Monthly Update                                                   August 2011

Context

The Swindon & Wiltshire LEP has been formed to develop the economy of the sub-region. Its primary focus is to create wealth, jobs and new business opportunities by forging a meaningful partnership between the private and public sectors. The public sector will provide an ‘enabling’ environment that supports economic growth – this will be driven by business through their engagement in the partnership.

The proposal was put to, and approved by, government ministers in July 2011 and was driven by the two business-led Strategic Economic Partnerships (SEPs) for Swindon & Wiltshire. A Working Group has been formed to make the Partnership a reality with an ambition to have a fully formed and operational model in place by the end of January 2012.

August Activity

The Strategic Economic Partnerships (SEPs) – WSEP/SSEP - supported by a secretariat provided by the two unitary authorities have taken the first steps to create the Swindon & Wiltshire LEP, holding the inaugural meeting of the Business Working Group on September 1^st in Chippenham. The respective chairs of the SEPs, Nicky Alberry (Swindon) and Paul Johnson (Wiltshire) jointly chaired this group. Current membership is as follows:-

A number of key priorities were identified with the need for the LEP to be seen as an independent, objective body that brings together the drive from the private sector and the infrastructure support from the public sector so that Swindon & Wiltshire can create the growth, jobs and wealth needed to grow the economy. More information will be available through the respective SSEP/WSEP web-sites until such time as the LEP can resource its own communications channels.

A number of actions have already been agreed that will see the LEP start to deliver against its strategic objectives and raise its profile.

Collecting economic data to help inform decision making – work has started on collating up to date data/research so that future decisions/positions are based on evidence, not anecdote or opinion – bringing a business approach to decisions taken.

Developing plans for much wider business engagement / input – if the LEP is to successfully engage, and retain interest from, the business community in its plans to grow the economy it needs to ensure that it has the right communication channels in place to make that happen. The Working Group is actively seeking feedback/thoughts from the wider community on how this can be best achieved.

Priority Sectors – a number of sectors have already been identified as being those with the potential to grow. The Working Group recognise the need to focus effort rather than dissipate finite resource over too broad a landscape. These are:-

Building wider Strategic Alliances with other LEPs – although the focus is on building the partnership in Swindon & Wiltshire, the Working Group recognises that there are wider strategic issues - transport infrastructure, for example – where there is a need to build alliances to achieve change. The LEP’s location means that it will be looking to all points of the compass to do this - it is a key economic pivot for Southern England.

Trans-Wilts Rail Link /Great Western rail franchise – the Working Group has sent a Letter of Support to the Secretary of State for Transport @ DfT for this proposed service. It has also asked to be involved in the review of the wider regional rail franchise.  Swindon & Wiltshire LEP straddles, and has the benefit from, several strategic rail routes and a rail service that meets the needs of residents and businesses that are served by these routes is economically important.

Further regular monthly meetings are planned to drive the primary objective of having a formalised structure with a properly elected board in place by the end of January 2012. To get the best possible structure for the sub-region, members of the Working Group and the Secretariat will engage with the wider LEP network to find out what works and what doesn’t. These lessons will help form the process.

Around the LEP Network

Paul Johnson will attend the inaugural Government-sponsored national LEP network event on 15 September to start that ‘learning from others’ process. The partnership is already picking up ideas from other LEPs and recent items of interest include:

Worcestershire LEP sets up forum to help firms with planning process

The Worcestershire local enterprise partnership (LEP) has established a support service for companies experiencing barriers to growth as a result of the planning system. The so-called business development forum will be headed up by LEP chairman Tony Hyde.

It will aim to provide advice to businesses looking to expand or relocate and help them overcome hurdles such as delays and complexities in the planning process by acting as a ‘broker’ between businesses, planning authorities and other agencies.

Hyde said: "We’re aware of several examples of where companies are seeking to locate in Worcestershire or where companies are ready to invest in growth but are finding the process far too difficult or time consuming – to the point where they are either giving up on expansion plans or choosing not to locate in Worcestershire at all.

"Our aim is to be the ‘honest broker’- working alongside the planning authorities, county and district economic development teams and other agencies to smooth the passage towards a faster outcome and thereby accelerate the process towards expansion and creation of more jobs."

Business Rates Review

Businesses will want to take a keen interest in how the rates they pay are used in the future and assess how they can influence local policies if they are to be directly funding them. This review, therefore, is a real opportunity to make their voice heard – individually, or better still, collectively. The LEP can provide a conduit for that voice.

Britain’s local government finance system is one of the most centralised in the world, with councils receiving more than half of their income from central government grant. The Government is currently reviewing this system and in the first phase of the review of local government resourcing the focus is very much on business rates.

Currently, councils in England collect some £19bn of business rates each year. But no sooner has the cash come in than it is gathered up by the national Treasury, and then redistributed to councils according to a complex formula. There are a number of perceived disadvantages for councils of this current system:

·        It denies them control over locally raised resources

·        It deprives them of the certainty they need to plan their finances for the longer term

·       It means they do not have any financial incentive to promote business growth in their area

·        It creates a disconnection between the success of local businesses, and the state of their own finances.

The Government plans to change the current system to enable councils to keep a share of the growth in business rates, providing them with a strong incentive to promote local business growth. Any council that grows its local economy will be better off under the new system.

Powers already exist for councils to raise additional revenue through a Business Rate Supplement or through Business Improvement Districts. These will continue, with additional protections for businesses being introduced through the Localism Bill.

The review document is currently out for consultation with a deadline for responses in October – see DCLG website for more information http://www.communities.gov.uk/documents/localgovernment/pdf/1947200.pdf

For further information on the Swindon & Wiltshire LEP please contact the Secretariat:-

Steve Richards (Primary Contact)

E.mail: c2r@sdrichards.demon.co.uk

Mobile: 07748 658230

or

Ian Piper (Swindon focus)

E.mail: IanPiper@forwardswindon.co.uk

DDial:  01793 429256

Alistair Cunningham (Wiltshire focus)

E.mail: Alistair.cunningham@wiltshire.gov.uk

DDial: 01225 713203