Report of the Deputy Chief Executive

This report provides an update on the development of the Manchester and Greater Manchester Local Industrial Strategies and their respective engagement approaches. The Strategies will support the delivery of the Our Manchester Strategy and the Greater Manchester Strategy by setting out a set of priorities which will deliver a more inclusive city and city region.

The Committee considered a report of the Deputy Chief Executive, which provided an update on the development of the Manchester and Greater Manchester Local Industrial Strategies and their respective engagement approaches. The Strategies would support the delivery of the Our Manchester Strategy and the Greater Manchester Strategy by setting out a set of priorities which would deliver a more inclusive city and city region.

The Strategic Lead, Policy and Strategy referred to the main points and themes within the report which included:-

·                The Manchester Local Industrial Strategy (LIS) would support the delivery of the Our Manchester Strategy by producing a delivery plan that would help to create a more inclusive economy;

·                The Strategy would be aligned to both the existing UK Government Industrial Strategy and also the Greater Manchester Local Industrial Strategy (GM LIS) which was also currently under development;

·                The Manchester LIS engagement approach would include a wide ranging listening exercise with young people, residents, workers and businesses across the city to provide an evidence base to inform citywide and neighbourhood actions to address the fundamental issues of low pay and productivity;

·                A particular target group to engage with were people over 50, as an ageing society was identified specifically as one of the four main challenges in the Government’s Industrial Strategy;

·                The draft timeline for the development of the Strategy, with formal adoption taking pace in summer 2019;

·                The GM LIS would reflect the main themes of the national Industrial Strategy, but also take a place-based approach that built on the area’s unique strengths and ensured all people in Greater Manchester could contribute to, and benefit from, enhanced productivity, earnings and economic growth;

·                Greater Manchester already had a strong evidence base, however, to enable the GM LIS process to drive forward the next phase of devolution and partnership working with Government, there would be a need to build on this evidence and co-produce additional analysis with HMG;

·                An Independent Advisory review was being progressed and a high-profile expert panel had been formed, who had identified a select number of research commissions that they had recommend be taken forward to support the GM LIS; and

·                The views of industry would be brought into the analysis through a number of challenge sessions which would bring together businesses, policy makers, and academics to discuss the research findings.

Some of the key points that arose from the Committees discussions were:-

·                There was concern that it did not appear that the proposed engagement approach would collect any new information that had not already been collected following the previous consultation on the Our Manchester Strategy;

·                Was it considered that the investment in the consultation on the Manchester LIS was worthwhile;

·                What questions would be asked in the GM LIS engagement process;

·                There was a view that there were important organisations missing, such as the NHS and Mental Health Providers, from the identified key strategic boards that were to be consulted with to help shape the development of the LIS;

·                There was concern that the makeup of the high profile expert panel undertaking the Independent Review did not include any representation from Manchester;

·                How would the strategy reflect back to residents to show their views had been included;

·                How would the Manchester LIS relate to existing Council Strategies;

·                What type of interventions would be part of the scope of the delivery plan;

·                How would the strategy influence major employers within the city to progress their workforce;

·                There was concern that the institutions represented on the expert panel all shared similar views on economic growth and the potential impact that this might have on Manchester’s LIS;

·                How comprehensive did the GM LIS need to be in order to obtain government funding and likewise Manchester’s LIS to ensure Manchester received an appropriate amount of this funding to deliver the aspirations of the city;

·                Could the LIS look to address the gaps that exist within the green jobs sector; and

·                Would it be appropriate to invite comments on the proposals from external bodies who perhaps had different views from    those that were currently represented on the expert panel

The Leader advised that in relation to the membership of the expert panel, the Chair of the Panel, Diane Coyle, had detailed knowledge of Manchester as she had recently left her position as a professor at Manchester University and had also led on the Manchester Independent Economic Review.  The rest of the panel all had strong reputations within their respective fields which would ensure that the findings of the review would have credibility with Government..  He agreed that the link to the GM consultation would be shared with all Committee Members so they were aware of the questions that were to be asked.  The Leader also informed the Committee that the Council did not currently have a coherent economic development strategy and it was envisaged that the LIS would deliver this for the Council.

John Holden, Assistant Director, Strategy & Research (GMCA)added that the detailed research work undertaken as part of the work of the expert panel was being carried out bin part by academics belonging to local universities., referencing the Inclusive Growth Analysis Unit.  The Strategic Lead, Policy and Strategy advised that in terms of engagement on the Manchester LIS, there would be different approaches for different cohorts and gave examples of what this would look like.  He acknowledged the point made around the inclusion of NHS and Mental Health Providers on the key strategic boards and agreed that this would be picked up.  In terms of the value of undertaking the consultation, it was considered a worthwhile exercise as there a lot of quantitive information obtained would be made available by

the GM review, which now needed matching with qualitative data to help identify the different needs across the city.  The Deputy Leader noted the point made about the membership of the Strategic Boards and gave a commitment to ensure that those organisations identified by Committee Members were made aware of the consultation.

The Leader reported that the Council had a lot of policies on economic development but no strategy that linked them all together and it was envisaged that the LIS would link all these together, addressing the ‘Thriving and Sustainable’ economic theme within the Our Manchester Strategy.  The Leader did not share the same concerns in relation to the institutions represented on the expert panel and it would be their role to provide a body of evidence which the Council would be able to utilise.  The Assistant Director, Strategy & Research (GMCA)advised that the GM Good Employment Charter would look to influence major employers within the city to progress their workforce.

The Leader welcomed the comments made in relation to the green jobs sector and advised that at a Combined Authority Level, it was an ambition for the city region  to become a UK leader within this sector.  In terms of the process, it was explained that the expert panel would not be informing the Council what its LIS should be but rather it would provide an evidence base the Council needed to form its LIS.  It was noted that economic growth would require infrastructure investment and it was envisaged that the LIS would establish a base with government to prevent the need for resubmitting funding needs.

The Chair then invited Committee Members to highlight a number of areas that Members felt the GM and Manchester LIS should address.

Decision

The Committee:-

(1)       endorses approaches being developed in Manchester and Greater Manchester and the links between the two pieces of work;

(2)       suggests the following issues/topics as the most significant issues that need to be need to be addressed by the two Strategies:-

·                the development of the green jobs sector;

·                addressing the disparity in wages and those earning the real living wage between employees and residents of Manchester;

·                to have an inclusive economic view of employment within social care;

·                a pragmatic approach to ensuring large employers within Manchester take a more serious approach to the employment of Manchester residents;

·                how the self-employed and those working within the gig economy can benefit from the city’s economy; and

·                a commitment to improving the wage share of income and that all Manchester residents benefit from increased GVA; and

(3)       supports the Manchester engagement process as detailed in the report.