Advantage West Midlands Annual Report and Accounts 2008-09 - West Midlands Regional Committee Contents


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.
LocationFocus Representation
AustraliaAdvanced Manufacturing, ICT 1 Full Time
BeneluxAdvanced Manufacturing, Building Tech, Environmental Technologies 1 Full Time
Canada (Montreal)ICT, automotive 1 Part Time rep
FranceAll clusters1 Part Time rep
IndiaICT, Automotive, Business and Professional services 1 Part Time rep
ChinaICT, Automotive 1 Part Time rep
GermanyAutomotive, Environmental Technologies, ICT 1 Full Time
JapanAdvanced Manufacturing, Automotive 1 Part Time rep
Scandinavia (covering predominantly Sweden) Environmental Technologies, ICT1 Part Time rep
1.  USA—WashingtonAdvanced Manufacturing, ICT,
Business and Professional services
1 Part Time rep
2.  USA—ChicagoAdvanced Manufacturing, ICT,
Business and Professional services
1 Part Time rep
3.  USA—RichmondAdvanced 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:
ProjectContracted 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:
ProjectContracted 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 IndicatorTarget ActualTarget ActualTarget Actual To Date (8/01/09)
Gateway
Market Penetration (Unique Businesses)64,000 67,22167,00071,980 70,00054,666
Market Penetration (Unique
Pre-starts)
17,00018,34518,000 26,43519,50021,631
Rural Market Penetration10,624 11,81114,07114,574 14,00010,886
Trading Penetration—BME2,000 5,6567,0357,907 8,5006,779
Community Enterprise Leads0 03,7794,570 00
Customer Satisfaction88.70% 82.67%92%88.3% 93%90%
Brokerage
Intensive Assists—total8,270 8,73812,1903,996 13,0009,500
Business Assists1201,675 7421,086550 577
Rural Intensive Assists1,373 1,7482,5812,951 2,6001,902
Women Owned Companies Intensive Assists 1,920 3,2562,5202,186
Customer Satisfaction92% 88%92.5%88.3% 93%86%
GVA0.00%0.00% 5%15%7% 6%
GVA (No of companies)0 01,5001,676 5,0001,910
Pre-start Support4,500 6,8486,80014,797 9,0009,488
Business Starts2,5002,614 2,8382,9803,400 1,844
High Growth Starts340 1489095 7021
High Growth Businesses Assisted185 110408544 420343
Survival 12 months 2121,5031,289 1,419954
Ethnic Minority Business Start-ups398 610650778 550420
Non-contractual targets—Brokerage
Jobs Created00 03,5144,000 1,823
Jobs Safeguarded00 0573750
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
TargetActual TargetActual TargetActual To Date (16/12/09)
Jobs Created45 48145197 71101
Jobs Safeguarded37174 652285204 11
Businesses Assisted728 919833895 196151
Total Penetration1,600 1,8241,7002,607 1,8001,587
Intensive Assists 670 723670753 710649


  For 2008-09, an further analysis is as follows:
Jobs Created Jobs Safeguarded Businesses Assisted Total Penetration Intensive Assists
ProjectTarget ActualTargetActual TargetActualTarget ActualTargetActual
WM Manufacturing Consortium (commercial contract) 7496448 274747830 1,7002,607670 723
Rail Industry Supply Chain5 273 1312n/a n/an/an/a
Rail Business Network Programme1 782 4444n/a n/an/an/a
Midland Productivity Alliance40 201206 149n/an/a n/an/a
World Class Supply Chainsn/a n/an/an/a 150n/a n/an/an/a
BSAP MAS2572 690n/a n/an/an/a n/an/a
Total145 197652285 833895 1,7002,607670 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.
OutputTarget Current forecast (08/01/09)
People assisted in skills development 17,000  17,000+
Leadership and Management1,040* 1,842  
Upskilling to a graduate level300* 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





 
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