Agenda item

To update the committee on the Economy, Employment and Skills Strategy action plan.

Hannah Jones, James Woodcock and Cabinet Member Paul Griffiths introduced the report and answered the members’ questions with Will McLean:

How can Monmouthshire’s economy be described as “working to full capacity” while also suggesting it could be “more vibrant”?

“Full capacity” refers to high employment levels, strong business occupancy (particularly in industrial spaces), and a highly qualified workforce. However, achieving greater vibrancy would require additional people and more industrial space to support further growth.

What is behind the increase in NEETs? Was it predictable, due to more children with complex needs, or was it unexpected?

The rise is multifaceted. It reflects increased complexity of needs, the impact of COVID-19 on secondary education, and challenges in post-16 provision – particularly around Level 2 qualifications and transport in Monmouth. Work is ongoing to broaden post-16 options and improve early identification tools. Recent data shows a reduction in NEET numbers, with final figures still pending.

It was noted that while the unemployment rate is low (2.8%), about 20% of Monmouthshire’s working-age population is economically inactive, which is only slightly below the UK average. It is important not to overlook this group, as one in five adults aged 16-64 are not working despite being able to. Should the council consider how to support and engage them?

There are ongoing efforts to support economically inactive cohorts into work, with new programmes like Connect to Work with DWP, and the need for bespoke support. 29.4% of the inactive are students (higher than the Wales average), 18% are long-term sick (lower than Wales/GB averages), and 25% are retired (almost double the rate elsewhere), indicating that students and retirees make up a significant portion of the inactive group.

Why have business numbers fallen from 4,575 to 4,445, and has the council evaluated the long-term sustainability of business support after the UK Shared Prosperity Fund (SPF) ends? Which programmes depend on SPF, and what are the plans for sustaining them after March 2026?

The council is working with internal and regional partners to understand the transition from SPF to the new Local Growth Fund, which is currently under consultation. There is no direct read-across, and some projects may need to be refocused. An impact assessment of SPF-supported work is underway and will be shared with the committee.

What is being done to improve extremely patchy rural broadband, which remains a critical barrier for businesses?

The officers will take this question away and provide a written response, as it is not directly within their remit. – ACTION

What is the impact of the 180-day rule on sustaining tourism businesses in Monmouthshire?

A research project is underway to assess the impact of the 180-day rule, which will inform lobbying efforts with Welsh Government, but the question will be referred to tourism colleagues for a fuller written response. – ACTION

What interventions could reduce the rise in Universal Credit claimants aged 18-24 (from 441 to 729), and what proportion cite transport barriers?

A pilot with DWP offers a 12-week programme for young Universal Credit claimants, focusing on barriers such as confidence, skills, and health. Employer engagement is part of the support. Transport is frequently cited as a barrier, and cohorts are run in different locations to address this.

How can the Science, Technology, Engineering, and Mathematics (STEM) programme in schools be strengthened, and how can employers be encouraged to participate?

The STEM programme is in its early stages, with professional learning for staff, cluster leads for sustainability, and active engagement with employers and private sector partners to make the programme self-sustaining.

What factors have contributed to the recent decline in the number of active enterprises in Monmouthshire, and have any been identified that could help reverse the trend?

It is difficult to attribute the decline to any single factor. Business numbers have fluctuated over time, rising before COVID and increasing again post-pandemic. Further analysis will be carried out to identify any specific causes.

What targeted measures are planned to reduce the significant earning disparity between male and female workers?

Exploratory work is underway, including women-in-business events and discussions with employers about flexible working. The council’s own policies also aim to address the gender pay gap.

Have any skill shortages been identified in Monmouthshire, and what is being done to address them, including future improvement plans?

The council has engaged with major local businesses to identify skills gaps, which vary by sector but commonly include technical, software, communication, and digital skills. Work is ongoing to collate this information, and succession planning is a noted issue. The council aims to further develop this assessment over the next year.

Is the higher number of young people not in education, employment, or training (NEETs) in Monmouth linked to public transport issues, and what can be done to help given Monmouth’s limited transport options?

Transport barriers, such as limited bus services to Hereford and Newport, place a burden on young people and can lead to disengagement if transport is missed. Expanding post-16 provision within local schools, especially at Level 2 and vocational Level 3, is seen as a way to help retain students and reduce reliance on external further education providers.

How can workplace education (e.g., NVQ up to Level 7) be promoted as an alternative to university?

The officers acknowledged the importance of workplace education and agreed on the need to broaden course options in local schools to reduce transport barriers and support young people’s aspirations.

How is the governance and monitoring of the Economy, Employment and Skills (EES) strategy being managed now that delivery is distributed across multiple other strategies, and is there a plan for a single dashboard or scorecard with KPIs, baselines, targets, and RAG status?

There is a comprehensive spreadsheet that currently tracks interdependencies, and the team is open to developing a RAG assessment for future reporting. There is agreement on the importance of reviewing indicators, and this exercise will be undertaken.

What tangible evidence demonstrates the benefits and value delivered to Monmouthshire from its financial contributions to the Cardiff Capital Region (CCR), and has any detailed analysis been done?

Regular reports on CCR activities are provided to full Council, and future reports will include quantifiable information. Examples of CCR impact include investments in compound semiconductors and support for medical technology firms, though more detailed reporting is acknowledged as necessary. – ACTION: the Cabinet Member to liaise with the Leader about including quantifiable benefits in the quarterly report to council

Chair’s Summary:

The Chair concluded that, despite the low unemployment rate, the council should not be complacent and should continue to explore ways to add value and address the needs of the economically inactive. He emphasised the need for a reality check when comparing Monmouthshire’s economic competitiveness, noting that while it ranks second in Wales, it is 79^th out of 152 in the UK and the UK itself is 30^th out of 38 OECD countries, urging the council to focus on raising its game rather than just outperforming local peers. The Chair highlighted the significant economic impact of tourism (£352 million in 2024) and questioned what is being done to support this sector given current challenges. The development of Placemaking Plans was welcomed by the members as a positive way to engage local residents and address local needs. The Chair expressed concern that the report may not fully reflect the challenges faced by businesses, especially in high streets and hospitality, and suggested this should be considered before the report goes to Cabinet. On the matter of any failed CCR procurement, the Chair suggested that such issues be addressed in future council reports to ensure transparency and confidence. He thanked the officers and Cabinet Member for their responses, and the report was moved.