D2N2 Sector and Skills Strategic Conference Thursday 13 th July 2017 - PowerPoint PPT Presentation

D2N2 Sector and Skills Strategic Conference Thursday 13 th July 2017 2pm – 6pm Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

D2N2 Strategic Economic Plan Matt Wheatley, D2N2 Growth Plan Manager Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

D2N2 SEP 2014 -2023 • 55,000 additional private sector employee jobs in the D2N2 area • 77,000 additional homes to accommodate our growing population • A step change in skills levels amongst our workforce and young people • A significant increase in our business base • Leverage of funding through our City Deal, EU Structural and Investment Funds and private sector investment. Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Why review the SEP? • Changes to the D2N2 economy • Changes to the potential future economic trajectory • BREXIT • Changes to regional and national Government policy • Industrial Strategy – A ‘Local Industrial Strategy’ • Midlands Engine • ‘The Shared Prosperity Fund’ Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

SEP: Progress towards targets House-building Private Sector Job creation Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

A Growing Economy GVA Growth in England and core city LEP areas, 2010-2015, (%) 25.0% 19.8% 18.0% 20.0% 15.0% 9.3% 10.0% 4.7% 2.2% 5.0% 2.0% 0.0% 2010-2015 2015 Greater Birmingham and Solihull England Average D2N2 North Eastern West of England Greater Manchester Sheffield City Region Leeds City Region Liverpool City Region Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Productivity and Incomes GVA per hour worked GDHI in D2N2 as a % of England 87.0% 86.8% 0.9 0.898 86.5% 0.896 86.0% 86.1% 86.0% 0.894 0.892 85.5% 85.1% 0.89 84.9% 84.8% 85.0% 0.888 84.7% 84.7% 84.9% 0.886 84.5% 0.884 84.0% 0.882 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 83.5% % of the UK 2007 2008 2009 2010 2011 2012 2013 2014 2015 Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Skills and Healthy Life Expectancy Healthy life expectancy Skills profile of the working age population, 2016 65.0 NVQ4+ NVQ3 Trade Apprenticeships 64.1 64.1 63.9 64.0 NVQ2 NVQ1 Other qualifications 63.4 63.2 63.0 No qualifications 63.0 62.0 61.6 61.3 61.1 61.1 3.8 D2N2 32.0 19.6 17.9 12.4 6.2 8.1 60.7 61.0 60.5 60.0 59.0 16.0 England 37.9 17.4 3.0 11.3 6.7 7.8 58.0 Male Female Male Female Male Female 2009 - 11 2011 - 13 2013 - 15 D2N2 England 0.0 20.0 40.0 60.0 80.0 100.0 Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Phase 1: Evidence Base • Reviews of Productivity with the University of Nottingham and CBI • Deep Dive Inclusive Growth Review with Nottingham Trent University and Royal Society for the Arts • D2N2 Science and Innovation Audit • Identify ‘world class’ sectors • Skills Strategy Evidence Base • Collation of Housing, Infrastructure and Transport evidence • Collation of local ‘place based’ evidence; i.e. Metro Strategy Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Productivity Reviews Findings • ‘ The foundation of wages, living standards, opportunities and prosperity’ • In D2N2 our Sector profile does not explain our Productivity Gap • Supporting Productivity Growth requires a combination of interventions • CBI identify ‘four main drivers of regional productivity’ differen ces; • Educational attainment of young people at 16 and skills • Transport links that widen access to labour • Better management practices • A higher proportion of firms who export and innovate Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

BREXIT Exports and jobs  Sheffield University estimates that East Midlands goods exports to the EU amount to £1,866 per capita which is about 9% of the D2N2 GVA per capita  HM treasury estimates that around 8.5% of the jobs in East Midlands are related to EU exports: 86,000 D2N2 jobs may be exposed to the direct impact of any tariffs levied on exports of goods EU Workforce in East Midlands :  Around 5% of the East Midlands working age population are EU nationals, compared to 4% in other regions, excluding London (13%)  Out of 116,000 employed EU nationals more than 90% are employed in the private sector  2/3 have middle to high skills Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Timescale & Process • Evidence Base • Thematic workshops • Consultation • Draft Strategy • Run to 2030 • Not a long list of projects but a few key priority projects and a framework of policies to make future investment decisions Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Feedback  What is the key challenge for your business and your sector?  What should the revised SEP do about it? Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Lindsay Allen, D2N2 Senior Programme Manager Local Enterprise Partnership Lindsay.allen@d2n2lep.org D2N2 Sector & Skills Conference, 13 July 2017  Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Policy Round Up  Industrial Strategy - Consultation in Spring 2017, government reviewing and developing policies  Reviewing funding post Brexit (Productivity and Inclusive Growth)  Sector Deals (i.e. manufacturing, agri- tech/food)  Sub regional activities (Northern Powerhouse, Midlands Engine) Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Industrial Strategy  Consultation in Spring 2017, government reviewing and developing policies  D2N2 ran a series of consultations and submitted a response to Government (April)  Awaiting a White Paper (Autumn 2017)  Local Industrial Strategy (potentially)  Shared Prosperity Fund, Industrial Strategy Challenge Fund Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

D2N2 ERDF Future o Government commitment to honour funding for current ESIF projects that are contracted by March 2019 o Prepare further calls to support projects which are good value for money and meet government strategic priorities o Continue to develop business support and skills infrastructure across D2N2 Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Midlands Engine Midlands Engine supports the Midlands Engine The Midlands has: Strategy focus on five challenges: an economy worth over £200 billion  Improving Connectivity in order to raise a population of 12 million people   productivity. a quarter of the UK’s manufacturing capacity  Strengthening skills in order to make the  20% of all exports  Midlands a more attractive location for a 4.6 million strong workforce businesses.  20 universities Supporting enterprise and innovation in   order to foster a more dynamic regional covers 10 LEP areas  economy. Promoting the Midlands nationally and https://www.midlandsengine.org/  internationally in order to maximise trade and investment in the region. Enhancing quality of life in order to attract  and retain skilled workers, and to energise the region’s visitor economy. Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Workshop D2N2 wants to maximise our collective evidence base to ensure we understand the needs of business in the partnerships and economic activity the LEP is involved in. What is the biggest challenge for businesses in your sector and 1. what should the SEP say / do about it? What is the biggest skills and employment challenge for 2. businesses in your sector? How can the Growth Hub improve its support for businesses in 3. your sector? Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme

Questions? Thank you Supported by the European Regional Development Fund as part of the 2014-2020 European Structural and Investment Funds Growth Programme