Issue - meetings

The panel will receive a presentation on the Inclusive Economy Strategy.

Contact: Edward Highfield, Service Director, Skills and Regeneration

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  ...  view the full minutes text for item 7