Cautious optimism about future growth prospects in Plymouth
Recent business intelligence from across the region paints a mixed picture of current trading conditions: there are glimmers of optimism about future growth prospects and business activity appears to have stabilised; however, levels remain relatively depressed overall and are yet to show tangible recovery.
In Plymouth, following a modest recovery in 2010, growth in Gross Value Added (GVA) lost momentum in 2011 echoing wider national trends.
However, the City's headline measure of local unemployment (claimant count) saw some improvements in the city in 2012. This positive momentum needs to continue into 2013, if Plymouth is to get back to pre-recession levels and further reduce the relatively high rates of youth and long-term unemployment. On the demand side, the number of jobs in the city increased in 2011, arresting two years of sharp declines. This growth was driven predominantly by a rise in part-time private sector employment, masking substantial losses in full-time jobs in the public sector. While positive in keeping individuals attached to the labour market, there are implications for Plymouth's future productivity and competitiveness. Effective rebalancing remains a significant challenge.
A deeper analysis of the city's labour market in Plymouth's Economic Review Issue 3 http://www.plymouth.gov.uk/plymouth_s_economic_review_issue_3_march_2013.pdf reveals a high degree of 'hidden unemployment', capturing individuals seeking work but not claiming and those diverted onto incapacity benefits. Furthermore, 'underemployment' is comparatively high in Plymouth, reflecting the rise in part-time working and too few suitable full-time job opportunities being created.
Cities Outlook 2013 published by the Centre for Cities, confirmed Plymouth's longer-term comparative strengths and weaknesses. Positively, the city ranked highly on: the proportion of residents with no qualifications (7.4%, ranked 6th highest); residents with no qualifications (7.4%, ranked 6th highest); postcodes with maximum broadband (79%, 10th highest); and Carbon Dioxide emissions per capita (5.1t per capita, 8th highest). Our longer term weakness in terms of enterprise and business growth were reflected in a low ranking on business births (26.7 per 10,000 population, 9th lowest) and business stock (205 per 10,000 population, 4th lowest); while our vulnerability to public sector retrenchment was evident in the ratio of private to public sector employment where Plymouth ranked 9th lowest of 64 UK cities.
Plymouth City Council leader Tudor Evans and David Draffan, assistant director Economic Development, have now issued the following summary which charts the progress that has been made the the challenges ahead.
Over the last 12 months the department has grown from 50 to 150 staff as the Council has realigned key services behind the economic strategy. This has included significant new areas of responsibility for Events, Museums & Records, Mount Edgcumbe, Arts Development and Corporate Property. We now have 4 key services within the department led by a new dynamic senior team.
Head of Economy, Enterprise and Employment- Christopher Grace
Email: [email protected] Mobile: 0758 4407241
Head of Land & Property - James Watt
Email: [email protected] Mobile: 07585 403999
Head of Strategic Development Projects - David James
Email: [email protected] Mobile: 07585 404000
Head of Heritage and Arts - Nicola Moyle
Email: [email protected] Mobile: 07899 952693
The Council's prioritisation of growth and employment has enabled the Economic Development Department to plan for and deliver significant additional capacity from April 2013. Through significant management de-layering we have invested in front line resources including:
New Enterprise and Inward Investment Team - managed by Amanda Ratsey
Appointment of a European/ Grant Funding Officer and two additional Economic Development Officers
Appointment of a Marketing Co-ordinator within the new Visitors Marketing and Events Team - managed by Jamie Yabsley
Development Project Surveyors - Additional capacity to drive major commercial development projects
Partnerships
We remain committed to working in partnership and building capacity. We have contributed new funding towards 2 important appointments. Amanda Lumley the new Chief Executive for Destination Plymouth and Tracey Guiry Executive Lead for the Culture Board. We have also provided capacity funding for the Local Enterprise Partnership.
Local Enterprise Partnership - www.heartofswlep.co.uk
The Heart of the South West (HotSW) LEP was established formally in March 2011 and covers the local authority areas of Devon, Plymouth, Somerset and Torbay. The HotSW LEP Business Plan was adopted in April 2012 and includes four key objectives: Driving productivity and enterprise; Attracting new business and investment; Maximising employment opportunities; and Promoting infrastructure to connect with markets.
In order to have local influence, each of the upper tier LAs has an identified body (in the case of Plymouth this is the Plymouth Growth Board) which allows for information to flow to and from the LEP to the local areas; this relationship is still to be fully established.
Plymouth City Council has provided support to the HotSW LEP through officer membership on many of the groups that have subsequently been set up to aid the functioning of the LEP. The Council's Leader, Councillor Tudor Evans, sits on the Board; the Head of Economic Development a member of the Finance and Resources group; and the Economy and Employment manager is a member of the Executive Group.
The HotSW is currently in the process of recruiting a new Chief Executive.
A key task for the LEP is to produce a growth plan by autumn, which will then be used to secure and allocate significant new government funding as we move towards a single pot approach following the Heseltine review.
Plymouth Growth Board
Our Strategic Economic Partnership is chaired by the Chair of Plymouth Chamber of Commerce and is responsible for overseeing the Local Economic Strategy and holding partners to account for delivery. Paul Woods will take over as Chair from Douglas Fletcher in May. In 2012 the board was realigned to better reflect the City's 6 priority sectors with Board representation as follows:
Paul Woods (Chair) - Plymouth Chamber of Commerce and Industry
Tudor Evans - Plymouth City Council
Julian Beer - Plymouth University
Phil Davies - City College Plymouth
Simon Chamberlain - Tamar Science Park
Steve Cardew (Advanced Manufacturing sector) - Kawasaki
Dawn Bebe (Creative sector) - Onshore Media
Dave Young (Business Services) - Una Group
Ann James (Health & Medical Sector) - NHS Plymouth
Dylan Kallis (Marine Sector) - Yachthaven Marinas
Duncan Currall (Tourism) - Destination Plymouth
The Board is supported by a number of working groups including:
Economic Intelligence Sub Group - Chaired by Graham Stirling
Employment Sub Group - Chaired by Graham Stirling and Ashley Beare
Priority sector coordination/Employment Skills - led by Plymouth Chamber of Commerce and Industry.
Jobs Task Force - see Plan for Jobs below
A key focus of the Growth Board in 2013/14 will be overseeing the refresh of the Local Economic Strategy.
Destination Plymouth - www.visitplymouth.co.uk
Created in 2010 Destination Plymouth is responsible for driving the Visitor Economy. Its unique model brings together the City's 2 Business Improvements Districts under a single umbrella to drive visitors into the City centre and Waterfront. The City adopted an ambitious Visitor Plan in 2012 www.plymouth.gov.uk/plymouth_visitor_plan.pdf which sets out a fully funded plan through Destination Plymouth to create 4000 new jobs and drive visitor numbers by 20% & spend by 25% by 2026.
Destination Plymouth has just appointed Amanda Lumley to be its first Chief Executive www.plymouth.gov.uk/newsreleases?newsid%3D308226. Amanda's role is to implement the Visitor Plan, driving visitors, through improved visitor marketing and events.
Chaired by Duncan Currall the Board Directors are as follows:
Duncan Currall (Chair)
Tudor Evans - Plymouth City Council
Tracey Lee - Plymouth City Council
Jane Chafer - Plymouth University
Paul Woods - Plymouth Chamber of Commerce
James Brent - Akkeron/PAFC
Nathan Cornish - Urban Splash
Richard Davis - Plymouth City Centre Company
Chris Arscott - Plymouth Waterfront Partnership
Steve Warner - Brittany Ferries
Nigel Godefroy - Longhouse
A key focus for 2013 will be developing Plymouth events and marketing for day visitors. We have an exceptional events calendar with many new and exciting events in 2013 (http://www.visitplymouth.co.uk/whats-on) including the Rolex Fastnet, Routes des Princes, History Month and the Big Day Out. We will also be developing a new project 'Telling Stories' which look at how the City tells it's amazing stories and provides high quality visitor interpretation.
Coastal Communities - Destination Plymouth working with the City Council successfully bid for £650,000 to bring Commercial Wharf back into life and introduce a new cycleway across the entire waterfront to Royal William Yard www.plymouth.gov.uk/newsreleases?newsid%3D307217
Plymouth Culture Board - http://www.plymouthculture.org/
The Culture Board is chaired by Adrian Vinken and over the last 12 months has been strongly championing the role Culture can play in transforming major cities. The Culture Board is also leading on Plymouth's City of Culture bid.
The Economic Development Department, Arts Council and University of Plymouth have jointly funded an extension to the Executive Director post allowing for a further 2 year extension. The City Council and the University have also each provided £20,000 pump priming funding to support the development of a City of Culture bid.
The City of Culture competition provides a major opportunity for Plymouth to showcase its cultural ambition nationally as part of a roadmap to Mayflower 2020. The competition is a major economic driver with this year's winner Derry/Londonderry looking to create over 2000 jobs in 2013.
The bidding process requires an outline bid by the end of April with a fully costed bid by September. The Culture Board has appointed Tracey Guiry ([email protected]) to co-ordinate the BID. More information can be found out at: http://www.cityofculture2013.com and https://www.gov.uk/government/news/competition-begins-to-find-2017-uk-city-of-culture
The City Council is fully committed to the City of Culture and has seconded staff into the bid team.
The Culture Board's members are as follows:
Adrian Vinken (Chair) - Theatre Royal
David Coslett - Plymouth University
Phil Gibby - Arts Council
Bob Sharpe - SWFTA
Dawn Bebe - Onshore Media
Douglas Fletcher - Plymouth Chamber of Commerce
Cllr Peter Smith - Plymouth City Council
David Draffan - Plymouth City Council
Sue Kay
Richard Bayly
Economic Development Update 2012/3
Many of the activities of the ED Department are not visible as we work confidentially with many of Plymouth's existing companies as well as potential investors. However, some of the high level outputs delivered in 2012/13 are set out below:
Supported the creation of 1,102 jobs
Supported the safeguarding of 426 jobs
Secured £2.3m direct funding
Secured £13m indirect funding
20 property deals enabling a £150m development pipeline
Commercial estate occupancy of 95% with 88 lettings (focus on manufacturing)
24 major Inward investment enquires
Attracting the Money Group to Plymouth with 300 new jobs to be created
Ensuring 93% of the City now has access to high speed broadband (88mbps)
Supporting successful Plessey and Plymouth University Regional Growth Fund bids
Securing with partners SW Marine Energy Park status
Attracting 265k unique visitors (95% increase) to Visit Plymouth website
Attracting125,000 museum visitors
Plan for Jobs www.plymouth.gov.uk/plan_for_jobs.pdf The plan for Jobs was launched in January 2013 and sets out a detailed action plan to create over 2000 jobs in 2 years. Produced by a cross sector Task Force, the plan is an emergency response to the current economic climate, accelerating and unblocking projects. The plan should not be seen as a replacement to the current economic strategy. The plan contains 19 projects with a further pipeline of 45. The taskforce membership is as follows:
Cllr Tudor Evans (Chair) - Plymouth City Council
Professor Julian Beer - Plymouth University
James Brent - Akkeron Group
Simon Chamberlain - Ultimate Succession & Tamar Science Park
Ian Brokenshire - KMPG, Chamber of Commerce and PABC
Phil Davies - City College Plymouth
Peter Flukes - Wolseley Trust
Bev Hurley - YTKO (including Outset Plymouth)
Roger Pipe - Millfields Trust
Clive Turner - Plymouth Community Homes
Michelle Virgo - Zebra and Plymouth Social Enterprise Network
Good progress has been made in the 3 months since the plan has been launched:
Regeneration of the West End - work has started on the £7m Theatre Royal redevelopment creating 30 construction jobs.
Development of Plymouth Pavilions and Home Park - plans for the development of Home Park are expected to be submitted by the end of April.
Get Plymouth Building Programme - the council has fast-tracked 132 homes in Notte Street; 130 at Unity Park, Efford; 85 at St Augustine's in Alexandra Road; and 58 on the latest phase of the Vision site in Devonport.
Low Carbon Housing - CornerstoneZED have applied for full planning permission for up to 91 homes.
Provision of Enterprise Hubs - All three enterprise hub projects are progressing well with PCC acting as guarantor for Growing Places Loans.
Apprenticeship Training Agency - PCC have secured and allocated the £100k to help fund the project, which will act as a broker for SMEs wanting to take an apprentice for the first time.
Making Waves - A project manager has been appointed to take the project forward. Launch event on 27 April. Phasing plan is being developed.
Grants for Plymouth Businesses - UOP and WMN Growth Fund Round 2 now open for business.
Outset Finance - This project has been renewed for a further 2 years (April 2013 - March 2015) and will operate alongside Outset Plymouth and Enterprise Coaching.
Development of Growth Acceleration and Investment Network (GAIN) - Portal is running smoothly with regular updates at http://www.gaininbusiness.com/.
Broadband Connectivity - We have assembled £310,000 for a new digital inclusion project. According to Ofcom Plymouth now has 93% coverage of superfast broadband across the city which puts us 10th in the UK for coverage. Boosting local procurement - PCC, working with the FSB and Chamber of Commerce will be running training in how to do business with PCC for local SMEs and businesses. PCC have also developed a local procurement schedule that recognises the importance of the Council supporting local SMEs and doing business with them.
Building for jobs investment fund - £20m investment fund officially launched by PCC.
Urban Enterprise
The Urban Enterprise programme - totally free to Plymouth residents - has been extremely successful in establishing the building blocks for 'would be' entrepreneurs in deprived areas achieved through the commissioning of business support projects delivered by Working Links, Outset, Peninsula Enterprise and the South West Investment Group (SWIG).
Over 200 new jobs have so far been created to date (2010 -2012) and evidence that it is working is borne out through increased self-employment rates between 2010 and 2011. However Plymouth still remains a relatively deprived city with income and employment deprivation rankings remaining high pointing to the continued need for the Urban Enterprise programme.
The next exciting phase of the programme (2013 - 2015) will see the continued delivery of the business support projects and also deliver 3 new enterprise hubs creating over 300 jobs creating a lasting legacy for two deprived wards of the city. The City Council has agreed to support the development of the first Hub at Millfields by acting as guarantor. A similar decision will be taken in relation to Ocean Studios at the May meeting of the Council's Cabinet. http://www.plymouth.gov.uk/newsreleases?newsid%3D308485
1000 Club - www.1000club.co.uk
The 1000 Club campaign, part of the recently launched Plan for Jobs, aims to recruit 1000 companies in the Plymouth area to commit to support young people into employment, whether that be through work experience, apprenticeships, graduate internships or employment. The efforts of the 1000 Club members are giving the young people of the city the opportunity to gain valuable workplace skills and ultimately improving the employability of the next generation of the city's workforce. To date, the 1000 Club has led to the creation of 262 full-time jobs, 92 apprenticeships, 27 graduate internships and 85 Get Britain Working placements and 22 school work experience opportunities.
If you think that your company could support a young person in some way please register on the website or contact Elaine Budd, the Priority Sectors and Employment and Skills Co-ordinator on 07712 586060 or Plymouth City Council on 01752 305429.
'Building for Jobs' - Capital Investment Fund
As part of the Plan for Jobs, a new £20 million Building for Jobs Investment Fund has been set up which aims to unlock stalled development and public infrastructure to create new jobs and lever in further public and private sector capital funding for the city. The resources of the Investment Fund are derived, initially, from Council sources. These funds are public funding and will be a part of the Council's capital programme. For more information:
http://www.plymouth.gov.uk/newsreleases?newsid%3D306625
2013/14 priorities
In 2013/14 we will be maintaining our strategic focus on job creation and growth. In 2013 It will be more important than ever to work with partners to maximise the opportunities for Plymouth flowing from the Heseltine Review and the move towards a single pot approach to economic development funding (including EU transition status). There are a number of major transformational projects that will define our delivery over the next 12 months and some of these are set out below:
Local Economic Strategy Refresh
To inform the development of the Plymouth Plan, the Plymouth Growth Board will be reviewing the city's Local Economic Strategy (LES) over the coming months. Accepting that the fundamental drivers of the LES remain valid, the review will involve an update of the evidence base that underpinned the original strategy to reflect the changes in the economic landscape since 2006, and a subsequent refocusing of priorities and actions. This will help give real impetus to a more concise set of interventions which will deliver the greatest economic rewards for the city.
Plymouth City Deal
Plymouth is set to be given new powers and freedoms to help grow the regional economy after successfully bidding for a Government City Deal. The Government has announced that Plymouth is one of the City Deals that will be fast-tracked for early agreement after it submitted an Expression of Interest to the Government in January.
More than anything it is an opportunity to ensure Plymouth and its surrounding area up their game by concentrating on one economic sector - marine technology, including renewables, science and supporting technologies - where we are already showing the potential to be world leaders.
The Government will be helping us make this happen and this could include:
Cutting their own red tape.
Making it easier for us to access funding or a guarantee scheme to help support major infrastructure schemes.
Maximising the use of national and local public sector assets.
Help us plan and redesign services such as the development of export and investment strategies.
Plymouth's City Deal aims develop the region's maritime assets and capabilities by creating an industry cluster and creating jobs through the commercial application of marine sciences, marine renewable energy and maritime technologies. The bespoke part of the City Deal has 3 strands:
Creating a marine technology production campus at South Yard which would enable marine-related firms to link ideas, research, development and testing and enable large scale industrial production.
Developing an international investment and export pilot with UK Trade and Investment (UKTI) to prepare and connect businesses with export markets.
Support the development and commercialisation of fledgling marine science businesses by bringing together the knowledge, research and development facilities the university and private sector. Building on GAIN this would nurture businesses and support them in commercialising research and accessing EU business growth programmes.
The Plymouth City Deal proposal is supported by the Heart of the South West LEP, Plymouth University, Devon Country Council, Cornwall Council, Cornwall and Isles of Scilly LEP, West Devon Borough Council, South Hams District Council, Torbay Council, City College, Plymouth, South West Marine Energy Park (SWMEP), Plymouth Chamber of Commerce and Industry, Babcock, Princess Yachts and Plymouth Marine Laboratories.
Britain's Ocean City
Following the launch of the City's new branding in March, the priority is now the effective roll out and implementation. Brand Consultant Peter Jones is working with Destination Plymouth and the City Council to provide a brand toolkit and roll out plan. As part of this process there will be a number of workshops working with the Chamber of Commerce and other key stakeholders. Now that the brand has been launched with the City's new 5 metre tall road signs http://www.plymouth.gov.uk/newsreleases?newsid%3D310372 the next focus of the roll out will be on the City's summer events programme and visitor marketing led by Amanda Lumley.
City of Culture
Plymouth Culture Board, with the partnership and support of Plymouth City Council and Plymouth University, have entered Plymouth in the competition to host the prestigious title of City of Culture in 2017 - but we cannot do it without the support of the businesses, organisations, communities and individuals who live and work in the city.
We will be working over the next month to put together a bid which reflects our ambitions for the city and which catalyses the passion, inspiration and innovation we know the city holds. We aim to create a real and positive impact for our residents and visitors and create a step-change in the culture of our city which will keep delivering benefits in the long-term.
The competition is designed to use culture and creativity as a catalyst to transform communities and as such matches our vision to develop Plymouth as a successful, major city and destination of the future. Our city holds a wealth of opportunity, from its unrivalled history and heritage to its year-round programme of contemporary cultural events and festivals, including the planned celebration of the 400 year anniversary of the sailing of the Mayflower in 2020.
Plymouth has been working hard to invest in its cultural infrastructure and make the city a wonderful place to live and work and we think the City of Culture presents an opportunity to enhance that work even further.
City Centre
The City Centre will be a major focus for the department in 2013/14. The current state of the City Centre is a significant concern as Plymouth has been affected by the spate of closures of national retail chains including Woolworths, TJ Hughes, Comet and Disney Store.
Working with the City Centre Company the Council has established a City Centre task force chaired by Councillor Mark Lowry to prioritise actions. Over the past few months we have been focussed on meeting all our institutional investors, major landlords and retailers to discuss investment plans as well as targeting outstanding maintenance. Over the next 12 months we will looking to maximise the benefits to the City Centre from the refurbishment of the Theatre Royal and Civic Centre, considering the public realm in Old Town Street and launching a campaign to support independent retailers.
Derriford
In April the Council will begin the process of securing a development partner to work with the Council to develop the City's northern growth hub at Derriford. This will include a new district centre, up to 3000 homes, new community facilities and significant employment land. (www.plymouth.gov.uk/newsreleases?newsid%3D309115). Derriford is an essential part of the City's growth plans accounting for 12% the Plymouth's of future population growth, 10% of the future homes and 30% of future jobs.
Strategic Property Review
The Council have commissioned Jones Lang LaSalle, as part of the Local Government Association's Capital and Assets pathfinder programme, to undertake a strategic review of the City Councils property assets. The review has been commissioned to ascertain how efficiently the Council is using its land and buildings and will transform the way the Council views its property assets, providing a long term framework on which to base key portfolio decisions. This will be obtained by creating best value and developing a strategy with a view to making efficiency gains and importantly the continued promotion of economic growth, jobs and prosperity. The strategy will also address how the portfolio is managed and developed to follow co-operative council principles. The review will deliver a property strategy document and action plan by May 2013.
Direct Development
Plymouth City Council historically has a good track record of proactively delivering commercial workspace through direct development. This has led to the provision of a longstanding and valuable commercial property investment portfolio which has also provided employment accommodation for SME businesses. However it is clear private speculative development has dried up as commercial bank lending is restricted. This will in turn reduce the availability of vital grown on space for manufacturers. The Council is therefore looking to invest in developing new employment units by using its capacity to borrow at historically low rates, and using key sites already in its ownership for development.
One of the first sites the Council is looking at is a 3.09ha (6.8 acre) development site at Langage Science Park. This scheme is likely to comprise of high quality, flexible workspace of circa 2,750sq m (subject to further feasibility and detailed design work). The proposed expansion of Langage Science Park will help create and safeguard new job opportunities as well as promoting growth, and providing PCC with a longer term revenue stream.
New Community Economic Development Trust
Following a detailed assessment, there is clear evidence that the north of the city needs to attract additional investment, regeneration and services, which the Council considers can best be delivered through the provision of a Community Economic Development Trust (CEDT). The Council appointed Locality, as a specialist CEDT advisor, who have validated the Council's assessment of need and the potential for the CEDT to create jobs and other significant benefits.
CEDTs develop sustainable businesses that create local jobs in a defined area, involving support for community development and business development advice. They help wealth to be created and kept local, encouraging all income - whether CEDT business surpluses or community income - to be reinvested for community benefit, leading to a more sustainable, cost-effective and value for money approach to development. National examples include the Coin Street Trust in London, the Halifax Opportunities Trust and the St Peters Partnership in Manchester, amongst many others.
A Cabinet report was approved on 15 January, which has resulted in an allocation of £50,000 to complete appropriate studies into potential market opportunities, whilst also holding 11 PCC-owned sites for potential transfer to the CEDT.
We have prepared a detailed programme to progress the CEDT's development and in May plan to begin to engage with local residents and their community to build their capacity and ensure they receive the benefits of the CEDT's development. www.plymouth.gov.uk/newsreleases?newsid%3D305502
Unemployment
Unemployment remains a significant concern and, whilst overall numbers have reduced over the past 12 months, there have been 2 concerning trends with an increase in both the numbers of 16 to 24 years olds out of work and those unemployed for more than 12 months.
Through the employment sub group of the growth board we will continue to work with employers and work programme providers to support people back to work. Key initiatives over the next 12 months will include the Plan for Jobs, further development of the 1000 club, the creation of a new Apprenticeship Training Agency, work experience programmes, Making Waves apprenticeship initiative, employability curriculum framework, digital inclusion project and Employer Ownership of skills bid focussed on the marine sector.
Other activities
We will of course continue to drive forward a wide range of existing projects including: the development our aftercare programme for major employers, Tamar Science Park, Bickleigh Down green employment hub, the History Centre, Plymouth Business Constellation, Major Museums Partners Programme, Digital Plymouth, Devonport Taskforce and of course the Plan for Jobs.
There are of course many other projects being led across the council which will positively impact upon the city's economy. These include work on flood prevention, rail resilience, connectivity and lobbying activity.
