Canada Water Campaign

DEVELOPING AN ECONOMIC DEVELOPMENT, ENTERPRISE AND EMPLOYMENT POLICY

for CANADA WATER

DRAFT

INTRODUCTION

This paper outlines the elements of an Economic Development, Enterprise and Employment (EDEE) Policy for the Canada Water Area.

It should be remembered that a local EDEE policy cannot be successful if it does not take into account any national and regional policy developments. However, a local policy designed at targeting a particular area can effectively support the development of training and employment activities and enterprise focused activities (both business and community) as well as support and advice for both new and existing businesses.

NATIONAL/REGIONAL CONTEXT

Training and Employment

Nationally we have seen the production of the Skills and Lifelong Learning Green Paper "The Learning Age", the Learning to Succeed White Paper and development of Learning & Skills Councils: the focus of all these developments is clearly lifelong learning with a large part of it focused on improving employability. It should also be noted that these two key activities are not just aimed at adults, but that the commitment to both is envisaged as starting within the school system. The impact that the New Deal and Work-based Learning for Adults (WBLA – LSC until ES hand-over) has had and will continue to have on those considered to be long-term unemployed is also key to the context in which training and employment focused projects can operate, as well as the University for Industry and the recent developments under Learn Direct.

Add to these key national developments the fact that Southwark (and/or parts of Southwark) is a Health Action Zone, Education Action Zone and an Employment Zone and it should be possible to develop a seamless programme of support, education and training with a natural progression/ transition to employment for those who can or want to work and greater economic involvement for all individuals in the area.

The developments planned for the area also offer considerable possibilities for employment and training in both the construction industry and end-user industries/sectors. This would also not be short-term, as might be perceived, with the multiplying effects of developments in the North of Southwark, most particularly the Mayoral Assembly and surrounding area.

Not only should there be a vastly increased number of opportunities in the local and surrounding area, but with an improved transport system and more co-ordinated transport networks (being developed currently), access to opportunities in surrounding areas and further afield, will be far more accessible to local residents.

We will have to be aware of the need for a mix of part-time and full-time employment and that opportunities to undertake training should be built into the development of existing and new employment.

THE OPPORTUNITY

The flexibility of this development, along with a meaningful lead in time, will enable the development of a full range of client specific services.

For employers this would be focused around ensuring a supply of available, appropriately skilled, job ready labour as well as opportunities to develop existing staff, thereby increasing retention rates and reducing recruitment issues.

For existing employees this would cover opportunities for personal/career development and progression in the workplace.

And for local residents/potential employees it would focus on overcoming their individual barriers to, and provide clear access to, both existing training and employment opportunities and those which will be the result of the up and coming developments.

Enterprise

Over the past four years the Government has altered the national context and the support available for business, with lower taxation and the development of an enterprise culture aimed at increasing the numbers who wish to start their own business.

Measures have included promotion of the enterprise culture in schools, establishing the Small Business Service and Regional Development Agencies (the London Development Agency) and providing additional resources to provide services that are not provided by the private sector.

Two Competitiveness White Papers have been published. The first outlining the role of the Knowledge Economy and the second highlighting "Opportunity for All" and developing the idea of widening the enterprise economy.

The creation of the Small Business Service with its aims of:

• being a strong voice for small business at the heart of Government
• developing and maintaining a world class business support service to enhance competitiveness and profitability
• championing entrepreneurship across society and particularly in under-represented and disadvantaged groups
• minimising the burden of regulation.

Subsequent reorganisation of the Business Link network along with the reorganisation of the Governments export service "Trade Partners UK" has provided a potentially clearly focused national agenda aimed at making the UK the best place to do business.

A number of changes have taken place in the provision of business support services in London.

The introduction of the revamped Business Link for London which is now one organisation rather than the eight previously and the creation of the London Business Support Network has the potential to provide a seamless, quality business support service geared towards the needs of business rather than the service provider. However as the Government provides much of the funding and output related the time span for change could be extended.

The London Development Agency has a responsibility in developing enterprise with the London Economic Development Plan pledging to develop, with partners, a Business Competitiveness Strategy for London.

Additionally the Government has provided the finance to create a number of Regional Funds to support business and a fund for high growth business that is designed to attract private sector finance.

LOCAL CONTEXT

Training & Employment

Southwark has a broad range of training opportunities currently available to residents. These come in a variety of forms from mainstream through to local community delivery:

MAINSTREAM DELIVERY

• Employment Service provision, particularly focusing on the New Deal in its various forms and related support and advice services and the newly acquired Work-based Learning for Adults;
• Employment Zone: Southwark is part of the extended pilot of the employment zone (Working Links) delivering work focused training and support to all JSA claimants over 12 months unemployed; and
• Learning & Skills Council (LSC) provision.

Mainstream provision above is available to all residents within Southwark subject to length of unemployment and benefits being claimed.

VOLUNTARY/COMMUNITY DELIVERY

• Local Authority Grant Aid is currently funding a variety of advice/guidance, prevocational/vocational and employment focused training activity. This activity is delivered through locally based organisations targeting specific geographic locations and/or target groups. It should be noted that Grant Aid is now only funding organisations/groups who are also drawing funding from a regeneration programme (SRB) or other external funding source, such as ESF, SDF etc in order to maximise its impact. Eligibility to access these programmes will normally depend on residency in the local area.
• Single Regeneration Budget activity is geographically based and all have an element focusing on employment and training. This takes a variety of forms and again eligibility is subject to residential location.
• Southwark College is a large local provider of a wide range of learning provision, much of it FE/HE related, but also covering the FTET element of New Deal and basic/foundation level prevocational training.
• Other local delivery includes a variety of agencies with a diverse range of funding sources from ESF, WEA, FEFC and Trusts.

It should be noted that although Southwark as a whole is improving the levels and focus of training delivery focused on employment, Dockyard Ward where the Canada Water development sits is very poorly served.

Currently local delivery is limited to Southwark College’s delivery at Surrey Docks, Women’s Education in Building within the ward, Beormund Workshops just outside, along with the Bosco Centre which targets young people.

It is clear from this that the lack of local delivery and services to both the unemployed and those employed at a low level. The Canada Water Development is an opportunity to address this lack, fill a gap in training provision and develop local residents to take up employment opportunities not just in the local area, but further afield. Bridging this gap will also provide employers moving into the area with a skilled and available pool of labour to draw on encouraging inward investment and continued economic development.

Enterprise

BUSINESS SUPPORT SERVICES

Southwark has no business support organisation and the lack of such a body could lead to Southwark losing out on the future provision of services as around London many bodies such as Local Authorities, enterprise agencies are creating new service delivery partnerships to bid for contracts to bid for future services and business start-up funding.

BUSINESS IMPROVEMENT DISTRICTS

Currently being developed by the Government as part of the review of Local Government Finance. BIDs would be able to levy an additional rate to enhance local services.BIDs could only be established with the support of local businesses. Early consideration should be give to establishing a Surrey Quays BID encompassing the shopping centre, Albion Street and parts of Lower Road.

PREMISES

With the continuing pressure on land and the constant change of use from industrial to residential buildings there is a crying need for business premises for new and start-up businesses.

This can be achieved by the provision of an Incubator Units. (The Roberts Close site would have proved an ideal location)

Incubator Developments provide flexible space, let on flexible terms for new and emerging businesses within a development that provides other facilities such as meeting rooms, show rooms and other shared facilities along with good communications and business support.

Incubator developments have been shown to improve the chances of companies surviving longer compared to those companies that do not start in an Incubator.

In its recent white paper the Government noted the importance of Incubators and has established a fund, run by the Small Business Service, to aid the development of Incubators.

KEY ISSUES

At a local level economic development, enterprise and employment policy needs to address the key training, employment and business issues within its remit such as:

• Low or inappropriate skills within the resident and surrounding population.
• Lack of basic skills/pre-vocational and training provision in and around the area.
• Barriers to accessing training including lack of childcare and funding.
• Poor accessibility to training opportunities such as transport and local provision.
• Poor literacy and numeracy skills as a baseline.
• Expanding employment opportunities both within the area and further afield within London.
• Lack of awareness in employers as to the issues, difficulties and realities for unemployed people.
• Many businesses have difficulty in finding suitable qualified staff so many businesses are having difficulty remaining competitive.

• Whilst the responsibility for legislating for increased regulations etc remains with the Government, much of the enforcement falls to local government. By committing to the Enforcement Concordat and establishing a Fair Enforcement Partnership. The council Enforcers can consult with business and develop an understanding of their enforcement policies.

CONCLUSION

Southwark is a key central London location for business and is among the top London boroughs for business concentration as well as having easy access into the other central boroughs and their employment opportunities.

However, both the unemployment rates and the rate of VAT de-registrations is above average for London Boroughs.

Therefore consideration needs to be given to an economic development, enterprise and employment policy including the following issues/activities:

• Increasing access to locally available training and development opportunities and raising the skills base.
• Ensuring that support is available to enable individuals to overcome barriers to accessing training and employment opportunities.
• Expanding/increasing employment opportunities for Southwark residents.
• Identifying and addressing the skill needs/gaps of employers both already established in the area and as part of the process to encourage movement into the area.
• Establishing appropriate training to address the needs of employers as well as working with them to raise awareness as to the issues, difficulties and realities for unemployed people.
• Establishing a Fair Enforcement Partnership
• Establishing a Business Support Organisation
• Establishing an Incubator development in the area.