More businesses and more jobs for North Tyneside

 

13-MAY-09

Issued by: Jeanette Hedley

A five-year plan to encourage business growth and increase employment has been approved by North Tyneside Council's Cabinet.

The Economic Development and Inclusion Investment Plan is an approach that sets out the council's commitment to continue to 'close the gap' around its two themes - more jobs, more businesses.

It supports the council's Economic Resilience Plan to address the economic downturn.

And it will be delivered together with the council's partners and will use both council and external funding to deliver maximum results for the borough and its residents.

"The primary emphasis will continue to be 'closing the gap' in North Tyneside and delivering our vision of an enterprising borough with an increased rate of business creation and survival and more people in employment," said Councillor Frank Lott, Cabinet member for Economy and Employment.

"Using core council funding - including a £1million allocation to the 'More jobs, more businesses' initiative' - and external funding it is intended to deliver significant results through a sustained programme of interventions over the next five years.

"The five-year £5.9m funded plan will lead to the council and other partners mainstreaming funding to continue to deliver activities that are most effective in developing and creating businesses, delivering training and skills and enabling residents to access employment opportunities."

The new plan will aim to build on the borough's successes in business and employment development.

Business start-ups and survival rates have increased each year since 2002, demand for business land is consistently strong and improved employability and skills levels of residents is one of the outcomes of the borough's work to improve the borough's multiple deprivation rankings from 80 to 102.

Several major physical regeneration initiatives are being delivered, including Whitley Bay, North Shields Fish Quay and Battle Hill. Improving employability and skills levels is a key focus in the North Bank of the Tyne regeneration scheme.

However, the borough has a number of challenges to be met.

Worklessness remains high in disadvantaged areas with an average rate of 29.7 percent in the five priority wards, compared to 13.5 percent for the other 15 wards.

Business start up rates are still low compared to national figures and there is low entrepreneurial culture in disadvantaged areas of the borough.

To address the challenges the plan proposes a range of initiatives to raise aspirations and skills within communities, generation a greater enterprising and entrepreneurial culture and attracting more inward investment. Projects include:

- Promoting and supporting social enterprise in targeted communities

- Additional support for new business start-ups through an increased outreach capacity

- More support for local businesses to provide practical help

- Developing a North Tyneside Business Network

- Commissioning contracts with external agencies to provide intensive and focused support to residents in the disadvantaged wards.