Agenda item

Report by the Director of Communities, Economy and Transport.

7.1       The Team Manager Economic Development introduced the report. The East Sussex Economy Recovery Plan (ERP) consisted of six missions with a focus on the health of businesses and supporting jobs. The report outlines the Economic Development Team’s work on business support throughout the Covid pandemic and the extensive partnership working that was undertaken. The Lead Member for Economy commented that a great deal of progress has been achieved in supporting businesses. He highlighted that future funding opportunities to support business may be reduced and this may also affect the work of the Skills Board.

7.2       The Committee discussed the report and a summary of the points raised is given below.

Funding

7.3       The Committee discussed the reduction in funding sources available to support business as the European Structural and Investment Fund (ESIF) comes to an end and is replaced by the less generous UK Shared Prosperity Fund (SPF). The Committee asked what alternative funding may be available to support businesses in future. The Team Manager Economic Development explained that each of the Borough and District councils has been allocated around £1 million in total from the SPF for the next 3 years. The Team is in discussion with these councils about the use of the SPF fund, and Rother and Wealden District Councils have committed to funding some business support. A proposal for countywide business support is being developed with the Borough and District councils. The Team is unaware of any other funding sources available for business support and any future sources are unlikely to be on the same scale as the former EU funding. The Director of Communities, Economy and Transport added that the grants and loans fund is still available to support small and medium sized businesses.

Manufacturing Support and TfSE

7.4       The Committee asked if there was support for the manufacturing and construction sectors during the pandemic (e.g. through mission 3) and how the work of Transport for the South East (TfSE) has helped support businesses. The Team Manager Economic Development commented that much of the work to support businesses has been sector specific on sectors such as on tourism. However, the Team has looked at manufacturing and will look at this sector in the future. The Director of Communities, Economy and Transport commented that the TfSE work is part of broader work on economic regeneration and growth.

Digital Connectivity

7.5       The Committee observed that mission 6 which is activity aimed at capitalising and growing digital connectivity would include the rollout of 5G technology, which has been a divisive issue in some communities. It was clarified that the siting of 5G masts comes under the planning responsibilities of the Borough and District councils. Although the East Sussex County Council is a statutory consultee in the planning process, the Borough and District councils will make final decisions after taking advice from the Health Security Agency. The Council is undertaking work to address connectivity through the Broadband Project and Project Gigabit rollout.

Locate East Sussex and Businesses Saved

7.6       The Committee asked what the measurable impact had been of the support provided for businesses in terms of businesses saved or business growth. The Team Manager Economic Development responded that the Team does have some impact analysis that can be supplied to the Committee, but the Team does not have any information on the impact of the Covid grants which were administered by the District and Borough councils.

7.7       The Committee noted the information on the success of Locate East Sussex and asked if there is any information on the reasons why business did not locate in East Sussex (e.g. lack of office space or faster connectivity). The Team Manager Economic Development outlined that the lack of land supply and office space tends to be a factor. Businesses more commonly stay and move around in East Sussex rather than new businesses locating here.  Some scoping work is being carried out to examine the reasons why businesses locate here (e.g. quality of life factors) and why they do not. Feedback can be gained from enquiries to Locate East Sussex, but there is no information available from commercial property agents at present.

7.8       The Director of Communities, Economy and Transport commented that land and office supply has been an issue which is why infrastructure decisions have been taken to build new office and industrial space to address the market failure in this area. The workforce is also a challenge and work has been undertaken with schools and colleges to ensure the right training courses are available for the skills that employers need. The Employment and Skills team works with schools to ensure young people have the skills they need to get into employment and supports young people to help them get jobs.

7.9       The Committee RESOLVED to:

(1) Note the success of the Team East Sussex Economy Recovery Plan;

(2) Note the ongoing importance of supporting businesses to the economy of East Sussex (paragraph 2.7) and the impact that a current lack of funding for future years will have in providing support to Small to Medium Enterprises (SMEs); and

(3) Note current and ongoing work to support businesses and the economy in the context of much reduced funding levels.