Agenda item

Report to follow.

Rob Dunford, Director of Business Delivery, gave a presentation in respect of the work of Enterprise M3 Local Enterprise Partnership (LEP), the economic impact on the Local Enterprise Partnership (LEP) Area, and EM3’s recovery plans. 

The Enterprise M3 Local Enterprise Partnership (LEP) was a public/private partnership which had been set up to support and sustain economic growth within the M3 corridor. Since 2014, the M3 LEP has acted as a facilitator to promote economic growth and bring businesses and local government closer together. The LEP spends, secures and supports various streams of funding to help start-up businesses and to promote business and enterprise in the area. The partnership has also emerged as an advocate and champion of the Local Area.

The social distancing measures which were imposed as a result of the pandemic had notable consequences for the economic state of the LEP area. It was outlined by the end of October 2020 7% of employees resident within the EM3 area had been furloughed, which was in line with the other nearby LEP areas. In addition the LEP area now suffered with a 4% unemployment rate. However the EM3 LEP area had a Universal Claimant Rate of 5.2% which was notably below the national level of 6.3%. In particular it was highlighted that there were 7265 16-24 year olds as being out of work with a youth unemployment rate of 4.8%.

The downturn in aviation had meant a significant negative impact on the LEP area with the area being bookended by Southampton and Heathrow Airports. Overall passenger numbers were down by 60% and passenger level were only at 3% of normal levels during the national lockdowns. In addition a study by KMPG had identified Bracknell and Basingstoke as being in the top 10 Town Centres which were most vulnerable to the long-term effects of the pandemic.  Compared to the last economic recession, the economic pandemic had brought about notable negative impacts on the area’s EM3’s higher innovation industries, such as advanced manufacturing and aviation. In addition significant job losses had been made by significant employers in the EM3 area such as McClaren and Stannah Stair lifts. 

EM3 had funded a £4.5 million programme to deploy gigabit-capable fibre along an initial route between Guildford and Basingstoke, and promised to create more than 4250 jobs in the digital and creative sectors. Furthermore £2.2 million had been invested to help boost the digital infrastructure for 7,000 learners across six further education colleges in the Enterprise M3 area. This aimed particularly at upgrading colleges’ digital assets and aimed to help equipt young people for employment of the digital industries of the future.

EM3 were prepared for significant challenges as a result of Brexit. Whilst the amount of enquiries from businesses in respect of Brexit-related enquiries were not as high as expected, there was evidence that these enquiries were building, and that there was significant stockpiling and that the port of Dover was working at only 60% capacity. There was evidence that country of origin issues and the fulfilment of supply chains were the biggest issues resulting from Brexit which companies in the LEP area were facing. In addition there were new protocols which needed following in respect of the loading of trucks and the completion of documentation.

Arising from Members’ questions and comments the following points were noted:

·         There was an opportunity for the Council to harness greater support from EM3 in respect of its 5G Town Centre Project. It was emphasised to the Committee that the project was in line with the LEP’s aim to facilitate a faster roll out of 5G throughout the area.

·         The EM3’s Kickstart scheme aimed to give unemployed 16 to 24-year-olds new opportunities and aspirations by providing funding to employers to create new six-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. In addition EM3 were running a scheme with those who had lost their jobs at Heathrow Airport in order to adapt their skills to the film and TV industry.

·         Enterprise M3 only employed 30 members of staff and relied on partnership working in order to tackle wider initiatives and realise wider goals.

·         Despite EM3 figures which suggested that Runnymede, Spelthorne, Test Valley, Winchester and Basingstoke and Deane had the highest indices of deprivation in the LEP area, it was highlighted by Members that areas in Surrey Heath such as Old Dean had high levels of deprivation especially in the domain of Education and Skills.  

·         EM3 had the potential to assist the Council in promoting greener lifestyles and a greener economy. It was noted that EM3 had a Clean Growth Specialist who could work with the Council’s Economic Development Team to achieve a carbon net zero economy.   

·         Members had found that a digital divide existed within Surrey Heath with some businesses benefitting from significantly higher internet bandwidths than others. There was potential for the EM3 to potentially facilitate a conversation with internet providers around the issue.

The Committee thanked Rob Dunford for attending and providing an informative presentation.