Agenda item

To examine a report on the creation of a new ASDV for Skills and Growth and provide comments for be submitted for consideration prior to a decision by the Regeneration and Assets Portfolio Holder

Julian Cobley and David Laycock provided a report on the creation of a new ASDV for skills and growth. In July 2015 Cabinet had approved the development of a business case for a new way of operating services such as skills and business engagement to improve delivery and provide more benefits to residents and businesses. Cabinet had given the Cabinet Member for Regeneration and Assets delegated authority to approve the business case and delivery model for the new ASDV which was due to be decided at a meeting on 7 December 2015.

The current situation in Cheshire East was that there was an ageing work force and changing demographics. There was good GCSE achievement in young people however low employability skills and many graduates from university were moving on from the Borough. It was suggested that the new ASDV would be at the centre of the issue, encouraging the development of the right skills and supporting businesses to develop in the area and retain the skilled workers of the Borough. The ASDV would also work to address skills shortages in industries such as caring and building as well as encouraging development in engineering and science industries.

The proposed model for the ASDV had been developed by considering a range of options using an appraisal tool developed by Price Waterhouse Coopers (PWC). It was decided that a single wholly-owned company limited by shares was the best option.

Members asked questions and the following points arose:

·         The ASDV would be funded by revenue from grants and bidding for projects from Government as well as fees from helping other organisations get grants and other fees for discretionary services. It was suggested that private companies were better at generating revenue than local authorities and that the ASDV would be able to do business outside of the Council as well.

·         There was a similar model operating on a larger scale in Greater Manchester that was performing successfully. It was anticipated that the arrival of high speed rail in the North West would create a lot of benefits and that Cheshire East needed to be able to compete effectively with places like Greater Manchester to reap the economic benefits of HS2.

·         The strengths and weaknesses of the current staff in the teams which were transferring to the ASDV had been assessed to identified any gaps to ensure the ASDV had the necessary capability to achieve its goals. There was experience of the private sector in the staff and the Councillors chosen to be directors of the company would have useful experience. Staff were enthusiastic about the potential change.

·         Government had recently decided that in future local authorities would be able to retain all business rates raised in their area. It was hoped that this ASDV would contribute towards increase the business rates raised in Cheshire East.

·         Subject to approval of the creation of the ASDV by the Cabinet Member for Regeneration and Assets, the ASDV was scheduled to begin operating in shadow form in January 2016 with a full launch in April 2016.

RESOLVED:

(a)  That the report be noted

(b)  That a progress update be provided in  March 2016, prior to the ASDV beginning operation, to provide assurance about the readiness of the ASDV to succeed. This will be followed by six monthly performance reports to the Committee to monitor progress.