Realising your place s potential - the changing economic landscape. Michael Wood NHS Local Growth Advisor NHS Confederation 8 November 2018

Transcription

1 Realising your place s potential - the changing economic landscape Michael Wood NHS Local Growth Advisor NHS Confederation 8 November 2018

2 How do local partners see the NHS? Cost Invest -ment Is the NHS involved in local discussions about raising money or spending money?

3 Why am I here? The changing governance, financing and control of the place in England, from LEPs to Mayors The productivity puzzle (and its links to prevention) The new Industrial Strategy The economic might of the NHS The productivity and prevention partnerships that matter

4 Local Growth realising every place s potential RDAs scrapped and LEPs created Since 2010 government shifted economic powers away from centre to local communities, businesses, citizens City Deals, Local Growth Deals Increasing localisation of fiscal policy Where drivers of growth are local, decisions around economic planning and strategy should be made locally Policy context has developed through defining the place Combined Authority Deals & Metro Mayors

5 WHO is making decisions about WHAT with WHOM and HOW?

6 Local Growth and STPs cost v investment? RDAs scrapped and LEPs created New regional collaborations Localisation of finance and powers LOCAL GROWTH STP Local Authorities as key partners City Deals, Local Growth Deals, Devo Deals Population health management The place is where they (might) meet

7 Why place really matters? UK regional productivity often similar or worse than Poland, Hungary and Slovakia and former DDR Very weak levels of business investment in R&D; and concentrated in too few (EU dependent) sectors Interregional problem is worst in OECD with decoupling, dislocating and disconnecting Measured comparatively, 11 of the 21 poorest local economies in Northern Europe are in England (Eurostat) Most UK regions up to 4 times as dependent on EU markets than London / South East

8 The productivity puzzle and place

9 Health and Wealth - joining the dots Social wellbeing and wealth Good worker health Economic Development and prosperity Productivity at Alan Higgins Business Competitiveness

10 The Industrial Strategy

11 Developing an Industrial Strategy Industrial Strategy published in November 2017 government s response to dismal and dislocated economy Local Industrial Strategies to be developed and agreed by April 2020, led by your Mayor or LEP Will prioritise significant funding for and powers over infrastructure, skills, research and innovation, economic growth, inclusive growth, transport Place only point at which LIS overlaps with STP/ICS/ICP (overlaps with.)

12 Developing a Local Industrial Strategy Skills Transport Infrastructure Research Economic Growth Inclusive Growth

13 Inclusive Growth - You can t eat GDP Economic growth that creates opportunities for all segments of the population and distributes the dividends of increased prosperity, both in monetary and non-monetary terms, fairly across society (OECD 2015) FINALLY economic theory closely aligned with social policy and focused on investments that specifically address inequalities, including health

14 Place-based funding of the future UK Shared Prosperity Fund Combined Authority Investment Fund Strength in Places Fund Industrial Strategy Challenge Fund Transforming Cities Fund

15 The NHS matters to every local economy Local partnerships can derive service improvement, additional resources and greater influence, but: where is our added value? how do we show this? what does good look like? how do we link up across a fragmented system? but every local economy is different

16 NHS spending and jobs in the Black Country Expenditure 2014/15 (based on a review of local CCG and NHS Trust accounts) Annual spend of 2 billion on o Wages / other benefits: 1.1bn o Purchases: 0.9bn Gross Value Added 2014/15 (based on wages and reported surpluses) Direct economic impact: 1.1bn o 5.5% of Black Country GVA Total impact (after multipliers): 1.5bn o 7.9% of Black Country GVA Employment 2014/15 (based on review of local CCG and NHS Trust accounts) Permanent employment: 29,000 jobs (24,200 full-time (FTE) equivalent jobs) Plus Bank (4,400) and Agency staff (2,100) FTE Total direct jobs funded by the NHS: 30,800 FTE o 6.3% of the Black Country workforce Total impact (after multipliers): 40,800 FTE o 8.3% of the Black Country workforce Informal care: 3.9m hours per week (c100,000 FTE)

17 NHS as an anchor institution what is our role in this? You are: large/spatially fixed/social purpose? Do you know the externalities of your institution s decision-making? If not, why not? What impact are you making on local economy? Good and bad? Employment / investments / procurement / land & assets Business comes and goes you can surf the waves of investment or pick up the pieces of broken economy The growing support for the Preston model Looking after your own workforce (5% of local workforce) With opportunities (and an extra 3.4%) comes responsibilities

18 Matt Hancock: My vision for prevention

19 Broadening your prevention and population health partnerships Local Enterprise Partnership VCSE Metro Mayor Prevention is important to Local & Combined Authority Chambers of Commerce Universities & colleges

20 Weighing up the options locally Investing in mental health for productivity gains Better use of estates to generate local business rates Clinical/non-clinical research focused in the Industrial Strategy Grand Challenge areas Careers advice in schools that s focused on entry points to health and care workforce Workplace wellbeing owned by the big employers Corporate Social Responsibility focused on the STP priorities The impact of the Business Improvement District Lord Carter efficiencies v local supplier development

21 Final thoughts Local Growth agenda is about understanding how a place can be its most productive & prosperous Prevention a key part of this, with opportunities to align population health and inclusive growth through Local Industrial Strategy Health and care not only sector to benefit from prevention understand your impact on the local economy and share the risks/rewards The NHS should be round the table when economic decisions are made and the private sector when population health is discussed Michael Michael.wood@nhsconfed.org