Agenda item

To receive an update on how COVID-19 has affected the organisation and the region’s economy and what plans are in place to help the region recover.

The Committee considered two reports from the Directors of Corporate Services and Economic Services outlining the impact COVID-19 has had on the Combined Authority as an organisation and the West Yorkshire economy.

In the first part of the discussion on ‘corporate performance and budget monitoring’ the Committee discussed and noted the following:

Finances & programme/service delivery

·       Due to the statutory nature of much of its spending, the Combined Authority has less flexibility in how it manages its finances through the crisis. For instance, the Combined Authority continues to pay bus companies at pre-COVID levels, as required by government.

·       Although the government has promised some financial support for local authorities, it has not yet announced anything for combined authorities – although some funding support is expected in particular service areas, e.g. business support. Discussions with government are ongoing.

·       The risk figure is a potential £12m gap in the budget – the combination of loss of income and increased costs.

·       Current total reserves are around £7m and a review of other earmarked reserves is ongoing to see if funds can be redeployed.

·       Revenue from the usual sources such as bus stations, rents, and mcard sales have also been affected and reduced during the crisis.

·       Business rates income is not collected or retained by the Combined Authority, but by the local authorities directly other than for the Enterprise Zones.

·       The Combined Authority has not yet engaged in any active debt collection but has sought individual solutions with renters and customers in the interim.

·       There has also been an impact on delivery of capital programmes and infrastructure projects due to the increased difficulty of conducting consultations during lockdown, cashflow problems in all sectors and difficulties around securing necessary supplies and workers to advance projects.

Workforce issues

·       Local authorities were not able to furlough staff in the same way as the private sector and there are no Combined Authority staff currently furloughed. Affected staff were redeployed to other areas.

·       Bus station and AccessBus staff have been working throughout the lockdown while travel centres were closed – but due to reopen soon.

·       All office based staff have been working from home since the beginning of the lockdown. Thanks to the completion of much of the ‘Corporate Technology Programme’ prior to the COVID-19 outbreak, staff have the equipment needed to work from home long term if necessary.

·       Working from home arrangements are expected to continue into Winter, but based on government advice there might be a partial return in Autumn, after measures to ensure that infection risk is mitigated are in place

·       The organisation also anticipates an uptake for staff opting to work from home more regularly in the long term – which the organisation encourages and supports in the long term as it seeks to move all staff into the single location of the Wellington House head office. The accommodation refurbishment project of Wellington House is currently ongoing while staff are not in the building.

·       Staff have been kept busy due to the Combined Authority’s role in COVID-19 economic support and recovery efforts and the ‘key worker’ status of transport workers. Some staff were redeployed to areas with increased workflow, such as business support units.

·       Working hours, flexi time and leave policies have been relaxed throughout the lockdown so staff have maximum flexibility in work-life balance and address any personal or care duties.

·       Managers were asked to complete DSE assessments of their staff and practical help has been provided to those who need it.

·       Managers and HR have also monitored mental health concerns as some staff have felt isolated and provided support as needed. –.

·       There are currently no plans to reimburse staff for any costs associated with increased bills due to home working, which is in line with other local authorities nationally who are also not doing so.

·       Quarterly absence data is due soon and is expected to be lower due to the homeworking element allowing staff who might not have felt well enough to commute to work and back, do work at their home desk.

·       The annual staff survey has recently closed and is currently being analysed by an internal staff working group. Preliminary results are positive – in particular, contentment with technology equipment which has made home working smooth. There are still areas of concern and improvement and the results can be shared with members when ready.

In the second part of the discussion on ‘COVID-19 economic response and recovery’ the Committee discussed and noted the following:

·       Access to finance: In the beginning access to finance for businesses was a major issue. The LEP Chair held discussions with local banks and the LEP itself helped coordinate schemes and action that saw an estimated £450m reach 34,000 businesses. More directly, the LEP business support unit supported over 3,000 businesses through its helplines.

·       PPE: Another immediate concern at the beginning of the lockdown period was the lack of available PPE for NHS staff due to international shortage and supply line disruption. The LEP took part in regional efforts to help coordinate local businesses in producing reusable PPE with locally sourced materials.

·       Data and future planning: The availability of economic data is a challenge. The impact of COVID will be carefully assessed as more information materialises – in particular localised data that provides a picture of the impact across West Yorkshire to ensure that those communities and groups that do not usually engage with local government are not overlooked. The LEP has also begun reaching out to BAME business communities.

·       Economic recovery boards: Coordination between the newly formed West Yorkshire Economic Recovery Board and each local authority area’s own economic recovery task forces must be carefully managed to ensure that resources are diverted to the right places based on need.

·       Unemployment: Looking forward, the LEP is preparing for the anticipated 60-70,000 people entering the labour market looking for work in this region by scaling up the LEP’s Employment Hub and existing programmes such as the ‘#futuregoals’ programme which provides support to people seeking to change careers.

·       Further Education spending: The Adult Education Budget which is due to be devolved in 2021 is currently £63m. The Combined Authority is putting together a case to government suggesting an increase in funding considering the economic conditions

·       Support for FE sector: Training and further education sectors have been affected, particularly apprenticeships. The government announced £2,000 grants to encourage apprenticeships and a ‘traineeship’ scheme which aims to provide 6 weeks-6 months work experience opportunities.

·       Youth unemployment: It is feared that young people – school leavers, apprentices and university graduates in particular – will be disproportionately affected by the pandemic. Scrutiny has expressed concerns in the past about young people and apprentices being ‘left behind’ and it was suggested that the Committee consider how it can best help monitor a quickly changing skills landscape.

·       Government support: The government has sought to provide financial support for certain hard-hit sectors. Financial support for construction and cultural sectors was announced, with details to follow on how this funding would be distributed to the regions.

·       Consumer spending: Apart from ongoing projects which aim to revitalise town centres and local economies, local authorities are limited in how much they can encourage people to ‘go out and spend money’ – a necessity for any long term economic recovery particularly in the retail and service sectors. Even prior to COVID, high streets and town centres were struggling – particularly any retail shops that did not have an online presence.

·       Local economy: Some positives did emerge from the COVID-19 crisis in there is now a greater awareness and change in thinking amongst consumers towards the value of locally sourced materials and businesses as international and national supply lines were interrupted during lockdown. It is hoped that this trend will help lead to a strengthening of spending and retention of the ‘local pound’ in the local community and economy.

·       Innovation: Past economic downturns have seen an increase in self-employed people, new businesses and existing businesses innovating to supply a new demand. One example of this was a local mattress manufacturer in Morley which managed to use its resources to make reusable, medically reliable gowns for the local NHS trust. They are now selling these to other NHS trusts nationally and have had queries from health providers in the United States.

Resolved:  That the report be noted and the topic be revisited at the next committee meeting.