Memorandum from Gateshead Council (NE
02)
SUMMARY
1. Vision 2030 is Gateshead's long term ambitious
strategy based around 6 Big Ideas. In order to achieve Vision
2030, the Council is developing an economic masterplan with Newcastle
City Council and 1NG (City Development Company) for NewcastleGateshead.
It has also developed a £200 million "10 Point Plan"
for economic resilience.
2. The Council would like to highlight to the
North East Regional Committee of the House of Commons four key
interventions to achieve Vision 2030:
— Increasing apprenticeships in Gateshead.
— Universities College Gateshead.
— The role of renewable energy in the economy.
— The role of creative industries in the
economy.
VISION 2030
3. Our long term vision for the future, and
basis for the issues and approaches highlighted above is set out
within Gateshead's Sustainable Community Strategy, Vision 2030,
published in 2007. This sets out our high aspirations for local
people, and our commitment to maximising opportunities and skills
to develop a sustainable local economy.
4. Our aims are based around Six Big Ideas which
highlight a pathway of interventions to unlock the potential of
local communities. These are:
— City of Gateshead—building a diverse
and larger population.
— Gateshead goes Global—attracting
international talent.
— Creative Gateshead—a borough of
high achievers.
— Sustainable Gateshead—strong economic
performance.
— Active and Healthy Gateshead—healthiest
people in the UK.
— Gateshead Volunteers—the volunteering
capital of the UK.
5. We recognise that the economic landscape
has changed significantly in the last two years, and the economic
downturn has required us to think differently about how we ensure
that our long term goals are achieved.
6. Gateshead's economy has performed strongly
in recent years. A report by the OECD in 2005 identified Gateshead
as being the only place in the North East Region to keep up with
the national business growth rate (12%) and identified significant
infrastructure assets in the North East which are enabling it
to be more competitive. This, combined with the experience of
many of our businesses having survived the last recession, and
our ambitious long term plans for the future is helping Gateshead
in this current economic climate.
ECONOMIC PRIORITIES
7. Traditional manufacturing industries such
as ship building and related commerce have historically shaped
the economic structure of Gateshead and the wider sub region.
A decline in these industries has required innovative economic
restructuring, which builds upon the legacy of our manufacturing
base and infrastructure, whilst also maximising opportunities
for future growth in new and emerging sectors.
8. Economic analysis of NewcastleGateshead has
highlighted that the future of the economy will be driven by creativity,
knowledge intensive business services, learning, research, culture
and quality retail uses. To ensure we maximise opportunities within
these sectors, we will work with partners locally within Gateshead
and through the City Development Company (NewcastleGateshead:1NG)
to maintain a diverse economic base, whilst developing stronger
regional and national specialisms for the benefit of local residents
and businesses.
9. Our future plans for economic development
are articulated within the developing "1NG Plan", the
economic masterplan for NewcastleGateshead. This draft plan recognises
that economic impacts are not restricted within local authority
administrative boundaries. The plan therefore promotes a broader
focus to meet the needs of local residents and businesses. Our
draft proposals with Newcastle include:
— Commercialise the science base with particular
focus on acknowledged research strengths.
— Develop niche strengths in areas where
potential is identified, including advanced manufacturing, offshore
biotech and creative industries.
— Grow the HE sector and maximise potential
for economic gain.
— Sustain and grow existing sectors which
have potential for maximum job impact.
10. There is a focus on creating an appropriate
skills base for the new economy, ensuring that learning and skills
provision meets the needs of changing sectors. This is offered
through a range of means, including vocational learning, apprenticeships
for all age groups and a choice of academic routes.
11. Design Centre for the North based in Gateshead
and Science City in Newcastle link with education providers to
ensure proactive support for businesses to innovate in science,
technology and design.
ECONOMIC RESILIENCE
12. The economic downturn has provided an added
impetus for accelerated action in a number of areas to ensure
that our communities are supported to manage the impact of the
downturn, and are fully prepared for the upturn.
13. To ensure that appropriate actions and interventions
are identified, the Council has developed a £200 million
"10 point plan" for economic resilience. Implementation
of the plan is taking place in partnership with key service providers
across the borough to ensure a co-ordinated and well communicated
approach, with maximum benefit for communities.
14. The 10 Point Plan focuses on the following
areas for action:
1. Acceleration the Council's £160 million
capital programme. There will be investment in the infrastructure
necessary to facilitate development by undertaking advance preparation
and enabling works on development sites, thereby reducing costs
and risks for developers.
2. Supporting Business—introduction of
a package of support for businesses. This will include exploring
with Central Government, the establishment of Employment Zones
in Team Valley and East Gateshead and Town Centre offering tax
incentives and planning flexibilities. The Council will offer
up to 12 month rent free for some businesses in its business units
and will also freeze rent reviews for some businesses where a
sustainable economic case is made.
3. Skills—to ensure preparation for the
future economy, ensuring that the Borough has a skilled workforce
for future economic growth, a targeted strategy for increasing
Apprenticeships and Internships will be implemented.
4. Support to residents—a One Stop Shop
for advice and support, establishing a Taskforce for advice to
residents.
5. Growth—maximising the use of vacant
sites and buildings, by:
— Extend the "Starter for Ten"—
utilising unused properties and underdeveloped land by accommodating
a range of temporary uses. This project will transform a redundant
building in the heart of the town centre into a thriving creative
cluster for small businesses.
— bring forward `move on' space that can
provide accommodation for businesses in target sectors.
6. Buy Local—development of the Council's
Local Procurement Strategy, including:
— To increase the value of local spend,
and within the confines of legislation governing procurement activity,
changes have been made to the Council's constitution to ensure
that consideration will be given to whether or not local organisations
can fulfil the Councils requirements for business. Where it is
considered that local organisations are able to fulfil the requirements,
then at least one quotation or tender should be invited from a
local supplier.
— Ten day promise for payment, ensuring
that all businesses are paid within 10 days.
7. Supporting Communities—investment in
social enterprise and volunteers. Empowering communities, generate
and retain wealth in the area, create employment are the forefront
of innovating new services. The Council will support the growth
of 100 new social enterprise businesses, including recycling/
environmental; health and social care and supporting citizens
services.
8. Active and Healthy—introduction of free
leisure time in Council owned Leisure Centres to encourage local
residents to remain active and healthy in this current economic
climate. Including:
— "Active Access"—discounts
for those in receipt of benefits and their dependents.
— Free swimming for under 16's and over
60's from 1 April 2009.
9. Sustainability - accelerating and exploring
environmental technology as a new economic growth sector for the
future.
10. Building confidence and profile—including
a NewcastleGateshead Tourism Marketing Campaign and a Campaign
to attract new businesses into the Borough.
INTERVENTIONS
15. In order to achieve Vision 2030 and the
"10 Point Plan", the Council would like to highlight
to the North East Regional Committee of the House of Commons four
key interventions:
— Increasing apprenticeships in Gateshead.
— Universities College Gateshead.
— Focus on renewable energy.
— Focus on creative industries.
APPRENTICESHIPS
16. Our commitment to increase apprenticeships
and internships across Gateshead is articulated within the 10
Point Plan, and includes a commitment to double the number of
apprenticeships within the Council and increase the number by
500 across the Borough. This will be achieved through the development
of an Apprenticeship Plan for the Council (offering new apprenticeships
in areas such as IT and media) as well as converting existing
posts into Apprenticeships, thereby committing to training provision.
Increased apprenticeship provision has also been developed as
a priority for inclusion in the Gateshead Agreement (LAA).
17. Developing the number and range of apprenticeship
schemes will increase the skills levels of the working age population.
It will also provide training and employment opportunities for
those entering the labour market and are potentially at risk of
becoming NEET (not in employment, education or training). In addition
it will provide a re-training option for those who may find themselves
out of work as a result of the economic downturn. Apprenticeships
will enable us to meet the needs of the current workforce, whilst
also preparing a workforce for the future based on predicted developments
and related priorities to develop creative industries and digital
technologies within Gateshead.
18. Reflecting both local and national priorities,
proposals are being developed to establish an apprenticeship Consortium
which will reduce barriers to employers recruiting apprentices
and provide a rich and valuable programme for apprentices themselves.
19. The proposal is based on the Group Training
Scheme established in Australia. A version has also been recently
been established in London (the London Apprenticeship Company),
although our approach will need to differ due to the different
economies of scale.
20. The Consortium will comprise a core organisation
which acts as the employer of apprentices (16-18 and adult), securing
training from appropriate providers, and ensuring that all statutory
checks, monitoring and mentoring are carried out. The core organisation
will recruit apprentices and place them with employers or voluntary
organisations for fixed periods for a monthly fee (similar to
a temping agency).
21. The Consortium will have a regional remit,
with Gateshead used as the initial geographic focal point.
22. The apprenticeship frameworks will be determined
by employer demand, and in the North East are likely to include:
— Business & Administration.
— Hospitality and Catering.
23. Support from the London Apprenticeship Company
will expedite the set up process, and conversations are taking
place to enable Gateshead to learn from experiences in London.
24. Set up costs would be required for the above
to establish the infrastructure for the first eighteen months,
after which the Gateshead Apprenticeship Consortium should be
self-sustaining. These costs are likely to be of the order of
£300,000, and funding is currently being sought from the
LSC for Apprenticeship Training Agencies and Group Training Associations
to test alternative delivery models for apprenticeships.
25. Key issues with the current system for apprenticeships
remain, particularly in relation to funding for training for adult
apprenticeships, which covers only part of the costs (as opposed
to full cost reimbursement for 16-18) and the fact that funding
follows the employer, rather than the individual.
UNIVERSITIES COLLEGE
GATESHEAD
26. To achieve our aspirations for a world class
learning environment and to increase participation in a spectrum
of learning opportunities within Gateshead, partners aim for a
university presence in the Borough by 2030.
27. The Gateshead Agreement (Local Area Agreement)
includes targets in the shorter term to increase the number of
residents with higher level skills, with a view to increasing
demand in higher education in Gateshead.
28. Building upon Gateshead's well established
creative and cultural offer, one element of our approach will
be to increase demand through a focus on arts, culture, creativity
and sport as a sector. We also recognise the significant role
of public services as an employer within the North East Region,
and aim to create a beacon for public services, with our employees
benefiting from world class learning and development. As such,
this sector will form a focus of our approach through Gateshead
Public Services Academy. We will work with employers and businesses
to shape programmes of learning across all sectors to increase
demand and engagement, and ensure that our educational offer meets
local need, based upon existing and predicted future skills gaps.
29. In developing our approach, we will seek
to integrate targets and outcomes into Local Area Agreements and
the Tyne and Wear City Region Multi Area Agreement to contribute
to Public Service Agreement targets of DIUS and DCSF. Particular
focus will be given to a "Learning City Region and a city
region clustering of 14-19 commissioning", to ensure integration
between learning, skills development and employment.
THE ROLE
OF RENEWABLES
IN GATESHEAD
AND THE
NORTH EAST
ECONOMY
30. There is an increasing recognition that
ecology and economy are becoming ever more interwoven—locally,
regionally, nationally and globally. Within Gateshead we recognise
the global impact that our interventions can have, and are keen
to couple an environmentally sustainable approach with opportunities
for economic development.
31. The Green New Deal reinforces the international
drive to link responses to the economic downturn with opportunities
to address climate change through major investment into reusable
energy and the creation of "green collar" jobs.
32. Researchers such as the Smith Institute
further highlight the significant growth in this sector, which
is expected to expand over coming years.
33. Gateshead's commitment to ensure that environmentally
sustainable lifestyle and business choices are easy to make is
articulated within our Sustainable Community Strategy—Vision
2030. There are a number of innovative examples of how Gateshead
Council and partners are seeking to achieve this through the use
of renewable energy. For example Winlaton Mill community group
has installed a micro-hydro scheme, there is a 34kWp installation
at Gateshead International Business Centre, six hot water solar
schemes have been installed in police stations across Gateshead
and consultations are underway with regards to incorporating Combined
Heat and Power units in five new swimming pool developments.
34. We aim to accelerate and explore environmental
technology as a new economic growth sector for the future. Linked
to this we will seek to establish a Council owned energy company,
and companies have been invited to tender to undertake a feasibility
study. This will enable us to produce renewable energy for use
locally, with the potential for exporting in the future. Producing
energy in this way will not only contribute to the environmental
sustainability agenda, but will also enable us to stabilise costs
for the benefit of residents and businesses in Gateshead, who
will not be vulnerable to the fluctuating costs of global markets.
35. We are also keen to explore other environmental
technologies (for example, "Clean Coal"), as an opportunity
to ensure a more sustainable Gateshead and north east region.
CREATIVE INDUSTRIES
36. Gateshead's focus on cultural and creative
industries represents a commitment to the arts spanning over 20
years, and a concerted effort to develop the borough as a hub
for creativity and creative enterprise. The last 10 years in particular
have brought Gateshead onto the international stage. The redevelopment
of Gateshead Quays is an internationally renowned regeneration
programme, which has had a positive effect. Research has shown
that more people are visiting Gateshead, more businesses are relocating
to Gateshead, there has been more inward investment and national
and international recognition.
37. Physical changes to the Borough such as
The Angel of the North and developments at Gateshead Quays are
part of a holistic cultural offer to improve the perceptions,
aspirations, skills and confidence of local people and business,
to attract creative professionals to Gateshead.
38. We recognise that there is currently an
unmet demand for creative workspace in Gateshead. The Starter
for Ten is an innovative project which will transform redundant
buildings at the heart of Gateshead into a thriving creative cluster
for small businesses. The project aims to utilise unused properties
and underdeveloped land by accommodating a range creative enterprises.
39. The Council has committed funds from its
capital budget to refurbish a building in the town centre which
was ear-marked for demolition in two years time as part of the
town centre redevelopment. A secondment has been arranged with
Arts Council England to lead the project.
40. The project is aimed at creative businesses
that would otherwise have difficulty accessing workspace. The
building is being refurbished to a minimum standard which meets
health and safety requirements and will be offered to creative
practitioners on a rent-free basis.
41. At the same time the Council is looking
at other vacant properties across the borough for further developments
based on the Starter for Ten model. A priority is to identify
follow-on space for the occupants of the first building at the
end of the two years.
42. It directly links into Gateshead's long-term
plan for the redevelopment of the town centre as described in
Vision 2030. Creativity is at the centre of the vision, one of
6 Big Ideas to establish a creative quarter in the town centre.
43. The pilot project aims to revitalise a run-down
area of the town centre while at the same time it functions as
a vital piece of action research to inform Gateshead's long term
strategy to address the demand for creative workspace and support
it in a sustainable way.
44. This project focuses on the needs of talented
creative people. It aims to retain talent by providing a supportive
environment which encourages the sharing of skills and ideas,
access to networks and opportunities for collaboration. The overarching
aim is to make Gateshead a place to which more creative practitioners
will be drawn, where they can develop and thrive.
45. Over 50 individuals expressed an interest
in accessing the workspaces prior to any formal advertising, which
was launched on 14 May 2009.
CONCLUSION
46. Gateshead has a long term ambitious strategy
for the future, Vision 2030. In order to ensure that this vision
is achieved in this current economic climate, Gateshead Council
has developed a £200 million 10 point plan for economic resilience.
47. Four key areas of intervention to achieve
Vision 2030 that Gateshead Council would like to bring to the
Committee's attention are:
— Increasing apprenticeships.
— Universities College Gateshead.
— The role of renewables in the economy.
— The role of creative industries in the
economy.
48. Gateshead Council would welcome the opportunity
to present evidence to the committee.
| 
