Agenda item

To consider a progress report on the recommendations made in the internal audit report of Business Support issued on 10October 2019.

Mr Peter Legg, Head of Economic and Cultural Services presented a progress report on the recommendations made in the internal audit report of Business Support which had been issued in October 2019. Mr Legg noted that the audit had taken place in late 2019 and as such a number of changes had been implemented within the service since that time, not least as a result of the ongoing pandemic. He provided a summary of the work undertaken by Mr David Slater, Business Growth Manager and his team, particularly in relation to the administration of discretionary COVID business grants over the last year. Mr Legg explained that the Council’s online business communication channels, centred around ‘Blackpool Unlimited.com’, had proven key in promoting government grant availability as well as providing wider support to new and growing businesses. He reported that the website had recently been improved and relaunched. The considerable impact on the level of work undertaken by the Business Support team as a result of the pandemic was highlighted by Mr Legg, as well as digital efficiencies and changes to the way in which the team operated and connected with businesses as a result of the lockdown restrictions.

Mr Legg identified that whilst a number of the recommendations resulting from the audit had been completed, others had been put on hold and would need to be revisited to address the changes in the type of business support being offered to include new methods being used to interact with customers. In relation to recommendation R4 ‘A full business case should be developed for any future investment in additional managed workspace facilities,’ Mr Legg reported that an advanced project proposal for an enterprise facility called ‘The Edge’ was in development, one of seven key projects within Blackpool’s Towns Fund programme.  A pre-condition of approval of the £6.3m project (£4.5m capital grant, and match funding of £1.8m) was a Treasury Green Book Business Case which would be subject to an in-depth appraisal. He advised of an anticipated completion date for the case and submission to government of November 2021.

With regards to recommendation R1 ‘Formal aims and objectives for Business Support should be determined, including identifying any future prioritisation on support to businesses with greater perceived growth potential, any development plans for the service and links to wider strategies and Growth and Prosperity aims and objectives,’ the Committee questioned how those sectors with the most growth potential would be identified. Mr Slater advised that the work recently undertaken as part of the Green Book Business Case for The Edge included an independent assessment of the start-up market in Blackpool and this had identified the sectors which had been growing within the town. Mr Slater noted the importance of striking the correct balance between providing support to those businesses who were striving for growth and creating employment opportunities as well as continuing to provide a service to those wishing to become self-employed and he noted that both these areas needed to be supported.

The Committee sought clarification around how recommendation R2 ‘Research should be undertaken to identify the particular reasons for the comparatively low level of start-ups and self-employment in Blackpool and where and why business advice is sought, in order to inform any future approach by the Council to supporting business start-ups,’ would seek to incorporate the large informal sector existing in Blackpool. Mr Slater reported that the aim would be to include all aspects of business within the support programme and that the informal economy would be contained within a number of external consultations being undertaken on The Edge.

In relation to the recommendations which had been delayed as a result of the pandemic, the Committee asked how and when these would be amended to include lessons learnt whilst still addressing the original recommendations and questioned whether there had been any identified barriers to delivering the service, for example the resilience of staff. Mr Legg reported that a lack of capacity within the team had been felt at times but that staff had worked well with other departments to enable key work areas to be delivered, especially around financial assistance to local businesses. Mr Legg advised that this more integrated approach to service delivery would be beneficial going forward. The Committee sought clarification around how the issue of staffing capacity would be addressed. Mr Legg reported that further development of capacity would be necessary to service The Edge if the business case was approved later in the year, with revenue streams being required to cover needs. He informed the Committee that the staffing structure would be reviewed in the light of some changes in the team, in addition to the pursuit of external funding opportunities such as the UK Shared Prosperity Fund (successor to European Regional Development Funds).

The Committee asked which of the recommendations the service would be taking forward and whether there had been any innovative ways of working implemented in response to the pandemic. Mr Legg advised that a key area of learning had been around the necessity for businesses to have access to advice and support to help them navigate through the process of accessing financial assistance and the associated advice and guidance. The pandemic had reinforced the need to have a centralised team to assist businesses in need. A more unified approach across Council departments had developed as a result, which Mr Legg identified as being a definite positive of the pandemic. He reported that the shift towards a more digital way of working had proved beneficial to the service, although he acknowledged that face to face meetings would still be necessary for certain events and that a combination of both formats would be utilised in the future. Mr Slater noted that a number of the original recommendations were linked and as such several could be responded to simultaneously. In response to a question around what lessons had been learnt, Mr Slater reported that the in-house production of short online videos via the Blackpool Unlimited YouTube channel had been introduced during the pandemic and had proved to be a cost-effective way to present information.

Following discussion of the changed business landscape due to the pandemic since the time of the audit in 2019, Mrs Tracy Greenhalgh, Head of Audit and Risk agreed to meet with Mr Legg in order to revisit the findings and to refocus the recommendations accordingly.

The Committee extended its thanks to the Business Support team for the work undertaken over the past 12 months in supporting local businesses across the town.

[Mr Legg and Mr Slater left the meeting on conclusion of this item.]