How can Councils work with business to drive local growth? Alex Plant Executive Director: Economy, Transport & Environment Cambridgeshire County Council MJ Growth Conference - May 2013

Cambridgeshire Growth Longstanding positive approach to growth across all Cambs councils Fastest growing county in the UK Cambridge 4 th fastest growing city Aim to spread the brand of Cambridge beyond the city Target growth in right locations, make most of existing infrastructure Greater Cambridge economy important to wider UK economy

Economic context Cambridge in particular is a leader in innovation, with more patents per 100,000 residents than the next 10 cities combined GVA per job is £45k (compared to £34.2k for London, 2009) Undeniable growth potential in Greater Cambridge, but demand suppressed by factors such as a shortage of infrastructure and housing Picture differs around the county, rural areas performing less well Economic strength of Greater Cambridge tightly drawn To compete on world stage need to encompass wider geography

Growth Diamond

If Silicon Valley were here.. Source BBC (originally derived from David Cleevely, 2000)

Our LEP geography

Our approach Establishing a new relationship with business Injecting more energy into efforts to support businesses But also challenging business to shape the public policy agenda Shaping the arguments for high quality housing growth Making it clear that Cambridgeshire is “open for business” Genuine public-private alignment of efforts Making the most of the LEP model – but not overstretching it

Investment strategy Investing in infrastructure to support local business growth Demonstrating to the world that we are serious about meeting the needs of our businesses Investing around the county, not just in Greater Cambridge Launching the Cambridge and Counties Bank Working with Government on big ticket items like the A14 Drawing returns for the Council from strategic investments, e.g. taking on a developer role, pooling public sector assets, investing for the long term in the new town of Northstowe

Investing for growth In 2011 County Council signalled a bold package of c.£200m of capital investments To support new homes, new jobs, new transport and broadband infrastructure And more funds to keep existing network in shape Doing this at a low point in the economic cycle to act as direct stimulus Including innovative funding approaches (eg for a new station to the north of Cambridge)

Risks to growth plans Tight fiscal position, reducing grants Adult social care costs escalating rapidly Funding formula doesn’t reward growth And incentive-based revenue streams sit with multiple bodies and are overly complex Council tax “capping” makes things even harder Important to retain pro-growth mindset, but if funding not available to service debt for investment in infrastructure then this becomes untenable

Closing thoughts Heseltine and City Deals could herald a new dawn – but could also turn out to be damp squibs Does Government really believe that empowered Local Authorities and LEPs can drive growth? If so, it will be essential to work with partners – across the public- private divide and across public sector administrative boundaries Local Authorities need to show that they can be trusted with driving their own growth, and bolster what LEPs can do Acid test for Govt is that this will require; a) genuine localisation of tax revenues to support investment in those areas that can deliver economic growth and b) a more relaxed attitude to debt