One of the key issues for businesses in the region has been identified as access to finance. The Cabinet has, therefore, asked emda to convene a special meeting of its Regional Risk Finance Forum within the next few weeks. This forum brings together key organisations from finance and private investment and will work alongside the Cabinet to help unlock finance for businesses within the East Midlands.
The risk of major infrastructure projects stalling was also on the agenda, and the Cabinet agreed to set up, with some urgency, a multi-agency working group to identify opportunities and come up with solutions to the barriers operating against infrastructure spending. Infrastructure development is vital to the future, long-term growth of the region as well as being important for its immediate economic and employment benefits.
Cabinet members are also undertaking analysis into the nature of current opportunities in the job market and how unemployment might impact on different sectors of business and the community..
Phil Hope said:
"I am greatly encouraged by this second meeting and in particular by the determination to support the region through these difficult times. We know there is more to do, both to respond to short-term pressures, and also to continue to address issues such as skills that are vital to long-term growth.
"From next month when the Cabinet meets again, we have decided to focus each meeting in greater detail on a single key issue faced by the East Midlands. This will come from a number of likely areas - skills development, the temporary labour market, and highways infrastructure are just a few examples.
"We are determined to see more practical steps being taken to help build and restore the confidence needed to support people and businesses in the East Midlands."
Dr Bryan Jackson, emda’s Chairman and Deputy Chairman of the REC, said:
"A particular focus of the meeting was the need to bring forward planned infrastructure projects across the region. Whilst private sector investments are reducing because of the credit crunch, many public sector bodies still have plans in the pipeline to build things like new schools, health centres or other community facilities.
"We must do all we can to keep these developments moving to ensure a steady flow of economic activity during these challenging times. This includes unlocking financial support to enable small businesses to retain a steady cashflow. Combined, these measures will help to keep people in employment and minimise the impact of the downturn on families living and working in the East Midlands."
Following the Cabinet meeting, Phil Hope led a debate on the regional economy with more than 50 representatives from organisations ranging from banks, major employers, universities, local authorities and other public sector organisations.
This debate raised some challenging issues, but also noted that many businesses are still strong and that employment opportunities continue to be created.. For example, there are at least 1,200 new jobs on offer across the East Midlands every day.
Focussing on key sectors, groups discussed what the region should be doing to support business in the next six months, how the regional economy needs to be prepared for recovery and long-term success, and what messages should be sent to national government and the National Economic Council.
Phil Hope said:
"This was a terrific opportunity for some creative thinking about the regional response to the downturn. I came away with a wealth of ideas of things that could be done collectively and also proposals for central Government to consider such as more flexible funding, reducing the burdens of regulation and opportunities to stimulate growth."
Note to Editors:
Two new members, Ron Lynch, Chief Executive of the Institute of Directors, East Midlands region, and Roger McKenzie, TUC Midlands Regional Secretary, have joined the Regional Economic Cabinet. The remainder of the Cabinet comprises:
Chair: Phil Hope, Minister for the East Midlands
Deputy Chair: Dr Bryan Jackson, Chair, emda
Board Members: George Cowcher, Chief Executive, Derbyshire & Notts Chamber of Commerce, Tom Crompton, Regional, Director, Learning and Skills Council, Karen Foulds, Jobcentre Plus, Cath Lee, Federation of Small Business Regional Policy Manager, Jeff Moore, Chief Executive, emda, Cllr David Parsons, Chair, East Midlands Regional Assembly, Paul Southby, CBI Regional Director, Pat Zadora, Chair East Midlands Business Forum
Issued on behalf of the Regional Minister for the East Midlands
by COI News & PR East Midlands
Contact: Elizabeth Leonard, 0115-971 2782
