The Economy Overview and Scrutiny Panel met on Wednesday 10 June 2026 to discuss the Malvern Hills Science Park and youth employment and apprenticeships in Worcestershire. The panel also reviewed its work programme.

Malvern Hills Science Park

The panel was scheduled to receive an overview of the Malvern Hills Science Park (MHSP). Established in 1998 as a joint venture between Worcestershire County Council, Malvern Hills District Council, Herefordshire & Worcestershire Chamber of Commerce (HWCC), and QinetiQ, the park was created to foster scientific and technological innovation. It has since expanded through several phases, becoming a hub for science, cyber technology, and related industries, and is part of the wider 'Cyber Valley' cluster.

The report pack detailed the park's governance structure, which has evolved since its inception. Initially, ordinary shares were vested with HWCC holding the majority, but following a law change in 2000, public ownership became less of an issue, leading to new Articles of Association in 2014. Worcestershire County Council's representation on the board is through the Deputy Leader and Cabinet Member with Responsibility for Finance, Corporate Services and Business.

The development of MHSP has occurred in five phases, with a sixth phase identified as an opportunity for further expansion. Phases 1 and 2 were completed between 1997 and 2002, financed by local authority investment. Phase 3, funded by the Regional Development Agency (RDA), was transferred to Homes England in 2010, with MHSP paying a percentage of its profits to Homes England until 2027. Phase 4 was funded by Worcestershire County Council and Malvern Hills District Council, and Phase 5 by the Council and the Worcestershire Local Enterprise Partnership (WLEP).

The report highlighted the significant economic impact of MHSP, contributing to Malvern's profile in high-tech sectors and creating a credible niche hub for cyber, defence, and advanced technology. It has supported the local labour market, boosted productivity and innovation, and attracted external investment and talent. The park's flexible accommodation has aided the survival and scaling of small and medium-sized enterprises (SMEs).

Challenges and opportunities were also outlined, including the park's size and scale in a relatively rural location, competition from larger tech hubs, and less robust public transport links compared to major cities. The impact of Covid-19 on the commercial office market was noted, though the park was reported to be 90% full with the addition of new tenants like Sofico in September 2026. The current economic climate presents further challenges, with businesses rethinking office space and delaying relocation decisions due to economic uncertainty. Funding streams were also a concern, with no guarantee of continued local authority support, and Phase 6 development requiring public sector funding.

The future plans for MHSP include attracting new businesses, enhancing offerings for existing tenants, and fostering community engagement. Developing a sales and marketing strategy to attract talent and innovative companies is a priority, alongside establishing partnerships with local schools and colleges. The viability of Phase 6 remains a concern, with consultants CBRE highlighting challenges related to rental yields and build costs. The business plan also aims to expand focus on key sectors and work with emerging government structures following local government reorganisation.

The panel was asked to consider and comment on the information provided, agree any comments to highlight to the Cabinet Member, and determine if further scrutiny was required.

Youth Employment and Apprenticeships in Worcestershire

The panel was scheduled to receive an update on youth employment and apprenticeships in Worcestershire, focusing on residents aged 18 to 24. The report detailed recent trends in youth unemployment, the local and national context, and current programmes designed to support young people into employment, education, and training.

The report indicated a challenging labour market for young people, with disproportionate effects from wider economic conditions. As of April 2026, 2,215 individuals aged 18 to 24 were claiming Universal Credit, representing 5.4% of this cohort, with significant variations across districts, notably Redditch at around 8%. Broader labour market pressures, including rising economic inactivity due to ill health and caring responsibilities, were also contributing to reduced labour supply.

Emerging pressures were noted regarding young people not in education, employment, or training (NEET). As of February 2026, approximately 602 young people aged 16 to 18 were recorded as NEET, a critical point linked to poorer long-term employment outcomes. In contrast, apprenticeship delivery in Worcestershire remained strong, with around 2,000 young people aged 16 to 25 completing apprenticeships annually. However, growth was constrained by placement availability, economic uncertainty, and policy changes.

The report highlighted a clear upward trend in youth unemployment across Worcestershire between January 2024 and April 2026, with Redditch experiencing the highest levels. This trend suggested increasing pressure on entry-level labour markets and a more challenging environment for young people transitioning into work. The consistency of these increases pointed to structural pressures, with inequality in employment access becoming more pronounced geographically.

Worcestershire's response included the Get Worcestershire Working agenda and the Health and Work Strategy, aiming to increase labour market participation and strengthen skills pathways, with a focus on young people. The Careers Worcestershire programme, launched in 2021, brings together partners to support young people into education, employment, and apprenticeships. Youth Hubs in Worcester and Redditch, developed in partnership with the Department for Work and Pensions (DWP), offer tailored support, including health and wellbeing services. In 2025/26, 504 young people engaged with Youth Hub services, resulting in 298 employment outcomes.

The report also discussed national policy direction, including the Youth Guarantee programme and the expansion of Youth Hubs. While Worcestershire's approach aligns with these principles, the phased implementation of national reforms meant that full programme rollout was not expected until autumn 2026.

Regarding apprenticeships, Worcestershire has a strong history of delivery, performing in line with or above regional and national averages. However, growth has been limited by the availability of opportunities and employer participation, which remains variable due to economic conditions. Capacity within the local training provider landscape also presented a challenge. The report noted a shift towards higher-level apprenticeships and a decline in intermediate apprenticeships, impacting entry-level routes. Apprenticeship participation among 16- to 24-year-olds remained strong, accounting for around 51% to 60% of all starts.

Government reforms to the apprenticeship system, including the Apprenticeship Levy being reformed into a broader Growth and Skills Levy, were discussed. These reforms aim to increase employer engagement, particularly among SMEs, and prioritise younger people. Worcestershire's apprenticeship promotion vehicle, Worcestershire Apprenticeships, provides a single gateway for individuals and employers, offering information, advice, and guidance.

Challenges in engaging employers were identified, including economic conditions, business confidence, and the cost difference between recruiting young people and experienced workers. The capacity of SMEs to manage recruitment and navigate funding rules was also a barrier.

The panel was asked to consider and comment on the information provided, agree any comments to highlight to the Cabinet Member, and determine if further scrutiny was required.

Work Programme

The panel was scheduled to review its work programme for 2026. The Economy Overview and Scrutiny Panel is responsible for scrutinising economy, workforce skills, strategic infrastructure, and broadband and communications. The Work Programme is part of the Council's rolling Annual Work Programme, which was discussed by the Overview and Scrutiny Performance Board (OSPB) and agreed by Council in late 2025. The panel was asked to consider the 2026 Work Programme and agree any amendments, while retaining flexibility for urgent issues. The report listed scheduled meetings for July, September, and November 2026, and potential future items for scrutiny, including the role of the Council in encouraging commercial space development, workforce planning, small parishes, and foreign direct investment.