1. The Lancashire Economic Strategy A New Agenda for Lancashire County Council Presentation to Special Cabinet by the Chief Executive 1 September 2009

2. Purpose of New Economic Strategy To articulate the County Council's key economic development priorities, identifying HOW & WHERE the sustainable growth we need in Lancashire can & will be delivered To inform & influence emerging national, regional & sub-regional strategic frameworks, & to share our thinking with key partners To help shape emerging MAAs, Economic Development Companies & Vision Boards To respond to opportunities afforded by SNR & meet CAA requirements To ensure the County Council's own strategies, priorities & activities fully contribute to the achievement of agreed economic outcomes To establish a Strategy that commands the confidence of key sectors, especially the private sector, & can be used by key partners to help deliver the economic outcomes Lancashire requires

3. Approach of New Economic Strategy A sharper focus on the issues that make the most difference Informed by evidence-based analysis Amplification of the County Council's strategic & community leadership role Opportunity for County Council to deliver improved economic outcomes from its own activities and actions Opportunity to work more closely with private sector partners to develop shared objectives and priorities Opportunity to provide a clear, coherent, strategic framework for partnership/partner activities in Lancashire

4. Changing Strategic Context Entering a sustained period of economic uncertainty with limited public investment & need to achieve much more with less National economic policy can no longer be solely focused on the growth of financial services in London/South East - urgent need for places like Lancashire to punch above their economic weight Government thinking is starting to shift with greater emphasis on local & sub/city-regional leadership of economic development agenda - especially MAAs Need for Lancashire to maximise opportunities generated by any changes in the future role of RDAs Need for Lancashire to provide robust and inclusive leadership to realise its economic potential, especially as neighbouring City Regions continue to make progress

5. Key Economic Challenges Lancashire is a place of national economic significance, but GVA growth has been in gradual (relative) decline for too many years

6. Key Economic Challenges (continued) Economic performance is often portrayed as "average" but Lancashire is a place of relative extremes - outstanding job growth and good skills levels in Mid Lancashire, whilst Pennine Lancashire continues to restructure Advanced manufacturing & energy sectors continue to operate in global markets, but higher value-added professional, business service & retail sectors have not grown at the rate expected or required Significant knowledge economy assets - which provide a competitive advantage - have not been fully exploited to support growth and innovation in local economic-base Relatively high skills-base, but mismatch between the skills held by residents & the needs of economy

7. Key Economic Challenges (continued) Employment increases have been largely generated by the growth of the public sector & not the private sector No new private sector investor/occupiers of national significance attracted to Lancashire for many years Lack of high quality business/investor product, including Grade A business accommodation, especially compared to competitor locations The economic role & contribution of Preston, & lesser extent Lancaster, as focal points for higher value-added growth, has not been maximised Wealth creation & employment opportunities must be more accessible to those in greatest need Economic partnerships at local & sub-regional levels need to be fit for purpose (eg. LEP review)

8. Key Priorities for Action Locational Priorities Lancashire (& wider region) requires a clearer focus on those places & opportunities that can deliver the sustainable growth required to inform the emerging Integrated Strategy for Lancashire & Regional Strategy 2010 Strategic Development/Inward Investment Strategic development opportunities must be advanced more quickly to grow & attract high growth sectors, with Preston fulfilling its potential as a financial, professional & retail services centre of regional importance

9. Key Priorities for Action (continued) High Growth and Knowledge-based Sectors HEI & digital assets must be exploited to generate greater economic value & stimulate innovation; the performance of advanced manufacturing, creative industries & visitor economy must be further enhanced; & the potential of energy & environmental technology sectors unlocked Business Support Services Services must refocus & support the growth of knowledge-based industries, which are under-represented in Lancashire, to help accelerate knowledge transfer, incubation & spin-out opportunities

10. Key Priorities for Action (continued) Skills Skills provision must be much more responsive to economic demand, but employers (especially SMEs) must recognise the need to continue up- skilling their workforces Gaps in the resident skills-base must be closed more quickly, if those in greatest need are to access the opportunities being created Employability Mainstream employability services are increasingly targeted at the recently made redundant There is a need to integrate approaches to addressing the needs of both the recently made unemployed & individuals that have been workless for many years

11. Key Priorities for Action (continued) Infrastructure The conditions for sustainable growth must be underpinned by strategic planning, transport, housing and digital infrastructure priorities that are fully aligned with agreed economic development objectives

12. Changes in the Way We Work  LCDL The new ES will establish the strategic context & priorities that will define the services & actions of LCDL, with a view to rationalising activities & focusing on actions that deliver the greatest economic benefit Business support services and investment decisions will be increasingly targeted on higher value economic activities, with employability & skills actions focusing on the high skill demands of employers & the progression needs of workless residents  Strategic Planning, Transport & Housing The right (spatial) strategic choices will need to be made as major public investment programmes become increasingly limited County Council needs to use its strategic policy making capacity more effectively to shape sub-regional & regional investment frameworks

13. Changes in the Way We Work (continued)  14-19 Partnership & Adult Education Services A clearer focus on economic demands & employer skills needs must be integrated within these strategies and services, especially as LSC transition arrangements progress, including the new AACS; opportunities to explore employer demand for new Diplomas & linkages to HEIs; plus opportunity to better integrate EBP within economic agenda  Role as an Exemplar Employer County Council is making real progress as an exemplar employer, in terms of its commitment to workforce development geared to addressing future business needs Progress on apprenticeships, in particular, needs to be scaled-up & adopted by other key employers across Lancashire

14. Changes in the Way We Work (continued)  Capital Programme, Procurement & Investment Need to maximise the impact of the County Council's capital programme & procurement activities, in terms of supporting indigenous enterprise & the promotion of local supply chains, without compromising VFM & service quality, & in stimulating innovation in local business-base New approaches to partnering with others also need to explored; County Council's own investment funds could be used selectively to promote key economic priorities  Corporate Property & Facilities County Council must remain ready to acquire sites to support strategic land assembly, where this is appropriate, & to dispose of assets at nil/reduced value to secure strategic regeneration benefits County Council also needs to exploit more intensively key assets (such as Cleo) to deliver wider public service benefits and economic gains

15. Changes in the Way We Work (continued)  Place Shaping Role County Council must ensure that key mainstream programmes - Building Schools for the Future, Social Care, LIFT, Housing Growth Point, Local Transport Programme, etc - are fully co-ordinated to deliver the regeneration outcomes required in the right places County Council must continue to develop its “one council” approach

16. Measures of Success Wealth creation - GVA uplift, productivity improvements, greater levels of private investment & higher value-added jobs Narrowing of the economic performance gaps of those residents & places in acute need Less public resource delivering greater productivity & better outcomes Lancashire priorities better reflected in new & emerging national & regional frameworks Lancashire to have earned a reputation as a place capable of making things happen County Council to have established a track record of achievement in working with private sector partners to improve Lancashire's economic prospects

17. Next Steps Views of Cabinet sought on approach & direction of new ES Submit Draft ES to Cabinet Meeting in October Share Draft ES with private sector partners in October Consult with District and Unitary Local Authority partners in October Approve final ES in November/December