Supplementary memorandum from Advantage
West Midlands (AWM 11)
Q4 and Q5—AWM Spend
AWM financial statements follow guidelines set
out by UK GAAP. Consequently, due to its nature, a significant
proportion of our programme expenditure is capitalised and does
not appear in the income and expenditure account.
The total programme expenditure for 2008-09
was £298,189,000. This comprises £245,889,000 plus £52,300,000
of capitalised programme expenditure which sits in the Agency's
balance sheet.
The comparative figures for 2007-08 were £229,540,000
plus capitalised expenditure of £65,214,000, giving a total
programme expenditure of £294,754,000.
Therefore the total increase in programme expenditure
between 2007-2009 was £3,435,000 or 1.16%.
Q8—Note on CEO Salary
In 2008-09, Mick Laverty's salary comprised
a basic salary of £132,381.30, a non-consolidated bonus of
£11,688.70 and a car allowance of £5,000.04. The salary
range for AWM's Chief Executive in 2008-09 was £113,334—£137,607.
Mick was therefore paid 96% of the range.
In 2007-08, John Edwards' salary comprised a
basic salary of £130,144, a non-consolidated bonus of £23,102
and a car allowance of £5,000.04. The salary range for AWM's
Chief Executive in 2007-08 was £108,454—£130,144.
John Edwards was therefore paid 100% of the range.
Q14—Q19—ERDF: how much was spent on
business?
The ERDF Programme has an allocation of
400 million with a budget profile that equates to
circa
55 million per year from 2007 to 2013.
Within this overall allocation,
135 million (34%) is allocated specifically for support
to SMEs and for business creation. A small element of support
to large companies is also permitted, but only when there is a
clear benefit to the region's SMEs.
A further
145 million (36%) is allocated to promote innovation
and R&D and as much of this is focused towards stimulating
knowledge transfer and increasing collaboration between HEIs and
SMEs, SMEs are the ultimate beneficiary of this activity.
To date just over £85.2 million has been
committed from the programme; £41.4 million (49%) of this
has been committed to projects which support businesses and business
creation; and £38.2 million (45%) to projects which promote
innovation and R&D. The activity is delivered within the Government's
Solution for Business framework.
The budget allocation has to be spent within
fixed deadlines referred to as "N+2" referring to the
fact that region's have to spend the budget allocated in year
N within two full calendar years.
Therefore, the first (2007) N+2 target of
55 million had to be achieved by December 2009. AWM
exceeded this first target in spite of the Programme approval
being delayed by 12 months and the impact of public budget reductions
(which co-finance the ERDF) and the recession in general.
AWM remain confident that the full allocation
will be spent within the programme deadline (which is December
2015) but this will be challenging as public sector funding, which
is recorded as national funding, reduces.
Q34—Overseas Representatives
The rationale behind AWM's overseas representatives
is based on a those countries and areas the region has attracted
investment from plus markets that provide significant future opportunities.
We continually review our overseas representatives and have withdrawn
representation from Singapore, Korea and Taiwan in response to
changing investment conditions.
All of these representatives have priority,
target sectors that they focus on but all are capable of working
with any business interested in establishing a presence in the
West Midlands.
Details of location, focus and type of representation
are detailed below.
| Location | Focus
| Representation |
| Australia | Advanced Manufacturing, ICT
| 1 Full Time |
| Benelux | Advanced Manufacturing, Building Tech, Environmental Technologies
| 1 Full Time |
| Canada (Montreal) | ICT, automotive
| 1 Part Time rep |
| France | All clusters | 1 Part Time rep
|
| India | ICT, Automotive, Business and Professional services
| 1 Part Time rep |
| China | ICT, Automotive |
1 Part Time rep |
| Germany | Automotive, Environmental Technologies, ICT
| 1 Full Time |
| Japan | Advanced Manufacturing, Automotive
| 1 Part Time rep |
| Scandinavia (covering predominantly Sweden)
| Environmental Technologies, ICT | 1 Part Time rep
|
| 1. USA—Washington | Advanced Manufacturing, ICT,
Business and Professional services
| 1 Part Time rep |
| 2. USA—Chicago | Advanced Manufacturing, ICT,
Business and Professional services
| 1 Part Time rep |
| 3. USA—Richmond | Advanced Manufacturing, ICT,
Business and Professional services
| 1 Part Time rep |
Q44—New Street Station
Current Capacity
| | |
New Street station currently handles 1,240 train movements
and 140,000 passengers each day, more than twice the number of
passengers than when it opened in 1966. With 14% growth between
2005-07, at peak periods the station is operating at close to
its passenger handling capacity.
Future Capacity
The redevelopment of the station's platforms and concourse
will provide for up to 140% increase in current passenger capacity
and will accommodate passenger demand to at least 2035.
Significant growth of 120% on regional and suburban train
services by 2040 can be accommodated through lengthening of trains
planned improvements to signalling to allow reduction in train
headway and a simplification of the train timetable.
In addition, capacity for significant growth of in excess
of 100% in long distance services on the West Coast mainline through
New Street can be accommodated until around 2025. After this,
however, supplementary capacity would be required across the network
and at New Street to cater for further growth in demand for services
to London Euston. Solutions for addressing rail capacity across
the national network for beyond 2025, namely High Speed Rail (HS2),
are being developed as part of a longer term transport strategy,
and future long distance services (including any future High Speed
Link) would need to be serviced by additional rail infrastructure
and stations somewhere in or around Birmingham.
In any event, New Street will remain a fundamental part of
the region's rail network in the longer term to 2050, as the hub
for local and regional services, irrespective of any solution
subsequently developed to address capacity for long-distance services
needed after 2025.
Q54—Business Link
1. Funding
During 2008-09, Business Link West Midlands were originally
contracted to provide £23,298,723 worth of support but the
service delivered support worth £35,211,144 after AWM awarded
them £11,912,421 worth of additional contracts to help them
support businesses through the recession.
This is broken down as follows:
| Project | Contracted
| Actuals |
| Business Link West Midlands—Core Funding
| £23,298,723 | £24,443,178
|
| WM Brokerage Service (Commercial contract)
| £18,891,298 | £20,117,775
|
| Gateway West Midlands (Commercial contract)
| £4,407,425 | £4,325,403
|
| Business Link West Midlands—ERDF projects
| | £8,608,220 |
| Business Support Action Plan WM Brokerage Service
| | £8,148,829 |
| Business Support Action Plan Gateway West Midlands
| | £459,391 |
| Business Link West Midlands—Other Grant-Funded projects
| | £2,159,746 |
| Early Entry to Enterprise |
| £87,521 |
| CT Bus. Support Regional Coordinator |
| £39,900 |
| Improving Business Support To Social Enterprise
| | £238,540 |
| Designing Demand | |
£377,725 |
| LSC Train to Gain Skills Gateway |
| £698,903 |
| Regional Skills Partnership Leadership Management and Enterprise Skills Phase 2
| | £305,619 |
| Business Brokers | |
£271,502 |
| BME Capacity Building |
| £34,979 |
| Quality at Heart | |
£34,098 |
| Toursim and Leisure Regional Centre for Tourism Bus Support Phase 2
| | £70,959 |
| | £35,211,144
|
| |
|
Similarly, during 2008-09 the West Midlands Manufacturing
Advisory Service (MAS) were originally contracted to provide £5,890,526
worth of support but the service delivered support worth £6,963,969
after AWM awarded them £1,073,443 worth of additional contracts
to help manufacturers through the recession.
This is broken down as follows:
| Project | Contracted
| Actuals |
| WM Manufacturing Consortium (Commercial contract)
| £5,049,000 | £5,305,585
|
| Business Support Action Plan MAS | £841,526
| £696,954 |
| MAS—West Midlands—Grant Funded projects
| | £961,429 |
| Product Innovation Consortium S/P |
| £49,178 |
| Rail Industry Supply Chain |
| £240,062 |
| Rail Business Network Programme |
| £315,000 |
| Midland Productivity Alliance |
| £172,303 |
| Inside Manufacturing Enterprise Schools to Business
| | £94,886 |
| World Class Supply Chains |
| £90,000 |
| MAS—West Midlands—Total Projects
| | £6,963,968 |
| |
|
In total AWM provided an extra £12,985,863 to Business
Link West Midlands and the West Midlands Manufacturing Advisory
Service (a increase of 44%) to help them provide additional support
for businesses in the West Midlands.
2. Performance
BUSINESS LINK
WEST MIDLANDS
PERFORMANCE AGAINST
TARGETS, 2007-08 TO
2009-10
| | 2007-08
| 2008-09 | 2009-10
|
| Key Performance Indicator | Target
| Actual | Target
| Actual | Target
| Actual To Date (8/01/09) |
| Gateway | |
| | |
| |
| Market Penetration (Unique Businesses) | 64,000
| 67,221 | 67,000 | 71,980
| 70,000 | 54,666 |
Market Penetration (Unique
Pre-starts)
| 17,000 | 18,345 | 18,000
| 26,435 | 19,500 | 21,631
|
| Rural Market Penetration | 10,624
| 11,811 | 14,071 | 14,574
| 14,000 | 10,886 |
| Trading Penetration—BME | 2,000
| 5,656 | 7,035 | 7,907
| 8,500 | 6,779 |
| Community Enterprise Leads | 0
| 0 | 3,779 | 4,570
| 0 | 0 |
| Customer Satisfaction | 88.70%
| 82.67% | 92% | 88.3%
| 93% | 90% |
| Brokerage | |
| | | |
|
| Intensive Assists—total | 8,270
| 8,738 | 12,190 | 3,996
| 13,000 | 9,500 |
| Business Assists | 120 | 1,675
| 742 | 1,086 | 550
| 577 |
| Rural Intensive Assists | 1,373
| 1,748 | 2,581 | 2,951
| 2,600 | 1,902 |
| Women Owned Companies Intensive Assists |
— | — | 1,920
| 3,256 | 2,520 | 2,186
|
| Customer Satisfaction | 92% |
88% | 92.5% | 88.3%
| 93% | 86% |
| GVA | 0.00% | 0.00%
| 5% | 15% | 7%
| 6% |
| GVA (No of companies) | 0 |
0 | 1,500 | 1,676 |
5,000 | 1,910 |
| Pre-start Support | 4,500 |
6,848 | 6,800 | 14,797
| 9,000 | 9,488 |
| Business Starts | 2,500 | 2,614
| 2,838 | 2,980 | 3,400
| 1,844 |
| High Growth Starts | 340 |
148 | 90 | 95 |
70 | 21 |
| High Growth Businesses Assisted | 185
| 110 | 408 | 544
| 420 | 343 |
| Survival 12 months | — |
212 | 1,503 | 1,289
| 1,419 | 954 |
| Ethnic Minority Business Start-ups | 398
| 610 | 650 | 778
| 550 | 420 |
| Non-contractual targets—Brokerage
| | | |
| | |
| Jobs Created | 0 | 0
| 0 | 3,514 | 4,000
| 1,823 |
| Jobs Safeguarded | 0 | 0
| 0 | 573 | 750
| — |
| Skills | |
| | | |
|
| Skills Customer Satisfaction |
| | | | 90
| 91% |
| Skills Intensive Assists | |
| | | 3,685
| 2,585 |
| Large Company Skills IA | |
| | | 100
| 58 |
| Training Proposals | |
| | | 1,100 |
770 |
| Referrals | |
| | | 8,400 |
4,929 |
| Skills Pledge Sign-ups | |
| | | 921
| 798 |
| Skills Challenge Organisations |
| | | | 137
| 110 |
3. West Midlands Manufacturing Advisory Service Performance Against Targets, 2007-08 to 2009-10
| | | |
| | |
| | 2007-08
| 2008-09 | 2009-10
|
| Target | Actual
| Target | Actual
| Target | Actual To Date (16/12/09)
|
| Jobs Created | 45 |
48 | 145 | 197 |
71 | 101 |
| Jobs Safeguarded | 37 | 174
| 652 | 285 | 204
| 11 |
| Businesses Assisted | 728 |
919 | 833 | 895 |
196 | 151 |
| Total Penetration | 1,600 |
1,824 | 1,700 | 2,607
| 1,800 | 1,587 |
| Intensive Assists | 670 |
723 | 670 | 753 |
710 | 649 |
| |
| | | |
|
For 2008-09, an further analysis is as follows:
| | Jobs Created
| Jobs Safeguarded | Businesses Assisted
| Total Penetration | Intensive Assists
|
| Project | Target |
Actual | Target | Actual
| Target | Actual | Target
| Actual | Target | Actual
|
| WM Manufacturing Consortium (commercial contract)
| 74 | 96 | 448
| 274 | 747 | 830
| 1,700 | 2,607 | 670
| 723 |
| Rail Industry Supply Chain | 5
| 2 | 7 | 3 |
13 | 12 | n/a |
n/a | n/a | n/a |
| Rail Business Network Programme | 1
| 7 | 8 | 2 |
44 | 44 | n/a |
n/a | n/a | n/a |
| Midland Productivity Alliance | 40
| 20 | 120 | 6 |
14 | 9 | n/a | n/a
| n/a | n/a |
| World Class Supply Chains | n/a
| n/a | n/a | n/a
| 15 | 0 | n/a |
n/a | n/a | n/a |
| BSAP MAS | 25 | 72
| 69 | 0 | n/a |
n/a | n/a | n/a |
n/a | n/a |
| Total | 145 |
197 | 652 | 285
| 833 | 895 |
1,700 | 2,607 | 670
| 723 |
Q56—Skills Targets and Outputs
| | | |
| | | |
| | |
AWM funding for skills is directed at "gaps" where
primary funders such as the LSC, JobCentre Plus, the Higher Education
Funding Council for England and Local Authorities do not have
the flexibility to direct their resources.
From 2010-11, the Agency will have an increased role in developing
and aligning skills strategy and influencing Skills Funding Agency
(SFA) spend via Region Priority Statements, although it should
be noted that these are driven by national priorities and nationally
set targets. The Agency also influences spend on skills activity
for 16-19 year olds by jointly chairing Regional Planning Groups
and also influence HEFCE spend through discussions with them regionally
and nationally.
Outputs
The following table is an indication of how AWM funded projects
are addressing those skills areas outlined in the 2008-09 Annual
Report. These are estimated indications at this stage (8 January
2009) as of 2009-10, AWM will only be required to report on the
"people assisted with skills development" target and
we are confident that we will surpass this particular target
We are continuing to informally monitor progress against
our previous individual targets although these will not be reported
on in our accounts. However, in line with our overall policy of
ensuring that our decreasing budgets continue to have the greatest
possible outcome in terms of addressing the needs of the WMES,
our emphasis is on impact rather than sheer numbers.
| Output | Target
| Current forecast (08/01/09) |
| People assisted in skills development
| 17,000 | 17,000+ |
| Leadership and Management | 1,040*
| 1,842 |
| Upskilling to a graduate level | 300*
| 300 |
| Graduates into employment in the private sector
| 400* | 475 |
| * Targets for 2008-09 |
| |
| |
|
As far as establishing the skills needs of the region is
concerned, AWM has to date co funded (with the LSC and ESF) a
team at the West Midlands Regional Observatory who each year produce
a range of publications that draw on a very wide evidence base
to inform our strategic priorities. In future the work will be
funded by AWM alone. This can be seen at http://www.wmro.org/standardTemplate.aspx/Home/OurResearch/Skills
8 January 2010
|
