Issue - items at meetings - Potential Effects of the Recession on Business

Report of the Director of Culture & Enterprise (copy attached).

10.1 The Head of Culture & Economy, Paula Murray, introduced the report that had been referred from the Overview and Scrutiny Commission. The impact of the recession on Brighton & Hove had not been quite as bad as the  impact on the rest of the South East. This may leave the city in a better position to come out of the recession and was also a useful tool to restore consumer confidence.  Ms Murray explained that initially the measures that were taken were reactive ones. Part two of the campaign ‘Be Local, Buy Local’ was about to be launched with The Argus and would focus on consumers, for example, offering loyalty cards and vouchers.  The Greeter Scheme was one that required only small scale funding but would help to boost the economy. The scheme to create art in vacated places was also only a small amount of funding but would have a wide effect.  These schemes were about attracting people into the city and encouraging them to spend.  The HSBC ‘Super Cities’ report which identified Brighton & Hove as one of the economies of the future was a significant and useful report.

10.2 It was remarked that there were some interesting ideas and the Head of Tourism and Venues, Adam Bates, was congratulated on his recent media appearances to generate positive publicity.  The issue was raised of tenants receiving better deals from landlords to help in the recession but not from the Council, with the specific example cited of the rises in rent for the tenants of the Arches. Ms Murray explained that she was intending to go and visit the companies involved and there would be some flexibility as they were keen to keep companies such as the art gallery in the Arches as part of the business mix.

10.3 The Business Retention and Inward Investment (BRII) strategy was mentioned and it was agreed to bring this back to the Committee in the future.

10.4 RESOLVED – that the Committee receive update reports both on the impact of the recession and on the BRII at a future meeting.