AGENDA. The next meeting of the Cumbria Local Enterprise Partnership will be held as follows:

Transcription

1 AGENDA Dear Member CUMBRIA LOCAL ENTERPRISE PARTNERSHIP The next meeting of the Cumbria Local Enterprise Partnership will be held as follows: DATE: Friday, 18 May 2018 TIME: 9.30 am VENUE: Redhills, Penrith Ms Jackie Arnold VICE CHAIR (PRIVATE SECTOR) CUMBRIA LOCAL ENTERPRISE PARTNERSHIP

2 Board Members Name Vacancy Jackie Arnold Stewart Young Giles Archibald John Coughlan Colin Glover Jim Jackson Rob Johnston Mike McKinley Julie Mennell Alan Smith Nigel Wilkinson Chair Vice Chair (Private Sector) Vice Chair (Public Sector) Public Sector Private Sector Public Sector Private Sector Private Sector Public Sector Public Sector Public Sector Private Sector

3 A G E N D A PART I ITEMS THOSE CONSIDERED IN PUBLIC 1 APOLOGIES FOR ABSENCE To receive any apologies for absence Jackie Arnold 2 DECLARATIONS OF INTEREST For members to make any declarations of interest in relation to items on today s agenda. All 3 MINUTES OF PREVIOUS MEETING To receive the minutes of the previous meeting held on 20 April 2018 (copy enclosed) Jackie Arnold (Pages 7-16) 4 UPDATE FROM THE CHAIR & VICE CHAIRS To receive an update from the Chair and Vice Chairs on any issues Jackie Arnold Stewart Young 5 MATTERS ARISING FROM THE MEETING OF THE CUMBRIA LOCAL ENTERPRISE PARTNERSHIP HELD ON FRIDAY, 20 APRIL 2018 To receive a report from the Chief Executive detailing any relevant matters not covered elsewhere on the agenda today (copy enclosed) Jo Lappin (Pages 17-20) 6 BORDERLANDS INCLUSIVE GROWTH DEAL To receive a report from the Chief Executive and a presentation from Alison Hatcher on behalf of Technical Officer s Group on the Borderlands Inclusive Growth Deal (copy enclosed) Jo Lappin Alison Hatcher Pages 21-28)

4 7 DEVELOPING CUMBRIA'S LOCAL INDUSTRIAL STRATEGY To consider a report from the Chief Executive (copy enclosed) Jo Lappin (Pages 29-38) 8 TOWARDS A CAREERS STRATEGY FOR CUMBRIA To consider a report from the LEP Head of Skills (copy enclosed) Craig Ivison (Pages 39-42) 9 NORTHERN CULTURAL REGENERATION FUND UPDATE To receive a report from Chief Executive (copy enclosed) Jo Lappin (Pages 43-46) 10 CHIEF EXECUTIVE'S REPORT To consider a report from the Chief Executive (copy enclosed) Jo Lappin (Pages 47-78) 11 LEP FINANCE REPORT 2018/19 To consider a report from the Chief Executive (copy enclosed) (Pages 79-82) 12 LEP COMMUNICATIONS (STANDING ITEM) To decide if there are any communication actions required from today s meeting Jackie Arnold Jo Lappin 13 FORWARD PLANNER (STANDING ITEM) To receive an up to date copy of the Forward Planner (copy enclosed) Jackie Arnold Jo Lappin (Pages 83-84)

5 14 ANY OTHER BUSINESS To discuss any other items of business 15 DATE & TIME OF NEXT MEETING The next meeting will be held on 15 June 2018 in the Seminar Room at Redhills, Penrith at 9.30am PART II - ITEMS CONSIDERED IN PRIVATE None for this meeting

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7 Agenda Item 3 Minutes of a Meeting of the Cumbria Local Enterprise Partnership held on Friday, 20 April 2018 at Redhills, Penrith, Cumbria at 9.30 am Board Members Present: Giles Archibald, Jackie Arnold (Vice-Chair, in the Chair), John Coughlan, Jim Jackson, Rob Johnston, Julie Mennell, Alan Smith, Nigel Wilkinson, Stewart Young (Vice-Chair) and Kevin Beaty In Attendance: Mrs J Currie Board Secretary - Cumbria County Council Mr S Falou Assistant Director Cities and Local Growth - BEIS Mr G Haywood LEP Director Mrs A Hatcher Cumbria County Council - Chair of the Technical Officers Group Ms J Lappin LEP Chief Executive The meeting began with a private Board briefing from Richard Harrington MP, and the Cumbria LEP Sponsor Minister. The items discussed included:- Cumbria LEP Organisation and Governance Review Local Industrial Strategy Major Economic Issues for Cumbria Northern Powerhouse Infrastructure Labour Supply and Skills Sector Deals GSK 92 APOLOGIES FOR ABSENCE Apologies for absence were received from Mr C Glover (substitute Mr K Beaty) and Mr M McKinley. 93 DECLARATIONS OF INTEREST Mr N Wilkinson declared a pecuniary interest under the LEP Code of Conduct in Agenda Item No 9 Cumbria LEP Finance Report - Provisional Outturn 2017/18, in relation to the Lake District China Forum, which linked in to the Marketing Manchester China Campaign and indicated that if this item was discussed in any detail he would leave the room. 94 MINUTES OF PREVIOUS MEETING The minutes of the previous meeting held on Friday 16 March were agreed with the following amendments:- 7

8 On the covering page under in attendance add in the role profiles for the representatives from BEIS; Sami Falou Assistant North West Director Cities and Local Growth and Ben Pledger Deputy Director., Cities and Local Growth On Minute No 82 Response to the S4W Independent Review at the end of the text in each of the 5 recommendations take out the words Members supported this recommendation. On Minute No 86 Transport Consultations Response to DFT s Major Road Network and TFN s Strategic Transport Plan change the date in the 6 th paragraph to read 23 February. The Chief Executive of the Chamber of Commerce had one minor point of clarification on the minutes it was agreed that the Chair would discuss this with him outside of the meeting. 95 APPOINTMENT OF NEW CHIEF EXECUTIVE RESOLVED that, the Board record the decision made by Written Procedure via to appoint Ms J Lappin as the Cumbria Local Enterprise Partnership Chef Executive. 96 UPDATE FROM THE LEP VICE CHAIRS There were no updates given to the Board on this occasion. 97 MATTERS ARISING NOT COVERED ELSEWHERE ON THE AGENDA There were no matters arising not covered elsewhere on the agenda today. 98 INVESTMENT PANEL (A) Investment Panel Update The Vice Chair of the Investment Panel presented a report which set out a summary of progress against the existing Growth Deal as well as other LEP Programmes. It also summarised activity at the LEP Investment Panel on 28 March Performance Update Cumbria LEP had a Growth Deal funding profile of 7,123,593 for 2017/18. Total claims forecast to be received by the end of the financial year would be 8,826,688, therefore an overspend was expected. This overspend would be managed through repayments from the CCC Capital programme, which had been used to deal with the underspend on the Growth Deal programme in 2015/16 and 2016/

9 The overspend was considerably less than had originally been anticipated mainly as a result of the delay in agreeing a contract with Carlisle Airport. As a result, the full 4.95m allocated to the Airport would need to be drawn down in 2018/19. Once the payment to the Airport was taken into consideration, the anticipated Growth Deal spend in 2018/19 was 12,585,980 against an offer letter of 6,057,068. The County Council had agreed to allow the Investment Panel to overprogramme the Growth Deal to reduce the risk of in-year under-performance, particularly in the latter years of the programme. This commitment equated to up to 20% of the annual Growth Deal offer letter. This action should remove the need to utilise the Cumbria Infrastructure Fund (CIF) to cashflow the Growth Deal. However, members noted that the current anticipated spend in 2018/19 was more than the 20% tolerance agreed to by the County Council. As a result of this commitment and considering forecasted performance against live projects, the Investment Panel would be proposing a reprofile of the Growth Deal to the LEP Board meeting to be scheduled in June Mid-Programme Review At its last meeting, the Investment Panel concluded that it was an opportune time to look at the Growth Deal Programme in its entirety and evaluate whether a number of those projects that had an allocation against them, would be in a position to deliver either an element of, or the whole of their project(s). As part of this process, the Panel would also consider if any other projects could be incorporated into the Growth Deal. At its May meeting, the Investment Panel would receive updates from all those projects with a Growth Deal allocation, which do not yet have a contract in place. These updates would enable the Panel to consider the viability of each project. With CIF funding no longer planned to be used to cashflow the Growth Deal, the Investment Panel would be in a position to consider how it could utilise CIF funding available in future years. Following the Investment Panel s deliberations, any recommendations on changes to the Growth Deal would be brought to the LEP Board at its June meeting. The Leader of South Lakeland District Council asked if it would be possible to notify those involved in the Ulverston Project quickly after discussion at the next Investment Panel on any recommendations relating to that project. This was AGREED. A Board member asked whether the performance of the value for money element was assessed during the completion of projects. The LEP Director said value for money was one of the criteria used/measured when projects were assessed as part of the bidding process, and on conclusion performance was measured against outputs. 9 3

10 Board members asked if, in future reports, the name of the lead body for individual projects could be included. This was AGREED. The Board members asked whether it would be possible for them to receive a list of project updates going forward, and also whether it would be possible for site visits to be arranged for ongoing projects to raise the involvement and awareness of the Board. The Chair would ask the Investment Panel to look at this (Action: JA). RESOLVED that, the report be received and noted. (B) Full Business Case - James Walker Ltd PART II RESTRICTED ITEM - NOT FOR PUBLICATION BY VIRTUE OF PARAGRAPH(S) 3 OF PART I OF SCHEDULE 12A OF THE LOCAL GOVERNMENT ACT 1972, AS THIS REPORT CONTAINS EXEMPT INFORMATION RELATING TO FINANCIAL OR BUSINESS AFFAIRS OF ANY PARTICULAR PERSON (INCLUDING THE AUTHORITY HOLDING THAT INFORMATION) The Board considered a report from the Vice Chair of the Investment Panel which sought approval for investment of Growth Deal funding to safeguard jobs at James Walker, Cockermouth following the flooding in December James Walker & Co Ltd in Cockermouth produces highly specialist rubber seals that were used in the operation of plant and machinery to industry worldwide. The site employed 406 people in highly skilled and well paid jobs in technical and advanced manufacturing roles. The company was flooded in 2009 and 2015, significantly impacting on production at the site on both occasions. Following Storm Desmond in 2015, it became apparent that the viability of the James Walker factory in Cockermouth was vulnerable due to its high flood risk. As a result, the owners need to de-risk the site from future flood events and had considered moving the plant s operations to other plants in the UK, USA, India or Thailand or directing all new investment to other sites and closing the Cockermouth factory. Recognising the need to de-risk the site, the LEP worked with James Walker on proposals to relocate the company to Lillyhall. The LEP s Growth Deal 3 included 5m for Lillyhall North that included the relocation of the James Walker factory. As the project was developed further, it became apparent that the costs of moving to Lillyhall were unaffordable for James Walker. In November 2017, the Investment Panel and the LEP Board agreed that in order to retain a key strategic employer, an element of the Lillyhall North allocation could be reallocated to support flood defence measures at James Walker s Cockermouth site subject to the completion of a satisfactory Full Business Case. A Full Business Case had now been received from James Walker and a HMT Green Book compliant appraisal had been undertaken. The project was seeking 2.6m of Growth Deal Funding for the delivery of flood protection at the site as result of the flood event in The works were necessary to de-risk the site to an acceptable 4 10

11 level of flood protection for insurers and customers and thereby enable the 406 jobs at James Walker in Cockermouth to be safeguarded. The applicant was keen that the project moved ahead at pace during 2018 in order to have the necessary flood protection in place before winter 2018/19 to provide assurance to the owners, investors and customers. One of the Board members again raised concerns with the due diligence undertaken for this project. Officers reassured the Board that this had been considered carefully and would be dealt with by the inclusion of conditions in the contract which must be met. If the conditions were not met the project would not go ahead. RESOLVED that, the Board approve 2.6m of Growth Deal Funding for the James Walker project subject to the identified conditions. 99 LEP DIRECTOR'S REPORT Board members considered a report from the LEP Director which updated them on activity since the last meeting. The report included information on the following topics:- DEFRA Consultation The future of Food Farming and the Environment Staffing Secondments Contracts for Other Support Services Local Industrial Strategy Mobile Coverage in Cumbria DEFRA Consultation: The Future of Food Farming and the Environment DEFRA had launched this Consultation with responses due by 8th May. The Chair of the Rural Economy Advisory Group, along with a number of other members of the group, attended the Cumbria launch at Rheged on 3 April The Rural Economy Group had discussed the key issues at their meeting on 12 April and a LEP response would be drafted, jointly with the County Council, for sign off by the 2 LEP Vice-Chairs and Nigel Wilkinson, as the Lead Board Member. This was AGREED. The Chair of the Rural Economy Advisory Group paid tribute to the work of Joe Broomfield in relation to the project, and asked that his thanks be recorded. Board members noted this. Staffing Secondments The new Chief Executive would be reviewing staffing capacity in the near future. Board members noted that Allerdale Borough Council and Sellafield Ltd had agreed to extend the current secondments of Joe Broomfield and John Reynolds for 3 months and 6 months respectively to allow for some continuity. 11 5

12 Contracts for other Support Services Following the last Board meeting the LEP Director had instructed that all renewals of contracts for 2018/19 should have a one month notice period to allow the New Chair and Chief Executive to review arrangements over the next few months. Local Industrial Strategy The Writing Group had now met several times and planned to meet fortnightly. It was well attended by a wide range of Private Sector and Public Sector partners, and a real enthusiasm for the inclusive way that the LEP had chosen to develop the new Cumbria Local Industrial Strategy up to The Board noted that an emerging framework for the Strategy would be received at the June meeting. Mobile Coverage in Cumbria Conversations had taken place recently with the Director of Mobile UK, the trade body for the major Mobile Operators about improving coverage in Cumbria. The Mobile UK had held events in other rural counties e.g. Norfolk, to bring interested parties together to discuss how coverage could be improved. The LEP had indicated that it would be willing to host such an event within Cumbria at Redhills. However, the Vice Chancellor of the University of Cumbria suggested the Ambleside Campus would be a suitable venue as it did not currently have good access to broadband. This was supported by the LEP Board. Rob Johnston indicated that the Chamber of Commerce was also doing some work on this topic and would collaborate with the Chief Executive on this event. RESOLVED that, (1) the Vice Chairs plus Nigel Wilkinson, as Lead Board Member for Rural Economy be authorised to agree a response to the DEFRA Consultation jointly with the Cumbria County Council; (2) the Board note the position with regard to staff secondments; (3) the Board note the position with regard to Contracts for Support Services; (4) the Board note the progress of the Draft Local Industrial Strategy for Cumbria; (5) the Board agree to host an event at the University of Cumbria s Ambleside Campus with key stakeholders, Board Members and local Authorities to consider how to improve mobile phone coverage in Cumbria. 100 CUMBRIA LEP FINANCE REPORT - PROVISIONAL OUTTURN 2017/18 Mr N Wilkinson declared a pecuniary interest under the LEP Code of Conduct in this item, which linked in to the Marketing Manchester China Campaign and indicated that if this item was discussed in any detail he would leave the room. 6 12

13 The purpose of this report is to provide the outturn 2017/18 Budget position on the LEP s core and strategic funding spend for 2017/18 as at 31 March The total income available for 2017/18 was 0.842m which was comprised of 0.516m of Core and 0.326m of Strategic funding. The outturn position as at the 31 March 2018 for the LEP Core funding was an underspend of 0.136m, and an underspend of 0.072m for the Strategic Funding. RESOLVED that, (1) the Board note the updated Core outturn position for 2017/18; (2) the Board note the updated Strategic outturn position for 2017/ LEP COMMUNICATIONS (STANDING ITEM) It was AGREED that a press release should be issued to record the very positive and constructive meeting with Richard Harrington, MP, the LEP Sponsor Minister. 102 FORWARD PLANNER (STANDING ITEM) The Board had a detailed discussion about the future Forward Planner, and upon conclusion it was AGREED that the following items be added to the planner for the next meeting:- Travel and Subsistence for Board Members Policy paper from the Chief Executive Interim key Priorities paper from the Chief Executive Business Case for the Coastal Railway - Alison Hatcher Presentation from Kate Willard Carlisle Airport (date to be confirmed) minute no 103 refers The Chief Executive asked all Board members to contact her with details of any strategic items they wanted to be added to the Forward Planner (Action: All) 103 ANY OTHER BUSINESS Recruitment of Chair of Cumbria LEP The Vice Chair (Private Sector) updated the Board on progress with the appointment of the Chair. Progress was positive with 3 or 4 strong potential candidates. The next stage was to agree a short list of candidates. The Board noted progress. A discussion then took place on whether this position should be a paid position, and whether more potential candidates would have applied if this was the case. The Board AGREED that for now this should stay as a non numerated post. However, this may need to be revisited if no appointment was made. 13 7

14 Appointment of Nuclear Representative on the LEP Board The LEP Director had written and spoken to Paul Foster from Sellafield Ltd about this appointment. Paul Foster would notify the Chief Executive once an appointment had been made. Cumbrian Coastline Jim Jackson, Infrastructure Lead member updated on progress with this project. He asked the Board to note that a paper would be coming to the 18 May meeting on this. This was an important priority for the Cumbrian LEP. The Leader of Allerdale Borough Council suggested a briefing note be prepared for all Cumbrian Local Authorities for lobbying purposes. This was AGREED (Action: JJ). Morecambe Bay Economic Initiative The Leader of South Lakeland District Council updated the Board on the initiative. This was a further cross border project which the LEP should support. Royal Airforce - Decommissioning of Fleet The Leader of Cumbria County Council informed the Board that the RAF would be decommissioning their Tornado Fleet later this year. A Lobby Group had been established to try to secure one of the planes for Cumbria. The LEP were asked to support this campaign, and provide a letter of support. This was AGREED.. Carlisle Airport The Leader of Eden District Council was looking for LEP support for a project to improve the infrastructure at Carlisle Airport. The airport was being promoted as the Carlisle Lake District Airport but there were currently no transport options at the airport to get to the Lake District. There was no car hire facilities, or buses out of the airport. The Board noted this and would raise these concerns with the airport. It was AGREED that Kate Willard should be invited to come to a future LEP meeting to discuss this. University of Cumbria The Vice Chancellor informed the LEP that new league tables had been published today and the University had been placed 35 out of 100. This was an improvement of 60 places. The Board members were delighted to hear this. LEP Director This would be the last meeting attended by the LEP Director who would be leaving his post next week. The Board thanked the Director for everything he had done for Cumbria during his time here. They wished him well for the future. 8 14

15 104 DATE & TIME OF NEXT MEETING The next meeting would be held on 18 May at Redhills, Penrith at 9.30am The meeting ended at pm 15 9

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17 Agenda Item 5 MATTERS ARISING FROM THE MEETING OF THE CUMBRIA LOCAL ENTERPRISE PARTNERSHIP HELD ON FRIDAY, 20 APRIL INVESTMENT PANEL Action/Agreement: The Leader of South Lakeland District Council asked if it would be possible to notify those involved in the Ulverston Project quickly after discussion at the next Investment Panel on any recommendations relating to that project. Current Position: The Investment Panel is scheduled to meet on 23 May Any discussions affecting the Ulverston Project will be communicated quickly. Action/Agreement: Board members asked if, in future reports, the name of the lead body for individual projects could be included. Action/Agreement: The Board members asked whether it would be possible for them to receive a list of project updates going forward, and also whether it would be possible for site visits to be arranged for ongoing projects to raise the involvement and awareness of the Board. The Chair would ask the Investment Panel to look at this (Action: JA). Current Position: This will be raised at the next Investment Panel meeting. (A) Full Business Case - James Walker Ltd Resolution: that, the Board approve 2.6m of Growth Deal Funding for the James Walker project subject to the identified conditions. Current Position: an offer letter has been issued by the Executive, containing the necessary conditions. 99 LEP DIRECTOR'S REPORT DEFRA Consultation: The Future of Food Farming and the Environment Action/Agreement: The Rural Economy Group had discussed the key issues at their meeting on 12 April and a LEP response would be drafted, jointly with the County Council, for sign off by the 2 LEP Vice-Chairs and Nigel Wilkinson, as the Lead Board Member. Current Position: The joint response was submitted and has been circulated to the Board appended to the Chief Executive s report. 17

18 Local Industrial Strategy Action/Agreement: The Board noted that an emerging framework for the Strategy would be received at the June meeting. Current Position: An update paper is provided on Phase 2 of the development of the Local Industrial Strategy. Mobile Coverage in Cumbria Action/Agreement: the Board agree to host an event at the University of Cumbria s Ambleside Campus with key stakeholders, Board Members and local Authorities to consider how to improve mobile phone coverage in Cumbria.. Current Position: this event is being planned to ensure that it fits in with activities being taken forward by other partners. An update will be provided to members at the Board meeting. 101 LEP COMMUNICATIONS (STANDING ITEM) Action/Agreement: A press release should be issued to record the very positive and constructive meeting with Richard Harrington, MP, LEP Sponsor Minister. Current Position: This was produced immediately after the meeting. However, this was caught by purdah considerations and as such the Minister s office requested that this was issued post-purdah. The release will now be used for publications, including the LEP newsletter. Additionally, a follow up letter was sent to the Minister from Jackie Arnold, Chair of the meeting, on behalf of the Board. 102 FORWARD PLANNER (STANDING ITEM) Travel and Subsistence for Board Members Policy paper Current Status: A draft policy is currently being considered by the acting Chair, for discussion with the incoming Chair, prior to agreement with the Board. Interim Key Priorities paper Current Status: The details of the interim work priorities are outlined within the Chief Executive s report. This will be supported by a short presentation. Business Case for the Coastal Railway Current Status: This item has been deferred as outlined in the Chief Executive s report. Presentation from Kate Willard Carlisle Airport Current Status: This request will be made once the Airport opens, recognising Kate s current pressing business priorities. 2 18

19 Forward Look Items Action: The Chief Executive asked all Board members to contact her with details of any strategic items they wanted to be added to the Forward Planner Current Status: Open and ongoing. No specific items were requested for this meeting. 103 ANY OTHER BUSINESS Recruitment of Chair of Cumbria LEP Action/Agreement: The Board AGREED that for now this should stay as a nonnumerated post. However, this may need to be revisited if no appointment was made. Current Status: The Vice Chair (Private Sector) will provide an update at the meeting. Appointment of Nuclear Representative on the LEP Board Current Status: The nomination is being followed up by Jackie Arnold. Cumbrian Coastline Action/Agreement: This was an important priority for the Cumbrian LEP. The Leader of Allerdale Borough Council suggested a briefing note be prepared for all Cumbrian Local Authorities for lobbying purposes. Current Status: The paper has been deferred as outlined in the Chief Executive s report. A briefing brochure will be provided to Board members at the meeting. Royal Airforce - Decommissioning of Fleet Action/Agreement: The LEP was asked to support this campaign and provide a letter of support. Current Status: A letter of support was sent by Jackie Arnold on behalf of the Board. This was circulated to Board members for information.. Carlisle Airport Action/Agreement: The Leader of Eden District Council was looking for LEP support for a project to improve the infrastructure at Carlisle Airport. Kate Willard should be invited to come to a future LEP meeting to discuss this. Current Status: This request will be made once the Airport opens, recognising Kate s current pressing business priorities Jo Lappin LEP Chief Executive 19 3

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21 Agenda Item 6 BORDERLANDS INCLUSIVE GROWTH DEAL 1. ISSUE 1.1 Up-date on the development of a Borderlands Inclusive Growth Deal with the UK and Scottish Governments. 2 RECOMMENDATIONS 2.1 That Board Members: a) Note the attached newsletter b) Receive a presentation with an up-date on the Borderlands Deal c) Note the invite to the Borderlands Conference that will be held at Easterbrook Hall in Dumfries on 18 June BACKGROUND 3.1 A commitment was made in the Budget in November 2017 to negotiate a Borderlands Deal. Subsequent to this announcement there have been a number of meetings held with MPs, MSPs and Ministers confirming the intent to do a deal for the Borderlands region. On 2 May, the Prime Minister confirmed that John Stevenson will be the Champion for the Borderlands Deal on the English side of the Border. 3.2 The Borderlands Inclusive Growth Deal is a partnership that brings together the five cross-border local authorities of Carlisle City Council, Cumbria County Council, Dumfries & Galloway Council, Northumberland County Council and Scottish Borders Council to promote the economic growth and competitiveness of the area that straddles the Scotland-England border. 3.3 The key messages from the Borderlands Partnership in relation to the Borderlands Deal are: The Borderlands Inclusive Growth Deal is unique. It is an ambitious approach to cross-border working between Governments, local authorities and partners. The Borderlands Partnership is working together to deliver positive change across the region to encourage growth, help existing businesses and to encourage new businesses to set up in the area. 21

22 The Borderlands Inclusive Growth Deal aims to tackle our economic challenges - the need to attract more people to live in our area and improve how well businesses perform The Borderlands Inclusive Growth Deal is focusing on ways to make the area more attractive to existing and potential residents, investors and visitors The Borderlands Partnership has been established to unlock the potential for sustainable and inclusive growth Whilst not everyone will see a project in their town, the projects/programmes will benefit the whole area. 3.4 The attached newsletter provides further detail on the themes that are being developed for inclusion within the Deal. 3.5 A Borderlands Conference will be held at the Easterbrook Hall in Dumfries on 18 June. It will be an opportunity to meet with other interested parties and for further dialogue on the Deal. Key speakers will include: David Mundell MP, Secretary of State for Scotland; Keith Brown, MSP, The Cabinet Secretary for Economy, Jobs and Fair Work and; Jake Berry, MP, Northern Powerhouse and Local Growth Minister. Jo Lappin LEP Chief Executive 22

23 23 Borderlands Inclusive Growth Deal Progress Update - March 2018

24 Borderlands Partnership The Borderlands Partnership brings together the five cross-border local authorities of Carlisle City Council, Cumbria County Council, Dumfries & Galloway Council, Northumberland County Council and Scottish Borders Council. The Borderlands Inclusive Growth Deal is focusing on ways to make the area more attractive to investors, visitors and those who may wish to relocate. This update provides background on progress. The Story so Far The Borderlands Partnership was established in 2014 and since then has worked on a collective ambition to unlock the potential for sustainable and inclusive economic growth across the South of Scotland and North of England. In September 2017, a Proposition submission (The Borderlands Inclusive Growth Proposition) was sent to the UK and Scottish Governments. This set out the partners vision for a Borderlands Inclusive Growth Deal. Reference to a Borderlands Inclusive Growth Deal was included in the UK Government s autumn budget statement (November 2017) and the Borderlands Partnership is in ongoing discussions with the UK and Scottish Governments. Borderlands Themes The Borderlands Partnership is working together to deliver transformative change across the region to maximise the benefits of growth. This includes two key economic challenges - the need for population growth and improved productivity. The Borderlands Inclusive Growth Deal is focusing on the factors which make places attractive to investors, visitors and those who may wish to relocate. The shared ambition is to play our full part in the Scottish and wider UK economy. The following themes make up Borderlands Inclusive Growth Deal: 24

25 Energy The Borderlands is a significant generator of clean energy through renewable sources and planned new nuclear power. This cluster of energy assets in the region presents a significant opportunity to use energy as a lever to drive economic and social growth. At present much of the clean energy produced in the Borderlands is utilised elsewhere and the region does not achieve full advantage from the assets it holds. 25 On a wider plane, the Borderlands suffer from a dispersed geography with poor transport links and these present a significant cost barrier to businesses seeking investment locations. The ability to supply clean cheap energy, especially when coupled with 21st Century digital infrastructure, offers an opportunity to attract new business investment to the region and support the creation of high value jobs. Contained within the overall ambition to be the first zero carbon gigabit region, the energy proposition is a critical component of the transformative investment required to achieve a step change in the performance of the Borderlands economy. Digital The investment in transformational digital infrastructure is highlighted as critical to tackling the barriers to longer term sustainable growth. The most effective way of boosting productivity and for achieving inclusive growth across the Borderlands region is by improving our digital connectivity. Improved digital connectivity is needed to: better position our towns, and our city, as active and agile places where innovation can flourish, thereby making many of our places significantly more attractive in which to invest; enable virtual learning across our educational facilities to help release the potential of the region s human capital; and transform our industrial and business parks and to make them attractive to investors and businesses. This transformation requires the supporting digital technology to establish the next generation of industrial and business parks. Transport Connectivity The Borderlands region is a strategically important area, integral to the development of the wider economy and ideally located at the intersections of the UK s rail and road networks, with improving airport and sea port capabilities, including the increasingly important link to Northern Ireland and through it to EU markets beyond Brexit. As such, transport connectivity within, across and through the Borderlands is critical to the future prosperity of the area. Three flagship transport projects are integral to these plans. These are: The Borders Railway: Proposed extension of the Borders Railway line from Tweedbank to Carlisle. The Borderlands Regional Airport: The airport will open to commercial flights in June and has potential to have a transformational impact on the visitor economy across the Borderlands region. Carlisle Station Gateway: Carlisle Station is the busiest transport interchange in the Borderlands area serving the wider Borderlands region.

26 Rural Productivity There is an opportunity to significantly increase the work done to inspire innovative working practices in rural land management across the area. The Borderlands unique selling point is its expansive rural area. It therefore highlights the scope to establish a new future for our Uplands whereby the interdependencies between its economic, social and environmental assets are properly harnessed and mutually reinforcing each other as well as maximise the economic benefits from our forestry sector. 26 Business We have many diverse rural businesses that are the life-blood of our rural economy. The Borderlands Inclusive Growth Deal aims to support businesses to grow, attract investment and encourage more innovation active businesses. Our region needs create the conditions to give the private sector confidence to invest. The Borderlands Inclusive Growth Deal highlights the need within the region to assist companies in the transition to growth businesses and to make investments that will help increase business productivity. There is also a parallel need to support our existing businesses in their adoption of new technologies and to be competitive in a post-brexit world. Destination Borderlands The Borderlands Inclusive Growth Deal recognises the potential of the Borderlands to become the UK s premier outdoor recreation area in walking, cycling, horse riding and other outdoor sports and to attract more visitors. The Borderlands has a common cultural as well as natural heritage from the Roman Frontier to the medieval Reiver period and literacy, music, art and architectural links. By looking at these assets and natural linkages in a pan-borderlands way, a number of significant opportunities can be identified that would deepen the reach and appeal of the area as a place that visitors want to stay for longer throughout the year, as a great place to invest and as a great place to live. Lengthening stay is one approach where the Borderlands can play a key role, extending international stays by showcasing why international visitors should add days to their UK or European trip. Whilst the Borderlands has many assets of international appeal, there is a need for continued investment in attractions and facilities to achieve a step change in the visitor experience.

27 Quality of Place The Borderlands Inclusive Growth Deal recognises that our primary challenge is population growth and specifically the need to attract more working age people to the area to improve our productivity and to grow our economy. Our diverse geography and extensive land mass present particular challenges of driving growth highlighting the urgent need for better, fit for purpose digital and transport connectivity. 27 Tackling this will require a wide variety of approaches, with diverse developments across the Borderlands designed to attract greater numbers, and greater diversity, of working age people. However, common to all approaches will be the attractiveness of great places, driven by digital technology in a low carbon environment. Throughout the Borderlands, the availability of clean, low carbon energy and the connectivity of leading edge digital technology will best position our towns, and our city, as active and agile places where innovation can flourish, thereby making many of our places significantly more attractive in which to invest. The Borderlands is made special by the places within it. There is significant opportunity to put the Borderlands at the forefront of rural development through the delivery of bespoke and sustainable interventions that genuinely reflect the area s particular strengths and opportunities. Skills Further Education and Higher Education providers will be collaborating to develop proposals for supporting skills development across the Borderlands area to help attract and retain people, but also to ensure provision of skills to meet employer needs. Next Steps The Borderlands Partnership continues to meet key stakeholders on a regular basis. A Borderlands website will go live soon. This will provide information on the Borderlands Partnership s work to date and will update on any progress.

28 28 The Borderlands Partnership is made up of:

29 Agenda Item 7 DEVELOPING CUMBRIA S LOCAL INDUSTRIAL STRATEGY 1. ISSUE 1.1 Developing a high-quality Local Industrial Strategy that acts as a catalyst for private and public-sector investment and drives forward growth and prosperity in Cumbria. 2. RECOMMENDATIONS 2.1 That the Board: a) Note the expectations of the Local Industrial Strategy; b) Note Phase 1 progress; c) Agree the process for the Phase 2 development of the LIS as summarised at Annex B; d) Agree that the appointed consultant is invited to the next Board meeting to hear members views on the development of the LIS; e) Agree that Board Members will play an active role in leading the consultation events. 3. BACKGROUND Introduction 3.1 Government produced the Industrial Strategy; building a Britain fit for the future White Paper on 27 November 2017, outlining its plans to boost productivity and the earning power of people throughout the UK. The emphasis on growth and people means that we are looking at producing a socio-economic document rather than a purely economic document, such as the Strategic Economic Plan (SEP). 3.2 The White Paper identifies five foundations of productivity Ideas: the world s most innovative economy; People: good jobs and greater earning power for all, Infrastructure: a major upgrade to the UK s infrastructure, Business Environment: the best place to start and grow a business and Places: prosperous communities across the UK. These foundations are recognised as essential to a successful economy, with the Industrial Strategy structured around this. Details of the ambitions and the policy interventions for each of the foundations are provided at Annex A. 29

30 3.3 In addition to the five foundations the strategy identifies four grand challenges, which government sees as imperative to shaping Britain s future, within a global environment: Putting the UK at the forefront of the artificial intelligence and data revolution; Maximising the advantages for UK industry of the shift to green growth; Becoming a world leader in shaping the future of mobility; Harnessing the power of innovation to help meet the needs of an ageing society. The Strategy s focus on green growth means that the Local Industrial Strategy should move further towards a fully integrated strategy, addressing economic, social and environmental issues. 3.4 Government recognises that the best people to drive forward local economies are those who live, work and do business in them. It has therefore committed to work in partnership with places to develop the Local Industrial Strategies. The expectation is that the strategies will be long term, based on clear evidence and aligned to the national Industrial Strategy. In non-mayoral Combined Authority areas, the development will be led by the Local Enterprise Partnership. 3.5 Importantly the Industrial Strategy reaffirms government s commitment to LEPs and working with the 38 LEPs to drive forward the ambitions of the Industrial Strategy. However, it also recognises that the performance of LEPs has been varied and will therefore be working with LEPs to ensure that strong public and private sector leadership, robust governance and accountability, financial reporting and effective and inclusive partnership arrangements are in place. There is also an expectation that the strategy will be used as a catalyst to establish new ways of working between national and local leaders in both the public and private sectors, with Universities, college and other local institutions identified as key to this. 3.6 Government is currently working with three trailblazer areas Greater Manchester, the Oxford-Milton Keynes-Cambridge corridor and the West Midlands to co-design and develop the first Local Industrial Strategies and aims to agree these by March Board members are invited to note the current understanding of the expectations of the Local industrial Strategies. Progress To date Phase 1 Inception 3.8 A Writing Group has been established, engaging a wide range of partners, to develop the Local Industrial Strategy. The Group is currently meeting on a fortnightly basis and its work to date has concentrated on assembling the evidence base, developing the headline strategic narrative and preparing position papers on each of the five foundations of productivity. There has also 30

31 been some early consideration of scenario planning. Members are invited to note progress to date. 3.9 A suitably qualified consultant will be engaged to provide the Writing Group with the necessary support to develop a strong Local Industrial Strategy, that makes the case for investment, maximises opportunities and addresses challenges including those of the 4 areas in Cumbria that are amongst the 30 most structurally weak economies in England. Board members will be updated on the engagement of the consultant at the Board meeting. The consultant will be working with the Executive and the Writing Group to develop a detailed project plan for agreement by the Board at the June meeting. Members are invited to agree that the appointed consultant is invited to the next Board member to listen to Board members views on the development of the strategy. Process for Further Development of the LIS Phase 2 First Draft Development 3.10 A careful balancing act now needs to be struck between making strong early progress and not getting so far ahead of thinking and guidance that the document produced is not fit for purpose. The current timetable is extremely ambitious in that it is running ahead of the trailblazers for the production of a document, all of which have considerably more resources to draw upon. The development process therefore needs to recognise this balancing act and combine ambition and pragmatism It is also essential that partners are genuinely engaged in the development of the strategic priorities within the document, if it is to be delivered, as this will require all partners to take responsibility for turning the ambition into a reality. The Writing Group is a very helpful mechanism to help achieve this. However, this needs to be underpinned by much wider stakeholder engagement at critical points in the development process, via strategy development events Government is clear that any strategy must be evidential and as such it is clear that we need to get the evidence base right, covering the whole scope of the document. Therefore, work in this area over the next 4-6 weeks will concentrate on refining the evidence base and market testing this to gain traction with partners A mapping exercise will also be undertaken to systematically assess the opportunities and challenges for Cumbria against the four grand challenges and five foundations of productivity to ensure that the emerging position papers adequately reflect and respond to these It is also essential that we secure an informed place perspective at local area, if we are to develop the right interventions to effectively address place-based opportunities and issues. The LEP Chief Executive is therefore attending the next public sector Chief Executives meeting to outline the process for developing the strategy and to explore how local areas can best engage in producing the place elements of it. 31

32 3.15 A headline project plan for Phase 2 is outlined at Annex B. This will be further developed and presented at the June meeting of the Board, together with a skeleton structure and synthesis piece drawing together the strategic narrative and the emerging position papers. Board members are invited to agree the process for Phase 2 development of the LIS; the headline project plan to support this; and that a substantive item is included on the agenda for the June Board meeting. Consultation Events 3.16 The consultation events provide an excellent opportunity for the LEP to demonstrate strong partnership working and visibility to all stakeholders. Importantly, it also provides all partners with the opportunity to influence the development of the strategy at an early stage. This will increase its deliverability, as it will capture the long-term investment plans of public and private sector partners. It is therefore proposed that we host a series of strategy development workshops with a format designed to ensure that all partners have the opportunity to have their views heard and formally captured It would be extremely helpful to have Board participation at these events to demonstrate the strength and coherence of the Board and Cumbria s approach to collaborative leadership. It will also provide a good opportunity to introduce the Chair and the new Board members to stakeholders. It is expected that the Writing Group will also play a strong role acting as facilitators and hosts. Clearly, Board members input would be supported by detailed briefings, presentations and any necessary materials provided by the Executive. Board members are invited to agree to take an active role in the consultation events, and that the Executive develop all necessary materials to ensure that high quality events are delivered In terms of timing it is proposed that these events are arranged for late June/early July to provide sufficient time for the new Chair to bed into the role. 32

33 Annex A GOVERNMENT S AMBITIONS AND POLICY INTERVENTIONS FOR THE FIVE FOUNDATIONS Ideas Our ability to innovate to develop new ideas and deploy them is one of Britain s great historic strengths, from the jet engine and the bagless vacuum to MRI scanners and the world wide web. We are a global leader in science and research: top in measures of research excellence and home to four of the top 10 universities in the world. We need to do more to ensure our excellence in discovery translates into its application in industrial and commercial practices, and so into increased productivity. The government and the private sector need to invest more in research and development (R&D). We need to be better at turning exciting ideas into strong commercial products and services. And we must do more to grow innovation strengths in every part of the UK, as well as maintaining our position as a global leader in science and innovation. Through our Industrial Strategy, Britain will take a leading role in a new industrial revolution as significant as the last. We will drive change through the biggest increase in public investment in R&D in our history. We will ensure the UK is the best place for innovators, and through our Grand Challenges we will drive partnerships between the best minds in science and business throughout Britain. Key Policies Raising total research and development (R&D) investment to 2.4 per cent of GDP by 2027 Increasing the rate of R&D tax credit to 12 per cent Investing 725 million in new Industrial Strategy Challenge Fund programmes to capture the value of innovation. People The United Kingdom has one of the most successful labour markets in the world. Our employment rate is at a near historic high one of the fastest post-recession rates relative to other major economies. It is underpinned by a world-class higher education system, the first choice of students and researchers around the world. Employers are ever more closely involved in the system, and we are committed to delivering three million apprenticeship starts by But we still face challenges in meeting our business needs for talent, skills and labour. In the past, we have given insufficient attention to technical education. We do not have enough people skilled in science, technology, engineering and maths. We 33

34 need to narrow disparities between communities in skills and education and remove barriers faced by workers from underrepresented groups in realising their potential. We will ensure that everyone can improve their skills throughout their lives, increasing their earning power and opportunities for better jobs. We will equip citizens for jobs shaped by next generation technology. As the economy adapts, we want everyone to access and enjoy good work. We will put technical education on the same footing as our academic system, with apprenticeships and qualifications such as T levels. We will continue to support teaching in our schools, flexible career learning and other measures to transform people s life chances. Key Policies Establish a technical education system that rivals the best in the world, to stand alongside our world-class higher education system Invest an additional 406 million in maths, digital and technical education, helping to address the shortage of science, technology, engineering and maths (STEM) skills Create a new National Retraining Scheme that supports people to re-skill, beginning with a 64 million investment for digital and construction training. Infrastructure Infrastructure is the essential underpinning of our lives and work, and having modern and accessible infrastructure throughout the country is essential to our future growth and prosperity. Much of this investment is, by its nature, large scale and long term, and one of the most significant ways the government can influence the economy from our transport and housing through to the roll-out of digital networks. Our National Infrastructure and Construction Pipeline is worth around 600 billion and public infrastructure investment will have doubled in a decade by 2022/23. We must make sure our infrastructure choices not only provide the basics for the economy, they must actively support our long-term productivity, providing greater certainty and clear strategic direction. Our investment decisions need to be more geographically balanced and include more local voices. We can improve how we link up people and markets to attract investment, and we must be more forward-looking in respect of significant global economic trends. Through our Industrial Strategy, the country s economic geography will be transformed by a surge of infrastructure investment heralding a new technological era. We will build a Britain that lives on the digital frontier, with full-fibre broadband, new 5G networks and smart technologies. We will create a new high speed rail network that connects people to jobs and opportunities, regenerate our stations and airports, and progressively upgrade our road network. And we will improve people s lives where they live and work, with high quality housing and clean, affordable energy. 34

35 Providing the right infrastructure in the right places boosts the earning power of people, communities and our businesses. Key Policies Increase the National Productivity Investment Fund to 31 billion, supporting investments in transport, housing and digital infrastructure Support electric vehicles through 400 million charging infrastructure investment and an extra 100 million to extend the plug-in car grant Boost our digital infrastructure with over 1 billion of public investment, including 176 million for 5G and 200 million for local areas to encourage roll out of full-fibre networks. Business Environment The United Kingdom has a global reputation as a good place to do business. A new business starts up every 75 seconds, and we are home to five of the top 10 fastestgrowing businesses in Europe. People looking to grow or relocate a business come to Britain confident in our high corporate standards. The OECD ranks us as one of the best places to start and grow a business; we have the most competitive tax rates and we are welcoming to global talent and disruptive start-ups. Our challenge is to improve how we spread the best practice of our most productive businesses. We are one of the world s great financial centres, yet growing businesses sometimes face difficulty in accessing finance. Our managers are, on average, less proficient than many competitors, and we should make better connections between high-performing businesses and their supply chains. Our Industrial Strategy aims to make Britain the best place to start and grow a business, and a global draw for innovators. We will drive productivity in businesses of all sizes by increasing collaboration, building skills and ensuring everyone has the opportunity of good work and high-paying jobs. We will ensure the financial sector is better connected to the rest of the economy, driving impactful investments. We will create a business environment equipped for the challenges and opportunities of new technologies and ways of doing business. Key Policies Launch and roll-out Sector Deals partnerships between government and industry aiming to increase sector productivity. The first Sector Deals are in life sciences, construction, artificial intelligence and the automotive sector Drive over 20 billion of investment in innovative and high potential businesses, including through establishing a new 2.5 billion Investment Fund, incubated in the British Business Bank 35

36 A review of what actions could be most effective in improving productivity of SMEs, including how to address the long tail of less productive businesses. Places The United Kingdom has a rich heritage with world-leading businesses located around the country. Our cities, towns and rural areas have competitive advantages that will be essential to shaping our economic future. Yet many places are not realising their full potential. The UK has greater disparities in regional productivity than other European countries. This affects people in their pay, their work opportunities and their life chances. Every region in the UK has a role to play in boosting the national economy. We will build on the strong foundations of our city, growth and devolution deals and continue to work in partnership with local leaders to drive productivity. We will introduce Local Industrial Strategies and further strengthen local leadership through Local Enterprise Partnerships and Mayoral Combined Authorities. We will also introduce new policies to improve skills in all parts of the country, create more connected infrastructure, back innovation strengths, ensure land is available for housing growth, and strengthen our cultural assets. We are working with our partners in the devolved administrations to deliver ambitious plans for communities across Scotland, Wales and Northern Ireland. We will also continue to build the Northern Powerhouse and Midlands Engine to help create prosperous communities throughout the UK. Key Policies Agree Local Industrial Strategies that build on local strengths and deliver on economic opportunities Create a new Transforming Cities fund that will provide 1.7 billion for intracity transport. This will fund projects that drive productivity by improving connections within city regions Provide 42 million to pilot a Teacher Development Premium. This will test the impact of a 1000 budget for high-quality professional development for teachers working in areas that have fallen behind. 36

37 37

38 ANNEX B LOCAL INDUSTRIAL STRATEGY PHASE 2 DEVELOPMENT PLAN ACTION Strategy Development Work Evidence Base Assembled Analytical Work Completed Headline Strategic Narrative Produced Position Papers Produced Synthesis Paper produced for Board WEEK ENDING 11/5 18/5 25/5 2/6 9/6 16/6 23/6 30/6 7/7 13/7 38 Consultancy Support Tender Exercise closes Consultant Selected Inception Meeting Held Work Programme Prepared Attends Writing Groups Attends Board Meeting Consultation Activity Dates secured with Board Venues Booked Events publicised widely Agenda agreed in correspondence Board roles and responsibilities clarified Writing Group roles and responsibilities clarified Board Briefings arranged

39 Agenda Item 8 TOWARDS A CAREERS STRATEGY FOR CUMBRIA 1. ISSUE 1.1 An update on the development of a Careers Strategy for Cumbria in response to issues raised by LEP Employer Panels. 2. RECOMMENDATION 2.1 That the Board agrees to delegate the development of: a) a bid for a Careers Hub to the Future Workforce Group b) a Careers Strategy for Cumbria, and funding model, to the Employment and Skills Advisory Group. 3. BACKGROUND 3.1 The LEP Skills Investment Plan, published in 2015, highlighted the issue of a fragmented and inconsistent Careers and Enterprise Education offer in the county. 3.2 Since publication the LEP has worked with 8 employer panels. Each sector panel has consistently raised the need to develop and implement a consistent, coherent, all age careers, enterprise, information, advice and guidance offer. The LEP has also, in partnership with the Careers and Enterprise Company, developed the Enterprise Advisor Network in Cumbria, working with employers to support the development of careers education in almost 40 schools and colleges across the county. 3.3 The panels have highlighted some areas of good practice but are concerned that the lack of a coherent offer lies at heart of recruitment difficulties, with many sectors concerned at the lack of information available to potential recruits about the range of opportunities available within Cumbria. Many employers also expressed concern about the image of their sector being presented, in particular to young people. 3.4 In order to start to address these concerns the LEP held the Generating Solutions event in November 2017, which brought together employers, representative organisations, agencies, education and skills providers and young people to develop solutions to this issue. 39

40 3.5 At the same time the Department for Education (DfE) published Careers Strategy: making the most of everyone s skills and talents. This document reflected the issues raised by the LEP Employer Panels, and places employers at the heart of careers and enterprise education. The strategy promoted the concept of a Careers Hub. The hub will draw together a range of support for up 40 schools and Colleges within a geography, to enable them to deliver a careers education offer that is aligned to the Gatsby Benchmarks, the recognised standards for careers education in schools and Colleges. 3.6 There will be 20 Careers Hubs pilots across England, with up to 60,000 funding for each hub. There will be a competitive process for hubs led by the Careers and Enterprise Company. The prospectus published by Careers and Enterprise Company identifies LEPs as lead bodies for bids. The deadline for the submission of a bid is 25 May The LEP Skills Team has worked with the Future Workforce Group to develop a possible bid, recognising the opportunity this presents for Cumbria. A selfassessment has been completed establishing the strengths and weaknesses against the criteria set out in the Hub prospectus. 3.8 The model of support for establishing a co-ordinated programme of careers education developed by the LEP aligns closely to the model set out in the hub prospectus. The numbers of schools in the hub model match the number of schools in our Enterprise Advisor Network, and the model of geographically focused Careers Education groups across the county aligns closely to the hub criteria. 3.9 However, a Careers Hub would only address some of the challenges set out by employer panels and the Generating Solutions event. Consequently, the LEP Skills Team is developing a draft Careers Strategy for Cumbria which addresses the following areas of need: Co-ordination of employer experiences for young people the ask of employers to support Apprenticeship growth, pre-16 work experience, the range of activities suggested in the DfE Careers Strategy and the development of T Levels is considerable. The employers on Employer Panels, who attended the generating solutions event have asked for support in co-ordinating this A programme of support for school and college careers leaders employers have asked that careers education in schools is led by a senior leader with the necessary skills and experience to develop a coherent and consistent offer. These careers leaders will require support in developing their programmes Effective tools to communicate labour market information to students it is recognised that much of the information available to students is either not used effectively, is not fit for purpose or is not delivered in a way that will engage young people. This needs to change if young people are to understand the full range of opportunities in the county 40

41 Co-ordination of STEM activities it is recognised that there is a lot of STEM support available to schools across the county. However, it is often un-coordinated leading to duplication of effort. There needs to be a co-ordinating activity to ensure that the county maximises the STEM support available. Support for primary schools it is recognised that the focus of much careers education is on secondary students. However, the LEP and CEC have been approached by primary schools that are interested in developing careers and enterprise education for their students This proposal builds on successful pilot activity developed in the North East. The draft strategy will be presented to the Board at the June meeting. Craig Ivison LEP Head of Skills 41

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43 Agenda Item 9 NORTHERN CULTURAL REGENERATION FUND UPDATE 1. ISSUE 1.1 An update on the new 3.29m World Heritage Cumbria project, which has secured funding from the Northern Cultural Regeneration Fund. 2. RECOMMENDATION 2.1 That the Board: a) Note the funding award of 3.29m from the DCMS Northern Cultural Regeneration Fund; b) Agrees to delegate responsibility to the LEP Investment Panel approve the final conditions of offer to Lakeland Arts for the NCRF funding. 3. BACKGROUND 3.1 In August 2017, the Department for Culture Media and Sport (DCMS) launched a 15million legacy fund to amplify the impact of the 2018 Great Exhibition of the North. The intention of the fund was to make capital grant awards to 3-4 large projects of around 3-4m each. 3.2 Bids to the fund needed to contribute towards two primary funding goals: Encourage sustainable cultural and creative regeneration in the North of England; and Benefit areas in the North of England that have historically had low levels of cultural and creative investment. 3.3 LEPs were invited to submit a single bid to the Fund for a single capital project that could demonstrate long-term financial sustainability. Projects could only apply for up to 70% of total project costs and be able to clearly demonstrate a match funding package. 3.4 During Autumn 2017, the LEP invited project applications from local partners which were assessed using the DCMS criteria, including deliverability, value for money, strategic fit and risk. 3.5 Delegated authority was given to a subset of the LEP Board to consider the applications received, which resulted in World Heritage Cumbria, submitted by Lakeland Arts and the Wordsworth Trust being selected for submission to the NCRF. In March 2018, the bid was successful alongside two other bids from Blackpool and Bradford. 43

44 3.6 World Heritage Cumbria is a package of transformational capital investments, totalling 33.1m, across three key cultural and heritage assets at Windermere Jetty, Dove Cottage & Museum and Abbot Hall Gallery & Museum. A synopsis of the package is as follows: Windermere Jetty creation of a new and accessible museum on the lake shore including both permanent and temporary exhibition space, transformation of the Old Fire Station into a space for artists, residencies and community projects, an outdoor learning and play area as well as landscaping to allow access to the iconic surroundings. Reimaging Wordsworth - transforming the visitor experience of the historic Wordsworth Museum, creating a new gallery and increasing exhibition space, a Community Gallery for local artists, community groups and young people to showcase their work, a Learning Centre as well as new outdoor spaces that connect visitors with the surrounding landscape. Abbot Hall undertaking vital refurbishment across its main galleries, new project space for artist residencies, community projects and workshops and achieve full accessibility across the site. 3.7 World Heritage Cumbria will achieve the following key outputs; 29,810,000 leveraged funding. 2.1m additional annual GVA generated. 146,499 additional annual visitors to the area. 35 new direct jobs created. 825 skills development opportunities. 800 volunteering opportunities. 3.8 The programme of activity will be delivered over three years from 2018/ /21 with Windermere Jetty the most advanced and already in progress. 3.9 Lakeland Arts will act as the lead partner for the project, with responsibility for oversight of all elements of the project, including providing financial and monitoring returns to the LEP, who will then submit to DCMS Further information on the World Heritage Lakeland project can be made available at the Board s request NCRF, funding will be paid to the LEP s Accountable Body upfront under Section 31 of the Local Government Act in line with a funding profile, which will be confirmed in the offer letter. The offer letter from DCMS is still awaited. The Accountable Body will be responsible for undertaking further due diligence on the projects in advance of contracting with Lakeland Arts Trust to identify the conditions for the grant funding offer. 44

45 3.12 The Assurance Framework requires project investment decisions above 1m to be referred to the LEP Board, with a recommendation from the LEP Investment Panel. In this instance, the investment decision has already been made by DCMS. It is therefore recommended that the LEP Board delegates approval of the due diligence and funding conditions to the LEP Investment Panel. Board members are asked to agree to this recommendation. Jo Lappin LEP Chief Executive 45

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47 Agenda Item 10 CHIEF EXECUTIVE S REPORT 1. ISSUE 1.1. The Chief Executive s report to the Board. 2. RECOMMENDATION 2.1 That the Cumbria LEP Board: a) agree that some preparatory work is undertaken on developing a governance and accountability proposal for the incoming Chair s consideration and Board approval; b) agree that a revised version of the Assurance Framework is presented to the Board at its June 2018 meeting; c) agree that the revised Energy Plan consultation draft will be presented to the Board at its June 2018 meeting; d) agree that the Cumbria Coast Line Strategic Outline Business Case is approved by the Board in correspondence; d) agree that the Annual General Meeting is re-scheduled for 14 September 2018, subject to the incoming Chair s diary commitments; e) note the response to the DeFRA Health and Harmony Consultation is attached at Annex A, and that Nigel Wilkinson can speak to this, f) note that a first draft communications strategy will be presented to the Board for consideration at its June meeting; 3. BACKGROUND 3.1 The Cumbria LEP Board has agreed that a report from the Chief Executive should be provided to each Board meeting. This report covers the period since the new Chief Executive took up post on 17 April

48 Governance and Accountability Deep Dive 3.2 The deep dive report has yet to be received. However, the likely findings can be anticipated and are likely to relate to the need for a governance structure that designs in the highest standards of propriety and transparency, robust scrutiny framework, a strengthened code of conduct and clear arrangements for managing conflict of interest. These issues although readily resolvable, will take time and effort to resolve, and good progress is already being made towards addressing these through the response to the S4W report and Mary Ney recommendations. However, it would be helpful to look systemically at governance and accountability and the LEP can now take the opportunity to develop a draft response for consideration by the incoming Chair. The Board is invited to agree that some preparatory work is undertaken for consideration by the incoming Chair on his/her arrival. Assurance Framework 3.3 A review is being completed on the Assurance Framework to ensure that is fully consistent with recent Board approved changes and effectively addresses Board agreed feedback from the S4W report, Mary Ney recommendations and is in keeping with best practice in LEP governance and accountability. The Board is invited to agree that these amendments will be presented to the June meeting of the Board. Annual General Meeting 3.4 The Annual General Meeting has been scheduled on the forward look for 13 July The AGM should provide the opportunity for the LEP to demonstrate its commitment to the highest standards of openness, transparency and public accountability to all of our stakeholders. In order to meet these commitments, the AGM needs to be declared and widely publicised. Therefore, it would seem sensible to review the timing of the AGM to ensure that there is sufficient time to notify all stakeholders and to undertake the necessary preparatory work (production of Annual Report, logistics etc). 3.5 It is also important that the new Chair is provided with the opportunity to lead this event, alongside the Board, and that it is seen as a highly successful, positive event for the LEP. The Board is therefore invited to agree that the AGM is re-scheduled for 14 September 2018, subject to the incoming Chair s diary commitments. Code of Conduct 3.6 All team members, secondees and those that operate on LEP business have agreed to the Code of Conduct and signed a declaration to this effect. A briefing session took place on 1 May to ensure that all officers understood what was required of them. 48

49 Hospitality Register 3.7 The Board is asked to note that a specific hospitality policy and register is being introduced for officers, in line with best practice on transparency and accountability. This will require declarations over 25, rather than 50 for Board members, and require monthly notifications This will ensure that team members are guarded against any accusations of undue influence by external bodies. The recipient of the hospitality will enter the following information onto the register: Strategy Date Description of the Gift/Hospitality Organisation offering the Gift/Hospitality Assumed Value Was the Gift/hospitality also offered to a partner. Local Industrial Strategy 3.8 A separate agenda item is provided on the Phase 2 development of the Local Industrial Strategy. DeFRA Health and Harmony Consultation 3.9 UK Government, through the Department of Environment, Food & Rural Affairs (DEFRA), published a consultation document, Health and Harmony: the future for food, farming and the environment in a Green Brexit in which it sought opinion on how farming activity should be supported once the UK exits the EU and is no longer party to the Common Agricultural Policy (CAP). The consultation proposes that public money spent on supporting agriculture should also produce a range of environmental and social benefits, or public goods The Board agreed that the LEP, led by Nigel Wilkinson, should develop a joint response with Cumbria County Council to the consultation, with officers from across the Council s environment, public health, planning and regulatory teams and the LEP s Rural and Visitor Economy Advisory Group working to develop this The Joint Response recognises that farming sits at the core of our rural economy and supports both downstream supply chain and upstream activity, with almost 12,000 people in Cumbria working in farming on a full or part time basis, helping to sustain many parts of the rural economy, directly and indirectly. Agriculture s role in continuing to shape and manage the natural environment of Cumbria also cannot be understated, nor can the role of farming and farmers in providing critical social glue in rural areas. The farmed environment therefore helps underpin the visitor economy, with farming helping to shape the landscape to which 45 million visitors are attracted, annually. Therefore, any changes in farming support and practice could have longer term impacts on the visitor economy. 49

50 3.12 A copy of the joint response is appended at Annex A. Board members are invited to note this and that Nigel Wilkinson, private sector Board member, is willing to answer any questions on this Energy Plan 3.13 The consultation on the Energy Plan has been postponed to ensure that the document is formally approved by the Board prior to consultation; and to allow further development work. This further work will strengthen alignment with the emerging Industrial Strategy, national energy strategy and Borderlands Growth Deal. The Board is invited to agree that the revised consultation draft will be presented to the Board at its next meeting on 15 June Cumbria Coast Line Rail Project 3.14 It was anticipated that the Strategic Outline Business Case (SOBC) for the Cumbrian Coastal Rail project would be submitted to the May Board meeting. However, the costings for development of the Outline Business Case from Network Rail and work on clarifying developers contributions are still to be finalised Jim Jackson led a very positive teleconference with Tricia Hayes, Director General DfT, to discuss the scheme. At this meeting DfT confirmed that they were willing to consider the Strategic Outline Business Case, once the costs had been finalised and developer contributions clarified. In terms of timing it was made clear that the SOBC needed to be submitted by end of May/early June to be considered pre-recess. In order to meet this timescale, it will be necessary to request Board approval to the submission of the SOBC in correspondence. Board members are asked to agree that the SOBC is approved in correspondence A brochure on the scheme has been produced and will be provided to Board members at the meeting, so that they are well sighted on the scheme and its benefits, prior to receipt of the Strategic Outline Business Case, for approval. Programme Delivery Business Support 3.17 Several meetings have taken place with BEIS to discuss the Growth Hub and moving forward to the next contracting round. The LEP now has a very clear understanding of the issues that must be 'designed in' in order to ensure strong performance against the five principles. The LEP Executive team will be working closely with John Coghlan, as Board sponsor, to ensure that the specification addresses these Importantly, BEIS has now agreed to pay 2018/19 funding in advance, rather than arrears, which was the position, when the Chief Executive took up post. At this point in time there is no confirmed timescale for an offer letter, so the Executive is focusing on preparing the necessary paperwork to proceed as soon as an offer letter is received. 50

51 3.19 The LEP is also working with the BEIS Growth Hub Team to develop a local bespoke scale-up workshop. Further details on this will follow in due course. Relationship Management Government 3.20 Richard Harrington, MP, Minister for Business and Industry, kindly offered to meet with the Chief Executive, when he met the Board at its April meeting. This invitation has been followed up by his office, which is looking to secure a June date for this meeting Meetings have or are being scheduled with all key government contacts responsible for the LEP agenda, including BEIS Relationship Managers (Ben Pledger, Sami Falou and Rebecca Bryning); BEIS Growth Hub Team, DIT, DfT, Highways England, Homes England, ERDF and ESF. The Board will be kept updated on the outcomes of these meetings. Local Partners 3.22 An introductory letter has been sent to all key stakeholders including MPs, LA Leaders and Chief Executives and key business and intermediary contacts. Meetings have been or are being arranged to identify the key LEP-related issues for all partners. These meetings are proving very helpful in informing the LEP Executive s work programme The Chief Executive is also attending the next meeting of Cumbria Chief Executives to outline the development process for the Local Industrial Strategy and to update more generally on LEP business. Wider Partners 3.24 Networks are also being re-established with the LEP Network, other LEP Chief Executives, Northern Powerhouse leads and wider partners. This work will be taken forward over the coming months. Developing the Team Resourcing 3.25 Work is underway to develop a more secure and sustainable resource base for the LEP and our ambition to be recognised as a top performing LEP. Discussions are taking place to ensure that current secondees contracts are extended beyond June/July 2018, to provide sufficient time to develop more sustainable funding sources. 51

52 Developing the LEP Executive 3.26 The team is implementing a Toward Excellence Plan, which will cover all aspects of the Executive s work to ensure that these are in delivered in line with best practice expectations. There is also a focus on team development and ensuring that all team members have the necessary support and equipment to do an excellent job. Systems and Processes Information Technology 3.27 There is a need to develop a fully cohesive and consistent set of systems and processes to ensure that the LEP s business is discharged to the highest standards of effectiveness and efficiency. Work is therefore underway to develop a consistent IT system, on which all LEP team members, secondees, loans and associates will operate using a consistent platform and LEP branded materials. Communications Communications Strategy 3.28 The Team is working to develop a communications strategy, which addresses all aspects of the LEP s business. Members are invited to note that a first draft will be presented to the Board for consideration at its June meeting. LEP Newsletter 3.29 The next edition of the LEP Newsletter is being produced and will be circulated to the Board, once available. Events Calendar 3.30 A full events programme is being drawn up to ensure that the Board is fully sighted on all planned events in advance and has the opportunity to shape and contribute to these. This will include the Mobile Coverage in Cumbria event, which was referred to at the last meeting, and the design work for which is currently being developed. Redhills 3.31 A meeting has taken place with the relevant senior leads in Cumbria County Council to review the current arrangements at Redhills. This was a very productive meeting and is likely to result in revised operating terms, which will work more effectively for both parties. Jo Lappin LEP Chief Executive 52

53 Health and harmony: the future for food, farming and the environment in a Green Brexit Joint response from Cumbria County Council and Cumbria Local Enterprise Partnership Serving the people of Cumbria 53 cumbria.gov.uk