Agenda item

            The Committee considered the undernoted report:

 

“1.0      Purpose of Report or Summary of main Issues

 

1.1       The purpose of this report is to advise members of planned work on an economic vision and strategy for Belfast for the period to 2030, in line with emerging government policy, ensuring a focus on inclusion and levelling up and maximising the contribution of Belfast to the regional economy.

 

2.0       Recommendations

 

2.1       The members of the Committee are asked to recommend that, in accordance with the Council decision of 4th May, the Chief Executive exercises her delegated authority to:

 

·        Note the proposed approach to the economic strategy for Belfast

·        Agree for members to engage in the strategy development work in order to ensure alignment with emerging council priorities.

 

3.0       Main report

 

3.1       Members will be aware that the pandemic has had a significant impact on the global economy.  As places begin to emerge from operational restrictions, town and cities are considering how they can work most effectively to support businesses and individuals in the short-term while considering the longer-term implications of changes to working practices and consumer behaviour on their infrastructure and environment.

 

3.2       The changes have been well documented:

 

·        Increased focus on the use of technology across all sectors (and across wider consumer groups)

·        Reduction in traditional High Street retail with a resultant growth in online business

·        Growth in vacancies as a result of retail closures – with city centres most significantly impacted

·        Unprecedented levels of redundancies, with more than 100,000 people across NI on furlough at its peak (20,000 of whom were Belfast residents)

·        Doubling of unemployment – with more significant increases for young people

·        Consumer-focused businesses most significant impacted – particularly hospitality and retail – with job numbers unlikely to return to pre-Covid figures

·        Resilience of some sectors – including tech and digital, health and social care – and increased demand in new sectors – particularly transport and logistics and green tech/renewables.

 

3.3       In response to these changes, the Northern Ireland Executive and the government departments have been working on a series of new policy approaches, in parallel with the Pathway to Recovery work that has driven the short-term recovery and rebuilding work.  These include:

 

·        10 X Economic Vision for a decade of innovation: this aspires to positioning Northern Ireland amongst the small advanced economies in the world, ensuring that the benefits of this change felt by everyone.  It aligns closely with commitments set out in the City Deal programme

·        Programme for Government: the NI Executive has recently consulted on the draft outcomes framework for the next Programme for Government.  Indicative outcomes include:

·         

o   Everyone can reach their potential

o   Our economy is globally competitive, regionally balanced and carbon neutral

o   People want to live, work and visit here

o   We live and work sustainably, protecting the environment

 

·        Development of a new skills strategy: this new approach is grounded in work undertaken by the OECD over the last 2 years.  The consultation on the Strategy is to be released at the end of May 2021. It focuses on three priority approaches, namely:

 

o   Reducing skill imbalances and driving economic growth

o   Creating a culture of lifelong learning

o   Enhancing digital skills. 

 

·        Employability NI: members have received a number of recent update reports on the establishment of Labour Market Partnerships (LMPs) in each council area, as a means of enhancing coordination on employability and skills interventions at a local level.  The LMPs are part of a wider approach to revamping provision – under the banner of Employability NI.  This is a cross-government approach involving, in particular, the Department for Communities (DfC) and the Department for the Economy (DfE).

 

3.4       Meanwhile the UK government is pursuing a strong ‘levelling up’ agenda, through which it is making significant investments in initiatives that will address the current economic imbalances across the UK, particularly in terms of employment/unemployment, economic inactivity, disadvantage and deprivation and infrastructure investment.  The emerging innovation strategy also presents opportunities to address long-running under-investment in R&D.  There are a number of live and imminent funding opportunities aimed addressing these issues.  There is a strong focus on place-based interventions and this is likely to become an increasing feature of policy development as we move beyond the economic recovery approach. 

 

 

 

3.5       There are some common themes emerging from these pieces of work:

 

·        Commitment to inclusive economic growth (albeit that this is articulated in different ways in each of the documents)

·        Focus on those sectors in which the city/region has competitive advantage

·        Recognition of need for greater collaboration across government – as well as with private sector and those from the voluntary and community sector

·        Increasing focus on place-based interventions and solutions

·        Need to re-shape and sharpen the unique selling points of city and regional economies – and develop new go to market strategies in a post-Covid, post-Brexit operating environment. 

 

3.6       Members will also be aware of the work of the Innovation and Inclusive Growth Commission – the grouping of local and international experts that has been offering expertise and insights on how to generate inclusive economic growth in Belfast.  The Commission’s work picks up on many of these themes and, given its independence and the individual and collective intellect of the group, its draft final report directly calls out the need for timely and targeted government investment if Belfast is to achieve its potential.

 

3.7       Like many cities, Belfast is now at a crossroads – not only in terms of how it rebuilds its physical fabric but also in terms of its business base, its economic ambition in this new environment, its cultural vibrancy and how attractive it is as a place to live and work and deliver on its aspiration to ‘build back better’.  

 

3.8       While the council has been working closely with government departments in the development of the new strategic approaches,  it is clear that there is a need to articulate the city’s strategy for inclusive economic growth over the next decade, focusing on how it can contribute to the delivery of regional ambitions and articulating its investment needs in its role as the regional economic driver.  This is important as we move into a new ‘phase’ of the Belfast Agenda, developing new stretch targets for the coming five year period in order to refocus efforts on achieving those long-term, partnership-driven ambitions that continue to focus our collaborative working. 

 

3.9       The purpose of the strategy will be to set out the economic vision for the city up to the period 2030 and outline clear actions over the short, medium and long term in order to deliver on the vision.  The strategy will also take account of the role of the council and articulate actions or asks to be delivered by the council and its strategic partners in order to deliver sustainable and inclusive economic growth.  It will consider indicative investment levels required to bring forward headline objectives, strategic priorities and key actions so that these can inform our lobbying position with the various levels of government and help us to articulate the city position on and maximise access to resources from emerging funding opportunities such as Levelling Up, Shared Prosperity Fund and Peace Plus. 

 

3.10      One of the key elements of work that will need to be considered is how the city positions itself internationally.  Our International Relations Framework (which has now expired) focused activity on Belfast’s partner cities, making the case for a smaller number of relationships that run deep, rather than a multitude of superficial engagements.  A recent thinkpiece on this area that was used to contribute to the Innovation and Inclusive Growth Commission’s work drew on a series of interviews with senior government officials to present a number of recommendations that included:

 

·        Be strategic: there was a clear view of strategic growth sectors for the city (and wider city region) including cyber security, fin-tech, artificial intelligence, life sciences, health tech, advanced manufacturing and the creative arts. There was a desire for the city to resist spreading itself too thinly and to instead focus ruthlessly on those things which will make the most difference to Belfast’s economic future

·        Boost trade and investment: Targeted outreach to sectoral centres of excellence around the world can foster collaboration and bring economic dividends. The research proposed that the council should work with universities, industry leaders and Invest Northern Ireland to further build relationships with high growth sectors and their investors. It also noted the important of a sustained and coordinated programme of work to help change the perception of Belfast in key markets across the world 

·        Be clear about the purpose: Belfast’s desire to build stronger outward-looking relationships was recognised in the research.  However, those interviewed noted that there was limited appetite for relationships for relationships’ sake. Rather, there was a desire to work on shared agendas or projects of mutual benefit

·        Value of approaching this as more than a council: there was widespread support for Belfast to take a stronger lead in relationship building across Ireland and the UK to further economic growth and prosperity, and those interviewed stressed the need for city actors to work collectively, rather than the council seeking to do this on its own. Stakeholders were also clear about the need for role clarity among partners – letting those best placed take the lead as appropriate

·        Time is of the essence: the research identified the need for Belfast to reposition itself in a post-Brexit world.  There was praise for Invest Northern Ireland and others but a recognition that there was still some distance to go before Belfast/NI has the (domestic and international) profile and influence it needs to succeed.

 

3.11      While Belfast City Council has a role to play – particularly in maximising existing city to city relationships – the research points towards the value of setting international engagement in the context of a wider economic strategy.  This means focusing on key sectors and markets aligned to Belfast’s unique selling points and assets and taking a partnership approach to promoting the city’s offer, with an understanding of the potential for return and the ability to follow through to deliver results.   There are a number of examples of how this currently happens: through sister city relationships, through our ‘Renewed Ambition’ partnership with public and private bodies across the city region and through emerging structures including the work of the Dublin-Belfast economic corridor.  It is proposed that the economic strategy considers how Belfast can take a place-based approach to trade and investment opportunities, in keeping with the emerging priorities set out in the 10X Economic Vision document. 

 

3.12      Although there is already a significant volume of research and data in place, it is proposed that the development approach for this strategy will involve a significant level of engagement with partners to ensure alignment with their agendas, maximise leverage and ensure buy-in for future collaborations. This will include engagement with elected members.

 

3.13      Financial & Resource Implications

 

            No specific financial or resource implications at this point.  The work will be carried out within existing resources.

 

3.14      Equality or Good Relations Implications/Rural Needs Assessment

 

            Equality/good relations implications to be consider as part of the brief.”

 

            The Members of the Committee recommended that, in accordance with the Council decision of 4th May, the Chief Executive exercise her delegated authority to:

 

·        Note the proposed approach to the economic strategy for Belfast; and

·        Agree for members to engage in the strategy development work in order to ensure alignment with emerging council priorities.