Cumbria Local Enterprise Partnership ANNUAL REPORT 2017
FOREWORD George Beveridge, Chairman of the Board Cumbria Local Enterprise Partnership and its partners continue to develop our portfolio of investments and major projects to help boost the county s economic growth. The last 12 months have brought significant economic challenges for Cumbria, from continuing uncertainty over our departure from the EU through to our latest Growth Deal funding allocation being much lower than we hoped. The LEP and its partners worked hard to submit some excellent projects for the county. Along with many other areas, we were disappointed that so few of these were granted requisite funding, and that money was allocated on the basis of population size and whether the area had agreed a devolution deal. However, we have made some good progress in the past 12 months which you can read about in this report. We are investing over 60m across the county to help bring these projects to fruition. Carlisle Lake District Airport will see improvements to its runway and terminal, whilst our flagship Barrow Waterfront site continues to take shape. Road improvements on the A595 and the A590 are progressing, thanks to the economic impact studies on transport connectivity and evidence presented to central government. Cumbria LEP has also represented the county with Transport for the North (TfN) so that our major transport infrastructure priorities are fully understood. We have helped to fund various initiatives designed to improve the county s skills offer, with beneficiaries such as Furness College, Newton Rigg College and the University of Cumbria all opening new facilities in recent months following investments in training for advanced manufacturing, STEM and agricultural disciplines. This year also saw the launch of the new 400m Northern Powerhouse Investment Fund (NPIF) to give SMEs better access to finance. Business support is a cornerstone of our plan to increase economic output and create jobs. Cumbria is making an increasingly important contribution to the prosperity, security and wellbeing of the UK, including new nuclear power and renewables to power the national economy. The county s success is linked to that of the Northern Powerhouse and wider UK economy. Moorside could be one of UK s largest single private sector investments and the largest new build nuclear power station in Europe. With our nuclear partners, we will continue to strongly support developers and we are hopeful that investment partners will be confirmed to ensure this major project goes ahead in the near future. The remainder of this year and next will bring different opportunities and challenges as we strive for stronger economic growth for the county. We are now looking at all our plans to ensure they align with the Government s new Industrial Strategy, as well as continuing to lobby for positive post-brexit outcomes for local business. We are lobbying the government to prioritise skills and bring businesses into schools, where Cumbria is already a top performer. We will ensure that our strategic economic plans reflect these important priorities so that we are well placed to press Cumbria s economic case and to bid for any new funding streams as and when they become available. 2
Cumbria Local Enterprise Partnership Annual Report 2017 OUR GROWTH DEAL INVESTMENT PROGRAMME How over 60m of Growth Deal funding is being allocated: Barrow advanced manufacturing centre Carlisle advanced manufacturing centre Growing our potential Cumbria skills and capital programme South Ulverston infrastructure improvements Ulverston infrastructure programme fl ooding Barrow Waterfront Infrastructure funding devolved majors Port of Workington road access Optimising connectivity Carlisle airport Connecting Cumbria Business fl ood recovery grants Durranhill access improvements Kendal transport infrastructure Lillyhall North Whitehaven Town Centre Carlisle Station Gateway and the Citadels TOTAL 1,126,000 900,000 1,506,000 3,160,000 4,500,000 5,000,000 7,178,470 7,800,000 2,000,000 2,000,000 4,750,000 3,600,000 2,000,000 2,000,000 2,300,000 5,000,000 4,500,000 1,000,000 60,320,470 The Growth Deal programmes are set to deliver the following benefits for Cumbria: An additional 53m in private/public sector investment 4,420 new homes 617,000 square metres of business premises 4,091 new jobs 4,231 new learning opportunities 3
Ready for take off Cumbria Local Enterprise Partnership is supporting Carlisle, Lake District Airport with 4.75m of Growth Deal funding. This will be spent on improvements to the runway and the terminal, enabling flights to start between Carlisle and London Southend, Belfast and Dublin, an international hub. The airport is a key strategic asset for the county. Developing the airport s passenger routes will help maximise Cumbria s tourism potential. It will also allow easier business travel, reinforcing Cumbria s appeal to the nuclear and renewable energy sectors. The airport also has the potential to become a strategically significant logistics hub for the county. On a visit to the county, the Northern Powerhouse Minister Jake Berry MP reaffirmed the strength of the partnership between Government, Cumbria LEP and Stobart Group and their collective commitment to complete Carlisle Lake District Airport s redevelopment for the start of commercial flights in 2018. Growth Deal investment at Durranhill Cumbria Local Enterprise Partnership, in conjunction with the Homes and Communities Agency, invested 2m in a multi million pound infrastructure improvement scheme at Durranhill industrial estate on the outskirts of Carlisle. The completed project has delivered access improvements and site servicing, with the objective of attracting more businesses to this key M6 corridor employment site, boosting the local economy and opening up SME growth and new business start-up opportunities. Durranhill is an important Growth Deal investment which is contributing to the LEP s economic priorities to support infrastructure improvements and exploit the strategic connectivity of the M6 corridor. The work undertaken by Carlisle City Council has included a new road link from Eastern Way into the existing estate road network and access to vacant land adjoining Cavaghan & Gray s Riverbank site which will release more land for development. A further 3.3 ha for development. It also involved the widening of Brunel Way and improvements to electrical infrastructure and landscaping. Invested 2m in infrastructure improvements at Durranhill industrial estate near Carlisle 4
Cumbria Local Enterprise Partnership Annual Report 2017 Green light for A590 improvements at Cross-a-Moor Additional improvements to the A590 in South Cumbria are progressing in the shape of a new roundabout on the A590 at Cross-a-Moor, near Ulverston. Cumbria Local Enterprise Partnership has provided an additional 1.7m investment for this key arterial road connecting Barrow to the M6 corridor. The proposed 6m junction is seen as essential if land allocated for new homes nearby is to be developed. It is also another key milestone in the development and improvement of the A590 as part of the overall transport infrastructure strategy for the area. The A590 is of major importance to employers such as GSK Ulverston and BAE Systems to ensure better strategic connectivity to the M6 corridor, attract new investment and support business growth. Providing an additional 1.7m investment for this key arterial road Waterfront development takes shape Site reclamation and improvement work for the development of Barrow Waterfront is transforming derelict land adjacent to BAE Systems new logistics facility into a business park, creating opportunities for more employment and advanced manufacturing growth. The project has been made possible with a multi-million pound investment from the Local Growth Fund secured by Cumbria Local Enterprise Partnership. The work has included site clearance and levelling, decontamination work, the removal of industrial debris, provision of utilities, landscaping and raised earthworks for fl ood protection measures. The development of this fl agship site within Cumbria s Strategic Economic Plan will nurture the county s advanced manufacturing capabilities, creating more jobs and business opportunities for the town. It is set to provide up to 408,000 square feet of new business space and could help create as many as 1,600 jobs. The masterplan for the development work has been put together by Cumbria LEP and the county council, with consultancy services from Capita Property and Infrastructure Ltd. The 8m project includes 1m from the Cumbria Infrastructure Fund. 5
New investments for Whitehaven, Lillyhall and Carlisle Cumbria Local Enterprise Partnership is to invest 4.5m in a commercial office development for Whitehaven town centre. The aim is to attract investment in and around Whitehaven to maximise regeneration and investment opportunities. This funding will be utilised as part of a broader package of town centre developments, focusing on the delivery of a new, high quality harbourside office scheme. Sixty thousand square feet of new office space will help to support workforce relocations off the Sellafield site, as well as offering accommodation to companies moving into the area to benefit from the nuclear and energy sector. We are also investing 5m in Lillyhall North to develop that employment site and provide new workspace. The funds will be used to unlock 26.6 acres of development land. A 30,000 square foot industrial facility will be developed, and a further 11 acres will be brought forward for future mixed use development. The project aims to create 348 new jobs, safeguard 518 jobs and generate 15m in GVA. Meanwhile, Carlisle Station Gateway and the Citadels will benefit from a 1m investment to support the creation of prime location employment space with the aim of stimulating future associated development close to the train station and historic citadels buildings. 5m in Lillyhall North to develop the employment site and provide new workspace 4.5m for a commercial office development for Whitehaven town centre 1m to help develop Carlisle Station Gateway and the Citadels New bridge connects Carlisle residents A new pedestrian and cycle bridge, connecting Currock and Denton Holme across the Cumbrian Coast Rail Line between Lund Crescent and Bousteads Grassing, is now open in Carlisle. The bridge project forms part of a 7.8m programme of investment in transport and infrastructure in Cumbria, secured by Cumbria Local Enterprise Partnership and Cumbria County Council. It connects the existing footpath via a ramped walkway, providing full access to pedestrians, cyclists and disabled wheelchair users. It also completes a continuous cycle link from Currock along the River Caldew north to Carlisle City Centre and south to Dalston. 6
Cumbria Local Enterprise Partnership Annual Report 2017 Access to more sustainable travel facilities Cumbria LEP has funded the creation of a new transport hub at Workington Railway Station to encourage more sustainable travel and a reduction in traffi c congestion. Cumbria County Council delivered the 3m scheme which has involved building a new car park, drop-off area and improvements to the public area in front of the station. The scheme has also included improvements to pedestrian and cycle access to the station. Image by Story Contracting 7
Accelerating skills development New STEM Labs Students at the University of Cumbria are now benefiting from extended laboratory facilities to support science, technology, engineering and maths disciplines. The new STEM labs at the Fusehill Campus in Carlisle will ensure that greater numbers of students can study for degree-level qualifications in science subjects in Cumbria. With 784,000 from Cumbria Local Enterprise Partnership, the university has invested 3.5m in science teaching and research laboratories. These bespoke facilities have been created in direct response to the increased need for biosciences graduates in Cumbria and an increase in demand from Sellafield for analytical scientists. Advanced manufacturing centres The new Advanced Manufacturing Centres at Furness and Carlisle Colleges, the first of their kind in Cumbria, offer state-of-the-art training facilities to give students access to the latest high-tech equipment and machinery. The 4 million centre at Furness College is now enabling students to develop skills on real-life projects for companies ranging from major employers to SMEs. It includes a metrology lab for the study of materials, learning hub, computer-aided design classrooms and an industrial-size workshop. Funded with 1.1m via Cumbria Local Enterprise Partnership, the 1,663 square metre facility has classroom space for up to 450 higher education students and 1,150 apprentices on science, technology and engineering apprenticeships and HNC and degree programmes in engineering manufacturing and electrical and electronic engineering. The new centre at Carlisle College comprises of a high-tech refurbishment of its existing engineering department, with a simulated production line for training. It has been designed with input on layout from key local advanced manufacturing firms such as Pirelli Tyres and Cadworks. A particular, although not exclusive focus, will be placed upon the food and drink sector with employers such as McVities, Calder Foods and Princes Foods on the doorstep. Supported with 1m in regional growth funding via Cumbria LEP, the centre will deliver an integrated, employer led curriculum at all levels in the engineering, manufacturing and processing sectors. It will cover three distinct disciplines: Manufacturing & Fabrication, Process & Control, and Design & Prototyping. 8
Cumbria Local Enterprise Partnership Annual Report 2017 Support for specialist training for Cumbria s rural development The LEP has invested over 200,000 in a new Sheep Husbandry Centre at Newton Rigg. The centre at Low Beckside Farm, Mungrisdale, is a national showcase for the best hill farming practice, ensuring young people have the key skills they need as the industry s future workforce. Alongside specialist courses for students, it will host farm events and demonstration activities within uplands agriculture and sheep management to show best practice and encourage professional development. Improving Cumbria s transport infrastructure Two new road infrastructure improvement schemes are set to cut congestion on the A595 and A66 between Cockermouth and Workington, reducing journey times for motorists and allowing the roads to cope with future demand from new housing and the Port of Workington. Highways England will spend 1.6m on improving the A595/A66 roundabout at Great Clifton, with a further 1m invested in the Fitz roundabout. These investments follow the West of M6 Strategic Connectivity Study published after consultation by Cumbria Local Enterprise Partnership and Highways England. Cumbria LEP is also spearheading a consortium of parties and developers working with Network Rail to upgrade to the Cumbrian coastal railway. The Rail Programme Board includes NuGen, Sellafield, the Low Level Waste Repository, National Grid North West Coast Connections, West Cumbria Mining, Network Rail and Northern Rail. Plans are aimed specifically at modernisation and improving line capacity and reliability, with increased passenger and freight services including Sundays. Signalling changes, station upgrades and better access will help increase capacity, usage and resilience to protect lines from flooding and coastal erosion, as well as meeting demand from future industrial developments. 9
Access to finance brings more opportunities for growth Cumbrian businesses with aspirations for growth can now tap into the new 400m Northern Powerhouse Investment Fund (NPIF), which aims to provide a wider choice of finance options and produce higher levels of investment across the region. The aim of the NPIF is to change the structure of finance markets for smaller businesses, providing a mixture of loans and equity capital to Cumbrian SMEs at all stages of their development. The NPIF is a combination of capital allocated to the 10 LEPs in the North West, Yorkshire and Humber and the Tees Valley by the European Regional Development Fund (ERDF), a loan from the European Investment Bank (EIB), funding from the Department for Business, Energy and Industrial Strategy (BEIS) and an additional loan from British Business Finance Limited, a British Business Bank group company. For more information, visit www.npif.co.uk EU funding still available for Cumbrian businesses A range of EU funding is still available for Cumbria up to 2020 designed to boost business growth, enterprise and skills development. Cumbria LEP and its partners continue to play a key role in determining how EU funds are invested throughout the county. These programmes and projects continue to support business growth and innovation, create jobs and improve skills levels. A new website - www.cumbriaesif.co.uk is helping potential applicants access each of the funding streams and their relevant programmes. This year has already seen a number of ongoing and new investment programmes delivered under the European Regional Development Fund, including a 2.5m initiative to boost energy efficiency, renewables and low carbon projects. Several European Social Fund initiatives are now underway including the Carlisle College led consortia, The Edge, which continues to deliver skills support for workforce development, apprenticeships and higher level skills. For further information, please visit www.cumbriaesif.co.uk or contact Corinne Watson by email corinne.watson@cumbria.gov.uk 10
Cumbria Local Enterprise Partnership Annual Report 2017 Regional Growth Fund successes continue Raising a glass to business success Cranstons invest for the future The Lakes Distillery Company Ltd has secured a deal to have three of its lines stocked on the shelves of one of the country s biggest retailers. Asda has agreed to sell vodka, gin and whisky produced at the Lakes Distillery in 18 of its stores across the north west. Its customers will be able to experience the Best of British via the company s award-winning portfolio: The ONE, The Lakes Gin and The Lakes Vodka. The Lakes Distillery, which is housed in a restored Victorian model farm, has benefited from a 210,000 investment from the Regional Growth Fund. It opened its doors in December 2014 when HRH the Princess Royal unveiled a commemorative plaque. It has also received the Master award in the Global Distillery Masters 2016 best whisky distillery facilities. Penrith based Cranstons Quality Butchers have completed a 1.5m expansion to enhance their Ullswater Road production facility and complete a refit of their head office. With investment support of 141,450 from Cumbria Local Enterprise Partnership, the firm is meeting increased volume for butchery and delicatessen produce created by the company s recent retail growth. The investment includes a 5,000 square foot extension to its production facility, with a new pie production room and a state-of-the-art beef maturation chiller which dry ages Cranstons beef. Cranstons is one of over 40 Cumbrian firms Cumbria LEP has been supporting with Regional Growth Funding grants to expand premises, increase capacity and develop their respective businesses. Export success for family firm Family-run bakery Bells of Lazonby has used a Regional Growth Fund grant of 45,000 to develop its business. In 2017 the firm sent the first pallet of their We Love Cake branded, gluten-free goodies to Australia. The company will send a massive 200,000 mince pies and 100,000 iced fruit cake slices for customers down under to enjoy for the first time this year. Products will be sold in over 700 Woolworth s stores from September 2017 and throughout the Christmas period. Appetite for gluten free food in Australia is rapidly increasing with almost 20% of new product launches containing a gluten free claim. Bells are already planning to extend their range in 2018 to export more all-year round gluten-free products to the country. 11
Our board & new board members Private Sector George Beveridge (Chair) Representing energy and nuclear and based in West Cumbria Jackie Arnold MBE (Vice Chair) Representing specialist manufacturing and based in Furness Jim Jackson Openreach Regional Infrastructure Director for the North Rob Johnston MBE FCIM Chief Executive of Cumbria Chamber of Commerce Nigel Wilkinson - Managing director of Windermere Lake Cruises John Coughlan - Managing director of TSP Engineering Public Sector Mike McKinley Lake District National Park Authority Prof. Julie Mennell, PhD Vice Chancellor, University of Cumbria Stewart Young Leader, Cumbria County Council Giles Archibald Leader of South Lakeland District Council Colin Glover Leader of Carlisle City Council Alan Smith Leader of Allerdale Borough Council New board members Nigel Wilkinson Managing director, Windermere Lake Cruises Nigel served as a director of Cumbria Tourism for almost ten years and has been previously involved in the county s Visitor Economy sub group and development of the associated sector growth plan. John Coughlan Managing director, TSP Engineering John has a long background in manufacturing and has supported Cumbria LEP with advanced manufacturing development. He has also worked on a range of senior committees, enterprise boards and liaison groups. Giles Archibald Leader of South Lakeland District Council Giles has extensive experience of local economic development and strategic partnerships, including previous work as a nominated representative for Cumbria LEP. Colin Glover Leader of Carlisle City Council Colin is highly experienced in partnership working and his career has included over 20 years in the rail industry, as well as involvement in the Carlisle Highways and Transport Working Group. Alan Smith Leader of Allerdale Borough Council Alan has a wealth of experience of working with partners to deliver key multi-agency priorities. He also specialises in corporate and nuclear issues, strategy and performance. For more information about Cumbria LEP and updates on our work programme, visit www.cumbrialep.co.uk 12