Agenda item

The Director of Tourism, Culture and Investment submits a report outlining the ongoing work to develop an initial economic recovery plan.  The Commission is recommended to note the contents of this report and comment on the proposed approach, in particular the suggested objectives for the economic recovery plan.

The Director of Tourism, Culture and Inward Investment submitted a report outlining ongoing work to develop an initial Economic Recovery Plan in response to the Covid-19 pandemic.  The Director emphasised that this currently was a first stage Recovery Plan, which established the work streams needed to deal with the issues covered.  More detail would be added to the Plan later in the year.

The Director noted that the city’s economic recovery had barely started before the city was placed in local lockdown.  Although this increased the challenges faced, the city’s investment pipeline was still in place, with investors such as the universities, this Council and major developers still planning to do work on site.  It therefore was important not to let this stall. 

The importance of designing responses that were effective for those most affected by the recession was stressed.  Concerns had been identified about possible actions that employers would take, but the Council’s relationship with employers was better now than it had been previously, so a good basis for engagement existed.

The Director also advised that it was hoped to use the framework for inclusive growth that had been recommended in the report of the recent Task Group review of Economic Development at Local Level, (minute 70, “Task Group Review of Economic Development at Local Level”, referred).

At the invitation of the Chair, Jonathan Payne, Professor of Work, Employment and Skills at De Montfort University, addressed the meeting, welcoming the partnership with employers, but raising the issue of how to engage employers to address social problems, such as how to provide better jobs, or provide opportunities for deprived people, particularly in terms of work experience.  Professor Payne also stressed the need to establish a firm definition of inclusive growth, the core of which should be quality of work.

The Director agreed with the need for job quality.  Locally, too many businesses were under-employing the skills available, so these needed to be better utilised, (for example, providing appropriate jobs for graduates).

The Head of Economic Regeneration then made the following points:

·           The Council had some well-established partnerships, such as the Leicester and Leicestershire Enterprise Partnership and the East Midlands Chamber;

·           Before the Covid-19 pandemic, the Council had been supporting approximately 150 businesses per month, but since the start of the pandemic this had increased to approximately 250 – 300 per month;

·           Work was being undertaken to engage with businesses and individuals in other ways than face-to-face, such as through a virtual business fair and live interviews using technology.  Good results were being seen as a result of this; and

·           As a lot of people were likely to soon become unemployed, a focus needed to be maintained on those furthest from the labour market.

Councillor Myers, (Assistant City Mayor – Policy Delivery and Communications), stressed that the purchasing power of anchor organisations should not be underestimated; the Council was likely to be the city’s biggest purchaser over the next few years.  Investment rates also were likely to have a significant impact on the quality of people’s lives in the city, so were a significant aspect of economic recovery.

The following points were then made by Commission members in discussion:

o    It was important to have good quality jobs;

o    It would be disappointing if the economic recovery was based on developments that could become obsolete in a few years’ time;

o    Inspiration for new solutions to the city’s economic situation should be sought both nationally and internationally, but the Council should also create its own solutions and lead in the city’s economic recovery;

o    Leicester was resilient because of the diversity of its economy, in that it did not have a single large employer; and

o    Younger workers and those with fewer skills were likely to be the most affected in the anticipated post Covid-19 recession and Leicester had a high proportion of these people.

AGREED:

1)    That the developing Economic Recovery Plan be supported; and

2)    That the Director of Tourism, Culture and Investment be asked to prepare a further Economic Recovery Plan by November 2020 at the latest, which reviews progress and proposes initiatives to support:

a)     City centre recovery, including plans to grow the city centre residential population and respond to new ways of working;

b)     Greater space for pedestrians and cyclists and to help people access work opportunities;

c)     Vulnerable sectors struggling to re-open;

d)     People out of work to gain new skills and secure employment;

e)     Young people, particularly initiatives to create opportunities such as training, apprenticeships, or employment; and

f)      Disadvantaged neighbourhoods.