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WORCESTERSHIRE LEP BOARD MEETING

Monday 22nd May 2017, 2.00 pm - 5.00 pm

North Worcestershire Engineering Centre of Excellence, The Brook Building, Arrow Road North, Redditch B98 8NN

AGENDA

THE BOARD WILL FIRSTLY PARTICIPATE IN A TOUR OF THE NORTH WORCESTERSHIRE ENGINEERING CENTRE OF EXCELLENCE STARTING AT 1.30pm

1. Welcome and Apologies

2. Minutes of WLEP Board Meeting on 20th March 2017 (5 mins)

3. Matters Arising (5 mins)3.1 Action List

3.2 Correspondence

4. Growth Deal Programme Update – Ian Edwards (20 mins)

5. Business Intelligence including update on Worcestershire Business Central – Gary Woodman (This item will only be discussed if sufficient time) (10 mins)

6. Connectivity – 5G update – Lorraine Stone (40 mins)

7. WLEP Annual Conference, 1st December 2017 – Rose Padmore (40 mins)

8. Malvern Hills Technology Park Update – Gary Woodman (20 mins)

9. Board Meetings for 2017:17th July 2017

18th September 2017

20th November 2017

1.0 WELCOME & APOLOGIES

PRESENT:Mark Stansfeld (MS) Non-Executive Chair

Carl Arntzen (KA) Managing Director, Worcester Bosch Group

Cllr Karen May (KM) Bromsgrove District Council (rep Northern DCs)

Cllr Linda Robinson (LR) Leader, Wychavon District Council (rep Southern DCs)

Cllr Simon Geraghty (SG) Leader, Worcestershire County Council

Chris Walklett (CW) Partner, Bishop Fleming

Dr Simon Murphy (SM) Non-Executive Chair, Sandwell Local Improvement Finance Trust

Mark Martin (MM) Chair of WLEP Business Board

Nick Baldwin (NB) Chairman, Office for Nuclear Regulation

Prof David Green (DG) CEO & Vice Chancellor of the University of Worcester

Stuart Laverick (SL) Principal & Chief Executive, Heart of Worcestershire College

IN ATTENDANCE:Gary Woodman (GW) Chief Executive, Worcestershire LEP

Ian Edwards (IE) Deputy Chief Executive, Worcestershire LEP

Claire Bridges (CB) Strategy & Partnership Executive, Worcestershire LEP

Lorraine Stone (LS) Connected County Project Manager, WLEP

Diane Dwyers (DD) Executive Assistant, Worcestershire LEP (Note Taker)

Jack Barnett (JB) PR & Communications Executive

Rose Padmore (RP) PCO, Opening Doors and Venues

Jack Hegarty (CM) Chief Executive, Malvern Hills District Council

Graham Pendlebury (GP) DFT, LEP Senior Sponsor

APOLOGIES:None

2.0 MINUTES OF WLEP BOARD MEETING

Monday 20th March 2017, 2.00 pm - 5.00 pm

Heart of Worcestershire College, Heart of Worcestershire College, Deansway, Worcester WR1 2JF

PRESENT:Mark Stansfeld (MS) Non-Executive ChairCarl Arntzen (CA) Managing Director, Worcester Bosch GroupCllr Karen May (KM) Bromsgrove District Council (rep Northern DCs)Cllr Linda Robinson (LR) Leader, Wychavon District Council (rep Southern DCs)Cllr Simon Geraghty (SG) Leader, Worcestershire County CouncilChris Walklett (CW) Partner, Bishop FlemingGraham Pendlebury (GP) DFT, LEP Senior SponsorMark Martin (MM) Chair of WLEP Business BoardNick Baldwin (NB) Chairman, Office for Nuclear RegulationProf David Green (DG) CEO & Vice Chancellor of the University of WorcesterStuart Laverick (SL) Principal & Chief Executive, Heart of Worcestershire

College

IN ATTENDANCE:Gary Woodman (GW) Chief Executive, Worcestershire LEPIan Edwards (IE) Deputy Chief Executive, Worcestershire LEPSharon Rai (SR) Inward Investment Manager, Worcestershire LEPJack Barnett (JB) PR & Communications Co-ordinator, Worcestershire

LEP (Note Taker)Nigel Hudson (NH) Head of Strategic Infrastructure & Economy,

Worcestershire County CouncilClare Marchant (CM) Chief Executive, Worcestershire County CouncilIan Baxter (IB) Rail Strategy and Operations ExpertJudy Chadwick (JC) Skills and Investment Manager and Worcestershire

LEP Skills Lead, Worcestershire County CouncilGraham Pendlebury (GP) DFT, LEP Senior Sponsor

APOLOGIES:Dr Simon Murphy (SM) Non-Executive Chair, Sandwell Local Improvement

Finance Trust

1.

1.1

Welcome and Apologies

Mark Stansfeld (Chair) welcomed the Board and Clare Marchant. Apologies noted from Dr Simon Murphy. MS set out the importance of considering what the future ambitions are for Worcestershire LEP, particularly after 2021.

MS also requested that the Board members should declare any relevant interests. Graham Pendlebury declared a conflict of interest on any conversation regarding Carrington Bridge.

ACTION

2.

2.1

Minutes from WLEP Board Meeting on 30 th January 2017

The minutes were approved and signed off as a true record by the Board.

3.

3.1

3.1.1

3.1.2

3.1.3

3.2

Matters Arising

Action List

GW highlighted the structure of monitoring and evaluation on the economic performance of the County and then on individually invested LEP projects and programmes. An example of this is the recent announcement on Worcestershire continuing to be the top performing LEP regarding GVA Growth again in 2015/6.

MS stressed the importance of public sentiment. SG mentioned that sentiment is measured through Worcestershire County Council’s annual Residential Survey and Business Viewpoint Survey. GW added that latest QES findings show positive feeling. The Board concluded that further thought was required to capture improved perception of the County as a place to do business as well as the ‘hard’ qualitative outcomes.

All other actions are on the meeting’s agenda.

Correspondence

There was no correspondence.

4.

4.1

4.2

4.2.1

4.2.2

4.2.3

Current Status of Funded Programmes

IE introduced the paper and reported that delivery was progressing well on the Growth Deal programme in 2016/2017 and delivery spend was on target.

IE gave an overview of each project in the programme and reported on specific progress and risks for each. In response to specific questions on the programme, the following points were made:

IE highlighted that the Manufacturing & Engineering Training Centre is the only project to have changed slightly as it was originally set to be delivered by Rotec but now can potentially be delivered with South Warwickshire College.

NB recognised the importance of match funding and questioned whether there’s any loss from losing private sector investment. IE pointed out this is acceptable as other Growth Deal projects have been successful without private sector funding.

IE confirmed that £17.5m has been allocated for Worcestershire as part of Government’s Growth Deal Round 3. Delivery will start on the third round projects in 2018 and will reach peak activity during 2020-21.

4.2.4

4.2.5

4.2.6

4.2.7

4.2.8

4.2.9

MS stated that Worcestershire’s Growth Deal third allocation is fantastic in terms of its representation per head of population, in comparison to other allocations. DG added it was great to see strong support for skills based projects. KM highlighted good north/south balance.

KM highlighted a potential gap in overall funding for the A38 delivery. GW highlighted the importance of working with Greater Birmingham & Solihull LEP. KM agreed importance of GBSLEP and making sure there is alignment between the programmes and priorities. MS agreed to speak with GBSLEP over allocations in North Worcestershire and priority programmes.

IE highlighted the table of ESIF projects. A number of ERDF projects are underway and the jobs targets and outputs remain in place. Worcestershire LEP remains one of the top performers for allocation and contracting, but we are yet to see any claims and therefore spend reported.

CM is keen to see which projects have positively impacted local economy, e.g. GVA productivity stat. MS agreed action to create a high level summary of what impacts projects have had.

GP noted that EU objectives will disappear after Dec 2020, national domestic priorities are important after EU funding and GD3 completion. It was important Worcestershire understands the programmes that perform well and those that don’t – and why?

IE reminded the Board that the new structure for the Assurance Framework commits all bodies to publish agendas and minutes.

MS/GW

GW

5.

5.1

5.2

5.3

5.4

Response to the Industrial Strategy

GW mentioned that the deadline for submitting views for the Industrial Strategy is 17th April 2017 and is co-ordinating with national and regional bodies such as The LEP Network and Midlands Engine.

MS actioned a first draft of the LEP’s response to be circulated to the Board by end of week.

CM noted that Worcestershire County Council will be meeting with other County Councils to discuss the Industrial Strategy and some of these messages about growth in County/Shire have been much higher than the urban areas.

GW and MS highlight the importance of clarity and consistency in the message and the importance of communicating the message with Government. DG stressed the importance of being forward thinking.

GW

6.

6.1

6.1.1

6.1.2

6.1.3

Future Projects / Programmes

Connected County

MS gave an overview of the work taking place to make Worcestershire a more Connected County. Worcestershire LEP is taking part in a test drive around 5G mobile and broadband connectivity. Following talks with the University of Surrey, Worcestershire will become one of 5 hubs for 5G test beds in the Country.

GW asked the Board for £100,000 investment from the Growing Places Fund for work with the 5G test beds. The Board approved.

KM stated that rural communities in Worcestershire needed better broadband connectivity.

6.2

6.2.1

6.2.2

6.2.3

6.2.4

Midlands Engine Strategy

GW noted that Midlands Engine Strategy partnership is important and Worcestershire’s delivery is important in the overall delivery. Worcestershire needs to pick up the profile in science and innovation. Cyber Baltimore will return to Worcestershire in June and the Board are encouraged to meet with the delegation.

NB noted that Roy Irish deserves commendation for his hard work with the Fund of Funds.

The Board considered whether the Midlands Engine was working effectively. CA showed concerns that the Midlands Engine doesn’t convey its purpose or goals effectively. MM stated that the Midlands Engine is working effectively and made a strong impact with its representation at the MIPIM 2017 investment event.

Board expressed the importance of making sure that the Midlands Engine continues to represent Worcestershire.

6.3

6.3.1

6.3.2

Inward Investment

SR summarised the recent inward investment work taking place. SR reflected on the recent inward investment partner event which was attended by over 70 agents, partners and champions. The event included the launch of a soft landing toolkit for champions which over 30 companies have already signed up to. KM expressed interest in being involved with discussions regarding the toolkit.

SR noted that an insurance company recently invested in Worcestershire and now wants to be included as part of the soft landing package.

DG raised that although unemployment remains considerably low in Worcestershire, there is a shortage of higher skilled and higher paid jobs to attract inward investment. DG noted that The Times newspaper had recently covered the success of Gtech in Worcestershire.

6.3.3

6.3.4

CM questioned whether there should be more information about investment sites outside of Worcestershire’s four key ‘game changer’ sites. CM suggested that SR and the WLEP Inward Investment team should be meeting with District Councils more regularly (three weekly).

MS asked for a meeting to be arranged and included on the next Board agenda to report back on progress.

SR/SB

7.

7.1

7.2

7.3

7.4

Worcestershire’s Children and Young People Plan:

CM delivered a presentation on the 2017-2021 plan and noted she would like to bring it back to a future Board meeting.

Younger generations of Worcestershire have a mixed quality of upbringing. It is important that the Board considers the aspirations of younger population and consider how we can develop an economic thread for younger people.

MS mentioned that qualitative data is equally as important as quantitative in understanding how younger generations view Worcestershire and posed the question of how to build on this as an action.

CM requested the input of 2-3 Board members to be identified by CM

GW

Board

8.

8.1

8.2

8.3

8.4

8.5

8.6

8.7

Update progress on the Skills Strategy

JC gave an overview of the skills work taking place in the county. Priorities set out in 2012 remain in place. JC recognised good partnership work.

Connecting Schools and Business has helped to develop a strong relationship with schools but communications could improve. Worcestershire Apprenticeships and Careers and Enterprise Company are continuing to be promoted.

Events for young people and parents revolve around staff recruitment and apprenticeship levy. The recent Skills Show saw an attendance of over 1,650 people.

DG was concerned that University Technical Colleges were no longer in Government plans and was not viable for Worcestershire.

CA raised that local manufacturers still have the same skills shortage and the national shift away from University Technical Colleges could have happened a lot sooner.

SG stated a discussion is needed at the next Board meeting. We need a plan of what to do and find funding afterwards.

JC noted that Worcestershire struggles to get additional funding due to its strong employment figures in comparison to rest of UK.

GW

8.8

8.9

CA recommended that a review would be needed for what can replace the solutions that UTCs gave. Input would be needed again from SL and DG

SL recommended focusing on T Levels as part of the skills section of the Industrial Strategy bid.

SL/DG

9.

9.1

9.2

9.3

9.4

9.5

9.6

9.7

9.8

Worcestershire Rail Strategy

NH noted that Worcestershire County Council commenced work on the rail strategy 18 months ago and will be passed internally on June 2017. NH is asking for the LEP’s endorsements.

IB delivered a rail strategy presentation. IB said that rail connectivity is currently poor in Worcestershire. The Worcester to London service has only been running every hour since 2015.

IB and SLC Rail have examined the current situation and highlighted limited connections, infrequent services, limited parking spaces and long journeys as the biggest problems for Worcestershire’s rail.

IB highlighted the importance of Worcestershire’s Parkway Station and the huge significance of getting two trains per hour from Worcester to Parkway Station. Second highest priority is having one train journey per hour from Kidderminster to London.

IB stated the importance of redoubling the Cotswold Line, increasing the parking capacity in Worcester and the master plan for Worcester Shrub Hill.

IB noted that a North Cotswold Line taskforce between Worcestershire LEP and Oxfordshire LEP will be announced in due course. GW stressed the importance of working with Oxfordshire and Lord Faulkner.

KM mentioned the importance of HS2 on the local area.

MS said that a team from the WLEP needs to be created to help progress this work.

Per hour was missed off, to be picked up at the

next Board meeting

GW

10.

10.1

10.2

LEP Budget 16/17 and 2017/18 Report

IE stated that the Finance, Audit and Risk committee endorsed the budget on 16th February 2017.

Board approved Budget.

8. Any Other Business

None

9. Dates of WLEP Board Meetings in 2017

22nd May 201717th July 201718th September 201720th November 2017

3.0 MATTERS ARISING (ACTION LIST & CORRESPONDENCE)

3.1 ACTION LIST

3.1.1 Current Status of Funded Programmes

3.1.1.1 KM highlighted a potential gap in overall funding for the A38 delivery. GW highlighted the importance of working with Greater Birmingham & Solihull LEP. KM agreed importance of GBSLEP and making sure there is alignment between the programmes and priorities. MS agreed to speak with GBSLEP over allocations in North Worcestershire and priority programmes.

Action: Mark Stansfeld/Gary Woodman

3.1.1.2 CM is keen to see which projects have positively impacted local economy, e.g. GVA productivity stat. MS agreed action to create a high level summary of what impacts projects have had. (See Appendix 1 below).

Action: Gary Woodman

3.1.2 Response to the Industry Strategy

3.1.2.1 MS actioned a first draft of the LEP’s response to be circulated to the Board by end of week.


3.1.3 Inward Investment

3.1.3.1 MS asked for a meeting to be arranged and included on the next Board agenda to report back on progress.

Action: Sharon Rai/Steve Butterworth

3.1.4 Worcestershire’s Children and Young People Plan

3.1.4.1 MS mentioned that qualitative data is equally as important as quantitative in understanding how younger generations view Worcestershire and posed the question of how to build on this as an action.


3.1.4.2 CM requested the input of 2-3 Board members to be identified by CM

3.1.5 Update Progress on Skills Strategy

3.1.5.1 SG stated a discussion is required at a future Board meeting with a plan of what to do and find funding afterwards working with the national education system.


3.1.5.2 CA recommended that a review would be needed for what can replace the solutions that UTCs gave. Input would be needed again from SL and DG

Action: Stuart Laverick/David Green

3.1.6 Worcestershire Rail Strategy

3.1.6.1 Ian Baxter highlighted the importance of Worcestershire’s Parkway Station and the huge significance of getting two trains per hour from Worcester to Parkway Station. Second highest priority is having one train journey per hour from Kidderminster to London.

Note: Per hour was missed off, to be picked up at the next Board meeting

3.1.6.2 MS said that a team from the WLEP needs to be created to help progress this work.


3.2 CORRESPONDENCE

No correspondence received.

Appendix 1

Action from Board meeting held on 20th March 2017“4.2.7 – MS agreed action to create a high level summary of what impacts projects have had.”1. Productivity in Worcestershire

1.1. Productivity is the measurement of how efficiently an economy creates economic output (i.e. Gross Value Added (GVA)); i.e. how much added value we create with what is inputted into the economy. The most common form of measuring input, at a local level, is an estimation of the hours worked in the economy, produced by the Office of National Statistics (ONS).

1.2. Productivity is very closely related to living standards and salaries, growing productivity across the economy will result in increased living standards. On a national scale, Productivity has shown low growth since the recession – this challenge, often referred to in the UK as the ‘Productivity Puzzle’, is thought to be rooted in numerous issues across the economy – for example – business innovation and incorporation of new technology, business investment, insufficient skills, variations in use of labour, and regulation and competition.

1.3. In Worcestershire has grown by 3% on average over the last five years, 1st out of the 39 LEPs. It is important to note that Worcestershire’s growth has taken it from a relatively low base (i.e. moving from 37th, out of 39 LEP areas, to 23nd), but is clearly indicative of excellent economic progress made across the country through, effectively, creating more economic output from each individual working in Worcestershire.

2. Why has Productivity grown in Worcestershire?

2.1. The ONS provide some limited detail for what drives productivity growth across broad high-level industries in their estimations – for example, growth in profits, rental income, salaries (and related compensation, such as bonuses). This data has been summarised and categorised below, incorporating local knowledge regarding industrial changes nationally and locally:

2.2. Three sectors are clearly experiencing strong growth in productivity, with a generally stable level of employment but very strong output growth:

(i) Manufacturing. This industry represents £1.89bn in GVA, and 32,000 employees. Strong long-term growth in GVA (4.4%) and a small loss of employees (-0.6%) clearly suggests a strong productivity growth. This is likely due to investment in more efficient machinery and practices, for example to unlock greater automation. The automotive industry has grown in particular here – and is a large contributor towards our local Advanced Manufacturing key sector.

(ii) Information and Communication. This industry represents £506m in GVA, and 7,000 employees, with good long-term GVA growth (3.4%) and mildly negative or unclear employment growth (-1.7%, although this figure is based on estimates rounded to the closet 1,000). This industry is generally highly productive and is likely to be growing based on a broader demand for digital skills and services in the market (e.g. cyber security etc.).The rationale behind a loss of employees is not clear, but could be linked to a requirement for small amounts of highly-skilled labour and a local lack of appropriate commercial space.

(iii) Distribution, Transport, Accommodation and Food. This broad industry contributes £2.2bn to the local economy, incorporating our Tourism industry plus a range of other areas, and employing 69,000 individuals. Strong long-term GVA growth (4.4%) and relatively low employment growth (0.7%) suggests considerable productivity growth within this industry, although the broad grouping does not assist in our interpretation of where this growth is. Despite positive productivity growth, this industry is generally less productive than most others (e.g. more reliant on a larger workforce).

2.3. Two sectors are experiencing strong potential for productivity gains, and are inherently large contributors towards GVA. However, the relationship between these industries and the wider economy, and detail as to what parts of the industry are growing requires further research:

(i) Real Estate activities. This industry represents £1.8bn GVA and 6,000 employees. Long-term growth in both GVA (4.5%) and employment (1.4%) is positive and indicating signs of productivity growth. Notably the very high amount of GVA produced by this industry is worthy of further research by the WLEP Executive and clearly indicative of a more complicated relationship between this industry and the economy (for example, this is defined by the ONS as growth driven by rental income, and not business profits).

(ii) Business Service activities. This industry represents £1.2bn GVA and 31,000 employees, with good rates of long-term GVA (6%) and employment growth (2%). The high GVA growth suggests that this industry is becoming more productive. Unfortunately, this industry incorporates a wide mixture of activities, from head offices, travel agencies to architectural/engineering organisations etc., of which prevents further investigation as to where productivity gains have been made.

2.4. The remaining data available to us presents a range of industries that are unlikely to be key drivers in the county’s productivity growth:

(i) The Construction industry, representing £711m in GVA and 13,000 employees, and is demonstrating good, roughly equivalent, long-term growth in GVA (4.5%) and employment (3.8%). This industry is thought to be a good barometer of the health of the wider economy due to the nature of its market reflecting demand across the wider economy. Economic growth in this sector is positive but not indicative of substantial productivity gains; this growth is likely indicative of the gradual UK recovery of the recession and the associated greater levels of investment that has brought.

(ii) The Financial and Insurance Activities industry represents £388m in GVA and 5,000 employees. This industry is not broadly growing in the long-term in GVA (-0.3%) but appears to be growing gradually in employment (3.1%). Although this industry, in line with what often suggested, is not necessarily a key driver towards productivity gains

within the industry, it is an inherently highly productive industry with typically high salary levels.

(iii) Public administration, Education, Health represents £1.9bn in GVA and 47,000 employees. This industry represents some long-term GVA growth (1.1%) and a mildly negative employment growth (-0.2%). Public spending will be closely associated with the employment variation within this sector, and this sector is not generally driven by large productivity or profit growth (although the data indicates a minority of exceptions, e.g. profitable health or education businesses, exist locally).

(iv) The Agriculture industry, unfortunately, suffers from a lack of quality data available – inhibiting our ability to clearly define its employment size and change. The industry does appear to be a small £134m GVA. Agriculture itself is often thought to be split into smaller loss-making businesses, and larger, sometimes more specialised, businesses (large growers in Wychavon may be a good example of this). The Agri-Tech key sector notably incorporates Food and Drink Manufacturing, of which will be defined by the ONS as part of the successful manufacturing sector.

David IrishResearch Manager

4.0 GROWTH DEAL PROGRAMME UPDATE

WLEP BOARD RECOMMENDATION

That the Board:

1. Notes the outturn position in respect of the 2016/2017 Growth Deal funded programmes;

2. Notes the Growth Deal projects being implemented in 2017/2018.

4.1 2016/2017 Growth Deal Programme

4.1.1 The total Growth Deal budget available in 2016/2017 was £24.153m and I am delighted to be able to report that this budget was defrayed in full against approved projects.

4.1.2 The final outturn against each project is illustrated in Table 1.

4.2 2017/2018 Growth Deal Programme

4.2.1 Of the schemes with a budget in 2017/2018, the three that are yet to be approved by the Board are:

(i) Heart of Worcestershire College Engineering Faculty

(ii) Acquisition of Land at QinetiQ

(iii) The Kiln, Worcester

4.2.2 In terms of the College project, a full application has been received and is currently being appraised by the Executive Team. Once this appraisal is complete, in accordance with agreed procedures, it will be circulated to all Board members for their consideration. I expect to be in a positon to do this before the end of May 2017.

4.2.3 The Kiln in Worcester is in a similar situation and once a full application has been received and appraised, a recommendation will be circulated to all Board members. The Board will recall that The Kiln (http://thekiln.co/) is a capital refurbishment project of a 3,000 sq ft property owned by Worcester City Council for the purposes of developing a new facility for a combination of business networking and co-working for creative, craft and tech small businesses and start-ups in Worcester.

4.2.4 However, in respect of the £1.2m available in 2017/2018 to acquire the QinetiQ land in Malvern, clarity does not yet exist on the agreement to acquire and therefore, the defrayal of this budget should be considered as a risk at this stage. It is recommended that by the time of the July 2017 Board meeting, a clear strategy should be identified that mitigates the potential programme underspend should this scheme not progress as currently intended.

http://thekiln.co/

4.2.5 As reported to the March 2017 LEP Board, no further budget exists for new schemes to be introduced to the programme during 2017/2018. However, a considerable amount of preparatory work is required to ensure that the 4 schemes approved by Government as part of the Growth Deal Round 3 settlement, ie

(i) A38, Bromsgrove

(ii) Pershore northern Link Road

(iii) Relocation of Heart of Worcestershire College and redevelopment of the Copenhagen Street site

(iv) Churchfields housing development access road, Kidderminster

4.2.6 The scheme promoters will be able to reclaim an element of these upfront fees once the scheme is ultimately approved by the LEP Board but this will only be available during 2018/2019.

4.2.7 A breakdown of the 2017/018 Growth Deal budget is also shown in Table 1.

.

Ian EdwardsDeputy Chief Executive

Table 1 – 2016/2017 Outturn

2016/2017 and 2017/2018 Schemes

Planned Spend reported to March 2017 LEP Board

Actual Spend to 31st March

2017Variation 2017/18

Budget

Pershore Lane/Worcester 6 4,672 4,672 0 0

Malvern Hills Science Park phase 5 850 560 -290 446

Flood Alleviation 750 750 0 1,918

Hoobrook Link Road 495 495 0 0

Southern Link Road phase 3 11,222 11,185 -37 0

Broadband 608 608 0 1,792

Parkway Station 2,256 2,928 672 6,144

Kidderminster Railway Station 250 250 0 2,271

Worcestershire Growth Fund 750 580 -170 1,276

Vale Park 210 210 0 0

META 0 0 0 313

QinetiQ Land Purchase 0 0 0 1,200

Park farm, Malvern 425 425 0 0

Centre of Vocational Excellence 950 803 -147 147

North Worcestershire Engineering Centre of Excellence 350 350 0 14

Pershore College - Agritech 75 118 43 382

Inclusive Skills Base Centre 290 219 -71 71

HoW Engineering Faculty 0 0 0 600

The Kiln (Workspace, Worcester) 0 0 0 150

Total 24,153 24,153 0 16,825

5.0 BUSINESS INTELLIGENCE INCLUDING UPDATE ON WBC


a) Acknowledge the need to improve the level of business intelligence understood by the LEP in order to facilitate greater business investment to deliver the SEP.

b) Acknowledge the role of WBC in capturing feedback from the wider business base, including Strategic Businesses.

c) WLEP Executive develops a named target list to invest and expand in the county to be agreed by the Executive Board.

5.1 Background

5.1.1 Given the number of projects that the WLEP and its partners are developing and delivering, it is vital that we have greater intelligence relating to the businesses based in the County. With approximately 97% of all companies in Worcestershire being Small & Medium Enterprise’s (SME’s) it is important that we have a greater understanding of the sectors, specialism and links that our local businesses have to support the overall vision of the County.

5.1.2 With projects such as increasing digital connectivity, the Centre of Entrepreneurship, training and skills strategies, inward investment and the potential for a Sensors Catapult there is a need to ensure these WLEP interventions are backed by businesses to create economic growth through intelligence based interactions with local businesses. As it is the businesses would create the multiplier effect. Ultimately, WLEP is attempting to create a profile and story which matches its vision.

5.1.3 A number of organisations across the partnership engage with the business community in various guises, whether Local Government through the economic development officers, planning department or other regulatory services; Worcestershire Business Central, the Business Representative Organisations (Chamber of Commerce, National Farming Union or Federation of Small Businesses) or other organisations with business engagement teams that are all endeavouring to gather business information.

5.2 Data Sharing

5.2.1 With limited resources across all partners it is important that we co-ordinate and bring together our intelligence into one vehicle. It is appropriate that our Growth Hub, Worcestershire Business Central, acts as this vehicle.

5.2.2 Worcestershire has a data sharing initiative which is in place across public bodies to improve efficiency, effectiveness and design better services. There is much we can do to bring together all the data and intelligence to support economic growth and utilise this information to improve the support to growing companies in the local area.

5.2.3 Recognising that Partners must be compliant with the Data Protection Act under the terms of any agreement is undertaken solely with the consent of the business.

5.2.4 The benefits of developing this approach:

(i) Improving business data being shared which strengthens the WLEPs ability to understand local economy.

(ii) Identifying high growth/potential business to allocate the right resources and services to enable their growth.

(iii) Gaining an ability to share data between government departments and the WLEP/Local Government to further enable targeted at high growth / high potential businesses.

(iv) A greater understanding of the sectors that job growth is coming from.

(v) Identify businesses that could take advantage of public sector interventions – whilst building the case for further interventions, therefore developing markets, build alliances and creating innovative partnerships.

5.3 The Growth Hub - Worcestershire Business Central

5.3.1 The Chamber hosts the Growth Hub on behalf of the Worcestershire Local Enterprise Partnership and Worcestershire Local Government partners. During 2016/17, the service moved to a more proactive model, based around three core principles of engagement, referrals and intelligence. It has a separate Board which is chaired by the Chief Executive of the WLEP.

5.3.2 To support these principles, WBC has a team of Business Engagers actively engaging approximately 10,000 of the 23,000 businesses within Worcestershire and signposting them to business development solutions. The data continually requires cleansing and updating.

5.3.3 The Growth Hub exists to provide simplified access to business support, minimising duplication and the potential for confusion in the market place for SMEs and is a mechanism through which the broader business support offer can be co-ordinated to best effect – whether private and public sector.

5.3.4 A data sharing agreement is established between Worcestershire Business Central and the Greater Birmingham and Solihull Growth Hub, delivered by Greater Birmingham Chambers of Commerce. The feedbacks from these interactions are shared as part of the quarterly monitoring report.

5.3.5 The reporting framework of WBC previously agreed by the Board is as follows:

Timeline Reporting Method and Audience

Quarterly A summary report for each LEP priority sector circulated to all members of WBC Board, WLEP Board and WLEP Business Board to include the following information:

Number of businesses engaged with

Type of engagement (face to face, email, telephone)

Key barriers to growth or business issues identified

Themes and sector specific information - sourced from visits, events, partner surveys, anecdotal feedback from businesses, etc.

Presentation at WBC Board and posting to WLEP Secure Portal.

Half-yearly

Return to BEIS in accordance with Growth Hub Monitoring and Evaluation Framework to include:

Number of businesses and individuals interacted with – split by triage/diagnostic and signposting support (including. all company data)

Number of outward referrals made and take up rate

Customer satisfaction question response rate 100% for med/high intensity referrals

Reported submitted to BEIS and posted to WLEP Secure Portal

5.3.6 This provides the WLEP with headlines messages and an overview of the key economic performance issues from the business community.

5.4 Strategic Business Engagement

5.4.1 Worcestershire County Council has identified the top 100 private sector businesses in the county by employee numbers. This County Council funded programme contracts with the Chamber of Commerce to interact with an identified named list of leading businesses to gather business intelligence and identify barriers to growth.

5.4.2 Currently, this intelligence is not shared by the County Council and HW Chamber of Commerce with any partners. It is proposed that this changes and fits within a reporting structure of Worcestershire Business Central to bring together better knowledge and understanding of those top 100 businesses into the growth hub and WLEP.

5.5 Targeted Investors

5.5.1 Where the combined intelligence of WBC and the Strategic Business engagement contract identifies a potential high growth business, it is proposed to relationship manage these companies using the resource that the WLEP Board previously identified, the Inward Investment Ambassador, Mike Ashton.

5.5.2 Using this approach, we intend developing a target list of about a dozen companies. This should be agreed by the Executive Board to ensure performance measurement of the WLEP investment in these intelligence models.

5.5.3 It should be recognised that some of these companies will be based in Worcestershire, some outside the County. However it is this role of the Inward Investment Ambassador to work with these companies to ensure they invest in the county and their various needs are understood and met by the partners.

Gary WoodmanChief Executive

6.0 CONNECTIVITY – 5G UPDATE


d) Support the signature of an MOU with Surrey University 5G Innovation Centre.

e) Note: Previously allocated a £100k from the Project Development Fund to build and develop a 5G test bed at Malvern Hills Science Park

f) Note: the related Drive trial exercise to create a benchmark of current mobile network service and enable, justify and measure the improvement has reported first outputs.

6.1 Background

6.1.1 We are starting to shape Worcestershire's ambition for a 'connected county' utilising fibre, mobile and sensors to create a network, connecting people and machines. This responds to the overall vision of Worcestershire LEP.

6.1.2 At the WLEP Board meeting in January 2017, the WLEP Board agreed to develop the strategy and business case to intervene in the area of connectivity, whether broadband, mobile or another form of technology.

6.1.3 In realising the WLEP vision, we recognise that developing the digital connectivity will provide the county with the environment and social structure to allow flexible working across a semi urban / rural geography, which will make the county ‘future fit’ for the next digital revolution.

6.2 Our Approach

6.2.1 The 5G Innovation Centre – University of Surrey

6.2.1.1 The 5G Innovation Centre (5GIC) is the largest UK academic research centre dedicated to the development of the next generation of mobile and wireless communications. Bringing together leading academic expertise and key industry partners from all the top providers and infrastructure companies into one shared vision. The 5GIC has looked to define and develop the 5G infrastructure that will underpin the way we communicate, work and live our everyday lives in the future, including working with Government and officials from Department for Culture, Media and Sport.

6.2.1.2 The 5GIC is part of the University of Surrey and has a state-of-the-art test bed for trialling emerging 5G ideas, proving concepts, validating standards and vendor inter-operability testing. The Spring Budget on Wednesday 8th March announced £16m to trail 5G, with further £150m+ approximately to support two further hubs in future financial years.

6.2.1.3 5GIC are attracted by Worcestershire, due to our Cyber pedigree, our interest in Automated Manufacturing and our Telco knowledge and contacts.

6.3 MOU Conditions

6.3.1 In order to progress the 5G trial, the WLEP needs to sign the MOU which covers the development of the 5G Spoke (test bed), this will be located at Malvern Hills Science Park. The MOU commits us to the following:

Stage 1 - Provides deeper collaboration, exchange info and drive relevant standards

Stage 2 – The Spoke to deploy and provide test bed, network connectivity and service trials in target sectors. The hub and the spoke will work together to define architectures etc.

Stage 3 - 5GIC access to physically work in spoke test bed and vice versa.

Note: The Hub will provide the spoke with the 5G core required for the test bed. It is also noted that stage 2 and 3 may require a re-write once plans are in place.

6.3.2 It is envisaged that the signing of the MOU unleashes conversations with 5GIC not only around network design and deployment but also around existing trials that Worcestershire may be able to become involved in.

6.3.3 Note: The previously allocated investment of £100k in capital equipment at the Malvern Hills Science Park will support this technology build.

6.3.4 The board are asked to support the next stage of this partnership with 5GIC and the University of Surrey to bring about the opportunity, by signing the MOU.

Lorraine StoneConnected County Project Manager

7.0 WLEP ANNUAL CONFERENCE 2017

WLEP BOARD RECOMMENDATIONThe WLEP Board is asked to:

Provide feedback on the Conference format and engagement so that this can be this can be finalised during May/June before the event website goes live and registrations open in July.

Save the date for the WLEP Annual Conference 2017 on 1 December 2017.

7.1 Context

7.1.1 The Worcestershire Local Enterprise Partnership has successfully held an Annual Conference for the last six years. This year’s Annual Conference will once again take place at the Chateau Impney Hotel on the 1st December 2017.

7.1.2 Opening Doors and Venues have again been procured as the event management company to deliver the Annual Conference.

7.1.3 At the 2016 Conference, Guy Browning, hosted for the first time and the launch of the Annual Report coincided with the conference.

7.1.4 The previous year’s format included keynote speakers: the Rt. Hon Sajid Javid MP, Guy Browning and Andrew Grant. Interactive interview sessions included Bishop Fleming, PCA Predict, The Smart Actuator Company and Titania.

7.1.5 The 2016 Annual Conference received 535 registrations with a recorded attendance of 395 people, the largest attendance achieved at an Annual Conference.

7.2 Proposal and Delivery/Actions

7.2.1 The 2017 conference agenda has been created largely to inform attendees of the work that Worcestershire LEP has done in response to the business concerns and ideas voiced during the previous conference.

7.2.2 The purpose of the WLEP 2017 Conference is to:

a) Share the latest information on the progress of the LEP in response to the views raised from last year’s conference

b) Provide an annual update on what the LEP are doing and what the LEP has done.

c) Showcase the value of the LEP to Worcestershire Businesses

d) Help with profiling Worcestershire in line with the LEP vision

e) Energise the audience for the future of business in Worcestershire.

7.2.3 The vision of building ‘a connected, creative, dynamic economy that delivers increased prosperity for all those who choose to live, work, visit and invest in Worcestershire’ will be present throughout the programme.

7.2.4 The 2017 Conference will contain four main themes: Connectivity, Skills, Investment Programmes and Inward Investment.

7.2.5 A new host for the 2017 Conference is currently being identified. Opening Doors and Venues have been given the brief to identify a charismatic and engaging host to appeal to a younger audience.

7.2.6 Potential speakers outlined for the 2017 conference include: Margot James MP, Sarah Drinkwater (Head of Campus, Google), Commercial Directors at mobile phone companies (BT, EE, o2, 3) and all three previous winners of Worcestershire Apprentice of the Year.

7.2.7 The 2017 Annual Report will be published to coincide with the Conference to provide further details to those heard during the conference itself and the current draft agenda is included in Appendix A.

7.2.8 The dedicated conference website will be launched w/c 3 July and opened for registrations. Numerous ‘Save the Date’ communications have already been published.

7.3 Feedback from WLEP 2016 Conference

7.3.1 49% of attendees WLEP 2016 Conference attendees had never attended a WLEP Conference before.

7.3.2 Over 84% of delegates rated the event as ‘excellent’ or ‘generally good’.

7.3.3 The host, Guy Browning, was considered to be of the most valuable elements to conference delegates. Speaker presentations were rated second most highly.

7.3.4 The programme content and lunch were highlighted as being the two areas which could have been most improved.

7.3.5 The Board is asked to provide any other feedback so that this can be incorporated into the preparation for the event.

Jack BarnettPR and Communications Executive

Appendix A

DRAFT AGENDA

Worcestershire Local Enterprise Partnership Annual Conference1 December 2017

7:15am – Conference Start

Registration Open - Exhibition, Business Breakfast, Networking & Refreshments

Music opening

Welcome – Mark Stansfeld

Theme 1 – Connectivity

Theme 2 – Programme Delivery

Incidental awards 1 - HOST Exhibition, Clinics, Networking and Refreshments

Surprise Energiser

Theme 3 – Skills

Theme 4 – Inward Investment

Incidental awards 2 – HOST

Closing remarks – Gary Woodman (Call to action from WLEP)

Exhibition, Clinics and Networking/Lunch

1pm – Conference End

8.0 Malvern Hills Technology Park Update


The WLEP Board is recommended to:

a) Note the report and support the development of the Malvern Hills Technology Park

b) Agree to allocate up to £1.5m of Growth Deal funds to implement off-site works as part of a deal to acquire 4.5ha of land from QinetiQ.

8.1 Context

8.1.1 Malvern Hills Science Park (MHSP) is one of the four employment game-changer sites in the Strategic Economic Plan. Approximately 30,000sqft of expansion of MHSP is possible on land already in the ownership of MHSP via Phase 5 and 6 developments. The development of Phase 5 is currently underway and funded by WLEP

8.1.2 The Malvern Technology Centre (MTC) relates to land owned and operated by QinetiQ and is adjacent to MHSP.

8.1.3 In addition, QinetiQ currently owns approximately 14.5ha of non-operational land, hereinafter known as the “expansion land” to the south and east of the MTC.

8.1.4 The development of the “expansion land” is identified within the South Worcestershire Local Development Plan (SWDP) which states that land will only be released for new B1(b) uses in order to ensure that the provision of additional incubator/research facilities will lie within close proximity to similar facilities already in Malvern. This is also in order to “maintain capacity within South Worcestershire for future research-based employment.” As a part of this, provision for 300 dwellings is also provided, with the employment land enabling the housing development.

8.1.5 The SWDP Policy specifically focuses on the “expansion land”, recognising its critical importance in terms of anchoring high technology industry at Malvern. The Policy states that the site will be a mixed-use development, incorporating the following elements:

At least 4.5 ha of B1(b) (or associated) employment land;

Approximately 300 dwellings (amendment from the examination process);

Open space and recreational facilities including children’s play facilities, informal open space, linking to green corridors, such as the common land to the south; and

Provision of facilities to promote improved public transport to the site and new footpath and cycle routes to link to the existing built-up area.

8.1.6 QinetiQ is the main occupier of the MTC site and undertakes a range of cyber security and surveillance and sensor research and operations, much of which is restricted and classified.

8.1.7 The area containing the MHSP, MTC and “expansion land” is collectively known as the Malvern Hills Technology Park.

8.2 Malvern Hills Technology Park Vision

8.2.1 The Malvern Hills Technology Park (MHTP) will provide a significant and sustainable business environment and is an important focus for business investment in Malvern and will make a significant contribution to economic growth of Worcestershire.

8.2.2 The development objectives of the MHTP are:

to create a strategically important employment site, within a campus style environment;

to target ‘technology rich’ manufacturing, research & development offices and ancillary activities;

to attract commercial occupiers, in particular in the short-term, that will generate a substantial number of new jobs and investment; and

To contribute to the sustainable development and growth of Malvern though the quality of access, design, and environmental amenity provided by the scheme.

Add to the financial and operational sustainability of Malvern Hills Science Park and QinetiQ retained or core site.

8.2.3 Further intermediate and tactical objectives are:

Intermediate:

to encourage further development of existing technology rich businesses;

promote the development of sectors identified by the WLEP business plan and emerging Worcestershire SEP

to attract inward investment to Worcestershire that will generate net additional employment; and

To provide a better occupational balance by attracting science, professional, managerial and technical jobs to the area.

Tactical:

to deliver, service, plateau, and landscape site creating an attractive investment proposition;

to promote site and create a quality, sustainable business environment; and

To market the site and generate substantial levels of private sector investment.

8.3 Barriers to Development

8.3.1 Physical Considerations

8.3.1.1 A Masterplan for the development was developed in 2004, however, the site remains undeveloped.

8.3.1.2 The site access and internal road network will need to ensure distinct movement corridors are created to differentiate between employment and residential users. The 2004 Masterplan identified preferred access points and provided some detail for off-site works, however a revised masterplan will need to revisit this work.

8.3.1.3 Any development will need to address the spatial, security and commercial needs of the operators of both MHSP and MHTP. There is not necessarily a single operational solution that fits all scenarios, and the option appraisal will test different solutions to find the most appropriate and deliverable one.

8.3.1.4 In order to develop off site highways solution the Malvern Hills Conservators will have to be satisfied and are by Royal Charter, tasked with conserving the hills and Area of Outstanding Beauty.

8.3.2 Market and Legal Considerations

8.3.2.1 The physical masterplan must be informed by the market, legal and policy considerations. At present there are a number of undetermined factors that need to be addressed.

8.3.2.2 Two separate operating sites – Currently QinetiQ and the Science Park are two completely separate operating units, both in terms of physical arrangement and also in operational and legal terms.

8.3.2.3 Provision of property – Currently, the Science Park has up to 1,100 sqm returning as a result of UTC relocating to Phase 4. Phase 5 will deliver a further 1,500 sqm of space in the next 18 months. This will address the pressing issue of the need to provide grow-on space, and also incubator space for new businesses if an element of floorspace is set aside for this purpose. Certainly that is what is needed to ensure that the Science Park life cycle of creating space from inception to corporate maturity can be maintained.

8.3.3 Security

8.3.3.1 The current List X status and a security fence runs around the perimeter of the QinetiQ core site will need to be maintained but can be reduced.

8.3.4 Affordable Housing Requirement,

8.3.4.1 The SWDP requires 40% all housing developed to be affordable. This is likely to be challenged by the developer of the housing.

8.3.5 Site Valuation

8.3.5.1 The valuation of the site has been discussed as a starting point to determine viability and a price. The District Valuer has been engaged to provide a market price of the employment land.

8.4 Next Steps

8.4.1 The WLEP / Malvern Hills District Council / Worcestershire County Council are in the final negotiations of a price and package of support for the 4.5ha of employment land within the “expansion land”. This package of support is a mixture of cash, public sector works to access the site, consideration of enabling the site to have a single design, also softer measures like enabling the development of a Museum for Radar and Innovation.

8.4.2 Once in public ownership, partners will seek to develop the site in accordance with the requirements of the SWDP and the considerations rehearsed in 8.3 above.

8.4.3 The WLEP will invest to a maximum allocated the £1.5m of Local Growth Fund this financial year to enable the development of the site to enhance the Worcestershire economy.

Gary WoodmanChief Executive

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