North East LEP AGM: “Standout spirit of collaboration, cooperation and partnership” to lead the region’s economic recovery

The North East Local Enterprise Partnership (LEP) believes that the collaboration of organisations seen during the pandemic will support the region’s economic recovery.

At its annual general meeting, the North East LEP reflected on the challenges of 2020 so far as well as outlining plans to help the region to thrive in the wake of macro events such as the COVID-19 crisis and Brexit.

North East LEP chair Lucy Winskill opened the meeting by praising the “standout spirit of collaboration, cooperation and partnership” among companies, universities and business support networks across the region.

Lucy stressed the importance of listening to the “voice of business”, and shared a clear message to the government: “The North East can lead the way nationally in some areas where we have many strengths”.

Chief executive Helen Golightly was the second speaker at the organisation’s first virtual AGM, where she outlined the work undertaken by the LEP to support businesses throughout the pandemic.

Helen confirmed that the LEP’s Recovery and Renewal Plan was put together and submitted to the government in September, in a bid to secure support and funding for the region.

According to Helen, COVID-19 has acted as “a catalyst for change” with the capacity “to transform and reimagine the North East economy”, with a “focus on greener and more inclusive” industries.

In the North East LEP’s executive summary, Helen highlighted some of the challenges faced by the region year-on-year, including a 30 per cent reduction in city and town centre footfall, and 36,500 more people on unemployment benefits.

As well as outlining what the region needs from the government - such as £2.8bn funding to unlock jobs potential and devolution - Helen shared the ambition of the LEP to create 55,000 new full time jobs as part of the green economic recovery.

Following on from Helen, finance lead Paul Wood took to the virtual stage to share how funding has been allocated during the year, including the LEP’s revenue budget, investment programmes and future funding opportunities.

Paul confirmed the annual budget of £5.3m was set in May, with a review to be conducted in January 2021, with most of the income from additional funding for Brexit and the Getting Building Fund.

Looking at the LEP’s Local Growth Fund (LGF), Paul shared that overall spending of the fund is on target, with £14.5m to be spent this year. He also highlighted that £500k of the North East Investment Fund (NEIF) was used to fund the LEP’s Crowdfunder scheme.

Paul confirmed that the Enterprise Zones across the region are set to receive £72m by the end of the current financial year, with “huge growth potential” from estimated business rate income over 25 years of around £460m.

Looking ahead at future opportunities, Paul talked about the initiative to give the region’s ports Freeport status, as well as the government’s push for green energy and industry as well as the Future Prosperity funding as a replacement for Local Growth and EU funding.

Finally, Lucy, Helen and Paul were joined by skills and employment director Michelle Rainbow and business growth director Colin Bell for a panel interview, fielding questions from attendees.

When asked how the LEP is addressing the current “unprecedented” skills and employment challenges, Michelle explained that a skills advisory panel was “very quickly” put together and met on a weekly basis throughout the first lockdown, compiling data to feed into government and lobbying for support.

In addition, Michelle said that the panel identified some key demographics in need of support: education leavers, young people in the labour market, adults in key risk sectors (“for example those without digital skills”) as well as people who were being made redundant.

Saying that the LEP needs to focus on digital exclusion, maximising national initiatives locally“ and self-employment initiatives, Michelle added that “it’s not all doom and gloom, there are opportunities out there” giving examples of sectors such as healthcare, logistics and green energy.

Colin answered the question of whether businesses would bounce back by praising “the resilience of our business community… the way they’ve responded to the pandemic in a ‘people-first’ approach”.

Colin explained that the need for businesses to pivot has left them “tuned in to what their competencies are” and that although some have expressed concerns about serving their core market post-COVID, “[businesses] will exit this crisis with more strings to their bow”.

With “working capital stripped right back to the bone” for many of the region’s businesses, Colin explained that the North East needs “healthy access to finance” if it is to recover economically.

When asked about the impact of furlough, Colin conceded that businesses are in an “artificial situation” and that the removal of furlough will “inevitably see a rise in unemployment”.

Answering the question of whether the government had issued a response to the LEP’s renewal plan, Helen commented that the proposals had been “welcomed as a strong plan going forward” and has stimulated “a lot of positive conversations.

Helen added: “We’re not naive enough to think we’re going to get some big overarching announcement but the dialogue is strong.”

In response to the question of the impact on the region if the UK fails to secure an EU trade deal by the end of the year, Colin explained that the “economic impact would be significant” and that the region would be “disproportionately affected by a no-deal scenario”, but said that he remains “confident that we’ll secure a deal.”

Helen also added that the LEP has been preparing for this, “having dialogue with government” as well as being instrumental in forming the North East Brexit Group in 2016.

When asked what the LEP are expecting in the imminent government spending review, Paul replied that “opportunities around green energy and electric vehicles” were important as well as the freeport opportunity: “We’re really going to accelerate our own pipeline to be read when these funding opportunities come forward”.

Addressing the restoration and development of the region’s tourism, arts, heritage and culture sectors, Helen confirmed that the LEP does not have “specific budgets for other sectors either, we have overarching funding” but added that it “certainly is very important to us going forward.

Finally, when asked what is being done to maximise the North East’s ability to reach wider markets through virtual working, Helen concluded that “we’ve got a digital strategy… within that is infrastructure. We’re very much working on particular places within the North East.”