Agenda item

To seek approval to develop a comprehensive Economic Strategy for North Tyneside and accept grant funding from the North of Tyneside Combined Authority to support the development and commissioning of the Strategy.

Cabinet considered a report seeking approvalto develop a comprehensive Economic Strategy for North Tyneside and accept grant funding of £65,000 from the North of Tyne Combined Authority to support the development and commissioning of the Strategy.

In May 2021 Cabinet agreed an Inclusive Economic Strategy for North Tyneside. The strategy included a framework, built around the concept of rights to seven fundamental areas. These included Education, Employment, Safety, Social Equity, Housing, Connections and Environment and the Strategy sets out how the Authority can use economic growth to ensure residents had access to good quality provision. As well as ensuring those with protected characteristics were fully linked to opportunities.

The Economic Strategy would take this thinking further and include an additional focus on how North Tyneside as a coordinated ‘place’ would achieve economic growth and provide a greater understanding of the Boroughs strengths and the opportunities that can act as enablers. The Strategy would then incorporate the principles of the existing Inclusive Economic Strategy which demonstrated how growth would provide opportunity for the Boroughs deprived wards and how it supported the objective of reducing inequalities.

The Authority had allocated a small budget within the Director ofRegeneration and Economic Development’s approved budget to develop this strategy but by securing the additional North of Tyne Combined Authority (NTCA) funding this work could be truly amplified to ensure that the strategy was fully collaborative across stakeholders and partners and could clearly demonstrate how the Borough could contribute to the region’s aims and objectives, particularly in light of North East Devolution.The project would be delivered in the following stages:

·       Consultation – Led by the Authority via the Regeneration and

Economic Development Team and the Engagement, Participation and Advocacy Team. Consultation will be carried out with partners, stakeholders, businesses, and residents.

·        Economic Analysis –The appointed specialist will look at baseline economic data and provide a robust analysis to set out the position in North Tyneside and identify key strengths, challenges and opportunities.

·        Drafting the Strategy – Using feedback from consultation, economic evidence and analysis and information and review from the team, the specialist will draft the strategy in line with key priorities. There will be scheduled review points where feedback and further consultation can be sought before the final draft is produced.

·         Publication – The strategy would be published and promoted in partnership 

      with stakeholders and partners as a place-based strategy for the Borough.

This project supported the NTCA’s Corporate Plan by defining, understanding, and articulating how North Tyneside can support the key aims and ambitions as outlined within the plan.  In particular, how the Borough can deliver against the following portfolios:

·       Jobs, Innovation and Growth – Developing a deeper understanding of the North Tyneside business profile and the opportunities they represent, defining the opportunities for job growth and tackling challenges in the talent pipeline, defining real sector strengths and identifying leading clusters with future potential. Working to understand where innovation can lead productivity gains, prosperity and growth, with links to the green economy. As well as articulating and defining the inward investment proposition for the Borough.

·       Education, Inclusion, and Skills – Developing a strategy for upskilling the local workforce in line with the NTCA Strategic Skills Plan to ensure businesses have the talent they need and to promote inclusion in the economy.

·       Cultural and Creative – coordinating the economic development outcomes contained within the North Tyneside Cultural Plan and incorporating the North Tyneside Cultural and Creative Zone.

The strategy would also include North Tyneside’s contribution to elements of the cross-cutting themes as set out below:

·       Net Zero Transition – by ensuring residents and businesses are equipped with the skills needed for the future and ensuring businesses are supported in making the necessary changes for a successful transition to a sustainable economy.

·       Inclusive Economy – by ensuring all elements of growth and economic opportunity are accessible and beneficial to all.

·       Innovation in Recovery – supporting post pandemic innovation in the private sector and securing any opportunities it represents for North Tyneside and the wider region. E.g. Pharmaceuticals, digital and tech, advanced manufacturing, renewables and offshore.

The Strategy would also ensure that North Tyneside provides an active and meaningful contribution to the following goals as defined in the NTCA Corporate Plan, the value of which would be determined as a result of the Strategy - £1.1bn of new economic growth; 10,000 new jobs; 2.1bn private sector leverage; and 37,000 learning opportunities a year.  The Strategy would also be developed in line with the priorities as set out on the North East Devolution Deal to ensure that it had longevity and continued to be meaningful over the next 5 years. In particular, the strategy would consider:

·                  Economy & Investment Fund – a scaled up fund underpinned by an investment plan driving inclusive economic growth, net zero and addressing inequalities. The value of which is £48m per year for LA7 totalling £1.4bn over the deal lifetime, with substantial leverage effect.

·                  Skills, Education & Inclusion – scaling up devolved skills package (to around £60m p.a.), encouraging strong collaboration around education and continuing a focus on inclusion, careers & employability.

·                  Clean Energy & Net Zero – measures to unlock potential and increased investment in our major industries, businesses and infrastructure to support clean energy & net zero transition.

·                  Culture, Tourism and Place – scale-up of cross-regional activity and endorsement of major NE opportunities.

·                  Business Growth & Inward Investment – provisions to join-up regional assets to strengthen investment potential.

·                  Trailblazer Negotiations and Future Funding – allowing the combined Authority the option to ‘fast track’ into further powers and investment and maximise future funding to the Borough and wider region.

Cabinet considered the following decision options: either to agree the recommendations as set out in paragraph 1.2 of the report; or alternatively, to not accept the recommendations.

Resolved that (1) the Director of Regeneration and Economic Development, be authorised to accept the £65,000 grant funding from the North of Tyne Combined Authority in relation to A Strategy for Economic Growth in North Tyneside;

(2) the Director of Regeneration and Economic Development, in consultation with the Director of Resources and Head of Law, be authorised to enter into the Grant Funding Agreement and any other documentation as required to facilitate resolution (1) above; and

(3) the Director of Regeneration and Economic Development, in consultation with the Director of Resources and the Head of Law, be authorised to commence the procurement of a specialist to assist with analysis work and the drafting of the Strategy for Economic Growth, and to award a contract to the bidder who submits the most advantageous tender in accordance with UK public procurement legislation.

(Reason for decision: Accepting this funding will enable the authority to produce An Economic Strategy for North Tyneside.)