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 goals; 1.14. We want to build a vibrant, resilient and sustainable economy that provides benefits and opportunities for all, improves the living standards of our residents, to ensure no one is left behind.

Our Vision 1.15. Our Vision for Basildon is that; By 2024 Basildon will be a vibrant, resilient and inclusive economy, underpinned by high performing firms.

Measures of Success 1.16. The objectives of this plan are to; • To attract inward investment to Basildon including infrastructure and digital • To close the skills gap in Basildon now and into the future • To help businesses thrive and grow in Basildon • To promote town centres and high streets growth and vibrancy • To play a key role in regional and sub-regional partnerships to advance Basildon’s growth ambitions

Key Priorities 1.17. At its core, the Economic Growth Plan defines key priority areas that the Council’s economic development work will focus on for the next four years. The priority areas are; • Supporting Business Growth: We will work towards sustaining the Borough’s strong economy by engaging and supporting local businesses to enable them to grow and prosper. • Supporting early stage, high growth businesses: We will support the growth and development of early stage businesses in the Borough, particularly businesses that have the potential to create high added value jobs. • Encouraging Investment in Skills: We will work to improve the employment prospects, education and skills of local people. • Encouraging Investment in Strategic Infrastructure: We will work with our partners to promote sustainable economic growth by ensuring the provision of essential strategic infrastructure and connectivity in the Borough. • Encouraging International Trade: We will further strengthen the “Basildon Brand” to attract inward investment and work to bring about an economy that can adapt to global trade and competition. • Encouraging investment in Collaborative R&D: We will collaborate with the private sector and academia to establish a ‘living laboratory’, to test-bed innovative technological ideas 1.18. These priorities will all be underpinned by a central guiding principle of a drive to deliver Inclusive Growth – seeking to ensure that the residents of Basildon are able to benefit fully from the growth that is stimulated in the local economy.

Key Partnerships 1.19. In delivering the above priorities, we will work with a range of partners, locally, within South Essex, Essex, the Thames Gateway, the South East LEP area, nationally and beyond. 1.20. Continued participation in the SELEP and the Opportunity South Essex federated business board is essential to maximise profile and ensure access to government investment. Relationships with large public sector, voluntary sector employers and educational establishments are equally important to us in delivering growth. We will also maintain strong relationships with central government departments in Whitehall, in order to shape emerging policy and lobby on behalf of our communities.

1.21. Government have already recognised the economic potential of South Essex and the Thames Estuary, with South Essex being a central partner of the Thames Estuary Board. This brings a combination of strategic scale, and regional flexibility and agility to accelerate delivery on the ground. 1.22. Key to the delivery of this plan will be our growing partnership with the Association of South Essex Local Authorities (ASELA). The South Essex authorities and local businesses have a strong partnership which was formalised in January 2018 when all councils formally agreed a Memorandum of Understanding to cement their joint working. This has formed the basis for developing a shared vision and an agreed set of strategic priorities for the region, which support the broad direction of travel of Local Government Reform and dovetails into Basildon’s Economic Growth Plan.

2. Our Vision 2.1. Basildon’s Local Plan sets out a vision for the Borough which has a balance between development and growth, and quality of life for those that live and work in the Borough. This Economic Growth Plan underpins the Local Plan and Corporate Plan to ensure that sustainable economic opportunities are accessible to all our residents. 2.2. Our Vision for Basildon is:

By 2024 Basildon will be a vibrant, resilient and inclusive economy, underpinned by high performing firms.

2.3. Basildon is in a prime location to take advantage of firms and people looking for an affordable and convenient location in which to live work and play, within easy reach of the nation’s capital. 2.4. We believe that our ability to accommodate high value advanced technology, digital businesses and ‘tech-savvy’ people is our Unique Selling Point and the basis for our future growth. 2.5. Our economic growth must be inclusive and must benefit all residents by ensuring they have access to economic opportunities through a great basic education and enhanced skills offers in the Borough.

2.6. Measures of Success

2.7. The key measures of success in this plan are that by 2024, Basildon will possess;

• A local population employed in better paid local jobs • A local population with an above average level of skills • An increasing growth in the number of start-up businesses • An above average rate for survival and growth of SMEs

"Average" will relate to nearest neighbour analyses for similar local economies

3. Policy Context 3.1. In this section of the plan, we set out some of the key national, regional and local policies that impact on the growth agenda in Basildon.

Industrial Strategy 3.2. The government’s industrial strategy white paper was published in November 2017 and sets out the government’s plans for growth. This includes five foundations of productivity, including: • Ideas – the world’s most innovative economy • People – good jobs and greater earning power for all • Infrastructure – a major upgrade to the UK’s infrastructure • Business environment – the best place to start and grow a business • Places – prosperous communities across the UK 3.3. Working with partners in South Essex, Basildon Borough Council has collaborated on the production of the OSE Productivity Programme, to help shape and inform its own industrial priorities going forward.

Brexit 3.4. The UK Parliament ratified the EU withdrawal agreement, and the UK left the EU at 11 p.m. GMT on 31 January 2020. This began a transition period that is set to end on 31 December 2020, during which the UK and EU are negotiating their future relationship. 3.5. Whilst negotiations have yet to conclude, it is clear that Brexit will result in some changes in the way our businesses trade with the EU and we need to be sure they are ready for these changes.

Post Covid-19 Recovery 3.6. Covd-19 has impacted tremendously on our community and to address this we have; • Implemented our own Economic Assessment & Economic Recovery Action Plan, designed to support businesses in Basildon struggling from the effects of the pandemic; and • Worked with ASELA to develop a detailed Covid-19 Growth and Recovery Plan to try and ensure the long-term impact of the pandemic is minimised for the Borough, its residents and businesses; 3.7. At the time of writing this plan, the full effects of the Covid-19 pandemic are not fully understood, but forecasts are pointing towards the worst period of unemployment since the great depression. 3.8. In responding to the crisis, political and business leaders in South Essex have agreed to form a joint Taskforce with senior political and operational leadership. The Taskforce exists to ensure that immediate steps are taken to respond to the economic impact of COVID19 on local businesses and jobs over the next 12 months. This includes:  Identifying which business sectors are at most risk, post COVID-19 lockdown and ensure that all is done to prevent any loss of business within the ASELA area;  Recognising that many of South Essex’s residents who commute to London (80,000) will be based at home for at least part if not all of the working week for the foreseeable. There are likely to be a number of ways that South Essex can support and capitalise on this position, including through the provision of flexible workspace and technology;  Identifying and maximising the potential of commercial properties sitting empty;  Being mindful and ready that even in tough times, there are businesses that will see an opportunity to invest in the ASELA area, ASELA must present themselves ready to meet that ask when it comes;  Focusing on the high street where the impact is especially notable; and  Developing new, targeted funding interventions and new investment support mechanisms to help scale up business in priority sectors.

Skills Policy 3.9. Future government aspirations include plans to establish a world class technical education system, digital and technical education, and a new National Retraining Scheme supporting people to re-skill. 3.10. The UK Industrial Strategy acknowledges the importance of investment in technical education which it notes ‘for too long has not had the prestige it has enjoyed in other countries. The system can be complex and confusing, not always meeting the needs of individuals or those of employers.’ 3.11. In addition to encouraging investment in technical education, Basildon’s unique challenges also means there is a strong requirement to raise the skills aspirations of some of the ‘low skill’ sectors and improving access to skills and development opportunities for all residents, to ensure that growth is experienced by all parts of the community. 3.12. The productivity challenge has both a supply and a demand side; skills shortages are a significant factor, but so too are the proliferation of low-skilled jobs.

The Impact of Automation 3.13. The impending automation of low skilled jobs will have a considerable effect on current and future employment rates. In 2019, the Office for National Statistics published its findings on the impact of automation, which put the proportion of UK workers at high risk of automation at 7.4 per cent, but with 64.9 per cent of workers at medium risk7. 3.14. Their study found that overall, in 2017, younger people were proportionally more likely to be working in jobs at high risk of automation since over 45% of the high-risk jobs were held by people between the ages of 20 and 30 years. More specifically, young people aged 20 to 24 years have the highest proportion of jobs at high risk of automation of all age bands, at 15.7%. 3.15. From the jobs at low risk of automation, 87% were held by employees with a degree, while employees with lower education than GSCEs and those with A level or GSCEs made up most of the jobs at high risk of automation, 59.8% and 39% respectively. 3.16. These results show there is some correlation between risk of automation and the level of education which pose some serious threats for the residents of Basildon.

The emerging Local Plan 3.17. The local plan sets out a vision for the future of the district to 2034 and allocates land for over 17,700 new homes and allocates 92 hectares of land for employment uses providing in the region of 20,000 jobs by 2034. Major new infrastructure schemes are also identified in the local plan including a South West Billericay relief road and improvements to the A127 to allow for growth in Wickford and at East Basildon.

Planning Reforms 3.18. To help the economy recover from the economic effects of Covid-19, in June 2020 the Government committed itself to enabling more flexibility over the changes of use of buildings without the need for planning permission, and to create new homes from the regeneration of vacant and redundant buildings. This resulted in an expansion of the permitted development rights regime which allows for the demolition of purpose-built detached blocks of flats and offices, and their replacement with a detached block of flats or single house. The creation of homes from vacant commercial buildings may be a useful short term measure, but this is less likely to prove successful over a longer period of time, especially where it results in the loss of floorspace to residential uses in areas which are mostly industrial or commercial in nature. There could be a risk of landowners not renewing leases where a higher yield can be obtained from an alternate use, which is of significance as office buildings can be converted to residential uses under permitted development rights.

3.19. A further series of reforms to the Planning Use Classes Order created a new Class E, which merges commercial, business and services uses through combining elements of the former A, B and D use classes. Both changes came into force on 1 September 2020. Where a building, or other land, is being used in a manner which fell within the former Class A1 (shops),

7 Office for National Statistics, Probability of Automation in England 2011 and 2017, March 2019

A2 (financial and professional services), A3 (restaurants and cafés) or B1 (business), it will be treated as though it is being used for a purpose specified in the new Class E. However, particularly of note is that, where any changes of use to another use within Class E occur, they will not constitute 'development' and so will not need planning permission.

3.20. This could see some unwanted changes of use taking place which the Council would have limited ability to prevent under the new rules. For example, a health centre could change to a shop or restaurant, or a research and development facility could change to a café or nursery, all of which fall within Class E. The changes also potentially allow a building (or buildings) to be used flexibly by hosting a number of uses concurrently, or potentially enabling different uses to take place at different times of the day.

3.21. Although it is difficult to quantify the effects of this at present, the change could have implications for how local authorities plan going forwards - in particular for town centres and high streets, as many Local Plan policies relating to growth and the economy are predicated on use classes. The reforms may lead to the loss of important local shopping facilities and effectively brings in a more market-driven approach for the provision of a range of commercial uses and community services. Additional monitoring of future planning applications may be required to ensure that, overall, these national policy changes do not have any detrimental effects on the Borough, in order for the Council to deliver against the series of key priorities and policy statements set out in Chapter 4 of this plan.

Town Centre Regeneration 3.22. The Basildon Town centre regeneration strategy, adopted by the Council this year, sets out a fresh new vision for the town centre with more people living in the town centre in the future. 3.23. Over the next 20 years, we plan to regenerate Basildon town centre and deliver up to 4,200 new homes, 5,000 new jobs, a new town centre college for up to 2,000 students, and a range of amenities and public services that include new retail and a 12-screen cinema. East square is planned to be remodelled as the centre piece for development with Station Square being improved with better connections to Gloucester Park and the Basildon Sporting Village. 3.24. Alongside Basildon town centre, Pitsea is expected to see £30 million to reinvigorate the market town and developments are also being supported in the town centres of Laindon and Wickford. 3.25. Collectively, these developments will help regenerate the Borough and help shape the place into a location which residents can feel rightly proud of.

UK Shared Prosperity Fund 3.26. Now that the UK has left the European Union, EU funding will cease. In order to replace it, the Government has pledged to set up a Shared Prosperity Fund to “reduce inequalities between communities”. 3.27. Although the Government has not yet published its consultation on the Fund, a number of organisations have already made comments about the possible design. Although these vary in their emphasis, most organisations seem to agree that the level of funding should be at least maintained at its current level, it should largely be allocated based on need, and local authorities and partners should be closely involved. 3.28. This presents an opportunity for Basildon to address some of the above challenges.

4. Key Priorities 4.1. In order to deliver our Vision, this Economic Growth Plan defines six key priority areas that the Council’s economic development work will focus on for the next four years. The priority areas are; • Supporting Business Growth: We will work towards sustaining the Borough’s strong economy by engaging and supporting local businesses to enable them to grow and prosper. • Supporting early stage, high growth businesses: We will support the growth and development of early stage businesses in the Borough, particularly businesses that have the potential to create high added value jobs.

• Encouraging Investment in Skills: We will work to improve the employment prospects, education and skills of local people. • Encouraging Investment in Strategic Infrastructure: We will work with our partners to promote sustainable economic growth by ensuring the provision of essential strategic infrastructure and connectivity in the Borough. • Encouraging International Trade: We will further strengthen the “Basildon Brand” to attract inward investment and work to bring about an economy that can adapt to global trade and competition. • Encouraging investment in Collaborative R&D: We will collaborate with the private sector and academia to establish a ‘living laboratory’, to test-bed innovative technological ideas 4.2. In addition to these business development priorities, this plan also prioritises the delivery of Inclusive Growth – seeking to ensure the benefits of any ensuing growth directly benefits the residents of Basildon. 4.3. These priorities have been identified as being vital to the successful functioning of the local economy and have been determined through discussion with our key stakeholders, including the local business community. 4.4. Key Activities under each priority will be captured in an accompanying delivery plan, which will be developed once the plan has been agreed. The activities captured in the action plan will be determined based on best value for money / return on investment delivered. 4.5. This whole process will be supported by a robust evaluation and monitoring framework, designed to ensure that desired progress is achieved and economic benefits are maximised for residents. These metrics will then be monitored by the Council to inform and direct the decision-making process.

Supporting Business Growth Policy Statement 1: We will work towards sustaining the Borough’s strong economy by engaging and supporting local businesses to enable them to grow and prosper. 4.6. In 2018 Basildon was home to 8,700 businesses, 98% of which are micro firms. With 411 businesses per 10,000 residents, Basildon is ranked 9th in the country for number of businesses per 10,000 residents8 and 10th in the country for the proportion of private sector jobs (with a private to public ratio of 3.3). 4.7. Basildon also has a long history of being the home of large advanced engineering and manufacturing companies such as Ford Motor Company, New Holland Agriculture, Leonardo, Costa Coffee & Konica Minolta.

Supporting the Borough’s Businesses 4.8. Basildon has a particularly high concentration of employee jobs in Manufacturing (8.2% compared to 8.1% nationally); Construction (5.9% compared to 4.7% nationally); Wholesale And Retail Trade - Repair Of Motor Vehicles And Motorcycles (18.8% compared to 15.2% nationally); Transportation And Storage (5.3% compared to 4.8% nationally); Financial And Insurance Activities (4.1% compared to 3.5% nationally); Professional, Scientific And Technical Activities (9.4% compared to 8.7% nationally); and Human Health And Social Work Activities (14.1% compared to 13.2% nationally). 4.9. The % of people employed in SOC codes 6-7 (Caring, Leisure, Other Service Occupations and Sales and Customer Service Occupations) is 20.2% compared to 16.3% nationally. Similarly, the % of people employed in SOC codes 4-5 (4 Administrative & Secretarial and Skilled Trades Occupations) is above the national average (22.9% compared to 19.7% nationally) and the % of people employed in SOC Codes 1-3 (Managers, Directors and Senior Officials, Professional Occupations and Associate Professional & Technical) is lower than national averages (40.6% compared to 47.5% nationally). 4.10. Growing and sustaining the business base in the Borough is critical for the future prosperity of our residents and to generate a strong income base to deliver services. 4.11. In order to support and sustain the growth in the range of businesses in the area, we will;  Continue to operate a strong business engagement strategy within the Council, to maintain relationships with key strategic employers in the Borough;

8 Cities Outlook 2019, Centre for Cities

 Continue to work with key intermediary organisations, including Basildon Business Group, the Federation of Small Businesses, the Institute of Directors, the Confederation of British Industry and the BEST Growth Hub, amongst others, to facilitate a productive dialogue with the business community and co-ordinate our business engagement activities;  Collaborate on the organisation of Basildon Business Expo and Basildon Business Awards; and  Continue to support and work with the Business, Essex, Southend and Thurrock (BEST) Growth Hub to ensure their services are taken up by local businesses; 4.12. In line with our Economic Recovery Plan, Business Engagement will be targeted on key sectors and businesses in the local economy that are at greatest risk/that possess high growth potential. 4.13. Encouraging firms to move up the value chain, to create quality jobs (fairly paid, with scope for progression and autonomy, family friendly and flexible) and encouraging firms to invest at the level of place is also vital to delivering inclusive growth. 4.14. To achieve this goal, we will  Launch a Good Employer’s Charter, to recognise those firms that create quality jobs and that are committed to investing in local supply chains; and  Strengthen our relationship with some of the larger businesses in the Borough, encouraging them to form strategic partnerships with other ‘anchor institutions’ to tackle structural deficiencies in the local economy

Developing Leadership Skills & Promoting Sector Networking 4.15. All the evidence suggests that, in order to address the issue of skills underperformance in the Borough, we need to both encourage individuals to develop themselves and encourage firms to better utilise these skills in the workplace. Implicit in this idea, is the concept of developing the leadership and management skills of SME owner managers. 4.16. Basildon has some key sectoral strengths in ICT and Digital, Construction, Financial and Insurance, Health and Manufacturing. 4.17. In addition to promoting best practice exchange and learning across key sectors, we will also;  Actively promote Leadership and Management Development opportunities;  Explore the potential of sourcing external funds to support businesses in similar sectors to explore common leadership and management issues and learn from recognised good practice, where there is a critical mass of businesses and sufficient interest in working together to tackle shared issues; and  Where there is a lack of critical mass locally, but clear evidence that the benefits of sector networking will help strengthen a group of firms in the area, we will work with other partners in South Essex, Essex and the wider sub­ region to ensure such networks thrive and flourish. Two such examples of networks are the Green Technologies and Creative Industry sector proposals developed by ASELA. 4.18. In order to ensure that these sectoral coalitions deliver Inclusive Growth, we will;  Seek to strengthen the relationship between industry sectors and particular localities in order to tackle the long tail of productivity;

Strengthening our town centres 4.19. Creating thriving and successful town centres is a vital component of our vision for the Borough. Achieving this goal goes beyond the need to simply regenerate the buildings and improve the physical infrastructure, to creating dynamic working spaces that encourage entrepreneurship and enterprise to ensure economic vibrancy and activity is sustained. 4.20. Town Centre redevelopment will help achieve the Council’s objectives of making Basildon the economic powerhouse of South Essex and benefit local people by:  Providing opportunities for new businesses in growth sectors (including digital, creative industries and ICT) to locate in the town centre – from start-ups in existing affordable accommodation to new business space for employers to complement the Borough’s strong business space offer on the A127 corridor and other areas

 Broadening the range of uses in the town centre to include leisure, culture and entertainment and hotels and encourage an evening economy whilst protecting and strengthening the core retail areas of the town centre  Improving the quality of transport, infrastructure and public realm to provide the facilities that can persuade more businesses to locate here  Encouraging more public sector service delivery in a location that is easily accessible by public transport, walking and cycling  Enhancing the attractiveness of the whole Borough for inward investment by providing a positive, better quality image for the town centre 4.21. In the short term, Basildon’s Town Centres & High Streets Co-ordinator will support retailers and High Street Businesses through the Reopening High Streets Safely Fund. Through this programme, we will;  Continue to work with the business community and Town Centre Management organisations, and other key partners, to support the recovery of the high street;  Co-ordinate a series of activities and events to increase footfall and spend in Town Centres; and  Develop a programme of projects to promote the growth of the High Streets. 4.22. In addition, through the GO TRADE Project we will continue to open up opportunities for market traders to access tailor made business support, fund the further promotion of Basildon markets and increase footfall back to our town centres. 4.23. Looking to the medium term, we will promote a range of entrepreneurial events, activities and initiatives which build Basildon’s reputation as a Tech Town and stimulate the growth of new enterprises.

Supporting early stage, high growth businesses Policy Statement 2: We will support the growth and development of early stage businesses in the Borough, particularly businesses that have the potential to create high added value jobs 4.24. More businesses start up in Basildon than anywhere else in Essex. Basildon is ranked 9th best in terms of the number of business start-ups per 10,000 population, with 68.29. 4.25. Basildon has a larger concentration of ICT jobs than anywhere else in Essex. One quarter of Essex's creative jobs are in Basildon, with nearly 50% more jobs in this industry than our nearest comparator. 4.26. Companies in the Creative sector choose Basildon so that they can be close to R&D centres such as Ford Dunton and the growing ICT cluster. Creative industries doubled in size between 2009 and 2015 and are more specialised than anywhere else in Essex. 4.27. Between 2010-14 Basildon had the highest increase of businesses in the knowledge intensive sector (5.25%). This was more than London (0.62%) and Cambridge (2.94%). According the Tech Nation, Basildon is a top Ecommerce investment location10.

Strengthening the Start-up Ecosystem 4.28. All this provides us with a solid foundation on which to build a strong start-up community. 4.29. The BEST Growth Hub is already supporting large numbers of start-up businesses and increasing numbers of self- employed workers. The council has also recently supported the creation of the Innovation Warehouse and the Digi-Hub to incubate and grow new start-up businesses. In order to add the greatest value to these early stage businesses and enhance their chances of a successful start-up, we will;  Support the creation of the Innovation Warehouse and the Digi-Hub to incubate early stage, high-growth businesses;

9 Cities Outlook 2018, Centre for Cities 10 UK TECH ON THE GLOBAL STAGE TECH NATION REPORT 2019

 Improve the alignment between these two support services for start-up businesses and the services provided by the BEST Growth Hub;  Explore the establishment of further incubators, accelerators and co-working spaces to help further strengthen the start-up ecosystem and support these early stage entrepreneurs to develop and grow their businesses. Integrating local growth hub services into these facilities will also help promote these centres as ideal locations for early stage entrepreneurs; and  Focus on promoting entrepreneurship, through the organisation of a range of events and activities, designed to inspire and make possible the aspirations of start-up entrepreneurs in the area. 4.30. In order to ensure that entrepreneurship and enterprise are seen as viable pathways for the residents of Basildon, we will;  Explore the potential of securing external funding to deliver a range of inclusive entrepreneurship programmes, to ensure that all people, regardless of their personal characteristics and background, have an equal opportunity to start and run their own businesses.

Encouraging investment in Skills Policy Statement 3: We will work to improve the employment prospects, education and skills of local people. 4.31. Basildon’s people are a key economic asset. Ensuring they have the right skills needed by employers will support the effective functioning of the local economy. 4.32. As we have already identified, Basildon suffers from a skills gap, with the majority of higher-level skills in the local economy being provided by in commuters. In addition to creating pressure on the transport system, this situation underutilises the available labour force and serves to create some of the wider social challenges people within the Borough experience. 4.33. This situation is likely to be exacerbated by the Covid-19 pandemic, with unprecedented levels of growing unemployment likely to impact on a number of key sectors which have tended to rely on high numbers of customer service staff (like Accommodation, Food Services and Entertainment, for example) 4.34. To address this issue, the Council is committed to helping residents acquire the skills they need to thrive and prosper in what has become an increasingly challenging labour market. We will do this in a number of ways.

Promoting Workforce Development 4.35. Adult learning is in overall decline and is disproportionately taken up by wealthier, more highly skilled individuals. There is evidence to suggest that formal workplace training has also declined over the last 15 years. 4.36. While cost and lack of time are reported as common barriers to adult learning for individuals of all skill levels, individuals with no qualifications are more likely to cite attitudinal barriers including lack of confidence, lack of interest, and feeling too old to learn. However, low skilled individuals or those from poor socio-economic backgrounds and minority groups, reap the greatest rewards from learning. 4.37. Many places and sectors in the UK are caught in a “low skills equilibrium”, a situation that occurs when the availability of low-skilled jobs is matched by a low-skilled workforce, and individuals and employers have limited incentives to gain higher skills. 4.38. This is a stable equilibrium that can only be changed if supply and demand for skills are addressed together. Close partnerships between employers and providers of education and training are required to overcome a “low skills equilibrium”. 4.39. To support job creation and increase productivity, we will;  Embed skills development at the heart of large scale planning developments, ensuring developers invest in workforce development activities;  Work with the current provider network to organise a range of inspirational skills events, activities and campaigns, like Careers Shows, designed to encourage residents to ‘learn to earn’.  Work with the BEST Growth Hub to ensure workforce development is embedded at the heart of the business support offer.

 Work with partners in Essex, South Essex and across SELEP to position Basildon for UK Shared Prosperity Fund skills resource opportunities 4.40. To ensure that firms that invest in workforce development deliver benefits for local residents, we will;  Develop a Good Employer’s Charter to encourage Basildon businesses to support local supply chains; create job opportunities; and ensure employees are paid a fair wage.  Work with developers to ‘widen housing choice and improve construction supply chains’, by providing support with negotiating section 106 agreements to improve supply chain opportunities, generating construction employment and apprenticeships etc. for local residents

Ensuring young people are better prepared for the world of work 4.41. The CBI’s 2016 report Unlocking Regional Growth found that educational attainment of young people at 16 was the single most important driver of productivity differences across the UK11. That said, only 45% of 11-15 year olds in Basildon live within 5 km of a good or outstanding school (compared to the UK median of 69%)12. 4.42. Research by the UK Commission for Employment and Skills (UKCES), found that 36% of employers reported that 17- to 18­ year old school leavers in England are “poorly” prepared for the world of work13. 4.43. In addition, the House of Lords Select Committee on Social Mobility noted that “life skills are not embedded in an effective way alongside or within the curriculum, with young people leaving the education system insufficiently prepared for the world of work”. 4.44. The CBI survey found that employers consider “more engagement with business to give awareness of work” as the priority area for education for both pre- and post-14-year-olds. Businesses also seek higher levels of “self-management/personal behaviour” and “more opportunities for relevant work experience” in post-14 education. 4.45. A McKinsey survey of young people in nine countries found that fewer than half (46%) reported that they knew about job openings or wages when choosing what to study; even fewer were aware of which education providers had the highest graduation rates and successful job-placement rates (40%). British young people emerged as some of the least well- informed with regards to each of these areas (30%). 4.46. All this evidence, pointes towards the need to improve young people’s understanding and experiences about the world of work. 4.47. In order to ensure young people are better prepared for the world of work, we will;  Work with partners to strengthen the Careers Education Information, Advice and Guidance offer in the Borough; and  Work with partners in Essex, South Essex and across SELEP to position Basildon for UK Shared Prosperity Fund skills resource opportunities

Increasing apprenticeships and industry relevant qualifications, particularly in priority sectors and at technician and degree level 4.48. The 2017 UK Employer Skills Survey found that 33% of the 1,007,000 reported vacancies were “hard to fill because of skill shortages”14. Skills shortages generally arise when vacancies are hard to fill due to an insufficient number of potential recruits or a lack of the required skills among candidates. 4.49. According to the DfE, reported skill shortages when recruiting were particularly prevalent in certain sectors and professions. 4.50. By occupation, employers were most likely to have experienced skills-related difficulties when recruiting for Skilled Trades positions. Around two in every five Skilled Trades vacancies were proving hard to fill for skills related reasons (42%).

11 Unlocking Regional Growth, CBI, March 2017 12 Thames Estuary 2050 Growth Commission Technical Report June 2018 13 UK Employer Skills Survey, DfE, 2017 14 Vivian et al., 2016

4.51. The skills that employers found to be lacking among applicants ranged across both technical and practical skills, and people and personal skills. On the technical side, employers reported a lack of digital skills, skills related to operational aspects of the role, and a lack of complex analytical skills. 4.52. The main people and personal skills lacking predominantly related to self-management skills, management and leadership, and sales and customer handling skills. The skills lacking among applicants vary quite substantially depending on the role. For instance, the skills disproportionately reported to be lacking among applicants for Skilled Trades positions included manual dexterity and the ability to adapt to new equipment or materials. Whereas the skills disproportionately lacking for Professionals included advanced IT skills and complex analytical skills. 4.53. Recent research from The Open University highlights the extent of skills shortages in the UK, with 68% of employers struggling to find the skills they need in the last year at a total cost to UK business of £4.4 billion15. According to the OU, organisations also continue to report issues in sourcing talent with the right managerial (35%) and leadership (32%) skills, although this has decreased in the past year. In contrast, finding digital and ICT skills has become more problematic (34% experienced an issue, up from 28% in 2018). 4.54. The % of people in Basildon with no qualifications (12.8%) is higher than the national average (7.7%). Similarly, those qualified to NVQ L1-4 is lower than the national average. For example, 80% are qualified to NVQ L1 and above in Basildon, compared to 85.6% nationally; 64.8% qualified to NVQ L2 and above, compared to 75.6% nationally; 44.2% to NVQ L3 and above, compared to 58.5 nationally; and 26.3% to NVQ L4 and above, compared to 40.3% nationally. 4.55. In addition, the Higher Education Initial Participation Rate (HEIPR) in the UK in 2017/18 was 50.2%, whilst in Basildon it was 39.7%16. 4.56. All this data points towards potential technician and higher-level skills gaps in Basildon and the need to explore how more can be done to develop and retain these skills in the area. 4.57. Because improving the quality of technical education and growing apprenticeship numbers will help address these long- and short-term skills issues and improve labour productivity in the UK, we will prioritise these issues going forward. 4.58. This will include exploring how we can;  Work with existing training providers and major employers to strengthen higher-level technician training in the area, through the establishment of a specialised facility which plugs some of the skills gaps employers are telling us they are struggling to fill; and  Work with ASELA to bring forward a programme to establish a new generation University in South Essex which will transform the current HE offering in the sub-region with a comprehensive and consistent portfolio of work-based learning courses (including Degree Apprenticeships) and a rapidly evolving set of new, bespoke undergraduate and postgraduate courses designed and delivered with local business engagement, and focused on increasing the skills levels to meet existing and emerging economic needs.  Work with partners in Essex, South Essex and across SELEP to position Basildon for UK Shared Prosperity Fund skills resource opportunities

Ensuring those marginalised or disadvantaged from work are moved closer to the labour market and supporting and encouraging older workers to consider vacancies in areas of skills shortage 4.59. 74.1% of residents (113,400 people) aged 16-64 in Basildon are economically active, 4.6% lower than the England average (78.7%) and 6.7% lower than the average for Essex (80.8%). Within the same age group, it is estimated that 72.6% of residents (including both economically active and inactive) are in Employment, 5.5% lower than the Essex Average (78.1%) and 2.7% lower than England (75.4%). 4.60. 29,400 people or 25.9% of residents aged 16-64 are thought to be economically inactive (not in employment who have not been seeking work within the last 4 weeks and/or are unable to start work within the next 2 weeks). The Basildon average is higher than the rate for Essex (19.2%) and England (21.3%).

15 http://www.open.ac.uk/business/Business-Barometer-2019 16 Office for Students (2019) https://www.officeforstudents.org.uk/data-and-analysis/young-participation-by-area/map-of-young-participation/

4.61. The most common reason for working age people to be economically inactive was either long term sickness (28.6%), Looking after the home or family (27.8%), or being a student (24.3%). Compared to the rest of Essex, Basildon’s proportion of residents classed as long-term sick is 9.2% higher than the county average (19.4%). 4.62. The number of residents claiming out of work benefits has increased to its highest level in 5 years to 6.9% in March 2020, a figure that is equivalent to 7,900 claimants. This is higher than the averages for the East of England (5.5%) and England average (6.3%)17. 4.63. All this evidence points towards the need to support those that are marginalised or disadvantaged from work to move closer to the labour market. In addition, the general patterns of demographic shift suggest significant advantages could be achieved from encouraging older workers to remain in the labour force. 4.64. In order to tackle these issues, we will;  Invest in social infrastructure, including effective skills and employment services, to ensure that individuals, families and communities capacities and capabilities are developed, to enable them to participate more fully in society and thereby benefit from economic growth.  Continue to facilitate the “Pathways to Success” Forum to promote and encourage collaboration across the partnership to tackle underlying skills/employment challenges in the locality;  Work with partners to support the residents of Basildon to find out about Employment, Self-Employment and Training Opportunities, through initiatives like the Advice Store;  Promote programmes which support people to retrain, reskill or take up employment opportunities in growth sectors, through initiatives like Kickstart  Work with ASELA on the Recovery Taskforce, to implement shared solutions to address the impacts of the Covid- 19 Pandemic; and  Work with partners in Essex, South Essex and across SELEP to position Basildon for UK Shared Prosperity Fund skills resource opportunities

Encouraging Investment in Strategic Infrastructure Policy Statement 4: We will work with our partners to promote sustainable economic growth by ensuring the provision of essential strategic infrastructure and connectivity in the Borough. 4.65. 36,000 people travel to Basildon to work, more than any other part of Essex. Basildon is the local authority area with the largest net gains within the Greater Essex region and has a net surplus (taking out the off commuters) of 12000 people every day. 4.66. For businesses to grow to their full potential, they need to be supported with appropriate infrastructure that will give them the ability to run their businesses effectively and the confidence to invest in business growth. 4.67. However, investment in physical infrastructure also has a role to play in delivering inclusive growth, by maximising the impact of national and local investment in social value. To that end, we will seek to work with large scale infrastructure projects (like the Lower Thames Crossing) to ensure the full value of these developments is felt in the area. 4.68. Transport and communications infrastructure both have a key role in enabling and supporting growth by improving the connectivity, reliability and the accessibility of a local area. Adequate transport infrastructure is a vital component of economic growth.

Encouraging investment in Transport Infrastructure 4.69. This is particularly important for Basildon, given the importance of manufacturing to the local economy and our ambition to promote international trade.

17 Nomis, retrieved July 2020

4.70. Continued investment in strategic transport infrastructure (the A127 and the A13 corridors) are of particular importance, given the number of in commuters into the Borough daily. With over 19,000 homes due to be built in the Borough over the next 20 years, supporting investment in infrastructure will also be key to the future sustainability of businesses in the area. 4.71. In order to tackle these issues, we will;  Continue to lobby for investment in strategic transport infrastructure in the area; and  Continue to work with partners in Essex, South Essex, across SELEP and other national partners to prioritise investment in the A127 and the A13 corridors and in cleaner, greener transport solutions

Encouraging investment in Telecommunications Infrastructure 4.72. Similarly, with our vision of creating Basildon as a natural home for digital entrepreneurs, high speed broadband (including 5G telecommunications infrastructure) is an equally important issue to address. 4.73. Building a resilient fibre and 5G network will have a significant impact on the performance of the regional economy, its accelerated recovery from COVID 19, and will support key industry sectors and the prevalence of small and medium sized enterprises. 4.74. In order to tackle these issues, we will;  Continue to lobby for investment in strategic communications infrastructure in the area; and  Continue to work with ASELA, to rollout the full fibre network to key public sector sites across the region and explore how this infrastructure might support the further accelerated rollout of 5G services.

Encouraging International Trade Policy Statement 5: We will further strengthen the “Basildon Brand” to attract inward investment and work to bring about an economy that can adapt to global trade and competition. 4.75. One of our key areas of work that best exemplifies the approach to stimulating economic growth is the Council’s focus on encouraging inward investment and supporting businesses develop export markets. 4.76. Over the years, Basildon has benefitted from significant levels of inward investment and it still has significant potential for future growth based on a number of key strengths; • It is the nearest town to the DP World London Gateway Port – just eight miles away • It is only 35 minutes by train from central London • It is near major road and rail connections • Three London airports are reached within 40 minutes • and it is already home to major businesses.

Encouraging Inward Investment 4.77. In order to continue to grow the overall business base, we will  Continue to prioritise inward investment into the area, and work with any business that is interested in investing in the area;  Develop a Basildon Investment Prospectus;  Organise regular attendance at relevant events to target inward investment opportunities (MIPM etc.);  Utilise data to target investors at key points in their decision-making cycle;  Work with DIT to ensure we support them deliver the national offer; and  Work with SELEP, OSE and ASELA to create shared specialist inward investment resources and promotional materials

Promoting International Trade Links 4.78. Developing and expanding the borough’s international networks also provides the opportunity to access potential investors interested in coming to Basildon to take advantage of proximity to London and good transport connections. 4.79. In addition to supporting the existing businesses in the Borough, we will also continue to;  Actively encourage and promote international trade links with other parts of the globe that offer our businesses the potential to secure export business, via the Global Basildon Programme; and  Use the opportunity to exchange experiences and learn from others about how they are tackling economic challenges

Encouraging investment in Collaborative R&D Policy Statement 6: We will collaborate with the private sector and academia to establish a ‘living laboratory’, to test-bed innovative technological ideas 4.80. Innovation is not the sole domain of the private sector. Opportunities exist for the Council to collaborate with businesses and research institutions on joint Research and Development activity that feeds our common goals. 4.81. These kind of joint R&D activities can help support our regions businesses to steal a march on their competitors and help us strengthen our public service delivery offer. 4.82. Given the local industrial base, and the focus of the Industrial Strategy Grand Challenges, four particular areas of research possess the greatest interest;

Future Mobility 4.83. In the field of transport, opportunities may exist to trial Vehicle to Grid (V2G), Connected Autonomous Vehicle (CAV) and Low Carbon Vehicle (LCV) technologies at scale in the Borough. 4.84. We will work with business partners in our Advanced Manufacturing sector e.g. Ford to explore innovations in mobility and integration of new forms of mobility.

Machine Learning and AI 4.85. As a number of the major global tech firms enter the connected public services market and start work with public sector bodies to use ‘smart’ home devices, artificial intelligence, machine learning and community networks to develop new models of public services, opportunities may exist for a number of joint innovation projects.

Ageing Society 4.86. The UK population is ageing, as it is across the industrialised world. The prospect of longer lives will require people to plan their careers and retirement differently. Ageing populations will create new demands for technologies, products and services, including new care technologies, new housing models and innovative savings products for retirement. 4.87. Opportunities may exist for the council to work with the Health and Social Care sector to find new ways of delivering services to the growing elderly population.

Clean Growth 4.88. The move to cleaner economic growth – through low carbon technologies and the efficient use of resources – is one of the greatest industrial opportunities of our time. By one estimate, the UK’s clean economy could grow at four times the rate of GDP. Whole new industries will be created and existing industries transformed as we move towards a low carbon, more resource-efficient economy. 4.89. Opportunities may exist to use innovative technologies to support the decarbonisation of the local energy model and initiate joint clean growth projects.

4.90. In order to realise these collective opportunities, we will;  Position Basildon as a test bed for new technology trials; and  Work with the research community to explore how we might use innovation funding for collaborative R&D projects for field trials, testbeds and feasibility studies to bring forward innovative partnership projects 4.91. In order to ensure these opportunities directly benefit the residents of Basildon, we will;  Explore the potential of securing external funding for citizen science projects, enabling local residents to get directly involved in community driven research projects, which enable them to gain hands-on experience of Science, Technology, Engineering and Maths (STEM) disciplines.

5. Next Steps 5.1. This Basildon Economic Growth Plan for 2020 – 2024 sets out an ambitious actionable agenda of delivery, to support the growth of the economy of the Borough. 5.2. Over the next four years, we will work to maximise the benefits of economic growth for all of the residents of Basildon. 5.3. We want to work in partnership with others to strengthen the local economy, create jobs, grow our business base and strengthen our strategic assets. We want Basildon to be a vibrant, resilient and sustainable economy, where people want to live, work and play. 5.4. We will continue to monitor the goals set out in this plan to ensure that we regularly assess our performance and respond appropriately to any changes we experience along the way. 5.5. We commit this plan to you and invite you to provide us with your views about how it might be improved. We also invite you to work with us to develop ideas and deliver impactful projects that will make a difference to the local economy.