Decision details

Cllr Graham Turner introduced the item, advising that it was recognised that the Economic Strategy needed revisiting, and a decision was taken that rather than a wholesale rewrite, the strategy would be refreshed.  Many of the principles and aims of the strategy is based on an inclusive economy and attracting inward investment to create a strong vibrant local economy. Since the strategy was created, there have been changes both nationally and internationally, and therefore a refresh was overdue. The revised strategy will be brought before Cabinet and Council in early 2024.

Edward Highfield, Service Director, Skills and Regeneration, referencing the presentation, highlighted key points in terms of drivers for change. In summary, the Panel was informed that the macroeconomic factors of Covid, the cost of living crisis, the impact of the war in Ukraine, energy prices and inflation would have a greater impact on the Kirklees economy than factors that could be controlled locally. The Panel was further informed that it is not possible to control the economy, however, where possible, the aim is to influence the local economy whilst being cognisant of the bigger economic factors. It is important to accentuate the positive opportunities, by influencing and being aware of macroeconomic factors using proactive resources with partners.

Timing is crucial whilst refreshing the strategy, as economic factors change, therefore it becomes dated very quickly, however, it is important that there is a local articulation of priorities that can be used for multiple audiences. The Panel was advised that Kirklees economic outlook, lags behind the regional and national average, despite recent growth with factors including, gross value added (gva), earnings, productivity and average wages. These are long term priorities which take a number of years to see a positive trend.

Edward Highfield advised that gva and productivity is essential as it drives earnings, quality of life, choices and inclusion in the district. The impact of Covid was less severe than first predicted, for example, the high numbers of unemployment expected never came to fruition. The impact of covid was more entrenched, nuanced and differential to different communities. Kirklees has a relatively high level of employment, however; this masks low wage and insecure employment that impacts on people, and there is significant economic inactivity.

By pulling together data from a number of sources, it gives an overall picture and there are significant headwinds around automation, artificial intelligence, inflation, input costs, energy and climate change that affect the global economy, which also impacts Kirklees. Whilst it is recognised that these factors are global, it is still important to have local articulation and a placed based narrative with an ambition to develop and stimulate the type of economy Kirklees requires.  Therefore, it is important to identify opportunities and develop a response to the major headlines.

In refreshing the strategy, the aim is to reach multiple audiences, is concise, speaks to its democratic accountability and political leadership and is readable. It is important that the strategy is not just a Council document, but is owned by a wider set of stakeholders and anchor institutions such as the college or the university. The strategy should be reflective of Kirklees, translating West Yorkshire Combined Authority, and Mayoral priorities down to a local level is also important. Local priorities are captured in the document and then can be matched to funding opportunities that may come along in the future.

The output of the refreshed strategy will focus on some of the long term structural challenges such as skills, aspiration and entrepreneurship and will be owned by the Council and some of its partners. Some key actions will be delivered over the next three to five years, deliverables that can be influenced and controlled with discretionary investment or investment from partners. The Economic Strategy is one of the four top tier strategies in Kirklees which also include, the Joint Health and Wellbeing Strategy, Inclusive Communities Framework and the Environment Strategy.

Businesses are an important aspect of delivering the strategy as they create jobs, therefore it is important to be an attractive place to encourage businesses to come to Kirklees. The intention is to become a more productive economy in order to command and pay people a better wage which in turn will improve their quality of life and living standards. Referencing the presentation slide, the Panel was informed that nationally the bottom 10% had seen no improvement in living standards over the last 20 years (Indexed (2000/1 = 100) real median household disposable income (after housing cost) by decile, 2000/1). The data showed that a different approach is required to impact on the bottom 10%, and questions need to be asked about what has been undertaken in the last 20 years and what need to be done differently moving forward.

The Panel was directed to the presentation that outlined the ‘plan on a page’ with the following headings:

·       People – The people element is with regards to the Employment and Skills Plan

·       Place – Physical and Infrastructure based elements that affect the economy

·       Business/Partners – Startup and Entrepreneurship raised across the district

In response to the information presented, the Panel made comment and asked questions including some of the following:

-        Given that success is to achieve growth alongside a reduction in inequality, do you feel that sufficient emphasis has been given to that priority within the current strategy or is that being worked on in the refresh, in particular the bottom 10% as outlined in the presentation?

-        Is it possible to explain, as referred to in the appended report and during the presentation, the key indicators and what Kirklees has to offer that is distinct to other areas?

-        If it is recognised that Kirklees has a distinctive offer that attracts businesses, how then do you encourage business growth?

-        With regards to the poorest decile, a large portion of those are from the Black and Minority Ethnic (BAME) communities, how is this being measured and what steps are being taken to ensure that those communities are getting into jobs and apprenticeships?

-        Is Kirklees in danger of falling behind some of its neighbours, for example Leeds and Bradford? The reason being that people might work, spend their leisure time and gain better salaries in other areas, but live in Kirklees because it's cheaper.

-        How is the economic strategy going to help develop better transport links across the whole of Kirklees, to enable the movement of people?

-        For a number of years there has been a large decline in retail as it has shifted online and leisure facilities. Is the Council looking at offering incentives to get those facilities into Kirklees?

-        Where is the affordability, in relation to the financial strategies of the Council, in being able to deliver on the economic strategy?

-        Will there be a promotional campaign to say ‘This is Kirklees’ as there does not appear to be one in the public domain?

In response to the question regarding a promotional campaign, Edward Highfield advised that a promotional video entitled ‘Invest Kirklees’ had  been produced and agreed that it would be shared with panel members.

RESOLVED:

That Edward Highfield, be thanked for providing an update on the Inclusive Economy Strategy.

That the promotion video ‘Invest Kirklees’ be circulated to panel members.