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In conversation: Heather Heward, North East LEP Programme Manager: how a recent update to the European Social Fund (ESF) rules will unlock investment across the region.

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In our latest blog post, Heather Heward, North East LEP Programme Manager, discusses how a recent update to the European Social Fund (ESF) rules will unlock investment across the region.

We are delighted to announce that an ESF applicant no longer has to have all employer match funding in place before the project commences.

The North East Local Enterprise Partnership (LEP) has worked closely with the ESF Managing Authority to secure this change.

We’re extremely pleased with the decision as this will unlock significant private investment to upskill those in employment. These changes not only benefit the North East LEP area, but also will have the potential to unlock employer match across England.

Employer contributions are defined as the financial contribution made by the employer towards support put in place by the ESF project, for example financial contributions towards the undertaking of training for the workforce or employment costs associated with undertaking work placements and internships.

Each project will still be considered and appraised on its own merits. However, a project should be able to use employer contributions as match funding and remain compliant with ESF rules if grant applicants and employers maintain a detailed adequate audit trail and meet all ESF regulations.

Essentially, the project could now be approved and commence as long as there is a demonstrated level of demand for the service in terms of expected employer contributions.

The applicant will of course have to show really robust compliance at every stage but we think it really has the potential to transform the way we train and up-skill our workforces.

Here at the LEP, we are thrilled with the development as we feel it’s going give employers the boost they need by providing financial support towards the business-specific training they need to upskill their workforces; it will also provide the opportunity for employees to progress within the workplace.

We now need good, strong applications using the employer model to respond to the current ESF open calls to maximise these opportunities for local businesses. Details on the calls can be found on the LEP website here
We completely welcomes the news and look forward to seeing the economic benefits for the region.

If you have any questions, please get in touch.

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North East bid to be national testbed for 5G trial

Plans to position the North East as a key focus for the UK’s 5G revolution have been unveiled and will form the basis of a proposal to locate a national testbed here in the region.

The North East Combined Authority (NECA), the North East Local Enterprise Partnership (LEP), Nexus, the Digital Catapult Centre and the University of Surrey’s 5G Innovation Centre have joined forces through a memorandum of understanding to develop a plan to provide mobile phone operators and technology companies with the environment they need to test out how the next generation of mobile and wireless technology can improve the delivery of a wide range of services to people and businesses.

The ‘testbed’ programme would establish the region as a location of choice for a range of potential 5G applications in areas including energy, transport and health care. This will be achieved by creating a ‘fibreoptic backbone’ around the Tyne and Wear Metro system and linking different parts of the region to provide testbed opportunities.

The Government is looking to establish the UK as a global leader in 5G enabled communications and is seeking to establish a group of testbeds to trial the technology and a range of possible applications in environments where it will be used every day. The ambition is supported by Digital Catapult, which has identified 5G development as critical in unlocking digital growth in the UK economy.

Richard Baker, North East LEP Head of Strategy and Policy, said: “Our diverse and well-connected economy means that North East England is ideally positioned to play a key role in helping the UK meet its aim of being a global leader in 5G development. Our aim is to ensure that the region can seize the economic opportunities presented by 5G by being involved in the early stage testing needed to develop national 5G capability.

“By 2030, it is estimated that the 5G enabled communications industry will be worth £198bn a year to national GDP and we want the North East to be at the forefront of this revolution, creating opportunities for local businesses and attracting new investment technology, as well as to ensure that our residents can benefit from new and improved services.”

Dritan Kaleshi, Digital Catapult’s 5G Fellow, and member of the Steering Group for the project added: “The role of the Digital Catapult is to ensure that new digital technologies deliver economic growth and new opportunities for businesses and services to the public. 5G has the potential to revolutionise each of these areas. We welcome to opportunity to work with the North East on this project which could add significant value to the UK’s work to be in the forefront of this global revolution.”

Keith Robson, Chief Operating Officer of the University of Surrey’s 5G Innovation Centre said: “The next generation of digital communications technology aims to significantly enhance the performance of digital connectivity in terms of reliability, speed and accessibility.

“This will change the way that devices can connect to each other by embedding boundless connectivity for mobile devices and online customers in the UK. 5G has the potential to transform industry and services through multiple new applications, huge data storage and critical communications capacity. We believe that the North East has a unique offer to make to this national initiative and are pleased to be working with North East partners to realise this with the support of our own regional LEP, Enterprise M3..”

Tobyn Hughes, Managing Director of Nexus, the public body which owns and runs the Tyne and Wear Metro, said: “We are delighted to be at the heart of this project, which is built on the unique infrastructure the Metro system’s region-wide fibre connectivity provides. It will enable us to test how 5G can improve transport services, but will also be able to provide the platform for testing other applications across the economy.”

The North East partners have secured initial funding from the North East LEP to develop a business case which will lead to a bid for investment in the testbed to the Department for Digital, Culture, Media and Sport. If successful, the 5G mobile technology trials could see a range of opportunities for local business to engage with 5G development and see new services developed in the region.

The University of Surrey’s Government-recognised National Centre of 5G Industry Excellence is funded by major mobile phone operators and manufacturers who are looking for an environment to test the new technology which will reflect everyday conditions of use. It is backed by the Enterprise M3 LEP who have made it one of their key centres for their drive to capitalise on the growing global opportunities for Digital Enabling Technologies.

Mobile phone and internet providers say it is critically important to establish how the technology performs at a pre-commercial stage.

Councillor Paul Watson, Chair of NECA, said: “The North East partners see trials as an opportunity to be in the first wave of 5G‐enablement, improve the region’s digital infrastructure and position the North East as the first choice for inward investment in digital industries. We’re confident of producing a strong bid that will not only highlight the region’s suitability as a testbed but also demonstrate that we are primed and ready to go on this project.”

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North East LEP ONS Regional Labour Market Statistics Reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“It is disappointing to see a decline in the number of people in work and a rise in the numbers unemployed over the last quarter. We’ve seen the numbers in employment decline by 11,000 and the number of 16-64 year olds unemployed increase by 7,000.

However, it is worth noting that the North East’s labour market performance across the year as a whole has been positive overall with more people in work than a year ago and fewer unemployed,” said Victoria.

“In particular, the decline in the North East’s unemployment rate over the last year – from 7.6% to 6.1% – is the largest decline of all regions.”

Victoria added: “Many other regions have also seen challenging results this quarter. We will continue to monitor the data to understand whether this is the beginning of a trend or a short-term fluctuation. Nevertheless the results underline the need for continued investment to drive growth at this time of economic uncertainty.

“The North East LEP will continue to work with its partners to deliver the Strategic Economic Plan and to make the case that the Government’s Industrial Strategy must deliver for the North East.”

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£5 million industrial units development given the green light

Planning permission has been granted for three new large industrial units in Hebburn. The units, which will be built on the Monkton Business Park, are expected to create over 100 jobs.

Washington-based Hellens Group, which is leading the project to create 55,000 square feet (5,110 square metres) of new industrial space, has received £1.27m from the North East Local Enterprise Partnership’s (LEP’s) Local Growth Fund that is helping a range of industrial and commercial infrastructure projects across the North East LEP area along with loan funding of £1.7M from the North East Investment Fund (NEIF), an evergreen loan fund also administered by the North East LEP

Gavin Cordwell-Smith, chief executive at Hellens Group, said: “The development is fantastic news for South Tyneside and the wider region. These new units will offer growing businesses modern manufacturing space with 6-8m eaves height, and good power availability. We will work with prospective tenants to develop the internal layout of the units and offer cost-competitive rates on long term leases. We are tremendously appreciative of the support for the project that we’ve had from both South Tyneside Council and the North East LEP.”

Work will commence on site in September with a target completion date of September 2018. There will be one large unit of 30,000 square feet and two smaller units of 15,000 and 10,000 square feet although there is the option for prospective businesses to combine the two smaller units into a 35,000 square foot facility. The units will come with their own service yards and parking facilities.

Monkton Business Park has rapidly developed into a key business location in South Tyneside. The 16ha site provides a range of office and industrial facilities on the edge of town, on a landscaped setting which forms part of the Great North Forest. The southern part of the site provides a major new office campus, with more than 18,000m2 of speculatively built new office space, while a range of manufacturing accommodation is provided to the north.

The site is located close to the A184 – between the A19 and A1- in close proximity to Newcastle and Sunderland. The location gives excellent access to the regional road network and is well placed to serve manufacturers with supply chains north and south of the River Tyne. Importantly, it is less than 15 minutes away from the planned International Advanced Manufacturing Park (IAMP) and Nissan’s Sunderland car plant.

The site is already home to a number of companies including Siemens, Hitachi Construction Machinery Ltd, Variable Message Signs (VMS) Ltd, Ford Component Manufacturing, Clugston Construction and Kier North along with many others.

Leader of South Tyneside Council, Councillor Iain Malcolm, said: “This is excellent news for South Tyneside, with regional funds from the LEP being used in a targeted way to grow the borough’s business prospects. I’m delighted that funding from LEP’s North East Investment Fund and the Local Growth Fund will enable construction of these much-needed units to get underway this year.”

The £270.4m Local Growth Fund, secured as part of the North East Growth Deal, supports the North East LEP’s delivery of the Strategic Economic Plan, which aims to create 100,000 more and better jobs by 2024. The North East Investment Fund was established as an evergreen loan funding to support capital projects that will lead to job creation.

David Land, Chair of the North East LEP’s Investment Panel, said: “Businesses in our region, particularly growing SMEs, are looking for new, state of-the-art facilities. Hellens Group has a strong track record in delivering projects and this scheme ticks many of the boxes in the LEP’s priorities and objectives, including supporting enterprise and private sector business growth; and strengthening transport, connectivity and infrastructure in the region.

By investing and developing in new infrastructure we can help create more and better jobs for the North East.”

Once built, the three units will be retained by Hellens Group and available to let by way of FRI leases.

Over the past five years Hellens Group has invested in excess of £10 million on a programme of new developments across the North East.

The company has already received a number of speculative enquiries from prospective tenants, from a range of manufacturing companies including both SME’s and larger businesses. Businesses wanting further information on the Monkton Business Park units should contact GVA or HTA Real Estate who are acting as joint agents for the development.

Notes to editors:

About Hellens Group

The Hellens Group based in Washington, Tyne and Wear, includes property, construction and manufacturing businesses with interests throughout the North East and Yorkshire.

The original business (John Hellens (Contracts) Ltd) was founded in 1973 in the North East of England. Focusing at that time on the regeneration of brownfield sites, the company became leading experts in this field throughout the North of England.  Over the years the company has adapted to changing market conditions and has moved into sports and recreation facility construction, land and property development and investment as well as manufacturing of hard landscaping products for the building industry.

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Region’s schools and colleges pledge their support for North East Ambition

More than 280 people representing schools, colleges and education institutions across the region joined the North East Local Enterprise Partnership (LEP) on Friday 14 July to pledge their commitment to improve careers education for each and every student in the North East.

The launch of North East Ambition saw more than 130 schools and colleges sign up to adopt, implement and achieve the Good Career Guidance benchmarks eight clearly defined benchmarks for high quality careers education that improve students’ transition from school to work by identifying routes to a successful working life.

Andrew Hodgson, Chair of the North East LEP said: “Following the success of the Good Career Guidance benchmarks pilot led by the North East LEP, it’s fantastic to see commitment from schools and colleges across the region that more young people will have access to life-changing careers education.

“The attendance at the event demonstrates the overwhelming commitment from those in education, business and other areas of industry to support North East Ambition and improve opportunities for our region’s young people. The North East LEP has worked hard to bring the sectors together in what is a unique collaboration that covers the entire region.

“Ensuring our future workforce is work ready is key to the economic success of our region. Improving skills is at the heart of our strategic economic plan and supporting schools and colleges to implement the Good Career Guidance benchmarks will help us achieve this.

“We’re well on our way to achieving our aim of 100,000 more and better jobs by 2024 and the launch of North East Ambition reinforces that ambition.”

David Baldwin Executive Headteacher at Churchill Community College and Norham High School said:

“We, as educators, all have a responsibility to ensure that we can help children become an effective part of society. The Benchmarks provide an effective framework for careers education, information, advice and guidance that allows us to do this.

“Leadership is crucial to making the Benchmarks work – I’d urge schools and colleges to ensure careers is represented on their senior leadership team and that there is resource in place, internally and through partnerships, to deliver the guidance.

“This isn’t about money, it’s about appropriate allocation of resource to help young people be ambitious, and achieve those ambitions. I’m delighted to see the Benchmarks being celebrated and look forward to them being adopted by more schools and colleges.”

North East Ambition builds on the success of the Good Career Guidance benchmarks pilot in the North East LEP region, which involved 16 schools and colleges. Recognised nationally as ‘transformational’, the pilot has gained significant national traction.

The 16 schools and colleges involved in the pilot attended the event, as did schools and business leaders enrolled in the North East LEP’s Enterprise Adviser network, which sees business people from some of the North East’s most successful industries work strategically with senior leaders in secondary schools to shape the quality of careers provision.

Michelle Rainbow, Skills Director at the North East LEP said: “We’ve seen what a positive impact the benchmarks can have on both schools and students.

“North East Ambition is about ensuring all young people, regardless of their starting points or backgrounds, have access to high quality careers advice that improves opportunities for them in their working lives.

“The initiative brings education, business and other stakeholders together to deliver effective and innovative careers education fit for the 21st Century.”

Schools and colleges attending the launch will be invited to a second event later in the year demonstrating how to put the Good Career Guidance benchmarks into practice. A North East Ambition toolkit is also available via the North East LEP website, www.nelep.co.uk

For more information about North East Ambition, visit www.nelep.co.uk/improving-skills(

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North East business leaders urged to begin preparations for Brexit

Businesses in the North East are being urged to prepare for Brexit by the North East Local Enterprise Partnership (LEP).

In association with the CBI and Newcastle-based law firm Ward Hadaway, the team at the North East LEP is hosting a free briefing event called The Impact of Brexit on Business, at which speakers from each of the organisations will provide local, national, legal and practical perspectives on the changes Brexit will bring for the region’s businesses.

Colin Bell, Business Growth Director at the North East LEP, said: “The reality is that we don’t yet know the minutiae of how Brexit will affect business but that doesn’t mean that we can’t begin to prepare for the changes it will bring.

“The key question therefore is how can businesses best prepare for what’s largely unknown? We’ll be talking more about managing risk, developing a flexible and adaptive culture, and advising business leaders on where they can go for advice as the implications of Brexit become clearer.”

The free seminar, which takes place on Wednesday 21 June, is aimed at senior management in the private sector.

Sarah Glendinning, Regional Director of the CBI, will talk about the national perspective on Brexit, Colin Bell will give an update on the North East perspective, and Colin Hewitt, Partner and Head of Commercial at Ward Hadaway, will talk about legal and practical considerations.

“This event will be particularly important for any companies trading within Europe or looking to establish markets overseas,” said Colin Bell.

“Having the ability to manage and lead your business and its people through change is going to be critical and it’s never too early to start the process of planning for this.”

Colin Hewitt from Ward Hadaway said: “There has been an awful lot of talk about Brexit since the vote to leave the EU last June, obviously many businesses are unsure about what it will mean for them and how they can best prepare for what is to come.

“The general election result has of course thrown further uncertainty into the mix, with a potential change in the approach to negotiations.

“Despite this, there are some issues that businesses can start to address and some practical steps which companies can take now in order to prepare themselves for what the Brexit negotiations may bring.

“Attending this seminar will give senior managers a useful overview of some of the key issues, where we currently stand, what they can expect over the coming months and what they can start to do now to be ready to meet the challenges.”

The North East LEP will be holding regular events on Brexit in association with Ward Hadaway and the CBI throughout the period of the negotiations.

The Impact of Brexit on Business takes place on Wednesday 21 June, from 8am to 10.30am at Ward Hadaway on Newcastle’s Quayside. There are still some places available and you can book on our eventbrite page here.

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North East LEP ONS Labour Market Statistics reaction

Victoria Sutherland, North East Local Enterprise Partnership (LEP) Senior Economist, today welcomed the continuing employment performance of the regional economy.

“Today’s ONS statistics show sustained and continuing employment growth and falling unemployment,” she said.

“Over the past year, the number of people in work has increased by 26,000 and 25,000 fewer are unemployed. Women account for almost two-thirds of the increase in employment, with an additional 17,000 women in work compared to a year ago.

“Amongst the 16-64-year-old population, the unemployment rate is 5.5%, compared to 7.4% last year.

“The employment rate is now 72.2%, up from 70.5% a year ago.

“Importantly, the North East continues to close the employment rate gap with the national average. This is one of the key performance targets in the Strategic Economic Plan, with the aspiration for the North East region to provide more and better employment opportunities in the decade up to 2024.”

Ends.

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North East LEP – Election response statement

Andrew Hodgson, chair of the North East LEP said: “How Britain negotiates its exit from the EU will have a huge impact across the United Kingdom and especially here in the North East.

“We will continue to work with all parties to achieve the best outcome for the region as the Government strives to secure the best deal for the UK.

“We remain committed to delivering the North East’s Strategic Economic Plan, which has already created an extra 58,200 jobs in the local economy, and which will inform our response to future Government policy.

“At this time of change and uncertainty we reaffirm our commitment to working in close partnership with the business community to ensure the North East’s strategic priorities remain high on the national agenda.”

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Vision becomes a reality for city business partners

Members of Sunderland Business Group met recently at Hope Street Xchange, the University of Sunderland’s new centre for enterprise and innovation, designed to support the city’s entrepreneurial growth.

Hope Street Xchange is a £10m centre for enterprise and innovation, funded by the University of Sunderland and supported by £4.9m investment from the North East Local Enterprise Partnership’s Local Growth Fund. The centre supports fledgling start-ups and offers space for existing businesses to develop and grow. Located on the University’s city centre campus, it also serves as a gateway to the University’s research, expertise and problem solving provision.

Sunderland Business Group was behind the initial proposal for a one-stop shop to increase entrepreneurship in the city and tackle the low levels of enterprise and business start-ups in the region. Representing leaders from public and private sectors, the Business Group works collaboratively on strategic projects to support Sunderland’s growth and prosperity; the University is one of the group’s founding members, and has been central to its many successful initiatives, all of which have benefited the city.

Shirley Atkinson, Vice-Chancellor at the University of Sunderland, commented: “The Business Group’s vision was to create a hub where businesses can interact with the University to support their innovation and growth. That could be for internships and placements, knowledge transfer partnerships or higher or degree apprenticeships. We also wanted to support creative endeavour through access to facilities and laboratory space – including the region’s first FabLab where designers and entrepreneurs can prototype ideas using the latest digital fabrication facilities.

“The approach proposed by Business Group partners resonates with our University’s vision, as outlined in our Strategic Plan ‘We are the Tomorrow Makers’. This plan, which we launched last autumn, sets out a bold ambition for Sunderland graduates to become the future leaders of societies and economies. The plan also articulates the University’s role as an anchor institution in the North East, making significant social, economic and cultural contributions to its locality. A recent independent economic impact study estimates that the University generates £432m GVA for the North East economy, supporting 5,400 jobs, we’re very proud of that impact and that our ‘Tomorrow Makers’ vision will become reality through this University and city initiative.”

Now open, Hope Street Xchange will accommodate 49 established businesses and 150 new business ventures, creating almost 400 jobs in innovative, high-growth sectors linked to the University’s academic strengths and research practice, including advanced manufacturing and technology, health sciences, business and finance, and the creative and cultural sector.

Hope Street Xchange will also provide immediate access to a wealth of ‘real life’ applied research, practical business advice, expert mentoring, knowledge transfer partnerships and support through student work placements and graduate interns.

Hans Moller, Innovation Director at the North East LEP, said: “The finished building provides a nurturing environment to support innovative entrepreneurialism and welcomes businesses large and small to engage with the University. We’re excited to see the great things that will no doubt emerge from such an enterprising initiative.”

As well as the region’s first FabLab the centre includes hatchery and hot-desk space for University staff and student enterprise projects, flexible light-industrial, laboratory and office space for businesses seeking to co-locate with the University, a new home for the University’s graduate enterprise development facility, and a choice of 30 Grade A offices plus workshops, conference area and meeting spaces.

A team of advisers, including a dedicated business development support team provide a wrap around service for the Hope Street Xchange community of entrepreneurs, businesses, and fledgling enterprises.

The £270m Local Growth Fund, secured as part of the North East Growth Deal, supports the North East LEP’s delivery of the Strategic Economic Plan, which aims to create 100,000 more and better jobs by 2024.

www.hopestreetxchange.com/