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BUSINESS PLAN 2013-2016

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CONTENTS


Foreword 4 Executive Summary

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Introduction: Liverpool Vision’s Purpose and Ambitions 10 Market Conditions 12 Impact 14 Activities Business growth and enterprise Creative and digital Marketing Liverpool International and investment Area investment The International Festival for Business 2014 Supporting delivery

16 18 20 22 24 28 32 34

Resources 36 Governance 38

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FOREWORD:

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MAYOR OF LIVERPOOL


As Mayor of Liverpool my priorities are creating jobs and attracting investment into this great city. That is the key to securing a prosperous future for our communities. Liverpool Vision is focused on making it happen. I have been closely involved in directing Vision for more than ten years. Over that time it has played the key role in transforming the city centre and returning the city to the world stage. This business plan sets out how it will continue the transformation over the next three years. The document recognises the economic challenge we face, but sets ambitious targets and shows how they will be achieved using the resources available, through a range of carefully prioritised activities. Each activity is important, but I want to highlight one here: the International Festival for Business 2014, which powerfully demonstrates Liverpool’s changing position on the national and international stage. As the key delivery body, IFB 2014 is the centrepiece of Vision’s work in this business plan period. It will be the biggest business event in the country since the Festival of Britain in 1951. Throughout June and July next year businesses from around the world will come together in Liverpool to share ideas, to learn from each other and to trade. In June this year we will stage ACCELERATE 2013, a major event in its own right, with a first class line up of speakers; this will mark the start of the one year countdown to the IFB 2014, and the latest step in our long term plan to reconnect our great city with the world. Turning vision into reality is what we do.

Joe Anderson Mayor of Liverpool

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EXECUTIVE SUMMARY

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INTRODUCTION: LIVERPOOL VISION’S PURPOSE AND TARGETS Liverpool Vision is the arm’s length economic development company for the City of Liverpool; it is a wholly owned subsidiary of Liverpool City Council. Working closely with the Mayor and Liverpool City Council, Vision the company is designed to deliver bespoke business facing services, generating new jobs and business growth, and attracting investment. This business plan sets out Vision’s intentions for 2013/16. In this period the challenge is to help the Liverpool economy grow more quickly, at a time when national growth is forecast to be modest. Vision will deliver the following key direct outputs: •

5,400 jobs created

540 businesses created

2,200 business assists

£500m of private sector investment attracted

The total impact of Vision’s activities will be much greater than the direct outputs. The company is creating an environment for growth, generating a long term impact in both the supply and demand sides of the economy. Vision also plays a huge role in transforming perceptions of Liverpool, by communicating positive messages about the city to local, national and international audiences, reaching many hundreds of businesses and opinion formers.

Activities The International Festival for Business 2014 Liverpool is staging the biggest business event in the country for generations: the International Festival for Business 2014 [IFB 2014]. Working with partners and an internationally renowned event management company, Vision is leading the development and delivery. The Festival will be staged in June and July 2014 and is set to attract 250,000 visitors. It will be a global showcase of the best of UK industry, connecting businesses to new markets, products and partners. It will play an important role in achieving the UK government’s targets to double exports by 2020 and rebalance the economy. One year before the IFB 2014, Vision will stage ACCELERATE 2013, Britain’s first festival dedicated to high-growth businesses. The day will see 1,000 delegates gather at ACC Liverpool for a two-session conference with a first class line up of speakers. It will help continue the transformation of national and international perceptions of Liverpool as a place to do business, and will be a staging post for IFB 2014.

Business Growth and Enterprise The Business Growth and Enterprise team in Vision is focused on helping existing businesses expand and entrepreneurs to start new ventures. It includes specialists in creative and digital, ICT and start-ups, giving it the ability to help a wide range of clients with different needs. The team’s work with existing businesses is focused on delivering the Liverpool element of the Merseyside Business Support Programme [MBSP], part funded by the European Regional Development Fund [ERDF]. The programme began in summer 2012 and will run until the end of 2014, generating lifetime outputs of approximately 1,000 new jobs, more than 750 jobs safeguarded and more than 1,500 business assists. The team’s start-up managers work with individuals and groups on the modular I’m Liverpool I’m Business programme. This is boosting Liverpool’s start-up rate, which is crucial if the city is to expand its business base to match its population.

Creative and Digital

Opposite: Production line, at Jaguar Land Rover, Halewood.

Liverpool has an international reputation for excellence in creative and digital industries, and Vision has a track record in proving cost effective business support for the sector, through Merseyside ACME. The team plays a key role in developing the sector, creating a significant number of jobs and businesses each year, including through facilitating access to international markets. The sector has great potential for growth and plays an important role in projecting a positive, vibrant and modern image for the city around the world. This helps makes the sector much more important to Liverpool than it is to some of the other UK core cities. 7


International and investment

Governance

Vision is leading the delivery of Liverpool’s international strategy, in partnership with the private sector, UKTI, the LEP, Liverpool Chamber, the universities and ACC Liverpool. The objectives of the strategy are to generate jobs and investment by helping local companies to increased exports and by attracting international companies to Liverpool. Vision’s work on this raises Liverpool’s profile as an ambitious, modern and business friendly city, by developing networks and promoting investment opportunities. Liverpool’s key target markets are London and the South East, China, the USA, India, and Germany, with some engagement planned with emerging economies. This activity will continue to boost the city’s investment pipeline and will lead to an increasing number of successful inward investment cases.

Liverpool Vision is the arm’s length economic development company for the City of Liverpool, a wholly owned subsidiary of Liverpool City Council, limited by guarantee. The Vision Advisory Board is composed of Mayor Joe Anderson (Chairman), Councillor Malcolm Kennedy, Councillor Wendy Simon and Councillor Nick Small. It also includes a representative of the private sector and the Chief Executives of the City Council and Liverpool Vision. The Board sets the Company’s business plan and budget, and receives quarterly reports on performance against the business plan. Members of the Advisory Board also form a finance sub-group to advise on financial, audit and risk management issues.

Area Investment The core purpose of the Area Investment team is to generate investment into the established priority areas of the city centre and North Liverpool. It will do this by working with existing businesses, networks and facilitators to create an environment that encourages investment and job creation. The City Centre Strategic Investment Framework and the North Liverpool and South Sefton Strategic Regeneration Framework set out how this will be achieved, backed by annual delivery plans. The team co-ordinates and monitors the delivery of the strategic frameworks, leading the delivery of certain key projects, supporting partners in the delivery of others, working with businesses to create conditions for growth and supporting Vision’s investment promotion function.

Marketing Liverpool Marketing Liverpool is a new division of Liverpool Vision and the city’s destination marketing organisation. Its purpose is to help generate investment and job creation in Liverpool by boosting perceptions of the city as a place to invest, visit, work, live and study. A significant part of this involves changing and forming perceptions nationally and internationally, as well as locally. Marketing Liverpool’s priorities include: delivering agreed marketing services for Liverpool and the city region, focused on the visitor economy initially, carried out in partnership with staff seconded from the LEP; managing the Liverpool Fund to support major events; continuing to develop the It’s Liverpool brand, as the city’s overarching place brand; managing Liverpool’s ‘city dressing’, ensuring an attractive welcome at key gateways and points in the city centre; and providing effective corporate marketing and communications support to Vision and Culture Liverpool.

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The Advisory Board meets four times each year, supported by regular meetings between the Mayor and the Chief Executives of Vision the City Council. Vision staff work closely with colleagues in the City Council on programme management and individual projects.

Resources The three year budget in this business plan has been prepared to maximise cost efficiencies and minimise the use of company reserves.


Operations

12/13 Actual

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 3,160

2,949

2,949

2,949

Expenditure 3,100

2,821

2,981

3,046

Surplus/(Deficit) 157

128

(32)

(97)

PROGRAMME

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 5,249

5,029

1,514

1,250

Expenditure 5,626

5,085

1,670

1,406

Surplus/(Deficit) (377)

(56)

(156)

(156)

TOTAL

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 8,409

7,978

4,463

4,199

Expenditure 8,629

7,906

4,651

4,452

Surplus/(Deficit) (220)

72

(188)

(253)

£000s

12/13 Actual

£000s

12/13 Actual

£000s

Reserves The table below sets out the effect that the budget will have on Vision’s reserves. RESERVES

12/13 Actual

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Balance B/F 1,208

988

1,060

872

Surplus/(Deficit) 220

72

(188)

(253)

Balance C/F

1,060

872

619

£000s

988

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INTRODUCTION: LIVERPOOL VISION’S PURPOSE AND AMBITIONS

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Working closely with the Mayor and Liverpool City Council, Liverpool Vision is designed to deliver bespoke business facing services, generating new jobs and business growth, and attracting investment. This business plan sets out Vision’s plans for the three financial years of 2013-16. The company’s long term ambitions remain constant from its previous business plan, although the details have been refined. Vision intends that the outcome of its activities by 2016 will support the Mayor’s vision for Liverpool to become a 21st Century Global City and the preferred choice for investment and job creation. Specific activities will ensure that: 1. Liverpool is a European capital of enterprise and growth 2. Liverpool is a major international investment location 3. Liverpool has an international reputation as England’s leading cultural and visitor destination outside London 4. Liverpool’s Mayoral Development Zones have achieved high growth rates This document examines Vision’s operating environment, sets out challenging targets and a summary of the key activities it will undertake, supported by information about resources, reporting and governance arrangements. The plan shows continuity of purpose from previous years, and that Vision has adapted to changing circumstances. It has been developed through working with private and public sector partners and has been approved by the Mayor.

Opposite: Planned Exhibition Centre, ACC Liverpool.

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MARKET CONDITIONS

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The economy

Policy considerations

The UK economy remains stagnant, in the aftermath of the

The UK Government remains focused on reducing the

two recent recessions. It grew by only 0.2% in 2012 and

national deficit by scaling back public spending and

by 0.3% in the first quarter of 2013. Evidence and analysis

encouraging private sector growth. Local government is

suggests that it will remain fragile in the year ahead. The

undergoing fundamental change and there are serious

European economy as a whole is likely to experience

questions as to what extent it will be able to provide

ongoing stress, and the Eurozone seems increasingly

non-statutory services by the end of this business plan

vulnerable. This directly affects Liverpool’s performance

period. The public resources available to help the private

and prospects.

sector generate job growth will continue to reduce, as will

The Liverpool economy suffers from long term issues: it has a higher proportion of public sector employment and fewer private sector businesses and jobs than it should, for a city of its size. Whilst the impact on the city of the initial ‘credit crunch’ in 2008 was relatively modest. (Largely due its limited exposure in the sectors most severely affected),

the number of public sector jobs in Liverpool, over the long term. Liverpool City Council and the Liverpool City Region Local Enterprise Partnership [LEP] are working to understand the full implications of this, to maximise opportunities for efficiencies and to develop new investment models.

its performance against most key economic indicators declined significantly in 2010/11. In that period the number of businesses in Liverpool declined by 880, despite the closure rate reducing – against the national trend. Liverpool’s business density rate declined from a peak of 326.9 per thousand residents aged 16+ in 2008, to 307 in 2011, compared to the Core Cities average of 366. There are grounds for optimism, however. Official sources show that business numbers increased by 225 in 2011/12, at a higher rate than the Core Cities average (1.7% compared to 1.4%), although lower than the national average (2.6%). Other sources show that this growth continued into 2012/13. The business start up rate is now growing strongly and the reduction in business density can partly be explained by a significant increase in the Liverpool population. Although there are approximately 600 fewer businesses now than there were in 2008, there are still many more than there were in 2005. The latest figures (which relate to 2011) show that Liverpool’s total economic output, measured in gross value added [GVA] now stands at £9.15bn. This is the largest it has ever been. Employment in most of the key sectors is now going up. Vision’s Foundations for Growth Survey shows that an increasing proportion (79%) of Liverpool businesses are confident that they will grow in the next five years, fewer expect to make further cuts to the number of permanent staff and 53% expect to take on new staff. Expectations of growth in the next two years vary by sector: confidence is high in the hotel and restaurant sector (55%), business services (51%) and other services (57%). Manufacturing (34%), construction (39%) and transport (39%) all report much lower levels of confidence in growth. Opposite: Princes Dock, planned Liverpool Waters development.

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IMPACT

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Vision sets targets for its ‘key direct outputs’ on a rolling three year basis. Those for 2012/15 were published in the previous business plan. Performance against them has been good, as will be set out in the 2012/13 annual review. This has allowed Vision to increase its targets for 2013/16. The chart below illustrates this.

KEY DIRECT OUTPUTS

2012/13

2013/14

2014/15

2015/16

Total

2013/16 Targets Jobs created

1,500 1,800 2,100 5,400

Businesses created

150 180 210 540

Business assists

500 700 1,000 2,200

Private sector investment (£m)

120 160 220 500

2012-15 Targets Jobs created

531 1,246 1,058

2,835

Businesses created

120 171 62

353

Private sector investment (£m)

57 119 118

294

The key direct outputs are a robust measure of Vision’s

attract approximately £1.47m of ERDF for

impact in terms of its core priorities of generating jobs,

2013-15 (£800k for the Merseyside Business Support

businesses and investment. The total value is much greater,

Programme [MBSP] and £670k to help Liverpool

however, as the outputs and Vision’s work overall create

businesses increase exports), plus further resources

an environment for growth and act as a catalyst for further

through bids that will be developed within the business

investment, generating long term impact in both the

plan period

supply and demand sides of the economy. Vision also plays a huge role in transforming perceptions of Liverpool, by communicating positive messages about the city to local, national and international audiences, reaching many

deliver significant social impact as a consequence of boosting the number of jobs, and through seeking optimum social value through its procurement

hundreds of businesses and opinion formers. Delivering

Vision carries out specific impact assessment work on major

the City Centre Strategic Investment Framework and the

projects and reports performance quarterly. In the period

North Liverpool and South Sefton Strategic Regeneration

of this business plan it will explore opportunities to quantify

Framework will attract the next generation of investment

the total impact of its activities, direct and indirect, working

into those established priority areas.

with partners.

In the period of this business plan Vision is set to: •

facilitate approximately 40 international business delegations to Liverpool from established and emerging markets, helping to attract inward investment and local companies to win more international trade.

stage targeted events attended by thousands of businesses

Opposite: Planned Royal Liverpool University Hospital.

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ACTIVITIES

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Vision has a three year programme of activities designed to deliver maximum economic impact. The activities are planned in detail for 2013/14, but largely at the headline level for 2014/16, as it is necessary to retain flexibility whilst maintaining focus on achieving the ambitions. The programme will be adjusted during the year, informed by the review of 2012/13 and quarterly performance reviews. These adjustments will be made in consultation with the Advisory Board and partners, and reflected in future business plans. The activities are presented in the following pages, under the following headings: •

Business growth and enterprise

Creative and digital

International and investment

Marketing Liverpool

Area investment

The International Festival for Business 2014

Supporting delivery

Opposite: Everyman Theatre, re-development due for completion autumn 2013.

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BUSINESS GROWTH AND ENTERPRISE

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The business growth and enterprise team was established

The team is supporting both ACCELERATE 2013 and

in its current form during 2012/13, designed to help existing

IFB 2014 by playing an active role in developing the

businesses expand and entrepreneurs to start new ventures.

content, (including the programme of fringe events),

The team includes growth managers focused on particular

promoting sponsorship opportunities and helping local

parts of the city, plus specialists in creative and digital, ICT

businesses prepare to gain the maximum benefit. The

and start-ups. The staff costs are in part supported by the

Festival will help the team generate greater outputs than

European Regional Development Fund [ERDF], which also

would otherwise have been the case. This is reflected in the

supports specialist consultancy for the programme. Work is

target outputs given below.

ongoing to identify funding for similar activity in 2015 and beyond.

The team also provides support to colleagues handling investment cases and works closely with Marketing Liverpool to ensure that its activities have the maximum

Boosting Liverpool’s business start-up rates is fundamental to driving growth

reach into the business community.

IMPACT

More than 2,000 jobs created

The team’s work with existing businesses is focused on

More than 1,000 jobs safeguarded

delivering the Liverpool element of the Merseyside Business

More than 400 businesses created

Support Programme [MBSP], supported by the ERDF. The programme began in summer 2012 and will run until the

BUDGET

end of 2014, generating lifetime outputs of approximately

£959k for 2013/14 (£290k from Vision’s core programme

1,000 new jobs, more than 750 jobs safeguarded and more

budget, with £498k from the ERDF), plus £171k for Start

than 1,500 business assists.

Up activity.

The new www.liverpoolvision.co.uk/businessgrowth website provides flexible access to support and is very popular. Vision also uses funding from the ERDF to commission specialist business support from external providers, complementing the capacity in its core team. This secures, for example, tailored advice to help local businesses

TIMESCALE

Ongoing; the MBSP runs until the end of 2015. LEAD DIRECTOR

Bernice Law

provide more low carbon and retrofit services. These contracts ensure continued quality of specialist provision. Vision will adopt this approach wherever appropriate and cost-effective. As the MBSP covers the city region, Vision will also work with partner local authorities and providers to gain maximum efficiencies from the funding, including by providing seminars and workshops for businesses across local authority borders, where appropriate. Boosting Liverpool’s business start-up rates is fundamental to driving growth. Start-up managers work with individuals who demonstrate the willingness and capacity to develop their own business, or with groups of new businesses on the modular I’m Liverpool I’m Business programme. The indications are that Vision’s work has begun to make a significant difference, with the latest figures showing that the start-up rate is increasing. 19


CREATIVE AND DIGITAL

Top: Liverpool Sound City Left: Liverpool Sound City Conference. Right: Milky Tea digital animation.

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Liverpool has an international reputation for excellence

The overall aim is to develop further an internationally

in creative and digital industries, and Vision has a track

competitive sector through providing:

record in proving cost effective business support for the sector, through Merseyside ACME. The team helps create

Specialist advice through mentoring, one to one sessions and workshops.

a significant number of jobs and businesses each year, and plays key role in developing the sector, including through

Ongoing support for Baltic Creative and the cluster of businesses in the Baltic Triangle.

facilitating access to international markets. The sector has great potential for growth and plays an important role in projecting a positive, vibrant and modern image for the city around the world. This helps makes the sector much more

A masterclass and seminar programme

Support for the kin2kin network programme, which successfully generates work for Liverpool businesses

important to Liverpool than it is to some of the other UK core cities.

Liverpool now has an impressive range of innovative digital business working in games, design, animation, and app development Music and related businesses are a priority, within the sector as a whole. Vision provides expert support to help them grow, based on many years of experience. The team works closely with Liverpool Sound City, which is focused on a three day industry conference and music showcase in May. This helps sell Liverpool as a business and leisure destination to industry leaders and allows local businesses to pitch to international contacts. The concept is being rolled out internationally, with Sound City New York and Sound City Athens (Georgia).

IMPACT

390 jobs created

80 businesses created

£10m of investment generated

Improved digital inclusion

Key messages about Liverpool as a vibrant business and cultural destination projected to national and international markets

BUDGET

£200k per year TIMESCALE

Ongoing LEAD DIRECTOR

Bernice Law

Liverpool now has an impressive range of innovative digital business working in games, design, animation, and app development. The city’s games development community is more vibrant than ever and will be boosted by the opening of the Studio School in September 2013. Vision is providing specialist support for games companies, particularly those that have emerged in the aftermath of the closure of the Sony development presence in the city. Vision has played a large part in the development of the Liverpool digital strategy and the plan to deliver superfast broadband in the Commercial District. The team will be supporting the delivery of these agendas in this business plan period. Staff are also working with a newly formed national network of digital clusters in the UK, led by Tech City, and on improving digital inclusion as part of the ‘Feel Good Factory’ programme, which is part of the Technology Strategy Board’s Delivering Assisted Lifestyles at Scale initiative.

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MARKETING LIVERPOOL

In this issue A MAN WITH A PLAN What Mayor Anderson Did Next THE WONDER STUFF Creating Alternative Universes THE LEAVING OF LIVERPOOL Cruise Terminal Success ISSUE ONE I SUMMER 2012

FORWARD THINKING Why the car in front is from Liverpool

Top: City dressing Left: Branding and design for Liverpool Literary Festival. Centre: Marketing for it’s Liverpool Right: it’s magazine, produced by Marketing Liverpool

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OPEN FOR BUSINESS Golf As An Economic Driver


Marketing Liverpool is a new division of Liverpool Vision

IFB 2014 presents an unprecedented opportunity to

and the city’s destination marketing organisation. Its

promote Liverpool and the city region as a place to do

purpose is to help generate investment and job creation

business. The recent agreement that Marketing Liverpool

in Liverpool by boosting perceptions of the city as a place

will deliver place marketing on behalf of the city region

to invest, visit, work, live and study. A significant part of this

provides a major opportunity to maximise this

involves changing and forming perceptions nationally and internationally, as well as within Liverpool. Marketing Liverpool’s priorities in this period are: •

Delivering agreed marketing services in Liverpool

Marketing Liverpool will boost the impact of every Vision

and the city region: this will be focused on the visitor

business area, in terms of key direct outputs in the short

economy sector, initially, and thereafter broader place

term and transforming perceptions of the city in the

marketing for the other key growth sectors. This will be

longer term.

carried out in partnership with staff seconded from the LEP, governed by a service level agreement. The priorities will include: -

management of the Visit Liverpool website and associated activity

-

overseas and domestic marketing

-

events and festivals marketing

-

managing Liverpool Convention Bureau activity, including managing the relationship with ACC Liverpool

Managing The Liverpool Fund, a revolving fund designed to support major events, and ensuring that they are designed and delivered to achieve the maximum impact on visitor experience and

BUDGET

£150k per year LEAD DIRECTOR

Chris Brown

Its purpose is to help generate investment and job creation in Liverpool by boosting perceptions of the city as a place to invest, visit, work, live and study.

perceptions of the city •

Developing and implementing an increasingly commercial strategy for Vision, supported by developing strategic partnerships with key private sector organisations

Continuing to develop the It’s Liverpool brand, as the city’s overarching place brand, and through working with partners to promote its values and relevance to a range of local, national and international audiences

Managing Liverpool’s ‘city dressing’, ensuring an attractive welcome at key gateways and points in the city centre, branded consistently and changing regularly

Providing effective corporate marketing and communications support to Vision and Culture Liverpool, starting at the design stage of each activity

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INTERNATIONAL AND INVESTMENT

Top: Signing of the co-operation agreement at the India launch of IFB 2014. Left: Lord Mayor of the City of London David Wootton at the Liverpool in London office. Centre: Greeting delegates to the IFB 2014 India launch Right: Vision works closely with the Mayor’s office and City Council to provide a professional and efficient service to potential investors

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Vision is leading the delivery of Liverpool’s international strategy, in partnership with the private sector, UKTI, the LEP, Liverpool Chamber, the universities and ACC Liverpool. The objectives of the strategy are to generate jobs and investment, by helping local companies to increase exports and by attracting international companies to Liverpool. Vision’s work on this agenda raises Liverpool’s profile as an ambitious, modern and business friendly city, by developing

Liverpool in China and the USA The Liverpool-China strategy is an important part of the overall international strategy. The relationship with Shanghai is central to this, especially following Liverpool’s presence at World Expo 2010; the benefits from this include ongoing inward investment from China into Liverpool’s higher education sector, and from Sam-Wa into the PEEL International Trade Centre in Wirral, with strong interest

networks, promoting investment opportunities and

from Chinese companies in taking out tenancies in the

identifying key targets.

building. Vision manages the “It’s Liverpool in China” office

In an increasingly global economy, international trade

in Shanghai and is strengthening the relationship with a new

drives economic growth. Fostering it is a priority for the

Memorandum of Understanding between Mayor Anderson

city. The number of potential markets is large and growing,

and the new Mayor of Shanghai, focused on promoting

however. Liverpool must prioritise its efforts, as developing

IFB 2014. Liverpool Super Port and post Panamax terminal

relationships with new markets is a long term job and resources are limited. Liverpool’s key targets are London and the South East, China, the USA, India, and Germany, with some engagement planned with emerging economies. This is consistent with the priorities identified by partners, particularly UKTI, Liverpool Chamber and respected economists, such as Goldman Sachs. Vision leads on delivering this strategy.

Liverpool in London London is one of the key markets in the world economy and the most important in the UK. It provides major opportunities for Liverpool. The “It’s Liverpool in London”

project will also be used to strengthen cooperation between Liverpool and Shanghai. The two cities will place their respective trade and investment support agencies at the disposal of each other’s companies, to maximise the trade and investment links. Vision also manages the “It’s Liverpool in China Business Club”, which regularly attracts more than 60 Liverpool businesses keen to increase engagement with China.

In an increasingly global economy, international trade drives economic growth. Fostering it is a priority

project, managed by Vision, will continue to play a key role helping to take advantage of this. The office provides a cost effective base in the capital for Liverpool businesses. Its client list is growing steadily and feedback has been excellent. It also helps to project key messages about Liverpool to target businesses and individuals through its growing network of contacts and vibrant event programme. This helps maximise the value of Marketing Liverpool’s campaigns. The project will also play an important role in promoting IFB 2014 to London and international audiences much more effectively and efficiently than would otherwise be possible. Funding has been secured to continue operation until 2014, with the potential to extend beyond that.

The USA still represents the largest source of FDI and most valuable export market for the UK. Vision contracts with an experienced representative in the USA, on a flexible basis. The IFB 2014 festival director, alongside directors from Peel Holdings and the University of Liverpool will promote the festival at events in Boston and Atlanta in May 2013. The events will involve specially selected business audiences and will be a crucial part of the international marketing programme for the festival. The trip will also involve meetings with Mayors from several cities in the USA, including inviting them to the Global Leaders summit of IFB 2014.

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Top: Liverpool’s relationship with Shanghai is an important part of the international strategy. Left: Cologne, twin city with Liverpool. Centre: Boston, venue for IFB 2014 USA event. Right: Brazil, key emerging market

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Liverpool in India, Germany and emerging markets Engagement with India is becoming increasingly important for Liverpool: the Indian launch of the IFB 2014 took place in January, at the Confederation of Indian Industry Summit – India’s biggest business event – in Uttar Pradesh. Working closely with UKTI, Vision and its private sector partners will use the links forged on that visit to develop Liverpool’s relationship with hundreds of Indian businesses. This will be

IMPACT

investment generated, over three years •

invest and do business. •

but the very strength of its economy means it should be

Increased numbers of Liverpool companies doing business in key markets.

Increased international visitors to Liverpool, plus stronger civic and cultural links.

Cologne. Establishing commercial relationships is the next step. Germany is one of the UK’s main competitors for FDI,

Liverpool will be on the shortlist of many senior figures in high profile organisations as a place to

Liverpool has strong cultural links with Germany, including through the longstanding twinning arrangement with

Increased profile for Liverpool in a key market, as an ambitious, modern, city where businesses can thrive.

vital for the success of IFB 2014 and will begin to transform the scale of Liverpool’s trade with India.

Approximately 2,100 jobs created and £400m of

Long term and mutually beneficial relationships developed in key markets

a priority market in the drive to help Liverpool companies boost their international trade. Liverpool Chamber is a

BUDGET

particularly important partner in this, given the significant

A total of £451k for 2012/13, of which £181k is for

role of chambers of commerce in German business culture.

Liverpool in London.

The plan for 2013/14 is to use IFB 2014 to generate more significant engagement with the German market. There are many opportunities to develop trading links and promote Liverpool in emerging markets, including Brazil, Russia and the ‘Next 11’ countries. Vision will prioritise these and engage with them as far as possible.

TIMESCALE

Ongoing throughout the business plan period. LEAD DIRECTOR

Bernice Law

Investment Vision’s work in key markets over the last two years has generated a substantial and growing pipeline of investment cases. The key task for 2013/14 is to bring some of these to a successful conclusion, as well as continuing to develop the pipeline. Vision works closely with the Mayor’s office and City Council to provide a professional and efficient service to potential investors. This involves developing bespoke propositions for individual clients, identifying an appropriate package of support, potential premises and information about the city’s labour market and quality of life. The team prepare tours for clients and showcase potential premises and sites. The team also plays an important role in handling international business and civic delegations, forming relationships and helping generate further potential inward investment.

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AREA INVESTMENT

Top: Liverpool ONE. Left: Liverpool waterfront. Right: Hope Street, one of the Great Streets.

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The core purpose of the Area Investment team is to

supporting their destination marketing and investment

generate investment into the established priority areas of

propositions and maximising their contribution to

the city centre and North Liverpool, working with existing

economic growth and job creation. This will involve

businesses, business networks and facilitators to create

working with, for example, the new Knowledge Quarter

an environment that encourages investment and job

Mayoral Development Zone Board, the Waterfront

creation. The City Centre Strategic Investment Framework

Business Partnership and the BID Company in the

[SIF] and the North Liverpool and South Sefton Strategic

Commercial District. Vision’s role will be defined and

Regeneration Framework [SRF] set out how this will be

focused around specific economic purposes

achieved, backed by annual delivery plans. The team

and outcomes

co-ordinates and monitors the delivery of the strategic frameworks, leading the delivery of certain key projects,

Great Streets: producing strategic action plans, working with partners, identifying and managing

supporting partners in the delivery of others, working with

growth opportunities and creating an environment for

businesses to create conditions for growth and supporting

investment and job growth, with an immediate focus

Vision’s investment promotion function.

on the Strand Corridor, Dale Street / Water Street and Lime Street

Liverpool city centre is at the heart of the city region’s economy; it contributes more than half of Liverpool’s economic output and almost half of its jobs

Green Infrastructure Plan for the city centre: developing an action plan and coordinating its delivery. Phase one will focus on the Knowledge Quarter

St George’s transformational project: initial scoping work leading to commissioning a masterplan

Governance: establishing governance arrangements to oversee the delivery of the SIF, including setting up and

City centre

leading the Steering Group; leading and supporting

Liverpool city centre is at the heart of the city region’s

and reporting progress to the Mayoral Development

economy; it contributes more than half of Liverpool’s economic output and almost half of its jobs. The ambition is that over the next 10-15 years its transformation will

project delivery groups; monitoring, coordinating Corporation Board, and engaging with the local business community

continue, delivering the six priority projects identified in the SIF, improving infrastructure and developing the neighbourhoods. The priority areas of work will be: •

The North Liverpool and South Sefton area is an economic

SIF: producing the 2013/16 delivery plan and 2013/14

opportunity of national significance. There has been

action plan, and co-ordinating and monitoring its

considerable progress over the last two years in realising an

implementation, including by identifying funding for

ambitious plan for the area, shared by public, private and

projects and working towards the creation of a co-

community partners. Key milestones have been achieved

ordinated funding regime

in progressing the development of major projects. The

Key projects: supporting lead partners and coordinating the delivery of key SIF projects that deliver economic outputs, including Kings Dock, Copperas Hill, Liverpool Bio Innovation Centre, Pall Mall Exchange, Waterfront Connections and a review of traffic movement and connectivity in the city centre

North Liverpool

Investment into distinctive neighbourhoods: supporting partner efforts to encourage investment, develop the strengths of the distinct city centre neighbourhoods,

area is immediately adjacent to Liverpool city centre, with seven kilometres of underused waterfront extending north to the Port of Liverpool and Sefton’s main office district. This offers significant potential for growth, reinforced by the development of the Port of Liverpool with a post PANAMAX facility, the delivery of a green infrastructure, plans to deliver new business floorspace and develop the environmental technology sector in the area, and to build the retail, cultural and visitor offer. The ambitious vision for the area is presented in the North Liverpool and South Sefton SRF.

29


Top: Visualisation of the Stanley Dock Development Left: Everton Library. Centre: Visualisation of the post Panamax facility. Right: Visualisation of the rejuvenated Everton Park

30


The priority areas of work will be: •

Other key projects and initiatives: supporting the progress of key projects led by partners, including

SRF: completing the delivery plan for 2013/14,

the Housing Renewal Programme, Anfield Stadium

including having it agreed by the Liverpool and

redevelopment, Project Jennifer, Everton Library,

Sefton councils •

Imagine Anfield and L2 Port expansion

Environmental technologies: developing a proposition to investors focused on supporting and attracting business in the sector to remain in, or move to, the North Liverpool City Fringe Area, working with partners

Governance: coordinating and supporting the new

IMPACT

programme

Steering Group, the Officer Support Network and several delivery focused steering groups and project

the projects in the SIF should create more than 30,000

Everton Park: supporting the City Council in

jobs, 15,000 of which will be during the construction

developing the park, providing a new gateway to

phase. The SIF will lead to £1.8bn of private sector

North Liverpool, and leading on the delivery of the

investment matched with £1.1bn from the public

Destination Hub, including project development and

sector, contributing £740m of net additional GVA to

securing funding •

The foundations for the long term regeneration of North Liverpool will be laid; the business plan period

space, including by identifying appropriate delivery

will see significant improvements to perceptions

routes, partners and potential occupiers, and sourcing

of the area; its environment will be materially

finance. The focus will be on Pumpfields and

improved and private investment will begin to flow;

Sandhills / Bankhall

performance against economic indicators will begin

Property fund: coordinating the development of a Council, the Homes and Communities Agency and Chrysalis RGF2 City Fringe programme: coordinating and supporting the City Council’s management of the programme, including the Eldonians Low Carbon Hub and Stanley Dock development

will be increased by at least 10,000

and developing sites to provide new commercial floor

financial incentives package, working with the City

the city region. The city centre residential population

Site and premises acquisitions and development: supporting the City Council in the process of acquiring

The city centre will begin the next phase of its continued transformation. Over 15 years, delivery of

management teams •

900 jobs created as direct outputs over three years, including 580 through the RGF II City Fringe

structures, including the North Liverpool Partnership

Beautiful North: leading the delivery of the “It’s

to improve •

The team’s work will boost the impact of other business plan activities, focused in the priority areas

BUDGET

£100k per year TIMESCALE

Ongoing throughout the business plan period; detailed actions are set out in the delivery plans for the SIF and SRF.

Football” project and supporting programme activities overall •

GreenPrint for Growth: monitoring and promoting

LEAD DIRECTOR

Ian McCarthy

the delivery of projects, including contributing to RGF2 funded public realm projects in the City Fringe / gateway area

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INTERNATIONAL FESTIVAL FOR BUSINESS 2014

Top: Prime Minister David Cameron at the IFB 2014 launch. Left: Lord Green addresses the IFB 2014 London launch audience. Centre: Liverpool Vision CEO Max Steinberg, Prime Minister David Cameron and Mayor of Liverpool Joe Anderson. Right: Charles Morgan promoting IFB 2014

32


Major business and cultural events have played a significant

with staff across the organisation and the commercial event

role in Liverpool’s recent re-emergence on the international

partner. Progress is being monitored weekly, with regular

stage: the city’s year as European Capital of Culture in 2008,

reports to the Mayor.

its award winning presence at the Shanghai World EXPO in 2010, becoming the first European city to host the Global Entrepreneurship Congress and staging the spectacular ‘Sea Odyssey’ street theatre event in 2012 were all major successes. Liverpool is both on and part of the world stage once again.

IMPACT

The transformation of Liverpool’s international reputation as a place to do business, leading to a

That is why Liverpool is the natural choice to stage the

substantial boost inward investment over the

IFB 2014, the biggest business event in the country for

long term

generations. It will be staged in June and July 2014 and

The transformation of local perceptions about enterprise as a career choice, leading to a

will be a global showcase of the best of UK industry. It

significantly increased business start-up rate

will connect businesses to new markets, products and partners, and will play an important role in achieving the

£100m of foreign direct investment into the UK

UK government’s targets to double exports by 2020 and

Increased exports for Liverpool and UK companies, contributing to meeting the government’s target to

rebalance the economy. Vision developed the IFB 2014 concept, building on the recommendation from Lord Heseltine and Sir Terry Leahy in Rebalancing Britain, their independent report commissioned by the Prime Minister, and working with partners to secure Government support. Vision became responsible for leading the delivery of the Festival, on behalf of the city region and the UK, and has made good progress to date: it has established the delivery arrangements, including procuring an internationally renowned commercial partner, developed the content concepts and has begun to sell it to the world.

double exports by 2020 •

250,000 visitors, generating £22m of visitor spend

Increased outputs across all Vision business areas

BUDGET

The total revenue cost of IFB 2014 will be approximately £12m, over three financial years (2012-15), plus capital costs of around £3m. Vision has secured a contribution of £5m from the UK government, on behalf of the city region, and is seeking to maximise private sponsorship, with some support from other public sources, including European funds. Given that the whole company will be

On 27 June 2013 - one year before the IFB 2014 - Vision

assisting with the Festival, parts of other programme

will stage ACCELERATE 2013, Britain’s first annual festival

budgets will also support IFB 2013, without contributing

dedicated to high-growth businesses. The day will see

to the £15m costs.

1,000 delegates gather at ACC Liverpool for a two-session conference with a first class line up of speakers includes Jimmy Wales, Doug Richard and Martha Lane Fox. The main events will be supported by a fringe programme over four days, helping a wide range of businesses accelerate their growth. ACCELERATE will take place one year later, as part of IFB 2014. This is an unprecedented opportunity to transform national

Over the three financial years of 2012-15 Vision is allocating around £1m from its programme budget, and will fund ACCELERATE 2013 and 2014, plus associated staff costs. TIMESCALE

Ongoing to the end of 2014/15, with a legacy programme in 2015.

and international perceptions of Liverpool as a place to do businesses, to generate trade for local businesses and to develop further a sustainable enterprise culture in the city.

LEAD DIRECTOR

Ian McCarthy

The scale of the opportunity is matched by the scale of the workload for Vision and its partners. The project is guided by an influential steering group and managed by a project director leading a small dedicated team in Vision, working

33


SUPPORTING DELIVERY

34


Marketing and Public Relations In addition to its programme activities, Marketing Liverpool also provides corporate marketing and public relations services for Vision itself. Its objective is to help each business area deliver maximum impact against its targets; the team aim to do this by providing expert advice at the

new systems to reduce duplication, and improve efficiency and communication. For example, a new online staff performance management system is being implemented in quarter one. Staff are consulted about key issues and planned changes in a number of ways, including through a formal Staff Consultative Committee.

design stage of any specific activity, and then through

Vision has recently achieved a Workplace Wellbeing

appropriate marketing, graphics and public relations advice

Charter, reflecting the active focus placed on providing

during delivery. The result is to strengthen the impact of

a positive and supportive working environment.

activities across the business.

Management and staff will continue to work together to identify opportunities for further improvement, whilst ensuring a diverse workforce and equality of opportunity.

Market Intelligence Effective delivery depends upon business activities being informed by high quality intelligence, gathered and

Information Technology and Data Protection

analysed in a timely manner. Vision needs to understand

The demands on Vision’s IT systems are increasing each

the Liverpool economy, including an up to date picture

year, reflecting the changing nature of the business,

of the size and nature of the business base, its strengths,

increased working with partners and the capabilities of the

weaknesses and trends, along with how it compares with

existing hardware. The potential to refresh the IT capacity

other cities nationally and internationally. Historically,

will be explored during 2013/14, including considering

Vision has been able to commission significant pieces of

moving to a ‘cloud’ server function. A review of IT security

research, but it has gradually moved to more efficient and

was completed in early 2013, with external expert support.

flexible methods in the last two years. This involves the

This concluded that there are no significant security risks

use of some formal datasets and formal research, working

and recommended a number of steps to improve

increasingly closely with the research and statistics capacity

processes further.

at the City Council and other partners. Much greater use is being made of intelligence from local businesses, gathered by Vision staff. A new quarterly intelligence report will be launched in quarter one of 2013/14, designed to present the latest picture from a range of pertinent market sources in an

A new client relationship management system was introduced in early 2013, greatly enhancing Vision’s capacity to engage with business efficiently and effectively. This will be rolled out across the business during 2013/14.

accessible format. The intention is to increase awareness of and exposure to the latest intelligence, to shape ongoing delivery.

Human resources and organisational development Vision has a highly motivated and flexible team of staff. The company is focused on providing the skills and structures it needs to deliver its business objectives, in an increasingly fast moving operating environment. This involves developing ever greater flexibility, as the pace of change picks up and resource levels reduce. Individual staff members are working across team and organisational structures to deliver specific projects; an increasing proportion of management is carried out using a matrix approach. Vision is supporting staff in a number of ways, including by providing time management training and 35


RESOURCES:

FINANCE

Cost Base Vision receives core operational and programme funding from Liverpool City Council. In recent years the scale of the economic challenge facing the city and the ambition of the City Council, has required the investment of more resources than the company received in core funding. This has been

consolidated, coordinated, commercial strategy for the Company during the next financial year. This approach will be much more efficient and sustainable than the recent focus on allocating income generation targets to individual budget holders; it has the potential to reduce the call on City Council resources in future years.

achieved by using the core funding to attract additional

The income generation strategy used during 2012/13 has,

resources from external sources, and through the use of

however, led Vision to change its approach to contracting

significant contributions from Vision’s accumulated reserves.

for major pieces of work. Vision has started to shift the

This use of reserves is not sustainable and must cease

balance in how it deals with risk and reward when working

during the period of this business plan. The established

with the private sector: the arrangements established with

target is to bring expenditure broadly in line with income.

the event delivery partner and the sponsorship partner

Having delivered large scale efficiencies over the last three years, principally by reducing the core staffing establishment during 2011-12, Vision will be looking to reduce costs still further, by reviewing supplies and services contracts, staffing and premises costs.

for IFB 2014 involve concessionary contracts, with a profit sharing arrangement in place with the event delivery partner. The contracts run until September 2014, so it will be some time before the commercial profits via this mechanism can be achieved and evaluated. The Liverpool in London office has delivered an early

Budget

success story in adopting a more commercial approach, by

The three year budget in this business plan is based on

reducing its call on City Council funding by implementing a

the fundamental assumption that core funding will remain

sponsorship / membership scheme.

at a consistent level throughout that period. It has been

Moving to a more commercial approach for Vision as

prepared to maximise cost efficiencies and minimise the use

a whole will take time, however, and as the contractual

of Company reserves. The programme budgets have thus

arrangements run for several years it is not appropriate to

been further prioritised, resulting in a reduction by £565,000

include income assumptions in the budget at this stage.

from 2012/13, to prevent further use of reserves beyond a viable minimum.

Savings

The budget includes significant funding from external

The budget does not include savings against the core City

sources – principally from the ERDF, RGF and City Deal; this

Council allocation at this stage. It is anticipated, however,

reflects the priority given to maximising resources. It does

that over the period of this business plan the increasingly

not include commercial income targets at this stage; an

commercial approach outlined above will begin to generate

appropriate strategy will be developed during the financial

profitable income, reducing the company’s reliance on City

year and the budget adjusted accordingly.

Council funding.

Maximisation of External Funding

Careful prioritisation and increased efficiencies have made it possible to reduce the programme budgets by £565,000, to

Vision aims to maximise the amount of funding it attracts,

get annual income and expenditure in line. Vision will seek

from all private and public sources, including European. It

to make further efficiencies by continuing to review regularly

targets potential sources to bid for funds; to match its core

its internal structures, contracts and use of information

resources where required, aiming to effectively double its

technology.

financial capacity and enable the organisation to expand and evolve its current core services . For example, its current programme is partly matched against ERDF. Commercial Strategy

Financial Management Vision’s finance function seeks continual improvement. Finances and procurement are managed through financial regulations that were refreshed during 2011/12 and 2012/13,

The recent establishment of Marketing Liverpool within

and an up-to date set of financial control procedures,

Liverpool Vision provides the opportunity to develop a

developed with advice from the auditors. Standard terms

36


and conditions were implemented in late 2011/12 to minimise the Vision’s exposure to risk.

Cost Base Liverpool Vision is the Mayor of Liverpool’s economic

A new reporting structure and suite of financial

development company, limited by guarantee; it is a wholly

management reports was developed and implemented

owned subsidiary of Liverpool City Council.

at the start of 2012/13. This ensures that budget holders, management and governance structures have up to date and accessible information to inform decision making. The company is subject to an annual internal and external audit. Formal oversight of finance, audit and risk management is through the Advisory Board, advised by a finance sub-group chaired by Councillor Nick Small, involving City Council officer support and attended by Vision’s external auditors.

Operations

12/13 Actual

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 3,160

2,949

2,949

2,949

Expenditure 3,100

2,821

2,981

3,046

Surplus/(Deficit) 157

128

(32)

(97)

PROGRAMME

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 5,249

5,029

1,514

1,250

Expenditure 5,626

5,085

1,670

1,406

Surplus/(Deficit) (377)

(56)

(156)

(156)

TOTAL

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Income 8,409

7,978

4,463

4,199

Expenditure 8,629

7,906

4,651

4,452

Surplus/(Deficit) (220)

72

(188)

(253)

£000s

12/13 Actual

£000s

12/13 Actual

£000s

Reserves The table below sets out the effect that the budget will have on Vision’s reserves. RESERVES

12/13 Actual

13/14 Budget

14/15 Indicative Budget 15/16 Indicative Budget

Balance B/F 1,208

988

1,060

872

Surplus/(Deficit) 220

72

(188)

(253)

Balance C/F

1,060

872

619

£000s

988

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GOVERNANCE The Liverpool Vision Board is composed of two Directors:

Managing the relationship between Vision and

Mayor Joe Anderson (Chairman) and Councillor Malcolm

the City Council

Kennedy. The Board sets the Company’s business plan and budget, and is supported in carrying out its functions by a small advisory group including two other Councillors, a representative of the private sector, and the Chief Executives of the City Council and Liverpool Vision,

The relationship between Vision and Liverpool City Council is fundamental to Vision existence and successful operation. It is managed through the following mechanisms: •

Advisory Board governance: both company directors

respectively. Members of this broader advisory group also

are elected representatives, advised by other

form a finance sub-group to advise the Board on financial,

Councillors, supported by Vision and City Council

audit and risk management issues.

officers. The Advisory Board meets four times each year, aligned to the corporate business planning reporting cycle

Advisory Board members

Chief Executive, specifying Vision’s role and targets

J Anderson, Mayor of Liverpool Cllr M Kennedy

An annual Service Agreement with the City Council

City Council select committees: Vision presents its business plan and a mid-year performance report

Cllr W Simon

each year to the Regeneration and Employment select

Cllr N Small

committee; reports on other issues are provided to

D Wade Smith

other Committees as necessary

G Fitzgerald (City Council Chief Executive)

The Vision Chief Executive has regular meetings with the Mayor of Liverpool and the City Council

M Steinberg (Liverpool Vision Chief Executive)

Chief Executive •

Vision’s business planning and finance staff meet with representatives of the City Council Regeneration

Company Secretary

Programmes and Finance teams each month

I J McCarthy •

Staff from Vision and the City Council work together closely on a large number of individual programmes

Registered Office 10th Floor The Capital 39 Old Hall St Liverpool L3 9PP Tel: +44 151 600 2900 Fax: +44 151 600 2970 Company no: 06580889

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and projects •

Staff from Vision’s Area Investment team meet with staff from the City Council Regeneration Development and Planning team each month



Liverpool Vision Business Plan 2013-2016