UPDATE: DECEMBER 2014

Hertfordshire: ‘well placed to fulfil its potential’ In the last twelve months Hertfordshire’s economy has continued to expand as private sector businesses are creating more jobs than ever. With an employment rate at just under 79%, levels of unemployment below 5% and more people starting businesses than ever before, Hertfordshire is well placed to kick on and fulfil its potential as one of the few areas making a positive contribution to national wealth. However, we cannot be complacent about the challenges that face our county. Housing supply still fails to keep pace with demand; infrastructure deficits in road, rail and broadband require significant levels of public investment; and companies report increasing skills shortages in key areas such as engineering and IT. We know from previous academic studies that Hertfordshire is a net contributor to the UK economy: we pay more in personal and corporate taxes but receive less public expenditure per head than any other area in the East of England and beyond. The gap is estimated at around 25% per head below the regional average Here at the LEP we are trying to address that. We have enjoyed our most successful year in securing a £200m Growth Deal for Hertfordshire over 2015-2020 – the fifth highest allocation per head of the 39 LEPs – which will be spent on vital infrastructure and facilities to support business growth in 2015/16. For me these are exciting times to be Chair of a LEP. We will continue to press the case with Government for a fairer distribution of public expenditure based on the greater economic opportunity that places such as Hertfordshire offer to UK Plc in order that we remain ‘Perfectly Placed for Business’. John Gourd Chair - Hertfordshire LEP

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IN THIS ISSUE

Autumn Statement:

our response to the

economic forecast

Programme Boards’

Progress Reports

Celebrating Success

A1(M) ‘widening’: an end in sight for commuter woes?

What does the Autumn Statement hold for Hertfordshire and the LEP?

“Hertfordshire LEP continues to build on its excellent track record - having secured £200 million in this year’s Growth Deal, we will continue to make the case to Government for further investment in the county.

“We will prioritise projects that can make the maximum impact on our economic growth through developing thriving sectors and supporting SMEs, as well as creating the infrastructure capacity we need for the future.”

John Gourd

Chair - Hertfordshire LEP

In the biggest indication yet of its support for devolving investment in local econo-mies to Local Enterprise Partnerships, the Chancellor announced in the Autumn Statement that an additional £1 billion is to be allocated to support a second round of local Growth Deals. This will take the total amount committed from £6 billion to £7 billion.

This is not new money but will be funded from within the existing commitment of £12 billion over six years (£2 billion a year to 2021), which was made at the Spending Review in 2013 to the Single Local Growth Fund (SLGF) pot.

The first £6 billion of local projects agreed under the first wave of Growth Deals were announced in July when Hertfordshire successfully secured £200 million. This total allocation for LEPs comprised £2 billion for projects in 2015/16, and a further £4 billion for a mix of 2015/16 projects that carry on into later years, and projects starting from 2016/17. The extra £1 billion will fund projects starting in 2016/17, with the bulk of the spend expected to be for projects in 2019/20.

A1 (M)

One of the biggest investments for Hertfordshire is the long awaited ‘widening’ of the A1(M), ending years of frustration for commuters. The work is funded by the Highways Agency and is part of a package of improve-ments which will help unlock future economic growth along this vital transport corridor.

The Government announced that between £50-£100 million would be spent upgrading the section between Welwyn and Stevenage by turning it into a ‘smart motorway’ and using the hard shoulder at peak periods.

In addition as part of the Autumn Statement on 3 December the Department for Transport (DfT) announced it will carry out an A1 East of England Feasibility Study. This will look into how the safety and performance of the A1 between Peterborough and the M25 can be improved, including the possibility of upgrading the old dual carriageway section to motorway standard.

Andrew Percival, Chair of the LEP’s Strategic Infrastructure Board and representative of the A1(M) Consortium, an alliance of local businesses and political representatives which has lobbied hard for improvements, welcomed the news.

He said: “We are delighted the Government recognises that investing in future improvement to relieve severe and long-standing congestion on the A1(M) is key to the future of Hertfordshire and the region’s economy. Unlocking the bottle-neck will significantly improve life for commuters and encourage future economic growth. The LEP, MPs, businesses and local authorities have pressed hard for increased capacity on this key route and we will continue to monitor progress to improve Hertfordshire’s road network.”

This investment will enable the LEP to deliver on its £16 million Growth Deal commitment to enable flagship housing and employment around Stevenage over the next six years, including £2 million in 2015/16. It will also help to

accelerate the second phase of the Stevenage Bioscience Catalyst (left) (which secured £3m from 2015/16 SLGF; plus £10.5m in

later years) and means we can develop plans for A1(M) junction improvements.

Education and skills

We welcome the Government’s announcement to abolish employer National Insurance contributions for apprentices under 25, making it cheaper to employ young people. This builds on last year’s Autumn Statement announcement that employers will not have to pay National Insurance contributions on under-21s from April 2015. This boost means that we can encourage more employers to take on apprentices, and continue to deliver on our promise to grow the skills base in Hertfordshire.

In addition the Government is to invest £20 million to improve careers advice and support for young people. This will enable us to ensure that the advice given best meets the needs of local employers, delivering another of our Growth Deal commitments.

Businesses

The Autumn Statement delivered good news for local businesses with a commitment to review the current business rates system and an extension of the Small Business Rate Relief to April 2016. These measures will enable SME finances to become more stable and to boost their contribution to Hertfordshire’s overall economic growth.

Science and Innovation: Is there life on Mars?

Britain is to lead Europe's ambitious mission to try to find life on Mars, and a hi-tech rover currently being tested in a sandy 'Mars yard' at Airbus Defence and Space in Stevenage is to play a leading role. The Government is devoting £47.7 million to ExoMars, almost as much as its £49.2 million contribution to the International Space Station. The Bruno Rover will use a two metre-long drill to extract samples from deep below the surface of the Red Planet and analyse for signs of life. Furthermore the Chancel-lor also tasked all LEPs to “bring forward proposals for science projects through the Local Growth Fund”, a commitment we are honouring by prioritising projects that maintain Hertfordshire’s global excellence in science and technology.

What does the Autumn Statement hold for Hertfordshire and the LEP?

Walk-on part: Bruno Mars Rover

Skills and Employment Programme Board

European Structural Investment Funds (ESF)

Hertfordshire LEP organised two very successful ESF information-sharing events at the BioPark, Welwyn Garden City, in November. Hertfordshire has been notionally allocated around £30 million from the European Social Fund (ESF), with 80% to be spent on promoting employment and supporting labour mobility, investing in education, skills and lifelong learning.

The remaining 20 per cent, equivalent to around £5 million, of this sum is to be spent on activity helping those most removed from the labour market into work and combating poverty. This funding will be matched 50/50 by the BIG Lottery Fund, doubling the pot to in excess of £11 million for the county.

The programme is expected to be launched between January and July 2015, with initial bidding opportunities scheduled from August onwards, and the first bids approved later in the year. On Thursday 13 November, Hertfordshire LEP in partnership with the BIG Lottery Fund invited around 90 delegates from the Voluntary, Community and Social Enterprise (VCSE) Sector to find out more about the bidding and partnership-building process. For more information click here. And on Thursday 25 November around 80 training provider delegates attended an event organised by Hertfordshire LEP in partnership with the Department for Work and Pensions (DWP) and the Skills Funding Agency (SFA) . Training providers interested in forming partnerships to bid for ESF funds can click here for more information. The page is hosted by Bedfordshire and Hert-fordshire Provider Network, which is made up of 70 organisations and part-ner agencies. The link is also on our LinkedInGroup Page where you can join discussions on this topic.

Skills Summit: where do we go from here? Working with Hertfordshire County Council (HCC) our highly successful Skills Sum-mit in September was at-tended by over 100 dele-gates, 35% of which were employers. The event at the BioPark focused on four key issues: preparing young people for the world of work; developing skills for a thriving economy; attracting, training and re-taining key workers and helping the vulnerable into employ-ment. For more information click here. We are now working with HCC and the Department for Work and Pensions (DWP) to produce a Skills Strategy and Action Plan for Hertfordshire which are due to be final-ised in February 2015.

Adrian

Hawkins

New Chair announced

We are pleased to announce that Adrian Hawkins is to be the new Chair of the Skills and Employment Programme Board. Main LEP Board Member Adrian is Chairman of welding supplier Weldability SIF, based in Letchworth, and Chairman and Co-Founder of biz4Biz, an organisation established to support business owners and like-minded business people in and around Hertfordshire. Adrian will take over from the current Chair Andy Forbes at the next Board meeting.

Andy is stepping down from the Board as he will be leaving his post as Principal of Hertford Regional College to take up the post as Principal of a college in North East London. We would like to express our thanks to Andy for all his contributions and wish him well in his new role.

Hertfordshire Local Response Fund Working alongside Exemplas who hold this ESF-related fund, we have influenced the decision making with regards to projects and allocation of funds to the value of £350K. Key activity focuses around traineeships by developing an employers’ guide; identifying and supporting business skills-related needs of leaders and managers in innovative companies and enabling owners of small firms to make the transition from owner-managed to team-managed business. In addition, a skills survey of Herts businesses has been undertaken by UH Business School. Apprenticeships As part of the LRF funded activity we are researching the idea of a central apprenticeship hub for Herts, development of materials to support SMEs recruitment of apprentices and a training programme for providers with regards to engaging SMEs regarding apprenticeships. We are also enabling Hertford-shire training providers to be better placed to deliver increasing numbers of higher level apprenticeships. Higher level apprenticeships In addition to the LRF funded activity above, we have been instrumental in helping to secure SFA funding for an additional 65 higher apprenticeship starts in Hertfordshire, with the opportunity to request more depending on performance. The value of these starts will be around £200K. The additional provision is shown in the table.

Provider Name Apprenticeship

Framework

Additional Starts

Oaklands College Civil Engineering

L4

8

Oaklands College Construction &

built Environment

L4

9

Oaklands College Business

Administration L4

4

West Herts

College

Leadership &

Management L5

10

North

Hertfordshire

College

Leadership &

Management L5

10

Hospitality Indus-

try Training

Hospitality

Management L4

5

Hospitality Indus-

try Training

Care Leadership &

Management L5

5

Hertford Regional

College

IT Technician L4 6

Aspire Achieve

Advance

IT Professional L4 7

How we have influenced decision-making? December update

Help shape your future workforce Could you offer a work experience placement, talks, mock interviews, CV work-shops, employer-led assignments, workplace visits or would you attend a career event? If the answer is yes to any of these please click here for information.

Growing Hertfordshire’s skills base: apprenticeships are key

Young female pupils have been inspired to consider a future career in science and technology thanks to a key networking event organised by Hertfordshire Chamber of Commerce. Over 90 people including representatives from leading STEM (Science, Technology, Engineering, Maths) industries from Airbus Defence and Space, SKANSKA, Affinity Water and MBDA attended the Business Breakfast at St Albans Girls’ School (STAGS) on 27 November. The Government Equalities Office (GEO) has asked the British Chamber of Commerce to pilot different ways to create lasting relationships between schools and local businesses, to help broaden aspirations and develop workplace skills.

Hertfordshire Chamber of Commerce is focusing on STEM skills, which is one of the sectors identified by Hertfordshire LEP as key to economic growth in the county.

Kate Bellingham, engineer and TV presenter, below centre, was one of seven panel speakers at the breakfast event.

“I was so inspired by the young female engineers who spoke about STEM alternative roles into employment; this was a unique opportunity for the speakers to give a wonderful insight into employment and highly skilled careers.” Yolanda Rugg (second row centre) CEO— Hertfordshire Chamber of Commerce

Young female engineers

inspire next STEM generation Examining advances in the digital healthcare field The second Hertfordshire LEP conference on Convergent Medical Technologies, Medtech Meets Lifestyle: A New Convergence, pulled in leading figures from the digital healthcare field and attracted up to 90 businesses, ranging from corporates to micro SMEs.

Senior executives from Google, The Technology Partnership, Toumaz Group, as well as academics from UCL all spoke at the event which examined the links between digital health products designed for use by both professional medical providers and consumers.

The University of Hertfordshire sponsored conference heard from experts in the field of sensing technologies, mhealth and the patient experience, ‘Big Data’, product design and funding for digital health businesses. One of the big draws was a fascinating demonstration of Google Glass showcasing changing trends in wearable technology.

Crowd Mission outlined the opportunities of raising capital through crowd funding and Grant Tree highlighted the benefit of R&D tax credits; enterprise investment scheme and grants to support business development.

“The conference provided a great opportunity to consider a world where health care technol-ogy has an impact on professional companies and consumers, and is making an impact on better health and healthier living.” Rowan Gardner from RowAnalytics, who presented on Big Data

Enterprise and Innovation Programme Board December update

Hertfordshire Growth Hub We will be recruiting business advisors in the New Year for the Growth Hub which is due to open fully next Spring. The Growth Hub, with back-ing from the University and operated by Exemplas, provides support to established SMEs looking for help with training, business growth, sustainability, innovation and information about grants and funding.

So far, 23 LEPs have launched Growth Hubs with funding from the Regional Growth Fund and Wave 2 City Deals. For more details visit: www.hertsgrowthhub.com or phone: 0844 725 5575.

Work is expected to start on two exciting projects. Basepoint has been appointed to oversee the development of Broxbourne Enterprise Centre (BEC) which will include the design, build and fitting-out of the new centre. The company will also be managing the centre’s operations when it opens its doors to businesses in 2016. The £3.9m project which has been co-funded by Hertfordshire LEP and Broxbourne Borough Council will provide 25,000sq ft of modern, flexible managed business space, focusing on the needs of small, medium and start-up businesses with easy-in, easy-out terms, from which they can operate and grow. Other benefits include on site management, serviced meeting rooms, high speed internet access, free parking and business support.

And works on the bioincubator at Rothamsted, (right) the world’s longest running agricultural research station is also set to get under way.

Gearing up for 2015

Grants4Growth goes from strength to strength

The programme closes to new applications in the New Year following the formal closure of the 2007 to 2013 EU Structural Funds Operational Programme for the East of England. To date 16 grants, totalling £160,000 have been awarded in Hertfordshire. These grants have supported over £1.4m of SME investment in new technologies and created or saved 93 jobs.

There is now a growing awareness and interest in the local enterprise and efficiency programme highlighted by a strong pipeline of applications. This is expected to cause a doubling in the number of grant cases processed and provide additional grant finance of between £400,000 and £500,000 to SMEs in the programme. Many of the grant cases are small but the larger cases have made a significant impact on the in-troduction of new technologies and energy efficiency into applicant businesses.

Take-up is highest in the A1 (M) corridor but less prevalent in the south west and east of the county. Benefici-aries in receipt of grants in excess of £20,000 include: Premier Hole Drilling – London Colney; LS Fabrications – Welwyn Garden City; Specialist Aviation – Letchworth and Adapt EMS Ltd (formerly Weedon Electronics) – Hitchin and Apex Security Engineering – Letchworth.

Enterprise and Innovation

Baylis Medical, a leading supplier of medical equipment, has chosen Watford as the home of its European expansion programme. Baylis Medical, which supplies interventional cardiology and radiology products officially opened its new office at Croxley Green Business Park earlier this month.

Company President Frank Baylis said the office would bring new opportunities: “The Golden Triangle is a hub of bio-tech activities, and we are looking forward to tapping into the local expertise as we continue to expand our presence. We will be looking to recruit more members to our team in the near future.”

Hertfordshire LEP Deputy Chair Peter O’Gorman said: “Congratulations to Baylis Medical on the opening of its expanded office. We are pleased that the company has chosen Watford as the home for its Euro-pean operations.

“The company’s portfolio of products, ranging from cardiology to radiology, is a great addition to our life sciences community, and we are confident that Watford is the best place for Baylis Medical to continue to grow its business.”

Baylis Medical taps into ‘Golden Triangle expertise’

Leading global research and development-based pharmaceu-tical company Eisai officially opened its new facility at its EMEA Knowledge Centre in Hatfield earlier this month to handle the packaging of its investigational compound lenva-tinib, for the treatment of advanced thyroid cancer. The facility is specifically designed to cope with highly potent, difficult-to-handle compounds. The new two-storey 2,900m2 facility expands the current Hatfield site by nearly 40% and reflects Eisai's commitment to a long-term global business structure in which the UK is a key hub. The Hatfield site hosts the company's EMEA headquarters and serves as a global supply centre for key products. Eisai has invested more than £150 million in the Hatfield site, representing the largest Japanese pharmaceutical investment in the UK to date. It is home to more than 500 employees and the new facility will increase employment at the site by 10%.

Eisai opens £8m packaging facility in Hatfield

"We are extremely proud of this new development at our EMEA Knowledge Centre. The UK is an ideal location for advanced manufacturing. We are committed to the life sciences indus-try in this country and it will continue to play a pivotal role in our commer-cial growth strategy." Haruo Naito — Eisai Chief Executive

The Canadian firm chose Watford as part

of its European expansion programme

Strategic Infrastructure Programme Board December update

Utilities Workshop

Around 40 delegates attended the LEP’s Utilities Workshop in July which explored some of the energy and water supply issues affecting the county. The event gave attendees representing local authorities, utility providers, infrastructure companies and the Environment Agency the opportunity to look for local energy solutions and examine the implications of the new Water Act. Speakers included Robert Kemp, UK Power Networks, Bruce Laidlaw, Chiltern, and Liz Allen from Affinity Water.

We are now working with Hertfordshire County Council on a study to assess future water infrastructure needs in the county. Covering water supply as well as waste water, we will work with the three water companies providing services in Hertford-shire to ensure water infrastructure does not become a barrier to growth.

Airport expansion consultation takes off

Public consultation has started on airport expansion options in the South East. The three proposals shortlisted by the Airport Commission include two for expansion at Heathrow and one proposal for Gatwick Airport. These are an additional runway at Gatwick, an additional runway at Heathrow or an extension to the existing runway at Heathrow.

Gatwick and Heathrow presented their proposals on 8 December to the Strategic Infrastructure Board. The Board supports expansion at both airports, but agreed that whichever option the Government chooses it was key it progresses that decision. The consultation will close on 3 February and the Airport Commission will make its recommendation to Government when it publishes its final report in the summer of 2015.

Regenerating our town centres

Hatfield

In September Gascoyne Holdings presented its plans to transform Salisbury Square in Old Hatfield following on from the redevelopment of Hatfield Station. The project will act as a catalyst for future development and benefit the whole town. We have also been supportive of Welwyn Hatfield Council’s efforts to work with the different land-owning interests and the University to develop a Regeneration Plan for Hatfield and identify priority areas for investment.

Stevenage

Andrew Percival, Chair of the Strategic Infrastructure Board, has been appointed as Chairman of Stevenage First. Involving a partnership between Hertfordshire LEP, Stevenage Borough Council, Hertfordshire County Council and other stakeholders, Stevenage First will commission a new regeneration strategy and develop a blueprint to move the town’s redevelopment forward.

Growth Corridors

We have been working with local authorities in the three Growth Areas to bring forward a range of major pipeline projects. These include Maylands Growth Corridor, involving improvements to the main route into Maylands from the M1. An initial study is planned to identify the infrastructure requirements needed to support proposals for both commercial and residential development.

‘Faster rail services needed to meet passenger growth’ at Stansted

Infrastructure round-up

Growing Places Work has been on-going to put in place the necessary arrangements to deploy Growing Places Funding on recently agreed projects. These include finalising agreements on Watford Business Park, Elstree Studios, the Growth Hub and the East Herts Delivery Plan. We have also been working with the Department for Business, Innovation and Skills and the Cabinet Office to showcase aspects of the LEP’s work we would like to promote. For more information on the Growing Places Fund and how it can unlock future development click here.

Roads: funding approved Improvements to the A602 and the A120 bypass at Little Hadham were approved by Hertfordshire Local Transport Body (LTB). It was LTB’s first major decision since it be-came a formal board in July 2013.

London Infrastructure Plan The LEP responded to the draft plan which sets out London’s expectations on the infrastructure it would need to accommo-date its growth to 2050. The needs for infrastructure outside London are superficially addressed within the draft (see Chapter 21) and more work is required to identify what the infrastructure needs are and how they would be funded. For more information, click here.

Stansted is the fastest growing major airport in the South East and is now handling 2 million more passengers a year since it was acquired by Manchester Airports Group (M.A.G.). But greater investment in the rail link between Stansted and London is needed to accommodate this growth, it warns.

The announcement came as M.A.G. reported an 11.9% growth in Stansted passenger numbers in its financial statement for six months ending 30 September. Neil Thompson, M.A.G. Chief Financial Officer, said: “Stansted is now showing industry leading levels of passenger growth and has added over two million passengers since we acquired the airport in February 2013. Unlike other London airports, Stansted has spare runway capacity today and significant room to grow in the future.”

However, he called for improvements in the rail links: “It is vital that faster rail services are delivered between London and Stansted so as to ensure that this potential is utilised.”

As part of the London Stansted Cambridge Consortium (LSCC) we are working hard to realise this area’s full economic potential.We welcome M.A.G.’s investment in Stansted which has resulted in growing passenger numbers and are supportive of proposals to accommodate this increase in passenger numbers by four-tracking the rail link between Stansted and London Liverpool Street. This option has not yet been recognised as warranted by Network Rail.

Celebrating success

Showcasing Hertfordshire We were delighted to help sponsor both the Men’s and Women’s Hert-fordshire stages of the Friends Life Tour of Britain, the UK’s biggest professional bike race, this summer.

Top male cyclists raced into Gadebridge Park in Hemel Hemp-stead on Friday 12 September for the Stage 6 finish.

And the Stage Four finish in Welwyn Garden City on 10 May was a home-coming for double Olympic cham-pion Laura Trott and her sister Emma, who both began their racing careers with the Welwyn Wheelers.

This was an excellent opportunity to showcase Hertfordshire. Neil Hayes, Executive Director of Hertfordshire LEP said: “We were proud to be associated with this fantastic sporting event.”

Glovista scoops Innovation Award

Business and consultancy company Glovista Ltd has won the coveted Innovation Award at this year’s Herts Business Awards. The award, co-sponsored by Hertfordshire LEP and Stevenage BioScience Catalyst, celebrates businesses willing to conceive, practice and test new ideas.

Glovista CEO John Acton said: “Everybody at Glovista is extremely proud to win the Hertfordshire Business Award for Innovation. It’s a real boost to receive such recognition.”

The St Albans-based company beat off stiff competition from Under-standing Recruitment, Academy 21 Ltd, Townhouse Creative and uComply Ltd at the glittering awards ceremony on 27 November at Knebworth Barns.

From left: BBC Look East presenter Stewart White; Martino Picardo; Glovista CEO John Acton; Hertfordshire LEP Enterprise and Innovation Manager Paul Witcombe

“Glovista truly merits the Innovation award. We believe that its use of 'Peletoning' technology for brain storming and work-shop management means it has the potential to become a high growth business on the back of this innovative approach to development.”

Martino Picardo — CEO Stevenage BioScience Catalyst and LEP Board Member