Agenda item

Councillor Aisma Shaikh, Executive Member for Economic Development was present for discussion of this item and made a presentation to Members. (Copy interleaved).

Councillor Shaikh added that she was also dealing with the witness evidence required from Councillor Hull, who could not be present that evening.

During consideration of the report the following main points were made –

·         The Council approach to Economic Development and Growth built on the Fairness and Employment Commission recommendations. Following the Employment Commission recommendations the Council has now assisted over 2,700 residents into work and a case was being made to JCP to implement a similar approach of support

·         The aim is to tackle inequality and poverty and develop an approach that is driven by inclusion, a model of economic growth that benefits everyone

·         There are 2 Islington’s with affluence in some parts, however Islington has the third highest rate of child poverty in the UK

·         The draft economic development strategy vision is to make Islington a place a place for sustainable, inclusive economic growth, where local people and communities share in this growth

·         In addition there should be a diverse, resilient, local economy for the most densely populated local authority in the country, where economic activity can successfully co-exist with residential and other land uses and displacement of successful established activities in sectors is limited, provided demand exists. Economic growth should be a means of reducing inequality of opportunity within the local community

·         The Council should take a proactive role in shaping the local economy and successfully engaging with and supporting key economic factors

·         The Council’s objectives are to ensure Islington residents share in economic growth, particularly through employment opportunities such as iWork employment support – to improve the learning and skills of Islington residents to enable them to take full advantage of available employment opportunities such as the Employment and Skills strategy, ACL and Skills devolution, challenges of BREXIT – encouraging business uses and other appropriate commercial development in the borough through the local plan and the opportunities of Economic clusters

·         In addition the Council will support resilient Town Centres and encourage diversity as an enabler, through small business support and the night time economy and refreshing the markets strategy. The Council will also seek to maximise opportunities for the growth of SME’s and for local entrepreneurs through planning policy and S106 and affordable workspace, and making a difference through the Council as an economic agent. Councillor Shaikh added that a large amount of workspace has been lost to residential use over a number of years

·         With regard to Business Rates the 2017 revaluations were announced on 28 September and will see increase in Islington by around 45% and will see bills increase by around 30%-45%. This could force businesses to close or leave the borough

·         L.B.Islington does not get increased funding and are calling on the Government to freeze the re-evaluation implementation until after Britain leaves the EU, extend transitional relief to small businesses, and increase the threshold for Small Business Relief for inner London to £20,000

·         Councillor Shaikh outlined the timeframe for consultation but stated that this was flexible if it needed to be and consultation was already taking place with the Chamber of Commerce and Town Centre Managers

·         Discussion took place as to business rate retention and it was stated that this is still unclear, and the Government had not indicated any firm decision in relation to how this is to work. Councillor Shaikh added that her understanding was that 100% business rate retention was unlikely to result in additional income to the Council, however she would report back when further details were known

·         Members expressed concern that the large increase in business rates would force many businesses, especially small businesses, to close and although there may be some flexibility on rate relief this is unlikely to be enough

·         Discussion took place as to providing residents with the appropriate skills to fill jobs and that many residents did not have the social networks to obtain jobs in the City and there needed to be pressure put on businesses to apply corporate responsibility policies

·         A Member expressed the view that there needed to be better broadband speeds to assist businesses and that the lack of affordable and social housing impacted on children’s ability to learn which could affect their future job prospects

·         There also needed to be engagement with employers to encourage them to pay the LLW

·         A Member expressed the view that the Council should encourage pop up shops and cultural events to revitalise Town Centres at night to give new businesses an opportunity and it was stated that consideration could be given to this

·         Reference was also made to the fact that more should be done to assist Islington businesses in the tendering process and procurement and that this should be considered

·         Councillor Shaikh also added that the Council were looking to strengthen the night time economy if it did not affect residents

·         Reference was made to the need to look at barriers to employment and Councillor Shaikh stated that she would provide figures on unemployment and the breakdown in age terms to Members

·         Discussion took place as to the lack of work opportunities for the over 50’s and that this area had seen an increase in unemployment rates. Councillor Shaikh stated that she would look at the employment data in this area and provide support if there is a problem

·         In terms of careers advice, which had been one of the recommendations of the Employment Commission, it was stated that this is being addressed and direct work is taking place with schools to ensure that proper careers advice is being given both at schools with employers and at job fairs, however the challenge is to make this sustainable in the light of reductions in funding for the Council

RESOLVED:

(a)  That Councillor Shaikh be requested to report back to the Committee following the results of consultation and with a breakdown on the unemployment figures and age breakdown

(b)  That further details of the Government’s proposals on business rate retention be reported back to the Committee, once these are available

The Chair thanked Councillor Shaikh for attending