WORCESTERSHIRE LEP BOARD MEETING

Monday 21st November 2016, 2.00 pm - 5.00 pm

BOX 11, SIXWAYS STADIUM, WORCESTER WARRIORS, WORCESTER WR3 8ZE

AGENDA

1. Welcome and Apologies

2. Minutes of WLEP Board Meeting on 19 September 2016 (5 mins)

3. Matters Arising (5 mins)- Action List

- Correspondence

4. Worcestershire Entrepreneurship Strategy – Gary Woodman (60 mins)

5. Connected Strategy for Worcestershire – Steve Ashton (45 mins)

6. Local Growth Fund & Growth Deal 2016 – 2017 Performance – Ian Edwards (30 mins)

7. ESIF Update – Claire Bridges (15 mins)

8. Worcestershire Agri-Food/Agri-Tech Sector Update (10 mins)

9. Any Other Business

10. Board Meetings for 2017:30th January 2017

20th March 2017

22nd May 2017

17th July 2017

18th September 2017

20th November 2017

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1.0 WELCOME & APOLOGIES

PRESENT:Mark Stansfeld (MS) Non-Executive Chair

Carl Arntzen (KA) Managing Director, Worcester Bosch Group

Cllr Linda Robinson (LR) Leader, Wychavon District Council (rep Southern DCs)

Cllr Simon Geraghty (SG) Leader, Worcestershire County Council

Chris Walklett (CW) Partner, Bishop Fleming

Dr Simon Murphy (SM) Non-Executive Chair, Sandwell Local Improvement Finance Trust

Mark Martin (MM) Chair of WLEP Business Board

Nick Baldwin (NB) Chairman, Office for Nuclear Regulation

Prof David Green (DG) CEO & Vice Chancellor of the University of Worcester

Stuart Laverick (SL) Principal & Chief Executive, Heart of Worcestershire College

IN ATTENDANCE:Gary Woodman (GW) Chief Executive, Worcestershire LEP

Ian Edwards (IE) Deputy Chief Executive, Worcestershire LEP

Claire Bridges (CB) Strategy & Partnership Executive, Worcestershire LEP

Diane Dwyers (DD) Executive Assistant, Worcestershire LEP (Note Taker)

Kevin Dicks (KD) Chief Executive, Bromsgrove District & Redditch Borough Council

Steve Ashton (SA) Senior Project Manager, Strategic Change Team, Worcestershire County Council

Graham Pendlebury (GP) DFT, LEP Senior Sponsor

APOLOGIES:Cllr Karen May (KM) Bromsgrove District Council (rep Northern DCs)

(No-one else available to represent Northern DCs but Kevin Dicks is the Chief Exec attending so he can feed back as required.)

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2.0 MINUTES OF WLEP BOARD MEETING

Monday 19th September 2016, 2.00 pm - 5.00 pm

Worcester Bosch Group, Cotswold Way, Warndon WR4 9SW

PRESENT:Mark Stansfeld (MS) Non-Executive ChairCarl Arntzen (CA) Managing Director, Worcester Bosch GroupCllr Linda Robinson (LR) Leader, Wychavon District Council (rep Southern DCs)Cllr Simon Geraghty (SG) Leader, Worcestershire County CouncilChris Walklett (CW) Partner, Bishop FlemingDr Simon Murphy (SM) Non-Executive Chair, Sandwell Local Improvement

Finance TrustMark Martin (MM) Chair of WLEP Business BoardNick Baldwin (NB) Chairman, Office for Nuclear RegulationStuart Laverick (SL) Principal & Chief Executive, Heart of Worcestershire

CollegeProf. Sarah Greer (PG) Deputy Vice Chancellor, University of Worcester (rep

Higher Education)Cllr Karen May (KM) Bromsgrove District Council (rep Northern DCs)Graham Pendlebury (GP) DFT, LEP Senior Sponsor

IN ATTENDANCE:Gary Woodman (GW) Chief Executive, Worcestershire LEPIan Edwards (IE) Deputy Chief Executive, Worcestershire LEPClaire Bridges (CB) Strategy & Partnership Executive, Worcestershire LEPKirsten Dally (KD) PR & Communications Executive, Worcestershire LEPJack Barnett (JB) PR & Communications Co-ordinator, Worcestershire

LEP (Note Taker)Sharon Rai (SR) Inward Investment , Worcestershire LEPIan Miller (IM) Chief Executive, Wyre Forest District Council Phoebe Dawson (PD) Growth Hub Manager, Worcestershire Business CentralMike Ashton (MA) Chief Executive Officer, Herefordshire & Worcestershire

Chamber of Commerce

APOLOGIES:Prof David Green (DG) CEO & Vice Chancellor of the University of Worcester

1.

1.1

Welcome and Apologies

Mark Stansfeld (Chair) welcomed the Board, Professor Sarah Greer (representing Higher Education), Cllr Karen May (representing Northern District Councils) and Ian Miller, Chief Executive of Wyre Forest District Council, apologies noted from Professor David Green.

ACTION

2.

2.1

Minutes from WLEP Board Meeting on 18 th July 2016

The minutes were approved and signed off as a true record by the Board.

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3.

3.1

3.1.1

3.1.2

3.1.3

3.2

Matters Arising

Action List

All identified actions were completed or on the agenda.

The Board specifically noted the letters that went to MPs congratulating them on their new Ministerial posts and the Centre of Vocational Excellence was approved and construction is underway.

GW outlined the recent positive meeting with local MPs to ensure the key messages about LGF3 were understood and able to be conveyed by our MPs into Whitehall. This is with reference to the decision on the allocation of local growth will be made by Ministers in the next two weeks for an Autumn Statement announcement. SG added the meeting went well with the Ministerial challenge session. The vision was put across well and the story of why the projects had been identified/prioritised meant that our story and narrative flowed.

Correspondence

Correspondence was noted and provided background to a number of items on the agenda.

4.

4.1

4.2

4.3

4.4

Inward Investment Strategy - Update

KD delivered a presentation referring to the 5 priorities identified at previous Board meetings; Marketing, Executive Resource, Technology, Engagement and Positive Approach.

KD highlighted the progress made since March with the focus on actions relating to LinkedIn and Twitter accounts have been set up and a new website commissioned. An advert has been placed for the James Caan publication which is distributed to high growth SMEs. With limited budget the WLEP had undertaken specific focus activity.

KD noted that Worcestershire Business Central will attend some investment events and that other external events, such as the Cyber Maryland mission, were under the banner of the Midlands Engine but presented a real opportunity for placing Worcestershire on the map for the Cyber Sector. CW questioned whether direct marketing may be more effective than investment events.

KD highlighted some of the challenges of our experiences on rolling out our inward investment strategy is reaching end users because of limited resources and the lack of a central budget. KD’s recommended solution is to pool resources and to allocate a budget of at least £100,000. Board was in agreement with that approach but questioned if the budget should be higher? SR suggested that pooling resources across a number of partners against an agreed approach would be possible with Worcestershire Business Central and District Councils, in relation to budget available.

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4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

SR highlighted that commercialising inward investment is possible longer term with agent, land and property owners but proof points need to be shown about the approach and delivery of the service.

GW noted that pooling the resources should be the ambition, which the WLEP Board can recommend as the desired approach to investing in this area. The Board agreed this recommendation.

MS highlighted that there is a level of risk in investment and that the budget needs to be spent effectively.

SR continued the presentation. DIT has relevant and accurate information about investing in Worcestershire; they act as a broker between us and the end user. Feedback from end users is not very forthcoming.

SR explained that it is not easy to build relationships with other LEPs for the purpose of investment. There is an opportunity to do this on the higher profile events such as the Cyber Maryland delegation; however, competition is strong at a pipeline level.

MS stated the need for the investment team to create a proactive approach with in-Country investment stakeholders. CW stated that this is not a unique approach to others seeking inward investment. SG noted we need to focus on what is bringing investment into Worcestershire currently and build on it.

SR noted that Worcestershire currently gains investment for pre-defined reasons but lacks the sufficient investment infrastructure. While Worcestershire has a great amount of ambassadors there is no structure in place to utilise these people, however, the County’s CRM is now active and will be accessed by the Inward Investment manager. All partner enquiries will go through the CRM system and partners can also share investment via the system. The LEP Board agreed to allocate up to £50,000 in these outfacing individuals in an ambassadorial role aimed at attracting inward investment.

SR stated more companies are looking to relocate from London as a result of skills shortages. SR has recorded a list of companies that are highly interested in investing in the UK. The WLEP is currently identifying people who would be able to put together a taskforce to formalise the structure. Cyber sector leaders have been identified. CW highlighted that innovation is an important part of attracting investment.

It was agreed that CW would be the WLEP Board member to join the Inward Investment taskforce. The WLEP Board agree the development of a Gold, Silver and Bronze package before November to bring together the offer/pitch to investors.

SR

5.

5.1

Employment and Skills Strategy – Update

This item was deferred to a future agenda.

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6.

6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

Worcestershire Business Central

MA delivers presentation highlighting the four areas of priority following the previous Board meeting; developing a credible brand, the relationship between Worcestershire Business Central and Advised in Worcestershire, highlighting key performance indicators and reporting framework to the LEP and partners.

Worcestershire Business Central is a coordination tool for businesses that identifies needs and solutions. The organisation audits the needs of the businesses and puts them in contact with relevant partners.

Worcestershire Business Central has quarterly partnership meetings which help to develop a two-way relationship and a better understanding with partners. PD highlighted that providers from the private and public sector - the last meeting covered support from Lloyds Bank and Department for International Trade. MA stated that Worcestershire Business Central has a proactive strategy with a mixture of networking, partners and telephony.

SG spoke of the Worcestershire County Council’s survey that was sent to 1,200 businesses, which specifically asked whether companies are aware of Worcestershire Business Central and are awaiting the results.

PD explained the relationship between Worcestershire Business Central and Advised in Worcestershire. Worcestershire Business Central records referrals to Advised in Worcestershire like any other partner, as these are a database of professional advisers.

The targets and business plan of WBC is set by the Growth Hub Board, which is chaired by GW. This has set the reporting framework which will be reported to all partners simultaneously and adheres to Government requirement as well as local partners.

SG stated that scale-up businesses are of particular importance to the County and that Worcestershire Business Central should also prioritise the identification and support of these businesses. GW is working with Tim Maxfield and Worcestershire Business Central to identify the scale up businesses and create a framework of support around them.

A list of 50 scale-up businesses are to be circulated to the Board

It was agreed that Worcestershire Business Central Business Plan and KPIs would be reported and uploaded to the online portal, with a formal report to the WLEP Board annually.

SG

GW

GW

7. Business Board Update

This item was deferred to a future agenda.

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8.

8.1

8.2

8.3

8.4

8.5

8.6

Growth Deal 2016/2017 Performance

IE noted that Malvern Hills Science Park is progressing well and there is a need to open conversation with how much will be claimed in this financial year, but this will become clearer in the next couple of months.

The Local Transport Board will assess whether Kidderminster Station should be scaled down or supported, but the multi-modal transport system remains as the vision.

SG is to organise an urgent Local Transport Board meeting which will decide how much will be spent in 2016/17. This project could generate the first element of headroom.

MS requested clarification before December as to whether project spend is on target for Growth Deal projects. GW agreed that monthly reviews with reports to the whole Board, the Quad meeting on 17th October would be the first of these.

IE summarised all Growth Deal Projects whilst outlining the risks to delivery of the £24.5m targeted for 2016/17. MS and IE agreed there is a potential risk of £7-8m.

SL mentioned the importance of maintaining a balance between skills and infrastructure in Growth Deal projects. IE noted that there are potential opportunities as a result of the forthcoming Autumn Statement.

9.

9.1

ESIF Update

This item was deferred to a future agenda.

10.

10.1

WLEP 2016 Annual Conference

This item was deferred to a future agenda.

11.

11.1

11.2

11.3

VCS Impact and Value for Inclusive Growth

SM is looking to value the impact of the VCS sector and align the sector with the delivery of the SEP, with the potential of developing a report for a more inclusive Worcestershire.

The WLEP Board noted the findings from the initial desk top analysis. SM highlighted the impact, benchmarking and methodology to take this work forward.

WLEP Board agreed that this work should continue and the next steps of the work be pursued.

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11.4 SM highlighted WLEP decisions and influence on the EU Programme has seen Fusion (3rd Sector Partnership) has been more successful in applying for European Funding. The overall likely outcome is that European funding will be decreased, however, the ESIF table shows a number of important projects to be funded and, therefore, the sector will continue to rationalise and show it worth when accessing those in need of into work support.

12.

12.1

12.2

12.3

12.4

12.5

12.6

12.7

Worcestershire County Council Corporate Plan and Relationship with the WLEP Vision

SG delivered a presentation on the emerging corporate plan. The new plan for the next 5 years will be launched at the November Council meeting.

‘Open for Business’ is a key part of the plan, with this one of four priorities to compliment the WLEP vision and GVA target.

The plan also promotes World Class Worcestershire as a connected County, creating a world class workforce and delivering game changer employment while also increasing the average salary.

GP stated that it is important to align the plan with the Government’s views – a government for the many, not just the few. Delivering on innovation may also unlock more funding.

CA highlights how new skills are needed for the future of Worcester Bosch Group along with the need to tackle climate change. The future of the economy in 2030 looks very different.

NB recommends innovation for future Board meeting agenda item.

The Board agreed that at timely reports from partners on their strategic plans would be appropriate at WLEP Board meeting to ensure alignment and incorporation of the WLEP vision.

GW

GW

13. Any Other Business

None

14. Dates of WLEP Board Meetings in 2016

21st November 2016

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3.0 MATTERS ARISING (ACTION LIST & CORRESPONDENCE)

3.1 ACTION LIST

3.1.1 Inward Investment Strategy - Update

SR stated more companies are looking to relocate from London as a result of skills shortages. SR has recorded a list of companies that are highly interested in investing in the UK. The WLEP is currently identifying people who would be able to put together a taskforce to formalise the structure. Cyber sector leaders have been identified. CW highlighted that innovation is an important part of attracting investment.

Action: Sharon Rai

3.1.2 Worcestershire Business Central

3.1.2.1 SG spoke of the Worcestershire County Council’s survey that was sent to 1,200 businesses, which specifically asked whether companies are aware of Worcestershire Business Central and are awaiting the results.

Action: Simon Geraghty

3.1.2.2 A list of 50 scale-up businesses are to be circulated to the Board.

Action: Gary Woodman

3.1.2.3 It was agreed that Worcestershire Business Central Business Plan and KPIs would be reported and uploaded to the online portal, with a formal report to the WLEP Board annually.

Action: Gary Woodman3.1.3 Worcestershire County Council Corporate Plan and Relationship with the WLEP Vision

3.1.3.1 NB recommends innovation for future Board meeting agenda item.

Action: Gary Woodman

3.1.3.2 The Board agreed that at timely reports from partners on their strategic plans would be appropriate at WLEP Board meeting to ensure alignment and incorporation of the WLEP vision.

Action: Gary Woodman

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3.2 CORRESPONDENCE

3.2.1 Letter dated 24th October 2016 from LEP Network to the Chancellor of the Exchequer re LEPs delivering more for Government.

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3.2.2 Letter dated October 2016 from the West Midland LEP Chairs to the Rt Hon Greg Clark MP re The West Midlands and the Development of the Industry Strategy.

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Note: This was signed by all WM LEP s Chairs

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4.0 WORCESTERSHIRE ENTREPRENURSHIP STRATEGY.

WLEP BOARD RECOMMENDATION The WLEP Board should provide strategic leadership and clarity of partner’s

role and remit.

Note that good progress is being made with the Jenny Lind building and the approval of £250,000 in this financial year to create a pilot incubator.

WLEP to invest in an incubator facility, which needs a feedstock of graduates and students and would be supported by managed workspace in location around the county.

Discuss the services of the incubator and agree the principles of operation.

Note the current progress of initiatives which support the development of an incubator, listed in 4.4.1.

Agree that the development fund within Growing Places can fund an additional executive post to lead the development of the incubator.

4.1 Background

4.1.1 In September 2015, the Worcestershire Local Enterprise Partnership (WLEP) approved the establishment of Worcestershire Innovation Network (WINN) with a financial contribution. The partners of this initiative are Worcestershire LEP, QinetiQ, Worcestershire County Council, Central Technology Belt, Herefordshire and Worcestershire Chamber of Commerce and University of Worcester.

4.1.2 WINN has established an operational mission to be a ‘pivotal advocate for innovation that develops, elevates, manages and influences a collective strategy; coordinating and delivering interventions that benefit innovators, enablers and exploiters whilst facilitating job creation, productivity and growth.’ WINN has been responsible for the delivery of Worcestershire Innovation Wednesdays – free for businesses to attend, these events have happened once every two months with tangible results being noted from each event.

4.1.3 WINN has had a ‘bottom up’ approach focused on creating a business environment that fosters a community of innovators from across Worcestershire and beyond. WINN has generated a survey from those attending the networking events and the results show the need for a business support infrastructure to encourage innovation. This needs to be developed alongside collaborative workspaces.

4.1.4 The outcomes expected from September 2015 WLEP Board that were anticipated from WINN were:

Creation of a Worcestershire Innovation Programme and an executive team to support this. This will be supported by a board from the private, public and academic sector.

Ability to bid for funding sources to support the businesses and entrepreneurs in the county.

A network of businesses who are introducing new projects and products Creation of an environment in which 'spin outs/staff mutuals and new business

development is encouraged and nurtured through access to networks, identification of

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new market opportunities, dissemination programmes to SMEs and supply chains and links to business support and finance

Hosting of programmes to develop businesses, academics and individuals on key themes such as technology, innovation and knowledge transfer i.e. Worcestershire Innovation Wednesdays

Encouraging / facilitating a new culture of working between industry and academia, changing behaviours and breaking down boundaries to encourage innovation

4.1.6 WLEP has worked with a very similar group of partners to develop a programme of scale up business support through a working group, which has met separately. It is clear that the WLEP Board needs to provide the strategic lead and clarity of the strategic approach, in particular define the role and remit of each partner in this sphere. Over the next couple of years a focused strategy is required with limited resources from any Local Growth Fund settlement, Growing Places or EU funding that the WLEP will have to impact this topic.

4.1.7 Before explaining the vision and principles of an incubator, it should be remembered that the WLEP Board approved funding of £250,000 to create a flexible space that could pilot a facility creating physical focus for the Worcestershire Centre of Entrepreneurship. The Jenny Lind Building in the centre of Worcester has been identified and spend is underway.

4.1.8 The CEO of the WLEP has also been to visit two international examples over the previous month.

1) Valencia, with the University of Worcester. This model was backed by the University of

Valencia. Whilst working with students to deliver courses and qualifications, the delivery model was backed by significant private sector support with the aim to increase the level of entrepreneurism in the community. Valencia had a building which enabled them to teach and have flexible workspace in one location. After a number of years the management team had created a graduate model which was creating many enterprises in the local community – not all were successful, but the increase in business ‘savvy’ individuals was a noticeable outcome.

2) Baltimore, USA. As part of the Midlands Engine trade mission to Baltimore the delegation visited a cyber-security incubator as part of the University of Maryland. This was a very high spec building, with high security and flexible meeting space. Interestingly they had another building located in the middle of the city which was more functional and provided services and training to entrepreneurs at a low cost.

4.2 Why invest in an incubator facility – as part of an entrepreneurship strategy?

4.2.1 The development of an incubation facility establishes a focal point for the Worcestershire entrepreneurial community to meet, gather and generate ideas. This, alongside support, contributes to the promotion of Worcestershire, as a creative and dynamic economy, within the Worcestershire LEP 10 year vision. It should be noted that by just creating the building does not guarantee success of creating new dynamic businesses. It is important that the support and culture within the community is fostered to make a real difference. Appendix 1 shows how the incubator is positioned in the wider Worcestershire ecosystem.

4.2.2 We need to be clear about the definition of incubator, as many small flexible workspaces that are named as incubators, are actually just managed workspace. WINN have categorised three types of incubator models: 1) Competitions – companies that are posted challenges or offer chances for entrepreneurs and businesses to gain contracts; 2) Stand alone – individual entities either commercially or publically supported; 3) Commercial – innovation model linked to commercial enterprise.

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4.2.3 Accepting that the incubator is one facility, which is supported by a network of managed space in locations around the County. Also, agreeing the principal that the incubator needs a feedstock of graduates and students ( not just from the business school), then this facility has to be in the City.

4.2.4 The development of an incubator is important for the following reasons:

A) There is a lack of flexible workspace in an environment that allows for creative thought and development of companies.

B) In order to create a community where cross-pollination of ideas and mutual support takes place.

C) There needs to be a relationship between the incubators and existing businesses located across the county through a smaller network of premises. However the City creates the focus on the transport network and has a supply of students; both HE and FE.

D) Worcester city has already seen the development of a creative group based on technologies that are looking to support creative technology based start ups. - The Kiln - http://thekiln.co/

E) The benefit of bringing together the interventions that support entrepreneurs along the innovation lifecycle, such as mentoring, finance, advice and support programmes based outside of Worcestershire. This initiative then becomes the focal point for innovation development and a Worcestershire ecosystem.

F) Although not an exhaustive list this adds to the PR story of Worcestershire being a creative and dynamic place which creates businesses and opportunities in the local economy.

4.3 What are the services the incubator should provide?

4.3.1 Following research by WINN and viewing the international models referred to earlier in this paper, there are a number of principles/conclusions that can be drawn together under four key topics of operating a incubator and should match the aspirations of the Strategic Economic Plan. These are;

1) Training & Qualifications

- Business School Entrepreneurship – Degree and Masters programmes- Business Development Programme – Scale Up – Series of short courses- Specific Short Courses – 1 ½ hour workshops / evening type activity- Mentors and Business Advice and Support – 1 to 1 or 1 to peer group- Access to research and knowledge hubs – Catapult Centres / Centres of Excellence

2) Accommodation and Space

- Flexible office and space- Maximum of 12 month period in the incubator- meeting rooms and hot desks- Centrally located in the County, with other flexible facilities around the County.- Access to IT and Manufacturing equipment - Sector Agnostic- Access to University research

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3) Users

- Under and Post Graduates- Existing Worcestershire businesses with new product ideas- Family owned businesses- Older Start Ups- National programmes /competitions

4) Support structure

- Mentoring- Business Angels / Venture capitalists- Professional Services- Public sector support structure- Finance – Midlands Engine Investment Fund, Worcestershire Development Fund etc.

4.3.2 The WLEP Board to consider the list of service and agree the principles of operation of a facility which is developed.

4.4 Implementation of an Incubator4.4.1 The development of a building does not lead to the cultural change that is desired unless

the business support and training are delivered alongside this. Also, the flow of people, ideas and opportunities. The individual progress of the approach currently taken by the WLEP includes the following initiatives;

A) Completion of Jenny Lind Building by the University of Worcester in the city.

B) Calls are prepared for future projects under the EU programme for innovation (PA1). This would include supporting the programme team of WINN and the creation of an incubator facility. This would provide capital and revenue resource of £2.6m, with a total project costs of £5.6m. This would need to be spent by 2019.

C) University of Worcester supported by HW Chamber of Commerce have created a programme of ‘scale- up’ short course, this will be piloted at cost from January to March 2017.

D) University of Wolverhampton have already invested in Wyre Forest and are looking for further expansion to create a hub in the Kidderminster area.

E) The financial input with the Midlands Engine Investment Fund and Worcestershire Development Group providing a route to support these new businesses to scale with access to finance solutions.

F) Opportunities for other partners to provide accommodation in county geographies; such as H&W Chamber of Commerce, Severn House, Pershore College, Heart Of Worcestershire College in Bromsgrove and Redditch.

4.5.2 Other considerations that the WLEP Board need to discuss:

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A) Additional Executive support to lead the development employed by the WLEP lead the development of the incubator, working with partners.

The post would be responsible for creating an environment and developing platforms for building businesses in Worcestershire and responsible for refining and executing the ‘go to’ market plan based on collaboration within technology locations, leading the communication effort and client/stakeholder management.

The person is all about creating market awareness, developing the market, building momentum and on the back of this, delivering revenue.

If successful with first phase project deliverables would include setting up a team to manage the incubator which must breakeven or return a profit to the shareholders of the incubator.

B) A business plan for the incubator should be created which takes a percentage of professional services and finders fee type revenue from venture capital, business angels and investors.

Appendix 1

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5.0 CONNECTED COUNTY VISION

WLEP BOARD RECOMMENDATIONThe WLEP Board to approve the approach and direction of the future Connected Worcestershire strategy; with particular reference to:

The vision for the programme that complements the overall WLEP vision

A view of the need/want for multiple horizons

What are the priorities to invest limited resources

Agree some next steps in order to bring forward a clear plan for action

5.1 Background

5.1.1 This Board paper provides an overview of the digital connectivity progress in the County, with a particular reference to the vision of a connected County that enables economic growth and jobs. It should not be considered a definitive list of options, scenarios or opportunities; it should provide a base of ideas/challenges for us to work from in order to take future actions.

5.1.2 The Superfast Worcestershire Programme is designed to deliver fibre broadband to areas of the county where it has not been commercially viable for private companies to deploy. It is scheduled to be completed by autumn 2017 and will extend superfast speeds (24Mbps+) to c.94% of all premises. There is an opportunity to reinvest 'claw back' capital to extend coverage further. We have also deployed a fixed wireless solution into 14 rural parishes in the county.

5.1.3 Beyond broadband, availability of public Wi-Fi in town and retail centres has previously been investigated and there are opportunities in this area. There is an increasing focus from senior stakeholders into the current situation/future development of mobile connectivity in the county i.e. MP session in October. A current Viewpoint survey seeks feedback from local businesses in respect of connectivity, results of which are expected to be available in December 2016.

5.1.4 Mobile Operators have made a nationwide commitment to reach 90% geographic coverage of the country by the end of 2017; however, this commitment only extends to voice coverage. Whilst we are aware of issues in Worcestershire around the coverage and 'drop-off' on voice calls; businesses and residents also have a high demand for data, expectations are that the infrastructure is in place for the latest devices to work quickly/ effectively i.e. good 4G coverage and therefore speed of data.

5.1.5 Developments in technology continue to move at pace, services such as 5G are expected to become available from 2020 in major cities. Demand for bandwidth on both fixed broadband and mobile data will continue to grow and an increasing number of opportunities to improve quality and efficiency for the whole of Worcestershire will appear, through 'smart cities/counties', 'assistive technology' and the 'Internet of Things'.

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5.2 Discussion points

5.2.1 Do we need a vision for the connected County that is easy to understand by the average resident and business owner as Worcestershire: Connected for the Next Generation: Superfast, Ultrafast and 5G – does not explain it.

5.2.2 What are the benefits of delivering this strategy?

a) Attract new businesses into the county

b) Support existing businesses to grow and retain them in the county

c) Do we want to grow a specific market to act as a 'flagship'? We had agri-tech, cyber etc.

d) Worcestershire; a better place to work and live

e) Grow business-to-business sector or focus on one of 8 next technologies i.e. Robotics/big data.

5.2.3 Do we want/need multiple horizons to our vision? Is it possible to skip one technology to get ahead with the next?

An example of this would be:

Today – Deployment of Superfast broadband – facilitate commercial deployments of mobile and broadband

2018 – Strong 4G networks in the county and ultrafast available at 'Key Business sites'.

2020 – '5G' networks deployed across Worcestershire at the same time as in major global cities. One or more flag ship towns/unique/early adopting concepts.

Beyond – What's the next technology – Centre for 'automated vehicle testing' a fully integrated smart transport network – off the back of big Highways, road and rail projects.

5.3 Where would we invest our limited resources to gain greater private sector investment?

a) Superfast/Ultrafast broadband – Fibre and fixed wireless

b) Business focussed broadband solutions

c) Existing and growing 4G coverage

d) Head start on many areas with 5G

e) Provision of basic broadband i.e. Satellite

f) Free access to good grade 'Wi-Fi' in public spaces

g) Smart Cities/a smart county

h) Innovative tech in both public and private sectors (what???)

i) Do we want to encourage building of 'data-centres'

5.3.1 All these opportunities need to be considered against:

a) Improving existing services (need/demand)

b) Utilising our assets (whilst understanding their value)

c) Making life easier for commercial providers

d) Stimulating/subsiding markets

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5.4 Potential Assets:

5.4.1 Existing group of engaged broadband stakeholders – utilise these at an operational level to deal with immediate facilitation issues commercial mobile operators may be having – planning – speaking to the right people. Lobbying/campaigning to relax restraints on heights of masts?

5.4.2 Consider what our estate is i.e. land, buildings, street furniture – partnerships with districts? 'Place Partnership' – How do we utilise this? Make information available? Act as agent? Could we also bring in private partners who are keen to engage i.e. standard wayleave, commercial approach to value of assets? Do we want to build 'masts'?

5.4.3 Highways – Our approach to Highways management is praised by the 'Openreach' team, by making it easy to work with us, we can support the commercial deployments of fibre/mobile backhaul.

5.4.4 Local commitment to projects either 'direct' i.e. establish local business case and build masts or 'indirect' i.e. seek/secure funding for initiatives such as a 'digital local high street' or a digital flood warning system/advanced travel management that requires an investment in infrastructure to make it happen.

5.5 Current Opportunities

5.5.1 Re-investment of 'Claw back' from Superfast contracts – BT has currently modelled two scenarios of reinvestment. These currently focus on extending superfast coverage in rural areas. We also have an ESIF application in the pipeline to extend broadband with a focus on business coverage.

5.5.2 Commercial/community led broadband build - BT, Virgin and Gigaclear. (We loosely facilitate these) – We can do the same for mobile – likely to require further partner commitments and small additional PMO resource. In particular Gigaclear FTTP build both broadband and as potential 'mobile backhaul'

5.5.3 A number of models exist that would allow for deployment of 'Wi-Fi' broadband in public areas. New EU funding is coming online next year for Wi-Fi in public areas (likely to require ongoing local maintenance).

5.5.4 Utilising relationships to put Worcestershire, or a location within, in position as a test bed of any new tech.

5.6 Next Steps

5.6.1 What is the next technology – where should we prioritise our efforts?

Resourcing required/commitments?

How do we start to build the plan?

5.7 Background Information

5.7.1 Other useful background reading for context

5.7.1.1 Link to the current Superfast Worcestershire deployment map – funded to autumn 2017. http://www.superfastworcestershire.com/assets/file/20150326_Deployment_map.pdf

5.7.1.2 Interesting recent article on how mobile network build are starting to change https://techcrunch.com/2016/10/28/three-reasons-carriers-are-building-new-cell-networks-for-the-internet-of-things/

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5.7.1.3 Useful point for information on IoT and opportunities in public sector / communities (link to attached doc) http://smartcitiescouncil.com/article/how-cities-around-world-are-enhancing-urban-lifestyles-internet-things

5.7.1.4 Two European documents attached, the first one on 5G Action Plan (Good read) the second on broader connectivity, much longer and I need to read properly myself – Figures on pages 17-19 are useful for context on applications and requirements.

5.7.1.5 The 5G Public Private Partnership: Decent website for investigating and reading (videos are either too simple or too techy – not really strategy focussed – the one on the home page is a good intro and the banners give a good visual to pitch to people) https://5g-ppp.eu/

5.7.1.6 University of Surrey 5G Innovation Centre http://www.surrey.ac.uk/5gic

5.7.1.7 Article from Huawei: http://www.huawei.com/en/news/2016/5/UKs-leading-smart-cities

5.7.1.8 A little dated from 2015 - still a good short video to what a 'Smart City' is can we get a contact at Bosch? http://www.bosch.co.uk/en/uk/sustainability_innovation_2/bosch_at_ces/smart_cities/smart_cities_1.html

5.7.1.9 Short study from Kings College London on UK Smart Cities http://www.smart-eco-cities.org/wp-content/uploads/2016/03/Kings-College-London-UK-Smart-Cities-Survey-2016-summary.pdf

5.7.1.10 See detail in link for identified gap in UK http://www.digitalstrategyconsulting.com/intelligence/2016/07/smart_cities_warning_uk_councils_not_on_track_delivery.php

Steve AshtonSenior Project Manager, Strategic Change Team Commercial & Change Worcestershire County Council

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6.0 GROWTH DEAL 2016/2017 PERFORMANCE

WLEP BOARD RECOMMENDATION(i) That the Board notes the current position in respect of the 2016/2017

programme and endorses the measures proposed in 5.1.4 to mitigate the risk of underspend.

(ii) That the Board agrees to retain the Kidderminster Station Project in the Growth Deal programme with a budget of £429,000 in 2016/2017 and £2,071,000 in 2017/2018.

6.1 Report Details

6.1.1 The total Growth Deal budget available in 2016/2017 is £24.1m and at the end of September 2016, the actual expenditure against approved projects stood at approximately £5.6m.

6.1.2 During October 2016, The Accountable Body, on behalf of Worcestershire LEP, examined the expenditure profile for all Worcestershire County Council led schemes to provide an accurate forecast of the best, worst and most likely financial outturns for all such projects in 2016/2017. In addition, the WLEP Executive examined the same information for all non-Worcestershire County Council led schemes. A summary of this work was reported to the Quad at its meeting on 17th October 2016.

6.1.3 Table 1 attached identifies the ‘most likely’ option. For information, the best case scenario totalled £26.2m whilst the worst case was £15.8m.

6.1.4 To achieve the ‘most likely’ outturn scenario, several actions are required as follows:

(i) Maximise the outturn on the Pershore Lane scheme by claiming an element of Worcestershire County Council’s (WCC) spend on the scheme in lieu of WLEP expenditure. WCC will then utilise the WLEP funds in 2017/2018. This is possible as WCC is committing up to £1.7m of on-site works this year.

(ii) WLEP meet all costs, up to the maximum investment of £11.222m, for the Southern Link Road in 2016/2017. Again, this is possible as WCC is also investing capital in the scheme during 2016/2017 2017 and WCC will then utilise the WLEP funds in 2017/2018.

(iii) The Board has already approved a grant of £102,000 to Malvern Hills District Council (MHDC) to acquire Park Farm in Malvern. The full cost of acquisition being £492,000 with MHDC providing the balance of £390,000. It is recommended that WLEP provides the full acquisition cost of £492,000 which will be spent in 2016/2017 on the basis that MHDC use £390,000 of their own resources as a contribution towards the acquisition of the QinetiQ land in 2017/2018.

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6.2 Kidderminster Station

6.2.1 The Board will recall that at its meeting on 18th July 2016, reference was made to the Kidderminster Station project which was included in the original Growth Deal programme with a budget allocation of £2.5m from Worcestershire LEP with match funding of £1.8m from Greater Birmingham and Solihull LEP.

6.2.2 Concern had been expressed by the LEP Executive that the scheme was in danger of departing significantly from its original intent and had been delayed to such an extent that the £2.5m programmed for 2016/2017 had already been slipped to 2017/2018.

6.2.3 The Board agreed to invite the Local Transport Body (LTB) to assess the scheme and recommend a course of action to either:

(i) Retain the scheme in the programme at the current budget

(ii) Retain the scheme in the programme at a reduced budget

(iii) Remove the scheme from the programme

6.2.4 At its meeting on 17th October 2016, the LTB received a presentation from Ian Baxter, Director of SLC Rail who had relatively recently been appointed by WCC to prepare the outline business case for the scheme.

6.2.5 The presentation focussed largely on the emerging Worcestershire Rail Investment Strategy being developed by WCC and the strategic role that a redeveloped Kidderminster Station would play in delivering that Strategy.

6.2.6 The presentation was universally welcomed by the LTB who took confidence in both the role SLC were now playing in the formation of the Business Case for the scheme but also in terms of the strategic fit with the emerging Strategy.

6.2.7 On that basis, the LTB recommended to the Board that:

(i) The scheme is retained within the Growth Deal programme at its current budget of £2.5m with £429,000 in 2016/2017 and £2,071,000 in 2017/2018.

(ii) The LEP Board receive a presentation at a future meeting on the Worcestershire Rail Investment Strategy

Ian EdwardsDeputy Chief Executive

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7.0 ESIF UPDATE

WLEP BOARD RECOMMENDATIONThe WLEP Board is recommended to:

a) Note the Chancellor’s recent statement regarding the ESIF 2014-2020 Programme

b) Endorse the current position on ESIF Delivery in Worcestershire and the proposed ERDF, ESF and EAFRD Calls for funding applications.

7.1 Government ESIF Position

7.1.1 On 3 October 2016, the Chancellor made a further announcement that the Government will now guarantee EU Structural and Investment Funds projects signed after the Autumn 2016 Statement and which continue after the United Kingdom has left the European Union. His previous statement in August 2016 only guaranteed projects which had been signed before the Autumn Statement. This means that providing project agreements are signed before the United Kingdom departs the EU, the funding will be secured. The Chancellor emphasised that these projects need to be in line with domestic policy, strategic priorities and be good value for money. These fundamental conditions are expected to be set out in more detail after the Chancellor’s Autumn Statement on 23 November 2016.

7.1.2 The Chancellor’s extended guarantee is welcomed as, subject to the additional conditions, the Government is honouring the whole ESIF programme allocation for Worcestershire (Euros 68m). It means that businesses and other organisations should continue to apply for EU funding while the UK remains a member of the EU until the expected exit in 2019. The application of the extra conditions is not expected to disrupt the current pipeline of committed projects.

7.1.3 Given the national over-subscription of LEPs’ bids for Growth Deal 3, it is clear that the ESIF Programme continues to be a significant funding source to deliver the WLEP’s Strategic Economic Plan ambitions in Worcestershire.

7.2 Worcestershire ESIF Stakeholder Engagement

7.2.1 The WLEP Executive continues its constructive collaboration with stakeholders from the WLEP Area ESIF Sub Committee, National LEP Network, Government Departments and the Managing Authorities. This approach is ensuring effective delivery during the remainder of the ESIF Programme Period 2014-2020 as well as positioning Worcestershire in the shaping of domestic programmes post-Brexit.

7.2.2 Recent verbal feedback from the WLEP Area Managing Authorities (DCLG, Defra and DWP) confirms that Worcestershire continues to register a positive, high profile through its early delivery focus combined with a creative, pragmatic approach to local-to-national solutions. The WLEP Area is positioned well as a practical, delivery “test-bed” for any Government Post-ESIF national policies and programmes development, especially representing areas outside the English Core Cities.

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7.3 Worcestershire ESIF Delivery

7.3.1 The Worcestershire LEP Area European and Structural Funds (ESIF) Sub Committee is in its second year and is now seeing substantial programmes and projects getting underway through European Regional Development Fund (ERDF), European Social Fund (ESF) and EAFRD (Rural Development) Programme.

7.3.2 Under the leadership of Chris Hallam, the ESIF Sub Committee comprises representatives from voluntary, business and public sectors providing valuable local insights, knowledge and expertise on all potential and approved projects. It is responsible for delivering the WLEP’s ESIF Strategy and steering almost £53m of EU funds allocated to Worcestershire.

7.3.3 The ESIF Sub-Committee’s Marketing and Communications Plan provides a foundation for co-ordinated promotion and engagement initiatives across Worcestershire. This approach brings the Sub-Committee together with other key partners such as Worcestershire Business Central, County and District Councils, Fusion Partnership and major third sector providers, Local Nature Partnership, LEADER Programme, Training and Skills providers and all business member organisations such as HW Chamber of Commerce, FSB, NFU and CLA. WCC has been allocated £0.46m ERDF and ESF Technical Assistance funding to promote EU programmes and support project development with a range of applicants in Worcestershire.

7.3.4 Working with SME businesses and steering the conversion of proposals into more robust and tangible project applications benefitting Worcestershire people, places and businesses remains the top imperative. Delivery of the ERDF, ESF and EAFRD Programmes is summarised follows:

A total of £13m ERDF funding is being delivered through a range of business support programmes promoted to aid SME business competitiveness

Enterprising Worcestershire Start Up, High Growth and Business Growth support programmes

Business Energy Efficiency Programme, Target 2020 and Worcestershire Low Carbon Business Programme supporting SMEs shift to a low carbon economy while improving their own efficiency and effectiveness

Worcestershire Proof of Concept Programme encouraging research and innovation

Enhancing International Trade

Investing in Growth to consolidate World Class Worcestershire offers

Worcestershire Business Central “Scale Up” Growth

Worcestershire Growing Cyber 2 to improve SMEs digital security

Worcestershire Superfast Broadband

Five EAFRD Projects worth £530,000 in total are directly supporting horticulture, food processing, business expansion and increased productivity in rural areas of Worcestershire.

ESF Projects with a total value of £7m have begun to help people across the spectrum in accessing wide ranging support to secure initial or better jobs. Projects include:

Into Work Worcestershire, created by Fusion Partnership, delivering two Building Better Opportunities Projects sponsored by the Big Lottery Fund. The initiatives, launched at the Worcestershire Inclusive Growth event, September 2016, aim to provide tailored support to help socially economically excluded people develop lifelong skills and overcome individual barriers to employment

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Three Skills Funding Agency sponsored projects which support unemployed, Pre-NEETS/NEETS and employees with intermediate and higher skills development

Building Better Opportunities Project 1 Call was re-launched during the Summer 2016 and applications are currently being assessed with delivery expected in 2017.

7.3.5 Further planned Calls across the three ESIF programmes will commence in Autumn 2016 as follows:

Remaining balance of £8m ERDF will invite applications across four themes to support businesses on Innovation; targeted sector support; Low Carbon projects; and Green/Blue Infrastructure schemes which protect and promote environmental resource efficiency.

Midlands Engine Investment Fund (ERDF £5.6m) project to support SME businesses is due to commence in 2017. This is a partnership between the WLEP, West/East Midlands LEPs with British Business Bank, to establish a “fund of funds” which provides affordable finance to SMEs in the form of equity and loans and, ultimately, create a sizeable legacy for future area reinvestment.

Additional £18m ESF funding will further consolidate the WLEP’s Inclusive Growth ambitions. More employment and skills packages are expected to offer accessible, tailored support around lifelong learning and up-skilling, traineeships, apprenticeships and specialist sector employment, particularly for people remote from the labour market.

A £0.5m programme spearheading SME Leadership Succession Planning will be re-launched

Major £1.6m EAFRD Multi-Measure Call to provide direct support to growing rural businesses, horticulture/food processing enterprises and tourism co-operation /infrastructure projects

7.4 Partners and Engagement

7.4.1 The WLEP has conducted comprehensive consultations and engaged partners representing public, private and third sectors across Worcestershire throughout its SEP and ESIF process. The WLEP has been able to draw representation from the segmented interests required under Government Guidance and continues its commitment to stakeholder involvement. A wide range of partners and interested parties are now converting their involvement into a delivery focus, nurturing and developing projects and pipelines which will implement the Worcestershire LEP Area ESIF Strategy through ERDF, ESF and EAFRD Operational Programmes.

Claire BridgesStrategy and Partnership Executive

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8.0 Worcestershire Agri-Food/Agri-Tech Sector Update

WLEP BOARD RECOMMENDATIONThe WLEP Board is recommended to:

a) agree the Worcestershire Agri-Food/Agri-Tech Sector Development Framework as a cohesive sector growth plan which will also influence emerging Government Industrial Strategies

b) approve the Worcestershire Horticulture Strategy

c) confirm Worcestershire LEP’s commitment as a leading partner in the emerging Agri-Tech West Alliance

8.1 Context

8.1.1 The Strategic Economic Plan (SEP) and European Structural Investment Funds (ESIF) Strategy Sector sets out the ambition and priority focus for increased growth, productivity and jobs in the Agri-Food and Agri-Tech sector. Since this strategic framework was established, extensive discussions and consultations have been held with a wide range of diverse interests across the whole sector to shape the best way forwards in realising the WLEP’s ambitions.

8.1.2 The Government landscape is shifting simultaneously. At the recent WLEP Annual Conference, The Rt Hon Sajid Javid MP, Secretary of State for Communities and Local Government used his keynote speech to reaffirm LEPs as a fundamental part of the local architecture for growth. He endorsed the continued drive on delivery while recommending that the WLEP takes every opportunity to influence and shape the planned Government refresh of Industrial Strategies.

8.1.3 The shape and scope of a UK-wide Industrial Strategy, and sector specific industrial strategies, are yet to be explained but are understood in principle to:

balance sector specific needs with broader cross-cutting objectives such as improving productivity

steer economic growth in UK nations and regions, geographical focus

improve access to finance and investment

support innovation, new technologies and processes, research and development initiatives

support trade and investment, future of UK competitiveness and exports

support skills development, strategic focus and priorities on skills gaps

address major challenges and opportunities presented by Brexit

establish the degree of intervention and priorities for businesses/sectors

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8.1.4 The WLEP has established a very good reputation with Government for its ambition, innovative development and leading ability to achieve effective delivery, particularly in the context of ESIF programme and project delivery.In terms of ERDF and EAFRD (Rural Development) Programmes, the WLEP has been identified as an “early adopter” leading other LEP Areas positively as well as delivering faster-paced, tangible results benefitting SME businesses. On the basis of this successful reputation, the WLEP has offered to be a locality which contributes and shapes new Government policy thinking and, in turn, future local-to-national programmes.

8.1.5 In particular, the WLEP has already volunteered to work with Defra (Policy Lead), Rural Payments Agency (Delivery), BEIS (Industrial Strategies), other LEPs and Government Departments and the industry to refresh the Agri-Food/Agri-Tech and Rural Productivity Industrial Strategies.

8.1.6 Defra has welcomed the WLEP’s offer based on its clear ambitions, pragmatism, creativity, and successful early EAFRD Programme delivery. The WLEP area can be a pioneering practical “delivery test-bed” and work with pilot business demonstrators which fulfil Defra and WLEP sector aims as well as be at the heart of the key development period for any Government Post-ESIF national policy and programmes thinking.

8.1.7 Defra has an established long term Food and Farming Plan which recognises the thriving UK industry as a cornerstone of job creation and growing local and national economies. It champions technology; commits to building skills, increasing apprenticeships and bringing a new generation into the sector; encourages entrepreneurs; boosts exports (through the Great British Food Campaign) and attracts investment.

8.1.8 In particular, food security is important in terms of boosting UK production and securing stable food supplies, reducing reliance on imports, mitigating against price volatility and consolidate domestic and international trade. The Worcestershire sector ambition chimes with these strategic principles.

8.2 Worcestershire Agri-Food/Agri-Tech Sector Development Framework

8.2.1 The sector in Worcestershire, and as a whole, is not one homogenous entity. It is the sum of divergent and nuanced specialist sub- sectors within which individual businesses planning increased growth and productivity can select from a wide ranging menu of options and solutions.

8.2.2 The sector ranges from the traditional agricultural, horticultural, forestry, food/drink processing and associated land management practices to the transformational shift being brought about by technological advancement through, for example, machine manufacturing, chemical processing, software design, satellites, drones, hydroponics and robotics.

8.2.3 The Worcestershire sector profile and extensive consultation therefore indicates that a shared delivery framework which recognises the diversity of the industry would be a better approach than attempting one single Sector Strategy. It is also apparent that SME business are well aware of the latest technological advancement in the UK and internationally which suits their particular needs but need help in brokering individual relationships to aid their competitive advantage and productivity.

8.2.4 Local businesses, and indeed the WLEP itself, are more committed to building up innovative growth and productivity through tangible projects offering high quality products and services which give individual businesses and Worcestershire a competitive edge in the industry as well as further heighten the good reputation.

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8.2.5 The Agri-Food/Agri-Tech Sector Delivery Framework comprises a range of business-led activities underway alongside planned new targeted initiatives. It establishes a coherent framework of opportunities across the sector landscape which is spearheaded by business-led project delivery as the foundation.

8.2.6 It reflects the WLEP’s pragmatic reputation as well as suits sector businesses in their preferences to explore applied, tailored research and innovation to boost individual productivity and business expansion plans. It provides a robust platform from which the WLEP and businesses can contribute towards Government policy development, new national programmes and cumulatively extends the WLEP’s and the sector’s positive profiles. The remainder of the report outlines the main foundations of the Delivery Framework which are connect together and mutually consolidate the whole approach.

8.2.7 Existing Business-led Sector Projects comprise:

Five EAFRD (Rural Development) Projects worth £530,000 in total are directly supporting horticulture, food processing, business expansion and increased productivity in rural areas of Worcestershire.

A further £1.6m EAFRD (Rural Development) funding will provide direct support to growing rural businesses especially horticulture and food processing enterprises with an opportunity to establish a new Food Festival during the next two years

The complementary LEADER Programme has funded £43k small scale Agri-Food business expansion schemes in rural areas to date and anticipates a further £510k being spent in the remaining programme period

A specialist Agri-Food/Agri-Tech Gateway (funded by ERDF Programme) co-ordinating industry, local and national business support to augment Worcestershire Business Central. Part of wider alliance helping the industry with three other LEPs (see Agri-Tech West Alliance below)

A range of generic ESF Programme funded Inclusive Growth projects targeting sector skills development through support for the unemployed, Pre-NEETS/NEETS, employees with intermediate and higher skills, traineeships, apprenticeships, SME Leadership Succession Planning, up-skilling employees, BLF/Building Better Opportunities projects tailoring support to help socially economically excluded people develop lifelong skills,

Sector-specific skills development driven primarily by Pershore College (RHS and horticulture specialist expertise) and Heart of Worcestershire College (complementary sector training packages)

New National Centre for Horticultural Excellence at Pershore College (£500k match funding) from the WLEP’s Skills Capital Fund/Growth Deal Round 2. This is a dedicated space tackling the current skills shortages in agriculture and horticulture which constrain the sector’s growth, productivity, competitiveness in an increasingly technologically driven industry. Active industry participation, practical demonstration and shared learning will be fostered. The facility will develop small scale applications demonstrating innovation, flexibility and accessibility of technology to local growers. It will comprise an Agri-Tech applications laboratory, live field-based experimentation and demonstration facility which will provide a ‘test bed’ for the development of solutions for growers and demonstrate the scalability of those solutions.

Better Business for All UK Regulatory Exemplar for the Agri-Food AgriTech Sector being pioneered by Worcestershire Regulatory Services with SME businesses in the “field to fork” food supply chain Aim to achieve one simplified, combined

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Accreditation/Self Compliance Scheme. Annual WRS Food Award Scheme and the Asian Seminar Programme (winning the National BBfA Innovation Award) simultaneously recognising high quality SME food businesses

Individual Commercial Innovative Projects include the major Vertical Farm proposal and exploration of a Food Technology Zone in North Worcestershire, both of which are undergoing substantial confidential discussions and development at present

8.2.8 Wychavon District Council is leading a partnership and public consultation to develop a Local Development Order (LDO) and, ultimately the Food Enterprise Zone, on Vale Park, Evesham. The adoption of the South Worcestershire Development Plan (SWD) will confirm the LDO. There is a significant presence of food processing, packing and distribution on Vale Park. The long term ambition includes:

expansion of existing business operations

securing new investment

a training presence incorporating syllabuses, involving Pershore College (horticultural specialism) and Heart of Worcestershire College

greater supply chain presence including agricultural engineers, food testing, product development and logistics

provision of nursery/crèche facilities for the workforce (major issue for Vale workers)

streamlined and supportive business-facing planning and regulatory experiences which help existing businesses, attract inward investment and generate business growth

integration of sustainable development realising environmental assets to aid economic growth through collaboration with Local Nature Partnership, Environment Agency, Natural England, Forest Commission and Local Planning Authorities

8.2.9 Complementary activities are underway to create the right conditions for success, some of which has been supported by WLEP grants. Work is underway on land availability, flexible planning arrangements, programme of food and farming training and infrastructure provision which has already resulted in the creation of 65 new jobs i.e. extension of Walsh Mushroom premises and Primafruit premises and construction of new highway access to Vale Park. Investment by about 10 businesses and creating an additional 200 jobs remains the target for 2018.

Worcestershire Horticulture Strategy

8.2.10 Given the paramount importance of the horticulture sector to Worcestershire and the UK, its international reputation as well as the significant transformational changes occurring in this sub-sector alone, the opportunity has been taken to establish a refreshed co-ordinated approach which will spearhead growth alongside individual companies’ expansion schemes and ambitions. This supplements the commitments made in the Strategic Economic Plan (SEP) and ESIF Strategy.

8.2.11 Taking the existing Heart of Horticulture Report (2011) assessing the horticulture sector in the West Midlands as an excellent starting point, the WLEP has commissioned ADAS to carry out some new stakeholder consultations (local growers and industry bodies); review and update our evidence-base, economic analysis and sector knowledge; recognise the impact of new technologies in the industry; and set out key strategic next steps for the WLEP and partners to focus future resources and energies.

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8.2.12 The Worcestershire Horticulture Strategy provides a core framework for activities and the Executive Summary is in Appendix A with the whole report uploaded onto the Board Members’ portal. After the Board meeting, the report will be uploaded onto the WLEP website and will be promoted widely to key audiences such as members of industry organisations such as ADAS, NFU, CLA etc. in order to generate wider discussion and engagement and shape a collective approach to further project development as well as influence national horticultural policies and participating in industry technology development.

Agri-Tech West Alliance

8.2.13 The WLEP has been working jointly with Stoke & Staffordshire LEP, Cheshire & Warrington LEP and The Marches LEP and specialist research/academic institutions in this geographical area. The purpose has been to commission a joint study into the potential to develop a combined Agri-Tech West focused partnership which serves and spearheads growth in our common interest in Agri-Food, Food-Drink and Agri-Tech sectors. An Agri-Tech East model (East Midlands) has been operating for several years and has instigated interesting industry-applied research and technology development projects.

8.2.14 The agricultural and horticultural base across the four LEP areas is broad, with activity in all areas and represents a microcosm of the sector as a whole at national level. The area’s wider agri-food supply chain has strengths in chemicals (fertilisers), meat processing, fruit and vegetable processing, food and drink production, and machine manufacturing. Internationally renowned agri-food businesses are based in the area because of its agricultural and horticultural base, supply chain specialisms, good connectivity, and access to labour markets and consumers.

8.2.15 The area’s non-agriculture sectoral strengths that are or could be applied to agricultural and horticultural uses are machine manufacturing, chemical processing, and software design (cyber-security).

8.2.16 There are a number of well established and highly regarded further and higher education institutions in the four LEP areas. Whilst some of these specialise in land-based activities, all have expertise in engineering, manufacturing and the sciences.

8.2.17 Agri-tech is an exciting sector for education institutions, offering significant opportunities for the next generation of food producers, reducing the impact on the environment whilst pushing the UK (and their own institutions) towards the forefront of global agricultural innovation.

8.2.18 Research and soft market testing in the four LEP areas identified support for a new Agri-Tech West Alliance to provide a unified, integrated strategy for Agri-Tech development. Such an approach, especially one that links end users to innovators across multiple sectors, will encourage research, innovation and investment, and deliver increased productivity in the area’s agricultural and food processing industries.

8.2.19 The Agri-Tech West Alliance has been created as an umbrella brand where all the partners and participants agree to work together, sharing knowledge and expertise in order to deliver increased productivity in the area’s agriculture, horticulture and food processing industries. The Alliance formalises an existing partnership built on continuing collaboration and integration between the education sector; a range of Agri-Food industry specialist organisations and representative bodies; and the Local Enterprise Partnerships.

8.2.20 The potential to draw in other LEP areas from Gloucestershire, Lincolnshire and Warwickshire will be explored further. Pershore College has agreed to join the AgriTech

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West Alliance Board/Steering Group as soon as it is formed. More details explaining the Alliance are summarised in Appendix B.

8.2.21 The first priority focus is around co-ordinated ERDF bids to establish four specialist Agri-Tech Gateways in the Alliance area. This would build on the respective industry sector strengths as well as the leading land managements research institutions in the area namely, approved ERDF project in Cheshire East LEP Area (based at Reaseheath College), Stoke & Staffordshire LEP Area (South Staffordshire College), The Marches LEP (Harper Adams) and Worcestershire LEP (Pershore College). The specialist gateway proposal will augment all four LEP Growth Hubs in the Alliance (ours being Worcestershire Business Central).

8.2.22 For instance, Pershore College has a strong association with RHS and a strong horticulture offer, substantially improving with its National Centre of Horticulture Excellence and is expected to lead on all horticultural based training, project development and brokerage of SME business needs with innovation. This would provide an ideal complement to Reaseheath’s parallel expansion and focus in facilitating SME dairy/arable farming expectations with innovation, research offers.

8.3 Next Steps

8.3.1 As the report demonstrates there is a substantial foundation to the Sector Delivery Framework already in place. The overall approach is being progressed by various project partnerships, assorted lead organisations, various industry pioneers and assorted SME businesses but all are mutually connected and consolidated and all share a common ambition to grow productivity and reputation for the whole sector in Worcestershire.

8.4 Partners and Engagement

8.4.1 The WLEP has conducted comprehensive consultations and engaged partners representing public, private and third sectors across Worcestershire throughout its SEP and ESIF process. The WLEP has been able to draw representation from the segmented interests required under Government Guidance and continues its commitment to stakeholder involvement. A wide range of partners and interested parties are now converting their involvement into a delivery focus, nurturing and developing projects and pipelines which will implement the Worcestershire LEP Area ESIF Strategy through ERDF, ESF and EAFRD Operational Programmes.

8.4.2 The WLEP has targeted specific stakeholders with key interests in the AgriFood/AgriTech sector at local, regional and national levels. Relationships have been established with NFU, ADAS, AHDB and CLA member organisations in order to embrace wide-ranging and diverse SME member interests. The WLEP has established a good reputation for innovation and practical delivery of policy development across the AgriFood/AgriTech sector with Government representatives from Defra/RPA, BEIS, DIT/UKTI, DCLG and DWP.

Claire BridgesStrategy and Partnership Executive

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Appendix A

Worcestershire Horticulture Strategy - September 2016Executive Summary

Executive SummaryThe Worcestershire Local Enterprise Partnership (WLEP) has been tasked to drive growth of the local economy to provide over 25,000 jobs and increase the value of the local economy by £2.9 billion by 2025. Agri-Tech has been identified as a key growth area for the Strategic Economic Plan (SEP) of the WLEP; the horticulture industry is a key player in the local economy, contributing over £33m annually. Development of the horticulture sector will greatly assist in the delivery of the ambitious goals of the SEP, and the Worcestershire Horticulture Strategy has been formulated to promote growth and expansion of local horticulture businesses. In addition, there are significant opportunities to address other areas of the SEP, particularly the cross-cutting priorities of environmental sustainability, technology and innovation, and to interact with SEP programmes for sustainable sites and premises, skills for growth, alongside numerous targets of the European Structural Investment Fund (ESIF) program. These have been highlighted where possible to support the breadth of the SEP deliverables through development of the local horticulture industry.

Horticulture in Worcestershire is heterogeneous, covering the vegetable, top, soft fruit, ornamental and protected edible sectors. Whilst each sector faces its own complement of challenges, there are unifying themes that should be targeted for intervention. The WLEP Horticulture Strategy has been developed from the response to questionnaires and telephone interviews with seven leading Worcestershire horticulture businesses. In addition, three key national organisations at the executive level were also interviewed and their views were sought on the relationship between national and regional strategies for the development of the horticulture industry in Worcestershire.

The overarching view of the industry is that growth of the sector will be promoted by a regional capital grant support for innovation, in addition to assisting growers in business development and access to larger-scale funding streams (e.g. RDPE REG or LEADER grants). Local support could also be delivered through the relaxation of planning law related to new production system infrastructure and repurposing existing farm buildings, and providing targeted business development support. This should be coupled with improved focus on knowledge exchange to facilitate business self-evaluation and the uptake of industry best practice to drive enhanced productivity and efficiency. Lastly, focused interventions to address the costs of labour provision and to mitigate the effects of shortages in skilled labour, particularly of seasonal workers, will continue to enhance resilience in the industry.

Britain’s withdrawal from the EU, “Brexit”, is liable to exacerbate labour availability and impact funding availabilty, while increases in the cost of imports will offer an opportunity for enhanced availability and marketing of UK horticulture products. In addition, links within the strategy were identified for recently established national Agri-Tech centres of excellence, but these primarily focus on arable and livestock segments of the Agri-Food landscape. The WLEP strategy is therefore timely, because in the absence of substantive central government funded innovation or business development support, or obvious links with recently established Agri-Tech centres, there has never been a greater need to aid this vital industry at a regional level at a time when considerable opportunity for growth is likely to evolve over the coming decade.

Worcestershire Horticulture Strategy – Challenges and OpportunitiesA breadth of challenges and opportunities for horticulture in Worcestershire were identified and were used to formulate a strategy that integrated the aims of the SEP while focusing on local horticulture. The strategy is split into four inter-locking themes which identify the problems, solutions and actions for growth:

1. Investing for DevelopmentEconomic barriers to development can prevent businesses from utilising new technology or expanding operations to improve productivity. Improving grower’s access to investment streams will deliver direct potential for growth and support the underlying aims of the SEP. To address this,

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it is proposed that a Horticulture Growth Fund is established to provide targeted investment in the sector. This will provide a buffer against currency fluctuations and the loss of EU funds post Brexit to producer organisations, but also act as a catalyst for growth, especially if import substitution becomes increasingly cost effective. In addition, sympathetic application of planning regulations for the development and expansion of infrastructure should be promoted.

2. Promoting an Environment for GrowthTraditional marketing models (i.e. into supermarket trade) are under increasing pressure due to changes in consumer behaviour. Growers can realise significant growth by using high-quality, specialist products to target novel marketing routes. Intervention and investment will be required to promote expansion into new areas and exploit this opportunity.

3. Labour Provision and DevelopmentLabour availability is already a significant problem for growers, and this is likely to be intensified by “Brexit”. Labour provision also carries a significant cost and this will continue to increase through uptake of the living wage. Action should be taken to mitigate the effects of labour provision to ensure sustainable development.

4. Promote Knowledge ExchangeDespite increasing consolidation, the industry remains fragmented and practice is highly variable. Knowledge Exchange (KE) within the industry should be promoted to enable benchmarking evaluations of best practice and empower growers to instigate bespoke strategic plans for business development. Furthermore, there is scope to join with similar “horticulture significant” LEPs and produce a concerted way forward to encourage innovation and sector expansion for UK fresh produce, which is crucial for societal health and wellbeing.

Overall, the next decade will offer a breadth of challenges and opportunities for the horticulture industry, and targeted localised support will enable local businesses to alleviate difficulties caused by the changing economic and political environment while realising the opportunities and helping to deliver the economic aims of the SEP by promoting the growth of a strong local sector.

Implementation of the horticulture strategy will realise measurable results within the 10 year timeframe of the SEP, but will also establish the framework for longer-term, sustainable development within the industry to promote economic growth and job creation over the following decades.Objective

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Appendix B

Agri-Tech West Alliance will:

Disseminate information relating to new SME and/or sector practices and technology opportunities through various media

Promote the area’s individual and collective strengths to future investors, trade opportunities, SME businesses and representative bodies, government departments, etc.

Signpost agri-food businesses to the best available experts, research facilities, training providers, and suppliers

Drive technology by providing a forum for individual businesses to engage with researchers and innovators to solve business problems. Conversely, it will also introduce researchers and innovators to individual businesses to facilitate the testing of their products/processes

Become a practical testbed for policies, initiatives, processes, and equipment, which can then be rolled out nationwide.

Encourage greater collaboration, particularly within and across the business and education sectors to reduce duplication and add value to the area’s agri-food economy now and in the future.

Participants in Agri-Tech West Alliance will provide support either in-kind, by leading and supporting activities, or financially through contributions or access to external funding sources as agreed.

Who are the ATW partners?

Four LEPs (Stoke and Staffordshire, The Marches, Cheshire and Warrington, and Worcestershire)

Current HE Partners

Harper Adams University

Chester University

Keele University

FE College Partners

South Staffordshire College

Reaseheath College

Pershore College

Sector Representative Other potential partners

AHDB/NFU/CLA/ADAS etc.

Alliance Industry and Business ambassadors – JCB1, Muller, Dairy Crest, Cogent, Kanes Foods, Sun Valley Foods (owned by Cargill), NWF Agriculture etc.

Innovate UK

Four Centres for Agricultural Innovation

DIT/UKTI/BEIS/DEFRA (in full as reader may not know who these are?)

Other HE Institutions, i.e. Universities of Aston, Birmingham, Staffordshire, Worcester

Other FE Institutions, i.e. Heart of Worcestershire College

1

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How are we organised?

Agri-Tech West Alliance Programme Board

Adopts a collective strategy and delivery framework for the support and development of the Agri-Tech West area in support of SME business growth

Acts as a focus for interaction with the Midlands Engine and Northern Powerhouse

Coordinates business-led projects and programmes across the Agri-Tech West area by linking initiatives and sharing knowledge and expertise

Promotes the umbrella brand of Agri-Tech West Alliance

Explores the potential for a Company Limited by Guarantee ?

Cross LEP Programmes

Establishes a “Growth Hub Plus” for the Agri-Food/Agri-Tech sector in the Alliance area i.e. collectively co-ordinate and consolidate a gateway providing consistent specialist advice, grant availability and innovation support to SME businesses

Access a range of local, national and international knowledge and expertise to augment the Alliance specialist gateway

Additional Partners will be sought according to issue or project being developed where specialist knowledge is needed. For instance, horticulture sector innovations will be different to dairy/livestock technology needs

Working together towards either a Midlands Engine or Northern Powerhouse solution

Collaborative working with cross-Government interests i.e. UKTI, BEIS, Defra

Alignment of ESIF, Growth Deal or any other Government national programme funding to consolidate the Alliance’s shared ambitions and delivery

LEP Based Programmes

Capitalise on individual LEP priorities and delivery for business growth that enhances local distinctiveness and expertise

What do we plan to do?

A series of priority projects have been outlined, which seek to address the shortcomings in the sector at present and build upon its strengths.

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