LEP Update

Neil Hayes

15 September 2014

Economy snapshot

Labour Market Participation– Employment Rate (March14)

• 77.7% (75.5% GB)

– Unemployment Rate (March14)

• 4.5% (7.2% GB)

– JSA Claimant count (July 14)

• 1.8% (2.8% GB)

Productivity

Other indicators– % change in house prices (13/14):

– 11.0% (7.2% Eng & Wal)– Self Employment (March 14)

– 12.6% (9.8% GB)– Start-up Growth (2009 to 2012)

– 62% survival rate (30th/39 LEPs)– <4% grow to £1m turnover (18/39)

26.3 26.624.4 23.8 22.5 22.4 21.0

31.029.1

33.231.2 30.3

26.629.3

26.8

35.92004 2012

Jobs Growth

24,000,000

24,500,000

25,000,000

25,500,000

26,000,000

26,500,000

27,000,000

27,500,000

550,000

560,000

570,000

580,000

590,000

600,000

610,000Hertfordshire (left axis) England (right axis)

Skills Analysis 2014

• The demand for skills and labour is definitely increasing and already showing signs of pressure.

• Although relatively weak compared to the national average, Hertfordshire’s growth rate has exceeded our neighbours, including Thames Valley and Buckinghamshire.

• A number of Hertfordshire districts (St Albans, Watford and Welwyn Hatfield) have had strong employment growth.

• Hertfordshire has a growing productivity gap – with productivity rates significantly below peer economies in the south of England.

• Hertfordshire’s employers are less likely to train their staff than the leading local economies, which may be a contributing factor.

• GCSE attainment is average in the County, particularly compared to neighbouring areas, which may be a cause for future concern.

• Even though the Hertfordshire workforce is highly skilled, the share of residents accessing government-funded FE training is one-third less than the national average.

The SEP...

• SEP document one of the best in the country• Have pushed the growth agenda forward locally• Small number of well developed, prioritised

projects• Willing to negotiate & be flexible• Rewarded with:

– Annual funding in advance– Potential flexibilities in fund allocation

• ‘Signing ceremony’ – Oct/Nov

Funding

Local Growth Fund breakdown (£M)

Funding for 2015/16 20.9

Funding 2016 – 2021 125.93

Previously committed Local Growth

Deal Funding 52.21

Total 199.04

EUSIF (2015-2010)

ESF (skills) 30

ERDF (innovation/enterprise) 30

Total 60

2015/16 dealSLGF (£m)

2015/16Croxley Ra i l Link 4

A1(M) Growth Area Forum/Stevenage 2

M11/A10 Growth Area Forum 0.2

M1/M25 Growth Area Forum 0.25

Broxbourne Enterprise 1.8

Bioscience Cata lys t 3

A1(M) Transport Package 1.3

M11/A10 Transport package 4.68

Daniel Ha l l , Rothamsted 0.5

West Herts Col lege 3

M1/M25 Transport package 0.17

TOTAL 20.9

Growth Hub (tbc) 0.035

GRAND TOTAL 20.935

Funding per head

LEP priorities for 2014/15

1. Gearing up for 2015/16 delivery– Governance– Programme & financial management– LEP team capacity/roles

2. Progressing the ‘big ideas’– Growth Area Forums– Infrastructure fund

3. Preparing for the 2016/17 Local Growth Deal

Governance

Programme & Financial Management

• Assurance Framework with Accountable Body (HCC)– Government guidance due– Work progressing with HCC based on existing arrangements

• Preparing contracts & monitoring arrangements• Revised MOU with HCC• Also working on EU funding programme for

implementation over 15/16• Need to improve LEP capacity in programme

management

Developing Growth Area Forums

• These will articulate and advance economic priorities within functional economic areas

• ‘Form should follow function’ – and function is yet to be fully determined e.g. M1/M25 could focus on:– Impact of London’s Economic Plan – (HS2/Cross Rail)– Developing the Film & Media Sector– Local skills needs

• Business-led economic growth agenda: infrastructure may feature, but not exclusively so

• Input into key county structures/processes – not a replacement for – or threat to – them

Infrastructure Fund

• The need for infrastructure investment is significant: viability gaps are emerging

• For the most part, markets are strong and therefore a revolving fund ought to be possible

• Local authorities will need to be co-investors, alongside central government

• Detailed feasibility and development work needs to be completed

• We need the fund to feature in our 16/17 Local Growth Deal

Preparing for 2016/17 Deal

• Establishing 2016/17 (and onwards) pipeline of projects• Revisiting the lower priority 2015/16 projects• Drafting Growth Deal submission – this would entail:

– Call for projects – September 2014– First draft to Government – November 2014– Final submission – December 2014

• Less funding available in 2016/17 and much quicker timescale than 2015/16

LEP Update

Neil Hayes

15 September 2014