Agenda item

To receive an update on the progress made with the delivery of the Council’s Economic Development Strategy.

The Cabinet Member: The Economy & Transport presented the Economic Development Strategy Update which highlighted the activity and progress of inward investment and business support in the delivery of the council’s economic development strategy following its launch in 2024.  Significant progress had been made during the last two years attracting inward investment and promoting the borough as a great place to live, work and study.  Work had continued to support businesses through the delivery of the UK Shared Prosperity Fund (UKSPF) Thrive Telford programme and the launch of the Invest Telford Partnership.  Greater emphasis had been placed on strategic collaboration and deepening activity with local skills providers to increase the talent pipeline and give opportunities for local people to go far but stay near and to support residents into good quality employment as well as investing in our high streets.

The report highlighted the council’s strong track record of investment and it being a regional leader in productivity growth and this had been reflected by the real-life examples of businesses who recognised the value of the Invest Telford teams.  Engagement had taken place with over 300 local businesses during the last year including start-ups, SMEs, scale ups and strategic employers across key sectors such as manufacturing, professional services, digital and low carbon providers.  A further key sector of the council’s economy was defence with its historic specialisms as well as its national priority. The borough had a longstanding defence manufacturing and engineering heritage which was underpinned by major operation and industrial assets such as MOD Donnington.  In May 2025, Rheinmetall had announced that Telford was the new location for its calibre barrel production facility and was a landmark in inward investment for the borough creating more than 400 jobs for local people and injecting £400m into the UK economy over the next decade.

The West Midlands Combined Authority was working to develop a West Midlands Defence and Security Cluster with the Invest Telford team being actively involved.  Through this work almost 2,500 jobs had been created together with within £4.5 million pounds in business rates which had been reinvested into frontline services with a commitment to keep council tax the lowest in the Midlands.

In conclusion, Councillor Vickers expressed that the UKSPF programme had played a big part in driving economic growth across the borough and rather than operating as a standalone funding pot, UKSPF has been fully integrated into the wider economic development approach supporting business growth, innovation, skills development and productivity with 77 projects  having been contracted through the SME grant and innovation programme representing a total value of £575,000.  Of this, £375,000 have been provided through UKSPF grant funding with the remaining £200,000 secured through private sector investment.  This level of match funding demonstrated business confidence together with programs ability to stimulate additional economic activity. He thanked the local business community for their continued innovation, drive and commitment, as well as the officers at the council who were essential to delivering sustainable economic growth across Telford and Wrekin.

Cabinet Members spoke about the work of the Invest Telford Team which stood out not just in attracting new investment but in supporting and retaining existing business, engaging local firms and being a front door for growth which, together with the Land Deal, had been a key delivery tool for  unlocking sites, attracting investment, creating jobs and regenerating brownfield land.  The strategy also supported the growth sectors, skills pipeline and the clean, green approach that strengthened community and the economy together with quality of life, regeneration and innovation, such as Station Quarter.  There were significant challenges affecting business environments following Brexit, emerging technologies, increased usage of AI and climate change.  The borough had the fourth lowest rate of business closures within the UK and a lower unemployment rate than the national average and the key to this was the partnership between the public and private sectors and strengthening the links between schools, college and employees.  The New Town legacy had been continued by having strong policies, a plan-led approach towards development ensuring good neighbourhoods and fantastic green spaces which made locating a business to Telford very attractive.  Financial pressures for businesses were highlighted and the Business Energy Advice Programme and the Telford Sustainability and Energy Cluster were able to help in relation to reliance on fossil fuel and energy consumption.  Some big successes had been Rheinmetall’s decision to expand into Telford showing confidence in the skilled workforce and strong local economy.  Work with schools, colleges and local employers as part of the Go Far, Stay Near project and the Skills Show helped young people learn about career opportunities locally.  The Skills Show had been a huge success and it was amazing to see the opportunities available for the residents.  Alongside this the Job Box were available for residents in Southwater One giving advice and support through Learn Telford.  This alongside programmes such as Together Telford, and the work to promote the Quad at Station Quarter brought schools, higher education and employers into one environment to build exciting opportunities for the future.

The Leader of the Conservative Group commented that the one stop hub and providing 10 homes for veterans was commendable and that he and his Group would be happy to support in any way they could.  In relation to the Economic Development Strategy, he was unsure as to exactly what fair and inclusive growth was.  He considered that businesses were being squeezed with employment taxes, welfare spending, and public pay sector awards, without any productivity deals and the business rates revolution none of which actually helped the local economy.  He raised concerns regarding the growth rates in the borough which were only marginally better than the West Midlands growth rate and felt there was a shortage in growth.  Following the LGA Peer Review, he was of the opinion that the council should undertake a consultant’s review of the economic development within the borough and he considered there was a shortcoming in that area.  He raised concerns regarding NEETs and the 18 or so impoverished neighbourhoods which lay at the bottom 20% nationally.  He was encouraged by what was said in relation to the defence industry and welcomed the work done to attract business, investment, money and jobs and whilst he welcomed the creation of jobs he felt there was a myriad of smaller suppliers and sub-contractors in the supply chain who also needed support.  Concerns were raised regarding the delay in the defence investment plan and he felt it was paralysing the defence industry and investment was needed from the government for jobs and security and he asked what conversations had been undertaken with government ministers and MPs on this issue.

The Leader welcomed the support of Councillor Eade for the 10 Homes for Veterans.  He considered that the comments in relation to the Peer Review and the commission around economic growth were untrue and that economic growth was benefitting everyone in the borough, including those in the most deprived area.  He considered that the council had gone above and beyond to retain the skills of officers, planners, architects, legal officers and the investment team to ensure that there were business opportunities and these did not happen by accident and that the council would continue to deliver what was set out in the strategy.

RESOLVED that:

a)    progress in the delivery of the Councils Economic Development Strategy ‘Our Fair & Inclusive Strategy for Economic Growth 2024-2032’ (the EDS) be noted:

b)   the successes and opportunities in the borough and activity in the supporting skills for business through the Telford Together programme be noted; and

c)    support for the delivery of the EDS and the Councils approach to securing investment and support for existing local business through the activities of Invest Telford be continued.