Powering the Welsh Economy cardiffcapitalregion.com Contents 02 — Powering the Welsh Economy Appendix 38 Way forward 34 Identity Innovation &growth Skills 26 Connectivity 20 Delivering thevision Cardiff Capital Region today A globalperspective Background &context Vision &mission Foreword 04 06 08 36 28 10 18 14 Cardiff Bay and the Region beyond This report directly addresses the 1. Connectivity Foreword challenge the Cardiff Capital Region 2. Skills Board was set by the Welsh Government 3. Innovation and growth Minister for Economy, Science and We have been transparent in our work. Transport, Edwina Hart, MBE, CStJ, I have appeared before the Enterprise AM, in November of 2013. and Business Committee of the National Our challenge was to advise the Minister Assembly for Wales to assist with their on how best “to provide the leadership, inquiry into City Regions, and I took vision and strategic direction for the comfort from the cross-party support, City Region”, setting priorities in the at the Committee, for the City Region context of an “innovative Region of concept. We have published notes of distinction, connected communities and our Board meetings on-line. places planning their future together In this report, we show that a Cardiff to maximise the opportunities of their Capital Region has the qualities and people”. characteristics to power Wales forward. The Board has met every month, This is not about the Region pursuing during which we have visited all ten its own interests at the expense or local authority areas in the Region. exclusion of the interests of wider We received and discussed numerous Wales. We believe a Cardiff Capital presentations and papers from a variety Region, strategically-aligned and with of individuals and organisations. In an overarching unity of purpose, has addition, we engaged with a wide range the potential to fundamentally transform of stakeholders, held workshops and the lives not only of the people living events (as outlined in the appendix to within the Region, but of all of the this Report), met with all of the Local people throughout Wales. Government Leaders in the Region, We need to unite the people, the and taken advice from their officials. resources, and the opportunities of the This process informed the delivery Region. Time is of the essence, and themes that we have identified and developments in relation to the Planning focussed upon in this Report, and Bill and public service reform mean that which sit within the broader context it is opportune to drive strategic and of developing and communicating a transformational change. positive identity for our Region:

“We believe a Cardiff Capital Region, strategically aligned and with an overarching unity of purpose, has the potential to fundamentally transform the lives not only of the people living within the Region, but of all of the people throughout Wales.” Powering the Welsh Economy the Welsh Powering 04 — This is particularly true in terms of the The Region has a rich history and establish a not-for-dividend subsidiary of pressing need to better align transport, heritage. It was the iron cauldron of the Welsh Government, initially advising economic development, and land-use the industrial revolution, and with its upon electrification, the rail franchise, planning. mining and export of coal, it was the and plans for an integrated transport world’s first ‘Energy Region’. Looking to system in the Region, is significant in The Planning Bill recognises that the future, harnessing the tidal regime this regard. some planning issues need to be tackled of the Severn estuary may provide new at a larger than local level and require The watchwords of our Board and our opportunities for the Region. Whilst we a more strategic approach that work over the past year have been respect and pay tribute to that proud embraces local authorities, community, ambition, connectivity, skills, innovation, history, we must not allow our ambition environmental and business interests. transformational growth, sustainability, for the future to be constrained by it. We also acknowledge the Welsh inclusivity and opportunity for all. The Our Report highlights that the seeds of Government’s ambition for local publication of this Report is the product our future prosperity are already being authorities to drive change by coming of that sustained effort and fulfils our sown in education, the private sector together to share powers and remit “to provide the leadership, vision and with a global sporting and responsibilities. These moves are very and strategic direction” for the Region. cultural offering. much in tune with the strategic agenda Now the hard work has to begin. for change in this Report, and which Our centres of learning in our schools, As a Board we have been consistent requires collaborative working across further education colleges, and in our messaging that our role is advisory administrative boundaries. We begin universities are already delivering a in helping to set the vision, mission, and from a sound base, recognising that skilled work-force and are creating strategy for the Cardiff Capital Region. there is already a good working valuable intellectual capital. The This reflects our 18-month term of relationship between Welsh Government University of South Wales and Cardiff appointment as a Task and Finish Board. and Local Government – but that there Metropolitan University have growing With the publication of this Report, needs to be greater clarity in reputations and Cardiff University has the advisory phase of the Cardiff Capital understanding roles and responsibilities. recently been ranked in the top 5 Region journey is drawing to a close. Local Government already has existing Universities in the UK for the quality We now find ourselves on the cusp of economic development powers – and of its research. The Cardiff Internet the implementation and delivery phase. these need to be used for the Region Exchange and BT Nexus Node support The job of implementing operational as a whole to deliver improved high quality and rapid data transfer to delivery must be undertaken by a efficiency and impact. London and beyond, and the Region’s different and appropriately accountable already installed fibre is comparable Our case for change is compelling. structure or structures. This brave new to leading countries globally. The drivers are both external and model of strategic regional delivery will internal to the Region, international While economic growth is spatially need to build trust and confidence and and domestic. These are set out in uneven, economic development can forge a renewed private and public sector chapters two and three of this Report be socially inclusive if the Region is relationship at local and national levels. on the ‘Global Perspective’ and ‘Cardiff well connected. Good connectivity is I sincerely thank my fellow Board Capital Region Today’. Modern the hub around which all other activity members for their hard work and communications and technology mean is dependent and connectivity is critical patience, the Welsh Government for their that we can compete with other city to ensuring that all parts of the Region constant support, advice, and guidance, regions that may be thousands of miles have the equality of opportunity that and the PwC team who skilfully assisted away, not just a couple of hours by train. they need and deserve. That is why, in us to assemble this Report. I also thank In this global economy, size is important this Report, we have identified that the all of those stakeholders who attended and so the critical mass, influence, delivery of a world-class, integrated and the series of workshops that we held last and economies of scale we can create strategic transport system will profoundly November which have helped frame and through harnessing the collective power transform the economic potential of the inform the content of this Report. I also of a Cardiff Capital Region of 1.5 million Region, advance social inclusion and pay tribute to Welsh Government, Cardiff people is key to our competitive position. protect and enhance our environment. City Council and Cardiff University for The focus upon cities as drivers of The pivotal role of integrated transport their resourcing and housing of the economic growth is a global trend, to these three pillars of sustainable Cardiff Capital Region Support Unit, and the challenge is to spread their development (economic, social and and to so many people who gave us success. The increasing role of cities as environmental), provide the rationale for their time and advice which helped wider economic drivers, as demonstrated our belief that the Region’s governance shape our thinking. in successful city regions in the UK, journey should begin with transport. Europe and further afield underpins The Economy, Science and Transport The Cardiff Capital Region has what our case for change. Minister’s recent announcement to it takes to be great – it is already a fantastic place to live and work for many. Let’s make it significantly better for all. I commend this Report to you.

Roger Lewis Chair, Cardiff Capital Region Board February 2015 Our vision “A globally-connected, great place to live and work — powering the Welsh economy.”

Ambitious Confidence and lifestyle Capitalise on our unique identity and Building on the Cardiff Capital Region’s our ability to power the Welsh economy. reputation as a great place to live, work We are a proud Capital City Region in and play. We are proud of our quality of the United Kingdom which gives us a life, our culture, and the natural beauty platform to think big. we have on our doorstep.

Collaborative Sustained success To make the most of the opportunities A Cardiff Capital Region that is our combined size gives us, we must all successful economically, socially work together - public sector, private and environmentally and which benefits sector, education establishments and all our communities. our communities – for the benefit of all.

Well-connected International and national stage Realising the potential of our excellent Attracts people and investment from people through world class global markets, as well as from other communications and transport – parts of the UK. regionally, nationally and internationally.

Mermaid Quay, Cardiff Bay Powering the Welsh Economy the Welsh Powering 06 — Our mission “ Be an ambitious, collaborative and well-connected Cardiff Capital Region with the confidence and lifestyle to deliver sustained success for our people and compete on the national and international stage.”

Delivering the vision Connectivity Skills Four delivery themes emerge from this Deliver an integrated infrastructure Our Region and our people are vision. These delivery themes represent which allows an effective, efficient and recognised globally for having the the foundations of growth for the sustainable movement of people, goods skills for life that meet the needs of Cardiff Capital Region. and information, regionally, nationally our businesses and our communities. and internationally.

Innovation and growth Identity Support a thriving business community Build a vibrant and internationally with international recognition, driven by recognised Cardiff Capital Region an entrepreneurial culture and leading synonymous with quality of life. academic research. 01. THE BACKGROUND THE CASE FOR CHANGE In 2011 the Welsh Government Minister The drivers for a city region approach Background for Economy, Science and Transport, are both internal and external to the Edwina Hart MBE CStJ AM set up a task Region. These are set out in sections and context and finish group, Chaired by Dr Elizabeth two and three of this Report. Haywood, to consider the evidence for The external drivers include the Global city regions as economic drivers. The Financial Crisis and the changing report issued 22 recommendations, environment of global connectivity, the first of which was: driven by technological advances and “The group strongly recommends that transformed business practices. a city Region be recognised in South East The traditional sources and destinations Wales on the basis of existing patterns of money and people have changed. of movement and the potential for This means that competition between increased interconnectivity together with locations is ever more intense, our the tradition of both social and economic Region is no longer simply in competition interdependence.” with our near neighbours, but also with places thousands of miles away and In response to this report, the Cardiff in different time zones. This changing Capital Region Board was established global environment places an onus upon in November 2013. The initiative brought us to become ever more strategic in together a group of individuals, drawn harnessing the forces of agglomeration from the public and private sectors as to build critical mass, economies of scale an advisory Board. The Cardiff Capital and attract further investment. Region Board has had at its heart, the objective of improving the economic The internal drivers relate to the performance of the Region by providing economic performance of the Region, leadership, vision and strategic direction. and the urgent need to align ourselves to the growing global trend for cities The Board has met regularly and has to act as drivers and catalysts of wider pursued an intensive work programme. regional economic development. This has seen it receive, discuss and We need to up our game so that the consider a wide variety of input from economic performance of our Region a range of private and public sector punches above its weight. stakeholders. The publication of this Report is the product of that endeavour.

Blaenau Monmouthshire Merthyr Gwent Tydfil

Torfaen

Rhondda Cynon Taf

Newport

Bridgend

Cardiff

Vale of Glamorgan 10 local authority areas of Powering the Welsh Economy the Welsh Powering The Cardiff Capital Region 08 — “ The key arguments City regionalism is a concept that reflects the idea that most people and for a city region businesses operate beyond the local authority boundaries in which they live approach are based (i.e. functional economic areas). These around the benefits facts coupled with the Region’s economic performance are driving a need for that can arise through change. scale, shared risk and The key arguments for a city region reward and efficient approach are based around the benefits that can arise through scale, shared risk and coordinated and reward and efficient and coordinated investment decisions.” investment decisions. City regions are not unique to the UK – they are driving economic growth in Europe and further afield. Many continental regions have operated as city regions for a long time. Stuttgart, Cardiff’s twin city, has operated a city region for a number of years as have cities such as Oslo, Auckland and a number of major US cities. The rapidly growing Asian cities are also increasingly operating as city regions. City regions have also been recognised by the European Commission and connectivity and cohesiveness are key themes in the new funding programme.

Admiral Insurance, Central Cardiff Enterprise Zone GLOBAL OUTLOOK The Global Financial Crisis has also 02. highlighted the difference in economic The global market for capital, skills performance between developed and A global and resources is changing rapidly. The emerging markets. Asian and African Global Financial Crisis has shown that economies are forecast to grow at 6% perspective the traditional sources and destinations per year over the next 5 years, and the of money and people have changed, Middle East at over 4%. In contrast, meaning that the Cardiff Capital Region the Eurozone is forecast to grow at less is operating in a more competitive than 2%. Even the UK, which is currently environment, on a UK, European and the bright star of Europe, is forecast to global level. To succeed in this new achieve only 2.5% per year02. world we must ensure that competition for projects within the Cardiff Capital So why would anyone invest in the UK? Region is put aside in favour of the wider competitive environment. Fortunately, there are still some very good reasons, including: First, people and capital are more mobile – and have more choice – than ever — The UK is a stable, well-regulated before, meaning that cities and economic economy. This means it is viewed regions are now competing with other as a safe place to invest; cities that may be thousands of miles — The UK still has skills and capabilities and several time zones away, not just that are in demand elsewhere in a couple of hours by train. Big companies the world; have operations all over the world, and — The UK corporation tax rate will be can choose which location provides the lowered to 20 percent in April 2015, best environment to meet their needs. the lowest rate in G7 and joint lowest A business with its HQ in the UK might in G20; choose to have manufacturing in China, — The UK was ranked second among suppliers in North America, R&D in India G20 countries for ease of doing and call centres in Ireland, for example. business in the World Bank’s 2013 Similarly, it is estimated that over 230m Doing Business survey. people01 worldwide now work outside the country of their birth, demonstrating that The above reasons mean that there people are willing to relocate to find the are many investors globally who view best opportunities. the UK as an attractive market. Indeed, there were 1,773 new Foreign Direct In addition, the traditional sources of Investment projects recorded in 2013/4. skilled people and capital – developed But the investors are not the same ones markets – no longer have a monopoly. as before, and they are looking for Large cash surpluses are being generated different things. We are seeing fewer in emerging markets, for example in major ‘greenfield’ investments into new India, China, Malaysia and the oil- manufacturing facilities, for example, producing countries in the Middle East. as there are parts of the world that are In some cases, the domestic economies more attractive for these than the UK. are too small or under-developed to We are seeing a demand for absorb this money, meaning they are infrastructure investments, skills- looking for suitable investments in based investments and investments other countries. This is giving rise to into existing UK businesses. Sovereign Wealth Funds and fast growing businesses that are looking to expand Infrastructure investments include or invest, often outside their home China’s proposed investment in a market. Other countries are producing new nuclear reactor at Hinkley Point, skilled people at an increasing rate – Abu Dhabi’s investment in the for example, India now produces over regeneration of East Manchester, 800,000 graduate engineers per year. and Dubai’s development of the London Gateway container port. It is becoming harder for developed market cities to compete. Cities in Skills investments include the trend the developing world often benefit of ‘near shoring’ support functions from ‘state-directed capitalism’, where to lower-cost locations in the UK and governments – for example those in Ireland. Etihad Airways has chosen to the Gulf or South East Asia – build establish one of its global call centres infrastructure and pursue economic and its global online support operation strategies at a pace that cannot be in Manchester, for example. matched by western democracies. Investments into established UK Modern Doha, for example, has businesses include Tata’s investment in been built in ten years. Jaguar Land Rover which has enabled a UK business to expand into new markets, funded by Indian capital. Powering the Welsh Economy the Welsh Powering 10 — Atradius – Trade Credit Management, Cardiff Bay What does this mean for the For certain types of investors – for 02. Cardiff Capital Region? example Sovereign Wealth Funds – we also need to help identify specific A global We believe that if we are to compete in opportunities for them to invest in, and this new global market, we must develop provide support to help make it happen. perspective the capabilities, resources and critical This global perspective does not mean mass to give us a competitive advantage. turning away from our important role as We must also present and market these the economic engine of Wales, or as one globally in a compelling and consistent of the UK’s four capital cities. Rather, it way. Investors from new markets may means that our horizons and aspirations not know much about the Cardiff Capital should be aligned to the new world Region at the moment, so we need to market and not just to the competition actively promote it, rather than expect between UK cities. The Cardiff Capital them to come to us. We need to make Region needs to be economically investors aware of our skilled workforce; relevant on three levels: to Wales, to the and exciting mix of businesses across the UK and to the global market. Our ‘value region – which range from aerospace proposition’ will explain why people and defence, to life sciences, to marine and investors should come to the Cardiff business services. We are home to: Capital Region – whether they are from Bangor, Birmingham or Beijing. — The world’s leading contract manufacturer of semiconductor wafer Looking to the future, products for wireless components building on the past such as mobile phones; — The servicing of BA’s long–haul Cardiff Capital Region has a long and aircraft fleet at Rhoose; proud history in the global economy. — Leading e-commerce companies In the 19th century, coal from our including Confused and Go Compare; valleys fuelled the industrial revolution. — A University which is ranked in the top It powered ironworks, factories, trains 5 UK Universities for research; and steamships all over the world. As a — The production of leading TV series result, people flocked to Cardiff, which such as Dr Who, Sherlock andCasualty grew from a small village of 1000 people and shortly a significant new BBC in 1801 to a city of nearly 200,000 by Wales National Broadcasting Centre; 195003. We were the world’s first Energy — The Cardiff Internet Exchange, City Region. one of only 5 exchanges in the UK. Powering the Welsh Economy the Welsh Powering 12 — At the start of the 20th century, a new Communications technology is This third industrial revolution industrial revolution saw the advent of underpinning this change. The first provides Cardiff Capital Region with the internal combustion engine and mass industrial revolution was aided by an opportunity to reclaim its global production. This revolution was powered the powered printing press, which economic relevance. A new style of by oil. As oil took over from coal, the allowed the mass distribution of business is emerging, which is more Region’s economic prosperity plateaued ideas and information. The second distributed, more collaborative and and its growth stagnated. industrial revolution was aided by the more social. As new communications telephone, which enabled immediate and manufacturing technologies drive Now, at the start of the 21st century, direct contact over long distances for down the cost of business, more and many people believe that we are on the first time. The Region played an more of us can become entrepreneurs the cusp of a third industrial revolution. important role in the early development and collaborators, producing our own Western countries are reducing their of telecommunications – Marconi carried energy, information and products for dependency on oil and other fossil fuels, out the first transmission over water highly targeted markets. As a beautiful replacing them with renewable energy. between Flat Holm Island and Lavernock Region with a high quality of life, Cardiff Instead of a few large power stations Point. Now, the third industrial revolution Capital Region is well placed to attract burning oil or gas, the new energy system is being aided by the internet, which the people and entrepreneurs that will will consist of a large number of smaller is enabling new ways of working and drive this new economy. Businesses can generators harnessing the power of the radically changing many industries and locate here and provide their products, sun, wind, waves and tide supported by ways of life. We have a strong installed services or information to customers a smaller number of larger facilities using fibre optic network – 96% of homes anywhere in the world. a range of technologies. Households and busineses will have access to fibre and communities will start to generate This is what we mean by ‘looking broadband by 2016, we house the Cardiff their own power, and this multitude of to the future, building on the past’. Internet Exchange one of only 5 in the generators will be connected together We have inherited a proud history, rich UK, we are home to Europe’s largest by a ‘smart grid’ that can allow the flow culture, landscape and natural resources. Tier 3 Data Exchange, we have a direct of power from any source to any user, Our challenge is to make this inheritance Nexus Node link into London and aspire in the same way that the internet allows relevant for the new economy, and to to establish direct links with the major the limitless flow of information. use it to attract people, businesses and transatlantic fibre network. This will organisations that are investing for give us an unrivalled digital platform the future. compared to other competing UK Regions.

Brecon Beacons, Northern border of the Region 10% 14% Region today Cardiff Capital 03. Overall unemployment rate 2013 12% 0% 4%

6% 8%

14 — Powering2% the Welsh Economy

5% Monmouthsire

8% Bridgend

9% Caerphilly 06

by location ofresidence

7% Newport

total Gross Value Added Wales, generatingmore thanhalfofthe The Region iseconomically significant for the same period. Cardiff itselfgrowing by 5.7% over grew by 2.4% from 2008-2013, with Wales. Thetotal population oftheRegion to almosthalfofthetotal population of population of1.5m (2013)whichequates to Monmouthshire. TheRegion hasa c.60 milesofcoastline from Bridgend East Region ofSouth Wales spanning authority areas covering theSouth The Region isformed local of10 countryside andcoastal belt. afabulous cities, industrial heartland, city, market important towns and economy comprising avibrantcapital The Cardiff Capital Region hasadiverse An economic profile unemployment rates andaverage wages. Valleys Region, withawidevariation in and thelessdeveloped Headsofthe the more prosperous coastal areas in economic performancebetween Within theRegion, there isadisparity order to close thegap. have to dothingsverydifferently in over thelast8years, meaningwe will rest oftheUK.Thisgap hasincreased is lessproductive onaverage thanthe GVA perhead,meaningthatour Region generating only80% oftheUKaverage the Region lagsbehindtheUKaverage, in 2012.However, onaper-headbasis,

9% The Vale of Glamorgan of Vale The

7% Cardiff

04

8% Merthyr Tydfil Merthyr (GVA) inWales

10% Torfaen

Torfaen (20%). RhonddaCynon(26%), Taff (22%) and unemployment rates inBlaenau Gwent 13%. Thisisdriven by veryhighyouth 25 is15%, compared to aUKaverage of Gwent. Unemployment for those under in Monmouthshire and13% inBlaenau there issignificant between disparity 5% Wales andtheUK.WithinRegion is 8%, slightlyhigherthantherest of Unemployment intheRegion asawhole authority to another every day to get 210,000 peoplemove from onelocal where peoplework. OurRegion sees Where peoplelive isnot thesame as UK average (excluding London). wages andbringthese inlinewiththe a step changeto both GVA andgross of Cardiff itself. Ouraspiration is to make Heads oftheValleys as itisto theCity and itmust beasmeaningful to the the Cardiff Capital Region isinclusive, modern, thrivingRegion. Ourvisionfor of theCardiff Capital a Region as not acceptable ifwe are allto beproud investment. Thiseconomicis disparity and loyal workforce to attract new advantage ofour skilled,productive our advantage andpromote thecost term we must use thiscost benefit to lower thantheUKaverage. Intheshort Average gross wages intheRegion are of £518perweek. compared withaGreat Britain average Gwent theaverage wage isonly£398, average aweek, £578 whereas inBlaenau Monmouthshire residentsearnon show awidevariation across theRegion.

10% Rhondda Cynon Taff Cynon Rhondda

13% Blaenau Gwent Blaenau 06

Average wages also

8% CCR

7% Wales

7% UK to work. For example, over 100,000 GVA per head by place of work, 2004 — 201205 £000, current prices people move in and out of Cardiff daily, with significant migration from the CCR neighbouring local authorities such Wales as the Vale of Glamorgan, Rhondda UK Cynon Taff and Caerphilly. In 2012 the Region had c.34,000 businesses and c.659,000 jobs. 35% of all jobs are in public sector administration, education and healthcare. We are underweight, relative to the UK as a whole, in jobs in sectors such as Financial and Professional services, Transport and Logistics, and Information and Communication. 2005 2006 2007 2008 2009 2010 2011 2012 Drawing from its industrial heritage, the Region has expertise in manufacturing both in the south as well as in the Heads of the Valleys including an established MRO11 base in St. Athan, offering services to aerospace and defence companies, as well as automotive component expertise in Blaenau Gwent, 25,000 serving world class OEMs. The Region’s anchor manufacturing businesses include BT, Ford, Airbus, GE Aviation, General Dynamics, Sony, IQE, Doncasters, BA 21,250 Maintenance, Meritor, TRW etc. The Region is also home to several high quality educational institutions, including three universities, which are developing 1 7,500 new Intellectual Property (IP) across a number of fields, ranging from urban planning to alternative fuels and life sciences. Underpinning these strengths 13,750 is a strong base of human capital that, if effectively deployed, can propel the Region towards greater prosperity. 10,000

Gross wages by place of residence 201407 £ per week, by location of residence Monmouthsire ValeThe of Glamorgan Cardiff Bridgend Rhondda Cynon Taff Caerphilly Torfaen Newport Merthyr Tydfil Blaenau Gwent CCR Wales UK

700

600

500

400

300

200 480

100 468 462 485 435 398 479 535 578 491 481 518 471

0 03. Daily commuter movements in the CCR, 201108 Net movement, (000s people) Outflow Cardiff Capital Inflow Region today Cardiff Newport Rhondda Cynon Taff Bridgend Caerphilly Torfaen ValeThe of Glamorgan Monmouthshire Merthyr Tydfil Blaenau Gwent

80

60

40

20 30 73 14 16 19 13 13 17 0 9

0 (32) (21) (36) (18) (35) (15) (26) (18) (9) (12)

(20)

(40)

(60)

However, in many sectors there is a In addition to driving private sector lack of critical mass in the private sector employment, the Region should to retain the talent being developed in continue to encourage infrastructure our Region. In order to generate this investment. The last 25 years have seen critical mass of business activity, the significant regeneration activity across Region needs to encourage businesses, the Region with many major investments both small and large to set up and to redevelop heavy industrial areas and remain in the Cardiff Capital Region. the creation of new business parks, Small and medium sized businesses housing and recreational initiatives. are important for generating disruptive Projects have included the Cardiff Bay new innovations and cultivating a regeneration and the reintroduction of vibrant entrepreneurial spirit, but need a passenger rail service to Ebbw Vale, to be complemented by large anchor in addition to major road infrastructure businesses which form the pillars of works. A number of these projects job creation and stability. Our Region were delivered using public private is home to a number of multinational partnerships (PPPs), supported by companies, many of which are global European funding. The Welsh leaders in their sectors. These, along Government recent announcement with our larger, indigenous businesses of the creation of a not-for-dividend are our Region’s “anchor businesses”. company, as a key part of its approach However, the Region suffers from a to delivering a more effective integrated shortage of large, locally headquartered transport system in Wales, further businesses employing in excess of 1,000 evidences this approach. staff. The Region needs to increase the size of the private sector to help rebalance the economy. Powering the Welsh Economy the Welsh Powering 16 — Population of Major UK Major Urban Conurbations, 201309 millions Leeds City Region City Leeds Greater Manchester and Nottinghamshire Derby, Derbyshire, Nottingham and Solihull Greater Birmingham North Eastern Belfast Sheffield City Region Glasgow Region City Edinburgh Region City RegionLiverpool City CCR West of England Swansea Bay Region City

3.5

3.0

2.5

2.0

1.5

1.0

0.5 0.4 2.0 3.0 2.7 1.9 1.8 1.8 1.8 1.6 1.5 1.5 2.1 1.1

0

Share of total employment Despite the investments made over political and social role in representing by sector 201310 the last 25 years, large elements of the and leading Wales. Region continue to be defined as some This represents our starting point, our of the most economically deprived CCR Wales UK platform for growth. Combined with our areas in Europe and therefore remain history, culture and natural environment, eligible for the maximum level of it gives us an opportunity to be different financial support from European Funds. and so to punch above our weight. Our This support will remain in place until vision for the Cardiff Capital Region a minimum of 2020 and the Region describes how we will build on this needs to ensure that it maximizes the platform by focusing on what makes us economic potential of this funding to stand out, offering something distinctive drive growth. to entrepreneurs and organisations. Our economic performance needs to Further, by making an investment in improve if we are to achieve the growth our infrastructure today, particularly 5 and equality we desire. However, transport, we can actively prepare for the population of Cardiff and the the inevitable movement of people, Cardiff Capital Region is modest when goods and information associated with 4 compared to other competing UK cities economic growth. 12% 9% and regions. If we try and compete on 12% We have the opportunity to collaborate large metrics we will not succeed – we more closely beyond our boundaries 3 need to focus on areas of competitive on key initiatives to counter the critical advantage. Cardiff is one of only four 15% 16% mass of other UK regions for the mutual 16% capital cities in the UK – it offers capital benefit of the Region and Wales. city attributes without the drawbacks. 2 At the table with London, Edinburgh 17% 14% and Belfast, Cardiff has an economic, 22% 5 Others 1 4 Manufacturing 3 Wholesale and retail, incl. motor trades 2 Financial and other business services 35% 35% 28% 1 Public admin, education and health 04. “Deliver an integrated Delivering the vision infrastructure which allows an effective, efficient and sustainable movement of people, goods and information, regionally, nationally and internationally.”

Four delivery themes emerge from Connectivity Skills this vision. These themes represent Deliver an integrated infrastructure, Our Region and our people are the foundations for growth for the which allows an effective, efficient recognised globally for having the Cardiff Capital Region. and sustainable movement of people, skills for life that meet the needs of goods and information; regionally, our businesses and our communities. nationally and internationally.

Innovation and growth Identity Support a thriving business community Build a vibrant and internationally with international recognition driven by recognised Cardiff Capital Region an entrepreneurial culture and leading synonymous with quality of life. academic research. Powering the Welsh Economy the Welsh Powering 18 — Second Severn Crossing, Eastern border of the Region TRANSPORT INTRA-REGION TRANSPORT 04a. Successful city regions have high With a growing population and increasing Connectivity performing integrated transport systems levels of commuting – especially into that allow for the seamless and efficient Cardiff - the pressures on our Region’s flow of people and goods, feeding key transport network, particularly the hubs (employment, residential and road network, will increase. 65% of recreational) effectively and supporting commuters to Cardiff rely on cars as sustained economic growth. Those their primary mode of daily transport, regions with global aspirations are also compared to comparable cities with well supported by national and international integrated public transport systems such transport gateways fully connected to as Edinburgh (40%) and Manchester their transport infrastructure. The Cardiff (56%). Our position is not sustainable Capital Region has the building blocks and if unaddressed will be an inhibitor necessary to develop a game changing to economic growth and quality of life in integrated transport infrastructure our Region. The Region has a number of offering ease of use to travellers and excellent Sustrans cycle routes, but use economic benefits to the Region and of bicycles for daily transport is below Wales. This economic, social and leading green cities. Increased bicycle environmental benefit will only fully be usage could enhance quality of life in our achieved if transport planning is more Region. closely aligned with land use planning. The settlement for financing the An integrated transport system aligned Valley Lines Electrification (“VLE”), with land use planning could be a catalyst electrification of the Great Western for economic change across the Region. Main Line (“GWML”) and the creation At the heart of this aspiration is the of a pan Wales not-for-dividend transport Metro vision for a modern high quality company is positive news for our Region. multimodal, integrated public transport Our challenge is to maximise the network; offering rapid, frequent and opportunity this presents as part of an reliable services; linking communities integrated transport solution (rail, road, together and supporting economic bus, cycle and walk) that extends development; to create a dynamic, beyond the Region. sustainable and liveable city region. The Metro has been subject to a number We need to ensure that the electrification of studies commissioned by Welsh investment is a catalyst for further Government and further detail investment with an ambition to provide on these are available at: a fully connected region providing a 45 minute, minimum 4 times an hour http://wales.gov.uk/topics/transport/ service from the Valleys into Cardiff via a public/metro/?lang=en seamless transport system supported by smart ticketing and overcoming current infrastructure capacity constraints. An integrated transport solution will be symbolic of the transformation of the Cardiff Capital Region, uniting the Powering the Welsh Economy the Welsh Powering

Potential Metro smartcard 20 — Region and enabling it to raise its profile however, their effectiveness is limited by and compete more effectively in today’s existing known bottlenecks, particularly global market, ensuring an equality of the Brynglas tunnel in Newport. There opportunity across the Region. has been significant recent investment in improving the Heads of the Valleys An integrated transport system linking (A465) and the Welsh Government has key employment, entertainment and identified the M4 relief road as a priority. residential hubs will provide new The future economic growth of the investment opportunities. We need to Region and Wales is dependent on these be innovative in how we develop and investments being delivered. package these, supported by European Funds and Welsh Government monies, The second Severn Bridge provides a to be investor ready and use them to spectacular road gateway into the Region unlock external funding sources such and Wales however, it comes with a as Sovereign Wealth Funds. We also cost. With the bridge reverting to public need to be proactive in taking these ownership later this decade, there is an opportunities to investors globally. opportunity to review the emotive issue The potential significant benefits are of a significant toll charge to enter Wales. economic, social and environmental. There is a regular 2 hour travel The Region will need to give further journey to London Paddington, and consideration to housing development with electrification, this journey time is and in particular what, where and for expected to reduce to 1 hour 45 minutes, whom such developments are taken the same journey time as the mid 1980’s. forward. The Region requires an A number of our competitor cities in appropriate mix of housing that is well England have already seen reduced served by transport connections. journey times and these are set to reduce This further underscores the need to further. We must have an effective align transport and land-use planning. dialogue about a more direct London service with fewer stops. A minimum INTER-REGION TRANSPORT twice an hour, sub 90 minute direct train service from Cardiff to Paddington To drive economic growth and maximise and Heathrow is a must, along with the economic impact, it is essential that sub 40 minutes travel time to our near we improve the Region’s connectivity neighbours in Swansea and Bristol. both internationally and to key UK In addition to improving the frequency centres including, for example London, and journey time, we also need to where the combined impact of Crossrail improve the experience. Communication and electrification will make a significant on the move is a requirement of impact on journey times. business life. The current mobile and Currently road access in and out of the Wi-Fi provision between London and Region is largely based on the M4 to the the Region and within the Region is south of the Region and the A465 to the inconsistent. We need to ensure that north, or through train travel, particularly there is a consistent and reliable mobile to London. The M4 and A465 connect and data service on all public transport the Region to the national road network into and across the Region.

Potential Metro branding and transport livery INTERNATIONAL TRANSPORT is proceeding at pace across the 04a. Cardiff Capital Region with large parts The Region has its own airport situated of the Region already covered, providing Connectivity next to the Severn in the south west reliable and high speed broadband of the Region, which the Government access. We need to ensure that this acquired in 2013. The airport boasts a and future investment provides a long runway, capable of taking the A380 resilient, diverse and price competitive jet, offers an “over water” approach and broadband service to all users, be they is the base for BA’s long–haul aircraft business or consumer. maintenance facility. To be considered The Region needs to capitalise on the as a globally connected, investor ready significant fibre backbone already Region, we must have an accessible, deployed, and a number of key digital thriving international airport operating support capabilities to drive economic as a “Gateway to Wales”, hosting major growth, including: carriers and serving the major global business and tourist destinations. — Cardiff Internet Exchange offering All the world’s major capital cities are direct access to the world wide web; supported by international airports they — The Next Generation Data Centre, can be proud of and numerous studies Europe’s largest Tier 3 data centre; have demonstrated how increased air — The BT Nexus Node supporting travel increases business investment. highest quality and high-speed data Significant investment is ongoing to transfer to London. improve airport access, infrastructure and route development and these must continue to ensure an international gateway into the Region.

DIGITAL

Digital technology has transformed the way we live and the way businesses operate and will continue to drive change as the third industrial revolution progresses. Leading modern countries and regions offer high speed, reliable and cost effective broadband to support the flow of information. This is now a ‘must have’ for any city region with global aspirations and is critical for economic growth. For example, Japan and South Korea, two leading nations that embody innovation, manufacturing excellence and world class communication, have high speed broadband covering over 90% of their premises. Wales compares favourably with these and other leading nations - by 2016 96% of homes and businesses in Wales will have access to fibre broadband. Wales is leading the way with the roll out of superfast broadband in the UK. Superfast Cymru

Potential Metro station design Powering the Welsh Economy the Welsh Powering 22 — We need to expand the intelligent use — Strategic road improvements to — Continue to support the development of fibre and ensure that business and address known “bottlenecks”, for of initiatives to actively encourage the consumers understand the benefits and example M4, A470 and Heads of take up and use of broadband services take full advantage of this fibre capacity the Valley; for SME businesses and consumers for to deliver measurable economic benefit. — A public transport system, including economic benefit; cycleways and cycle facilities, that — Increase the availability of 4G across Our installed fibre base is comparable encourages their greater patronage Wales as part of ensuring consistent to leading countries globally and ahead as a preferred mode of day-to-day and ubiquitous mobile coverage. of most UK and European regions. transport; We have an opportunity to build on this — Work with other regions to leverage What it could look like investment and become known as a the demand to improve train access leading European digital region, offering between Wales, Bristol, London and — Regular sub 45 minutes journey times business and individuals’ unrivalled the Midlands; from the Valleys to the urban centres digital connectivity. — Establish a seamless, multi-modal of Cardiff and Newport; The Cardiff Internet Exchange is one transport system that allows the user — A public transport infrastructure that of only 5 internet exchanges in the to travel on public transport anywhere links key employment, entertainment UK. Given our location to the West across the Region using a single and residential hubs; of the UK we are situated close to the smart ticket; — An international airport, linked to major transatlantic data cable access — Encourage the airport to develop the Regional transport infrastructure, points in the South West of England. its commercial propositions to airlines supported by major carriers and A direct connection between Cardiff serving major business destinations. serving the major business and transatlantic data cables would destinations; Digital: make us the closest Internet Exchange — A UK-leading transport infrastructure — A direct link between the Cardiff to the East Coast of the US and provides offering an unrivalled passenger Internet Exchange and the the opportunity to become a major experience with reliable mobile transatlantic telecommunications internet exchange and London’s preferred and Wi-Fi access on journeys into cables landing in the South West “back-up”. This, coupled with our existing and within the Region; of the UK thereby providing direct infrastructure, would also enable the — A leading e-commerce infrastructure data access to the US and other Region to become a destination of with direct data connections, via global markets; choice for global e-commerce companies the Cardiff Internet Exchange, to — Consistent and reliable mobile and looking to serve the UK and Europe. major transatlantic and other global Wi-Fi service on all public transport cable networks making us the Region The Region is supported by the major into and throughout the Region; of choice for global e-commerce mobile operators however, there are — European leading broadband and companies; coverage black spots. Continued mobile services offering a reliable, — An environmentally-friendly transport investment is required to eliminate these diverse, resilient and price competitive system incorporating a network of and ensure that current 3G and the new provision to business and consumers cycleways that allows easy use 4G mobile coverage is available from all alike; of bicycles as an integral part of the major operators across the Region. — Consistent data access in all our major the network; towns and cities; — Secure and consistently rapid Opportunities — Actively leverage the Region’s digital Wi-Fi and 4G mobile access across strengths, for example the Cardiff the Region; Transport: Internet Exchange – one of only 5 — Reliable road journey times — Augment the Valley Lines Electrification in the UK and the closest to the across the Region. programme to deliver more frequent, major centres in the US; reliable and affordable rapid transit services across the Region; — Build on the electrification of the GWML to provide services to London with journey times of ninety minutes or less and a direct rail link to Heathrow from Reading; Merthyr Hirwaun Tyd­l Rhymney Ebbw Vale Town Abergavenny

Ebbw Vale Aberdare Pentrebach Parkway Tir–Phil Abertillery

Llanhilleth Pontypool Bargoed & New Inn Treherbert Treharris Ystrad Nelson Mynach Newbridge

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Tonypandy Porth Cwmbran Pontypridd Coryton Caerphilly Maesteg Treforest Rogerstone Treforest Estate Ta†’s Well

Heath Radyr HL/LL Llandaf Caerleon Creigiau Cathays Celtic Pye Corner Roath Park Springs Talbot Green Crwys Rd QUEEN ST Chepstow Fairwater CARDIFF Malpas Celtic CENTRAL Manor

NEWPORT BRIDGEND St Mellons

Brackla Pontyclun Newport Rd Magor Severn Tunnel Llanwern Junction Ely Royal Mill Butetown Gwent

Culverhouse WMC Cross Grangetown

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Llantwit Cardi† Cogan Penarth Porthcawl Major Airport Barry Island Merthyr Hirwaun Tyd­l Rhymney Ebbw Vale Town Abergavenny

Ebbw Vale Aberdare Pentrebach Parkway Tir–Phil Abertillery

Llanhilleth Pontypool Bargoed & New Inn Treherbert Treharris Ystrad Nelson Mynach Newbridge

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Tonypandy Porth Cwmbran Pontypridd Coryton Caerphilly Maesteg Treforest Rogerstone Treforest Estate Ta†’s Well

Heath Radyr HL/LL Llandaf Caerleon Creigiau Cathays Celtic Pye Corner Roath Park Springs Talbot Green Crwys Rd QUEEN ST Chepstow Fairwater CARDIFF Malpas Celtic CENTRAL Manor

NEWPORT BRIDGEND St Mellons

Brackla Pontyclun Newport Rd Magor Severn Tunnel Llanwern Junction Ely Royal Mill Butetown Gwent

Culverhouse WMC Cross Grangetown

Rhoose Barry

Llantwit Cardi† Cogan Penarth Porthcawl Major Airport Barry Island

Potential Metro map The opportunity for the Region is to the opportunities for our youngsters 04b. develop a globally-recognised,responsive to work within our anchor businesses education and training system which is and larger SMEs including internships Skills closely aligned with the needs of local and apprenticeships. and inward investing businesses. Education and training providers need Historically, we have been known for our to continue to develop their programmes skilled and committed workforce with and curricula based on the skills that a focus on traditional heavy industries. businesses actually require. The Region Today, we continue to have a focus on needs to champion recognising the value key industry sectors such as bioscience, of both academic and vocational routes advanced manufacturing (including into employment. The Region will only aerospace, defence, engineering and achieve its potential if we have alignment automotive) and newer ventures in the between education and training creative industries and financial and providers and the business community. professional services sectors. Education and training providers must work with the commercial sector to Our Region has above UK average understand their needs and in turn, unemployment, lower than average businesses must articulate their wage costs and areas of high deprivation. demands early and clearly enough so that Our Region also suffers from higher than education and training can be adapted UK average youth unemployment with accordingly. This will require education areas of particular challenge. Whilst this establishments to become more focused provides a challenge, it also provides an on key sectors, for example software in opportunity – our Region offers a broad Newport, financial services in Cardiff and skill set and competitive cost base within manufacturing in Ebbw Vale thus making the UK. However, there is a clear and it easier to forge strong links with anchor consistent message from businesses businesses. The Region needs to create across our Region that the skillset, an environment which enables people to particularly from school leavers, is not flourish, irrespective of their background always aligned to business needs, with and ability. The Region should aim to be some individuals lacking basic practical recognised as a leading location for the skills. Upskilling the local workforce and provision of employment–ready people matching skills with opportunities, supported by a world class education will bring numerous benefits for both and training system aligned to the needs individuals and the local economy. of the business community and thus The Region has a high density of higher become the envy of other regions. education institutions with three The Region’s further and higher universities, one of which is research education providers have a role in intensive, with a number of departments bridging the supply-demand gap, recognised for their excellence. There talent spotting and actively supporting are more than 70,000 students at the the marketing of the Region as the Region’s universities, nearly 15% of which place to build a career. There is an are international students, and nearly opportunity for the Region to build on 100,000 students in our further education existing academic expertise through colleges. Tapping into this rich pool of targeted investment, to enhance talent is vital – we must ensure that we international recognition in key fields. retain our value – creators, make the area Any such investment must be in fields the Region of choice for the ambitious that are capable of generating business and enable all our people to build their growth in the Region. We are supportive careers in the Region. We need to build of the Welsh Government’s Skills on the existing links between business Implementation Plan, the outcome of the and the education sector to ensure that Donaldson Review and the framework students are fully aware of the local for co-investment in skills which aims opportunities. We also need to expand “Our Region and our people are recognised globally for having the skills for life, that meet the needs of our businesses

Powering the Welsh Economy the Welsh Powering and our communities.” 26 — to rebalance the responsibility for skills Opportunities What it could look like investment between government, employers and individuals. We are also — A role for regional oversight of — Highly-skilled workforce that meets supportive of the creation of the regional priorities in continuing to develop an the needs and aspirations of our Employment and Skills Board to engage education and training system that businesses and our communities; with business and other stakeholders is recognised globally for its excellence — A Region which is truly aligned to develop an Employment and Skills and innovation; between its education outputs and Plan for the Region. — Public and private sector to work business needs; together to determine current and — The Region of choice for students; The current European funding future business needs, supported — Targeted investment for the programme includes a number of themes by the Employment and Skills development of globally-recognised targeted on skills growth and youth Regional Board; academic and vocational expertise in employment. The Cardiff Capital Region — A more active role for the private key fields linked to priority sectors; education providers, working in sector to engage with education — A new and innovative funding model partnership with the business community, and training providers to prioritise that aligns funding closer to the needs need to capitalise on the opportunity funding, explore co-investment of business; provided by European funds in models and deliver quality — Ongoing process to explore developing additional programmes aimed improvements; international best practice of at meeting business needs. Devolution — Enabling people, particularly in innovative training strategies; has granted us powers over education disadvantaged areas, to take — A world class education offering and training and the current European advantage of existing education that is at the leading edge and high funding programme has a number of and training opportunities; performing, for example using an themes targeted on skills, growth and — Retain the existing knowledge and internship “clearing house” to drive youth employment. We need to capitalise skills base more effectively within the use of internships in the Region. on the opportunity this provides and the Region by actively promoting develop a synergistic partnership opportunities and by exploring between Government, education and incentive schemes, such as bursaries training providers and our anchor for graduates choosing to remain businesses to develop a world class for work in the Region; education and training system, which — The Region has the educated and is recognised globally, and equips our qualified workforce to take an active people with skills for life and meets role in the building of the proposed the needs of business and the major infrastructure projects. community.

University of South Wales, Newport City Campus 04c. “Support a thriving Innovation and growth business community with international recognition, driven by an entrepreneurial culture and leading academic research.”

Like the rest of the economy, the Region Aircraft Engine Services, Boom Cymru, was hit hard by the global downturn and BBC, Sony, TRW, BA Maintenance, our Region’s output continues to be GE Healthcare, Penn Pharmaceutical, below previous levels. However, there are Convatec, Pinewood Studios. The Region signs of recovery and we must continue needs to celebrate the business success to drive improvements in productivity. displayed by these companies and The recession and the advent of digital rediscover its entrepreneurial spirit. technology has changed the landscape. Alongside rediscovering its entrepreneurial The world is smaller with emerging spirit, the Region has a real opportunity markets increasingly prominent, driving to build on its strengths in innovation. growth and making it more difficult for The exciting development of the the developed markets to compete. Cardiff Innovation System is the latest Successful regions are increasingly example of the Region’s strengths in focused on core sectors where they this regard. This development stands to develop national and international establish Cardiff University, the Region recognition and create a virtuous and Wales as international leaders in circle of growth and entrepreneurship. innovation, helping to better connect The Cardiff Capital Region is home industry, business, and the expertise to a number of globally recognised in our universities. Innovation is a key companies, but few of these are driver of productivity, growth and long- headquartered in the Region. These term well-being. The Region must companies are leaders in their respective harness the undoubted expertise within sectors and we need to work with these its universities and colleges and work to develop our skills, maximise the supply with these and business to develop the chain opportunities for our SMEs and commercial opportunities of innovation drive growth in our priority sectors. Key and research. anchor businesses include BT, Ford, Admiral, General Dynamics, Airbus, GE

Priority and emerging sectors

The Welsh Government has identified a number of priority sectors for Wales and the local authorities in the Region have also identified their priority sectors. The table below focuses on the sectors which we consider most relevant to the Region on a global, national and regional basis.

Global UK National Regional Advanced Manufacturing, Aerospace, Defence & Security ✓ ✓ ✓ Digital, ICT and Creative Industries ✓ ✓ ✓ Energy/Environment ✓ ✓ ✓ Entertainment, Leisure and Retail including tourism ✓ ✓ ✓ Life Sciences ✓ ✓ ✓ Professional and Financial Services ✓ ✓ Powering the Welsh Economy the Welsh Powering 28 — Penn Pharmaceutical, Tredegar Two of these sectors are supported by Construction remains an important 04c. the three enterprise zones in the Region. sector for the Region. As our economy The sectors are also supported by pan- grows and we undertake major Innovation Wales dedicated advisory groups and infrastructure projects – railway funds, for example the Life Sciences electrifications, transport improvements, and growth Investment Fund, the Creative Industries and building developments, we need to Advisory Panel and the Financial and ensure that our construction companies Professional Services Panel. For each of and people have the skills to benefit from our priority and emerging sectors, we these opportunities. need to work with the existing pan-Wales sector teams to develop a clear vision ENTREPRENEURIAL ENVIRONMENT and a proposition for investors, which clearly articulate our strengths and global Our Region is home to c.35,000 small to position. We also need to ensure that medium size enterprises (“SME”), which there is continued alignment between form 99.5% of total businesses. We our universities’ leading research cannot underestimate the importance of capabilities and our priority business SMEs to the vibrancy and entrepreneurial clusters. culture of our Region. Growing the number of start-up businesses and For many of these sectors we need to SMEs will create employment and drive collaborate with our near neighbours in economic competitiveness. We need Wales and further afield to effectively to ensure that start-ups and SMEs have promote them. For instance for the access to financing and mentoring aerospace, defence and security sector, initiatives consistently across the Region, we must work more closely with Bristol to support survival rates and help these and develop a real critical mass – Wales businesses to grow. Additionally, effective and the South West of England has the mechanisms need to be developed to largest aerospace and defence cluster capture and deploy the IP generated at in the UK providing over 59,000 jobs, the Region’s universities and thus develop revenues of £5.5billion and is home to the a collaborative and innovative culture. MoD’s Defence Equipment and Support (DE&S) operations and the Government PROPERTY INFRASTRUCTURE Communications Headquarters (GCHQ). For the Energy and Environment sector, The global financial downturn had we need to work closely with Swansea, a major impact on the commercial Bristol and the rest of Wales, particularly property market in the UK. A notable around harnessing marine resources, trend since 2007 has been the reduced whilst Life Sciences will benefit from levels of speculative development of collaboration with the Institute of new employment floorspace. Life Sciences at Swansea. With the development of its new campus, The UK property market is now enjoying Swansea will offer leading engineering a period of recovery, particularly in facilities which the Cardiff Capital London and the south-east. However, Region must recognise and support. recovery elsewhere has been patchy. In Wales there remains a lack of Financial and Professional Services is speculative development and little or an important growth sector. We need no investment in the promotion of key to develop a distinct Financial Services strategic development sites. The lack offering that plays to our strengths, of new floorspace and investor-ready targeting areas such as innovative development sites, combined with our business processing outsourcing and ageing building stock, has the potential genuine high-value advice and skills- to become a structural weakness in the based operations, and not simply ‘Wales offer’ to the economy. Indeed, the low-value, back office functions. availability of the right site or building Our priority and emerging sectors can be fundamental to winning, or must be aligned to our universities and retaining, a project in competition with colleges and capitalise on their skills, other UK regions and our international for instance the “trader training” at competitors. In this regard, it is important the Cardiff Business School. to recognise that a key deliverable of the Central Cardiff Enterprise Zone has been Top: Raspberry Pi, Bridgend an improvement in the availability of Bottom: General Electrics, Nantgarw Grade A office space. Powering the Welsh Economy the Welsh Powering 30 — To support the continued growth of Opportunities What it could look like our private sector and attract new inward investors, we need to ensure — The identification, marketing and — A thriving private sector with an that the Region can offer a balanced exploitation of industry and sector- environment conducive to: portfolio of employment land and based agglomeration of businesses –strong partnerships between buildings to support all employment across the Region. These will generate universities/colleges and businesses opportunities. There should be a opportunities for investment and to promote knowledge transfer and strategic focus upon those property employment growth focused support commercial exploitation sectors where the greatest impact upon around the sectors and enterprise of ideas; the Welsh economy can be made and zones; –improved collaboration between property types included range from — Create an environment that allows large anchor businesses and SMEs city centre offices through to sector all our private sector enterprises to in the Region to maximise supply specific requirements and traditional prosper and is conducive for chain opportunities and develop industrial markets. Any such strategy entrepreneurship; innovative locally sourced solutions; should principally be drawn from a — Continue to attract high-quality UK –further collaboration between SMEs demand perspective. However, this and international businesses to Wales; to exploit new market opportunities should also recognise the needs of our — Capitalise on the leading academic and the creation of local sourcing more disadvantaged communities. research undertaken at the Region’s frameworks; The portfolio should focus on a limited universities to incubate and grow number of key high-quality sites and new businesses housed in the Region — A growing private sector driving a facilities that are attractive to occupiers in exciting sectors, including life rebalancing of the Region’s economy, and investors alike. We also recommend sciences, advanced engineering supported by a steady flow of developing a commercial proposition and digital; high quality inward investors; for the refurbishment of our existing — Ensure continued growth of our — Unemployment at or below UK building stock. SMEs by co-ordinated and targeted average; support that meets their needs, such — Wages at or above UK average; as infrastructure, skills and finance; — Facilities and technologies which — Delivery of a balanced portfolio of harness the tidal power of the Severn premises that supports our existing Estuary for the generation of businesses and inward investors, electricity and supporting the including the development of key development of a thriving renewables strategic sites and premises focused sector with global recognition. on areas of greatest impact for our Region and the Welsh economy; — Development of an economic baseline for the Region so that progress and outcomes can be consistently measured; — Establish the Region as a recognised renewables region and capitalise on the energy opportunities offered by the Severn tidal flows.

Penderyn Whisky Distillery British Airways Maintenance Cardiff, St Athan – Cardiff Airport Enterprise Zone

Identity 04d. Potential campaign collateral Shave. Shower. Surf.

34 — Powering the Welsh Economy Merthyr in Airmiles Earn your

... eich patrwmboreol. Neidiwch ymlaen atrawsnewidiwch Symud Prifddinas–Ranbarth Caerdydd. Jump onandchangeyour morningroutine. Moving theCardiff Capital Region. —are home to anumber ofleading museums; — oflife.”quality synonymous with Capital Region recognised Cardiff and internationally “Build avibrant — WOMEX; — our size. We: of events andiconic venues thatbelies and cultural history, andoffersaquality The Region hasapassionate sporting on adailybasis,not justonweekends. but access these naturalresources to work invibranttowns andcities The Region therefore allows our people Peninsula are allwithineasy reach. Beacons National Park andtheGower miles ofheritagecoastline, theBrecon coastline, rivers andwalks. Around 60 Region there are vast greenalarge belts, by car inlessthananhour, yet withinthe geographical area thatcan becovered The Region isarelatively small the Cardiff Capital Region way oflife. our naturalenvironment allcontribute to our culture, our language, our venues and most ‘liveable’ regions. city Our heritage, us to compete withsome oftheworld’s Region manyattributes boasts thatallow differentiator for us.The Cardiff Capital oflifeQuality isanimportant inherently Welsh withaglobaloutlook. weand far-reaching are opportunities, culture,contemporary future innovation and traditions but withakeen eye on success. Respectful ofour heritage good factor thatleadsto sustained faster to deliver aconfidence and feel We work harder, thinkbiggerandadapt Region atthesharpendofWelsh culture. We are asavvy, confident, enterprising

Dr Who, Sherlock andCasualty. andfilmproductions includingTV National Operaandanumber of Orchestra ofWales, theWales historic environment, the National a World Heritage site, adistinct have theWales MillenniumCentre, hosted Test Match cricket; Velodrome, BikePark Wales andhave Course, theWales National World Cups), aRyder Cup Golf Olympic andFA football and rugby have theMillenniumStadium (hosting the UKInvestment conference and hosted theNATO Summit,

— investment; — environment; — entrepreneurs;

— — — Opportunities Capital Region’s identity. that are consistent withtheCardiff position. Thismeansinvesting inareas there ismore we can doto secure this We cannot take thisfor granted, and most liveable capitalregion. city Region to claimapositionastheUK’s for theCardiffopportunity Capital and businesses asaresult. There isan oflife,their quality andattract people Sydney andAuckland are well known for such asBarcelona, Geneva, Vancouver, oflifequality survey. Internationally, cities in theEuropean Union 2014 perception Cardiff isthehighestrankingUKcity

choice for ambitious youngsters and Establish thearea astheregion of regioncity anddeliver areturn on “best inclass”. hotels and restaurants considered investmentencourage further in and tourism sector; for example, Investing andpromoting our leisure take advantage oftheRegion’s distinct practices, allowing employees to as makers andlocations for significant the Region. For example, our position Capitalise onallour assetsto promote as theUK’s mostliveable capital encourage innovative working living, including work-life balance and andmust a great selling opportunity andfilmproduction TV companies is significance to positionthe Region activities ofnationalandglobal and leisure venues, events and Promoting wellbeing andhealthy progressive outlook; regeneration to enhance amodern investment ininfrastructure and A continuing programme of be exploited; enhance therangeofcultural, sporting us. We develop needto further and the world andtheway theworld sees Major events influence the way we see

What it could look like

— Attracting the 2026 Commonwealth Games to the Region; — Win European City of Culture status; —Secure the 2018 Rugby World Cup 7s tournament; — A European soccer cup final to the Region before 2020; — Our own leading music theatre production company to compete with the major West End theatres; — Further iconic buildings, venues and activities to support our identity e.g. a leading convention centre, major sporting facilities including water and motorsports; — New commercial buildings of character and distinction e.g. Callaghan Square and the new BBC headquarters; — Capitalise on the opportunities for water-based events to take advantage of Cardiff Bay and our coastline such as the Volvo Ocean Race; — Major mountain bike events such as EPIC Cymru; — Internationally recognised hotels and restaurants of distinction. — A signature event which captures the Region’s spirit and gains national and international recognition.

Top: Torfaen Bottom: Extreme Sailing Series, Cardiff Bay Successful regions have an identifiable Making it happen 05. brand supported by a shared narrative that is globally recognised and is utilised The creation of the Cardiff Capital Way forward for the promotion of opportunities with Region Board brought together the potential investors and visitors. public and private sector to provide leadership, vision and strategic direction The Region is home to a number of for the Region, setting priorities in the leading multinational companies, a context of an “innovative region of vibrant education sector and punches distinction, connected communities above its weight in relation to hosting and places, planning their future global events, for example, the recent together to maximise the opportunities NATO summit, the Ryder Cup and the of their people”. This Report marks a European Super Cup. Each of these was new phase in the development of the a significant event, attracting global Cardiff Capital Region – it is a start of attention and promoting positive a wider conversation with partners and perceptions of the Region. communities across the Region, and The Region needs to refine its own members of the Board will be seeking unique brand which showcases the to play a key role in this. Region’s identity as synonymous with We believe a Cardiff Capital Region, quality of life. It must unite, excite, strategically aligned and created with engage and most importantly be relevant an overarching unity of purpose, has and memorable to those who call the the potential to fundamentally transform Region home and to those who visit for the lives not only of the people living business and pleasure. This brand must within the Region, but of all of the then be adopted and used in consistent people throughout Wales. As a matter messaging by business, education, sport of urgency, therefore, we need to unite and culture to increase the impact for the people, the resources and the the Region as a whole. It will also allow opportunities of the Region, recognising representatives of the Region, whether that it can be a single and functional public or private sector, to take a story economic area, and that its interests are of the Region and its future to potential best served by working together to drive investors and visitors. growth, prosperity and equality across This proactive approach will change the Region and power the economy perceptions and provide a springboard of Wales. This will require a new way for the Region to move forward with of doing things, capitalising on the confidence. The communication with Region’s core assets to drive growth and potential investors, and particularly the recognising that different parts of the creation of a steady flow of investable Region will contribute in different ways. opportunities, will be vital if the Region The Region must build upon the is to take advantage of new funding expertise that exists within its streams including Sovereign Wealth universities, with the aim of increasing Capital. The narrative must demonstrate innovation, research and development, the Region is investor-ready. and commercialisation. Key to this

“ Actively build and promote Cardiff Capital Region’s strengths internationally, showcasing a steady flow of opportunities for investors and visitors within the context of the Wales brand.” Powering the Welsh Economy the Welsh Powering 36 — is developing an environment and We also recognise the emergence We believe our city region journey infrastructure that encourages innovative of a regionalism agenda at a UK level. should begin with transport. This is activity to grow and flourish – the Cardiff This promises to empower business and because good connectivity provides the Innovation System is a key development civic leaders to invest in infrastructure, foundation and catalyst for the positive in supporting that environment. skills, and economic development. Much economic, social, and environmental The Board was established as an advisory of this movement is encapsulated in changes that we want to see. In this board to help set the vision and strategy the agreement of City Deals driven by regard, the recent announcement of a for the Cardiff Capital Region. The a wider city region agenda. The Region not-for-dividend subsidiary of the Welsh challenge of delivery and implementation needs to embrace these developments Government to initially provide advice is a different task. To take the Region for its own advantage in the context of on the rail franchise, rail electrification forward will require a different structure. a devolved Wales, particularly given the and an integrated transport solution is This Report is published at a significant challenges around financing aspirations, significant. In time, this development time of change – particularly in the and the need to maximise all possible will need to be aligned with economic context of public service reform, the funding streams. regeneration, and in particular with land-use planning. The challenge now, Planning Bill, new borrowing powers A number of different structures have for Government and others, is to consider and the next round of European Funds. been adopted by city regions across the the most appropriate and accountable For the Region to deliver the vision globe to drive economic growth and arrangements that can enable change outlined in this Report, it must capitalise associated infrastructure investments. and seize the opportunity around one on the opportunities arising from A number of these, including the vision and one plan – powering the these initiatives. governance arrangements in the Verband Welsh economy. The Welsh Government Minister for Region Stuttgart (the Stuttgart City Economy, Science and Transport, Region) and Greater Manchester, are The vision outlined in this Report Edwina Hart MBE CStJ AM recently covered in depth in Professor Kevin emphasises a shared destiny for all parts announced the creation of a Welsh Morgan’s metro governance report of the Region – a destiny which hinges Government not-for-dividend transport (http://wales.gov.uk/topics/transport/ upon progress being made across all of subsidiary to consider transport public/metro/?lang=en ). Whilst the the delivery themes we have outlined. projects in Wales, including reviewing models used have varied, recognising These themes – connectivity, skills and integrated public transport in the Region, Local Government structures, practices innovation and growth are mutually rail electrification and the rail franchise. and needs, what is clear is that whatever reinforcing, with interrelationships, The inclusion of Statutory Strategic the structure used, successful models interdependencies and interaction which Development Plans in the forthcoming have a number of common features. are fully recognised. Planning (Wales) Bill will establish a tier These are: We cannot have innovation and growth of regional planning, incorporating more without skills, we will not retain the — Strong leadership supported by than one Local Authority which will be skilled people we develop here without delivery capacity and capability; important for economic development, the growth that will provide them — Clear and agreed vision and the future provision of housing and the with the opportunities they desire. responsibilities; provision of employment sites. The Connectivity is required to link our — Strong governance with appropriate Williams Commission has also called people with the jobs that our skills powers, authority and accountability; for greater collaboration between Local and innovation and growth agenda can —Buy-in by key stakeholders; Authorities in Wales in the delivery of provide. The shared destiny of the Region — Ability to transcend political cycles services. In addition, newly-acquired is dependent upon developing this and so attract ongoing cross-party borrowing powers will allow Welsh virtuous circle of connectivity, skills, and support. Government to borrow to fund large innovation and growth. It is this aspiration strategic infrastructure projects, and that provides the common and unifying the next round of European Funds thread throughout the Report and upon will bring additional funding. which the Region must mobilise.

Cardiff Castle with the Millennium Stadium in the background BOARD MEMBERS Appendix BOARD MEETINGS 38 — Powering the Welsh Economy

— — — — — The Boardwishesto express gratitude its andthanksto: 2015January December 2014 November 2014 October 2014 September 2014 July 2014 June 2014 May 2014 April 2014 March 2014 February 2014 2014January – BoardStrategy Day Location December 2013 Date authorities. Themeetingshave beenasfollows: The Boardhasmetmonthlysinceconstituent thenwithineachofthe10 local nametodeliberations theBoard changedits TheCardiff Capital Board.Region BoardThe firstmeeting was heldinMerthyr Tydfil inDecember 2013. its Earlyin Wales Region City Boardby theMinister for Economy, Science andTransport. The Cardiff Capital Region was establishedinNovember 2013 asthe South East Phil Jardine

Prof. Kevin Morgan

Prof. Brian Morgan Prof. JulieLydon Cllr Bright Bob Cllr Peter Fox

Cllr Brendan Toomey Cllr Wellington Bob Ann Beynon

Dan Langford Matthew Hammond David Stevens Cllr Russell Goodway Prof. Colin Riordan Name Roger Lewis

focussing onBranding andCommunications, Finance, Innovation andSkills. CITB andAtradius whohavethework oftheBoardSub supported groups, Cardiff University, Welsh Government, the Enterprise Zones, Welsh ICE, Council, Cardiff and Vale College, South East Wales Regional Tourism Forum, representatives from theLocal Authorities, Welsh Government, Cardiff Business and Cardiff Council for resourcing the Unit. the Cardiff Capital Region Unit and Support Welsh Government, Cardiff University the team from PwCforintheproduction ofthisreport. theirsupport papers to theBoardincluding theWelsh Government Metro ImplementationTeam. the various individuals andorganisations whohave attended andpresented thework oftheBoard. and supported all theLocal Authorities anduniversities whohave hosted Boardmeetings

Observer Advisor Member Member Member Member Member Member Member

Member Member Member Vice Chair Vice Chair Chair Title Organisation University ofSouth Wales, Newport Bridgend Ystrad Mynach(Caerphilly) Cwmbran (Torfaen) Usk (Monmouthshire) Cardiff (Cardiff Metropolitan University) Barry (ValeBarry ofGlamorgan) Cardiff (Cardiff University) Cardiff (Millennium Stadium) Newport University ofSouth Wales, Pontypridd Cardiff (Cathays Park) TydfilMerthyr Cardiff Business Council Cardiff University Governance &Development, Dean ofEngagement & Professor of Cardiff Metropolitan University Professor ofEntrepreneurship, Vice Chancellor, University ofSouth Wales Leader, Council City Newport Leader, Monmouthshire County Council Borough Council Leader, Tydfil Merthyr County Leader, Torfaen County Borough Council Wales Director, BT Director, Acorn Recruitment Group Marketing & Communications Regional Chairman, Senior Partner, PwC Admiral Insurance Chief OperatingOfficer, Councillor, Cardiff Council Vice Chancellor, Cardiff University Welsh Rugby Union Group Chief Executive Officer,

WORKSHOPS AND ENGAGEMENT To support the development of the vision for the region, the Board held three workshops and engagement sessions. The Board would like to extend our thanks to all the following organisations who have participated:

ARUP Jones Lang LaSalle British Airways Monmouthshire County Council BT Merthyr Tydfil County Borough Council BBC Cymru Wales Newport City Council Bridgend County Borough Council Network Rail Beacons National Park Authority Persona-ID Blaenau Gwent County Borough Council Rhondda Cynon Taff County Bridgend College Borough Council Cardiff University Smörgåsbord Cardiff Metropolitan University South Wales Chamber of Commerce Cardiff and Vale College St Athan-Cardiff Airport Enterprise Zone Caerphilly County Borough Council Sustrans Cymru Cardiff Business Council Tourism Sector Panel Confederation of Public Transport Torfaen County Borough Council Confederation of British Industry University of South Wales The City of Cardiff Council Vale of Glamorgan Council Cardiff Central Enterprise Zone Visit Wales Cardiff Airport Wales Tourism Advisory Board Financial and Professional Welsh Innovation Centre for Enterprise Services Sector Panel WEFO Hugh James WLGA ICAEW YMCA Wales IWA We would also like to thank all the individuals who have commented on the outputs of the workshops and contributed ideas to support the vision.

REFERENCES 01. Source: http://www.visionofbritain.org.uk/ 02. Gross Domestic Product, constant prices 2015-2019. Source: IMF World Economic Outlook October 2014 03. Rifkin, J (2011) The Third Industrial Revolution, Macmillan; A Third Industrial Revolution, The Economist, April 2012. 04. GVA is an economic definition for the value of goods and services produced in an area, industry or sector of an economy; Source: ONS Workplace based GVA by industry, 2011 05. Source: ONS Workplace based GVA per head, 2013 06: Source: ONS Annual Population Survey, 2013 07: Source: ONS Annual Survey of Hours and Earnings, 2014 08: Source: ONS – Location of usual residence and place of work, 2011 09: Source: ONS and NISRA (For Northern Ireland); Belfast City Region denotes Northern Ireland’s total 2013 population 10: Source: CCR data is based on ONS statistics on Business Register and Employee Survey, 2013; GB data is based on ONS GB level employment by Broad Industry Group, 2013 11. Maintenance, repair and operations