Memorandum from Redditch Borough Council
(WM 16)
SUMMARY
— It is difficult to obtain information
about the effect of the financial and economic situation on businesses.
— Advantage West Midlands is viewed as
removed and remote by many local businesses.
— Business Link has relatively low penetration
levels.
— The economic downturn has resulted in
businesses in Redditch qualifying for assistance that they would
not have been able to access previously.
— The West Midlands Task Force has a low
profile in Redditch.
— Many initiatives are just repackaging
of existing provision.
EVIDENCE
1. It is difficult to gauge the effect of
the economic downturn in Redditch as agencies are very protective
of their information citing "data protection" issues.
With the regionalisation of business support, businesses have
fewer reasons to interact with the local authority and therefore,
links with the business community are weakened. As a local authority
we are looking for new ways to re-engage with the business community
but have lost much of the valuable anecdotal information that
can be acquired when working with businesses day to day.
2. Anecdotal evidence does suggest that
many businesses remain relatively unscathed by the economic downturn.
However, the impact on those that have been affected has been
devastating resulting in large scale redundancies and companies
ceasing to trade. Redditch has a higher than average number of
jobs in manufacturing (22.8%) and an over-reliance on the automotive
sector in particular; therefore many businesses are considered
to be vulnerable.
3. In Redditch, unemployment has more than
doubled in the last year. Claimant count in February 08 was
1,106; in February 09—2,713. There have been 1,101 collective
redundancies since November 08; 77% of which were in the manufacturing
sector. Other sectors affected include distribution and warehousing,
retail, and construction.
4. One of the few "silver linings"
of the economic downturn has been the fact that businesses in
Redditch qualify for support that they previously would not have
been able to access, such as Grants for Business Investment. Redditch
Council considers that it is largely ignored by sub-regional,
regional and national decision makers. Whilst Redditch is a successful
business location it does not have a particular stand-out asset,
such as a University or Science Park, that attracts investment
from the Regional Development Agency or Central Government. Being
a former New Town there is little opportunity for physical regeneration.
The economy is low waged but deprivation is not sufficiently high
to attract investment to address it. Redditch seems to fall below
the radar of benefit from significant grants or initiatives. For
example, the rural regeneration zone does not include Redditch
Borough even though it sits in Worcestershire and is 50% rural.
5. In general terms, if financial support
had been available to Redditch businesses previously, whilst being
modest in cost, it could have had a significant impact on the
ability of those businesses to survive the economic downturn by
supporting their move away from vulnerable sectors. A little support
would go a long way in Redditch, but even a relatively little
support is difficult to secure.
6. Advantage West Midlands is not particularly
active in Redditch. In a recent survey of local businesses only
19% had had any interaction with the agency. Levels of satisfaction
with AWM amongst these companies varied. Business view AWM as
being remote. In a recent newspaper article, a local business
is quoted as saying "Advantage West Midlands have access
to large sums of Government money and they need to get their people
into the coal face of local businesses".[46]
Civic leaders and council officers have approached AWM with their
concerns and a dialogue has begun as to how these issues can be
addressed and AWM can become more active in the Borough.
7. Business Link also has low penetration
levels in Redditch. Redditch Borough Council is active in promoting
Business Link services but the regionalisation of the organisation
and the lack of a physical presence in the town further disengages
the business community, and with the Council's weakened links
to business it is difficult to encourage companies to access services.
Both Redditch Borough Council and Business Link have acknowledged
these problems and are working together to address them and to
optimise every opportunity to encourage businesses to access support
available to them.
8. The West Midlands Task Force has a very
low profile in the town. Businesses appear unaware of it and it
is never mentioned in the local press. With the exception of the
Advantage Transition Bridge Fund, many of its initiatives are
repackaging of existing provision rather than anything new.
9. Redditch Borough Council is not working
directly with Government Office West Midlands on any initiatives
to mitigate the effects of the economic downturn.
46 Oakland International, The Redditch & Alcester
Standard, 20 March 2009 Back
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