MD2817 MedCity Business Plan 2021-22

1.1. MedCity was established and funded to promote and support the life sciences sector – an innovative growth sector in London. Prior to the establishment of MedCity, there was no dedicated life sciences body in London. Specialist knowledge of, and connections with, London’s intricate life sciences ecosystem – which L&P would not have – were required to promote the capital’s life sciences expertise internationally and support inward investment opportunities.

1.2. In July 2014, the previous Mayor approved the allocation and expenditure of up to £1.125m of grant funding from the LEP Growing Places Fund as a contribution to the costs of the establishment of MedCity, over a three-year funding period.

1.3. Since the expiry of the original funding agreement with MedCity, the present Mayor has approved further grant funding to MedCity under cover of the Mayoral Decision forms outlined in the table below.

1.4. The release of GLA grant funding is conditional upon the Mayor’s approval of MedCity’s 2021-22 Business Plan, as requested under this MD. Subject to that approval, the Mayor is also asked to confirm the award of £200,000 grant funding to MedCity for the financial year 2021-22.

1.5. Subject to Mayoral approval as outlined above, a new grant agreement will govern the GLA’s funds.

2.1. MedCity’s vision is to make London the place of choice for world-leading health and life science research, development, manufacture and commercialisation. The organisation’s mission is to advance cutting-edge health and life sciences innovation in London and beyond, and in doing so support industry growth and investment, and improve health and wellbeing.

2.2. At a strategic level, MedCity’s objectives are focused on increasing the health and wealth outcomes from life sciences research and commercialisation. For example, MedCity has supported inward investment that has created jobs with a total estimated cumulative gross GVA of £8.5m.

2.3. GLA grant funding will be utilised to enable MedCity to meet its staffing costs including those of its non-executive chair, chief executive officer and chief operating officer, enabling it to undertake activities aimed at growing and promoting the life sciences sector in London. In doing so, it will seek to deliver against its strategic priorities as set out in Appendix 1, which include:

• developing and leveraging compelling health and life science networks and offers to industry that promote and demonstrate the strengths of the region, to attract inward investment

• being the leader in life sciences infrastructure and cluster development within London and the wider region, to attract inward investment

• creating productive long-term partnerships nationally and internationally for MedCity’s offers, for the benefit of the region and the UK

• developing and delivering customer-centric programmes and services.

2.4. Operational objectives that support GLA priorities in 2021-22 include:

• publishing a ‘Demand Study 2’ on the demand and supply for life science space in London; MedCity will use the study to generate both collaborations and commercial deals in London and to grow inward investment

• strengthening MedCity’s offer to the life sciences SME community, in terms of commercial and investment advice, to support company development, access to finance and specialised research communities

• further developing existing strategic partnerships, and exploring new ones, with other life sciences organisations including international cluster organisations

• scoping and testing the establishment of a new diagnostics pathway/testbed, to complement the LEAP-funded London Diagnostics programme; aimed at driving the faster development, manufacture and commercialisation of quality, evidence-based medical technologies.

2.5. During the course of 2021-22, MedCity will also progress some rescheduled activities, which had been delayed as a result of the pandemic. This negatively impacted MedCity’s international work and necessitated a strategic reorganisation to minimise operating costs and support the Covid-19 response, including diverting some resources to lead essential test-related work across London’s research universities.

2.6. MedCity currently has a mixed-funding model consisting of grant-based funding from the GLA, Research England and the European Regional Development Fund, plus a small amount of commercial income from programmes, services and sponsorships. This includes £600,000 per annum in grant income from Research England until June 2023 (£1.8m over three years – part of a joint award to MedCity and the Northern Health Science Alliance (NHSA)).

2.7. MedCity’s ambition in 2021-22 is to begin to reduce its reliance on grant funding and to draw a greater proportion of income from commercial programme services and sponsorship. MedCity will need to demonstrate financial viability in terms of both commercial income and confirmed grant funding by December 2022, at the latest, in order to sustain its operations beyond June 2023.

2.8. MedCity has made positive progress to date in generating additional income from diversified sources, although the pandemic has had an impact on its income streams. Nonetheless, MedCity’s draft 2021-22 Financial Plan (see Appendix 1) indicates that a continued significant proportion of public funding – whether from the GLA, Research England, LEPs or universities – will still be required in the short term. This income mix reflects the need for continued public funding to address deep-seated market failures, and the impact of Brexit and Covid-19, alongside a diverse range of other funding streams to support long-term financial sustainability.

3.1. Section 149(1) of the Equality Act 2010 provides that, in the exercise of their functions, public authorities must have due regard to the need to:

• eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010

• advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it

• foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

3.2. Relevant protected characteristics are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

3.3. The GLA will ensure, via the enforcement of provisions within the funding agreement, that MedCity adheres to the requirements of the Equality Act to make decisions in a fair, transparent and accountable way, considering the needs and rights of different protected groups. This will be achieved through assessing the impact that changes to programmes of work could have on people with different protected characteristics, where appropriate. The GLA recognises that, when providing grant funding to MedCity, assessing the impact on equality of proposed changes to policies, procedures and practices is not just something that the law requires, it is a positive opportunity to ensure that better decisions are made based on robust evidence.

3.4. MedCity will ensure equality of opportunity for all protected groups through the organisation’s staff recruitment and selection processes, and when organising events, in particular through ensuring MedCity events are accessible for people with disabilities.

3.5. The GLA’s ‘Equality, Diversity and Inclusion Evidence Base’ identifies that young women are less likely to study science, technology, engineering or maths (STEM) at A-level. MedCity will therefore continue to consider opportunities to promote female entrepreneurship at MedCity-facilitated/hosted events, to address the current under-representation of women in the STEM sector.

3.6. MedCity has engaged additional staff resource to focus MedCity's work on equality, diversity and inclusion. Working with the MedCity team, the GLA will continue to explore how MedCity could support improving the representation of Black, Asian and minority ethnic people in life sciences organisations; and the representation of women and Black, Asian and minority ethnic people at senior levels in life sciences organisations. Objectives relating to this activity will be included in the funding agreement.

3.7. MedCity supports the growth of the life sciences sector, which is not only key to London’s economic recovery, but also a source of innovations that have the potential to improve the health and wellbeing of Londoners and narrow health inequalities.

Key risks and issues

Links to Mayoral strategies and priorities

4.1. Life sciences was identified in the Mayor’s Economic Development Strategy as one of seven sectors that have an especially important role to play in helping to deliver his vision for the economy. Life sciences is also a key sector in London’s recovery from Covid-19. The sector has attracted investment due to its essential role in the pandemic response. Alongside the direct economic and public health benefits that a strong life sciences cluster provides, the sector also maintains many technical, administrative and other jobs in supporting roles. Examples are provided below of MedCity programmes that align with the Mayor’s priorities for the recovery of London post-pandemic.

Consultations and impact assessments, including data protection

4.2. The MedCity team has undertaken an action plan to ensure GDPR compliance. There is currently no data sharing between the GLA and MedCity.

Conflicts of interest

4.3. There are no notable conflicts of interest to declare for officers involved in the drafting or clearance of the MD.

5.1. The proposed GLA Grant of up to £200,000 for 2021-22 has been included in the GLA budget and held within the GLA’s Regeneration and Economic Development Unit.

5.2. In line with previous arrangements, payments will be made on a quarterly basis subject to satisfactory monitoring of performance against the deliverables approved as part of the 2021-22 Business Plan. This requirement as well as the standard break clauses will be incorporated into the funding agreement to ensure that performance and risk is managed effectively during the duration of the grant agreement.

6.1. The foregoing sections of this report indicate that the decisions requested of the Mayor concern the GLA’s exercise of its general powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation in Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

• pay due regard to the principle that there should be equality of opportunity for all people

• consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom

• consult with appropriate bodies.

6.2. In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty – namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

6.3. If the Mayor is minded to make the decisions in respect of which approval is sought officers must ensure that a funding agreement is entered into and executed by the GLA and MedCity Limited before any commitment to the funding is made.

7.1. MedCity’s Operational Plan sets out actions to deliver against MedCity’s strategic priorities (see Appendix 2).

7.2. The GLA will monitor MedCity progress against a number of KPIs and project milestones, which are agreed with the GLA Governance team each year. A quarterly monitoring form is submitted to GLA Governance. The lead GLA officer attends regular project update meetings with the MedCity team. The GLA – represented by the Assistant Director of Economic Development and lead officer – also attends MedCity Management Board meetings as an observer.