Minutes:
31.1 The Lead Member for Economy introduced a presentation on the activity being undertaken to improve the economy, infrastructure and skills in East Sussex. One of the main challenges for local businesses now is being able to employ people with the right skills. Since 2014 the Economic Development Team has raised £557m for investment in East Sussex, and without ESCC involvement this money is unlikely to have been raised. The presentation will demonstrate the impact this investment has made.
31.2 The Assistant Director Economy outlined that infrastructure, skills, and business support are the main areas of focus for the work of the Economic Development Team. However, culture and creative industries, as well as visitor services, are becoming increasingly important. Business growth helps the local economy grow, individuals realise their potential, and helps increase the resilience of communities.
Infrastructure
31.3 In terms of infrastructure, the Team work to influence strategic road and rail investment as well as enabling the development and delivery of infrastructure projects such as:
31.4 Examples of other infrastructure projects the Team are working on include the strategic investment in the upgrade of the section of the A27 between Lewes and Polegate, and High Speed 1 (HS1) to provide high speed rail access to Hastings, Bexhill and onwards to Eastbourne. Work has also been undertaken on the Major Route Network (MRN) which provides an opportunity to bid for money to upgrade key principal roads in East Sussex.
31.5 The Team has secured £2.8m to build out the North Bexhill Enterprise Park and the North East Bexhill Gateway Road has enabled more development after opening 18 months ago. Projects have been undertaken to regenerate Town Centres including Eastbourne, Hailsham and Uckfield, with activity also planned in the Bexhill and Hastings areas. There have also been improvements in walking, cycling and public transport through the Local Transport capital programme.
Skills
31.6 The skills work is delivered through Skills East Sussex which is a board of local employers and colleges in East Sussex. It has established six sector task groups to ensure the curriculum is tailored to address the skills needed locally and in the local economy. All schools now have business advisors to help link schools to enterprise and running your own business if that is a career option students wish to pursue. This area of work also involves working with careers advisers and Children’s Services on the Open Doors project which has helped 400 young people work with 40 local businesses.
Business Support and Finance
31.7 Business Support work has involved the establishment of Business East Sussex which is one stop shop for business support and advice. Locate East Sussex is the inward investment provider and advisor for the County. Other business support activity includes the South East Creative Cultural and Digital business support programme and the Scale Up Pilots.
31.8 The work on Business Finance includes:
Cultural and Creative industries
31.9 The Assistant Director Economy outlined that 3,000 out of 25,000 businesses in East Sussex are in the cultural and creative sector. The focus of the work in this area is on the working environment and on using culture for cross cutting priorities. Projects include the Devonshire Quarter in Eastbourne, the development of workspaces across the County and collaboration with Public Health to increase cultural activity which supports health and wellbeing.
Visitor Economy
31.10 This sector has grown by 25% since 2005 and supports 47,000 jobs (1 in 4), in around 180 visitor attractions. Work is this area involves regional work to produce and promote a menu of things to come and see and then stay in East Sussex, with the aim of supporting and boosting the visitor economy.
Partnerships and Funding
31.11 The Partnership work of the Team is divided into two areas of activity;
31.12 Funding work has included:
Performance
31.13 The Assistant Director Economy summarised the change in the performance indicators for the local economy as a result of some of the work of the Economic Development Team:
Summary
31.14 The Assistant Director Economy outlined that there has been lots of good progress, and Economic Development remains a key priority for ESCC. The Brexit process has created a degree of uncertainty, but East Sussex is well placed to continue its economic growth.
3.15 The Lead Member for Economy commented that he had previously observed that East Sussex students go off to university and do not come back. Now East Sussex has some innovative companies that are thriving and employing local people. There is a collaborative harmony in regenerating East Sussex. The performance figures since 2014 are very strong, with major projects in the pipeline which will have a big impact on economy (e.g. HS1 and upgrade of the A27). Skills are particularly important and the engagement of the business community in steering the curriculum offer has been hugely beneficial.
Feedback and Questions from the Committee
31.16 The Committee commented that it was pleased with the progress that had been made and the benefit to local people that had been achieved. The Committee noted that in some parts of the County more employment opportunities were still needed, and asked which areas the six sector task groups covered. The Assistant Director Economy clarified that the six sector task groups mentioned in the presentation are:
31.17 Members of the Committee commented that from their experience, business improvement is evident in terms of the demand for business space and the infrastructure improvements that have been delivered. However, what appears to be holding businesses back is a skills shortage. The Assistant Director Economy acknowledged the focus has shifted to skills, rather than infrastructure, now that improvements in transport and employment space have been achieved.
31.18 The Committee asked what the impact would be if it was possible to double the amount of investment in economic development. The Assistant Director Economy responded that it is difficult to judge what the impact might be, but it may not simply be a doubling of the benefits. The revenue cost for service is low, but the capital cost is high. So if it was possible to double the amount of capital it would have a greater impact and would lead to significant benefits, compared with an increase in the amount of revenue.
31.19 One of the Committee members commented that there is higher unemployment in the Hastings area and there is a shortage of social housing. The closure of the University campus in Hastings has been disappointing for the local community and it would be helpful for local Members to have an update on what is happening with the vacant buildings.
31.20 The Lead Member for Economy responded that the East Sussex College had taken over some of the university courses and the Department of Work and Pensions (DWP) had moved into some of the vacant buildings. The building that the DWP has vacated can now be let as more employment space. The HS1 rail upgrade is very important to the East Sussex economy and the Lead Member is very determined that this investment will be achieved.
31.21 The Committee noted that the Newhaven local economy is more orientated towards Brighton and is part of the Coast to Capital Local Enterprise Partnership. It was questioned whether ESCC would prefer the Newhaven area to be aligned with the South East Local Enterprise Partnership (SELEP). The Assistant Director Economy outlined that Government had started a review of the LEP areas. The ESCC view is that it would be better not to split the County up between two LEP’s. Therefore there has been an agreement with both the LEP’s that there will be a two year transition period and then those areas in East Sussex that are in the Coast to Capital area will transfer to SELEP.
31.22 The Committee noted the small business start-up survival rate of 47% after 5 years, and asked if this is the sort of level the Economic Development Team expected. The Committee also asked how the various programmes benefitted the rural economy. The Assistant Director Economy responded that the fact that East Sussex has higher survival rates for small business new start-ups indicates that business support is effective. It also means that the local economy is more resilient as there is less reliance on a few large employers.
31.23 It terms of the rural economy, it is difficult to separate the impacts of the programmes between urban and rural settings. Some programmes such as the Broadband project and the Land Based skills sector work will particularly benefit rural areas (e.g. wine producing). The Team will support rural business where there are requests for support. It was noted that most producers would like a platform to sell produce more widely (i.e. produce locally but sell globally). The Lead Member for Economy added that there has also been investment in bottling plants and breweries that support the rural economy.
31.24 It was clarified that the A27 improvement referred to is the construction of a new (off line) dual carriageway, and not the already approved small scale improvements. The Director of Communities, Economy and Transport confirmed that the small scale improvements will not negate the case for a new road. Some of the small scale improvements will provide benefits in the short term, whilst the case for dualling of the road is considered. ESCC has been consistently clear that an off line, dual carriageway solution is the best option to relieve congestion on this stretch of road and improve the road transport infrastructure in the area. Highways England is currently working on the business case to present to the Department for Transport. The Lead Member for Economy added that ESCC will work with all strategic partners to bring about one of the best investments in East Sussex.