Delivering Advantage. The West Midlands Economic Strategy and Action Plan invest work learn visit live

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1 Delivering Advantage The West Midlands Economic Strategy and Action Plan invest work learn visit live

2 2 Foreword Foreword Nick Paul, Chairman, Advantage West Midlands Bransby Thomas, Chair, West Midlands Regional Assembly The publication of Delivering Advantage is another milestone towards realising our Vision for the economic regeneration of the region and meeting the Government s aim of improving the sustainable economic performance of all the English regions. We have a strong base to build on. The first ten-year West Midlands Economic Strategy Creating Advantage, was produced in 1999 and was subsequently refocused by a three-year rolling Agenda for Action in A great deal has been achieved since 1999 with partners across the region working together to turn the West Midlands Economic Strategy from words into action. Across a range of activity, partners in the West Midlands are increasingly co-ordinating their strategies and working together within the framework of the West Midlands Regional Concordat. Delivering Advantage forms part of this co-ordinated regional approach, which is designed to ensure the alignment of a variety of strategic frameworks, including: the emerging Regional Planning Guidance; the Regional Housing Strategy; the Regional Sustainable Development Framework; the Regional Cultural Strategy; and the Framework for Regional Employment and Skills Action. In fact, one of the real successes for this region has been the way the Regional Assembly, Advantage West Midlands, the West Midlands Local Government Association and other partners have ensured that Delivering Advantage and the emerging Regional Planning Guidance pull in the same direction. Extensive consultation in the spring and summer of 2003 has shown that partners and partnerships in the region believe that the direction set out in Creating Advantage in 1999 remains valid today, and that there is a strong consensus to maintain it in Delivering Advantage. The consultation also highlighted a consensus to focus on delivery, and for ownership and responsibility for delivery to be shared by all partners. Partners also recognised that this is a regional strategy, with many challenges for the region to rise to. This necessitates tough choices about where effort and resources should be concentrated. This Strategy makes those tough choices, by focusing intervention through three key delivery mechanisms Regeneration Zones, Business Clusters and High Technology Corridors. The stakes are high. We estimate that nearly 100 billion of public sector resources will come into the region in the next five years. Of this sum around 20 billion is related to economic development. Within this figure 2 billion of Advantage West Midlands and European funding will achieve 160,000 new jobs, assist 64,000 businesses, provide 90,000 training places, bring 800 hectares of derelict land back into use and lever into deprived areas at least 400 million of private sector investment. We will work to ensure that as much funding as possible that comes into the West Midlands is aligned behind Delivering Advantage. The West Midlands has a great story to tell about partners working together to meet these challenges and to realise our shared Vision. Delivering Advantage sets out the next steps towards that Vision, and a robust framework within which the region can move forward on the basis of shared goals and clarity of purpose. Nick Paul, Chairman, Advantage West Midlands Bransby Thomas, Chair, West Midlands Regional Assembly

3 Contents 3 Foreword 2 Executive Summary 4 1. The West Midlands Vision for The Challenges the Region Faces The Strategic Approach Pillar 1 Developing a Diverse and 24 Dynamic Business Base The West Midlands 5. Pillar 2 Promoting a Learning and 28 Skilful Region 6. Pillar 3 Creating the Conditions 30 for Growth 7. Pillar 4 Regenerating Communities Providing a Powerful Voice for 36 the Region 9. Focusing Resources The Role for Partners Action Plan 52 Annex A Measuring Progress and Impact 68 Annex B Assessment of Progress on Sustainability 72 Annex C European and National Policy 74 and Strategy Developments Impacting on Delivering Advantage Annex D Linked Strategies and Associated Documents 76 Annex E National and Regional Priorities for 78 Transport Investment Annex F Three Key Delivery Mechanisms 80 Annex G Sub-Regional Economic Partnerships 84 and Strategies Annex H West Midlands Regional Concordat Partners 86 Annex I Glossary of Terms 88

4 4 Executive Summary Executive Summary Foreword Delivering Advantage, the West Midlands Economic Strategy for , sets out a Vision for transforming the West Midlands into a world-class region by This is an ambitious Vision and all of us in the region face great challenges to realise it. The Strategy builds on the original West Midlands Economic Strategy (Creating Advantage) published in 1999, and the subsequent Agenda for Action (2001). It focuses on the delivery of key actions involving a wide range of partners all of whom are fully committed to working together and meeting the challenges before them. We estimate that nearly 100 billion of public sector resources will come into the region over the next five years. Of this total, around 20 billion will relate to economic development, to be spent by partners across the region. Imagine for a moment what we could achieve if the 20 billion is fully lined up behind this Strategy. We already know exactly what 2 billion of Advantage West Midlands and European funding will achieve. It will create 160,000 new jobs. It will assist 64,000 West Midlands businesses. It will give our people 90,000 of the training places they need. It will bring 800 hectares of derelict land back into use, and benefit our deprived areas with at least 400 million of private sector investment. That s what 2 billion will do. Just think what 20 billion would do. It would realise our Vision. The following summarises Delivering Advantage from the Vision, through the Strategic Approach, the Key Delivery Mechanisms, the Roles for Partners, to the Action Plan. 1. The Vision for 2010 The West Midlands is already a great place in which to invest, work, learn, visit and live. It is a diverse region, in terms of its landscape, its people and its culture. The urban buzz of the UK s second largest city, Birmingham, contrasts with unspoiled countryside such as the Malvern Hills, the Wyre Forest, the Staffordshire Moorlands and the Shropshire and Herefordshire Marches. Smaller cities and towns play an important role in both the regional and the local economies, while market towns in the rural parts of the region are the focal point for their surrounding area. Cultural sites are dotted around the region: Ironbridge Gorge in Shropshire; Shakespeare s birthplace at Stratford-upon-Avon; Warwick, Kenilworth and Stokesay castles all display the region s rich history. In Birmingham, the Hippodrome theatre and Symphony Hall attract national and international performers while the NEC and NIA host world championship sporting events. The West Midlands has long been known as the manufacturing heartland of the UK and boasts globally recognised names like: Jaguar in Coventry; JCB at Uttoxeter; Bass at Burton upon Trent; Cadbury and MG Rover in Birmingham; the Caudwell Group in Stoke-on-Trent; Land Rover in Solihull; and Lea and Perrins in Worcester. However, traditional industries are now being complemented by emerging sectors such as media and medical technologies, fed by the 13 higher education institutions throughout the region. Now we must build on our proud past and realise our potential for the future. We have set our sights high and we are determined that the region will achieve its Vision for 2010 that The West Midlands is recognised as a world-class region in which to invest, work, learn, visit and live and the most successful in creating wealth to benefit all of its people.

5 Executive Summary 5 Invest: By 2010, the region will have a truly diverse and dynamic business base, differentiated from other regions by its ten Business Clusters. Manufacturing will be future-proofed through modernisation and diversification programmes and the region will once again be renowned for its innovative activity. High technology, value-added businesses will be attracted to invest in the region because of the ease of accessing finance and availability of incubator and grow-on space. Together with infrastructure improvements, this will ensure that companies want to come to and stay in a region providing an ideal business environment in which to flourish. Facilities such as Malvern Science Park (building on the world-class research undertaken at QinetiQ, the former Ministry of Defence establishment) and Birmingham International Airport will play a key role in this new business base. Work: By 2010, new and growing businesses in the region, across a range of industries, will provide an unrivalled choice of employment and career opportunities. Fewer people will be out of work and equal opportunity for all will be a reality. Graduates from the UK s universities will want to build their careers in the West Midlands because of the range of excellent opportunities open to them; this will expand the region s knowledge base. Trainers and business managers will equip their workforce with the skills needed for continued economic success. In particular there will be increased opportunities in the Black Country, North Staffordshire and Western Shropshire and Herefordshire. Learn: By 2010, students from all educational institutions, at whatever level, will be highly skilled, qualified and enthusiastic about going on to work in the region. Increased linkage between businesses and education will firmly embed entrepreneurship into the working culture and ensure that best practice is shared. The West Midlands will be recognised as a region that encourages and strives for lifelong learning; and that supports people in education throughout their lives and enables them to fulfil their potential. The quality of education on offer at every level will ensure that people want to learn in the West Midlands because it is a successful place to do so. Visit: By 2010, tourism will be recognised as one of the region s major economic drivers. There will be a wide range of the highest quality leisure and cultural experiences. The potential of renowned venues such as Stratford-upon-Avon, Warwick, Ironbridge and Alton Towers will be maximised; while the promotion of lesser known attractions, particularly our market towns and villages, will be developed. We will build on Birmingham s reputation for business tourism so that the West Midlands is the premier destination for business events in the UK. Our tourism offer will be underpinned by staff skills training that will ensure an excellent visitor experience, resulting in a significant increase in visitor numbers, spend and longer-staying visitors. Live: By 2010, the region s diversity, both geographic and cultural, will be recognised as providing a high quality, vibrant area in which to live. The variety of locations, from rural and semirural to suburban and urban, will offer our citizens a choice of living to match their preference. Our urban areas will have experienced notable economic, social and environmental improvements, resulting in more sustainable communities. The major challenges facing rural areas will be addressed by strengthening and diversifying local economies. Communities in all areas of the region will be involved in the decision-making process that affects their lives.

6 6 Executive Summary 2. The Challenges We Face as a Region Whilst the region s economy has performed reasonably over the last four years, its relative economic position within the UK and Europe remains static. Our task must be to work in partnership to address factors inhibiting growth, and to build upon those areas where the West Midlands outstrips other regions. There are 13 challenges we must overcome as a region in order to make this happen. These have been grouped under the four original headings (the Pillars) of the West Midlands Economic Strategy, plus a new one, as shown below: To develop a diverse and dynamic business base the challenges are: Enterprise to increase and sustain employment and productivity by developing a world-class enterprise culture; Manufacturing to carry out the modernisation and diversification essential in the manufacturing industry that forms the bedrock of our regional economy; Innovation to build on the innovative potential of companies through increasing and exploiting research and development, promoting creative talent and developing all aspects of an innovative and market-led culture; Environmental to ensure that economic development enhances and is enhanced by the environment; and Visitor Economy to develop our visitor economy as a powerful force for economic development and for regeneration in urban and rural economies. To promote a learning and skilful region the challenge is: Skills to raise the basic and higher level skills in the region, to sustain and attract investment, thus narrowing the gap with other regions and reducing differences within the region. To create the conditions for growth the challenges are: Transport to address the inadequacies of our transport infrastructure through partners developing innovative ways to create the sustainable, world-class transport system we need; Development Sites to ensure that Regional Planning Guidance is implemented, so that sites are made available to meet the needs of business or reused for other purposes; and Housing to link housing availability and quality to employment opportunities. To regenerate communities the challenges are: Economic Inclusion to recognise widening differences in economic performance and deprivation levels, to address this issue in areas of the region experiencing social exclusion and underperforming economies, especially North Staffordshire and the Black Country, and to ensure that everyone shares in created wealth; and Demography to ensure that changing demographic conditions in the region are used to benefit both employers and the workforce. To provide a powerful voice for the region (the new heading) the challenges are: International to take advantage of opportunities available in an international context (particularly from European Union Community Initiatives), whilst being aware of the competitive challenges these present; and Image to create a positive image of the region and to improve the way it markets itself to target audiences.

7 Executive Summary 7 The Priorities Five challenges have been given the highest priority, because we believe that they are the ones that if met will make the greatest difference to achieving the Vision. They are: The Enterprise Challenge because an enterprise culture is critical to a successful region. This must have a strong focus on young people, as they are crucial to the future prosperity of the region; The Manufacturing Challenge because manufacturing is vitally important to the region s economy yet is experiencing falling employment and low productivity. Modernisation and diversification are essential if we are to build upon our historical base and increase employment and productivity; The Skills Challenge because the region is failing to fully equip all of its people with the skills they require and to provide employers with the skilled workforce they need; The Transport Challenge because the transport system in the region is inadequate for our present economy, let alone the world-class economy we aspire to be. Partners in the region believe that the West Midlands will never achieve its potential unless this challenge is addressed; and The Economic Inclusion Challenge because differences in economic performance within the region are growing, and must be addressed so that all who live and work here share in the wealth created. 3. The Strategic Approach The approach in this updated Strategy has been shaped following widespread consultation with partners across the region. The consultation provided strong confirmation that the direction set out in Creating Advantage in 1999 remains valid. The region adopted the four main headings (or Pillars) as set out in Creating Advantage. These Pillars are a wellestablished regional tool and continue to provide the engine for Delivering Advantage. Partners have also agreed on the importance of Providing a Powerful Voice for the Region. It is vital that we bang the drum for the West Midlands loud and clear, communicating our aspirations to everyone within the region and engaging with and influencing decision makers in London and Brussels together with major players in the global economy. Together, the four Pillars and Powerful Voice chapters of the Strategy set out the way in which partners have created a clear, precise approach and formulated policy which specifically addresses the challenges we face. The Strategy has three key principles: a commitment to sustainable development; a commitment to equality, diversity and economic inclusion; and a commitment to ensure that this Strategy links with and underpins other strategies and policies which are delivering across the region. The Strategy is for the whole region, but a specific focus has been given to show how it delivers in the rural areas of the region. 4. Pillar 1 Developing a Diverse and Dynamic Business Base This Pillar drives modernisation and diversification of the region s businesses to ensure that the West Midlands experiences: flourishing enterprise; growth through innovation; use of new technology; and success within the global marketplace. To facilitate this, Pillar 1 demands that partners work together to improve our enterprise and manufacturing performance by providing better access to finance, developing the knowledge economy, increasing international engagement, and developing both our environmental economy and our visitor economy. Tailored solutions will be developed where they are required in particular for rural areas. 5. Pillar 2 Promoting a Learning and Skilful Region This Pillar drives the development of a highly skilled, innovative and adaptable workforce which attracts and supports the growth of high value jobs and wealth creating businesses. This will increase income levels across the workforce, and ensure that everyone has the relevant skills to take advantage of job opportunities whether in deprived parts of major urban areas, or remote rural communities. To facilitate this, Pillar 2 demands that partners tackle the basic skills gap by developing workforce skills, improving leadership and management skills, developing an enterprise and entrepreneurship culture and expanding higher level skills. 6. Pillar 3 Creating the Conditions for Growth This Pillar drives investment by private firms and individuals and the development of a world-class infrastructure. To facilitate this, Pillar 3 ensures that partners seek innovative ways to transform our transport system to ensure it provides access to opportunity in both urban and rural areas, develop a better ICT infrastructure, deliver good quality development sites and buildings, develop a housing agenda for economic growth and ensure sustainable use of natural resources.

8 8 Executive Summary 7. Pillar 4 Regenerating Communities This Pillar drives the actions to counter unemployment, poor skills, low income, poor housing, high crime rates, poor quality environment and all areas of economic inclusion. These actions will also exploit the opportunities within our communities, particularly responding to the changing demographics across the region. To facilitate this, partners will link opportunity to need, and develop capacity and sustainability for our communities. 8. Providing a Powerful Voice for the Region The region must develop a coherent approach to communicating its strengths, opportunities and needs, and to ensure that we are heard and understood both within and outside the West Midlands. To achieve this, partners must improve the region s image and marketing by creating an intelligence base to inform policy and also engage with partners in the UK and Europe together with major players in the wider international economy. Wolverhampton to Telford Corridor Established Transport technologies Building technologies Food and drink Tourism and leisure High value-added consumer products Specialist business and professional services Central Technology Belt Coventry, Solihull, Warwickshire Corridor Growing Information and communication technologies Environmental technologies Embryonic/Aspirational Screen and new media for education and entertainment Medical technologies Regeneration Zones High Technology Corridors Business Clusters 9. Key Delivery Mechanisms To ensure that the four Pillars drive the region s actions and responses effectively and with the greatest impact, Advantage West Midlands made the tough choice to focus its efforts on three agreed Key Delivery Mechanisms: Regeneration Zones; Business Clusters; and High Technology Corridors. These three are now the agreed focus for all partners. Regeneration Zones raise employment levels, increase business activity and improve the quality of life in the most deprived areas of the region by strengthening links between areas of need and areas of opportunity. We have one rural and five urban Regeneration Zones, which cut across administrative boundaries. Programmes in the Zones take a long-term approach of ten to fifteen years, but by 2010, over 80,000 jobs should be created through targeted funding. Business Clusters improve collaboration between companies in the same field, and improve access to new technologies, research and development, targeted business support and supply chains, and shared expertise. Ten Business Clusters are supported through Cluster Opportunity Groups led by the region s business people. By 2010, focused programmes should create or improve the performance of over 15,000 businesses. High Technology Corridors offer existing businesses opportunities to modernise and diversify, and attract and develop new high-tech, high value-added businesses using existing research institutions, the shared knowledge pool of our universities, and property opportunities such as incubator and grow-on space. Three High Technology Corridors are under development by sub-regional partnerships, and the projects already agreed should bring in over 20 million of private sector investment over the next seven years.

9 Executive Summary The Role for Partners Partnership is crucial to the delivery of this Strategy. Partnerships are co-ordinated through the Regional Concordat, a commitment overseen by the Regional Assembly. This co-ordination provides a framework for partnership working between all regional organisations and for the integration of regional strategies. Many organisations and sectors play key roles in delivering this Strategy. From village schools to our largest universities, from the smallest volunteer group to the Regional Assembly, from our most successful business people and entrepreneurs to those seeking to gain basic skills each and every one of us has a part to play. And, by working together - individuals and large organisations, government offices and private sector companies, students and employers - each and every one of us will benefit from the wealth created. We estimate that 100 billion of public sector resources will come into the region over the next five years around 20 billion directly for economic development. The West Midlands Economic Strategy, aligned with Regional Planning Guidance, provides the best strategic framework within which sustainable improvement to economic performance and quality of life can be achieved. It is vital that we work together to achieve synergy between funding streams and strategies. Our first objective is to ensure that the 20 billion is aligned behind this Strategy. Our second objective is to have more than that 20 billion supporting economic development. If we can fulfil these objectives we will be able to realise our Vision for Action Plan The Action Plan shows 45 actions agreed by partners to ensure delivery of the Strategy under the four Pillars and Powerful Voice for the Region. The actions set out the next steps over three years, and specify which regional partnership body or individual partner is taking responsibility for leading their implementation. The Action Plan also sets out how we will continuously evaluate actions and measure progress to ensure that partners shared efforts are making the difference we all want to see. 12. Getting the Job Done The West Midlands has a great story to tell. It s a story about partners working hard together to realise a shared Vision for the future. We who live and work in the region know that it is a great place to be. We also know that it has huge untapped potential. Delivering Advantage provides a robust framework and the engines needed to drive the region forward. By making tough choices, sharing goals and maintaining clarity of purpose, partners will fully utilise this region s great potential - and we will realise our Vision for 2010.

10 10 The West Midlands Vision for The West Midlands Vision for The West Midlands is recognised as a World Class region in which to invest, work, learn, visit and live and the most successful in creating wealth to benefit all of its people. This Vision for the region s economic strategy has been honed and refined by many suggestions and ideas raised during consultation events across the West Midlands. It is an ambitious Vision, which ensures that we set our sights high and do not settle for mediocrity. 1.2 A proud base to build from The West Midlands is already a great place in which to invest, work, learn, visit and live. It is a diverse region and has been described as a complex and beautiful mosaic. At its heart is Birmingham, our international city, which provides facilities and services for all of the region. Birmingham plays a key role for the network of towns and cities across the region and will continue to be developed as a major city of European and world standing. Our other towns and cities each play an important role in the region and in their respective sub-regions, and their centres are major drivers for local economies. Many, such as Stafford, Worcester and Warwick provide important links between urban and rural areas. In particular market towns in rural areas, like Leek, Evesham, Leominster and Oswestry, are the focal point for a wide surrounding area. Traditional manufacturing industries, like engineering, and service industries such as tourism are being supplemented by emerging industries, such as media and creative industries. Half a million people are in education at our 13 higher education institutions and 66 colleges of further education. The next sections look at the constituent parts of the Vision, and set out a view of how the region might look in 2010 if good progress is made. The region s globally renowned names, industries and attractions reflect the diversity of our towns and cities: Jaguar (Coventry); Land Rover (Solihull); JCB (Uttoxeter); Bass (Burton-upon-Trent); Muller Yoghurts (Market Drayton); Tarmac (Wolverhampton); the Caudwell Group (Stoke-on- Trent); Cadbury and MG Rover (Birmingham); the Royal Shakespeare Company (Stratford-upon-Avon); and Lea and Perrins (Worcester). The region is responsible for over a quarter of all UK exports. More than half of the new patents registered in the UK come from the West Midlands.

11 The West Midlands Vision for Invest West Midlands By 2010, the region will boast a truly diverse and integrated business base. Built on the best of the West Midlands industrial heritage, it will be future-proofed through programmes of modernisation and diversification, and underpinned by an unrivalled innovation culture. Ten Business Clusters will play a key role in the region s economy and differentiate the West Midlands from other regions. Private sector businesses will enjoy the bottom-line benefits of being part of these clusters. They will be aware that our transport, ICT and property infrastructure is improving and will be able to see how that infrastructure is, or soon will be, effectively supporting their business needs. There will be appropriate sources of finance available to them and they will have confidence in the support available to help them grow. The region s three High Technology Corridors will help to make the West Midlands a preferred location worldwide for technology-led and high value-added businesses attracted by the prospect of high returns on investment. Provision and facilities such as Malvern Science Park (building on the world-class research undertaken at QinetiQ, the former Ministry of Defence establishment) and Birmingham International Airport will assist these businesses. Companies will invest here because they are confident of success. The region will be on the way towards having a fully integrated transport infrastructure both within and through the West Midlands. Rail delays will have been reduced following track and station improvements and passenger numbers will be increasing. Improved public transport networks in both urban and remote rural areas will mean better access to opportunity for those seeking work. An expanded and truly international airport in Birmingham will be playing its part.

12 12 The West Midlands Vision for Work West Midlands By 2010, new and growing businesses across wide a range of industries will provide an unrivalled choice of job opportunities and career progression. The gap between successful businesses and those at a lower level of achievement will have narrowed for all parts of the economy. Social enterprises will flourish and become more effective as businesses and employers. Diversification of the rural economy will be bringing greater opportunity for all, and market towns will be showing strong signs of renaissance. Farmers will have responded positively to Common Agricultural Policy (CAP) reforms and will have also responded to encouragement to fully explore the potential for growing non-food crops for energy, industrial and pharmaceutical uses. The region s knowledge base and creative talent will have expanded as more graduates from the UK s universities and colleges have taken their first jobs here, in response to the range of opportunities and future prospects available in the region. In particular there will be a wider range of opportunities in the Black Country, North Staffordshire and Western Shropshire and Herefordshire. Trainers and business managers, working together, will be equipping the existing and future workforce with the skills they need to fuel continued economic success. Manufacturing output will have increased, fewer people will be out of work, equal opportunity for all will be a reality and the quality of jobs will be improved. Employment stability will mean that people want to work here. All employers will recognise, and be taking advantage of, the increased numbers of older people with a wide range of skills and experience. Young people, especially those from ethnic minorities, will provide new impetus for the potential workforce, as their skills and perspectives are integrated into all sections of business. 1.5 Learn West Midlands By 2010, schools will produce highly qualified and motivated students and the gap between poorly performing schools and those implementing nationally recognised, successful pilot projects will steadily close as tried and tested education projects are rolled out across the region. An ongoing hearts and minds campaign by schools, higher and further education institutions and business will enthuse a new workforce to the benefits of working in West Midlands businesses. Students with high aspirations will value the acquisition of transferable skills and the wide range of revitalised manufacturing industries and entrepreneurial businesses ready and waiting to employ them. By 2010, our universities and other higher education institutions will fulfil their roles effectively and efficiently. Those with world-class faculties and departments will work alongside specialist teaching universities to ensure that local students receive the best education possible. Meanwhile our colleges and schools will successfully support the provision of skills demanded by the region s ten Business Clusters. Universities, colleges and schools will utilise advice and experience from the business sector as all elements join together to work in partnership. Many of our educational institutions will have collaborative ventures with business. The region will be attracting high numbers of young entrepreneurs students who establish and grow their own businesses with the support of regional venture capital. The West Midlands will be recognised for an approach to lifelong learning where schools, colleges, universities and employers work together to support our people throughout their lives, and assist everyone to reach their full potential. People will choose to learn in this exciting and successful region.

13 The West Midlands Vision for Visit West Midlands By 2010, tourism will be recognised as one of the region s major economic drivers, seen as adding real value to the regional economy. We will have developed our tourism products and services, and involved our unique multi-cultural society, to provide high quality tourism, leisure and cultural facilities and services. Nationally and internationally the region will be seen as culturally distinctive and tourist friendly. Our accommodation will be of high quality, our retail outlets excellent and the region will be perceived as an exciting, safe, sophisticated place to visit. Investment in our internationally recognised destination brands, such as: Stratford-upon-Avon and Warwick; the World Heritage Site at Ironbridge; Alton Towers in Staffordshire; the Cotswolds; and the international city of Birmingham with its vibrant night life, regenerated canals, conference and sporting facilities, will attract tens of thousands of additional leisure visitors from across the globe. We will benefit from investment in, and the marketing of: new leading brands; the leisure value of our cities (Birmingham, Wolverhampton, Worcester, Hereford, Coventry, Stoke-on-Trent and others); and our countryside, industrial and market towns and villages in the Shires. The basis for this offer will be a high quality environment with an exciting range of visitor activities and opportunities for informal recreation. In business tourism we will be regarded as the premier region for business events in the UK building on the position of Birmingham and its NEC group facilities as an internationally recognised centre of excellence. The region will have learned how to present itself expertly as a leisure destination to a wide-ranging market in the full knowledge of what it has to offer. Visitor numbers will be up as more and more business people extend their stay or return for leisure trips, and family and friends visit frequently to enjoy our facilities. Through a comprehensive programme of specialist business advice services and training for employees in the catering and hospitality industries delivered by the innovative Quality at Heart initiative, the West Midlands will become the first region in the UK to establish a regional quality mark for service excellence. People will want to come here because it s an exciting, interesting place to be. 1.7 Live West Midlands By 2010, the West Midlands will be catering for all tastes and lifestyles. The region will have developed further its world-class art collections, theatre companies and orchestras. A truly multicultural, ethnically diverse society will bring vibrancy and dynamism to life across the region as different ethnic and social groups utilise their skills and contribute to and share the wealth of the region. Our rich geographical diversity, from unspoilt, remote countryside (like the Shropshire Hills), thriving and well-designed towns and cities and the internationally recognised city of Birmingham will give the region unique strengths. This wide variety of locations, from rural and semi-rural to suburban and urban, will offer our citizens a valuable choice of locations for living, whether they prefer village, market town or city life. Major urban areas will have experienced substantial economic, social and environmental improvements, resulting in more sustainable communities. Rejuvenated city, town and local centres throughout the region will offer their communities high quality services and promote social cohesion. The major challenges facing rural areas and their traditional roles will be addressed through the strengthening of local economies. Agriculture will still be an important facet of rural economies, with farmers dealing directly with specialist markets and fulfilling their roles effectively as protectors and enhancers of environmental assets. New housing and wide-ranging community facilities will have been developed to meet local needs in rural areas, and all communities, whether urban or rural, will be taking part in the decision-making processes that affect lives. The region will be recognised for its outstanding quality of life and opportunities. 1.8 Conclusion Having set out where the region wants to be by 2010 we need to identify what needs to be done to get there. This requires an understanding of where we are now. Chapter 2 looks at the region s economy and identifies the key challenges the region faces and needs to respond to if we are to achieve our Vision.

14 14 The Challenges the Region Faces 2. The Challenges the Region Faces 2.1 Introduction To realise our Vision requires us to work together to a shared agenda. What are the challenges all partners in the region face? This chapter analyses the region s economy and identifies the key challenges that must be overcome to achieve all elements of the Vision. The challenges do not stand in isolation and therefore are grouped and linked here under the four headings (the Pillars) the region has used to develop its Economic Strategy over the last four years, plus a new one as shown below. The West Midlands economy has performed reasonably over the last four years, but our relative position in the UK and the EU has not changed. This is not good enough. Projections suggest that without the intervention of this Strategy, the West Midlands will remain static: The region will perform at or close to the UK average in Gross Value Added (GVA) and employment terms, resulting in relatively little net employment creation in the region; and Unemployment is expected to rise. Our challenge is to work in partnership to remove obstacles to growth and build on successful areas to raise the growth rate of GVA per capita above the national average thus placing the region significantly higher up the European league table and ensuring that it is recognised as world class. 2.2 Challenges for Developing a Diverse and Dynamic Business Base The Enterprise Challenge The region is ranked only fifth in the UK in respect of business start-ups, and self-employment is below national average. This overall regional performance obscures important differences within the region, where rural areas in particular experience higher levels of self-employment and business start ups, but lower wage levels; Currently many businesses of all sizes have no idea what is on offer in terms of support and have no relationship with the complex pattern of business support agencies available to them; There are significant gaps in access to finance for business start-up, growth, restructuring and transition for the range of businesses from the very small to those in the middle market; and Our challenge is to work together to create an enterprise culture that looks outward to current and potential markets. The Manufacturing Challenge The West Midlands is the heart of UK manufacturing. Manufacturing makes a larger contribution to our economy than it does in any other UK region. Over 20% of West Midlanders in employment work in the manufacturing sector, compared with just over 15% nationally. It is also fundamental to the culture and social fabric of many areas; However, employment continues to decline in manufacturing, especially in low value-added sectors, and sectors facing low-cost overseas competition or overcapacity in international markets. On average, productivity rates in our manufacturing sector are low by UK standards and even further behind many European countries; and Our challenge with manufacturing is to ensure that low value-added sectors modernise and move up the value chain and the region as a whole must diversify into more high-technology based activity.

15 The Challenges the Region Faces 15 The Innovation Challenge The region has a strong heritage of innovation, and a well-developed support network for companies. The West Midlands is at the top of the league of innovating regions, with 52% of companies reporting innovative activity; 1 However, we lag well behind London, the South East and the East in terms of research and development in business, government and higher education; and Our challenge is to build on our companies innovative potential by working together to increase and exploit research and development, promoting creative talent and developing an innovative and market-led culture. Success will be measured by further improvement in the number of businesses which successfully innovate. The Environmental Challenge Our environmental economy is large and diverse. We estimate it employs more than 90,000 people in the private, public and voluntary sectors; Increased environmental performance has proved cost effective for business; A high quality environment is vital for tourism development, inward investment and overall quality of life; and The Visitor Economy Challenge The region has a robust, diverse visitor economy which provides a valuable springboard for growth. The business tourism market is strong and we have a wide range of internationally and nationally recognised leisure tourism attractions. Opportunities abound to provide diverse cultural experiences: 32,000 listed buildings; many historic houses and parks; major sporting facilities; and a wide-ranging rural tourism product, including many attractive market towns; The visitor economy has been growing strongly in the region with a net growth of 23,000 jobs from 1995 to In 2002 the visitor economy generated over 6 billion for the region; The visitor economy comprises 28,000 businesses, most of them small. The challenge for these businesses is to improve the quality of their product and their marketing, and to address weaknesses in the skills of the workforce to meet sophisticated market needs; and Our challenge is, through partnership, to develop our visitor economy as a powerful force for economic development and for regeneration in urban and rural economies. Success will be measured by increased visitor numbers, spend and length of stay in the region. Our challenge is to work together to utilise available opportunities to ensure that economic development enhances, and is in turn enhanced by, the environment. 1 European Commission Community Innovation Survey Innovative Activity.

16 16 The Challenges the Region Faces 2.3 Challenges for Promoting a Learning and Skilful Region The region is failing to provide appropriate skills for its people. It has persistently been at the bottom of the national table on basic skills 12% of the workforce have no qualifications at all, with particular problems in parts of Stoke-on-Trent, the Black Country, Birmingham, North Solihull, and Coventry (i.e. virtually every urban area in the region); the West Midlands has consistently been ranked as the lowest achieving English region in terms of NVQ level 2 qualifications; Skills levels are low just as a changing economic structure is accelerating the need for adaptation and improvement. Major skills gaps in management development and leadership have been identified across all sectors private, public and voluntary of the regional economy; The performance of the education system and young people s qualification levels vary widely across the region. The overall percentage of our young people gaining five good GCSEs, 48% (2002), is lower than the national average of 52%; Only 28% of our young people move on to higher education. The national target is 50% by Fewer than half of first degree graduates entering employment from our 13 higher education institutions remain in the West Midlands; and Our challenge is for all partners to address these significant weaknesses, to narrow the gap with other regions, to reduce differences within the region, and, having trained employees, to encourage them to stay in the region rather than lose their skills. 2.4 Challenges for Creating the Conditions for Growth The Transport Challenge Despite a pivotal position in the national network providing significant location advantages, inadequacies in the region s transport infrastructure have a major negative impact on the regional economy, and adversely affect the choices people make about where to live and work; Traffic congestion is a fact of daily life in all main urban areas, with conditions throughout the day increasingly reflecting those of peak hours, a situation exacerbated by inadequate public transport. Congestion in the West Midlands motorway box (M6/M42 and M5) is now a national issue with extensive delays increasingly commonplace; Accessibility to, and within, rural parts of the region, especially the west, is poor; Birmingham New Street Station is constrained by line and platform capacity and there are capacity constraints on the West Coast Main Line, particularly the two-track line between Coventry, Birmingham and Wolverhampton; and Our challenge is, through close and energetic partnership, to find innovative solutions, and create a safe, sustainable, world-class transport system which supports our regional economy. The Development Sites Challenge Only 39% of the region s land stock for future employment use is currently available to companies and there are significant gaps in the availability of large sites across the region; Almost half of the region s employment land has remained undeveloped for more than five years; and Our challenge is to ensure that Regional Planning Guidance is implemented and sites are made available to meet the needs of business and to increase investment. The Housing Challenge Changing household needs and sizes require adjustment to housing stock to provide a full range of housing choice across the region. Parts of the region currently have poorly performing markets leading to migration, particularly in parts of Birmingham, the Black Country and Stoke-on-Trent; Some housing stock now fails to link with employment opportunities, and there is a shortage of affordable housing, particularly in the rural west and south east of the region; and Our challenge is to work together to link housing quality and availability to employment opportunities.

17 The Challenges the Region Faces Challenges for Regenerating Communities The Economic Inclusion Challenge The West Midlands is a region of contrasts with huge variations in affluence between communities, each requiring a specific approach; Of the region s 789 wards, 69 (19% of the region s population) are within the most deprived 10% in England; Parts of Warwickshire, Coventry, Solihull and Birmingham have seen rapid growth in development, activity and productivity. The majority of the rest of the region has also enjoyed some growth, but North Staffordshire and the Black Country have lagged significantly behind; Rural areas have experienced declining agricultural employment. While there has been some growth in employment in services, there remains a lack of sufficient variety and quantity of jobs or affordable housing to retain young people; Sub-regional variations and trends are forecast to continue with the Black Country and North Staffordshire experiencing relatively low levels of productivity growth. The centre and south east of the region are expected to experience the greatest productivity improvement; Alongside spatial diversity there is also diversity within communities. Some 10% of our population are members of Black and Minority Ethnic (BME) communities and over 50% of the population of some wards belong to BME groups. Ethnic minority groups are over-represented within the most deprived areas, and employment in some minority ethnic communities, for example within the Black Country, is often concentrated in traditional manufacturing industries. This gives the manufacturing challenge a specific ethnic dimension; The Demographic Challenge Changes in the region s population over the next few years will impact hugely on the employment base and may lead to growth in our Clusters being stalled by a lack of skilled employees; By 2010 more than half our workforce will be aged over 50. Without educating employers on the potential offered by older workers, there will be large numbers of experienced, skilled people who are not working; Forecasts anticipate that within Birmingham and the Black Country, growth in the BME population will change both the overall age profile of the workforce and the perceptions and requirements of all sectors of local economies. This Strategy must ensure that recruitment and training policies meet this changed demographic profile; The number of refugees in the West Midlands (those having been granted permission to remain) is estimated to be around 50,000. This number is set to increase over the next few years, providing both opportunities for employers to take advantage of a pool of highly skilled workers and challenges for statutory agencies and others engaged in community regeneration; and Our challenge is for all partners to fully embrace these demographic trends, and work together to ensure that they are utilised to benefit our employers and our workforce. Inequality is also reflected in the housing market. For example Asian households are under-represented in local authority and Registered Social Landlord (RSL) housing and over-represented in the poor quality end of the owner-occupied sector. Also prices in some areas have risen to levels that exclude younger and less affluent buyers and renters; and Our challenge is to ensure that all parts of the region benefit from overall economic performance. We will accomplish this by working together to address social exclusion and under-performing economies, particularly in areas such as North Staffordshire, the Black Country and Birmingham where flagship regeneration is already being translated into sustainable neighbourhood renewal.

18 18 The Challenges the Region Faces 2.6 Challenges for Providing a Powerful Voice for the Region The International Challenge The enlargement of the European Union in 2004 will create the largest single market on the globe. This will provide opportunities for commerce, investment, student and worker mobility, cultural exchange and knowledge transfer. It also brings the challenge of new competition; The European Cohesion agenda post-2006 may lead to the loss of substantial resources currently provided by the European Commission to support our region s economic regeneration; The review of the Common Agricultural Policy will have a major impact on our agricultural businesses and the entire rural economy; and Our challenge is to take advantage of the opportunities available in an international context (particularly from the European Union Community Initiatives), while remaining aware of and primed to enter international competition. The Image Challenge Key audiences lack awareness of what the West Midlands is and what it has to offer. Their decisions, which reflect this lack of awareness, have a material impact on the health of our economy. These key audiences include the West Midlands own population; The region has no fully developed, outward-looking, international approach and often fails to recognise and understand the ever-changing global context in which it operates; We have not always broadcast the successful physical transformation of many parts of the West Midlands; The availability of data to inform policy development is currently inconsistent. There is no clear single source for accessing data, nor for understanding and interpreting it; and Our challenge is to create a positive image for the region and, by working together, to improve the way it markets itself to target audiences.

19 The Challenges the Region Faces Conclusion This chapter illustrates both the complexity of the challenges the West Midlands faces and the co-ordinated response required to meet them. Some challenges have a greater impact on achieving the Vision than others, and these have been given the highest priority. They are: The Enterprise Challenge because an enterprise culture is critical to a successful region. This must have a strong focus on young people as they are crucial to the future prosperity of the region; The Manufacturing Challenge because manufacturing is vitally important to the region s economy yet is experiencing falling employment and low productivity. Modernisation and diversification are essential if we are to build upon our historical base and increase employment and productivity; Meeting these challenges will realise our Vision. Annex A sets a series of indicators that over time will enable us to know how well the challenges are being met and therefore the progress being made towards realising the Vision. The next chapter sets out the overall strategic approach the region is taking to meet these challenges and the part which the highest priority challenges will play at the forefront of this approach. It is also important to understand that the timescales for meeting challenges is not always equal, for example meeting the transport challenge is a long-term project. Hence this Strategy sets out both the long-term approach together with what can be achieved in the short term. We must act now. Simply sitting and waiting until everything is working is not an option. By working together partners can and will meet and overcome the challenges facing the region. The Skills Challenge because the region is failing to fully equip all of its people with the skills they require and to provide employers with the skilled workforce they need; The Transport Challenge because the transport system in the region is inadequate for our present economy, let alone the world-class economy we aspire to be. Partners in the region believe that the West Midlands will never achieve its potential unless this challenge is addressed; and The Economic Inclusion Challenge because differences in economic performance within the region are growing, and must be addressed so that all who live and work here share in the wealth created.

20 20 The Strategic Approach 3. The Strategic Approach 3.1 Introduction As a region we have a number of challenges to overcome if we are to achieve our ambitious Vision for These challenges are not new, and work undertaken in the preparation of this Strategy has confirmed that the strategy set out in Creating Advantage remains relevant four years on. The challenges are about long-term structural change in the economy and the delivery vehicles identified in Creating Advantage need time to bed down and have the planned impact. The region must hold its nerve and keep on the same track. Therefore, what is required is an updated Strategy focused on delivery. Delivery requires partners across the region to tackle the 13 challenges identified in chapter 2. These are grouped under four Pillar headings carried forward from Creating Advantage (Developing a Diverse and Dynamic Business Base, Promoting a Learning and Skilful Region, Creating the Conditions for Growth and Regenerating Communities) together with a new theme that cuts right across the Strategy: Providing a Powerful Voice for the Region. These core headings structure the policy response to the challenges, as detailed later in chapters 4 to 8. Our focus on delivery and the proposed structure has been confirmed by: Revisiting regional analysis which indicated improvement in economic performance but no change relative to other UK regions (see section 2.1 and for further information a summary paper is available at A consultation exercise involving 87 meetings with partners and partnerships, plus written responses to a consultation document from 112 organisations and individuals (the results of this consultation can be seen at Testing the Strategy against the principles of the Regional Concordat which define the way in which the region will progress through partnership working (the Regional Concordat can be found at and Appraising the Strategy against key policy perspectives, including: sustainable development (see section 3.4); rural renaissance (see section 3.6); and health (undertaken by the Government Office for the West Midlands). 3.2 The Structure The region adopted four Pillars as the basis for Creating Advantage in These are well known and understood and provide the framework for Delivering Advantage. Partners have also agreed on the importance of Providing a Powerful Voice for the Region to support the messages of this Strategy (see Figure 1). These Pillars do not stand in isolation the themes within and across them provide an overall integrated approach, and linkages are clearly identified throughout the Strategy.

21 The Strategic Approach 21 Figure 1 Delivering Advantage a diagrammatic summary of the strategic approach The West Midlands is recognised as a world-class region in which to invest, work, learn, visit and live and the most successful in creating wealth to benefit all of its people. Pillar 1: Developing a Diverse and Dynamic Business Base Pillar 2: Promoting a Learning and Skilful Region Pillar 3: Creating the Conditions for Growth Pillar 4: Regenerating Communities Pillar 1 Themes Pillar 2 Themes Pillar 3 Themes Pillar 4 Themes 1. Improving our enterprise performance 2. Modernising our manufacturing base 3. Providing better access to finance 4. Developing the knowledge economy 5. Increasing international engagement 6. Developing an environmental economy 1. Tackling the basic skills gap 2. Developing workforce skills 3. Improving leadership and management skills 4. Developing an enterprise and entrepreneurship culture 5. Expanding higher level skills 1. Improving our transport system 2. Developing a better ICT infrastructure 3. Delivering good quality sites and buildings 4. Delivering a housing agenda for economic growth 5. Sustainable use of natural resources 1. Linking opportunity to need 2. Building the capacity of our communities 3. Developing sustainable communities 7. Developing the visitor economy A Powerful Voice for the Region Themes 1. Improving our image and marketing the region 2. Creating an intelligence base for policy 3. Engaging with UK partners 4. Engaging with European partners

22 22 The Strategic Approach 3.3 Principles The West Midlands Economic Strategy is underpinned by a number of principles. These exemplify the Strategy s role in providing a lead and offering guidance to enable partners across the region to promote sustainable economic development that benefits all: A commitment to sustainable development to ensure that the Strategy contributes to long-term improvements in the quality of life in the region; This appraisal shows that throughout the Strategy, there are policies and actions that address in positive ways virtually all the elements of sustainable development for example within Pillar 1 there is a specific focus on links between the environment and the economy; in Pillar 4 the focus is on economic and social links. The appraisal also provides the basis for a future work programme to develop policies in those areas which are least well developed. Figure 2 Sustainability Appraisal of Delivering Advantage A commitment to equality, diversity and economic inclusion to ensure that the Strategy contributes to providing appropriate access to opportunities and values the region s diversity; and A commitment to link to other strategies and policies to ensure that the Strategy adds value to the region by helping to align activities and ensure consistency of approach. 3.4 Sustainable Development The UK Strategy for Sustainable Development is the Government s framework for sustainable development. Its four objectives provide the basis for measuring how this Strategy impacts upon the quality of life for everyone. These are: Maintenance of high and stable levels of economic growth and employment; Social progress which recognises the needs of everyone; Effective protection and enhancement of the environment; and Prudent use of natural resources. The policies and actions within Delivering Advantage have been worked up on the basis of understanding their contribution towards sustainable development including how they contribute and link to other regional strategies which are also committed to a sustainable development approach. An independent assessment has been undertaken to test this. It shows that considerable progress has been made in integrating these four themes since the development of the region s original Strategy Creating Advantage. See Annex B for an assessment of the progress made. Figure 2 shows how Delivering Advantage fares against the Government s four objectives. The Sustainable Project Appraisal Routine diagram (SPeAR), is based on a fourquadrant model structuring the issues of sustainability into a robust framework, from which an appraisal of performance can be undertaken. The nearer the centre a shaded area appears, the nearer it is to be being seen as the optimum sustainability position. To ensure that Delivering Advantage really does deliver on sustainable development, partners must embed the principles of sustainable development into policy development, appraisal and delivery. The Regional Sustainable Development Framework is to be updated and published through Sustainability West Midlands in This will set down the overall principles of the region s approach and provide guidance on how to apply those principles and measure their impact thus it will become the guiding manual for partners committed to Delivering Advantage. 3.5 Equality, Diversity and Inclusion A commitment to equality, diversity and inclusion provides the basis for partners to ensure that opportunities created by a modernising and diversifying economy are genuinely accessible to all. This requires co-ordinated action. Policy development must include an assessment of its impact on equality. The Regional Concordat commitment to social inclusion calls for partners to commit to work to achieve equality of access and opportunity in all aspects of life for all the region s inhabitants. All partners involved in delivery need to sign up to this commitment and understand how their actions can contribute.

23 The Strategic Approach 23 The development of Delivering Advantage has been influenced by the recognition that the West Midlands has a greater diversity of cultures and languages than anywhere outside London. This diversity is a great strength and it is the task of all partners to utilise it for the benefit of the region as a whole. Therefore, throughout the Strategy there are policies and activities which build from this base. Regeneration Zones are an example of such commitment in action. Here action is targeted to raise employments levels, increase business activity and improve the quality of life for many of the most socially deprived sectors of our region. The Enterprise Framework (see chapter 4) includes a clear focus on developing enterprise within disadvantaged communities and taking advantage of the strength offered by minority ethnic businesses. The West Midlands Economic Strategy Equality, Diversity and Inclusion Statement (see which will be owned by the Regional Assembly Social Inclusion Policy Partnership, will set out in a clear way all the commitments made within this Strategy, so they can be delivered in a coherent way, and their success monitored by regional partners. 3.6 Towards a Rural Renaissance Delivering Advantage is a strategy for the whole region, but its delivery will need to address the specific needs of the rural economy, rural businesses and rural communities. The natural links between rural and urban areas lead to supporting an overall regional approach all elements of Delivering Advantage and the associated documents have significant rural components. An accompanying Rural Renaissance Statement is being produced that sets down clearly how the region s approach to rural issues will be achieved through a co-ordinated approach. This statement will be owned by the Regional Rural Affairs Forum. Chapter 2 has identified where there is a rural dimension to the challenges, particularly the specific requirements for modernising and diversifying the rural economy. The rural economy has low wages, seasonal or part-time employment and over-dependency on employment in certain traditional sectors (especially land-based activity). However, with the exception of this and financial services, the rural economy mirrors in structure that of the rest of the region, with manufacturing accounting for over 20% of employment. This Strategy shows the policy choices that will be required to address these challenges. For instance, diversification of the region s rural economy will be a key feature of the business development agenda. The challenges of relatively poor wages, regeneration of the remoter rural areas, infrastructure support and poor accessibility are also addressed within the appropriate parts of the Strategy The Rural Renaissance Statement brings these all together to provide a clear agenda to move forward the region s approach to the delivery of rural policies and actions. 3.7 Strategy and Policy Linkages This Strategy is shaped by European and national policies and strategies as well as other regional strategies. The European and national context is given in Annex C. Regional strategy documents are discussed below. 3.8 Regional Strategies Alignment with Regional Planning Guidance (RPG) is critical to the delivery of this Strategy, and provides its longer-term planning and land use framework. Delivering Advantage therefore encompasses the key planks of the emerging RPG: the renaissance of major urban areas is supported by this Strategy s policies and actions, and draft Regional Transport Strategy incorporated into the emerging RPG forms the basis for its transport policy. In turn, the emerging RPG identifies and embeds crucial aspects of this Strategy (e.g. Regeneration Zones). Other regional strategies impacting upon this Strategy include: The Regional Housing Strategy; The Regional Cultural Strategy (Cultural Life in the West Midlands); The Framework for Regional Employment and Skills Action; The Regional Sustainable Development Framework (in development); and The West Midlands Regional Delivery Plan the response to the Strategy for Sustainable Farming and Food. These strategies help to shape the Pillars and the Action Plan, but Delivering Advantage does not attempt to replicate their ownership and delivery. So, for example, the Regional Cultural Strategy is owned by West Midlands Life as one of the Concordat partners. The Action Plan in this Strategy therefore reflects relevant actions identified in the Regional Cultural Strategy. Annex D provides more detail on regional strategies. 3.9 Associated documents A number of associated documents have been developed directly within the framework of this Strategy. These are, of necessity, more detailed than the Strategy and often contain elements of all four of its Pillars and Providing a Powerful Voice for the Region (see Annex D for the details of these documents). These documents are developed and owned by regional partnerships Conclusion This chapter has set out the overall strategic approach and principles for the Strategy. The next five chapters take this approach and principles and set down the regional policy response.

24 24 Pillar 1 - Developing a Diverse and Dynamic Business Base 4. Pillar 1 - Developing a Diverse and Dynamic Business Base 4.1 Overall Aim This Pillar drives forward the modernisation and diversification of the region s businesses to ensure: flourishing enterprise; growth through innovation; utilisation of environmental and cutting-edge technologies; and success within the global marketplace. The West Midlands will then take its position as a leading region renowned for world class businesses and a high number of quality jobs for its people. 4.2 Improving our Enterprise Performance A supportive enterprise culture is critical for the region to improve its economic performance, realise its Vision and deliver a modernised business base. An Enterprise Framework has been developed to shape the co-ordination and direction of enterprise support activities over the medium to long term. For the first time this will allow partners to focus their interventions around a common set of objectives and targets. This approach will ensure that added value accrues from all enterprise interventions undertaken across the region. The West Midlands is already serviced by a wide variety of programmes, policy priorities and interventions designed to stimulate enterprise in its widest sense, such as those listed in the following sections. The Enterprise Framework shapes and co-ordinates this activity. The starting point for developing the Framework has been a national review of business support, leading to the West Midlands implementing pilot arrangements for the co-ordination of business support at a local level, through using the six Business Links operators in the region as the main route to market. This joined-up approach is focused on meeting the challenge of businesses being uncertain about the many different support services on offer. The Enterprise Framework has four objectives, developed through widespread consultation with partners: To stimulate and develop an enterprise culture in the region; To improve the competitiveness of the existing West Midlands enterprise base; and To encourage and develop enterprise in our disadvantaged communities. These will work together to ensure that support mechanisms are in place to: Raise the number of individuals entering self-employment in the region; and Ensure that existing enterprises access the skills, finance, technology, premises and support required to increase their productivity and competitiveness in the market place. The Enterprise Framework provides the structure to shape activity, and regional groups will lead on actions for delivery against themes within the framework (see the Action Plan - chapter 11). All parts of the Framework need to be delivered and that requires a body with overall responsibility for its delivery. This will be achieved through the establishment of a dynamic, responsive Enterprise Board. The Enterprise Board will, through its direct connections with the business base, advise Advantage West Midland s Board on the type and nature of intervention required to ensure that individuals and organisations access the support they require in order to start, develop and sustain successful enterprises across the region. To encourage the development of a dynamic enterprise start-up environment;

25 Pillar 1 - Developing a Diverse and Dynamic Business Base Modernising our Manufacturing Base The region was shaken out of any complacency, and started to act with a greater coherence in respect of manufacturing, as a result of the potential loss of Rover car production at Longbridge (and the consequent effects on the supply chain) in The Rover Task Force provided a clear focus on the need to both modernise and diversify the region s economic base. That means, for manufacturing, moving the existing base into higher added-value activities; looking to develop new, high added-value activities; increasing the region s employment and output in existing areas that can continue to grow. These three categories form the basis of the choice of the Business Clusters as one of our three Key Delivery Mechanisms (see section 9.3). The regional approach to supporting its manufacturing base is led by the Beacon Manufacturing Group of regional partners, supported by the Manufacturing Foundation, which undertakes detailed research and analysis of manufacturing issues. 4.4 Providing Better Access to Finance There are significant gaps in access to finance for business start-up, growth and transition, both on the demand and the supply side. Failure to access appropriate finance influences the relatively low level of business start-ups and constrains established businesses. Simultaneously the issue of businesses being investment ready and understanding the requirements of them from potential funders must be addressed. The Regional Finance Forum has agreed and is implementing a Regional Access to Finance Framework. Funds and schemes are addressing the key gaps identified. Our goal is a fully integrated escalator of financial support for business and assistance for businesses to access that support. As an example of looking at innovative solutions, the possibility of a Regional Local Business Exchange (LBX) is currently under consideration. The project will evolve over five phases: feasibility; project planning; project management; delivery; and operation. The project is currently at phase two, project planning, and a plan for developing the LBX is being produced. Initial feasibility work has established a market need for a range of Stock Exchange functions currently unavailable, to provide help for small and medium-sized enterprises (SMEs) in the region seeking to raise equity of between 0.5 million and 5 million.

26 26 Pillar 1 - Developing a Diverse and Dynamic Business Base 4.5 Developing the Knowledge Economy Analysis shows that the West Midlands already has a relatively strong position in terms of the aggregate number of companies which are innovation active, but data also identifies investment in research and development and new product development as remaining low, creating a long-term weakness in the system. Knowledge plays a key role in the development of a vibrant, future-focused economy. This can mean the use of cuttingedge technologies and support for targeted research and development, but for many companies it involves more effective use of established technologies to create step change in their performance and competitiveness. Support is needed within companies of all sizes to ensure that knowledge transferred makes the greatest possible impact on the companies mainstream business. Knowledge also means ensuring that companies have effective access to market intelligence to enable them to develop marketing and sales strategies. This remains a serious weakness in the innovation process. New and appropriate capital investment in the region is vital. The improvement of process by innovative capital equipment application is fundamental to building and maintaining the competitive position of our companies. A clear regional approach alongside existing funding mechanisms is essential. The potential wealth generation effect of specialist knowledged based activity requires a co-ordinated regional approach. Other regions have used Science and Industry Councils. This concept requires modification for West Midlands conditions to generate an authoritative view of the research and technology requirements of the region and encourage greater exploitation. It will also link to the national Innovation Review and Technology Strategy to ensure that the region is well placed to participate in and exploit the results of national technology development initiatives. Our approach, as set out in the Regional Innovation Strategy, is to respond to this integrated set of priorities, as follows: Company development providing the right skills and confidence for our people to lead and create innovation; building businesses capacity to become intelligent and visionary customers of the knowledge base; encouraging the use of foresight and innovation benchmarking tools; improving take-up of design resources in the region; and developing specialist advisors to help business make the most of opportunities; Resource development providing access to specialist equipment; delivering premises and services for earlystage and grow-on businesses; access to resources to support innovation and growth; and increasing Intellectual Property (IP) management and exploitation; Knowledge development transferring the full potential of the region s science, technology and knowledge base into the private sector; creating a framework where vision and foresight can help to shape the region s future; generating new knowledge to support the development of priority Business Clusters and High Technology Corridors; encouraging greater business-to-business knowledge transfer; and making all of these resources more easily accessible; and Engaging with and developing the strategic vision of the end user providing innovation support programmes focused on the needs of the market, and particularly the future market; engaging the media in an active campaign to raise public awareness of all aspects of innovation; and making innovation stick by creating innovation champions within the region. Actions must both support and stimulate demand, while remaining sensitive to the nature of markets and individual company needs. It is vital that the region continues to support a strong, demand-led innovation system that encourages change and reduces, wherever possible, risks to the individual innovator. 4.6 Increasing International Engagement Global demand for goods and services is in constant flux. Businesses must compete worldwide and the internet and digital communications are vital tools. Exporting features strongly in the region s economy, although there is clearly scope for more companies' involvement. There are significant opportunities to exploit EU initiatives to develop joint ventures and international partnerships. The exchange of ideas and knowledge on an international scale is increasingly important for opening up new markets and accessing new technologies and processes. The region also needs to exploit the connections with other parts of the world that businesses in this region have (e.g. with the Indian sub-continent). These issues require a co-ordinated approach. This approach is set out in the Regional International Trade Strategy, which identifies priorities for support agencies, co-ordinated through the International Trade Steering Group. Inward investment is vital for the diversification and modernisation of the region s economy. We must maintain and increase our share of foreign direct inward investment. Traditional manufacturing investment is being lost to Eastern Europe and the Far East, therefore the region s Inward Investment Strategy prioritises higher value-added activities, targeting specific companies able to build upon existing competitive strengths or attract other companies which plug significant gaps.

27 Pillar 1 - Developing a Diverse and Dynamic Business Base Developing an Environmental Economy Pressures for improved environmental practice will provide opportunities. The region s manufacturing base, particularly through its expertise in engineering, is well placed to exploit major opportunities in environmental technologies and broaden the business base by developing this new growth area. This provides a valuable opportunity to integrate the environmental and economic themes of sustainable development. Available opportunities are wide ranging but there are two key areas, dealing with waste and producing renewable energy, where business engagement is critical to effective solutions and where opportunities are substantial. The renewable energy opportunity is within the context of UK domestic targets as set out in the Energy White Paper. This requires a 20% cut in carbon dioxide emissions by 2010; 10% of electricity supply to emanate from renewable sources by 2010, plus support for the European Union s commitment to the Kyoto agreement. Low carbon technology will become a key feature of energy production. Key development opportunities are available if we improve linkage between producers and the substantial research capability in the region. Such an opportunity is well illustrated in fuel cell technology and the engagement of the region s component manufacturing capability in new markets. Other opportunities arise from regional expertise in both fuel crops and waste. There will almost certainly be added potential here arising from the anticipated European framework for emissions trading. Changes in the legal framework for waste disposal will provide substantial opportunities for new business engaged in re-use. The regional response here must recognise the waste hierarchy (eliminate, reduce, re-use, recycle, dispose) and seek to re-use materials as high as possible in the value chain, both as good environmental practice and to maximise the viability of business in this area. We must not neglect our wider assets in both manufacturing and services in this market. Similarly, we must also recognise the wider sustainable development agenda in encouraging all our businesses to pursue the highest achievable levels of environmental practice (through business support organisations promoting environmental management systems) and to recognise the quality of the environment itself which needs to be managed and improved as a substantial asset for the region s economy. 4.8 Developing the Visitor Economy Urban and rural economies each benefit from the appropriate development and exploitation of tourism, culture and heritage, particularly where these promote new enterprise and diversify local economies in response to identified demand. A new strategic tourism body, the West Midlands Strategic Tourism Body, will be established by spring It will oversee the development of a new seven-year West Midlands Visitor Economy Strategy. This will be developed from the work of sub-regional and regional partners, including Visit Heart of England which will assume a more focused role for the region. Tourism development brings benefit to every part of the region and to both private and public sectors. With a very large number of diverse businesses this requires a fully co-ordinated strategy to be supported and followed enthusiastically by all those actively involved, in both public and private sectors, if the potential economic benefits of the visitor economy are to be maximised. Key elements of the Strategy are likely to include: Improving the quality and competitiveness of the region s tourism businesses in order to be market-led and deliver consumer requirements; Growing income, employment and other economic benefits to the region s communities while ensuring that development is environmentally sustainable, reflects regional diversity, promotes quality and is based around core strengths; Improving strategic management and wider customer service skill levels; Improving tourism delivery and promotion, including e-tourism for which a regional strategy will be implemented; Branding and marketing the region s tourism products in a more positive and effective way; Benchmarking and exchange with other regions; and Developing links to other economic sectors, e.g. agriculture, arts, sport. 4.9 Conclusion This chapter has set out carefully considered and vigorous responses to the wealth creating challenges we face together as a region. The key to overcoming these challenges is to provide our workforce with the skills they need. The next chapter addresses the learning and skills challenges we need to address for success.

28 28 Pillar 2 - Promoting a Learning and Skilful Region 5. Pillar 2 - Promoting a Learning and Skilful Region 5.1 Overall Aim The aim is to create a highly skilled, innovative and adaptable workforce to attract and support the growth of high value jobs and wealth-creating businesses. This will lead to increased income for all our workforce, and ensure that all our people have the skills they need to take advantage of job opportunities. This aim aligns with the European Union s Lisbon agenda, through which Member States have committed to make Europe the most competitive and dynamic knowledge based economy in the world by 2010, and which informs our focus on Business Clusters (see chapter 9). The recently published National Skills Strategy sets out a focused and coherent national approach to skills issues, including a clear mandate to involve the demand side (particularly business) and an emphasis on supporting NVQ levels 2 and 3 qualifications, which this Pillar responds to. It also paves the way for a Regional Skills Partnership charged with ensuring an effective response to skills challenges. This involves bringing together existing regional skills-related strategies including the Framework for Regional Employment and Skills Action (FRESA) and the European Union Objective 3 Regional Development Plan. 5.2 Tackling the Basic Skills Gap Tackling the low levels of basic skills across many parts of the region is key to developing business competitiveness. This demands committed partnership working between all agencies engaged in education and skills including local education authorities, schools, education and training providers, and employers. In particular, it requires a co-ordinated focus on the age group. These young people are the building block for the future of our economy, and as shown by the challenge, there is a very mixed picture in terms of educational attainment in the region. However we recognise that improving the basic skills of some older workers remains an important issue to be addressed. The FRESA responds to this skills challenge (a major one for the region), with priority targets to: Improve levels of literacy, numeracy and ICT skills through region-wide projects addressing the low levels of basic skills, employability skills and qualifications; Further develop basic skills training in the workplace with partners seeking to provide opportunities for all workers, particularly those in SMEs, to reach their full potential; and Promote diversity initiatives with employers and communities to improve access to employment opportunities for all including key disadvantaged groups and people living in rural areas. 5.3 Developing Workforce Skills A number of skills shortages, skills gaps and a widespread failure of employers to engage in training are hampering the growth of our businesses. In many areas there is a need to upskilll or reskill our workforce. Our priorities are to: Raise awareness of and aspiration to high value employment opportunities via the development of specific advice, guidance and labour market information focusing upon action to raise aspirations and engagement in training; Increase access to learning through implementation of the Regional E-Learning Strategy and the development of other flexible learning opportunities particularly in rural areas; Improve language, international management and project management skills by implementation of the West Midlands Language Strategy linking in to and complementing the aim to improve international engagement; Increase access to modern apprenticeships improving the skill levels of both young people and adults; and Promoting ambition and enthusiasm by raising aspirations through new and more creative approaches to learning and skills development.

29 Pillar 2 - Promoting a Learning and Skilful Region Improving Leadership and Management Skills Good leadership and management skills are fundamental to achieving sustainable growth and improving economic performance. Evidence shows that while our region has some excellent managers and leaders of enterprises, they are comparatively few in number across the private, public and voluntary sectors. This contributes to poor levels of productivity improvement. If we are to achieve the economic growth required to compete globally then the quantity and quality of our managers must significantly increase. The FRESA priorities are to: Encourage the development of leadership skills, both for existing and emerging leaders, and develop networks of leaders where action learning and mentoring can underpin skills development; Increase the number of managers with relevant business management training and qualifications addressing needs identified in all ten Business Clusters; and Increase the participation of managers in nationally validated skills development programmes (through pilot projects, such as work with Centres of Vocational Excellence) which will lead to improved products and services. 5.5 Developing an Enterprise and Entrepreneurship Culture Entrepreneurship is often thought of solely in terms of business start-up. This is a rather narrow view, since enterprise and entrepreneurship are required in businesses of all sizes and at all stages of development (as shown in section 4.2). All our businesses need enterprising and entrepreneurial young people to enable them to grow, adapt and contribute to our economy. For this region, a particular focus is to inform and persuade school children that manufacturing, which draws on cutting-edge science, engineering and technological developments, offers an exciting and worthwhile career path. Priorities are to: Improve links between education and business, to ensure greater understanding of issues and needs in both sectors; and Promote a culture of enterprise and entrepreneurship in schools, colleges and universities to engage young people at an early stage in the development of the skills required to start up or work in business. 5.6 Expanding Higher Level Skills Graduates are essential to the growth of our economy and although the West Midlands has a reasonably high level of business innovation, the overall knowledge economy remains weak and participation in higher education is below the national average. Initiatives to support the employment and retention of skilled graduates in the region are crucial, particularly within high value-added industries. The FRESA priorities are to: Encourage the development and delivery of foundation degrees as a route to higher level qualifications for the workforce; Develop and support the implementation of the Partnerships for Progression initiative assisting young people to progress from school and further education into higher education; Raise awareness of high value employment opportunities increasing the retention of graduates in the region with consequent improvement of the Business Clusters; and Improve access routes, including mature apprenticeships and provision in rural areas responding to identified gaps and issues. 5.7 Conclusion This chapter illustrates the region s key themes for the development of a skilled and adaptable workforce to support the modernisation and diversification focus of chapter 4. It also explains how partners will work together to ensure that all our people have the skills to take up opportunities created. To succeed in this, the region needs the right infrastructure in place to support it, and chapter 6 sets out the policy response to the Conditions for Growth challenges.

30 30 Pillar 3 - Creating the Conditions for Growth 6. Pillar 3 - Creating the Conditions for Growth 6.1 Overall Aim This Pillar is the engine to drive forward investment by private firms and individuals in the region by encouraging and supporting a world-class infrastructure. Urban areas require significant investment, particularly in transport and electronic communications, in providing development and redevelopment sites and in revitalising housing stock. Poor infrastructure is hampering attempts to broaden the economic base in rural areas. A modern transport system is crucial. This Strategy can only go so far in seeking improvements in infrastructure there are important policy connections to be made to other strategies and vital, shared priorities in implementation, including advising Government of the region s needs. 6.2 Improving our Transport System An effective, sustainable transport system is fundamental to the delivery of this Strategy. The region does not currently have such a system. The draft Regional Transport Strategy, which is included in the Secretary of State s proposed changes to Regional Planning Guidance, sets out a framework for addressing the complex challenges involved. The overall approach is to improve transport through: Measures to improve national road and rail networks; Measures to significantly improve accessibility and mobility within major urban areas, other urban areas, market towns and rural areas particularly in support of the principle of equal access to employment; and Measures to encourage greater use of public transport, cycling and walking across the region. To implement this approach, the draft Regional Transport Strategy sets out a long-term plan for investment this includes those schemes already committed within local and national transport plans (see Annex E, which identifies the key delivery organisation for the national and regional priorities for investment and the timescale for delivery). Meeting the transport challenge in this Strategy requires regional partners to focus on delivering all elements of the plan for investment, and to take the lead on national and regional priorities; and local partners to take the lead on the local priorities. Delivery requires action from a wide range of partners, together with higher levels of revenue and capital investment from both public and private sectors than has been available over the last decade. Much will be achieved through Government funding programmes, but the region cannot expect this funding to deliver everything required. We need innovative thinking to find alternative means of funding those elements where the Government does not meet the whole bill. This will include examining the case for measures such as congestion and user charging. For example, Birmingham City Council is leading work on finding alternative sources of funding for New Street Station development. This innovative thinking needs to be developed both within the region and through working with other regions and the region is leading a national study into innovative forms of financing transport infrastructure which will set out how the region can help itself. The Regional Assembly s Transport Partnership is championing the delivery of the Regional Transport Strategy and has produced a Transport Priorities document. The Transport Priorities for the West Midlands document identifies priorities for regional action which have been agreed by a wide range of public and private sector partners committed to working towards their achievement. This document will need to be refreshed in the light of changes to the draft Regional Transport Strategy. It will continue to play an important role in bringing together partners in the region and providing a focus and shared agenda for both regional action and lobbying by all sectors. (The Transport Priorities document can be found at

31 Pillar 3 - Creating the Conditions for Growth 31 Airport development is a specific part of the transport agenda within the wider draft Regional Transport Strategy. The delivery of the Vision in this Strategy requires an international airport supporting the regional economy and its businesses. The Future of Air Transport White Paper (December 2003) supports the provision of an additional runway at Birmingham International Airport to meet the future growth in demand for air travel within the region. The airport operator will need to work closely with transport operators and regional partners to develop a strategy to improve surface access to the airport, particularly to increase the proportion of people using public transport and to address the capacity on the M42. The White Paper leaves the development of Coventry Airport, Wolverhampton Business Airport and any civil use of RAF Cosford as issues for local determination. The full implications of the White Paper for the region s spatial and transport strategies will need to be addressed by a future review of Regional Planning Guidance. Transport is one issue where the region cannot operate in isolation, as the transport network of the West Midlands impacts on other regions, and is in turn impacted on by decisions made in other regions. This requires co-ordinated action across English regions to clearly identify key transport requirements of national significance that impact on regional economies. The nine Regional Development Agencies (RDAs), led by Advantage West Midlands, have undertaken a study Surface Infrastructure of National Economic Importance (SINEI) which examines our transport needs from a national economic perspective. A key output from this study will be a high level Framework that captures key national transport requirements emerging from the changing economic needs of a growing economy. 6.3 Developing a Better ICT Infrastructure The widespread availability of broadband communications is a prerequisite for economic development. Recognising this, the region will strive to make broadband communications available to all businesses and 97% of households throughout the region by the end of The West Midlands Broadband Company has been established to develop a broadband network for the education, voluntary and health sectors, local authorities and other public bodies and public sector organisations at affordable cost throughout the West Midlands. It is also to facilitate the extension of broadband to small businesses in areas where it is otherwise not commercially viable. The region s work on aggregating public sector demand through the West Midlands Broadband Company has been picked up nationally with the development of Regional Aggregation Boards pooling the resources of the Department for Education and Skills and the National Health Service. In this region we are ensuring that this national initiative complements the creation of the West Midlands Broadband Company, to provide an even stronger co-ordinated approach. However, broadband availability is only an enabler of economic development. For the full benefit to be realised, take-up of e-business must be strongly increased and e-learning and e-government developed to ensure that: Businesses work efficiently with each other within the region and are able to compete in national and international markets; Businesses can get closer to their customers; Businesses and government can work efficiently together; and Skills development in the region is world-class. The ICT Cluster is a growing cluster focused on the development of the ICT industry in the region. The ICT Cluster strategy will build upon successful initiatives such as the UK Photonics Cluster, the recently launched West Midlands IT Association, and extend the range of ICT industry initiatives to support developments in technology and in the region s economy.

32 32 Pillar 3 - Creating the Conditions for Growth 6.4 Delivering Good Quality Sites and Buildings Ensuring the provision of good quality sites in the right location and of the right type is a key condition for growth. The regional approach to this has been developed through the Secretary of State s (Deputy Prime Minister s) proposed changes to Draft Regional Planning Guidance, employing methods fully consistent with this Strategy and supporting the delivery of its key elements. A balanced portfolio of land has been set out to meet the needs of the regional economy and to achieve this through a two-tier approach. The first tier is for sites of regional significance. The second tier is for locally significant employment sites established through local authority development plans. A summary of the approach taken to first tier sites in the Secretary of State s Proposed Changes to Draft Regional Planning Guidance is set out below (Figure 3). The main focus for the region to support emerging Regional Planning Guidance is to develop where possible on brownfield land. However, many such sites have major problems to overcome in making them available for development. Therefore, a Regional Brownfield Land Strategy is being developed, through the West Midlands Employment Land Advisory Group, which provides an overall steer for the delivery of the whole approach to employment land, based on sustainable development principles. The quality of design in both built form and the space between buildings is a key facet of sustainable economic development. As suggested in the emerging Regional Planning Guidance, flagship schemes and cultural projects can be a catalyst for regeneration. The region has much to build on with many exemplars of high quality design. This thinking needs to be distilled into everyday settings. Figure 3 Emerging Regional Planning Guidance Policy on sites of regional significance (summary) Regional Investment Sites The purpose of these is to support the diversification and modernisation of the region s economy, and in particular the development of the Business Clusters (see chapter 9). These sites, which will be identified in local authority development plans, are also intended to serve the needs of Urban Regeneration Zones (RZ) and High- Technology Corridors (HTC) (also see chapter 9). Taking into account existing sites, the Secretary of State s proposed changes to Regional Planning Guidance identifies a need for new Regional Investment Sites to meet the needs of the following High Technology Corridors/Regeneration Zones: Birmingham Worcestershire HTC (known as the Central Technology Belt); Coventry and Nuneaton RZ; South Black Country and West Birmingham RZ (Arc of Opportunity); and Additional provision may be required in the Coventry Solihull Warwickshire HTC. In some circumstances, a particular Regional Investment Site may serve the needs of more than one Zone/Corridor. Major Investment Sites two Major Investment Sites are needed to meet the need for accommodating very large-scale investment by single users with an international choice of locations in order to help diversify and restructure the regional economy. Three are currently identified, although these are subject to further consideration: Peddimore (Birmingham); Wobaston Road (South Staffordshire/Wolverhampton); and Ansty (Warwickshire). Regional Logistics Sites a choice of Regional Logistics Sites should be available at any time, to provide opportunities for concentrated development of warehousing and distribution uses priority should be given to bringing forward previously developed sites in North Staffordshire and Telford.

33 Pillar 3 - Creating the Conditions for Growth 33 This needs an examination of skills requirements, crossprofessional working and the engagement of partners from all sectors and at all stages of their work. The development of a Regional Design Framework is already underway to ensure a focused approach to concerted action on quality design, and that sustainable development is achieved. In addition we must further explore the potential to exploit our built environment. For example, the potential of the canal network within the metropolitan area to further act as a catalyst for regeneration and focus for tourism activity. The Brindley Place area of Birmingham and the Waterfront at Merry Hill provide examples of how this can be achieved. 6.5 Delivering a Housing Agenda for Economic Growth Sustainable Communities: Building for the Future Action Programme (see Annex C) sets out the national approach towards housing. In response to this, the Regional Housing Strategy seeks to ensure that the improvement of existing housing stock and the provision of new housing provides a housing stock that meets the aspirations of the region s people, contributes to urban and rural renaissance and provides balanced and sustainable communities. The development and subsequent delivery of the Regional Housing Strategy is undertaken by the Regional Housing Board. There is a two-way relationship between housing markets and economic success. The vitality of housing markets affects the vitality of the economy and vice versa. A vibrant economy brings higher levels of housing investment. A weak economy results in low levels of investment, with consequent dilapidation and decay. The housing market can also be a driver for change, providing an impetus or intervention leading to increased activity and employment. Large urban areas in the region have experienced relative economic decline since the 1970s as traditional industries have declined and these areas have become less desirable places to live. In contrast, suburban areas, free standing towns and some rural areas (especially in the south and east of the region) have experienced stronger economic growth as new industries have been attracted to edge-of-town or greenfield sites. Consequently there has been slower growth in older urban housing markets compared with areas outside and a diminishing supply of affordable and social housing in the rural west of the region, affecting employment prospects for young people. By 2010 there will be significant progress towards achieving greater housing choice across all income ranges. This will play a major part in creating attractive urban areas, helping to stem out-migration from those areas, and creating opportunities for people to remain in their communities in rural areas. The Regional Housing Strategy and its integration with this Strategy (and consequent shared actions) will seek to achieve this aim within the framework set down within the emerging Regional Planning Guidance, with particular priorities including: The linking of employment to housing, which requires action at a range of levels, including control through planning processes, support for mixed developments and targeted public transport initiatives; Securing large-scale intervention, across administrative boundaries, including actions to address market restructuring and housing market failure; Ensuring a sufficient pool of skilled labour for the construction industry; and The provision of housing land, strongly influenced by planning policies and co-ordination of plans, to ensure adequate provision and consequent reduction of conflict on land use. 6.6 Sustainable Use of Natural Resources As outlined in chapter 3, this Strategy is committed to sustainable development. As part of that commitment, there is a fundamental role for a high quality environment to support the region s economy and deliver the Vision. The natural environment is recognised as a key component of quality of life in the West Midlands. It is an asset to be utilised and capital item to be sustained and enhanced. Two detailed studies have been undertaken on the important role of the region s high quality environments The Environmental Economy of the West Midlands 2001 and The Environmental Economy of the Rural Regeneration Zone Each shows that not only is the environment important as an economic sector, but also that better use of natural resources by business and the public sector provides both economic and environmental gains. Delivering Advantage recognises that over the long term, economic growth, social cohesion and environmental protection must go hand in hand. Sustainable use of resources will ensure that our current stock of natural resources is neither depleted nor polluted by short-term development activity. This will be efficiently managed to support long-term growth. To deliver on this approach all partners need to incorporate sustainable management practices into their businesses. 6.7 Conclusion This chapter has set out the regional policy response to the challenges around infrastructure. The next chapter sets out our response to the Economic Inclusion challenge.

34 34 Pillar 4 - Regenerating Communities 7. Pillar 4 - Regenerating Communities 7.1 Overall Aim This Pillar drives the actions which will ensure that: our population has access to training and employment; all cultures are valued for their contribution; the skills and knowledge of all groups is recognised and utilised to promote economic regeneration of communities, thus contributing to economic inclusion. It provides the building blocks of the Bridges to Success concept. This concept sets out to provide linked activity to ensure that opportunities can be taken up by those in need. Therefore actions in this Pillar link through to the actions supported in the other Pillars (e.g. by tackling low aspiration leading to the take up of skills development). The involvement and leadership of Local Strategic Partnerships is crucial to the delivery of actions driven by this Pillar. 7.2 Linking Opportunity to Need Unemployment varies widely across the region. Employers find that employment offers are often not taken up by the local communities within which they are located. This is due to a range of factors: lack of child care; lack of accessible public transport; low skill levels and the need to raise aspirations and attainment; lack of information provision and knowledge; and poor environmental quality. We must enable those groups and communities traditionally excluded and disadvantaged in the labour market to access opportunities, especially jobs and training opportunities. Particular areas of focus are: Improving engagement with disadvantaged communities enhancing the level and methods used to provide advice and information to communities by public bodies and support agencies; Improving links with major employers increasing opportunities for employers like the National Health Service to recruit from communities where they are based; and Developing a structured approach towards corporate social responsibility. Identifying and overcoming barriers encompassing issues like the lack of affordable child care, a lack of or limited public services, raising aspirations, and perception issues; Developing entrepreneurial communities improving the level of business formation and survival rates at local levels; Promoting and supporting social enterprises working with social entrepreneurs, voluntary and community groups to promote the benefits and opportunities provided by the development of sustainable social enterprises, as set out in the Social Enterprise Framework;

35 Pillar 4 - Regenerating Communities Building the Capacity of Our Communities Regeneration action is effective only when members of the community are fully engaged and representative organisations fully involved in regeneration developments. This involvement flows from neighbourhood level to local, sub-regional and regional levels. It places increasing demands on voluntary and community groups and these groups need to be equipped and supported to make effective contributions. Building the capacity of people and local, sub-regional and regional organisations to participate in regeneration policy development and decision making requires: Support for regional, sub-regional and local networks to improve their level of knowledge and skills providing tailored and specific support on regeneration issues or developments, and raising of general awareness and training; Encouragement of participation in regeneration activity building on local enthusiasms and talents and providing support to develop participation across all communities through existing structures; and Creation of local social capital taking measures to ensure that social investment remains in regenerated communities. 7.4 Developing Sustainable Communities Successful, sustainable local economies and communities need an environment (real and perceived) that is attractive, safe and offers high quality social and cultural infrastructure. As identified in the emerging Regional Planning Guidance, the current outward drift of people and jobs from major urban areas is a key issue. In some rural, older industrial and former coalfield areas, communities are struggling due to structural change. Actions must therefore ensure that environmental conditions do not act as a disincentive to investment. These actions include initiatives to reduce crime, particularly business crime which increases costs and thus affects competitiveness and ultimately jobs or services in an area. It is also necessary to ensure that limited cultural opportunities do not act as a disincentive. The priorities for action through Local Strategic Partnerships and regional partners are: Prevention of crime and the fear of crime supporting best practice in crime reduction and improving links with criminal justice organisations; Improvement of housing choice supporting housing investment as part of neighbourhood renewal and action within Regeneration Zones (see section 9.2); Promotion of environmental awareness and improvement; enhancement of cultural opportunities; and maintaining and developing green spaces to provide better living conditions and improve perceptions of local areas; and Reduction of health inequalities action to counter poor health and poor access to care leading to improvements in productivity and economic activity of communities. 7.5 Conclusion This chapter has focused on the economic inclusion challenge. The next chapter sets out the approach to the final challenges of image and marketing.

36 36 Providing a Powerful Voice for the Region 8. Providing a Powerful Voice for the Region 8.1 Overall Aim The aim is to coherently communicate the region s strengths, opportunities and needs, and to ensure that these are clearly articulated and fully understood both within and outside the region. A successful, world-class region influences both national and international arenas. To achieve this, our region needs a strong, single and cohesive voice on the key issues impacting upon us. We must also develop a coherent approach to ensure that others are made aware of the strengths and opportunities, the features and activities which are truly distinctive to the West Midlands and steadily reaching world-class standard. Successful regions communicate with self-confidence and self-belief. This is essential both in promotional activities and in ensuring that issues and difficulties are understood by key decision makers, nationally and internationally. The West Midlands is perceived as lacking this confidence and belief. Therefore this single, coherent approach must also work within the region to improve confidence and to demonstrate to others that, given appropriate support, the West Midlands will be an economically successful region. Successful and confident regions are also outward looking and prepared to learn from others. We need both a clear approach to working with partners across the UK and to take advantage of existing opportunities.

37 Providing a Powerful Voice for the Region Improving our Image and Marketing the Region Perceptions held by key audiences are critical to successful economic development. Many regions across the world have successfully shifted perceptions over time to the enhancement of their economies. They have achieved this by agreeing and implementing a regional marketing strategy with very clear objectives over a sustained period of time. The marketing strategy for the West Midlands builds directly on the lessons we have learned from other regions and has three core objectives: To develop a compelling description of the region in words and images for use by all the region s stakeholders to give external and internal audiences a true picture of what it is like to visit and to live and work in the West Midlands; International participation is a key aspect of promoting the West Midlands to our target audiences. This participation takes many forms for partners and stakeholders in the region, including: fostering partnerships for international trade, cultural exchange or technology transfer; benchmarking our performance against other regions on an international level; and learning from the experience and best practice of others, all of which lead to informing others about and promoting the West Midlands on the international stage. The region s European Strategic Framework (see section 8.5) promotes this transnational action in a co-ordinated way. To target five specific audiences: businesses looking to locate or expand in the region; visitors coming to the region for business or leisure; our current and future higher and further education student population; our regional population; and national and international media; and To monitor the effectiveness of marketing activity by measuring performance against targets and publishing results annually. The Regional Marketing Strategy is delivered by a number of groups comprising individuals and organisations from across the whole region whose members bring the right knowledge and expertise to specific objectives and specific audiences.

38 38 Providing a Powerful Voice for the Region 8.3 Creating an Intelligence Base for Policy A co-ordinating intelligence resource, based on genuine partnership, must make a consistent case for the conditions of the region and the implications for strategy. This must be based on the monitoring and evaluation of the contribution regional partners collectively make to the performance of the region, its people and its businesses. The West Midlands Regional Data and Intelligence Observatory will develop this role and co-ordinate the collection, dissemination and use of intelligence. Through a network of partners, it will ensure a consistent approach and understanding within the region and produce an annual state of the region report. Some sub-regions have set up observatories, and a key development will be to ensure the same availability of information at regional and sub-regional levels. 8.4 Engaging with UK partners Many key issues identified within this Strategy resonate in other parts of the country, and actions to address them will be more effective if regions and devolved administrations work together. Economic activity is not constrained by administrative boundaries. For the West Midlands, bounded by the East Midlands, South West, South East, North West and Wales, it is crucial to work with partners in these areas. Specific activities where the region is working with adjacent areas include: Marketing the West Midlands abroad for foreign investors under the British Midlands brand, working with the East Midlands; Working with the South East, East of England and the East Midlands on the specialised motor racing element of the Transport Technologies Cluster; Working with the East Midlands on the sustainable future of the aerospace sector; Working with Visit Britain and other regions to better market England s tourism product at home and overseas; Joint work on European issues (NB the East Midlands will be co-locating with the region in the new West Midlands in Europe office in Brussels from 2004); and Joint work with the North West and East Midlands on multi-modal transport studies. Regional organisations are working together across all English regions to pronounce on the impact of policy and to provide Government with coherent views on the regional implications of national issues. These include the future of European Structural Funds post 2006, the White Paper on Airports and State Aid policy. Regional partners also need to ensure that they play their part in UK-wide partnerships by understanding and responding to national perspectives and analysis. Government departments have extensive knowledge of issues critical to this Strategy and partners must work with departments to ensure that this knowledge is applied in the most effective way in the West Midlands.

39 Providing a Powerful Voice for the Region Engaging with European Partners To achieve recognition as a world-class region the West Midlands must engage fully with Europe, particularly the European Union (EU). The EU provides massive trading opportunities, both within the existing Union and with accession countries. It has a major impact on the region in terms of setting out policy direction and initiating legislation which affects business and workers, education, skills and training organisations, research institutes, culture, art and sport. The EU is also a source of funding to deliver this Strategy s priorities. The EU s Competition and State Aids policy has a major impact on the West Midlands. This is currently being reviewed and the region is engaging with the Government and EU institutions to ensure that we have input into the review. Our region will benefit from working with, and learning from, other regions which have successfully implemented policies we are pursuing, or who wish to develop understanding in partnership with the West Midlands. A European Strategic Framework has been developed through the Regional Assembly s European and International Affairs Partnership. This sets out a framework for better engagement with European institutions, activities and the soon-to-be enlarged European Single Market to help deliver the Vision. It also identifies areas where such engagement will help to ensure delivery against the aims of each of the Pillars. The Framework sets out four pathways: Working with other regions and building transnational partnerships to support the delivery of regional priorities. This Framework has been developed through the Regional Assembly s European and International Affairs Partnership, which will have a co-ordinating role. But its success depends on organisations and partnerships right across the region not just European groups or networks taking up opportunities and implementing actions. The new, enlarged West Midlands in Europe office in Brussels gives added visibility to our region in the EU marketplace and provides strong support for the delivery of this Strategy. 8.6 Conclusion Chapter 2 set out challenges for the region; chapter 3 set out our approach to meeting them; chapters 4 to 8 detailed exactly how the region will address those challenges. The next chapter explains the three key delivery mechanisms which the region has made its focus for the delivery of the Strategy. Gearing up to drive the agenda forward: creating effective strategic leadership of European affairs including further development of the West Midlands in Europe Partnership and office; Delivering the European agenda: making the most of EU policy and funding opportunities. The region has been a major recipient of Structural Funds over the last 20 years and these have contributed to many of our most important developments. A full scale review of the future of Structural Funds post-2006 is underway and it is unlikely that the West Midlands will remain eligible for funding. We must therefore argue our case loudly and clearly for the funding required to deliver our priorities, and demonstrate how EU funding fits into that. This must go beyond Structural Funds to include the entire range of EU funding; Promoting the West Midlands as a premier European player in an enlarged European single market. Opportunities must be carefully assessed to balance the risks from expanding in familiar markets against the penetration of new and untried markets; and

40 40 Focusing Resources 9. Focusing Resources 9.1 Overall Aim The region s response to the challenges we face has been set out in chapters 4 to 8. For this Strategy to succeed, tough choices have had to be made to concentrate resources and efforts to make a difference. Two of the top four challenges for enterprise and manufacturing, and economic inclusion will be met only if they are given prominence in the delivery of the Strategy, by targeting companies and communities where the challenges and the opportunities are greatest. Advantage West Midlands made the choice to put the majority of its efforts and funding behind three Key Delivery Mechanisms Regeneration Zones, Business Clusters and High Technology Corridors. These are directly geared to deliver these two specific challenges and to link with delivery on other challenges. Partners have agreed with the choice to focus regional efforts and activity. However, the whole of the 20 billion of public sector resources potentially linked to this Strategy will not be focused solely on these specific challenges, or on the three Key Delivery Mechanisms. Other challenges require activity across the region, and therefore resources to deliver. 9.2 Regeneration Zones The approach developed through Regeneration Zones recognises that parts of the region, both urban and rural, are economically deprived. These areas have retained the characteristics of deprivation despite a long history of policy intervention in many cases. The fragmented nature of previous policy intervention resulted in simplistic rather than holistic regeneration. This has led to the need for re-regeneration in many locations, and a failure to connect deprived areas to economic opportunities nearby. Therefore, a fresh approach had to: Target locations incorporating deprived areas and latent opportunities on a large enough scale to make a difference; Improve linkages between need and opportunity by tackling poverty of aspirations and creating bridges to success ; Combine and target resources and effort in these areas; Create areas that were not constrained by administrative boundaries; and Take a long-term approach (10 15 years). Based on these requirements, six Regeneration Zones were identified. The 6 zones encompass concentrations of need. They include the 10% most deprived wards in the region, plus the majority of the 20% most deprived (see Annex F1). They also incorporate many of the region s most important and exciting development opportunities. Current Zone boundaries form the basis for specific regional planning policy in the Secretary of State s proposed changes to Draft Regional Planning Guidance. Similar principles were applied to the creation of five urban and one rural area. However, need and opportunity are less geographically concentrated rurally, so the rural zone area is large enough to include key opportunities existing within and adjacent to market towns on the western side of the region. Within urban zones, the role of town centres as the focus for economic growth is a key consideration.

41 Focusing Resources 41 By 2010 we expect to see a varied pattern within Regeneration Zones. All should have provided sufficient job opportunities for the employment and unemployment gap between themselves and the regional average to have at least stabilised. Here, Zone designation will remain valid to enable further development. In Zones where major new private sector investment has been effectively generated, we expect to see the gap narrowed, and the Zone to be developing higher added-value activity and job opportunities. In these areas, Zone designation may no longer be required. This target will be achieved only if public sector resources available in the relevant areas are amalgamated to deliver Zone strategies. To deliver the Regeneration Zone idea, Partnership Boards have been appointed which reflect the local community and local partners. These Boards link closely with Local Strategic Partnerships, bringing together Neighbourhood Renewal and Neighbourhood Management activity within the wider regeneration agenda of each Zone. The region s approach to key national policies and mechanisms is also driven through Regeneration Zones. Thus, the North Staffordshire and South Black Country West Birmingham Zones also contain the region s two Housing Market Renewal Pathfinder Schemes. The Sandwell Urban Regeneration Company (URC) and the Walsall URC are also within Regeneration Zones. Zone Partnerships have developed an overall longterm vision for each Zone. Within that, they have prepared Zone Implementation Plans (ZIPs), setting out a planning framework and incorporating the projects and initiatives to be delivered in each Zone. Public sector funding for ZIPs over the next three years will utilise a substantial proportion of Advantage West Midlands funding together with European and local partner funding and will total 400 million. Targets for planned activity through ZIPs for the period of the Strategy ( ) are as follows: 2 19,000 jobs created; 55,000 learning opportunities provided; and 600 hectares of brownfield land to be remediated. Achievements against these targets will be tracked through the annual monitoring of the Action Plan (see section 11.2). Though other regional areas may have some of the deprivation characteristics of Zones, current Zone boundaries provide the basis for specific regional planning policy in the Secretary of State s proposed changes to Draft Regional Planning Guidance. This, alongside original analysis, means that there is currently no justification for further Zone designation. 2 As well as the ZIP activity there is also a substantial amount of other activity funded by Advantage West Midlands and Objective 2 within Regeneration Zones. We anticipate that including these other projects for the period of the Strategy ( ) could increase the number of jobs created to 84,000.

42 42 Focusing Resources 9.3 Business Clusters Chapter 2 clearly indicates the need for the West Midlands business base to modernise and diversify. Some of our companies are already successfully diversifying and modernising, new firms are being formed and new investment attracted. However, the level of economic activity would be much greater if connections could be made to sources of technology, skills, finance, land, suppliers and potential customers (both public and private) for organisations working towards the same end market. In effect, spreading increased know how to generate growth, strengthening resources and providing facilities. These connections form the core of the cluster approach. The nature of such complex linkages means that clusters do not necessarily operate in tightly defined geographical areas; they can be region-wide or cross regional boundaries. Indeed, networks of companies have successfully operated across national boundaries, and there is an international drive to exploit this form of activity. In this region we have identified ten Business Clusters for support and development (see Figure 4). Our higher education and research establishments are important to the development of Business Clusters, and their potential to grow and link with new economic activity is one element of Business Clusters that has a specific spatial dimension. The cluster approach encourages a broader adoption of the successful strategies used by competitive companies already making a difference in key markets and across whole industries important to the region's longer-term development. Business Clusters are a force for change contributing to sustainability. Industries likely to benefit from the growth of Business Clusters will consume fewer physical materials and less energy per output compared with the traditional industrial profile of the region. Together these Business Clusters represent a focused approach to modernisation and diversification. By 2010 they will have improved productivity levels in the region and the number and value of jobs in Business Clusters. Each Business Cluster will contribute in different ways. Established Business Clusters will need to rapidly increase productivity within manufacturing firms. They do and will continue to experience some reduction in employment, but must increase productivity to retain a competitive edge. Growing Business Clusters are more likely to expand through increased employment opportunities. Growth in embryonic Business Clusters is unlikely to be rapid initially, but the region will be placed to take advantage of future opportunities, including employment growth. The net effect on employment in the region will be positive, as associated service sector employment grows. Figure 4 Stage of Development of Business Clusters We have identified that the ten Business Clusters fall into three stages of development in the region (for full details see Annex F2): Established where the objective is to assist our established clusters to modernise and diversify. These clusters are: transport technologies; building technologies; food and drink; tourism and leisure; and high value-added consumer products; Growing where the objective is to provide support for our developing clusters with growth potential. These clusters are: specialist business and professional services; information and communication technologies; and environmental technologies; and Embryonic or aspirational where the objective is to nurture the development of embryonic clusters with potential for growth. These clusters are: screen and new media for education and entertainment; and medical technologies.

43 Focusing Resources 43 For each Business Cluster a Cluster Action Plan and Business Needs Analysis have been produced and a Cluster Opportunity Group (COG) established. These business-led COGs bring together private sector and key public sector organisations to deliver the cluster agenda. Advantage West Midlands Cluster Managers, with support from cluster-dedicated posts in higher education institutions, Local Learning and Skills Councils and Business Links will provide executive support to COGs. An overall Cluster Action Plan sets out activities to be undertaken. This is funded by 250 million of public and private sector resources over the next five years, catalysed by money from Advantage West Midlands and European Structural Funds. In addition, an Environmental Business Growth Action Plan and an Accelerate Action Plan are focused on cluster activity. The targets to be achieved through cluster-focused action plans, for the period covered by this Strategy ( ), are as follows: 35,000 jobs created and safeguarded; 16,000 new and improved businesses; and 22,000 vocational qualifications achieved. Achievements against these targets will be tracked through the annual monitoring of the Action Plan (see section 11.2). 9.4 High Technology Corridors Analysis has identified potential offered by the knowledge economy, together with over-dependence on certain industries. High Technology Corridors (HTCs) have been established to attract and develop high-tech, high valueadded businesses into three parts of the region, utilising existing research institutions, universities and property opportunities including incubator and grow-on space (see Annex F3). The HTCs are located in areas particularly dependent on the automotive industry. The term corridor reflects the functional linkages between activities in the corridor. It does not imply any form of ribbon development, as the policy within the Secretary of State s proposed changes to Draft Regional Planning Guidance makes clear. By 2010, each of the HTCs should show a net increase in employment, especially in higher added value industrial and commercial activities, and resources existing in higher education and research institutes will lead to increased economic activity and output. Significant new private sector investment should have occurred at key nodes in the corridors. The success of HTCs depends on partners funding being aligned behind the corridor strategies. A detailed action plan has been developed by partnerships in each HTC. In two (Central Technology Belt and Telford/Wolverhampton) there is particular emphasis on acquiring and developing a portfolio of sites to support the growth of Business Clusters. In the Coventry, Solihull, Warwickshire (CSW) area, the emphasis is on building on the existing strengths of a high technology business base and addressing weaknesses in networking. The HTCs do not have strictly defined boundaries but have been identified in order to create initial attention from target companies and to provide a focus for public and private sector investment. They provide a key element in the Secretary of State s proposed changes to Regional Planning Guidance. Partnership mechanisms for each HTC reflect local circumstances. The HTC initiative is supported by 55 million of funding from Europe, the Department of Trade and Industry and Advantage West Midlands. The targets to be achieved by the projects in all HTCs for the period covered by this Strategy ( ) are as follows: 3 7,000 jobs created and safeguarded; 2,500 new and improved businesses; 15 hectares of brownfield land reclaimed; and 23 million of private sector investment. As with Regeneration Zones and Business Cluster activity, achievements against the HTC targets will be tracked through the annual monitoring of the Action Plan (see section 11.2). 3 These targets are based on those projects currently being developed. We anticipate that as the detailed action plans are created, the overall targets for the Corridor Initiative will be considerably higher.

44 44 Focusing Resources 9.5 Inter-relationships between Regeneration Zones, High Technology Corridors and Business Clusters These three delivery mechanisms cannot be considered in isolation. Figure 5 sets out the connections between the three and shows that where the policy objectives overlap, there can be joint activity and benefit. Advantage West Midlands needs to ensure that it facilitates these connections. Therefore, when a regional Business Cluster project is located within a Regeneration Zone, it will be important to ensure that it is linked to the Regeneration Zone Board work on local opportunities. Some Zones and High Technology Corridors overlap, and the partners involved will need to ensure that their work is complementary, and that local people benefit from the High Technology Corridor s activity. When regional Business Cluster activity is to be focused within a High Technology Corridor then the two sets of partnerships (Cluster Opportunity Groups and High Technology Corridor Partnerships) will need to work together. Figure 5 Links between the Key Delivery Mechanisms Ten Business Clusters Region-wide approach to business development Zones may include activity in regional Business Clusters Six Regeneration Zones Identification of local needs and opportunities Corridors offer opportunities in growing and embryonic Clusters Corridors can make a direct contribution to Zones Three High Technology Corridors Areas of focus for opportunities in the region s clusters

45 Focusing Resources Other priorities The three Key Delivery Mechanisms provide the priority focus for interventions. The Business Cluster mechanism, and some other policies, are initiatives that can apply anywhere in the region. Regeneration Zones and High Technology Corridors are primary mechanisms focused on specific parts of the region. In particular, Regeneration Zones are a focused way to meet the Communities challenge. However, for that challenge to be fully delivered, two supporting policies have been developed to pick up on opportunities not directly addressed by Regeneration Zones. 9.7 Conclusion This chapter illustrates the tough choices made for the delivery of this Strategy. The next chapter sets out the partners and processes involved in making that delivery happen. The region recognises the key role market towns play in regenerating rural areas both within the Rural Regeneration Zone and in other rural parts of the region. A regional Market Towns Initiative addresses this issue. This works through selecting market towns on the basis of their economic need, combined with their capacity to take advantage of economic, social and employment opportunities. A Market Towns Steering Group oversees development of this policy, which provides local partnerships with the capacity to tackle the identified issues through a 3 4 year action plan. The West Midlands Towns Economic Interventions Study (access via has identified many towns across the region which have either the potential for further growth or are vulnerable to economic decline. The regional policy response, through a partnership between Advantage West Midlands, Sub-regional Economic Partnerships, local authorities and the Regional Assembly, will set out criteria to judge the conditions of these towns, and to understand the need and priority for intervention. The sub-regional partnership will develop a co-ordinated approach to catalyse support from local and regional partners. The menu of policy responses must build on the idea of town centres as the focus for growth, and identify the extent to which policy mechanisms, such as Business Improvement Districts, are appropriate. Some of these towns are in former Coalfields areas, and existing Coalfields support programmes will also be part of the overall approach in relevant towns. Annex G contains details on sub-regional partnerships and their activities. This approach towards these towns does not mean that regional and subregional partners will do everything tough choices will need to be made about where to focus funding and activity.

46 46 The Role for Partners 10. The Role for Partners 10.1 Chapters 4 9 set out how the region will realise its Vision a Vision which will only be made reality through partners working together across the region. This chapter sets out the way in which partners across all sectors and areas of our region have important roles to play Partnership The last four years have seen an unparalleled expansion of organisations, mechanisms and activities working in partnership to secure economic development for the West Midlands. Partnership working is a real strength and brings competitive advantage to the region. Partnerships are co-ordinated through the West Midlands Regional Concordat which is overseen by the West Midlands Regional Assembly (WMRA). The Regional Concordat provides a framework for partnership working between regional organisations and assists the Regional Assembly in ensuring coherence between regional strategies. It is a voluntary agreement to which ten regional organisations are fully committed in the spirit of open and inclusive regional governance (See Annex H for details) The Role of the West Midlands Regional Assembly WMRA, which fully endorses and supports Delivering Advantage, has the leading regional role in ensuring consistency between different regional strategies. It is responsible for the Regional Concordat and has several additional roles in relation to this Strategy. As part of its scrutiny function, it will review progress throughout the life of the Strategy, identify issues partners need to address for fully effective delivery and work to make that happen. In addition, WMRA will deliver or make a major contribution to certain actions, particularly in respect of promoting and lobbying for the region. As the Regional Planning Body, WMRA also has a role in ensuring consistency between the delivery of the emerging Regional Planning Guidance and the West Midlands Economic Strategy The Role for Sub-Regional Economic Partnerships The role of sub-regional economic partnerships is vital to the delivery of our Vision for They draw together organisations at a more local level and their size, scale and remit therefore vary across the region, and reflect differing approaches. Some partnerships have a delivery role; all have a strategic role. These partnerships champion their sub-regions at regional level, and ensure that the sub-regional dimension of each policy area in this Strategy is understood and incorporated into the regional approach where appropriate. Partnerships are developing protocols which encompass the roles different partners play in the delivery of regional and sub-regional strategies. The sub-regional dimension of other strategies is under development. The nature of partnerships may necessarily vary, and there is a need at regional level, through Regional Concordat partners, to create understanding of a regional approach requiring both flexibility and clarity regarding relationships between the region and its sub-regions. Each sub-region has developed its own approach, and these illustrate individual sub-regional responses to the challenges and policies in this Strategy (see Annex G). Some sub-regional economic partnerships are leading on activity that involves more than one sub-region. For example, the Birmingham and Solihull Economic Development Partnership is leading on developing a Core City prospectus as part of the Office of the Deputy Prime Minister s national initiative. It will continue to work with key regional partners to ensure alignment between the prospectus and Delivering Advantage.

47 The Role for Partners The Role for Business Without private sector investment, wealth will not be created and new and improved job opportunities will fail to emerge. Public sector resources, although substantial, account for less than one third of regional GDP. Actions supported by public sector resources must catalyse and lever even more substantial private sector investment. More therefore needs to be done to engage business people in partnerships and delivering action. Encouraging involvement in what are often perceived as bureaucratic organisations and processes is not easy, but without the energy and involvement of our business people, the region will not achieve the increased jobs and prosperity it seeks. The new West Midlands Business Council will help to engender a sense of ownership, co-ordination and corporate social responsibility within business, and encourage businesses to recognise the benefit of full engagement, especially in Regeneration Zone Boards and Cluster Opportunity Groups The Role for Public Sector Partners We estimate (see Figure 6) that nearly 100 billion of public sector resources will come into the region over the next five years. Around 20 billion of this is directly for economic development and regeneration. 2 billion of this is resource from Advantage West Midlands and European Structural Funds, directly allocated to deliver projects within Delivering Advantage. As well as this 2 billion, around 7 billion more is currently likely to be fully or significantly influenced by the Strategy including the resources of partners such as the Business Links and Learning and Skills Councils, each of which has agreements with Advantage West Midlands to help deliver key parts of the Strategy. The task for partners is to find ways of maintaining greater influence over public sector resources not currently much influenced by the Strategy, but which could have a major impact (for example National Health Service resources see Section 10.10). Existing European Structural Funding is closely aligned to Delivering Advantage, particularly the Objective 2 programme that focuses 550 million of funding behind the Strategy. The future of this funding after 2006 is under review, and the region s economic case and our ability to align funding behind priorities need to be made clear. However, post-2006 this funding is likely to decrease significantly.

48 48 The Role for Partners Figure 6 Estimated Public Sector Resources: West Midlands Region (total for the five years 2001/02 to 2005/06) Total Public Sector Resources: 100 Billion Core and Semi-Related Resources to Economic Development and Regeneration: 53 billion Other Public Sector Resources: 47 billion (health, crime, social services, fire) Semi-Related Resources Core Resources for Economic Development and Regeneration: 20 billion Partially influenced by Delivering Advantage 32 billion (housing, school/pre-school, education, sports, arts, environment, lottery) Degree of Influence of Delivering Advantage Advantage West Midlands Budget 1 billion (6% of core) Fully Influenced: 1 billion (6% of core) Small Business Service Business Support, EU Objective 2 Significantly Influenced: 7 billion (34% of core) EU Objective 3, Land, Learning and Skills Council, Further Education, Neighbourhood Renewal Partially/Negligibly Influenced: 11 billion (54% of core) Rural, Transport, Unemployment Support, Higher Education Source: Regeneris Consulting In addition to holding resources, public sector partners have a direct role in offering access to opportunity, and a huge role as regional employers recruiting, training and contracting out work The Role for Advantage West Midlands Advantage West Midlands is one of many regional partners involved in this Strategy. It has a clear leadership role: to ensure that its resources, and those of partners, are used to deliver this strategy in an integrated way; and to ensure the voice of the region is heard by decision makers nationally and in Europe. It will focus its resources on creating more and better jobs, and improving the quality of life The Role for Local Authorities Local authorities, as well as being employers and purchasers, also have a strong leadership role in local and sub-regional partnerships, significant economic development budgets, responsibility for education provision and a major role to play in many other key issues in the Strategy. The West Midlands Local Government Association (WMLGA) will continue to co-ordinate the role of local authorities. The way in which Advantage West Midlands will deploy its resources behind the Strategy is set down within its three year Corporate Plan (see

49 The Role for Partners The Role for Government Office The Government Office for the West Midlands (GOWM), the regional presence for central government, has and will retain a major role in ensuring co-ordination of government activity in support of the Strategy, that the regional approach is consistent with the national approach, and that the region s issues are heard in Whitehall The Role for the National Health Service (NHS) The NHS has a major role to play in the region s economy, and in key elements of this Strategy: The NHS is a major employer in the region with an estimated 100,000 people directly employed. This number is likely to increase over the next few years. We must ensure that employment opportunities provided by the NHS benefit the people of the region; NHS procurement is significant, with the Service spending an estimated 2 billion per year on goods and services across the region. Much of this is currently spent outside the region. This resource must be tapped to secure more local procurement within the region; Major capital investment is programmed for the NHS. Its major regeneration developments must be tied into the visions for Regeneration Zones and advantage taken of their role as catalysts for regeneration; and The Role for the Third Sector The Third Sector comprises voluntary, community, social and environmental enterprises. This sector comprises 18,300 organisations, a paid workforce of 44,000 and an unpaid workforce of 435,000. The overall value of the sector in the region is around 330 million. The sector will be enabled to breathe life into community cohesion and social inclusion strategies and to act as advocates and champions for our communities, and our environment, and become world-class service providers. We will also enable the Third Sector to bring its grass roots reality to the boards of delivery partnerships. This Strategy recognises that Third Sector organisations need community capacity building in order for effective local governance and local ownership. It also acknowledges that fewer and more effective consultation forums must be put in place to allow best use to be made of scarce Third Sector human resources. Community-led inside out approaches to community regeneration are the preferred option, i.e. locally managed social firms, community enterprises, and initiatives from voluntary organisations and community groups. The Strategy recognises that locally owned community projects have better prospects for sustainability than imports led by regeneration professionals living elsewhere. The NHS is a driver for and developer of technological advances. We must develop further the way in which this feeds through to opportunities for business. A strategic approach engaging the NHS in the delivery of this Strategy, involving the three Strategic Health Authorities, the NHS Trusts and the Public Health Group at the Government Office for the West Midlands is under development.

50 50 The Role for Partners The Role for Higher Education Universities and higher education institutions play a major role in economic development. There are three elements to university performance teaching, research and third leg activities working with the community. The region must develop a coherent approach to our higher education system which recognises the different but complementary roles played by different institutions. We will gain competitive advantage by all our institutions being top of their own class and working in innovative and collaborative ways, linking in to business and other regional partners. We must ensure the region retains its research power the proportion of research funding coming to our universities that have departments with 5* ratings. Birmingham and Warwick are the two universities in the region in the highest ranks. Some universities have areas of highly rated specialist research. The region needs to support retention and development in these areas and help them in their key regional role. Universities are key players in High Technology Corridors, through spin-offs and knowledge and technology transfer. Our universities have a critical role to play in improving the region s learning and skills base for example by making provision for needs identified through Cluster Opportunity Groups and Learning and Skills Councils. They also have a critical role in working with small business offering specialist help to solve business problems, and using their experience and knowledge of regeneration to aid local partnerships. There is potential within the teaching role for universities to collaborate and benefit from differing expertise Joint Action Recognising the importance of individual decision making by partners, the region is also firmly set on the path of partners working together. This is evident in a number of formal arrangements and organisations set up over recent years: The West Midlands in Europe Partnership, created in 2000 to enable the region to speak with one voice to the institutions of Europe; The West Midlands Regional Data and Intelligence Observatory, created in 2002; RegenWM, the West Midlands Centre for Regeneration Excellence, set up in 2003; West Midlands Networking Company Ltd (formed in 2003) and the West Midlands Aggregation Board, to promote and develop the provision and use of broadband; West Midlands Life, the Regional Cultural Consortium established in 1999 to bring together all the region s cultural agencies and providers; The West Midlands Strategic Tourism Body, to be established in 2004, to oversee the implementation of the Visitor Economy Strategy; and The Business Link Pilot, where the Small Business Service and Advantage West Midlands are developing a co-ordinated approach for managing their programmes that are delivered through the region s six Business Links operators. A further dimension of working together is for public sector partners to simplify and co-ordinate the appraisal and monitoring of projects, building on the agreement already in place between the Government Office for the West Midlands and Advantage West Midlands. This also requires a coherent approach to assessing projects and programmes for their contribution to certain policy perspectives, including sustainable development (incorporating the use of approved techniques for environmental assessment) and rural policy.

51 The Role for Partners The Region s Capacity to Deliver To deliver the Strategy, all partners need to both understand and own their role. Equally importantly, world-class achievement requires world-class organisations. A critical assessment must therefore be made of the capacity of organisations and partnerships together with any restraints they face in the ability to play their part Conclusion This chapter has set down the way in which partners are going to work together to deliver the Strategy. The next chapter details who is going to do what regarding the top priority actions. A serious regional shortage of skilled practitioners in most areas of regeneration and economic development will be addressed through an integrated approach to learning, training and development involving all our universities and colleges. Specific actions will include: RegenWM (The West Midlands Centre for Regeneration Excellence) developing medium and longer-term plans for increasing the stock of qualified regeneration practitioners including looking at innovative schemes for placements and work shadowing; Work between schools, universities, Connexions and public sector organisations to promote and publicise careers in regeneration and economic development; Innovative ways of funding bursaries for undergraduate students wishing to gain experience in regeneration; Joint action by public organisations on recruitment, training and sharing of expertise; and Continuation of current training courses on European Structural Funds and widening out into other funding, project development and management issues. There is also a need for capacity building at all levels across the region to ensure strategic focus, clarity of vision and decision making and effective management. We need to be able to consistently attract and retain the best candidates at a national and international level in the private and public sector. The region also needs to ensure that full use is made of talent available across sectors by all partners adhering to the principles of equality of opportunity, inclusion and diversity in their own activity and in the way partnership groups are set up.

52 52 Action Plan 11. Action Plan 11.1 Introduction This Action Plan comprises the 45 actions agreed by partners and partnerships. These will ensure delivery of the West Midlands Economic Strategy under the four Pillars and Powerful Voice for the Region. The actions are identified in broad terms and then show the key steps to be completed over the next three years. The Action Plan also identifies which regional partnership body or organisation has responsibility for implementing each action. Many actions have been agreed by regional partnerships as part of their detailed work. In undertaking this work, partnerships have identified specific organisations, resources and projects supporting the wider actions listed here which will deliver the outputs and outcomes required to meet the Vision. A colour coding is used in the Action Plan to illustrate the linkages between the priority actions and the three key Regeneration Zones Business Clusters High Technology Corridors regional delivery mechanisms. Actions without colour coding have no specific activity for the key regional delivery mechanisms (e.g. are region-wide initiatives) Monitoring and Review The Action Plan will be reviewed on an annual basis. Advantage West Midlands is not the lead partner for all the actions, but is engaged in the majority of the partnerships taking lead roles, and will therefore be directly leading on the co-ordination of work to deliver the Action Plan. The Agency will, therefore, take on the role of reviewing the Action Plan. Each lead organisation or partnership will be asked by Advantage West Midlands to report on: Progress with the action; Achievements against targets; Achievements in relation to baseline data (as set out in Annex A) and the State of the Region report; and Any changes to actions, as a result of review or additional research. They will also be required to roll the Action Plan forward by a year. Advantage West Midlands will produce an annual monitoring report, based on information provided by lead organisations and partnerships. This will be published on the Advantage West Midlands website, and will assist the Regional Assembly s scrutiny of the progress of the West Midlands Economic Strategy. The first annual monitoring report will be produced early in 2005 and the first updated, rolled-forward Action Plan will be agreed between Advantage West Midlands and the Regional Assembly at that time. The content and format of the annual monitoring report may need revision to fulfil government requirements for measurement of regional economic activity. Discussion is currently underway to explore the establishment of common performance monitoring across all the regions, and this is likely to apply from April 2005 onwards.

53 Action Plan: Pillar 1 53 PILLAR 1: Developing a Diverse and Dynamic Business Base Action No. Section No. Priority Action Lead Partner Next Steps Develop an enterprise culture that encourages people from underrepresented groups (including women, young people, ethnic minorities and disabled people) to be able to become part of this culture.* Regional Entrepreneurship Group, Minority Ethnic Business Forum and Regional Women and Enterprise Group. Develop an action plan to address the priority areas. (2004). Develop and implement a young enterprise and entrepreneurship framework. (2004). Complete and implement an action plan to encourage the formation and development of businesses led by women, including an action plan for the provision of affordable childcare. (2006). Further tailor the work, accessibility, and relevance of business support to existing businesses and new start-ups from minority ethnic communities. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Create a supportive environment that helps grow manufacturing enterprise.* The Beacon Manufacturing Group. Develop further Regional Centres of Excellence, building on the success of the Manufacturing Advisory Service and the Manufacturing Foundation. (2006). Extend the modernisation and diversification programmes to all the established clusters. (ongoing). Develop a manufacturing best practice region. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Integrate support to improve the uptake of e-business applications.* ICT Steering Group. Implement the Regional e-business Development Initiative to support the adoption and progression of e-business activity to increase access to broadband technologies and online services. (2004). Continue to develop the Regional E-Portal ( as a focus for collaborative online networking, building online partnership and encouraging SME inclusion, particularly within priority clusters and excluded business communities. (ongoing). * Priority Actions with an asterisk (*) indicate actions which cover the themes of the Enterprise Framework, which is overseen by the Enterprise Board (see section 4.2). Regeneration Zones Business Clusters High Technology Corridors

54 54 Action Plan: Pillar 1 Action No. Section No. Priority Action Lead Partner Next Steps Implement a coherent programme to support rural renaissance.* Regional Rural Affairs Forum, Rural Accord Partners, and Rural Business Advisory Group. Complete the development of an Agricultural Export Centre of Excellence and the Royal Agricultural Society of England s Rural Enterprise Park at Stoneleigh. (2004). Encourage and support farmers and rural businesses to take advantage of the economic benefits of the England Rural Development Plan. (ongoing). Develop the economic benefits from the outstanding environmental assets of the region, particularly the Areas of Outstanding Natural Beauty. (ongoing). Review current rural business support activity and develop and implement a model providing outreach advice, linking and integrating farm-based advice and other services available through Business Links and the Rural Development Service. (2006). Develop projects to take advantage of regional expertise in biomass, from both fuel crops and waste. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Develop a regional approach to tackling crime against business.* Regional Business Crime Partnership. Create a Regional Business Crime Reduction Centre based at Birmingham Chamber of Commerce. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Develop a strategy to encourage business start ups and to improve survival rates, including the use of business incubation.* Regional Business Start Up Group and Regional Incubation Group. Support business start-up including spin-out activity from higher education institutions, research centres and firms in clusters and follow-through post-incubator support. (ongoing). Develop a range of incubation facilities to support generic and specialist business start-up needs, linked to cluster development. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps 7. (see also Action 39) 4.2 Ensure mainstream business support helps to develop a stronger base, raise the profile and support the growth of sustainable social enterprises.* Regional Social Enterprise Network and Regional Finance Forum. Complete development of and launch Social Enterprise Framework and Action Plan. (2004). Ensure the provision of specific support through mainstream business support agencies. (ongoing). Improve social enterprises ability to bid for contracts through tailored business support. (ongoing). Have in place a comprehensive suite of start-up and expansion finance for social enterprises and associated business/ investment readiness support. (2005). * Priority Actions with an asterisk (*) indicate actions which cover the themes of the Enterprise Framework, which is overseen by the Enterprise Board (see section 4.2).

55 Action Plan: Pillar 1 55 Action No. Section No. Priority Action Lead Partner Next Steps Increase the supply of Regional Risk Capital and improve access to finance for SMEs and middle-sized firms.* Regional Finance Forum. Have in place new funds to meet identified gaps in existing provision, including small loan finance though the development of Community Development Finance Institutions, an early growth fund to provide risk capital up to 50,000 per investment and a (circa 50 million) Advantage Enterprise and Innovation Fund to fill the equity gap of up to 2 million. (2004). Enhance the range of investment readiness services in the region by creating an 8 million programme of awareness raising, education, support for the development of complex financial packages and post-investment mentoring, in particular to address difficulties facing specific types of businesses, including black and minority ethnic businesses, and those from disadvantaged groups and communities. (2004). Co-ordinate use of the existing system of national grant schemes (including Regional Selective Assistance and Enterprise Grant) and any future changes to the system to ensure they meet the needs of the region s businesses. (ongoing). Further develop the Access to Finance website a full virtual one-stop shop for applying online for public sector funding ( (ongoing). Establish a Local Business Exchange for the region to provide an alternative to the main markets for small and medium-sized companies to raise both equity and fixed income capital in a cost-effective way. (2005). Build on the pilot business turnaround scheme to ensure early warning and provide support for viable businesses with temporary difficulties. (2005). * Priority Actions with an asterisk (*) indicate actions which cover the themes of the Enterprise Framework, which is overseen by the Enterprise Board (see section 4.2). Regeneration Zones Business Clusters High Technology Corridors

56 56 Action Plan: Pillar 1 Action No. Section No. Priority Action Lead Partner Next Steps Develop an integrated approach to increase innovation and knowledge transfer into the business base to create higher added value products and services, through implementation of an updated Regional Innovation Strategy.* Regional Innovation Strategy Group. Company development providing the right skills and confidence for our people to lead and create innovation; building businesses capacity to become intelligent and visionary customers of the knowledge base; encouraging the use of foresight and innovation benchmarking tools; improving take-up of design resources in the region; and developing specialist advisers to help business make the most of opportunities. (ongoing). Resource development providing access to specialist equipment; delivering premises and services for early stage and grow-on businesses; access to resources to support innovation and growth; and increasing Intellectual Property (IP) management and exploitation. (ongoing). Knowledge development transferring the full potential of the region s science, technology and knowledge base into the private sector; generating new knowledge to support the development of priority clusters and technology corridors; encouraging greater business-tobusiness knowledge transfer; and making all of these resources more easily accessible. (ongoing). Engaging with and developing the strategic vision of the end user providing innovation support programmes focused on the needs of the market, and particularly the future market; engaging the media in an active campaign to raise public awareness of all aspects of innovation; and making innovation stick by creating innovation champions within the region. (ongoing). Investigate the need for a West Midlands Science Council or alternative structure to improve communication between business and the knowledge base, implement the agreed framework and put in place the agreed solution. (2005). Action No. Section No. Priority Action Lead Partner Next Steps 10. All (see 9.3) Implement the overall Cluster Action Plan through targeted interventions selected by business to improve the future prospects for Business Clusters. Ten Cluster Opportunity Groups. Cluster Opportunity Groups develop full strategies for each Business Cluster. Agree within the next six months targets for each Business Cluster against the strategies and their monitoring and evaluation. (2004). Develop centres of cluster excellence in design and technology and business support and establish liaison with High Technology Corridors. (2004). Implement best practice in cluster activity across all Business Clusters through sharing of research and information. (ongoing). * Priority Actions with an asterisk (*) indicate actions which cover the themes of the Enterprise Framework, which is overseen by the Enterprise Board (see section 4.2).

57 Action Plan: Pillar 1 57 Action No. Section No. Priority Action Lead Partner Next Steps 11. All (see 9.4) Implement a planned programme for the three High Technology Corridors to catalyse high technology development. Three High Technology Corridor Partnerships. Partnerships create full strategies, projects and targets for each Corridor. (2004). Deliver the catalyst projects in each Corridor. (ongoing). Establish links between Cluster Opportunity Groups and Corridors in order to support Corridor development. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Implement the regional inward investment strategy to ensure that the region continues to attract new businesses in the ten Business Clusters. Advantage West Midlands and Sub-regional Investment Partnerships. Increase overseas marketing activity to ensure that inward investment plays its part in cluster development within the context of the Regional Marketing Strategy. (ongoing). Systematically raise the region s profile in new markets, specifically those covered by the recently opened offices in Brussels, Paris, Toronto and Washington DC. (ongoing). Review and refine operational protocols between Advantage West Midlands and the East Midlands Development Agency now that British Midlands joint activity covers the whole of Asia-Pacific and North America. (2004). Implement a number of specific actions required to attract inward investment into our rural areas. (2005). Action No. Section No. Priority Action Lead Partner Next Steps Deliver the International Trade Strategy by ensuring that businesses are supported to internationalise themselves.* Regional International Trade Strategy Group. Link the work of UK Trade and Investment (UKTI) directly with that of Cluster Opportunity Groups to ensure that UKTI s services are geared to meet the international needs of West Midlands businesses. (ongoing). Put in place a specific programme to assist businesses to take advantage of trading opportunities presented by enlargement of the EU Single Market. (2004). Develop the role and work of the NEC International Office. (ongoing). * Priority Actions with an asterisk (*) indicate actions which cover the themes of the Enterprise Framework, which is overseen by the Enterprise Board (see section 4.2). Regeneration Zones Business Clusters High Technology Corridors

58 58 Action Plan: Pillar 1 Action No. Section No. Priority Action Lead Partner Next Steps Create and deliver a regional approach to environmental business practice Government Office for the West Midlands and Environment Agency. Develop a Regional Energy Strategy as required by the Energy White Paper. (2004). Deliver the Environmental Business Growth Action Plan. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Deliver strategic framework and approach to enable the West Midlands to gain competitive advantage from sustainable development technology. Advantage West Midlands, Birmingham University and Business Council for Sustainable Development. Establish a national fuel cell centre. (2004). Create and implement an action plan for international partnerships to advance work on fuel cell technology. (2006). Create a regional industries symbiosis centre. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Implement the West Midlands Visitor Economy Strategy. West Midlands Strategic Tourism Body. Create a new Regional Visitor Economy Strategy, which defines the region s priority issues. (2004). Develop projects to enhance the visitor economy in the region, particularly concentrating on skills development, quality product and consumer experience, marketing, research and information, the business visitor economy, rural innovation, ICT development and interactive marketing, improved access and quality. (ongoing). Launch and deliver the E-tourism Action Plan. (2004). Deliver the Quality in the West Midlands programme. (2004). Ensure a linkage between the Visitor Economy Strategy and the Regional Marketing Strategy, ensuring that branding and marketing, geographically and thematically, in the region and nationally are coherent. (2005). Secure the future of Visit Heart of England as a key regional organisation to help deliver the Regional Visitor Economy Strategy. ( ). Develop a coherent plan for an international dimension to tourism activity. (2005).

59 Action Plan: Pillar 2 59 PILLAR 2: Promoting a Learning and Skilful Region Action No. Section No. Priority Action Lead Partner Next Steps 17. All Develop and implement the Framework for Regional Employment and Skills Action (FRESA). FRESA Executive Group. Analyse progress against the existing FRESA and undertake detailed assessment of regional and sub-regional issues. (2004). Develop proposal for a new Regional Skills Partnership and ensure FRESA partnerships and work are integrated into the new approach. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Implement initiatives to increase basic skills, particularly in Regeneration Zones, to tackle barriers to employment and address recruitment shortages in key sectors. Skills for Life Strategy Group. Complete the launch of a range of initiatives to improve basic skills levels in literacy, numeracy and ICT. (2006). Work with key partners including the Learning and Skills Councils and the TUC to support the development of learning in the workplace to provide opportunities for all to reach their full potential. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Design and implement a programme to address ICT skills shortages and gaps. ICT Learning Task Group. Implement the Regional e-learning Strategy and develop other flexible learning opportunities to increase access to learning, particularly in rural areas. (2005). Action No. Section No. Priority Action Lead Partner Next Steps Deliver a co-ordinated approach and programmes to address higher level skills shortages and skill gaps, and improve access to mature/adult apprenticeships in the workplace. Partnerships for Progression, Aim Higher Regional Steering Group, and Six West Midlands Learning and Skills Councils. Develop and put in place initiatives to support the progression of individuals from NVQ Level 3 to NVQ Level 4 and above. (2004). Work with key partners to support the development of specific vocational guidance and labour market information to raise awareness of high value employment opportunities. (ongoing). Increase access to Modern Apprenticeships and develop Adult Apprenticeship Programmes. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Deliver a co-ordinated programme to meet skill needs in Business Clusters. Six West Midlands Learning and Skills Councils. Through regional lead arrangements and working with the newly formed Sector Skills Councils, provide and support the development and delivery of Business Cluster specific skills projects to meet employer-identified needs. (ongoing). Regeneration Zones Business Clusters High Technology Corridors

60 60 Action Plan: Pillar 2 Action No. Section No. Priority Action Lead Partner Next Steps Develop a co-ordinated approach to delivering improved innovation skills in Business Clusters and higher education institutions (HEIs). West Midlands Higher Education Association (WMHEA) and Rural Skills Development Group. Develop projects to support the development of innovation skills across clusters. (ongoing). Rural Skills Development Group to develop and ensure delivery of proposals for addressing the particular workforce development and provision needs of rural areas. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Inspire and engage leaders and managers to develop the skills and competencies to stimulate a step-change in enterprise performance. Regional Leadership and Management Skills Group and Succession Planning Steering Group. Develop an action plan to address the priority areas. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Improve access to and suitability of training especially in management skills for SMEs to encourage greater participation and capacity to manage change (including not-for-profit organisations). Regional Leadership and Management Skills Group. Produce and implement the regional action plan (as 23 above) including the implementation of key programmes to improve leadership and management skills levels to address gaps identified by employers, particularly in the ten Business Clusters. (2004). Fully implement the Gateway to Management Qualifications initiative, which aims to increase the number of managers with relevant business management training and qualifications that are key to business competitiveness and employment growth. (2006). Monitor progress and assess recommendations relating to the developing government strategy on Voluntary and Community Sector Workforce Development. (2004). Establish a new Regional Group to champion management development and increase awareness of the importance of such skills across the region. (2005). Develop innovative approaches on focused short courses for managers. (2004). Develop environmental training programmes for farmers linked to agri-environment schemes using funding available through the England Rural Development Plan. (2005). Action No. Section No. Priority Action Lead Partner Next Steps (see also Action 1) Implement an Entrepreneurship Strategy, especially to engage young people and other (traditionally excluded) groups in developing the skills required to start up a small business. Regional Young Entrepreneurship Group. and Local Education Authorities. Develop and implement a young entrepreneurship and enterprise framework. (2004).

61 Action Plan: Pillar 3 61 PILLAR 3: Creating the Conditions for Growth Action No. Section No. Priority Action Lead Partner Next Steps Champion the delivery of the Regional Transport Strategy and Regional Transport Priorities. Regional Assembly Transport Partnership. Develop the Regional Assembly Transport Partnership as a focus of advocacy, lobbying on transport priorities, research and support in improving the region s transport system. (ongoing). Ensure the Regional Transport Strategy in new Regional Planning Guidance is consistent with the delivery of Delivering Advantage. (ongoing). Refresh and republish the Transport Priorities document in the light of the Regional Transport Strategy. (2005). Examine and implement regional actions based on the results of a national study into innovative ways of funding the delivery of the transport priorities. (2006). Action No. Section No. Priority Action Lead Partner Next Steps Co-ordinate the upgrading of ICT infrastructure resources, networks, data and applications to make broadband available to all businesses and 97% of households in the region by the end of West Midlands Broadband Partnership. Use the West Midlands Broadband Company Ltd to secure a regional broadband backbone for the region. (2004). Commence marketing to increase demand beyond levels at which communications providers will invest to deliver broadband. (2004). Drive up usage of e-business in the region by interaction with SME businesses through the REDI programme. ( ). Undertake rural and remote area interventions which will procure broadband access coverage in areas of the region where real demand exists, using established and innovative technology solutions from a variety of suppliers. ( ). Develop the regional e-learning and e-government agenda over the next 12 months. (2004). Monitor broadband technology developments and formulate appropriate policy measures which will maintain or increase West Midlands broadband competitive advantage. (ongoing). Regeneration Zones Business Clusters High Technology Corridors

62 62 Action Plan: Pillar 3 Action No. Section No. Priority Action Lead Partner Next Steps Implement a strategic land use programme. West Midlands Regional Assembly and Advantage West Midlands. Identify and implement strategic interventions in land and property to support a dynamic and diverse business base and regenerate communities (consistent with emerging Regional Planning Guidance). (ongoing). Review brownfield land and promote reuse opportunities across the region including redundant rural buildings (consistent with emerging Regional Planning Guidance). (2005). Develop projects to assemble and market the Major Investment Site at Wobaston Road (Wolverhampton/S.Staffs). (2005). Identify and develop Regional Investment Sites (one to serve each Regeneration Zone and High Technology Corridor). (2005). Create a Centre of Excellence in Land Reclamation to develop projects to harness the region s significant experience in reclaiming difficult sites. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Implement the Regional Planning Guidance framework and the WMES Actions, ensuring alignment. Regional Planning Body and Advantage West Midlands. Prioritise actions to support both strategies. (2004). Report on progress on both action frameworks. (annual). Action No. Section No. Priority Action Lead Partner Next Steps Develop and introduce design standards to improve the built environment in urban and rural areas. Advantage West Midlands, RegenWM Board, West Midlands Regional Regeneration Partners and CABE and other Regional Design Partners. Deliver projects to redevelop specific flagship sites such as the Fort in Birmingham. (ongoing). Develop the role of the Regeneration Centre of Excellence (RegenWM) to fully become a one-stop shop for regeneration advice and the regional portal for regeneration-related good practice. (2006). Develop a Design Framework for the Region and implement key design actions/processes emanating from this. (2006). Promote and support the role of Advantage West Midlands Regional Design Champion in demonstrating the benefits of good design in the region. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Support and develop two Urban Regeneration Companies, one in Sandwell and one in Walsall, to coordinate redevelopment and secure new investment in declining urban areas; investigate the potential of other special purpose vehicles elsewhere in the region. Advantage West Midlands, Urban Regeneration Companies, Regeneration Zone Boards and Pathfinder Boards. Establish the management and delivery arrangements for the Walsall Urban Regeneration Company. (2004). Investigate the most appropriate delivery vehicle for North Staffordshire and implement the framework agreed with partners. (2004).

63 Action Plan: Pillar 3 63 Action No. Section No. Priority Action Lead Partner Next Steps Develop potential of the West Midlands canal network for rural development, urban regeneration and tourism. Local Authorities, British Waterways, and Inland Waterways Association. Seek World Heritage Site status for the Birmingham and Black Country Canal Navigation systems. (2005). Create a coherent tourism and regeneration plan for canal related activity within the Black Country and Birmingham. (2004). National Waterways Festival to be held in Burton upon Trent. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Develop, implement and review the West Midlands Regional Housing Strategy (RHS). Regional Housing Board, Regional Housing Partnership and Pathfinder Boards and other regional partners. Influence national, regional and local policies and strategies to ensure alignment with the RHS and achieve a co-ordinated approach to housing strategy development. (ongoing). Identify next steps and lead partners to take forward and deliver on the priority actions in the first Regional Housing Strategy. (2004). Identify regional priorities for investment and influence resource allocations. (annual). Support the development of the Housing Market Renewal Area Pathfinders in Birmingham (Sandwell) and North Staffordshire and identify key partner actions and leads. (2005). Develop distinctive approaches to address affordable rural housing through the market towns initiative and Rural Regeneration Zone. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Implement the Water Resources Strategy, as identified in the document Water resources for the future: A strategy for the West Midlands. Environment Agency. Promote efficient use of water to ensure domestic, industrial and agricultural uses realise sustainable economic, social and environmental benefits through implementing the strategy. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps Promote environmentally beneficial farming in the region. Regional Rural Affairs Forum and Regional Biodiversity Partnership. Increase awareness among the region s farmers and develop multi-farm schemes to increase the take-up of agri-environment schemes and other opportunities within the England Rural Development Plan (ERDP). (2004). Encourage farming practices which are biodiversity friendly and protect natural resources. (ongoing). Regeneration Zones Business Clusters High Technology Corridors

64 64 Action Plan: Pillar 4 PILLAR 4: Regenerating Communities Action No. Section No. Priority Action Lead Partner Next Steps 36. All (see 9.2) Deliver the Regeneration Zones Initiative. Six Regeneration Zone Boards and Advantage West Midlands. Agree and realise Zone Implementation Plans. (2006). Create and implement a co-ordinated programme of "bridges to success" in each Zone (covering training, business start-up support, transport, information, childcare provision, aspirations). (2006). Action No. Section No. Priority Action Lead Partner Next Steps 37. All (see 9.6) Implement Market Towns Initiative across the region. Market Towns Task Group and Partnerships. Further develop and widen the role of the Regional Market Towns Forum to enable towns to network and learn from experience. (2004). Develop and implement a package of regeneration activity for each of the market towns supported by the initiative. (2006) Identify at least one key regeneration site in each of the 20 priority towns in the Market Towns Initiative. (2004). Action No. Section No. Priority Action Lead Partner Next Steps 38. All (see 9.6) Address the issues identified in the Economic Interventions in Towns study Sub-regional economic partnerships, Local Strategic Partnerships Identify and agree specific intervention criteria. (2004). Sub-regional Economic Partnerships/Local Strategic Partnerships to draw up Action Plans for towns/groups of towns. (2004). and Advantage West Midlands. Co-ordinate understanding and relevance of study results for regional funding programmes. (ongoing). Ensure that study results are understood and reflected in regional strategies for housing, transport, tourism and culture. (ongoing). Deliver the existing Coalfields programme in conjunction with English Partnerships managers and examine the potential of the programme for community-based activity. (ongoing). Action No. Section No. Priority Action Lead Partner Next Steps (see also Action 7) Improve the provision of information and support to generate increased interest in and formation of social enterprises. Regional Social Enterprise Network. Establish effective social enterprise support networks to promote the sector. (2005). Develop and run pilot social enterprise projects to test models of best practice across the region, focusing on activity within Regeneration Zones. (2006).

65 Action Plan: Pillar 4 65 Action No. Section No. Priority Action Lead Partner Next Steps Develop the role of NHS and other large public sector bodies as key employers and providers of training. Government Office for the West Midlands, Three Strategic Health Authorities and Local Authorities. Support Regional Health Partnership. (ongoing). Cultural sector to develop and run a pilot scheme for workforce development, training and recruitment. (2006). Develop and run local procurement schemes. (2006). Action No. Section No. Priority Action Lead Partner Next Steps Promote the effective engagement of the region s voluntary and community sector in regeneration activity and decision making. Regional Action West Midlands (RAWM), EMBRACE West Midlands, Business In Communities, Government Office for the West Midlands and Advantage West Midlands. Develop best practice and support networks for community empowerment and strategies. (ongoing). Develop best practice and support to ensure effective engagement in partnerships by the black and minority ethnic voluntary and community sector. (ongoing). Launch a programme of activity within Regeneration Zones which promotes links between local communities and businesses. (ongoing). Explore the potential for the role of food based initiatives in urban and rural areas and put projects in place. (ongoing) Launch a five-year programme to support the engagement of black and minority ethnic communities in regeneration activity within the region s seven Neighbourhood Renewal areas. (2004). Develop the role of the Regional Assembly Social Inclusion Partnership in creating a coherent crosssector approach to economic inclusion issues. (2005). Regeneration Zones Business Clusters High Technology Corridors

66 66 Action Plan: Providing a Powerful Voice for the Region Providing a Powerful Voice for the Region Action No. Section No. Priority Action Lead Partner Next Steps Implement a marketing and image programme selling our strengths nationally and internationally. Advantage West Midlands and West Midlands Regional Assembly. Launch the agreed new description of the West Midlands to key audiences within and beyond the region. (2004). Commence specific campaigns addressing each audience against the backdrop provided by the new description. (2004). Publish the first progress report against the objectives of the Regional Marketing Strategy. (2004). Support the development of products, venues and events to exploit more fully the region s international cultural offer. (ongoing). Promote Birmingham International Airport as a gateway to the region. (ongoing). Support the development of Birmingham as an international city for business and visitors. (ongoing). Create a coherent approach to the use of signage at international gateways to the region. (2005). Action No. Section No. Priority Action Lead Partner Next Steps Deliver the agreed mechanisms to share information and intelligence between partners and strategies. West Midlands Regional Observatory. Prepare State of the Region reports. (2004 and annually). Benchmark the region against leading European and international regions. (ongoing). Investigate and report on the implications for policy of the changing demographic profile of the region. (2004). Action No. Section No. Priority Action Lead Partner Next Steps Develop priorities for working with other regions on the key economic issues for this region. Advantage West Midlands, Government Office for the West Midlands and West Midlands Regional Assembly Prepare cross-england case for input to government review of regional economic imbalances and Comprehensive Spending Review. (2004). Establish the Midlands Aerospace Alliance in partnership with the East Midlands. (2004). Examine the potential economic implications for the West Midlands of the Milton Keynes South Midlands Growth Area proposal contained in the Sustainable Communities Plan. (2004). Create proposal for regional benchmarking in regional competitiveness across Europe. (2004).

67 Action Plan: Providing a Powerful Voice for the Region 67 Action No. Section No. Priority Action Lead Partner Next Steps Implement the European Strategic Framework and Strategy. Regional Assembly s European and International Affairs Partnership. Develop the interim strategy into an agreed European Strategy following the visioning event in December (2004). Create links with rural areas in Europe to exchange best practice in the development of rural economic opportunities. (ongoing). Develop opportunities for exchange programmes for young professionals and graduates from West Midlands companies and equivalent companies in European regions. (2005). Put in place resources and capacity to access European funding post 2006 in line with regional priorities. (2005). Develop and implement structured, proactive initiatives for influencing European regional policy informed by research and information with current priority given to Cohesion policy. (ongoing). Maximise the opportunities for West Midlands companies from the enlarged European Single Market, through the International Trade Strategy. (ongoing). Determine and implement priorities for new strategic links between the West Midlands and current EU Member States/Accession States to deliver the European Strategy. (2006). Further develop regional partnerships, including the West Midlands in Europe partnership in Brussels and promote the region s interests in Europe. (ongoing). Launch new Brussels Office. (2004). Regeneration Zones Business Clusters High Technology Corridors

68 68 Annex A ANNEX A Measuring Progress and Impact A1 Introduction This Annex provides: Baseline data which will allow annual progress towards the Vision to be monitored; and Data which will enable the impact of the three Key Delivery Mechanisms to be monitored. This data will be updated on an annual basis and will be incorporated into the annual progress report to be produced by Advantage West Midlands (as outlined in section 11.2). A2 Baseline data relating to the Vision The overarching measure of progress towards achieving the Vision is to raise the trend growth rate of Gross Value Added (GVA) per capita above the national average, by Thus, the GVA will be monitored on an annual basis and progress analysed in the annual monitoring report. Further monitoring of progress towards the Vision will be undertaken by analysing trends in indicators which reflect upon each of the key themes of the Strategy. The indicators are presented in Table A1 (opposite), which provides the baseline data to show the West Midlands and UK position at the end of During the period covered by Delivering Advantage (2004 to 2010), data on these indicators will be collected and analysed to show the movement in relation to the baseline data. The Strategy s target is that, by 2010, the region should be above the UK average (where the baseline is below the average) or should maintain the differential with the UK average (where the region s baseline is already above the national average). Where the annual trend is not in line with the target, corrective action will be taken by the appropriate regional organisations. The first annual State of the Region report will be produced by the West Midlands Regional Observatory in early This will provide a more detailed baseline report for measuring achievements in the region. The opportunity will be taken to review the baseline indicators in Table A1 once the State of the Region report is published.

69 Annex A 69 Table A1 Indicators and 2003 baseline data for each theme of the Vision Indicators Baseline data WM England/UK Invest 1 Levels of business innovation % of companies reporting innovative activity from 1998 to Investment levels total project successes in Total exports % of national value in Productivity GVA per head in Productivity growth in 2000/ Environmental management standards number of businesses with ISO standard in Business survival rates % of companies founded in 1998 which survived for the three years to % % 13, % % 47.0% % 14, % 2, % Work 8 % of under 19 qualified to NVQ 2 in % of workforce qualified to NVQ 4+ in % of workforce qualified to NVQ 3+ in % of workforce without qualifications in ILO unemployment rate in October Long-term unemployment % of claimants unemployed for more than 6 months in October Self-employment levels % of 16+ who are self-employed in Wage/income levels gross weekly pay in % 25.0% 46.0% 12.0% 6.0% 34.6% 5.8% % 29.0% 50.0% 10.0% 5.0% 33.5% 7.4% 470 Learn 16 Educational performance % of 15 year olds getting A* to C at GCSE in Work destination of graduates % of students completing university in 2001 who are now either employed or in further study 18 % of school leavers staying on to FE/structured training in RAE ratings % of departments achieving 5 or 5* rates in Investment in training by employers % of companies with IiP in June % 85.0% 83.6% 38.1% 2.18% 53.0% 85.0% 84.4% 38.5% 2.0% Visit 21 Visitor numbers by type, length of stay gross number of trips (millions) in Visitor spend by visitor type gross spend ( millions) in Visitor perceptions and satisfaction rates visit exceeded expectations in 2002 (average score of satisfaction from 1 (poor) to 10 (high)) 24 Share of tourism expenditure by overseas visitors in the UK in 2001 million and % of UK total 120 4, % Not available Not available Not available 11,167 Live 25 Housing affordability, price/earnings index average house price compared to average salary in Accessibility to broadband % of households and businesses with access to broadband in Congestion/journey times mean travel time to work (minutes) in Congestion/journey times % of average trunk road speed achieved at AM peak in Population change between 1991 and Indices of deprivation % of wards in bottom 10% of UK wards in % % 0.7% 8.7% % % 2.4% Not available

70 70 Annex A A3 Monitoring the impact of the Key Delivery Mechanisms In addition to monitoring the overall progress of the West Midlands towards its Vision, we need to measure the contribution being made by the three Key Delivery Mechanisms towards this progress. In order to do this, it is necessary to identify those factors that the delivery mechanisms are expected to improve. These factors are: For the Business Clusters productivity and employment levels; For the Regeneration Zones (RZ) unemployment and numbers of adults with no qualifications; and Table A2 illustrates what outcomes in terms of productivity and employment levels could be expected in 2010 if there were no activities delivered through the Cluster Action Plan. The target is to demonstrate value added through the cluster activities in showing improved productivity and employment changes compared to those set out in Table A2. Thus, for example, in the Tourism and Leisure Cluster, a 6% increase in productivity can be expected, coupled with a 9% increase in employment levels. The aim for the activity in that Cluster is, therefore, to have an increase in productivity that is greater than 6% and an increase in employment greater than 9%. For the High Technology Corridors employment and GVA. It is possible to forecast the expected changes in each of these factors by These changes are shown, for each of the delivery mechanisms, in Tables A2, A3 and A4. In effect, the changes provide baseline figures as to what could be expected if none of the activities planned under the delivery mechanisms took place. Table A2 Forecasted changes by 2010 in (a) productivity and (b) employment levels, without any Cluster Plan activities Business Cluster Productivity increase by 2010 Change in employment levels by 2010 Established Clusters Building Technologies 25% 6% fall Food and Drink 18% 3% fall Tourism and Leisure 6% 9% increase High value-added Consumer Products 10% 9% fall Transport Technologies 31% 23% fall Growing Clusters Specialist Business and Professional Services 27% 14% increase Information Communication Technologies 24% 5% increase Environmental Technologies 26% 16% fall Embryonic or Aspirational Clusters Screen and New Media for Education and Entertainment 9% 12% increase Medical Technologies 25% 9% fall Source: Experian Business Strategies, 2003

71 Annex A 71 Table A3 shows what outcomes in terms of unemployment and number of adults with no qualifications could be expected by 2010, if none of the Zone activities took place. The target is to show added value through the Zone activities by improvements upon the data in Table A3. As an example, in the Rural Zone, the forecasts suggest a 6% increase in unemployment and a negligible change in the number of adults with no qualifications. The Zone activity delivered under the Strategy should improve upon these forecasts by Thus, for example, the North Staffs Zone can expect a fall in unemployment of greater than 3% and to have reduced the number of adults with no qualifications. Table A3 Forecasted changes by 2010 in (a) unemployment and (b) numbers of adults with no qualifications, without any Regeneration Zone activities Regeneration Zone Change in unemployment by 2010 Change in numbers of adults with no qualifications by 2010 North Staffordshire 3% fall Negligible change North Black Country 19% fall 4% fall South Black Country 11% fall Negligible change East Birmingham 13% fall 3% fall Coventry and Nuneaton 21% fall 5% fall Rural 6% increase Negligible change Source: Experian Business Strategies, 2003 For each of the High Technology Corridors, the target is to exceed the forecasted improvements for 2010 figures in employment levels and GVA (as set out in Table A4). Thus, for example, the Central Technology Belt can expect to have an increase in employment above 2% and for GVA to have increased by more than 22%. Table A4 Forecasted changes by 2010 in (a) employment levels and (b) GVA, without High Technology Corridor activities High Technology Corridor Change in employment levels by 2010 Change in GVA by 2010 Central Technology Belt (A38) 2% increase 22% increase Wolverhampton to Telford 2% fall 17% increase Coventry, Solihull, Warwickshire 4% increase 23% increase A4 Conclusion As set out in section 11.2, Advantage West Midlands will produce an annual monitoring report on progress. This will include progress against the Vision indicators and with the key delivery mechanisms. The first annual monitoring report will be produced early in 2005.

72 72 Annex B ANNEX B Assessment of Progress on Sustainability B1 Introduction Advantage West Midlands has used Arups to undertake sustainability appraisals for the West Midlands Economic Strategy (WMES) as it has been developed. Arups have so far undertaken three appraisals: of the original Creating Advantage combined with Agenda for Action (2002); of the consultation draft of Delivering Advantage (summer 2003) and this Strategy (autumn 2003). These have been used to show where further development of thinking, policies and actions have been required by partners to ensure the commitment to sustainable development is turned into reality. The sections below summarise the progress made over the three appraisals, and highlight issues for further consideration. They show how Delivering Advantage fares against the Government s four objectives for sustainable development. Arups Sustainable Project Appraisal is based on a four-quadrant model economic quadrant, environmental quadrant, social quadrant and natural resources quadrant structuring the issues of sustainability into a robust framework, from which an appraisal of performance can be undertaken. B2 Overall Summary This assessment shows that overall this Strategy performs well against the range of indicators used for appraisal of performance. It highlights substantial progress made from the original Strategy Creating Advantage published in 1999, through to the subsequent drafts published up to the consultation draft in It identifies Delivering Advantage as being built on that progress, making this Strategy stronger on sustainability. While the economic, social and environmental quadrants show outstanding progress, there remains room for improvement, particularly within the natural resources quadrant. These weak areas have been recognised as the focus for future policy development as part of this Strategy s commitment to sustainable development. B3 Summary of Economic Quadrant The economic quadrant performs well against a range of indicators grouped under five headings. There is clear indication of progress from the initial document (Creating Advantage) through both drafts of Delivering Advantage. Performance has improved on Finance Viability, Globalisation (Competition Effects) and Business Support, Investment in Skills and Quality of Employment (Employment/Skills). Significant factors in accounting for this have been the introduction of the Regional Finance Framework and the Regional Local Business Exchange, together with more detail on Cluster Action Plans, FRESA and the Regional e-learning Strategy. In addition, the three documents have been consistently strong on variables such as Improving Societal and Environmental Performance, R & D/Gross Fixed Capital Formation (Viability), Local Monopoly and Pricing/Diversity and Choice (Competition Effects), Job Numbers (Employment/Skills) and Pecuniary Externalities (Social Benefits/Costs). Weak areas remaining are Transport (particularly public/rural transport), a general lack of conceptualisation (consideration of such things as the circular flow of income, regional multiplier effects and income leakages) which could be used to bolster policies considered under variables such as Outsourcing/Displacement (Viability) together with measures designed to evaluate impacts of such items as public expenditure. Monitoring and policy evaluation imply significant improvements to the regional database dependent on the work of the Regional Observatory.

73 Annex B 73 B4 Summary of Environmental Quadrant There is significant improvement over the three documents (Creating Advantage through to the second draft of Delivering Advantage), though inevitably some weaknesses remain. While this quadrant is not as strong overall as the economic quadrant, there is improvement in Baseline Environment/CO2 and Other Greenhouse Gases (Air Quality), Context and Quality Design (Land Use), Water Management and Water Quality (Water), Habitat Conservation and Biodiversity (Ecology and Cultural Heritage), Appropriate Technology, Environmental Technology and Sustainable Buildings/Construction (Design and Operation) and Green Transportation (Transport). Significant factors accounting for this have been the Regional Air Quality Strategy currently under production, increased emphasis on climate change, the setting up of the Regional Centre for Regeneration Excellence, better links with draft RPG, the production of a Regional Water Strategy, increased emphasis on biodiversity and greater emphasis on sustainable development technology (e.g. mention of the Beacon Manufacturing Group). Treatment of other variables remains unchanged overall with the exception of there being less emphasis on both Public Transport Infrastructure and Freight Traffic in the later documents. Treatment of Environmental Management Systems and Strategic Environmental Assessment/ Ecological Footprint (Design and Operation) remains weak. The developing role of the Regional Observatory will be significant in this area. B5 Summary of Social Quadrant In terms of societal sustainability, the WMES documents have performed consistently well with slightly above average assessment. The WMES documents have remained constant in terms of Inclusion (Community Participation, Decision Making and Partnership Working) but, on the down side, issues of Global Supply Chain and Corporate Social Responsibility remain very weak and pull the overall performance down. Issues relating to Social Cohesion and Vibrancy could be stronger. With regards to Amenity within the West Midlands, little regard has been given throughout the documentation. There has been a slight improvement, with some recognition of the value of landscape and the natural environment in the latest document. Some of the actions relating to tourism have also helped to improve the overall performance. The Regional Housing Strategy is now available, is linked to the latest WMES and improves the position in terms of choice of housing, affordability and linked with employment types. The need to access, and the current lack of, sustainable transport has also been raised in profile, improving the performance of the latest version of the WMES. On the down side, access to education for schoolage children remains poorly addressed. Health and welfare has improved since the initial assessment of the WMES, primarily due to addressing issues of crime and safety and linking in with police initiatives. The latest version of the WMES has identified health as a priority that was previously omitted. The document itself has been subject to a health check, which has improved overall performance. B6 Summary of Natural Resources Quadrant This quadrant was extremely weak in the appraisal of Creating Advantage but has continually improved in the subsequent drafts of the WMES. The WMES previously omitted any reference to the use of water but now contains an action relating to the Regional Water Strategy (to be implemented by the Environment Agency) that has made a significant improvement. The need to reduce the use of natural resources has improved through the activities of the Environmental Cluster and the Industrial Symbiosis project. However, these are very specific one-off projects and a region-wide acknowledgement and endorsement of waste minimisation is missing from the WMES. The overall performance, as far as waste is concerned remains negative. During the review process little has been included on the importance of managing and monitoring energy in the region. The latest version of the WMES refers to the region s impending response to the Energy White Paper, which is a step in the right direction. The WMES documents have improved slightly in highlighting the importance of the natural environment to the economy but could perform better if there were an explicit reference to the need for the protection of these assets for future generations. There has been very positive support of the reuse of brownfield sites, an area that has performed consistently well from Creating to Delivering Advantage. With regards to waste hierarchy, the WMES has improved slightly but is still poor. The formalisation and adoption of the Regional Waste Strategy would greatly improve this aspect of sustainability. Source: Ove Arup Ltd

74 74 Annex C ANNEX C European and National Policy and Strategy Developments Impacting on Delivering Advantage Introduction Delivering Advantage has not been developed in isolation but in the context of European and national policies and strategies that impact on economic development in the region. Set out below are the key policies and strategies that have influenced the Strategy, as well as those in development that will impact on the Strategy and Actions. C1 European At a European level, a number of strategies and emerging high-level debates impact directly on the West Midlands, both in terms of policy and funding. EU enlargement in 2004 Title Common Agricultural Policy (CAP) reform a longterm perspective for sustainable agriculture [More information available at: comm/agriculture/capreform/index_en.htm and Structural Funds [More information available at: State Aid [More information available at: and will impact on all policies and on how the EU itself operates. As a result, several policies are being reviewed: Brief description The EU is changing the way support is given to the farming sector. In particular there will be more emphasis on rural development. The overall aim is to ensure that the CAP responds to the needs and expectations of the public by assuring food quality, environmental responsibility and protection of the countryside. European Structural Fund eligibility will change fundamentally after This is being looked at as part of the Economic and Social Cohesion Policy review. State Aid Regulations prevent member states giving assistance to businesses that can distort fair competition. Existing strategies that are of direct relevance to the Strategy: Title Lisbon Strategy [More information available at: and European Employment Strategy [More information available at: employment_social/employment_strategy/index_en.htm] Sixth Framework Programme for Research and Development ( ) [More information available at: Brief description The Lisbon Strategy is a commitment to bring about economic, social and environmental renewal in the EU. In March 2000, the European Council in Lisbon set out a ten-year strategy to make the EU the world's most dynamic and competitive economy. Under the strategy, a stronger economy will drive job creation alongside social and environmental policies that ensure sustainable development and social inclusion. This Strategy aligns to the Lisbon Strategy in seeking to promote sustained economic growth leading to more and better jobs and greater social cohesion by The programme supports research, technological development and demonstration projects that contribute to the development of the European Research Area.

75 Annex C 75 C2 National At a national level key, policies and strategies include: Title Our towns and cities: the future - delivering on Urban Renaissance [More information available at: Brief description This is the Urban White Paper published by the Office of the Deputy Prime Minister (ODPM) that sets out a framework to co-ordinate action to revitalise urban areas. Our countryside the future a fair deal for rural England [More information available at: This is the Rural White Paper published by the Department for the Environment, Food and Rural Affairs (Defra) that sets out the policies for developing the interdependencies between urban and rural communities and improving the lives of people in the countryside as well as in towns and cities. Your region your choice: revitalising the English regions [More information available at: This is the Regional White Paper published by ODPM. It sets out the Government's plans to decentralise powers and strengthen regional policy, and takes forward the commitment for directly elected assemblies to go ahead in regions where people want them. The Strategy for Sustainable Farming and Food: Facing the Future [More information available at: The Farming and Food Strategy is produced by Defra. It sets out how industry, The Government and consumers can work together to secure a sustainable future for our farming and food industries, as viable industries contributing to a better environment and healthy and prosperous communities. 21st Century Skills: Realising Your Potential [More information available at: This is the Skills White Paper produced by the Department for Education and Skills. The Strategy aims to ensure that employers have the skills to support the success of their business, and that employees have the necessary skills to be both employable and personally fulfilled. The approach is to build a new skills alliance where every employer, employee and citizen plays their part. Sustainable Communities: Building for the Future Action Programme [More information available at: A programme of action, produced by ODPM, to tackle problems in communities in England. It has a particular focus on housing and sustainable land use. Our energy future - creating a low carbon economy [More information available at: This is the Energy White Paper produced by the Department of Trade and Industry (DTI). It defines a long-term strategic vision for energy policy, combining environmental, security of supply, competitiveness and social goals. Innovation Review: Action for the Future [More information available at: The DTI s new strategy for increasing innovation in the UK.

76 76 Annex D ANNEX D Linked Strategies and Associated Documents Table D1 lists other regional strategies mentioned in this document along with associated documents linked to the Strategy together with lead organisations responsible for management and delivery. The associated documents are divided into two categories, strategies and statements, and in their entirety show how delivery will be achieved through the West Midlands Economic Strategy. The documents are currently at different stages of development; some completed, some to be published alongside this Strategy, and others currently under review. Individually these sub-strategies will ensure delivery of the various sections of the West Midlands Economic Strategy. Table D1. Linked Strategies and Associated Documents Regional Strategies Regional Planning Guidance (RPG)/the Regional Spatial Strategy incorporating the Regional Transport Strategy Regional Cultural Strategy (Cultural Life in the West Midlands) The West Midlands Regional Delivery Plan the response to the Strategy for Sustainable Farming and Food The Regional Housing Strategy The Regional Sustainable Development Framework* Lead Partner/Owner: West Midlands Regional Assembly West Midlands Life Regional Rural Affairs Forum Regional Housing Board Sustainability West Midlands Associated Strategies Framework for Regional Employment and Skills Action (FRESA) Enterprise Framework Regional Marketing Strategy Regional Innovation Strategy (RIS) Information and Communications Technology Strategy (ICT) Regional Social Enterprise Framework International Trade Strategy West Midlands Visitor Economy Strategy Regional Access to Finance Framework The West Midlands Language Strategy FRESA Executive Group Regional Enterprise Board Marketing the Region Team Regional Innovation Group ICT Steering Group Regional Social Enterprise Network International Trade Steering Group West Midlands Strategic Tourism Body Regional Finance Forum Advantage West Midlands Associated Statements European Strategic Framework Manufacturing Statement Equality, Diversity and Inclusion Statement Rural Renaissance Statement* Regional Assembly The Beacon Manufacturing Group Regional Assembly Social Inclusion Partnership Regional Rural Affairs Forum * In development

77 Annex D 77 Table D2 illustrates which Strategy sections various documents are related to. Some documents have a direct influence on certain parts of the Strategy and an indirect influence on others. This is indicated by colour shading and keys at the bottom of the table. Table D2. Relationship to the Pillars and a Powerful Voice While it is apparent from the top rows that not all the documents impact directly on all sections of the Strategy, it is clear from the bottom five rows that all statements have a direct impact on all sections of the Strategy. This is because they represent cross-cutting themes that run throughout the Strategy. Pillars and Powerful Voice Associated Documents (Strategies & Statements) Pillar One: Developing a Diverse and Dynamic Business Base Pillar Two: Promoting a Learning and Skilful Region Pillar Three: Creating the Conditions for Growth Pillar Four: Regenerating Communities Providing a Powerful Voice for the Region Strategies Framework for Regional Employment and Skills Action (FRESA) Enterprise Framework Regional Marketing Strategy Regional Innovation Strategy (RIS) Information and Communications Technology (ICT) Strategy Regional Social Enterprise Framework International Trade Strategy West Midlands Visitor Economy Strategy Regional Access to Finance Framework The West Midlands Language Strategy Statements European Strategic Framework Manufacturing Statement Equality, Diversity and Inclusion Statement Rural Renaissance Statement Direct link to Pillar Indirect link to Pillar

78 78 Annex E ANNEX E National and Regional Priorities for Transport Investment This table is a summary of the national and regional priorities for transport investment over a 15 year period that is included in the Secretary of State s proposed changes to draft Regional Planning Guidance. Scheme A programme of measures to achieve behavioural change, including travel awareness, walking/cycling networks, quality public transport, access to regeneration sites Key Delivery Role Local Authority Operators Implementation Period Post-2015 West Coast Mainline Upgrading freight routes to Felixstowe and Southampton Strategic Rail Authority Strategic Rail Authority M6 Toll M6 Widening J11a-J19 M6 East of M6 Toll (J4-M1) M40 J15 Longbridge Improvement M42 Active Traffic Management Pilot M42 Widening J3a-7 M54 M6/M6 Toll Link Active Traffic Management for motorway box A5 Weeford-Fazeley Improvement A38 Streethay - A50 Improvements A45/A46 Tollbar End Improvement A483 Pant & Llanymynech Bypass A500 City Road & Stoke Road Various route management Studies, including the A46 Midland Environment Ltd Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency Highways Agency

79 Annex E 79 Scheme West Midlands Rail Capacity Phase One West Midlands Rail Study - longer term needs Key Delivery Role Strategic Rail Authority Strategic Rail Authority Implementation Period Post 2015 Local congestion charging studies Local Authority Operators Birmingham International Airport, development of services and improved surface access, especially by public transport Birmingham International Airport Source: Office of the Deputy Prime Minister, The Secretary of State s proposed changes to Regional Planning Guidance for the West Midlands, September 2003

80 80 Annex F ANNEX F Three Key Delivery Mechanisms F1 Regeneration Zones The table below shows the population and areas covered by the six Regeneration Zones. These encompass areas of deprivation and areas of major economic opportunity. Regeneration Zone Rural East Birmingham and North Solihull North Black Country and South Staffordshire (Future Foundations) North Staffordshire Coventry and Nuneaton South Black Country and West Birmingham (Arc of Opportunity) Total Population (2001, thousands) ,972 Area Covered The most remote rural parts of the region, including parts of Herefordshire, Shropshire and Worcestershire and covering most of the rural parts of Objective 2 areas. It adjoins mid-wales, much of which is an Objective 1 area and with which there are important links. Most of East Birmingham, extending eastwards from the City Centre, plus small parts of North Solihull. Parts of Wolverhampton and Walsall and a small area of South Staffordshire. The Potteries areas, plus parts of Stoke-on-Trent and Newcastle-under-Lyme. Parts of Coventry, Nuneaton and Bedworth. West of Birmingham City Centre into parts of Dudley and Sandwell. Figure F1. Locations of Regeneration Zones 1 1 North Staffordshire Regeneration Zone 2 North Black Country and South Staffordshire Regeneration Zone 3 South Black Country and West Birmingham Regeneration Zone 4 East Birmingham and North Solihull Regeneration Zone 5 Coventry and Nuneaton Regeneration Zone 6 Rural Regeneration Zone

81 Annex F 81 F2 Business Clusters The table below defines the ten Business Clusters and current employment levels. It also shows the rationale for selection of the ten Business Clusters. The three categories established, growing and embryonic emerge from this analysis. Established clusters have an existing strong employment base and opportunities for modernisation. Growing Clusters have substantial employment and the potential for further growth. The employment base of embryonic Clusters is currently small, but they have been chosen because of the strong potential they have for growth. Cluster Definition and Scale (Core Employment, 2002) Why Chosen? Established Transport Technologies Building Technologies Food and Drink Tourism and Leisure High value-added Consumer Products Commodity metal and polymer component manufacture, metal processes/treatments, electrical/electronic/mechanical sub systems manufacture, vehicle manufacture. (134,000 employees) Commodity materials (cement, timber, etc), commodity manufactured products (tiles, bricks, sanitary ceramics), sub-assemblies (fire alarms and other safety, mechanical lifting and handling equipment, electronic sensors), equipment/tooling manufacture/ hire, design/professional services, construction services. (198,000 employees) Agricultural commodities supply, primary produce processing, secondary processing, wholesaling, distribution, food-processing machinery. (57,000 employees) Attractions, accommodation, catering, public realm management, information services, intermediary services, catering, supplies, leisure goods, presentational arts. (181,000 employees) Tableware ceramics, jewellery, crystal glass, leather goods, clothing, carpets. (48,400 employees) High concentrations of activity centred on volume manufacture of motor vehicles. Opportunities for focusing on higher value-added goods based on new technologies and in luxury cars, motor sports and materials to improve products and product design. Technology transfer opportunities between different transport modes and also in use of new materials to lessen environmental impact. Significant concentrations of activity especially in north of the region associated with commodity materials and low value-added metal goods and ceramics. Need for modernisation. Shift from low value-added commodities to higher value-added systems, with scope to build on developments in materials such as polymers and recycling. Significant force for change in relation to urban regeneration and the transformation of the image of this region. Employment growth recorded in cluster. Consumer tastes and concerns over food safety are key drivers. Both create opportunities for value added through, for example, innovations in prepared ethnic foods and organics. Significant force for change in rural areas through a strengthening of supply linkages. Significant employment growth potential - although highly concentrated in certain parts of the region around specific types of product. Potential for expansion of heritage-related, business and sports-related tourism. Longstanding concentrations of traditional consumer product industries in older urban core. Also craft-based production an important component in some rural economies. Key influence played by design and marketing in the development of a future for these industries around improved value-added opportunities. Process efficiency improvements important in sustaining volume manufacturers.

82 82 Annex F Cluster Growing Specialist Business and Professional Services Information and Communication Technologies Environmental Technologies Definition and Scale (Core Employment, 2002) Legal, accountancy, market research, management consultancy, general business services, advertising, general research. (82,000 employees) Hardware manufacture, hardware consultancy, software, database management, associated components, associated wholesale, telecommunications. (72,000 employees) Environmental products, environmental services (utilities), specialist consultancies, energy production technologies. (42,000 employees) Why Chosen? Significant forecast employment growth centred on Birmingham City Centre. Need for an adequate supply of skilled workers. Focus on specialist activity such as intellectual property rights and construction. Significant national growth and historic regional growth. Significant presence in software especially in southern part of region around Coventry, Solihull, Warwick. Recent successes in hardware but from a low base. Significant mobile investment opportunities. Incubation opportunities associated with region's universities around photonics, nano-technology. Significant economic growth potential worldwide led by global concerns over climate change, diminishing resources and waste management. Diversification opportunity related to skills available within region and technology transfer from existing sectors. Identified by recent DTI work as a regional cluster. Embryonic Screen and New Media for Education and Entertainment Medical Technologies Recorded media manufacture, media production, distribution, content developers, specialist business services, content creators (education community/ museums, etc). (11,000 employees) Polymer/metal components, electronics/ electromechanical sub-assemblies, medical instrumentation, pharmaceutical production, wholesaling. (7,000 employees) Nucleus of highly successful, internationally competitive production companies, including firms focusing on the under-5s market. Strong skills base from traditional broadcasting industry. High rate of growth but from a low base. Full role played by the medical market place on regional industry is understated, given the role played by industries supplying multiple markets, e.g. polymers. Higher education based investments demonstrate a potential for spin-off activity. Opportunities for diversification. Major training region in medical schools and the University of Central England (UCE) for the NHS.

83 Annex F 83 F3 High Technology Corridors In September 2000, consultants were commissioned to work with three Corridor Partnerships to examine the feasibility of corridors by considering both their assets and their potential to support new cluster development activity. The corridors are: The Wolverhampton to Telford Corridor; and The Coventry, Solihull, Warwickshire Corridor. Development and activity will be focused on the identified places as shown. The Birmingham to Worcestershire Corridor (Central Technology Belt); Figure F2. - The Three High Technology Corridors Wolverhampton to Telford Corridor Central Technology Belt Coventry, Solihull, Warwickshire Corridor

84 84 Annex G ANNEX G Sub-regional Economic Partnerships and Strategies The table below identifies the various formal partnerships, and their key strategies, operating below the regional level. The role and remit of the partnerships varies; many cover a wider range of issues than just economic regeneration, but all bring together partners in their areas to co-ordinate economic development action. Partnership Key Strategy Strategy Basis Further Information Birmingham Economic Development Partnership and Solihull Business Partnership Birmingham and Solihull Economic Review 2002 A Basis for Decision Making A framework to assist policy development and service delivery based on three themes: developing a stronger economic base; developing human resources and skills;and addressing community regeneration and social inclusion. Birmingham Economic Information Centre Tel: Black Country Consortium Looking Forward: The Black Country in 2033 The Black Country Regeneration Framework Long-term vision statement and linked shorter-term economic development strategic framework (in development). Sarah Middleton Black Country Consortium Tel: Coventry, Solihull and Warwickshire Partnership Ltd An Engine of Growth: The Economic Regeneration Strategy for Coventry, Solihull and Warwickshire Sub-region Economic development strategy, aligned to the West Midlands Economic Strategy, focused on six strategic priorities: fulfilling sub-regional role, transport, manufacturing, promotion of growth sectors, tackling disparities and education and training. Sally Rawlings CSW Partnership Ltd Tel: Herefordshire Partnership Herefordshire Plan A framework for actions on ten ambitions: economic development, education and training, transport, housing, environment enhancement, cultural and leisure developments, community development, poverty reduction, crime reduction, health. Herefordshire Partnership Tel: North Staffordshire Partnership Forward, Together: North Staffordshire A strategic framework for economic development based on five ambitions: securing foundations, celebrating success, thinking outward thinking forward, changing gear, driven by excellence. Peter Johnson North Staffordshire Partnership Tel: Shropshire Partnership Integrated Community Strategy Draws together the community strategies produced by the county and five districts/boroughs based on four pillars: supporting inclusive communities, improving the environment, promoting lifelong learning, stimulating a thriving economy. Oliver Goode Shropshire Partnership Support Team Tel:

85 Annex G 85 Partnership Key Strategy Strategy Basis Further Information Southern Staffordshire Partnership Southern Staffordshire Now! An economic regeneration strategy for the sub-region covering the districts of Cannock Chase, East Staffordshire, Lichfield, South Staffordshire, Stafford and Tamworth. The strategy is organised under four themes mirroring the four Pillars of the West Midlands Economic Strategy. Mike Kinghan, Partnership Director Southern Staffordshire Partnership Tel: Telford and Wrekin Strategic Partnership Telford & Wrekin in the 21st Century: a Community Strategy for Telford & Wrekin A framework for action based on six key ambitions: economic development, learning and skills, health and housing, community safety, sustainable environment, social inclusion. John Pay Telford and Wrekin Partnership Development Unit Tel: Worcestershire Partnership Partnership Towards Excellence A Community Strategy for Worcestershire The countywide community strategy that sets out the vision for Worcestershire over the next ten years. The strategy is based around six key themes: communities that are healthy and support vulnerable people; communities that are safe and feel safe; learning and skills for everyone at every age; economic success that is shared by all; a better environment for today and for our children; connecting Worcestershire. Margaret Reilly Worcestershire County Council Tel:

86 86 Annex H ANNEX H West Midlands Regional Concordat Partners The following provides a concise summary of the broader roles and responsibilities of partners to the Regional Concordat. H1 West Midlands Regional Assembly The Assembly is the Regional Planning Body for the West Midlands responsible for strategic coherence in regional working. The Assembly promotes the interests of the West Midlands by speaking out on important issues and events affecting the region and speaking up for the social, environmental, cultural and economic interests of the region. The Assembly has a membership of 100 made up of representatives from the region s local authorities, business community and other interest groups including health, trade unions, environment, community and voluntary organizations. Website: H2 Advantage West Midlands The Regional Development Agency for the West Midlands is charged with economic and physical regeneration, the promotion of employment, business efficiency, investment and competitiveness, the development and application of skills and contributing towards sustainable development. Advantage West Midlands is responsible for drawing up the region s economic strategy and the Agenda for Action providing the basis for the delivery of a wide range of initiatives and programmes by Advantage West Midlands and its partners. Advantage West Midlands is formally accountable to central government but is also subject to strategic review within the region by the Assembly. Website: H3 Government Office West Midlands (GOWM) The regional arm of central government. The mission of Government Office West Midlands is to work with regional partners and local people to maximise competitiveness and prosperity in the regions, and to support integrated policies for an inclusive society. GOWM manages programmes on behalf of parent Departments, supports and facilitates effective linkages between partners and programmes and informs the development of Departments policies from a regional perspective. GOWM is also responsible for co-ordinating the work of other government agencies and non-departmental public bodies in the region. Website: H4 West Midlands Local Government Association (WMLGA) The association represents all 38 local authorities in the region, with a commitment to represent and promote the interests of the population of the West Midlands and the local authorities serving it at regional level. WMLGA also acts as the regional link to the national Local Government Association and through this, promotes a regional perspective on national issues affecting local government. WMLGA is formally accountable to its constituent authorities. Website: H5 Regional Action West Midlands (RAWM) RAWM, established in June 2000, is a strategic network for the voluntary and community sector in the West Midlands. It builds and supports the sector s contribution to and influencing of regional and sub-regional policy and strategy. RAWM is formally accountable to its members and to the wider community and voluntary sector. It also acts as secretariat for the West Midlands Regional Assembly s other stakeholder members, supporting engagement in regional governance. Website:

87 Annex H 87 H6 West Midlands Business Council (WMBC) WMBC is an inclusive business organisation reflecting the business sector point of view on issues contributing to the performance of the West Midlands economy. Its objectives are to actively lobby policy makers and deliverers at national, regional and local authority level and to participate authoritatively in key regional partnerships through its members, member organisations and officers. WMBC also acts as the nominating body for Regional Assembly 'business members' and supports these Assembly members in their role. WMBC is formally accountable to its members. H7 West Midlands Life (the Regional Cultural Consortium) One of eight Regional Cultural Consortiums set up by the Department for Culture, Media and Sport across England, West Midlands Life provides a single voice to promote and speak for all cultural sectors in the region. West Midlands Life advises and informs central government, National Lottery distributors, local government and regional bodies such as Advantage West Midlands. West Midlands Life also promotes the role of culture throughout the region, including the arts, sport, museums, heritage, architecture, libraries, creative industries and tourism. A new board comprising a number of prominent individual members with a strong background in the cultural sectors was appointed in As a nondepartmental public body, West Midlands Life is formally accountable to the Department for Culture, Media and Sport through the Government Office for the West Midlands. Website: H8 West Midlands Higher Education Association (WMHEA) An association of the 13 universities and colleges of higher education in the region established to represent the higher education sector promote the services of the sector to the wider community and respond to the needs of business and industry for innovation and provision of higher level skills in the global knowledge economy. WMHEA is formally accountable to its 13 members. Website: H9 West Midlands Learning and Skills Councils The Learning and Skills Council is responsible for funding and planning education and training for over 16-year-olds in England. Its mission is to raise participation and attainment through high-quality education and training which puts learners first. Its aim is that, by 2010, young people and adults in England will have knowledge and productive skills matching the best in the world. The six local Learning and Skills Councils in the West Midlands operate within a memorandum of understanding with Advantage West Midlands to co-ordinate their learning and skills activities in support of the West Midlands Regional Economic Strategy. Website: H10 Sustainability West Midlands (SWM) SWM communicates, promotes and champions the principles of sustainable development and good corporate governance across the region. SWM is an independent partnership between 25 members of business, community, voluntary, non-governmental and public sector organisations which represent economic, environmental and social interests. It is regional and strategic in its outlook, whether responding to international, national, regional or local sustainability concerns. SWM works with all Concordat partners to advance individual and collective commitments to sustainable development principles and actions in all policies, programmes and projects for the region. Website: H11 EMBRACE West Midlands (Ethnic Minority and Black Regional Action for Community Empowerment) A regional partnership of Black and Minority Ethnic led voluntary and community networks throughout the West Midlands seeking to promote equality of opportunity for the Black and Minority Ethnic voluntary and community sector. EMBRACE s purpose is to build capacity within the sector in order to contribute to and influence regional and subregional policy and strategy. EMBRACE supports the active participation and engagement of community representatives in policy making so that needs and aspirations within the sector are better realised. EMBRACE is formally accountable to its members and also to the wider Black and Minority Ethnic led voluntary and community sector. Website:

88 88 Annex I ANNEX I Glossary of Terms Acronym/term CABE CAP COG Connexions CSR DTI EC ERDP EU FE FRESA Definition Commission for Architecture and the Built Environment Common Agricultural Policy Cluster Opportunity Group Corporate Social Responsibility Department for Trade and Industry European Commission England Rural Development Programme European Union Further Education Framework for Regional Employment and Skills Action Description CABE is the champion for architecture in England, aiming to ensure that new and adapted buildings act as beacons in the community, both for good architecture and for the services they provide. CAP regulates the production, trade and processing of agricultural products in the EU. Attention is increasingly focused on rural development. COGs provide a structure for cluster decision making, a mechanism to engage industry and opportunities to create or strengthen cluster relations between sectors. Connexions is the government's support service for all young people aged 13 to 19 in England. The alignment of business operations with social values The DTI works to create the best environment for business success in the UK, promoting enterprise, innovation and creativity, and also protects the rights of working people and consumers. The EC is the executive body of the EU. ERDP is a framework for the operation of ten integrated schemes providing new opportunities to protect and improve the countryside, to develop sustainable enterprises and to help rural communities to thrive. The EU is a group of 15 European countries (including the UK) committed to working together on a range of economic and social issues. The EU will expand to 25 countries with effect from May There are 66 FE establishments in the region, including local and sixth form colleges. FRESA aims to develop co-ordinated and collaborative regional approaches to identifying key challenges and delivering actions to address regional employment and skills needs using the wide range of supply organisations in the region.

89 Annex I 89 Acronym/term GDP GVA HEI HTC ICT ILO IP LBX LSC NHS NVQ R & D Definition Gross Domestic Product Gross Value Added Higher Education Institution High Technology Corridor Information and Communications Technology International Labour Organisation Intellectual Property Local Business Exchange Learning and Skills Council National Health Service National Vocational Qualification Research and Development Description GDP is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports. GVA is the enhancement added to a product or service by a company before the product is offered to customers. There are 13 HEIs in the region, including universities and agricultural colleges. The three HTCs offer businesses opportunities to modernise and diversify, and to attract and develop high-tech, high value-added businesses using existing research institutions, and offer property opportunities such as incubator and grow-on space. ICT is an umbrella term that includes any communication device or application, and may include radio, TV, cell phones, computer hardware and software and satellite systems, as well as associated services and applications, such as video-conferencing and distance learning. ILO Unemployment is the internationally agreed definition of unemployment. It is recommended by the ILO an agency of the United Nations. It is an estimate based on annual survey results. IP may be defined as products of creativity, innovation or R & D which can be given legal recognition of ownership through patents, copyright, design right or trademarks. An LBX offers investors the opportunity to invest in regional companies. The exchange will enable investors to access investment opportunities in smaller companies at lower search and transaction costs. LSCs are responsible for funding and planning education and training for over-16 year olds in the region. Their mission is to raise participation and attainment through highquality education and training which puts learners first. The NHS was set up to provide healthcare for all citizens, based on need, not ability to pay. It is made up of a wide range of health professionals, support workers and organisations. NVQs are work-related, competence-based qualifications reflecting the skills and knowledge needed to do a job effectively and are recognised by employers throughout the country. NVQs are organised into a coherent classification based on the competence levels required (Levels 1 5). R & D covers the following related activities: basic research experimental or theoretical work undertaken to acquire new knowledge, without any particular application or use in view; applied research as basic research, but directed towards a specific practical aim or objective; and experimental development systematic work, drawing on existing knowledge and directed to producing new materials, products and devices, to installing new processes, systems and services, or to improving those already existing.

90 90 Annex I Acronym/term RAE RDA RHS RZ SIC SINEI SME Social Enterprise SPeAR diagram Definition Research Assessment Exercise Regional Development Agency Regional Housing Strategy Regeneration Zone Standard Industrial Classification Surface Infrastructure of National Economic Importance Small and Medium-sized Enterprise Sustainable Project Appraisal Routine diagram Description Exercise to judge the quality of research in all HEIs. The quality rating, is judged against standards of national and international excellence on a seven-point scale, from 1 at the bottom through 2, 3b, 3a, 4 and 5, to 5* (five star) at the top. RDAs are responsible for setting and implementing the agenda for economic and business development, regeneration and improvement in the regions. The RHS will underpin the approach to housing investment in the region in the future, influencing resource allocation. RZ link need to opportunity, encompassing areas of concentrated need social deprivation and high unemployment and substantial opportunity, whilst not being constrained by traditional administrative or subregional boundaries. Collectively, RZ include a third of the region's population, half its unemployed, three-fifths of its long-term unemployed and the most deprived wards in the region. SIC codes classify business establishments by the type of economic activity in which they are engaged. A study to set the need for new or improved transport within an economic context. In particular, it identifies criteria to determine what constitutes surface infrastructure of national economic importance and develops a framework that allows surface infrastructure of national importance to be identified. An SME is a company with up to 250 employees and a turnover of no more than 25 million or a balance sheet total of no more than 17 million, and which is no more than 25% owned by a company or companies not falling within this definition. A Social Enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners. Diagram based on a four-quadrant model structuring the issues of sustainability into a robust framework, from which an appraisal of performance can be undertaken.

91 Annex I 91 Acronym/term Structural Funds The Third Sector TUC UCE UKTI URC WMES ZIP Definition Trades Union Congress University of Central England United Kingdom Trade and Investment Urban Regeneration Company West Midlands Economic Strategy Zone Implementation Plan Description Funding from the EU to assist member states adjust to structural economic change (NB parts of the West Midlands are eligible for Objective 2 funding and Objective 3 applies to all of the EU). Comprises voluntary, community, social and environmental enterprises. The TUC is the voice of Britain at work, representing 71 affiliated unions. They campaign for a fair deal at work and for social justice at home and abroad and represent nearly 7 million working people. One of the 13 HEIs in the region. UKTI is the government organisation supporting companies in the UK trading internationally, and overseas enterprises seeking to locate in the UK. Lord Rogers' Urban Task Force recommended in 1999 that URCs should be established to co-ordinate the redevelopment of, and attract new investment into, declining urban areas. The first URC in the West Midlands was in Sandwell and second in Walsall. The WMES sets the framework for regional partners to improve the economy and social welfare across the region. ZIPs set out the three-year planning framework for Regeneration Zones, incorporating the projects and initiatives that are to be delivered.

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