Aster’s Local Economic Impact

Economic Impact

• Employer

• Landlord

• Developer

• Provider of services

• A business

Employer

• 1200 employees

• Over 20 trainees and apprentices

• Payroll of £32.5m

• Take home pay £20m

Landlord

• Aster rents c15,000 properties on social rents

• 50% on Housing Benefit average rent £40 below market level (30% full, 20% part)

• If housing provided in private rented sector housing benefit bill at least £12m pa higher

Developer

• Development Programme• 500 homes per annum

– Each home creates 1.5 jobs (HBF)

• Aster Programme supports 750 jobs• Each home increases council tax and new

homes bonus income for local authorities

Services (1)

• Benefit advice increased resident income by over £800k

• £130k voluntary sector grants • Actively promote credit unions & re-use

projects• Run one re-use project, opening second• Housemark social impact tool, currently

only on ‘social’ activities

Services (2)

• Home care & extra care both been demonstrated to reduce hospital bed use’ reducing cost pressures on local NHS Trusts

• Social Enterprise Development service to– develop new services, – assist existing– support customers set up local businesses

Business

• Tax contribution– Employers NI - £2.5m– Employees NI & PAYE - £5m– VAT and other £1m

Procurement

• Total annual value - £60m• No impact yet of 2012 Social Value Act (will be enacted

in 2013)• Operate within 2006 regulations - consolidated and

offered through EU procedure, Understanding that HCA meaning of VFM is low cost

• Seek to support local SMEs in bidding skills, provision of policies etc

• Over 200 local suppliers on approved lists

Conclusions

• We pay more tax to Government than they pay to us in subsidy

• Provide and support significant number of jobs

• Nervousness around procurement/VFM• Limited data to drive local economic

performance• Desire to do more