Regional development agencies and the Local Democracy, Economic Development and Construction Bill - Business and Enterprise Committee Contents


Memorandum submitted by East Midlands Development Agency

  The East Midlands Development Agency (emda) welcomes the opportunity to contribute to this Inquiry into the role and effectiveness of RDAs. This submission complements the joint RDA submission (also being presented to the Committee) by providing information on emda's role, achievements and impact.

  Early independent evaluation findings show that emda has had substantial positive and ongoing impacts on the performance of the East Midlands economy.

  emda provides strategic economic leadership, drawing together the partnerships required to deliver the region's economic aspirations set out in our Regional Economic Strategy.

  emda has a strong track record in developing unique and innovative solutions, helping turn places that the market has failed into economic success stories.

  emda has successfully levered in £285m of private sector investment into physical regeneration during the last three years alone.

  emda's business-led approach means that we are flexible, fleet of foot and able to make difficult decisions in responding to economic opportunities and challenges.

  emda has tailored successful emergency help to local companies and their workers hit by unexpected economic shocks.

  emda is excellent value for money, delivering efficient and effective programmes and initiatives.

  emda has consistently achieved its goals—against a backdrop of ongoing efficiency savings.

  Since 1999-00 emda has:

    —  created or safeguarded 68,036 jobs;

    —  created or supported 63,108 businesses;

    —  assisted 85,921 people with their skills development needs; and

    —  remediated 1,494 hectares of brownfield land.

INTRODUCTION: EMDA AND THE EAST MIDLANDS

  The East Midlands, like a number of regions in England, has been hit hard in the past by periods of industrial re-structuring. As a result it has experienced a significant decline in traditional heavy industries, such as coal, steel and large scale manufacturing. Whilst the most significant changes took place in the 1980s and early 1990s the effects are still visible today, in both the region's major urban centres and its rural hinterlands.

  In the last decade the performance of the region has improved in relation to a number of key indicators. The region has grown rapidly in both economic and demographic terms. The East Midlands is the fourth largest of the nine English regions, and has a population of 4.3 million people and more than 160,000 businesses. Challenges remain and emda continues to work with private, public and third sector partners to ensure that our shared economic objectives for the region are realised. If current trends continue, the East Midlands will experience the fastest population growth of all English regions, growing by 10.5% between 2006 and 2016.

  emda's total budget for 2008-09 is £173m.

1.  The need for a level of economic development and regeneration policy / delivery between central and local government

  The joint RDA response to the Committee highlights a number of issues in relation to this area of the Inquiry: critical mass; cross-boundary working; tackling market failure at the most appropriate level; ensuring a tailored and flexible approach; and delivering economies of scale and providing specialist resource. These issues are equally relevant from an East Midlands perspective.

  The East Midlands economy is now worth some £74 billion per annum—and, as such, is larger than the Czech Republic, Hungary, Hamburg and Berlin. Again, as detailed in the joint RDA response, many economic development, regeneration and infrastructure-related issues (including labour markets, housing and transport) do not respect administrative boundaries—these key issues are often most effectively pursued on a cross-boundary basis. In addition, the East Midlands shares a border with five other regions—requiring us to work effectively with neighbouring RDAs and other partners in order to deliver a coherent response to economic challenges and opportunities, at the right spatial level.

2.  The effectiveness of the RDAs and their role in adding value

  Early independent evaluation findings show that emda has had substantial positive and ongoing impacts on the performance of the East Midlands economy.

  emda provides strategic economic leadership, drawing together the partnerships required to deliver the region's economic aspirations set out in our Regional Economic Strategy (RES).

  emda utilises its resources, expertise and flexibility to deliver truly innovative solutions and deliver economic success.

EMDA'S ECONOMIC IMPACT

  In 2005 emda became the first RDA to commission a comprehensive and independent programme of impact evaluation. This three-year programme assessed the impact of emda's work from April 1999 to March 2007 on companies, communities and the economy of the East Midlands and was undertaken by a consortium led by ECOTEC Research and Consulting.

  Provisional findings from this evaluation have demonstrated that emda has had substantial positive and ongoing impacts on the performance of the East Midlands economy. These impacts are expected to provide an on-going contribution to the regional economy and cover both emda projects and national programmes that have been delivered by emda. These findings will also form part of emda's contribution to the national RDA impact evaluation project currently being undertaken by Pricewaterhouse Coopers (PwC), on behalf of BERR, and will be subject to further review by PwC.

EMDA'S STRATEGIC IMPACT

    —  emda has demonstrated strong leadership and engaged effectively with stakeholders on key strategic and policy issues.

    —  emda is viewed as an effective advocate of regional interests.

    —  emda has successfully influenced the policy and investment decisions of regional and national organisations.

    —  emda has levered substantial resources from partners.

    —  Innovation has been a strong feature of emda's work, with a range of initiatives attracting national attention and being replicated in other regions.

2a.  Providing strategic leadership

  The RDAs' key role in providing strategic economic leadership centres on the development and championing of their respective Regional Economic Strategies (RESs). These long term strategies are based on comprehensive evidence and identify the challenges and opportunities ahead. emda has invested significantly in the capacity required to undertake economic analysis and policy development. As a result, we have produced a Regional Economic Strategy fully grounded in analysis. As noted in the National Audit Office's Independent Performance Assessment (IPA) of emda, "the Evidence Base, developed in house, is detailed and comprehensive, and is well regarded by partners and stakeholders alike, many of whom use it as a reference to produce programmes and strategies for the region". We also use our extensive links with business to provide timely assessments of economic conditions in the region, a capability that is particularly significant in the current economic climate.

  The current RES sets out a "flourishing region" vision. Progress towards this vision is measured through a Regional Index of Sustainable Economic Wellbeing (ISEW). This allows us to adjust standard measures of economic progress to take account of factors such as: the value of voluntary work; the costs of pollution; the quality of the natural environment; and the costs of crime. The RES vision and the concept of the ISEW captured the imagination and support of partners in the region. It also worked well alongside our comprehensive consultation process, which targeted both regional stakeholders and, for the first time, members of the public. These factors helped to ensure significant partner engagement and buy-in to the delivery of the RES.

  At the national level, emda has led RDA engagement in national policy development (as "lead RDA") in a number of significant policy and delivery areas:

  Manufacturing—emda is the lead RDA on issues relating to manufacturing policy and support and for relations between BERR and EEF, the manufacturer's organisation. emda represents RDA interests in the Ministerial Advisory Group (MAG), which guides BERR and DIUS in the development of the Government's Manufacturing Strategy. In this role, emda has led activity to engage the RDA network and a wide range of regional business representatives in the policy debate to inform the new Government strategy, Manufacturing: new challenges, new opportunities (September 2008). emda also represents the regions on the High Level (Enterprise and Manufacturing) Task Force, which was established to jointly oversee the implementation of the Government's Enterprise and Manufacturing Strategies. We have also played a key role in shaping a wide range of delivery initiatives including the Manufacturing Advisory Service (MAS). We represented the regions on the MAS Development Board from 2005 to 2007, and have coordinated the subsequent roll-out of programme enhancements by the RDAs. We have coordinated MAS policy development with BERR since 2007 and, since April 2008, emda has managed the MAS network on behalf of BERR. emda is also responsible for the monitoring, reporting and development of MAS performance across the UK. We also assisted in the development of the National Manufacturing Skills Academy (NMSA), which was launched in January 2007.

  Europe—emda leads the RDAs' engagement in a range of European policy, funding and lobbying issues. emda has led the RDAs' involvement in a range of policy-related activities, including the English regions' contribution to the Lisbon Agenda (of jobs and growth) and the future of EU Cohesion policy. Through emda's leadership, the RDAs shaped the future of EU funding delivery in England for the 2007-13 period, including the agreement to transfer the management of the European Regional Development Fund (ERDF) programmes from the Government Offices to the RDAs. This complex and challenging transfer required us to work closely with central government and the European Commission and took place on 31 January 2008, when a Statutory Instrument came into force. The effective implementation of the programmes continues to be a significant focus of our European lead role activity.

  International Trade and Investment—A key feature of the role is ensuring close collaboration between RDAs and UKTI, ensuring we maximise our shared impact. We co-chair, with UKTI, an International Business Development Forum, which also includes the Devolved Administrations, and so ensure a joined up approach. emda led RDA engagement in the joint RDA/UKTI/DA review of UK Representation Overseas, which reported earlier this year. This highlighted the importance of RDAs continuing to operate alongside UKTI in overseas markets in order to maintain the UK's strong inward investment performance, but with UKTI playing a greater coordination role.

  Construction—emda led RDA engagement in the development of the national Sustainable Construction Strategy (June 2008) and are now leading RDA activity to support its implementation. We have also co-ordinated RDA support for innovation in construction through the simplified business support offer and a range of other initiatives.

2b.  Leading responses to economic shocks

  emda is the natural leader to bring regional partners together to respond to economic shocks. Our strong links with central government, our business-led Board and extensive business engagement enable timely and flexible responses, helping businesses survive and re-orientate. Key examples of effectiveness include:

    —  In 2001 emda brought together a grouping of public and private sector partners to form a taskforce to address large scale redundancies in the region's aerospace sector, including Rolls Royce and its associated supply chain, following the market downturn in the aftermath of September 11th. In 2003, emda established the Pan-Business Redeployment Programme. This provides pre-redundancy support and skills development, and ultimately aims to redeploy skilled engineers to fill recruitment shortages in engineering elsewhere in the region. For an investment of £2m this project has assisted over 2,500 people under threat of redundancy and helped retain key engineering skills within the region. The success of this approach is one on which we intend to build as we move into a more challenging economic climate.

    —  In 2002-03, we helped the farming and food sectors, and local communities, cope with the aftermath of Foot and Mouth. During and immediately after the outbreak, emda delivered a Rural Recovery Fund worth £2.2m. The fund provided support to over 270 non-farming businesses across a wide range of sectors whose viability was threatened by the restrictions applied during the outbreak, ensuring that the vast majority of those businesses were able to continue successfully after the outbreak.

    —  In 2007 we played a significant role in supporting the recovery of communities and businesses affected by flooding in Nottinghamshire and Derbyshire, through the the Flood Relief Grant Scheme: a scheme that was in place and accessible to businesses within days of the floods. Just over £270,000 was provided in grant aid to 161 businesses. These grants provided much needed financial aid to cover costs associated with the flooding such as: loss of earnings; property damage; damaged stock; and damaged machinery/equipment.

2c.  Highly effective and flexible delivery

  emda operates very successfully at the sub-regional level working with, and through, Local Area Agreements, Local Authorities, Urban Regeneration Companies and emerging Economic Development Companies.

  In 2001 emda commissioned and agreed to fund seven Sub-regional Strategic Partnerships (SSPs). These bring together businesses, public sector, voluntary and community groups to tackle the distinct needs of their local areas. From 2002 onwards, emda has allocated Single Programme funds to our SSPs and in 2008-09 just under £50m worth of investment will be directed and prioritised by SSP Boards. Over the past 3 years, SSPs have successfully levered over £100m from other partners, created 10,000 new jobs and 900 new businesses, and helped 13,000 people develop their skills.

  The joint RDA response also notes the proven track record of cross-regional partnership working in a variety of settings. For example, in 2007, emda and Advantage West Midlands worked together to spearhead the Midlands Energy Technologies Institute (ETI) Consortium. This succeeded in its bid to attract the ETI to the East Midlands. The ETI is a £1bn public-private partnership to develop and deploy energy technologies fit for a low carbon economy. The consortium also included the universities of Birmingham, Loughborough and Nottingham, and regional businesses such as E.ON, Rolls-Royce, Caterpillar, Toyota, and Alstom. These private sector partners have collectively pledged £15m per year for the next ten years towards the Institute, to be matched by Government funds. Effective cross-border working allows us to build partnerships to meet distinct market need, without the constraint of geographic boundaries.

2d.  Translating national policy into regional delivery

  emda is an effective intermediary between Central Government and the front-line delivery of economic development and regeneration policies. We have influenced the formation of a wide range of national policies, recent examples include the Innovation White Paper and the UK Manufacturing Strategy. We have also demonstrated the ability to improve delivery of national initiatives—a good example being emda's delivery of the Business Link service.

  emda was the first RDA to directly manage its Business Link service, putting in a new streamlined regional delivery model and reducing the number of sub-regional service providers from five to one. As a result, back office costs were consolidated allowing investment in customer facing staff to increase by a third. emda has also made improvements in the consistency and quality of the services that are being delivered and despite the period of transition, customer satisfaction has remained at 90%.[126] In addition, emda has successfully anticipated the future direction of national policy by aligning the delivery of Train to Gain, UK Trade and Investment (UKTI) activity and the Business Link service, as well as integrating support for social enterprises, land-based businesses and resource efficiency measures.

  Our business-led Board has enabled us to work extremely effectively with the private sector to proactively address business needs. A good example of this was the development by emda of the first Regional Venture Capital Fund in 2002. Working with the then Department for Trade and Industry (now BERR), £30m of new capital was secured for investment in small businesses in the East Midlands. A major component of the funding package was secured from a number of East Midlands local authority pension funds, with emda playing a vital role in building a business case for this investment. This innovative solution helped address specific problems identified by the region's business community in relation to access to finance for small and medium-sized companies. In developing a new scheme to help aspiring entrepreneurs raise finance for their business ventures, emda has managed to lever in over £750,000 from the former Phoenix Fund and created a significant regional fund called EnterpriseLoans East Midlands. This is now worth some £5.8m and is delivered by First Enterprise Business Agency Limited (FEBA).

3.  RDA expertise

  emda provides specialist economic development and regeneration know how—delivered through an effective mix of public and private sector expertise.

  emda is a competent and efficient programme delivery body which utilises effective project appraisal processes to ensure that better value for money is achieved.

  emda has a strong track record in developing truly unique, and innovative solutions which have been highlighted as national examples of best practice.

  emda has an effective mix of public and private sector expertise (both at Board level and within the main body of our staff) and has the specialist economic development and regeneration capacity necessary to deliver against the breadth of our responsibilities. emda is a competent and efficient programme delivery body, delivering unique and effective solutions and utilising effective project appraisal processes to ensure that better value for money is achieved.

  Delivering unique and innovative solutions—emda has a strong track record in developing unique and innovative solutions, many of which have been highlighted as national examples of best practice.

  The blueprint limited partnership is a property regeneration partnership that delivers new solutions for regeneration in the East Midlands. It is a 50:50 public-private partnership, bringing together emda, English Partnerships and Morley Fund Management's igloo Regeneration Fund. The Partnership was formed in 2005. Investment, ownership, risk and profit are shared equally between the public and private sector. It was developed to kick-start development in the region by levering in private sector funding and expertise. Crucially it seeks to remediate and develop land that would not be commercially viable for private sector developers to take on in isolation. Since 2005, £21.5m of funding has been levered in from the private sector (£17m equity investment, and £14.5m of bank debts). Blueprint has received numerous awards including: the East Midlands Property Deal of the Year Award in 2005; "highly commended" finalist in the 2007 Regeneration and Renewal magazine award for Regeneration Partnership of the Year; and more recently named Developer of the Year at the 2008 Midlands Property Awards. Consequently, it has attracted considerable interest from within the UK and further afield.

  BioCity was established in 2002 and is a joint venture between emda, Nottingham Trent University and the University of Nottingham to develop the bioscience and healthcare cluster within the East Midlands. BioCity is a major success story for the region and offers flexible tenancy agreements designed to meet the requirements of small start-up and fully established businesses. emda played a key role in this process by forging a partnership between the Higher Education sector and the growing biomedical, healthcare and environmental sectors. emda has invested a total of £8.2m in BioCity and, to date, BioCity has created over 350 knowledge-based jobs, replacing those lost with the closure of the old BASF facility. In addition, companies at BioCity have raised over £25m investment funding in 4 years. Finally, BioCity has also attracted the UK National Micro and Nanotechnology Network (Eminate) centre, along with international investment from USA, Canada, Germany, Denmark, Australia and Japan.

  The National Audit Office received very positive feedback from partners and stakeholders on the role of emda in regenerating the former coalfields area through the National Coalfields Programme (NCP). Since 1999 emda has managed the operation of projects within the NCP. This programme is successfully transforming some of the region's most deprived communities into thriving economic places. emda has got work moving on a number of sites in the East Midlands that had lain untouched for many years, and has done so in a technologically innovative manner. Notable examples of NCP projects include:

    —  Sherwood Energy Village is a mixed use development that has created a diverse industrial and commercial base. emda led on this project, working closely with English Partnerships, to secure funding from the NCP to remediate the 91 hectare site and also contributed £5m to support its redevelopment. The project demonstrates innovative redevelopment using cutting edge technologies in sustainable construction, including the UK's largest system of sustainable urban drainage which has attracted international interest. Sherwood Energy Village won the first ever Enterprising Britain award in 2005.

    —  At Avenue Coking Works, emda has taken one of the most highly polluted sites in Western Europe, and, working with partners, has undertaken one of the most complex on-site remediation treatments ever carried out in the UK. This work has attracted significant international attention (from China and other countries) with the site now used to demonstrate best practice in sustainable technologies. emda's approach has been an exemplar in using cutting edge technology and engaging a wide and diverse set of partners at an early stage to meet the challenges faced in terms of capacity and environmental management.[127] The agency's approach to community consultation and involvement in this project is also recognised as a model of best practice, with regular newsletters, events, a bespoke website, contact with affected households, and the involvement of local schools.

4.  The extent of, and need for, RDA overseas activity

  Overseas representation has enhanced the East Midlands inward investment offer, and is crucial to maintaining the UK's position as the number one destination in Europe for inward investment.

  Our approach is reaping real benefits. In 2007-08, the region saw an increase in foreign companies investing in the East Midlands for the fourth year running.

  The average annual salary of new jobs created through inward investment successes is 11% higher than the average gross annual salary for the East Midlands.

  When the RDAs were established in 1999, they took over regional inward investment budgets and have continued to work in partnership with UK Trade & Investment (UKTI) to attract, grow and retain Foreign Direct Investment (FDI) in the regions. To help promote inward investment to the region, emda has representation in several key overseas markets. In North America and Asia, emda and Advantage West Midlands collaborate, thus sharing costs to promote the "British Midlands".

  Our overseas representation adds significant value to the UK's and the East Midlands inward investment offer. emda's overseas representatives work closely with UKTI overseas posts, and this collective and coordinated effort has been an important factor in maintaining the UK's position as the number one destination in Europe for inward investment.

  Our approach is reaping real benefits. In 2007-08, the East Midlands saw a total of 88 international investment project successes leading, in total, to 5,960 new or safeguarded jobs, and an increase in companies investing in the East Midlands for the fourth year running. Of these, emda directly secured 37 international investment project successes with an associated 4,254 jobs created or safeguarded. 32 (86%) of these projects were from overseas markets where we have offices or representation. 27 (73%) of these projects are classed as knowledge driven, demonstrating that we are attracting and retaining innovative and high value companies.

  For the new jobs created in 2007-08, the average annual salary of £29,076 is 11% higher than the average gross annual salary for the East Midlands, demonstrating how important inward investment is to the regional economy. This very much reflects our strategy which is focused on attracting high-value companies that will bring good-quality, well-paid and interesting jobs to the region. Examples include:

  PepsiCo Ltd—Following a pan-European search for a new R&D facility to support their manufacturing operation, US-owned PepsiCo announced in 2007 they would be retaining their R&D facility in the UK and investing £15 million in a brand new PepsiCo Technical Centre of Excellence in Leicester, safeguarding 175 existing jobs. The centre will provide state of the art pilot plants and laboratories to enhance and support new product development.

  Kabushiki Kaisha M-TEC—a Japanese Motorsport company; established MUGEN EURO Co. Limited, a wholly owned UK subsidiary in July 2007. The UK business will be engaged in R&D, testing and production of racing and high performance engines and other automotive technologies, creating 12 new jobs. This investment complements existing regional strength in motorsport related R&D and manufacturing.

5.  The consequences of expanding RDA remit to include new functions, as proposed by the SNR, including the delivery of EU funding

  emda welcomed the original proposals outlined in the SNR but we feel that focus has shifted from its original objective—to improve sustainable economic growth in all the English regions.

  SNR implementation should protect and enhance the benefits of the business-led RDA model, ensuring that we remain fleet of foot, take managed risks, and maximise private sector investment and leverage.

  emda consistently does "more with less"—successfully taking on additional responsibilities, whilst exceeding targets, and delivering efficiency savings.

  We welcome the opportunity to play a full and proactive role in the implementation of the SNR and fully support the move towards a Single Integrated Regional Strategy (SIRS). However, SNR implementation must retain a clear focus on its original objective, which was to improve sustainable economic growth in all the English regions.

  It is imperative that SNR implementation protects and enhances the benefits of the business-led RDA model. Business leadership of RDAs, clear decision making based on our capacity and expertise in key areas, and our financial flexibility have been critical factors in the progress we have made in developing regional economies to date. The role and contribution of business and private sector leverage were significantly underplayed in the March 2008 consultation document, Prosperous Places, both in terms of engagement at the regional strategic level and in economic development activity at the local level. The proposals failed to identify the opportunities and incentives for private sector engagement, something which is critical, especially in these more challenging economic times. emda strongly believes that we need to remain fleet of foot, take managed risks, and maximise private sector investment and leverage. Maintaining the right balance and calibre of private sector involvement in our Board is a crucial part of this.

  There are significant challenges within the governance model described by the SNR, including the pivotal relationship between the RDA and local government. It is accepted that these arrangements should be agreed region by region, but clarification of the relationship between the RDA Board (including the role of the RDA as the Regional Planning Body) and the Local Authority Leaders' Forum is required. A number of business representative organisations have expressed similar concerns. For example, the Institute of Directors' SNR response noted that current proposals risk "the threat of diluted business input and a bureaucratic governance model. The governance structures (chiefly the local authority leaders' forum) are unworkable, undesirable and unhelpful. If RDAs are to take on the responsibilities that have been proposed, then such frameworks must be systematically redesigned to avoid the policy "logjams" that would occur".

  RDAs have taken on considerable and growing responsibilities since their inception. emda has done this effectively and efficiently, whilst also continuing to exceed our targets. Where we have taken over responsibilities from other public bodies we have consistently delivered efficiently, reducing administration costs relative to delivery resources. We have also made significant improvements in terms of the effectiveness and quality of programmes and services, bringer a stronger regional coherence and providing better value for money.

  The transfer of the management of the ERDF programmes from the Government Offices to the RDAs is not part of the SNR proposals, but was part of a general push to better align European and domestic funding in support of regionally agreed priorities. emda became formally responsible for the region's ERDF programme in January 2008 and worked hard to ensure that better strategic alignment and impact can be delivered alongside streamlined processes and efficiencies. It should be noted, however, that the regulations that guide ERDF funding, and its associated structures (including separate Programme Monitoring Committees), are significant issues in terms of the effective integration and alignment of the programmes with existing RDA process and practice, as well as presenting emda with a number of governance challenges.

6.  The accountability of RDAs

  emda is accountable nationally to Ministers and Parliament, and regionally to our Board and partners.

  emda is currently scrutinised at the regional level by the East Midlands Regional Assembly.

  emda welcomes proposals for strengthening parliamentary scrutiny of RDAs, however, we must ensure that any new arrangements avoid unnecessary duplication and the consequent potential overstretch of RDA resources.

  The joint RDA submission to the Committee sets out the current accountability arrangements for RDAs. emda is accountable to Ministers and Parliament through the Secretary of State for BERR and, as with all RDAs, our annual performance report and annual accounts are laid before Parliament. We also appear before Parliamentary Select Committees and answer Parliamentary Questions. At the regional level, we are held to account by our Board, which includes a mix of business, senior local authority, community, trade union and academic leaders. We are also held to account by our regional partners and this happens in a variety of ways: through consultation exercises, attendance at partner meetings and our Annual Public Meeting.

  Whilst we welcome the proposals for strengthening parliamentary scrutiny of RDAs, it will be important to ensure that any new scrutiny and accountability arrangements for the regions are both effective in their scope and reach, and avoid duplication.

  In addition to the points raised in the joint RDA submission regarding the creation of Regional Select Committees, it is also important to highlight the need for clarity over the distinctive roles of parliamentary and regional (local authority-led) accountability arrangements. It will be essential to avoid unnecessary duplication and the consequent potential overstretch of RDA resources. The accountability process should be mindful of what is being scrutinised at the regional level when considering the remit of the parliamentary arrangements—this will ensure that arrangements are complementary and proportionate.

  Current regional scrutiny of emda by the East Midlands Regional Assembly is underpinned by a Scrutiny Protocol. This forms a joint contract between all partners involved in this process, which ensures that all partners understand their shared responsibilities, and the outcomes of the scrutiny process. It also ensures that Scrutiny Reviews are realistic, and remain focussed on what is reasonable and achievable, whilst also ensuring that they have sufficient impact to promote effective change.

7.  How RDA performance has been measured and will be measured in the future

  Since 1999, emda has consistently achieved all core output and expenditure targets.

  emda was judged to be "performing strongly" by the NAO—with 22 points from a possible 24.

  emda operates with a low cost base, with employment costs of less than 6% of expenditure in 2007-08, and has consistently exceeded efficiency targets, as agreed with BERR.

7a.  Exceeding our targets

  emda's performance has been measured against a framework, primarily based on operational outputs set by Government, which has evolved over time. We have delivered our targets year on year and a table summarising the outputs achieved is at Annex A. Since 1999-00, emda has:

    —  Created or safeguarded 68,036 jobs;

    —  Created or supported 63,108 businesses[128];

    —  Assisted 85,921 people with their skills development needs[129]; and

    —  Remediated 1,494 hectares of brownfield land.

  A significant element of the IPA assessment process focused on our performance against the objectives set in the 2005-8 Corporate Plan. The final report from the NAO noted that: "emda has made substantial progress against its Corporate Plan, its own Critical Success Factors and its targets against the PSA Framework".

  The IPA awarded emda 22 points from a possible 24—with emda judged to be performing strongly. This reflected a particularly strong assessment of emda's achievements to date.

7b.  Delivering efficiencies

  It is important to reiterate that these achievements were delivered against the backdrop of efficiency measures required by all RDAs in terms of their administration budgets.

  In 2007-08, the final year of the three year efficiency programme based around the Gershon review, emda exceeded the target of £9.4m, and achieved £14.8m savings across the year. This was achieved by re-contracting the delivery of a range of support activity without compromising on output achievements, and by levering in private sector funding to assist in the re-development of brownfield sites through blueprint. It should also be noted that emda operates with a low cost base, with pay costs at less than 6% of expenditure in 2007-08.

7c.  Increasing focus on outcomes and impact

  As set out in the joint RDA submission to the Committee, there is now a greater focus on outcomes and impact, following the introduction of the new RDA Sponsorship Framework in April 2008. This move supports the desire to be able to make assessments of the RDAs' individual and collective contribution to regional outcomes and the Regional Economic Performance Public Service Agreement. The RDAs and BERR have adopted a common impact evaluation framework and the RDS Impact Evaluation Study currently being delivered by Pricewaterhouse Coopers, on behalf of BERR, will provide an assessment of the impact of the RDAs and is expected to report at the end of November 2008. As set out in section 2, emda became the first RDA to commission a comprehensive and independent programme of impact evaluation back in 2005.

  In summary, our early independent evaluation findings show that emda has had substantial positive and ongoing impacts on the performance of the East Midlands economy.

  emda provides strategic leadership, drawing together the partnerships required to deliver the region's economic aspirations set out in our Regional Economic Strategy. emda has a strong track record in using a business-led approach to develop unique and innovative solutions, helping turn places that the market has failed into economic success stories.

  emda's business-led approach means that we are flexible, fleet of foot and able to make difficult decisions in responding to economic opportunities and challenges. This is an approach that has also levered-in significant private sector investment. emda has also successfully tailored emergency help to the needs of local companies and their workers hit by unexpected economic shocks.

  emda is a competent and efficient programme delivery body which utilises effective project appraisal processes to ensure that better value for money is achieved. As new responsibilities have been acquired, emda has consistently delivered more with less.

19 September 2008



126   Source-Business Link Customer Satisfaction Survey. Back

127   National Audit Office, Independent Performance Assessment (2007), p. 19. Back

128   8,921 businesses created and 54,187 businesses supported-to note that the output achievements for business creation are from 2002-03 onwards and 2005-06 for businesses supported-see Annex A for full details. Back

129   Output achievements for assisting people with their skills development are from 2002-03 onwards-see Annex A for full details. Back


 
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