Agenda item

The Leader presented the report that set out the Economic Impact and Recovery Strategy to support and

facilitate Newport’s businesses to recover and to continue operating.   

The Leader confirmed:

·         The Newport Economic Growth Strategy was adopted in 2015; and updated and approved by Cabinet in February 2020.  At that time it was recognised that Newport had become a more competitive city with a growing influence in high value sectors and a rapidly expanding tourism sector. 

·         Following the announcement of lockdown on 23rd March 2020, the UK and Welsh Governments announced unprecedented intervention packages to help mitigate the worst of the economic damage a prolonged lockdown would bring.  Over 2000 Newport businesses have received more than £26m in grant support.  There has been a huge effort by the finance team to support businesses at this time and a number of very positive letters and feedback have been received from the business community in Newport.

·         Economically, Newport is now in a different place.  Unemployment in Wales is expected to rise from 3.2% to over 7.3% and it has been confirmed the UK economy shrank by 20.4% in April.  Further reports predict the UK to be on the brink of the worst recession for three centuries. 

·         In order to recover and reposition itself, Newport needs to identify what areas of its economy will require support, where there are new opportunities and how the Council can shape the ‘new normal’ with businesses and investors; and to work collaboratively towards Newport’s recovery.

·         The strategy contained in the report will form an addendum to the adopted Economic Growth Strategy; the strategy proposed three key areas of focus: Recovery, Repositioning and Renewal:

o   Short term RECOVERY.  Supporting businesses to ensure they claim all the grants and financial support available, supporting new opportunities and making sure interventions are appropriate, efficient and most of all timely.

o   Medium term REPOSITIONING.  Continuing to attract inward investment and being clear about what the City has to offer in terms of quality of life and employment opportunities.  Accelerating improvements to the digital infrastructure to support increased levels of home working, and growing the education and skills offer for the workforce to be able to adapt to a ‘new normal’; not just across the Council but across the whole of Newport.

o   Longer term RENEWAL.  Repositioning Newport in a new world where there will be opportunities to rebalance the economy with the environment and society to give greater resilience and improved well-being for residents, now and in the future.

The Leader confirmed this is a partnership approach and the Council will work with all partners, including the Cardiff Capital Region and the Western Gateway, to ensure that Newport emerges in a stronger and more resilient position. 

The Leader had no hesitation in presenting the Strategy to Cabinet with the recommendation that Cabinet endorse it and start Newport’s journey to economic recovery.

The Leader invited Cabinet Member comments on the report:

All Cabinet Members agreed that these are unprecedented times but that the Council will step up to the extremely challenging times ahead.  This crisis provides an opportunity to look at different ways of working to support in particular the most vulnerable; the Council also needs to provide support and guidance to those who find themselves unemployed within the hospitality, leisure and retail sectors.  Young people not in employment, education or training (NEETS) will be severely affected as their opportunities for employment will be massively reduced.  Through the past 10 years of austerity, Newport has found ways in which to well serve the city and its residents and will continue to strive to enable people to get back into work and to re-start Newport’s economy.  The Council has to ensure there are no wasted opportunities and that interventions are timely and well managed to ensure a good recovery.  The Council’s good financial planning will be important in achieving these goals.

The Leader invited the Acting Head of Regeneration, Investment and Housing to comment: Mrs Brooks reinforced the comments already made, and confirmed this is definitely an opportunity for Newport to reposition itself and shape and influence its ‘new normal’. 

The Acting Chief Executive thanked the team for their hard work in pulling this important document together.  Mrs Owen confirmed that a task and finish group had been set up with partners and this work has been a corporate team effort to look at ways to support and sustain the economy.

The Leader confirmed that at the July Cabinet meeting a report on the Western Gateway will be on the agenda which will aid further discussion on Newport’s economic recovery. 

The Leader thanked colleagues for their comments and proposed that Cabinet agreed to adopt the Covid-19 Economic Impact and Recovery Strategy as an addendum to the Economic Growth Strategy (as updated in February 2020) to ensure that the Council continues to support Newport’s economy and identify where new opportunities may be found in order to shape the ‘new normal’ and continue to capitalise on opportunities for growth and investment until 2025.

Decision:

Cabinet voted and unanimously agreed and endorsed the Strategy.