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A PROPOSITION TO GOVERNMENT... HULL A PROSPECTUS TO INVEST

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Energy Works - under construction

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FOREWORD

This is our prospectus to Government; an invitation to engage in a relationship with Government bespoke to Hull that delivers further inclusive economic growth for the City and Humber Sub-Region.

We have built and developed a mutually years; some of these had been developing over a beneficial relationship with Government. When decade. The City Plan brought these strands of we launched our City Plan in 2013 we were positivity together and created a catalyst for unashamedly ambitious for our city; our focus beneficial change and growth. Our recently was on the creation of greater wealth, more adopted Local Plan sets the scene for our opportunities and addressing the absence of sustainable future. quality jobs for our people. We firmly believe that senior figures in Government share our A new, positive mood has developed in Hull enthusiasm for releasing the potential of one of which requires new ways of thinking so, rather the North’s great cities and the results of our than wrestling with the negative issues of urban joint endeavours are now speaking to the world. decline, we are now challenged by the opportunity of managing growth and releasing We will talk about distance travelled and further potential. measurable results later in the document. I want though, at this stage, to thank all those It is this latter issue which we wish to discuss who believed in our ambition and shared in our with Government – how we sustain and further passion for delivering change. This city, our city grow the economy for existing and future Hull, has changed course over the last four generations, creating continued inclusive years; it has been a remarkable re-orientation of growth and how we contribute further to the the map from 40 years of slow decline to a rapid UK’s success in the global market place. growth scenario. A number of diverse but Councillor Stephen Brady positive forces converged over the last four Leader of

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Blade temporary art installation - Hull 2017 UK City of Culture

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INTRODUCTION Hull, as a city and productive unit, developed relatively late in UK terms. Created from its long standing relationship with the sea, Hull grew very rapidly from late Victorian times to ‘peak people’ in the early 1930s. The UK had already passed the watershed point of industrialisation when Hull expanded from a large town to a city with a population of 300,000 people.

During this period, Hull became part of a large was of conurbation scale rather than the size of industrial machine with coalfields and a stand-alone or free standing city. manufacturing as its hinterland and international trading markets and deep water The legacy of a densely utilised, under bounded fisheries as its foreland. It is too simplistic to urban form, post war rebuilding, high levels of describe Hull’s port role as ‘carbon out and semi-skilled employment, challenges of protein in’ but there is some truth in the educational attainment, skills and multi- statement. generational worklessness; and the fact that port operations still take up a large amount of Hull’s land area was densely utilised, as it is employment land are challenges that we work today, dictated by the enclosed docks and River with on a daily basis. Whilst some recent Hull berths and surrounded by both support negatives are still to be addressed, many have industries and housing to supply the largely been turned into opportunities to be exploited. manual workforce which supported both the One such example is the Newington and St commercial docks and the industrial scale Andrews area of West Hull; the focus of the fishing operations. most successful housing market renewal area in England - a legacy of the 1980s urban This relationship between the land and the sea programmes. A large area of low value housing, was maintained into the late 20th Century, once providing mass labour to the fishing briefly interrupted by the war which saw over industry, has been transformed by a visionary 90% of Hull’s building stock damaged through plan and concerted action over 15 years and is enemy bombing. now experiencing inward migration from the In short, until the 1970s and the Cod Wars, Hull surrounding . was a relatively wealthy city with high Climate change and air quality have emerged as employment levels and a high propensity to our ‘new’ challenges and we are concentrating spend which supported a large city centre which our efforts to address these.

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One Hull of a Journey......

The timeline illustrates how structural economic events in Hull have coincided with 1973 NATIONAL EVENTS global and national Oil Crisis downturns in the economic cycle. Each event saw Hull HULL IMPACT dive in deeper and take longer 2nd and 3rd Icelandic Cod Wars to recover as economic capacity eroded. NATIONAL EVENTS UK Recession Over 20 years Hull lost the equivalent economic HULL IMPACT Hull Fishing Fleet rapidly capacity of two downsized - circa 15,000 steelworks and three jobs lost 1980 - 1982 coal mines – the greatest concentration of economic re-structuring in any UK city. HULL IMPACT In the 1980s Government 1980 - 1989 End of National Dock Labour Scheme - circa response, Hull received no 10,000 jobs lost Enterprise Zones and was not NATIONAL EVENTS an EU Objective One Area. Single European Market Formed HULL IMPACT NATIONAL EVENTS Hull lost circa 500 mainly Public Sector Austerity office jobs NATIONAL EVENTS Programme 1992 Climate Change Events HULL IMPACT HULL IMPACT Gateway funding 9,000 Houses flooded reduced (Housing)

2002 2008/9

2007 2010

NATIONAL EVENTS NATIONAL EVENTS Housing Market Renewal Great Recession/ Pathfinder Financial Crisis HULL IMPACT HULL IMPACT 6 Gateway Programme Hull lost 10,000 mainly Commences (Housing) manufacturing jobs Hull BSF programme Hull LIFT Programme City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:52 Page 7

HULL IMPACT Five global R&D centres 2018 open in Hull 2017 Hull Events Centre opens HULL IMPACT UK City of Culture 2017 Hull's lowest unemployment rate since the 1950s Hull exceeds house building target for three consecutive years. Net inward local migration £2bn Private Sector Investment Hull Maritime project launched , Ron Dearing UTC and The Ferens - all open

2016 HULL IMPACT Siemens Blade Plant opens

2015 C4DI opens NATIONAL EVENTS Government Productivity Challenge Northern Powerhouse launched 2014 HULL IMPACT Hull fills first Enterprise Zone

NATIONAL EVENTS Continuation and deepening of welfare reform HULL IMPACT 2013 HULL IMPACT First Enterprise Zones UK Government Award UK Awarded City of Culture 2017 to Hull Tidal surge 115 Business flooded

2011 2013 CITY PLAN 2012 LAUNCHED

HULL IMPACT Hull central to formation of Humber LEP as Accountable Body 7 City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:52 Page 8

Siemens Gamesa Renewable Energy

Energy Works Humber Street

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A LAUNCH PAD FOR FUTURE SUCCESS

The City Plan is built upon objective evaluation, prospects and capabilities - it is our strategic intent.

Since the launch of the City Plan we have At a more human level, some illustrations created a ‘turnaround’ scenario: of what this delivers:

G Over £2bn private investment in the City’s G 5x global R&D/innovation centres – RB, producer economy Indivior, Smith & Nephew, Croda and Ideal Boilers G £250m (including £150m from the City Council) into the consumer and visitor G The world’s largest single manmade destination economy, improving our living objects – Siemens wind turbine blades environment and supporting the UK City of Culture G 320,000 people visiting Hull in the first week of City of Culture G £50m into climate change resilience investment including flood protection G The UK’s largest Energy from Waste Plant G The first UTC on an Enterprise Zone G Land released for over 2000 homes unlocking more than £210m investment G The first hotel to be opened on an utilising an effective lead local developer Enterprise Zone framework. G A Heritage Action Zone in the Old Town This builds upon £500m investment renewing our schools and learning facilities and £120m G The north’s most successful Tech-Hub into renewing our health services estate. Innovation Centre – C4DI G The fastest roll out and biggest concentrated investment in fibre to premises in the UK (KCOM)

G A successful joint programme with Jobcentre Plus reaching out to those distanced from employment

G The establishment of a Hull Place Board with the CCG and other strategic partners to drive ‘whole system benefits’ focussing on inclusion and health.

Lord Mandelson - High Steward of Hull 9 City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:52 Page 10

CONSIDERATIONS IN FRAMING OUR APPROACH

Hull enjoys the benefits of a positive relationship and shared agenda with Government – that of sustainable growth. However, in the analysis of the current situation, a number of factors and ‘givens’ have to be considered.

Despite being a long standing proponent of created and household incomes in the UK, with devolution to a Yorkshire level mayoral attendant consequences in the areas of health arrangement, for three years, due to factors and well-being. beyond our influence and control, little or no progress has been made. Despite being severely impacted upon by the financial downturn of 2008, the city’s economy Hull is challenged by fiscal devolution, is now on a growth trajectory, which is seeing amplifying its under bounded nature; a historically low levels of JSA claimants and, in situation simply illustrated by low yield from its wider economic terms, as identified by the CBI Council Tax base, emphasised by the fact that (2016) report ‘Unlocking Regional Growth’, in Hull has achieved rapid GVA growth. The city Yorkshire and Humber, Hull registered the has, potentially, the greatest gap between wealth strongest growth rate of 43%, yet has low

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KCOM - Hull’s fibre to door provider RB - Centre for Scientific Excellence

Humber Quays DoubleTree by Hilton Hull

incomes illustrated by the commuter correlation In fiscal devolution terms, particularly regarding with the adjoining East Riding of Yorkshire. Business Rates, this creates a perverse dis- incentive to the Council as the fiscal rewards Put simply, Hull not only provides an economic flow to the adjoining authority. platform for its own 260,000 residents but also for a population of 500,000 in its Functional Devolution will be one way of addressing and Economic Area which starkly illustrates the dampening those unintended effects. under bounded nature of the economy. However, the city’s growth trajectory demands This is further referenced by the fact that a large that action is required now, not later to service number of traditional Hull companies have now that growth to three years out from now. expanded onto sites in the adjoining authority due to the absence of readily available sites in Hull’s extremely tight built form. 11 City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:53 Page 12

Humber Quays and Hull Marina

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Hull Venue City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:53 Page 13

WORKING IN PARTNERSHIP

Hull’s Labour administration was pivotal to the formation of the Humber LEP in 2011 when they came into power, acting as the catalyst for Greg Clark to fully deliver on his LEP ambition.

Hull is the only Humber Unitary Authority in a We also benefit from well-developed single LEP and we have worked extremely relationships with other funding bodies. By closely with its Chair, Lord Haskins to secure creating a shared vision and shared purpose, we mutual success, through the Humber LEP. Hull have worked closely with other agencies has embraced the fiscal incentivisation of including the Environment Agency and economic growth and self-help by Government Yorkshire Water to secure flood protection in its Enterprise Zone Agenda. funding. We are also working closely with Highways England, Heritage England, Natural Hull is acknowledged as the most successful city England and the HCA; by taking advantage of in England in creating investment on Enterprise coterminous boundaries, we have developed a Zones. We have also worked closely with the strategic place based partnership with the CCG Humber LEP to secure both RGF and LGF funds. to address the health challenges prevalent in the Funds that have been invested carefully to local community, recognising that quality support growth both in our producer and employment is a pre-cursor to good health. consumer economies which for the first time in 40 years, are working in tandem to create an urban multiplier effect not often witnessed in northern free standing cities.

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OUR PROSPECTUS

This paper is not a funding bid, we are only too aware of finite funds. This is a firmly pitched proposition to invest in commercial terms. It is our offer to Government to invest in Hull, fully understanding that, as any investor, Government will require a return. Our City Plan deliberately set out to address an being seen in our health metrics. underperforming producer and tradeable economy and to increase the under-represented We would like our future dialogue with consumer/transaction economy. Success has Government to be framed around investment in been evidenced, as has the return on previous our assets and resources: in our city’s productive Government investment in terms of RGF, LGF, capital and our people. UK Energy Policy, etc. Careful investment has We wish to discuss with Government, the resulted in a dramatic fall in the JSA claimant appetite to form a long term investment count and a rapid reduction in the benefits bill – relationship to consolidate Hull’s further 6,500 people are now in work who were not economic growth and increase productivity, economically engaged in employment a few achieving the aims of the industrial strategy. years ago and the results of this are already

Our commitment to a productive future G The ambitious Yorkshire Cruise Terminal for our city and region – the Council has committed £10m and is seeking £50m from external sources Some examples of our investment: G Hull Venue – Hull’s own music and G City Centre Public Realm & Old Town – performance centre has been developed HCC £30m and £5m from external sources with £36m Council investment and £3.5m including £3.5m from the Local Growth from the Local Growth Fund Fund G Planned future investment in Hull’s G The Hull New Theatre renewal was Maritime Heritage totals £27.5m with funded with £11m from the Council and £10m coming from the Council £5m Government funds G A £3.5m contribution to the Green Port G The Ferens Art Gallery, in readiness for development to ensure public the Turner Prize, the Council invested infrastructure works were complete and £4m and Government contributed £1m enhanced

G Hull’s historically renowned Fruit Market G £3.5m to the successful UK City of Culture has been redeveloped in partnership with 2017 activities the private sector. The Council contributed £2m along with land, G £50m contribution to our regeneration unlocking an £80m scheme defining Housing Market Renewal programme G The Beverley Road Heritage Scheme has been brought forward with over £1.3m G We are already reinvesting the business from the Council and £2.2m Lottery rate uplift from our successful programme funding of Enterprise Zone development, a joint initiative from the Government the Humber LEP and the City Council. 14 City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:53 Page 15

Below - Hull New Theatre Above - Ron Dearing UTC

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THE PLAN – CAPITAL

The next phase of our City Plan seeks to reinforce Hull’s role in the wider UK economic system.

In the next 5 years our ambition is to deliver on G Heartlands Knowledge Zone – River Hull our recently HLF awarded Maritime project and Corridor, Hull & Humber Resource to complete our last city centre site, Albion Efficient Manufacturing Centre - £22m. Square, which will deliver a key site for mixed This collaborative industry led research use assisting with the continued re-purposing of and higher education supported facility our city centre. It will also assist to deliver the will drive the industrial strategy for the increased residential population into our city area. Focussing on resource and centre – highlighted in the City Plan. The materials efficiency, comparative methods Yorkshire Cruise Terminal, opening up the of agile production, smart materials and regional market to the strong Yorkshire brand applications of digital technologies, the established by Welcome to Yorkshire, is also a Centre will re-define the competitiveness City Plan priority, capitalising on the growing of the manufacturing and servicisation demand for cruise breaks. sectors in the north

The returns for these investments are: Timescale 10 years G Heartlands Knowledge Zone – River Hull Timescale 5 years Corridor, site assembly and repurposing G The Yorkshire Cruise Terminal - £60m , of former industrial area to create a Tech- 400 regional jobs corridor - £45m, 250 jobs, 400 homes, 90 businesses G Albion Square - £18m gap funding, 300 city jobs, 120 homes

G The Northern School of Contemporary Timescale 15 years Dance and Performing Arts - £6m, 50 jobs G Albert Dock - repurposing of remainder of G Continued delivery of our housing the City of Hull waterfront from regeneration programme worth a further commercial dock estate which is £200m underutilised to high value mixed use - £100m, 200 jobs, 600 homes G Addressing the remaining complex derelict waterfront sites to capitalise on the EA investment in flood defences - £20m

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M62/A63 Trunk route to the north of the city Illustrative purposes only a city waterfront lagoon which would carry the A63

Running parallel to this are programmes already Strategic Linkages - underway – Living with Water delivered jointly Timescale 20 years with Yorkshire Water, Environment Agency and our neighbouring Authority, East Riding of Yorkshire Council, is a project to protect Hull Hull’s main economic driver – its Port complex from high rain fall events and minimise their and high value industrial area is to the east of effects by investing in above ground solutions to the city. The A63 Trunk road passes through the water attenuation. city – a congestion and air-quality bottleneck which the current Highways England A63 Castle Street scheme seeks to address. However, the The Humber frontages and River Hull are new scheme will have finite capacity and major programmes delivered by the EA as major employment sites in the east ready to be priorities to protect Hull from rising sea levels. brought to market, exacerbate the congestion These programmes are being accelerated by the and air quality issues that exist. utilisation of LGF, prioritised by the Humber LEP. A strategic solution is required – either an extension of the M62/A63 Trunk route to the In addition we wish to accelerate the progress north of the city (an outer ring route) or, as in a made on our housing market, building on our scheme currently being promoted by the local current programme to address abnormal private sector – a city waterfront lagoon which delivery demands (ground conditions and flood would carry the A63 Trunk route and increase protection). flood protection from tidal surge whilst delivering other land based objectives. We would seek to negotiate This is a major long term ambition and both further investment in housing scenarios are proposed. over the Plan period to 2030

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THE PLAN - OUR RESOURCES, OUR PEOPLE - GENERATION HULL

Hull is rapidly using up its readily available employment pool, whilst significant numbers of people remain underutilised in the economy; and, as a free standing city, these issues are readily apparent. Notwithstanding the economic issues, there are emerging social challenges around polarity between “haves” and “have nots” in our city.

Hull’s ability to address the problem itself is establish a dynamic of social-economic mobility compounded by the very fact that addressing social within the city and beyond, enabling our young inclusion is a revenue issue and the city has suffered people to contribute and achieve in modern society. some of the most severe budget reductions in the UK. WHAT IS PROPOSED Hull has created the conditions for sustainable growth through investment. We have: The closest model we can find with similar parameters is Rotterdam Zuid. Based on extracting G Made significant capital investment in appropriate elements of this model we propose: primary and secondary education, and now have 21st century facilities but we need our G A 15 year cross generational pilot partnership educational outcomes to catch up from early with Government, including co-delivery of the years through to Level 3 and beyond Work Programme

G Invested heavily in the living environment G An expansion of the current JCP+/ Council (including £150m from the City Council and partnership – the ‘Green Port Hub’ to include: the UK’s most successful Housing Market G A Hull Employment Charter Renewal Programme) G An extended and enhanced exit employment G Created a step change in the economy and subsidy and mentoring to engage all growth employment potential through investment sectors in the economy and growth (success in EZ’s, careful investment of RGF, LGF and ERDF). G A focus on improving the outcomes of some of The “fourth pillar” to establish a sustainable and our most vulnerable groups, including Looked After Children, care leavers and children with inclusive future is economic inclusion, where, with special educational needs JCP+, we have piloted a successful model utilising RGF2 to demonstrate that inclusion can be achieved. G A specific programme for veterans However, it is not enough given the scale of G A specific programme to address re offending residualisation (24,000 plus people furthest way from the workplace). G A focus on graduate retention We propose to build upon the momentum created G A programme to address the public services from our year in the spotlight as UK City of Culture skills gaps 2017, to forge “Generation Hull” where we will City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:53 Page 19 SUMMARY

Our plan requires continued investment by Hull City Council and partners in flood mitigation, tidal defences and improved air quality – these are our environmental imperatives.

Through the successful delivery of our plan, our Building upon Hull’s current success in growing economy and our status of UK City of attracting major corporate R&D/innovation Culture 2017, external perceptions have been centres, the establishment of C4DI as a key positively transformed, not least in a global digital hub and the long held ambition for a context. Confidence and belief in Hull’s ability ‘halo’ presence in the city to deliver long term economic growth through centre; together with capturing the convergence our ambitious plan have never been higher. of digital technologies and engineering embodied in the Ron Dearing UTC; it is We have demonstrated our growth trajectory proposed to establish a Knowledge Zone along and we have highlighted the barriers to further the River Hull Corridor – the heart of Hull’s growth presented by our tight boundary. It is origins as a mercantile city. accepted that Hull provides an economic platform for over 500,000 people, so we are of This would include: ‘core city’ scale. G A new Heartlands EZ to fiscally reward the It is imperative that we manage the use of our development of new products, fully offset land and address barriers to utilisation such as against Corporation Tax over 5 years

flood mitigation, ground conditions and G Focussed housing investment funding to contamination. bring forward housing adjacent to work opportunities Underutilised land is not a good use of economic assets. In Hull, with its shortage of G Downstream incentives to establish new land, underutilisation is unacceptable on two product manufacturing capacity linked to fronts – it denies an economic income and it the productivity development in the EZ prevents fiscal benefits flowing back to the but with city-wide impact. community. We wish to discuss a fast track approach to Finally, our vision ... our intent taking land into public ownership through G Hull will be a high design resource compulsory acquisition and/or a fiscal regime efficient trading economy through its that maintains (encourages) private sector modern port investment. This would utilise the Council as a vehicle or the HCA. G Hull will offer a secure future of choices and social mobility and inclusion for its We also wish to discuss: young people; along with a range of quality opportunities for its workforce. G The optimisation of our Enterprise Zones, Those who cannot work will benefit from post exit from the EU, giving them Free- a quality living environment within the zone status for UK waters; and UK’s most successful city.

G The potential for a rapid switch to vehicle and vessel electrification We are committed to our plan G Housing Zone status as part of a bespoke Housing Deal and our intent is clear. With the backing of Government, we will G Heartlands Knowledge Zone deliver our vision. 19 City Deal brochure 25118 artwork_Layout 1 15/03/2018 13:53 Page 20

A PROPOSITION TO GOVERNMENT... HULL A PROSPECTUS TO INVEST

cityplanhull.co.uk

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