Memorandum submitted by Suffolk County Council (EE 09)

 

 

Overview of Activity in Suffolk to tackle the Recession

 

1) The nature and extent of the Government's programme in the East of England to tackle the recession:

· It is still early days and the impact of the recession-as you can see from the evidence in appendix A-is still evolving in Suffolk. Therefore it is too early to tell what particular interventions will best support the Suffolk economy out of recession but this is something we are monitoring carefully.

 

· We are committed with partners in the public voluntary and business sectors across Suffolk to implement the National Apprenticeships Scheme. We are looking at best practice from around the country to help us set up a Suffolk Apprenticeship Scheme.

 

· Our services-and those of our partner organisations in Suffolk-are likely to come under pressure over the coming months as more businesses and families and individuals move into crisis. Although the recession is forecast to begin to turnaround by the end of this year, we know from previous downturns that unemployment may well continue to rise for several months beyond this. We need to ensure that we are able to provide additional support to our communities when the demands for these are manifested.

 

· Appendix A provides additional detail particular economic impacts

 

2) Home Shield Scheme

We have a good track record of working collaboratively with other agencies. An example of this is the Home Shield Scheme where authorised and trained staff from a range of agencies that visit people in their own homes run through a simple checklist that highlights where help may be needed. Referrals are then made to the relevant partner to provide the necessary additional support.

 

Homeshield currently brings together a wide range of partners which through the course of delivering services visit the homes of older people including:

· Police officers, police community support officers and crime reduction officers;

· Fire service personnel;

· District nurses;

· Occupational therapists;

· Pension Advisors;

· Housing Officers.

 

3) Suffolk's Economic Strategy

In terms of maintaining sustainable economic growth, we strongly believe that whilst the recession will mean that business and individuals will require additional support through this period, it is important that we continue to focus our economic development resources on our priorities and do not get diverted. Suffolk has a clear Economic Strategy which fits into its Sustainable Communities Strategy. This Economic Strategy has identified 4 key sectors which have good prospects for growth. These are:

 

· Energy, building on wind energy at Lowestoft, nuclear energy at Sizewell and off shore oil and gas;

· Information technology building on the BT operations at Martlesham Heath;

· Food, drink and tourism;

· Biotechnology.

 

4) Partnership Projects in response to the Recession

Our response to the recession has also been enhanced by collaborative work between different agencies such as: Jobcentre Plus, local authorities, the Learning and Skills Council, Business Link East, Suffolk Chamber of Commerce and Choose Suffolk (the Suffolk development Agency). This has focussed on:

· Housing;

· Employment and skills;

· Businesses;

· Finance and access to advice and benefits.

 

Examples of projects include:

· Suffolk employment care-that assists people with mild to moderate mental health issues to retain or gain employment;

· Learning Enterprise Access Points (LEAPs)-a network of LEAPs is being established across Suffolk that will deliver and promote learning, training and advice. LEAPs are key to delivering integrated employment and skills;

· Enterprise for all-a consortium of agencies providing intensive outreach and personal skills training;

· Incubator Centre development-to increase opportunities for new business start-ups;

· Pathways to Employment-to reduce the number of young people not in education, employment or training;

· Suffolk Redundancy Network-developing a network to provide advice and guidance;

· Citizens Advice Bureau and Credit Unions-additional investment across the County.

 

Further information can also be found in the weekly economy and employment briefings that the County Council provides for the East of England Regional Assembly and East of England Development Agency to update the Regional Minister Barbara Follett on the impact of the recession: ttp://www.suffolk.gov.uk/CouncilAndDemocracy/AboutSCC/SpecialistSupportFunctions/PlanningAndPerformanceImprovement/Economic+and+Employment+Data.htm

 

 

Appendix A

LOCAL ECONOMIC IMPACTS
Suffolk		Date	6th May 2009
Section 1: Overall summary of position
Please include LA and partner responses The count of redundancies in Suffolk-based firms/branches topped 2,000 at the end of January 2009 and reached 3,119 in April 2009. The count is based on intelligence from Job Centre Plus, local press and information received directly. However it does not include the slimming down of small companies (less than 10 employees). 48% of jobs losses have been in the manufacturing sector and 17% in Distribution, hotels and restaurants. The names that have gone from Suffolk since October 2008 include Woolworths and Millbank Floors.   Brandon and Sudbury stand out as particularly suffering given the size of these market towns. Losses in Ipswich although numerically high have been well spread across 10 firms. Haverhill has seen the highest numerical loss because of Vion closing with 300 jobs lost in food processing and packaging. Felixstowe started to suffer at the turn of the financial year with transport and storage firms laying people off and the Port of Felixstowe reducing pay levels instead of making people redundant Over 1000 jobs have or will be created in Suffolk since October 2008, including the opening of the arc shopping centre and Asda at Bury St Edmunds, Glasswells new store in Ipswich, Travelodge at Lowestoft, and MSC opening its new office on the Ransomes industrial estate (Suffolk Coastal). There is the possibly of the "replacement" of some jobs as stores that have closed are bought up and reopened, which is likely where prime sites in town centres are involved. In the longer term prospects are good with the proposed construction of Snoasis at Great Blakenham, Spectra's expansion at Halesworth and Pontins at Lowestoft.   Waveney has seen mixed fortunes with some positive investment in the retail sector for example QD replacing Woolworths at Beccles and Peacocks and Wilkinsons investing in Lowestoft in the former Somerfield supermarket. Some value added sectors are being impacted such as significant reduction in profits and turnover for Adnams Brewery Lowestoft continues to gain from investment in the renewable energy sector, the Port is expecting to see over 150 jobs created in support of an Offshore Wind Farm that is commencing construction in2009 The Learning and Skills Council (LSC) has a key role to play in supporting people facing and going through redundancy. Skills and qualifications are vital to the search for work, and the LSC has moved swiftly to enable our providers to offer a flexible support package to anyone facing or going through redundancy.   The LSC works very closely with Jobcentre Plus on making employment and skills services work seamlessly together and over the past year we have developed a joint approach (the Integrated Employment and Skills System) for those seeking work and developing skills. Suffolk has been part of the national pilot for the service and has been offering skills checks and information, advice and guidance by LSC providers co-located with Jobcentre Plus throughout 2008 - 9.   A suite of support measures which is contracted through local providers and can be brought to bear in any situation where skills support is needed, has been developed in partnership between LSC and Jobcentre Plus to complement and extend the support Jobcentre Plus can offer to individuals and employers.
Section 2: Impact on services
Please include financial as well as service issues if relevant There has been a dramatic rise in the waiting list for RSL housing and growth in the private rented sector Revenue from car-parking fee income has reduced. There has been a growth of bad debts due to inability to pay, largely due to personal bankruptcy and some company insolvency Demand for benefits has increased. Often this is due to changes in circumstances, typically one partner loosing employment resulting in existing benefits claimants needing to be fully reassessed. Although this may not lead to any additional payments, it does increase caseloads. Referrals to CABs have increased The following are examples of the new products developed in partnership by the LSC to meet the needs of individuals in the changing economic landscape:   Pre and immediately upon redundancy - Regional contracts have been let and will be delivered by a range of local providers, including most colleges. Employers will be provided with: an organisational needs assessment, training to help people in that company move into new roles, or help in supporting people through redundancy. This provision builds on and extends the Jobcentre Plus and EEDA funded resources available to companies in this situation.   It is part of a £100m national programme, with the East of England expected to see around £10m delivered locally. Of that £10m it is likely that Suffolk will receive 12% or £120,000 of activity.   For individuals facing redundancy, or just having been made redundant there is a service offer worth £1,500 per person which will be made available for: · Jobsearch skills (CV writing, interview skills, applying for jobs) · Accreditation of prior learning / skills · Skills check and advice on next steps · Skills development · Customised training for actual or predicted vacancies   People who have been redundant for 6 months or more - Lowestoft College, Suffolk New College and West Suffolk College have received funding to provide the above training and support package for people who have been redundant for 6 months or more. Should individual needs be such that the college cannot offer the appropriate vocational training they will seek a partner who can meet the need.   During this period of support the Learning and Skills Centre (LSC) has negotiated with Jobcentre Plus a process whereby training can be offered on a full time basis, taking away the restrictions of the "16 hour rule" for trainees.   In Suffolk the three providers have been allocated £962,000 for this activity.   For recruiting employers - The package of support is designed to allow short periods of customised training against actual job requirements. Providers will work very closely with Jobcentre plus to identify local vacancies and discuss with recruiting employers what a customised training programme would entail, enlist their input into the training and agree the process for guaranteeing interviews to trainees.   This service is offered alongside the Jobcentre Plus "Golden Hello" payment of £1,000 for employers recruiting redundant workers, and is presented as a training grant of £1,500   Train to Gain - For people progressing into Train to Gain as a result of the above activity all eligibility restrictions are lifted, making accredited training available to all taking part.
For children, young people and families
Impact on ability to provide services:   Impact on children, young people and families and demand for services: Waveney - Good demand continuing for sports and play facilities
Social Care (adult) and Health
Impact on ability to provide services: Home Care: As unemployment increases more people are attracted to work as carers either home care or residential/nursing .Consequently, waiting lists for home care have reduced as it has become easier to secure providers. During last year providers could not take on more customers because of staff shortages. Now we have several providers seeking the same work. However there is evidence that the care sector may have to downsize due to over capacity.   Impact on individuals and demand for services: Suffolk Drugs and Alcohol Action Team (DAAT): No significant increase in numbers seeking treatment.   Residential and Nursing Care: The downturn in the housing market has meant that some people have been unable to sell their home and use the proceeds to pay for their care. This has resulted in an increase of people seeking a deferred payment arrangement (whereby the County Council pays the care fees until such time as the proceeds are realised) from the County Council.   The County Council is monitoring both locally and nationally the financial viability of care companies. There have been reports of three national companies that operate in Suffolk needed to renegotiate/review their borrowing sources. However, currently, there have not been care business failures. If this does occur we have a responsibility to ensure continuity of care for the customers.
Community Cohesion/tension
Increases in community tensions and issues arising in community
Crime and community safety
Increases/decreases in crime, impacts on community safety and evidence of causal links to economic downturn No significant evidence of drug sales becoming cheaper nor of drug quality deteriorating, however some increased use of Ketamine and cocaine powder locally.   No marked increase in violence in drug sales or of organised crime competition in markets.   Shoplifting, Household and other burglary has seen some increases across the county as reported through the Community Safety Partnerships.
Cultural services [sports, libraires, etc]
Impact on ability to provide services:   Impact on service users and demand for services: Concern over future sponsorship for certain events (e.g. Lowestoft Air Festival). Local sports clubs have benefitted from small community grants used to support their activities. The Suffolk Sports Partnership has received £6,000 from Waveney District Council's Leisure budget.
Section 3: Capital Programmes
Lowestoft education quarter - The development of Lowestoft College and UCS Lowestoft to create an education quarter for 3,500 students and complemented by the total refurbishment of the Water Lane Sports Complex is a vital rebuilding project in Lowestoft. There have been concerns that uncertainty around the LSC capital programme could impact on these plans.   Waveney campus - Delay in Waveney Campus project due to section 114 limitations is of concern as this project is vital for regeneration within the community   Public transport - Positive discussions continue with Network Rail, National Express and SCC to implement the circa £4m Beccles Rail loop by 2012 that will increase train frequency to Ipswich and London to an hourly service and assist in addressing perceptions of isolation
Section 4: Other issues for Regional Economic Forum
Capital Programmes - In addition to public capital programmes it should be noted that the reduced investment by the private sector is consequently delaying provision of private housing and related community benefits that might have been secured by section106 agreements. Training - In the short term, some indications that organisations may be scaling back on training and development of staff Older people - According to research from Age Concern and Help the Aged a quarter of people aged 60 or over are skipping a meal to save money, thereby putting their health at risk. Two-fifths are struggling to afford essential items. Just under half of older people are cutting back on socialising, 38% are reducing their use of electricity and 34% are cutting back on the amount of gas they use. Age Concern is launching a campaign to help pensioners cope with the downturn, More Money in Your Pocket. Proposals to help low-income OAPs include: o A commitment to move quickly to roll-out automatic payment of income-related benefits, including Pension Credit, Council Tax benefit and Housing benefit. Older people currently miss out on up to £5billion in benefits each year. o A package of measures to assist low-income savers who have seen the income they rely on from modest savings eroded by cuts in interest rates. o Maintaining the winter fuel payment and cold weather payment at current levels. o A new comprehensive programme to improve the energy efficiency of housing stock and other urgent measures to tackle fuel poverty. Around 2.75 million older households live in fuel poverty.   Abandoned Animals - In May 2009, the local press (East Anglian Daily Times) reported an 80% rise in the number of animals abandoned in the East of England since last year, as owners cannot afford to look after them.