Agenda item

ECONOMIC RECOVERY PLAN

The Director of Tourism, Culture and Investment submits a report updating on the work to develop an initial economic recovery plan for the city.  The Commission is recommended to note the contents and comment on this report.

Minutes:

The Director of Tourism, Culture and Investment submitted a report updating the Commission on work to develop an initial economic recovery plan for the city in response to the Covid-19 pandemic.  He noted that:

 

·           The plan had been delayed by the extended local restrictions imposed by the government on Leicester and a lack of information from the government;

 

·           The plan would be co-ordinated with the Council’s partners and with the Leicester and Leicestershire Enterprise Partnership’s plan, which had recently been released for consultation;

 

·           Resources would be committed to improving the city’s image and actively encouraging new investment in the city;

 

·           A focus of the plan would be youth unemployment, which was expected to get worse, as well as unemployment in other vulnerable groups.  Ambitious targets would be set, through which the Council would provide leadership in addressing these issues;

 

·           Space at the Adult Education Centre or other city centre facilities would be used to co-ordinate support for the “Kickstart” project and other initiatives to address youth unemployment, working closely with the Department for Work and Pensions;

 

·           Consideration would be given to how the Council could improve its spending power, for example through the procurement process;

 

·           A lot of work already had been done to support businesses.  The Council had been very proactive in ensuring that grant aid reached businesses;

 

·           Central government resource was critical.  Approximately one-third of Leicester’s work force, approximately 50,000 people, was directly supported by the government’s furlough scheme or small business assistance programme;

 

·           Conversations were being held with the Council’s Sustainability team and other interested parties about how the city’s economic recovery could support work being undertaken to address the Council’s declared Climate Emergency.  This included considering how “green jobs” could be provided;

 

·           The Covid-19 situation continued to provide both challenges and opportunities.  The Council therefore would continue to look at what could be done differently and to work with others to identify a “new normal” and how this could be achieved quickly.  This included consultation with bodies such as the local universities; and

 

·           It was hoped that the economic recovery plan could be published in October 2020.

 

Members agreed that the current emergency situation needed to be addressed.  The city had a higher number of young people than some comparable cities and would face very significant problems when the government’s furlough scheme ended.  For example, demand for help from food banks already was very high and was increasing.  Production of an economic recovery plan therefore should not be delayed.

 

The City Mayor advised the Commission that the Council would continue to make representations regarding the ending of the furlough scheme and the three city Members of Parliament also were making representations.

 

The Commission agreed that central government support was vital to the city’s recovery and expressed concern that the ending of the furlough scheme could destabilise the economy.  It was recognised that the Council’s resources were limited, but Members felt they should be used as strongly as possible.  For example, it was possible that property prices and rents would drop substantially, due to reduced footfall.  It therefore was asked whether this could be addressed by the Council financing the purchase of property, (for example, using funding acquired through the Public Works Loan Board), and leasing it out as cheaply as possible.

 

The City Mayor reminded Members that the Council already invested heavily in the city centre.  Providing property at a below market cost would create a revenue cost for the Council.  The Council already had been subject to a £150million reduction in grant from central government, so undertaking a project of the nature suggested would mean having to reduce expenditure in other areas.

 

It was noted that the Council had undertaken to acquire office space at the Charles Street Building Scheme if the developer was unable to let it and Members asked whether the Council would need to do this.  The Director of Tourism, Culture and Investment confirmed that the developer of the scheme was very confident that they would be able to let the space.  As such, they had not sought to exercise the option of the Council taking the space and believed that they would not need to do so.

 

Some concern was expressed that the city’s recent history would make it difficult to “talk up” the city and would not encourage potential investors to look here.  The City Mayor stressed that the city currently was buoyant.  For example, meetings were scheduled over the next few weeks with several new businesses wanting to invest in the city.  “Talking up” the city therefore would not be difficult to do.

 

AGREED:

1)    That the report be noted;

 

2)    That the Director of Tourism, Culture and Investment be asked to consider the comments recorded above in the development of the economic recovery plan for the city; and

 

3)    That the Director of Tourism, Culture and Investment be asked to report further to this Commission on work to aid the city’s economic recovery once the economic recovery plan is published.

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