Investing in Business (west Cumbria)
NDA is supporting diversification in the west Cumbrian economy, to help balance the dominance of Sellafield Ltd, its largest employer.
Workington, west Cumbria
Project summary
| Nearest NDA site | Duration | Total investment | NDA contribution | Partners | Delivered by |
|---|---|---|---|---|---|
| Sellafield | 2013 to 2017 | £4.3 million of public funds plus a further £13 million leveraged from the private sector | £1.22 million | Britain’s Energy Coast (BEC), with programme promoted by Copeland and Allerdale Borough Councils, Cumbria County Council | Britain’s Energy Coast (BEC) |
Aim
To support diversification in the west Cumbrian economy and help balance the dominance of Sellafield Ltd. its largest employer.
Outcome:
- 378 new jobs (of which 328 at SMEs)
- 202 jobs safeguarded (of which 104 at large companies)
- 38 businesses supported
- £13.3 million leveraged from private sector
The dominance of Sellafield as west Cumbria’s biggest employer leaves the economy particularly vulnerable to the gradual and inevitable wind-down associated with future decommissioning. The area’s geographic isolation and limited transport connections, meanwhile, can act as a deterrent to business investment from other parts of the UK and overseas.
With Sellafield and the NDA in its boundaries, the borough of Copeland is more dependent on public sector employment than any other local authority in England and Wales. Some wards in Allerdale, meanwhile, are among the most deprived in the country. For the NDA’s socio-economic programme, west Cumbria is one of four priority regions for targeted support.
In 2012, economic support organisation Britain’s Energy Coast (BEC) drew up proposals to help the region’s businesses diversify away from nuclear while simultaneously assisting those seeking to work more effectively in the industry.
Clear logic was behind this dual approach, says Joe Martin, BEC’s Head of Energy & Funding:
Nuclear will continue to influence our economy heavily for many decades to come and we wanted to acknowledge its importance by assisting companies, especially Small and Medium-sized Enterprises (SMEs), to engage more successfully with this significant market. This could, for example, require investment in products, equipment, quality standards to continue meeting stringent procurement requirements.
At the same time, we are seeking to encourage diversification away from nuclear, to create greater economic resilience for the future and enable different kinds of businesses to flourish. For nuclear-focused businesses, this could include adapting to other energy sectors, while for non-nuclear businesses, it might be a case of expanding existing operations.
Maryport-based SME Forth Engineering has developed a range of remotely operated vehicles for use different environments
BEC, a fully commercial operation since 2016, grew out of a series of regeneration and economic development organisations in Allerdale and Copeland, with direct funding from the nuclear sector. Today, it is owned by Copeland Borough Council, Allerdale Borough Council, Cumbria County Council and the NDA. The BEC team work closely with a number of key local partners including the Cumbria Local Enterprise Partnership.
BEC’s successful application to secure £3.135 million of government funding from the Regional Growth Fund (RGF) followed the NDA’s commitment to provide £1.22 million and helped to leverage many more £millions from private sector businesses. The RGF was created in 2010 to help promote the private sector in areas of England most at risk from public sector cuts. Creation of the RGF and Local Enterprise Partnerships, which operate on a voluntary basis but are unfunded, followed abolition of the regional development agencies.
Joe explained:
There was a £1 million grant minimum threshold for individual funding submissions to the RGF, however, many Cumbrian businesses, particularly smaller ones, are often looking for smaller amounts. BEC effectively applied on their behalf, creating a programme that allowed SMEs to access grant funds that were otherwise out of their reach and was able to distribute capital grants that enabled them to invest in their future.
Under the Investing in Business scheme, BEC worked with Britain’s Energy Coast Business Cluster, a private-sector led group of more than 300 businesses, to promote the availability of the funds to local businesses and help ensure the RGF funding was channeled to a wide range of local projects. A number of other marketing and promotional channels were utilised to promote the availability of the funds widely.
BEC had forecast that 35 projects would benefit based on preliminary research with local businesses and through a network of business advisors in regular touch with Cumbrian SMEs, and had already identified 15, based on referrals and recommendations from business experts, local authorities and business development organisations across Cumbria.
The mix of beneficiaries included large manufacturing plants and office accommodation as well as SMEs, with funding packages ranging from ten to several hundred thousand pounds. To be eligible, applicants needed to demonstrate proven need, job creation potential, commercial viability and significant private sector match funding and, as well as meeting other stringent criteria.
Among the sectors to benefit were: manufacturing; processing industry; tourism projects with direct job creation; the nuclear/other energy supply chains; engineering and fabrication; R&D projects/inward investors related to these sectors.