Agenda Document Pack - Economy and Regeneration Policy Board - 21/01/2025
Renfrewshire Council · 21 January 2025
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15/01/2025 Notice of Meeting and Agenda Economy and Regeneration Policy Board Date Time Venue Tuesday, 21 January 2025 10:00 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN Membership Councillor Andy Steel (Convener): Councillor Michelle Campbell (Depute Convener): Councillor Alison Ann-Dowling: Councillor Stephen Burns: Councillor Graeme Clark: Councillor Andy Doig: Councillor Neill Graham: Councillor Robert Innes: Councillor Janis McDonald: Councillor Jamie McGuire: Councillor Marie McGurk: Councillor Iain McMillan: Councillor John McNaughtan: Councillor Iain Nicolson: Councillor Jim Paterson: Further Information This is a meeting which is open to members of the public. A copy of the agenda and reports for this meeting will be available for inspection prior to the meeting at the Customer Service Centre, Renfrewshire House, Cotton Street, Paisley and online at http://renfrewshire.cmis.uk.com/renfrewshire/CouncilandBoards.aspx For further information, please email democratic-services@renfrewshire.gov.uk Members of the Press and Public Members of the press and public wishing to attend the meeting should report to the customer service centre where they will be met and directed to the meeting. Hybrid Meeting Please note that this meeting is scheduled to be held in the Council Chambers. However, it is a hybrid meeting and arrangements have been made for members to join the meeting remotely should they wish. MARK CONAGHAN Head of Corporate Governance
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15/01/2025 Webcasting of Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Convener will confirm if all or part of the meeting is being filmed. To find the webcast please navigate to https://renfrewshire.public-i.tv/core/portal/home
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15/01/2025 Items of business Apologies Apologies from members. Declarations of Interest and Transparency Statements Members are asked to declare an interest or make a transparency statement in any item(s) on the agenda and to provide a brief explanation of the nature of the interest or the transparency statement. 1 Revenue and Capital Budget Monitoring 2024/25 at 8 November 2024 Joint report by Chief Executive and Director of Finance & Resources. 1 - 8 2 Greater Renfrewshire and Inverclyde (GRI) Community Led Local Development (CLLD) Update Report by Chief Executive. 9 - 14 3 Renfrewshire Economic Profile (January 2025 Report by Chief Executive. 15 - 30 4 Glasgow City Region Investment Zone - Update Report by Chief Executive. 31 - 38
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___________________________________________________________________ To: Economy and Regeneration Policy Board On: 21 January 2025 ___________________________________________________________________ Report by: Chief Executive and Director of Finance and Resources ___________________________________________________________________ Heading: Revenue and Capital Budget Monitoring 2024/25 at 8 November 2024 ___________________________________________________________________ 1. Summary 1.1 At the close of reporting Period 8 on 8 November 2024, the projected revenue outturn at 31 March 2025 for those services reporting to the Economy and Regeneration Policy Board was an underspend position of £0.092m (4.0%) against the revised budget for the year. 1.2 The projected capital outturn at 31 March 2025 for projects reporting to the Economy and Regeneration Policy Board is a break-even position. 1.3 This is summarised in the table below and further analysis is provided in the report and appendices. Revised Annual Budget £000 Projected Outturn £000 Budget Variance (Adv)/Fav £000 Budget Variance % Revenue Economy and Development 2,306 2,214 92 4.0% Capital Economy and Development 17,302 17,302 0 0.0% 2. Recommendations 2.1 Members are requested to: a) Note the projected Revenue outturn underspend position of £0.092m; and b) Note the projected Capital outturn break-even position. Item 1 EAR210125 Page 1 of 38
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3. Revenue Budget Projection – underspend of £0.092m by 31 March 2025 3.1 The tables in Appendix 1 present the projected year-end position for all services reporting to this board, by both subjective analysis (what the budget is spent on) and objective analysis (which division is spending the budget). Significant variances affecting the projected position are analysed further below. 3.2 It should be noted that the projected outturn position reported here is based on the latest information available, which is subject to change during the financial year. The impact of any change on this projection will be updated at each board cycle until the close of reporting Period 10. Budget holders are obliged to seek mitigating action to minimise significant budget variances. 4. Objective Analysis – Significant Variances 4.1 Regeneration - £0.092m underspend This forecast position reflects the impact of vacancies within the team over the course of the financial year. 5. Subjective Analysis – Significant Variances 5.1 Employees - £0.091m underspend by 31 March 2025 This projected underspend represents vacancies in the Regeneration team which are in the process of recruitment. 6. Revenue Budget Virements 6.1. Under the Council’s financial regulations, Directors and their nominated officers, in consultation with the Director of Finance and Resources, have certain delegated authority to transfer sums between subjective budget headings within a service division to enable budget management throughout the financial year. This is known as ‘budget virement’. Transfers between divisions of the same service / department in excess of £100,000, and transfers between services / departments must be authorised by the respective service Director/Chief Executive and the Director of Finance and Resources for submission to the relevant policy board for approval. Future reports may therefore ask the board to approve budget adjustments that are deemed necessary for good budget management. No budget adjustments have been processed since the previous report to board. Page 2 of 38
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7. Capital Budget Projection – break-even position by 31 March 2025 7.1 The approved Capital Investment Programme 2024/25 to 2028/29 for Economy and Regeneration was £16.612m. The revised capital spend for 2024/25 is £17.302m. 7.2 The in-year Capital budget is forecast to break-even by 31 March 2025 after a number of budget adjustments between years have taken place, to reflect revised programming of some capital projects. Details of these adjustments, which amount to £0.690m, are as follows: Project Amount (£m) Budget brought forward into 2024/25 to reflect updated timing (adjustment) Paisley Town Hall (0.482) Budget carried forward into 2025/26 for updated cashflows Town Centre Regeneration (0.085) Budget Increases in 2024/25 Paisley Junction & Charging Hub (grant award) 0.347 Shared Prosperity Fund (grant award) 0.815 Retail Improvement Scheme (approved by Council on 29/02/24) 0.070 Budget accelerated from 2025/26 into 2024/25 Place Based Investment Fund 0.025 Total 0.690 Implications of the Report 1. Financial The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an underspend of £0.092m (4.0%) at 31 March 2025. Income and expenditure will continue to be monitored closely for the rest of the financial year and as far as possible, steps will be taken to mitigate any overspend. The projected outturn position for Economy and Regeneration Capital budget is break-even, after the adjustments outlined at section 7. 2. HR & Organisational Development While staffing budgets form a significant proportion of the Council’s revenue budgets, there are no direct implications arising from the recommendations in this report. Page 3 of 38
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3. Community/Council Planning Community Plan Our Renfrewshire is thriving The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Our Renfrewshire is well Our Renfrewshire is fair Our Renfrewshire is safe Council Plan Reshaping our place, our economy and our future The Council’s revenue and capital spend ensures that its facilities are fit for purpose and safe for the community, to maximise accessibility. Building strong, safe and resilient communities Tackling inequality, ensuring opportunities for all Creating a sustainable Renfrewshire for all to enjoy Ongoing revenue and capital budget monitoring is a tool to enable good financial management so that the Council has resources now and in the future for continued service delivery. Working together to improve outcomes 4. Legal There are no direct implications arising from the recommendations in this report. 5. Property/Assets The capital expenditure noted in this report will result in improvements to Culture and Heritage assets and delivery of strategic place-shaping and regeneration. 6. Information Technology There are no direct implications arising from the recommendations in this report. 7. Equality & Human Rights While new areas of spend may impact on particular groups, any such impact would be assessed prior to the spend being incurred, therefore there are no direct implications arising from the recommendations in this report. 8. Health & Safety There are no direct implications arising from the recommendations in this report. Page 4 of 38
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9. Procurement While Procurement is an important consideration prior to the Council incurring any revenue or capital spend, there are no direct implications arising from the recommendations in this report. 10. Risk The potential financial risk that the Council will overspend its approved revenue budgets for the year is managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact There are no direct implications arising from the recommendations in this report. 12. Cosla Policy Position N/a 13. Climate Change The Council aims to reduce its carbon and other emissions to net zero by 2030, however there are no direct implications arising from the recommendations in this report. 14. Children’s Rights There are no direct implications arising from the recommendations in this report. List of Background Papers • Revenue Budget and Council Tax 2024/25, Council 29 February 2024 • The Capital Investment Programme 2023/24 to 2027/28, Council 29 February 2024 Author: Valerie Howie, Finance Business Partner; and Geoff Borland, Finance Manager. Page 5 of 38
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Appendix 1 RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2024/25 1 April 2024 to 8 November 2024 POLICY BOARD : ECONOMY AND REGENERATION Objective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Economy and Regeneration Management 35 0 35 35 0 0.0% 0 0 Economic Development 1,213 0 1,213 1,213 0 0.0% 0 0 Regeneration 1,058 0 1,058 966 92 8.7% 76 16 NET EXPENDITURE 2,306 0 2,306 2,214 92 4.0% 76 16 Subjective Summary Annual Budget at Period 6 Budget Adjustments Revised Annual Budget at Period 8 Projected Outturn Budget Variance (Adverse) or Favourable Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 4,571 0 4,571 4,480 91 2.0% 75 16 Premises Related 84 0 84 83 1 1.2% 1 0 Transport Related 3 0 3 4 (1) (33.3%) (1) 0 Supplies and Services 127 0 127 128 (1) (0.8%) 0 (1) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 2,347 0 2,347 2,345 2 0.1% 1 1 Support Services 45 0 45 46 (1) (2.2%) (1) 0 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 7,177 0 7,177 7,086 91 1.3% 75 16 Income (4,871) 0 (4,871) (4,872) 1 0.0% 1 0 NET EXPENDITURE 2,306 0 2,306 2,214 92 4.0% 76 16 Page 6 of 38
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2024 2024-25 since previous 2024-25 2023-24 Budget Outurn Project Title to 31-Mar-29 to 31-Mar-29 £000 £000 £000 £000 £000 £000 £000 ECONOMY & DEVELOPMENT Paisley Art Centre Redevelopment 2,881 869 0 869 869 0 0% 3,750 3,750 0 0% Paisley Town Hall Redevelopment 24,747 1,000 (482) 518 518 0 0% 25,265 25,265 0 0% Paisley Learning & Cultural Hub 6,654 346 0 346 346 0 0% 7,000 7,000 0 0% Paisley Museum 39,228 8,893 0 8,893 8,893 0 0% 53,001 53,001 0 0% Paisley Junctions and Charging Hub 431 194 347 541 541 0 0% 972 972 0 0% Public Realm 494 0 0 0 0 0 0% 4,050 4,050 0 0% Sports Development - St James Playing Fields Redevelopment 425 3,075 0 3,075 3,075 0 0% 3,500 3,500 0 0% Sports Development - Ferguslie Pavillion Upgrade 531 460 0 460 460 0 0% 992 992 0 0% Sports Development - Hockey Pitch at On-X 0 600 0 600 600 0 0% 600 600 0 0% Place Based Investment Fund 1,214 635 25 660 660 0 0% 2,628 2,628 0 0% Town Centre Capital Fund 766 109 0 109 109 0 0% 876 876 0 0% Town Centre Regeneration 1 180 (85) 95 95 0 0% 2,050 2,050 0 0% Shared Prosperity Fund 197 28 815 843 843 0 0% 1,040 1,040 0 0% Retail Improvement Scheme 0 0 70 70 70 0 0% 70 70 0 0% Townscape Heritage CARS 2 3,876 223 0 223 223 0 0% 4,099 4,099 0 0% Total Economy & Development 81,445 16,612 690 17,302 17,302 0 0% 109,893 109,893 0 0% TOTAL ECONOMY & DEVELOPMENT 81,445 16,612 690 17,302 17,302 0 0% 109,893 109,893 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1 April 2024 to 8th November 2024 POLICY BOARD: ECONOMY & REGENERATION Current Year 2024-25 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable Page 7 of 38
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___________________________________________________________________ To: Economy and Regeneration Board On: 21 January 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Greater Renfrewshire and Inverclyde (GRI) Community Led Local Development (CLLD) Update ___________________________________________________________________ 1. Summary 1.1 This report provides an update on delivery of the Greater Renfrewshire and Inverclyde (GRI) Community Led Local Development (CLLD) programme for 2024/25. 1.2 The report outlines an offer of additional Tranche 2 funding of £93,247.87 from Scottish Government. 2. Recommendations 2.1 It is recommended that the Board: a) Note the offer from Scottish Government to award additional Tranche 2 funding of £93,247.87 to the Greater Renfrewshire and Inverclyde area for the delivery of the Community Led Local Development programme for 2024/25. b) Agree that Renfrewshire Council as lead partner and accountable body for the Greater Renfrewshire and Inverclyde area accepts the offer. c) Agree to the continuation of delegated authority to Head of Economy and Development for the delivery of specific programme requirements. Item 2 EAR210125 Page 9 of 38
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3. Community Led Local Development (CLLD) Programme 3.1 Scottish Government introduced the CLLD Programme in 2023/24. The Greater Renfrewshire and Inverclyde (GRI) programme covers the rural areas of Renfrewshire, East Renfrewshire and Inverclyde, supporting community groups and organisations to deliver projects that provide local benefit and tackle challenges identified in the GRI Local Action Group Community Led Vision (CLV). 3.2 A Local Action Group (LAG) comprising representatives from community council/groups, third sector, businesses, residents, the three local authorities and wider stakeholders develops the CLV actions and takes any funding decisions. 3.3 Roles and responsibilities are: • Scottish Government (Scottish Rural Network) are the managing authority and paying agency for the programme. • Renfrewshire Council act as lead partner and accountable body. • Renfrewshire, East Renfrewshire and Inverclyde Councils are represented on the Local Action Group. ___________________________________________________________________ 4. CLLD Delivery 2024 / 25 4.1 Scottish Government confirmed an initial tranche of funding of up to £150,347.90 to GRI LAG to deliver CLLD programme requirements to 31 March 2025. This comprised up to £68,550.61(capital) and £81,797.28 (revenue). 4.2 GRI LAG decided to utilise the allocated funding through delivery of a revenue grants scheme with funding of between £5,000 - £10,000 available for successful applicants. A capital grants scheme is also available with funding of between £10,000 - £25,000 available for successful applicants. 4.3 Allocation of funds was agreed through a competitive application process. Eligibility to bid was open to any community led or business project which advances LAG and Scottish Government priorities and supports communities in the designated LAG areas. 4.4 Following a rigorous application process the LAG agreed to award funding to 8 local organisations. This comprised 6 awards for revenue funding totalling £33,188 and 4 awards for capital funding totalling £55,352. Two projects funded consisted of split capital and revenue budgets. 4.5 A full list of awards is noted at Appendix 1 to this report ___________________________________________________________________ Page 10 of 38
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5. Trance 2 Funding Award 5.1 Scottish Government have now offered additional Tranche 2 funding of £93,247.87 to the GRI area to enhance delivery of the CLLD programme for 2024/25. This further award can only be utilised for revenue purposes. 5.2 This raises total funding for CLLD for Greater Renfrewshire for 24/25 to £243,595.76 5.3 LAG members are reviewing, with the support of officers, the options for how to best utilise this additional funding. ___________________________________________________________________ 6. Future Reporting 6.1 It is proposed that a further update report(s) will be provided to Policy Board at a future date. _________________________________________________________________ Implications of the Report 1. Financial – No additional finance is sought. Additional funding of £93,247.87 has been allocated by Scottish Government for the 2024/25 period. 2. HR & Organisational Development – 2 posts within Economic Development (amount to 0.6 FTE equivalent) are financially supported until end March 2025 through an eligible allowance from tranche 1 CLLD Funds. 3. Community/Council Planning – Partnership working is essential to the success of the CLLD Programme. Economic Development colleagues from East Renfrewshire and Inverclyde Councils and from the Renfrewshire LEP will be significantly involved in the planning and delivery of programme requirements. 4. Legal – None. 5. Property/Assets – None. 6. Information Technology – None. 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety – None. 9. Procurement – None 10. Risk – None. Page 11 of 38
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11. Privacy Impact - None. 12. Climate Risk – None 13. Children’s Rights - None 14. COSLA Policy Position – Not Applicable. ___________________________________________________________________ List of Background Papers 23 August 2023– Economy and Regeneration Policy Board; GRI CLLD Update Report 27 August 2024 - – Economy and Regeneration Policy Board; GRI CLLD Update Report ___________________________________________________________________ Author: Michael Moran, Assistant Economic Development Manager Email: michael.moran@renfrewshire.gov.uk The foregoing background papers will be retained within Chief Executive’s Service For inspection by the public for the prescribed period of four years from the date of the meeting. The contact officer within the service is Michael Moran, Assistant Economic Development Manager – michael.moran@renfrewshire.gov.uk Page 12 of 38
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Appendix 1 – Projects supported and grant allocations 2024/25 Revenue projects These were available for projects requiring LAG funding between £5,000 - £10,000. Project Description LAG funding The Folks Music Project - Winter Warmers 18 weekly Winter Warmer events to be held at The Bank in Neilston on Sundays between 3pm-5pm. Events will consist of: traditional music 'jam sessions' with local musicians. The aim is to isolation and loneliness. £4,075 Financial Fitness - Eradicating Child Poverty Delivering a targeted financial advice service for families in rural Inverclyde aimed at reducing child poverty. £7,564 Inverkip Hub - Community Lunches 11 community lunch events from October 2024 to February 2025 that target Inverkip and Wemyss Bay residents, to reduce isolation and loneliness. £7,000 Johnstone & Area Community Transport CIC - Kilbarchan Community Bus Recruit an additional bus driver to improve the service delivery for Kilbarchan residents and residents from surrounding rural areas. £10,000 Friends of Howwood Park – Share Shed To support the creation of a lending service for single or limited use items for residents of Howwood to hire. Items such as wallpaper strippers, hedge trimmers, electric drills etc. £2,254 Ardgowan Thistle Football Club – Project Thistle The Project will provide Ardgowan Thistle the ability to gain the equipment required to safely and effectively run a community led football club, whilst seeking to increase its member participation. £2,295 Capital projects These were available for capital projects requiring LAG funding between £10,000 and £25,000. Project Description LAG funding Lapwing Lodge – Phase 1 East & West Corridors To help reduce heating costs this project will support the installation of lower ceilings in the corridors of both wings with insulated panels and associated electrical work. £15,000 32nd Greenock Scouts – Activity Centre For All To support the conversion of a second hall within a partly renovated building, for groups to meet and take part in activity to complement our indoor climbing wall and outdoor archery area. £25,000 Page 13 of 38
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Ardgowan Thistle Football Club – Project Thistle The Project will provide Ardgowan Thistle the ability to gain the equipment required to safely and effectively run a community led football club, whilst seeking to increase its member participation. £11,661 Friends of Howwood Park – Share Shed To support the creation of a lending service for single or limited use items for residents of Howwood to hire. Items such as wallpaper strippers, hedge trimmers, electric drills etc. £3,691.00 Page 14 of 38
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___________________________________________________________________ To: Economy and Regeneration Policy Board On: 21 January 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Renfrewshire Economic Profile (January 2025) ___________________________________________________________________ 1. Summary 1.1 This report contains the tenth edition of the Renfrewshire Economic Profile. These updates allow members to track changes in the local economy through a set of key statistical indicators. The last update on the Economic Profile was brought to the board in January 2024. ___________________________________________________________________ 2. Recommendation 2.1 It is recommended that the Board: (i) Notes the content of the January 2025 Renfrewshire Economic Profile Update. ___________________________________________________________________ 3. Background 3.1 The purpose of the economic profile update is to describe and track local demographics and economic indicators for Renfrewshire on an annual basis. The data and analysis presented provides a context and a baseline to assess how well the Renfrewshire economy has performed over time. 3.2 In terms of the profile, as with previous versions of this reports, officers have selected Scotland and the Glasgow City Region (GCR1) as the most 1 GCR is made up of 8 member authorities: East Dunbartonshire, East Renfrewshire, Glasgow City, Inverclyde, North Lanarkshire, Renfrewshire, South Lanarkshire and West Dunbartonshire. Item 3 EAR210125 Page 15 of 38
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appropriate comparators. The national average is a commonly used guide by most local authorities in terms of relative performance. 3.3 Data used which forms the basis of the update is taken from a variety of sources including the Office for National Statistics (ONS), National Records of Scotland (NRS) and the Scottish Government. Officers also use statistical information collated by the Glasgow City Region Intelligence Hub. ___________________________________________________________________ 4. Key issues arising from the Renfrewshire Economic Profile. 4.1 Renfrewshire’s population continues to grow steadily, a trend expected to continue. This growth is driven by net migration into the area, as the rate of natural change (births minus deaths) remains negative. Renfrewshire has the third-highest net migration rate in the Glasgow City Region (GCR), with inflows into its towns and villages accounting for the population increase. 4.2 Since the last update, Renfrewshire’s overall employment rate has decreased slightly (600 people), accompanied by an increase in economic inactivity. This has primarily been caused by a doubling of those early retired (from 3,200 to 7,200 in the last year) thereby impacting both employment and economic activity rates. Encouragingly, Renfrewshire’s economic inactivity due to long term sickness has dropped substantially by 2,600 people (around 25% on the previous figures), one of the highest reductions in Scotland. Reducing this figure has been a key concern for the council and the Local Employability Partnership. 4.3 The average weekly income of Renfrewshire residents has increased again since the last reporting period. However, the average wage for those working in Renfrewshire is the second-lowest in the City Region. This highlights a disparity between the earnings of residents and those employed within the local authority. The analysis suggests that a number of higher-earning residents are likely to work outside Renfrewshire. 4.4 Key employment sectors in Renfrewshire remain focused on health and social work, retail, manufacturing, logistics, and business administration. Unsurprisingly, many of these sectors contribute significantly to Renfrewshire’s Gross Value Added (GVA). Overall, Renfrewshire’s GVA increased between 2019 and 2022, ranking as the fourth highest in the City Region. Most of the area’s economic output is concentrated around major employment hubs in Paisley, Renfrew, and Glasgow Airport, including Inchinnan Business Park, Hillington, Westway and Braehead. 4.5 Sustainable tourism continues to grow in importance in Renfrewshire’s economy with the number employed in the sector increasing since the last reporting period. 4.6 Town centre vacancy rates have remained broadly similar to 2023, with marginal decreases in the centres of Johnstone and Renfrew. It is worth noting that Paisley's vacancy rate appears inflated due to the presence of the Paisley Centre. The Centre’s owners are currently exploring potential redevelopment options, including new residential and leisure uses. As a Page 16 of 38
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result, the Centre is not reletting units, which artificially inflates the overall town centre vacancy rate. Excluding the Paisley Centre, the vacancy rate for Paisley drops from 21% to 15%. 4.7 Officers have been investigating ways to reduce vacancy rates. This includes significant capital investment in Council-owned commercial properties, such as the parade at Houstoun Court, where a number of units are now back in use. In addition, officers launched the Town Centre Premises Grant scheme in 2024 to support local businesses in occupying empty commercial premises. Efforts will continue in 2025 to increase uptake of the scheme. 4.8 Despite a national decrease, Renfrewshire reported an increase in house building completions, with Renfrewshire’s rate being the highest in the City Region for this period. 4.9 Renfrewshire has the highest proportion of households with fibre broadband availability in the GCR. 4.10 The amount of vacant and derelict land in Renfrewshire has remained relatively unchanged since the previous reporting period. Conclusion 4.11 As with previous updates, Renfrewshire’s economy continues to perform well compared to regional and national averages across several key performance indicators, including GVA, qualifications, employment, and earnings. However, a key area for improvement is the creation of more high-value, highly paid jobs in the area. The continuing development of the Advanced Manufacturing Innovation District Scotland (AMIDS) could play a pivotal role in achieving this goal. AMIDS is set to become a cutting-edge hub for industry and innovation, offering significant opportunities in STEM and technology fields. The OMICE innovation centre is set to commence construction early in 2025. 4.12 The full economic profile for Renfrewshire is included in Appendix 1 of this report. ____________________________________________________________ Implications of the Report 1. Financial – No additional finance is sought. All funding is accounted for within existing Council budgets. 2. HR & Organisational Development – None 3. Community/Council Planning – • Empowering our Communities – the new Economic Profile will enable communities to have a clearer understanding of the relative performance of the Renfrewshire economy. • Jobs and the Economy - the new Economic Profile will present a clearer picture of the relative performance of the Renfrewshire economy. 4. Legal – None 5. Property/Assets – None 6. Information Technology – None. Page 17 of 38
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7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety – None 9. Procurement – None 10. Risk – None 11. Privacy Impact - None. 12. Climate Risk – None 13. Children’s Rights - None 14. Cosla Policy Position - None ___________________________________________________________________ Author: Euan Shearer; Regeneration and Place Manager Email: euan.shearer@renfrewshire.gov.uk Page 18 of 38
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Appendix 1 Renfrewshire Economic Statistics (Tenth Edition: January 2025) 1. Population Renfrewshire Scotland Glasgow City Region Population 2023 186,540 Increase of 7% from 2010. 5,490,100 Increase of 4% from 2010. 1,865,590 Increase of 5% from 2010. Births (2023) 1,663 Decrease of 17% from 1,995 in 2010. 45,935 Decrease of 22% from 58,791 in 2010. 16,787 Decrease of 18% from 20,538 in 2010. Deaths (2023) 2,195 Increase of 15% from 1,910 in 2010. 63,445 Increase of 18% from 53,967 in 2010. 21,274 Increase of 13% from 18,791 in 2010. Male Life Expectancy 2021- 2023 75.5 Increase of 5% from 71.9 in 2001-03. 76.6 Increase of 4% from 73.5 in 2001-03. . Life expectancy in Renfrewshire and Scotland increased for both males and females when comparing figures from 2001-03 and 2021- 23. Female Life Expectancy 2021 - 2023 80.6 Increase of 3% from 78.1 in 2001-03. 80.8 Increase of 2% from 78.9 in 2001-03. 2,750 3rd highest level of net migration in the GCR. Increase of 1,520 since 2020-21. 61,600 Significant increase of 33,800 people from 2020-21. 22,320 Significant increase of 15,820 people from 2020/21. Page 19 of 38
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2. Employment Renfrewshire Scotland Glasgow City Region Economic Inactivity Rate - aged 16-64 (Jul 2023-Jun 2024) 24.6% 28,000 people Rate has increased 1.3% from the previous year, an increase of 1,900 people. Key indicators show an additional 4,000 people (early) retired and 2,600 less people now long term sick. 22.7% Rate has increased 0.1% from the previous reporting period. 24.2% Renfrewshire has the 3rd lowest inactivity rate in the GCR Glasgow City has the highest inactivity rate at 28.1% and East Renfrewshire has the lowest at 17.9%. Employment rate - aged 16-64 (Jul 2023-Jun 2024) 73.8% 87,400 people Employment rate has decreased by 1.7% in the last year with 600 less people in work. 74.5% Rate has decreased by 0.3% from the previous reporting period. 73.6% Renfrewshire has the 4th highest employment rate in the GCR. East Renfrewshire has the highest (79.7%) and Glasgow City has the lowest (68.1%). Net Migration (2022-23) % of population that is of the working age (16- 64yrs) (at 2023) 65% 1% increase since 2018 65% 1% increase since 2018 66% 2% increase since 2018 Page 20 of 38
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Renfrewshire Scotland Glasgow City Region Claimant Count (Nov 2024) 3.0% 3,520 people The percentage remains the same at 3% from a year ago (Nov 23) with an decrease of 75 people claiming benefits. 3.1% Marginal increase of 0.1% compared to November 2023 figure. 3.1% Renfrewshire has the 5th lowest proportion in the GCR. Glasgow City has the highest proportion (5.1%) whereas East Renfrewshire has the lowest (1.7%). Occupations (Workplaces in Renfrewshire; at 2023) Renfrewshire has above average employment in: • Manufacturing (c.9,0002) • Retail (c.9,000) • Business administration (c.9,000) • Transport and Storage (c.7,000) Scotland is closer to Renfrewshire in terms of the proportion for construction and health but is lower in other sectors, such as manufacturing and transport and storage. Renfrewshire has higher proportions of employment than the GCR in: • Manufacturing • Transportation and Storage; and • Business administration Resident-based Weekly Earnings (2024) Median weekly earnings for full-time employees living in Renfrewshire are £745, an increase of around £30 per week from 2023. Median weekly earnings for full-time employees living in Scotland are £740. Renfrewshire’s resident based weekly earnings are slightly higher than the GCR average of £739. Renfrewshire is 4th highest in the Region behind East Dunbartonshire and East Renfrewshire. Workplace-based Weekly Earnings (2024) Median weekly earning for full time employees working in Renfrewshire are £659 a slight increase of £13 from 2023 figures. Median weekly earnings for workplace-based earnings in Scotland are £740. Renfrewshire workplace-based earnings is 2nd lowest the Region behind East Dunbartonshire. The highest earnings in the Region is Glasgow City (£757). 2 NB the publicly available data from BRES is a rounded figure. Page 21 of 38
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Renfrewshire Scotland Glasgow City Region Employment in low pay sectors (%) 2023 34.5% Slight decrease from 35.7% in 2022. 28.8% Slight decrease of 0.2% from 2022. 30.0% Renfrewshire has the highest rate in the GCR. North Lanarkshire has the lowest rate at 26.9% Qualifications NVQ4 and above % of pop 16-64yrs (2023) 62.9% (67,300) 8.1% increase from 2022. 55.1% 0.9% increase from 2022. Renfrewshire has the 3rd highest rate of qualification at this level in the GCR with East Renfrewshire the highest (70.1%) and West Dunbartonshire the lowest on (44.1%). No Qualifications % of pop 16-64yrs (2023) 7.3% (7,800) 2.1% increase from 2022. 8.2% 0.2% increase from 2022. 10.7% East Renfrewshire has the lowest percentage of residents with no qualifications in the GCR. North Lanarkshire has the highest at 14.3% % of School Leavers in Positive Destinations 2022/2023 96.4 (1,867) Marginal 0.2% decrease from 96.6% in 2021/2022. 95.9% Marginal 0.2% increase from 2021/2022. 96.6% Renfrewshire has the joint 5th highest attainment level in the GCR. East Renfrewshire has the highest at 98.7% with North Lanarkshire the lowest 94.7% % of Households that are Workless 2023 17.1% (9,808) 17.4% 18.2% Page 22 of 38
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Renfrewshire Scotland Glasgow City Region Decrease of 1.5% from 2022. Decrease of 0.4% since 2022. West Dunbartonshire has the highest % in the GCR at 23.9%. South Lanarkshire has the lowest at 14.3%. 3. Business Renfrewshire Scotland Glasgow City Region Business Count (2024) 4,665 86% are micro businesses with less than 10 employees. 12% are small businesses (10 to 49). 2% have been 50 and 250 employees. Less than 1% are classed as large businesses with more than 250 employees. This figure is for VAT and/or PAYE registered enterprises 172,255 Generally, an equivalent split to that of Renfrewshire’s with around 98% of businesses being classed as either micro or small. 49,685 Renfrewshire has a higher proportion of larger sized organisations compared to areas such as East Dunbartonshire and East Renfrewshire. Business Birth Rate (per 10,000 16-64 Population) (2022) 48.1 (570) 7% decrease from 2021. 54.6 0.5% increase from 2020. 58.4 Renfrewshire had the 5th largest number of start- ups (570). Glasgow City had the most with 3,050 and Inverclyde the fewest with 195. Page 23 of 38
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Renfrewshire Scotland Glasgow City Region Business Death Rate (per 10,000 16-64 Population) (2022) 50.2 (595) No change from 2021. 56.8 No change from 2021. 55.4 Renfrewshire had the 3rd lowest Business Death Rate in the GCR, with East Renfrewshire the highest (62.7%) and West Dunbartonshire the lowest (40.5%). GVA (2022)3 Source – ONS/GCR £4.86 billion GVA grew by £365m between 2019 and 2022. £165.7 billion GVA has grown substantially nationally from £151.5 billion reported in 2021 (11.3% increase). £53.4 billion Glasgow City (£25.8 billion) accounts for the most GVA in the GCR. Renfrewshire accounts for the fourth highest amount of GVA. Inverclyde has the lowest at £1.1 billion. Town Centre Vacancy Rates (2024) Paisley – 21% (15%4) Renfrew – 13% Johnstone – 18% Erskine – 7% Braehead – 16% Linwood – 5% Vacancy rates in Paisley and Braehead have remained fairly consistent between 2023 and 2024. Whereas both Renfrew and Johnstone have 3 The latest GVA results are based on data from the Office for National Statistics (Regional gross value added (balanced) by industry: local authorities by ITL1 region), April 24. The nineth edition update used the Scottish Annual Business Statistics 2020 (SABS) data. 4 The figure in brackets excludes the Paisley Centre Page 24 of 38
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Renfrewshire Scotland Glasgow City Region reported some reductions. 4. Manufacturing Renfrewshire Scotland Glasgow City Region Number Employed in Manufacturing Sector (2023) 9,000 This figure has increased by c.1,000 workers since the 2019 figure (8,000). 176,000 The total number of jobs in Manufacturing in Scotland has increased by 5% from the 2019 figure. 57,350 Glasgow City has the highest number of manufacturing jobs in the GCR (c.20,000) and East Renfrewshire the lowest (c.600). Number Employed in Manufacturing Sector per 10,000 working age population (2023) 739 Renfrewshire has a higher rate of employment in manufacturing than the GCR and Scottish rates. 496 463 Only Renfrewshire, North Lanarkshire and South Lanarkshire have higher rates than the Scottish average rate and Renfrewshire is significantly the highest in the GCR. Manufacturing as % of total employment (2023) 10.7% Increase on the 2022 figure (9.3%). 6.8% No change from the 2022 figure. 6.2% Renfrewshire has the highest proportion of employment in manufacturing in the GCR and East Renfrewshire has the lowest (1.3%). 4.9% Renfrewshire contributes a higher proportion to Scottish Renfrewshire has the 8th highest manufacturing GVA in Scotland. 9% Glasgow City Region collectively accounts for around £4.7 billion Page 25 of 38
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Renfrewshire Scotland Glasgow City Region % of Scottish Manufacturing GVA (2022) manufacturing GVA than its overall contribution to Scottish GVA (2.9%). GVA in manufacturing to the Scottish economy. Manufacturing as a % of GVA (2022) 17.1% Among LAs in Scotland, Renfrewshire has the 7th highest proportion of manufacturing GVA as a percentage of its overall GVA. 10.2% Angus has the highest proportion in Scotland of manufacturing GVA as a percentage of its overall GVA, at 33.7%. East Renfrewshire has the lowest at 2.1%. 16.88% West Dunbartonshire has the highest proportion rate in the GCR at 25.2%. 5. Tourism Renfrewshire Scotland Glasgow City Region Sustainable employment in tourism (at 2023) 7,000 Increase of 1,000 employees on the 2022 figure. 245,000 Increase of 16,000 on the figure of 2022. 70,750 This accounts for 28.9% of Scottish sustainable tourism employment. Renfrewshire has the joint 3rd highest level of sustainable tourism employment in the Region. Glasgow has the largest with 36,000 and East Renfrewshire the smallest with 2,250. Direct expenditure (visitors, 2023) £183.50m This is a reduction of 1.9% on the 2022 figure of £187.11m. n/a5 n/a 5 STEAM is commissioned at a local authority level and therefore does not provide a Scotland or city-region wide figure Page 26 of 38
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Visitors to Events (2024) 22,0626 Visitors from outwith Renfrewshire based on 4 events in 2024 (Paisley Food and Drink Festival, Renfrew Pipe Bands, SMA' Shot Day and Paisley Halloween Festival). - - All Visits to Attractions (2023) 1.06m An increase of 2.5% from 2022 figures. 48.7m A 17% increase in visitors to attractions throughout Scotland from 2022 10.9m A 14% increase in visitors to attractions throughout the City Region from 2022 6. Housing Renfrewshire Scotland Glasgow City Region Supply of New Housing – Rate per 10,000 Population (2023) 61.7 There was an increase in house building completions in Renfrewshire between 2022 and 2023 from 832 to 1137. 38.1 There was a decrease in house building nationally between 2022 and 2023 from 23,692 to 20,917. 35.0 Renfrewshire had the highest rate of new house building per 10,000 population in the GCR. East Dunbartonshire the lowest (16.0). Supply of New Housing – Rate per 44.7 Renfrewshire’s rate over the last five years has increased marginally (0.2%) from the previous average. 38.0 33.4 Renfrewshire has the second highest 5-year rate of new house building in the Glasgow City Region. South Lanarkshire has the highest (47.6) and East 6 These are unique visitors to Renfrewshire and not total attendees Page 27 of 38
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Renfrewshire Scotland Glasgow City Region 10,000 Population (average 2019 to 2023) Dunbartonshire the lowest (19.2). % premises with available Fibre broadband connection (2023) 80.6% 7% increase from January 2022. 52.1% 17% increase from January 2022 52.8% Renfrewshire has the highest rate in the GCR. West Dunbartonshire the lowest 8.6%. Total Vacant & Derelict Land (Ha) (2023) 245ha Renfrewshire has experienced reduction in VDL between 2017 and 2023 (approx. 47ha). 9,111 ha Overall VDL has fallen by almost 3,000ha since 2017. 3,085 ha This is 34% of the Scottish total. Renfrewshire has the fourth highest total area of vacant and derelict land in the GCR. North Lanarkshire has the highest with 1,284 ha and East Renfrewshire the lowest with 43 ha. Vacant and Derelict Land as % of all Scottish V&D land (2023) 2.7% 100% 33.9% Renfrewshire has the 4th highest % of Scottish V&D land in the GCR with North Lanarkshire the highest (14.9%) and East Renfrewshire the lowest (0.5%). Total Vacant & Derelict Land (Ha) in bottom 15% SIMD areas (2023) 48.9 ha 5.7% increase from 2020. 957.5 ha 16.8% decrease from 2020. 267.5 ha Renfrewshire has the 4th highest amount in the GCR. Glasgow City has the highest amount at 497.3 ha. East Page 28 of 38
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Renfrewshire Scotland Glasgow City Region Dunbartonshire have the lowest with 0.0. Breakdown of Tenure Type (2022) Total Dwellings: 90,028 Owner Occupied – 64.5% Private vacant/second homes – 2% Private Rented – 10.4% Socially Rented – 24% Total Dwellings: 2,687,186 Owner Occupied – 60.6% Private vacant/second homes – 4% Private Rented – 12.7% Socially Rented – 23% Total Dwellings: 899,685 Owner Occupied – 59% Private vacant/second homes – 2% Private Rented – 11% Socially Rented – 27% Effective Housing Land Supply % Brownfield (2024) 88% This figure is from Renfrewshire's Housing Land Audit 2024. It represents the % of the land supply that will produce units in the next 7 years that is classed as brownfield. Glossary: Claimant Count: The Claimant Count is a measure of the number of people claiming benefits principally for the reason of being unemployed, based on administrative data from the benefits system. Employment in low pay sectors: These include employment in the retail and hospitality sectors. Gross Value Added (GVA): Gross Value Added measures the value generated in the production of goods and services. It is one measure of overall economic performance. School Leavers in Positive Destinations: Includes higher education, further education, training, employment, voluntary work, Personal Skills Development and (Activity Agreements. Page 29 of 38
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Sustainable Tourism: Sustainable Tourism sector was identified in Scotland’s Economic Strategy as one of the growth sectors in which Scotland can build on existing comparative advantage and increase productivity and growth. Scotland’s tourism sector is a diverse industry, with a range of sub-sectors such as hotels, camping sites and other provision of short stay accommodation, restaurants, bars, travel agents, museums and other recreational and cultural activities. Vacant and Derelict Land: Vacant land is defined as land within a settlement that has been previously developed, without physical constraint, and which the planning authority has indicated is available for redevelopment. Derelict land is defined as land 'damaged by development, so that it is incapable of development for beneficial use without some remedial works'. Page 30 of 38
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- 1 - ___________________________________________________________________ To: Economy and Regeneration Policy Board On: 21 January 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Glasgow City Region Investment Zone – Update ___________________________________________________________________ 1. Summary 1.1 The purpose of this report is to inform the Economy and Regeneration Board on the progress of the Glasgow City Region Investment Zone (GCR IZ) and Renfrewshire’s participation in it. ___________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board: (i) Notes the timescales of the development of GCR Investment Zone proposal for submission to UK/Scottish Governments and confirm that updates and required approvals will be reported to Board at regular intervals as appropriate. _________________________________________________________ 3. Background 3.1 In June 2023, following an agreement between the UK Government and Scottish Government, it was announced that both the Glasgow City Region (GCR) and the North-East of Scotland had been awarded Investment Zone (IZ) status, the first such zones in Scotland. This commitment has been backed by funding commitments, which can be used flexibly for capital and revenue investment and tax incentives for prospective investing companies. 3.2 It was confirmed in the Autumn Budget of 2024 that £160m has been allocated to the Glasgow City Region Investment Zone (GCR IZ). This funding will be distributed over 10 years and aims to attract private sector investment, boost innovation, drive economic growth, reduce inequalities, and create high- value jobs. Item 4 EAR210125 Page 31 of 38
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- 2 - _________________________________________________________ 4. Progress to date 4.1 Guidance from the Government’s states that the IZ programme must align with the UK Levelling Up Strategy and Scotland’s National Economic Transformation Strategy. A new governance board will oversee the programme and report to the Glasgow City Region Cabinet. 4.2 The following are the agreed key objectives of the GCR IZ: i. Build on strengths of the Region’s current and emerging cluster specialisms; ii. Grow new and existing R&D focused firms which are geared to take advantage of local academic expertise; iii. Create a significant number of mid to high skilled ‘good’ jobs; iv. Generate short and longer-term private sector investment in the Region’s cluster specialisms – both through existing firms and wider supply chain development; v. Align with existing investment within the Region e.g. City Deal, Innovation Districts / Innovation Accelerator, UK Shared Prosperity Fund; vi. Maximise the impacts through enhancing connections to existing clusters; vii. Facilitate the development / regeneration of under-developed land within the Region; and viii. Extends the benefit to the whole region including developing options for a IZ skills programme for local residents and a regional investment fund. 4.3 The following key phases of the IZ development have been progressed to date: Investment Zone Projects • Phase 1: Expression of Interest (September–November 2023): Objectives and parameters for the IZ were scoped, focusing on sectors like advanced manufacturing, life sciences, and digital technologies. This process was designed to elicit Expressions of Interest (EOI) from potential private/public sector and academic partners. Over 90 Expressions of Interest (EOIs) were received, targeting skills development, private investment, and land regeneration. • Phase 2: Open Call (Jan–June 2024): Detailed project applications were sought from eligible applicants, with a focus on three primary sectors: o Life Sciences, o Advanced Manufacturing and Precision Engineering, and o Digital and Enabling Technologies and Services. Page 32 of 38
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- 3 - 4.4 In total, 41 bids were submitted, with total project costs of £1.88bn of which the Investment Zone grant ask was £0.64bn and the match/private sector investment was £1.24bn. 4.5 Submissions were assessed and evaluated against several criteria: • Quantitative scoring undertaken by the GCR PMO, with a minimum quality threshold in place; • Qualitative feedback from ‘sectoral specialists’ in both InnovateUK and Scottish Enterprise; • For bids that meet the minimum quality threshold, an analysis was undertaken by the GCR Intelligence Hub to consider the wider sectoral and economic impacts of bids within each sector; • Overall review by the Strategic Assessment Plan (SAP), comprising of a group of selected individuals with an investment background. 4.6 In addition, the SAP applied several basic principles when coming to their decisions: • Projects should demonstrate additionality; • Investment will provide new capability; • Projects will leverage addition private sector investment; • Activity will demonstrably support wider cluster development; • Individual projects will align within an overall programme; • Individual project risk will be spread across the programme; and • Opportunity to ‘over-programme’ 4.7 Following the initial meeting of the SAP (20 May 2024) the UK Government called the General Election two days subsequently and the pre-election period commenced. It was confirmed to the GCR Project Management Office (PMO) that the GCR IZ process could proceed. While the GCR PMO progressed the development of the GCR IZ Gateway 1 and 2, the evaluation and selection process was paused. 4.8 Over the summer of 2024 the SAP sought clarification from a number of bidders on the detail of their submissions and in October / November 2024 presentation sessions were held with some bidders to understand had there been any substantive changes to their bids, since submission in March 2024. • Phase 3: Outcome of the GCR IZ Assessment Process (August - December 2024): The GCR IZ has identified its focus area as Advanced Manufacturing & Precision Engineering and its geography as the Glasgow City Region. A Gateway 2 submission is awaiting formal approval from UK and Scottish governments. 4.9 The SAP has evaluated project attributes and their contributions to sector growth, resulting in a short-list of preferred bidders for the next due diligence stage, pending GCR Cabinet approval. Page 33 of 38
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- 4 - 4.10 The IZ programme will target strategic investments in critical technologies, leveraging existing regional strengths in the semiconductors, space, life sciences, and maritime business sectors to develop a world-class innovation ecosystem. Investment Zone Tax site 4.11 It has been confirmed that there is only one proposed tax site proposed within the GCR Investment Zone, which will be located in Renfrewshire (further details below). 4.12 The tax site aims to drive growth by leveraging existing economic assets like AMIDS, NMIS, MMIC, and Glasgow Airport to encourage other companies to locate in Renfrewshire. Focused on strategic land development, it addresses commercial challenges, including competition with the two identified Scottish Green Freeports, through collaboration. 4.13 Tax incentives will be finalised during due diligence and further discussions with UK and Scottish Governments with input from key partners. The site will be developed in partnership between Renfrewshire Council and Glasgow Airport as landowners, accounting for the existing AMIDS JV structure approved by Board. 4.14 In addition, the GCR IZ will include an investment fund which aims to drive growth in the Advanced Manufacturing sector by supporting key inward investment opportunities that complement the existing business base. This includes providing dedicated ringfenced funding for business support and skills development. Initiatives include: o Tailored business support: assisting supply chain companies in innovating, scaling, and commercialising technologies. o Skills development: training and upskilling workers to meet the demands of high-growth sectors like semiconductors, space, and maritime. _________________________________________________________ 5 Renfrewshire Council’s IZ bid 5.1 Renfrewshire Council submitted an expression of interest (EOI) and a detailed application to receive a proportion of the GCR Investment Zone (GCR IZ) funding. The Council’s bid focused on establishing AMIDS (Advanced Manufacturing Innovation District Scotland) as Scotland's premier destination for advanced manufacturing innovation. The proposal aims to leverage existing infrastructure, including world-class centres like the National Manufacturing Institute Scotland (NMIS) and the CPI Medicines Manufacturing Innovation Centre (CPI/MMIC), while scaling up operations to attract further investment and drive economic growth. The overall objective is to transform AMIDS into a hub for manufacturing excellence. 5.2 The IZ application bid was divided into two components: Page 34 of 38
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- 5 - • Tax Site: The creation of a tax incentive zone encompassing the Netherton Campus site at AMIDS, along with Westway and Glasgow Airport. • Capital Investment: A request for £4 million to construct a 32,000 sqft. facility (“Tech Terrace”) designed for advanced manufacturing SMEs, with the potential for an additional £12 million earmarked to facilitate further remedial works, thereby unlocking further investment opportunities and to further enhance AMIDS' appeal. 5.3 The Council’s bid is aligned with principles such as Fair Work First and adherence to devolved regulations on employment and climate change. The investment within the IZ aims to deliver broader social and employment benefits. 5.4 Following the Council’s bid submission in March 2024, additional clarification was provided by the GCR. They confirmed their intention to propose Renfrewshire as the location for the only tax site (Figure 1). Initially the site was to include land at Netherton Campus–AMIDS, Glasgow Airport, and Westway (a total area of 194 hectares) which could be eligible for up to £30 million in tax incentives over 10 years. 5.5 However, after the GCR has submitted this proposal as part of a gateway review, expressing a preference for the IZ to include this tax site, confirmation of its acceptance by the Government is still pending. The Government raised concerns about the eligibility of some areas proposed within the site. In particular, the Government felt that sites such as Westway do not meet its underdeveloped criteria, which includes having empty land, brownfield land, or underutilised land with some occupied or vacant premises. As such Westway has now been removed from the tax site by the GCR and have re- submitted its Gateway 2 review. A map of the proposed site is shown below (see Figure 1): Figure 1: Proposed tax site map Page 35 of 38
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- 6 - 5.6 Figure 1 shows the ownership status of each of the land parcels. The Renfrewshire Investment Zones contain two majority landowners: • Renfrewshire Council: owners of the Netherton Campus site (1) which includes NMIS and the MMIC. • AviAlliance: owners of Glasgow Airport and associated land (areas 2, 3 and 4). 5.7 If the tax site is approved by UK Government, businesses within the tax site will be eligible for tax relief. The tax site will offer specific fiscal incentives designed to encourage business growth and attract private sector investment. These incentives typically aim to: • Stimulate economic activity. • Support innovation. • Create employment opportunities. 5.8 Potential tax relief incentives in such sites include: • Non-Domestic Rates: 100% relief from non-domestic rates for up to 5 years on newly occupied business premises, and certain existing businesses where they expand in Investment Zone tax sites. • Enhanced Capital Allowance: 100% first year allowance for companies’ qualifying expenditure on plant and machinery assets for use in tax sites. • Enhanced Structures and Buildings Allowance: accelerated relief to allow businesses to reduce their taxable profits by 10% of the cost of qualifying non- residential investment per year, relieving 100% of their cost of structures and buildings over 10 years. • Employer National Insurance Contributions relief: zero-rate Employer NICs on salaries of any new employee working in the tax site for at least 60% of their time, on earnings up to £25,000 per year, with Employer NICs being charged at the usual rate above this level. This relief can be applied for 36 months per employee. 5.9 In addition to the incentives, there is an option for the tax site to include a Non-Domestic Rates Retention (NDRR) site. Within these sites, IZs will benefit from 100% retention of non-domestic rates growth above an agreed baseline for 25 years. 5.10 Government guidance specifies that only rates collected from new businesses moving into the tax site will be eligible for retention. The guidance further states: "It is intended that the local authority or local authorities in which the Investment Zone tax site(s) are located will retain the non-domestic rates growth for that area above an agreed baseline, taking into account a displacement effect." 5.11 The GCR has expressed a preference for using the retained business rates to support projects that enhance the advanced manufacturing sector across the entire city region. Page 36 of 38
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- 7 - 5.12 Further clarification is urgently needed from the UK and Scottish Governments to establish a collective view on how NDRR funds should be collected and redistributed. Officers will advocate for reinvesting any retained rates in Renfrewshire, with a particular focus on the growth, further development and enhancement of the AMIDS offer to attract and retain businesses. Furthermore, any reinvestment should be guided by a robust investment plan that outlines key investment principles. Officers will provide updates to the Board once further clarification on the operation of the NDRR is received. _________________________________________________________ 6 Next steps 6.1 The GCR is hoping to receive confirmation from the governments that they can proceed with further Gateway reviews. If approved, the GCR plans to complete Gateways 3 and 4 together. 6.2 Gateway 3 focuses on providing information about the proposed governance structure, which the GCR is leading. Gateway 4 involves addressing questions specifically related to the tax site and the potential NDRR site. This includes modelling the potential economic benefits that will be unlocked through tax incentives and retention. 6.3 Approved bidders will undergo detailed due diligence, assessing interventions, outputs, outcomes, and budgets over the IZ's 10-year span. The GCR Intelligence Hub will perform economic analysis to ensure consistent impact measurement, supporting the Gateway 4 submission preparation. 6.4 Officers have started working on completing this return. Consultancy assistance will be required to provide expertise to Renfrewshire Council on tax-related matters. The GCR has confirmed that they will allocate the budget for these services. It is expected the procurement of this advisor will take place in January 2025. 6.5 Further discussions with representatives of both governments will be necessary to better understand the fiscal tax incentives, how companies can apply for them, and how NDRR retention works locally, as well as any stipulations from HM Treasury regarding governance and operations. 6.6 Officers have also commenced discussions with representatives from other local authorities that have gone through the Freeport / Green Freeport and Investment Zone process, who may be able to provide valuable insights and lessons on how the process works in practice. 6.7 Officers will continue to provide updates and submit requests for approvals to future boards. 6.8 Overall, it is hoped that the IZ will serve as a catalyst for growth, stimulating economic activity and reinvestment in Renfrewshire, with approximately £100 million of IZ funding being invested in the area. ___________________________________________________________________ Page 37 of 38
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- 8 - Implications of the Report 1. Financial – Significant as the Council will potentially have access to millions of pounds of IZ funding. 2. HR & Organisational Development - None 3. Community Planning – • Our Renfrewshire is thriving / Reshaping our place, our economy and our future – • The project supports significant investment in Renfrewshire, which will support job creation, business development and GVA and overall economic growth. 4. Legal - None 5. Property/Assets – None 6. Information Technology - None 7. Equality & Human Rights - The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety - None 9. Procurement - None 10. Risk – Additional costs/constraints are found at the Netherton Campus site during additional construction phases 11. Privacy Impact – None 12. Climate Risk – None 13. Children’s Rights - None 14. Cosla Policy Position - None ________________________________________________________________ List of Background Papers None ___________________________________________________________________ Author: Euan Shearer, Regeneration and Place Manager Page 38 of 38