Agenda item

The Chair welcomed to the meeting Phil Green, Acting Executive Director of Growth, Environment and Transport and Joe Mount, Data Analyst for the Lancashire Skills and Employment Hub.

The committee considered a report on the economic and social impacts of the COVID-19 pandemic, and the national and local measures put in place to aid recovery. It was highlighted that the sectors hit hardest by the pandemic were Lancashire's most important sectors, and that the evidence gathered on the challenges facing Lancashire had been relied upon during discussions with the government about future policies, including the recent Levelling Up White Paper.

Comments and queries from the committee were as follows:

·  On upskilling Lancashire's residents to fill local economic opportunities, such as the National Cyber Force at the Samlesbury Enterprise Zone, officers were working closely with the government, the National Cyber Force, and other partners. An existing skills and employment framework was in place and conversations were taking place to adapt the framework so that the county council could work with organisations, including schools, to train residents in the skills needed. Initially, a number of people would move to Lancashire to support the launch, which would create up to 2000 jobs. It was noted that the skills needed for this project were adaptable and transferrable to most types of business.

·  Members were concerned that the arts and culture sector was often overlooked. It was acknowledged that the pandemic had caused significant losses in this sector. In Lancashire, £26m had been lost in gross value added (GVA) per month for each month the sector remained locked-down. It was noted that the Levelling Up Fund could support the arts and culture sector.

·  It was recognised that investment in capital infrastructure was a traditional response to economic downturn. Lancashire needed to continue investing in this way, with a focus on improving east-west connectivity which had been highlighted as a weakness and currently limited people's access to job opportunities. The county council's strategy would involve working with district councils, the NHS, and partners to tackle barriers into work and help resident's benefit from these opportunities.

·  Members highlighted the importance of investing in renewable energy to support future jobs and make the most of Lancashire's strengths, particularly in manufacturing. It was acknowledged that the county council needed to respond to the government's Ten Point Plan for a Green Industrial Revolution. Members were informed that the Local Government Association (LGA) had carried out research to forecast jobs in low-carbon and renewable energy across different local authorities in England. By 2050, the LGA expected Lancashire to have the highest number of low-carbon jobs per head, and to have the fourth-highest total number of jobs in the sector. South Ribble was forecast to have the highest number of local green jobs out of all 350 local authorities reported on. 

·  With regards to supporting businesses with carbon reduction, the report referred to a £12.8m local economic recovery and growth programme. The programme offered grants to businesses to decarbonise and improve their environmental efficiency. This was a pilot programme and, if successful, the county council would look to gather further resources and include it in a future devolution deal. The committee requested an update on this programme, to be considered during the work planning process for 2022/23.

·  As demonstrated by Figure 4 in the report, it was observed that Lancashire had a better pre-COVID employment rate than both the North West and the rest of the UK. However, this had decreased during the pandemic and Lancashire now sat below the national rate. In part, this was due to Lancashire's most important sectors being hit hardest by the pandemic. The county council was optimistic that, in the long-term, Lancashire's employment rate would recover, especially as a result of large projects like the National Cyber Force. The data would be monitored closely, including the number of residents claiming Universal Credit. 

·  Members commented that the move to homeworking during the pandemic had influenced where people now lived and worked, particularly with many London-based companies offering remote-working packages. It was noted that it was too early to comment on the long-term effect of COVID-19 on the employment market, but it was hoped that the value and culture on offer in Lancashire would attract people to move to the county.

Resolved: That;

  i.  The report and analysis on the economic and social impacts of the pandemic in Lancashire be noted; and

  ii.  An update on the county council's economic recovery and growth programme, particularly its support to businesses to decarbonise, be included on the Work Programme for 2022/23.