Agenda item

Report of the Deputy Chief Executive (Place)

The Business, Economy and Enterprise Scrutiny Board (3) received a briefing note of the Deputy Chief Executive (Place) that submitted a presentation of the Coventry and Warwickshire Local Enterprise Partnership (CWLEP) Executive, Martin Yardley, Chief Executive, and Paula Deas, Operations Director. The presentation set out the Annual Local Enterprise Partnership (LEP) Review for 2019, covering the Performance Assessment 2018 and 2019, as well as information about key strategic projects. Councillor O’Boyle, Cabinet Member for Jobs and Regeneration, attended the meeting for consideration of this item.

The presentation indicated that Coventry & Warwickshire was the fastest growing LEP area economy in England since 2009 it had: a Strong Performing Economy - real GVA increase of 33.4% between 2008/09 and 2016/17 and it was the largest exporting area outside London (two thirds West Mids. exports); it had a growing business base – 37,045 businesses in 2018 (29,840 in 2010); In innovation it was a key enabler - Coventry had the 2nd highest patents per head of English cities (113/110k); it had an inward investment track record -

46 Foreign Direct Investment projects in 2018/19, realising 2,965 jobs; on Strategic Leadership and Influence - CWLEP ambition to engage and influence national and regional policy through specific projects or investments and the WMCA LIS was regarded as exceptional.

Coventry and Warwickshire Headline Economic Performance included: GVA £26 billion up 51.5%% from 2010 to 2018; productivity - £53,359 GVA per job up 28.3% since 2010; employment rate - 76.3% up 5.8% since 2014; average wage - £30,3581 up 12.6% since 2014; qualifications - 38.2% NVQ level 4 or higher (degree level); no qualifications - 9% of 16-64 year olds have no qualifications, this had fallen at a rate of 21.7% since 2014.

CWLEP Annual Performance Assessment 2018 and 2019 indicated that: it was the fastest growing LEP area since 2010 and was placed as one of the top 3 performing LEPs across whole country achieved through hard work of the LEP Board Directors and Business Groups; over £300m had been secured into the area over the last 7 years adding strategic value to deliver stronger more ambitious plans; it had a reputation and track record for delivery on high profile and complex projects; and it had strong governance and committed CWLEP Executive team underpinning the operation of the CWLEP Board, CWLEP Growth Hub and CWLEP Place Board.

The Scrutiny Board noted that funded by the local growth fund allocation through CWLEP:

·  £131.8m growth deal funding had been secured – expected over the next 5 years to create 7,500 jobs, 3,400 new homes, and £240m for investment

·  £67.9m had been secured and allocated for Coventry – expected by 2021 to create 1,352 new jobs and apprenticeships, 10,187 indirect jobs, 2,946 new homes; 1,045metres of new skill space, £6.8m for private investment, and 944,672metres of commercial space.

·  Very Light Rail - £2.46m growth deal funding secured for very light rail.

·  WMG Apprenticeship Centre - £10m secured towards the newly opened Centre for tailored training courses in line with the needs of local employers and for addressing the regional skills shortage

·  National Transport design centre - £6.9m secured towards the Centre which has raised the City’s worldwide profile in the automotive design industry by leading globally significant research and projects

·  The Box at Fargo Village - £2.4m secured towards enhancing the experience of visitors during the UK City of Culture 2021

The LEP’s key strategic projects were identified as:

·  Coventry City of Culture

·  Very Light Rail

·  UK Battery Industrialisation Centre

·  Commonwealth Games 2022

·  China New Markets

·  5G and Creative and Digital

The next steps for the LEP were:

·  White paper on Devolution expected – what would it bring in terms of

·  powers and funding

·  Levelling up

·  Budget vs Spending Review – tactical and strategic

·  Executing Local Industrial Strategy priorities for Coventry in context of a WMCA and Midlands Engine environment

·  Securing Future funding and security post Brexit – was there a UK shared prosperity fund, if so, how would it be administered

·  Continued focus on meeting requirements of LEP review as well as delivery in the final year of Local Growth fund

·  Increasing an already strong role in strategic projects including City of Culture, Gigafactory, and Commonwealth Games

The Board questioned officers, received responses, and discussed the following issues:

·  North-South divide – recognising regional differences in the North and south and working to minimise the divide

·  Rail – LEP investment in rail schemes at Kenilworth Rail Station, £7m investment in Nuneaton to London and the biggest investment of £27m in the Coventry Rail Station project.

·  Economic development along the A46 corridor – feasibility study carried out and development proposals being submitted for Government for assessment of infrastructure.

·  Partnership working – Coventry has good reputation for working with partners and should be promoted for this.

·  Funding formulas – strict criteria, complex process, thorough assessment.

·  Common Wealth Games Organisation – the Committee have requested that all Local Enterprise Partnerships contribute to the funding of the Games. In fulfilling this obligation, Coventry LEP has set some specific requirements to ensure value for money and positive outcomes for Coventry from the investment. 

·  Elected Member representation on the LEP – Elected Members representing the 7 Local Authorities on the LEP work cohesively and have good working relationship to gain the best outcomes for the region. Attendance at all meetings of the Board and in all decision making is good.

·  LEP Transport Lead – vacant role on Structure chart to be filled as soon as possible. Transport is essential and to the future progress of the region.

·  Future funding - a further report to be submitted to the Board providing an update on future funding, following the UK’s departure from Europe.

In acknowledging Martin Yardley’s, Deputy Chief Executive (Place), retirement from the City Council in March 2020, the Board thanked Martin for his service with the Authority and his work as Chief Executive of the LEP, they wished him well for the future and asked that their thanks and good wishes be conveyed to him.

RESOLVED that, having considered the content of the presentation, the Business, Economy and Enterprise Scrutiny Board (3):

1)  Notes the annual review of the work of CWLEP covering the Performance Assessment 2018 and 2019 and information about key strategic projects.

2)  Requests that a further report be submitted to the Board providing an update on future funding, following the UK’s departure from Europe.