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Revitalising Blackpool
Background
It was 1995 when Blackpool’s Economic Development Strategy/Policy became more of a
regeneration policy. Instead of working with individual companies and looking for inward
investment to disparate sites across the borough the money became available to be more
proactive in our approach to growing the economy and improving the town.
This original proposal in the mid 1990s was launched as a strategy to diversify Blackpool’s
economy away from tourism. It has in many ways had some measure of success. The
creation of two significant investment sites in the south and north of the town has led to the
creation or relocation of over 6,000 jobs to those locations over a 10-15 year period. This
work did however use up a significant portion of all the employment land available in the
borough leaving us to look at less attractive sites. This is demonstrated by the relative
inequality of the 2 sites developed. The Business Park at Squires Gate which is larger and
far more accessible has delivered more than 5,000 of the jobs listed above. In turn the
Technology Park in the north has delivered around 1,000 jobs it is far less accessible and
still has significant areas that have not been developed despite promotion of them and the
passage of time.
In terms of physical regeneration the town has continued to look at improving its assets and
these have also yielded very good job outcomes. The Hounds Hill extension, promenade
works, leisure assets purchase, many new budget hotels, and gains in the civil service in the
1990s and early 2000s have seen a similar number of jobs created in the retail and tourism
sectors. he public sector also accounted for growth in the region of 5,000 jobs over the
same period.
In total these initiatives have created, relocated or preserved between 15,000 and 20,000
jobs in Blackpool but an analysis of all else that has happened does reveal some
weaknesses in approach. For example, the Council has helped to encourage the relocation
of many traditional office based jobs out of the town centre to purpose built offices on the
edge of town. This has driven the significant changes to areas like Springfield Road. The
ambition to move to non tourism and preferably manufacturing roles has not been entirely
successful with many of the jobs on the Business Park for example being lower paid
warehousing, office and call centre roles. Whilst these are all year round jobs many are also
part-time. Manufacturing has grown on the business park but the area has lost significant
players with TVR being the best known example. The technology theme in the North of the
town did not really emerge and the Business Park does not have a specific cluster of
industry to attract like minded businesses there. In the 1990s and early parts of the 2000s
the Council was able to attract people to Blackpool on price with many sites closer to the M6
being much more expensive. Following the move to recession land prices have become
much more competitive and competing on price alone is not now possible.
By 2001, the Council had recognised that the solution for Blackpool was not going to be
based purely on manufacturing and commerce and developed a new approach moving more
towards tourism and the visitor economy as the way forward. The Casino story came and
went but this inevitably meant that the Council had been focussing less on the approach that
say East Lancashire was taking building up its portfolio of assets to support small business
and using the money it brought in to deliver a much more in line with national policy
approach of industry and commerce. In many areas grant regimes and Local Authority
ownership of starter units etc is common place. Many areas had far more land to go at to
develop further business parks and employment parks.
The next change of emphasis for us came with the LEGI (Local Enterprise Growth Initiative)
Funding in 2007 which enabled the Council to build a base of support for all business. This
is where the initiatives like Start Up, Positive Steps and Blackpool Build Up were born.
These latter 2 programmes focus on getting people into work who either do not have the
appropriate skills or are not “work ready”. Since then the Council has developed further
programmes and tapped into neighbour’s initiatives to support more traditional business (see
below).
As the recession took hold the Council used its relatively small remaining regeneration
resources to launch direct support for businesses that either wanted to sustain or grow but
were no longer receiving support from the banks. This was both loan and grant funding
under 3 target themes or areas and had some significant successes. For example our
support to Laila’s Fine Foods has helped them not only to sustain themselves but also to
grow their market and output. As a major supplier to Morrisons, ALDI, ASDA and LIDL they
now employ just under 200 people which is more than twice the number at the point of the
fund’s involvement. This support was not just financial but also saw a major restructuring of
the management team to bring in expertise in finance and other areas. There are other
smaller success stories too with the relatively small investment seeing a return of more than
500 jobs either created or safeguarded as a result of the intervention.
The Current Position
The economic outlook for the UK is uncertain, with national forecasts showing continued low
growth at best, and considerable north-south variations. The need for newly established
Local Enterprise Partnerships (LEPs) and Local Authorities to lead and contribute to local
economic growth has never been more pressing. With limited resources this is an uphill
struggle demanding ever more creative solutions.
The nature of public sector funded business support has changed radically in recent years,
not least with the closure of regional Business Links – the former gateway to national
business support. The overriding national objective is to support businesses with growth
potential, to create the wealth, jobs (and tax revenue) needed for the future, and to
rebalance the economy in favour of private sector jobs.
The government has introduced a number of measures to enhance economic growth and
support business growth, a number of which are set out below:-
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Encouraged the formation of private sector-led Local Enterprise Partnerships (e.g.
Lancashire LEP) which are now being tasked with developing economic growth plans.
This may result in further devolved resources to LEPs in addition to the £730 million
Growing Places Fund already devolved to support infrastructure projects.
Set up a £2.6bn Regional Growth Fund where businesses can apply direct for grant aid
towards investment and job creation projects.
Designated some 24 Enterprise Zones, including the Lancashire Enterprise Zone at
existing BAE Systems sites at Samlesbury and Warton, offering 100% business rates
relief (worth up to £275,000) over a 5-year period, simplified planning, and in some areas
(not Lancashire) enhanced Capital Allowances for investment in plant and machinery.

City Deals whereby designated cities have been given more powers to invest in growth,
more freedom to support local businesses, powers over budgets and resources to drive
infrastructure development, and to deliver the skills training local people and businesses
need. Preston has recently been given the opportunity to submit its case.

Attempted to improve access to finance for small and medium sized enterprises post
the financial crisis through several schemes (Enterprise Finance Guarantees, Enterprise
Capital Funds, Business Finance Partnership, UK Export Finance, and just announced, a
Business bank). The North West Access2Finance team can help broker finance
packages for Small and Medium Sized Enterprises.
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Investment in innovation, university-industry links and Research and Development via
the national Technology Strategy Board.
The GrowthAccelerator – set to help 26,000 small and medium sized enterprises
achieve high growth over three years, through coaching and peer to peer support.

Response to the Portas Review and the welcome but modest High Street Innovation
Fund (awarded to Blackpool town centre)
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Encouraged new start businesses through national campaigns, mentoring, and start up
loans to the unemployed (New Enterprise Allowance) and young entrepreneurs aged 1830 (StartUp Loan Fund).
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Expanding the role and capacity of UKTI (exporting and inward investment)
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Investing in the roll out of superfast fibre optic broadband.
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Expanding apprenticeships; and piloting a £340m fund designed to encourage large
employers and small and medium enterprises to design and take ownership of their skills
needs (Employer Ownership of Skills). Tourism sector employers in Blackpool are
attempting a second round bid to form a Tourism Academy.
Many of these initiatives are referred to in the government’s growth plans, industrial strategy,
and recent Autumn Statement - which also confirmed that Local Enterprise Partnerships are
to be given increased influence over a single pot of national resources from April 2015 (part
of the government’s response to the Heseltine’s review) – subject to producing compelling
growth strategies, investment programmes and bidding documents.
Lancashire Wide Schemes
As a result of improved joint working with colleagues across Lancashire we have been able
to take advantage of a number of Lancashire wide schemes that have emerged in the last
couple of years. These have been developed with funding from some of the above named
schemes, and the European Regional Development Fund.

Accelerating Business Growth – a £7.5m capital grants fund aimed at supporting small
and medium sized enterprises manufacturers and other business to business sectors to
invest and create jobs (devolved Regional Growth Fund pot).
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Lancashire Business View’s Enterprise programme – a Regional Growth Fund
programme worth £4m aiming to help high growth small and medium sized enterprises in
their first 3 years of trading with capital investment and job creation.
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Lancashire Innovation Network – an European Regional Development Fund funded
project that assists small and medium sized enterprises with new product and process
development with a small grant fund.
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Lancashire Business Growth Hub – A £7m scheme to help promote business growth
in Lancashire has won funding from the European Regional Development Fund. The
Lancashire Business Growth Hub is intended to bring together a package of support that
will enable Small and Medium Sized Enterprises with high-growth potential to access
practical specialist advice, coaching and mentoring. Set to launch in spring 2013.

Lancashire Superfast Broadband – a large project aimed at connecting up the county
with a superfast broadband fibre infrastructure, including rural areas; helping small and
medium sized enterprises to grasp the potential impact this could have in the way they
do business (via a £3m business support programme).

Start Up Lancashire – an European Regional Development Fund programme
supporting eligible new start and social enterprise businesses. The Council’s Get
Started programme forms part of this offer, exclusively delivering start up support in
Blackpool.
Blackpool Council led Interventions
Blackpool Council plays its own part in supporting local businesses complimenting national
and regional initiatives to drive up enterprise and economic activity. These have fallen within
the following areas:-
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Direct support to the tourism sector, especially the accommodation sector (capital
grants, business advice, accreditation support, and enhanced resort knowledge via the
Welcome to Blackpool programme (now Fylde wide));
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New incubator and small business space (Enterprise Centre, FYCreatives, 81
Central):
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Capital Grants towards commercial improvements, restoration and arts projects within
Blackpool town centre (Townscape Heritage Initiative, Invest in Blackpool, Culture
Shops), and other Small and Medium Sized Enterprise projects.
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StartUp finance and advice via Get Started initiative assisting several hundred new
start businesses; young entrepreneurs (HERO, Oracle Young Enterprise Challenge) and
support to social enterprises (Social Enterprise Solutions);
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Demonstration Wireless network in Blackpool town centre (Wireless Blackpool)
assisting businesses; and meeting the needs of conference and event organisers;
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Mentoring (Guardian Angels) and high growth coaching (Skills for Success)
programmes for growth oriented SMEs;
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Providing recruitment and skills assistance to key employers, and construction
contractors – bridging the gap between the needs of unemployed residents and
businesses (Positive Steps, Blackpool Build Up, Aviation Academy)
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Developed a successful vehicle for public-private collaboration and debate in the
Blackpool Business Leadership Group.
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Improved communication with local businesses via an online hub – detailing relevant
business support and regeneration news (Blackpoolunlimited.com);
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Business Brokers – We have a small team of people who are informed about all of the
above opportunities and that are already working with 100s of businesses in Blackpool.
The Council has sustained and grown this team despite the recent pressures on budgets
and is committed to continuing this support.
It is believed that this demonstrates that there are quite a lot of opportunities for us to help
businesses to sustain and grow. There is often a feeling in Blackpool that there is no
support available. As a result of many of these initiatives being designed to work across the
country there are always going to be businesses that do not readily fall into the appropriate
category. Retail and Tourism are always a challenge for these programmes. We also
struggle to provide financial assistance for businesses that merely wish to sustain
themselves rather than grow as clearly this will not deliver the much desired job outcomes
that Government requires. A more detailed analysis follows.
What are the gaps?
The government and European funded programmes are fairly narrowly focused on Small
and Medium Sized Enterprise growth companies (which represent a small percentage of
business stock), and certain industry sectors which tend to exclude retail and tourism.
Lancashire County Council (LCC) favours five key sectors as having potential for growth:
aerospace, advanced manufacturing, digital and creative, energy and environmental, and
finance and professional services. Tourism is not a target for growth per se, but Lancashire
County Council does support Marketing Lancashire (formerly the Lancashire and Blackpool
Tourist Board).
Many of the Council-led initiatives are no longer active post Blackpool’s Local Enterprise
Growth Initiative (LEGI), although a legacy still remains. The Council is still able to:
Support new start companies via the Get Started initiative, shortly set to launch an
associated mentoring scheme.

Offer low cost small business space via FYCreatives, 81c, and the Enterprise Centre
(which is under review to see how the centre can be better utilised). There is a
perceived gap however in the availability of low cost flexible light industrial units; and a
proven demand for studio space for artists and craft based enterprises.

Deliver recruitment support via Positive Steps; and fill general construction jobs in
partnership with the College-led Build Up project.

Offer a signposting and advice service to Small and Medium Sized Enterprises to
encourage take up of national and local support and funds. This has worked well of
late, but a widening of employer engagement across the Fylde Coast is necessary for its
future success.

Marketing Blackpool offer some business support to the accommodation sector in terms
of advice on national accreditation, and Welcome to Fylde courses. A Licence to Trade
project is under development to assist smaller mainly unaccredited providers to stay on
top of legislation requirements (health and safety, food hygiene, etc.). This will
complement the range of courses offered by the Council’s Public Protection service.
Small and Medium Sized Enterprises that are not achieving high levels of growth, or are
striving to maintain turnover and market share, will struggle to access or see the relevance
of many of the national/local programmes on offer. Many are still struggling to access
finance from banks that have tightened up on lending criteria as well as overdraught
facilities. Lack of finance is often cited as a major constraint on investment and growth.
Business growth and decline can occur in virtually any sector, so it is hard to target and
depends on a number of factors. Many have tried but failed to pick winners in the past.
Blackpool’s economy can often witness businesses starting and failing within a single
season, often ill-planned, poorly resourced and managed.
The future of town centres is the subject of significant debate as the number of high street
casualties mount up. Shifting consumer preference towards internet purchase has long been
predicted, but appears to have finally reached a tipping point. Blackpool town centre has to
find ways of enhancing the retail offer with a cultural experience, as well as measures to
develop an early evening economy.
The challenge is even higher for South Beach district centre where traders have formed a
Business Forum to exchange ideas and develop new ideas for investment. South Shore
market has a high turnover and vacancy levels and is losing many of the staples you would
expect to see in a traditional market.
In considering investing further, the Council should avoid duplicating what is already
available, maximise the use of its own assets (skill sets, buildings and equipment), and
target resources to viable projects that can achieve real economic impact.
Blackpool Investment Fund
Whilst Blackpool Council will never be able to provide all of the answers to business
difficulties during the recession years we can look to using what resource we have to help to
fill some of the void identified above.
A combination of interest repayments accrued from Council business loans together with the
high street innovation fund has generated a fund of circa £0.5m that can be invested further
in key priorities.
There are a number of options in terms of how such a fund could be used:1.
2.
3.
A revolving loan fund that could cover an investment gap (including equity
investments);
A grant fund towards capital investment in key areas
A combination of the two – a revolving loan and grant fund.
Option 3 offers the greatest flexibility with the grant or grant-loan ratio dependent on the
needs of each case for investment.
Other than £80,000 to be ring fenced for Blackpool Town Centre (a requirement of the High
Street Innovation Fund) it is suggested that the fund remain as a single pot whereby any
future interest payments can be recycled for other investments, or the fund topped up as
required.
Investment proposals are to be encouraged for the following priority areas:1. Blackpool town centre – commercial or cultural investment adding
value to the existing retail offer.
2. South Beach District Centre – supporting the growth of independent
traders with sustainable year round business models.
3. Investing in growth businesses – loan funding towards a financial
package to enable an investment project to proceed from established
businesses trading for at least 36 months e.g. loan funding needed to
unlock external capital grant via the Accelerating Business Growth
fund, or Lancashire Business View (LBV) Enterprise Fund.
4. Start Ups with growth potential – subject to quality of business plan.
Referred from the Get Started service.
The Blackpool Investment Fund will be:
Overseen by a senior level Investment Panel guiding investment decisions, and the
grant-loan mix.
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Interest rates will be comparable with commercial rates – business plans will be
required.
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Appraisal of plans will be undertaken in-house under £50,000, with external specialist
advice sought on a case by case basis if required.
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Large loans may be secured via personal guarantees or a charge on a company asset.
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There will be a minimum fund investment of £5,000 with no set maximum.
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A maximum loan-grant fund intervention of 25% of total investment value.
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Job creation/safeguarding will be a requirement of any investment decision.
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The fund will be administered by the Partnerships and Business Development team,
with Public Relations and business plan appraisal support from the Economic
Development and Finance teams.