Executive Director's Report

                                    July 2007

Floods appeal line has been launched to help flood hit firms recover as quickly as possible. The business community's response to the final stages of a review for an economic strategy for the West Midlands has been presented. Plans for road charging were put on hold while business pushed for quick wins action on transport. Ministers were challenged to ensure business does not lose its roles after a shake-up of regional quangos was announced.

Floods

The business community rallied round to launch an appeal for funds to help flood hit local businesses – and save jobs.

The appeal line – 024 7669 0587 – run by the respected ARC Addington Fund is open to receive donations and to respond to requests for help from flood hit businesses.

West Midlands Business Council Chairman, Barrie Williams, said:

"We are teaming up with the ARC-Addington Fund and the Royal Agricultural Benevolent Institution to appeal for funds so that flood hit firms can get the short term help they need to get over this crisis".

"With floods affecting areas in Herefordshire, Shropshire, Staffordshire, Warwickshire and Worcestershire the scale of the crisis has hit small firms – who are the lifelines for local communities".

"If these businesses go it is jobs and local communities that will suffer".

"We are getting reports of small businesses struggling because the floods have hit their supply chains – while for others they are facing severe cashflow problems after their premises were flooded".

"In some cases the completion of orders is being badly disrupted and the floods have caused a crisis with the livelihoods of too many people".

"The ARC Addington Fund – based at Stoneleigh Park in Warwickshire - has a great reputation – alongside the Royal Agricultural Benevolent Institution - of getting help to the rural firms that need it".

"We hope that this appeal can go some way to help small businesses at this difficult time".

In addition, the West Midlands Business Council – with its member organisations – presented a report, at the Regional Development Agency's request, to the Agency and the Government Office for the West Midlands on how the floods have impacted on businesses and what solutions could be addressed to help flood hit firms.

To seek help – or to donate to the floods crisis appeal – please call

024 7669 0587

Economy

The West Midlands Business Council responded to the final stage of the review of the Regional Economic Strategy (RES) which is undertaken by the Regional Development Agency, Advantage West Midlands.

The RES is developed at the behest of the Government to ensure there are clear economic development policies for across the whole of the West Midlands region.

In February, the West Midlands Business Council published its roadmap for economic success in its report Making It in the Midlands.

The Regional Development Agency later published its draft RES for consultation and in response the West Midlands Business Council made the following key points:

• R&D – The needs of SMEs in trying to engage with R&D issues need to be tackled as much as encouraging further business interest in R&D

• Skills – The emphasis must be on a demand led approach to skills provision – as well as encouraging employers to take on board their role in tackling the skills crisis

• Transport – Full support for the key role of transport in the draft revised RES as a critical step forward in tackling the transport logjams that bedevil our region

• Joint Ventures, Partnering and Exports – Opportunities for SMEs to develop their competitiveness for the regional economy must be part of the objectives in developing a Powerful Voice for the region

• Crime – Crime is holding up the regional economy. It is a major omission that such a critical issue that is holding back the creation of jobs and the development of SMEs are not included in the Consultation Draft. The objective to reduce business crime must, therefore, be in the revised RES.

• Clarification of how funds will be allocated – It seems from the Draft RES document that the majority of funds will be allocated to the People section of the Strategy rather than the Place, Powerful Voice and Business sections. It is requested that it is clarified whether this is a correct reading of the document and, if it is, how this will meet the holistic approach to the economy as outlined in the document.

The Regional Development Agency will publish the revised RES and an accompanying action plan in November.

Transport

The local authorities of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton have put on hold plans to introduce road charging.

The councils had responded to a Government initiative to test road charging in the West Midlands conurbation which could lead to additional Government investment in the transport network.

At the end of July, the councils told the Government it needed to undertake further work to ascertain whether road charging would be good for the economy. This was – in part – in response to the stance of the West Midlands Business Council – with the leadership of the Birmingham Chamber of Commerce and Industry – which laid down six tests before road charging should be introduced.

These tests are:

·        Significant investment must be made in local transport infrastructure before and after any scheme is introduced;

·        The costs do not outweigh the benefits – the overall impact on the competitiveness of the region must be positive;

·        The charges should be variable depending on the location, time and distance of travel, in addition to the level of congestion on the roads travelled;

·        Discounts/exemptions must be available to certain businesses that have no alternative but to use the road network (e.g., haulage firms and certain service businesses, such as electricians, plumbers and gas fitters)

·        Revenues from any road user charging schemes must be hypothecated back into the West Midlands transport system;

·        Any charge in the region must be accompanied by a similar charge in at least one major UK conurbation or city and must become part of a national scheme within five years.

In the meantime, the business sector representative on the Birmingham, Coventry and Black Country City Region Board – which also covers Solihull and Telford – the Royal Institution of Chartered Surveyors' Glyn Pitchford – was successful in ensuring the City Region Board will ensure that "quick wins" transport solutions – such as the phasing of traffic lights and road signage are tackled to improve traffic flow.

The City Region Board brings together the local authorities of Birmingham, Coventry, Dudley, Sandwell, Solihull, Telford, Walsall, Wolverhampton with the Learning and Skills Councils, the Regional Development Agency, the West Midlands Regional Assembly and the business community to ensure there are joint investment plans to help our echonomy – such as with transport.

Quangos Shake-Out

The Government announced a shake-out in regional quangos that will lead to the abolition of the West Midlands Regional Assembly in 2010 and new powers for the Regional Development Agency.

West Midlands Business Council Chairman, Barrie Williams, said:

"The decision by the Government to phase out the West Midlands Regional Assembly must not mean a return to the past when the business community was sidelined".

"Since the Assembly was set up, business has been consulted in advance of key decisions being made and made a valuable contribution to the scrutiny process".

"Our concern is that once the West Midlands Regional Assembly is finally gone there will not be mechanisms to ensure the West Midlands regional business community still has a place at the top table".

"That is why we have written to the Communities and Local Government Secretary, Hazel Blears MP and Minister for the West Midlands, Liam Byrne MP, asking for reassurances that the regional business community will not be sidelined when regional decisions are being made".

Planning

The business community has pushed for action to ensure that plans for nearly 600,000 extra homes to be built across the West Midlands region does not harm the economy.

The plans are being considered as part of the review of the Regional Spatial Strategy – the legal document which all planning decisions across the West Midlands region has to conform to. The review is being undertaken by the West Midlands Regional Assembly.

The West Midlands Business Council has stated repeatedly that the following tests must be tackled before new house building takes place:

a)                 To decide with the construction industry if it can accommodate this level of growth;

b)                 It must be categorically clear that infrastructure – from transport to the water table – could cope with this growth;

c)                  This growth must factor in business developments – otherwise these housing developments will be unsustainable with the prospect of creating a legacy of sink estates.

In addition, the West Midlands Business Council held a consultation event in Ludlow on how the review of the spatial strategy could also address the need for better access to rural public services.

We are grateful to the Herefordshire and Worcestershire Chamber of Commerce, the West Midlands Regional Assembly and – in particular – the surveyors, Brightwells, for sponsoring this event.

Olympics and Paralympics

Further to the work of the West Midlands Business Council, three Midlands companies are now in the running for a pile testing contract for the east London site for the 2012 Olympic and Paralympic Games.

To know more about business opportunities from the Olympic and Paralympic Games please go to www.ready-for-business.co.uk