LEP Update Neil Hayes 15 September 2014

Economy snapshot Labour Market Participation –Employment Rate (March14) 77.7% (75.5% GB) –Unemployment Rate (March14) 4.5% (7.2% GB) –JSA Claimant count (July 14) 1.8% (2.8% GB) Productivity Other indicators –% change in house prices (13/14): –11.0% (7.2% Eng & Wal) –Self Employment (March 14) –12.6% (9.8% GB) –Start-up Growth (2009 to 2012) –62% survival rate (30 th /39 LEPs) –<4% grow to £1m turnover (18/39) Jobs Growth

Skills Analysis 2014 The demand for skills and labour is definitely increasing and already showing signs of pressure. Although relatively weak compared to the national average, Hertfordshire’s growth rate has exceeded our neighbours, including Thames Valley and Buckinghamshire. A number of Hertfordshire districts (St Albans, Watford and Welwyn Hatfield) have had strong employment growth. Hertfordshire has a growing productivity gap – with productivity rates significantly below peer economies in the south of England. Hertfordshire’s employers are less likely to train their staff than the leading local economies, which may be a contributing factor. GCSE attainment is average in the County, particularly compared to neighbouring areas, which may be a cause for future concern. Even though the Hertfordshire workforce is highly skilled, the share of residents accessing government-funded FE training is one-third less than the national average.

The SEP... SEP document one of the best in the country Have pushed the growth agenda forward locally Small number of well developed, prioritised projects Willing to negotiate & be flexible Rewarded with: –Annual funding in advance –Potential flexibilities in fund allocation ‘Signing ceremony’ – Oct/Nov

Funding Local Growth Fund breakdown (£M) Funding for 2015/ Funding 2016 – Previously committed Local Growth Deal Funding52.21 Total EUSIF ( ) ESF (skills)30 ERDF (innovation/enterprise)30 Total60

2015/16 deal

Funding per head

LEP priorities for 2014/15 1.Gearing up for 2015/16 delivery –Governance –Programme & financial management –LEP team capacity/roles 2.Progressing the ‘big ideas’ –Growth Area Forums –Infrastructure fund 3.Preparing for the 2016/17 Local Growth Deal

Governance

Programme & Financial Management Assurance Framework with Accountable Body (HCC) –Government guidance due –Work progressing with HCC based on existing arrangements Preparing contracts & monitoring arrangements Revised MOU with HCC Also working on EU funding programme for implementation over 15/16 Need to improve LEP capacity in programme management

Developing Growth Area Forums These will articulate and advance economic priorities within functional economic areas ‘Form should follow function’ – and function is yet to be fully determined e.g. M1/M25 could focus on: –Impact of London’s Economic Plan – (HS2/Cross Rail) –Developing the Film & Media Sector –Local skills needs Business-led economic growth agenda: infrastructure may feature, but not exclusively so Input into key county structures/processes – not a replacement for – or threat to – them

Infrastructure Fund The need for infrastructure investment is significant: viability gaps are emerging For the most part, markets are strong and therefore a revolving fund ought to be possible Local authorities will need to be co-investors, alongside central government Detailed feasibility and development work needs to be completed We need the fund to feature in our 16/17 Local Growth Deal

Preparing for 2016/17 Deal Establishing 2016/17 (and onwards) pipeline of projects Revisiting the lower priority 2015/16 projects Drafting Growth Deal submission – this would entail: –Call for projects – September 2014 –First draft to Government – November 2014 –Final submission – December 2014 Less funding available in 2016/17 and much quicker timescale than 2015/16

LEP Update Neil Hayes 15 September 2014