, quarterly data is cumulative, with the forecast taking account of Redrock and Stockport Exchange. 2016/17 will form a baseline year, as historical data is not readily available. During the quarter over 32,000 sqft of floorspace was let or sold to new occupiers within the town centre. This included 15,000 sqft office and 13,000 sqft retail. To date a total of 57,000 sqft has been let or sold within the town centre.

Net number of business Annually 420 345 500 start-ups - ie business (previous High 500 N/A (2013) (2014) (2015) ‘births’ minus ‘deaths’ year)

New business start-ups are a key measure within the GM Strategy, and a useful proxy for economic growth. Data is sourced from VAT registrations via ONS and reported in January 2 years in arrears. Future narrative will include the number of businesses engaged on growth related matters (contact with Business Growth Hub & digital platforms) as part of an annual ‘position statement’ within Q4 PPRR.

1 Some measures have no targets set as these may be contextual, however key trends are monitored for these and RAG ratings applied to highlight any issues.

25 Table A - New measures proposed for inclusion in 2016/17 Portfolio Reports

Good 2016/17 2014/15 2015/16 PI Name Reported Perfor- Actual Actual Q2 Annual mance Target1 Status Actual Forecast New business start-ups - net figure

600

500

400

300

200

100

0 2011 2012 2013 2014 2015 (forecast) -100

Business start-up Annually survival rates after 3 (previous High 57.8% 59.7% 60% N/A 60% years year)

Another useful proxy measure for the local economy. Survival rates are reported for the year after the business has been registered for 3 years ie 2014/15 data relates to businesses started in 2010 and still existing in 2013. Annual figure to be reported in Q3.

Business start-up survival rates after 3 years

63% 62% 62% 61% 61% 60% 60% 59% 59% 58% 58% 2012 2013 2014 2015 (forecast)

26 Table A - New measures proposed for inclusion in 2016/17 Portfolio Reports

Good 2016/17 2014/15 2015/16 PI Name Reported Perfor- Actual Actual Q2 Annual mance Target1 Status Actual Forecast Number of FTE jobs Quarterly High 1,985 1,634 1,500 557 1,500 created A key outcome measure linked to the GM Strategy. Estimates are based on floorspace let or sold (E&R.13) so not comprehensive. This will be supplemented by narrative on significant developments resulting in new jobs being created. Sales and lettings of commericial, industrial and retail units led to the creation of 557 jobs during Q2 (estimated according to HCA density standards). A total of over 850 jobs have been created in the first 2 quarters to date. Number of FTE jobs created

2500

2000

1500

1000

500

0 2012/13 2013/14 2014/15 2015/16 2016/17 (forecast) Percentage of 3.7% 3.8% 3.9% 3.7% unemployed 18-24 years Quarterly Low n/a (775) (790) (805) (755) olds in the borough Tackling youth unemployment is a key priority for the Council. This measure is based on DWP data for the total of claimants in receipt of Job Seekers Allowance and Universal Credit. Supporting narrative will reference activity including attendance at work clubs and job fairs, in addition to progress on the Working Well GM pilot to track those achieving sustained employment (50 wks +). The latest figure is 805 people (3.9%), which is the position at August 2016. This is a small increase from the preceding quarter. Small rises in claimant numbers in August is not unusual whilst young people are in transition between FE / HE or work during the summer period. Percentage of unemployed 18-24 years olds

8 7 6 5 4 3 2 1 0 2012/13 2013/14 2014/15 2015/16 2016/17

27 Table A - New measures proposed for inclusion in 2016/17 Portfolio Reports

Good 2016/17 2014/15 2015/16 PI Name Reported Perfor- Actual Actual Q2 Annual mance Target1 Status Actual Forecast Percentage of 16 and 17 year olds in 3 times 6.6% 7.6% 6.8% 6.8% High N/A apprenticeships per year (433) (505) (431) (431) (June figures)

Apprenticeships represent a key route into sustained employment for young people, enabling them to gain vocational skills and qualifications. Data from statutory DfE returns published for March, June and December each year, with the latest published being from June 2016 (shown as Q2).

The fluctuations over the last four years are likely to be attributable to a number of factors, including lower pass rates for GCSE with English and Maths in 2015 leading more to apprenticeships in that year, along with a smaller cohort size in 2016. Higher levels of progression to FE may also be a factor, whilst the destination of a proportion of the cohort is unknown, and could include apprenticeships.

Percentage of 16 and 17 year olds in apprenticeships

8.0%

7.5%

7.0%

6.5%

6.0%

5.5%

5.0%

4.5%

4.0% Dec-12 Mar-13 Jun-13 Dec-13 Mar-14 Jun-14 Dec-14 Mar-15 Jun-15 Dec-15 Mar-16 Jun-16

Number of visitors to Quarterly High 99,212 106,772 120,000 34,182 125,000 Stockport’s museums This measure was previously reported in PPRRs and reflects an area where the Council can seek to influence via management and promotion of the heritage offer. The total is forecast to increase as Bramall Hall reopens. It generally assumes like-for-like opening times, pricing policy, promotion and an on-going refresh of the offer. Quarterly narrative will include the type of visitors (schools/ non-schools) and any significant changes in individual venue attendance. Visitor figures to Stockport Museums during Q2 have increased by 20% on the same quarter last year. This is primarily due to the reopening of Bramall Hall at the end of July, which has had almost 5,000 visitors in August alone.

28 Table A - New measures proposed for inclusion in 2016/17 Portfolio Reports

Good 2016/17 2014/15 2015/16 PI Name Reported Perfor- Actual Actual Q2 Annual mance Target1 Status Actual Forecast

Number of visitors to Stockport’s museums

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 (forecast)

Table B - Measures proposed for deletion

Measure Reason for proposed deletion

With the continued roll-out of Universal Credit, this measure is no longer a reliable reflection of claimants in the NM areas. E&R 05 - E&R 09 Local data including UC claimants is not currently available % working age people claiming out of work from DWP, but will be included as and when it can be broken benefits in the neighbourhood management down to show those not in work. areas - excluding Universal Credit (reported for each NM area) In the meantime, the borough wide measure (E&R.04) has been updated to include UC claimants not in work, and trends within the NM areas will continue to be closely monitored.