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WORCESTERSHIRE LOCAL ENTERPRISE PARTNERSHIP BOARDThursday 26 September 2013 3.00pm - 5.00pm

Yamazaki Mazak UK Ltd, Badgeworth Drive, Worcester, WR4 9NF

AGENDA

1. Welcome and Apologies

2. Minutes from the Board Meetings 25 July 2013 (5mins)

3. Matters Arising (5mins) -Action List-Approvals and Letters of Support

4. EU Investment Strategy - Graham Russell, (35mins)-including Opt In National Programme Summary

5. WLEP Annual Conference - Jan Bailey (10mins)- Preparation update, including the Annual Report & Investment Film

6. LEP Funding and Accounts - Gary Woodman (5mins)- Note Budget and expenditure to date 2013/14

7. Growing Places Report - Gary Woodman (5mins)

8. Finance, Audit, Risk and Appointments Committee (10mins)- Progress - Francis Christie

9. Progress on Skills and Employment Board – Judy Chadwick (15mins)

10. Chair’s Report - Peter Pawsey (5mins)

11. Executive Director’s Report - Gary Woodman (5mins)

12. Feedback from Sub Groups – Dean Attwell (5mins)

13. Any Other Business

14. Dates of Meetings in 2014

LEP Board 2013 Meetings - 3.00 p.m. – 5.00 p.m.28 November 2013 - Coomber Electronics

MINUTES OF WORCESTERSHIRE LOCAL ENTERPRISE PARTNERSHIPBOARD MEETING

Thursday, 25 July 2013 3.00pm – 5.45pmCoomber Electronics, Brindley Road, Warndon, Worcester WR4 9FB

PRESENT:Peter Pawsey (Chair) (PP) Chairman Robert West and Director Midland HeartDean Attwell (DA) MD Oakland International Cllr Simon Geraghty (SG) Deputy Leader Worcestershire County CouncilCllr John Campion (JC) Leader, Wyre Forest District Council (rep

Northern DCs)Ed Webb (EW) Executive Chairman Webbs of WychboldCllr David Hughes (DH) Leader, Malvern Hills District Council (rep Southern

DCs)John Callaghan (JCal) Principal, North East Worcestershire CollegeJacqui Bayliss (JB) Director, Harris Lamb (alternate for Carl Arntzen)

IN ATTENDANCE:Gary Woodman (GW) Worcestershire LEPClaire Bridges (CB) Worcestershire LEPCarole Rudolf (CR) Worcestershire LEPJan Bailey (JBai) Worcestershire LEPJohn Hobbs (JH) Worcestershire County CouncilKim Rowlands (KR) BISTony Bray (TB) BISMarc Bayliss (MB) Worcester-ResearchGraham Russell (GR) AMION Consulting

APOLOGIES:Carl Arntzen (CA) MD Worcester Bosch Thermotechnology Alan White (AW) MD Malvern Hills Science Park

1. Welcome and Apologies

Peter Pawsey (Chair) welcomed the Board, Kim Rowlands, Tony Bray, John Hobbs, Marc Bayliss and Graham Russell. He also noted the apologies and welcomed Jacqui Bayliss as alternate for Carl Arntzen.

2. Minutes of the Board Meeting – Thursday 23 May 2013

The Minutes of the meeting held on Thursday, 23 May 2013 were agreed as a true record.

3. Matters Arising

Action List – 23 May 2013

GW briefly went through the list. The Approvals process was communicated to partners. The Away Day would be a topic of September’s Board. The actions related to the FAR&A Committee are progressing and would be reported at the November Board Meeting.

Growing Places

Round 1:WCCC had claimed their £1.25m and repayments would start on completion of the project. The Hoo Brook Link was allocated £900k but this has not yet been claimed.

Round 2: JVCE – draft heads of terms with the allocation of £100k.

Redditch Eastern Gateway – The environmental studies had been completed and they had therefore drawn dawn their £100k allocation. This project was now being worked through to full planning application by the end of the year.

6th Form College – Have withdrawn their application.

Evesham Country Park – There was an agreed allocation of £1.5m. The project is still going through due diligence.

Marina Point – The project is still going through due diligence with an allocation of £350k.

With a total budget of £5.5m, £4.2m has been allocated with £1.3m outstanding.

There was a brief discussion regarding Worcester Technology Park and the MHSP in terms of utilising the remainder of funds. At this point the Executive Team was looking for clarity on the Public Loans Board project and therefore had not brought a paper to the Board. Also, we are aware of enquiries from 3 other projects, including Bromsgrove Town Centre.

Correspondence & Approvals:

The attached correspondence was noted by the Board.

Approvals – the Board noted the approvals for the ERDF bids on Inward Investment and Proof of Concept fund. The deadline for full submissions is 6 August.

Regional Growth Fund 4 – the outcome of which was welcomed by the Board regarding the Worcestershire Expansion Fund, Redundant Building Grant Scheme and Malvern Instruments.The offer of RGF had been withdrawn from the Worcester Technology Park project. However, the Board re-affirmed their commitment to this project and SG gave assurances following the County Council Cabinet

GW

GW paper to the next

Board

meeting that the local government family were firmly behind this project.

Other Actions: All other actions are covered later in the Minutes.

4. Feedback from Manufacturing Study

Marc Bayliss gave a short presentation on the highlights of the Manufacturing Study.

JC asked if a report on the findings would be available to share. JC also noted that only 50% of businesses who responded required our support. Is this really the case? Marc said that a report would be issued to all Board Members. He commented that the LEP is a fairly new concept, consequently many companies were not aware of who the LEP is or what they can do, which came down to a lack of knowledge.

JB asked for confirmation that 65% of businesses would consider relocating out of Worcestershire. Marc confirmed that this was the case if they found themselves unable to develop within the county.

JCal asked if it was possible to have a geographic breakdown, North, City & South. Marc responded that the survey had been more focused on sectors and company size.

SG asked regarding the premises issue, where 65% were saying their premises were insufficient, particularly larger businesses, was this unusual? Marc responded that this was particularly high and an issue that he did not perceive when commencing the project. It was something for the LEP to consider moving forward and which has been reflected in comments from Redditch businesses in particular.

PP thanked Marc for his efforts and would await the report with interest.

GW to issue report

5. LEP Growth Plan and EU Investment Strategy

GW outlined some of the key points within the report. The Task and Finish Group met for the first time yesterday. Since the comprehensive spending review, government guidance

had just been received, which made the following changes. The Growth Plan was now called the Strategic Economic Plan and that plan would be used to negotiate a growth deal with government.

In aligning the Government and EU funding streams, LEPs’ Growth deals are expected to comprise robust, imaginative and holistic solutions.

The Strategic Economic Plan needs to be in position by Spring 2014 with cross-reference and connections made to the emerging parallel EU Investment Strategy.

We have a budget of 250k per annum to cover input costs over the next two years.

As a priority the LEP is expected to lead the development of the EU Investment Strategy to demonstrate objectives, priorities, proposals

and allocation of supporting resources to enable delivery. We need to submit our EU Investment Strategy in September 2013

and LEPs will receive initial Government feedback in November 2013. A final EU Investment Strategy is required in January 2014 with implementation commencing in March 2014.

The WLEP Business Plan provides a sound starting point as the basis to work up the WLEP Growth Plan.

Tony Bray then gave a presentation (slides attached) highlighting the feedback from the comprehensive spending review, the task facing the LEP and the co-ordination required between local partners.

PP stated that we were in a better place than many other LEPs, particularly in respect of our relationship across local authorities and business.

SG commented that there was much data to absorb and he agreed that a further meeting needed to take place prior to the September Board.

GW to distribute Guidance to all Board Members.

Graham Russell presented a detailed and full analysis using National Statistics and nationally available data (presentation attached).

SG concluded that this was a very useful piece of work as it started to pick out themes and work streams. We must remember that the plan has to be driven by evidence not chasing the money. DH added that this was an excellent analysis which would enable the LEP to understand local government and local government to understand the LEP but now we need to focus on priorities both spatially and thematically.

It was agreed that the LEP would bring together all the Leaders and executive representatives from the Councils to achieve understanding of the opportunity before us. PP added that it was important that we made a case for Worcestershire working across our borders to ensure that we made the most of our assets.

GW concluded by stating that the next stage of the process is split into 3 areas.

1. Evidence base – it was agreed that research and intelligence at WCC would be the library of all local government information and external partners would add their evidence into this library. It was felt that an independent panel with authority would evaluate this evidence base and bring forward recommendations with a robust baseline to build the growth plan on.

2. Vision and Ambition – we need to bring all our partners in the LEP together under one vision, particularly the political element.

3. Delivery – we would need to build capability and capacity to show that we can deliver our plans.

PP extended his thanks to Graham, Tony and Kim.

GW

GW

6. LEP Funding and Accounts

GW introduced the Board Paper and gave a commentary on the 2012/13 accounts, with particular highlights on the Local Transport Body funding, which arrived in late March therefore was carried forward. Also, Central Government core funding under spend was carried forward.

The final year accounts reflected the grant-based approach that the LEP was operating on at the start of the year, whereas the 2013/14 budget monitoring reflected the format of company accounts that would be anticipated. The Board approved the 2012/13 accounts, subject to any work that the FAR&A committee wish to undertake.

The 2013/14 budget monitoring did not include a likely change to the capacity fund which is to be treated in a similar fashion to the core funding, hence zero spend.

The £100k fees which were used as match to the £250k showed a balance transfer in and out under other fees and contributions. The budget position was noted by the Board.

7. Chair’s Report

The Chair’s report was noted with particular reference to the 39 LEP Chairs’ meetings.

8. Executive Director’s Report

GW presented the Employment and Skills Board paper, which outlined progress that the Board had made on the strategy which was developed in 2012.

The QUAD had considered a contribution from the LEP where it was very supportive of the project and the difference it could make to the LEP plan.

SG gave a strong message of support of the programme of activity. Although, it was agreed that a one-year review on a three-year commitment was recommended. PP supported this reiterating that checks and balances be carried out on the way, with a condition of our funding being that the LEP logo be represented on all projects. This was approved by the Board.

GW continued with the EU Funding – Financial Engineering Instruments paper, outlining the regional recycled funds formerly from AWM. Also, looking at a fund of funds which could bring significant resources into the 6 West Midlands LEPs. The proposal to fund the study which would be led by the Regional Finance Forum was agreed.

GW to progress with the Regional Finance Forum

9. Feedback on LEP Sub Groups

DA gave a brief update of the sub groups as reported in the papers. He highlighted his concern that the LEP needed to focus on delivery and the removal of barriers which would be detrimental to the success of Worcestershire businesses. It was felt as a partnership there was more that we could do locally. DA’s concern was that Central Government were not supporting LEPs to maximise their roles.

SG stated that there would always be the issue of the government changing the goalposts. Any local issues picked up should be voiced and this works both ways.

JH suggested the plan mirrored what LEPs wanted, and this was where the partnership needed to focus as this was the sweet spot of success.

KR highlighted that the Growth Deal was not just about money but also the freedom and flexibility that the partners could gain from Government, particularly around planning, skills and pooling resources.

10 National Profile and Promotion

JB circulated the Draft Plan. The sub group had met on Monday and made minor changes to proposals in the plan. Overall the plan looked to progress deliverable PR and promotion activity, not waiting for a county-wide Worcestershire brand. A brief discussion took place on county signage, the message being ‘keep it simple’. A further meeting is scheduled in September.

PP informed the meeting that Press Releases would now be issued to all Board Members by JB. Everyone commented that this would be very useful.

11 WLEP Annual Conference

JB confirmed that the conference will be held on Thursday, 10 October from 8.00 am to 12.30 pm, with an optional ½ hour networking session afterwards. Jan also informed the meeting that a tender process had been followed and subsequently Opening Doors & Venues had been appointed as Conference Organiser.

PP commented that the challenge would be to improve on last year’s very successful conference.

GW stated that the conference agenda would be structured around

reporting back on activities since the launch of the Business Plan, a case study of successes and the way forward.

12 Any Other Business

GW issued the first cut of the LEP Organogram, which was welcomed.

Public Loans Board – a project for each LEP was nominated within the Heseltine Report. WLEP had received positive feedback on the definition of a project being for strategic sites, i.e. the game changers. Discussions were continuing with the WCC about bringing this forward as a project by the September deadline.

PP highlighted the work of the 39 LEP Chairs as opposed to the LEP Network. Also the fact that we were are one of 8/10 LEPs nationally to lead the debate on the future of a National LEP Network.

The Meeting closed at 5.45 pm.

GW/JH

Next LEP Board Meeting

It was agreed that an additional Board Meeting would be arranged for end August 2013. Date and venue to be agreed.

26 September 2013 - 3.00 pm to 5.00 pm Coomber Electronics, Brindley Road, Warndon, Worcester

Item 3 – Action List

1. Away Day would be a topic at the next Board Meeting and the FARA Committee would report in November.

2. Growing Places to report to the next Board Meeting

3. Issue Manufacturing report.

4. Additional Board meeting in August to discuss EU Strategy and Grown Plan.

5. Distribute the guidance of the EU Strategy and Growth plan to all Board members.

6. Progress the Regional Financial Engineering Study.

7. Public Works Loans Board offer to progressed for early September deadline.

Item 3: Approvals and Letters of Support

WLEP BOARD RECOMMENDATIONThe LEP Board is recommended to:

a) Note the submission that was made under the Public Loan Works Board regarding the Game Changer sites.

1.0 Context1.1 On the 19 March 2013 HM Treasury wrote to all LEPs offering access to a

discounted project rate loan. This discounted borrowing rate is made available to support local strategic capital investment projects. This was part of the Heseltine Report feedback from Government.

1.2 The LEP, in consultation with Local Authorities, would agree a project that should benefit from this cheaper borrowing. Worcestershire was allocated a £14m to put together a business case for delivery of the project to start in 2014.

1.3 The previous Board meeting in July agreed the Gamechanger project and a submission was to be made by the 10 September 2013.

2.0 Proposal2.1 Worcestershire has a clear set of development priorities for the county within a

hierarchy of employment land and activity that has emerged from the market and through the local plan and Worcestershire LEP processes. Three of the Game Changers sites would be supported under this scheme.

A) Malvern Hills Science Park Phase FourMHSP facility and operation is a key element in the future economic development of the County and is a driving force behind Malvern Technology Park as a game changer.

One of the priorities in MHSP’s business plan is the development of its own estate to drive operational capabilities. The County Council will invest £4m of the loan in the Science Park to enable the detailed design and construction of a new office building of approx 26,000 sq ft pre let to the former Goodrich Systems now UTC to support their growth and embed UTC in Malvern.

B) Worcester Technology Park Off-site InfrastructureWorcestershire County Council is seeking to provide funding to support the construction of primary highway and service infrastructure to enable the development, and to continue to provide the leadership and co-ordination of the public sector involvement.

C) Hoo Brook Bridge and Link RoadDevelopment of the Hoo Brook Link Road will facilitate the delivery of the wider South Kidderminster Enterprise Park including the Stourport Road Employment Corridor (SREC) and Worcester Road Employment Corridor (WREC). This will have a very significant impact on the local economy and will be a key point in the business case for the scheme.

3.0 Delivery/Actions3.1 Drawdown profile of project rate borrowingLocal Authority Project 2013-14

£m2014/15

£m2015/16

£mTotal£m

Worcestershire County Council

Hoo Brook Link Road 0 0 4.0 4.0


Malvern Hills Science Park

1.0 3.0 0.0 4.0


Worcester Technology Park

0.0 2.0 4.0 6.0

Total 1.0 5.0 8.0 14.0

3.2 The Treasury are likely to feedback a decide in November 2013 and the approval of this offerl still needs to go through the County Council approvals process.

Item 4: EU Investment Strategy

WLEP BOARD RECOMMENDATION

The WLEP Board is recommended to:

a) agree that the WLEP Board will consider the final version of the WLEP EU Investment Strategy for electronic approval by Board members on 4 October 2013 in order to submit the strategy to Government on 7 October 2013

b) note the seven National Programme Opt In Offers to the WLEP and to consider issues and opportunities in principle which will shape WLEP negotiations

c) agree to hold a Special LEP Board meeting in either the week commencing 11 or 18 November in order to consider Government feedback to the outline Strategic Economic Plan and EU Investment Strategy alongside feedback on progress with all National Programme Opt In Offers

1.0 EU Investment Strategy

1.1 Graham Russell, AMION will present the WLEP's emerging Draft EU Investment Strategy for the WLEP Board consideration and an updated timeline is set out in Appendix A for reference.

1.2 Having met with BIS, DCLG and respective Government National Programme Leads, the summary in Appendix B outlines the respective National Opt-In offers. The WLEP has adopted the principle of opting-in unless there is a strong justification and corresponding alternate plan for opting-out.

1.3 It is clear from all initial discussions with all national programmes that the WLEP can indicate, in principle, the intention to opt-in by 7 October 2013. This will then serve as the starting point for continuous discussion and negotiation over the next 6 months. It is intended that the draft WLEP Strategic Economic Plan (SEP) and EU Investment Strategy (EUIS) will be shared simultaneously with each Opt-In lead while WLEP and partners finalise the submission to Government. This will assist national programmes in understand the emerging WLEP strategic ambitions and delivery framework and begins to influence how each national programme delivery should be adjusted towards local WLEP needs and expectations.

1.4 Ultimately, with a confirmed SEP/EUIS in place, the WLEP's starting position for negotiation will be clear to all parties and will aid each specific Opt-In detailed negotiation alongside matching the EU Structural Funds, Growth Deal/Single Pot, other government programmes and local resources.

1.5 Once negotiations are concluded satisfactorily with any national programme, the WLEP will require a Service Level Agreement (SLA) or equivalent to be established which would secure the agreed arrangements, terms and conditions i.e. actions, priorities, targets, funding etc which underpin the WLEP-to-national partnership. Any agreement will incorporate standard performance management

practice including regular monitoring, review and evaluation to ensure each agreement is fulfilling the WLEP ambitions and expectations.

2.0 Next Steps

2.1 The WLEP Board is asked to note the approval process where the final WLEP EU Investment Strategy will be circulated to all Board Members electronically and which will require electronic approval on 4 October 2013. This will ensure that the strategy will be submitted to Government to meet the 7 October 2013 deadline with the WLEP endorsement.

2.2 Subject to the WLEP Board discussion, negotiations with each of the seven National Programme Opt In Offers will commence. The outcomes of all negotiations will be reported to the Special LEP Board being arranged for mid November.

2.3 Given the pace, momentum and importance of discussions, ongoing consultations and negotiations planned for the autumn period, it is recommended that a Special LEP Board meeting is held in mid November. At this point, the WLEP should have received Government feedback to the outline Strategic Economic Plan and EU Investment Strategy submission. A clearer position will be emerging on progress with all National Programme Opt In Offers' negotiations and continuing consultations with key networks and themes will be shaping commitments and proposals for programmes and projects which fulfil the strategic ambitions.

3.0 Partners and Engagement

3.1 A core Government requirement is that the WLEP should incorporate wide stakeholder engagement to help shape its Strategic Economic Plan and EU Investment Strategy. In support of the first WLEP submission on 7 October 2013, the WLEP timeline and integrated consultation strategy will be summarised.

3.2 Since its inception, the WLEP has established stakeholder engagement at the heart of its activities in terms of producing and delivering the business plan. The WLEP continues to broaden and deepen its reach with wide ranging perspectives and interests as Sub Groups and partners develop delivery plans and specific initiatives.

3.3 In developing the Draft SEP and EUIS, the WLEP has ensured that continuing and widespread discussions and consultations with diverse interests have been integral to the process across Worcestershire, with Government and national lead organisations as well as LEPs across the National LEP Network. LEP alliances as well as national programmes are important to facilitate shared synergies between ambitions, programmes and proposals and bids. In particular, given the forthcoming change to the WLEP's remit, consultations have begun with interests from the third sector, civic society, rural areas, housing, new Worcestershire Local Nature Partnership/environment, social enterprise, social inclusion and key representatives form part of the WLEP Task and Finish Group overseeing the SEP/EUIS process.

3.4 Building on the constructive relationship which exists between WLEP and Greater Birmingham and Solihull LEP, a joint meeting has been confirmed for 2

October 2013 to explore how best to connect respective SEP/EUIS commitments to work together in support of beneficiaries in Wyre Forest, Redditch and Bromsgrove.

Appendix A

WLEP Strategic Economic Plan & EU Investment Strategy Timeline 2013/14

Revised 20 September 2013

Timeline ActionsJune 2013 Discussions and meetings held via

WLEP Business Board WLEP Planning Development & Infrastructure SG WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG) Worcestershire Environment Partnership/Local Nature Partnership WCC European Funding Workshop for Stakeholders WLEP Business & Regulators SG WLEP Bilaterals and Collective discussions with other LEPs Special WLEP Business Board (business community consultation)

AMION/GHK Consultancy supporting WLEP confirmedJuly 2013 Discussions and meetings held via

WLEP Social Entrepreneurs WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG) WLEP Bilaterals and Collective discussions with other LEPs West Midlands LEP Event WLEP & LTB Joint Transport/Infrastructure Smart Specialisation Workshop WM LEPs Access to Finance Event/Portal launch Initial individual WLEP Liaison meetings – UKTI, MAS, Growth

Accelerator, TSB WLEP Employment & Skills Board WCC & Social Inclusion (initial scope) Housing (initial scope) National Profile and Promotion SG Individual Local Authority Bilaterals WLEP SEP & IS Task and Finish WLEP Board

August 2013 Discussions and meetings held via

WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG) Individual Local Authority Bilaterals WLEP Bilaterals and Collective discussions with other LEPs WLEP SEP & IS Task and Finish Group Special Local Authority Leaders/Chief Executives Meeting Social Enterprise Focus Group Local Nature Partnership/Environment Network WLEP Sub Groups, Sector leads; Opt-In leads Special WLEP Board meeting

September WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG)

2013BIS Central's Themed Workshops (Partnership and Governance; Monitoring and Evaluation)

BIS WM Opt-In Fair (UKTI, MAS, GA, SFA, BLF, SEWM, DWP) and ongoing individual discussions

Individual Local Authority Bilaterals

WLEP Bilaterals and Collective discussions with other LEPs

Continuing WLEP Sub Groups, Sector leads; Opt-In leads discussions

Worcestershire Local Nature Partnership meeting

WLEP & Natural England LEDE Toolkit workshop

WLEP Business Board

Worcestershire Social Inclusion Workshop

Leaders’ Panel Update

WM LEPs' collective discussion

WLEP SEP & EUIS Task and Finish Group

Worcestershire Rural Focus Group

Worcestershire Social Entrepreneurs Network

WLEP Board 26 September consider Draft EU Investment Strategy for Government Submission

October 2013 WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG)1 October

Submit Draft EU Investment Strategy to Government 7 OctoberGovernment evaluates submission and returns clarification questions to LEPs by mid-October.

LEPs National Network Summit 9 October

WLEP Annual Conference/Annual Report 10 October promote headline ambitions

WLEP SEP & IS Task and Finish Group meeting tbc

Continue work detailing Strategic Economic Plan ambitions; reviewing WLEP governance and partnership arrangements; develop delivery, performance management and financial models; local authorities' shared working model; National Opt In negotiations; Growth Deal preparation and continuing stakeholder consultations

November 2013

Government feedback to WLEP on Draft Strategic Economic Plan & EU Investment Strategy

WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG) 5 November

Formal Government National Growth Board response to WLEP Draft EU Investment Strategy Mid-October Government/WLEP to refine the strategy

November 2013



Leaders’ Panel Update 21 November

WLEP Board 28 November 3pm – SEP/EUIS Progress ReviewDecember 2013

Government confirms WLEP allocation of Structural and Investment Fund

WLEP submission of Draft Strategic Economic Plan to Government

WLEP Business Board 4 December – SEP/EUIS Progress Review

WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG) 3 December



Refine/Amend SEP and EU Investment StrategyJanuary 2014 WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG)tbc


WLEP Board 23 January to approve Final Strategic Economic Plan and EU Investment Strategy


Submit Final Strategic Economic Plan to Government; convert into Delivery from April 2014 onwards

Submit Final EU Structural and Investment Fund Strategy to Government 31 January 2013 for agreement by National Growth Board 31 January 2013

February 2014 WLEP and BIS Liaison (plus DWP, JC+, Defra Cabinet Office, DCLG) tbc


Government National Growth Board agree all LEP EU Investment Strategies by 28 February 2014

March 2014

March 2014

WLEP Business Board 5 March – SEP/EUIS Progress Review

WLEP Board 20 March

WLEP and BIS Liaison (plus DWP, JC+, Defra, Cabinet Office, DCLG)


April 2014 WLEP and BIS Liaison (plus DWP, JC+, Defra Cabinet Office, DCLG) tbc


Convert SEP and EUIS into Delivery Plans alongside agreed delivery models and mechanisms

May 2014 WLEP and BIS Liaison (plus DWP, JC+, Defra Cabinet Office, DCLG) tbc


WLEP Board 22 MayJune 2014 WLEP Business Board 4 June – SEP/EUIS Progress Review

WLEP and BIS Liaison (plus DWP, JC+, Defra Cabinet Office, DCLG) tbc


ERDF and ESF Operational Programmes expenditure to commenceJuly 2014 WLEP and BIS Liaison (plus DWP, JC+, Defra Cabinet Office, DCLG) tbc


WLEP Board 24 July

WLEP submission of Final Strategic Economic Plan to GovernmentGrowth Deals expected to be in place in April 2015

Appendix BOpt-In National Programmes Summary

1. Manufacturing Advisory Service (MAS)

MAS is aligned with the SME competitiveness Thematic Objective based on established foundations. The MAS service is currently delivered by the Manufacturing Advisory Consortium (led by Grant Thornton with WMMC, PERA and SWMAS) using Government funding from BIS. This consortium delivers the service in all areas of the country via local teams. It is a national flagship business improvement service for all manufacturing businesses in England created in January 2012 (from the successful foundations started in 2002). It provides a single common delivery model of strategic and technical advice to help improve the competitiveness of manufacturers. It is nationally co-ordinated, locally delivered and is able to match local LEP ambitions/needs while being available to all manufacturers with aspirations for growth, improving competitiveness and creating jobs. Strategic priorities for MAS include: o Delivery of tailored specialist strategic and technical support to SMEs with the capacity

and ambition to develop advanced manufacturing capabilities and compete internationally;

o Support for supply chain interventions to strengthen and grow the domestic supplier base in key advanced manufacturing sectors in line with priorities identified in BIS’s Industrial Strategies4 for key economic sectors ; and

o More integrated and joined-up delivery with national and local business support schemes so support is easier for SMEs to access and more efficiently delivered.

The national MAS programme supports delivery of a five level advisory service for manufacturers:

Level 1 – provision of a telephone helpline and email/ website contacts; Level 2 – undertaking a manufacturing review with the company to identify the desired future state and identify the actions needed to reach that destination. Level 2 is usually undertaken in person at the company’s premises by a skilled manufacturing advisor; Level 3 – provision of best practice events; one-to-many training events that develop individual and business skills as well as a programme of best practice visits to exemplar companies to better understand best practice. These are delivered at accessible locations across the country; Level 4 – provision of in depth business support interventions with manufacturing firms offering specialist support at different levels depending on the requirements of the business (up to 50% funded). Typically this is between £2k - £3k but can be up to £10k where additional funding is leveraged (e.g. Regional Growth Fund/ ERDF); and Level 5 – active referrals to other support services of use to the client.

After 2015, the MAS offer will be based on a suite of fixed enhancements delivered within the level 1 – 5 model but amplified to meet local need with additional ERDF resource through a mix of:

o additional advisor time to support more firms; o higher grant levels for more intensive consultancy support; and o more best practice or training workshops and events.

o MAS connecting local firms with national centres of excellence regardless of location and provide LEPs with manufacturing intelligence, including benchmarking.

o tailored MAS/LEP enhancements which establish clearer joining-up with relevant local business support offers to ensure the customer journey is easy to access and appropriate to their needs.

The suite of fixed offers is likely to encompass:

o Enhancing the reach of the MAS core offer: Greater reach to priority local manufacturing sectors through the provision of additional advisor time. The opportunity exists for manufacturing advisors to increase the amount of local intermediary networking they undertake. This would enable MAS to reach a wider segment of the local manufacturing business population through engaging with intermediaries client-base, giving talks and engaging face-to-face with potential businesses;

o More intensive support: Funding for in-depth consultancy can increase from £3,000 to a maximum of £10,000 with the addition of ERDF. This support can be focused on local priorities within the scope of the MAS offer, including innovation, operational efficiencies, manufacturing strategy and supply chain diversification; and

o Supply Chain Development: Greater support for local supply chain development through the provision of additional supply chain specialists with links to the Original Equipment Manufacturers (i.e. voice of the customer) and national sectoral bodies. Supply chain specialists would support local cluster developments or support supplier improvement initiatives for priority sectors, including though more intensive support and benchmarking.

Opt In LEPs can use the proposals above to propose enhanced MAS services that would meet the needs of the local manufacturing business base. LEPs can propose other types of project where they are particularly high impact or innovative and it meets the national objectives set within the Industrial Strategy. The MAS delivery consortium would provide the public match funding and where appropriate would use private sector match funds through client contributions for the in depth support.

The enhancements to the MAS offer will be procured nationally with each Opt In LEP securing for its area the full value of the enhancements for which it has paid. The move to a nationally contracted, locally delivered MAS, has ensured a consistent quality of service as well as providing manufacturers with access to the best possible advice regardless of location. It has also enabled the delivery model to be optimised to secure economies of scale while maximising economic outcomes, including by aligning activity with national sector priorities identified in Industrial Strategies; MAS is seen as a key delivery tool for the Industrial Strategy.

Where contiguous LEPs are looking to expand the reach of MAS through shared Growth Hubs or where several LEPs across the country are looking to support supply chains in the same priority manufacturing sectors, economic outcomes will be maximised by working flexibly across geographic boundaries with MAS.

2. UK Trade and Investment (UKTI)

UKTI is aligned with the SME competitiveness Thematic Objective. UKTI helps UK-based companies succeed in the global economy and assists overseas companies to bring their high-quality investment to the UK. Its support programmes include Passport to Export (development help for new and inexperienced exporters), Gateway to Global Growth (support for more experienced exporters), Market Visit Support and the Tradeshow Access Programme (incentives for SMEs to visit overseas markets in Europe and beyond). UKTI helps firms with both intra-EU co-operation and entry into emerging and high growth markets outside the EU.

LEPs have been invited to support the National Export Challenge to encourage an additional 100,000 companies to export by 2020, doubling UK exports to £1 trillion in the same time scale and addressing the relatively poor export performance of UK companies compared to their EU counterparts. Increasing exports offers significant growth by boosting business productivity and delivering genuinely additional new employment, as the chances of displacement are low. The UKTI offer includes:

o evolving the national core service offer while collaborating with LEPs to enhance and localise support with the aim of at least doubling current activity.

o a guarantee of service levels and additional UKTI activity in line with local economic weight/SME populations.

o LEP collaboration builds on long experience in UKTI and its delivery partners in delivering successful EU funded international trade projects and uses UKTI’s public funding (and leveraged private sector funding) as match while LEPs have the opportunity to fully reflect the needs of local companies.

UKTI offers Opt In LEPs the package set out below which evaluations show leads to a 20 fold return for every £1 of public investment.

a) A full time International Co-ordinator post would be fully funded by ESI Funds using UKTI match funding and the role would be to work at a local level to identify and articulate international needs locally. The International Coordinators would:

o Promote the internationalisation agenda at a local level; o Co-ordinate activities across all economic partners, particularly within local government; o Help connect local companies, clusters, networks or other multi-business partnerships to

national and international partners identified through UKTI’s network; o Provide direct UKTI service brokering and signposting support to local businesses; o Act as a local voice for UKTI services and a voice for the locality at a national level; o Provide local economic intelligence and feedback on services; o Work with other International Coordinators to develop wider area schemes; and o Help manage a local UKTI Innovation in Services Fund. o Help align actions supported by ESI Funds at a local level, consider Green and Blue

Growth projects, identify opportunities in supply chains, support aftercare actions for foreign owned companies, develop initiatives with the third sector to connect to the hard to reach, and working with HE to support international graduate enterprise.

b) The International Trade Adviser (ITA) role is shown to be one of the best ways of achieving improvements in SME capability and overcoming the key obstacles and barriers to progress (lack of finance, skills and information). ITAs work with businesses’ management

teams over a significant period of time, helping those with no prior export experience to understand the potential opportunities, and more experienced management teams to build on existing success. Support can help SMEs find contacts and opportunities, develop internationalisation strategies which build sales and manage key export processes and intellectual property and identify skills needs.

c) The UKTI Innovation in Services Fund would create new local services complimentary to the UKTI offer, enhancing and localising support. Opt In LEPs can define the use of these Funds to pilot and test complementary and innovative approaches. In return, LEPs would assign a proportion of LEP allocated ERDF funds. HE, skills, access to finance or innovation match funding would offer even further potential. LEPs opting-in to the UKTI service with around £20k of ERDF per annum per 1,000 VAT registered/ PAYE businesses in their areas (the assignment of match for ESF and EAFRD will be the subject of separate discussions) would be in line with current UKTI ERDF project financing benchmarks. UKTI can offer LEPs at least £1 of public and private match funding for every £1 of ESI Funds which they assign to international activities under these arrangements.

d) UKTI is encouraging LEPs to pool resources with other LEPs to exploit thematic, sectoral and service synergies across LEPs. LEPs that pool resources in this way will benefit from businesses in their area getting access to additional activities that might not be possible at the single LEP level.

e) UKTI is asking LEPs to assign funding for the full seven year cycle in order to help provide stability and consistency of service and underpin the ambitious effort to double national export performance. These arrangements would be subject to a biannual review with LEPs and local partners. Agreements to opt-in will be binding for a minimum of three years.

3. Growth Accelerator (GA)

Growth Accelerator is aligned with the SME Competitiveness Thematic Objective. Growth Accelerator is a national service led by UK growth specialists, providing ambitious businesses with new connections, new routes to investment and the new ideas and strategy they need to achieve their full potential. The current service has a budget of £190 million which is expected to support up to 26,000 SMEs and deliver £2.2 billion GVA and 55,000 jobs by March 2015. Growth Accelerator provides a framework to help companies: build a successful growth strategy; discover new routes to funding and investment; unlock their capacity for further innovation; harness the power of their people; and unite and inspire their leadership team. The service is driven by approximately 120 locally-based Growth Managers across England and includes a rigorous ‘Business Acquisition’ process to actively sign up companies in order to assess their high growth potential and suitability for the service and appoint a matched coach. Support can include:

o Individual, group and master-class Coaching on business development, growth (product, IP, market, culture), access to finance

o Connecting business to local/national facilities to assist the company’s development; specialists (from local Intellectual Property, accountancy, lawyers to national centres and sources of finance (e.g. Technology Strategy Board); local/specialist Networks, Mentors

o Bringing the Growth Accelerator alumni companies together into a growth community

Growth Accelerator targets high growth SMEs based on product/ market potential, management capacity for growth and management ambition to double within 3 years. The service has a target breakdown for support by size of SME: 5% are Start-ups, 10% micro business, 75% smalls and 10% mediums. Companies receive support over a 6 to 18 month period and there is a client contribution to the service which is Micro and start-up businesses (up to 4 employees) – £600; Small businesses (5 to 49 employees) – £1,500; and Medium-sized companies (50 to 249 employees) – £3,000. LEP funded activity may include:

o Access to Growth Support - outreach to local groups and priority sectors through the provision of additional Growth Managers who engage the client-base and widen business reach by assessing commitment to growth, using tools to agree barriers to growth, defining coaching needs and developing a tailored coaching and connectivity plan;

o Growth Receptiveness and Additionality - additional coaching days (to address multiple barriers to growth) and to provide support where ‘stellar’ growth is possible (‘growth additionality’). Each tailored plan will specify the type(s) of coaching required, the extent of the business’ management commitments and the desired outcomes of the coaching e.g. increase sales, ensure new product has clear commercialisation route, preparation of business case and introduction to possible finance sources. The Growth Manager will monitor progress over the intervention period

o Growth Networks - ERDF funding will allow the development of local networks of growth firms eg Science Parks, the low carbon supply chain networks and local knowledge transfer networks.

Delivered by a partnership of private sector business growth experts (Grant Thornton, Pera, Oxford Innovation and Winning Pitch) using Government funding from BIS, this consortium delivers the service in all areas of the country. Opt In LEPs will “give” part of their notional allocations to the consortium and the consortium members will take on responsibility for applying formally to the Managing Authority to draw down the total amount of ESI Funds.

4. Skills Funding Agency (SFA)

The SFA is aligned to skills in the European Social Fund (ESF) thematic objectives 8, 9, and 10 within the 2014-20 European Growth Programme. SFA experience, expertise, systems and processes to deliver ESF-funded skills provision have been built up over a 14-year period and meet the requirements of the Managing Authority and the European Commission. SFA manages ESF delivery to the value of £1.53 billion (60 per cent of the 2007-13 programme) and the current portfolio includes: (i) adult skills provision for both employability and workforce development; (ii) 14–19 provision for those not in education, employment or training (NEETs) on behalf of the Education Funding Agency; and (iii) Community Grants on behalf of the ESF Operational Programme.

The SFA can support the LEP to identify local skills needs and turn this analysis into a robust and evidence-based strategy for skills investment in the LEP area. SFA can help implement that strategy by procuring the right services, running the administration of the skills part of the LEP ESI Funds Strategy, and providing levers to monitor and manage progress.

LEPs determine local priorities and opportunities to which the ESF will be used to respond. SFA offers to develop and operate a complex, bureaucratic and costly system to manage the funds and removes the burdens from local organisations.

By managing large skills programme budgets, SFA can also match all ESF skills funds at source. This means there is no need to find the match funding locally, nor ensure or oversee systems that match individual learner records and other funding to the ESF programme. The SFA system allows the LEP to procure for its area free of charge to LEPs as administration costs will be funded out of the ESF allocation. Arrangements will be set out in a tailored service-level agreement with each LEP providing accountability to the LEP and the Managing Authority. The support we provide falls into a number of categories that are described in this proposal. The benefits of the SFA offer are:

o complete LEP control of ESF funding, supported by professional services to help deliver the skills elements of your strategy;

o takes care of match funding, including systems to administer this; o provides a local service where SFA reports directly to the LEP; o delivers a tailored procurement service to each LEP that complies with all European

procurement legislation; o provides professional advice and support on managing all the EU regulatory

requirements for the LEP; o takes on the financial risk for the repayment of funds where audits highlight concerns on

individual projects or match funding; o reduces the need for other local organisations to recruit and train specialist staff to

procure and contract-manage projects, build and maintain payment and reconciliation systems and claims systems to the Managing Authority;

o reduces the need for other local organisations to invest in systems and processes; o provides efficiencies for the wider ESF programme for the benefit of learners and

employers.

£170 million match funding for ESF skills activities, sourced from within the Adult Skills Budget (ASB) has been made available to LEPs through the Single Local Growth Fund. This match funding will not be allocated to LEPs in the same way as the rest of the Single Local Growth Fund. Instead, an amount will be earmarked for each LEP broadly in proportion to the LEP’s total Structural Funds allocation. To access this match funding for skills activities, the LEP needs to opt into the service offer and will not have to source match funding locally.

5. Big Lottery Fund (BLF)

BLF Offer is aligned with the social inclusion thematic objective and benefits to LEP Opt-In are:

o It is able to flex towards supporting local priorities and delivery and provides a mechanism for the engagement of local civil society organisations (voluntary, community and social enterprise sector organisations) in the development and delivery of local initiatives.

o BLF is the largest lottery ‘good cause’ distributor with extensive local-national networks and brokering abilities through its funding of local projects across England via targeted strategic investment focused on specific themes as well as open, demand led programmes that can support local priority projects across a wide range of themes.

o BLF offers two principal routes to funding giving the WLEP flexibility to take advantage of BLF’s existing, tried and tested funding processes in support of the WLEP’s own local social inclusion and poverty priorities, and to provide a streamlined route to match funding.

o BLF will deploy its resources to support quality, bespoke local projects and ensure a key role for civil society organisations in delivery in line with EU expectations. Projects within strategic investment models are able to access additional specialist support, advice and networks.

o The WLEP is required to route half of its required spending on the social inclusion and poverty thematic objective for at least the first two years of the new programme. BLF will be able to accommodate and match proposals for additional funds beyond that level and beyond the first two years for larger and/or longer-term projects

o Projects would receive both ESF funding from WLEP allocations and match funding from BLF, meaning that the amount being spent in the local area is twice the amount available through ESF alone. As BLF will handle all the administrative requirements around the ESI Funds and match them at source, projects will not have to deal with the complexity of managing two separate funding streams.

o Where two or more LEPs wish to work together on a project or programme to meet shared local priorities, BLF’s national reach means it will be able to pool LEP resources and ensure the project/ programme is delivered effectively

o BLF will manage the grants for an Opt-In LEP as a ‘single funder’ using established monitoring and compliance processes and will be responsible for all relevant paperwork; commissioning and procurement; management of contracts and grants; making payments to project promoters; complying with audit requirements; monitoring and evaluation; and reporting. Aggregation of these administrative functions across LEPs within the BLF organisation will ensure efficiency, minimise administrative burdens on LEPs and local partners, and ensure compliance with EU regulations.

6. European Investment Bank (Social Housing Financial Instrument)

EIB is aligned with the low-carbon economy thematic objective and delivers against the investment priority of “support to build the market in low carbon environmental technologies, goods and services including via domestic retrofit”. Spending on retrofitting social housing will be counted under the low carbon thematic objective although the service will also deliver against other thematic objectives such as:

o Social inclusion & combating poverty; o Employment & supporting labour mobility, by providing local enterprises with

opportunities to deliver energy efficiency improvement works and create employment; o Education, skills & lifelong learning, by offering training and apprenticeships in areas

related to retrofitting (incl. energy assessment) and thus boosting demand for green tech skills as part of the low-carbon economy.

LEPs are invited to invest a proportion of their ERDF allocation into a financial instrument to finance, through low interest long term lending, low carbon investments in social housing (“retrofitting”) in their local area. Supporting energy conservation and low carbon generation in existing social housing will boost green skills training, related employment and support the delivery of low-carbon strategies/sustainable energy action plans for neighbourhoods and localities.

Every £1 million of investment in upgrading the energy efficiency of our building stock will create 22 new direct jobs in the construction sector and that the vast majority of these jobs will be local. In addition, it can be expected that more than 60 indirect jobs will be created to benefit the local economy. Energy efficiency investments carried out on behalf of low income households bring wider economic and social inclusion benefits, tackle fuel poverty and divert household expenditure away from fuel bills and towards more labour-intensive goods and services.

The EIB offer involves:

o EIB establishes and oversees the Fund subject to sufficient interest from LEPs and final approval by the EIB

o for Opt In LEPs, the EIB would procure dedicated national social housing financial intermediaries (fund managers) to invest in project delivery on a repayable basis at LEP level. The fund would utilise LEPs’ ERDF contributions alongside institutional investment funding, including potential EIB investment.

o an Opt In LEP needs to demonstrate a project pipeline with minimum total investment cost of £20 in the LEP area and commit to provide a minimum of £10m ERDF funding

o LEP resources contributed to the financial instrument would be ring-fenced to the relevant LEP area

o with sufficient interest in the model and the resulting financial instrument having the necessary scale, EIB lending and other institutional investment could be used as match for the LEPs’ ERDF contributions, negating the need for match to be secured at LEP level

o Housing Associations would borrow money from the financial instrument to undertake retrofit and potential new build (non-ERDF funded) projects. Repayment of the loan component could be either through a Green Deal type mechanism on a relatively long term basis (pay-as-you-save) or could come from housing associations’ own resources

The model builds on a financial instrument already in operation in London which uses ERDF and EIB funding sources. In addition to providing match funding for the ERDF project, the EIB lending could also be used to support wider (non-ERDF) new build social housing

activity through the financial instrument to provide further value added and leverage on each LEP’s ERDF contribution.

Match funding could be available through EIB lending and other institutional investment, including housing associations’ own reserves. EIB lending to the social housing sector in the UK is expected to be almost £1bn in 2013, and a similar trend should continue in the coming years as EIB remains relatively competitive in this sector. This will include lending for new build and low carbon investment. It is therefore possible to envisage match funding as well as considerably more leverage on a LEP contribution to this fund.

LEP’s contribution to the financial instrument would be ring-fenced to the LEP area and returns generated by project investments would also be reinvested in the LEP area.

LEPs are encouraged to opt-in at the beginning of the 2014-2020 programme period to enable sufficient critical mass for the fund to be created and are required to opt-in for the full duration of the Fund, although it is expected that the actually financial commitment would occur in the first two years of the programme. Repayments are likely to span over a period of 30 years, which is typical of lending arrangements to the social housing sector. These would accrue on an annual basis to allow for some initial return on investment and opportunities for reinvestment at LEP level.

An Opt In LEP will need to make a provisional commitment in its draft ESI Funds Strategy (early October 2013) of at least £10m of its ERDF allocation (indicating a project pipeline with investment cost exceeding the £20m critical mass threshold).

An Opt In LEP should ensure its ESI Funds Strategy indicates the level of interest in EIB investment in new build.

7. Department of Work and Pensions (DWP)

DWP can offer to support Opt In LEP employment activities in the ESI Funds Strategies and is aligned to support Thematic Objectives 8 and 9 as identified in the Framework of European Growth Programme Priorities (July 2013). Apart from long-standing delivery of national and local employment provision, DWP has ten years of experience as a Co-Financing Organisation (CFO) for ESF, and has delivered successful ESF contracts, both large and small, through a number of organisations and providers. DWP works in partnership with all types and sizes of organisations, both private and public, from small, local voluntary bodies to large national employers and provider organisations. Through the nationwide network of Jobcentres, DWP advises and works with a wide range of unemployed people and applies local knowledge of labour markets and provision to help them into work, or closer to the labour market. DWP works with a range of differing client groups with different skills, and can draw on contacts to support LEP employment initiatives, helping to achieve the objectives in LEP ESI Funds strategies and helping individuals to move into work.

DWP has previously used ESF funding to buy additional employment provision locally, that complements DWP’s national programmes and increases the range of provision available to participants. Through our 2008 – 2011 regionally tailored suite of contracts, DWP ESF activity helped approximately 75,000 participants into work. It has allowed participants to access tailored provision relevant to their requirements and those of the local labour market, and has opened up access, or provided early entry, for those who might not have been eligible for mainstream provision. ESF provision has been locally driven and procured to reflect local needs and, in line with ESF objectives, has focused support on those individuals facing the greatest barriers and requiring specialised support. For example, DWP used ESF to fund a range of Flexible Routeways and Intermediate Labour Market (ILM) provision, which ran alongside and complemented the national programmes in place at that time.

The DWP offer includes:

o DWP’s leading role in the provision of national employment activities which is complemented by its local labour market intelligence and focus on local delivery. DWP has expertise in identifying gaps in provision and in understanding provision that works for particular participant groups

o An Opt In LEP can ask DWP to support LEP ESF-funded employment initiatives, and DWP's role would be to tender, procure and manage employment contracts in line with ESF requirements on the LEP's behalf and to manage the necessary match funding arrangements alongside LEP provision

o DWP’s experience as a CFO and knowledge of European Social Fund requirements can help ensure that those requirements, including audit expectations, are addressed as an integral part of the delivery of the LEP’s provision

o DWP's regular contact with a large pool of unemployed people aged 18+ and can be used to promote employment provision and support in getting people into work. DWP Personal Advisers based locally in Jobcentres understand the strengths and potential of people in their area, so DWP can target individuals within a locality, recruiting the right people for the provision that will support wider local plans

o DWP has £4 billion national employment programme contracts making it best placed to identify suitable match funding initiatives to enable LEP ESF-funded employment provision requirements to go ahead. This would include providing assurances to the ESF

Managing Authority and managing any ESF compliance and audit requirements applying to the DWP programmes used to provide match for your provision. DWP will agree regular arrangements to report on delivery, enabling the LEP to give an account of the outputs and targets against which its programme will be measured. The administration cost of this service will be funded from the ESF allocation and the determination of the Managing Authority and will be fully auditable.

o DWP will require LEPs to sign a Service Level Agreement (SLA) which sets out the terms of the service that DWP will deliver for LEPs and will detail the responsibilities of each party.

o DWP can help the LEP meet ESF requirements for added value by ensuring that LEP provision is planned and designed to add value to provision already in place locally, through DWP and others.

o DWP can support the LEP in cross-LEP discussions where similar provision is identified and larger contracts may be an option, potentially achieving economies of scale and better value contracts.

o DWP can draw on a range of providers both at local and national level who have the expertise and experience of working with unemployed people to fulfil your needs. The providers in turn work with a wide range of suppliers, enabling them to include local suppliers in the delivery of the provision.

Item 5 – LEP Annual Conference : Preparation update including the Annual Report and Investment Film


The LEP Board is recommended to note the progress to date with regard to arrangements for the WLEP conference and the development of the WLEP Annual Report.

LEP Board members are requested to register for the conference via the dedicated web portal: http://www.eventelephant.com/drivingworcs and to encourage their business associates and colleagues to also register to attend.

1.0 Progress to date – WLEP Annual Conference

1.1 The event management company, ‘Opening Doors and Venues’, has been commissioned to organise the WLEP Annual Conference, taking place at Worcester Sixways Stadium on Thursday 10 October from 0800 – 1300 hours.

1.2 A dedicated web portal has been set up and has been live since Monday 8 September.

1.3 As at 18 September, 200 bookings have been received

1.4 A new conference logo has been developed:

1.5 A conference timetable has been compiled, as follows. It has not been possible to attract a Government Minister to speak at the event, but we are pleased that Emma Ward, Executive Director at BIS will be speaking.

08:00 Registration, Refreshments & Networking08:45 On the Starting Grid - Welcome & Scene Setting

Penny Mallory, Conference ‘Marshal’

08:55 In the driving seat - Live text poll 109:00 Pole Position - LEP Update

Peter Pawsey, Executive Chairman, Worcestershire LEPHear about the journey so far including some co driver reports on the 4 strategic objectives:

Kate Moss on National Profile & Promotion Roy Irish on Access to FinanceCarl Arntzen on Employment and SkillsJacqui Bayliss on Planning, Development and Infrastructure

09.35 The Road Ahead - A closer look at the Next Generation and other future route planningTrish Haines, Chief Executive, Worcestershire County Council

09:45 Keynote – Emma Ward, Executive Director, BIS

http://www.eventelephant.com/drivingworcs

10:00 In the driving seat - Live text poll 2 & QUESTION TIME10:15 On Track ONE - Positive news from Brintons Carpets Ltd

Emma Fletcher, Director Europe and Central Operations

10:25 Refreshments, Networking & Tweet-Up Meetings10.50 The Scenic Route - Creative Worcestershire

Ben Humphrey, Associate Director at Worcester Rep and Artistic Director, Worcestershire Festivalear more about our creative county and then sit back and enjoy the view!

11:05 In the driving seat - Live text poll 311.10 Put Your Foot Down – Directions for the road ahead

Karl George, Director at The Governance Forum Limited

11:30 Heading in the Right Direction - The LEP EffectGary Woodman, Executive Director, Worcestershire LEPHear more of the journey so far including some co driver ‘good news’ reports (film):

David Leatherdale, Chief Executive, Worcestershire County Cricket ClubAndy Plant, Planning Consultant, St Francis Group, KidderminsterMatt Powell, General Manager, Evesham Vale Growers Ltd

11.50 In the driving seat - Live text poll 411.55 On the Podium - Q & A session with Peter Pawsey and Gary Woodman12:10 On Track TWO – Positive news from Holywell Malvern Spring Water

Ryss Humm, Director

12:20 The Chequered Flag with Penny MalloryInspirational concluding words with some ‘pace notes’ for the road ahead

12:30 The Finishing Line - Conference Close12:35 OPTIONAL Networking and ‘Tweet up’ Meetings

13:30

Departures

1.6 There will be no exhibition at the conference due to there being limited time for networking (this is a morning only event) and space restrictions. However, selected organisations will be invited to supply a logo and text for a scrolling presentation at the start of the conference and during break times. There will also be a supplementary booklet compiled with brief details and contact information.

1.7 We will be using the Twitter hashtag #drivingworcs.at the conference for live comment. We have already been using this hashtag on Twitter to promote the event and will shortly be inviting delegates to use it to set up ‘Tweet up’ meetings on the day.

2.0 Progress to date – Annual Report

2.1 Modus Design have been commissioned to design, produce & print 1,000 copies of an Annual Report for WLEP.

2.2 The Annual Report will focus on main achievements to date against objectives set in last year’s ‘The Future is Bright’ Business Plan. It will also contain outline information and aspirations for the next 12 months.

2.3 The Annual Report is currently being drafted and will be published at the Annual Conference on 10 October.

2.4 The Annual Report will bear the same title as the conference: ‘Driving Worcestershire Forward’.

3.0 Progress to date – Investment Film

3.1 The LEP has commissioned Slinky Productions to produce a short (up to 2 minute) film targeted at inward investors to the county.

3.2 The film is currently in production and will be premiered at the LEP Conference on 10 October.

3.3 The film will include elements of all aspects of the county, including the five key business sectors and different parts of the county. It will be mostly image driven with a punchy sound track and text captions describing positive aspects of investing and living in Worcestershire.

Item 6 – LEP Funding and Accounts


a) Note the Budget Position of 2013/14.

1.0 Context1.1 The LEP with the support of the accountable body Worcestershire County

Council meet bi monthly as part of budget monitoring process.

2.0 Budget Monitoring2.1 The Capacity Fund has been confirmed that it will be rolled into the LEP

Core Funding and reporting will be required at the end of the financial year in terms of spend.

2.2 Local Authority Contributions – Redditch Borough Council has confirmed its annual contribution to the Worcestershire LEP of £10,000 for financial year 2013/2014.

2.3 The Executive team are currently working with Worcestershire County Council to correct the budget heading and amount of budget reported under each heading. Particularly those that are entitled miscellaneous expenditure.

2.4 In expenditure the two definitions of consultancy fees come under the Core Funding budget breakdown and Growth Plan allocations.

2.5 WCCC have claimed their Growing places funding.

LEP Budget Monitoring 2013/14 31/08/2013

INCOME AND EXPENDITURE ACCOUNT

Annual Budget

Income and

Spend to Date (Aug

13)

Committed

(SAP) Commit

ted Remaining

Budget

£ £ £ £ £

Income: Brought forward 130,335 130,335 0 0DCLG - Capacity Fund 25,600 0 0 25,600DCLG - Core Funding 250,000 250,000 0Contributions (LA and access to finance) 146,668 106,668 0 40,000BIS Growth Plan 250,000 250,000 0 0Total Income 802,603 737,003 0 65,600

Expenditure:Research 13,250 0 0 13,250Consultants Fees 45,000 7,758 6,937 30,305Other Fees 78,632 0 5,000 73,632Misc Other Exps 32,853 12,531 38,832 -18,510Hospitality 10,000 1,823 1,922 6,255Conference 20,000 4,511 1,250 14,239Exhibition and Events - Other 41,000 1,474 0 39,526Promotion Expenses 89,000 3,225 0 85,775Other training exps 10,150 0 0 10,150Travel and Subsistence 10,000 0 0 10,000Stationery 5,000 0 0 5,000Printing 5,000 0 0 5,000Misc Services / sub group projects 40,000 0 0 40,000Computers 10,000 7,505 0 2,495Telephone Services 5,000 0 0 5,000Staff Costs 134,536 54,327 80,209 0Expenses 3,182 1,326 1,856 0Consultants Fees 50,000 0 50,000 0Other Fees 200,000 0 0 200,000Total Expenditure 802,603 94,481 186,006 522,116

Excess of income over expenditure (Spend to date & Committed) 0 456,516

CapitalGrowing Places 5,507,372 1,260,013 3,894,000 353,359

Total Capital 5,507,372 1,260,013 3,894,000 353,359

Item 7 Growing Places Report


a) Support the continued activity under the Growing Places Fund.b) Approve the allocation of up to £1.8m of the Growing Places Fund towards the Redditch Eastern Gateway scheme.c) Note the current financial statements

1.0 Context1.1 This paper seeks to update the board on the current position commitments under the Growing Places Fund. It includes an updated financial statement on current commitments and includes a recommendation to proceed with the Redditch Eastern Gateway project, a project identified in the LEP Business Plan as a priority development site.

2.0 Growing Places Financial Summary

2.1 Below is a summary of current financial position with the Growing Places Fund. The statement indicates that the fund is now substantially committed with detailed negotiations with he final committed parties ongoing.

The un-committed balance indicates the level of facility likely to be drawn down by the identified project over the remainder of this year. The board should note that the ongoing due diligence work, professional fee's particularly around security valuation and legal fee's where relevant will reduce the total uncommitted funds by say a further £50,000.

The completion of legal agreements and draw down of funds likely to lake place over the next month will enable a robust cash flow model to be developed projecting repayment profiles and providing a more accurate view on what funds will be available going forward.

Growing Places Reserves Balance 31.3.13 5,507,372.00

Spend since 1.4.13 to dateAdvance and commitment to Cricket Club -1,250,000.00Consultants -10,000.00Appraisals -12.90

Balance at31/08/201

3 4,247,359.10

Commitments at31/08/201

3

Project Management 0.00Game Changer Project -1,000,000.00Redditch Eastern Gateway -100,000.00

Marina Point -350,000.00Evesham Vale Skills Centre -94,000.00Evesham Country Park -1,000,000.00Hoo Brook -900,000.00

Total Commitments -3,444,000.00

Balance uncommitted 803,359.10

3.0 Changes to project Status

Worcestershire County cricket Club: Contract complete and all funds have been drawn down by the Club. The first repayment will flow following completion of the new stand next spring.

Evesham Vale Skills Centre: The heads of terms for the agreement are now agreed and lawyers instructed. Subject to completion of the due diligence report and contract the funds are likely to be drawn down by end of September.

Hoobrook Link Road: The board will recall a proposal to jointly invest with the GBLEP up to £1.2m each in the delivery of the first phase of Hoobrook link road. This proposal has been reduced to £900,000 from each LEP through the detailed contract negotiations. The contact and due diligence reports are nearing completion and funds are likely to be drawn down by the end of September.

Evasham Country Park: The board has committed in principle to invest up to the project. Meetings with the applicant have been delayed a number of times over the summer period. A meeting will take place in early October and the detailed proposal should emerge.

Game Changer project: The Board commitment an allocation to Malvern Hills Science Park: Further funding for the Malvern Hills Science Park was included in the County Councils recent proposal to Treasury for a discount on the PWLB standard rate (see separate paper). This and the continued commitment of the County to the project suggest removal of the project from the budget at this stage.

Redditch Eastern Gateway: The board agreed the funding of the studies to move the project towards planning permission by the end of the year. These have been completed and following negotiations. A more detailed proposal has been received based on a total investment of £1.8m.

In summary, the Redditch Eastern Gateway Site is one of the key development opportunities within the LEP business plan. The Growing Places Fund money will be used to fund planning, detailed design and construction of the new highway and service infrastructure to enable the whole site currently bisected by the primary highway route and owned in two different land ownerships. In return the project will deliver construction activity and circa 85,000 sq m of commercial floor space on 18.9 ha of serviced sites and create and or safeguard creation of in excess of 1500 jobs within WLEP areas over a projected 10 year development programme to 2024.

The project activity will draw down the funds in three phases: an initial period to undertake necessary surveys and prepare and submit outline planning applications for the whole site by spring 2014 including the employment land and detailed access solution; the detailed

design and services solution for the roundabout access; and the construct the access and associated infrastructure from Autumn 2014 onwards.

The proposal is to contract directly with the Homes and Community Agency as landowner of the southern parcel of land, while they are in turn are party to a landowner agreement with the Gorcott estate, owner to the north, capable of seeing delivery of the whole scheme.

The proposal at this stage is for all funding to come from WLEP Growing Places Fund, but discussions with particularly Coventry and Warwickshire LEP but also with Greater Birmingham and Solihull LEP are underway to explore potential for co-funding, and so releasing more WLEP funds.

Item 8: LEP Board Report - FAR&A Committee - September 2013


The LEP Board is recommended to:

1) Adopt the draft Code of Practice for Worcestershire LEP Board Members produced by the FAR&A Committee;

2) Confirm that the main purpose of the FAR&A Committee is to ‘promote good governance across the LEP’;

3) Recognise that the FAR&A Committee are being asked to produce documents and guidelines on governance that do not exist elsewhere. Our support via BIS has been unable to give any guidance or refer to other examples of ‘best practice’. Each document is therefore being created from ‘first principles’ and this will take time;

4) Confirm Board agreement to the FAR&A Committee decision to meet three times a year in line with a revised financial planning and budgeting cycle;

5) Take ownership for defining and managing the following functions at Main Board level:a) Monitoring LEP performanceb) Quality Assurance of LEP decision-makingc) Compliance with ‘agreed protocols and ways of working’d) Monitor allocation & conduct reviews of funding commitments like the Growing

Places Fund and ‘satisfy themselves that due diligence has been undertaken.’

1.0 Context1.1 The Finance, Audit, Risk & Appointments (FAR&A) Committee has met on four

occasions in 2013. First, to review and approve WLEP budgets. Secondly, it met to review its Terms of Reference and plan how it may meet its responsibilities.

Enquiries have been made to establish what guidance or documentation on LEP governance already exists. BIS have not been able to offer specific examples or guidance (see recommendation 3).

This has highlighted the need for clarity about the roles and responsibilities of the FAR&A Committee and the LEP Board (see recommendations 4 and 5 above).

1.2 It is clear that BIS are unable to provide further guidance to the WLEP. The WLEP therefore needs to develop its own policies and standards and to provide the supporting documentation and training to staff and Board members.

2.0 Proposal2.1 The FAR&A Committee have met its responsibilities to review and approve financial

plans and budgets. It has decided to amend the TOR to three meetings p.a.

2.2 The FAR&A Committee have put in place a priority task list and are mapping out the work required to meet their Terms of Reference.

2.3 As part of this planning activity, it has become clear that some of the responsibilities, in the current Terms of Reference of the FAR&A Committee, should be defined and held at the Main Board level.

3.0 Delivery/Actions3.1 The FAR&A Committee will coordinate their meetings to fit with the LEP

budget cycle. Therefore, the cycle of meetings for future years would be: June to review the end of year accounts for the previous year; October for a half-yearly budget review; and February to consider the budget required by the next year’s

business plan.Additional meetings will be arranged, as needed, to work on particular aspects of the FAR&A Committee’s responsibilities.

4.0 Partners and Engagement4.1 Francis Christie will be writing to the members of the Business Board to ask for

examples of ‘best practice’ in the areas of:a) Reviewing and resolving complaints;b) Assessing risk and managing a risk register; andc) Defining job roles and making appointments.

REPORT TO: WORCESTERSHIRE LOCAL ENTERPRISE PARTNERSHIP (WORCESTERSHIRE LEP) BOARD

REPORT FROM: FRANCIS CHRISTIE, CHAIRWORCESTERSHIRE LEP FINANCE, AUDIT, RISK AND APPOINTMENTS COMMITTEE (LEP FAR&A)

DATE OF MEETING: 29 AUGUST 2013

SUBJECT: CODE OF PRACTISE FOR WORCESTERSHIRE LEP BOARD MEMBERS

1. Introduction

1.1 Good governance is essential for the success of any organisation. Board directors or trustees carry an important responsibility to manage organisations and deliver on their objectives successfully but also in a way that enhances public trust and support.This paper sets out the key principles board members of the Worcestershire LEP (or “LEP”) should follow in undertaking their duties and responsibilities on behalf of the LEP. This paper will constitute one of the LEPs agreed policies and will be reviewed on a regular basis and shared with its partners, if requested.

2. Key Principles

2.1 The purpose of the following key principles is to assist board members to provide strong leadership, to enhance their decision making and to demonstrate their accountability. An essential element underpinning all the following principles is the principle of ensuring equality and fair treatment for all sections of the community in which the LEP is involved.

2.1.1 Understand their role

Board directors need to understand their role and responsibilities both collectively and individually in relation to:

their legal duties; their stewardship of any assets or commitments; the provisions of the Worcestershire LEP governance structure; the roles of their partner organisations and related government

departments; the role of LEPs within the external business community; and the LEP organisation and appointed sub-groups.

To achieve this the Board should:

set and safeguard the vision, values and reputation of the LEP; draw-up plans and budgets and implement these for the LEP; oversee the work of the LEP; and manage and support the staff, volunteers and other stakeholders

involved with the LEP.

2.1.2 Ensure delivery of the LEPs stated purposes

The Board will ensure delivery by:

publishing an agreed annual business plan which is reviewed and reported on at each Board meeting;

operational plans and budgets set by and linked to the business plan; monitoring progress and spending against plans and budgets; evaluating results, assessing outcomes and impact; and reviewing and amending plan and budget as appropriate

2.1.3 Work effectively

The Board will have a range of policies and procedures and the knowledge, attitudes and behaviours to enable both individuals and the Board to work effectively:

find and recruit new Board members to meet the needs in relation to skills, experience and diversity;

provide appropriate induction for new Board members; provide all Board members with opportunities for training and

development; and Periodically review Board member’s performance, both as individuals

and as a team.

2.1.4 Effective control

The Board will ensure that:

the organisation understands and complies with all legal and requirements;

it continues to have good internal financial and management controls; it regularly identifies and reviews the major risks to which the

organisation is exposed and has systems in place to manage those risks; and

delegation to committees, staff and volunteers works effectively and delegated authority is done clearly in writing and properly supervised.

2.1.5 Behave with integrity

The Board will:

safeguard and promote the organisation’s reputation; act according to high ethical standards; identify, understand and manage conflicts of interest and loyalty; maintain independence of decision making; and deliver impact that best meets the needs of beneficiaries.

2.1.6 Be open and accountable

The Board will be open and accountable, both internally and externally, including:

communicate business plan to relevant stakeholders and interested parties;

appropriate consultation on significant changes to the organisation’s policies or services;

listen and respond to views of supporters, funders, beneficiaries, service users and others with an interest in the organisation’s work;

handle complaints in a constructive, impartial and effective manner; and

consider responsibilities to the wider community.

2.2 Attached at Appendix 1 (attached) is an extract from the Second Report of the Nolan Committee on Standards in Public Life, May 1996. The principles detailed should apply to all directors or volunteers representing the LEP.

3. Executive Sub Group (extract from WLEP Governance structure)

3.1 In order to manage immediate issues and to ensure the LEP’s ability to react to necessary situations in a timely manner, an executive sub group of the LEP Board should be established, whose actions should only be triggered when full LEP Board involvement cannot be achieved within the required time scale. Such sub group should comprise the Chair, the two Deputy Chairs and the Executive Director. In the event of non- availability, other LEP Board members may be substituted in order to ensure a minimum quorum of 4.

The following table summarises the composition, expected commitments, terms of office and means of appointment for LEP Board members.

Board member category

No. Term of office Time commitment

Method of appointment

Chair 1 Initial 3 years, renewal for a further 3 years maximum

Minimum of 1 day per week.*

Open advertising

Deputy chairs

2 Initial 3 years, renewal for a further 3 years maximum

1-4 days a month

Chairman of the Business Board and nominated by the Leaders Board respectively.

Local government

2 The Leaders Group will appoint/confirm the other local government members annually

1-2 days a month

Appointed by the Leaders Group on annual basis

Business 3 Initial 3 years, renewal for a further 3 years maximum

1-2 days a month

Nominated by Business Board

HE/FE 1 Initial 3 years, renewal for a further 3 years maximum

1-2 days a month

Nominated by ESB

*The time commitment indicated for the Chair reflects the realistic current and perceived future situation and is a minimum in current circumstances, which include considerable demands under his ‘ambassadorial’ responsibilities as well as those of the Board and executive. A longer term strategic target to reduce such input will depend upon the input of others, particularly the Deputy Chairs, and the establishment and ‘maturing’ of a much stronger executive secretariat team.

4. Recommendations

4.1

4.2

The LEP FAR&A Committee promote good governance across the WLEP; the Board is asked to adopt the key principles in the Code of Practise and Appendix to this draft Code of Practice.

The Board issues the Code of Practise and Appendix to all current, serving and new members of the LEP Boards and sub-committees.

ITEM 9: EMPLOYMENT & SKILLS BOARD UPDATE

WLEP BOARD RECOMMENDATIONThe LEP Board is recommended to note the progress made to date by the Employment & Skills Board and consider the key issues identified which the ESB and the LEP will need to consider in light of the changing landscape of skills policy. .

1.0 Context1.1 The Employment & Skills Board is one of four policy boards of the

Worcestershire Local Enterprise Partnership and is responsible for the employment and skills strand of the LEP Strategic Business Plan.

1.2 The Board comprises a mix of businesses and education and skills providers plus advisors from the key funding and commissioning agencies:

Carl Arntzen, ESB Chair – MD, Worcester Bosch

Niall Quinn – HR Director, UTC Louise Hewitt – MD, Hewitt

Recruitment Paul Richards – Head of HR &

Training, OGL Ltd Paul Howard - General Manager,

Rotec Ltd Paul Topping – Headteacher, South

Bromsgrove High School Gail Quinton – Director, WCC John Callaghan, Principal, NEW

College

Marcus Burton – MD, Mazak Bill Munn – Director, Thomas Vale

Construction Alex Cormack – Director, Rockline

Industries Ltd Kay Dovey – Head of HR & Training,

Festival Housing Ltd Tim Gulliver – Headteacher, King

Charles 1 School Lindsey Cooke – Headteacher, Hanley

Castle High School Mark Richardson – Head of Business

School, University of Worcester Stuart Laverick – Principal, Worcester

College of Technology

1.3 Paul Alekna (MD, e-Response Ltd) is also co-opted to the ESB from the Business Board to support the work on connecting schools with business (see below).

1.4 Senior managers from the Skills Funding Agency, National Apprenticeship Service and Jobcentre Plus also attend Board meetings in an advisory capacity. Worcestershire County Council is the lead partner for this strand of the LEP Business Plan and provides the ESB secretariat support.

2.0 Employment & Skills Strategy

2.1 The Board has been in operation since February 2012 and was set the task of developing an employment & skills strategy for the LEP, which would form a key component of the wider Business Plan. Over a six month period it shaped and developed the framework of the strategy with over 100 organisations from the public, private and voluntary sectors actively contributing to the themes and

priorities. The strategy was formally adopted by the LEP Board in July and incorporated into its wider Strategic Business Plan.

2.2 The strategy aims to focus on a relatively small number of key areas where the ESB can focus energies, resources and facilitate joint working across the business community and other stakeholders, rather than be the solution for all employment and skills issues.

2.3 The strategy is built around three key strategic themes: Skills and Workforce Planning – increasing apprenticeships, improving

talent management and increasing private sector investment in skills Strengthening the relationship between schools and businesses –

building a clearer picture of skills required and harnessing opportunities created under academy status

Increasing employability - addressing youth unemployment, developing graduate level opportunities and building better mechanisms to identify job opportunities and support local recruitment and helping small business recruit

3.0 Delivery/Actions3.1` Following adoption by the LEP Board of the Business Plan in September 2013

the ESB has been focused on progressing the delivery of the Employment & Skills Strategy. The latest performance tracker, which is a standing item for discussion at each ESB meeting, is attached as Annex One.

3.2 At a headline level:

Apprenticeships have increased to 5700 starts in 2011/12 (incl. 50% increase at Level 3) 2012/13 figures due in October.

Schools and Business programme has 25 of Worcestershire's High Schools signed up, with six schools committed to the pilot due to start in November 2013.

Key skills sector initiatives have been undertaken for engineering and cyber security including the commencement of creating a new engineering facility and a UK cyber training centre.

4.0 Key Issues Moving Forward 4.1 As the Government continues to roll out its thinking behind its Responsiveness

and Rigour Skills White Paper, it is clear that there are a number of emerging challenges which the LEP, through the ESB, will need to consider and respond to:

1) The changing Skills Policy Landscapeo Continuing to keep the employer voice front and centreo The strategic skills priorities for Worcestershire are articulated to

inform the Skills Funding Agency regarding decisions and allocation to Further Education and Training Providers.

2) Receive the analysis of data returns to be able to understand and monitor performance. This is issued by the Skills Funding Agency – with particularly relevance to adult skills provision in Worcestershire.

3) Identifying and recommending FE capital investment in Worcestershire.o Particular reference to setting the criteria for decisions.

4) Lead the oversight of the Strategy and SFA commissioning.5) Finally, it is about capacity building for the ESB members to acquire the

skills and knowledge to be able to perform this role.

Worcestershire Employment & Skills StrategyDelivery Plan Performance Update

Employment & Skills Board – 23rd September 2013

Strategic Objective

Description Outputs/Targets Activity Progress RAG Lead Partners

Theme 1 - Skills and Workforce Planning

Apprenticeships expansion

10,000 new apprenticeships

40% increase in level 3 starts

250 Level 4 apprenticeships

10% increase in engineering apprenticeships

Roll out of Worcs Apprenticeship AGE Grant (ringfenced for 1000 SMEs) via WBCl

Study of advanced and higher level apprenticeship in Worcestershire

'The Real Apprentice' campaign inc

Development of an employer-led Engineering Skills Academy (piloted in Redditch then Countywide)

Awaiting latest numbers from NAS. Colleges report that 200+ grants awarded

Higher Level Apprenticeship Fund Paper will be presented in Sept 2013

2011/12 5700 starts (inc 50% increase at L3. 2012/13 figures due in Oct)

MAS Interim Findings received. Will be discussed at Sept ESB meeting

Green County Council

NAS H&WTPA

NEW College County

Council Manufacturing

Forum Redditch

Business Leaders

Redditch BC

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Strategic Objective


New Cyber apprenticeship established

Development of new framework with employers

National employer panel shaping proposals (e-skills)

to be launched Sept 2013

E Skills Malvern Cyber

Security Cluster

County Council

Theme 1 Skills and Workforce Planning

Workforce Skills Development Talent management and succession planning

500 newly qualified professionals employed through cyber sector

5000 Individuals gain

Development of the National Cyber Security Training Centre at Malvern Hills Technology Park

Development of

Cyber Strategy approved by LEP Board in May 2013

Business case approved by WCC investment Board.

LEP commissioned research re Operating Model. Report expected mid Oct 2013

Business case

Amber E Skills Malvern Cyber

Security Cluster

County Council

County Council

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Strategic Objective


Leadership & Management qualifications

Worcestershire Leadership & Management programme via Worcestershire Business Central

Launch of LEP 'Employer Skills Commitment'

being shaped for Sep WCC investment board development

Pera Worcestershir

e FE Colleges Uni of Worcs

Theme 2 – Strengthening Relationship Between Businesses and Schools

1000 new work experience and internship places made available by schools by 2016

Consistent careers guidance framework established

Development of Worcestershire work experience programme

Development and roll out of coherent careers guidance in

Strategy endorsed by WASH on May 14th

Tender Work Experience Portal published. Responses due in Oct 2013

Agreement on Sep 2013 roll out.


WASH

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Strategic Objective


and delivered across all Worcestershire High Schools

Min of 50% Academy High School engaged/embedded in curriculum activities

Increase numbers of school Governors from local businesses by

high schools across Worcestershire

Roll out of Bright Sparks Skills Development Pilot

Develop Curriculum to include STEM,Design Tech and Enterprise

INSET Teacher's Training on Economy, employment & local labour markets

Governor recruitment campaign to increase

Pilot with 6 schools commencing Nov 2013

Work Packages being progressed

25 High Schools now committed

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Strategic Objective


20% by 2016 business representation on school boards

Theme 3: Increasing Employability, Addressing Youth Employment

Creation of Graduate opportunities, Improving employability skills of graduates and attracting/retaining graduates within Worcestershire.

Developing 750 internship places by 2016

Graduate wage subsidy programme

Increase activity with Graduate advantage

Improve links between business and local/surrounding universities

Agreement signed with DCLG. Delivery to commence in Oct 2013


HEIs Worcester CC


Ensuring national programmes to address unemployment deliver for Worcestershire

25% reduction in the numbers of 18-24 olds in receipt of Job Seekers Allowance in Worcestershire by 2016

Big Lottery announced investment of £1million to address18-24 unemployment.

June 2013 – Project delivery plan to be submitted

October 2013 –

Project development within the timescales provided by BIG Lottery. As per the implementation plan the delivery will start by

Green Shaw Trust

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Strategic Objective


Grant received from Big Lottery

January 2014 – Project Delivery commences

January 2014.


To work with Prime contractors to roll out targeted and flexible youth contract/work programme and maximising the take up of the wage incentive for employers across Worcestershire

25% reduction in 18-24 JSA claimant in Worcestershire

Delivery of Youth Contract and NEET services

Youth unemployment fell in August 2013 to 5.9% which is a reduction of 2.5% compared to May 2012.

Green Jobcentre Plus


Youth Zones will provide integrated careers, employment and business support to 16-24 year olds

Reducing 18-24 JSA claimant in WorcestershireReduction in NEET

3 x Youth Zones by 2016 in Worcester, Kidderminster and Redditch

Investment approved by WCC OFB

Envisaged Jan 2014 start for the first Zone


Worcester City Council

Kidderminster College

Jobcentre Plus

Sandycroft centre

Theme 3: Establishment of new 250 SME For For Recruitment

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Strategic Objective


Increasing Employability, Addressing Youth Employment

SME recruitment package via Worcs Business Central in partnership with private sector

supported in recruitment

development in 2014

development in 2014

agencies County

Council Jobcentre

Plus,

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Worcestershire LEP

Item 10 - Chairs Report

PurposeThe following diary of events is presented to the Board in order to inform Members on the purpose and wide range of more significant meetings and discussions with partners and others. The Chair will provide further verbal explanation if required at the Meeting. The Board is asked to note the events and to seek clarification where required.

July

26th Worcester Meeting Peter Blake Regular routine meeting liaison with CountyHighways

August

7th Worcester University of Worcester Liaison meeting with David Green, Vice Chancellor, and colleagues to share issuesopportunities and to understand Unis plans

7th Worcester Quad Meeting at County Hall

9th Malvern Growth Investment meeting with Leader MHDC and CEO re priorities to shape the ‘single pot bid

13th Worcester Growth Investment meeting with Leader City Council and MD re priorities to shape the ‘single pot’ bid

19th Worcester Single Growth Plan Meeting at Mazak with all Leaders and Key execs re progress,programme and priorities for Growth Plan and for EU Investment Plan

20th Worcester Growth Strategy Task to Finish Group meeting

21st Worcester Meeting Mark Pearce, MD Rotherwas to discuss opportunities for Enterprise Zone collaboration with Marches

LEP

23rd Redditch Growth Investment Meeting with Leader RBC and CEO re priorities to shape the ‘single pot’ bid

28th Kidderminster Growth Investment Meeting with Leader WFDC and CEO re priorities to shape the ‘single pot’ bid

29th Worcester Special Board Meeting to discuss EU Investment and Single Growth Plans

29th Pershore Growth Investment meeting with Leader WDC and MD re priorities to shape the ‘single pot’ bid

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30th Fladbury BBC Midlands TV Filmed feature on AD Plant and green energy.

September

2nd Bromsgrove Growth Investment meeting with Leader BDC and CEO re priorities to shape the ‘single pot’ bid

3rd Worcester BIS/LEP liaison meeting with BIS officials

4th Birmingham Centre for the Built Environment Question Time panel with 3 otheR W Mids LEPs’ Chairs to invited audience.

23rd Worcester Profiling sub group Handed over chair to Kate Moss

24th Callow End Festival Housing AGM Guest speaker at event in Stanbrook Abbey – update of LEP Progress and Plans.

Peter Pawsey20th September 2013

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Item 11: Executive Directors Report


A) The LEP Board is recommended to formally the Quad decision to appoint new posts to the Executive Team.

1.0 Context 1.1 Following from the executive team review paper which was approved at the 9th January Board meeting, which took into consideration the launch of the LEP Business Plan and the additional central government resources that had been announced of £250,000 of core funding. Extra staffing resources were appointed in terms of a PR and communications executive and an intern post. This brought the LEP executive team up to 5 members of staff.

1.2 At the 9th January Board the LEP Board also approved a part time access to finance post. This was filled on a short term basis by an external contractor who had knowledge of the professional sector and signed up 30 companies across Worcestershire, which enabled us to launch the portal.

1.3 During the summer we had short term support from the foreign exchange student programme who supported the members of the team across the functions of PR and promotions, business administration, research and other administrative tasks.

1.4 On 22 July the government guidance was issued for the Strategic Economic Plan and EU Investment Plan. Since that time the executive director and operations manager have been managing and implemented a programme which has been praised by the BIS Local Team. However, it has become evident that we need further capacity in the LEP executive team to project manage, coordinate and respond to all the demands that are coming from local partner, government agencies and central government.

1.5 This does not retract from any of the commitment or 'heavy lifting' that our local government partners are committing to the LEP.

2.0 Proposal. 2.1 The evidence of the foreign student and intern position shows that the LEP does have a need for this type of work to be completed and these tasks are perfectly matched to a young person with the ability to further their skills. We therefore believe to show the LEPs commitment to Worcestershire’s young people we should expand the opportunities within the LEP team to include a business administration apprentice and graduate researcher type position. The budget allocation from these two post are £20,000.

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2.2 This would then mean that the access to finance portal would be managed internally and other support in terms of events and networking would be delivered through the sub group, partners and this internal resources.

2.3 We also recognise some of the expertise that we require lies in the local knowledge of the district economic development teams. Specifically, this would be to lead the sector development work and business intelligence on AgriFood and Logistics in the County. The LEP has allocated a cost of £5,000 for these services. We also need to develop an structure of the performance and impact of the LEPs activities by the measure of GVA, this is also estimated at £5,000. We have approached the relevant local authorities making a request for a secondment over the Autumn and Spring period.

2.4 Operation Manager - this post remains a key position in the LEP in order to develop and deliver the existing working themes. I would propose to redirect the tasks of this post towards the delivery element of the LEP across, planning, access to finance, manufacturing and tourism sectors, regulations and external relationships with other LEPs and cross LEP working.

2.5 The capacity of the executive remains stretched with the delivery of the sub groups and development of the two strategic plans. We are therefore proposing a part time experience project manager to co-ordinate and drive the plan for the period of its development, initially 6 months.This would be allocated a cost of £10,000. This post will also need to link into the local authority family project team to ensure efficient use of resource between the partners.

2.6 We have searched the local community and business advisor network to ensure that as transparent but quick and efficient process has taken place.

3.0 Delivery/Actions 3.1 We have prepared job descriptions and outputs from these posts. Working with Chamber HR we would move to appoint these positions by 1st October 2013. As much of this work relates to the development of the Growth Plan, it is proposed to allocate a figure of £50,000 towards the posts and any additional costs.

4.0 Partners and Engagement 4.1 Delivery partners that these posts are likely to work with include the Local Government family, Business Central, Chamber of Commerce, Worcestershire Ambassadors, MPs, the Task to Finish Group and Private Sector.

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Item 12: WLEP Sub Groups’ Feedback


The WLEP Board is recommended to note the progress of the WLEP Sub Groups.

1.0 Summary of Sub Groups’ Progress

1.1 The WLEP Sub Groups which encompass strategic policy objectives, sector priorities, specific topics and Finance, Audit, Risk and Appointment Committee have been progressing respective responsibilities, development and delivery proposals. In addition to focusing on Business Plan delivery, particularly in leading up to the WLEP Annual Conference on 10 October 2013, all are being briefed continuously on the emerging WLEP Strategic Economic Plan and EU Investment Strategy.

National Profile and Promotion Investment Film commissioned for the Conference Investment Brochure to be commissioned during Oct 13 Two articles have appeared in Forbes magazine. Peter Pawsey interviewed by BBC Midlands Today at Evesham Vale

Growers. Worcestershire featured in Insider magazine, September 2013. Annual Report - Currently being developed Social Media

Twitter No of followers: 1573 (up from 1492 on 19 July)No of tweets: 553 (as at 13.9.13)

Access to Finance First Sub group meeting 2nd Oct This will focus on keeping the portal fresh An event and awareness raising programme working with Find It In, Chamber

and Other Partners.

Employment and Skills

See Item 9 on the agenda

Planning, Development and Infrastructure

In combined working on the WLEP Business Plan, Strategic Economic Plan and EU Investment Strategy two working groups comprising business, statutory consultees and LPAs have formed to develop/deliver (1) Spatial and (2) Development Management initiatives.

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Infrastructure work is continuing through the well established joint working between the WLEP, WCC Highways Authority and new Local Transport Board

Spatial Working Group is devising a Worcestershire spatial picture which

depicts key priorities i.e. first and second wave of game-changer sites, infrastructure schemes, housing and employment/economic opportunities identified in development plans. The spatial picture will be used as a marketing tool to help promote Worcestershire for inward investment nationally and internationally as well as framing priorities for individual development briefs and site promotion

Development Management Working Group is adapting the best practice from other LEPs and the emerging Wyre Forest concept of an “end to end” combined planning/economic development experience for businesses. Early opportunities to establish LEP-wide consistency on Fast Track Business applications, Validation Lists, Pre-App advice, Officer and Member Training and Shared Learning to signal changing cultures/behaviours etc. Statutory Consultees are part of this Group to develop a collaborative approach.

Manufacturing The document has been finialised and is published on the website. We are assessing the findings and will make a response document

Horticulture and Food ProductionNothing to report

Business and Regulators

WLEP Business and Regulators Sub Group was is meeting quarterly to maintain momentum/direction in delivering the Regulators and Business Charter.

Current priority action is "Business Start Up Regulatory Pack" (actual, web-based and using face to face networks alongside social media channels) which signpost SMEs to easier step by step approach to regulations. WRS/WLEP prototype is being tested out individually with businesses accessed through the Sub Group, Chamber of Commerce, Heart of England Fine Foods, NFU and FSB networks. WRS also co-ordinate inputs from National Regulators such as Environment Agency, HMRC, HSE, HW Fire and rescue etc. Soft launch and trial with businesses is due in October 2013.

Second Priority is to develop the pack into the next stage of a business lifecycle "Existing Business Expanding"

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Both packs will provide tangible products/tools to develop communications and stakeholder messaging and all business channels for generic interests.

The first stage of testing is with a range of businesses in the food production/horticulture sector to pilot a wider package of sector-based support. This aims to enhance the "Made in Worcestershire" ambition and consolidate the work of the Food/Horticulture Sub Group. (NB This will help future development of tailored support to other priority sectors such as Manufacturing.)

WRS and National Regulators held a Staff "Speed Dating" event in September to share latest information and best practice in positively supporting businesses

An event will be arranged for large Businesses to develop a Single Point of Contact/Account Management approach based on a consistent and co-ordinated relationship management approach with all local-national regulators

Opportunity to become a national lead/pilot for streamlined regulations for new business sectors/technologies and align with the Innovations/Technology Research and Development theme in the Strategic Economic Plan and EU Investment Strategy

Armed Forces Covenant

Employment and Skills Delivery Plan produced for WLEP and Armed Forces Community Covenant purposes; short term project delivery/communications plan identified for next 6 months

initiatives include use of embedded employer recruitment channels for service leavers; seminar on employer benefits of service leavers/reservists; participation in a joint Leadership and Management Development exercise; pilot a joint AF/JC+ "Work Club" initiative; support service leavers to become social entrepreneurs/entrepreneurs

external funding bid being prepared to the national Armed Forces Covenant panel (Ministry of Defence) in partnership with WM Armed Forces and Covenant group interests from the third sector to support short, medium and long term project delivery; potential for matching MoD resources to support 1 FTE person to broker solutions and steer Delivery Plan

close working with/contributions to the Employment and Skills Board delivery

Joint WLEP and Armed Forces Leadership Weekend for Worcestershire Young Business Leaders in November 2013

WLEP and wider business community involvement in a "Living and Working in Worcestershire" Service Leavers Transition Fair on 5 December 2013

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identify WLEP project with MoD as a national Pilot

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