http://www.nwda.co.uk/PDF/NWDA-AnnualPerformanceReport_0809

Northwest Regional Development Agency Annual Performance Report 2008-2009

Contents 1. Headline summary

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2. Regional overview 2008-09

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3. Progress against NWDA Corporate Plan

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4. Cross-cutting principles

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5. NWDA Strategic Activity in 2008-09

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6. NWDA priorities for 2009-10

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1. Headline summary The NWDA has had a strong year, both in terms of delivering its programmes and projects and in providing solid economic leadership to support the region through the current challenging economic conditions.

The NWDA has successfully implemented a range of activities across the 11 Objectives in its Corporate Plan which will boost the delivery of the projected outcomes. Some of the key NWDA successes in the past year include the delivery of Business Link Northwest (BLNW), which has been a region-wide success, continuing to meet its targets, including a GVA impact of £431m, and providing flexible and responsive support to businesses through the recession. The past year has seen the NWDA launch of a new Access to Finance Service, delivered through BLNW, to boost the advice available to businesses.

The NWDA has also launched a £4.1m Innovation Voucher Scheme to encourage businesses to collaborate with higher education institutions, which is already oversubscribed and seen over 150 businesses benefiting from the scheme to date.

The NWDA continues to support the MediaCityUK project at Salford Quays, which has leveraged over £150m in private investment in the past year and is on track to deliver its objectives. Strong support also continues for Urban Regeneration Companies and sub-regional economic development throughout the region. This includes ongoing capital investment in further and higher education projects, including the announcement of £26.7m of NWDA funding for the University of Cumbria, to provide greater access and progress to Further and Higher Education in the region.

The NWDA worked closely with partners to deliver the hugely successful Liverpool Capital of Culture Year in 2008 which has generated an economic impact of £800m, and has seen over 3.5m first time visitors to the city. Targets for Foreign Direct Investment (FDI) have also been exceeded, with over 170 investment projects attracted to the region in 2008/09, creating or safeguarding over 11,400 associated jobs, making the Northwest the leading region for FDI outside of London and the South East.

Alongside this activity, the economic climate in the region changed markedly in 200809. NWDA has reprioritised its spending and focus in response, and in the past year has implemented a number of initiatives both to support businesses and to ensure that the Northwest can emerge strongly from the downturn.

NWDA has played a key leadership role in the newly formed Joint Economic Commission for the Northwest, to collaborate and agree responses to the downturn.

The NWDA has also worked closely with banks and businesses in the region, both to disseminate advice and to feed intelligence to Government and to partners to inform initiatives. Activities include hosting a series of successful ‘Survive and Thrive’ events to provide free guidance and advice to companies to help them access the business support and opportunities on offer in the region NWDA has put in place successful initiatives to support businesses, particularly in terms of access to finance. This has included the launch of a £10m Transition Loan Fund in December 2008 to improve the financial options available to businesses, which by March 2009 had already loaned £2m. The NWDA has also been working hard to understand what development schemes are appropriate to invest in at the present time to ensure they can progress in the current climate and bringing forward capital investment to do so.

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In terms of strategic activity, the NWDA has successfully integrated management of the European Regional Development Fund. The NWDA also chaired the national evaluation steering group which led to the successful BERR sponsored report into the impact of RDAs. The NWDA is now feeding lessons learned from this exercise into its future investment planning.

The NWDA has worked closely with partners to develop its approach to Joint Investment Planning in the past year, and has also supported the development of Multi-Area Agreements in the past year (in Manchester, Pennine Lancashire and Liverpool). The NWDA welcomes the recent announcement of city-region status for Manchester and will work with partners to maximise the opportunities that this initiative brings.

The NWDA is also driving forward work with 4NW, the Regional Leaders Forum, to develop a new Single Regional Strategy for the region, which, subject to legislation, will become the basis of the new formal Regional Strategy for the region. A substantial evidence base has been made available, including innovative work to develop our understanding of the functioning of places and the environmental considerations of sustainable growth. A region-wide consultation on the issues that the Regional Strategy will need to address has also successfully taken place.

The NWDA has continued its commitment to the cross-cutting principles to support economic opportunity for all and promote sustainable development, and in the past year has launched a new Single Equality Scheme. The NWDA has also undergone a process of business improvement and organisational change to adapt to the economic conditions and respond to new responsibilities and focus from BERR. Under the new RDA tasking framework, NWDA progress is measured against outcome indicators agreed in our Corporate Plan, and the GVA/head objective.

Nonetheless, outputs are still being used as part of the internal monitoring process.

In 2008/09, the NWDA has achieved the following: created or safeguarded 26,600 jobs; supported 6,400 in finding employment; created over 5,800 new businesses; provided business support to 29,900 businesses, including 1,100 businesses collaborating with the knowledge base; levered in ÂŁ340m in public and private regeneration investment; reclaimed and remediated over 300 hectares of brownfield land; and assisted 27,000 in their skills development.

The NWDA has also successfully managed its budget of ÂŁ425.8m and has achieved efficiency savings of ÂŁ18.7m in the past year, exceeding its targets.

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2. Regional Overview 2008-09 The North West Development Agency (NWDA) leads the sustainable economic growth and regeneration of England's Northwest and has agreed a strategic vision, clear priorities and targets through the Regional Economic Strategy (RES). The Agency contributes to these RES actions directly through its own investment programme with partners and by using its strategic influence and responsibilities to lead and align the work of partners across different sectors with responsibility for delivering specific actions.

The NWDA Corporate Plan 2008-2011 sets out how the NWDA will deliver its responsibilities under the RES, contribute to delivery of the regional growth objective as determined by Government, and deliver responsibilities arising from the SubNational Review of Economic Development.

This report provides an assessment of the NWDA’s activity and performance in the financial year 2008-09, against the deliverables set out in the NWDA Corporate Plan 2008-2011. This is the first year of assessment under the new RDA tasking framework, which will monitor RDAs against outcome indicators agreed in their Corporate Plans, and the GVA/head objective.

The NWDA has already made some significant headway in the first year of delivery of its Corporate Plan. This is outlined in the next three chapters – where the Agency’s investment across the 11 Corporate Objectives in the Corporate Plan, together with strategic activity and application of the cross-cutting principles are reviewed.

Nonetheless, this strong performance has to be seen against the backdrop of the regional economic climate, which changed markedly in 2008-09. Particular issues have emerged around access to finance, a drop in private sector investment and development in the region, and a drop in demand for regional goods and services.

The region has also seen a deterioration in the labour market – total unemployment in the Northwest was up 19,000 in the three month period to January 2009 and the Northwest unemployment rate at March 2009 stood at 7.7% compared to 6.5% for the UK overall.

The NWDA has therefore diverted significant resources into supporting businesses in the past year and adapted a number of activities under the 11 Corporate Objectives to support the region. The NWDA has also provided decisive economic leadership to help the region through the recession.

Overall, The NWDA has had a strong year, both in terms of delivering its programmes and projects and in supporting the region through the current challenging economic conditions. Outputs, which are still being used as part of the internal monitoring process, show that in 2008-09 the Agencyhas: • • • • • • • •

Created or safeguarded 26,600 jobs Supported 6,400 in finding employment Created over 5,800 new businesses Provided business support to 29,900 businesses Helped 1,100 businesses collaborate with the knowledge base Levered in £340m in public and private regeneration investment Reclaimed and remediated over 300 hectares of brownfield land, and Assisted 27,000 in their skills development

The wider implementation of the RES continues to progress well, and the next annual assessment of progress for 2008/09 will be published in Summer 2009.

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3. Progress against NWDA Corporate Plan This section assesses progress against the 11 Objectives in the NWDA Corporate Plan, which are designed to improve competitiveness and productivity across the region’s Business, People and Places. These 11 Objectives reflect the totality of the NWDA’s responsibilities and focus on the specific actions in the RES on which the NWDA leads delivery.

1. Sectors: Generate increased GVA through the growth and development of our priority sectors, tourism and the visitor economy The NWDA has made significant progress in supporting and increasing the contribution of the region’s priority sectors to the economy in the past year. The NWDA is monitoring the impact of the recession across the region’s sectors closely, as they are being impacted in different ways, and is flexing and adapting its programmes to ensure that the sectors and their supply chains are well supported. In spite of the economic downturn, NWDA investment in the priority sectors has created or safeguarded over 6,800 jobs and assisted 6,800 people with their skills development in 2008-09 alone. Some of the key highlights are listed below.

The NWDA continues to support the development of the mediacity:uk project at Salford Quays. £157m of private leverage has been secured into the project in 200809, which will promote the growth of the digital and creative sector in the region. The NWDA continues to work with partners to develop the overall project and is on track to deliver its objectives.

The NWDA has provided specific support to help firms increase their productivity and move up the value chain, a key outcome in the Corporate Plan, including through the Manufacturing Advisory Service - Agenda for Change, which has created over 4,100 jobs in the past year and assisted over 660 businesses in the region.

Activities to support the Corporate Plan outcome to increase the contribution of the priority sectors to the economy include the Northwest Biomass Programme, a £750,000 project funded by the NWDA to increase the uptake of biomass energy systems by the region’s industries, leading to increased productivity and savings for businesses, which has created 600 jobs in the past year. The NWDA has also provided £1.5m investment into a new Energy Innovation Centre in the region, opened in June 2008, to stimulate investment in the innovation and the advancement of new energy technologies.

The NWDA has supported the Advanced Engineering and Materials sector through the Joint Strike Fighter Design engineering Project, which has created 790 jobs in the past year and has received over £3m of NWDA investment to date. The new £1.4m Food Technology Centre in Cumbria, opened in June 2008, has also benefited from NWDA investment, which will help the growth of local food and drink businesses.

The NWDA has invested in the visitor economy through the launch of the Visitor Attractions Fund, investment in Signature Projects such as Chester Zoo and the Renaissance of the Lake District, investment in the region’s attack brands and the provision of a £20m funding package for the region’s tourism industry to ensure that the region’s 5 sub-regional tourist boards are in a strong position to support tourism businesses. 2,700 businesses have already been assisted through Tourist Board Support Programmes in the past year to improve their tourism offer. The Agency’s strategic leadership and investment in the visitor economy will have a strong impact on the growth of tourism GVA within the region.

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2. Enterprise Support: Improve the formation, survival and growth rates of enterprise including via increasing enterprise culture, delivery of the Business Link service, and improving the availability and access to business finance The Agency has raised its support to help business through the challenging economic climate in the past year. NWDA investment in the past year has created 12,800 jobs, 5,800 new business starts and assisted 17,400 businesses. Particular resources have been focussed on boosting access to finance and the financial advice to businesses to help them through the recession.

Business Link Northwest (BLNW), funded and managed by the NWDA, is providing high quality, impartial business information and advice to businesses across the region and has continued to exceed its key targets in 2008-09, achieving a GVA increase of £431m and provided nearly 8,000 intensive assists. The NWDA has also successfully launched a new Access to Finance Service, delivered through BLNW, which diagnoses the financial needs of businesses, provides the relevant skills/ expertise to secure funding and assists in finding the right finance provider.

Following the NWDA’s launch of the Northwest’s first Enterprise Strategy in June 2008 to drive forward the entrepreneurial potential of the region, the NWDA has established a Women’s Enterprise Action Plan, which will help local and regional partners to work together to encourage women to take the first steps towards business ownership. It will also provide assistance to women already in businesses.

Furthermore, A NWDA Board Task and Finish Group set up in 2008 has completed its work on ‘Releasing the Potential of the Workforce’ initiative, to ascertain the values and culture change needed to achieve workplace empowerment and improvement in the region, and therefore help improve business productivity. A number of actions are to be taken forward by a sub group of the Northwest Enterprise Forum, which is responsible for challenging and monitoring the success of enterprise activity across the region.

Thanks to NWDA investment, a new Higher Education Enterprise Champions project is now in operation, to provide students and graduates with entrepreneurial ideas in the region with practical support to put their ideas into reality. ERDF resources have also secured which will increase the number of Higher Education Institutions participating in the coming year. This will help develop an entrepreneurial culture, create more business start-ups and increase the Total Enterpreneurial Activity (TEA) Index in the region, which in turn will support delivery of the Corporate Plan outcomes.

The NWDA is implementing its Finance for Business Strategy which will develop and deliver finance initiatives to support business in the region, and is adapting activity to support business through the recession. For example, the NWDA successfully launched a £10m Transition Loan Fund in December 2008 to provide funding for businesses with a viable business plan but have been unable to secure such funding from conventional commercial sources. To deliver this new support the NWDA has increased the maximum loan available from its existing small loan product from £30k to £50k. At the end of March 2009, over £2m had already been loaned through the Fund.

Since December 2008, the NWDA has been hosting regular meetings with senior regional representatives from the major banks operating in the Northwest. Since the first meeting, NWDA and the banks have started to see product sharing taking place, with banks referring to BLNW and vice versa. The NWDA has also launched a series of Survive and Thrive events to provide free guidance and advice to companies to help them access the business support and opportunities on offer in the region, and

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has also supported the Government’s regional lending roadshows to provide companies with advice on lending issues. This range of activities will help to deliver the Corporate Plan aim to improve availability and access to finance for small and medium-sized enterprises (SMEs).

The NWDA’s High Growth Business Start Up programme targeted at deprived group/areas has been a huge success, achieving its two year target of helping 4,200 people to start a business in the Northwest by March 2009. The Agency has also developed a new £35m High Growth Start Up Programme which launched in April 2009 and will aim to support 12,700 new businesses and create 22,900 jobs over the next 5 years. Both projects are supporting the creation and growth of new businesses identified as a priority in the Corporate Plan, including in priority groups and areas.

The NWDA is also continuing to deliver projects to increase Social Enterprise start ups and growth in the region. Social Enterprise NW is delivering its contracted activity in relation to awareness raising, promotion, collaboration activities and Networking across the North West, and over 500 businesses have been assisted with social enterprise networking in the past year.

3. Competitive Business and Innovation: Develop higher added value activity through innovation and knowledge transfer, including appropriate exploitation of the science base The NWDA has invested in a number of high growth projects which will support the delivery of the Corporate Plan outcomes for this objective. NWDA investment has assisted 1,500 businesses to become more innovative in the past year alone and the Agency has taken on an enhanced collaboration with the Technology Strategy Board.

The NWDA has successfully launched a £4.1m Innovation Voucher Scheme in 200809, to encourage business owners, entrepreneurs and social enterprises to proactively engage with the Northwest knowledge base, including colleges and universities, to develop innovation and enhance business. The scheme is now up and running and is already oversubscribed, and over 150 businesses have so far been encouraged to work with Higher Education Institutions through the scheme, which will help to increase annual business/university interactions identified in the Corporate Plan.

The NWDA continues to invest in the development of the region’s major science, research and innovation concentrations including at Daresbury Science and Innovation Campus, Manchester Knowledge Capital, Liverpool Science Park and Lancaster. At Daresbury, the Masterplan for developing the campus is now complete and the next phases of development are being discussed, including new facilities for larger office and laboratory accommodation.

The NWDA has also provided £9.5m funding to support the pioneering Biomedical Research Centre in Manchester, which will help further develop the science and innovation knowledge base in the region and support the Government’s strategy to make Britain a global pioneer in research, healthcare education and training. The project in Manchester has already attracted scientists and researchers who are leaders in their respective fields. In addition to this, ongoing NWDA investment and support for Project Unity, the creation of a new world class university in Manchester recognised amongst the top tier of university institutions, has created 1,400 jobs to date. This project was also evaluated as part of the national evaluation of the economic impact of RDAs, where it has achieved a £54m GVA contribution against a £20m investment.

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Over 770 businesses have been helped with their Information Communication Technologies (ICT) through the NWDA-funded Project Access in 2008-09. The groundbreaking £20 million scheme to supply broadband and fast Internet connections across Cumbria has been hailed a success, with final figures show that 16,612 businesses now have a broadband connection representing 71.1% of the total number of businesses in Cumbria and parts of North Lancashire. This will help increase the number of businesses to achieve productivity gains through effective exploitation of ICT and ensure availability of high-speed infrastructure and services, which are key outcomes in the Corporate Plan.

4. Internationalisation – Realise opportunities from globalisation, including international trade, inward investment and supply chain opportunities Internationalisation plays a critical role in the Northwest’s economy. NWDA investment under this objective in the past year has directly created 1,800 jobs and assisted 1,000 businesses through supply chain, investment and trade products.

The NWDA and UKTI, through the Northwest International Business Forum, launched an Internationalisation Strategy and Action Plan for the Northwest in 2008, to help the region make the most of opportunities created by new global markets. It will help develop the regional sectors that are internationally competitive, maximise the region’s international potential and target countries that are strategically important for the Northwest, in terms of inward investment and trade.

With UKTI, the NWDA has provided an integrated package of support to help businesses to trade internationally. The UKTI/NWDA trade business plan has delivered its targets, which included helping over 700 companies become new exporters or enter new markets in the past year. This contributes greatly to the Corporate Plan outcome to help 2000 companies either become exporters or enter new markets between 2007/08 and 2009/10. UKTI and their partners have successfully implemented a sector trade programme in 2008/09 and ran two successful ‘meet the buyer’ events in priority sectors.

In the past year, activity has also focussed on implementing overseas presence plans, including implementing a North of England Business Plan for North America, which has achieved its targets, and a full time Northwest representative has been appointed in Mumbai which will help increase inward investment projects from new, high-growth markets.

Targets for Foreign Direct Investment (FDI) have been exceeded, with over 170 investment projects attracted to the region in 2008/09, creating or safeguarding over 11,400 associated jobs, making the Northwest the leading region for FDI outside of London and the South East. These results strongly exceed the Corporate Plan target of achieving 150 projects per annum.

The NWDA, with its partners, is monitoring global economic trends closely, together with the opportunities and risks that they bring for international trade and inward investment. The strong package of support, together with a raised focus on new markets, will help to maintain the strong momentum and success that internationalisation has already brought to the region.

5. Leadership and Management: Develop leadership and management skills (including coaching and mentoring) within the current workforce In the past year, the NWDA has lead the implementation of the Northwest Leadership and Management Skills Framework for Action in the region, which aims to develop

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world class skills in leadership and management in the Northwest that will raise regional productivity and competitiveness. Activities have focused in the past year on the development and implementation of 3 major learning and management projects which have been reviewed and aligned to take account of the economic downturn.

The NWDA has successfully worked with Business Link to redesign the Northern Leadership Academy portal (part of the NWDA’s commitment to the Northern Way) as a tool for SMEs and brokers to stimulate demand for leadership and management training and raise awareness of the benefits to business. The NWDA is currently working with the Northern Leadership Academy to deliver an internal coaching and leadership solutions project and close to 750 businesses have been helped through the portal in the past year.

The Agency has also successfully launched the Leading Enterprise and Development (LEAD) Programme in 2008-09, which delivers leadership and management training to SMEs, and has benefited from £1m of investment in the past year. 50 delegates are currently going through the programme, which will be further expanded in 2009-10.

The NWDA has expanded the Train to Gain Leadership and Management Specialist Advisory Service, a joint offer to Northwest businesses from the Learning and Skills Council (LSC) and NWDA, and delivered through BLNW. The service provides funding towards the cost of training for leaders and managers to improve the performance and competitiveness of their businesses. 9,200 businesses are expected to benefit from the programme over the next 3 years.

The NWDA has also supported a number of workshops and master classes provided in response to the economic climate. This has included support for the delivery of inspirational leadership master classes by the Disney Institute to 200 Northwest businesses and supporting 45 Pennine Lancashire businesses with a series of ‘Leadership Journey’ workshops. The NWDA has also extended the LSC leadership and management programme to Black and Ethnic Minority businesses and those who are currently excluded from the national programme. BLNW is delivering the contract at full capacity and end of year targets have been achieved.

The combined effort of these activities will support the long-term outcomes identified in the Corporate Plan to drive up business productivity, understand and prove the business benefits of investment into leadership and management training, and increase the number of managers and senior officials as a proportion of all employees.

6. Higher Level Skills Development: Stimulate demand for higher-level skills in the current and future workforce, including appropriate sector skills Thanks to NWDA investment over the past year, over 5,000 people have been assisted in their skills development and the NWDA has driven forward a range of activities which will continue to stimulate demand for higher level skills, and ensure that the region is well placed to emerge strongly in the economic upturn.

The NWDA has maintained its investment into Higher Education and Further Education Capital projects, which will provide greater access and progression to further and higher education across the region. In Burnley, the NWDA’s investment to develop a higher/further education campus is on track and near completion, with student enrolments expected in September 2009. A grant of £3.2m has also been

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invested by the NWDA in a new University Centre at Blackburn College and £2m invested into Nelson and Colne College capital re-development.

The NWDA is also planning to invest £26.7m in the University of Cumbria over the next 8 years, which will add an estimated £80m GVA to the Northwest economy and directly create 530 new jobs. The funding will also support the creation of 340 new businesses and help the University to increase the number of students by 28,000 by 2017.

The £38m Macclesfield Learning Zone in Cheshire was opened in 2008, which benefited from £5m NWDA investment. Already, over 2,300 people have been assisted in their skills development through the new state of the art learning environment, which will encourage young people to stay on learning, promote lifelong learning for adults and increasing the investment employers are making in training and up-skilling the workforce. Over 800 young people in the region have also been helped through the NWDA-funded project “Workwise: Inspiring Potential & Productivity in the Northwest” in the past year, which trains individuals and organisations across the region in the education sector to become ‘Champions’ for 14-19 year olds to help them realise their potential and maximise their contribution to the region.

As part of the NWDA’s lead RDA role for Skills and Employment, the Agency has worked closely with DIUS, BERR and the RDA network to successfully ensure that the Train to Gain integrated Skills Brokerage Service was able to go live nationally on 1st April 2009 through Business Link. This service provides free support from specialist advisors at BLNW to help businesses identify their workforce training needs and arrange necessary training and advice on funding. These activities will help support the delivery of the Corporate Plan outcome to increase the percentage of employers investing in training.

The NWDA has also been working to coordinate the demand for skills in high growth and high employment sectors, and to provide clear solutions for employers in these sectors. The NWDA has liaised with the LSC and the Alliance of Sectors Councils (TASSC) to clarify and agree the most appropriate method of coordinating skills demands from employers and ensuring links into the Regional Skills and Employment Boards. The NWDA is also working closely with partners through the Joint Economic Commission for the Northwest to identify and drive forward the skills that will be needed in the region to emerge strongly from the downturn.

7. Size of the Workforce: Grow the size of the workforce through support for the work of the City Employment Strategies and tackling barriers to work including supporting economic participation for all.

NWDA investment and support in 2008/09 has helped over 2,200 people in the region find employment. In the past year, the NWDA has established close partnership working with Job Centre Plus, the Learning and Skills Council and the 5 sub-regional partnerships in the region, which has helped to broaden the scope of regional projects and to react effectively to new initiatives announced by Government in response to the economic downturn. This will take on even greater importance going forward.

Across the region, NWDA support for the Manchester City Employment Strategy has helped 120 people in their search for a job in the past year, and the Agency has also supported the Liverpool City Employment Strategy Pathfinder. The NWDA has also supported the ‘Addressing Worklessness in the Northwest’ Project, which in Cumbria has helped over 450 people in their search for a job, and assisted 200 people with

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their skills, and in Lancashire has helped over 90 people in their search for a job. The NWDA has also supported the People and Jobs Cheshire and Warrington project, which has helped 220 people in their search for a job and assisted 350 people with their skills. This is helping to address the issues of disadvantage and basic skills needs across Cheshire and Warrington. These projects are fundamental to support efforts to tackle worklessness and social exclusion amongst some of the most disadvantaged residents across the region.

The NWDA is also continuing its focus and activities to support the long-term unemployed, for example through the delivery of the Ex Offenders Project, which has helped 135 people into employment in the past year, and the implementation of the Regional Equality and Diversity Strategy to maximise the contribution of Migrant Workers and older people.

8. Employment Sites and Premises: Support the development of key employment sites and premises in the region The economic downturn and drop in private sector investment has affected the viability of a number of development schemes in the region. The NWDA has maintained its investment to unlock development in the region and improve the availability and supply of good quality sites and premises, so that they will be well placed to seize opportunities in the economic upturn and support the ongoing restructuring of the Northwest economy. £49m of public and private sector investment has been levered into developments in the past year both into Strategic Sites and sub-regional employment sites. This includes £15m into the site at Wigan and Leigh Village and £10m into Rochdale’s Kingsway Business Park, where the past year has seen the first business occupiers of the Park exchanging contracts and the opening of the new spine road for the site.

The NWDA has an announced an investment of £4.3m for site remediation works at 3MG (Mersey Multimodal Gateway) in Halton, paving the way for a new development which could create up to 1,200 jobs. The development aims to maximise the site’s road and rail connectivity and will significantly improve the multi modal transfer of freight between road, rail and sea in the Merseyside area. Through remediation it will bring the site back into economic use and will help rejuvenate and kick-start development in the area. Developments such as these are key to delivering the Corporate Plan outcomes of high quality development proposals close to the region’s major transport interchanges.

The NWDA is also developing the JESSICA (Joint European Support for Sustainable Investment in City Areas initiative) model to establish a fund, in cooperation with the European Investment Bank, to invest Structural Funds in integrated urban regeneration projects. This has the potential to unlock a number of key schemes which have been impacted by the economic climate.

9. Conditions for Private Sector Investment: Improve the physical conditions for increased private sector investment in the region’s priority places As with objective 8, private sector investment in support of this objective has dropped and the number of new developments coming forward has declined in the past year.

The NWDA has been working to understand what schemes are appropriate to invest in at the current time to ensure they can progress, despite the current economic climate, and has sought to bring forward capital investment to support these schemes. Activities so far include the provision of a £1m lifeline to the regeneration

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scheme at Penrith New Squares, which had stalled due to the economic conditions, to help get the scheme back on track.

The NWDA has focussed strong investment into Urban Regeneration Companies (URCs) in the region to help them achieve their objectives and has ensured delivery of URC 2008-09 Business Plan outputs, with all URC Programmes forecast to meet their budget targets. Some of the URC highlights in the past year include: Liverpool Vision - Working through the newly formed Liverpool Vision Economic Development Company, the NWDA has continued to invest in the regeneration of the City of Liverpool. This has included a £1.9m investment to support the development of the waterfront as a major visitor destination. Major investment has continued into the new Museum of Liverpool, which will greatly enhance the tourism offer for the city and the region. In the past year, over £7m of public and private leverage has been secured into the development of the project, which is due to be completed in 2010 ReBlackpool - The NWDA continues to support the work of ReBlackpool to deliver the Blackpool Masterplan to regenerate the area, including the new £220m Talbot Gateway development which is set to transform the town centre and create a thriving new business district. The NWDA has also provided £2.6m funding in the past year to kickstart work on the second phase of the Central Corridor, which is at the heart of the Blackpool Masterplan and will improve the gateway which leads from the M55 into Blackpool, creating an attractive new main approach into the town centre. The NWDA, through ReBlackpool and the Higher Education Funding Council are also funding a £10m development of higher education with Blackpool and Fylde College.

New East Manchester – The NWDA continues to work with New East Manchester on the next stage of the regeneration of East Manchester and Ancoats, with developments in the past year including a £7m grant from the NWDA to support a £16m investment in a new building for Gregg’s bakery, which will help safeguard and create new skilled jobs for the area, and drive wider regeneration in the area.

Central Salford URC – Activities in the past year have included work to maximise the opportunities from MediaCity UK and developing connections between Salford Quays and Manchester City Centre. In the past year, Irwell City Park has received £1.1m funding and approval from the NWDA and partner councils for vital planning and design work to get the scheme under way.

West Lakes Renaissance - Work is to start on a new £1.9 million business centre in Maryport which it is hoped will create up to 40 new jobs and provide much-needed space for small to medium enterprises. The centre is one of many projects that have taken, or are currently taking place, to transform Maryport into a hub for business and high quality tourism. Other projects include the £1.7 million redevelopment of Maryport Marina to create new offices and more pontoons, and The Wave performance and exhibition centre, which opened in summer 2008.

The NWDA has also worked with growth towns and cities to help unlock private sector investment and to bring forward major development propositions designed to attract significant private sector investment in the region. For example, in the past year the NWDA has supported the Warrington Master Plan and has acquired the Times Square Site for redevelopment. This is key to the development of the Bridge Street Quarter, which could attract up to £80m in private sector investment.

The NWDA continues to support ‘Newlands’ (New Economic Environments through Woodlands), a £59m NWDA-funded land regeneration programme delivered by the Forestry Commission, aiming to regenerate into community woodland more than 900

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hectares of brownfield land across the Northwest, thus encouraging economic growth and new opportunities. Specific projects in the past year include the announcement of £1.78m of regeneration funding to transform a former landfill site in Southport into community woodlands and boost the economic, social and environmental revitalisation of the area.

In other projects, the NWDA is investing £3.8m of regeneration funding into Bury to transform 73 hectares of brownfield land into community woodland, to create a major community woodland across Salford, Manchester and Bury. The NWDA is also supporting projects which form part of a programme of works called REVIVE. Through REVIVE, the former Cheshire County Council and NWDA are working together to reclaim 170 hectares of brownfield land in Cheshire and Warrington, which will improve the local environment, create new opportunities for leisure and creation and support economic growth.

The NWDA’s rural policy statement has also been published and a three year operational plan to deliver policy objectives has been developed. The Agency has assumed responsibility for the Rural Development Programme for England (RDPE) funding, and has established a RDPE Programme Board. Investment and activity in this area will continue to support the development of key service centres in rural areas and support their important contribution to the Northwest economy.

10. Adapting to Climate Change & Increasing Sustainable Resource Use: Implementation of the Climate Change Action Plan (including energy security); the adoption of resource-efficient technologies and practices in companies and the development of adaptive policies and infrastructure The past year has seen the successful implementation of year 2 of the Regional Climate Change Action Plan. The NWDA continues to lead The Climate Change Partnership which monitors, promotes and delivers the Action Plan. The NWDA is now in the process of renewing the plan for 2010-2013.

The NWDA has launched a brand new Northwest Tidal Energy Group, to explore the tidal energy potential in the region. The past year has also seen the opening of a £13m pilot waste treatment and recycling plant to divert significant volumes of household waste from landfill. This has been developed by the NWDA in collaboration with the Merseyside Waste Disposal Authority, engineering company Orchid Environmental, Envirolink Northwest and DEFRA. The NWDA also funded a £750,000 project to increase the uptake of biomass energy systems by the region’s industries.

Through the NWDA’s investment, 900 businesses have been received environmental business support through ENWORKS, a business support programme co-ordinating environmental advice, training and support to businesses throughout the Northwest of England. Furthermore, 700 businesses have been assisted through the Waste Technology Virtual Centre of Excellence. These activities will be fundamental in helping Northwest businesses improve their resource efficiency, identified as a priority in the Corporate Plan.

In the past year, the NWDA has taken on the lead RDA role for the new Department of Energy and Climate Change and is also developing an Energy strand of work for the Northern Way.

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11. Marketing the Region: Improve the image of the region as a location for business investment and tourism by countering outdated negative perceptions and promote its unique opportunities and strengths The NWDA has been an official sponsor of Liverpool Capital of Culture 2008 providing funding to promote the year nationally and internationally, and has worked with other parts of the region to encourage wider involvement with the year. This includes each of the Northwest sub-regions having their own themed years during 2008, such as Cheshire and Warrington – Year of Gardens 08.

The NWDA worked closely with Liverpool during 2008 to promote the city, and maximise the impact of major events held in Liverpool, providing support for some of the largest events such as The Turner Prize at TATE Liverpool and The Tall Ships.

Initial evaluation shows that Liverpool 08 added £800m to the economy of Liverpool City Region, attracted over 5m visitors to the city and the city received national and international media coverage worth £200m. This will strongly support the delivery of Corporate Plan outcomes to increase awareness of the cultural attractions in Liverpool and Manchester and increase the contribution of major events to the regional economy.

NWDA investment has continued in the past year on twelve partnership marketing initiatives which have leveraged £2.3m of partner support. Furthermore, the Agency has supported the staging of the European Badminton Team Championships, and the Blackpool Showzam which attracted 30,000 visitors (part of the NWDA supported 3 year events programme).

The NWDA is implementing a Northwest Legacy Framework for the 2012 Olympic Games, to help Northwest businesses secure contracts from London 2012, delivering marketing and communications campaigns to promote the region and the destinations as a place to visit for short break, and delivering campaigns to increase the profile and awareness of the region as an international location for business investment.

Positive impacts are already being felt from the Agency’s activity under this objective, highlighted in the latest MORI research on Perceptions of England’s Northwest in 2008-2009, with Northwest opinion leaders more positive about the region as a business location, compared to other parts of the UK and Europe. Whilst the economic climate has undoubtedly had an effect on perceptions of the region’s economic outlook, as is the case with the national economy, the findings show that confidence in the region amongst Northwest and UK residents, businesses and opinion formers remains high.

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4. Cross-Cutting Principles The NWDA continues to be committed to ensuring all communities within the region can participate economically and are treated with fairness and respect. The NWDA as a public body has specific legal duties and responsibilities under the Race Relations (Amendment) Act 2000; Disability Equality Duty and Gender Equality Duty to not just eliminate unlawful discrimination, but also to positively promote equality.

This affects not only these areas, but also newer equality strands of sexual orientation, age and religion and belief.

We believe that to secure the economic growth of the region, develop an entrepreneurial culture and boost productivity, it is essential that we capitalise on the diversity of the Northwest’s people and communities. The NWDA Corporate Plan fully applies the principles of sustainable development, equality and diversity and economic opportunities for all and takes an integrated approach to equality, social and economic inclusion issues in the region through a mainstreamed approach to their delivery.

The NWDA has developed and implemented its first Single Equality Scheme which is our framework for mainstreaming and driving forward Equality and Diversity. The scheme will support the ongoing delivery of the Corporate Plan and a specific Action Plan sets out a series of activities that the Agency is committed to undertaking over the lifespan of the scheme (October 2008 – September 2011). Progress in delivering the Single Equality Scheme will be monitored through our continuous performance management and monitoring cycle, which will ensure that accountability is present throughout the organisation from individual members of staff to the Board.

The Agency continues to raise the profile of Equality and Diversity regionally and continues to drive forward the economic elements of the Regional Equality and Diversity Strategy through the Regional Equality Strategy Group. A full account of the Agency's performance on Equality and Diversity will be available through its first Equality and Diversity Annual Report to be published in Summer 2009.

We have also implemented and reviewed our Equality Impact Assessment processes which are now systematically applied to both our Single Programme and ERDF funding, ensuring all projects undertake the appropriate level of Impact Assessment.

In addition, the NWDA is also continuing to reinforce its approach to sustainable development. The Agency has achieved and retained ISO14001 certification for its headquarters and all processes operated from it. Processes are now in place through the project development framework to ensure that sustainability is fully considered and integrated into project and programme processes. In particular, the Agency has instituted an online carbon calculator and integrated appraisal tool for all of its funded projects.

The NWDA also continues to take a lead in integrating Corporate Responsibility (CR) into its activities. The Agency’s priority CR actions are grouped under four core social and environmental indicators: Marketplace, Environment, Workplace and Community. An Annual Corporate Responsibility Achievement Report will be published in the near future, highlighting progress over a number of areas including the Agency’s Sustainable Procurement Strategy and the measures and actions to reduce the NWDA’s carbon footprint.

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5. NWDA Strategic Activity in 2008-09 The NWDA has had a strong year in delivering economic leadership for the region, and also in responding to further developments arising from the Sub-National Review on Economic Development (SNR). Furthermore, the NWDA has continued to deliver the improvement objectives set out in the improvement plan agreed with NAO as part of the IPA process.

Resource management The NWDA has met all of its financial objectives in 2008/09 despite a drop in income and has successfully managed its £425.8m budget, returning a balanced budget. The NWDA has successfully delivered year 2 of its CSR efficiency plan, and has exceeded its efficiency savings target of £10.1m in 2008/09, achieving a total saving of £18.7m, delivered primarily through URC, Design Savings and Business Link cash-releasing savings.

The NWDA has implemented a revised contracting framework to deliver the Corporate Plan, moving from the old RDA tasking framework based on outputs to the new Corporate Plan based outputs and outcomes. The NWDA has also strengthened its approach to risk management, with risk management policies and procedures further enhanced and embedded into the Agency’s activities.

The Agency has also successfully integrated the management of the European Regional Development Fund, with the Northwest of England is set to receive a total of £521million of ERDF funding between 2007 and 2013. A total of 29 projects have already fully contracted for £50.6m and the Agency is carefully monitoring its performance against the region’s European de-commitment targets. The NWDA is currently working with the Government and partners to establish a Venture Capital Loan Fund for the region with the support of ERDF funding.

The NWDA has supported the Government’s pledge to pay substantial invoices to SMEs within 10 days, rather than within the standard 30 day target. In October 2008, the NWDA signed up to this commitment to pay small business contractors within 10 days, helping suppliers with cash flow, and 93% of invoices are currently paid within the target.

Evaluation The NWDA chaired the national evaluation steering group which led to the successful BERR sponsored report into the impact of RDAs. The NWDA evaluated 65 programmes and projects worth over £930m (60% of total NWDA activity over the relevant period). These show that the Agency has performed at least as well as the national RDA average, contributing to the £23bn of return on investment. The report highlighted a number of Agency-invested projects and programmes which made a significant return on their initial investment. These include: •

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Agenda for Change, the manufacturing support service to improve productivity, innovation and raise the profile of the sector to engage more young people. To date, the programme has achieved £43m GVA against a £10m investment, increased to £110m when projected lifetime benefits are added and created or safeguarded 1,200 jobs.

Project ACCESS, the Agency’s £17m broadband programme for Cumbria and North Lancashire, which to date has achieved £42m GVA for the region, and provided access to broadband for 99.8% of businesses and residents in Cumbria and North Lancashire

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Using the breakdown of figures supplied by BERR, the NWDA has achieved a strong economic impact across the full range of its investment activities. The NWDA is feeding lessons learned through the evaluation exercise into its Performance Management and Evaluation Plan and is issuing guidance on the sharing of good practice. The evidence is being used to inform design of new projects and the appraisal of additionality and value for money in new investments.

Economic Leadership In 2008-09, the NWDA took on formal responsibility for responding to economic shocks in the region, as well as further responsibilities in relation to Train to Gain and enhanced collaboration with the Technology Strategy Board.

The NWDA has been playing an integral leadership role in the Joint Economic Commission (JEC) for the Northwest, established in November 2008. Work has already been progressed on the 5 work themes agreed by the JEC, which include business support, infrastructure, supporting communities, labour market issues and preparation for the upturn (the priorities are the new Atlantic Gateway, Cumbria Energy Coast, Renewable Energy and Creative Industries). The NWDA will be working closely with partners to develop and promote these priorities.

The Agency has maintained a close dialogue with businesses and banks in the region to review the state of the economy, respond to and deal with concerns and to develop coordinated responses where possible. The Agency is also monitoring intelligence and developments in the Northwest economy closely, and is feeding this intelligence to wider partners and to Government to inform policies and initiatives.

The NWDA and 4NW, working in partnership, also submitted the Northwest Regional Funding Advice (RFA2) for 2008/09-2010/11 and up to 2018/19, to Government on behalf of the region.

2008/09 saw agreement between the NW Regional Strategy Team and wider stakeholders to a draft timetable and process for a new single/integrated Regional Strategy for the Northwest. The Regional Strategy ‘Principles and Issues’ Paper has been subject to a 12 week public consultation, to help inform the issues that the Strategy will need to address, and an extensive common evidence base has been made available, including innovative work to develop our understanding of the functioning of places and the environmental considerations of sustainable growth.

Relationships and sub-regional activity The NWDA continues to strengthen its relationship with Sub-Regional Partnerships (SRPs) and with other regional and sub-regional partners including the newly formed Homes and Communities Agency, and 4NW, the new Regional Leaders Forum.

The NWDA has supported the development and delivery of Multi-Area Agreements in the region (Greater Manchester, Pennine Lancashire, Blackpool/Fylde Coast and Liverpool) and developed its approach to Joint Investment Planning. We welcome the announcement in Budget 2009 about pilot city-regional status for Greater Manchester and will work with Government and Greater Manchester to further develop our joint investment priorities around the new Greater Manchester Strategy.

Further sub-regional strategic activity in the past year has included:

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NWDA support for the year-long Manchester Independent Economic Review which aims to provide a strong and fresh economic narrative for Greater Manchester and a firm basis for the 2009 Greater Manchester (GM) Strategy

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Supporting the development of the newly formed Liverpool vision Economic Development Company, and work to deliver and capitalise on the successful 2008 European Capital of Culture

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In Cheshire, the NWDA has supported the creation of a new partnership between the Warrington, Cheshire East, Cheshire West and Chester Councils to work together to share and tackle common economic challenges

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Joint work with Fylde Coast Local Authorities and the HCA to develop the Blackpool/Fylde Coast/Wyre MAA, which may include the creation of a new Economic Development Company covering the area to build on the work of ReBlackpool URC and ensure the area is seen in a wider economic context. The principles of how it may be structured and its role and objectives are under discussion with a view to commencing operations in April 2010 if approved by MAA partners

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Support for the development of the Cumbria Economic Strategy which has identified Tourism and Energy and work with the sub regional partnership, Cumbria Vision, regarding joint investment planning. A number of priority regeneration projects and programmes to progress over the next three years have been identified, with the potential to create over 11,000 new jobs in the long-term. These include the Britain’s Energy Coast Masterplan (developed under the auspices of the West Cumbria Strategic Forum).

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Approval of the Carlisle Renaissance Action Plan 2009-12, which sets out four transformational priorities for the city, and how the Partnership (NWDA, Carlisle City Council and Cumbria County Council) will deliver these priorities which include establishing a world class university for the whole of Cumbria with its headquarters in the city, and promoting Carlisle’s unique heritage and cultural offer.

Scrutiny Scrutiny of NWDA has continued to be undertaken by 4NW with Business Link and support for rural areas the topics being covered this year with positive outcomes.

These arrangements will change with the introduction of Regional Select Committees, which we have appeared before for the first time in April 2009.

Northern Way The Agency has continued its support and investment for the Northern Way initiative, the partnership across the Northern regions, led by the RDAs (with Yorkshire Forward and One North East). 2008-09 has seen considerable progress on the priority policy areas – transport, innovation in industry and private investment. This year saw the opening of a third platform at Manchester Airport station to improve cross-northern connectivity, and work to expand the capacity for freight access from the northern ports, and for larger freight containers across the wider rail network. The NWDA continues to lead the innovation workstream, with projects looking into offshore wind, carbon abatement technology, printable electronics and the NorthernNet e-connection network. The NWDA will also lead work to expand the Northern Way Innovation work into Energy issues.

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Lead role responsibility The Agency has had a successful lead RDA role for Skills and Employment and has retained the lead role for the Department for Children, Schools and Families going forward. Achievements include working closely with DIUS, BERR and the RDA network to ensure that the Train to Gain Integrated Skills Brokerage was able to go live nationally on 1st April 2009 through Business Link. Recent influence through the DCSF lead role has led to NWDA representing the RDA network on the DCSF national panel overseeing the transition of 16-18 delivery from the LSC to local authorities.

The NWDA has also taken on the lead RDA role for the Department for Energy and Climate Change (DECC). Achievements so far include the development of a Partnership Agreement with DECC. This provides significant opportunity to promote and support the development of national Government policy and to identify, share and adopt pan-regional good practices.

From April 2008-October 2008 the NWDA undertook the RDA Chair of Chairs role, leading and coordinating work on the national evaluation of RDAs and ongoing work in response to the SNR. It has also hosted, and continues to host, the RDA National Secretariat Business Improvement and Organisational Change The NWDA is undergoing a process of business improvement and organisational change to ensure that the organisation is fit for purpose in light of the SNR, our more strategic role and our increasing focus on supporting business in the short term.

These changes will allow the NWDA to continue to develop a more strategic, commissioning role and to develop an approach joint investment planning with local and sub-regional partners.

Furthermore, the NWDA has also been reaccredited with Investors in People status, exceeding the model within a number of key areas, including strategic planning, involvement of stakeholders and its people management programme.

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6. NWDA Priorities for 2009-10 The NWDA has a critical role to play in supporting the region and businesses and helping the Northwest emerge strongly over the next year. This will include both new and ongoing initiatives, maintaining a close dialogue with businesses and banks, and feeding intelligence to Government and regional partners to inform policies and initiatives. The NWDA will also play an ongoing leadership role in the JEC, including driving forward the initiatives to prepare for the economic upturn.

The NWDA will seek to fully reflect and embed recent Government statements and guidance on future investment priorities for RDAs. This will focus on a new investment framework for all future NWDA investment, which as well as prioritising support for business and developing the region’s strengths for the future, will also embed the lessons learned from the RDA evaluation exercise to ensure maximum impact and value for money. The future aim of the NWDA is to maximise our impact on increasing productivity, creating jobs and supporting sustainable economic growth across the Northwest.

Following the request from BERR, the NWDA has refreshed its Corporate Plan for the 2009-2011 period. This reflects the Agency’s revised investment priorities, and also the revised outcomes which the Agency will seek to deliver. It will increase immediate support for business, and continue long-term investment in capital projects, skills and other activities to stimulate recovery and position the region for sustainable long-term growth. The NWDA will also work with Government to develop the ‘New Industry: New Jobs’ agenda and develop the region’s competitive position.

The NWDA will continue to respond to further developments from the SNR. This includes support for the development of statutory city-regions, in particular in Greater Manchester, and developing our approach to Joint Investment Planning across the region. We will continue to develop our relationships with regional and sub-regional partners, and will support local authorities to develop their capacity on economic assessments where appropriate. The NWDA will work with 4NW to develop a new Single Regional Strategy for the Northwest, collaborating widely with partners across the region on the issues that the strategy will need to address.

The NWDA will continue to manage the ERDF in the region, aligning this with NWDA and other domestic funding where possible to support competitiveness and preparing for the economic upturn. The NWDA will also review and develop our organisational capacity to reflect the NWDA’s changing role and response to the economic conditions.

The NWDA’s investment priorities and strategic activity in 2009/10 are outlined in more detail in our external business plan. Some of the key investment priorities include: • The launch of a new Venture Capital Loan Fund, to help businesses to gain access to finance to innovate, invest and grow in the region •

A £35m new Business Start Up Programme for the region

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Bringing forward up to £20m of capital investment to help support development schemes which are under threat

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A £40m package to stimulate business investment in skills

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Continuing to highlight the region’s competitive advantage as a place to do business

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These are challenging times for the region, however the NWDA is well prepared to support business through the recession and to drive forward the economic potential of the Northwest, thus paving the way for future regional success.

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