ECONOMIC RECOVERY ACTION PLAN - REBUILDING A STRONGER ECONOMY WE ALL MUST DO IT TO GET THROUGH IT - Northern Ireland Tourism ...
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ECONOMIC RECOVERY ACTION PLAN REBUILDING A STRONGER ECONOMY WE ALL MUST DO IT TO GET THROUGH IT
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Ministerial Foreword A little over a year ago I accepted rollout gathers pace there is reason to by a bold and highly ambitious vision the role of Minister for the Economy be optimistic and reason to be hopeful which captures the bustling energy in in the newly formed Northern Ireland once again. our innovation ecosystem, and seizes Executive. I took up the post with a the chance to make a generational clear vision of what I wanted to I believe that the time is now right to change in our economy. Successful achieve and how I wanted to return to our plans and to build a delivery of this plan will require transform our economy. I wanted to pathway to economic recovery. We must additional investment at a time when deliver for the people of Northern use this point in our history to build a the public expenditure landscape is Ireland by creating jobs, developing more competitive, inclusive and greener extremely difficult, but we must prioritise skills and by helping our business economy. This means tackling the our economic recovery. The delivery of community achieve their goals. immediate and unfolding effects of this plan must also be flexible and Covid that are causing job losses, respond to the economic events that A few short weeks after my appointment business closures and stifled demand, unfold during this timeframe. the first case of coronavirus was and by finding permanent and complete diagnosed in Northern Ireland. As we solutions to the frictions in the UK Recovery will be challenging but above began to understand the scale of the internal market caused by the all we must ensure that Northern Ireland pandemic, we set aside our plans and implementation of the Protocol. It also is once again open for business, open to began working to protect our people and needs us to be ambitious and creative investors and open to visitors. our economy as best we could in the about our future, embracing new face of the unknown. thinking, and recognising that the old norms will not necessarily help us The people of Northern Ireland have rebuild our economy. been remarkable. It has been hard, the effects of the virus have touched all of This recovery plan sets out a range of Diane Dodds MLA our lives, many have lost loved ones and decisive actions to kick-start economic Minister for the Economy the restrictions have affected the mental recovery over the next 12 to 18 months. health of many. Yet as the vaccine These first steps will be quickly followed 2
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Dr Bryan Keating, Chair of the Department’s Strategic Advisory Forum, said: The Department’s Economic Recovery Plan is a significant piece of work which, I believe, will allow businesses to plan for the future. I also can see how the plan, when successfully executed, will allow young people a welcomed opportunity to join the workforce and older employees or those currently out of work to either enhance their careers or re-start them. Angela McGowan, director of the Confederation of British Industry (CBI) Northern Ireland, said: The CBI welcomes the Department for the Economy’s Recovery Action Plan. The emphasis on investing in skills, creating employment opportunities and stimulating investment and demand are strongly aligned with the CBI’s build-back-better proposals for a jobs-rich economic recovery. Dr Joanne Stuart, CEO of the NI Tourism Alliance (NITA), said: NITA welcomes the Department’s Recovery Action Plan which recognises the importance of the tourism and travel industry as a key economic driver for regional economic recovery. The actions outlined within the report are critical to supporting the survival and rebuilding of the tourism industry and NITA look forward to continued engagement with the Minister through the Tourism Recovery Steering Group on the development of a sustainable Tourism Strategy. 3
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Kevin Holland, Chief John McGrillen, CEO of Executive of Invest Northern Tourism NI, said: Ireland, said: I welcome the publication of this action plan as we continue to offer support towards the recovery of The Department’s Recovery Action Plan our tourism industry in partnership with the sets out a wider ambition to create Department for the Economy. Many businesses longer term economic prosperity. It will have been severely impacted by the pandemic, but contribute to the trade, investment and we have also witnessed huge resilience and a jobs that will support the rebalancing of determination to adapt and survive. our economy and underpin the building of a shared future for all. We are very The recovery plan includes the development of a happy to see innovation front and sustainable, regenerative Tourism Strategy focusing centre in driving this ambition. on economic growth, social wellbeing and the protection of the environment. The plan will also We are currently building detailed allow us to develop and deliver industry-wide delivery plans under eight economic training to the tourism sector, as well as campaigns drivers aligned to the Department’s and additional funding to provide the skills and plan. These plans can impact quickly, capabilities to improve and grow product offerings generate public economic success and and business models. build for the future. 4
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Economic Context The coronavirus pandemic has had a A further 78,000 workers have availed dramatically, with the January 2021 profound impact on the global of the Self-Employment Income Support claimant count, at 56,700, being around economy, creating unprecedented Scheme (SEISS). Even with these twice that observed in the pre-pandemic economic challenges. This has unprecedented job support schemes in months. significantly reduced market place, unemployment increased opportunities for Northern Ireland (NI) businesses to trade domestically and export. As a direct result of the pandemic it is estimated that economic output fell by around 25% at the height of lockdown in spring 2020. Output levels improved markedly over the summer of 2020 as the NI Executive lifted many restrictions. However, while the rebound was strong, the economy as a whole had not fully reverted back to pre-pandemic levels before rising infections meant new restrictions, beginning mid-October 2020. The trading restrictions have had a severe impact on the NI labour market. In total, nearly 250,000 NI workers have been placed on furlough at some point. 5
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY As we look forward, independent forecasters Forecast Summary % believe that 2021 overall will be a year of recovery in the Northern Ireland economy, 2020 2021 with growth of around 4% to 6%. The roll-out UK GDP growth -10.7 4.2 of the coronavirus vaccine programme will allow restrictions to be gradually eased as NI GVA growth -11.0 4.0 we move through the year. Similar to what NI consumer spending growth -14.0 4.5 was experienced during the third Quarter of NI Employee jobs growth -0.3 -3.0 2020 (Q3 2020), we may see a strong increase in activity as businesses reopen NI unemployment rate 3.5 6.7 and confidence returns. At the same time UK CPI inflation rate 0.9 1.4 unemployment may increase in the short- term, and there are significant risks if recovery of output and jobs is not swift and sustained. While there are real reasons to look towards the future with optimism. In the short and medium term the economic context remains stark. It is within this context of a recession like no other that this Recovery Action Plan is positioned. Source: Oxford Economics, Danske Bank Analysis 6
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Economic Recovery Action Plan “Rebuilding a Stronger Economy” set • building a higher skilled and agile This plan presents, at a high level, a the priorities for a more competitive, workforce; significant amount of activity which is inclusive and greener economy. This • pursuing and securing better jobs; and, being taken forward across the Recovery Action Plan defines the ultimately, Department and its delivery partners. It is immediate actions required to deliver • producing a more regionally balanced underpinned and informed by work being against that agenda; and to protect economy. taken forward by groups such as the and stabilise employment. Tourism Recovery Steering Group and the In providing this support we look towards Skills Strategy Advisory Group. It also A crucial part of rebuilding will be the the wider economic outlook, addressing reflects a number of initiatives which, process of reshaping our economy key structural weaknesses so that we can while already in train, will make a through government intervention, avail of economic opportunities in global significant contribution to our economic assisting people and businesses to adjust markets, prospering through a higher skills recovery. A key example is the City and to the changing economic fundamentals base, higher productivity and enhanced Growth Deals programme, which will see caused by Covid-19 and EU Exit to competitiveness. The policy responses close to £1.5 billion of investment across maximise future growth potential. This will must include opportunities for all our NI providing a tremendous springboard for involve targeted interventions to people to ensure economic recovery is the recovery plan. Through continued encourage external growth in inclusive. This will involve supporting a collaboration with councils, industry and internationally focussed high-value added range of jobs to reflect the volume of jobs academia, we can use the planned sectors where NI has the ability to exploit lost and the skills of those affected, investments to accelerate our recovery. competitive advantage. It is in these including those in the hardest hit sectors sectors that our future economic e.g. tourism, retail and hospitality. To do It is important to register at the outset that prosperity lies. this, we will build on the success of our many of the actions set out within this existing employment support plan are subject to funding availability and As outlined in “Rebuilding a Stronger programmes, further adapting and would be subject to the normal approval Economy”, the challenge is to deliver modifying these to address the current process including tests for value for decisive interventions that will challenges we face and ensure these money and meeting any EU State Aid / UK contribute to: meet future business needs. subsidy control requirements. 7
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Where appropriate, the actions will be designed to target the high potential areas identified within “Rebuilding a Stronger Economy”. This will ensure that, working with our partners, the limited resources available will be focused where we have the greatest opportunity to drive innovation and exports, develop the skills and capability of our workforce and secure sustainable, better jobs. This Action Plan sets out what is possible if the resources are made available. Successful delivery of this action plan will require an additional £290m in 2021-22 (including the cost of delivery the High Street Stimulus Scheme). Recovery will not be completed in one year alone, and many of the actions set out within this plan will require funding beyond 2021-22. 8
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY The recovery actions have been The purpose of this document is designed against the backdrop of an therefore to start a wider and more ongoing health and economic crisis. At detailed conversation regarding our the time of writing, restrictions remain in recovery journey, to test with place on the day to day operation of stakeholders if the steps laid out in this many businesses across NI, and the document are the right ones and, Department, and wider Executive, acknowledging the very real financial continues to provide support to constraints we face in 2021-22 and businesses and individuals impacted by beyond, seek views on the relative these restrictions. It is inevitable that priorities of the actions. This will enable there will be an overlap between this the Department to provide a initial response phase and the comprehensive input into the wider foundations we need to build for Executive framework for recovery. recovery. However, given the dynamic nature of this crisis, the timing of As we pivot into economic recovery it is recovery interventions will be under important that the steps we take today constant review and the actions will not only tackle the disruption we are need to be agile to respond to emerging already experiencing and impacts that we economic events. expect to see ahead of us, but are also aligned to the bold actions we must take Economic recovery can only be delivered to seize the opportunity for a longer term through collaboration and partnership. generational change in our economy. During the development of this Action Getting to this bold and highly ambitious Plan the Department has considered the vision – which we will publish shortly – valuable input of key stakeholders and will only be possible if we first overcome delivery partners. However we recognise the real damage and disruption to lives more engagement is required and this and livelihoods. document is intended to progress these conversations. 9
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Supporting a Highly Skilled & Agile Workforce Covid-19, and the measures required By investing in skills, we will help to designed around three to reduce its transmission, is having a ensure that NI businesses can rebuild major policy objectives: significant impact on the NI labour and grow their markets, protect and addressing skills imbalances; creating a market. At the same time, EU Exit is strengthen their supply chains and culture of lifelong learning; and introducing changes to fundamentals maximise new opportunities. This enhancing digital education and such as migration and trade. We are investment will also enable our people inclusion across society. focused on working with industry and to avail of new and better employment our delivery partners to respond to opportunities. Potential also exists to Digitisation of the workplace in these challenges and improve the target NI’s diaspora and to attract highly particular has been transformative, and skills profile of the working population; skilled ‘returners’ who can contribute to it is essential that we ensure citizens and, ensure our young people are well addressing key skills needs in high value have the necessary skills to contribute equipped for entry into the labour sectors and, thereby, accelerate the economically and thrive in an ever- market. We will provide access and growth of sectors of strategic changing economy. support to help people develop the significance. skills required to meet the changing demands of the labour market. Not The development of the new Skills only does this support economic Strategy for NI has focused on key growth, it also improves wellbeing and themes and policy objectives that aim to helps address inequality. deliver against these challenges, whilst taking into account the need for our skills system to addresses growing inequalities, providing everyone with the access to the education and training opportunities that will enable them to fulfil their potential. The new strategy is 10
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY DfE will support a Highly Skilled & Agile Workforce by: • Growing and maintaining the Apprenticeship system as a critical skills pipeline for industry and valuable employment, particularly for young people, by providing incentives to employers to return apprentices from furlough and recruit new Apprentices; • Make apprenticeship opportunities available to more people and sectors by amending age- related criteria; and, establishing public sector apprenticeships as a way of growing skills and supporting opportunities for new employment and re-training for all; • Provide a flexible skills fund to offer new opportunities for individuals to upskill and reskill to meet evolving business needs, focusing on the priority sectors that will help our economy grow; • Developing our Youth Training system to ensure young people with the skills to progress to higher levels of education or successfully enter the labour force, through vocational education, training and work experience, and developing these pathways further to support higher level 3 skills attainment; • Ensuring that the Further and Higher Education sectors continue to play a key role in the response to COVID-19, raising skills levels and increasing productivity of the future workforce, and examining ways to ensure greater alignment between study and the needs of the economy; • Launching a new Northern Ireland Skills Strategy, to help employers and individuals attain the skills needed to grow our economy and boost productivity, by addressing existing skills imbalances, improving lifelong learning, with a focus on the digital spine which cuts across all sectors; and • Building upon the existing vocational education infrastructure by establishing a Northern Ireland Skills Board, bringing together employers, providers and trade unions to progress the skills agenda, supported by sector specific action plans and skills hubs at a local level. 11
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Supporting a Highly Skilled & Agile Workforce WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Adjusted our Apprenticeship offering to Delivering an Apprenticeship Return, Make Apprenticeships available to more support new forms of delivery allowing Retain & Result Scheme to reduce the people and sectors by amending age- training contractors to adopt flexible risk of redundancy following furlough by related eligibility criteria. This will delivery models including remote and providing financial support to incentivise significantly increase the supply of skills blended learning. the return, retention and on to successful to the economy and the range of completion across the AppsNI and HLA opportunities available to individuals of Extended Youth Training Programmes by programmes. all ages. 13 weeks to make up for lost training time due to Covid-19 restrictions Delivering a New Apprenticeship Work with sectors to create new enabling participants to achieve their Recruitment Initiative to encourage and Apprenticeship Pathways. targeted qualifications. support employers create apprenticeship Introduce Public Sector Apprenticeships opportunities for both new apprentices Moved Careers Service functions on-line into the ApprenticeshipsNI and Higher and apprentices who have been and worked with the Department for Level Apprenticeship programmes. displaced by other employers. Communities to support those most Address productivity challenges via a impacted by the pandemic. Through an Apprenticeship Challenge New Advanced (Level 3) Vocational & Fund supporting ways to identify and Supported individuals impacted by Technical Award that will meet sector deliver innovative approaches to tackle Covid-19, to achieve one of over 90 specific needs and provide an barriers to participation in the online, fully accredited qualifications in alternative pathway to higher education. apprenticeship system. key areas including digital, leadership Extend the Apprenticeship Recruitment and management and employability. Introducing the Northern Ireland Initiative. These courses have been delivered Traineeship programme. This new level 2 across the Further and Higher Education Vocational Education and Training sector, ranging from entry level to programme will improve outcomes for up masters. to 1900 young people when it launches in September 2021, rising to 4500 per annum in September 2022. Delivering a second round of fully accredited, online upskilling opportunities for 5,000 individuals, including those furloughed, made redundant, or availing of the self-employed scheme in priority growth sectors. Over 1,000 opportunities have been Post Graduate Certificates, with the digital sector accounting for a third of all places. 12
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Supporting a Highly Skilled & Agile Workforce WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Supported 150 fully funded Post- Piloting a range of graduate placement Develop a digital careers platform to Graduate Certificates in Software programmes, blending digital and provide advice and guidance on future Development with Queen’s University leadership skills with an eight week and current skills needs and Belfast. internship at a local employer to deliver opportunities working closely with the commitment to support graduates industry and key sectors. Increased the maximum student into employment. numbers by 410 in the 2020/21 Develop a Women in STEM Action Plan academic year at the universities in Increasing the maximum student with the aim that by 2030, 30% of all response to Covid-19. number at the universities by 5% over young people moving into STEM roles the next 3 academic years (20/21, are women. In partnership with the Open University, 21/22 and 22/23) to allow for flexibility provided a range of free, business Launch a Flexible Skills Fund, using an in the offering of local student places focused training courses via the NI Open evidence-based approach and will allow following an increase in demand as a University Social Learning Platform. Over government to be fast moving in result of COVID-19. This increase in 300 courses in areas including Digital, responding to any emerging needs. This student numbers will be primarily Numeracy and Wellbeing were made will be used to reskill individuals in jobs directed at Science, Technology, available, with over 20,000 individuals at risk of automation into economic Engineering & Mathematics (STEM) accessing in 2020. priority sectors or provide lifelong subject areas where there is a skills learning accounts/vouchers to Established the NI Women in Science deficit. individuals with low levels of skills. and Engineering (WISE) Hub and Pulsar Supporting the NI WISE Hub and the DfE Live to support and improve Women in STEM Steering Group and participation rates and progression of development of a Women in STEM girls and women in STEM education and Vision and Action Plan for NI to be employment. published April/May 2021. Expanded the Skills Focus Programme, Supporting the development of a new available to SMEs, to offer free upskilling Skills Ecosystem, building on our for staff, including those who are existing structures to bring together furloughed and waivered the 25% employers, providers and the public employer contribution for April 2020 – sector. This includes the development of March 2021. 1,800 employees have a Northern Ireland Skills Council, a new been supported up to January 2021. approach to engagement at a local level. 13
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Supporting a Highly Skilled & Agile Workforce WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO In response to Covid-19 quickly Delivering qualifications online since Additional support for leadership and transitioned Assured Skills Academies April 2020 in response to Covid management, employer skills audits and from classroom to tutor-led online restrictions. a community partnership plan to provide learning. a new and diverse means to support Undertaking a pilot, “Press Refresh” to employers to identify their skills needs, Included Social Enterprises in the support 25 women returners undertake boost productivity and bring in a local eligibility criteria for the Skills Focus part-time learning in digital, with an approach. Programme, introduced in September internship and interview with a leading 2020. ICT employer. Develop a Capability and Skills Enhancement Programme to deliver Launched a Creative and Digital Supporting 100 individuals to get an industry wide training to the Tourism Technologies programme to support export and trade qualification, focusing sector to provide business with the skills 100 young people impacted by on processes around cargo operation, and capabilities to adapt their product Covid-19. This programme focused on payment and insurance. offerings and business models. digital skills development to create a strong pipeline to employment and Launch new cohorts of Invest NI economic growth. Leadership Programmes, through virtual delivery, focusing on how best to help Worked in collaboration with Further businesses review and redefine their Education Colleges to provide flexible strategy, rebuild and grow, in light of the delivery models in response to the new economic fundamentals brought health restrictions taking into about by Covid-19 and EU Exit. consideration the capacity and capability of the learner and the needs Work with industry and stakeholders to of the specific course. identify collaborative skills solutions at NI, sectoral and sub-regional levels by establishing skills networks within these groups. 14
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Supporting a Highly Skilled & Agile Workforce WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE ARE DOING (Cont.) Secured £7m of additional funding to Introducing a new Skills for Life and Delivering intensified support to help provide laptops, IT equipment, software Work Programme to help increase manufacturing and service companies and free school meals for financially essential skills in English, Mathematics develop resilient supply chains and vulnerable learners. and ICT, together with technical and identify and exploit new supply chain employability skills that participants opportunities. Introduced a Digital Hardship Fund to need to progress to Traineeships, ensure our most vulnerable trainees can Working directly with companies to Apprenticeships, Further Education, or access on-line and remote learning. identify areas to enhance productivity employment. There will be provision for and ensure they have the necessary Adapted a range of Skills programmes to up to 1500 disadvantaged and skills to exploit these opportunities, meet social distancing and safe work vulnerable young people per year. whilst protecting profitability by environment requirements; including: Providing support for companies to minimising waste. Since 1st April 2020, - Skills for Growth; enable them to re-skill and upskill their Invest NI has engaged with 90 employees to assist in safeguarding companies on Productivity Improvement - Skills Advancement; employment whilst equipping workforces projects. - I Operational Excellence N with the skills to be competitive when Providing focused leadership Programme; markets recover. development programmes, with locally - Invest NI Leadership Offering funding to industry-led groups and externally owned companies, to to cover the cost of independent develop new skills to accelerate their Programmes; and facilitation to collectively address issues growth potential, with a focus on - Invest NI Collaborative Growth and opportunities related to skills addressing the consequences of Programme. development. Covid-19 and EU Exit. Delivering Screen Industry Reboot - a 4-month training programme for the video games industry developed and delivered by NI Screen. 15
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Stimulating Research & Development and Innovation R&D and the science behind it In the past 12 months many companies continued funding to drives economic growth and have taken a digital leap forward, support research, competitiveness. It is a simple showcasing their resilience and development and wider innovation reality that our most R&D intensive capability to deliver on the world stage. activity. We will target new funding from firms are responsible for the majority We need to build on our excellence. inside and outside NI, and work to of our exports. R&D and Innovation Project Stratum, for example, will play a increase the capacity of NI businesses go hand in hand, but while only a vital role in re-building the NI Economy to access UK Research and Innovation, few high technology and science by transforming broadband connectivity Innovate UK, cross-border and driven companies will be R&D for many citizens and businesses in internationally mobile funds. intensive, every business must rural areas by bringing next generation innovate to survive. broadband services to most of NI. NI has a rich history of pioneering Innovative technology in leading innovations, however our pharmaceuticals has led us to a vaccine performance in recent times has lagged that will facilitate the pathway to behind other UK jurisdictions and other recovery and opens the door to small advanced economies. It is innovative opportunities that need to be imperative that we support both explored and supported. The recent business and individuals to embrace decision by Artemis Technologies, a innovative practices and utilise the spin-off from America’s Cup team available opportunities thereby Artemis Racing, to establish a new unlocking our potential to become world facility in Belfast Harbour to develop class. zero-emission maritime technologies is an example of how NI can be at the The global pandemic has already heart of this decade of innovation. In the accelerated the adoption of digital face of a changing economic landscape, solutions and emerging technologies. we must adapt to ensure we secure 16
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY DfE will stimulate Research & Development and Innovation by: • Accelerating delivery of plans for over £550m investment in innovation and digital across the 4 City and Growth Deals in NI; • Creating a Chief Scientific & Technology Officer post to advise and guide on science, technology, R&D, innovation policies and strategies in the context of economic development; • Providing support to businesses to engage in research and development so that they can continue to innovate and drive new commercial opportunities; • Providing advisory services and support to assist companies understand innovation and develop their innovative capabilities; • Assisting SMEs to gain the skills they need to engage in innovation activities; • Assisting businesses to exploit new opportunities through the adoption of new technologies; • Supporting businesses to build on recent successes in securing UK wide funding streams and ensure NI fully benefits from the opportunities presented by the UK Government’s Levelling Up agenda; and • Fostering collaboration and partnership working between industry and academia. 17
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Stimulating Research & Development and Innovation WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Expanded the Innovation Voucher Providing additional funding for “Co- Increase support for value added R&D Scheme to allow multiple vouchers to be founders”, an initiative by Catalyst to projects across all businesses with the used on complex issues with Covid- encourage new start-up companies to aim of increasing wealth creation and related projects specifically being invited be created by entrepreneurs, students delivering additional jobs. in calls. and researchers. Accelerate delivery of the City and Engaged with Innovate UK / Department Rolling out SME Process & Growth Deals programme including for Business, Energy, Industrial Strategy Organisational Improvement Grant signing of Heads of Terms for “Mid- (BEIS) to influence the UK Research & support. South West region” and “Causeway Development and PLACE Strategies Coast” and start project delivery in the Development and roll-out of a new pilot ensuring that Northern Ireland specific in the “Belfast and Derry / Strabane Productive Investment Capital Grant nuances are recognised and Regions”. Scheme. understood. This influenced actions Invest heavily in place based innovation included within the strategies increasing Investing resource to support industry, through City and Growth Deals. the potential funding available for universities and councils develop major innovation in NI. innovation, digital and tourism projects Develop Webinars and other potential that will create new and better jobs and solutions and delivery models for NI Developed and implemented a digitised sustained economic growth. companies to support innovation. innovation framework for NI companies to improve their innovation success. To Delivering the COVID Digital Innovation Develop an action plan for NI to secure date over 200 Bronze (first time and Productivity Programme to support additional funding from UK government innovators) certificates have been businesses across the tourism sector to through the Levelling Up agenda awarded. enhance their digital capability. contributing to stronger investment in NI commercial R&D capabilities. Work collaboratively with Tourism Ireland to digitally link online visitor behaviour to real time visitors by delivering intense localised marketing. 18
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Stimulating Research & Development and Innovation WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Supported Belfast City Region and Derry Working with Visit Britain to use Tourism Support the development of cross- Strabane District Council in identification Exchange Great Britain (TxGB), a border innovation collaborations and of projects for inclusion in their centralised booking platform, to enable clusters through the InterTradeIreland respective City Deals, valued at over NI businesses to access new markets Synergy Programme. £600m. and manage sales across multiple Develop proposals to implement an Extend the eligibility criteria of the global distribution channels. Artificial Intelligence Centre of InnovateUs programme to include Social Supporting a greater number of firms to Excellence. The aim of the proposed Enterprises and to allow businesses to innovate; develop new products, centre includes positioning NI as AI undertake a third project. processes or services; and improve leaders on the globally competitive world Provided additional funding for efficiency through InterTradeIreland stage. University Research & Development. Innovation Programmes (FUSION / Promote NI as a global cyber security Innovation Boost, Impact). hub, to achieve New Decade New Partnered with Innovate UK to enable increased access to UK funding e.g. Piloting a cyber security job vacancy Approach commitment of 5,000 cyber Innovate UK Fast Start Grant Support platform with free online access to security professionals in Northern Programmes. skilled training. Ireland by 2030. Moved cross-border Innovation supports Create a Chief Scientific & Technology online (Inc. the All-island Innovation Officer post to advise and guide on Programme) to increase participation science, technology, R&D, innovation and accessibility, enabling firms to policies and strategies in the context of improve their competitiveness as they economic development. respond to Covid-19 challenges. Fund NI university participation in large-scale collaborative Research Centres in key strategic sectors. Expand the prestigious US-Ireland R&D Programme to generate further valuable discoveries and innovations which are transferable to the marketplace. Expand strategic investment in university R&D to promote economic productivity and prosperity through excellent science and its commercialisation. 19
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Promoting Investment, Trade and Exports The transformational impact of trade ensure that any issues businesses have disadvantaged and those and export growth for a small open in sourcing from GB are resolved in a who have been most impacted economy like NI, in terms of global permanent and complete way, if we are by the pandemic and the subsequent competitiveness, job creation, to maximise our economic opportunity. economic downturn. productivity, innovation and, importantly, sub-regional balance, is In recent years our economy has As a small SME dominated economy, such that export growth and benefited from strong employment entrepreneurship remains a key success attracting inward investment will be growth and provided valuable support to factor for economic recovery and future pivotal in the region’s recovery indigenous and overseas businesses to growth. More so than ever, it is critical agenda and critical for our longer create new jobs in Northern Ireland. The that all economic development partners term prosperity. current pandemic has disrupted global collaborate to build and nurture a strong markets and trade leading to a sharp entrepreneurship ecosystem where our Promoting trade and investment will be increase in unemployment in recent start-ups, early stage and growth an important part of recovery. The size months. However, even in the face of businesses with potential to scale are of the NI market is relatively small and adversity, opportunities remain in key able to realise their ambitions and to external sales provide a vital part of sectors to drive external market growth, flourish. business growth in NI. There has been rebuild and create new jobs. significant change across key markets City and Growth Deals are large over the past year as a result of COVID, We will ensure that we adapt and flex strategic investments that have the leaving the European Union and the our existing employment and skills potential to seismically shift the NI protocol. However, even in this support and introduce new initiatives to economy and accelerate the economic challenging environment work must enable businesses to take advantage of regeneration of the region. The Deals continue to increase exports and these new market opportunities and provide multi-faceted coverage of promote NI as a destination for inward adapt to new ways of doing business. activities that link industrial, societal, investment in a very competitive This will help to create new jobs and and regional challenges in a environment. We must recognise that employment opportunities for all, comprehensive, inclusive way. exports rely on inputs, and we must also including our young people, the 20
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Promoting Investment, Trade and Exports (continued) The four local Deals will see a combined investment of £1.5 billion from the NI Executive and the UK Government over the next 10 years. Deals are aligned to NI’s priority sectors and will contribute directly to the development of a much stronger and globally focused business base. The deals will also seek to develop our workforce, provide social inclusion, regenerate areas, and build new infrastructure to support NI’s economic recovery. 21
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY DfE will promote Investment, Trade & Exports by: • Push for a permanent and complete solution to end frictions brought about by the protocol; • Securing clarity on long term trading arrangements and the regulatory environment arising from EU exit; • Building on the success of Invest NI’s International Strategy, and the continued promotion of NI’s sectoral strengths across its global network, to maximise trade and investment opportunities; • Providing investment and employment support to business to help them rebuild; • Stimulating demand for local businesses including retail, restaurants and hotels; • Assisting businesses to explore and increase cross border and GB market trade and develop new markets; • Working with businesses to help them adapt to new trading conditions, and • Ensuring SMEs in Northern Ireland are provided with support and guidance to fully benefit from opportunities for cross-border growth. 22
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Investment, Trade & Exports WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Provided a Covid-19 Business & Developing a High Street Stimulus Secure additional funding from DCMS to Financial Planning Grant, which offered Scheme to provide individuals extend Project Stratum to include a up to £8,000 of support to businesses throughout Northern Ireland with a further 2,500 premises not currently ‘in operating in manufacturing, personalised prepaid card to be spent at scope’, increasing the number of eligible construction, professional services, ‘bricks and mortar’ businesses including premises can benefit from increased information and communication, or retail, hospitality and close contact broadband coverage. science and technology to engage with services. Flex and adapt employment programmes professional support. Establishing a shared DfC / Invest NI to support new job creation in response to Provided grant support to businesses team approach when engaging with changing business needs, to take via the Covid-19 Digital Selling & companies to assist in securing advantage of new investment opportunities Capability Grant. This scheme provides employment for the economically and to ensure that those most impacted funding to help local businesses develop inactive and unemployed. are included. their e-commerce & online selling Leading the cross departmental Social Invest NI will work with partners and capabilities. Economy Policy Group to deliver an stakeholders such as Enterprise NI to integrated strategic approach to the refresh and relaunch its Entrepreneurship social economy. Funding the Social Forum and develop an Entrepreneurship Economy Work Programme to support Action Plan. social enterprises to be part of NI’s Intensify support for businesses to sell to economic recovery. the GB market. Tourism Ireland marketing air and sea Roll out a new Export Health Check for NI connectivity to Northern Ireland in businesses to establish export readiness, 2021/22. ambition & support needs. Providing support to Tour Operator & Destination Management Companies Offer a new International Sales & Marketing through development of marketing Leaders Programme. assets which can be used by tour Raise awareness, ambition & confidence to operators to promote Northern Ireland export as a pathway to recovery & growth internationally.. through an NI-wide marketing campaign. Deliver a new international marketing campaign to reinforce ‘Why NI’ for international investors underlining new selling points of post EU Exit opportunites, our resilience and NI as a destination for Covid-driven new business models. 23
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Investment, Trade & Exports WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Used employment focused intervention Providing advice and guidance to NI Undertake a ‘call to action’ campaign to the programmes to safeguard and build a employers, employees and policy NI diaspora to support economic recovery wide range of employment opportunities makers on the NI Labour Market, including the appointment of Trade in the immediate aftermath of the employee relations, best practice and Ambassadors in key markets & sectors. emergence of COVID-19. compliance in response to the pandemic Expand on the ground support for NI and its impact on labour relations Delivered a locally focused EU Exit businesses selling overseas to drive exporter communications campaign focusing on Introducing a COVID Market Led Product confidence, capability and ultimately sales in key actions for business in the run up to Development Programme to support markets that align with our export sectors of 31 December 2020 i.e. Brexit Tourist attractions, venues and strength. Preparation Grants, on-line EU Exit experience providers enhance their Work in conjunction with DfC and the Resilience Tool, Advice Clinics, support products and tailor them to changed Councils to set targets for the NI Business for all NI businesses via Webinars, FAQS market conditions. Start Up Programme that provides advice and guidance on nibusiness.info. Developing a heavyweight tourism and support to people seeking to start their Doubled the capacity of our Graduate to consumer advertising programme own business. Export (G2E) programme, which builds across and NI and ROI to give consumer Work jointly with DAERA to deliver an capability of NI businesses to develop confidence and stimulate demand. Independent Strategic Review of the NI Agri new overseas markets and attract trade Delivering targeted product marketing in Food Sector. growth opportunities whilst developing high value tourism sectors including export-experienced graduates. Extending Work with the UK Department for Transport, Business Tourism, Tour Operators and G2E drives further trade growth for NI. as civil aviation is a reserved matter, to Golf. identify how we can provide support to Providing support to the Market Access airlines, to maintain and enhance NI’s Programme to stimulate and sustain domestic and international air connectivity. tourism marketing activity. Support North West air connectivity with GB Delivering Crisis Management and by Funding, alongside the UK Department Turnaround Fund support for tourism for Transport (DfT), the City of Derry Airport businesses including provision of a to London Public Service Obligation route financial and business plan review to over the next two financial years. This is support viability of the wider tourism subject to Executive agreement and DfT ecosystem. Ministerial approval. Deliver a ‘Holiday at Home’ voucher campaign to stimulate demand from NI residents to staycation in NI in support of the tourism industry. 24
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Investment, Trade & Exports WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO In the run up to 31 December 2020, DfE Delivering enhanced digital capability Carry out sectoral research on EU Exit and its Arms Length Bodies (ALBs) and presence to cross-border traders business opportunities focusing on the provided a range of support to help through the E-Merge Digital Programme. sectors where NI has a competitive business prepare and to provide guidance advantage. Funding research to deliver a NI Aerospace and training as part of their EU Exit Customer Diversification Programme to Promote and develop cross border trade to Communications Campaign. assist the NI Aerospace cluster recover support the enhancement and expansion Delivered cross-border business and build resilience. of IntertradeIreland’s support to SMEs, via development support through their trade programmes and innovation Continue to provide financial support to InterTradeIreland’s Emergency Business programmes including FUSION, Innovation assist NI companies, particularly high Support Programme. Boost, and Impact. growth SMEs, realise their export potential, Helped secure £5.7m joint funding develop export opportunities, and Deliver an “Experience Development package in May 2020 to maintain NI’s air stimulate more companies to export to a Programme” to provide grant funding for connectivity with GB mainland during initial wider range of markets. tourism experience providers to help COVID pandemic. develop their businesses. Engaging with the British Business Bank Developed “A Practical Guide to Working and other relevant stakeholders, to Tourism Ireland to undertake international from Home” and practical guidance on the encourage and promote alternative forms marketing programmes in core markets Coronavirus Job Retention Scheme’ of finance, and respond to changing when consumer sentiment indicates this is access to finance requirements during the appropriate, to increase international . economic recovery. visitor numbers to NI. Work with Tourism Ireland on a timely and strategic review of the GB Market and implement NI specific campaigns in GB when the time is right. Accelerate the development of the Tourism Data Hub to support the industry with real time data to inform decision making. 25
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Investment, Trade & Exports WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Delivered online webinar sessions to Delivering support via equity funding to Invest NI will work with partners and develop the export capabilities of all NI innovative early stage companies to stakeholders to refresh and relaunch its businesses including e-business skills. leverage additional investment and help Entrepreneurship Forum and develop an these companies develop and market their Entrepreneurship Action Plan. Project Stratum will be completed by products and services, thereby supporting March 2024 and will close the broadband Expand support through Invest NI to help external sales and employment growth connectivity gap that exists in Northern micro and small businesses (particularly in Ireland. The project will deploy Gigabit Delivery of a Website Development sectors most impacted by COVID-19) to capable broadband services to Programme for tourism businesses to overcome current economic challenges approximately 76,000 premises across receive capital grants for the upgrading of and sustain businesses while they are predominantly rural parts of Northern their websites to make them bookable planning for future recovery and growth in Ireland, providing citizens and businesses online. a post Covid-19 economy. Young, female with the opportunity to access the highest and part-time workers will be specifically broadband speeds available to consumers targeted through this support. Establish a cross-border Trade Information Service to provide a comprehensive service to firms trading goods and services across the border, ensuring firms in NI have the information and support needed to benefit from cross-border growth opportunities. Undertake a programme of research, business communications, business supports and policy work to support trade in the context of the Protocol. 26
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Building a Greener Economy In “Rebuilding a Stronger Economy”, offers the NI economy the opportunity to reduce emissions across all it is recognised that the economic build resilience, increase productivity, sectors by transforming the way recovery must be sustainable, create jobs, strengthen competitiveness we design, produce and use products. This environmentally responsible and and realise carbon, energy and cost will contribute to the UK’s 2050, net zero tackle climate change. Energy, across savings. ambitions. It will also help to eliminate power, heat and transport, accounts plastic pollution, support clean and for approximately two thirds of all By encouraging innovation in renewable inclusive growth and create jobs, many of greenhouse gas emissions and energy and low carbon technologies we which will be high-skilled. substantial investment from can help to decarbonise energy and consumers and the public and private contribute to the growth of a greener sectors will be needed in contributing economy. The Hydrogen Economy can to the UK’s 2050 net zero target. The build on our world-leading capabilities in Department is therefore leading on the renewables and manufacturing to create development of a new Energy Strategy new sustainable jobs through: hydrogen which will set out the pathway to a production using renewable energy; greener economy. hydrogen demand within the transport, industry, power and heat sectors; the Clean energy is an area where manufacture of cutting-edge new investment will increase globally. It is technologies such as electrolysers; essential that we capture and benefit export opportunities for advanced from the significant opportunities that manufacturing in global hydrogen supply exist in clean energy, that we support chains; and supporting a low carbon green innovation and grow a sustainable and hydrogen skills base. and environmentally responsible greener economy. Energy efficiency Developing the Circular Economy will help 27
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY DfE will support a Greener Economy by: • Delivering a net zero carbon energy transition; • Improving energy efficiency of buildings and industry; • Encouraging green innovation in renewables and low carbon technologies; • Developing the Hydrogen Economy and Circular Economy; • Enabling a low carbon workforce; and • Working collaboratively across Government on a green growth approach to recovery. 28
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Building a Greener Economy WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Supported the creation of a hydrogen Supporting local councils to develop Re-open the COVID-19 Energy Efficiency economy by funding NI Water to proposals for a hydrogen training hub. Capital Grant to applications in undertake an innovative Oxygen and 2021/22. This will support businesses Establish an NI Working Group to Hydrogen Demonstrator Project. This in implementing energy efficiency support NI companies gain access to UK will be the first in the UK and Ireland to measures, providing cost and carbon Government Department for Business, demonstrate how electrolysis can help savings. Energy & Industrial Strategy (BEIS) & to increase processing capacity, reduce Innovate UK funding in 2021 through Develop proposals to introduce a Green carbon emissions and improve flexibility increasing the success of NI firms in Innovation Challenge Fund that will seek in the electricity grid. accessing funds for innovative low applications from NI businesses on Delivered a contract, in partnership with carbon energy technologies. innovative low carbon technologies that DoF and SIB, for 100% renewable will place NI at the forefront of the Developing an Invest to Save Fund to electricity to be supplied to Government energy transition. finance investments in central buildings. This contract demonstrates government buildings to provide energy, Develop proposals to introduce an how procurement can be a key lever in carbon and cost savings. This project Energy Efficiency Home Retrofit Scheme the transition to a Green Economy. The will stimulate growth, create new jobs to drive energy efficiency in the NI action helps the NI Executive meet its and encourage investment in innovative building stock, providing opportunities carbon reduction targets and produces and renewable technologies. for job creation and green economic financial savings which can be growth. reinvested in public services. 29
ECONOMIC RECOVERY ACTION PLAN FEBRUARY 2021 REBUILDING A STRONGER ECONOMY Building a Greener Economy WHAT WE HAVE DONE WHAT WE ARE DOING WHAT WE PLAN TO DO Provided “virtual” technical consultancy Developing a Circular Economy Strategic Launch an Energy Strategy by the end of support to businesses to help identify Framework for NI to be published March 2021. improvement opportunities in the area 2022. Develop options to increase renewable of energy and resource efficiency driving Working with UK partners to identify and electricity investment in NI, including improvements in business target NI supply chain opportunities for extending Contracts for Difference and competitiveness. Since April 2020, offshore wind. launch a pilot Solar Photovoltaic grant support has been provided to 60 scheme. businesses to undertake 86 projects. Develop a sustainable regenerative Announced that a new 2030 renewable Tourism Strategy for NI. electricity target for NI should not be below 70%. Work with the Utility Regulator to review how regulation can facilitate economic Delivered an Energy Efficiency Capital growth in delivering the Energy Strategy. Grant to help businesses recover by building resilience through energy Develop specific targets and metrics to efficiency. The grant supported the encourage companies to enter markets purchase and installation of equipment in the clean, green or circular economy that offers greater efficiency in the use to increase sales and drive sustained of energy, providing cost and carbon economic growth. savings. 30
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