Memorandum submitted by
Summary · Frontline agencies are working hard to deliver the programme, however more products which could be offered directly rather than signposting would improve the offer for business. · Agencies are working well together, particularly around sign posting. One example is the recent Eastern Daily Press (EDP) insert setting out the help available for individuals and business from all agencies. · The most significant issue for business remains access to funds to maintain cash flow. · Measures that could assist with sustainable economic growth include a coordinated approach to the application of the Future Jobs Fund, to maximise targeting to areas most in need and investment in further training based on future economic growth sectors. · Instant economic impact for the sub-region could be achieved by giving
the go ahead to the Postwick Hub CIF project in The Government's programme has had some impact in some areas, eg more time to pay the tax bill, however other areas have not been as effective, for example Enterprise Finance Guarantee. In terms of detail, the Committee is interested in receiving evidence on the following topics: 1. The nature and extent of the Government's programme in the East of England to tackle the recession 2. The role of front line agencies in delivering this programme 3. How the various agencies are working together to deal with the current climate and also to prepare citizens and communities for the future upturn 4. The impact of economic aid to the region 5. The measures which could be taken to provide sustainable economic growth. The following paragraphs therefore cover each of these topics in turn,
including comment on government policies and details of best practice taking
place in the County. 1 The
nature and extent of the Government's programme in the East of It is not easy to separate these two issues, so the comments below broadly cover both points. The two key areas are help with business finance and help with managing business.
1.1 Help with business finance 1.1.1 1.1.2 This view would seem to be supported by bank governor Mervyn King who said. "It is likely that the supply of credit will continue to be restricted for some while, with banks being risk averse and aiming to raise capital ratios" and " ... banks-some of which have been propped up with billions from the taxpayer- were displaying an "extreme level of risk aversion" when lending to businesses and households". With RBS being provided with 50% of total lending through the EFG (out of a total of 22 lenders in the scheme) it suggests that RBS might be the key obstacle and primary target of Mr King's and other anecdotal comments. Why not spread the funding to those banks that are converting the highest proportion of enquiries? 1.1.3 Regional loans. The Solutions for Business Guidance refers to the possible availability of Regional Loans but we are not aware of any formally established mechanisms. This could relate to initiatives such as Foundation East, which does provide loans to businesses and has been operating successfully. Indeed, Norfolk County Council recently met with FE and learned that with more resource they could provide significant additional lending to businesses with growth potential. The County Council is exploring this avenue. 1.1.4 The Capital for Enterprise Fund (which provides equity investment, with the Government providing £50m of this £75m fund and the remaining £25m coming from RBS, HSBC, Lloyds TSB and Barclays) is sed to pay off existing debt or for business investment. We have had no feedback on its effectiveness, although it does seem to be widely promoted. 1.1.5 Provision of more time to pay the tax bill. This seems to be working well and is widely publicised. However, without knowing the criteria it is difficult to avoid the conclusion that when payback time does occur, many businesses may end up in default, with the result that many more closures may occur. 1.1.6 Business Debtline. We have no appreciation of how well it is being used or how effective it is. 1.1.7 Business Rate Increase Deferral. All that is being offered is the deferral of a tiny element of the full rates bill (3% of the 5% increase) to the following two years. Although inflation is very low currently, there may be a blip in September, causing there to be other increases to absorb. Surely business rates should be treated in a similar way to tax deferment, with deferment of a larger amount?
1.2 Help with managing business 1.2.1 Health check for businesses-a free review of business performance with a professional business adviser for hands-on advice and help accessing the full range of government help. Business Link has seen significant increases in take up. In some cases, the contact has been of immense value, in others businesses have questioned the value. Perhaps expectation needs to be managed better, with the type of support that may be available better presented up front, to avoid raising expectations. Additionally, Business Link could perhaps be enabled/funded to develop more support products to respond, rather than having to simply signpost. Also, promotion needs to be stepped up with careful consideration over the message that is presented. Many businesses refuse to accept they have a major problem until it's too late. Early intervention is vital and that is the key message. 1.2.2 Train to Gain. It was announced in January that the scheme's rules would be relaxed, to enable training which may not lead to a qualification to be funded. However, the impression that businesses have is that this is a bureaucratic and inflexible scheme and there are also reports that funding is running out. We are aware of one training provider in the region who has learners they are unable to put through for TtG funding due to a shortage of funds. 1.2.3 Dealing with redundancy. Having two schemes in the region-R2R and Rapid Response is helpful as they broadly complement one another. This is assisted by the establishment of the Norfolk Redundancy Support network, hosted by JCP, which sees good integration of the local and regional services. However, neither scheme is really helpful to middle and higher level professional/management staff and more people from those levels are finding themselves unemployed. They will also be less likely to have looked for and received support before and will need flexible, targeted, support, such as that provided. This is partly being dealt with by the Higher Education Funding Council for England (HEFCE) funded Economic Challenge Investment Fund project, successfully bid for by the UEA and supported by ourselves with £100k, which now has substantial funds to support middle management and professionals threatened with redundancy. More support is needed however. 1.3 Other support measures 1.3.1 Reducing waste and saving energy-a key area of activity that the County Council has intervened in over the past five years, through the full time employment of an advisor. Over 1000 businesses have been supported, leading to substantial business benefits. However, demand exceeds supply and with more resource deeper interventions could be enabled (in particular through the close collaboration we have with the globally renowned Low Carbon Innovation Centre at the UEA) and more clients supported. 1.3.2 Help with exporting. Both the Chamber and East of England International report a substantial increase in requests for support for export documentation, research and advice. With more resource, businesses could be encouraged and supported to develop overseas markets thanks to the weak value of sterling. 1.3.3 Jobcentre Plus support. From April Jobcentre Plus (JCP)-nationally-has introduced a number of extra measures to support those impacted by downturn. These include: · extra support for people being made redundant via the Rapid Response Fund for training · a one day support session for those newly unemployed, delivered by a contracted provider covering CV completion, job interview techniques, job search etc · a one day session for newly unemployed professional and executive level customers, delivered by experts in that field · extra support for individuals, via the Adviser Discretionary Fund, by Jobcentre Plus Advisers, to support moving people into work · access to a 'national volunteer broker' to enable people to update/retain their skills in the volunteer sector · extra support for those wishing to start self-employment, via Business Link · £60 week support for 16 weeks for those unemployed for six months or more, who move into self employment · extra
training opportunities, funded by the LSC, with three · Recruitment subsidy of up to £1000 for employers who take on a person who has reached six months unemployment (this is enhanced by up to £1500 in Train to Gain funding via LSC, if eligible)
2 The role of front line agencies in delivering this programme · Although JCP has a lead role, partnership working is key, based on existing links with LSC, local authorities (LAs), employers, training providers, colleges etc. · JCP chairs the countywide Norfolk Redundancy Network, which includes LAs, providers and Business Link and has delivered significant coordinated support to a number of companies across the county in the last few months. Over 4000 individuals have received some form of support from these interventions in last 12 months, ranging from general advice to re training. · Colleges are in the process of working with JCP/LSC to deliver job-focused support across a number of key sectors. · All
LAs have conducted recession summits and good practice has been shared via
Shaping Norfolk's Future (the economic development partnership for · Key support has been identified in a number of initiatives funded via EEDA's Investing in Communities programme that is delivered sub-regionally.
3 How the various agencies are working together to deal with the current climate and also to prepare citizens and communities for the future upturn: · As above, local flavour to include work within the LAA to coordinate responses · Working Neighbourhoods Fund funding in Great Yarmouth, with JCP chairing Employment and Skills Board and the LA looking to use £7.1m over the next three years to deliver support to areas and groups in most need, against deprivation indices. · Use of Kickstart programme (loans for mopeds to provide access to work) to increase the job prospects of those in rural areas · Introduction of Integrated
Employment & Skills, ( · The County Council also coordinates
support activity with other LAs, responding to businesses' requirement for us
to join up, clarify and explain. We
therefore look to support and complement other LAs' initiatives, where
appropriate-eg participating in recession summits in King's Lynn and · In terms of the County Council's own activity, we are taking steps to retain resilience in the downturn and doing everything we can to be ready for the upturn. These include: o Investing £200,000 in a two-year programme of support and training for individuals who are made redundant, but who are ineligible for other government support projects, delivered by Norfolk Guidance Services. o Increasing our small building maintenance schemes programme by £280,000, with work placed with Norfolk-based companies. o Providing £125,000 for our Citizens Advice Bureaux for extra debt advisors, which is in addition to the £350,000 of support already provided by Norfolk County Council. o Holding a corporate procurement event-Norfolk Open for Business-as part of a wider programme of 'Meet the Buyer' events in different parts of the county. o Producing an EDP insert for businesses on 'Managing in the Downturn'. o Promoting local credit union options available to both individuals and businesses. o Issuing a regular Norfolk Business Matters e-newsletter to over 100 companies and organisations, including content on the economic downturn and what the Council is doing to help. · Finally, we and our partners continue to
focus on actions that are consistent with our long-term ambitions around the
development of Hethel Engineering Centre (HEC). Hethel Engineering Centre is a celebrated example of best practice in
enterprise hub development. In partnership with EEDA, Lotus and South Norfolk
Council we have created a superb resource for engineering and technology
businesses. Over 25 high quality new businesses have been created and hundreds
more have been supported throughout the last 3 years. The next stage is to
establish a
4 Measures which could be taken to provide sustainable economic growth · A coordinated approach to application for the Future Jobs Fund to maximise targeting to areas most in need · Investment in further training based on future economic growth sectors · Key transport infrastructure developments In terms of
4.1 Northern
· Should be delivered as soon as possible in the medium term (after 2011) · Is needed to remove traffic from unsuitable roads in the northern part of the area · Is needed for the planned housing and employment development over the wider area and · With other strategic improvements, is required to provide better accessibility to key employment locations.
The 'Postwick Hub'
improvement would provide the first leg of the NDR, while at the same time
dealing with junction capacity problems that are a constraint on business and
housing development, including · The development of · Employment sites near the route of, as well as those further from, the NDR. · The retail trade and office employment in central · The volume and value of visitors to · The alleviation of labour market constraints on company growth. · Economic activity rates and unemployment levels in · Attracting inward investment, reducing perceptions of peripherality.
4.2 Long Stratton Bypass A £28m bypass has been approved to bypass Long Stratton on the A140.
While the original proposal sought to tackle traffic congestion, the approved
plans are being reviewed in light of the recent Joint Core Strategy, which may
include an allocation of up to 2000 new houses at Long Stratton. This may mean
alterations to the type of bypass required.
In addition, the A140 is the most direct route to the Haven Gateway and
4.3 Development of the Outer Harbour at Great
Having been 20 years in the planning and negotiating, July 2009 sees the first freight delivered to the outer harbour at Great Yarmouth. This key development, brought about by a £40m public sector partnership, will ensure the port's future and facilitate growth in the energy sector, as well as in transport, distribution and logistics.
Great
Many of the proposed developments in Gt Yarmouth are constrained because of the need to undertake major tidal flood defence work. Only £81m has been allocated for Great Yarmouth in the next 50 years, which is a modest sum and insufficient to support the key centre in the Southern North Sea for gas exploration and extraction, as well as one of the UK's most iconic tourism destinations.
22 May 2009
C:\Documents and Settings\browninga\Local Settings\Temporary Internet Files\2009 05 22 - Regional Select Committee of the HOC - Enquiry into the Global Economic Downturn in the EofE - NCC response.doc |