West London Whole Place Community Budgets Work Stream Business Case Summary Report as at April 2014 Work Stream Business Case/Report Summary – Interface West London Name of Work Stream Interface West London Lead Borough Borough Work Stream Lead Borough Sponsor (Director) Objectives (s) Barnet Cath Shaw Pam Wharfe To increase the rate of business growth across West London to achieve higher gross value added (GVA) and an increase in the number of jobs. There is no easy way to measure business growth. Anticipated outcomes included in the CBA are greater tax revenue and job creation. Other outcomes include the hidden multiplier effect of this programme on businesses, its positive impact on the business supply chain and the impact of Interface West London projects. Businesses will be targeted using a given profile (turnover of c £200,000+, 5-49 employees, based in West London and with high growth potential in 3 key growth areas, i.e. digital services, creative industries and manufacturing). Businesses who approach IWL but who do not fit the profile will be assisted where possible, through a catalogue of possible solutions.. Unknown at this stage Stakeholders include WLA 6 boroughs, businesses and business leaders, HEIs, academics, the wider public sector and providers of university-business cooperation (UBC) schemes, BIS Local, PSTN and Technology Strategy Board Anticipated Benefits Target Group (s) No. of Beneficiaries Programme Partners Summary of Proposition and Transformation The proposition is to unleash the untapped potential of university-business co-operation for West London by transforming the relationships between businesses, higher education institutions and West London boroughs. The proposal envisages a natural partnership between these parties where organisational boundaries are broken down and knowledge shared through flexible platforms in support of sub-regional economic growth. West London is a dynamic sub-region with a competitive, resilient and heterogeneous economy. Its contribution to the UK economy is forecast to reach £48 billion by 2020. It benefits from its strategic location between Central London and the Greater South East. It is home to Heathrow, the UK’s sole international hub airport and to more than 81,000 businesses. 87% of these are microbusinesses, with most large businesses located in the vicinity of Heathrow. The sub-region has a number of key sectors and geographical clusters of high-performing sectors. There are around 800,000 employee jobs. Six HEIs are based in or have campuses in West London: Brunel University, Middlesex University, Westminster University, University of West London and Bucks New University (Nursing campus). Two further HEIs - Imperial West and UCFB Wembley, will soon be operating in the area. Interface West London is based on “interface” a brokerage service for businesses in Scotland which translates business problems into academic projects for its higher education and research partners. Contact: Judy Flight, WLA Assistant Director of Economic Development at flightj@ealing.gov.uk West London Whole Place Community Budgets Work Stream Business Case Summary Report as at April 2014 The Interface West London knowledge transfer scheme will target businesses with a given profile based on the experience of existing schemes and consultation with partners already involved in Knowledge Transfer Partnerships. There is currently no sub-regional brokerage model in place for West London and the proposal involves establishing a “hub” centrally located in West London, from which to operate. Summary of “Offers We will unleash the untapped potential of UBC for West London by transforming the relationships between businesses, HEIs and West London boroughs and create sub-regional economic growth. Summary of “Asks” We are asking the TSB, BIS, LEP, GLA and MAS (Manufacturing Advisory Service) to support the scheme through any identified underspend, targeted grants or other funding sources. Where are we now? Following a broad partner forum and workshops in July / August 2013 to discuss and agree high level growth related themes, work began in earnest on proposals around business growth in October 2013. Options were appraised and a strategic business case has been developed with partners. A preliminary CBA has been undertaken, although there are issues to be resolved about how the benefits of business growth are measured using the current CBA model. Unlike other WLA Whole Place Community Budget programmes, IWL does not try to reconfigure existing spending to achieve better outcomes. The financial case is made by stating the benefits that would accrue to stakeholders and the wider economy. By way of example - within 10 years of operation Interface (Scotland) has generated £17m in GVA and supported over 350 jobs. Forecasts on both figures are set to rise dramatically over the next 2-3 years1. West London HEIs have funding available for bilateral knowledge transfer initiatives and participate in national knowledge transfer schemes. However, they do not fund or participate in sub-regional initiatives. The benefits of working together at a sub-regional level include greater cost efficiencies; a more cohesive and understandable offer to businesses; more opportunities to translate research and a critical mass. There are opportunities to support the proposal arising from the London ESIF for 2014-2020 Challenges Resources and working with such a wide range of partners over a large geographical area are perhaps the main challenges in the development and implementation of the propositions. Recent funding from the DCLG of £150,000 is timely and is providing the WLA six councils with additional resources to take the business case to the next ‘detailed implementation planning’ stage. 1 Evaluation of Interface – The knowledge connection for business, BiGGAR Economics, May 2013 Contact: Judy Flight, WLA Assistant Director of Economic Development at flightj@ealing.gov.uk West London Whole Place Community Budgets Work Stream Business Case Summary Report as at April 2014 While collaboration between the West London boroughs has shown its worth in delivering a number of public services improvement and efficiency programmes over many years, good partnership working takes time. And with such a wide range of new partners the WLA’s membership of the PSTN is adding value in terms of facilitating the sharing of experience and learning and dialogue with a number of government departments and other areas doing similar things. Specific challenges for this proposal include ensuring funding can be sourced and customers fully engaged through the use of multi-channel outreach and marketing and a physical presence in the area. What next? The first nine months of 2014/15 will see a peer review and challenge session, implementation planning, a review of funding options and the development of a funding strategy, and formal partner commitment. In addition, we are planning to work with the PTSN and New Economy on the way in which the current CBA model deals with the benefits of higher levels of economic growth. The aim will be to prepare for implementation early in 2015 with delivery from April 2015. Contact: Judy Flight, WLA Assistant Director of Economic Development at flightj@ealing.gov.uk