Hertfordshire Local Industrial Strategy September 2019 ogress made - - PowerPoint PPT Presentation

Hertfordshire Local Industrial Strategy

September 2019

SUPPLEMENTARY DOCUMENT 1

• Item 3

• gress made

ntinue to gather evidence rther evidence gathering including UH Productivity Analysis; Social Enterprise and Digita pact reports both within and outside the LIS process as ongoing LEP good practice ace roundtables tchworth; Broxbourne, UH and St Albans/Creative (planned). mber and partner events, sector and places based forums/roundtables and a series of ep dives into specific challenges/opportunities to refine the underpinning evidence base efings IS and local authority leaders; cross-party groups across wider South East geography alogue going discussions with newly formed Hertfordshire Growth Board, local and central vernment and neighbouring LEPs on process, progress & emerging priorities

Annual growth rates in key indicators in the

• st-recession period (2012-17)

(Source: ONS datasets)

rtfordshire’s economy today: adline statistics

Hertfordshire England A tbc tbc bs 3.7% 2.3% terprises 5.7% 4.7%

• ple

0.9% 0.8% AP 0.6% 0.4% using stock 0.7% 0.7%

In headline terms, Hertfordshire has:

• GVA: £37bn (current prices)
• Jobs: 725,000
• Enterprises: 62,000
• People: 1.18m
• Working age population: 740,000
• Housing stock: 487,000

In recent years, it has seen growth across all these indicators at a rate that equals or exceeds the average for England…

hat was Hertfordshire like in the late 80s/early 1990s – and now?

Late 1980s / early 1990s Now lation Total population: 985,000 Total population: 1.2m rd The demise of aviation-related manufacturing at Leavesden Aerodrome left a large, derelict, site near Watford… …became a major hub in the UK film industry (as home to War Bros) and a key economic driver for south west Hertfordshire ld British Aerospace’s major activities at Hatfield Aerodrome were scaled down and then closed altogether… Hatfield Polytechnic was a post-war technical college focused on engineering linked to BAe… …Hatfield Aerodrome site was redeveloped as Hatfield Busines Park – home to Ocado – and as the location for University of Hertfordshire which now has c, 25,000 students, world class specialisms and has been identified as a highly entrepreneuria nage The merger between Glaxo and Wellcome had yet to happen – but it led to R&D jobs being moved from Kent to Stevenage (in the mid 1990s) which became the main R&D site… Subsequently, Glaxo Wellcome merged with SmithKline Beecham to form GSK …GSK continues to have a substantial research presence in Stevenage and it is the 6th biggest pharma company world-wide …key developments in recent years include SBC and the Cell a Gene Therapy Catapult manufacturing facility which is allowing Stevenage to function more as a hub for open innovation port M25 was officially completed and opened in 1986… …connectivity in southern Hertfordshire relies on a very conges M25 n Losing population and counter-urbanisation …booming global city enabled by technology

Hertfordshire is an “edge of London” conomy: past growth and future prospects must be understood in this context Hertfordshire’s economy was uniquely ngineered by planned responses to the rowth of London in the 20th Century:

• the accelerated development of New

Towns / Garden Cities

• the designation of an extensive area of

Metropolitan Green Belt

• oking ahead, Hertfordshire will be shaped

urther by responses to London’s 21st Century rowth

• Hertfordshire’s New Towns have all grown to

beyond) the scale initially envisaged for them

• …adding in Watford and a series of smaller

towns, the overall consequence is a polycentr urban form on the edge of London

• Despite the pace of growth – and its overall s

– nowhere in Hertfordshire has the scale or function of a city…Yet “city-ness” is what defines vibrant 21st century places

• This is because of:
• agglomeration effects
• governance and resourcing

…and it is critical for the LIS plaining the pattern of growth

• ductivity in Hertfordshire relative to

UK, 2007-2017

rtfordshire’s economy today:

• ductivity metrics
• Over recent years, Hertfordshire has not struggled to

(re-)generate jobs… in fact, figures for jobs growth have been strong, fuelled by rapid population growth

• BUT Hertfordshire has been less convincing with regard

to the quality of jobs growth

• These two observations link to its productivity

performance…

• Productivity in Hertfordshire has declined significantly

compared to the national average over the last decade – and yet it is the poor national performance that precipitated the UK Industrial Strategy White Paper

Source: ONS sub-regional productivity dataset

undations of Productivity (1/4)

• nsistent with the structure of the Industrial Strategy White Paper, we need to “dig deeper” to investigate th
• undations of Productivity that help to explain performance.

hese five are: Ideas People Infrastructure Business environment Place

undations of Productivity (2/4)

Hertfordshire performs well in business expenditure on R&D (BERD), driven by major corporate R&D Over the last decade, it has worked very hard to “sweat” this investment, with some success

• growth of the cell and gene therapy cluster in

and around SBC and the Catapult… Its HE sector is not as strong as elsewhere and its wider ecosystem is underdeveloped Major opportunities linked to Cambridge and London IDEAS PEOPLE

• Overall, Hertfordshire has a well qualified workin

age population

• However, every day, it loses well qualified peopl

particularly to London… and it attracts a substantial in-flow from areas to the north

• Within Hertfordshire, there is a second narrative

concentrated especially within the New Towns…

• low aspirations
• inter-generational challenges
• low attainment
• There is a mismatch between the skills that are

being generated locally and those which employers are seeking – particularly those

• perating in higher productivity sectors

undations of Productivity (3/4)

NFRASTRUCTURE The strategic road and rail network doubles up as

• cal provision, meaning that:
• radial connectivity is good, but east-west links

are poor – and yet these are critical in relation to Hertfordshire’s own “critical mass”

• congestion is a major challenge throughout
• there are pressures linked to motorway

junctions accessing major developments – e.g. the Enterprise Zone at Maylands ertfordshire has seen a substantial erosion of its mployment land provision over the last decade igital infrastructure is market-driven and generally dequate for current uses ertfordshire’s energy/utilities infrastructure is under some pressure BUSINESS ENVIRONMENT

• Hertfordshire is a good place to form a business

at least lots of businesses are set up), but it is a more difficult place in which to grow a business

• The challenges of “scale-up” are acute given a

vicious circle of circumstances:

• Hertfordshire has the downsides of

agglomeration – as a high cost location in terms of sites/premises and labour

• BUT Hertfordshire lacks the “up sides”

frequently enjoyed by cities – e.g. a strong sense of place amongst businesses

• Provision for small and growing businesses is

locally-focused but generic in character

• Linking to infrastructure, Hertfordshire lacks high

quality office/business park provision

Foundations of Productivity (4/4)

• Across the piece, Hertfordshire is dealing with the

consequences of a population which is growing quickly, with pressure on local services and congestion…

• In response, the performance of those places

which are accommodating substantial growth will be critical, most especially:

• Gilston-Harlow in the east of Hertfordshire
• Hemel Garden Communities in the west
• In addition, the performance of Hertfordshire’s rur

areas should not be ignored – they are central to the area’s quality of life PLACE Hertfordshire has a proliferation of places with no dominant urban centre: polycentricity on the edge of London defines it ts New Towns – without exception – need nvestment and regeneration ts London Fringe area is mixed: it is doing well in he west, but struggling in the east, with many of the attributes (and challenges) of an outer London

• borough. It needs a new economic vision

rtfordshire 2040

Hertfordshire is highly connected, with a very buoyant but pressurised World City to the south and the Cambridge – Milton Keynes – Oxford Growth Area to the north This juxtaposition presents challenges and

• pportunities for Hertfordshire – and it provides

the context in which our Local Industrial Strategy will be delivered What could Hertfordshire “look like” by 2040?

SCENARIO 2: Hertfordshire facilitates London’s growth Under this scenario:

• Hertfordshire continues to grow rapidly in terms
• f population, fuelling demand for local services

which means that jobs growth continues apace

• Employment land continues to be lost – so jobs

are increasingly peripatetic and/or service base

• Commuting to London accelerates – whilst the

growing numbers of jobs in Hertfordshire attract in-commuting from areas to the north

• Transport infrastructure is under pressure and

congestion is a challenge CENARIO 1: ertfordshire fulfils the potential of the Golden iangle nder this scenario: Stevenage, WGC and Hatfield together define a “science corridor” that plays a complementary and synergistic role to the overheating powerhouses of London and Cambridge Wider cluster development is encouraged and facilitated, generating a variety of jobs Skills provision is put in place to equip local people to respond Major global corporates are retained and encouraged to (re-)invest

rtfordshire 2040

y themes…and the outcomes they ed to generate

Old New Towns – new New Towns: Creative and aspirational communities for the 21st Century East/West growth corridors:

• A414: Hemel, Hatfield,

Harlow

• A505: Luton towards

Cambridge Unlocking science-base clusters in the Golden Triangle: Life sciences and advanced engineering “Beyond boundaries”: A new relationship with London – with a focus on south east Hertfordshire Space to Grow: From enterprise to business in Hertfordshire Creative sectors and creative people: from good to great in south west Hertfordshire, and investing elsewhere too Digital foundations, frontiers and futures: Re-inventing peri-urban connectivity, potential and prospects

eme 1: Digital foundations, frontiers d futures

Indicative priorities

• Ensure that digital and data analytics skills are

developed as a priority

• Advance the Living Lab venture (likely to be

focused initially on Hatfield Business Park)

• Similarly, advance Gilston and Hemel Garden

Communities as a joint exemplar of digitally- enabled living ationale Hertfordshire is very constrained in infrastructure terms and it needs to harness the possibilities of digital connectivity It has some major players in this space with an appetite for innovation University of Hertfordshire also has strong credentials in relation to data sciences

…AND challenge all other Themes to advance digital foundations, frontiers and futures

eme 2: Old New Towns – new New Towns

Indicative priorities

• Continue to deliver the vision for Stevenage

Central – and link this to employment provision

• n Gunnels Wood Road
• Deliver a new economic vision for LGC with a

strong focus on enterprise and creativity

• Advance the development of Gilston and Hemel

Garden Village as exemplary, enterprising, creative and digitally enabled communities

• Explore the possibility of creating University of

Hertfordshire “outposts” in LGC and Hatfield

• Further develop the role of the FECs in the New

Towns ationale Hertfordshire’s economic performance and character owes much to New Towns The older New Towns all have challenges:

• infrastructure
• inter-generational deprivation
• mismatch between local jobs and people
• limited cultural offer

Older New Towns need to be reinvigorated for the 21st Century A series of new New Towns are planned – they need to be delivered excellently – both in terms

• f built environment and the communities that

are created

eme 3: Unlocking science-base usters in the Golden Triangle

Indicative priorities

• Develop employment space (especially on

Gunnels Wood Road) aligned to cell and gene therapy cluster and the wider supply chain

• Develop a skills plan for cell and gene – probably

working with authorities in London and Cambridge

• Provide makerspace within a “science corridor”

from Hatfield to Stevenage and LGC

• Develop sector-specific (STEM) strategies with

FECs ationale Hertfordshire performs strongly in terms of BERD – whilst its HE assets are limited It has excelled over the last decade in growing a cell and gene cluster which is of global significance – this must flourish It has very strong advanced engineering credentials – including in UoH – and these should add depth and breadth if linked to enterprise

eme 4: East/West growth corridors

Indicative priorities

• Identify the synergies and complementarities

between two EZs (and any new employment provision at Hatfield) and promote it as a unified package

• Develop skills interventions in support of an

emerging east-west labour market

• Further develop the role of University of

Hertfordshire as an anchor institution, emphasising its strategic location on the 3H2EZ A414 Corridor tionale Hertfordshire’s economy is driven by N-S connectivity, but it needs a similarly strong E-W dynamic to garner meaningful agglomeration benefits E-W connectivity is also key to generating multipliers from planned new development – both housing-related and that associated with two Enterprise Zones E-W connectivity – and the places that are being connected – must be “digitally astute” from the

• utset

eme 5: Space to Grow

Indicative priorities

• Develop the offer provided by Hertfordshire

Growth Hub to support micro businesses with the ambition to grow quickly

• Work with local authorities – including potential

through direct investment – to ensure a better supply of grow on space (and to do so in a way that aligns with other LIS priorities) ationale Hertfordshire has a strong track record relating to new business formation and self-employment, but it performs badly in terms of scale-up Evidence suggests that non-micro (i.e. larger) businesses perform better in terms of productivity and progression Affordable “grow on” space is in very short supply across Hertfordshire

eme 6: Beyond Boundaries: A new lationship with London

Indicative priorities

• Develop an intelligent and ambitious vision for

Park Plaza in order to redefine ambitions for south east Hertfordshire

• Working with the FE College(s), develop an

ambitious skills plan – perhaps in dialogue with Epping Forest and LB Enfield – to upskill local people either side of the M25 in south east Hertfordshire tionale The eastern part of southern Hertfordshire abuts London and is the most poorly-performing part of the county It is the only part of Hertfordshire to have seen a decline in employment: it is at risk of becoming an “economic wasteland” Its skills profile is also poor, relatively and absolutely

eme 7: Creative sectors, creative

• ple

Indicative priorities

• Work with the cluster in south west Hertfordshire

– UoH as well as WB, BBC, etc. – to develop a plan for growth

• Support the development of town-level

creative/cultural strategies, in part as a route to re-energising high streets (particularly in the New Towns, but also more generally)

• Determine interventions that ensure growth is

inclusive and prioritise the empowerment of residents in realising opportunities tionale Hertfordshire has outstanding assets in relation to film and TV; these are concentrated in south west Hertfordshire and are of national significance The creative/cultural industries are of growing importance in building sustainable places at settlement level: Hertfordshire’s asset is mixed Hertfordshire needs to (attract and) retain its “cultural class”, recognising its catalytic importance within the economy

Increase productivi and grow the econo Achieve growth tha is more inclusive Build more homes sustainably Improve the efficien

• f resource use – a

adapt to the challen

• f climate change
• y themes…and the outcomes they

ed to generate

Old New Towns – new New Towns: Creative and aspirational communities for the 21st Century East/West growth corridors:

• A414: Hemel, Hatfield,

Harlow

• A505: Luton towards

Cambridge Unlocking science-base clusters in the Golden Triangle: Life sciences and advanced engineering “Beyond boundaries”: A new relationship with London – with a focus on south east Hertfordshire Space to Grow: From enterprise to business in Hertfordshire Creative sectors and creative people: from good to great in south west Hertfordshire, and investing elsewhere too Digital foundations, frontiers and futures: Re-inventing peri-urban connectivity, potential and prospects eas

• ple

tructure iness

• nment

lace

• cal Industrial Strategy timeline

Complete roundtables Publish business survey results Annual Conference

IL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

JAN

Draft strategy and HMG co- design (tbc) Further evidence gathering including Productivity Analysis; Social Enterprise and Digital impact reports Public consultation Final LIS published Ongoing learning of local economy (place/sector/themes) LEP business as usual and LIS asks campaigns