Agenda item

This report provides an update on the Council’s progress on economic development since the last update in 2015, as well as the Cabinet Member’s priorities moving forward.

The Cabinet Member for Economic Development attended the meeting and presented a written report.

Questions from Members to the Cabinet Member related to;

·        The reasons for the drop in wages amongst various groups of employees.

·        Which of his priorities had been tackled and which needed to continue.

·        The lack of a strategic and practical ‘front door’ service offered by the Council for business start ups in York.

·        The Service Level Agreement for Make It York.

The Cabinet Member responded that the drop in wages varied between different groups. As to the reasons why he felt that this was he pointed to a national trend of two thirds of newly created jobs being paid below the living wage. He reported that unemployment levels had dropped over the past year and that a recent report had showed an increase in private sector jobs in the city.

Some Members questioned if this was because lower paid jobs had been added to the figures and stated that there was a need to look at the difference between the median and average wage. Officers stated that they would provide a sectoral breakdown of information on wages for Members.

In regards to his priorities, the Cabinet Member felt the most proud of York being the first city in Yorkshire to adopt the living wage. However, he felt that issues over flexible low grade office space, congestion problems and a strategic front door for business start ups would be issues that a new administration would have to deal with in the new municipal year.

On the ‘front door’ service offered by the Council for business start ups, some Members expressed concerns that businesses had previously said that the Council had been too large to navigate. Members felt unsure that Make It York would immediately pick this up and felt the practical issues related to taking on additional staff and extra space, were sometimes better done in house and it was unclear as to who Make It York would contact within the Council if they were unsure which department they needed to contact.

Members asked if there would be any clearly accessible measurable outcomes for the Service Level Agreement (SLA) with Make It York. It was reported that the SLA was still in development and it was suggested that if Members wished to view the SLA and comment on it before the company came into existence on 1 April, then an additional meeting could be arranged. Officers confirmed that from 1 April, transferred staff would be funded to work at Make It York.

In regards to points raised under Public Participation, performance reports received by the Committee would include those from Make It York and Members would be able to scrutinise specific items. Members could also choose to invite certain individuals from Make It York to attend ECDOSC to answer questions.

The Chair thanked the Cabinet Member for his report and attendance at the meeting.

Resolved: That the Cabinet Member be thanked for his report and that it be noted.

Reason:   In order to keep the Committee informed of the Cabinet Member’s priorities.