The impact of the current economic situation on the North West and the Government's response - North West Regional Committee Contents


 Memorandum from Lancashire County Council (NW 18)

INTRODUCTION: LANCASHIRE'S RESPONSE TO THE CURRENT SITUATION

  Lancashire has responded promptly to the challenges of the current economic situation.

  At the end of 2008, we set up a Business Assist team to co-operate with our partners in the private, public and third sectors to build a county-wide team that gives real advice and support on a host of issues to both businesses and individuals. We trained contact centre employees to direct callers to people who could help with debt relief, welfare rights, trading standards, business credit and more. Our credibility with organisations like JobCentre Plus and the Learning and Skills Council and our commitment to serving the customer means we can act as a vital information service for all of Lancashire.

  We have held two town centre drop-in events for small businesses, entrepreneurs, and the public to receive information on public sector services, grants, loans, training schemes and so on. We're planning on event in each Lancashire city and borough and we're making use of existing community assets like libraries and children's centres to get the right information to the right people in the right way.

  Specifically, our practical business support measures now include:

    — Our selection by the Department of Communities and Local Government to be a national pilot authority on "providing timely information". Lancashire is the only local authority to design its proposal specifically to get information to the public on how to cope with the downturn.

    — A range of business support services, most notably through Trading Standards, Lancashire Adult Learning and Lancashire County Developments, Ltd, our economic development department.

    — Free membership of a Chamber of Commerce to all firms with an investment from Lancashire County Developments, Ltd.

    — The County Council's own business loan product, Rosebud has also responded to the recession by approving £874,000 to 6 separate companies just in February 2009 safeguarding a further 90 jobs and creating a further 10.

    — A new 10-day payment rule so that businesses receive payment for their services as soon as possible.

    — A new campaign from our Trading Standards department to stop loan sharks from targeting vulnerable families and cold callers, and to combat internet fraud.

    — A new approach to Business Start Up Advice is about to be launched although details on the procurement process for providers of the Intensive Start Up Support service have been delayed. The Multi Area Agreement groupings in Pennine Lancashire and Fylde Coast are using this Start Up contract as a way to provide a consistent advice service across their area, using the LEGI models as a framework. In addition it is understood that DCLG have agreed that the previous LEGI postcode boundaries should now be relaxed. The County Council is also providing funding on this contract across all 12 districts through the agreed MAA groupings.

INQUIRY TERMS OF REFERENCE

The effect of the economic situation on the region; including the effect on different sectors and on different sub-regions

  The Lancashire claimant count has almost doubled over the last year. The April monthly claimant count in the Lancashire County Council area increased by 96.3 percent on the same month in 2008. This figure is greater than the increase in the wider Lancashire sub-region, and greater than both the regional and national percentage increases. The month-on-month percentage increase in Lancashire's claimant count (3.7%) is also higher than the sub-regional, regional and national increases.

The effectiveness of the Northwest Regional Development Agency in assisting businesses in the current economic downturn

  In addition to Lancashire's sub-regional response, we are working with the North West Development Agency and Business Link to offer:

    — A £10 million High Growth business support programme.

    — A new £4 million Innovation Voucher Scheme to help up to 1,000 businesses.

    — Dedicated Access to Finance support within Business Link Northwest.

    — A £140 million Venture Capital Loan Fund.

    — A £40 million package of support to stimulate investment in priority skills development.

  Lancashire companies are already benefiting from these offers, notably the Transitional Loan Fund and Business Investment Award, which have supported four Lancashire firms to the tune of £885,000—safeguarding more than 300 jobs and creating the opportunities for a further 40 jobs in due course.

  A new approach to Business Start Up Advice is about to be launched, although details on the procurement process for providers of the Intensive Start Up Support service have been delayed. The Multi Area Agreement groupings in Pennine Lancashire and Fylde Coast are using the contract as a way to provide a consistent advice service across their area, using the LEGI models as a framework. In addition it is understood that DCLG have agreed that the previous LEGI postcode boundaries should now be relaxed. The County Council is also providing funding on this contract across all 12 districts through the agreed MAA groupings.

The response of the Joint Economic Commission, established by the Regional Minister in November 2008, to the economic downturn

  Lancashire County Council welcomed the formation of the North West Joint Economic Commission and we look forward to hosting their future visits to Lancashire.

  We share the JEC's emphasis on employment. Lancashire County Council has introduced several nationally-recognised job creation and development schemes that are addressing the county's skills shortage at this critical time.

  WorkStart is a 30-day public sector work trial in partnership with Jobcentre Plus and Lancashire Adult Learning that helps lone parent and incapacity benefit recipients into the workplace. Since April 2008, 59 people have taken part in a WorkStart placement. Thirty-eight of these have secured long-term employment at the county council, with other public sector partners or in the private sector.

  Recruitment of apprenticeships has increased from 16 in 2006 to 270 today. We now expect apprentices to complete NVQ level 3 rather than level 2 and are working with student services to help apprentice's access level 4, which exceeds our skills pledge requirements.

  For young people not in education, employment or training, we created Future Horizons to equip people aged 16 to 18 with the skills and knowledge they need to apply for our apprenticeship scheme. Future Horizons provides employability qualifications, basic and life skills, career information and advice, and a structured work placement at the county council (or a partner organisation)—an essential stepping stone in securing an apprenticeship

  The Regional Minister met with several participants in these programmes during a visit to Lancashire County Hall this month.

4However, we were disappointed that Lancashire was not specifically included in the list of newly prioritised capital projects announced by the JEC last December, nor in the list of long-term strategic projects announced at the JEC's first meeting. But we remain keen to assist if capital projects can be adapted further to help stimulate the economy and the level of investment in Lancashire.

The capacity of the Government Office for the North West, government agencies such as Business Link, Learning and Skills Council, and Jobcentre Plus, and other partnerships between Government agencies, local government and the private sector, to respond effectively to the economic downturn

  Overall, we have been able to work effectively with central government agencies. For example, our workforce development programmes have been delivered in partnership with other public sector organisations and we are proud of our track record in working together.

  As all partners have been affected themselves by the recession there are limited resources available and it is therefore imperative that we work together to make more effective use of the resources we each have to hand. There is still more that we can do however, to make sure we are working together and sharing information to ensure that our collective actions are delivering the best outcome for Lancashire citizens.

The usefulness of Government initiatives such as Real Help Now, in providing support and enabling access to finance, for businesses in the north west

  We share central government's view of communications as a key element in the public sector response to businesses and the public.

    — Our award-winning Trading Standards service has launched a new web site Money Matters to give the public and business advice on dealing with debt, maximising revenue streams and getting the best deals across a range of good and services.

    — We are also creating an online portal for the public and business to access information on a wide range of issues to support them through the recession. It will include useful links and telephone numbers and other contact details, including information from district councils, PCTs other partners as well as a whole host of financial management information.

    — Our Welfare Rights Service is targeting the recently-unemployed to assess their benefits entitlements, especially for older people.

    — We are developing an online portal for members of the public and business to access information on a wide range of issues to support them through the recession. It will include useful links and telephone numbers and other contact details, including information from district councils, PCTs other partners. as well as a whole host of financial management information. The site will be launched in the next few weeks and will also link into regional websites developed for the same purpose.

Whether the approach of regional Government and its agencies during the current economic situation strike the right balance between short term need and planning for the future.

  Lancashire County Council has been impressed by the speed with which the government set up the regional Joint Economic Commission and the wider national response to the economic downturn. We take our community leadership role extremely seriously and are spearheading the public sector's response to the recession here in Lancashire, just as the national government has sought to unite public and private elements to tackle the economic situation.

  This short-term response goes hand-in-hand with a wider effort by central government to streamline long-term regional and local policy following the Sub National Review and its attendant guidelines and legislation. Lancashire County Council is fully involved in these processes. We remain fully committed to working with our central and local partners, and the private sector, to support Lancashire's economy.

  Most importantly, any discussion of distinctions between short-term action and long-term planning is overshadowed by the need to examine the central-local government relationship itself. Greater freedoms and flexibilities for local authorities would give local actors the tools they need to tackle issues as they arise in their own particular local form. As the Communities and Local Government Select Community stated this week in their report "The Balance of Power: Central and Local Government" radical reform of central government is needed if Britain is to truly reach its full potential. The Chair of the committee, Dr Phyllis Starkey stated that "local authorities clearly know their communities better than Whitehall does, particularly for instance when it comes to local health inequalities, policing needs or tackling the local impact of the economic recession. Given the extent to which communities differ, local authorities should have the flexibility—whilst respecting reasonable national minimum standards—to vary their priorities to better reflect local aspirations".





 
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