SUPPLEMENTARY DOCUMENT 1 - Item 3 Hertfordshire Local Industrial Strategy September 2019
ogress 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
rtfordshire’s economy today: adline statistics In headline terms, Hertfordshire has: Annual growth rates in key indicators in the ost-recession period (2012-17) • GVA: £37bn (current prices) Hertfordshire England • Jobs: 725,000 A tbc tbc • Enterprises: 62,000 bs 3.7% 2.3% • People: 1.18m terprises 5.7% 4.7% • Working age population: 740,000 ople 0.9% 0.8% • Housing stock: 487,000 AP 0.6% 0.4% In recent years, it has seen growth across all using stock 0.7% 0.7% these indicators at a rate that equals or (Source: ONS datasets) 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 …became a major hub in the UK film industry (as home to War Aerodrome left a large, derelict, site near Watford… Bros) and a key economic driver for south west Hertfordshire ld British Aerospace’s major activities at Hatfield Aerodrome …Hatfield Aerodrome site was redeveloped as Hatfield Busines were scaled down and then closed altogether… Park – home to Ocado – and as the location for University of Hertfordshire which now has c, 25,000 students, world class Hatfield Polytechnic was a post-war technical college specialisms and has been identified as a highly entrepreneuria focused on engineering linked to BAe… nage The merger between Glaxo and Wellcome had yet to …GSK continues to have a substantial research presence in Stevenage and it is the 6 th biggest pharma company world-wide happen – but it led to R&D jobs being moved from Kent to Stevenage (in the mid 1990s) which became the main R&D …key developments in recent years include SBC and the Cell a site… Gene Therapy Catapult manufacturing facility which is allowing Subsequently, Glaxo Wellcome merged with SmithKline Stevenage to function more as a hub for open innovation Beecham to form GSK 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
plaining the pattern of growth Hertfordshire is an “edge of London” • Hertfordshire’s New Towns have all grown to conomy: past growth and future prospects beyond) the scale initially envisaged for them must be understood in this context • …adding in Watford and a series of smaller Hertfordshire’s economy was uniquely towns, the overall consequence is a polycentr ngineered by planned responses to the urban form on the edge of London rowth of London in the 20th Century: • the accelerated development of New • Despite the pace of growth – and its overall s Towns / Garden Cities – nowhere in Hertfordshire has the scale or • the designation of an extensive area of function of a city…Yet “city-ness” is what defines vibrant 21 st century places Metropolitan Green Belt ooking ahead, Hertfordshire will be shaped • This is because of: urther by responses to London’s 21 st Century • agglomeration effects rowth • governance and resourcing …and it is critical for the LIS
rtfordshire’s economy today: oductivity metrics oductivity in Hertfordshire relative to UK, 2007-2017 • 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) onsistent with the structure of the Industrial Strategy White Paper, we need to “dig deeper” to investigate th oundations of Productivity that help to explain performance. hese five are: Business Ideas People Infrastructure Place environment
undations of Productivity (2/4) IDEAS PEOPLE Hertfordshire performs well in business • Overall, Hertfordshire has a well qualified workin expenditure on R&D (BERD), driven by major age population corporate R&D • However, every day, it loses well qualified peopl Over the last decade, it has worked very hard to particularly to London… and it attracts a “sweat” this investment, with some success substantial in-flow from areas to the north • growth of the cell and gene therapy cluster in • Within Hertfordshire, there is a second narrative and around SBC and the Catapult… concentrated especially within the New Towns… • low aspirations Its HE sector is not as strong as elsewhere and its • inter-generational challenges wider ecosystem is underdeveloped • low attainment Major opportunities linked to Cambridge and • There is a mismatch between the skills that are London being generated locally and those which employers are seeking – particularly those operating in higher productivity sectors
undations of Productivity (3/4) BUSINESS ENVIRONMENT NFRASTRUCTURE • Hertfordshire is a good place to form a business The strategic road and rail network doubles up as at least lots of businesses are set up), but it is a ocal provision, meaning that: more difficult place in which to grow a business • radial connectivity is good, but east-west links • The challenges of “scale-up” are acute given a are poor – and yet these are critical in relation vicious circle of circumstances: to Hertfordshire’s own “critical mass” • Hertfordshire has the downsides of • congestion is a major challenge throughout agglomeration – as a high cost location in • there are pressures linked to motorway terms of sites/premises and labour junctions accessing major developments – e.g. • BUT Hertfordshire lacks the “up sides” the Enterprise Zone at Maylands frequently enjoyed by cities – e.g. a strong ertfordshire has seen a substantial erosion of its sense of place amongst businesses mployment land provision over the last decade • Provision for small and growing businesses is igital infrastructure is market-driven and generally locally-focused but generic in character dequate for current uses • Linking to infrastructure, Hertfordshire lacks high ertfordshire’s energy/utilities infrastructure is under quality office/business park provision some pressure
Foundations of Productivity (4/4) PLACE Hertfordshire has a proliferation of places with no • Across the piece, Hertfordshire is dealing with the dominant urban centre: polycentricity on the edge of consequences of a population which is growing London defines it quickly, with pressure on local services and congestion… ts New Towns – without exception – need nvestment and regeneration • In response, the performance of those places which are accommodating substantial growth will ts London Fringe area is mixed: it is doing well in be critical, most especially: he west, but struggling in the east, with many of the • Gilston-Harlow in the east of Hertfordshire attributes (and challenges) of an outer London borough. It needs a new economic vision • 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
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 opportunities for Hertfordshire – and it provides the context in which our Local Industrial Strategy will be delivered What could Hertfordshire “look like” by 2040?
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