EXECUTIVE 5 DECEMBER 2006 SECTION 106 FUNDS AND TRAINING AND EMPLOYMENT. Report by: Councillor Peter Thompson

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1 Reference No. 1.0 SUMMARY EXECUTIVE 5 DECEMBER 2006 SECTION 106 FUNDS AND TRAINING AND EMPLOYMENT Report by: Councillor Peter Thompson The content of this paper was originally discussed by the Executive at its informal meeting on 11 th July 2006, prior to its being circulated to Area Committees for information and comment. It reports on Section 106 expenditure in respect of employment and training and makes recommendations regarding the future expenditure on employment and training. 2.0 RECOMMENDATIONS That the Executive : a) note the policy issues and employment and training initiatives reported in this paper; and b) continue to use pooled S.106 receipts to support employment and training initiatives, in particular to support the Local Area Agreement. 3.0 BACKGROUND - S.106 EXPENDITURE AND COMMITMENTS: 3.1 In July 2004, Section 106 employment & training receipts totalling 348,000, accumulated over several years, were pooled to support the Council s Public Service Agreement (PSA) and other employment initiatives. These projects are listed in appendix % of the Council s PSA target of placing 400 disadvantaged people into sustained employment 1 has been achieved. This earns the Council some 400,000 in reward grant from central government, which will support general budget expenditure this year. 4. EMPLOYMENT IN HOUNSLOW 4.1 Unemployment nationally is about one third of its level in 1995, and the number of jobs in the economy about 20% greater, with more people entering 1 Sustained employment is employment of 16 hours or more a week lasting for at least 13 weeks; and Disadvantaged people are workless people from the following groups: lone parents, those on incapacity benefits, disabled, over 50s, ethnic minorities, those with qualifications below NVQ 2 level and residents of social housing. S/development/S106/Post May 06/ 1 24/11/2006

2 the workforce than ever before. Hounslow has about 117,000 jobs, 5% more, relative to its working age population, than the London average. However there is no reason to be complacent, as job numbers have been falling since a peak in 2001 and, overall, unemployment is rising slightly. 4.2 The number of Hounslow residents in work fell from 108,000 in 2000 to 96,000 in 2005, only a little above the 1995 level. This may be because of the relatively low skills of much of Hounslow s workforce, a matter of concern, as new skill requirements are needed to fill the jobs being created in new economy industries. Self-employment and new business start-up rates are also low. 4.3 Approximately 3,400 Hounslow residents currently receive jobseekers allowance (JSA). There are about 1,000 people on other benefits who are also actively looking for work. The table in Appendix 2 compares wards with above the borough average % of JSA claimants in March and August Feltham West has experienced the largest drop in unemployment in that period. Altogether in West Area over 130 less people were signing on in August, possibly because of the opening of the new Feltham shopping centre. By contrast unemployment rose slightly in Heston Central. High unemployment still tends to be concentrated on social housing estates such as Butts Farm, Beavers, Ivybridge and Haverfield. 5.0 ISSUES: 5.1 New receipts: the Council has received relatively little in S.106 training and employment funds (approximately 80,000) since July Further income is expected, including sums from a number of large-scale development proposals. These are summarised in Appendix 1. However, the timing, size and particular conditions attached to these contributions are impossible to predict accurately. 5.2 Local Area Agreement: the Council has a number of employment and training commitments in the Local Area Agreement. Two of the LAA outcome areas, apprenticeships and job creation/retention, have already received some support from the pooled 106 receipts shown in Appendix 1. At present no funds have been specifically identified for the job-brokerage programme required to achieve the other employment outcomes in the LAA (other than those awarded by West Area Committee, detailed in section 6 below). Successful delivery of the three economic development outcomes in the LAA will bring direct benefits to residents and local businesses and could win up to 2m in reward grant. The Executive may wish to consider further supporting the programme with 106 funds. 5.3 The new Community Plan for Hounslow will include targets for employment and training, and LSP partners are keen to agree skills and employment priorities for the borough. There is good evidence of the need to raise the skills of local residents and to increase the number of them in work. Local businesses will not prosper if they suffer skills and labour shortage. S/development/S106/Post May 06/ 2 24/11/2006

3 6. COMMENTS FROM AREA COMMITTEES 6.1 The substance of this paper has been discussed by Area Committees. All endorsed the principle of pooling employment and training receipts provided there was recognition of local need that is to say that, while unemployment and low skills were concentrated in certain areas, disadvantage was found all over the borough and no-one should miss out on jobs or training just because of where they lived. There was general support expressed for the objectives of the Local Area Agreement, particularly if the reward grant would lead to more funding being directed to those in need. 6.2 West Area Committee granted from its own pool of S 106 receipts (scheme 277, separate from those listed in Appendix 1) a sum of 32,000 to Feltham Area Renewal (FAR) to support LAA work locally. 6.3 Heston & Cranford Area Committee requested that further support be given to the area, and particularly to the Cranford Enterprise Centre project. However it is unlikely that this project will go ahead as some 1.2m capital is needed to supplement London Development Agency and Learning and Skills Council funds raised to date. Discussion is being held with West Thames College to see if the business incubation component of the Cranford scheme could be incorporated into their proposed redevelopment of the De Broome Centre. 7. COMMENTS FROM CHIEF OFFICERS 6.1 Comments from the Director of Planning have been incorporated. 6.2 The Director of Finance confirms the received S106 funds detailed in Appendix 3. Where further expenditure is proposed such spend cannot proceed until relevant funds have been identified and received within the authority's bank account. Expenditure must be contained within available budgets. 6.3 This paper has been circulated to the Director of Legal Services who has made no specific comments. Contacts: Abdu Rashid Craig - Head of Economic Development & Business Support Background Papers: SDC 27 th July 2004 This report is relevant to the following wards/areas: Whole borough Tel: This report has been or is due to be considered by: All Area Committees September 2006 Executive October 2006 S/development/S106/Post May 06/ 3 24/11/2006

4 Appendix 1 Commitment of Section 106 Employment & Training Receipts since July 2004 Purpose Project Outcomes 000 S.106 Adult Education Widening Participation project Estate based training focused on Hanworrth 50.6 Community Employment Projects supporting PSA Other Employment & Training related Projects Genesis Hounslow Law Centre RETI Cranford Enterprise Centre Beavers Learning Centre Local training and outreach in Brentford Employment advice and work preparation, boroughwide Employment advice and work preparation boroughwide Feasibility study, planning application & business plan Capital contribution towards new adult education facility at Beavers school West Area Study Regeneration study 5 Projects supporting the West London Business Jobs created/ retained 50 Local Area West Thames College Construction training 20 Agreement Carillion Training Construction training TOTAL106 CONTRIBUTIONS S/development/S106/Post May 06/ 4 24/11/2006

5 Appendix 2 Wards with above average claimant count March/August 06 Ward Number of claimants % rate Mar 06 Aug 06 Mar 06 Aug 06 Cranford Heston West * Hanworth Bedfont Hounslow Heath Hounslow West Brentford * Feltham West Isleworth Heston Central Whole borough 3,651 3, Nomis September 2006 S/development/S106/Post May 06/ 5 24/11/2006

6 Appendix 3 Section 106 funds uncommitted & future potential receipts: Ref 1 Ref 2 Area Amount Notes A. Section 106 Employment/Training Receipts since July 2004 (reported but not yet allocated to specific projects) 274 H78 Central 12,000 Possible for LAA (SDC July 06) 289 C86 Chiswick 40,000 Hospitality; Possible for LAA (SDC July 06) 257 G59 West 12,229 Possible for West Area Action Plan (Chair s Action); or LAA (SDC July 06) Heston & Cranford 13,750 Training 1.1 B. Section 106 Agreements funds not yet received L39 Central 11,000 Construction Training; Possible for LAA (SDC July 06) A17 West 10,000 Possible for LAA (SDC July 06) C60 West 15,000 Possible for LAA (SDC July 06) C76 West 5,000 Possible for LAA (SDC July 06) Heston & Cranford 23,000 Job Brokerage, hospitality & construction training C. Major Agreements pending; yet to be approved by SDC/ agreed by developer IBAC 200,000 Wallis House Construction training (in kind) IBAC 150,000 Wallis House Job -Brokerage IBAC 10,000 Wallis House basic training Central 150,000 Key Site 1 Phase 2 Job Brokerage D. Applications expected IBAC tba B Sky B Apprenticeships; jobbrokerage; media & creative industry training & small business support IBAC tba Gillette Apprenticeships; jobbrokerage; hotel & hospitality training S/development/S106/Post May 06/ 6 24/11/2006