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ITEM EX10

EXECUTIVE – 30 APRIL 2002

ECONOMIC DEVELOPMENT STRATEGY AND WORK PROGRAMME 2002/03

Report by Director for Strategy

Introduction

  1. This report reviews the current legislative and institutional position in the economic development field, sets out a framework for the implementation of economic development activities by the Council, in the context of the Economic Strategy for Oxfordshire adopted by the Executive in January 2002, and makes proposals for the use of the resources available to the Council through the Economic Development Initiatives budget.

    2. The Context

  2. Last year saw a major restructuring of the institutions involved in economic development, and the powers that local government has to engage in economic development and related activities. These included the abolition of Training and Enterprise Councils and their replacement by Learning and Skills Councils; and the enactment of the Local Government Act 2000 which confers a power on local authorities to promote the social economic and environmental well-being of their area and introduces a duty to produce a ‘Community Strategy’ which gives greater flexibility to local authorities to produce economic strategies with other local partners such as economic partnerships. As new institutions are created and new powers enacted, charting a path for the County Council’s involvement in economic development will require flexibility and a willingness to engage in new partnerships. This is reflected in the creation in the Strategy Directorate of a Partnerships Unit in January 2002, where economic development work is based.

  3. The Economic Strategy for Oxfordshire was produced by the Oxfordshire Economic Partnership, and the council adopted this Strategy earlier in the year. This is an important organisation in steering the economic policies of a number of agencies in the county and initiating partnership projects both between its members and with other agencies such as SEEDA. Its membership includes the Chambers of Commerce and other representative business organisations, local businesses, voluntary sector bodies, the Universities and Oxfordshire’s local authorities. The OEP is about to be constituted as a company limited by guarantee and the Council has a right of board representation. The Executive needs to appoint a representative in order that when the company is formed the Council is represented from the outset. This reflects the similar arrangement with the former Training and Enterprise Council, on which the previous Chief Executive was a Board member. The OEP will be a local authority influenced (but not controlled) company, with the five district Councils also having board representation.

  4. The Partnership’s vision is: ‘Oxfordshire as a pioneering world class economy that fulfils the potential of its inhabitants through continually developing its capacity for innovation, business, personal development, research and education, and through the effective management of its high quality environmental resources.’ This is the context in which the Council’s economic development activity should be seen.

    5. Proposals for 2002/03

  5. The programme of expenditure under the Economic Development Initiatives budget that the Executive is recommended to support is set out below. These proposals do not include expenditure proposals in the field of lifelong learning, because while this is an important component of the economic strategy, it is resourced through the Oxfordshire Learning Partnership, the Education Department and the local Learning and Skills Council. Nor is the very important broadband initiative, the Oxfordshire Community Network, referred to because it is being funded through other means.

  6. The base budget for Economic Development Initiatives has been fixed by the Council at £84,000 for 2002/03. There is a carry forward of £10,000 from 2001/02, giving a total of £94,000. The proposed programme to utilise these resources is divided into five broad areas of work, as summarised in the following paragraphs and itemised in Annex 1.
    1. Partnership, research and bidding Proposed Allocation £31k

  1. This includes support for OEP, and a range of partnership activities including the Capital of Culture proposals, other European bidding and networking activities, and support for regional projects such as the Technology Arc proposals. It also includes support for specific research projects that may emerge from the work undertaken by OEP sub groups, or associated organisations like the Oxfordshire Economic Observatory.

    ii Regeneration and social exclusion Proposed Allocation £18k

  1. The Thames Valley SRB programme is continuing and supporting social enterprise remains a priority. The West Oxfordshire network, LEADER+ bid to the EU was successful, and the programme focusing on supporting rural services is just starting. Support for the Unemployed Workers & Claimants' Union and the Ethnic Minority Business Service remain part of this strand of the Council’s work. The Council are invited to appoint a representative to sit on the Management Committee of the Claimants' Union, and to the Board of EMBS, if it wishes, though it has no right of representation on the EMBS board. Unless the Executive considers either of these bodies to be strategic, and wishes to recommend Council accordingly, it will be for the Democracy & Organisation Committee to make any such appointment.

    iii Sustainability and rural issues Proposed Allocation £25k

  1. Work coming out of the Oxfordshire Farming Study on farming, food and rural issues continues, with a successful farmers market programme in 11 Oxfordshire towns and Oxford in 2001, despite the effects of foot and mouth (FMD). A project to promote local food in Oxfordshire led by the Council has now been supported by a range of agencies including SEEDA, Business Link, OEP, Thames Valley Farmers Market Association and the district Councils. A local food champion has been appointed to drive forward the opportunities coming out of the rethink on food post FMD. The continuing work supporting village shops through ORCC is linked to this and remains a priority.

  2. The rural market towns initiative is being extended across the county, from the pilot in Faringdon through a market towns health check programme led by the Countryside Agency. Additionally a successful SAVE2 bid to the EU has led to the establishment of a renewable energy agency for the Thames Valley, TV Energy, which we are supporting. The Council's representative on the TV Energy Board is Cllr Sibley.

    iv.     Innovation, enterprise and competitiveness Proposed Allocation £12k

  1. The Council is a partner in the bid for an Enterprise Hub in South Oxfordshire. We have just heard that the bid to SEEDA for £800,000 has been successful. The business plan will require a small amount of support from the Council over the first three years. Oxfordshire's bid to the Higher Education Innovation Fund with Oxford and Oxford Brookes Universities was also successful, and the two day Venturefest event (to be held this year at the Rutherford Appleton labs in June) will be supplemented by a web based year round facility to be called Venturenet.com

  2. Our involvement in this initiative was highlighted as an example of innovative work in the IDeA Peer Review in the Autumn. Our commitment this year is £2,000. The Council is invited to nominate a representative to the board. The company is neither controlled nor influenced as we are the only Council to have been invited to join the board. As with UWCU and EMBS (paragraph 7 above), unless the Executive wishes to recommend Venturefest to the Council as strategic, it will be for the Democracy & Organisation Committee to make any such appointment.

  3. Finally the Council has a long-term commitment to support local enterprise agencies TBAC and NORBIS and the Oxfordshire Investment Opportunity Network.

    v. Promotion and Publicity Proposed Allocation £8k

  1. Dissemination of information and publicity for many of the activities the Council is involved in is important, as well as giving the Council important profile in the region and more widely. Publication of a promotional guide to the county, ‘Oxfordshire Now‘ is scheduled for May and a ‘services for business leaflet’ is also planned, as well and the biannual ‘Business News’. Work on e-economic development, our presence on the world-wide web, is increasingly important. Developing the Virtual Business Centre and work with partners such as Venturenet.com and OEP are priorities in this area as is facilitating the roll out of the Oxfordshire Community Network to the business community, where we are currently engaged in negotiations with SEEDA and Business Link for support.

    2. RECOMMENDATIONS

  2. The Executive is RECOMMENDED to:

    1. approve the proposals for the economic development work programme for 2002/03 as set out in the report;

    2. approve the setting up jointly with other partners of the Oxfordshire Economic Partnership as a "local authority influenced company" limited by guarantee to promote the vision set out in the report, and authorise the Director for Strategy and the Solicitor to the Council, in consultation with the Deputy Leader of the Council, to take all necessary action for this purpose;

    3. identify the Oxfordshire Economic Partnership to the Council for approval as a strategic outside body, and nominate a member or officer to represent the Council on the Board of the company, when created;

    4. note the intention to ask the Democracy & Organisation Committee to nominate representatives to the boards or managing committees (as appropriate) of the Ethnic Minority Business Service, the Unemployed Workers & Claimants Union and Venturefest.

 

STEPHEN CAPALDI
Director for Strategy

Background papers: nil

Contact Officer: Martin Stott Tel: 01865 815919

16 April 2002


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