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Growth requires the courage of all

By Colin Bell, Business and Sector Growth Director at the North East Local Enterprise Partnership


Last month the Office for National Statistics released the latest business count for the UK. Unfortunately, they told an all too familiar story for the North East. We still rank bottom and our low levels of enterprise continues to be a major drag on our economy.  

In the North East only 332 private sector enterprises exist per 10,000 adults, compared to 483 for England excluding London. If our rates matched the English average there would been almost 25,000 additional enterprises in the North East, generating 200,000 additional jobs and providing a £10 billion boost to the economy.  

The underlying aspiration is there. A study by SME Loans highlighted that 55.6% of the North East’s workforce would like to start their own business. 43% however instantly write themselves off, believing that they couldn’t pull it off, and only 1% take the plunge and start their own business.  

Imagine if we could change that 1 % to 10%; the transformation would be huge and felt by everyone. This isn’t just an economic issue, it’s a social and an environmental one too. It’s my belief that start-ups and small enterprises are central to enabling social mobility; providing opportunities to people who just could not access them through big corporates or institutions. And the innovations that will save our planet will originate from small disruptive businesses – enterprise is a force of change and a force for good!   

The big question is, what can we do to encourage more people to start their own enterprise?  

A good starting point is to focus on what’s holding them back. Fear of failure and the consequences that this will have on livelihoods, finances, family, careers, childcare and wellbeing holds back 42.7% of our aspiring entrepreneurs. The cost-of-living crisis will only see this grow. 

Tackling these deeply engrained and often cultural causes of low enterprise needs to be a focus for future interventions at a local, regional and national level. Policy must be designed to grow confidence and reduce the fear and associated risks of failure. The fear of not doing it needs to be greater than the fear of doing it. 

Continuing to do the same old things and expecting different results will simply no longer cut it. All eyes are on our new growth-orientated government and the role entrepreneurs and small growth-orientated businesses will play. What bold and transformational policies will be championed by The Rt Hon Grant Shapps MP, the newly appointed Secretary of State for Business, Energy and Industrial Strategy. And how will new domestic funding streams such as the UK Shared Prosperity Fund better target the causes of low levels of enterprise?   

The North East LEP’s Business Growth Board is clear. Bold action is needed, we must move away from the current confused, transactional, grant-led and tick box approach to business support, to one that is focused on tackling the real underlying causes of low levels of enterprise, productivity, and growth.

The opportunity is there, what is now required is for decision makers – like our aspiring entrepreneurs – to have the courage and foresight to step over the line and lead the change.  

Colin Bell is Business and Sector Growth Director at the North East Local Enterprise Partnership.

Entrepreneurs and business owners looking for help and support to start or grow a business can access free, impartial advice by visiting the North East Growth Hub.

See the latest data on businesses in the North East – including business counts and information on high growth businesses – on the North East Evidence Hub, the region’s one-stop-shop for data and evidence: www.evidencehub.northeastlep.co.uk/businesses.

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Training for a future in the green economy

Anthea Pratt, Skills Programme Manager at the North East Local Enterprise Partnership (North East LEP) explains how we can design training for jobs of the future.

When we commissioned the Domestic Retrofit Skills Needs Assessment, with the North East and Yorkshire Net Zero Hub, we knew that the urgent drive to reduce the UK’s carbon emissions was going to bring changes to the jobs market.

And when the results of the assessment came in, showing that up to 80,000 skilled workers will be needed in the North East and Yorkshire if the UK is to reach its net zero target by 2030, we knew that this presented a huge opportunity for our region.

A separate study by Energi Coast found that the offshore wind sector alone in the North East can support the creation of between 6,000 and 9,000 jobs by 2025.

It’s clear that the North East will see a big increase in the number of skilled jobs available in the green economy. So how do we make sure people in our region are equipped with the skills needed for these new roles?

Meeting the demand for new, skilled workers

If we’re to meet this demand for new, skilled roles, we need to start with our training provision: one of the first things we do must be to increase the current capacity we have for training people and equipping them with ‘green skills’. Even though many of these new roles will emerge in years to come, we need the teachers, trainers and courses in place now for people to begin to upskill.

That’s why the North East LEP has been working with training providers and businesses to roll out Skills Bootcamps for green skills in our region.

These bootcamps are part of the Government’s Lifetime Skills Guarantee, helping everyone gain skills for life, and we were awarded £2.4 million for bootcamps focusing specifically on the green skills that we know our region needs.

New and flexible ways of learning

We are building a skills offer to enable the North East to achieve a green and sustainable carbon neutral future.

As part of this we’re increasing and diversifying the North East’s skills provision by introducing and testing new types of training courses and new methods of learning.

These widely accessible Skills Bootcamps are for people over the age of 19, including those who are already employed in green sectors and are adding to their current skillset to progress in the workplace; people who are currently self-employed, providing them with the skills and qualifications needed to access increased contracting opportunities; and people who want to get a job in renewable energy, domestic retrofit or electric vehicles for the first time, providing flexible courses to help them secure new roles.

And as well as individual learners, who can access the Skills Bootcamps free of charge, the training is open to businesses which are looking to upskill their existing workforce.

An evolving offer

Our aim is to continue gathering evidence about the skills people will need in the future.  We’re talking to employers about what they need, and we’ll develop our training offer to make sure it fits the needs of the green economy as it grows and develops

Registration for the first wave of Green Skills Bootcamps in the North East is open now. Find out more here.  

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New Getting Building Fund supported development set to boost jobs in North Tyneside

MORE jobs are set to be created after the completion of a new industrial development in North Tyneside.

Commercial property and investment company UK Land Estates has finished construction of a new £4.5m building at its Tyne Tunnel Trading Estate.

The speculative development was partly funded with a £731,818 grant from the North East Local Enterprise Partnership (LEP) via the Government-backed Getting Building Fund.

The North East LEP is managing £47m awarded through the Getting Building Fund to support capital investment across the North East. The Fund was established during the early weeks of the coronavirus pandemic to kick-start the economy, create jobs and help areas realise growth opportunities coming out of the pandemic.

The new building offers a total of 48,666 sq ft high quality industrial space for a range of occupiers and has an ‘A’-rated Energy Performance Certificate (EPC) with an array of photovoltaic (PV) panels on the roof providing free green energy for occupiers. 

Demand is high for the development, known as L6 and situated on the Intersect 19 area of the Tyne Tunnel Trading Estate, with the unit already under offer from a potential tenant.

As well as having space for up to 125 full-time staff, L6 also supported jobs in the region’s construction sector during its build phase.

Tim Witty, development director at UK Land Estates, said: “We are delighted to have completed this important new building for businesses in the North East.

“As we have already seen in the response to L6’s completion, there is a lot of demand for this kind of accommodation from a wide range of different companies.

“However, carrying out speculative development in the current economic climate can be challenging so we were very grateful to the North East Local Enterprise Partnership for providing grant funding towards this project via the Getting Building Fund.

“The additional capital ensured we could get on with the build earlier than would otherwise have been possible, ensuring we could meet demand for high quality industrial space quicker.”

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “Despite recent economic shocks that have led to a cautious outlook for businesses, many are continuing to invest in their futures and sew the seeds for growth.

“Interest in commercial property across the North East has remained high, and the completed L6 industrial space on Tyne Tunnel Trading Estate is another example of how our region is delivering the infrastructure to support business growth, create more and better jobs, and strengthen the economy.

“This development is one of 20 projects across the North East LEP area to receive investment from the Getting Building Fund; ensuring key, strategic capital investments could continue during the pandemic and support our region’s economic recovery.”

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£2.4 million awarded to deliver green skills training in the North East

Funding of £2.4 million has been awarded to deliver a new programme of Skills Bootcamps in green skills in the North East, helping to equip people with the skills they need to take on roles in the growing ‘green economy’.

Coordinated by the North East Local Enterprise Partnership (North East LEP), the courses cover topics ranging from green construction to wind energy, and are on offer to anyone over the age of 19. They are funded by the Government’s National Skills Fund.

Michelle Rainbow, Skills Director at the North East LEP, said: “We know that, with the national drive to reduce carbon emissions, thousands more skilled jobs will emerge in the energy sector in our region.

“We want people and businesses in the North East to be in a position to take advantage of these opportunities and that’s why we’re working with employers and training providers to deliver this new programme of Skills Bootcamps.”

The Skills Bootcamps in green skills are free, flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills and fast-track to an interview with a local employer. They are part of the Government’s Lifetime Skills Guarantee, helping everyone gain skills for life.

Learners can gain accredited and non-accredited qualifications at a range of levels and the Skills Bootcamps in the North East are designed to prepare people for a variety of job roles including working with renewable energy technologies like solar and wind power, and retrofitting homes with equipment such as heat pumps.

The Skills Bootcamps in green skills are open to individual learners and also to businesses that want to upskill existing staff.

“The bootcamps in our region are informed by recent studies which have taken place, looking at the skills which will be needed in our energy sector in the coming years,” added Michelle.

“They’re perfect for someone who wants to add to their existing skillset – for example, a plumber who wants to learn how to install heat pumps – and also for people who want to enter the renewable energy industry for the first time, whether they are self-employed, unemployed or currently work in a different sector altogether.”

The Domestic Retrofit Skills Needs Assessment, which was commissioned by the North East LEP and the North East and Yorkshire Net Zero Hub, revealed that up to 80,000 skilled workers will be needed in the North East and Yorkshire if the UK is to reach its net zero target by 2030. It identified the types of skills required and areas where existing training provision needs to be extended.

The North East LEP is working with training providers and businesses in the region to tailor the Bootcamps to the North East’s skills requirements and to ensure that learners are offered a guaranteed interview with a local employer on completing the course.

Registration for the first wave of Skills Bootcamps in green skills in the North East is open now. Find out more at www.northeastgrowthhub.co.uk/skills-bootcamps/

Photo by Michael Fousert on Unsplash

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Economic prosperity and cost of living are focus for North East LEP’s Our Economy event

Expert speakers from The Institute of Directors, CBI (Confederation of British Industry) and the Resolution Foundation will join the North East Local Enterprise Partnership (North East LEP) on Tuesday 15 November to discuss economic prosperity in the region and the cost of living crisis as part of the North East LEP’s annual Our Economy event.

Looking at the current performance of the North East economy and how it’s developing over time, and key national and international issues impacting the region; Our Economy has been expanded in 2022 and returns to an in-person format at Crowne Plaza Newcastle. 

This year’s event will focus on how the economic gains in the North East from 2014-2020 have been impacted by recent economic shocks, and the prospects for prosperity for the region’s business and residents.

Kitty Ussher, Chief Economist at The Institute of Directors; Mohammed Jamei, Director of Economic Projects at the CBI; and Mike Brewer, Deputy Chief Executive of the Resolution Foundation; will join Richard Baker, Strategy and Policy Director at the North East LEP, to discuss living standards in the region and the trends for incomes, wealth and poverty for residents; and how the environment for business is changing and what the prospects are for investment, business growth and employment.

Lucy Winskell OBE, Chair of the North East LEP, will open the event and host the panel discussion.

Lucy said: “Each year the North East LEP uses data gathered from the North East Evidence Hub to present the current economic outlook in the region.

“By gathering and using data, evidence and knowledge in this way, we’re able to inform strategic economic planning and work with political and business leaders to inform decision making. 

“This kind of evidence-based approach is essential; particularly in such turbulent economic times.” 

Our Economy 2022 will explore what the future holds in the economic and financial environment, and what this means for prosperity in the North East. It will also consider what can be learnt from responses to previous economic shocks as residents, businesses and institutions navigate their way through the current cost of living crisis.

A series of in depth, expert panel discussions will take place following the main Our Economy event to explore some of the themes and issues raised. Topics include evidence and data; business – discussing what the evidence means in practice; people – the implications of the cost of living on people and communities; and emerging markets.

Richard Baker, Strategy and Policy Director at the North East LEP: “We’ll be asking leading economists from the CBI and the Resolution Foundation for their insight on living standards and the costs and wider environment for doing business. 

“Understandably there are real concerns about net incomes and current living standards for residents as well as significant challenges for business resilience. 

“Our Economy 2022 is an opportunity to debate what we can do in the region to help drive forward at this time of uncertainty.” 

All the evidence and data presented as part of Our Economy 2022 will be available on the North East Evidence Hub.  Our Economy 2022 takes place on Tuesday 15 November from 9am at Crowne Plaza Newcastle.

Tickets are free and can be booked by visiting the eventbrite page.

For more information about the North East Evidence Hub, visit evidencehub.northeastlep.co.uk.

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North East LEP reaction to ONS regional labour market statistics

The North East Local Enterprise Partnership’s Chief Executive, Helen Golightly OBE, has commented on today’s regional labour market statistics, released by the Office for National Statistics (ONS). The data updates on key indicators within the Strategic Economic Plan.

Today’s release includes quarterly data for the North East region (for the period June to August 2022). The region includes the North East LEP area and Tees Valley.

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership (North East LEP), said: “The data released today shows the labour force in the North East is following a similar pattern to the rest of England.

“It is a cause for concern that both nationally and in the region we have seen the number of people in employment fall, unemployment fall and further growth in the number of people becoming economically inactive – where they are not looking for work.

“There is also evidence of a decline in the previous high rate of vacancies in the economy, with a particular impact on recruitment amongst small businesses employing fewer than 50 people.

“Nationally and regionally the labour market is slowing. There are currently 71.2% of people aged 16-64 in work, but the region still hasn’t recovered to pre-COVID levels of employment.

“At this time, people and businesses are focused on the cost of living and costs of doing business given rises in inflation and interest rates.

“PAYE data which has been released today shows that nationally employee pay continues to increase at a rate of 5.4% (excluding bonuses), at a time when costs of living in areas like energy and food are increasing at a higher rate. National data suggests that the impact on real terms pay is a decrease of about 3%. As we head into winter this will be an issue of great concern for both residents and employers.

“We welcome the decision by the Chancellor to bring forward the planned budget statement to the end of the month as it is clear that the economy requires ongoing support to return to sustainable growth and to provide support to businesses and residents through current uncertainty.”

Access all the latest labour market information on the North East Evidence Hub.

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North East LEP funding supports transformation of Gilbridge Police Station

The North East Local Enterprise Partnership (North East LEP) has invested almost £850,000 from government’s Getting Building Fund to support the transformation of the former Gilbridge Police Station into brand new, multi-use office accommodation in the heart of Sunderland city centre.

Renamed The Yard, the new building will provide high quality workspace for SMEs looking to grow their businesses in Sunderland, and attract companies back into the city centre, helping creating a thriving community of local businesses.

The Yard is one of 20 projects across the North East LEP area to receive investment from the Getting Building Fund. In total, the North East Local Enterprise Partnership is managing £47m awarded through government’s Getting Building Fund to support capital investment across the region. 

Helen Golightly OBE, chief executive of the North East Local Enterprise Partnership, said: “Despite a very challenging environment for businesses in the North East, we’re still seeing demand for high quality office accommodation in the region.

“Encouragingly, many businesses are looking to move back into our city centres, which is helping reinvigorate and reenergise these traditional business hubs after the pandemic.

“The Yard, along with the wider Riverside Sunderland development, is transforming Sunderland city centre and bringing investment into the wider region.”

Developer Hanro Group is leading the transformation of Gilbridge Police Station. When complete, the building will provide office accommodation – ranging from 500 sq ft to 23,000 sq ft – a business lounge, meeting rooms, cycle storage, EV charging, showers, natural ventilation, external ‘green’ space, and an area for outdoor events.

Laura Lloyd, Head of Portfolio at The Hanro Group, said: ”We are delighted that the North East LEP are supporting the creation of flexible, affordable office accommodation in Sunderland city centre through Hanro’s development of The Yard.”

The Yard is part of the Riverside Sunderland development led by Sunderland City Council. The city centre office building will complement additional commercial spaces that are being developed in the area, including Legal and General-backed Maker and Faber.

Riverside Sunderland will create a new central business district (CBD) in the city. When fully developed, the CBD will provide more than one million square feet of high quality office space, tailored to the needs of leading UK and international businesses. It will provide accommodation for 8,000 – 10,000 jobs, generating footfall and expenditure across the city centre.

Councillor Graeme Miller, leader of Sunderland City Council, said: “We’re thrilled to see work progressing at pace on The Yard, which will be a fantastic addition to the city.

“We have seen the success of similar developments in the city over recent years, with more and more businesses attracted to our transforming city centre, and we look forward to seeing The Yard open its doors and welcome more businesses and business-people to Sunderland.”

The Getting Building Fund was established early in the coronavirus pandemic to kick-start the economy, create jobs and help areas realise growth opportunities coming out of the coronavirus pandemic.

For more information about The Yard (formally Gilbridge Police Station), contact Bradley Hall on 0191 563 4242 or Sunderland BID on 0191 722 1002.

For more information about the Riverside Sunderland development, visit www.riversidesunderland.com.

For more information about the Getting Building Fund visit www.northeastlep.co.uk.

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North East LEP response to government’s Growth Plan

Helen Golightly OBE, Chief Executive of the North East Local Enterprise Partnership, said: “The announcement of the Energy Bill Relief Scheme will be welcome news for businesses in our region; many of whom faced a difficult winter because of rising energy costs. Businesses will want reassurance that ongoing support is available post 31 March and we look forward to seeing the results of the scheme’s three month interim review. Additional support announced for pubs and hospitality businesses is also welcome as these sectors were some of the worst affected by the COVID-19 pandemic.

“We await further detail on the new Investment Zones and confirmation on which local and mayoral combined authority areas will benefit from the new hubs. We also look forward to seeing how the North East will benefit from government’s plans to speed up road, rail and energy infrastructure across the country. There has been no update in today’s mini budget on future plans around the Levelling Up agenda and support for our key industries to grow so we’re keen to see more information from government on those areas.

“The government’s focus on increasing long term growth rates to 2.5% is positive news for the economy, especially as the UK has underperformed over the last decade. To deliver its growth plan, it’s important that government looks for opportunity to drive growth and investment in every part of the UK, and demonstrates how we can both deliver growth and level up the country.”

Read more details of government’s Growth Plan, announced on Friday 23 September 2022.

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North East digital businesses offered support to enter low-carbon energy sector

Digital businesses in the North East are being offered support to enter the fast-growing low-carbon energy sector, by developing solutions that could help reduce carbon emissions.

The North East Energy Innovation Challenge programme is open for applications until 30 September 2022 and offers SMEs the chance to forge links with major players in the North East energy sector, and to receive support to develop and bring a new product to market.

David Lynch, Energy Innovation Partnership Manager at the North East Local Enterprise Partnership (North East LEP), explained: “The low-carbon economy in our region is forecast to grow rapidly over the next few years, as the UK works towards meeting its net zero carbon targets.

“The Energy Innovation Challenge is designed to help businesses in our region take advantage of this opportunity, at the same time as contributing towards the reduction of carbon emissions.”

The challenge programme is led by the North East Energy Catalyst, which is a partnership of the region’s major energy organisations and assets, including the Offshore Renewable Energy Catapult, Northern Powergrid and British Engines. It also includes Sunderland, Durham, Newcastle and Northumbria Universities, which contribute their research and innovation capabilities, and Innovation SuperNetwork, which specialises in helping businesses to access finance and new market opportunities.

“By entering the challenge programme, businesses can benefit from some of the region’s most outstanding guidance and expertise, through the North East Energy Catalyst, including time with experts in accessing finance,” added David Lynch. “We want to help businesses in our region succeed and I’d encourage any SME that has an interest in expanding into the fast-growing energy sector to take a look at what’s on offer.”

The Energy Innovation Challenge programme is open to SMEs in the North East LEP area with fewer than 250 employees. Businesses can choose one or more of three challenge themes to address, including developing digital and data solutions which could help decarbonise private and public buildings.

The other two themes focus on improving materials used in electricity, gas and water infrastructure, and solutions to energy challenges in urban and rural areas.

Full details are available at challenge.northeastgrowthhub.co.uk, or by emailing David Lynch on [email protected].