The Economy Overview and Scrutiny Panel met on Monday 28 September 2026 to discuss the annual update from the Worcestershire Local Enterprise Partnership (WLEP) and to review quarterly performance and budget monitoring. The WLEP reported exceeding economic targets but highlighted concerns about future funding and the risk of Worcestershire being left behind due to a lack of devolution. The panel also reviewed the council's financial position, noting an £8 million overspend in the first quarter, largely driven by pressures in adult and children's social care.

Annual Update from Worcestershire Local Enterprise Partnership (WLEP)

The Worcestershire Local Enterprise Partnership (WLEP) presented its annual update, highlighting that the county has exceeded key economic targets set for 2025. Since 2015, Worcestershire has created approximately 27,000 jobs, increased Gross Value Added (GVA) by £4.9 billion annually, and delivered around 23,500 homes, surpassing original targets. Notable successes were reported in innovation, with the continued success of BetaDen, Worcestershire's technology accelerator, and the launch of the Catalyse Angel Network, which has facilitated over £500,000 in investment for early-stage businesses. In skills and workforce development, over 4,000 young people attended the Skills Expo, and the Careers Hub has strengthened links between employers and education providers. The Growth Hub supported nearly 1,400 businesses, generating over 3,000 referrals and directly assisting over 800 businesses, creating 86 jobs.

Despite these achievements, the WLEP outlined four strategic issues for the future. Firstly, the current economic strategy, the Plan for Growth 2020-2040, is five years old and requires review to better reflect current priorities such as productivity, innovation, and wages. Secondly, increasing resource pressures, particularly the withdrawal of central government funding for LEPs and the ending of UK Shared Prosperity Fund allocations, have reduced flexibility and led to the scaling back of some initiatives, including elements of the BetaDen programme. Thirdly, significant strategic questions remain regarding local government reorganisation (LGR) and future devolution arrangements, with Worcestershire risking falling behind other areas that benefit from mayoral devolution settlements and enhanced economic powers. Finally, the report reaffirmed the value of the triple helix partnership model, bringing together business, government, and education, while stressing the importance of maintaining its apolitical nature despite increased political representation on the board.

Councillor Louis Stephen, Vice-Chair of the Economy Overview and Scrutiny Panel, noted the uncertainty surrounding the current situation, describing it as being stuck between a rock and a hard place. He welcomed the involvement of district councils in supporting the WLEP's programmes. Councillor Stephen highlighted the success of the Catalyse Angel Network and suggested seeking a sponsor for the layer below of seed funding. He also emphasised the need for certainty from the government to attract funding and support businesses. Councillor Dan Birch, Chair of the Audit and Governance Committee, echoed the sentiment of needing certainty and expressed gratitude for the work being done by the WLEP team despite difficult circumstances.

Councillor Louis Stephen raised a question about publicising the WLEP's work, suggesting that greater public awareness could lead to increased value and support. Gary Woodman, Assistant Director for Economy, acknowledged the challenge of marketing with limited budgets, particularly for government-funded programmes, and suggested that councillors could play a role in promoting WLEP activities through their own social media channels. Councillor Sue Eacock mentioned finding out about projects through journalists, highlighting a general lack of public awareness.

Councillor Louis Stephen also raised concerns about infrastructure, referencing a past issue at Worcester 6 where grid capacity prevented the installation of solar panels. He questioned the lack of focus on supporting infrastructure, such as water, electricity, and broadband, in the report's key priorities. Gary Woodman confirmed that the WLEP had previously been involved in infrastructure funding but that this had shifted due to changes in government policy. He noted that while businesses are investing in solar on their own premises, issues like grid connections at sites like Worcester 6 persist, and discussions are ongoing with National Grid. Councillor Stephen suggested that the issue of infrastructure investment is a national one that local MPs should address.

Councillor Sam Ammar inquired about the top three industries where the 27,000 jobs were created. Luke Willetts, Strategic Programme Manager, indicated that typically these would be in business, professional services, health, and construction. Councillor Ammar also raised concerns about the difficulty young people face in finding jobs, suggesting that international students being allowed to work and stay for extended periods might be a factor. Councillor Stephen responded by noting that when he was 16, there were very few jobs available, and that the cost for businesses to take on young people is currently high due to national insurance increases and minimum wage. He also expressed concern about the impact of AI on future employment. Gary Woodman stated that there are currently over 5,000 jobs advertised in Worcestershire, but employers struggle to find candidates with the necessary skills. He highlighted the Amazon effect, where employers expect ready-made candidates, and the lack of focus on workforce planning by many small and medium-sized enterprises (SMEs). Judy Gibbs, from the Skills Team, discussed initiatives like the Youth Guarantee and a youth jobs grant to encourage employers to take on young people.

Councillor Nik Price asked for more detail on the Worcestershire Economy Report 2026, specifically regarding commercial property constraints and shortfalls in suitable premises for businesses. Gary Woodman explained that the report, available on the WLEP website, identifies a shortage of industrial space between 2,000 and 4,000 square feet, particularly in areas like Bromsgrove due to green belt restrictions. He also noted that the quality of office space and working environments has become more important post-pandemic. Councillor Stephen echoed this, stating that industrial units are few and far between and that the value of land often incentivises housing development over industrial units. He also highlighted the unviability of developing land at Worcester 6 and Malvern Hills Science Park for commercial purposes, suggesting that housing would be more profitable.

Councillor Dave Edmonds questioned Councillor Louis Stephen about lobbying efforts directed at the government for clarity on devolution and funding. Councillor Stephen stressed the urgency of resolving these issues, comparing the situation to Birmingham's stadium development and government funding for a new stadium and train line. He called for a strategic understanding of future economic plans and funding. Councillor Sue Eacock added that letters are being sent to the government and that meetings are being held, with a reputation for pushing forward and making their voice heard. She also mentioned that councils are working together through the County Councils Network (CCN) and District Councils Network (DCN). Paul Walker, Chair of the WLEP, emphasised the need for a strategic economic plan to accompany funding bids, stating that without one, it is unlikely that government funding will be secured. He noted that the WLEP's recent attempt to secure funding through the Local Innovation Partnership Fund (LIPF) had failed, highlighting the critical need for the region to identify its key capabilities and present a clear plan.

Councillor Martin Allen raised concerns about public transport, noting that it is getting worse and that job creation is undermined if people cannot access employment locations, particularly in rural areas. He suggested considering the use of Worcestershire on-demand buses to connect Kemsley to Worcester for employment opportunities. Councillor Stephen acknowledged the point about on-demand buses and confirmed that plans are in place to extend their service to the Royal Hospital. He also noted that the issue of bus services and funding is linked to the strategic mayoral role and government funding. Gary Woodman discussed the WLEP's funding situation, explaining that multi-year agreements are in place with district councils until 2028, but that future funding is uncertain due to LGR and devolution. He mentioned efforts to bring in private sector money, citing the Catalyse Angel Network as an example. Councillor Gregson expressed satisfaction with the increased engagement of district councils with the WLEP, stating that their emphasis on economic growth, investment, and skills is key regardless of LGR. He believes LGR is a pause rather than a fading away and stressed the importance of providing a coherent plan in advance of devolution discussions.

Dave Edmonds presented the quarterly performance and budget monitoring report. He noted that the business demography and railway station usage data would be updated for the next meeting. The report indicated that Worcestershire's working-age adult employment rate was 77.75% at the end of June 2026, slightly above the England average. Claimant counts for 16-24 year olds had increased by 11.7% compared to the previous year. Gigabit broadband coverage in Worcestershire stood at 88.33%, slightly behind the UK average of 90.92%.

Sarah Jenkins presented the budget monitoring report for Quarter 1 of the 2026/27 financial year. The council was forecasting an £8 million overspend, primarily due to pressures in adult and children's social care. The corporate contingency of £12 million had already been fully utilised. Savings of £7.5 million out of a £9 million target had been achieved, with a further £1.3 million on track. The High Needs Deficit (DSG) remains a significant concern, with a forecast deficit of £40 million by March 2028, which will require substantial reserves. The capital programme has a total funding of £574 million over five years, with 69% coming from external sources. For the Economy and Infrastructure (E&I) services, there was a net underspend of £1.5 million, with significant savings achieved in home-to-school transport due to contract reviews and grant utilisation. However, potential pressures include rising fuel prices and an increase in the number of children requiring home-to-school transport.

Councillor Martin Allen asked about the source of the savings reported on page 49, specifically whether they were due to natural wastage or job losses. Sarah Jenkins provided a detailed breakdown, confirming that most savings came from consolidating services, revaluation of rates, deletion of vacant posts, and contract reviews, rather than redundancies. Councillor Allen also inquired about the zero figure for councillors' divisional funds for the next financial year and whether unspent funds could be carried forward. Councillor Stephen explained that this would be part of the budget consultation process.

The panel also discussed the work programme for future meetings, with the next meeting scheduled for 2 December 2026, which will include an update on tourism and the first round of budget scrutiny. Two further meetings in December and January are dedicated to budget scrutiny.

The meeting was noted as having a SCHEDULEDONLY informationstatus, meaning that while the agenda and reports pack were available, the transcript indicates the meeting was held and discussions took place. However, no explicit decisions were recorded as being made in the provided transcript.