COASTAL COMMUNITIES ECONOMIC PROSPECTUS INITIAL CONCLUSIONS - - - PowerPoint PPT Presentation

COASTAL COMMUNITIES ECONOMIC PROSPECTUS INITIAL CONCLUSIONS - ABSTRACT PRESENTATION SEPTEMBER 2019

Overview

The purpose of the Economic Prospectus is:

• To review the current economic performance of Coastal Communities and it’s relative

performance against the SELEP area

• To identify strategic action that will close the gap between the coast’s economic

performance and the wider region

• Inform the SELP Local Industrial Strategy, HM Government and Private Sector Investors

The prospectus will:

• Identify how the Coast can reduce the current gap in economic performance with the

SELEP region

• Identify approaches to increase productivity and reduce poverty
• Identify opportunities that the Coastal Communities can deliver e.g. Energy and Creative
• Provide an evidence base and ideas to inform the SELEP LIS

Project

Phase 1 – Evidence gathering and Review – June 2019 Phase 2 – Stakeholder engagement – July/August 2019 Phase 3 – Prospectus drafting – September 2019 Phase 4 – Presentation to Federated Boards – October/November 2019 Final Phase – Presentation to SELEP Board – December 2019 Current emphasis:

• Conclude Stakeholder engagement
• Prospectus drafting
• Identify the main challenges
• Scope the big opportunities
• Provide a programme of coastal activity
• Link to the Local Industrial Strategy

Our ambition: To improve the economic performance of the coast absolutely and in comparison with the wider SELEP region. To ensure our residents benefit from inclusive regeneration. To work with SELEP/Government to make policy/programmes “coast friendly”. To attract/retain business and Government interest in supporting growth in economic productivity

Emerging findings to date

The Coastal Communities all have different dynamics, but collectively have:

• A population ageing faster than the UK average
• Poor economic performance, based on GVA measures
• Productivity – 8% behind the SELEP average and 10.9% behind nationally
• High levels of deprivation measured by the Index of Multiple Deprivation
• Generally poor connection to major economic centres
• Lower than regional average performance for education and skills levels
• Higher incidence of poor health on key indicators
• High levels of private sector rented housing often in bad condition
• Difficulties in attracting inward investment

Home to over 2m people Population growing Future growth forecast 7.5% 2018-28 Contributes £85bn+ to UK Plc Home to 72,000+ VAT businesses Employs 800,000+ people Match predicted UK growth rate 2018-28:

• Coastal community surge
• Grow economy to £100.3bn pa
• Create 112,000 extra jobs
• Benefitted from investment in culture and

tourism with a positive impact

Opportunities to raise productivity

The Coastal Communities all have different dynamics, but collectively have real opportunity to:

• Address current housing conditions and deliver large scale regeneration
• Improve connectivity to key economic centres and the regional economy
• Build on the success of the Creative and Digital sector
• Develop the role of Culture to date, and into the future
• Provide conditions to create a high level Tourism offer
• Generate Energy sector growth using natural resources
• Support and grow the Maritime Sector
• Raise skills, wage levels and GVA

In recent times, many coastal towns have begun a resurgence. Coastal living has become more popular as the nature of work changes. With people seeking a better work-life balance and greater numbers retiring into the communities, the untapped opportunities of coastal locations are more apparent. Their environmental value, historic urban environment, strong creative sectors and relaxed atmosphere have made them an attractive place to live and work for many. SELEP has also recognised the Coastal Communities as potential “crown jewels”. Their potential to act as economic catalysts for the wider area is clearly apparent. The Coast has significant economic opportunities that it requires help in delivering. These will drive improved economic growth and productivity into the future.

People

• Background:
• Our people are our greatest asset and responsibility – we can grow our economy by helping those who will benefit from support
• Challenges:
• Some deprivation, associated health issues, mixed wage/skills levels, mixed/low quality housing, limited mobility, ageing population
• Opportunities:
• Regenerate relevant housing stock, raise education/skills levels, help develop business/employment
• Housing - retrofit where needed, redevelop where possible, change use as appropriate, attract investors
• Education/skills - support young people to continue education/raise skills levels to give business an enhanced workforce
• Unemployment - address issues associated with intergenerational trends in order to change future patterns
• Age - give youth new opportunities, encourage older population to re-engage in work and also to support young people
• Attract/retain entrepreneurs/executives who will encourage/stimulate business led employment/investment
• Regional / national relevance:
• Increased economic productivity
• Reduced reliance on public sector benefits/health/housing will lead to reduced costs
• We need:
• LEP/HMG support for a programme that delivers action on Housing, Health and Education via both Capital and Revenue funds

and;

• Stimulates private sector investor interest who will develop business and property

Place

• Background:
• The Coast has benefitted from investment in recent years – changing circumstances/new opportunities require further support
• Challenges:
• Low land values impact private sector risk appetite - due to lack of financial viability/profitability many schemes do not progress
• Market failure stops private sector led schemes from being delivered when financial viability impacts developers - thwarts development
• Address the Climate Change Emergency, improve connectivity to key economic centres and secure further investment in place
• Opportunities:
• Develop, protect and maintain our environment to maximise the benefits of our natural capital
• Proactively address climate change issues
• Develop a greener, cleaner even more responsible approach to energy generation and use, harnessing natural resource
• Lead work to shape a coordinated place shaping strategy with an appropriate timeframe to leverage investment
• Develop a Place Shaping Board to lead access to the UK Shared Prosperity Fund
• Explore Coastal Action Zone status / pilot zone designation
• Regional / national relevance:
• Attracting / retaining a skilled workforce, business community is contingent on addressing place issues
• If we can create a coastal community surge, we can grow the local economy to £100.3bn pa and create 112,000 extra jobs
• We need:
• Reintroduction of discounted Public Works Loan borrowing rates for capital investments
• UK Shared Prosperity Funding that recognises coastal challenges including lower rates of return, and including restarting currently

stalled projects

Infrastructure

• Background:
• Ensuring connectivity to UK / international growth driver locations is key to growing employment/coastal productivity
• Challenges:
• Employment and trade opportunities don’t create themselves - they require resource/people – so we must attract both
• Opportunities:
• Development of the Lower Thames crossing / HS1 and similar schemes will connect communities and encourage labour movement
• Communications / technology advances need embracing to support changing working patterns and encourage in-migration
• Post Brexit issues will dominate the near future – the Coastal communities have a critical role to play as opportunities emerge
• Housing stock blend can be amended to increase social housing provision and support labour movement
• Regional / national relevance:
• Growth in our coastal economy will directly benefit SELEP and the UK
• We need:
• Government to accept the House of Lords recommendation for Coastal Action Zones, including potential SELEP pilot Zones
• Continuation of the Coastal Communities Fund with higher allocation on a strategic basis and a less competitive process

Business Environment

• Background:
• High growth potential in our strong sectors and attractive locations, growth will require bespoke support offers
• Challenges:
• Attraction/retention of talent, skills, communication/technology connectivity, transport links, sector development fudning, Brexit
• Opportunities:
• Creative - development of new/expanded creative communities along the coast via skills/business/property/comms initiatives
• Tourism - development of cultural, skills, land/property and transport issues will drive growth in the visitor economy
• Maritime - development of clean/green/blue ports, energy, aquaculture, biotechnology and marine mineral resources
• Energy - grow a greener, bluer, cleaner approach to energy generation / use via use of natural resources/changing habits
• Europe - help business negotiate post Brexit issues inc strategy, regulation, workforce availability and employment
• Regional / national relevance:
• We can support/grow business and match UK future growth horizons to grow economy by £100bn+ / create 112,000 jobs
• We need:
• Specialist focus on skills across key sectors with financial support for establishment of Centres of Excellence
• Coastal Action Zone incentivization to stimulate new economic activity via increased capital allowances
• Economic Sustainability Leverage Funding to be deployed when a strategic tourism asset is under commercial threat
• Focused tax incentives/ relief to encourage inward investment from high valued sectors to locate in coastal towns and resorts.

Ideas

• Background:
• Coastal communities have a strong track record when generating and developing ideas – but we can go further
• Challenges:
• Idea development requires capable thinkers, administrators and business people – we must attract all 3 and keep them local
• Opportunities:
• Work with U9 group and business to promote/support development of an innovation led economy
• Establish/develop initiatives with HE/FE bodies order to raise skills levels, build workforce capability and leverage R & D
• Support business to identify and develop small scale local advances in R & D, process/product to seek replication / scale up
• Identify space for skills acceleration via specialist hubs and partnerships with business
• Create more locations / destinations where innovation can take place
• Leverage of our location to become a test bed for societal, geographic and people focussed innovation
• Development of Creative and Digital, Tourism and Energy sectors
• Regional / national relevance:
• Initiatives to support, generate and showcase new thinking and innovation will directly support the LIS and UK economy
• We need:
• SELEP and HMG support for business, people and place initiatives

Summary

• Project progress:
• June / December 2019 - currently drafting prospectus
• Next steps
• Federated and SELEP Board presentations Q4 2019
• Historical challenges:
• Real and well documented – must not obscure growth potential
• Future opportunities:
• People, place, infrastructure, business support to increase net economic benefit
• Regional / national relevance:
• Match UK future growth and grow economy to £100bn+ and create 112,000 jobs
• We initially need:
• £150,000 pa for 3 years to establish a Coastal programme office
• Director/Programme Manager roles to oversee initiatives/programmes
• Will ensure consistent focus on the coast and seize agreed opportunities

SELEP has recognised the Coastal Communities as potential “crown jewels”. Their potential to act as economic catalysts for the wider area is clearly apparent. The Coast has significant economic

• pportunities that it requires help in

delivering. These will drive improved economic growth and productivity into the future.

COASTAL COMMUNITIES ECONOMIC PROSPECTUS INITIAL CONCLUSIONS - ABSTRACT PRESENTATION SEPTEMBER 2019