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Economic Growth Plan 2020

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Economic Growth Plan 2020 Economic Growth Plan 2020 - 2024 DRAFT FOR CONSULTATION Date: October 2020 – Version 21. Contents Foreword ............................................................................................................................................................................................ 3 1. Executive Summary ................................................................................................................................................................. 4 2. Our Vision ................................................................................................................................................................................. 6 3. Measures of Success ............................................................................................................................................................... 6 4. Policy Context ........................................................................................................................................................................... 7 5. Key Priorities ............................................................................................................................................................................ 9 Supporting Business Growth .................................................................................................................................................... 10 Supporting early stage, high growth businesses .................................................................................................................... 12 Encouraging investment in Skills .............................................................................................................................................. 13 Encouraging Investment in Strategic Infrastructure ............................................................................................................... 16 Encouraging International Trade ............................................................................................................................................... 17 Encouraging investment in Collaborative R&D ....................................................................................................................... 18 6. Next Steps ............................................................................................................................................................................... 19 Foreword It may at first glance appear strange timing to launch an ambitious economic growth plan while the national economy is feeling the effects of a global pandemic. And indeed at the time of writing this plan, the full effects of Covid-19 on the economy are not fully understood, but forecasts are pointing towards one of the worst periods of unemployment since the great depression. There is no doubt that Covid-19 has had a tremendous impact on our borough and brought heartbreak and anxiety to many. It is our belief that it is precisely at times like this that we need to actively plan and marshal our resources to support our communities as effectively as possible. In response to the pandemic we have put in place our own economic recovery action plan to support businesses in the Basildon borough and we are working with our neighbouring councils across South Essex on a detailed Covid-19 Growth and Recovery Plan. This economic growth plan goes further and looks to longer-term ambition, focusing on the essential building blocks that need to be in place – and that we can act on now – to give the borough the greatest chance of success in the coming years. Measures such as investment in infrastructure, action to address the skills gap that holds many of our young people back, renewing our high streets and town centres, encouraging inward investment and international trade. Basildon borough has many advantages that put in a strong position – we are well-connected, sitting at the heart of the A127 growth corridor and the Thames Estuary Growth Area, we have land to support economic growth, we have a long tradition of advanced engineering and innovation, a larger concentration of ICT jobs than anywhere else in Essex and a higher rate of business start-up in than anywhere else in Essex. We have our challenges of course – the borough has a high levels of inequality, low attainment and pockets of real deprivation. This plan is a major opportunity to address these challenges and ensure that everybody benefits fairly from growth. So we are proud to stand confidently by our ambition set out in this plan that by 2024 Basildon will be a vibrant, resilient and inclusive economy, underpinned by high performing firms. We have set out a practical and achievable agenda to deliver this vision and – whether as a resident, investor, developer, entrepreneur, educator or community leader – we look forward to working with you to make this endeavour a success. Councillor Gavin Callaghan Leader, Basildon Council Councillor Aiden McGurran Chairman, Economic Development & Recovery Committee 1. Executive Summary 1.1. In 1946, the UK government passed the New Towns Act giving rise to the establishment of Basildon, with a grand ambition to create homes and jobs in places that were still just names on a map. 1.2. Fast forward to 2020, and Basildon has the biggest economy in Essex with £3.9billion of total value-added accounting for 14.7% of GVA in the county. In the whole Thames Estuary, only Canary Wharf has a bigger economy. 1.3. In 2018, the total population of Basildon was an estimated 185,862 people making it the second largest local authority area in Essex in terms of population size. With 411 businesses per 10,000 residents, Basildon is ranked 9th in the country for number of businesses per 10,000 residents1 and 10th in the country for the proportion of private sector jobs. 1.4. The purpose of this plan is to align with other enabling and supporting programmes to deliver our planned outcomes and guide future policy interventions in the field of economic development over the period 2020-2024 Our Challenges 1.5. Despite the impressive contribution that Basildon makes to the UK economy, the Borough is not without its challenges. For example, there are very challenging issues with regard to social inclusion, skills and the labour market; • Centre for Cities research into the inequality of UK cities found that Basildon is the joint 5th most unequal city in the UK2. • Basildon is also ranked 61st out of 63 urban conurbations in the UK for residents with higher-level qualifications3. • Basildon suffers from a skills shortage which has led to many jobs in established and emerging high-value companies being taken up by the non-resident workforce who commute into the area. • In addition, in the 2019 Indices of Multiple Deprivation the Basildon was ranked 100 out of 317 lower tier authorities in England (where 1= most deprived). This places Basildon in the bottom 40% of most deprived Lower Tier Local Authorities (LTLAs) nationally. 1.6. Far too many people suffer from low pay, low job security and low status jobs. According to the Joseph Rowntree Foundation over 50 percent of people living in poverty are in working households4. 1.7. The impact of Covid-19 is likely to further exacerbate these issues, as more people are made unemployed and/or face economic hardship, particularly in those sectors most likely to be affected (Accommodation, Food Services, Entertainment, Construction & Education5). 1.8. Whilst raising the economic growth benefits for all residents could have historically been achieved by raising the skill levels in our low value sectors and improving access to skills and development opportunities for all residents6, the impact of Covid­ 19 has made this even more challenging. 1.9. That said, reducing inequality and deprivation can drive growth. Investment in social infrastructure – including public health, early years support, skills and employment services – can go hand in hand with investment in business development to improve productivity and living standards. 1.10. Encouraging firms to support inclusive growth, by ensuring businesses support local supply chains; create job opportunities; and ensure employees are paid a fair wage, can also help ensure residents feel the full benefit of future growth. 1.11. This plan seeks to achieve two linked aims - of supporting the development and growth of businesses in Basildon and ensuring the full benefits of the ensuing growth that is stimulated impacts positively on all the residents of Basildon. Plan Structure 1.12. This Economic Growth Plan for Basildon is a strategy which builds on the scale of ambition that led to the formation of Basildon in 1946 and seeks to guide the Council’s activities to maximise the economic benefit to its residents. 1 Cities Outlook 2019, Centre for Cities 2 Centre for Cities Data Tool 2017 3 Cities Outlook 2020, Centre for Cities 4 Tinson, A. et al (2016) Monitoring Poverty and Social Exclusion 2016. York: Joseph Rowntree Foundation 5 Lichfield Risk Index based on BoE and OBR Analysis 6 RSA Economic Commission 2017 1.13. In consulting widely on this plan, we have also sought to secure the commitment of the various stakeholders involved in supporting the delivery of the future growth agenda, to an agreed; • Vision: A clear vision for the future sustainable development of the Basildon economy; • Set of measures of success: A clear set of goals we are seeking to achieve; • List of key priorities: A set of policy priorities to deliver the above
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