Agenda item

The Interim Assistant Director for Economic Growth introduced the report which set out that the Council had submitted a bid for £430,000 of funding from the Greater London Authority (GLA) Good Growth Fund (GGF) in order support the capital costs of the proposed Tailoring Academy for London which was to be located in the borough. The Leader noted that this funding bid had been successful  and the GLA  now required the Council to enter into a funding agreement with it before the end of March. The Council would match the GLA GGF with the Council’s own New Homes Bonus funding of £225,000, which was already held by the Council.  The total funding available for the Council to invest in the capital cost of the Tailoring Academy would be £655,000. 

The report further sought authority to conclude the funding arrangements with the GLA, and  set out the justifications for the investment in the borough’s clothing industry. It also sought a delegation to officers to finalise the terms of the agreement with the GLA and Fashion Enter Limited (Fashion Enter), the Council’s preferred partner body for clothing training in the borough, subject to confirmation of terms and compliance with European state aid requirements.

The Leader noted that if the project was implemented, the Tailoring Academy was forecast to deliver the following outputs and outcomes:

552 jobs created/safeguarded - comprising:

- 50 new jobs created directly by Fashion Enter as a result of the setting up of the Tailoring Academy

- 502 jobs to be created/safeguarded in Haringey by the borough’s clothing related and manufacturing sector engaging in the project directly or indirectly

100 level 5 apprenticeships delivered under a contract with the internationally renowned Savile Row (Tailors) Bespoke Association

2,090 training places offered per year through the Tailoring Academy, consisting of:

- 630 accredited apprenticeships, with 280 at level 1, 280 at level 2,   40 at level 3,and 30 at levels 4-6

- 545 per year achieving accredited qualifications

- 502 trainees/learners progressing to work

- Non-accredited courses for 1,300 individuals

RESOLVED

1.    To give delegated authority to the interim Strategic Director for Regeneration, Planning and Development, after consultation with the Cabinet Member for Economic Development, Social Inclusion and Sustainability and the Council’s s151 Officer in order to:

·         enter into a Good Growth Fund grant agreement with the GLA upon terms as may be set out in the GLA grant Agreement; and

·         enter into a grant agreement with Fashion Enter in respect of total capital funding of £655,000, using £430,000 of Good Growth Fund monies received from the GLA and £225,000 of the Council’s New Homes Bonus funds in order create the Tailoring Academy in Haringey and to deliver jobs, training and apprenticeships for residents of the borough and more widely across London. This is on condition that any agreement with Fashion Enter will be subject to compliance with state aid requirements as well as all GLA funding conditions.

Reasons for Decision

The primary reason for the decision is to help realise the Council’s objective of creating jobs and skills in the local and London clothing sector, this being a priority sector of the local economy identified in the Council’s Corporate Plan and economic development strategy.  The project will realise opportunities for Haringey residents to enter into formal training and progress into employment in the industry, the project being supported by major employers in the clothing sector including Savile Row tailors and major high street fashion companies.   The high quality of the employment will help improve wage and career progression in what has traditionally been a low paying and low skilled industry. The project will set a benchmark for other training initiatives in the sector and help improve its image and retention of staff. There is also an expectation that the project will attract further investment from clothing firms in Haringey and in London as a whole, creating a cluster of firms and improving investment in technology.

The decision is needed now, rather than later, because in approving its funding the GLA requires agreement with the Council on its use by the end of March 2018. In addition, the decision is required in order for the capital works component of the Tailoring Academy project to be started in April 2018.  This is so that the delivery partner, Fashion Enter, can begin delivering its jobs, apprentices and job training outputs from the scheduled date of November 2018 which it has agreed with the revenue funding partners and training organisations. The 100 apprenticeships to be delivered by the Tailoring Academy are already lined up with the employers and require the apprentices to be ready for placement from November 2018.

Alternative Options Considered

The Council could have chosen not to bid for the GLA funding to help establish the Tailoring Academy with Fashion Enter.  However, this was discounted for a number of reasons:

(i)            The Council would have forfeited the chance for significant external funding to deliver a project which would provide jobs and specialist and in-demand job skills for the borough’s economy and Clothing & Fashion sector

(ii)          The Council would not have capitalised on a major private sector funding opportunity which would help deliver a key component of the Haringey Economic Development & Growth Strategy and Corporate Plan.