Business Services: The Lanarkshire Experience

1. Business Services: The Lanarkshire Experience Presentation to the Local Economic Forum Stakeholders Conference 7th December 2004 Maureen McConachie North Lanarkshire Council

2. 1st year LEF task on rationalising Business Support Services • LEF established 2001 • Lanarkshire context – Previous long established history of positive partnership and effective working relationships • 1st year LEF task of rationalising Business Support Services • Starting point for task was a major independent research consultation with local businesses to assess current satisfaction levels, service gaps, etc. • Outcome of research:– • little by way of major perceived service gaps; • some confusion over available services; • some confusion on respective roles of economicdevelopment partners

3. LEF Structure NLP SLP LEF Services to Business Image & Tourism Routes to Inclusion Competitive Place Strategy Monitoring

4. LEF Structure • Services to Business group chaired by private sector • Input from key public & private partners

5. Actions to Streamline / Improve Business Services • Some programmes dropped because they were seen to be duplicating (e.g. Management & Training Programmes, Domestic Trade Programmes) • Partnership doesn’t have to mean everyone is involved in everything. (e.g. development of pan-Lanarkshire Property Enquiry Service led by SLC) • Increased consistency across the two council areas (e.g. scope of programmes) • But still scope to reflect different needs/ priorities across distinct communities(e.g. rural more of an issue in South Lanarkshire)

6. Actions to Streamline / Improve Business Services • Improved communications with businesses:- • Issue highlighted by businesses via research • 6 publications into 1 • Improved quality / consistency of publication / tailored to business needs • Joint funding of new publication • Editorial Committee from key partners • Financial savings made from rationalisation of publications – (c. £50k p.a.) • Ongoing feedback from readership re perceived usefulness

7. Business Gateway Delivery • 7 Business Gateway delivery agents merged into 1 • Major change - a process that was not without ‘pain’ • But major benefits now being reaped • Improved consistency of delivery across Lanarkshire • Reduced confusion amongst businesses • Reduced overhead costs – c. £350k p.a. savings from BG restructuring alone • Increased focus on frontline delivery. Savings allowed for service enhancements (e.g. enhanced social economy dedicated support within BG) • Increased uptake of services amongst local businesses – A number of output targets actually increased (e.g. Business start-up support 2001/2 = 780 new businesses assisted; 2003/4 = 1,100) • Single contract, involving service level agreement for main funding partners’ programmes

8. The ‘Lanarkshire model’ • What the partners see as being appropriate for our area • No requirement seen in Lanarkshire for all business support staff to be ‘under one roof’ • But close contact – ‘virtual team’ • Clear parameters re respective roles and priorities of partners • ‘Business’ and ‘Inclusion’ issues linked via LEF structure(e.g. future labour supply issue clearly links to concerns with reducing IB recipients)

9. Future Considerations • Competitive tender of BG contract • Need to ensure that we don’t potentially risk losing the expertise that has been developed due to short-term cost saving considerations • Potential danger that what has been ‘built up’ could unravel • Overall progress made, but still major challenges in the local economy (e.g. increasing ‘value added’ within SMEs, promoting entrepreneurial culture, addressing worklessness)