Verbal update from the Business Relationship Manager on the Shropshire Economic Growth Strategy.

The Business Relationship Manager circulated a briefing note on Economic Growth at Shropshire Council [copy attached to signed copy of the minutes].  Members noted that the new Economic Growth Team were in place and work had started on a revised Economic Growth Strategy.  This was being developed in conjunction with the Shropshire Business Board and assistance from the Enterprise and Growth Scrutiny Committee was anticipated.  She continued that Planning Policies were also being reviewed and it was an ideal point to align strategies and plans to ensure that conflicts did not arise.  The Shropshire Economic Growth Strategy would articulate the ambitions for Shropshire. 

A pragmatic approach was being taken, working with partners to enable confidence and encourage private sector investment.  It was anticipated that the new Economic Growth Strategy would be ambitious and proactive. 

Members noted that the Economic Growth team had undergone a period of transition but new working practices were now in place which enabled them to be flexible enough to undertake the tasks required.  The team were outcome orientated with an emphasis on the Council’s new strategic direction.

Referring to the 2 draft outcomes for the team set out in the briefing note the Business Relationship Manager explained that it was important that the underlying conditions for growth were right, and GVA (Gross Value Added) was not just about creating more jobs but better jobs.  Better jobs would be achieved if the underlying conditions were right. Creating good underlying conditions included having the appropriate infrastructure to support businesses such as broadband connections and road networks, and having land available for development in areas of economic demand.

The Business Relationship Manager explained that the County had high levels of out commuting, where people chose to live in Shropshire but work elsewhere.  It also had lower GVA generating industries.  Although many national companies traded in the County there were few Head Quarters located in Shropshire.  For accounting purposes the GVA was credited to the County where the HQ was located, so although the company was trading in Shropshire, Shropshire could not include that company’s turnover in its GVA calculation. 

The Business Relationship Manager out-lined the steps that the Economic Growth Team would take to achieve its objectives which included

·         identifying the correct property projects;

·         acting as a single point of contact and maintaining the role of honest broker; 

·         ensuring companies had easy access to the tools they needed, such as loan schemes, LEP Growth Hubs and UKTI; and

·         providing access to the universities and other educational establishments which could train and supply the skilled employees required. 

She continued that the team needed to ensure that strategies were aligned and to find ways of measuring these.  The members of the project team would also be responsible for bringing leads into the County.

Members noted that the team were looking at identifying drivers and metrics which would show how value was being added either directly or indirectly.

In response to a Member’s question the Business Relationship Manager explained that Shropshire Council did not offer grants to businesses but acted as a signpost to agencies that did.  She continued that they were looking at partnership working through cross LEP work with Birmingham City Council.

Members commented that a robust Economic Growth Strategy would support investment in Shropshire. 

In response to a Member’s question on the Government’s proposal to allow Councils to retain the business rates they collected, The Portfolio Holder for Planning, Housing, Regulatory Services and Environment explained that the loss of the Revenue Support Grant and possible loss of Grants that came from the redistribution of business rates the Council was likely to be in a worse financial position than at present.  He added that it was important to support existing businesses as well as trying to attract new ones.

The Business Relationship Manager confirmed that Tourism featured in the Economic Growth Strategy although it was not part of her remit.