Agenda item

Report of the Director of Business, Investment and Culture

NOTE: A briefing note containing recommendations from the Scrutiny Co-ordination Committee is appended at page 203

The Cabinet considered a report of the Director of Business, Investment and Culture, which set out Coventry’s New Economic Development Strategy for 2022-2027.

The Cabinet noted that the report had also been considered by the Scrutiny Co-ordination Committee at its meeting held on 28^th September 2022.  A briefing note was appended to the report setting out the Board’s agreement to the adoption of the Strategy and requested that annual performance data on the Strategy be presented to the appropriate Scrutiny Board.  The Cabinet accepted this request.

Coventry’s new Economic Development Strategy 2022-2027 would build on the achievements of the Coventry Economic Growth and Prosperity Strategy 2018-2022.  It was one of the key strategies for delivering the objectives of the new One Coventry Plan 2022-2030, and also particularly strongly integrated with the new Coventry Skills Strategy.

As well as replacing the current Economic Growth and Prosperity Strategy, which would expire at the end of 2022, a new Economic Development Strategy was needed that would provide a holistic framework for facilitating the sustainable growth of Coventry’s economy.  This was vital as Coventry and the wider West Midlands region continued to recover from the recession generated by the Covid-19 pandemic, growing challenges around adjusting to new UK-EU trading regulations after Brexit and wider global supply chain disruption, inflation, and the cost of living and cost of doing business. 

The new Strategy would be integral to delivering the objectives of the 2022-2030 One Coventry Plan.  It would be central to the objective of Increasing Economic Prosperity, by creating the conditions for local businesses to thrive, new investment to come into the city and the creation of new good quality job and training opportunities.  Through providing the framework for sustainable economic development and enabling all residents to benefit from new employment and training opportunities created, the Strategy would also be key to tackling the causes of climate change and tackling inequalities.  These actions would also cement the Council’s role as a partner, enabler and leader in shaping the local economy, and would help to improve the financial sustainability of the Council.

The vision of the Strategy was to “deliver a strong and resilient economy, where inclusive growth is promoted and delivered, businesses are enabled to innovate and grow, and new local jobs are created.”  To achieve this vision, the Coucnil would, through eight interlinked pillars:

·  facilitate a sustainable economic recovery from the COVID-19 pandemic and challenging economic climate driven by inflation and rising cost of living and cost of doing business, creating the platform for longer-term growth and prosperity

·  deliver a first-class support infrastructure that responds to our businesses’ needs and opportunities

·  secure maximum public and private investment to deliver infrastructure projects that create the conditions for economic growth and job creation

·  secure job creation, growth and prosperity through attracting and supporting business investment from both the UK and overseas

·  ensure that social value and sustainability are incorporated into all economic development work

·  support the development of a skills ecosystem which provides the skills required by Coventry’s businesses, both current and future, and contributes to economic growth and the prosperity of the city

·  ensure Coventry is a leader in the green industrial revolution by supporting our businesses, residents and partner stakeholders to tackle the challenges and opportunities presented by climate change

·  Build on existing strong partnerships in delivering all elements of this strategy

The Strategy would aim to tackle Coventry’s rising unemployment rate as well as wages and productivity levels which were below the national average, and the West Midlands economy experiencing the highest contraction of all regions during the Covid-19 pandemic.  The Council would seek to capitalise on the unique opportunities facing the city – not least the city’s longstanding track record in transport innovation, opening of the UK Battery Industrialisation Centre in 2021, and plans for a Gigafactory at Coventry Airport and subsequent investment in the electric vehicle and battery technology supply chains; the legacies of UK City of Culture 2021 and the 2022 Commonwealth Games; and continued transformation of Coventry City Centre through the Friargate and City Centre South schemes and schemes delivering physical enhancements to neighbourhoods across the city.

In developing the Strategy, the Council had consulted directly with stakeholders across Coventry City Council, key external economic development and business support partners, and members of the public through the One Coventry Plan consultation process and consultation events. 

Through continued work with partners, by 2027 the strategy aims to ensure that Coventry is a:

·  Green City, both through industrial innovation and sustainable transport.

·  Leading edge city in Advanced Manufacturing & Engineering industries.

·  Cultural City, particularly through expanded creative and tourism sectors.

·  City providing high employment levels and good quality jobs.

·  City providing opportunities for all through strong universities, and education & skills ecosystems.

·  City with reduced health, economic and social inequalities.

As a result of the gradual withdrawal of EU structural funds between 2022 and 2024, the grant funding available to support the delivery of the EDS had also reduced requiring the use of one-off service reserves, which were now expired.  Timing and value of successor grant funding from the Shared Prosperity Fund to support the Economic Development Strategy was still unclear but was expected to be less than previously available EU funds.

RESOLVED that, the Cabinet:

1.  Accept the comments and recommendations of the Scrutiny Co-ordination Committee.

2.  Approve the adoption of the Coventry Economic Development Strategy 2022-2027.

3.  Delegate authority to the Director of Business, Investment and Culture, following consultation with the Chief Legal Officer, the Chief Operating Officer and the Cabinet Member for Jobs, Regeneration and Climate Change, to further amend, edit and adapt the Coventry Economic Development Strategy 2022-2027 in the future in response to subsequent review, opportunity and consultation as required.