Agenda item

To receive a report on Economic Development - Partnerships and Businesses.  

Mark Bradbury, Director of Property & Economy, and Bob Doyle, Head of Economic Development introduced the report.

NOTED:

1.    Cabinet approved the Economic Development Strategy ‘An Economy That Works for Everyone’ in February.

2.    The purpose of the new strategy is to:

·         Increase High Quality Employment Opportunities in the borough

·         Connect people with improved skills and training opportunities to be able to take advantage of the high-quality employment opportunities as they arise

·         Make better places in the borough in particular Town Centres

·         Craft a culture offer both for the people of Enfield and as part of London’s wider culture offer.

3.    The Pandemic has meant that the business support offer to the business communities has been enhanced. A business response team was established at the start of the pandemic. A range of grants was administered throughout the year, this is still ongoing.

4.    To date over £100 million in grants and rates relief has been distributed. The latest grant is the Additional Restrictions Grant totalling £9.6 m, phase 1 of this is currently underway. This money must be allocated before the end of June.

5.    To enhance the offer to the business community, an additional Head of Service has been seconded to the team to ensure that there is efficient delivery of the grants.

6.    £106 m in terms of grants and rates relief received is detailed on page three of the agenda report.

7.    There has been new investment and lots of interest in coming into the borough, examples of this being Metaswitch, a Microsoft company with global headquarters in Enfield Town. Troubadour Meridian Water Studios which has helped put Enfield on the map as a leading location for film and high-end TV production, the OMA Studios in the north of the borough and Global Streaming services.

8.    In terms of investment from the Council, examples were highlighted which are detailed in the report such as Montague Industrial Estate, the Kickstart scheme and Angel Edmonton projects (Good Growth Fund and African Caribbean Business Centre which will both be delivered within the current year).

Comments, queries and questions raised:

9.    The Strategy that went to Cabinet in February includes an employment breakdown in Enfield by industry. With regards to the wholesale retail trade covering the repair of motor vehicles and motorcycles, employee jobs were roughly twenty thousand. These industries have remained open during the pandemic, what support has this sector received? Officers confirmed that as the motor trade has larger premises than average this has meant that the rateable value was above the threshold for the early small business grants. Motor trade was a priority for the Discretionary Grant scheme. There were gaps in the earlier grant funding as they were not classified in the early criteria or their rateable value was too high. The Council have been looking at supply chains to ensure that these are supported. A lot of Enfield’s economy is around supply chains that feed into businesses and the hospitality sector across London. Officers have been looking at the whole supply chain and using the more discretionary grants to support these.

10. What feedback has been received from local businesses for the draft Economic Development Strategy? Pre Covid there were a number of events for larger businesses to look at their priorities. The intention was then to engage with smaller business in a similar way. However, the pandemic has restricted this, but at the same time has provided opportunities to talk to businesses to help them access funding, after this help, the dialogue and support has continued and allowed feedback throughout. This feedback will be taken into account as the Strategy is finalised and then published.

11.The film and TV industry is growing in Enfield now working with potential supply chain businesses. There is a business who were previously involved in theatres, festivals and music events and the Council is now working with them  to get them involved in producing sound stages and lighting rigs for film and TV industry, using funding from a partnership with Haringey and the GLA they will be able to take on 20 apprentices in a growing industry in Enfield.

12.Initially, members received complaints on delays in provision of grants after the Tier 4 restrictions in December, is this still an issue? It was confirmed that whilst there were software issues, all lockdown grants are now up to date.

13.Montague Estate, this has taken a long while and is still ongoing, would it have been possible to start work on the 20 acres already owned while the purchase of the remaining 9 acres goes through? Officers confirmed that things have moved rapidly in the last year, work has begun on land already owned by the council, there will be units available for occupation from October 2021. A report will go to Cabinet for approval for a Compulsory Purchase Order in due course. This will be a last resort, the Council is still negotiating with the landowners, there are some deals agreed. It is hoped that the CPO will bring the last few people to negotiate and will also include historic parts of the land where there is no title. There is an agreement in principle with the largest remaining landowner, currently finalising the Heads of Terms.

14.Metaswitch, is there any guarantee that they will still need the building as long as the 15-year lease? Would another business want to use this space? Officers advised that there has been a regular dialogue throughout the project. Microsoft have assured the Council that this will be the European headquarters for the Azure brand (Cloud computing brand). The signs are positive, they intend to expand during the course of the lease. There is some nervousness in city centres in the office market. However, demand is increasing in suburbs and smaller towns for co working space in locations close to stations.

15.In discussions with Metaswitch and other office-based businesses has the mix between home working and office working been discussed? What the implications to retail in the town of home working? The discussions with Microsoft are very high level at present but have talked to other businesses about the future of offices. The general view is that there will be a move to working on average 3 days a week in the office, with much greater emphasis on collaboration when in the office. Metaswitch has built in the capacity to expand from 300 to 500. With more agile office working this may allow more people to work from the same office space and this may have a positive impact on town centres.

16.What is the relationship with government on how quick the grants move? An average grant received per business is often quite small was this enough to help businesses survive? Officers advised that during purdah it is not appropriate to comment on the government’s policy on grants. In some instances, people fell through the net and the greater flexibility on discretionary grants has helps deal with this. The relationship is good with regular communication. There will be some business who have had relatively large amounts of money and do not survive, some that have had little money and survive and there will be some who have not had enough and will not survive.

17.Troubadour and OMA studios, what is the long-term deal and how long for, what are the economics and finances within the Council for keeping them in Enfield? The deal was done by the Meridian Water team. It was agreed that a short briefing would be provided to the members of OSC on this. OMA Studios, other than working with them and helping them through the planning process and helping to promote them, there are no dealings this a totally commercial deal.

18. Number 46 in the report details some new businesses coming into the borough. An observation was made that this is very positive.

19.Will Enfield residents get priority for the Skills Academy for the studios? The Strategy is moving Enfield to a higher wage economy and this will include making opportunities for Enfield’s young people to get into these industries. Firstly, this will be sound stages and big studios, then the supply chain around this.

20.Green Economy, how close will the council be working with Capel Manor and other institutions on this issue? There will be a strong offer on the green economy, due to the development going on at Meridian Water and regeneration of other estates. This provides an opportunity for Enfield to become an exemplar authority introducing new ways of doing things, such as new transport, building materials and technologies. The Council is also having conversations with Central London universities about engaging in the green economy. Pre Covid there were discussions about the possible of an Institute for Technology within the borough

21.The Culture offer what does this mean? This is about encouraging residents to enjoy cultural pursuits, as well as making Enfield a place where cultural and creative industry can thrive.

4How many businesses have been lost during pandemic? Are we working with job centres on this? During the pandemic the business start-up rate   has accelerated. Whilst some business have failed and some people have lost jobs, this is also a time of new business opportunities. Business support will help people optimise these opportunities. The Pandemic has accelerated some trends were the business model was failing, some business have adapted and shown great innovation, transitioning into different markets.

22.An observation was made that due diligence work should be undertaken on the businesses that may have gone out of business during Covid to see where the council has engaged or could engage.  Officers confirmed analysis will be undertaken once resources are available to look at opportunities to support businesses.

Officers were thanked for their presentation.