Agenda item

To consider a progress report on individual risks identified in the Council’s Strategic Risk Register and to consider the controls being implemented to manage the strategic risk relating to commercial.

The Committee considered a deep dive into the Strategic Risk ‘Commercial’ which included the sub-risks (a) ‘Local Economy fails to recover’, (b) ‘Tourism economy fails to recover’ and (c) ‘Supply chain failure (goods and services)’.

a)         Local Economy Fails to Recover

Mr Neil Jack, Chief Executive, provided an update in respect of sub-risk (a). He reported that the local economy had recovered well since the Covid-19 pandemic and the Council worked to ensure that it was supported. This work included using local suppliers whenever possible, the adoption of the Joseph Rowntree Foundation Living Wage for all Council and Wholly Owned Company staff, promotion of the Blackpool Airport Enterprise Zone and development of infrastructure to support businesses.

Further support for businesses was also provided through business hubs, such as The Edge, which sought to help businesses establish themselves and provide space for them to operate. This work had been secured as part of the Town Fund.

The Council had also established The Platform youth employment and training hub with the Job Centre at Bickerstaffe House. This sought to link young people with employment and training opportunities and had been very successful, with the Council seeking to expand its offer and reach.

Work with the Blackpool and Fylde Coast College (BFCC) was raised by the Committee. It was explained that the Council had a close working relationship with BFCC and that the Council’s Assistant Chief Executive, Mr Antony Lockley, was a Board Member at the college. This allowed the Council to influence BFCC’s offer and ensure it linked with Council plans. A training centre had also been established with support from BFCC at Bickerstaffe House to deliver health and social care courses in Blackpool.

The Council’s relationship with the local Integrated Care Board (ICB) was discussed with Mr Jack informing members that the Council’s Director of Adult Services had been appointed to a role with the ICB facilitating a close working relationship based on the locality first model.

Development of the enterprise zone was considered, with the Committee asking if new ideas were being considered in addition to the work outlined in the report. Mr Jack responded that significant green economy projects were planned and underway. Substantial investment in the central leisure quarter project and the development of the Multiversity was planned. He noted that these had not been included in the report as its focus had been on work that had taken place.

The need to address the skills gap in the local economy as part of the mitigation for this sub-risk was discussed. Mr Jack reported that the development of the Multiversity project in the town centre would be important in building skills in Blackpool and retaining them. The Council was also working with BFCC to deliver training with employers and determine what skills were needed in the Blackpool economy so that the educational offer matched it. He acknowledged that failure to address the skills gap was a significant long-term risk and the Committee agreed that a referral should be made to the Council’s scrutiny committees to consider if the work planned and taking place was sufficient to meet the challenge posed.

In addition Mr Jack noted that there were also other non-Council partnerships operating in Blackpool to improve business support and employment opportunities.

Measuring productivity in Blackpool was considered, with it being noted that the town was behind the national average. Mr Jack stated that this was in part due to the seasonal economy, low paying jobs and youth unemployment. The key to addressing productivity issues was the improvement of health outcomes for Blackpool residents and national data had shown that better health outcomes had a positive impact on productivity.

It was noted that health had not been included in the details of the sub-risk in the report, with Ms Greenhalgh, Head of Audit and Risk explaining that health was included in the strategy category of the Strategic Risk Register but would be a key factor in most risks considered by the Committee. The Committee noted this but asked that information on the impact of health factors on risk in future deep dives be highlighted. Ms Greenhalgh responded that the reporting template could be amended to ensure this.

b)         Tourism Economy Fails to Recover

Mr Neil Jack, Chief Executive, provided an update in respect of sub-risk (b). He reported that the tourist economy had been severely impacted by the Covid-19 lockdowns with a significant loss of cash by businesses, despite government intervention. Despite this the sector had recovered well, with an extended tourist season and a quick return of popular events. Although some of the recovery was related to the lack of international travel due to Covid restrictions, the Council and partners had invested in future proofing the resort through the new Conference Centre, new hotels and attractions. The importance of moving away from a seasonally dependent economy had also been recognised.

Employment opportunities for young people in the tourist economy was discussed. Mr Jack reported that it had been recognised that such opportunities needed to be made available and that work with partners to highlight what was available was taking place. The example of Merlin Entertainments was raised, with Mr Jack explaining that employing an individual in Blackpool could lead to them having the opportunity across the world as part of their leisure portfolio.

c)         Supply Chain Failure (Goods and Services)

Mr John Blackledge, Director of Community and Environmental Services, provided an update in respect of sub-risk (c). He highlighted Waste Services as a significant part of the sub-risk, explaining that as a collection and disposal authority the Council experienced constant demand to manage waste in Blackpool.

In order to address these risks therefore the Council had sought to undertake more waste work internally. Part-ownership of two processing plants meant that the Council could plan more easily to increase sustainability by controlling how operations took place. Plans to convert some waste into fuel and use food waste in energy generation were also outlined. In addition to this Mr Blackledge informed members that the ending of the landfill contract in 2025 presented a significant challenge to what Blackpool did with its waste.

Training to encourage waste prevention and reduction was discussed, with Mr Blackledge reporting that Blackpool Waste Services Ltd had employed staff to engage with communities on waste creation. This also included highlighting what could be recycled and how residents could contribute.

Mr Blackledge added that it was expected that this work would have a positive impact of the sub-risks net score going forward.

Mr Steve Thompson, Director of Resources provided an update in respect of risks to the supply chain. It was reported that procurement cost the Council £200m annually, representing a significant portion of its expenditure. He informed the Committee that a number of global circumstances meant however that some risks were beyond the Council’s control. For example, the British departure from the European Union and Covid had increase the costs of imports, while the war in the Ukraine had caused fuel costs to rise and Avian Flu had resulted in food prices increasing.

Although the Council had a Procurement team Mr Thompson informed members that its role was not to managing every procurement contract. Instead its role was to support the specialist services which operated the contracts and ensure consistency across departments and contractors complied with the Council’s values. He also reported that as part of this role the Procurement team would be delivering training to other departments. The Council would also be developing a Contracts Register that would allow the Procurement team oversight of all Council contracts and their management.

The risk to the Council of suppliers leaving the market was raised, with Mr Thompson advising that a business could sometimes go out of business without warning. This was mitigated by ensuring that before agreements were signed with suppliers robust due-diligence had taken place.

In respect of training on contract management the Committee queried if some departments had under performed. Mr Thompson explained that the training would initially target areas where it was needed the most. It was added that Adult Services had been an area where this had been the case, however work by the Quality Assurance Team to address issues had taken place to ensure services provided quality.

Resolved:

1.         That the update be noted;

2.         That the issue of work to address the employment and skills gap within Blackpool’s local economy be referred to scrutiny; and

3.         That an additional box be added to the Strategic Risk Register – Deep Dive template to allow health risk to be highlighted in future reports.