Cross Border Partnership - Economic Review & Impact Assessment - Technical Report - 241215.Docx

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council

Economic Review and Impact Assessment

Technical Report

December 2015

AMION Consulting Limited Customs House, 7 Union Street, Liverpool L3 9QX

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council

Economic Review and Impact Assessment

Technical Report

December 2015

Reviewed and approved by: Signature(s):

Name(s): Graham Russell

Job Title(s): Chief Executive

Date: December 2015

AMION Consulting is the trading name of AMION Consulting Limited

Registered Office: Langtons, The Plaza, 100 Old Hall Street, Liverpool L3 9QJ Company No: 3909897 Tel: 0151 227 5563 This document including appendices contains 241 pages Ref: K:\CLIENTS\Hinckley and Bosworth Borough Council\Economic Review and Impact Assessment\Deliverables\Cross Border Partnership - Economic Review & Impact Assessment - Technical Report - 241215.docx

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Contents

1 Introduction ...... 1 1.1 Overview ...... 1 1.2 Scope and purpose ...... 2 1.3 Report structure ...... 2 2 Contextual review ...... 3 2.1 Introduction ...... 3 2.2 National policy ...... 3 2.3 Sub-national and Local Policy ...... 5 2.4 Implications ...... 14 3 Economic Impact Assessment ...... 16 3.1 Introduction ...... 16 3.2 Methodology ...... 16 3.3 Hinckley and Bosworth ...... 19 3.4 North Warwickshire ...... 27 3.5 Implications ...... 33 4 Economic review ...... 34 4.1 Introduction ...... 34 4.2 National economic context ...... 34 4.3 Economic Growth and Competitiveness Index ...... 34 4.4 Strengths, weaknesses, opportunities and threats ...... 39 4.5 Cross-Border Partnership area – overarching assessment ...... 49 4.6 Local policy implications ...... 50 5 Implications for the future ...... 52 5.1 Introduction ...... 52 5.2 Strategic Framework for economic growth ...... 52 5.3 Action plans ...... 53 5.4 Cross-cutting themes ...... 57 5.5 Delivering the Framework ...... 57

Appendix A: Economic Review – Technical Report Appendix B: Summary of EGCI indicators and source data Appendix C: Project reviews

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

1 Introduction

1.1 Overview Hinckley and Bosworth Borough Council (HBBC), North Warwickshire Borough Council (NWBC) and Nuneaton and Bedworth Borough Council (NBBC) have formed a Cross-Border Partnership for economic development. Figure 1.1 shows the location of the three Boroughs. Figure 1.1: Location plan of Hinckley and Bosworth, North Warwickshire and Nuneaton and Bedworth

The partners appointed AMION Consulting (AMION) to prepare an economic review of the Cross- Border Partnership area. In addition, HBBC and NWBC also commissioned AMION to undertake a detailed assessment of completed and future major projects in their areas. As such, there were three components to the study:  an economic impact assessment of completed and future projects in the HBBC and NWBC areas, based on individual project reviews and consultations;  a review of economic performance of all three areas, based primarily on an analysis of secondary source data; and  an analysis of the implications for the future – setting out a framework for future action by the Cross-Border Partnership.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

This technical report sets out the overall findings and implications of the economic review and impact assessment. Further details, including the economic assessment and analysis of individual projects, are included in the Appendices.

1.2 Scope and purpose The study explores the economic performance, linkages, similarities and differences between the three district areas. As part of this, it examines the extent to which the area has moved on from the financial crisis of 2008 in economic, social and environmental terms, looking at the contribution that key developments have made to this change over recent years, and how current and future pipeline projects will continue to drive economic growth over future years. The study provides an up-to-date review of the local economy. It demonstrates the benefits generated in the HBBC and NWBC areas through investment in completed projects, while also highlighting the scale of the potential benefits associated with projects which are currently being delivered. It assesses the extent to which local conditions – in terms of enterprise, people and labour markets, place (including infrastructure) and knowledge and innovation – effectively support economic growth and quality of life for local residents. Based on this analysis, it sets out a high level assessment of the strengths, weaknesses, opportunities and threats for each of the districts and the overall Cross-Border Partnership area. The assessment and analysis outlined within this technical report provides an evidence base which underpins the identification of lessons and associated recommendations for strengthening the future performance of the local economy and maximising the benefits associated with future investments. This is outlined within the main report.

1.3 Report structure The report continues in four sections, as follows:  Section 2 – sets out a brief review of national, sub-national and local policies;  Section 3 – outlines the results of the economic impact assessment of individual projects in the HBBC and NWBC areas;  Section 4 – summarises the review of socio-economic data and trends and assesses the strengths, weaknesses, opportunities and threats of the area; and  Section 5 – presents the implications of the review and impact assessment. Appendix A contains further detailed analysis of conditions and trends within the three local authority areas, while Appendix B sets out details of the indicators used to undertake this review. Appendix C provides individual project impact reviews for each of the HBBC and NWDC projects.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2 Contextual review

2.1 Introduction This Section sets out a brief review of the national, sub-national and local policy context for the study and highlights a number of implications for the Cross-Border Partnership.

2.2 National policy

2.2.1 Economic growth Fixing the Foundations: Creating a More Prosperous Nation (2015) sets out the new Government’s long-term strategy for raising productivity and lifting living standards over the course of the parliament. It outlines a 15 point plan that the government will put into action to boost the UK’s productivity growth, centred on two key pillars: encouraging long-term investment, and promoting a dynamic economy. The Strategy sets out a commitment to secure greater investment over the long-term through the targeting of public investment to transform vital infrastructure and skills, promoting long- term decision making among companies and investors. This includes proposed measures targeted to deliver:  A highly-skilled workforce – targeted investment will seek to address persistent skills weaknesses through targeting schools that fail to demonstrate consistent improvement, responding to business calls for work-ready skills and introducing a new compulsory apprenticeship levy on large employers, alongside simplifying further education qualifications and associated funding arrangements;  A modern transport system – a commitment to address prolonged under-investment in transport infrastructure, with provision for £100 billion of infrastructure spend over the parliament. In particular, it outlines the government’s plan to create a new Roads Fund and a second Road Investment Strategy, alongside measures to enhance and extend rail infrastructure;  World-class digital infrastructure – ensuring that all businesses and residents are able to contribute to the digital economy, the government is committed to extending access to super-fast broadband to 95% of the UK population by 2017, and ensuring universal access to 4G and ultrafast broadband over the longer term; and  High quality science and innovation – a commitment to investment almost £7 billion in research infrastructure in the UK over the period to 2021, with investment focused towards areas with the greatest potential for delivering economic benefits. As part of this, investment in Catapult Centres and promoting the commercialisation of research remain strategic priorities. In relation to promoting a dynamic economy, the Strategy sets out measures to secure greater planning freedoms and more homes to buy. This will be underpinned by a new zonal based

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

planning system, a commitment to force planning authorities to promote and deliver housing, extend right to buy and deliver 200,000 new starter homes, as well as piloting the devolution of planning powers to the Mayors of London and Manchester. Alongside this, the strategy outlines a range of measures aimed at promoting flexible and fair markets and an open and competitive economy. A key focus of the Government remains eliminating the budget deficit and running a surplus by the end of the Parliament. Consequently, in the summer 2015 Budget the Chancellor announced that he will make savings of £34 billion in public expenditure over this parliament, with half of this coming from government departments' budgets. The Coalition Government of 2010 - 2015 established the ‘Plan for Growth’ in 2011 which set out a broad programme of reforms designed to remove barriers to growth across a range of areas and establish four key ambitions: to create the most competitive tax system in the G20; to make the UK the best place in Europe to start, finance and grow a business; to encourage investment and exports as a route to a more balanced economy; and to create a more educated workforce that is the most flexible in Europe. This was set within the context of reducing the deficit and rebalancing the UK economy. The strategy was underpinned by a broad range of actions to stimulate economic growth including promoting investment in infrastructure and science and technology, alongside measures to promote greater business investment. Under the Plan for Growth, a range of actions were introduced to stimulate local growth, including bringing resources under the strategic influence of business-led Local Enterprise Partnerships (LEPs); the establishment of 24 Enterprise Zones; the agreement of a number of City Deals; and the allocation of £2.85 billion through the Regional Growth Fund to support local business growth across England. Following the Heseltine Review, £2 billion has been earmarked for the Local Growth Fund (LGF) in 2015/16. The Government has also indicated that the LGF is expected to be worth at least £2 billion in every year of the next Parliament.

2.2.2 Local devolution As part of the previous Coalition Government’s localism agenda, the Local Democracy, Economic Development and Construction Act 2009 provides powers to create new statutory joint authorities (known as combined authorities) who may exercise any function of its constituent councils that relates to economic development and regeneration, and any of the functions that are available to integrated transport authorities. For transport purposes combined authorities are able to borrow money and can levy constituent authorities. The Act also allowed local authorities to alternatively create Economic Prosperity Boards (EPBs), which are corporate bodies with functions that relate to economic development and regeneration. They differ from Combined Authorities in that they do not include transport. The new Conservative Government is committed to increased devolution. Local authorities are currently being rewarded with increased powers and budgets for establishing collaborative working arrangements. For example, in 2014 the Greater Manchester Combined Authority (the first to be established – in 2011) was offered substantial additional controls and resources.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3 Sub-national and Local Policy

2.3.1 Overview At the sub-regional level, the strategic economic development of the Cross-Border Partnership area is supported in particular by the strategic priorities of the Leicester and Leicestershire Local Enterprise Partnership (LLEP) and the Coventry and Warwickshire Local Enterprise Partnership (CWLEP). The A5 corridor passes through Hinckley and Bosworth, North Warwickshire and Nuneaton and Bedworth. Therefore, the Strategy for the A5 (2011-2026) also forms a key element of strategic context for the Cross-Border Partnership area. In addition, the three Cross Border authorities are each members of the Coventry, Warwickshire and South West Leicestershire Shadow Economic Prosperity Board. At the local authority level, each of the Cross Border authorities is implementing a range of policies as articulated within their respective Core Strategies and Corporate Plans. In addition, Hinckley and Bosworth has its own Economic Regeneration Strategy that was adopted in 2009, together with a masterplan for Hinckley Town Centre.

2.3.2 Leicester and Leicestershire LEP The ambition of the Leicester and Leicestershire Strategic Economic Plan (SEP) 2014-2020 is to create a vibrant, attractive and distinctive place with highly skilled people making Leicester and Leicestershire the destination of choice for successful businesses. The South West Leicestershire Growth Area (which includes Hinckley and Bosworth) is the largest geographical growth area harnessing major employment and housing opportunities. It encompasses activity along the M1, M69 and A5 corridors and comprises developments around the Leicester and Hinckley urban areas including the MIRA Technology Park Enterprise Zone (MTPEZ), which is identified as a Transformational Priority (TP4) in the SEP. This MTPEZ is exploiting a unique opportunity to become a global centre for automotive research and development. In July 2014, the LLEP was awarded £80 million from the LGF over the period 2015 – 2021. A further £20.3 million for 2016 – 2021 was awarded in January 2015. The LEP estimates that up to 3,000 jobs could be created, 1,300 homes built and up to £160 million of public and private investment secured as a result of the LGF funding. The SEP is supported by the European Structural and Investment Funds (ESIF) Strategy 2014-2020, the priorities of which have been aligned with the strategic priorities of the SEP. In total, some €125.7 million of ESIF funding has been allocated to the LLEP area. The SEP and ESIF are complemented by a Skills Plan for MIRA which focuses on building and maintaining the supply of STEM-based skills that the Technology Park requires. The LLEP is developing a series of Sector Growth Plans to support delivery of the aims and objectives outlined within the SEP and ESIF for the following eight priority sectors:  low carbon;  food and drink manufacturing;  creative industries;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 textile manufacturing;  logistics and distribution;  professional and financial services;  tourism and hospitality; and  advanced manufacturing and engineering.

2.3.3 Coventry and Warwickshire LEP The Coventry and Warwickshire SEP establishes a vision that the area is recognised as a global hub in the advanced manufacturing and engineering sector, with business and research links across the world. Building on its central location, employment sites, distinctive businesses, innovation assets and highly talented workforce, by 2025 Coventry and Warwickshire will be a high performing economy with innovative businesses competing internationally, growing and providing better paid employment opportunities for all of its residents across both its rural and urban areas. The focus of intervention is on major employment and innovation sites, all closely linked to the rail or strategic highway network and all within relatively close proximity. The prioritised employment and innovation sites are mainly located within a strongly established north-south travel to work corridor extending from Hinckley – Nuneaton – Coventry – Leamington Spa – Warwick (within which 80% of all travel to work activity occurs). The ability to facilitate physical business-to-business interaction and support excellent access to labour in this corridor is critical to achieving the targeted growth. The CWLEP was awarded £74.1 million from the LGF in July 2014 for 2015 – 2021. In January 2015, a further £15.3 million of LGF funding was awarded covering the period between 2016 and 2021. The LEP estimates that up to 4,000 jobs could be created, 1,400 homes built and up to £220 million of public and private investment levered by the LGF. The strategy for European Structural and Investment Funds (ESIF) 2014 to 2020 builds on the priorities established within the Growth Plan for the LEP area and seeks to: achieve a significant increase in the productivity of the business base; reduce unemployment and inequalities; and ensure that economic growth is achieved in a sustainable manner, which aids its transformation towards both a low carbon and high value added economy. The total ESIF funding allocation for the CWLEP area is €135.5 million. The SEP and ESIF strategies are complemented by a Skills Strategy for Coventry and Warwickshire, intended to promote the development of a highly skilled workforce. It sets out agreed priorities for the period 2014 – 2019 enabling all partners to align their programmes towards shared goals. The CWLEP is focused on the following key sectors:  intelligent mobility;  energy;  advanced manufacturing;  low carbon vehicles; and  digital and creative industries.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3.4 A Strategy for the A5 (2011-2026) The Strategy recognises the continued importance of the A5 corridor as a key artery of movement which supports and provides access to economic activity and growth. It covers a 62 mile section of the A5 from Gailey in Staffordshire to Weedon in Northamptonshire via Leicestershire and Warwickshire. The Strategy is based on a range of statements which will provide the basis for future planning in relation to the A5 up to the year 2026. Its central theme is to ensure that the corridor: functions efficiently to allow safe, ease of movement; facilitates and supports economic growth and tourism; preserves its cultural heritage; and plays its role in delivering future housing and employment growth. The key objectives of the Strategy are to:  ensure that the A5 is fit for purpose in terms of its capacity and safety, both now and in the future;  allow the A5 to play its full and proper role in supporting and facilitating economic activity and growth at a local and national level;  promote and facilitate access to leisure and tourism within the area covered by the strategy;  assist in identifying the priority improvements along the A5 corridor that are needed to facilitate and enable growth, reduce congestion, improve safety, improve air quality and deliver a sustainable transport system; and  reduce, where possible, the impact of traffic on communities along the A5. Table 2.1 provides a summary of the Strengths, Weaknesses, Opportunities and Threats related to the section of the A5 covered by the Strategy.

Table 2.1: A5 Strategy: Strengths, Weaknesses, Opportunities and Threats Strengths  The A5 is an established corridor of movement and economic activity which provides a strategic link between the South East, the East Midlands, the West Midlands and Wales, and gives access to the M54, M6, M6 Toll, M42, M69 and M1;  The corridor provides an important link between a number of key settlements, including Cannock, Brownhills. Lichfield, Tamworth, Atherstone, Nuneaton, Hinckley and Rugby;  The A5 provides access to a number of important employment sites, including Birch Coppice, MIRA, Magna Park and DIRFT. There are also a number of significant retail facilities close to the A5, along with visitor attractions such as Ventura Park and Drayton Manor Park;  The corridor includes some sections of dual-carriageway which provide suitable capacity and opportunities for vehicles to overtake; and  The West Coast Main Line provides a parallel rail corridor to the A5 which could offer an alternative mode of transport for certain short, medium and long distance journeys to be made.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Weaknesses  The corridor includes a number of congestion points, particularly where long distance and local traffic interact (e.g. Dodwells-Longshoot, Tamworth, Cannock). Investment in the A5 has not kept pace in addressing these levels of congestion;  A number of Air Quality Management Areas exist along the corridor which are directly related to road traffic emissions. Noise is also a problem at certain locations along the A5, particularly in the built-up sections of the route;  The corridor includes long sections of single carriageway which restrict capacity and can lead to drivers taking risks when overtaking;  Existing traffic flow levels on certain sections of the route cause severance issues for local communities;  Public transport provision (particularly bus services) along and across parts of the A5 is either poor or non- existent;  There is currently a mixture of pedestrian and cycle facilities along the corridor, with little continuity or consistency;  The corridor struggles to cope as a diversionary route when an incident occurs on the motorway network;  Some high levels of reported injury accidents exist along the corridor, some of which relate to vulnerable road users.

Opportunities  Sources of funding such as the Regional Growth Fund and Local Sustainable Transport Fund may provide opportunities to deliver improvements to the A5 corridor;  Some established bus routes along the corridor provide opportunities for a switch to more sustainable modes of travel, as do semi-fast rail services on the West Coast Main Line. The construction of HS2 could offer the opportunity for further rail service enhancements to be made to the classic rail network;  Existing pedestrian / cycle facilities along the route provide the basis for the development of a continuous network;  Joint working between the Highways Agency and Local Authorities is in place to plan future development and its transport needs; and  The A5 is a key economic corridor for the East and West Midlands, and is likely to be a high priority for the Coventry and Warwickshire and Leicester and Leicestershire Local Enterprise Partnerships. Threats  Housing and employment proposals along the A5 may exacerbate existing problems in the corridor if not properly mitigated;  Central and Local Government funding over the next five years is likely to be limited. This will restrict the level of public sector investment which is available for the A5 corridor in the near future;  A lack of investment in the A5 in the medium/long-term will undermine the key strengths of the route at a local and national level;  There is currently a lack of co-ordinated investment arising for CIL and S106 contributions;  Further congestion within the corridor may have a long-term impact on air quality and health; and  Increases in traffic both from development and natural growth may increase injury accidents and detrimental environmental impacts.

2.3.5 Coventry, Warwickshire and South West Leicestershire Shadow Economic Prosperity Board The Coventry, Warwickshire and South West Leicestershire Shadow Economic Prosperity Board (EPB) brings a number of local authorities together to address issues concerning economic development, regeneration and strategic planning. The EPB, formerly the Coventry and Warwickshire Joint Committee for Economic Growth and Prosperity, comprises:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Coventry City Council;  Hinckley and Bosworth Borough Council;  North Warwickshire Borough Council;  Nuneaton and Bedworth Borough Council;  Rugby Borough Council;  Stratford-on-Avon District Council;  Warwick District Council; and  Warwickshire County Council.

2.3.6 Hinckley and Bosworth

(i) Core Strategy The Core Strategy is the key Development Plan Document (DPD) in the Local Plan 2006 - 2026 (formerly the Local Development Framework - LDF) providing the vision and spatial strategy for the Borough. The Core Strategy was formally adopted by Council on 15 December 2009. The following Spatial Objectives outlined in the Core Strategy reflect how the issues facing the Borough are to be addressed, whilst ensuring that the overall vision (as set out in the Community Plan) is delivered.  Spatial Objective 1: Strong and Diverse Economy;  Spatial Objective 2: Regeneration of Urban Centres;  Spatial Objective 3: Strong and Vibrant Rural Communities;  Spatial Objective 4: Social Inclusion;  Spatial Objective 5: Housing for Everyone;  Spatial Objective 6: Infrastructure Provision;  Spatial Objective 7: Healthier Active Communities;  Spatial Objective 8: Stronger Safer Communities;  Spatial Objective 9: Identity, Distinctiveness and Quality of Design;  Spatial Objective 10: Natural Environment and Cultural Assets;  Spatial Objective 11: Built Environment and Townscape Character;  Spatial Objective 12: Climate Change and Resource Efficiency; and  Spatial Objective 13: Transportation and Need to Travel. The adopted Core Strategy identifies the following development proposals that potentially affect the A5:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 4,500 homes and 25 hectares of employment within Earl Shilton and Barwell, which is to be allocated within the Earl Shilton and Barwell Area Action Plan;  1,120 homes within Hinckley which is to be allocated within the Site Allocations and Generic Development Control Policies DPD and the Hinckley Town Centre Area Action Plan (AAP);  6 hectares of offices, 21,200m² of comparison retail and 5,300m² of convenience floorspace to be allocated within the Hinckley Town Centre AAP; and  295 Homes, 10 hectares of B8 and 4 hectares of B2 within Burbage, which will be allocated within the Site Allocations and Generic Development Control Policies DPD.

(ii) Hinckley and Bosworth Economic Regeneration Strategy 2009-2014 The Strategy provided the framework for the delivery of the Council’s economic development priorities. It focussed on supporting and delivering economic regeneration and development priorities identified within regional and local strategies, which are designed to improve the economic, social and environmental conditions of the area. It aimed to add value by making recommendations as to what practical policies and interventions should be brought forward at the local level. The Strategy’s vision “To achieve a thriving economy for the Borough” has been underpinned by six Strategic Objectives with clearly defined outcomes. Both the completed and future development projects in the Borough considered within this assessment are particularly aligned to the Strategic Objectives:  Strategic Objective 1 – develop a targeted approach to supporting businesses, which have the potential to establish, expand and relocate within the borough;  Strategic Objective 2 – develop an effective portfolio of sites and premises to meet the demands of business;  Strategic Objective 3 – to increase the vitality and viability of the key town and village centres across the borough;  Strategic Objective 5 – to raise the level of skills and knowledge within the Borough’s business and resident populations; and  Strategic Objective 6 – to widely promote the economic, social and environmental opportunities and assets available in the borough including tourism development and creative industries.

(iii) Hinckley Town Centre Renaissance Masterplan (2006) The Town Centre Masterplan focused on the future social, economic and environmental enhancements necessary for the improvement of Hinckley Town Centre. The information contained in the Hinckley Town Centre Renaissance Masterplan formed a central evidence base for the Hinckley Town Centre AAP. The Masterplan sets out the following overall vision for the Town Centre:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

“Hinckley Town Centre will provide a welcoming image, promote design excellence, attracting new investment and creating a high quality environment where people will want to live, work, shop and visit. There will be a wide choice of housing, varying in price and tenure in new buildings as well as in converted hosiery factories and above shops. There will be business premises ranging from small workshops to office accommodation. People will find a selection of national retailers, local shops, pubs and restaurants catering for a range of user-groups. Hinckley will be a lively and safe place with overlooked public spaces. Pedestrians and cyclists will enjoy improved accessibility to the town centre. New leisure and cultural facilities will be an integral part of the town centre”. In order to deliver the vision, the following Strategic Aims have been identified based upon the urban design, commercial and environmental analysis, in addition to the findings of the ‘Stakeholder and Community Consultation’ process:  Strategic Aim 1: Increase the number of people living in Hinckley town centre as part of a mix of uses, helping to generate vitality and diversity;  Strategic Aim 2: Increase accessibility for pedestrians, cyclists and public transport and improve and rationalise car parking facilities in Hinckley town centre;  Strategic Aim 3: Enhance Hinckley town centre’s image to developers, retailers, residents and visitors by ensuring high quality development on prominent gateway sites into the town centre;  Strategic Aim 4: Support the development of new leisure and cultural facilities to improve the quality of life and leisure within Hinckley town centre, whilst adding value and attractiveness to the town centre;  Strategic Aim 5: Provide a new link between Castle Street and Stockwell Head to improve opportunities for additional retail development;  Strategic Aim 6: Promote Hinckley town centre as part of a wider tourism initiative; and  Strategic Aim 7: Develop a public realm strategy comprising new public spaces, environment improvements and public art.

(iv) Hinckley and Bosworth Corporate Plan (2013-2016) The Council’s Corporate Plan for 2013-2016 sets out proposals for improving the quality of life for the people who live and work in the Borough. The vision of creating “A Borough to be proud of” is supported by the following four aims:  creating a vibrant place to work and live;  empowering communities;  supporting individuals; and  providing value for money and pro-active services.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The activities supported by the Cross-Border Partnership for economic development will reinforce the Council’s priorities under the first aim in particular, which includes a focus on sustaining economic growth.

2.3.7 North Warwickshire

(i) Core Strategy North Warwickshire’s Core Strategy was adopted in October 2014 and sets out the strategic planning policies that the Borough Council and its partners will pursue over the next 20 years. The Core Strategy confirms the key priority of keeping the rural nature of the borough and to ensure that when entering North Warwickshire, it is clearly defined as being rural, with a high quality environment. The Core Strategy also seeks to tackle the key issues that the borough faces with regard to health, skills and access to services and facilities, including affordable housing. In order to deliver this spatial vision, the Core Strategy articulates the following nine Strategic Objectives:  Strategic Objective 1: To secure a sustainable pattern of development reflecting the rural character of the Borough;  Strategic Objective 2: To provide for the housing needs of the Borough;  Strategic Objective 3: To develop and grow the local economy for the benefit of local residents;  Strategic Objective 4: To maintain and improve the vitality of the Market Towns;  Strategic Objective 5: To promote rural diversification;  Strategic Objective 6: To deliver high quality developments based on sustainable and inclusive designs;  Strategic Objective 7: To protect and enhance the quality of the natural environment and conserve and enhance the historic environment across the Borough;  Strategic Objective 8: To establish and maintain a network of accessible good quality Green Infrastructure, open spaces, sports and recreational facilities; and  Strategic Objective 9: To ensure the satisfactory provision of social and cultural facilities.

(ii) North Warwickshire Corporate Plan (2014-2015) The Council’s vision for North Warwickshire is “a place where people want to live, work, invest and visit. A Council that, despite tough times, maintains its front line services and works to improve the health and well-being and economic environment of its communities.” The Corporate Plan sets out the Council’s ten priorities for achieving this vision, these are:  Public services and Council Tax - Protecting public services for local people whilst maintaining a balanced budget and keeping Council Tax increases lower than inflation;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Local employment - Bringing more jobs to North Warwickshire, whilst seeking to protect existing jobs and developing our workforce;  Environment - Protecting and improving our local environment;  Recycling - Improving recycling;  Crime and disorder - Working with the Police, Parish Councils and Town Councils, the community and other partners to tackle Crime and Anti-Social Behaviour;  Countryside and heritage - Protecting and improving our countryside and heritage;  Housing - Listening to and working with our tenants to maintain and improve our housing stock; providing affordable housing in the right place and intervening, where appropriate, to ensure that private sector stock is in good condition and occupied;  Access to services - Providing easier access to Council and other public services, particularly through the internet and local community facilities;  Consultation and communication - Improving communication of information and community consultation, including, where appropriate, providing the opportunity to be involved in decision making; and  Health and wellbeing - Helping to tackle health inequalities by working with the County Council and the NHS locally and by encouraging, where financially viable, leisure opportunities in local communities.

2.3.8 Nuneaton and Bedworth

(i) Core Strategy The Nuneaton and Bedworth Borough Plan is currently being drafted, having held consultations around Issues and Options and Preferred Options. The pre-submissions stage is currently in progress.

(ii) Nuneaton and Bedworth Council Corporate Plan 2007-2021 The Plan and its Background Report set out how the Council’s services and activities will support the vision that “By 2021 we shall achieve the greatest improvement in quality of life and social justice in Warwickshire, providing value for money services in a safe and pleasant environment.” The Plan sets out for four key aims: 1) To improve the quality of life and social justice for residents so it is much closer to that enjoyed by the rest of Warwickshire; 2) To work in partnership to reduce the level of crime and disorder so that the community is and feels safer; 3) To provide a pleasant environment for those living, working and visiting the Borough; and 4) To provide quality services which represent value for money.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Under Aim 1, the Plan sets out specific targets (by 2021) for housing provision, earnings and deprivation:  the numbers on the Council’s housing register will be 50% less than the current number (as at January 2007);  the average wage of residents working in the Borough is within 5% of the average for Warwickshire and the level of unemployment is the same as for Warwickshire; and  by 2012, the Borough has no deprived Super Output Areas (SOAs) in the 10% most deprived wards in England and 50% fewer in the 30% most deprived SOAs in England.

(iii) Regeneration and Public Protection Business Plan (2014/15) The Cross-Border Partnership is acknowledged within Nuneaton and Bedworth’s Regeneration and Public Protection Business Plan (2014/15) which identifies specific priorities to:  work with the Cross Border Delivery Partnership to develop and implement appropriate skill related projects and with other partners to promote skill improvement; and  identify and deliver projects through the Cross Border Delivery Partnership e.g. supply chain network.

2.4 Implications The following policy issues will need to be considered in developing any local economic framework for the Cross-Border Partnership area:  Focus on investment and promoting a dynamic economy – with targeted public sector investment to transform skills, infrastructure and research and development and innovation (R&D&I), along with greater planning freedoms and more homes;  Deficit reduction – the public sector will face continuing constraints on the resources it has available with ongoing cuts in many areas;  Local devolution – a continued emphasis on devolving responsibilities to local areas. A growing role for the shadow EPB for Coventry & Warwickshire area, along with other local areas such as the West Midlands Combined Authority, will have implications for the Cross- Border Partnership partners. It would, as a minimum, introduce a further geographical level of collaboration;  Continued emphasis on the LEPs – the new Conservative Government is committed to retaining the LEPs. Consequently, they will be the focus for sub-regional economic development and growth activities. It will be important that the Cross-Border Partnership aligns itself with the evolving LLEP and CWLEP priorities and, in the future, seeks to influence their strategies and actions as appropriate. The LEPs are for example to refresh their SEPs and ESIFs strategies in the near future; and  Funding for economic development and regeneration – it is also likely that LGF will remain a key source of funding for economic development and regeneration, as well as

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 infrastructure projects. The Cross-Border Partnership partners should develop projects that fit with the LGF funding criteria and ensure that they have the necessary supporting evidence to make future bids for support. Bids for funding are also being invited for the 2014 – 2020 ESIF Programme through calls for projects. This will also be another important source of potential funding for local projects. Alongside these sources, for which funding will be awarded to projects promoting sub-regional objectives as set out within the LEP Strategic Economic Plan and ESIF Strategy, combined authorities will also benefit from significant funding capital allocations for infrastructure and economic development activities. This funding will only be available to local authority areas positioned within a combined authority.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

3 Economic Impact Assessment

3.1 Introduction The investment and activity in relation to key projects over recent years within the HBBC and NWBC areas has generated a range of benefits for the local and wider economy. This economic impact assessment has sought to quantify these benefits and, where possible, assess the potential benefits that are expected to be created through proposed future development. The analysis of benefits focuses upon the achieved and anticipated economic and employment effects within the HBBC and NWBC areas. Consideration has been given to the impact of the key projects, identified by HBBC and NWBC, in terms of both the gross and net additional benefits at the Cross-border partnership level. The key economic benefits are expected to include:  short-term and permanent employment created by the projects (primary effects);  additional economic activity resulting from supply linkage and income multiplier effects (secondary effects);  broader indirect and induced impacts of the projects in relation to generating additional economic activity and supporting other activity; and  a range of wider impacts (positive or negative externalities) such as social and environmental benefits. The focus of the assessment has principally been upon the primary and secondary economic impacts of each key project. Allowance has been made within the assessment of the net additional benefits for indirect and induced impacts through consideration of multiplier effects. Finally, this section has sought to identify the wider benefits that are generated through the activity and investment associated with the key projects, including business and competitiveness benefits, image benefits and regeneration/socio-economic effects. These wider impacts are difficult to quantify, but are nevertheless important in establishing the overall beneficial effect within the Cross-Border Partnership area.

3.2 Methodology

3.2.1 Gross employment impact The estimated employment impact attributable to each key project, both in relation to the number of gross jobs created to date and the potential future employment effects, is summarised below. The employment impact will occur through the following elements:  construction phase – temporary construction jobs associated with, for example, the development of employment and/or residential accommodation or new infrastructure. Construction employment is expressed in terms of the total number of years of work generated and then in order to approximate permanent employment, as ten year

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

equivalents. In other words, if a development supported 150 years of construction employment, this would equate to 15 ten year equivalent jobs.  operational phase (permanent) – permanent employment arising through either the occupation of the new accommodation provided on site or operation of new businesses created, as well as employment supported in the wider economy as a result of attracting additional expenditure into the local area (principally in relation to new household or visitor expenditure). The total construction spend associated with each project has been used to calculate the number of temporary construction jobs generated to date and in the future, along with data contained within the Annual Business Survey (ABS) 2013, relating to turnover and employment within the construction sector. The ABS data has provided average turnover per employee ratios for different types of construction activity, which have then been applied to the estimates of construction expenditure.1 In the operational phase, the number of gross direct permanent jobs accommodated on-site under each project has been based upon the quantum of employment floorspace. Employment density ratios consistent with those identified within guidance produced for the Homes and Communities Agency (HCA)2 have been used to calculate the gross direct employment impact. In terms of off-site employment, this has principally related to the attraction of additional visitor and household expenditure into the local area. A number of data sources have been used to estimate this impact, including the ONS Living Costs and Food Survey and VisitBritain’s Great Britain Day Visits Survey. The estimates of additional expenditure have been converted into estimates of employment impact based on average turnover per employee ratios derived from the ABS for the appropriate sectors.

3.2.2 Net additional employment Along with the gross employment impact, an assessment has also been carried out of the extent to which each key project has created additional activity that would not otherwise have taken place. In assessing the additionality of the projects, the following factors have been considered:  leakage – the proportion of outputs that benefit those outside of the target area (Cross- Border Partnership area);  displacement – the proportion of the project’s outputs accounted for by reduced outputs elsewhere in the target area. Displacement may occur in both the factor and product markets;  multiplier effects – further economic activity associated with additional local income and local supplier purchases multiplier effects have been considered as part of the assessment; and

1 This figure makes an allowance for adjustments to reflect 2015 prices, full-time/part-time working patterns and regional disparities, and represent an average turnover per employee for the period 2008-2013. 2 HCA (2010), Employment Densities Guide, 2nd Edition.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 deadweight – outputs that would have occurred even in the absence of the project (reference case). The approach to assessing the net additional impact of a scheme is shown diagrammatically in Figure 3.1. Figure 3.1: Net additional impact Intervention options Reference case Net additional impact

Gross direct effects Gross direct effects

Less leakage from target Less leakage from target area / group area / group

Gross local direct effects Gross local direct effects

Less displacement (factor Less displacement (factor LESS = Total net local additional and product market) / and product market) / effects substitution substitution

Net local direct effects Net local direct effects

Plus multiplier effects Plus multiplier effects

Total gross local effects Total gross local effects

The assessment of additionality has been undertaken at the Cross-Border Partnership area level, and has been informed by best practice guidance produced by the HCA and the Department for Business, Innovation and Skills (BIS).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

3.2.3 Net additional Gross Value Added3 An assessment has been undertaken of the net additional Gross Value Added (GVA) impact associated with each key project, both on the basis of current activity to date and taking into account proposed future development. The assessment of net additional GVA has been based on the following assumptions  the net additional job estimates (operational) have been adjusted to no longer account for leakage, as GVA is a work-placed based measure; and  average GVA per employee figures ranging from of £17,000 for educational activities and £60,600 for office related uses have been applied to the adjusted estimates of net additional employment, based on data from the ABS.

3.3 Hinckley and Bosworth

3.3.1 Completed projects The assessment has considered the following projects which are fully or partially completed:  The Atkins Building – this project, delivered by the Council in partnership with key partners, has resulted in the refurbishment of the listed former Atkins factory to deliver in excess of 3,000 sq m of flexible office accommodation within the town centre. The scheme, which has provided targeted accommodation for start-up and small businesses - particularly within the creative sector - alongside important facilities for larger occupiers, has enjoyed very high levels of demand;  Greenfields Business Park – this project, which was delivered through the partial redevelopment of a former Council depot site, has resulted in the creation of more than 3,500 sq m of high quality light industrial and hybrid accommodation adjacent to Hinckley town centre. The units, which have enjoyed high levels of demand, have been constructed to BREEAM Very Good and Excellent standards of sustainability;  Hinckley Hub – this project has involved the delivery of more than 4,000 sq m of high quality office accommodation on the edge of Hinckley town centre, as part of the mixed use development of the former Flude factory site. The project, delivered by a local developer in close partnership with Hinckley and Bosworth Borough Council, has provided a new shared platform for service delivery for the Council and its partners including the County Council, Job-Centre Plus and the Citizens Advice Bureau;  North Warwickshire and Hinckley College Hinckley Campus – the relocation of the College within Hinckley to new, high quality accommodation. This project was delivered by the College and facilitated through a land transfer by the Council. It has provided new education facilities for arts and creative subjects, recognised by Ofsted as outstanding;

3 GVA is a measure of the economic value of goods and services produced in an area. It is defined by the Office for National Statistics (ONS) as “… the difference between the value of goods and services produced and the cost of raw materials and other inputs which are used up in production”.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Hinckley Business Improvement District (BID) – established in 2009 and covering more than 450 businesses within Hinckley town centre, the BID has recently benefited from support for a second term for the period to 2019. This reflects a programme of activity focused around the strands of business support, marketing and promotion and events and visitor services;  Hinckley Crescent - Located on the site of the former bus station, the Crescent is a comprehensive town centre regeneration project that will transform the offer within the town centre through the delivery of new retail and leisure floorspace. The Council has played a central role in enabling and accelerating the scheme, the first elements of which have opened in 2015;  MIRA Technology Park Enterprise Zone – founded in 1946, MIRA has been designated as an Enterprise Zone reflecting its strengths and reputation in relation to supporting design and development in the automotive and related sectors. The scheme has benefited from significant support to deliver off and on-site infrastructure, with Hinckley and Bosworth Borough Council adopting a proactive role to support investment. To date, it is estimated that 7,800 sq m of new floorspace has been delivered at MIRA;  Hinckley Commercial Park – led by Goodman, this scheme has involved the redevelopment of underutilised assets on the A5, within close proximity to the M69 motorway. The Phase 1 scheme resulted in the delivery of some 65,000 sq m of distribution floorspace, firmly establishing Hinckley as a prime distribution location. The second phase of development was completed in September 2015, and comprises almost 36,000 sq m of new employment floorspace. The second phase scheme was been pre-let to DPD, and forms one of the largest parcel depots in the UK. The scheme has also played a role in enabling wider regeneration through the delivery of adjacent sites for residential development;  The National Forest – led by the National Forest Company, significant investment to establish the forest – both through extensive tree planting and as a brand – has resulted in improvements to the quality of the landscape across an area of more than 200 square miles, including parts of Hinckley and Bosworth around Markfield;  Bosworth Water Trust Leisure Park - a family orientated leisure and water park set in 20 hectares. The Park has around 8 hectares of lakes for windsurfing, sailing and canoeing, alongside other leisure activities. As well as acting as a focus for events, the Park also has a well-established and popular campsite and a newly constructed lodge, in addition to a café and bar. In 2013 the Park attracted around 120,000 visitors. Table 3.1 sets out a summary of the estimated gross impacts of the completed projects. It is noted that, alongside projects delivered to date, this assessment captures the initial phases of investment at MIRA Technology Park, the effects of enhancing on and off-site infrastructure and the associated effects in relation to attracting new occupiers including Haldex and Aston Martin. The anticipated benefits associated with proposed phases are captured within the analysis of future projects.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.1: Gross direct impacts of completed projects (Hinckley and Bosworth) Total investment £301 million Total gross construction jobs (person years) 1,960 Total gross permanent jobs 3,410 Total Gross Value Added per annum £155 million

The estimated net additional local impact of the completed projects is summarised in Table 3.2.

Table 3.2: Net additional local impact of completed projects (Hinckley and Bosworth) Total net additional local construction jobs (person years) 1,270 Total net additional local permanent jobs (resident-based) 1,742 Total net additional permanent jobs (workplace-based) 2,839 Total net additional GVA per annum £133 million

The assessment of economic impact does not take into account the activity associated with Caterpillar UK and Triumph Motorcycles. These two major employers have their headquarters within Hinckley and Bosworth. In the case of Caterpillar, the site at Desford has been in operation for more than 60 years and currently supports an estimated 1,600 jobs. Triumph is located in Hinckley and, following strong growth over a number of years, employs around 500 people in the manufacture of motorcycles for a global market. In addition to the economic benefits identified above, the projects have resulted in a range of wider, less tangible, benefits. While less easy to quantify, these benefits have nevertheless played an important role in supporting economic development and regeneration, while also delivering significant benefits in terms of social cohesion and environmental benefits. The wider benefits associated with individual projects are outlined in Appendix C, while a selection of the wider benefits associated with the completed projects are summarised in Table 3.3.

Table 3.3: Wider benefits of completed projects (Hinckley and Bosworth) Wider benefit Project Description Strengthen & MIRA Technology Investment at MIRA will strengthen the automotive and diversify the Park related sectors both directly at the Technology Park and economic base indirectly across the wider supply chain. Atkins Building The scheme has provided a focus for the development of start-up and small businesses, particularly within the creative sector. As the building manager, HBBC has taken a proactive role to supporting start-up and micro businesses through signposting to business support and other services

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.3: Wider benefits of completed projects (Hinckley and Bosworth) Wider benefit Project Description Catalyse The Crescent The scheme will significantly enhance retail and leisure regeneration provision as well as the quality of the environment within the town centre. It will contribute to creating a retail and leisure destination, ensuring that local retail expenditure is captured and it is expected to act as a stimulus to wider investment across the town centre. Atkins Building and These schemes have played an important role in NWHC Hinckley regenerating a high profile and important heritage site Campus within the town centre, as well as ensuring that levels of activity within the town centre are sustained and enhanced Hinckley Hub Through entering into an agreement with MRP Developments HBBC secured the regeneration of a vacant and derelict industrial site, bringing it back into active use Greenfields The scheme has contributed to the wider regeneration of the Business Park town through bringing an underutilised Council depot site back into active use. Hinckley The scheme has played a central role in bringing forward a Commercial Park wide programme of activity, including facilitating the delivery of around 350 new homes on an adjacent 25 ha brownfield site. Image and Hinckley Hub The scheme has significantly enhanced the appearance of a perception prominent site located at a gateway to the town centre. It has also provided a high quality platform appropriate for the delivery of services by local partners The Crescent This scheme will play a very important role in transforming perceptions of Hinckley town centre, both for local residents and within the property market. To date, project partners have achieved demand from a range of national occupiers that would not previously have sought accommodation within the town. Hinckley Town The BID has played an important role in transforming local Centre BID perceptions of the town centre, encouraging higher rates of usage. It estimates that vacancy rates in the BID area have halved while footfall has increased 3% year on year. MIRA Technology MIRA is an internationally renowned centre for research and Park testing, and has national recognition through its designation as an Enterprise Zone. To date, it has attracted global brands to locate within Hinckley and Bosworth at the Technology Park. Hinckley Phase 1 of the Hinckley Commercial Park scheme has played Commercial Park a very important role in terms of developing Hinckley as a prime distribution market.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.3: Wider benefits of completed projects (Hinckley and Bosworth) Wider benefit Project Description Social cohesion NWHC Hinckley The scheme has ensured that high quality further education Campus opportunities are retained within Hinckley town centre, in a central location accessible via sustainable forms of transport. Hinckley Town Events organised by the BID have generated high levels of Centre BID participation within the local community. The Crescent The scheme will extend the range of local retail and leisure facilities in a highly sustainable location within close proximity to local communities. It will also significantly enhance the quality of the public realm environment within the town centre with benefits for community pride. Hinckley Travel arrangements have been put in place to provide Commercial Park sustainable access to the site from neighbouring towns including Hinckley, linking opportunities with areas of employment need. The National Forest Investment to date has created forest landscapes for leisure and recreation use around former mining towns towards the north of the area, alongside creating opportunities for education, participation and volunteering. MIRA Technology In July 2015, MIRA will be operating buses to link Hinckley, Park Atherstone and Nuneaton for access to employment at the site. Environmental Greenfields The scheme has showcased a range of materials and performance Business Park technologies within high levels of environmental performance. It has demonstrated the potential value of these technologies in terms of attracting occupiers and sustaining low levels of vacancy. The National Forest Investment to date has resulted in the planting of more than 8 million trees across thousands of hectares. Investment to date has created high quality landscapes within the northern part of the district including around Groby Pool.

3.3.2 Future projects The following projects which are currently being delivered or are being proposed have been assessed:  Argent Mead Leisure Centre - The new leisure centre at the site of the former HBBC offices will provide state of the art leisure facilities within the town centre. The scheme will deliver a significantly enhanced leisure offer to local residents in a sustainable town centre location, with levels of usage expected to increase;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Barwell and Earl Shilton Sustainable Urban Extensions – The Council has provided strategic leadership in identifying these sites as a focus for sustainable growth, with proposals for around 4,100 new houses alongside employment provision and community facilities. Importantly, the locations have been selected to bring about the regeneration of the adjacent neighbourhood centres of Barwell and Earl Shilton.  Rural Broadband – Led by Leicestershire County Council, this project will accelerate the roll- out of next generation broadband access across rural areas of Hinckley and Bosworth, enhancing access for an estimated 10,500 premises over the course of two contracts;  Twycross Zoo - Twycross Zoo is a key visitor attraction within the Borough. Renowned as a world primate centre, it is the only zoo in the UK with all four of the great ape species. Over the last decade it is estimated that the Zoo has averaged around 490,000 visitors per annum. The Zoo has a planned programme of capital improvement works which are currently being implemented to enhance the overall visitor experience;  Market Bosworth Marina - A new 150 berth marina located on the Ashby Canal adjacent to the town of Market Bosworth is nearing completion. Facilities are of an extremely high standard, offering full disabled access. The Marina has experienced very high levels of demand prior to completion and has the potential to complement wider attractions as part of more comprehensive visitor offer. The assessment also considers the potential benefits associated with future phases of development activity at MIRA Technology Park, with further development of more than 150,000 sq m of floorspace expected over the next ten years, supported by ongoing works to enhance on- site and off-site infrastructure, alongside establish a dedicated training facility on the site to be operated by North Warwickshire and Hinckley College in partnership with the University of Leicester and Loughborough College. Alongside this, consideration has also been given to the potential impact associated with bringing forward identified sites within the Allocations and Development Management Policy Document. Over and above strategic projects (including MIRA and Hinckley Commercial Park), this Document identifies six sites comprising 44.7 ha for employment development alongside sites with capacity for in excess of 1,700 dwellings (including 817 dwellings to be delivered within five years). The estimated total gross impact of the future projects is set out in Table 3.4.

Table 3.4: Gross impact of future projects (Hinckley and Bosworth) Total investment £888 million Total gross construction jobs (person years) 5,780 Total gross permanent jobs 5,600 Total Gross Value Added per annum £312 million

After adjusting for estimated leakage, displacement, deadweight and multiplier as appropriate, Table 3.5 presents the estimated net additional impact of the future projects.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.5: Net additional local impact of future projects (Hinckley and Bosworth) Total net additional local construction jobs (person years) 3,745 Total net additional local permanent jobs (resident-based) 3,300 Total net additional permanent jobs (workplace-based) 5,100 Total net additional GVA per annum £286 million

Again, it is anticipated that the future projects will result in important wider benefits. Alongside strengthening the local economy and promoting regeneration, it is anticipated that significant benefits will accrue to local communities as a result of a range of social and environmental benefits. A high level of potential wider benefits associated with individual projects are outlined in Appendix C. Table 3.6 outlines a summary of key wider benefits associated with future projects.

Table 3.6: Wider benefits of future projects (Hinckley and Bosworth) Wider benefit Project Description Strengthen & MIRA Technology Moving forwards it is anticipated that MIRA will continue diversify the Park to act as a key focus for economic growth, focused around economic base key strengths in the automotive and related sectors, with potential to support existing and start-up businesses in related sectors. This asset will continue to attract knowledge based activity to the area, with the proposed training centre offering the potential for significant spill- over benefits for the local and wider community. Twycross Zoo It is anticipated that investment will strengthen the appeal of the Zoo, enhance the quality of the visitor experience and further extend its catchment. As such, it will play a critical role in building a density of high quality attractions within the local area. There will be opportunities to maximise the benefits through promoting new provision of visitor accommodation. Leicestershire Rural Through accelerating the roll out of NGA broadband to Broadband rural communities, the scheme has the potential to deliver significant benefits to businesses – particularly in relation to productivity enhancement and accessing new markets. Market Bosworth The Marina will open up this section of the Ashby Canal to Marina a new range of users. It will extend the visitor offer of the Borough and, through high quality linkages, has the potential to result in important benefits for other local attractions including Market Bosworth town centre. Catalyse Argents Mead The re-provision of leisure facilities at Argents Mead will regeneration contribute to building a density of activity and footfall across the town centre. The enhanced facilities and new café are expected to result in increased visits and dwell times within the town centre, resulting in increased expenditure to support local businesses.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.6: Wider benefits of future projects (Hinckley and Bosworth) Wider benefit Project Description Barwell and Earl The significant expansion of the towns of Barwell and Earl Shilton SUEs Shilton is expected to significantly extend the catchment of the existing local centres, resulting in high levels of footfall and associated retail expenditure. Image and MIRA Technology MIRA will continue to act as a high profile asset, attracting perception Park investment and knowledge based activity to the Borough and the wider Cross-Border Partnership area. Opportunities to maximize the ongoing benefits of MIRA to the area should continue to be exploited. Twycross Zoo Investment will significantly enhance the visitor experience, contributing to improved visitor perceptions and reviews of the attraction. The enhancement of the Zoo is expected to improve general perceptions of the area as a visitor destination, linked to other local attractions. Barwell and Earl It is anticipated that this scheme will help to extend the Shilton SUEs local housing offer, creating new markets and a more balanced supply profile, helping to support a sustainable growing community that is attractive to existing and new residents alike. Community Argents Mead The new facilities, which will be amongst the best in the cohesion region, are expected to attract higher levels of visits. As such, alongside supporting a high quality leisure and recreation offer, the scheme has the potential to result in significant health benefits. Leicestershire Rural The scheme will significantly narrow the digital divide for Broadband rural communities. It also has the potential to deliver cost savings to households through reducing the need for commuting and opens up new opportunities for service delivery. Barwell and Earl The delivery of these urban extensions will establish new Shilton SUEs communities, contributing to sustaining viable and vibrant neighbourhoods at Barwell and Earl Shilton. The delivery of new infrastructure and community facilities as part of these projects will also contribute to enhancing the quality of life for new and existing residents. Environmental Leicestershire Rural The extension of broadband services has the potential to performance Broadband deliver significant environmental benefits, particularly through reducing carbon emissions associated with commuting. Market Bosworth As part of the project works are being undertaken to Marina enhance a SSSI adjacent to the site. Works including the planting of new habitats.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

3.4 North Warwickshire

3.4.1 Completed projects In relation to North Warwickshire, the following projects have been assessed:  Hams Hall (to-date) – a regional logistics site located in a prime position on the M42 corridor, this site has become established as one of the premier distribution sites within the West Midlands since its initial redevelopment in the early 1990s. Following the opening of the Hams Hall Rail Freight Terminal in 1997, the site has also become established as a key focus for the high technology sector through the development of the BMW Engine manufacturing plant. Other than onsite expansion capacity for individual occupiers (notably BMW), the existing distribution park now fully developed out;  Birch Coppice (to-date) – also designated as a regional logistics site following the opening of the Birmingham Intermodal Freight Terminal, this former colliery site has attracted very significant demand from distribution occupiers. The site, which is located on the A5 in close proximity to Junction 10 of the M42, remains a popular location and continues to attract demand from national distribution and logistics businesses;  Coleshill Leisure Centre – North Warwickshire Council has led the development of a new leisure facility within Coleshill, replacing the former facility that was reaching the end of its functional life. Opened in 2014 on the site of the Coleshill School, the new facility comprises 2,200 sq m of new facilities for use by the school and the wider community. The former leisure centre is being marketed for residential use;  North Warwickshire Council House refurbishment – The project involved the refurbishment of the NWBC office on South Street in Atherstone. It has enhanced the efficiency of the building and has enabled the co-location of a number of locally important partners including NWBC, Warwickshire County Council, Job-Centre Plus, the Citizens Advice Bureau and Warwickshire Police.  The Belfry Hotel and Resort – following acquisition, KSL Capital Ltd and operator De Vere Group initiated a comprehensive refurbishment of the Belfry Hotel and Resort. The project sought to address the identified need for improved accommodation and facilities at the Belfry to support a more competitive conference and event offer. The comprehensive £26 million refurbishment programme enhanced rooms and resulted in a refreshed food and drink offer at the resort. Table 3.7 sets out a summary of the estimated gross impacts of the completed projects.

Table 3.7: Gross direct impacts of completed projects (North Warwickshire) Total investment £1,480 million Total gross construction jobs (person years) 9,870 Total gross permanent jobs 11,350 Total Gross Value Added per annum £638 million

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The estimated net additional local impact of the completed projects is summarised in Table 3.8.

Table 3.8: Net additional local impact of completed projects (North Warwickshire) Total net additional local construction jobs (person years) 3,370 Total net additional local permanent jobs (resident-based) 2,860 Total net additional permanent jobs (workplace-based) 8,172 Total net additional GVA per annum £459 million

Alongside the impacts outlined in Table 3.8, it is estimated that the projects have resulted in an important range of wider economic benefits. Wider benefits for each project are summarised in Appendix C, and include the following benefits:  Strengthening and diversifying the economic base – Hams Hall has played an important role in establishing North Warwickshire and the wider M42 corridor as a key logistics destination. This role has been further reinforced by the designation of this site, alongside Birch Coppice, as regional logistics sites following the delivery of rail freight facilities. Furthermore, through attracting the BMW engine plant, Hams Hall has played an important role in establishing a focus for advanced manufacturing. The Borough is now an established location within a wider cluster of automotive sector activity extending across the Greater Birmingham conurbation;  Catalysing regeneration – alongside major investments at Hams Hall and Birch Coppice, which have involved the redevelopment of a former power station and former colliery site respectively, other projects including the Coleshill Leisure Centre have the potential to delivery significant regeneration benefits. In particular, in creating a modern leisure facility for local residents at the Coleshill School site, this project has vacated a centrally located site for residential led redevelopment. This will significantly improve the quality of this town centre site and contribute to meeting local housing need in a sustainable location;  Enhanced image and perception – key projects have contributed to changing and enhancing perceptions of North Warwickshire. Investment at the Belfry Hotel and Resort has played an important role in ensuring that the global reputation of this destination – as part of a wider cluster of attractions within Warwickshire - is sustained and enhanced. Other projects, have also played a significant role in transforming perceptions of the Borough, such as Hams Hall through establishing North Warwickshire as a logistics location.  Social and community benefits – projects led by North Warwickshire Council – including the Council House refurbishment and the delivery of replacement leisure provision in Coleshill – have directly benefited their respective communities. In the case of the leisure centre, the project has benefited the community by providing access to enhanced leisure and recreation facilities. The Council House refurbishment has secured the future provision of services within Atherstone and enabled the co-location of key services to facilitate a more joined up approach to service delivery. Alongside these projects, private sector employers have played an important role in seeking to extend employment benefits to the local community, for example through Academy scheme instituted by a major occupier at Birch Coppice;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Environmental benefits – major regeneration schemes at Hams Hall and Birch Coppice have resulted in the remediation of a former power station and a former colliery site, transforming these sites into vibrant employment locations. Other projects, notably investment by North Warwickshire Council to enhance the Council House at Atherstone, has resulted in a significant improvement in the energy performance of the Council’s asset base. It is estimated that through the comprehensive refurbishment of key plant, levels of electricity and heat usage have halved resulting in significant carbon savings.

3.4.2 Future projects The following future projects within North Warwickshire have been assessed:  Hams Hall (future phase) – a further 20ha of land is available for redevelopment at Hams Hall. The site, comprising the former Hams Hall ‘B’ power station, is currently designated as green belt so cannot automatically assumed to be available for development. However, the potential exists for this land to be used for renewable energy generation (excluding wind or nuclear power) if there is a proven national need.  Birch Coppice (future phase) – there is an estimated further 40 ha of expansion space at Birch Coppice, including parts of the Phase 2 site alongside the Phase 3 site. Significant development activity is ongoing, including a 70,000 sq m facility for Euro Car Parts. Alongside Birch Coppice, permission has been granted for new industrial and distribution floorspace on adjacent land at Hall End Farm. As such, Birch Coppice and adjacent areas are likely to continue to attract major logistics investments over a number of years.  Site Allocations Plan – the site allocations plan identifies sites throughout North Warwickshire for development over the period to 2029. Prepared as part of the Local Plan, it sets out targets that support the overarching aims and objectives of the Council in relation to housing and employment growth. The Allocations Plan identifies five sites with the potential to accommodate 25.7 ha of employment development alongside a range of sites with capacity for 2,240 housing units.  CSW Superfast Broadband – the CSW Broadband Project has been established to bring improved broadband speeds across Coventry, Solihull and Warwickshire – particularly in the rural areas. The aim of the project is to extend the provision of the wholesale network to cover areas that will not be reached under the existing roll-out plans of the commercial providers. Within North Warwickshire, it is estimated that contract 1 will upgrade around 14,000 premises to superfast broadband, with a target of around 4,000 for Contract 2. Economic forecasts prepared by Cambridge Econometrics identify the potential for employment within North Warwickshire to increase by almost 3,000 over the period to 2025. Separate forecasts prepared by Experian indicate the potential for growth in the number of workplace jobs of 5,900 over the period 2015 to 2030. It is anticipated that future projects will make a significant contribution towards these growth projections. It is also anticipated that major projects within adjacent authority areas will play a role in creating employment opportunities for residents of North Warwickshire. In particular, it is anticipated that key projects across the wider Cross Border Partnership area will generate significant benefits for

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

North Warwickshire. Recognising their economic importance, North Warwickshire Borough Council is supportive of these projects including:  MIRA Technology Park Enterprise Zone – it is anticipated that the ongoing delivery of the masterplan for MIRA Technology Park, with further development of more than 150,000 sq m of floorspace expected over the next ten years, will generate significant benefits at the sub-regional level, linked to wider investment in the automotive and other advanced manufacturing sectors across the West Midlands. The potential impacts of this scheme have been assessed at the Cross Border Partnership level above; and  Twycross Zoo – the planned programme of capital improvement works which are currently being implemented to enhance the overall visitor experience are expected to play a key role in enhancing the visitor economy along the A5 corridor, linked to a wider range of other attractions. Again, the potential impact of this scheme at the Cross Border Partnership level is outlined above. Alongside this, it is also anticipated that investment activity within the wider M42 corridor will result in important economic effects within North Warwickshire. In particular, key projects will include:  UK Central – a major growth initiative led by Solihull MBC and supported by a range of strategic partners, the programme focusses on four key economic zones broadly aligned to the M42 corridor, namely the UKC Hub, Chelmsley Wood / North Solihull, Solihull Town Centre and Blythe Valley Park. The Hub represents the largest single opportunity area. The vision for the HS2 Interchange Station site is to create a high value, mixed activity economic hub based on an innovative and modern approach to ‘garden city’ principles. It is estimated that the development of the Interchange Station site has the potential to create approximately 20,000 new jobs and around 2,000 new homes. Of the jobs created, based on current travel to work data, some 400 could be accessed by North Warwickshire residents.  Birmingham Airport expansion – a comprehensive range of development proposals for Birmingham Airport are set out within the current Airport Master Plan ‘Towards 2030: Planning a Sustainable Future for Air Transport in the Midlands’. The Master Plan provides for a major expansion that will see passenger numbers treble from the current level of 8.6 million to 27.2 million passengers per annum in 2030. The numbers of jobs supported in the region is expected to increase to 19,090 FTE jobs, an uplift of 8,600, of which around 170 FTE jobs could be taken by North Warwickshire residents based on current travel to work data.  Birmingham NEC – the NEC is the UK’s largest exhibition facility with 182,000 sq m of flexible exhibition space through 20 interconnected halls. It attracts around two million visitors to 125 exhibitions per annum. The NEC hosts many of the largest and high-profile exhibitions such as Spring Fair, Crufts and Autosport International. There are major proposals for expansion at the NEC. The Resorts World Birmingham development will comprise a £150m integrated leisure and entertainment complex that could create some 1,100 gross FTE jobs, including 30 for residents of North Warwickshire.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Projects within the M42 Corridor have the potential to generate significant opportunities for residents and businesses within North Warwickshire both in the construction and the operational phases. Based on current travel to work data derived from the 2011 census, it is estimated that employment opportunities generated through these schemes could benefit around 600 North Warwickshire residents directly. The estimated total gross impact of the future projects is set out in Table 3.9.

Table 3.9: Gross impact of future projects (North Warwickshire) Total investment £247 million Total gross construction jobs (person years) 1,649 Total gross permanent jobs 3,941 Total Gross Value Added per annum £279 million Total gross permanent jobs for North Warwickshire residents 600 associated with transformational M42 Corridor projects

After adjusting for estimated leakage, displacement, deadweight and multiplier as appropriate, Table 3.10 presents the estimated net additional impact of the future projects.

Table 3.10: Net additional local impact of future projects (North Warwickshire) Total net additional local construction jobs (person years) 840 Total net additional local permanent jobs (resident-based) 1,530 Total net additional permanent jobs (workplace-based) 2,886 Total net additional GVA per annum £211 million

Again, it is anticipated that the future projects – both those within North Warwickshire and within adjacent areas - will result in important wider benefits. Alongside strengthening the local economy and promoting regeneration, it is anticipated that significant benefits will accrue to local communities as a result of a range of social and environmental benefits. A high level assessment of potential wider benefits associated with each of the individual projects is outlined in in the project proforma appended to this note. Table 3.11 outlines a summary of key wider benefits associated with future projects.

Table 3.11: Wider benefits of future projects (North Warwickshire) Wider benefit Project Description Strengthen and CSW Broadband Through accelerating the roll out of superfast broadband to diversify the communities within North Warwickshire, the scheme has the potential economic base to deliver significant benefits to businesses – particularly in relation to productivity enhancement and accessing new markets. MIRA Moving forwards it is anticipated that MIRA will continue to act as a key Technology focus for economic growth, focused around key strengths in the Park automotive and related sectors, with potential to support existing and start-up businesses in related sectors.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.11: Wider benefits of future projects (North Warwickshire) Wider benefit Project Description M42 Corridor The scale of the proposed projects within the wider M42 corridor has the potential to deliver transformative change. Investment in infrastructure will open up access to new market opportunities, while investment in commercial, leisure and residential facilities will establish UK Central as a focus for future investment. North Warwickshire businesses are potentially well placed to benefit from this investment Catalyse Site Allocations The Site Allocations plan will bring forward sites across North regeneration Warwickshire to meet local employment and housing need. It is anticipated that through the redevelopment of these sites, opportunities will emerge to promote wider investment to benefit existing communities. Birch Coppice It is anticipated that ongoing investment at Birch Coppice will continue to create a wide range of employment opportunities for local residents Image and M42 Corridor It is anticipated that investments proposed around UK Central will perception transform the image of the M42 corridor. It will establish the area as a hub of infrastructure alongside a major commercial office, leisure and retail destination, benefiting from outstanding national and international linkages. Twycross Zoo Investment will significantly enhance the visitor experience, contributing to improved visitor perceptions and reviews of the attraction. The enhancement of the Zoo is expected to improve general perceptions of the area as a visitor destination, linked to other local attractions. MIRA It is anticipated that ongoing investment will continue to raise the Technology international profile of MIRA and the facilities at the Technology Park. Park Building upon progress to date, it is anticipated that investment will continue to attract investment from leading brands in the automotive and other advanced manufacturing sectors. Community CSW Broadband Ongoing investment in extending the network will significantly narrow cohesion the digital divide, particularly for rural communities. It also has the potential to deliver cost savings to households through reducing the need for commuting and opens up new opportunities for service delivery. Site allocations Through the allocation of housing sites, the Plan outlines an opportunity to promote the delivery of a high quality, affordable housing offer that better meets the needs of existing residents and employers. Environmental CSW Broadband The extension of broadband services has the potential to deliver performance significant environmental benefits, particularly through promoting home working and thus reducing carbon emissions associated with commuting. Hams Hall The extension of the Hams Hall scheme has been identified as having the potential to accommodate renewable energy infrastructure.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

3.5 Implications The review of projects has highlighted a number of lessons which have implications for the future, in particular:  the completed projects have contributed substantially to maintaining and developing the local economies. In total, the Hinckley and Bosworth projects are estimated to have generated around 2,840 net additional jobs and the North Warwickshire projects over 8,170 net additional local jobs. In 2014 total employment in Hinckley and Bosworth was 41,900 and in North Warwickshire it was 41,000;  the potential impact of future projects is also expected to be substantial – projected to be some 5,100 and 2,890 net additional local jobs from the Hinckley and Bosworth and North Warwickshire projects respectively;  importantly, the projects (both completed and future) have an important range of wider economic, social and environmental impacts; and  the proactive and strategic approach to tackling issues including a comprehensive set of actions to address Hinckley Town Centre (supporting a range of projects including Hinckley Hub, the Atkins Building redevelopment, Greenfields, Argents Mead and the Crescent scheme) can deliver significant benefits.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

4 Economic review

4.1 Introduction The Economic Review provides an overarching economic assessment of the three local authority areas and includes an analysis of a range of indicators. This Section summarises the results of the review and, in particular, presents the strengths, weaknesses, opportunities and threats (SWOTs) of each local authority area and the Cross-Border Partnership area overall. Appendix A sets out the full results of the economic review.

4.2 National economic context Economic conditions in the UK have improved overall. However, uncertainty remains about global growth prospects and in particular the performance of the Eurozone. The Summer Budget 2015 indicated that the UK economic recovery is now well established and growth is broadly based across sectors. There is a renewed focus on rebalancing the economy based on investment across the regions, growth driven by the private sector, and further devolution to increase local decision making. The 2015 Spending Review sets out a commitment to further consolidate public sector expenditure by £20 billion over the next four years.4 The UK’s economic recovery is well established. The UK was the fastest growing G7 economy in 2014, growing by 3.0%, its best performance since 2006. The Organisation for Economic Co‑operation and Development (OECD) forecasts the UK to be the fastest growing G7 economy again in 2015. The OBR5 forecasts GDP growth of 2.4% in 2015 and 2.3% in 2016. Growth is revised up in 2017 and 2018 from 2.3% to 2.4% in both years and is unchanged in 2019 at 2.4%. The UK labour market performance continues to be strong. In the 3 months to April the employment level and rate were both around record levels at 31.1 million and 73.4% respectively. The recent growth in employment predominantly reflects increases in full-time employment and those employed in high and medium-skilled occupations. Over the past year, 85% of the increase in employment has been in full-time work and 92% has been in high or medium-skilled jobs. The OBR forecasts employment to be 31.2 million in 2015, rising each year to 32.1 million in 2020.

4.3 Economic Growth and Competitiveness Index

4.3.1 Methodology Often economic reviews are undertaken thematically – for example, by assessing demographic trends – but with limited consideration of how these themes or indicators inter-relate. Consequently, as part of this Study, AMION has developed an Economic Growth and

4 HM Treasury, 2015 Spending Review 5 OBR Economic and fiscal outlook July 2015

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Competitiveness Index (referred to as the EGCI or the Index), which groups various indicators within a logical framework (see Figure 4.1). It is based on a database of twenty eight socio- economic indicators and provides an illustration of relative performance across a range of economic criteria for individual local authority district areas. Figure 4.1: Economic Growth and Competitiveness Index Framework

The EGCI ranks individual district authorities (out of 325 district areas across England) in relation to each of four pillars of economic growth and competitiveness (enterprise, people and labour market, place and knowledge and innovation), economic activity and target outcomes, both in terms of:  current performance (cross sectional) - this is based on the latest available data and ranks each local authority district in terms of its position to provide a ‘snapshot’ of ‘current’ performance; and  recent trends (longitudinal) - this ranks each district’s change in a variable. It provides an indication of how well it is performing compared with others in terms of rate of change. The analysis of recent trends covers either a ten or five year period, reflecting the latest available data. The EGCI is a new index but is based on standard, published secondary source data. It is currently being used in a number of studies, such as AMION’s work for the Cornwall and Isles of Scilly LEP to develop a Smart Specialisation and R&D&I Strategic Investment Framework and the economic synergies research for Worcestershire. The Index is augmented by more detailed analyses which are set out in Appendix A and have informed the SWOT assessments in this section.

4.3.2 EGCI cross sectional analysis Figure 4.2 sets out the results of the cross sectional EGCI analysis. Those variables highlighted as green indicate where the local authority is performing within the top third of districts. For those shown in amber, the performance is within the middle third and those in red within the bottom third.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.2: Comparator analysis – cross sectional analysis COMPARATOR ANALYSIS PERFORMANCE REVIEW - CROSS SECTIONAL ANALYSIS Nuneaton and Nuneaton Warwickshire Hinckleyand Bedworth Bosworth deviation Standard Average Range North North

TARGET OUTCOMES LIFE SATISFACTION 75 34 290 133 256 137.5 GVA PER CAPITA 196 40 259 165 219 112.7 RESIDENT EARNINGS 214 216 198 209 18 9.9 DEPRIVATION 73 139 210 141 137 68.5 LIFE EXPECTANCY 87 236 242 188 156 88.0 AVERAGE RANK 114 130 276 173 162 89.3 ECONOMIC OUTPUT GROSS VALUE ADDED PER HECTARE 214 218 123 185 95 53.7 GROSS VALUE ADDED PER EMPLOYEE 184 227 211 207 43 21.7 EMPLOYMENT RATE 131 46 280 152 234 118.4 EMPLOYEE RESIDENT RATIO 194 19 260 158 241 124.5 AVERAGE RANK 180 99 268 182 169 84.5 ENTERPRISE SMES PER 1,000 W/A POPULATION 145 113 273 177 160 84.7 ENTERPRISES PER 10,000 W/A POPULATION 147 113 273 178 160 84.3 BIRTHS PER 10,000 W/A POPULATION 170 150 265 195 115 61.4 SELF EMPLOYMENT RATE 175 291 195 220 116 62.0 EXPORT INTENSIVE SECTORS 37 3 182 74 179 95.1 AVERAGE RANK 128 127 270 175 143 82.3 PEOPLE AND LABOUR MARKET WORKING AGE POPULATION 181 173 143 166 38 20.0 FORECAST WORKING AGE POPULATION 203 196 151 183 52 28.2 HIGHEST QUALIFICATION NVQ4+ 203 302 316 274 113 61.6 HIGHEST QUALIFICATION NO QUALIFICATIONS 257 253 283 264 30 16.3 JSA CLAIMANT RATE 122 102 209 144 107 56.9 NET COMMUTER FLOWS 269 18 285 191 267 149.7 AVERAGE RANK 254 195 301 250 106 53.1 KNOWLEDGE AND INNOVATION EMPLOYMENT IN HIGH TECHNOLOGY SECTORS 15 74 22 37 59 32.2 EMPLOYMENT IN KNOWLEDGE INTENSIVE SERVICES 261 325 221 269 104 52.5 HIGHER ORDER OCCUPATIONS 202 66 260 176 194 99.6 AVERAGE RANK 158 145 177 160 32 16.1 LAND, PREMISES, INFRASTRUCTURE AND ENVIRONMENT RV PER HEREDITAMENT 190 36 154 127 154 80.6 SUPERFAST BROADBAND AVAILABILITY 140 132 132 135 8 4.6 MEDIAN HOUSE PRICE 223 219 265 236 46 25.5 RATIO OF MEDIAN HOUSE PRICE TO MEDIAN ANNUAL EARNINGS 87 112 64 88 48 24.0 PER CAPITA EMISSIONS 115 218 75 136 143 73.8 AVERAGE RANK 146 118 91 118 55 27.5 Note: Each 325 local authorities in England is ranked in terms of its current position on each variable with 1 being the best performing and 325 the worst. However, in relation to deprivation, a number of areas are ranked as 1 since they do not contain any Lower Level Super Output Areas (LSOAs) in the worst 20%.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The indicators highlighted as performing strongly suggest areas of strength upon which the Cross- Border Partnership can seek to build. In contrast, the more poorly performing variables (shown in red) are indicative of potential areas of weakness, which may need to be addressed through future policy interventions. Hinckley and Bosworth and North Warwickshire have a concentration of indicators within the middle third, with the others reasonably evenly split between the upper and lower bands. In contrast, Nuneaton and Bedworth has a significantly greater proportion of indicators in the worse performing third. The more detailed analysis indicates that labour market linkages between the three districts are evident – albeit there are significant commuting flows to a number of other major centres. For example, Hinckley and Bosworth has large outflows to Leicester and Nuneaton and Bedworth to Coventry. North Warwickshire has significant in and outflows to Birmingham.

4.3.3 EGCI longitudinal Figure 4.3 shows the longitudinal EGCI results, again with performance colour coded using a traffic light system. Here again, an initial focus will be seeking to build on and sustain those variables which show strong relative performance over recent years, as well as tackling those areas which are performing more poorly.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.3: Comparator analysis – longitudinal analysis COMPARATOR ANALYSIS PERFORMANCE REVIEW - LONGITUDINAL ANALYSIS Nuneaton and Nuneaton Warwickshire Hinckleyand Bedworth Bosworth deviation Standard Average Range North North

TARGET OUTCOMES GVA PER CAPITA 144 46 77 89 98 50.1 RESIDENT EARNINGS 268 265 176 236 92 52.3 DEPRIVATION 183 244 261 229 78 41.0 LIFE EXPECTANCY 151 181 149 160 32 17.9 AVERAGE RANK 223 220 183 209 40 22.3 ECONOMIC OUTPUT GROSS VALUE ADDED PER HECTARE 132 137 39 103 98 55.2 GROSS VALUE ADDED PER EMPLOYEE 233 176 82 164 151 76.3 EMPLOYMENT RATE 304 69 264 212 235 125.7 EMPLOYMENT CHANGE 67 124 72 88 57 31.6 AVERAGE RANK 207 87 67 120 140 75.7 ENTERPRISE SMES PER 1,000 W/A POPULATION 196 201 188 195 13 6.6 ENTERPRISES PER 10,000 W/A POPULATION 145 185 104 145 81 40.5 BIRTHS PER 10,000 W/A POPULATION 207 213 149 190 64 35.3 SELF EMPLOYMENT RATE 74 291 85 150 217 122.2 EXPORT INTENSIVE SECTORS 205 99 239 181 140 73.0 AVERAGE RANK 159 235 133 176 102 53.0 PEOPLE AND LABOUR MARKET WORKING AGE POPULATION 284 302 173 253 129 69.9 FORECAST WORKING AGE POPULATION 248 240 168 219 80 44.1 HIGHEST QUALIFICATION NVQ4+ 191 161 120 157 71 35.6 HIGHEST QUALIFICATION NO QUALIFICATIONS 200 306 172 226 134 70.7 JSA CLAIMANT RATE 150 55 103 103 95 47.5 NET COMMUTER FLOWS 296 3 202 167 293 149.6 AVERAGE RANK 313 209 141 221 172 86.6 KNOWLEDGE AND INNOVATION EMPLOYMENT IN HIGH TECHNOLOGY SECTORS 31 72 13 39 59 30.2 EMPLOYMENT IN KNOWLEDGE INTENSIVE SERVICES 142 314 126 194 188 104.2 HIGHER ORDER OCCUPATIONS 184 5 44 78 179 94.1 AVERAGE RANK 65 95 7 56 88 44.7 LAND, PREMISES, INFRASTRUCTURE AND ENVIRONMENT RV PER HEREDITAMENT 259 321 271 284 62 32.9 SUPERFAST BROADBAND AVAILABILITY 134 132 132 133 2 1.2 MEDIAN HOUSE PRICE 291 153 138 194 153 84.3 RATIO OF MEDIAN HOUSE PRICE TO MEDIAN ANNUAL EARNINGS 18 226 117 120 208 104.0 PER CAPITA EMISSIONS 68 320 165 184 252 127.1 AVERAGE RANK 128 192 137 153 64 34.5 Note: Each of the 325 local authorities in England is ranked in terms of its position in relation to the rate of change in a variable.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

4.4 Strengths, weaknesses, opportunities and threats

4.4.1 Overview A high level review of the strengths, weaknesses, opportunities and threats facing each of the local authority areas has been undertaken. This builds principally upon the results of the EGCI, alongside the broader review of the local context set out as part of the Review included at Appendix A.

4.4.2 Hinckley and Bosworth The SWOT for Hinckley and Bosworth is set out in Table 4.1 overleaf.

Hinckley and Bosworth benefits from its strategic location including access to the motorway network via the M69. As a result of its positioning, the Borough has emerged as a prime location for the distribution and logistics sector, with DPD having recently completed the fit-out of one of the largest parcel depots in Europe at Hinckley Commercial Park. The growth in this sector builds upon a range of other existing assets – particularly within the manufacturing sector – including the headquarters of both Caterpillar (UK) and Triumph Motorcycles. Alongside this, the Borough is home to MIRA, a focus for research and development in the automotive sector and the MIRA Technology Park Enterprise Zone. HBBC has played an active role in fostering investment focused around these assets and Hinckley town centre.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 4.1: Hinckley and Bosworth SWOT analysis Cross sectional Longitudinal Strengths Weaknesses Opportunities Threats HBBC has taken a proactive approach to GVA per resident estimated to be around The designation of MIRA Technology Park as Nationally, the manufacturing sector is promoting economic development and 80% of the England average an Enterprise Zone and the extension of the forecast to see a decline in employment, but regeneration, supporting key schemes Overall, the Borough performs relatively Zone agreed in 2015. The long-term growth in GVA. within Hinckley town centre and MIRA poorly in terms of a range of measures of delivery of this scheme represents a major Resident earnings have declined relative to The town of Hinckley, the main economic economic output opportunity the national average centre within the Borough, benefits from Median resident earnings estimated to be The roll-out of next generation superfast Levels of productivity growth within the good transport linkages via the M69 and A5 significantly lower (8%) than the England broadband access across more rural areas of Borough, based on an assessment of GVA Attractive living environment, with average the Borough has the potential to support per employee, have fallen behind the extensive rural areas including parts of the growth in key sectors, notably within national average Overall, the local area has relatively lower knowledge intensive services National Forest levels of business start-ups Levels of employment growth over the Key employers – including Caterpillar (UK) The delivery of the Crescent scheme will period to 2025 are forecast to be below the The skills based of the local resident enable Hinckley to compete more and Triumph – are headquartered within population is relatively poor, with a high UK average the area effectively against adjacent centres as a proportion having no qualifications retail and leisure destination The resident employment rate has fallen Important visitor attractions, notably Significant net commuting outflows, with a over an extended period Twycross Zoo, Bosworth battlefield and The Borough has experienced a significant very significant proportion of the resident increase in overall levels of employment The population of the Borough is aging and visitor centre, Bosworth Water Trust, workforce commuting to work in adjacent the working age population is forecast to Market Bosworth Marina, Mallory Park, and over the period 2010-2014, suggesting the areas presence of resilient businesses and sectors decline further over the next 20 years, Birdland (at Desford) putting pressure on public services and the Low levels of employment in knowledge Levels of self-employment have increased A resident population that reports relatively intensive services, although this particularly labour market high levels of life satisfaction significantly. This may signal a move relates to public sector services (health and towards a more enterprising economy Increasing commuter outflows, potentially Low concentrations of deprivation, with education) resulting in greater leakage of retail and Linked to the expansion at MIRA and other only 1 LSOA neighbourhoods ranked within Broadband infrastructure coverage is other expenditure the 20% most deprived in England key assets, there is an opportunity to further currently variable, and a significant digital extend growth in high technology sector Overall rateable value has experienced An average life expectancy at birth that divide exists that could serve to constrain employment limited growth and could in future constrain exceeds the national average economic development in more rural areas investment by the Council which makes use Per capita emissions are decreasing of retained business rates A large manufacturing sector providing a contributing to making Hinckley and strong base for exports, with key exporters Bosworth a better place in which to live While changes in median house prices have including Caterpillar (UK) and Triumph. improved levels of affordability, they signal The Borough benefits from an attractive and A concentration of employment in high a housing market that is not attracting very varied housing offer, including relatively strong levels of demand – particularly within technology sectors, with key research assets affordable housing in the Hinckley area around the MIRA Technology Park EZ. Hinckley. Successful LEADER funding with NWBC for Relatively high levels of economic activity rural projects and employment within the resident population Potential funding for growth through ESIF and LGF The Borough benefits from a relatively affordable housing offer focused within Hinckley, which also provides a key focus for economic development and service provision

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Based on the EGCI analysis, the Borough has key strengths in terms of a range of indicators, particularly for quality of life and knowledge and innovation. Performance in relation to other aspects of the framework is more variable, as outlined below:  Target outcomes: quality of life – the resident population reports relatively high levels of satisfaction (including high levels of happiness and worthwhile activities as well as low levels of anxiety), with high life expectancy at birth and relatively limited concentrations of deprivation. However, against this, levels of productivity and resident earnings have declined relative to the average for England as a whole, indicating that there is a need to continue to promote investment within the local economy to ensure that the quality of life of local residents is sustained;  Economic output – overall, Hinckley and Bosworth has GVA per hectare in the middle third of local authorities. In part, this reflects the mixed nature of the district with significant rural areas. However, reflecting the strength of the manufacturing base, including the presence of key businesses, the performance of the Borough in terms of GVA and workplace employment has improved moderately over recent years. Further to this, following a period of decline, levels of employment for local residents (employment rate) has returned to growth – both in absolute terms and relative to other districts – suggesting that residents are again benefiting from local employment growth. Nevertheless, travel to work data indicates that the Borough has a very significant net out-commuter flow, indicating that wider growth is an important factor in enabling local residents to gain employment;  Enterprise – In terms of enterprise the strong manufacturing base means that the area has a strength in relation to export intensive sectors. There are also opportunities associated with the growth in self-employment, although this could be a reflection of the growth in ‘outsourced’ jobs rather than high levels of entrepreneurship since the area is only middle ranking in terms of the enterprise indicators. Promoting enterprise represents an opportunity to strengthen economic performance, with clear potential to build upon the knowledge and innovation infrastructure at MIRA. Opportunities to promote enterprise in other sectors of the economy, potentially with the support of ESIF funding, should also be explored;  People and labour market – The EGCI indicators suggest that there are weaknesses and threats in relation to the labour market. In particular, a relatively high proportion of the resident working age population has no qualifications, while the proportion with higher level qualifications (level 4 or above) is also relatively low. Alongside this, long-term structural demographic trends – particularly in terms of an aging population – represent a significant threat to future economic performance and has implications for the Council and its partners in terms of service delivery. Furthermore, promoting the upskilling of local residents, alongside attracting and retaining skilled workers, represents a priority in terms of ensuring that the local benefits of economic growth are maximised.  Knowledge and innovation – Due to the significant base and relative performance of the manufacturing sector, Hinckley and Bosworth has strengths and opportunities upon which to build in terms of high technology sectors. Through support for investment at MIRA, the Council has recognised the need to ensure that recent growth in these sectors is

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

consolidated. By contrast, the area has a weakness in terms of knowledge intensive services. This reflects the lack of major education and health infrastructure within the area, with general hospitals and university campuses focused in neighbouring conurbations including Leicester and Loughborough. However, analysis at a sectoral level indicates that Hinckley and Bosworth benefits from relatively significant levels of knowledge sector employment in relation to research and development (reflecting the activity of MIRA) and legal and accounting activities. This represents a potential platform for growth in knowledge based sectors. Future expansion of the housing offer also has the potential to attract new skilled residents, contributing to the development of the knowledge sector within the local area.  Place – Hinckley is the principal economic centre within the Borough, which has extensive areas of rural landscape, interspersed with small towns and villages. Rural areas command relatively strong house prices, reflecting the quality of the environment and proximity to key employment areas. The housing market within Hinckley is significantly more affordable and while the range of housing types available at present remains relatively narrow, proposals for urban extensions at Barwell and Earl Shilton have the potential to significantly extend choice within the local housing market. While key visitor attractions (including Twycross Zoo and Bosworth Battlefield) are also located within these areas, broadband coverage remains variable.

4.4.3 North Warwickshire Table 4.2 summarises the SWOT analysis for North Warwickshire. Again the analysis highlights a mixture of strengths, weaknesses, opportunities and threats.

North Warwickshire, particularly the M42 corridor to the west of the Borough, has become established as a key location in the logistics sector. This reflects the position of the Borough within the logistics ‘golden triangle’ and the wider catchment of the Greater Birmingham conurbation. The Borough has emerged as a key location through the development of regional logistics sites Hams Hall and Birch Coppice, both of which benefit from multimodal freight terminals providing direct rail access to south coast ports and global markets. North Warwickshire is also an established location for advanced manufacturing with key businesses including BMW. In addition, the Borough has benefited from a wider concentration of assets along the M42 corridor – particularly Birmingham Airport and major concentrations of manufacturing and business activity around the NEC, Birmingham Business Park and in recent years Jaguar Land Rover. While these factors have played a central role in shaping the areas of the Borough within the M42 corridor, the remainder of the Borough has a more rural character albeit with significant pockets of economic activity around key towns including Atherstone. This area forms part of the commuter belt for key economic centres, notably Birmingham alongside other adjacent areas of Tamworth, Solihull, Coventry and Nuneaton and Bedworth.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 4.2: North Warwickshire SWOT analysis Cross sectional Longitudinal Strengths Weaknesses Opportunities Threats The Borough is strategically located within While residents report high levels of life The delivery and expansion of strategic Investment in neighbouring areas, the catchment of the Greater Birmingham satisfaction, the Borough performs assets located immediately adjacent to the particularly along the M42 corridor, has the conurbation relatively poorly in relation to other Borough – including MIRA, UK Central and potential to divert investment away from Located within the ‘Golden Triangle’, the indicators of quality of life – notably life HS2 as well as proposals for Birmingham North Warwickshire. Borough has two of the West Midlands’ expectancy and resident earnings Airport, has the potential to create Key employment sites are approaching Regional Logistics Sites The local economy is dominated by a opportunities for local residents and capacity and failure to provide a pipeline of The Borough has a resident population that relatively small number of very large businesses high quality sites could result in future reports relatively high levels of life employers, many of which are head- The Borough has provided a platform from investment opportunities being missed satisfaction. In part, the positive quality of quartered outside of the area which businesses have achieved significant There is a need to link residents to high life performance reflects the character and Levels of self-employment and business productivity improvements over a number quality employment opportunities to quality of the environment. churn are relatively low of years reverse the relative local decline in resident The Borough has a very significant The resident population of the Borough has North Warwickshire has experienced recent earnings employment base relative to its resident a relatively low skills base with a low employment growth, a trend which is Ongoing weaknesses in the local labour population and, as a result, has a high GVA proportion having NVQ4 level qualifications. forecast to continue at above the UK market – particularly in terms of per capita Despite this, a relatively high proportion are average over the period to 2025 qualifications – could limit the local impact A significant proportion of the employment (as noted) employed in higher order Significant growth has been experienced in of future economic growth within the area is in export intensive sectors, occupations key sectors – particularly advanced Long-term demographic trends – with strong linkages to key ports via the The area is not a focus for employment in manufacturing sectors – building upon a particularly in relation to an aging strategic road networks and multi-modal knowledge intensive services – in part this strong industrial base population – will impact on local services rail freight terminals reflects the lack of major health and The Borough offers an excellent location for and result in a shrinking labour market There is a concentration of employment in education infrastructure within the area export intensive businesses, reflecting the The area has a relatively weak base – in high technology sectors, particularly in Overall, levels of productivity (based on the strength of its road and rail infrastructure relation to infrastructure and drivers of advanced manufacturing, with key measure of GVA per employee) is relatively and linkages to key export nodes demand – from which to promote key businesses including BMW located in the low. This is despite a relatively strong Economic growth has resulted in very high growth activities in knowledge intensive area. NWBC has also been supportive of manufacturing base levels of net in-commuting. Through services MIRA. In addition, the area benefits from enhancing linkages to employment Weak growth in total rateable value will strengths in key knowledge sub-sectors such opportunities, there is the potential to affect the Council’s funding through the as computer programming. maximise the impact of investment for the business rates retention system. A relatively high proportion of the resident local resident population Increased emissions linked to levels of population is employed in higher order There are opportunities to promote an economic activity and infrastructure density occupations – either in managerial or enterprising and knowledge driven has the potential to impact on the quality of professional roles – supporting high value economy, building on a resident workforce the environment added activities within the area that is increasingly employed in higher order The area has a high rateable value per managerial and professional occupations hereditament due, in part, to the large unit North Warwickshire has a relatively size associated with the logistics sector. This affordable housing base, potentially making signals the presence of large and important it attractive to younger families employers within the area, which make an Potential funding for growth through ESIF important contribution in terms of and LGF. employment and business rates income

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Based on the EGCI analysis, North Warwickshire is broadly comparable with Hinckley and Bosworth in that it has strengths in terms of quality of life and knowledge and innovation. Performance across other indicators is more variable, and is outlined below:  Target outcomes: quality of life – the Borough performs well in terms of quality of life, reflecting in part the character and quality of the environment and the level of economic opportunity. In particular, residents report positive views in relation to life satisfaction and other measures of personal well-being including happiness, undertaking worthwhile activities and anxiety. Alongside this, reflecting the density of economic activity – particularly along the M42 corridor – the Borough performs strongly in terms of GVA per capita. However, the EGCI indicates that performance in relation to resident earnings is relatively less strong. This suggests that there is need to put in place measures to ensure that the benefits of economic growth for local residents are fully realised. Alongside resident earnings, the Borough performs relatively poorly in relation to life expectancy at birth.  Economic output – North Warwickshire has a GVA per hectare which is similar to that of Hinckley and Bosworth. This reflects the density of economic activity along the M42 and A5 corridors, especially around the key town of Atherstone counter balanced by the rural character of much of the remainder of the district. However, levels of productivity – based on the measure of GVA per employee - are relatively low. In part, this may reflect the increase in employment experienced across the area in 2014 resulting from a number of significant inward investments and expansions. In part, this reflects the dominance of very large scale employers within the area. While productivity improvements are important in relation to supporting a sustainable competitive and profitable economic base, the significant growth in levels of employment represents an important boost to the economy following a number of years of decline. The positive performance in relation to the ratio of jobs in the area to residents does though provide an opportunity to promote increased local employment for residents, while addressing the issue of major commuting inflows.  Enterprise – the relatively high proportion and positive recent performance of export intensive sectors (associated with the strong manufacturing base), together with the relatively high proportion of the resident population that are employed in higher level managerial and professional occupations are both a strength and an opportunity for North Warwickshire in terms of the enterprise pillar. Low levels of enterprise churn6 and self- employment are a potential weakness and poor recent performance in relation to business births and self-employment is a threat. These indicators are indicative of an area that has a base of larger enterprises and a relatively low level of local entrepreneurship. This may in part reflect the nature of the economic assets within the area. However, through targeted intervention there may be opportunities for the Council to support greater levels of enterprise.  People and labour market – the strength of the demand side of the local economy is evident from its ability to attract inbound labour flows. However, the resident labour force suffers from a number of weaknesses in relation including a high proportion with no qualifications and a low proportion with NVQ level 4+ qualifications. Despite this a high proportion of local

6 A low level of enterprise churn rate is indicative of limited competition and thus ‘creative destruction’.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

residents are employed in higher order occupations, such as managers. In addition, North Warwickshire has performed poorly in terms of the change in the proportion of working age population with no qualification, which is a threat. Long-term demographic trends, particularly in relation to the forecast decline in the resident working age population is also a threat.  Knowledge and innovation – in terms of the knowledge and innovation pillar, North Warwickshire has strengths and opportunities in relation to both the high technology sectors and higher order occupations. Reflecting this and the sectoral nature of the local economy and its functional role - with a strong base of manufacturing and logistics businesses – local performance in relation to knowledge intensive services has been weak. It is noted that this can in part be attributed to relatively low levels of employment in education and heath, reflecting a lack of major infrastructure (such as general hospitals and university campuses) within the area. However, the area does benefit from strengths in key knowledge subsectors including the activities of head offices, computer programming and telecommunications.  Place – the place indicators suggest strengths in relation to commercial property, but with relatively poor recent performance in terms of change in rateable value per hereditament. The relatively poor change in the level of emissions – which in part reflects the nature of the district which has significant national road infrastructure – is also a potential threat to future quality of life within North Warwickshire. The Borough benefits from a relatively balanced housing market in terms of housing types. Moreover, the area provides a relatively affordable housing offer, particularly compared to areas of South Warwickshire where housing is more expensive. However, due to the low earnings, there is an affordable housing need in the Borough. The Green Belt designation restricts the potential for significant housing growth and levels of housing completions have remained low over an extended period. 4.4.4 Nuneaton and Bedworth The SWOT analysis for Nuneaton and Bedworth is set out in Table 4.3. Nuneaton and Bedworth is the smallest of the three Cross-Border Partnership authorities by area, but the largest in term of both residential population and employment. The area comprises the built up area of Nuneaton, alongside the smaller towns of Bedworth and Bulkington. The limited areas of countryside between these settlements have been designated as Green Belt as a check to urban sprawl. Nuneaton is a former market town and benefits from a relatively strong retail offer, enhanced in 2005 by the opening of the Ropewalks Shopping Centre. Alongside this, the Borough has an established leisure offer, focused around the cinema at Bermuda Park. This location is also a key focus for the distribution sector, providing high quality access to the strategic highway network at Junction 3 of the M6 via the A444. The Local Growth Fund extension approved support for infrastructure works to further enhance capacity at this location, enabling expansion of the existing offer.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report

December 2015

Table 4.3: Nuneaton and Bedworth SWOT analysis Cross sectional Longitudinal Strengths Weaknesses Opportunities Threats The Borough is strategically located at Quality of life – as measured through Economic performance has improved Located within the retail catchment of larger the intersection of the A5 corridor reported levels of life satisfaction, GVA per significantly over a number years in terms centres including Coventry, Leicester and and the M69, providing access to the capita and life expectancy at birth – is of total GVA and levels of employment Fosse Way wider motorway network relatively poor The creation of new jobs has the potential The Borough has entrenched pockets of The town of Nuneaton is located in Levels of GVA per capita are low. This to benefit unemployed residents, and severe deprivation, with evidence that close proximity to the Enterprise indicates that the Borough has a relatively overall levels of unemployment have relative performance in terms of key Zone at MIRA, and has the potential small economy relative the size of the declined over a number of years deprivation indicators worsened by 2007 to benefit from employment growth resident workforce. From a low base, there is evidence that and 2010 at the site and in the supply chain The Borough has a relatively small the knowledge economy has Key economic sectors – particularly export Nuneaton has a mainline station, employment base relative to the size of its strengthened within the town, with intensive sectors – have experienced a offering direct rail access to London resident population and thus experiences employment growth in knowledge decline in employment with a journey time of approximately very high levels of net out-commuting intensive services and high technology Residents may be unable to access new 1 hour The employment base is skewed towards sectors employment opportunities within Nuneaton The Borough has strengths in key larger businesses and as such is vulnerable The Borough has a relatively affordable and the wider area due to lack of skills manufacturing sectors providing a to shocks associated with potential housing base, offering the potential to Weak growth in total rateable value has the base for future growth in high closures or relocations attract young economically active potential to impact on the ability of the technology related sectors The Borough has a relatively weak residents and develop and strong local Council to generate revenue and intervene Levels of emissions within the area entrepreneurial culture, with relatively labour market to promote economic growth through the are relatively low, contributing to the low rates of business start-ups and few The Borough has the largest working age business rates retention system quality of life and place for local high growth SMEs population within the Cross-Border residents Performance in relation to knowledge and Partnership area providing a large The hosing offer within the Borough innovation is poor, with low employment economically active workforce is relatively affordable, while in knowledge intensive services and Potential funding for growth through ESIF residents benefit from good linkages limited FE/HE knowledge assets and LGF to employment opportunities within The Borough has a relatively weak labour adjacent conurbations (notably market, particularly in terms of skills levels Coventry) with a high proportion of residents with no qualifications Levels of unemployment within the resident population are relatively high The Borough has a narrow housing offer focused towards cheaper properties, with a degree of imbalance in provision

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The SWOT for Nuneaton and Bedworth contrasts in key respects with those for Hinckley and Bosworth and North Warwickshire. In this case, the local area performs relatively poorly in terms of cross sectional indicators and thus has significant weaknesses. This reflects long-term structural changes in the economy of the local area, following the decline of traditional sectors in relation to textiles and other manufacturing. However, there is evidence that the economic performance has improved significantly over recent years, narrowing the gap with other Cross- Border Partnership areas and providing a platform for continued growth.  Target outcome: quality of life – the area performs relatively weakly in terms of reported levels of life satisfaction and other measures of personal well-being. Alongside this, GVA per capita and life expectancy are lower than the national average and the lowest within the Cross-Border Partnership area. This reflects the presence of entrenched deprivation within parts of the Borough, with particularly acute deprivation in terms of a number of domains (notably employment; health and disability; education, skills and training; and crime). While there are clear weaknesses, recent trends indicate an overall improvement in levels of GVA per capita, underpinned by GVA growth at the local level. This indicates an overall improvement in levels of economic activity within the area and provides a platform, through linking opportunity to need, from which to enhance local quality of life.  Economic output – GVA per hectare is the highest within the Cross-Border Partnership area. However, there is evidence that the local economy has weaknesses in terms of productivity (as measured by GVA per employee), as well as a relatively small employment base compared to the size of the resident population. Reflecting this disparity, the Borough experiences high levels of net out-commuting, particularly to the adjacent centre of Coventry and to a lesser (though still significant) extent Warwick, Birmingham, Rugby and other Cross-Border Partnership authorities. However, the area has performed relatively well recently in terms of GVA growth, employment levels and its employment rate, indicating positive changes and opportunities upon which to build.  Enterprise – low levels of enterprise and entrepreneurial activity represent a particular weakness within Nuneaton and Bedworth. While the Council has worked closely with partners in seeking to support enterprise, for example through the delivery of the Bermuda Innovation Centre, performance in terms of the number of SMEs, business births and self- employment indicate that levels of enterprise remain weak. While, positive performance in relation to self-employment could be an opportunity, it may reflect a relatively high level of outsourcing of jobs rather than an increasing entrepreneurial spirit. Alongside this, the relatively poor performance in terms of export intensive sectors represents a potential threat in terms of promoting growth.  People and labour market – within the Borough there is a clear need to address weaknesses in the local labour market. In particular this relates to skills and qualifications where, despite some improvements over recent years, the Borough has a large pool of the resident population having no recognised qualifications and, a relatively low proportion of the resident population have NVQ level 4 qualifications or above. Further to this, despite significant improvements over the long-term, the unemployment rate within the Borough remains high relative to both the national average and the other Cross-Border Partnership areas, representing a clear weakness. However, reflecting its urban character and other

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

assets (including a relatively affordable housing market) population projections forecast that the number of working age residents is likely to remain relatively stable, providing an active labour market to support economic activity over future years.  Knowledge and innovation – like both Hinckley and Bosworth and North Warwickshire, the Borough has retained a relatively strong manufacturing sector and as a result has potential strengths in high technology related activities. However, the area continues to perform weakly in relation to levels of employment within knowledge intensive services, despite data indicating a very significant increase in employment in the health sector over recent years. While the existing economic base, linked to traditional manufacturing strengths and local assets (including MIRA) represents a potential growth opportunity, the lack of a clear platform for knowledge intensive services represents a significant threat, particularly given the strengths of adjacent areas (such as Warwick and Stratford-upon-Avon) in these growth sectors. It is also noted that the proportion of employment in higher order occupations within the locality is low, signalling a preponderance of lower status jobs amongst local residents. Performance in this area has though improved significantly over recent years. This may be linked to the affordable housing offer, attracting younger professionals to live within the area.  Place – overall, the Borough has a more urban character than other districts within the Cross-Border Partnership. Despite this, levels of emissions per capita are relatively low, in part reflecting the relatively low levels of transport infrastructure. As already stated, the Borough has a relatively affordable housing offer. While this presents an opportunity, it is also a strong signal that the offer within the area is relatively undesirable. In part, this reflects the housing offer within the area which is relatively narrow and focused towards smaller units. There is a local recognition for the need to extend this offer through delivering a wider range of unit types.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

4.5 Cross-Border Partnership area – overarching assessment Based on the assessments for each of the districts, a high level review of themes has been carried out at the level of the Cross-Border Partnership. This review is summarised in Table 4.4.

Table 4.4: Cross-Border Partnership area - overarching review of strengths, weaknesses, opportunities and threats Strengths Weaknesses Location – the area is located within the ‘golden Economic output – overall, each of the economies is triangle’ for logistics relatively small in isolation, particularly relative to Assets – the Cross-Border Partnership area has key neighbouring centres including Coventry and assets – notably MIRA Enterprise Zone. There are Leicester major businesses headquartered in the area and Enterprise – the economy is highly dependent upon regionally significant employment locations large scale employers and has relatively low levels of Quality of life – with a mixed character, there is business start-ups and SMEs evidence that quality of life across much of the area Labour market – overall, there is a clear weakness in is considered to be relatively good the labour market in relation to skills and Economic output – overall the Cross-Border qualifications Partnership area has experienced GVA growth and Knowledge and innovation – levels of employment in improved GVA per capita knowledge intensive service sectors is low, linked to Knowledge and innovation – building upon a strong low levels of key health and education infrastructure manufacturing base, the area has strengths in terms of high technology employment sectors Opportunities Threats Economic output – recent improvements in economic Quality of life – relatively weak long-term wage activity (GVA) indicate that there is a platform for trends have the potential to impact on the quality of promoting sustainable economic growth life of local residents Knowledge and innovation – there are key assets Economic output – productivity improvements have within the area in term of high technology sectors, been driven in part through reduced employment alongside key knowledge intensive activities (such as Enterprise – employment is highly concentrated research and development at MIRA) within very large enterprises, making the economy Place – while signalling demand side weaknesses, the susceptible to ‘shocks’ associated with closures local housing market is relatively affordable and Labour market – overall, the area has an aging provides an opportunity to attract a young and skilled demographic (concentrated within rural areas) workforce which has implications in relation to the future Place – The roll out of Next generation Access labour market and service provision broadband represents an opportunity to promote Place – there is evidence that growth in overall greater business activity within more rural areas rateable value has been low. This has the potential Location – wider activity (for example within the M42 to constrain the financial ability of the Cross-Border corridor linked to HS2 and UK Central) has the Partnership partners to intervene to promote potential to stimulate significant opportunities for growth using retained business rates local residents and businesses Location – there is potential for the growth of Key businesses – there are opportunities to forge and neighbouring centres – particularly Greater strengthen relationships with key businesses, such as Birmingham – to draw investment away from the BMW, Caterpillar UK and Triumph Motorcycles, to Cross-Border Partnership area ensure that local benefits are maximised

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

4.6 Local policy implications The local policy implications of the economic review are set out below. Later sections of the report consider a wider range of actions informed by, amongst other things the review of projects. Based on the SWOT review, local policy implications for the Cross-Border Partnership are outlined below.  Infrastructure – the partners should seek to build upon structures already established in relation to upgrading the A5 to ensure that a proactive approach to long-term infrastructure planning is carried forward. This approach should seek to ensure that the advantages associated with the strategic location of the area – within the logistics golden triangle – are maximised. Key infrastructure to be targeted should include the M42 corridor and M69 corridor, alongside rail infrastructure building upon existing infrastructure (including Nuneaton main line station), freight capacity and future proposals in relation to HS2. The partners should intervene to ensure that a good supply of sites are available to take advantage of this infrastructure;  Assets – the Cross-Border Partnership area benefits from a number of strategic assets such as MIRA, the strategic employment sites and visitor attractions including Twycross Zoo. In particular, MIRA is centrally located within the area and has been designated as an Enterprise Zone. Following significant infrastructure investment, MIRA will be advancing the delivery of the vision for the Technology Park which will further enhance the role of the area as a focus for research and development in the automotive and related sectors. There is an opportunity for partners to work collaboratively to ensure that future spill over benefits are maximised for the area. This could potentially be under a joint strategy, providing a framework for a range of targeted skills, property and other interventions;  Economic sectors – the EGCI identifies strengths across the Cross-Border Partnership area in relation to high technology employment sectors. The Cross-Border Partnership should seek to work alongside key businesses within these sectors to identify opportunities and threats, alongside potential support mechanisms. A similar approach could also be adopted in relation knowledge-based sectors where, although the existing base is more limited, these activities have the potential to deliver significant benefits in relation to local economic performance.  Employment – the Cross-Border Partnership partners should work jointly to ensure that the benefits of economic growth for local residents are maximised. In particular, this is likely to include enhancing physical linkages (for example through a strategic approach to bus and other public transport provision for employment sites) alongside programmes for local residents providing relevant and targeted skills and training. As part of this, the Cross- Border Partnership partners could adopt a strategic approach to working with employers to open up opportunities at a range of skills levels to local residents.  Research and Development and Innovation – the Cross-Border Partnership partners should work closely with key knowledge assets, notably MIRA alongside other major employers including Caterpillar and BMW, to target interventions – for example in relation to strategic infrastructure, employee skills and recruitment – to ensure that growth opportunities are

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

maximised. In order to enhance higher education provision within the area, the Cross- Border Partnership could also explore opportunities to build on investment by the University of Leicester and Loughborough University at MIRA, together with opportunities at other universities in the area such as Coventry, Warwick and potentially Birmingham;  Business performance – recent trends point to an overall improvement in levels of business productivity. The Cross-Border Partnership partners could seek to adopt a joint approach to promoting enhanced business performance and productivity as part of a shared service, targeted towards opportunity sectors;  Enterprise and supply chain development – there is an opportunity to collectively foster greater levels of enterprise and innovation through a joined-up approach. Working collectively with partners, particularly the Chambers of Commerce and LEPs, the Cross- Border Partnership should seek to identify key constraints to enterprise across the area to ensure that interventions are appropriately targeted;  Labour market – the Cross-Border Partnership should work jointly with key providers of skills and education – particularly North Warwickshire and Hinckley College – to ensure that training programmes are appropriately targeted to enable local residents to access employment opportunities.  Marketing – forge a strong identity for the area building upon common themes and key assets, potentially with a focus on MIRA and wider activity within the automotive and related sectors. This could also build upon the strategic location of the area within the logistics golden triangle, reflecting existing assets (including major employment locations) and proposals for infrastructure investment, particularly along the A5 corridor;  Strategic planning – the Cross-Border Partnership partners should work cooperatively to explore measures to promote a high quality and balanced housing offer. At a strategic level this should seek to extend the existing offer – in terms of the number, range and quality - to attract new residents and support a more balanced demographic profile, particularly in terms of a more highly skilled working age population; and  Monitoring and evaluation – the Cross-Border Partnership should work collaboratively to monitor the impact of its activities to provide a detailed evidence base for future intervention. These issues are considered further in the next section.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

5 Implications for the future

5.1 Introduction The economic review and impact assessment has established that there are common issues shared across the Cross-Border Partnership area. In a number of cases, these are most effectively and efficiently addressed in a collaborative way. There are significant opportunities for the partners to work together to:  realise shared strengths and opportunities and address common threats and weaknesses; and  learn the lessons and build upon successful recent and future, proposed projects – in particular those that have sub-regional implications. The potential benefits will be maximised through a co-ordinated approach. This section sets out in particular a strategic framework for economic growth, key issues in delivering the framework, and an outline of risks and risk management, together with the need for monitoring and evaluation.

5.2 Strategic Framework for economic growth

5.2.1 Overall Strategic Framework At present, there is a lack of an overall strategic framework to guide the development of the Cross-Border Partnership area. Whilst further work is needed to develop a bespoke local framework, it is envisaged – based on the economic review and impact assessment – that it should include the components outlined in Figure 5.1 overleaf. The proposed framework establishes an overarching vision and four key themes that are considered fundamental components of a framework for economic growth:  Competitive and innovative businesses – supporting start-up and growth of competitive and innovative businesses;  Highly skilled people - that have the ability and skills to participate in economic activity;  Attractive place, infrastructure, and image – that ensures the context and environment for economic growth to successfully take place is created; and  Included communities - recognising the importance of social inclusion and the provision of housing and social facilities.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 5.1: Cross-Border Partnership Indicative Strategic Framework

5.3 Action plans

5.3.1 Overview Action Plans would provide an appropriate means to translate the overall vision and themes into more specific ways in which interventions can be established. The key components of the proposed Action Plans are considered below. The actions are deliberately positioned at a strategic level, providing a framework to enable partners to determine the detailed way forward.

5.3.2 Competitive and innovative business Starting, financing and growing business has been a fundamental aspect of the previous Government’s ‘Plan for Growth’ and remains a priority for the UK and areas including the Cross- Border Partnership. There is recognition of the importance of support to businesses (in particular small firms), encouraging growth in key sectors, supply chain development, R&D&I and inward investment.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

(i) Business support and development There is widespread recognition of the importance of developing competitive indigenous businesses in order to encourage business growth and increase private sector productivity. By working together and maximising the availability of resources (including LGF and ESIF), the local partners could develop a cost-effective approach to business support and development, building upon and filling gaps in local provision, including advice, mentoring, management activities and access to finance.

(ii) Development of key sectors The importance of capitalising on the competitive advantage that the area has in terms of high technology employment sectors is widely recognised. Working with the Leicester and Leicestershire and Coventry and Warwickshire LEPs and other partners, there are potential opportunities to strengthen key sectors (such as automotive, advanced manufacturing, tourism and logistics) based on the assets and the locational advantages of the area.

(iii) Strengthening supply chains The Government’s Industrial Strategy acknowledges the importance of developing and sustaining a competitive, efficient and innovative supply base. Working with key partners, including the Hinckley Area and Coventry and Warwickshire Chambers of Commerce and the LEPs, there are opportunities to enhance the ability to strengthen existing supply chains (both upstream and downstream) and to attract additional supply chain companies to the area.

(iv) Stimulating research and development and innovation (R&D&I) Best practice illustrates the vital role that R&D&I plays in economic development and the importance of long-term development that this often entails. A continued collaborative approach between businesses, higher education, and public research organisations has the potential to build on existing world-class facilities such as those at MIRA and develop and enhance further prospects for the area.

(v) Attracting inward investment The Economic Rationale for Government Support (BIS, 2011) demonstrates that inward investment in the UK has contributed substantially to increased UK productivity growth, as well as providing other important benefits. Opportunities exist to work more closely with UKTI and other partners (such as MIRA) to identify the Cross-Border Partnership area as one with greater potential to attract high quality new investment to the area.

5.3.3 Highly skilled people Creating a more educated and flexible workforce was established as a priority in the ‘Plan for Growth’ and remains a key factor for the Government as well as for local areas. Ensuring that the necessary skills are available and means to link employment opportunities and the needs of individual workers are key aspects of the proposed Action Plan framework.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

(i) Skills and training Investment in skills and training is seen as a vital component of economic success. The skills base provides a basis for successful innovation and productivity growth, as well as an important requirement in attracting new investment. The opportunities to strengthen linkages with skills training providers including colleges such as North Warwickshire & Hinckley College, private training organisations and employers offers the basis for improving the skills of the existing workforce and those entering employment. In addition, this has the potential to extend the availability of apprenticeships, traineeships and work-based learning, which are important aspects of government economic policy.

(ii) Creating employment opportunities Getting more people into work increases the pace of growth and raises living standards. Actions to promote employment and strengthen employability form part of best practice that can be extended further by working closely together and with partners including the LEPs in relation to jobs brokerage and other initiatives. In particular, additional means to provide opportunities for young people and other priority groups, such as older workers and those with disabilities, are important aspects of promoting social inclusion for individuals and families.

5.3.4 Attractive place, infrastructure, and image Establishing the environment and place making within which business can flourish is a key component of the proposed strategy and of the Action Plans. This comprises in particular the provision of essential key infrastructure, building on existing assets, ensuring key strategic business locations are created to accommodate new growth, together with marketing and promotion to establish a positive image for the area.

(i) Providing key infrastructure Ensuring that there is strong infrastructure in place to support economic growth is considered to be a vital component of a growth strategy. In particular this includes a modern and efficient transport system to strengthen connectivity and increased investment in high-speed telecommunications. The opportunities exist to work with key partners including the LEPs and providers of transport infrastructure (in particular road and rail) to develop and prioritise important improvements and new additions where these would assist economic growth. This would build on the successful strategic approach adopted in relation to the A5. Opportunities to enhance the development and take-up of superfast broadband (and basic broadband where this does not currently exist) associated with the Local Broadband Plan should also be considered, in particular in the rural areas.

(ii) Building on key assets MIRA is an example that represents a major asset to the area, a centre of excellence for vehicle engineering design, testing and development. With a vision for the development as a Technology Park and with Enterprise Zone status, there is an important opportunity to work with MIRA Ltd and other partners, including the LEPs, to develop the infrastructure, premises, and skills

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

necessary to realise the vision. Other examples also offer the opportunity for further expansion and growth.

(iii) Creating key business locations Establishing key modern and attractive business locations with well-designed premises and appropriate services are an important aspect of supporting economic growth. Important opportunities exist to work with partners, including landowners and developers as well as the LEPs and others, to secure the development of such opportunities in a strategic manner, ensuring that resources and expertise can be shared in order for schemes to be brought forward quickly and effectively. This can build upon the successful delivery of a number of completed key projects.

(iv) Image development Marketing and promotion play vital roles in the economic growth and overall development of an area. In particular, local policy implications indicate that there is a need to establish a stronger image and identity for the area as a business location and to support the attraction of new investment based on its comparative advantages including growth sectors and its location. Key opportunities exist to act jointly with partners, including the LEPs and UKTI, to establish a brand image for the area which would be diluted or lost if this was not developed collectively.

5.3.5 Included communities Ensuring that local communities are able to participate in the benefits of economic growth was a fundamental of the Local Growth White Paper established by the previous Coalition Government and which provides the basis for continued Government policy through, for example, City and Growth Deals. The Action Plans are therefore expected to focus on community engagement and ensuring a balance between economic growth and housing and associated social facilities.

(i) Promoting community engagement It is recognised that sustainable development requires an integrated approach to complex community problems in order to create economic opportunities and enhance social and environmental conditions in communities. There are important opportunities for partners to work together even more closely in relation to community engagement in order to build wealth, create jobs, foster innovation and productivity, and improve social well-being. Such action can identify and galvanise action across the area.

(ii) Development of housing and social facilities The importance of achieving a balance of the provision of new homes alongside economic growth and new employment opportunities is well known. Establishing a 5-year housing land supply to meet forecast demand is a recognised priority which has implications especially for North Warwickshire and Nuneaton and Bedworth. Working together and with stakeholders such as House Builders Federation, the districts have an opportunity to ensure that sufficient supply is achieved so that the adverse effects of economic growth can be avoided within the wider housing

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

market area. Alongside this, the opportunities are available to ensure that provision of associated social facilities continues to be planned effectively to meet overall community needs.

5.4 Cross-cutting themes Cross-cutting themes are issues that are relevant across each of the key themes in order to ensure that there is commonality and consistency in terms of the broad principles involved. The Action Plans are expected to be particularly focused on partnership, environmental sustainability, equal opportunities and non-discrimination, and research and intelligence.

(i) Partnership The focus for partnership arrangements to be set out in Action Plans will be on strengthening of strategic arrangements at the sub-regional and local levels, together with maximising the efficient use of public resources and enhancing service resilience.

(ii) Sustainability The Action Plans will need to take account of sustainable development, in order to realise the vision of stimulating economic growth, maximising wellbeing, and protecting the environment, without affecting the ability of future generations to do the same. In particular, they will need to reflect issues identified in the national ESIF strategy relating to environmental protection, resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience, and risk prevention and management where these are relevant and appropriate.

(iii) Equal opportunities and non-discrimination Reflecting UK and European law, issues of equal opportunities and non-discrimination will need to be a component of the Actions Plans. This will include reference to relevant aspects of the Equalities Act 2010 and the need for all ESIF projects to promote equality in accordance with European and national requirements.

(iv) Research and intelligence Up-to-date research and intelligence that can provide an appropriate evidence base is important in laying the foundations for effective decision-making. The partners will need to consider arrangements under which the collection and dissemination of information can be improved where necessary, and Action Plans will need to ensure that they are based on the best possible evidence available.

5.5 Delivering the Framework The Local Growth White Paper (BIS, 2010) emphasised the critical role that local authorities have in supporting the economy of their areas and the various levers they have at their disposal which can support comparative advantages and the ability of businesses to compete. Local Authorities are uniquely placed, through politically accountable leadership, to bring stakeholders together through key roles including: leadership and co-ordination; ensuring a responsive supply of land

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 to support employment and housing needs; using land assets to lever private funding; directly and indirectly influence investment decisions; support local infrastructure; supporting local people and businesses; providing high quality local services; and leading efforts to improve local health and wellbeing. Other policy changes, in particular the Localism Act 2011, have given authorities more freedom to work together with others and increased confidence to take creative, innovative actions to meet the needs of local people and businesses within the context of localism, the objectives of reductions in public sector funding and the need for increased efficiency, economic growth, partnerships, and innovation. This policy approach has been reflected further in the importance attached to public sector productivity in service delivery and other areas highlighted in the Productivity Plan (Chancellor of the Exchequer, July 2015) and promoting innovation and greater collaboration in public services in the Spending Review paper (HM Treasury, July 2015). Joint working between authorities has the potential to improve the prospects for transformational change within the Cross-Border Partnership area by offering the following key benefits:  ensuring a shared vision and a Framework for Growth with the support of a more significant weight of public and private sector partners;  creating a coherent identity for the initiative and a broader context for marketing, which is particularly important for attracting new investment;  strengthening the case for public sector support at the sub-regional, national and European levels;  co-ordinating decision-making that can present a more coherent interface with other public and private sector partners;  accessing a broader skills base within the wider partnership to address difficulties and potential delays in the delivery strategy;  offering opportunities to lever additional private sector investment and improved performance management; and  lowering the overall level of risk, which can be spread across a wider portfolio. There are two particular aspects on which the strategic management of the proposed initiative can usefully be considered - planning and economic development. In terms of planning, a strong framework provides greater certainty to investors and can streamline decision-making. The Duty to Co-operate under the Localism Act 2011 requires local planning authorities and certain other public bodies to co-operate with each other in preparing Local Plans where there are matters that would have a significant impact on the areas of two or more authorities. Joint Local Plans are one means of achieving this, but less formal mechanisms can also be used, in particular the alignment of plan policies as well as sharing plan-making resources. In the Cross-Border Partnership area, the production of current Local Plans is understood to be well advanced, with North Warwickshire benefitting from a post-National Planning Policy Framework (NPPF) adopted Local Plan, and those for Hinckley and Bosworth and

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Nuneaton and Bedworth, while not currently adopted, being well advanced and with post-NPPF Strategic Housing Market Assessments (SHMAs). Hinckley and Bosworth is also thought to have in excess of a 5-year housing land supply, although both North Warwickshire and Nuneaton and Bedworth have a supply that does not currently meet this target. Nevertheless, it is considered that the area as a whole is expected, in the short-term, to have an appropriate and broadly-based planning framework in place to underpin development activity. In relation to economic development, the General Power of Competence under the Localism Act 2011 provides the basis on which local authorities are permitted ‘to do anything that individuals generally may do’ and replaces and broadens the wellbeing powers in the Local Government Act 2000 which provided the ability to promote or improve the economic, social, or environmental wellbeing of an area, including to facilitate the joint working between councils and their partners in the public and private sectors. Powers are, as noted above, also available under Part 6 of the Local Democracy, Economic Development and Construction Act 2009 (amended by an Order in 2015) to establish formal corporate bodies through Economic Prosperity Boards (EPBs) or Combined Authorities (CAs), subject to the approval of the Secretary of State, where it is considered appropriate to ‘collaborate effectively in the exercise of statutory functions relating to economic development and regeneration, for the purpose of promoting economic growth and administrative efficiency’ in an area consisting of the whole of two or more local authority areas. As a result, there is a wide range of opportunities to work on a collaborative basis, from informal joint approaches through to formal arrangements with their own legal rights and responsibilities. The Strategic Framework identifies a broadly-based approach to supporting economic growth and development focused on: support to business and innovation; ensuring that people have appropriate skills and training and access to employment opportunities; ensuring that the context for growth is provided in terms of place, infrastructure, and image; and ensuring successful community engagement and social facilities. The key issues would be to develop the vision for the Cross-Border Partnership area and actively engage with other public sector partners and the private sector, co-ordinating and building on existing programmes, while developing new and innovative ways of working in order to improve delivery and increase efficiency. These requirements may well be appropriate to the establishment of an informal, unincorporated, Economic Development Partnership (EDP) approach that could provide strategic direction and performance management, co-ordinating delivery of the proposed strategy through the public sector partners. The EDP would be expected to include a Partnership Board, comprising the three local authorities, the County Councils (Leicestershire and Warwickshire), the LEPs (Leicester and Leicestershire and Coventry and Warwickshire), and other key organisations. It would be complementary to the Leicester and Leicestershire Economic Growth Board and the Coventry, Warwickshire and South West Leicestershire Shadow Economic Prosperity Board. The Board may wish to establish an investment group of landowners, agents, developers and key local businesses to support the development of the strategic framework. The Board would be expected to have the services of staff drawn from the local authorities and perhaps with the addition of appropriate seconded staff where appropriate. It is not envisaged that a new dedicated team with the additional staff would be created to implement the Framework - rather that key staff from each of the partners would be identified to work on delivering the Framework.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

In addition to strategic development and delivery of the strategy, it is anticipated that consideration may need to be given to joint arrangements for the delivery of individual site opportunities. This may particularly be of relevance where such sites require support for initial infrastructure investment and/or support in terms of development viability. The form of arrangements would need to be appropriate to each particular site, and could range from a simple funding agreement with a developer through to a more formal Joint Venture agreement. The requirements would need to be determined by the Board on the basis of further detailed consideration in each case.

5.5.1 Risk In developing a strategic framework to guide collaboration, consideration has been given to the issue of risk. Key risks have been identified and grouped into broad types (strategic; operational; financial; and implementational) and set out in Table 5.1 below in the form of a risk register. The assessment of the severity associated with each risk is based upon a judgement of impact and probability. Against each risk, a rating (and score) has been given to the probability of the risk arising (based on judgement) – ranging from very high (a maximum score of 5) to very low (a score of 1). The impact of each risk has also been assessed on the basis of judgement, using the same rating (and scoring) range as has been used for probability (i.e. a range of 1-5). The overall risk score is calculated by multiplying the probability score by the impact score (giving a maximum score of 25, representing an extreme risk). The scores are then banded low, medium or high to provide an indication of the overall rating of each risk.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 5.1: Risk register and assessment Risk type Risk description Impact Probability Overall score Strategic Governance Failure to develop and implement effective 4 2 Medium - 8 governance arrangements. Programme integration Failure to manage the interface with LEPs, the 4 2 Medium – 8 Growth Board and the anticipated EPB. Conflicts of interest Conflicts of interest arising with strategic and 3 2 Low – 6 project level decisions. Reputation A risk to the reputation of the partners 3 2 Low - 6 associated with the non-delivery of the strategy. Operational Staff resources Insufficient staff resources to successfully 3 3 Medium – 9 deliver the strategic framework. Partner engagement Failure to engage effectively with partners, 4 1 Low – 4 resulting in reduced support for the strategy. Stakeholder engagement Insufficient engagement, resulting in lack of 3 2 Low – 8 stakeholder support for the strategy proposals. Enabling new processes The risk that new arrangements, processes 3 3 Medium – 9 and procedures are not effective in delivering the strategic priorities. Financial/Government support Project funding The funding secured is delayed or insufficient 5 2 Medium – 10 to implement the strategic priorities. Implementation Delivery capacity and Insufficient capacity and/or capability to 4 2 Medium – 8 capability successfully deliver the strategic priorities. Programme momentum The risk that there are delays to 3 3 Medium – 9 implementing future key projects/ programmes, resulting in a loss of momentum. Programme and project Programme and project management 4 2 Medium – 8 management arrangements not sufficiently established to deliver early priority projects.

The overall average risk score is 7.8, indicating that a low-medium level of risk is apparent at this stage. There are no individual levels of high risk, but key issues would be considered to apply in terms of:  project funding – securing of appropriate funding to address the strategic priorities;  staffing – ensuring that sufficient resources can be made available to undertake the strategy;  processes – ensuring appropriate operational arrangements to ensure the smooth delivery of the strategic priorities; and  momentum – enabling progress to be made to ensure sufficient forward progress is achieved.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

In terms of managing risk, an outline risk management strategy has been prepared, as shown in Table 5.2.

Table 5.2: Risk management Risk type Risk management Strategic Governance Discussions are ongoing with regard to agreeing the governance arrangements and a protocol for operational processes. Programme integration The partners will need to collaborate effectively and at an appropriate level to ensure that the programme is appropriately integrated, balancing the interests of each of the partners. Conflicts of interest The partners will be responsible for managing any conflicts of interest that may arise with regard to strategic and project level decisions. Investment decisions will be published on the local authority website and ‘conflict of interest procedures’ will be implemented. Reputation The partners will need to collaborate closely to ensure that the strategic framework is deliverable and that appropriate arrangements are in place to ensure its successful implementation. Operational Staff resources Key staff from each end of the partners will be put in place at an early stage, with clear roles and responsibilities established at the outset. External specialists will also be used as and when necessary to ensure that the appropriate skills set is available. Partner engagement The local authorities will seek to develop and maintain effective engagement with partners so as to ensure that the momentum behind the regeneration of the Cross-Border Partnership area is maintained. Stakeholder engagement The partners will need to work to ensure that there is continued ‘buy in’ from the private, public and civil society sectors. Enabling new processes The partners will learn from good practice from previous administrative arrangements by DCLG, the Regional Development Agencies (RDAs), and others. Financial/Government support Project funding/ The partners will work closely with Government and private sector organisations to Government ask maximise the availability of public and private sector matched funding resources. Implementation Delivery capacity and Successful delivery of the strategic framework will be achieved through effective partnership capability working with Government, local authorities, business, education, voluntary and community sectors across the Cross-Border Partnership area. Programme momentum It will be important that the strategic framework gains positive momentum at the earliest opportunity through strong and effective leadership. Programme and project Clear roles will be established and individuals recruited with appropriate skills. In addition, management monitoring and reporting systems will be put in place to ensure that projects are managed effectively and that any problems are identified quickly, so that corrective action can be taken.

5.5.2 Monitoring and evaluation The partners should work together to develop and implement a robust performance management system. This will include arrangements to monitor selected ‘strategic outcome’ indicators (potentially using the EGCI), along with the inputs and gross and net additional outputs and results of programmes and projects. The approach should build upon best practice and guidance. It would need to include appropriate arrangements to review and evaluate performance after, say, a three year period.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Appendix A: Economic Review – Technical Report

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

1 Introduction

1.1 Overview Hinckley and Bosworth Borough Council, North Warwickshire Borough Council and Nuneaton and Bedworth Borough Council have formed a Cross-Border Partnership (“the Partnership” or “Cross- Border Partnership”) for economic development. The Cross-Border Partnership has appointed AMION Consulting (AMION) to prepare an economic review of the Partnership area. There are three components to the review:  Review of economic performance – based primarily on an analysis of secondary source data;  Economic impact assessment of completed projects – based on individual project reviews and consultations; and  Implications for the future – setting out a framework for future action across the Cross- Border Partnership area. This Appendix sets out the findings of the review of economic performance.

1.2 Scope of study

1.2.1 Overview The Economic Review provides an overarching economic assessment of the three local authority areas and includes an assessment of a range of indicators. Typically, in economic assessments, these are reviewed thematically – for example, by assessing demographic trends – but with limited consideration of how these indicators are inter-related. Consequently, as part of this Study, AMION has developed an Economic Growth and Competitiveness Index (referred to as the EGCI or the Index), which seeks to group and link various indicators within a logical framework. The Framework is based on various research studies that have assessed the factors that drive economic growth and competitiveness.

1.2.2 Factors that drive economic growth and competitiveness Whilst recognising that macroeconomic conditions are critical (see Section 1.3 below) and define the operating environment for firms and consumers, there are a number of key factors that drive economic growth and competitiveness. These include:  Productivity – is a positive influence on sectoral performance including improved profitability and the intensity of inward investment;  Capital investment – gross fixed capital formation is one of the most important and robust growth drivers for Gross Value Added (GVA) growth and labour productivity, both in the short and long-term;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Competition, contestability and entrepreneurship – there is a positive impact associated with effective competition – a high turnover rate of firms, a high degree of openness to international trade and, in general, a low degree of firm concentration;  Economics of scope and scale – larger average firm size generally has a positive effect on labour and multi-factor productivity due to economies of scope and scale;  Skilled labour – there is a significant positive impact from the accumulation of productive resources, especially educated labour;  Social polarisation – economic growth is negatively correlated with the level of income polarisation;  Innovation – innovation accounts for 80% of productivity growth in advanced countries. There is a robust positive, but not necessarily linear, relationship between innovation intensity and growth, but there is no clear association with employment growth;  Infrastructure – high quality infrastructure boosts productivity and competitiveness, allowing businesses to grow and enabling them to reach suppliers, deepen labour and product markets, collaborate and innovate and attract inward investment;  Natural resources – fixed effects due to the endowment of natural resources and geographic location are also important. Such factors can be consolidated and represented by the following four key ‘pillars’ of economic growth and competitiveness:

(i) Enterprise;

(ii) People and labour market;

(iii) Knowledge and innovation; and

(iv) Place.

1.2.3 Overall framework The four pillars of economic growth and competitiveness serve to generate and sustain economic activity in terms of employment, labour productivity and Gross Value Added. Such economic activity contributes to the target outcome of sustaining and increasing quality of life and standard of living. This framework is shown in Figure 1.1 and serves to structure the assessment within the Economic Review.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 1.1: Overall framework

The EGCI ranks individual district authorities (out of 325 district areas across England) in relation to each of four pillars of economic growth and competitiveness (enterprise, people and labour market, place and knowledge and innovation), economic activity and target outcomes, both in terms of:  current performance (cross sectional) - This is based on the latest available data and ranks each local authority district in terms of its position to provide a ‘snapshot’ of ‘current’ performance; and  recent trends (longitudinal) - This ranks each district’s change in a variable. It provides an indication of how well it is performing compared with others in terms of rate of change. The analysis of recent trends covers either a ten or five year period, reflecting the availability of data. The index provides a link between the Economic Review and the review of current and future pipeline projects and the impact that they could have on the economic growth and competitiveness of the local authority and wider Cross-Border Partnership area.

1.3 National economic context Economic conditions in the UK have improved overall. However, uncertainty remains about global growth prospects and in particular the performance of the Eurozone. The Summer Budget 2015 indicated that the UK economic recovery is now well established and growth is broadly based across sectors. There is a renewed focus on rebalancing the economy based on investment across the regions, growth driven by the private sector, and further devolution to increase local decision making. The 2015 Spending Review sets out a commitment to further consolidate public sector expenditure by £20 billion over the next four years.7

7 HM Treasury, 2015 Spending Review

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The UK’s economic recovery is well established. The UK was the fastest growing G7 economy in 2014 growing by 3.0%, its best performance since 2006. The Organisation for Economic Co‑operation and Development (OECD) forecasts the UK to be the fastest growing G7 economy again in 2015. The OBR8 forecasts GDP growth of 2.4% in 2015 and 2.3% in 2016. Growth is revised up in 2017 and 2018 from 2.3% to 2.4% in both years and is unchanged in 2019 at 2.4%. The UK labour market performance continues to be strong. In the 3 months to April the employment level and rate were both around record levels at 31.1 million and 73.4% respectively. The recent growth in employment predominantly reflects increases in full-time employment and those employed in high and medium-skilled occupations. Over the past year, 85% of the increase in employment has been in full-time work and 92% has been in high or medium-skilled jobs. The OBR forecasts employment to be 31.2 million in 2015, rising each year to 32.1 million in 2020.

1.4 Report Structure The Economic Review continues in four sections, as follows:  Section 2 – provides an assessment of a key range of indicators within the four pillars of economic growth and competitiveness;  Section 3 – assesses the areas’ economic activity;  Section 4 – considers the target outcomes in terms of quality of life and standard of living;  Section 5 – sets out the conclusions of the Economic Review.

8 OBR Economic and fiscal outlook July 2015

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2 Pillars of economic growth and competitiveness

2.1 Introduction This section reviews the performance of the study areas relative to sub-national and national comparators. A range of key indicators have been measured on both a cross-sectional and longitudinal basis within each of the four pillars of economic growth and competitiveness.

2.2 Enterprise

2.2.1 EGC Index

(i) Current performance Overall, based on the average rank across each indicator, North Warwickshire is ranked 127 out of 325 local authority areas for enterprise (with 1 being the highest ranking) while Hinckley and Bosworth is ranked 128. Nuneaton and Bedworth is ranked 270 (Table 2.1). North Warwickshire and Hinckley and Bosworth perform strongly in terms of levels of employment in export intensive sectors, while performance in relation to other indicators results in a middle ranking. Overall, Nuneaton and Bedworth is ranked within the bottom third of local authorities for enterprise. This reflects a relatively low number of SMEs and business births, low business density (as measured by the number of enterprises per 1,000 working age residents), alongside lower levels of self- employment and employment in export intensive sectors.

Table 2.1: Enterprise - cross sectional analysis

HBBC NWBC NBBC CROSS SECTIONAL ANALYSIS - ENTERPRISE

SMEs per 1,000 145 113 273 SMES PER 1,000 W/A POPULATION working-age population 0

Enterprises per 10,000 147 113 273 110

working-age population EXPORT INTENSIVE ENTERPRISES PER 10,000 220 SECTORS W/A POPULATION Business births per 170 150 265 330 10,000 working-age population

Self-employment rate 175 291 195 SELF EMPLOYMENT BIRTHS PER 10,000 W/A RATE POPULATION Employment in export 37 3 182 intensive sectors Hinckley and Bosworth Overall rank 128 127 270 North Warwickshire Nuneaton and Bedworth

(ii) Recent trends While Nuneaton and Bedworth currently performs less strongly than Hinckley and Bosworth and North Warwickshire, its performance in relation to the identified measures of enterprise has improved to a greater degree than that of the other areas. In particular, relative performance has

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

improved in relation to business density, business births and self-employment. Overall, trends within North Warwickshire have been less positive (Table 2.2).

Table 2.2: Enterprise - longitudinal analysis HBBC NWBC NBBC LONGITUDINAL ANALYSIS - ENTERPRISE

SMES PER 1,000 W/A SMEs per 1,000 196 201 188 POPULATION working-age population 0 Enterprises per 10,000 145 185 104 110 EXPORT INTENSIVE ENTERPRISES PER 10,000 working-age population 220 SECTORS W/A POPULATION

Business births per 207 213 149 330 10,000 working-age population

Self-employment rate 74 291 85 SELF EMPLOYMENT BIRTHS PER 10,000 W/A RATE POPULATION Employment in export 205 99 239 intensive sectors Hinckley and Bosworth North Warwickshire Overall rank 159 235 133 Nuneaton and Bedworth

2.2.2 Business demography

(i) Enterprise Overall, the business density within the Cross-Border Partnership area (as measured by the number of active enterprises per 10,000 working age residents) is lower than within Great Britain as a whole and the LLEP and CWLEP areas. This is principally due to relatively low levels of business activity within Nuneaton and Bedworth (see Table 2.3). The business density within Nuneaton and Bedworth has though been increasing at a faster rate over recent years compared to the national average and, in particular, the LLEP and CWLEP areas.

Table 2.3: Number of businesses Active enterprises Active enterprises per 10,000 working age residents 2004 2013 Change (%) 2004 2013 Change (%) Hinckley and Bosworth 3,980 4,250 6.8% 602 638 6.0% North Warwickshire 2,615 2,695 3.1% 649 693 6.8% Nuneaton and Bedworth 3,205 3,555 10.9% 412 447 8.4% Cross-Border Partnership 9,800 10,500 7.1% 532 568 6.6% LLEP 34,110 37,370 9.6% 571 583 2.1% CWLEP 30,460 34,230 12.4% 578 612 6.0% Great Britain 2,106,730 2,392,965 13.6% 560 602 7.4% Source: ONS, business demography

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

(ii) Small and Medium Sized Enterprises Table 2.4 shows the number of SMEs (0-250 employees) and the number of SMEs per 1,000 working age population for the three Local Authority areas that comprise the Cross-Border Partnership, relative to the number of SMEs at the LEP area, regional and national levels. It also sets out the level of change in the number of SMEs between 2008 and 2013.

Table 2.4: SMEs (0-250 employees) per 1,000 working age population SMEs SMEs per 1,000 working age pop. 2008 2013 Change 2008 2013 Change Hinckley and Bosworth 4,010 3,880 -3.2% 61.7 60.6 -1.7% North Warwickshire 2,625 2,480 -5.5% 67.8 66.3 -2.2% Nuneaton and Bedworth 3,045 2,965 -2.6% 39.6 38.9 -1.9% Cross-Border Partnership 9,680 9,325 -3.7% 53.6 52.5 -2.1% LLEP 32,925 32,925 0.0% 52.5 51.4 -2.1% CWLEP 30,925 29,860 -3.4% 56.3 53.4 -5.2% East Midlands 148,690 144,695 -2.7% 51.6 49.7 -3.7% West Midlands 177,950 171,025 -3.9% 50.6 48.0 -5.1% GB 2,081,480 2,092,165 0.5% 53.3 52.6 -1.2% Source: ONS Number of VAT and/or PAYE based Between 2008 and 2013, the number of SMEs in the Cross-Border Partnership area declined by 3.7%. This fall was broadly consistent with trends across the East Midlands and West Midlands, where the number of SMEs declined by 2.7% and 3.9% respectively. However, at the national level the number of SMEs increased marginally over the same period. Of the three local authorities within the Cross-Border Partnership, the decline in the number of SMEs between 2008 and 2013 was greatest in North Warwickshire (5.5%). Both Hinckley and Bosworth and Nuneaton and Bedworth also experienced a drop of 3.2% and 2.6% respectively. While it experienced the greatest decline over the period from 2008, the number of SMEs per 1,000 working age population remains highest within North Warwickshire at 66.3. The number of SMEs within both North Warwickshire and Hinckley and Bosworth (60.6 SMEs per 1,000 working age residents) remains above national and regional average, as illustrated in Table 2.3. By contrast, within Nuneaton and Bedworth there were just 38.9 SMEs per 1,000 working age residents in 2013. This is significantly lower than that for comparator areas. Table 2.5 shows the change in the proportion of total business stock accounted for by SMEs over the 2008-2013 period for the three Local Authority areas that comprise the Cross-Border Partnership, together with the relevant LEP area, regional and national comparators. Each of the local authorities within the Cross-Border Partnership area demonstrated a decline in the proportion of total business stock accounted for by SMEs over the 2008-2013 period, as did the rest of the comparators.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Within the Cross-Border Partnership area, SMEs in North Warwickshire accounted for 92.0% of the total business stock in 2013, followed by 91.3% in Hinckley and Bosworth and 83.4% in Nuneaton and Bedworth in the same year.

Table 2.5: SMEs (0-250 employees) as a proportion of total business stock (2008-2013) 2008 2013 2008-2013 (% change) Hinckley and Bosworth 95.3% 91.3% -4.2% North Warwickshire 97.6% 92.0% -5.7% Nuneaton and Bedworth 87.8% 83.4% -5.0% Cross-Border Partnership 93.4% 88.8% -4.9% LLEP 92.6% 88.1% -4.9% CWLEP 91.5% 87.2% -4.7% East Midlands 93.9% 89.8% -4.3% West Midlands 92.9% 89.0% -4.2% Great Britain 91.0% 86.6% -4.9%

(iii) Business births Table 2.6 shows the change in the number of business births per 1,000 businesses over the 2004- 2013 period for the three Local Authority areas that comprise the Cross-Border Partnership, together with the relevant LEP area, regional and national comparators.

Table 2.6: Number of business births per 1,000 businesses (2004-2013) 2004 2013 2004-2013 (% change) Hinckley and Bosworth 128 121 -5.4% North Warwickshire 128 119 -7.3% Nuneaton and Bedworth 140 143 2.2% Cross-Border Partnership 132 128 -3.1% LLEP 120 136 13.7% CWLEP 134 139 4.3% East Midlands 128 137 7.2% West Midlands 128 134 5.0% Great Britain 130 143 9.6% Source: ONS, Business Demography The number of business births per 1,000 businesses in the Cross-Border Partnership area fell from 132 in 2004 to 128 in 2013 (-3.1%). While both Hinckley and Bosworth and North Warwickshire demonstrated declines of -5.4% and -7.3% respectively between 2004 and 2013, the number of business births per 1,000 businesses in Nuneaton and Bedworth increased by 2.2% over the same period. In contrast, the number of business births per 1,000 businesses in each of the other comparator areas increased between 2004 and 2013. In 2013, North Warwickshire had the lowest number of business births per 1,000 businesses (119) of all comparator areas, significantly below the LEP, regional and national comparator areas.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.1 shows the number of business births per 1,000 businesses in Hinckley and Bosworth relative to the Cross-Border Partnership area, the LLEP area, the East Midlands region and Great Britain as a whole during the 2004 to 2013 period. While Hinckley and Bosworth has demonstrated a broadly similar profile of decline and growth to that of the comparator areas, since 2007/2008 there has been a consistently lower number of business births per 1,000 businesses in Hinckley and Bosworth compared to the comparator areas. In addition, the Hinckley and Bosworth, Cross-Border Partnership, LLEP and East Midlands Region areas have each demonstrated a lower level of business births per 1,000 businesses than the Great Britain average between 2007 and 2013. Figure 2.1: Hinckley and Bosworth - Births per 1,000 businesses (2004-2013) 150

140

130

120

110

100 Births Births per 1,000 businesses

80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hinckley And Bosworth Cross-Border Partnership LLEP East Midlands Region Great Britain

Source: ONS, Business Demography Figure 2.2 shows the number of business births per 1,000 businesses in North Warwickshire, together with the relevant comparator areas during the 2004 to 2013 period. With the exception of 2009 and 2010, the number of business births per 1,000 businesses in North Warwickshire has been consistently lower than the Cross-Border Partnership area average. However, contrary to the comparator areas, the number of business births per 1,000 businesses in North Warwickshire between 2008 and 2009 increased by 20 (7.8%) – this compares to decreases of -8.0%, -20.8%, -11.4% and -11.3% in the Cross-Border Partnership, CWLEP, West Midlands Region and Great Britain areas respectively during the same period.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.2: North Warwickshire - Births per 1,000 businesses (2004-2013) 150

140

130

120

110

100 Births Births per 1,000 businesses

80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 North Warwickshire Cross-Border Partnership CWLEP West Midlands Region Great Britain

Source: ONS, Business Demography Figure 2.3 shows the number of business births per 1,000 businesses in Nuneaton and Bedworth, together with the relevant comparator areas during the 2004 to 2013 period. Whilst Nuneaton and Bedworth demonstrated a significant decline (-32.4%) between 2007 and 2010, relatively high growth (+58.7%) was observed for the local authority area over the 2010-2013 period. However, the number of business births per 1,000 businesses in Nuneaton and Bedworth has been consistently higher than that observed for the Cross-Border Partnership area over the 2004- 2013 period. Figure 2.3: Nuneaton and Bedworth - Births per 1,000 businesses (2004-2013) 150

140

130

120

110

100 Births Births per 1,000 businesses

80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nuneaton And Bedworth Cross-Border Partnership CWLEP West Midlands Region Great Britain

Source: ONS, Business Demography

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.2.3 Export intensive sectors Export intensive sectors are those sectors for which, at the national level, have an export intensity above the average for all sectors. Figure 2.4 sets out levels of employment (as a percentage of total employment) in these sectors in 2013. Overall, export intensive sectors accounted for 71% of total employment within North Warwickshire, 62% within Hinckley and Bosworth and 55% within Nuneaton and Bedworth. As illustrated in Figure 2.4, this can to a significant extent be attributed to employment in export intensive manufacturing activities. Alongside this, the transport and storage sector also supports significant local employment, particularly within North Warwickshire. Figure 2.4: Employment in export intensive sectors (2013)

A : Agriculture, forestry and fishing

B : Mining and quarrying

C : Manufacturing

D : Electricity, gas, steam and air conditioning supply

E : Water supply; sewerage, waste management and remediation activities

F : Construction

G : Wholesale and retail trade; repair of motor vehicles and motorcycles

H : Transportation and storage

I : Accommodation and food service activities

J : Information and communication

K : Financial and insurance activities

L : Real estate activities

M : Professional, scientific and technical activities

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth England

Source: Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.2.4 Self-employment Overall, levels of self-employment (the proportion of working-age residents in employment that are self-employed) within the Cross-Border Partnership area in 2014/15 were, at 15.4%, slightly higher than the average for England as a whole. Levels of self-employment ranged from 14.2% within Nuneaton and Bedworth to 17.6% within North Warwickshire. Overall levels of self- employment are set out in Table 2.7.

Table 2.7: Self-employment levels within the Cross-Border Partnership Number of working age residents in self- Self-employment as a % of employment total employment 2005/06 2014/15 Change 2005/06 2014/15 Hinckley and Bosworth 8,200 7,800 -4.9% 15.3% 15.4% North Warwickshire 1,900 5,600 194.7% 6.3% 17.6% Nuneaton and Bedworth 5,100 7,700 51.0% 8.7% 14.2% Cross-Border Partnership 15,200 21,100 38.8% 10.6% 15.4% LLEP 58,500 52,600 -10.1% 13.0% 11.4% CWLEP 40,700 54,800 34.6% 10.3% 13.4% England 2,997,700 3,538,000 18.0% 12.6% 14.1%

As set out in Figure 2.5, the self-employment rate within Hinckley and Bosworth has remained relatively consistent with the averages both for the Cross-Border Partnership as a whole and for England. Following a decline over the period to 2010/11, levels of self-employment have increased to above the 3 year average for England as a whole. Despite this, it is noted that the absolute number of self-employed residents was lower in 2014/15 than in 2005/06 (Table 2.7). Figure 2.5: Hinckley and Bosworth self-employment (3 year average) 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2005/06 - 2006/07 - 2007/08 - 2008/09 - 2009/10 - 2010/11 - 2011/12 - 2012/13 - 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Hinckley and Bosworth Cross-Border Partnership LLEP England Source: Annual Population Survey Based on the average over a three year period, levels of self-employment within North Warwickshire are broadly consistent with the average for England as a whole. However, it is notable that growth in the levels of self-employment within the district have significantly

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 exceeded the average for England as a whole over the period from 2005/06, as shown in Figure 2.6. Figure 2.6: North Warwickshire self-employment (3 year average) 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2005/06 - 2006/07 - 2007/08 - 2008/09 - 2009/10 - 2010/11 - 2011/12 - 2012/13 - 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 North Warwickshire Cross-Border Partnership CWLEP England Source: Annual Population Survey Starting from a relatively low base, levels of self-employment within Nuneaton and Bedworth (based on the three year average over the period 2012/13-2014/15) remain somewhat below the averages for England and the Coventry and Warwickshire LEP area. However, the rate of growth over this period has significantly exceeded that across comparator areas, particularly over the period from 2008/09. Figure 2.7: Nuneaton and Bedworth self-employment (3 year average) 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2005/06 - 2006/07 - 2007/08 - 2008/09 - 2009/10 - 2010/11 - 2011/12 - 2012/13 - 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Nuneaton and Bedworth Cross-Border Partnership CWLEP England Source: Annual Population Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3 People and labour market

2.3.1 EGC Index

(i) Current performance Based on the average rank across each indicator, North Warwickshire is currently ranked 195 out of 325 local authority areas for people and labour market, while Hinckley and Bosworth and Nuneaton and Bedworth are ranked 254 and 301 respectively. The difference between the three areas is principally attributable to variance in levels of net commuter flows (Table 2.8), with North Warwickshire experiencing significant inflows and both Hinckley and Bosworth and Nuneaton and Bedworth experiencing significant outflows in 2011.

Table 2.8: People and labour market - cross sectional analysis CROSS SECTIONAL ANALYSIS - PEOPLE AND LABOUR MARKET

HBBC NWBC NBBC WORKING AGE POPULATION 0 Working age population 181 173 143 110 FORECAST WORKING AGE Forecast working age NET COMMUTER FLOWS 203 196 151 POPULATION population 220

Highest qualification - 215 247 225 330 NVQ4+

HIGHEST QUALIFICATION JSA CLAIMANT RATE Highest qualification - 257 253 283 NVQ4+ No qualifications

JSA claimant rate 122 102 209 HIGHEST QUALIFICATION NO QUALIFICATIONS

Net commuter flows 269 18 285 Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Overall rank 254 195 301

(ii) Recent trends While it is ranked lower than both Hinckley and Bosworth and North Warwickshire in terms of current performance, longitudinal analysis indicates that Nuneaton and Bedworth has experienced a significant improvement in performance in terms of key people and labour market indicators (see Table 2.9). Nuneaton and Bedworth is ranked 141 of 325 local authorities within England, while North Warwickshire and Hinckley and Bosworth are ranked 209 and 313 respectively.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 2.9: People and labour market - longitudinal analysis LONGITUDINAL ANALYSIS - PEOPLE AND LABOUR MARKET

WORKING AGE HBBC NWBC NBBC POPULATION 0 Working age population 284 302 173 110 FORECAST WORKING NET COMMUTER FLOWS Forecast working age AGE POPULATION population 248 240 168 220 Highest qualification - 330 NVQ4+ 191 161 120 HIGHEST QUALIFICATION JSA CLAIMANT RATE Highest qualification - NVQ4+ No qualifications 200 306 172 HIGHEST QUALIFICATION JSA claimant rate 150 55 103 NO QUALIFICATIONS

Net commuter flows 296 3 202 Hinckley and Bosworth North Warwickshire Overall rank 313 209 141 Nuneaton and Bedworth

2.3.2 Population and demographics

(i) Total population The resident population within the Cross-Border Partnership area totaled in excess of 296,000 in 2014. The total population of Nuneaton and Bedworth is, at 126,200, somewhat larger than that of Hinckley and Bosworth (107,700) and double that of North Warwickshire (62,500). Nuneaton and Bedworth also has a significantly higher population density, with 16.0 residents per hectare compared to 3.6 and 2.2 residents per hectare respectively within Hinckley and Bosworth and North Warwickshire. Overall, the Cross-Border Partnership area has an average population density of 4.5 residents per hectare. This is slightly denser than the average for England of 4.2 residents per hectare. Over the ten years to 2014 the total population of the Cross-Border Partnership area increased by 3.9%. This is lower than the average rate of growth for England of 7.3% over the same period (Figure 2.8). It is also lower than the increase in total population experienced across the wider LLEP and CWLEP areas of 8.5% and 8.2% respectively. Within the Cross-Border Partnership area, the rate of growth over this period was highest within Hinckley and Bosworth at 5.2%, while Nuneaton and Bedworth experienced growth of 4.3%. By contrast, North Warwickshire experienced overall growth of just 1.0%. In part, this lack of growth can be attributed to the effects of the green belt designation which washes over much of the local authority area.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.8: Indexed change in total population (2005=100) 108

106

104

102

100

96 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross Border Partnership England Source: ONS, Mid-year population estimates As set out in Figure 2.9, the structure of the population within the Cross-Border Partnership area is broadly consistent with that for England as a whole. The working-age population within the area comprises 66% of the total population, representing a small proportionate decrease from 67% in 2005. The proportion of the population aged under 18 (comprising the school age population) also declined very slightly between 2014 and 2005 from 22% to 21%. By contrast, the retirement age population (aged 70 or over) increased from 11% of the total population in 2005 to 13% in 2014. Figure 2.9: Resident population age structure

100% 11% 11% 11% 11% 12% 12% 12% 13% 14% 14% 80%

60% 66% 67% 67% 68% 67% 67% 66% 66% 66% 67% 40%

20% 23% 22% 22% 21% 21% 21% 21% 21% 20% 20% 0% 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 Hinckley and North Warwickshire Nuneaton and Cross-Border England Bosworth Bedworth Partnership School age Working age Retirement age

(ii) Working age population Table 2.10 shows the working age population in each local authority area in 2005 and 2014, alongside the working age population as a proportion of the total population. Within the Cross- Border Partnership area as a whole, the working age population was 196,600 in 2014, comprising

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

66.3% of the total working age population. This was marginally lower than the average for the wider LLEP and CWLEP areas (67.0% and 66.6% respectively), and for England as a whole (66.6%). The working age population within Nuneaton and Bedworth was, at 83,500, approximately double that of North Warwickshire (41,600), while that of Hinckley Bosworth was 71,500. As a proportion of the total population, the working age population ranged from 66.2% within Nuneaton and Bedworth to 66.6% within North Warwickshire.

Table 2.10: Working age population (2005-14) Working age as a percentage of total Working age population population 2005 2014 Change (%) 2005 2014 Change Hinckley and Bosworth 68,900 71,500 3.8% 67.3% 66.4% -0.9 p.p. North Warwickshire 41,800 41,600 -0.5% 67.5% 66.6% -1.0 p.p. Nuneaton and Bedworth 80,100 83,500 4.2% 66.2% 66.2% 0.0 p.p. Cross-Border Partnership 190,800 196,600 3.0% 66.9% 66.3% -0.5 p.p. LLEP 621,500 674,200 8.5% 67.1% 67.0% 0.0 p.p. CWLEP 548,400 592,400 8.0% 66.7% 66.6% -0.1 p.p. England 33,714,900 36,162,700 7.3% 66.6% 66.6% 0.0 p.p. Source: ONS mid-year population estimates As set out in Figure 2.10, levels of working age population growth within Hinckley and Bosworth have been lower than the average for England as a whole. Further to this, it is evident that the proportion of the total resident population of working age peaked in 2007 at 67.5% (compared to 66.8% for England as a whole) it has since declined to 66.4%, below the average for England as a whole. Figure 2.10: Hinckley and Bosworth indexed change in working age population and working age population as a percentage of total population 108 68.0%

106 67.5%

104 67.0%

102 66.5%

100 66.0% % total population % total

Indexed (2005=100) change Indexed 98 65.5%

96 65.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Percentage of total population - Hinckley and Bosworth Percentage of total population - Cross-Border Partnership Percentage of total population - England Indexed change - Hinckley and Bosworth Indexed change - Cross-Border Partnership Indexed change - England Source: ONS mid-year population estimates In North Warwickshire there has been a slight decline in the working age population over the period 2005-14, counter to national trends for overall growth within this group. Further to this,

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 the working age population (as a proportion of the total population) has declined significantly since the 2009 peak of 67.8% to 66.6% in 2014 (Figure 2.11). Figure 2.11: North Warwickshire indexed change in working age population and working age population as a percentage of total population 108 68.0%

106 67.5%

104 67.0%

102 66.5%

100 66.0% % total population % total

Indexed (2005=100) change Indexed 98 65.5%

96 65.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Percentage of total population - North Warwickshire Percentage of total population - Cross-Border Partnership Percentage of total population - England Indexed change - North Warwickshire Indexed change - Cross-Border Partnership Indexed change - England Source: ONS mid-year population estimates Figure 2.12 sets out working age population change in Nuneaton and Bedworth between 2005 and 2014. It is notable that the working age population of the Borough increased at above the national average over the period to 2009. Over this period, the working age population (as a percentage of the total population) increased to the national average. However, from 2010 the rate of working age population growth has slowed and, from 2012, moved into decline. As a result, the working age population (as a proportion of the total population) is now lower than the national average. Figure 2.12: Nuneaton & Bedworth indexed change in working age population and working age population as a percentage of total population 108 68.0%

106 67.5%

104 67.0%

102 66.5%

100 66.0% % total population % total

Indexed (2005=100) change Indexed 98 65.5%

96 65.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Percentage of total population - Nuneaton and Bedworth Percentage of total population - Cross-Border Partnership Percentage of total population - England Indexed change - Nuneaton and Bedworth Indexed change - Cross-Border Partnership Indexed change - England Source: ONS mid-year population estimates Figure 2.13 shows the distribution of working age population by Lower Layer Super Output Area (LSOA) in 2013. It shows that within more urban areas, notably Nuneaton, Hinckley and

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Atherstone, the proportion of residents that are working age is relatively high, while levels are generally lower across the more rural areas. The distribution of school age residents is more variable, with concentrations within both urban areas and rural areas (Figure 2.14). Retirement age residents (aged 65 or over) comprise a relatively high proportion of the resident population within more rural areas. However, as illustrated in Figure 2.15, a number of more urban and fringe areas also have a relatively high proportion of retirement age residents.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.13: LSOA Working age population (2013)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.14: LSOA population aged 18 or under (2013)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.15: LSOA population aged 65 or over (2013)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3.3 Unemployment

(i) ILO Unemployment Table 2.11 sets out unemployment in 2004 and 2013 and the change over this period. The measure of unemployment is consistent with definitions set out by the International Labour Organisation (ILO). The unemployment rate for the Cross-Border Partnership area as whole was, at 6.6%, somewhat lower than the average for Great Britain of 7.0% in 2013/14. However, there were significant disparities between Nuneaton and Bedworth, which had a relatively high unemployment rate of 8.1%, and the other districts.

Table 2.11: ILO unemployment (2004-2013) Total unemployment ILO unemployment rate 2004/05 2013/14 % Change 2004/05 2013/14 Change* Hinckley and Bosworth 2,100 2,700 28.6% 3.6% 5.4% 1.8 p.p. North Warwickshire 1,000 1,500 50.0% 3.0% 5.2% 2.2 p.p. Nuneaton and Bedworth 3,000 5,200 73.3% 5.0% 8.1% 3.1 p.p. Cross-Border Partnership 6,100 9,400 54.1% 4.1% 6.6% 2.5 p.p. LLEP 18,500 37,900 104.9% 4.0% 7.7% 3.7 p.p. CWLEP 15,500 23,700 52.9% 3.8% 5.7% 1.9 p.p. East Midlands 92,300 148,400 60.8% 4.3% 6.6% 2.3 p.p. West Midlands 131,500 204,000 55.1% 5.1% 7.7% 2.6 p.p. Great Britain 1,380,500 2,137,600 54.8% 4.8% 7.0% 2.2 p.p. Source: ONS model-based estimates of unemployment * Percentage point change Figure 2.22 sets out ILO unemployment change in Hinckley and Bosworth. Its profile is consistent with the Cross-Border Partnership average, as unemployment peaked in 2009/10 before returning to pre-recession levels in 2012/13. Unemployment then increased marginally to 2013/14, although it remained below levels of comparator areas.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.22: Hinckley and Bosworth ILO unemployment 2004-2013 14

% unemployment% 4

0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Hinckley and Bosworth Cross-Border Partnership LLEP East Midlands Great Britain Source: ONS model-based estimates of unemployment North Warwickshire saw a substantial increase in ILO unemployment to 2008/09. However, levels has subsequently declined and unemployment in 2013/14 was lower in North Warwickshire than across comparator areas (see Figure 2.23). Figure 2.23: North Warwickshire ILO unemployment 2004-2013 14

% unemployment% 4

0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

North Warwickshire Cross-Border Partnership CWLEP West Midlands Great Britain Source: ONS model-based estimates of unemployment Figure 2.24 shows ILO unemployment change in Nuneaton and Bedworth. Its profile is consistent with the Cross-Border Partnership average. Unemployment peaked in 2009/10, following which it is remained broadly consistent with the average for comparator areas. In 2013/14, unemployment was marginally above the averages for the West Midlands and Great Britain.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.24: Nuneaton and Bedworth ILO unemployment 2004-2013 12

4 % unemployment%

0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Nuneaton and Bedworth Cross-Border Partnership CWLEP West Midlands Great Britain Source: ONS model-based estimates of unemployment

(ii) Other measures of unemployment Other key measures of unemployment include the Job-Seekers Allowance (JSA) claimant rate and the worklessness rate (the proportion of the resident population claiming out-of-work benefits including JSA and Employment and Support Allowance). Based on these measures, levels of unemployment within Hinckley and Bosworth are significantly lower than those for the wider LLEP area and England as a whole (see Figure 2.25). In October 2015, the proportion of the resident working age population claiming JSA within Hinckley and Bosworth was lower than 1%. The worklessness rate within the Borough was also significantly lower than the averages for the LLEP area and England at 6%. Figure 2.25: Hinckley and Bosworth – JSA claimant rate and worklessness rate 14%

12%

10%

% working% age population 2%

0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Hinckley and Bosworth - JSA claimant rate Cross-Border Partnership - JSA claimant rate LLEP - JSA claimant rate England - JSA claimant rate Hinckley and Bosworth - Worklessness rate Cross-Border Partnership - Worklessness rate LLEP - Worklessness rate England - Worklessness rate Source: ONS, DWP Benefits; ONS, Jobseekers Allowance Within North Warwickshire, the JSA claimant rate and worklessness rate has remained low relative to comparator areas. JSA claimant rates peaked in 2009 during the recession but have

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

now fallen below 1%. The proportion of the resident population claiming out-of-work benefits has declined to approximately 7% (see Figure 2.26). Figure 2.26: North Warwickshire – JSA claimant rate and worklessness rate 14%

12%

10%

% working% age population 2%

0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 North Warwickshire - JSA claimant rate Cross-Border Partnership - JSA claimant rate CWLEP - JSA claimant rate England - JSA claimant rate North Warwickshire - Worklessness rate Cross-Border Partnership - Worklessness rate CWLEP - Worklessness rate England - Worklessness rate Source: ONS, DWP Benefits; ONS, Jobseekers Allowance As illustrated in Figure 2.27, unemployment in Nuneaton and Bedworth, as measured by the JSA claimant rate and worklessness rate, is higher than the average for the Cross-Border Partnership area. Rates are also higher than across the wider CWLEP area and England as a whole. Figure 2.27: Nuneaton and Bedworth – JSA claimant rate and worklessness rate 16% 14% 12% 10% 8% 6% 4%

% working% age population 2% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nuneaton and Bedworth - JSA claimant rate Cross-Border Partnership - JSA claimant rate CWLEP - JSA claimant rate England - JSA claimant rate Nuneaton and Bedworth - Worklessness rate Cross-Border Partnership - Worklessness rate CWLEP - Worklessness rate England - Worklessness rate Source: ONS, DWP Benefits; ONS, Jobseekers Allowance

2.3.4 Qualifications

(i) Overall profile of qualifications Overall, the proportion of working age residents within the Cross-Border Partnership are qualified to NVQ level 4 or above remains somewhat lower than the national average, while the proportion

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 with no qualifications is relatively high. Recent trends in relation to these groups are outlined in greater detail below. As outlined in Figure 2.28, there is a degree of variation in the profiles of resident qualifications across the local authority areas within the Cross-Border Partnership area as follows:  Hinckley and Bosworth – the area has experienced a decline in the proportion of residents with ‘other qualifications’ including apprenticeships, offset by an increase in the proportion of residents qualified to NVQ level 2;  North Warwickshire – the proportion of residents qualified to NVQ level 3 has increased significantly over ten years, while the proportion qualified to NVQ level 1 has declined; and  Nuneaton and Bedworth – there has been a small increase in the proportion of residents with ‘other qualifications’, while the proportion of residents with NVQ level 1 qualifications has declined. Figure 2.28: Qualifications profile for working age residents (2004 and 2013) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2013 2004 2013 2004 2013 2004 2013 2004 2013 Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership England No qualifications (NVQ) - aged 16-64 Other qualifications (NVQ) - aged 16-64 NVQ1+ - aged 16-64 NVQ2+ - aged 16-64 NVQ3+ - aged 16-64 NVQ4+ - aged 16-64 Source: Annual Population Survey

(ii) High level qualifications (NVQ4+) Figure 2.29 sets out the proportion of the working age population in Hinckley and Bosworth that hold qualifications at NVQ level 4 and above for the period from 2004 to 2013. The Cross-Border Partnership area, LLEP, East Midlands and Great Britain averages are included for comparison. Over the period, the proportion of working age residents qualified to NVQ4 or above has increased significantly from around 22% to 29%. This level of change is broadly consistent with that across the LLEP area and at the regional and national level. However, the proportion of the resident working age population qualified to this level remains lower than the average for comparator areas.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.29: Hinckley and Bosworth % with NVQ4+ (aged 16-64) 2004-2013 40.0

64) 35.0 -

30.0

25.0

20.0

15.0 % with NVQ4+ (aged 16 10.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hinckley And Bosworth LLEP East Midlands Great Britain Cross-Border Partnership

Source: ONS Annual Population Survey Figure 2.30 presents the proportion of the working age population in North Warwickshire that hold qualifications at NVQ level 4 and above between 2004 and 2013. It indicates that North Warwickshire has experienced a very significant increase in the proportion of the working age population qualified to this level, albeit from a relatively low base of 18.4% in 2004. While the proportion was broadly consistent with the average for the West Midlands region by 2013 at 26.7%, it remains significantly lower than the average for the CWLEP area and Great Britain as a whole. Furthermore, it had the lowest percentage of residents qualified to NVQ level 4 within the Cross-Border Partnership. Figure 2.30: North Warwickshire % with NVQ4+ (aged 16-64) 2004-2013 40.0

64) 35.0 -

30.0

25.0

20.0

15.0 % with NVQ4+ )aged 16 10.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 North Warwickshire CWLEP West Midlands Great Britain Cross-Border Partnership

Source: ONS Annual Population Survey Figure 2.31 shows the proportion of the working age population in Nuneaton and Bedworth that hold qualifications at NVQ level 4 and above between 2004 and 2013. It indicates that qualification levels amongst the working age population have improved significantly over recent years, with the proportion of residents qualified to NVQ level 4 now consistent with the West Midlands average. This represents a very significant improvement from 2005, when it was estimated that just 15% of working age residents were qualified to this level. Nevertheless,

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 despite this improvement, the proportion of working age residents with high level qualifications remains significantly lower than the average for the CWLEP area and Great Britain as a whole. Figure 2.31: Nuneaton and Bedworth % with NVQ4+ (aged 16-64) 2004-2013 40.0

64) 35.0 -

30.0

25.0

20.0

15.0 % with NVQ4+ (aged 16 10.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nuneaton And Bedworth CWLEP West Midlands Great Britain Cross-Border Partnership

Source: ONS Annual Population Survey

(iii) No qualifications Data for 2013 indicates that a relatively high proportion of working age residents within Hinckley and Bosworth (12%) have no qualifications. This compares to averages for the East Midlands region and Great Britain of 10.3% and 9.3% respectively. However, the proportion of the population within no qualifications has declined significantly within Hinckley and Bosworth from levels of 18% in 2004. This level of decline is broadly consistent with trends across the comparator areas, as illustrated in Figure 2.32. Figure 2.32: Hinckley and Bosworth % with no qualifications (aged 16-64) 2004-2013 25.0 64) - 20.0

15.0

10.0

5.0

0.0 % with noqualifications (aged 16 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hinckley And Bosworth LLEP East Midlands Great Britain Cross Border Partnership

Source: ONS Annual Population Survey Figure 2.33 shows the proportion of the working age population in North Warwickshire with no qualifications between 2004 and 2013. It is estimated that the proportion of working age

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 residents with no qualifications has dropped significantly from 23.8% in 2004 to 11.7% in 2013. As a result of this decline, North Warwickshire figures for the proportion of working age residents with no qualifications are now consistent with those for the CWLEP area and the West Midlands as a whole, albeit some way above the average for Great Britain. Figure 2.33: North Warwickshire % with no qualifications (aged 16-64) 2004-2013 25.0 64) - 20.0

15.0

10.0

5.0

0.0 % with noqualifications (aged 16 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 North Warwickshire CWLEP West Midlands Great Britain Cross Border Partnership

Source: ONS Annual Population Survey The reduction in the proportion of the resident population with no qualifications has been less significant within Nuneaton and Bedworth (see Figure 2.34). It is estimated that 13.2% of the local working age population had no qualifications in 2013, consistent with the average for the West Midlands but higher than that of the wider CWLEP area and Greater Britain as a whole. Over the period 2004 to 2013, the decrease in the proportion of unqualified residents within Nuneaton and Bedworth was broadly consistent with that achieved across the wider CWLEP area and the region, but lower than that for Great Britain as a whole. Figure 2.34: Nuneaton and Bedworth % with no qualifications (aged 16-64) 2004-2013 25.0 64) - 20.0

15.0

10.0

5.0

% with noqualification (aged 16 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nuneaton And Bedworth CWLEP West Midlands Great Britain Cross Border Partnership

Source: ONS Annual Population Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3.5 Occupations

Relative to the average for England as a whole, a high proportion of residents of the Cross-Border Partnership area are employed in skilled trades, process plant and machine operative and elementary occupations. Over the period 2004/05 to 2014/15 there has been significant growth in the proportion of Cross-Border Partnership residents employed in elementary occupations. By contrast, the proportion employed in professional occupations is relatively low and has remained broadly consistent since 2004/05, while the proportion of employment in administrative and secretarial occupations has declined significantly. Figure 2.35: Occupation profile for Cross-Border Partnership residents in employment 100% Managers, directors and senior officials 90% 80% Professional occupations 70% Associate prof & tech occupations 60% Administrative and secretarial occupations 50% Skilled trades occupations

40% Caring, leisure & other service occupations 30% Sales and customer service occupations 20% Process, plant and machine operatives 10% Elementary occupations 0% 2004/05 2014/15 2004/05 2014/15 Cross-Border Partnership England

Source: ONS, APS Within the Cross-Border Partnership area, a significantly higher proportion of Nuneaton and Bedworth residents are employed in lower order occupations (Sales and customer service occupations; process, plant and machine operatives; and elementary occupations) relative to Hinckley and Bosworth and North Warwickshire. By contrast, a high proportion of residents of both Hinckley and Bosworth and North Warwickshire are employed in skilled trade occupations, potentially reflecting the strength of the manufacturing sector in these areas. Hinckley and Bosworth also has the highest proportion of residents employed in higher order occupations (managers, directors and senior officials; professional occupations; and associate professional and technical occupations), although it is noted that this is skewed towards associate professional and technical occupations. The proportion of residents employed in professional occupations is higher in North Warwickshire, with this area forming part of the commuter catchment for the Greater Birmingham conurbation.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.36: Occupation profile for residents in employment (2014/15) 100% Managers, directors and senior officials 90% Professional occupations 80% 70% Associate prof & tech occupations 60% Administrative and secretarial occupations 50% Skilled trades occupations 40% Caring, leisure & other service occupations 30% Sales and customer service occupations 20% Process, plant and machine operatives 10% Elementary occupations 0% Hinckley and North Warwickshire Nuneaton and Bosworth Bedworth Source: ONS, APS

2.3.6 Commuting flows Based on data from the 2011 Census, it is estimated that some 59,600 residents live and work within the Cross-Border Partnership area, with residents accounting for 57% of the total workforce. There are significant travel-to-work movements between Nuneaton and Bedworth and North Warwickshire, and between Nuneaton and Bedworth and Hinckley and Bosworth. The number of movements between North Warwickshire and Hinckley and Bosworth are significantly lower. Both Hinckley and Bosworth and Nuneaton and Bedworth experience net outflows to adjacent districts (Figure 2.37). Key destinations include Coventry, Leicester and Blaby. North Warwickshire also experiences a significant number of out-movements, particularly to Birmingham and Tamworth. However, the authority also has very significant in-movements from neighbouring authorities, with residents accounting for just 25% of the local labour force.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.37: Principle travel to work movements (2011)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 2.12 shows the largest net inflows and outflows in terms of travel to work for Hinckley and Bosworth based on 2011 Census data. It indicates that overall, Hinckley and Bosworth experienced high levels of net out-commuting, particularly to key economic centres including Leicester, Coventry and Rugby, alongside the other neighbouring areas of Blaby and Harborough. Hinckley also attracted net inflows from a number of authorities, including those lined by the A5 trunk road such as Nuneaton and Bedworth and Tamworth.

Table 2.12 Hinckley and Bosworth – largest net inflows and outflows Inflow Outflow Net flow Largest net inflow Nuneaton and Bedworth 2,606 2,104 502 South Derbyshire 241 75 166 Tamworth 270 202 68 South Northamptonshire 31 20 11 Lichfield 117 107 10 Largest net outflow Rugby 389 982 -593 Coventry 742 1,840 -1,098 Harborough 857 2,067 -1,210 Blaby 2,310 3,901 -1,591 Leicester 1,962 6,251 -4,289 Other Cross-Border Partnership areas North Warwickshire 712 821 -109 Total Total 33,149 44,289 -11,140 Source: Census origin destination data, 2011 The largest net travel to work flows in to and out of North Warwickshire are set out in Table 2.13. Overall, North Warwickshire benefits from very significant net inflows, reflecting the presence of large and highly accessible employment sites immediately adjacent to the Greater Birmingham conurbation. In particular, North Warwickshire attracts large net inflows from the neighbouring local authority areas of Tamworth, Nuneaton and Bedworth and Solihull. Net outflows from North Warwickshire are predominantly to other key centres within the CWLEP area, notably Coventry and Warwick.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 2.13: North Warwickshire – largest net inflows and outflows Inflow Outflow Net flow Largest net inflow Tamworth 4,862 2,315 2,547 Nuneaton and Bedworth 3,176 2,060 1,116 Birmingham 5,151 4,238 913 Solihull 2,301 1,697 604 Walsall 648 175 473 Largest net outflow Daventry 38 62 -24 Rugby 206 266 -60 Harborough 62 185 -123 Warwick 241 429 -188 Coventry 1,134 1,614 -480 Other Cross-Border Partnership areas Hinckley and Bosworth 821 712 109 Total Total 33,871 25,472 8,399 Source: Census origin destination data, 2011 Table 2.14 shows the largest net inflows and outflows in terms of travel to work for Nuneaton and Bedworth. Overall, the area has a very significant net outflow. In particular, this is dominated by major outflows to Coventry alongside smaller, though still significant, outflows to Warwick, Birmingham, North Warwickshire and Rugby.

Table 2.14: Nuneaton and Bedworth – largest net inflows and outflows Inflow Outflow Net flow Largest net inflow Tamworth 387 284 103 Nottingham 137 54 83 Rushcliffe 78 13 65 Broxtowe 71 9 62 Erewash 55 15 40 Largest net outflow Rugby 803 1,896 -1,093 North Warwickshire 2,060 3,176 -1,116 Birmingham 647 1,827 -1,180 Warwick 432 1,867 -1,435 Coventry 4,878 11,392 -6,514 Other Cross-Border Partnership areas Hinckley and Bosworth 2,104 2,606 -502 Total Total 37,169 51,979 -14,810 Source: Census origin destination data, 2011

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.3.7 Demographic forecasts ONS population projections forecast ongoing total population growth within the Cross-Border Partnership area, albeit at a lower rate than the national average (12.5% over the period to 2037 compared to 16.2% for England as a whole). In particular, growth within North Warwickshire is expected to remain at around half the national rate. The projections, set out in Figure 2.38, also predict that the working age population within the Cross-Border Partnership area will decline slightly over this period, with North Warwickshire expected to experience a more significant fall. Figure 2.38: Population projections 120

115

110

105

100

Hinckley and Bosworth Total Hinckley and Bosworth Working age North Warwickshire Total North Warwickshire Working age Nuneaton and Bedworth Total Nuneaton and Bedworth Working age Cross-Border Partnership Total Cross-Border Partnership Working age England Total England Working age Source: ONS, Population projections Reflecting projected population growth and long-term trends in relation to household size, it is expected that the number of householders within the Cross-Border Partnership area will increase by around 18% over the period 2012-37 (ONS, Household Projections). Growth is expected to range from 20% within Nuneaton and Bedworth to 15% in North Warwickshire. The projected level of growth remains lower than the average for England, where the number of households is projected to increase by some 23% over the same period.

2.4 Knowledge and innovation

2.4.1 EGC Index

(i) Current performance Each of the local authority areas is ranked in the top quartile in relation to employment in high technology sectors. However, levels of employment within knowledge intensive services are significantly lower across the area and this is reflected in a lower ranking (see Table 2.15). In part, this is representative of the overall structure of the local economy which has retained relatively high levels of manufacturing employment. Overall, North Warwickshire is ranked 158 of 325 local

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 authority areas for knowledge and innovation, despite its status as the lowest ranked local authority district in England in terms of employment in knowledge intensive services. Hinckley and Bosworth and Nuneaton and Bedworth are ranked 160 and 233 respectively.

Table 2.15: Knowledge & innovation - cross CROSS SECTIONAL ANALYSIS - KNOWLEDGE AND INNOVATION sectional analysis EMPLOYMENT IN HIGH TECHNOLOGY SECTORS HBBC NWBC NBBC 0

Employment in high 22 91 82 110 technology sectors 220 Employment in 261 325 221 knowledge intensive 330 services EMPLOYMENT IN HIGHER ORDER KNOWLEDGE INTENSIVE OCCUPATIONS Higher order 202 66 260 SERVICES occupations (SOC1-

3) Hinckley and Bosworth North Warwickshire Overall rank 160 158 233 Nuneaton and Bedworth

(ii) Recent trends Longitudinal analysis indicates that based upon recent trends, each of the local authorities is ranked in the middle third in terms of key indicators of knowledge and innovation, although there is evidence that employment in higher order occupations has improved. In terms of recent performance across the identified indicators, Nuneaton and Bedworth is ranked 153 out of 325 local authority areas, while North Warwickshire and Hinckley and Bosworth are ranked 146 and 208 respectively (see Table 2.16).

Table 2.16: Knowledge and innovation - LONGITUDINAL ANALYSIS - KNOWLEDGE AND INNOVATION

longitudinal analysis EMPLOYMENT IN HIGH TECHNOLOGY SECTORS HBBC NWBC NBBC 0 Employment in high 213 146 305 110

technology sectors 220 Employment in 142 314 126 330 knowledge intensive

services EMPLOYMENT IN HIGHER ORDER KNOWLEDGE INTENSIVE OCCUPATIONS Higher order 184 5 44 SERVICES occupations (SOC1- 3) Hinckley and Bosworth North Warwickshire Overall rank 208 146 153 Nuneaton and Bedworth

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.4.2 High technology employment Each of the local authorities is ranked highly in terms of employment within high technology sectors. The analysis is based on standard OECD definitions of high and medium technology, applied to 3 digit Standard Industrial Classification (SIC) groups. The profile of sectors, which is consistent with that identified by the LEP Network and is set out in full at Annex A, is heavily geared towards manufacturing based activities. In particular, Hinckley and Bosworth has retained a relatively large industrial manufacturing employment base, including sectors classified as high technology. A summary of high technology employment is set out in Table 2.16. It indicates that across the Cross-Border Partnership area there were estimated to be 8,886 people in employment within high technology sectors comprising around 7% of total employment. This exceeded levels of high technology employment for England as a whole.

Table 2.16: Employment within high-technology business sectors High tech employment % high tech employment 2009 2014 Change 2009 2014 Change Hinckley and Bosworth 2,974 3,613 21.5% 7.7% 8.6% +0.9 p.p. North Warwickshire 1,673 1,942 16.1% 4.3% 4.7% +0.4 p.p. Nuneaton and Bedworth 2,447 3,331 36.1% 6.1% 7.7% +1.6 p.p. Cross-Border Partnership 7,394 8,886 20.2% 6.3% 7.0% +0.7 p.p. England 742,638 732,860 -1.3% 3.1% 2.9% -0.2 p.p. Source: ONS Business Register and Employment Survey Figure 2.39 illustrates total employment within each of the identified high technology sectors for each of the local authority areas. It highlights a number of sectors where levels of employment at the local level significantly exceed employment at the national level. Key sectors within each local authority areas are as follows:  Hinckley and Bosworth – manufacture of special purpose machinery; instruments and appliances for measuring, testing and navigation; transport equipment not elsewhere classified; and other special-purpose machinery;  North Warwickshire – manufacture of motor vehicles; parts and accessories for motor vehicles; and electronics components and boards; and  Nuneaton and Bedworth – manufacture of parts and accessories for motor vehicles; air and spacecraft related machinery; domestic appliances; and industrial machinery and equipment. The scale of employment within motor manufacturing and related sectors reflects the presence of key employers within the area including Triumph and Caterpillar, alongside the proximity of the area to large scale operations within adjacent authority areas including Jaguar Land Rover. Within this context, there is a clear opportunity to build upon an area of significant local strength through investment in key assets – particularly MIRA.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.39: Percentage total employment in high technology sectors (2014)

Installation of industrial machinery and equipment Military Fighting Vehicles Bodies (Coachwork) For Motor Vehicles; Manufacture… Agricultural And Forestry Machinery Other General-Purpose Machinery Irradiation, Electromedical And Electrotherapeutic… Electronic Components And Boards Pesticides And Other Agrochemical Products Motor Vehicles Batteries And Accumulators Railway Locomotives And Rolling Stock Other Chemical Products Repair of fabricated metal products, machinery and… Computers And Peripheral Equipment Man-Made Fibres Parts And Accessories For Motor Vehicles Soap And Detergents, Cleaning And Polishing… Domestic Appliances Consumer Electronics Electric Lighting Equipment Other Electrical Equipment Other Special-Purpose Machinery Communication Equipment General Purpose Machinery Basic Chemicals, Fertilisers And Nitrogen Compounds,… Metal Forming Machinery And Machine Tools Instruments And Appliances For Measuring, Testing And… Optical Instruments And Photographic Equipment Pharmaceutical Preparations Air And Spacecraft And Related Machinery Agnetic And Optical Media Transport Equipment N.E.C. Paints, Varnishes And Similar Coatings, Printing Ink And… Wiring And Wiring Devices Basic Pharmaceutical Products Electric Motors, Generators, Transformers And…

0.0% 1.0% 2.0% 3.0% 4.0%

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership England

Source: ONS Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

High Technology employment within each of the local authority areas has increased over the period 2009 to 2014, in contrast to England where employment in these sectors has experienced a slight decline. Hinckley and Bosworth has experienced significant employment growth in these sectors. As illustrated in Figure 2.40, levels of employment in high technology sectors declined between 2009 and 2010 before increasing substantially in 2011. However, it is noted that levels of employment have declined slightly since 2012, bringing the overall level of growth over this period broadly in line with that of the wider LLEP area. Figure 2.40: Hinckley and Bosworth - Percentage high tech employment and indexed change in high tech employment

12% 140

10% 130

8% 120

6% 110 Index: Index: 2009=100 4% 100

2% 90

0% 80 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Hinckley and Bosworth Cross-Border Partnership Hinckley and Bosworth Cross-Border Partnership Leicester and Leicestershire England Leicester and Leicestershire England Source: ONS Business Register and Employment Survey Within Hinckley and Bosworth, local high technology sectors experiencing significant levels of growth over this period included the manufacture of special purpose machinery, the manufacture of transport equipment (not elsewhere classified) and the manufacture of general purpose machinery. By contrast, employment within a number of sectors contracted including the manufacture of air and spacecraft and the manufacture of parts and accessories for motor vehicles. Overall, levels of high technology employment within North Warwickshire have remained below the average for the Coventry and Warwickshire LEP area, reflecting the density of manufacturing activity – including motor sector manufacturing – across the wider area. However, high technology employment within North Warwickshire increased between 2009 and 2014 to a greater extent than at the LEP or regional level. As a result, levels of employment in these sectors in 2014 were higher in North Warwickshire than at the national level (Figure 2.41).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.41: North Warwickshire - Percentage high tech employment and indexed change in high tech employment

8% 140

7% 130 6% 120 5%

4% 110

3% Index: 2009=100 100 2% 90 1%

0% 80 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

North Warwickshire Cross-Border Partnership North Warwickshire Cross-Border Partnership Coventry and Warwickshire England Coventry and Warwickshire England Source: ONS Business Register and Employment Survey Over the period, growth in high technology sectors within North Warwickshire was driven by increases in employment in key sectors including the manufacture of parts and accessories for motor vehicles and the manufacture of instruments and appliances for measuring, testing and navigation. This growth was in part offset by falling employment in the manufacture of basic chemicals. As illustrated in Figure 2.42, levels of high technology employment within Nuneaton and Bedworth increased marginally between 2009 and 2013, before increasing very significantly in 2014. In 2014 the level of local employment within these sectors was, at 7.7%, greater than for comparator areas at the CWLEP area level and the national level. Figure 2.42: Nuneaton and Bedworth - Percentage high tech employment and indexed change in high tech employment

9% 140

8% 130 7%

6% 120

5% 110 4% Index: Index: 2009=100 3% 100

2% 90 1%

0% 80 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Nuneaton and Bedworth Cross-Border Partnership Nuneaton and Bedworth Cross-Border Partnership Coventry and Warwickshire England Coventry and Warwickshire England Source: ONS Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Key high-tech growth sectors within Nuneaton and Bedworth over this period included the manufacture of parts and accessories for motor vehicles, the manufacture of air and spacecraft and related machinery, the installation of industrial machinery and equipment and of railway locomotives. By contrast, employment in other high technology sectors relating to manufacture of electric motors and other electrical components declined significantly.

2.4.3 Knowledge intensive services The assessment uses the Eurostat definition of knowledge intensive service sectors based on the SIC2007 classification. While this approach provides a consistent means of assessing performance across different spatial areas, it has a number of limitations. In particular, this approach classifies all employees of a particular business based upon its principal activity even though only a proportion of the employees at the site may be engaged in knowledge intensive activity. A full list of SIC sectors included within the definition of knowledge intensive services is included at Annex B. A summary of local activity within the knowledge intensive industries sector is set out in Table 2.17. In total, there were just under 30,000 people employed within knowledge intensive service sectors across the Cross-Border Partnership in 2014 representing 23.8% of total employment. This is significantly lower than the average for England as a whole (35.1%), with particularly low levels of knowledge intensive service employment evident in North Warwickshire.

Table 2.17: Employment within knowledge intensive service sectors Knowledge intensive service % knowledge intensive service employment employment 2009 2014 Change 2009 2014 Change Hinckley and Bosworth 9,805 11,050 12.7% 25.2% 26.3% 1.1% North Warwickshire 7,592 6,607 -13.0% 19.4% 16.1% -3.3% Nuneaton and Bedworth 10,783 12,189 13.0% 26.8% 28.1% 1.4% Cross-Border Partnership 28,180 29,846 5.9% 23.8% 23.6% -0.2% England 8,113,817 8,818,425 8.7% 33.7% 35.1% 1.3% Source: ONS Business Register and Employment Survey Figure 2.43 sets out the percentage of total employment across the identified knowledge intensive service sectors. It highlights where levels of employment within each of the three authority areas are significantly above or below the national average. It is noted that across the Cross-Border Partnership area levels of employment within the financial services and real estate sectors are below the national average. In relation to other sectors, performance across the three authority areas varies significantly:  Hinckley and Bosworth – levels of employment in scientific research and development significantly exceed those for other authorities and England as a whole, potentially reflecting the presence of MIRA and other knowledge assets. However, for a number of

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

other sectors – notably human health activities – levels of employment within Hinckley and Bosworth are lower than the national average;  North Warwickshire – in 2013 levels of employment in North Warwickshire exceeded the national average in two notable knowledge intensive sectors including computer programming and rental and leasing activities. However, employment in other key sectors – particularly education, health and financial services – was significantly lower than the national average. This may in part reflect the presence of large health and education facilities within neighbouring authority areas;  Nuneaton and Bedworth – employment in the health and education sectors in Nuneaton and Bedworth exceeded the national average in 2014. However, for other key sectors including computer programming and legal and accounting services, employment levels were some way below the national average. Even allowing for variance in the levels of employment in human health and education, employment in knowledge intensive service sectors within Hinckley and Bosworth and North Warwickshire remains below the national average. These two sectors account for almost 70% of the knowledge intensive service sector employment within Nuneaton and Bedworth, reflecting the relatively low levels of employment within other knowledge based sectors.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.43: Percentage total employment in knowledge intensive service sectors (2014)

Water transport

Air transport

Telecommunications

Computer programming, consultancy and related activities

Information service activities

Financial service activities, except insurance and pension funding Insurance, reinsurance and pension funding, except compulsory social security

Activities auxiliary to financial services and insurance activities

Real estate activities

Legal and accounting activities

Activities of head offices; management consultancy activities

Architectural and engineering activities; technical testing and analysis

Scientific research and development

Advertising and market research

Other professional, scientific and technical activities

Veterinary activities

Rental and leasing activities

Education

Human health activities

Creative, arts and entertainment activities

Libraries, archives, museums and other cultural activities

0% 2% 4% 6% 8% 10% 12% % total employment

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership England

Source: ONS Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Across the Cross-Border Partnership area as a whole, absolute levels of employment within Knowledge intensive service sectors increased between 2009 and 2014, albeit at a lower rate than across Great Britain as a whole. However, as a proportion of total employment it is noted that knowledge based sectors declined slightly. Overall, levels of employment in knowledge intensive services within Hinckley and Bosworth increased by 13% between 2009 and 2014. A decline over the period to 2011 has been followed by significant employment growth (see Figure 2.44). This rate of growth exceeds that experienced across the Leicester and Leicestershire LEP area and England as a whole. However, levels of employment in knowledge intensive sectors remain significantly below those in comparator areas. Figure 2.44: Hinckley and Bosworth - Percentage high tech employment and indexed change in knowledge intensive service sector employment

40% 120

115 35% 110

30% 105

100

25% Index: 2009=100

20% 90

15% 85 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Hinckley and Bosworth Cross-Border Partnership Hinckley and Bosworth Cross-Border Partnership Leicester and Leicestershire England Leicester and Leicestershire England Source: ONS Business Register and Employment Survey Overall, this employment growth has been driven by increasing levels of employment in key sectors, particularly architectural and engineering services, legal and accounting services, scientific research and development, transport and education. By contrast there has been a significant overall decline in employment in a number of knowledge based sector including real estate, advertising and market research and the creative, arts and entertainment sector. Within North Warwickshire levels of employment in knowledge based services declined by 13% over the period from 2009 to 2014. As a percentage of total employment, these sectors accounted for 16.1% in 2014 reflecting a fall of 3.3 percentage points over levels in 2009 (see Figure 2.45). Levels of employment within these sectors remains very significantly lower than those across the wider Coventry and Warwickshire LEP area where knowledge intensive services employment remained relatively stable over this period.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.45: North Warwickshire - Percentage high tech employment and indexed change in knowledge intensive service sector employment

40% 120

115 35% 110

30% 105

100

25% Index: 2009=100

20% 90

15% 85 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

North Warwickshire Cross-Border Partnership North Warwickshire Cross-Border Partnership Coventry and Warwickshire England Coventry and Warwickshire England Source: ONS Business Register and Employment Survey Overall trends at the local level reflected the performance of a number of key sectors, notably telecommunications, rental and leasing activities, education and head office/management consultancy activities. The falls experienced in these sectors was only partially offset by growth in computer programming, real estate activities and the creative sector. While overall levels of employment in knowledge intensive services in Nuneaton and Bedworth remain below those across the Coventry and Warwickshire LEP area and the West Midlands as a whole, growth rates within the Borough have significantly exceeded those for comparator areas and England as a whole at 13% (see Figure 2.46). In particular, there was a significant increase in knowledge intensive service sector employment between 2010 and 2011. This growth has been driven by the human health sector, with an increase of almost 2,100 jobs over the period 2009 to 2013. By contrast, local employment in the education sector declined by around 400 jobs. Excluding these sectors, significant local growth was experienced in real estate and renting and leasing activities. By contrast a significant number of sectors experienced a small to moderate decline in employment, with this decline most evident in the activities of head offices and consultancy activities.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.46: Nuneaton and Bedworth - Percentage high tech employment and indexed change in knowledge intensive service sector employment

40% 120

115 35% 110

30% 105

100

25% Index: 2009=100

20% 90

15% 85 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

2.4.4 High-order occupations A relatively high proportion of the employment in high technology sectors and particularly knowledge intensive service sectors comprises higher order occupations comprising of:  Managers, directors and senior officials (Standard Occupational Classification (SOC) 1);  Professional occupations (SOC 2); and  Associate professional and technical occupations (SOC 3). Overall, across the Cross-Border Partnership area the proportion of residents employed in higher order occupations is, at around 38%, somewhat lower than the national average of almost 45% (Table 2.18). The proportion ranges from 32% in Nuneaton and Bedworth to 42.2% in Hinckley and Bosworth.

Table 2.18: Higher order occupations Residents in employment in % residents employed in higher higher order occupations order occupations 2004/05 2014/15 Change 2004/05 2014/15 Change Hinckley and Bosworth 20,200 21,400 5.9% 36.9% 42.2% 5.3 p.p. North Warwickshire 11,200 13,000 16.1% 35.7% 39.9% 4.2 p.p. Nuneaton and Bedworth 15,200 18,100 19.1% 26.8% 32.3% 5.5 p.p. Cross-Border Partnership 46,600 52,500 12.7% 32.6% 37.7% 5.1 p.p. England 9,684,700 11,589,200 19.7% 40.5% 44.8% 4.3 p.p. Source: ONS Annual Population Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The proportion of local residents employed in higher order occupations increased between 2005/05 and 2014/15 across each of the local authority areas within the Cross-Border Partnership. While trends within North Warwickshire and Nuneaton and Bedworth were broadly consistent with those at a national level, the level of absolute growth within Hinckley and Bosworth was significantly lower.

2.5 Place

2.5.1 EGC Index

(i) Current performance Current performance across the place indicators is variable within each of the authority areas. For North Warwickshire, the rankings reflect key elements of the local authority area which combines significant employment areas which draw in employment from across the wider area with a relatively small population residing in a semi-rural environment. By contrast, the other authority areas are dominated by a principal service centre – Hinckley and Nuneaton respectively. Rental values in both towns reflect this mainly local focus, and both areas have a middle ranking in relation to average rental value per hereditament. By contrast, reflecting lower concentrations of industrial activity and transport infrastructure, both Nuneaton and Bedworth and Hinckley and Bosworth benefit from relatively low levels of emissions per resident.

Table 2.19: Place - cross sectional analysis HBBC NWBC NBBC CROSS SECTIONAL ANALYSIS - PLACE

RV per hereditament 190 36 154 RV PER HEREDITAMENT 0 Superfast broadband 140 132 132 110 availability SUPERFAST BROADBAND PER CAPITA EMISSIONS 220 AVAILABILITY

Median house price 223 219 265 330

Ratio annual earnings 87 112 64 to house price RATIO OF MEDIAN HOUSE PRICE TO MEDIAN ANNUAL MEDIAN HOUSE PRICE Per capita emissions 115 218 75 EARNINGS

Hinckley and Bosworth Overall rank 146 118 91 North Warwickshire Nuneaton and Bedworth

(ii) Recent trends The longitudinal analysis indicates that overall, based upon recent trends, the performance of North Warwickshire and Nuneaton and Bedworth has worsened relative to other districts across England. Within Hinckley and Bosworth, the effects of limited house price growth were off-set by relative improvements in terms of the affordability of housing for local residents.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 2.20: Place - longitudinal analysis HBBC NWBC NBBC LONGITUDINAL ANALYSIS - PLACE 259 321 271 RV PER HEREDITAMENT RV per hereditament 0

Superfast broadband 134 132 132 110

availability SUPERFAST BROADBAND PER CAPITA EMISSIONS 220 AVAILABILITY 291 153 138 Median house price 330 Ratio annual earnings 18 320 165

to house price RATIO OF MEDIAN HOUSE PRICE TO MEDIAN ANNUAL MEDIAN HOUSE PRICE 68 320 165 EARNINGS Per capita emissions

Hinckley and Bosworth Overall rank 128 192 137 North Warwickshire Nuneaton and Bedworth

2.5.2 Urban rural classification The Rural-Urban Classification (2011) categorises a range of statistical and administrative units on the basis of physical settlement and related characteristics. A summary of the distribution of LSOA areas at the national (England and Wales) level is outlined in Table 2.21.

Table 2.21: Distribution of LSOAs by categorisation at the England and Wales level Classification Percentage of LSOAs Urban: Major Conurbation 33.2% Urban: Minor Conurbation 3.5% Urban: City and Town 45.3% Urban: City and Town in a Sparse Setting 0.3% Rural: Town and Fringe 9.2% Rural: Town and Fringe in a Sparse Setting 0.6% Rural: Village and Dispersed 7.2% Rural: Village and Dispersed in a Sparse Setting 0.9% Source: The 2011 rural-urban classification for small area geographies (Defra, DCLG, ONS) Analysis of LSOAs within the Cross-Border Partnership area, outlined in Table 2.22, highlights key differences in the character of each of the authority areas. In particular, while both Hinckley and Bosworth and North Warwickshire comprise a range of area types, Nuneaton and Bedworth is entirely categorised as being urban city and town. Hinckley and Bosworth has a more urban profile than North Warwickshire, where more than 50% of LSOAs are classified as rural town and fringe areas.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 2.22: LSOA areas by urban rural classification Urban: city and Rural: town and Rural: village and town fringe dispersed Hinckley and Bosworth 45 (68%) 14 (21%) 7 (11%) North Warwickshire 10 (26%) 20 (53%) 8 (21%) Nuneaton and Bedworth 81 (100%) 0 (0%) 0 (0%) Total Cross-Border Partnership area 136 (74%) 34 (18%) 15 (8%) Source: The 2011 rural-urban classification for small area geographies (Defra, DCLG, ONS) While a significant proportion of LSOAs within both North Warwickshire and particularly Hinckley and Bosworth are classified as urban, analysis of the spatial distribution of areas highlights that a significant proportion of both authority areas retains a rural character. Urban areas are focused around the main towns of Hinckley, Nuneaton and Atherstone, alongside parts of the wider Leicester conurbation to the far east of the Cross-Border Partnership area. Figure 2.47: Urban rural classification of LSOA areas within the Cross-Border Partnership area

Source: The 2011 rural-urban classification for small area geographies (Defra, DCLG, ONS)

2.5.3 Business rateable value Across the Cross-Border Partnership the combined rateable value of all hereditaments was estimated to be more than £250 million in 2013. This represented a 5% increase on the total

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 estimated rateable value across the area in 2008. On average, this represented an average rateable value per hereditament of £30,735. This is broadly consistent with the average rateable value per hereditament for England as a whole (£32,240). However, as illustrated in Table 2.23, there is a significant level of difference between the local authority areas within the Cross-Border Partnership in terms of rateable value per hereditament.

Table 2.23: Average rateable value per hereditament (2013) Average rental Total rateable value Total hereditaments value per (£ million) hereditament (£) Hinckley and Bosworth £71.57 2,897 £24,710 North Warwickshire £94.82 2,203 £43,050 Nuneaton and Bedworth £83.81 3,041 £27,560 England £32,240 Source: DCLG National non-domestic rates collected by councils The average rateable value per hereditament within Hinckley and Bosworth is somewhat lower than the national (England) and LEP average. Further to this, it remains lower than that of other districts within the Cross-Border Partnership (Figure 2.48). While the average rateable value per hereditament has remained relatively stable within Hinckley and Bosworth over the period 2008 to2013, indexed against national performance it has declined from 84% of the average for England as a whole in 2008 to 77% in 2013. Further analysis indicates that rateable value within the district remained relatively stable to 2012 following the rebasing in 2009, since when the rateable value has increased. Over the period the number of hereditaments has gradually increased following an initial decline, potentially attributable to wider economic pressures associated with the recession. Figure 2.48: Hinckley and Bosworth – Average rateable value per hereditament (2008-13) Rateable value per hereditament Indexed change 2008-2013 £35,000 108

106

£30,000 104

102

£25,000 100

Index: 2008=100 98

£20,000 96

£15,000 92 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Hinckley and Bosworth Cross-Border Partnership Rateable value Hereditaments RV per hereditament LLEP England Source: DCLG National non-domestic rates collected by councils

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The average rateable value per hereditament within North Warwickshire is significantly above the average for England and the Cross-Border Partnership area as a whole. Based on an initial review, it is suggested that this is attributable the presence of a number of very large hereditaments within the North Warwickshire area, particularly focused around the major employment zones of Hams Hall and Birch Coppice. While significantly exceeding values for comparator areas, it is noted that the average rateable value per hereditament within North Warwickshire has fallen by around 6% over the period 2008 to 2013. By contrast, the average rateable value at the England and LEP area levels increased over this period by 17% and 6% respectively. As illustrated in Figure 2.49, this decline reflects an overall increase in the number of hereditaments of 8% compared to an increase in the overall rateable value of just 2% within North Warwickshire. Figure 2.49: North Warwickshire – Average rateable value per hereditament (2008-13) Rateable value per hereditament Indexed change 2008-2013 £50,000 110

£45,000 105 £40,000

100 £35,000

£30,000

Index: 2008=100 95

£25,000 90 £20,000

£15,000 85 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 North Warwickshire Cross-Border Partnership Rateable value Hereditaments RV per hereditament CWLEP England Source: DCLG National non-domestic rates collected by councils Overall, the average rateable value per hereditament within Nuneaton and Bedworth remains somewhat lower than the average for the Coventry and Warwickshire LEP area and England as a whole. Alongside this, it is noted that the number of hereditaments per 1,000 residents is, at 24.1, significantly lower than the England average of 32.9. Over the period 2008 to 2013 Nuneaton and Bedworth has experienced a moderate increase in total rateable value of around 6.5%. Over this period the number of hereditaments has also increased marginally. However, levels of growth remain significantly below that experienced across the wider area (Figure 2.50).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.50: Nuneaton and Bedworth – Average rateable value per hereditament (2008-13) Rateable value per hereditament Indexed change 2008-2013 £40,000 110

108 £35,000 106

104 £30,000 102

£25,000 Index: 2008=100 100

98 £20,000 96

£15,000 94 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Nuneaton and Bedworth Cross-Border Partnership Rateable value Hereditaments RV per hereditament CWLEP England Source: DCLG National non-domestic rates collected by councils

2.5.4 ICT (superfast broadband) Data for key ICT indicators is released at the County level. This has been used as a proxy for district level performance within the EGCI. Figure 2.51 sets out the key measures of ICT performance for Leicestershire and Warwickshire over the period 2011 to 2013. As a result of ongoing investment, superfast broadband availability had reached 70% and 72% of all users (resident and business) by 2013. As a result of funding granted under the LGF, Leicestershire County Council have established a target to achieve more than 95% availability. For other indicators, performance within Leicestershire and Warwickshire has been relatively comparable. Within both areas there has been a significant reduction in the proportion of end users not receiving 2Mb/s as average sync speeds have increased to around 17Mb/s across both areas. By 2013 it was estimated that total take-up of broadband (including superfast broadband) had exceeded 77% of end users in Leicestershire and 76% of end users in Warwickshire.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.51: ICT Broadband indicatorsPercentage for Leicestershire not receiving and Warwickshire 2Mb/s Superfast broadband20% availability Percentage not receiving 2Mb/s 74% 20% 18% 18% 72% 16% 16% 70% 14% 14% 68% 12% 12% 10% 66% 10% 8% 8% 64% 6% 6% 62% 4% 4% 60% 2% 2%

58% 0% 0% Leicestershire WarwickshireLeicestershire WarwickshireLeicestershire Warwickshire

2011 2012 2013 Average sync speed Total take-up (including superfast) 20 78%

18 76% 16

14 74% 12

10 72% Mbit/s 8 70% 6

4 68% 2

0 66% Leicestershire Warwickshire Leicestershire Warwickshire

Source: Ofcom – UK broadband speed data

2.5.5 Housing and communities

(i) Housing market characteristics A relatively high proportion of households in the Cross-Border Partnership area are classed within the 2011 Census as being in rural locations (27% compared to an England figure of 18%). This is due to the significant number of rural households in North Warwickshire and, to a lesser extent, Hinckley and Bosworth. In contrast, all of the households in Nuneaton and Bedworth are classed as being in urban locations (see Figure 2.52)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.52: Accommodation type by Urban-Rural classification 100

60 % 40

0 North Warwickshire Nuneaton and Hinckley and Cross-Border England Bedworth Bosworth Partnership

Urban Rural

Source: ONS, 2011 Census The households within the three Cross-Border Partnership areas are predominantly owner- occupied as shown in Figure 2.53, and there is a greater proportion of owned properties compared with the average for England as a whole – in excess of 70% compared with 62%. There is a correspondingly smaller percentage of both social rented and private rented properties. Figure 2.53: Housing tenure and type

Tenure, 2011 (%) Accommodation Type, 2011 (%) 90 45

80 40

70 35

60 30

50 25

40 20

30 15

20 10

10 5

0 0 Hinckley and North Nuneaton and Cross-Border England Hinckley and North Nuneaton and Cross-Border England Bosworth Warwickshire Bedworth Partnership Bosworth Warwickshire Bedworth Partnership

Owned Social rented Private rented Living rent free Detached Semi-detached Terraced Flat, maisonette or apartment

Source: ONS, 2011 Census Figure 2.53 also provides a breakdown of accommodation type within the Cross-Border Partnership area. This shows a higher proportion of detached and semi-detached properties in all three of the local authorities compared with England, particularly in Hinckley and Bosworth. There are comparatively few flats, maisonettes or apartments. Linked to this, each of the local authorities within the Cross-Border Partnership area has a relatively large proportion of 3+ bedroom properties. Between 2003 and 2013 the total stock of dwellings across the Cross-Border Partnership area increased by 7.7% from around 120,000 units to around 129,300 units (Table 2.24). While significant, this level of growth was slightly lower than the average for England as a whole (8.0%).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Within the Cross-Border Partnership, the most significant level of net growth occurred within Hinckley and Bosworth with an increase of 4,160 units over the period (equating to 9.6% over 2003 levels). Levels of net growth were also significant in Nuneaton and Bedworth, where the total stock of dwellings in 2013 was 4,030 (8.0%) greater than in 2003. However, net growth in the number of dwellings was significantly lower in North Warwickshire, with the number of units in 2013 just over 1,000 (4.1%) greater than 2003 levels.

Table 2.24: Total dwelling stock and housing density Housing density – residents per Total dwelling stock dwelling house 2003 2013 Change (%) 2003 2013 Change Hinckley and Bosworth 43,350 47,510 9.6% 2.33 2.24 -3.9% North Warwickshire 26,070 27,150 4.1% 2.37 2.29 -3.4% Nuneaton and Bedworth 50,660 54,690 8.0% 2.38 2.30 -3.1% Cross-Border Partnership 120,080 129,350 7.7% 2.36 2.28 -3.5% England 8.0% 2.32 2.32 -0.1% Source: DCLG Live Table 125; ONS mid-year population estimates In part as a result of this increase in the total stock of dwellings, alongside relatively low rates of population growth, over this period the average household size – in terms of the number of residents per unit – declined from 2.36 to 2.28 (-3.5%) across the Cross-Border Partnership area between 2003 and 2013. This decline was particularly apparent within Hinckley and Bosworth, reflecting the higher levels of net housing growth, where the average number of residents per dwelling house declined by almost 4% to 2.24. This is lower than the national average of 2.32 residents per dwelling house. In 2012 there were approximately 3,015 property sales across the Cross-Border Partnership area. This comprised approximately 2.4% of the total dwelling stock within the area. Within the Cross- Border Partnership area the number of sales ranged from 2.8% of the total dwelling stock in Hinckley and Bosworth to 2.2% within North Warwickshire. Across England as a whole, the number of units sold in 2012 equated to 2.7% of the total stock of dwellings. As illustrated in Figure 2.54, activity within both the local and the national housing market remained subdued in 2012. Following the recession, with significantly tighter lending conditions resulting in restricted access to mortgage finance, the number of transactions reduced to around half of the levels recorded prior to the downturn.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.54: House sales as a percentage of total dwelling stock 7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth England

Source: DCLG Live Table 125 and 588

(ii) House prices and affordability The median house price within Hinckley and Bosworth and North Warwickshire was in excess of £140,000, while the median house price within Nuneaton and Bedworth was approximately £125,000. This was somewhat lower than the average for England (£180,000) as well as the county areas of Leicestershire (£155,000) and Warwickshire (£180,000). As illustrated in Figure 2.55, across the Cross-Border Partnership the median house price within each of the authorities was lower than the median house price for England and comparators at the County level. In particular, median house prices for Nuneaton and Bedworth were around 70% of the national average, while those for Hinckley and Bosworth and North Warwickshire were around 80% of the national average. The gap between Cross-Border Partnership area and the national average was somewhat narrower for lower quartile house prices, with lower quartile prices at around 90% of the national average within Hinckley and Bosworth and North Warwickshire and 75% within Nuneaton and Bedworth.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.55: Median and lower quartile house price within the Cross-Border Partnership and comparator areas (2012) £200,000

£180,000

£160,000

£140,000

£120,000

£100,000

£80,000

£60,000

£40,000

£20,000

£0 Hinckley and North Warwickshire Nuneaton and Leicestershire Warwickshire England Bosworth Bedworth

Median Lower Quartile

Source: DCLG Live Table 586 and 587 As illustrated in Figure 2.56, median house prices within Hinckley and Bosworth have remained at a relatively similar, albeit slightly lower, level than the average for Leicestershire. The pattern of price growth at the local level was broadly consistent with national trends, with relatively static prices from 2007 following a period of growth to 2007. Between 2003 and 2012 median house prices within Hinckley and Bosworth increased by 23% compared to 24% across Leicestershire and 38% across England as a whole. Lower quartile house prices increased at a greater rate over the period, although lower quartile house price growth of 30% remained lower than the national average (47%). Figure 2.56: Hinckley and Bosworth – changes in median and lower quartile house prices £200,000

£180,000

£160,000

£140,000

£120,000

£100,000

£80,000

£60,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Lower Quartile Hinckley and Bosworth Median Hinckley and Bosworth Lower Quartile Leicestershire Median Leicestershire Lower Quartile England Median England Source: DCLG Live Table 586 and 587 House prices within Warwickshire as a whole are broadly consistent with those for England. However, as illustrated in Figure 2.57, median and lower quartile house prices within North

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Warwickshire are significantly lower than the county average. However, median and lower quartile price growth at the North Warwickshire level has, at 34% and 42% respectively, remained consistent with growth at the County level and only marginally lower than national growth rates. Figure 2.57: North Warwickshire – changes in median and lower quartile house prices £200,000

£180,000

£160,000

£140,000

£120,000

£100,000

£80,000

£60,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Lower Quartile North Warwickshire Median North Warwickshire Lower Quartile Warwickshire Median Warwickshire Lower Quartile England Median England

Source: DCLG Live Table 586 and 587 Similarly, house price growth has been broadly consistent with change across Warwickshire as a whole and only slightly lower than national trends. However, as illustrated in Figure 2.58, median house prices within the area remain significantly lower than those for comparator areas. Indeed, median house prices within Nuneaton and Bedworth are equivalent to lower quartile prices at the County and national levels. Figure 2.58: Nuneaton and Bedworth – changes in median and lower quartile house prices £200,000

£180,000

£160,000

£140,000

£120,000

£100,000

£80,000

£60,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Lower Quartile Nuneaton and Bedworth Median Nuneaton and Bedworth Lower Quartile Warwickshire Median Warwickshire Lower Quartile England Median England Source: DCLG Live Table 586 and 587 As values within the Cross-Border Partnership area are lower than levels at the national and county level, housing within each of the three districts remains relatively affordable. In 2013, median house prices were between 5.2 times median annual earnings within Nuneaton and Bedworth and 6.0 times median annual earnings within North Warwickshire. This compares to a ratio of median house prices to median annual earnings of 6.7 for England as a whole. The ratio

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 of median house prices to median annual earnings within Hinckley and Bosworth was 5.6 in 2013. It is noted that this ratio has declined within Hinckley and Bosworth since 2003 while in other areas the trend has been for growth. Figure 2.59: Ratio of median house price to median annual earnings 7.5

7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth England Source: DCLG Live Table 577 The distribution of housing stock, by council tax band, for each of the three local authorities is shown in Figure 2.60, where A represents the lower cost housing and H refers to the highest valued properties. The data shows that the Cross-Border Partnership area as a whole has a high proportion of homes in lower council tax bands (A-B) compared to the overall England total (54% of properties fall within these bands, whereas for England it is 44%). The relatively high proportion of lower band properties and corresponding low proportion of higher band properties is particularly prevalent in Nuneaton and Bedworth, with only 0.3% of homes being classed as bands G-H, compared to an England average of 4.1% (the figures for Hinckley and Bosworth and North Warwickshire are 2.2% and 2.8% respectively). Figure 2.60: Housing stock by council tax band

Hinckley and Bosworth

North Warwickshire

Nuneaton and Bedworth

Cross-Border Partnership

England

0% 20% 40% 60% 80% 100% Band A / B Band C / D Band E / F Band G / H

Source: ONS, Neighbourhood Statistics

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

2.5.6 Commercial property market The Hinckley and Bosworth Employment Land and Premise Review (July 2013) noted that the area has a primarily local property market in both the industrial and office sectors. The industrial market is far larger than the office sector. Any inward investment tends to come from the logistics sector and there is evidence of reasonable demand for the next phase of Logix Park (Hinckley Commercial Park). The Review identified a shortage of employment land across Leicestershire and any viable development sites are generally being held by developers in anticipation of an improving market. Industrial need is for modern moderate/good quality units of up to 1,000 sq m. The current absence of such provision is seeing businesses looking to relocate outside the Borough, particularly to neighbouring areas in the West Midlands. There is a surplus of older industrial factory and mill space in the main towns. The office market generally meets the needs of local service sector businesses and provides ancillary space for existing industrial firms. Most provision is in the form of small business centres, the majority of which are performing well at present. Demand is for 0-100 sq m leasehold suites. In terms of employment land supply, the Review states that there is a headline total of 98.56 ha, made up of eleven sites. However most of the land is not readily available for development Furthermore, some areas are at risk of not actually coming forward because of continuing protection for long-term possible development by the landowner/leaseholder interests of Caterpillar/Neovia. In addition, the land at the MIRA Enterprise Zone will primarily only be available to companies undertaking research and development activities associated with transport technology industry sectors. A more realistic assessment is that there is 82.77 ha comprising of ten sites. There is a further 11.4 ha of employment land in the pipeline contained within the Earl Shilton and Barwell Strategic Urban Extension (SUEs). This would add to the realistic land supply of 82.77 ha, taking it up to 94.17 ha. Amongst the recommendations of the Review are that Council should work with neighbouring authorities on issues in which interests will overlap, notably the growth of the MIRA Technology Park Enterprise Zone and the development of the A5 Corridor The Nuneaton and Bedworth Borough Employment Land Review (April 2010) forecast that total demand for employment land within the Borough up to 2026 was estimated to be between 57 ha and 144 ha, depending on the forecasting scenario used. The Review identified existing supply of employment land to be around 273 ha. In addition, the identified supply of proposed employment land totalled around 45 ha, reducing to 38 ha after removing undeveloped sites that had been allocated for 15 years or more. In terms of future requirements, the additional employment land requirements (on top of those sites that are already identified in the supply) was estimated to be approximately 36 ha, evenly split between B1a/b, B1c/B2 and B8 requirements. The study considered potential sites for locating a Regional Investment Site (RIS) within the Borough. It recommended that the local authority should seek to develop an RIS at either Junction 3 of the M6 or in the Bermuda / Griff area.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The Nuneaton and Bedworth Borough Plan Preferred Options paper (2013) outlines the targets for the amount of new development in the Borough over the period to 2028. These include:  75 ha of land for employment;  7,900 new homes, including 4,550 homes located on greenfield sites; and  30,000 sq m of office space in Nuneaton town centre. The North Warwickshire Employment Land Review Update (September 2013) states that the logistics sector (which is a substantial part of the local economic structure) will continue to play a major role in the local and sub-regional economy. In addition to that, the study considers there is a strategic case for actively broadening the business base by tapping into emerging sectors and facilitating further small business growth. The Review Update identifies strong current and future demand for distribution and logistics space and a shortage of supply, both in terms of suitable accommodation and readily available and consented land. Logistics demand consists of national / regional as well as local demand. In terms of future employment land requirements, the forecasts indicate that there is a demand for between 212 and 410 ha of employment land. However, these forecasts are based on the land that would be required not only by local business growth but also the continuing desire for national companies to locate within the “Golden Triangle”. Therefore, the regional element of demand is capable of being met anywhere across the region rather than specifically in North Warwickshire and should be jointly planned for at the sub-regional and even regional level. By disaggregating the local and regional elements of future demand, the Review Update recommends that North Warwickshire Council should make provision for the delivery of 58 ha of employment land over 2011-29 plan period in order to support local employment growth. This is broken down as follows:  13 ha of land for B1 office and R&D uses (B1a/ B1b);  12 ha of land for industrial uses (B1c/ B2); and  33 ha of land for land for warehouse / distribution uses (B8). Based on the above future requirements and taking account of completions, the Review Update concludes that there is a requirement to allocate at least 29 ha of additional employment land within the North Warwickshire Local Plan in order to meet assessed local needs. The Review Update recommends that the Council considers measures and opportunities to encourage office space as an element of mixed-use schemes in accessible locations while focusing the majority of future land allocations on meeting local industrial and distribution demands, particularly in respect of small/medium sized suites and modern, quality space suited towards high tech industry.

2.5.7 Energy and emissions Overall across the Cross-Border Partnership it is estimated per capita emissions of carbon dioxide and other greenhouse gasses were 8.8 tonnes in 2013. This is significantly above the average for

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

England as a whole of 7.0 tonnes per capita. Within the Cross-Border Partnership, while per capita emissions within Hinckley and Bosworth and Nuneaton and Bedworth were either consistent with or below the national average (7.3 tonnes and 5.3 tonnes per capita respectively), those within North Warwickshire were more than double those for North Warwickshire. Further to this, as Table 2.25 illustrates, the reduction in carbon emissions (both in absolute terms and on a per capital basis) at the North Warwickshire level has been limited relative to performance at the wider Cross-Border Partnership and national levels.

Table 2.25: Total and per capita carbon dioxide emissions Total CO2 equivalent (tonnes ‘000) CO2 emissions per capita 2005 2013 Change (%) 2005 2013 Change Hinckley and Bosworth 939.1 772.7 -17.7% 9.2 7.3 -20.6% North Warwickshire 1,172.6 1,135.5 -3.2% 18.9 18.3 -3.6% Nuneaton and Bedworth 768.3 669.7 -12.8% 6.3 5.3 -16.2% Cross-Border Partnership 2,879.9 2,577.8 -10.5% 10.1 8.8 -13.2% England -13.5% 8.5 7.0 -18.2% Source: DECC, UK greenhouse gas emissions statistics Figure 2.617 sets out the components of carbon dioxide emissions originating within Hinckley and Bosworth by source. While the overall level of per capita emissions is broadly comparable with the average for England, the local profile is skewed towards transport emissions which account for an estimated 37% of emissions (compared to the England average of 27%). By contrast, the proportion accounted for by industry and other commercial activity is estimated to be significantly lower at the local level (31% compared to 41% for England as a whole). Figure 2.61: Hinckley and Bosworth – CO2 (tonnes) per capita

9.0 10.0

8.0 9.0 7.0

6.0 8.0

5.0 7.0 4.0

3.0 6.0 2.0 5.0 1.0

0.0 4.0 Hinckley and Leicestershire East Midlands England Bosworth 2005 2006 2007 2008 2009 2010 2011 2012 Hinckley and Bosworth Leicestershire Industry and Commercial Domestic Transport East Midlands England Source: DECC, UK greenhouse gas emissions statistics

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.57 also illustrates the extent of the decline in per capita emissions over the period2005 to 2012. While the decline experienced within Hinckley and Bosworth is broadly consistent with the wider national trend, overall the local trend has been more significant. Levels of per capita emissions are significantly higher in North Warwickshire than in other areas of the Cross-Border Partnership and wider comparator areas (Figure 2.58). While the level of emissions attributable to domestic sources is broadly comparable with comparator areas including Warwickshire and the West Midlands, the level of per capita emissions attributable to industry and commercial activity and transport is significantly higher. In particular, per capita emissions attributable to transport are more than five times higher within North Warwickshire than across England as a whole. This reflects the density of transport infrastructure located within or partially within the district. Figure 2.62 also highlights the relative stability of per capita emissions within North Warwickshire over the period 2005 to 2012. While per capita emissions at the national and regional levels decreased by 18% and 17% respectively over the period 2005 to 2012, those at the North Warwickshire level declined by 4%. Figure 2.62: North Warwickshire – CO2 emissions (tonnes) per capita

20.0 22.0

18.0 20.0

16.0 18.0 14.0 16.0 12.0 14.0 10.0 12.0 8.0

6.0 10.0

4.0 8.0

2.0 6.0 0.0 4.0 North Warwickshire West Midlands England Warwickshire 2005 2006 2007 2008 2009 2010 2011 2012 North Warwickshire Warwickshire Industry and Commercial Domestic Transport West Midlands England Source: DECC, UK greenhouse gas emissions statistics Overall, levels of per capita emissions within Nuneaton and Bedworth were 5.3 tonnes in 2012. This was lower than within comparator areas including England and the West Midlands (7.0 tonnes and 6.9 tonnes per annum) respectively. This disparity can mainly be attributed to low levels of industrial and other commercial activity which is around half the national rate at the local level.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 2.63: Nuneaton and Bedworth – CO2 emissions (tonnes) per capita

12.0 14.0 13.0

10.0 12.0

11.0 8.0 10.0

6.0 9.0 8.0 4.0 7.0

6.0 2.0 5.0

0.0 4.0 Nuneaton and Warwickshire West Midlands England 2005 2006 2007 2008 2009 2010 2011 2012 Bedworth Nuneaton and Bedworth Warwickshire Industry and Commercial Domestic Transport West Midlands England

Source: DECC, UK greenhouse gas emissions statistics

2.5.8 Deprivation – Living environment Living environment comprises one of the domains of the 2015 Index of Multiple Deprivation. This domain measures the quality of individuals’ immediate surroundings both within and outside the home. The indicators fall into two sub-domains: the ‘indoors’ living environment, which measures the quality of housing, and the ‘outdoors’ living environment which contains two measures relating to air quality and road traffic accidents. While it is based on data published in or prior to 2015, the measure of living environment deprivation provides an indicative assessment of the quality of place at the sub-local authority level. The analysis indicates that for each of the local authorities, the proportion of LSOA areas ranked within the bottom 10% nationally is relatively low. Overall, Nuneaton and Bedworth has the most extensive areas of severe living environment deprivation, while levels of deprivation within Hinckley and Bosworth are relatively concentrated, with the majority of the Borough experiencing low levels of living environmentChart deprivation. Title Figure 2.64: LSOA deprivation – Living environment domain

B Nuneaton and Bedworth

North Warwickshire A

Hinckley and Bosworth 0 0.5 1 1.5 2 2.5

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Most deprived 10% LSOAs Least deprived 10% LSOAs Source: 2015 Index of Multiple Deprivation

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

3 Economic activity

3.1 Introduction This section provides a cross-sectional and longitudinal assessment of a range of indicators representing economic activity in terms of employment, Gross Value Added and labour productivity.

3.2 EGC Index

3.2.1 Current performance In terms of overall performance, North Warwickshire is ranked in the top third of the 325 district authorities within England in terms of economic activity (Table 3.1). In particular this reflects the significant levels of employment within the district relative to its resident population. Hinckley and Bosworth is ranked within the middle third while Nuneaton and Bedworth is ranked within the bottom third of local authority district areas based on the identified indicators.

Table 3.1: Economic activity - cross sectional CROSS SECTIONAL ANALYSIS - ECONOMIC OUTPUT analysis GROSS VALUE ADDED PER HECTARE HBBC NWBC NBBC 0 Gross Value Added 110 214 218 123 per hectare 220

EMPLOYEE RESIDENT GROSS VALUE ADDED Gross Value Added 330 184 227 211 RATIO PER EMPLOYEE per employee

Employment rate 131 46 280

Employee resident 194 19 260 ratio EMPLOYMENT RATE Hinckley and Bosworth Overall rank 180 99 268 North Warwickshire Nuneaton and Bedworth

3.2.2 Recent trends While the performance of Nuneaton and Bedworth is below the national mid-point in terms of rankings, there is evidence that the district has nevertheless enjoyed a significant improvement across a number of economic activity indicators over recent years. In particular, the district is ranked within the top quartile nationally in terms of improvement in GVA and employee resident ratio (see Table 3.2). North Warwickshire has also performed strongly in terms of recent trends. By contrast, both Hinckley and Bosworth is ranked at below the national mid-point in terms of recent improvements in economic activity. This reflects mixed performance in terms of both employment and GVA.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.2: Economic activity - longitudinal LONGITUDINAL ANALYSIS - ECONOMIC OUTPUT analysis GROSS VALUE ADDED PER HECTARE 0 HBBC NWBC NBBC 110 Gross Value Added 132 137 39 220

GROSS VALUE ADDED Gross Value Added per EMPLOYMENT CHANGE 330 233 176 82 PER EMPLOYEE employee

Employment rate 304 69 264

Employee resident 67 124 72 EMPLOYMENT RATE ratio Hinckley and Bosworth Overall rank 207 87 67 North Warwickshire Nuneaton and Bedworth

3.3 Employment

3.3.1 Economic activity and employment The economic activity rate is a measure of the proportion of the resident working-age population of an area in employment or unemployed, but excludes those who are economically inactive (for example students, carers or those with limiting heath conditions). The employment rate is the proportion of the resident working-age population of an area in employment. Overall, the economic activity rate for the Cross-Border Partnership area is slightly lower than across England as a whole, while the employment rate is slightly higher than the national average (see Table 3.3). Rates of economic activity and employment within both North Warwickshire and Hinckley and Bosworth exceed those for England as a whole, while rates within Nuneaton and Bedworth are lower.

Table 3.4: Economic activity and employment rate Economic Activity Rate Employment Rate 2004/05 2014/15 Change (p.p.) 2004/05 2014/15 Change (p.p.) Hinckley and Bosworth 85.0% 80.8% -4.2% 82.0% 76.2% -5.7% North Warwickshire 79.2% 81.6% 2.5% 76.9% 80.4% 3.4% Nuneaton and Bedworth 76.0% 71.4% -4.7% 72.2% 69.1% -3.1% Cross-Border Partnership 79.9% 76.9% -3.0% 76.7% 74.1% -2.7% LLEP 77.8% 76.0% -1.8% 74.7% 71.6% -3.1% CWLEP 76.8% 76.2% -0.6% 73.9% 73.4% -0.4% England 76.6% 77.7% 1.1% 72.9% 73.3% 0.3% Source: Annual Population Survey Rates of economic activity and employment declined within the Cross-Border Partnership area by approximately 3 percentage points over the period from 2004/05 to 2014/15. This declined was in contrast to trends for England as a whole where rates of economic activity and employment

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 increased marginally. Within the Cross-Border Partnership area, the increase in rates of economic activity and employment within North Warwickshire was offset by declines within both Hinckley and Bosworth and Nuneaton and Bedworth. Within Hinckley and Bosworth there has been a small decline in levels of economic activity (from 82.3% of the working age population to 80.8%) over the period 2005/06 to 2014/15, and a more significant decline in the employment rate over this period (79.2% to 76.2%). Over the same period, the economic activity rate and the employment rate across England as a whole increased marginally (Figure 3.1). Despite this, the economic activity rate and the employment rate within the Borough remain significantly higher than the average for England and the wider LLEP area. Figure 3.1: Economic and employment rate within Hinckley and Bosworth and comparator areas 85%

80%

75% Chart Title 12 70% 10 65% 8 6 60% 4 2 55% 0 a s d 50% 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 North Warwickshire Economic activity rate North Warwickshire Employment rate Cross-Border Partnership Economic activity rate Cross-Border Partnership Employment rate LLEP Economic activity rate LLEP Employment rate England Economic activity rate England Employment rate Source: Annual Population Survey The most recent data for the year 2014/15 indicates that both the economic employment rate and employment rate within North Warwickshire are significantly higher than the average for the wider CWLEP area and England as a whole at 81.6% and 80.3% respectively. Further to this, these rates represent a slight increase on levels for 2005/06. However, as illustrated in Figure 3.2, both the economic activity rate and employment rate have been subject to significant variability over this period. It is noted that, reflecting the smaller size of the North Warwickshire population, overall confidence levels associated with this data (based on the sample size) are lower. It is notable that over the period from 2011/12 to 2013/14, levels of economic activity and employment within North Warwickshire were estimated to be lower than the average for comparator areas.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.2: Economic activity and employment rate within North Warwickshire and comparator areas 90%

85% 80% Chart Title 75%12 10 70% 8 65%6 4 60%2 55%0 a s d 50% 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 North Warwickshire Economic activity rate North Warwickshire Employment rate Cross-Border Partnership Economic activity rate Cross-Border Partnership Employment rate LLEP Economic activity rate LLEP Employment rate England Economic activity rate England Employment rate Source: Annual Population Survey The economic activity rate within Nuneaton and Bedworth increased over the period 2005/06 to 2012/13 from 79% to 82% (in excess of the average for England), before falling to 71% in 2014/15 (significantly lower than the England average). This trend was mirrored in the employment rate which increased slightly from 75% in 2005/06 to 76% in 2012/13, before dropping below the national average to 69% in 2014/15. Figure 3.3: Economic activity and employment rate within Nuneaton and Bedworth 85%

80%

75% Chart Title 70% 12 10 65% 8 6 60% 4 2 55% 0 a s d 50% 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Nuneaton and Bedworth Economic activity rate Nuneaton and Bedworth Employment rate Cross-Border Partnership Economic activity rate Cross-Border Partnership Employment rate LLEP Economic activity rate LLEP Employment rate England Economic activity rate England Employment rate Source: Annual Population Survey

3.3.2 Employment

(i) Total workplace based employment Overall employment across the Cross-Border Partnership area was estimated to be 126,200 in 2014 (see Table 3.1). Levels of employment within each of the local authority areas are broadly similar, ranging from 41,000 in North Warwickshire to 43,300 in Nuneaton and Bedworth.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

While North Warwickshire has slightly lower levels of overall employment, job density (as measured by employment as a proportion of working age population) within this area is particularly high with levels of employment higher than the number of working age residents. In contrast, the job density in Hinckley and Bosworth and Nuneaton and Bedworth is below the national average. As shown in Table 3.5, all three local authority areas have experienced a relatively large increase in job density over the period 2010 to 2014, although this is partially a factor of relative performance in terms of working age population (see Section 2.3).

Table 3.5: Total employment and employment per 1,000 working-age residents Employment Employment per 1,000 working age residents 2010 2014 Change (%) 2010 2014 Change (%) Hinckley and Bosworth 39,100 41,900 7% 582 630 8% North Warwickshire 38,600 41,000 6% 968 1,057 9% Nuneaton and Bedworth 39,900 43,300 8% 498 548 10% Cross-Border Partnership 117,700 126,200 7% 629 685 9% LLEP 439,500 451,900 3% 692 701 1% CWLEP 405,300 433,800 7% 734 769 5% England 23,982,000 25,151,200 5% 703 730 4% Source: ONS, BRES Overall, employment growth across the Cross-Border Partnership area equated to 7% on levels in 2010. This was a higher growth rate than the national figure (5%). Of the three local authority areas, Nuneaton and Bedworth experienced the largest rise in employment, although all three areas saw relatively strong growth over the five year period as a whole. Within individual local authority areas – notably North Warwickshire – the significant increase between 2013 and 2014 was preceded by a fall in levels of employment between 2011 and 2013 (Figure 2.4). This potentially signals the sensitivity of employment levels to shocks reflecting the importance of large employers within North Warwickshire. Within Hinckley and Bosworth total employment was estimated to be 41,900 in 2014. This represented a rate of 630 workers per 1,000 working age residents. As illustrated in Figure 3.4, this level of employment is lower than the average for Cross-Border Partnership as well as sub- regional and national comparators. This gap is in spite of a significant increase in levels of employment, with employment levels almost 1,800 (7%) higher in 2014.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.4: Employment levels and change within Hinckley and Bosworth Employment per 1,000 working-age residents Indexed change in employment 110 1200 Chart Title 108 1100 108 106 1000 106 104 104900 102 102800 100 100 98 700 98 96 600 96 94 500 94 92 92400 90 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Hinckley and Bosworth Cross-Border Partnership LLEP England Source: Business Register and Employment Survey While in absolute terms levels of employment within North Warwickshire are lower than for other districts within Cross-Border Partnership area, the number of workers per 1,000 working age residents, at almost 1,060, significantly exceeds the average for the Cross-Border Partnership as well as that for the CWLEP area and England (769 and 730 respectively). As illustrated in Figure 3.5, North Warwickshire experienced a very significant decline in levels of employment of around 4% per annum over a two year period between 2011 and 2013. However, employment levels increased by an estimated 12% in 2014. Figure 3.5: Employment levels and change within North Warwickshire Indexed change in employment Employment per 1,000 working-age residentsChart Title 1200 110 110 108 1100 108 106 106 1000 104 104 900 102 102 100 800 100 98 98 700 96 96 94 600 94 92 500 90 92 88 400 90 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 North Warwickshire Cross-Border Partnership CWLEP England Source: Business Register and Employment Survey Overall, levels of employment within the Cross-Border Partnership area are highest is Nuneaton and Bedworth at almost 43,300 in 2014 (Figure 3.6). Despite this, the number of workers per 1,000 working age residents remains relatively low at under 550. Total employment increased by more than 8% between 2010 and 2014 (the highest level of growth within the Cross-Border Partnership).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.6: Employment levels and change within Nuneaton and Bedworth Employment per 1,000 working-age residents Indexed change in employment 1200 Chart Title110 108 1101100 106 1081000 104 106 900 102 104 800 100 102 98 700 100 96 600 98 94 96500 92 94400 90 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Nuneaton and Bedworth Cross-Border Partnership CWLEP England Source: Business Register and Employment Survey Figure 3.7 sets out a detailed analysis of absolute employment change over this period for small areas within the Cross-Border Partnership area over the period 2009 to 2013. Over the period employment growth has been focused within key employment locations including the M42 corridor (notably at Birch Coppice) alongside business parks to the west of Hinckley town centre and Nuneaton. A number of more rural areas have also experienced relatively significant employment growth (notably around Bosworth and to the south of North Warwickshire). However, it is noted that a number of rural areas have also seen relatively significant employment decline.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.7: Estimated employment change between 2009 and 2013 for small areas within the Cross- Border Partnership

Source: Business Register and Employment Survey

(ii) Full time and part time employment The growth in overall employment has principally been driven by an increase in full-time jobs, which have increased by 11% between 2010 and 2014 within the Cross-Border Partnership area. The number of part-time jobs has remained broadly stable. In comparison, at the national level, there has been an increase in full-time and part-time jobs of 6% and 3% respectively. Reflecting this trend, full-time jobs now account for 70% of total employment within the Cross- Border Partnership, a marginally higher proportion than at the national level. However, as set out in Figure 3.8, there is a significant degree of variance between each of the local authority areas. While trends within Hinckley and Bosworth are broadly consistent with the national average, full- time jobs account for a relatively high (and increasing) proportion of total employment within North Warwickshire (some 76% in 2014). By contrast, full-time jobs account for just 64% of total employment within Nuneaton and Bedworth, although it is noted that this represents a significant increase from 2010.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.8: Full-time and part-time jobs as a proportion of employment 100%

80% 60% 64% 68% 68% 69% 69% 70% 71%

60% 74% 76%

40%

20% 40% 36% 32% 32% 31% 31% 30% 29% 26% 24% 0% 2010 2014 2010 2014 2010 2014 2010 2014 2010 2014 Hinckley and North Warwickshire Nuneaton and Cross-Border England Bosworth Bedworth Partnership Part-time Full-time Source: BRES

(iii) Private and public sector employment The Cross-Border Partnership area, and in particular North Warwickshire, has seen a decline in public sector employment in recent years (11% fall in public sector employment between 2010 and 2014, compared to 15% for England as a whole). There has been a corresponding growth in private sector employment, in line with national trends (see Table 3.6). Of the three local authority areas, Nuneaton and Bedworth experienced the largest increase in private sector employment between 2010 and 2014.

Table 3.6: Public and private sector employment (2014) Percentage of total employment Change 2010-14 (%) Public sector Private sector Public sector Private sector Hinckley and Bosworth 10% 90% -13% 10% North Warwickshire 7% 93% -27% 10% Nuneaton and Bedworth 20% 80% -3% 12% Cross-Border Partnership 13% 87% -11% 10% LLEP 16% 84% -15% 7% CWLEP 15% 85% -17% 13% England 17% 83% -15% 10% Source: ONS, BRES

(iv) Employment by sector Figure 3.9 sets out the proportion of employment by sector in each of the three local authority areas within the Cross-Border Partnership in 2014. Each of the local authority areas within the Cross-Border Partnership have high levels of employment in the manufacturing sector relative to the average for England as a whole. In particular, manufacturing accounted for 18% of employment in Hinckley and Bosworth in 2014,

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 some 14% in North Warwickshire and 13% in Nuneaton and Bedworth. This compares with an average for England as a whole of around 8%. Alongside manufacturing, there is a concentration in employment in the transport and logistics sector, particularly within North Warwickshire where it accounted for in excess of 20% of employment in 2014. Employment levels in this sector are also relatively high within Nuneaton and Bedworth, while they are broadly consistent with the national average in Hinckley and Bosworth. It is anticipated that as a result of existing and pipeline projects (including Birch Coppice and Hinckley Commercial Park) that employment levels within this sector will continue to grow. Figure 3.9: Total employment by sector (2014)

Manufacturing

Electricity, gas, steam and air conditioning supply

Water supply; sewerage, waste management and remediation activities

Construction

Wholesale and retail trade; repair of motor vehicles and motorcycles

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Public administration and defence; compulsory social security

Education

Human health and social work activities

Arts, entertainment, recreation and other services

0% 5% 10% 15% 20% 25%

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership England

Source: Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

With regard to employment change by sector, Figure 3.10 shows level of employment change over the period 2010 to 2014 by sector as a proportion of total employment in 2010. The performance of individual local authority areas and the Cross-Border Partnership as a whole is benchmarked against national performance. At the level of the Cross-Border Partnership there have been notable increases in employment (at above the average rate for England as a whole) in the following broad sectors:  wholesale and retail trade;  human health;  manufacturing; and  transport and storage. Growth in these sectors has in part been offset through reductions in key sectors, notably the education, information and communication and accommodation and food services sectors. Figure 3.10: Total employment change (2010-2014)

Professional, scientific and technical activities

Administrative and support service activities

Accommodation and food services

Human health and social work activities

Information and communication 0% 2% 4% 6% 8%

Wholesale and retail trade

Real estate activities -4% -2% Education

Transportation and storage Education Construction Manufacturing

Financial and insurance activities activities estate Real Wholesale and retail trade retail and Wholesale Agriculture, mining and utilities and storage Transportation Agriculture, mining and utilities and mining Agriculture, Information and communication and Information Financial and insurance activities insurance and Financial Accommodation and food services food and Accommodation Manufacturing Human health and social work activities work social and health Human

Administrative and support service activities service support and Administrative Construction Professional, scientific and technical activities technical and scientific Professional,

Arts, entertainment and recreation and other services Arts, entertainment and recreation and other services other and recreation and entertainment Arts,

Public administration and defence; compulsory social security security social compulsory defence; and administration Public

-4% -2% 0% 2% 4% 6% 8%

England Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership

Source: Business Register and Employment Survey

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Each of the local authority areas has experienced relatively significant growth within the manufacturing sector over this period. In addition to this, notable trends for each local authority area over this period include:  Hinckley and Bosworth – significant growth in the professional and scientific services and the business administration sector, countered by small declines in the wholesale and retail trade and transport and logistics sectors;  North Warwickshire – the area experienced very significant growth in the wholesale and retail trade sector, alongside increasing employment in the construction sector. In contrast, employment in the accommodation and food services sector and the information and communications sector declined sharply;  Nuneaton and Bedworth – employment increased very significantly within the human health and social work sector. Growth in other sectors, including wholesale and retail trade and transport and storage, was offset by declines in the construction and the education sector.

3.3.3 Shift share analysis A shift-share analysis of the Hinckley and Bosworth, North Warwickshire and Nuneaton and Bedworth economies has been undertaken, covering employment change by sector between 2009 and 2013. Shift-share analysis identifies three components of employment change in a local area or a region. These are:  The national share – this is a calculation of the rate of change in employment in each sector which is attributable to national growth across all sectors.  The industry mix – this is a calculation of the change in employment in a sector at the local level which is attributable to the growth or decline of that sector nationally compared to the growth or decline of all sectors nationally.  The local shift – this represents the employment change in a sector at the local level which is attributable to the difference between the growth rate of that sector at the local level and the growth rate of the sector at the national level. A positive local shift indicates that a particular sector is performing better locally than nationally. For local growth, therefore, an area needs to have sectors which are growing both nationally and locally – that is, with a positive industry mix and local shift.

(i) Hinckley and Bosworth Hinckley and Bosworth saw overall employment growth of 2,389 over the period, with 1,750 of these jobs being attributable to local advantages in particular sectors (i.e. a positive local shift). Table 3.7 shows those sectors in Hinckley and Bosworth with over 150 employees and which had positive industry mixes and local shifts for the period 2009 to 2013.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.7: Shift share analysis – Hinckley and Bosworth 2009 to 2013 Employment Employment change 2009 National Industry Local in 2013 to 2013 share mix shift Education 3,426 211 51 52 108 Employment activities 2,904 1,415 23 130 1,261 Manufacture of machinery and 1,793 829 15 31 783 equipment not elsewhere classified Legal and accounting activities 1,290 837 7 33 797 Social work activities without 1,264 279 16 29 234 accommodation Warehousing and support activities 1,156 443 11 136 296 for transportation Computer programming, 976 167 13 121 33 consultancy and related activities Manufacture of computer, 793 141 10 35 96 electronic and optical products Scientific research and development 744 221 8 9 203 Services to buildings and landscape 643 177 7 16 153 activities Architectural and engineering activities; technical testing & 570 174 6 6 162 analysis Accommodation 508 166 5 38 123 Waste collection, treatment and disposal activities; materials 454 274 3 25 247 recovery Rental and leasing activities 223 62 3 5 55 Manufacture of food products 193 64 2 1 61 Other professional, scientific and 191 80 2 7 71 technical activities Repair and installation of machinery 167 93 1 13 79 and equipment

(ii) North Warwickshire North Warwickshire saw employment fall by 2,575 over the period, with the majority of these jobs being attributable to local disadvantages in particular sectors (i.e. a negative local shift). However, some sectors did demonstrate growth. Table 3.8 shows those sectors in North Warwickshire with over 150 employees and which had positive industry mixes and local shifts for the period 2009 to 2013.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.8: Shift share analysis – North Warwickshire 2009 to 2013 Employment Employment change 2009 National Industry Local in 2013 to 2013 share mix shift Warehousing and support activities 4,098 806 52 629 125 for transportation Manufacture of rubber and plastic 1,251 470 12 3 454 products Wholesale and retail trade and repair of motor vehicles and 1,226 542 11 20 511 motorcycles Employment activities 1,194 135 17 93 26 Social work activities without 1,096 178 14 27 136 accommodation Residential care activities 895 200 11 78 111 Sports activities and amusement 633 130 8 17 105 and recreation activities Services to buildings and landscape 508 156 6 12 138 activities Real estate activities 349 101 4 22 75 Office administrative, office support and other business support 335 136 3 37 95 activities Manufacture of machinery and 272 33 4 8 21 equipment not elsewhere classified Manufacture of computer, 191 15 3 9 3 electronic and optical products Security and investigation activities 151 55 2 9 44

(iii) Nuneaton and Bedworth Nuneaton and Bedworth saw overall employment growth of 2,893 over the period, with 2,602 of these jobs being attributable to local advantages in particular sectors (i.e. a positive local shift). Table 3.9 shows those sectors in Nuneaton and Bedworth with over 150 employees and which had positive industry mixes and local shifts for the period 2009 to 2013.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.9: Shift share analysis – Nuneaton and Bedworth 2009 to 2013 Employment Employment change 2009 National Industry Local in 2013 to 2013 share mix shift Human health activities 3,929 2,122 28 79 2,015 Residential care activities 1,869 523 21 151 351 Wholesale and retail trade and repair 1,171 258 14 27 217 of motor vehicles and motorcycles Employment activities 1,166 441 11 63 366 Architectural and engineering activities; technical testing and 706 184 8 8 168 analysis Manufacture of machinery and 662 111 9 18 84 equipment not elsewhere classified Office administrative, office support 612 218 6 74 138 and other business support activities Sports activities and amusement and 595 118 8 16 94 recreation activities Computer programming, consultancy 433 96 5 51 40 and related activities Real estate activities 364 72 5 26 41 Security and investigation activities 351 235 2 11 222 Repair and installation of machinery 334 105 4 40 61 and equipment Manufacture of food products 303 66 4 2 60 Rental and leasing activities 272 60 3 6 51

3.4 Gross Value Added Gross Value Added (GVA) is a measure of the increase in the value of the economy due to the production of goods and services. Estimates of total GVA are published by the Office for National Statistics at NUTS9 level 1, 2 and 3, with NUTS3 representing the most fine grained data available. At NUTS3 level GVA data is available for Leicestershire County Council and Rutland and Warwickshire (Figure 3.11). Total GVA at the Leicestershire and Rutland level and Warwickshire level was estimated to be £13,875 million and £12,952 million respectively in 2013. As illustrated in Figure 3.7, this equates to around 1% of the total GVA of England for each area.

9 Nomenclature of Units for Territorial Statistics (NUTS) provides a single uniform breakdown for the production of regional statistics for the EU

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.11: NUTS 3 level GVA Indexed change in total GVA Local GVA as a percentage of England total 160 1.2%

150

1.1% 140

130 1.0% 120

110 0.9%

100

0.8% 90 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Leicestershire CC and Rutland Warwickshire England Leicestershire CC and Rutland Warwickshire

Source: ONS, Regional Gross Value Added It is noted that Warwickshire is estimated to have experienced relatively strong GVA growth of around 50% between 2003 and 2013. This exceeded the national average growth rate of around 44%. While growth rates across Leicestershire were similar to those for Warwickshire over the period to 2010, they have subsequently been significantly lower. To inform the analysis of district level performance through the EGCI, NUTS3 GVA figures have been used alongside a range of other data sources, including employment sector profiles derived from the BRES, to inform an estimate of GVA performance at the local level. Based on this analysis, estimates of total GVA for each of the districts within the Cross-Border Partnership area are illustrated in Figure 3.12. This analysis indicates that total GVA for each of the districts within the Cross-Border Partnership area is broadly equivalent, with Hinckley and Bosworth and Nuneaton and Bedworth each accounting for an estimated 34% of GVA and North Warwickshire accounting for an estimated 32% of GVA within the area. Over the period 2009 to 2013 it is estimated that rates of GVA growth within Hinckley and Bosworth have been broadly consistent with trends for England as a whole, resulting in growth of around 15% over the period. North Warwickshire is estimated to have experienced a similar overall level of increase, albeit with relatively significant growth up to 2011 followed by a period of relatively static performance. By contrast, Nuneaton and Bedworth experienced significant growth throughout the period, with GVA estimated to have increased by around 23% over the five years to 2013.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.12: Local authority level GVA estimates Total Cross-Border Partnership GVA Indexed change in GVA £7,000 125

£6,000 120 £5,000 115 £4,000 110 £3,000

£2,000 105

£1,000 100

£0 95 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Hinckley and Bosworth Hinckley and Bosworth North Warwickshire North Warwickshire Nuneaton and Bedworth Cross-Border Partnership Nuneaton and Bedworth England Source: ONS Regional Gross Value Added; Business Register and Employment Survey The relative scale of economy of each of the Cross-Border Partnership districts has been estimated on a GVA per hectare basis. As shown in Figure 3.13, the GVA per hectare within Nuneaton and Bedworth significantly exceeds that of the other Cross-Border Partnership authorities and the average for England as a whole. This reflects the relatively urbanized nature of the local authority area, relative to the rural character (and low density of economic activity) that prevails across much of Hinckley and Bosworth. Figure 3.13: GVA per hectare £250,000

£200,000

£150,000

£100,000

£50,000

£0 2009 2010 2011 2012 2013 England Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership Source: ONS Regional Gross Value Added; Business Register and Employment Survey Further analysis has been undertaken based on analysis of forecasts prepared for each of the districts within the Cross-Border Partnership by Cambridge Econometrics. Figure 3.14 outlines the estimated total GVA for each of the districts within the Cross-Border Partnership area, with Hinckley and Bosworth and Nuneaton and Bedworth accounting for an estimated 37% and 34% of GVA respectively and North Warwickshire accounting for an estimated 29% of GVA within the area as a whole. Between 2010 and 2014, the rate of GVA growth within Nuneaton and Bedworth has been above the trends for the UK as a whole, resulting in growth of around 21% over the period.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.14: Growth in GVA (2011 prices) Total Cross-Border Partnership GVA Indexed change in GVA £ million 125 £6,000 120 £5,000 115 £4,000 110

£3,000 105

£2,000 100

£1,000 95

£0 90 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Hinckley and Bosworth Hinckley and Bosworth North Warwickshire North Warwickshire Nuneaton and Bedworth Cross-Border Partnership Nuneaton and Bedworth UK Source: Cambridge Econometrics

3.5 Labour productivity Labour productivity measures the amount of output produced by unit of labour input. A higher level of productivity means that a higher level of output is being produced per unit of labour input. The Office for National Statistics publishes data on sub-regional productivity based on the measures of GVA per filled job and GVA per hour worked. This data, published at NUTS3 level and excluding non-market activity, provides a measure of productivity for each sub-region benchmarked against the average for the UK. Figure 3.15 shows the labour productivity for Leicestershire and Warwickshire for the period 2002 to 2012. This indicates that relative to the UK average, levels of productivity at the sub-regional level have declined over recent years. While for Leicestershire this level of decline is estimated to have been relatively minor (albeit from a lower base), levels of productivity relative to the UK average are estimated to have fallen sharply within Warwickshire. Figure 3.15: Sub-regional productivity – GVA per filled job (Index: UK = 100) 10%

-5%

-10%

-15% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Leicestershire CC and Rutland Warwickshire Source: Office for National Statistics, Sub-regional productivity

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

An assessment of productivity at the Cross-Border Partnership level has been undertaken based on GVA estimates. The GVA per worker across the Cross-Border Partnership area as a whole was estimated to be around £47,500 in 2013. This is estimated to be around 90% of the average GVA per worker at the national (England) level. As illustrated in Figure 3.16, it is estimated that GVA per worker ranged from £47,500 in Nuneaton and Bedworth to around £50,000 in North Warwickshire. It is estimated that levels of productivity have increased significantly within North Warwickshire, reflecting both an overall growth in levels of output alongside a decline in employment over this period. The estimated rate of growth of 22% significant exceeds estimates for England as a whole (12%). By comparison, productivity growth within Hinckley and Bosworth and Nuneaton and Bedworth is estimated to have been somewhat lower at 8% and 15% respectively. Figure 3.16: Labour productivity based on an assessment of GVA per worker

GVA per worker Indexed change in GVA per worker £54,000 125

£52,000 120

115 £50,000 110 £48,000 105

£46,000 100 95 £44,000 90 2009 2010 2011 2012 2013 £42,000

£40,000 Hinckley and Bosworth North Warwickshire Hinckley and North Nuneaton Cross-Border England Bosworth Warwickshire and Partnership Nuneaton and Bedworth Cross-Border Partnership England Bedworth Source: ONS Regional Gross Value Added; Business Register and Employment Survey An updated analysis, based on forecasts prepared by Cambridge Econometrics, also indicates that overall levels of productivity within Cross-Border Partnership are lower than the national average. However, this analysis indicates that GVA per worker is highest in Hinckley and Bosworth, with Nuneaton and Bedworth experiencing the greatest increase in productivity over the period 2010 to 2014 (see figure 3.17).

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 3.17: Labour productivity based on an assessment of GVA per worker (2011 prices)

GVA per worker Indexed change in GVA per worker £50,000 115 £45,000

£40,000 110

£35,000 105 £30,000

£25,000 100 £20,000 95 £15,000

£10,000 90 £5,000 2010 2011 2012 2013 2014

£0 Hinckley and North Nuneaton and Cross-Border UK Hinckley and Bosworth North Warwickshire Bosworth Warwickshire Bedworth Partnership Nuneaton and Bedworth Cross-Border Partnership UK Source: Cambridge Econometrics

3.6 Economic forecasts Forecasts produced by Cambridge Econometrics suggest that employment in the Cross-Border Partnership area is expected to grow at similar rate to the UK over the next ten years, with North Warwickshire seeing the highest rate of employment growth out of the three local authorities (see Figure 3.18). Key areas of growth are forecast to be within the business support, warehousing and postal, food and beverage services and construction sectors as well as elements of the manufacturing sector (although employment in this sector as a whole is forecast to decline). Figure 3.18: Forecast growth in employment 108

106

104

102

100

96 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 UK North Warwickshire Hinckley and Bosworth Nuneaton and Bedford Cross-Border Partnership Source: Cambridge Econometrics

The forecasts for GVA growth show the Cross-Border Partnership area growing at a marginally faster rate than the UK as a whole and the growth rate for each of the three local authorities either matches or is above the national rate of growth (see Figure 3.19). The key areas for GVA

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015 growth are again expected to include the warehousing and postal, business support and construction sectors, as well as IT services, retail and a number of manufacturing sectors. Figure 3.19: Forecast growth in GVA (2011 prices) – Revise charts 130

125

120

115

110

105

100

80 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

UK North Warwickshire Hinckley and Bosworth Nuneaton and Bedford Cross-Border Partnership

Source: Cambridge Econometrics The Cambridge Econometric forecasts have been used to identify sectors within which each of the local authorities has a greater concentration of employment / economic activity (GVA) than the UK as a whole, indicating a relative competitive advantage, and where future growth is expected to be positive (see Table 3.11). The potential growth sectors include parts of the manufacturing sector, distribution/logistics and business services.

Table 3.11: Potential key growth sectors Employment – location quotient above 1 and GVA – location quotient above 1 and forecast positive forecast growth 2015-25 growth above UK rate 2015-25 Hinckley and Other transport equipment (2%) Wood & paper (1%) Bosworth Other manufacturing & repair (2%) Metals & metal products (2%) Electricity & gas (2%) Electronics (2%) Water, sewerage & waste (1%) Machinery (5%)

Construction (7%) Motor vehicles (1%)

Motor vehicles trade (2%) Electricity & gas (5%) IT services (3%) Water, sewerage & waste (2%) Other professional services (3%) Motor vehicles trade (3%) Business support services (11%) Wholesale trade (4%) Arts (1%) Retail trade (6%) Other services (4%) Business support services (7%) Recreational services (1%)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 3.11: Potential key growth sectors Employment – location quotient above 1 and GVA – location quotient above 1 and forecast positive forecast growth 2015-25 growth above UK rate 2015-25 North Non-metallic mineral products (5%) Food, drink & tobacco (2%) Warwickshire Electrical equipment (0.3%) Non-metallic mineral products (6%) Construction (7%) Metals & metal products (3%) Motor vehicles trade (3%) Electronics (1%) Wholesale trade (6%) Electrical equipment (1%) Warehousing & postal (16%) Machinery (1%) Accommodation (4%) Motor vehicles trade (4%) IT services (4%) Wholesale trade (4%) Head offices & management consultancies (4%) Water transport (2%) Business support services (8%) Warehousing & postal (16%) Accommodation (3%) IT services (8%) Business support services (6%) Nuneaton and Electrical equipment (1%) Textiles (1%) Bedworth Other manufacturing & repair (1%) Non-metallic mineral products (1%) Construction (6%) Electrical equipment (1%) Motor vehicles trade (3%) Machinery (2%) Wholesale trade (5%) Other transport equipment (6%) Retail trade (11%) Other manufacturing & repair (1%) Warehousing & postal (4%) Motor vehicles trade (4%) Business support services (10%) Wholesale trade (4%) Health (8%) Warehousing & postal (5%) Architectural & engineering services (2%) Business support services (8%) Education (8%) Health (6%) *Percentage in brackets denotes size of sector as proportion of local economy

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

4 Target outcomes: Quality of life/standard of living

4.1 Introduction This section provides an assessment of a range of key indicators representing target outcomes in terms of quality of life / standard of living.

4.2 EGC Index

4.2.1 Current performance Based on the identified measures, both Hinckley and Bosworth and North Warwickshire achieve an overall rank above the mid-point for the 325 local authority areas. In particular, Hinckley and Bosworth is ranked as one of the best performing districts in England in terms of life satisfaction, acute deprivation and average life expectancy (Table 4.1). North Warwickshire also performs strongly in terms of life satisfaction, alongside GVA per capita. By contrast, Nuneaton and Bedworth is ranked below the mid-point for each of the indicators, performing particularly poorly in terms of life satisfaction.

Table 4.1: Quality of life - cross sectional CROSS SECTIONAL ANALYSIS - TARGET OUTCOMES analysis LIFE SATISFACTION HBBC NWBC NBBC 0

Life satisfaction 75 34 290 110

GVA per capita 196 40 259 LIFE EXPECTANCY 220 GVA PER CAPITA Average resident 214 216 198 earnings 330 Population resident 73 139 210 within 20% most

deprived area DEPRIVATION RESIDENT EARNINGS Average life 87 236 242

expectancy Hinckley and Bosworth Overall rank North Warwickshire 114 133 276 Nuneaton and Bedworth

4.2.2 Recent trends In terms of recent trends, each of the local authority areas within the Cross-Border Partnership has experienced variable performance across the indicators. It is noted that both North Warwickshire and Nuneaton and Bedworth ranked strongly in terms of improvements in GVA per capita, while Hinckley and Bosworth ranked strongly in relation to deprivation (reflecting stable performance over the 2007 and 2010 Indices of Multiple Deprivation). However, performance over a ten year period in terms of median resident earnings was less strong across each of the districts, while the improvement in terms of life expectancy was broadly in line with the average for England as a whole.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 4.2: Quality of life - longitudinal LONGITUDINAL ANALYSIS - TARGET OUTCOMES analysis GVA PER CAPITA 0 HBBC NWBC NBBC 110 GVA per capita 144 46 77 220 Average resident 268 265 176 earnings LIFE EXPECTANCY 330 RESIDENT EARNINGS Population resident 183 244 261 within 20% most deprived area

Average life 151 181 149 DEPRIVATION

expectancy Hinckley and Bosworth North Warwickshire Overall rank 223 220 183 Nuneaton and Bedworth

4.3 Life satisfaction The ONS Personal Well Being survey was first published in 2012. It forms part of the UK Measuring Well-being programme, launched in 2010 to provide a greater understanding of the impact of wider economic and social trends in relation to peoples’ quality of life. Respondents to the survey indicate on a scale of 0 to 10 (where 0 is ‘not at all’ and 10 is ‘completely’) responses to the following questions:  Overall, how satisfied are you with your life nowadays?  Overall, to what extent do you feel the things you do in your life are worthwhile?  Overall, how happy did you feel yesterday?  Overall, how anxious did you feel yesterday? Overall, data for 2014 indicates that residents of Hinckley and Bosworth and North Warwickshire report a high level of life satisfaction (7.7 and 7.8 respectively) relative to the average for England as a whole of 7.5. However, as Figure 4.1 illustrates, levels of life satisfaction were found to be somewhat lower in Nuneaton and Bedworth at 7.3. Overall, this pattern is generally repeated for the other measures of well-being as illustrated in Figure 4.1. Relative to the average for England, respondents within Hinckley and Bosworth and North Warwickshire were more likely to report that they felt things in their life to be worthwhile, higher levels of happiness and lower levels of anxiety. By contrast, residents of Nuneaton and Bedworth reported higher levels of anxiety and lower levels of happiness.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.1: Life satisfaction rating and other measures of personal well-being (2014)

Life Satisfaction rating Average rating for other indicators 9.0 Hinckley and Bosworth 8.0

North Warwickshire 7.0

Nuneaton and Bedworth 6.0 5.0 Leicestershire 4.0 Warwickshire 3.0

East Midlands 2.0

1.0 West Midlands 0.0 England Hinckley and North Nuneaton and England Bosworth Warwickshire Bedworth 6.5 7.0 7.5 8.0 Worthwhile activities Happiness Anxiety Average rating (out of 10) Source: Personal Well-being Annual Population Survey Datasets, ONS

4.4 GVA per capita Statistical information for GVA per capita is released at the NUTS 3 level for Leicestershire and Warwickshire. In 2013 the GVA per capita within Leicestershire and Rutland was estimated to be £19,845, equating to around 82% of the average for England as a whole (£24,091). The average GVA per head for Warwickshire was, at £23,604, broadly consistent with the national average. As illustrated in Figure 4.2, levels of GVA per head within Warwickshire have increased in line with national trends over a ten year period, while those for Leicestershire and Rutland have increased at a slightly slower rate. Over the period 2003 to 2013 it is estimated that GVA per capita across Warwickshire increased by 41%. This compares to 32% across Leicestershire and Rutland and 33% at the national level. Figure 4.2: GVA per capita for NUTS 3 level areas

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Leicestershire CC and Rutland Warwickshire England

Source: ONS Regional Gross Value Added

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Based on the estimate of total GVA for individual districts (see Section 3.4), it is estimated that GVA per head across the Cross-Border Partnership area was approximately £20,000 in 2013 equating to approximately 80% of the average for England as whole. However, as shown in Figure 4.3, there was a significant level of variation between the local authority areas within the Cross- Border Partnership. In particular, GVA per capita within North Warwickshire was estimated to be significantly higher at £29,400 than the average for England as a whole. By contrast, GVA per capita within Hinckley and Bosworth and Nuneaton and Bedworth was estimated to be significantly lower than the national average. Figure 4.3: GVA per capita for the Cross-Border Partnership £35,000

£30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0 2009 2010 2011 2012 2013 Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth CBP England Source: ONS Regional Gross Value Added, ONS mid-year population estimates While the estimated GVA per head remains significantly lower than the national average, it is estimated that growth rates over the period 2009 to 2013 exceeded those for England as a whole. In particular, it is estimated that GVA per head within Nuneaton and Bedworth increased by 21% over this period. The results of a revised analysis of GVA per capita, based on forecasts prepared by Cambridge Econometrics, is set out in Figure 4.4. Again, this indicates that GVA per capita is highest in North Warwickshire, which is above the UK average. This reflects the relatively strong local economy and more limited number of residents in the area.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.4: GVA per capita based on Cambridge Econometrics forecasts (2011 prices) £30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0 2010 2011 2012 2013 2014

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth Cross-Border Partnership UK

Source: Cambridge Econometrics, ONS mid-year population estimates

4.5 Average annual earnings (resident based) Overall, resident median annual earnings in 2014 were relatively consistent across the local authority areas of Hinckley and Bosworth, North Warwickshire and Nuneaton and Bedworth, ranging from £25,120 in North Warwickshire to £25,423 in Nuneaton and Bedworth. This level of median earnings was marginally lower than the average for England as a whole (£27,500), though it was broadly consistent with average for wider regions (Table 4.3). As illustrated in Table 4.3, levels of earnings growth within the Cross-Border Partnership area, particularly for Hinckley and Bosworth and North Warwickshire, have been lower than those for England as a whole. Reflecting this, median earnings within these two district areas have fallen from around 100% of the national median in 2005 to around 91% of the national median in 2014. By contrast, median earnings for residents of Nuneaton and Bedworth have increased by almost 17%, with this level of growth broadly comparable with that for the West Midlands and England as a whole.

Table 4.3: Median annual earnings Earnings as a % of Median annual earnings England average 2005 2014 Change % change 2005 2014 Hinckley and Bosworth £23,466 £25,217 £1,751 +7.5% 101% 92% North Warwickshire £23,234 £25,120 £1,886 +8.1% 100% 91% Nuneaton and Bedworth £21,763 £25,423 £3,660 +16.8% 93% 92% East Midlands £21,950 £25,464 £3,514 +16.0% 94% 93% West Midlands £21,570 £25,018 £3,448 +16.0% 93% 91% England £23,313 £27,500 £4,187 +18.0% Source: Annual Survey of Hours and Earnings

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.5 illustrates changes in earnings within each of the Cross-Border Partnership areas relative to the England average for both median and lower quartile earnings. It indicates that lower quartile resident earnings within North Warwickshire are broadly consistent with the England average at £19,000, while those for Hinckley and Bosworth are some £2,000 lower than the equivalent figure for England as a whole. Figure 4.5: Median and lower quartile annual earnings in 2005 and 2014 £30,000

£25,000

£20,000

£15,000

£10,000

£5,000

£0 2005 2014 2005 2014 2005 2014 2005 2014 Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth England

Median Lower quartile

Source: Annual Survey of Hours and Earnings

4.6 Share of population in 20% most deprived areas The Index of Multiple Deprivation 2010 (IMD 2010) is a measure of multiple deprivation at the small area level. It is based on an assessment of multiple statistical indicators which are grouped under seven domains:  income deprivation;  employment deprivation;  health deprivation and disability;  education, skills and training deprivation;  barriers to housing and services;  crime; and  living environment deprivation. Based on a weighting of each domain, these indicators inform an assessment of multiple deprivation. Table 4.4 sets out the overall levels of deprivation within the three Cross-Border Partnership local authority areas, as measured by DCLG’s English Indices of Deprivation (2015). At the local authority level, Hinckley and Bosworth suffers from relatively low levels of deprivation, as does

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

North Warwickshire, with both areas ranked within the 50% least deprived local authorities in England. Deprivation levels are significantly higher in Nuneaton and Bedworth, particularly in terms of education and crime.

Table 4.4: English Indices of Deprivation, 2015 Rank of average score: 1 (most deprived) – 326 (least deprived)

Living Living Crime Health Income Barriers Education Overall Overall IMD Employment Environment

Hinckley and Bosworth 246 230 220 162 256 176 260 257 North Warwickshire 190 193 184 106 159 164 212 195 Nuneaton and Bedworth 111 111 100 63 92 57 256 161 Source: English Indices of Deprivation 2015, DCLG At a local level, there are pockets of severe derivation in both Nuneaton and Bedworth and North Warwickshire, as shown in Figure 4.6 (over page). According to the Index of Multiple Deprivation, which combines the results of the seven indices of deprivation, parts of Nuneaton and Bedworth rank within the 5% most deprived parts of the country, whereas there are areas in North Warwickshire that rank within the 10% most deprived. The EGCI assessment of deprivation is based on a ranking of local authority areas in relation to the percentage of resident population living within LSOA areas ranked within the 20% most deprived within England. As set out in Table 4.5, it is estimated that around 18% of the resident population of Nuneaton and Bedworth and 5% of the population of North Warwickshire lives in a LSOA ranked within the 20% most deprived nationally. Table 4.5 also further illustrates the variation in levels of deprivation between each of the areas, with Nuneaton and Bedworth having a significantly higher proportion of the population residing within relatively deprived areas.

Table 4.5: Population residing within the 10%, 20% and 30% most deprived LSOA areas within England Number of LSOA Resident population Deprived area pop. as areas within LSOA areas % of total population IMD ranking: most deprived 10% 20% 30% 10% 20% 30% 10% 20% 30% Hinckley and Bosworth 0 1 6 0 1,285 9,474 0% 1% 9% North Warwickshire 1 2 7 1,398 3,252 6,151 2% 5% 10% Nuneaton and Bedworth 7 16 31 10,189 22,878 42,222 8% 18% 34% Cross-Border Partnership 8 19 41 11,587 27,415 57,847 4% 9% 20% Source: 2015 Index of Multiple Deprivation

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.6: Index of Multiple Deprivation, 2015

Source: English Indices of Deprivation, DCLG Further analysis of IMD data highlights that levels of deprivation for each area varied significantly between each domain (Figure 4.7). A relatively high proportion of LSOAs within each area, particularly North Warwickshire and Nuneaton and Bedworth, were ranked within the 20% most deprived nationally in terms of education skills and training. By contrast, only a small number of LSOAs across the Cross-Border Partnership were ranked within the 20% most deprived in terms of living environment. While this analysis provides a valuable overview of relative deprivation levels across the Cross- Border Partnership, it is noted that the IMD is now based on relatively dated information. An updated IMD is due to be published in 2015.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Figure 4.7: Percentage of LSOAs ranked within the 20% most deprived for each IMD domain

Overall

Income

Employment

Education, skills and training

Health and disability

Crime

Barriers to housing and services

Living Environment

0% 5% 10% 15% 20% 25% 30%

Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth

Source: 2015 Index of Multiple Deprivation

4.7 Life expectancy Life-expectancy is the standard measure of the length of people’s life. Life-expectancy at birth measures how long on average people born within the specified period could expect to live based on current age specific mortality rates. While length of life is not directly indicative of quality of life, it provides a proxy to reflect the effects of ill health and other socio-economic factors on quality of life10. As set out within Figure 4.8, life expectancy at birth is estimated to be higher in Hinckley and Bosworth, both for females and males, than the average for England as a whole. By contrast, life expectancy in North Warwickshire or Nuneaton and Bedworth is estimated to be lower than the England average, albeit only marginally. Figure 4.8: Life expectancy at birth for males and females

Life expectancy at birth (2011-13) Average life expectancy for males and females 85 83 84 82 83 81 82 80 81 79 80 79 78 78 77 77 76

76 75 75 Hinckley and North Nuneaton and England Bosworth Warwickshire Bedworth Female Male Hinckley and Bosworth North Warwickshire Nuneaton and Bedworth England Source: ONS Life expectancy at birth

10 OECD, Compendium of OECD well-being indicators 2011

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Over a period of ten years to 2013 it is estimated that life expectancy (as an average of the life expectancy at birth for females and males) has increased by 2.8 years within Hinckley and Bosworth. The overall increase within North Warwickshire and Nuneaton and Bedworth has been somewhat lower at 2.3 and 2.5 years respectively. Across England as a whole it is estimated that life expectancy at birth has increased by 2.6 years over this period.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

5 Conclusions The cross sectional EGCI rankings for each area are set out in Table 5.1. Table 5.1: Overall EGCI rankings (cross sectional) COMPARATOR ANALYSIS PERFORMANCE REVIEW - CROSS SECTIONAL ANALYSIS Nuneaton and Nuneaton Warwickshire Hinckleyand Bedworth Bosworth deviation Standard Average Range North North

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Those variables highlighted as green indicate where the local authority is performing within the top third of districts. For those shown in amber, the performance is within the middle third and those in red within the bottom third. The indicators highlighted as performing strongly suggest areas of strength upon which the Cross-Border Partnership can seek to build. In contrast, the more poorly performing variables (shown in red) are indicative of potential areas of weakness, which may need to be addressed through future policy interventions. In some cases by sequencing actions in an appropriate way the interventions self-reinforcing and over time the EGCI should begin to contain more variables within the top third of districts. Table 5.2 shows the longitudinal EGCI results, again with performance colour coded using a traffic light system. Here again, an initial focus will be seeking to build on and sustain those variables which show strong relative performance over recent years, as well as tackling those areas which are performing more poorly.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table 5.2: Overall EGCI rankings (longitudinal) COMPARATOR ANALYSIS PERFORMANCE REVIEW - LONGITUDINAL ANALYSIS Nuneaton and Nuneaton Warwickshire Hinckleyand Bedworth Bosworth deviation Standard Average Range North North

100

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Appendix B: Summary of EGCI indicators and source data

101

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table B1: Summary of EGCI indicators and source data Variable Source Period Standard of Living Life Satisfaction ONS Annual Population Survey: Personal 2010-2013 well-being Gross Value Added (GVA) per ONS Regional GVA, NUTS 3 (adjusted to 2009-2013 capita district level using BRES employment data) Average annual earnings – ONS Annual Survey of Hours and Earnings 2004-2013 residence based Deprivation – population living DCLG Index of Multiple Deprivation 2007, 2010 and within 20% most deprived 2015 neighbourhoods in England Economic activity Total GVA ONS Regional GVA, NUTS 3 (adjusted to 2009-2013 district level using BRES employment data) Productivity – GVA per employee ONS Regional GVA, NUTS 3 (adjusted to 2009-2013 district level using BRES employment data) Total employment change ONS Business Register and Employment 2009-2014 Survey Employment rate ONS Annual Population Survey 2004/05 – 2013/14 Enterprise Small and Medium sized Inter-Department Business Register (IDBR): 2008-2013 Enterprises (SMEs) per 1,000 UK Business: Activity, Size and Location resident working-age population Total business density based on IDBR: Business Demography 2004-2013 number of enterprises per 10,000 working age residents Business starts per 1,000 resident IDBR: Business Demography 2004-2013 working age population Self-Employment Rate ONS Annual Population Survey 2004/05 – 2013/14 Employment in export intensive ONS Business Register and Employment 2009-2013 sectors Survey People and Labour Market Working age population ONS Mid-year Population Estimates 2004-2014 Forecast working age population ONS 2012 based sub-national population 2012-2037 projections for local authority areas within England

102

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Table B1: Summary of EGCI indicators and source data Variable Source Period Proportion of the resident ONS Annual Population Survey 2004-2013 population with no qualifications

Proportion of the resident ONS Annual Population Survey 2004-2013 population with NVQ level 4+ qualifications Job-seekers allowance claimant DWP Statistics (Nomis) November 2006- rate [JSA Claimant Count data has been used 2015 due to gaps associated with small sample sizes for the ILO unemployment indicator] Net commuter Flows Census 2001 & 2011 Knowledge and Innovation Employment in high-technology ONS Business Register and Employment 2009-2013 sectors Survey Employment in knowledge ONS Business Register and Employment 2009-2013 intensive services Survey Proportion of higher order ONS Annual Population Survey 2004/05 – 2013/14 occupations Place Rateable value per hereditament UK Government: National non-domestic 2007-2013 rates collected by councils Superfast broadband availability Ofcom: UK Fixed Broadband Data 2011-2013 Median House Price DCLG Live Tables: Land Registry Housing 2003-2012 Market and House Prices Ratio of Median House Price to DCLG Live Tables: Land Registry Housing 2003-2012 Median Annual Earnings Market and House Prices Per Capita Emissions DECC: UK local authority and regional 2005-2012 carbon dioxide emissions

103

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Appendix C: Project reviews

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Hinckley Hub

Project Characteristics Description: The Hinckley Hub comprises 4,200 sq m of net lettable office and shared workspace, located to the south of Hinckley town centre at the site of the former Flude Hosiery factory. The site has been redeveloped to create a new hub for public sector organisations including Hinckley and Bosworth Borough Council, Leicestershire County Council, Job Centre Plus and the Citizens Advice Bureau. The scheme, which is located in close proximity to the town centre and the train station and is located at a key gateway to the town, comprises modern flexible open floor-plate office accommodation , alongside a joint reception area, conference rooms, an in-house café and car parking. The relocation of HBBC to the Hub responded to the identification of a significant programme of works (and associated costs) to extend the life of the former Council offices at Argents Mead. HBBC was approached by MRP Developments (a respected local development firm) in relation to taking a head lease on newly developed office accommodation on the site of the former Flude factory. The office scheme was delivered as part of a wider mixed use development including 46 residential units. Area: Hinckley and Bosworth Status: Complete Lead partner: Hinckley and Bosworth Borough Council Strategic Survey work undertaken in 2003 identified the need for significant capital importance: investment (estimated at £8 million) to extend the life of the former Council offices at Argents Mead beyond 2011. Informed by an assessment of options, HBBC identified the need for new accommodation offering a greater level of efficiency and flexibility. A key objective of the Council was to retain a significant presence within or close to the town centre.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Delivery Project costs: HBBC and its partners incurred a range of other costs associated with fitting out the premises and other relocation costs. This included an allowance for dilapidation costs associated with vacated premises Florence House. The total capital cost to HBBC and its partners was estimated to be £1.2 million. Project The Hub project was delivered by MRP developments and forward funded by Aviva. funding: HBBC took a 35 year head lease on the Hub at an initial rent of approximately £155 per sq m with a developer incentive of £1.2 million. At the expiry of the lease ownership of the site and premises will revert to HBBC. Timescales:  2003 - Identification of requirement following survey of Argents Mead  Oct 2011 - HBBC sign agreement with MRP Developments  Aug 2013 - Practical completion Partners and  HBBC – based on a requirement for new accommodation of around 2,500 sq m, roles: HBBC took a head lease on the Hub for a period of 35 years. The Hub reverts to HBBC upon the expiry of the lease.  Other occupiers – Leicestershire County Council, Job Centre Plus and the Citizens Advice Bureau co-located with HBBC at the Hub. A work station displacement model has been adopted.  MRP Developments – MRP Developments delivered the Hub on a forward funded basis with funding from Aviva. Stepnell was appointed to complete the construction works after the initial contractor (Hallam Contracts) went into administration. Project Outputs and Benefits Outputs: The project resulted in the delivery of key outputs:  4,200 sq m of BREEAM Excellent workspace  Delivery of 46 residential units as part of the wider scheme  Vacating the former council offices at Argents Mead to support the reprovision of leisure facilities within the town centre. Economic The project involves primarily the reprovision of facilities for the public sector, benefits: resulting in limited effects in terms of new jobs creation. However, it is noted that one of the facilities vacated by the Council has subsequently been re-let. In relation to the construction phase, it is estimated that that based on a construction investment of around £4 million that the project supported around 30 person years of gross temporary employment. Wider The project has resulted in a range of wider economic benefits as follows: benefits:  Regeneration catalyst – Through entering into an agreement with MRP Developments HBBC secured the regeneration of a vacant and derelict industrial site, bringing it back into active use. Support for the scheme by HBBC also facilitated the delivery of new residential facilities;  Image and perceptions – the Hub provides high quality, modern accommodation, significantly improving this prominent Gateway to the town centre. The Hub also provides a suitable platform for the Council, reflecting its role in catalysing investment and regeneration within the town centre.  Improved performance – the Hub provides a shared platform for multiple public sector organisations to provide services to the community. It is understood that co-location has resulted in increased joint working;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Cost savings – modern flexible accommodation within the Hub has enabled HBBC to reduce its requirement from 3,300 sq m to 2,500 sq m. The reduced requirement, alongside the sharing of overheads with other occupiers, has resulted in substantial cost savings for HBBC;  Environmental sustainability – the Hub has been constructed to BREEAM Excellent standard using A rated materials and incorporating extensive use of photovoltaics. High quality environmental performance has contributed to cost saving for HBBC and partners. The scheme has also provided an exemplar for sustainable construction within the local area.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Atkins Building

Project Characteristics Description: The Atkins Building comprises approximately 3,200 sq m of office floorspace within a refurbished and listed former hosiery factory. The internal configuration is highly flexible and provides a high degree of flexibility to enable the building to accommodate a wider range of requirements. Accommodation includes a number of incubator units and grow-on space as well as larger units. It also comprises a gallery and café, alongside serviced meeting rooms. Alongside a significant number of small businesses, the Atkins Building provides accommodation for the Leicestershire Revenue and Benefits Partnership, Leicestershire County Council Registrars service and the Hinckley Times. HBBC acquired the site and premises, comprising a former hosiery factory, from Morris Homes. Listed elements of the site were retained for refurbishment, while non-listed buildings were demolished and transferred to North Warwickshire and Hinckley College to accommodate a new campus development. The building is owned by HBBC on a freehold basis. The Council manages the facility and has been successful at sustaining levels of occupancy at more than 90%. Alongside key building services, the Council provides tenants with signposting to business services, including helping start-ups to identify grow-on space elsewhere within Hinckley. Area: Hinckley and Bosworth Status: Complete Lead partner: Hinckley and Bosworth Borough Council Strategic Investment enabled the retention and refurbishment of a listed building within the importance: town centre for sustainable commercial uses.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The acquisition of the site and its transfer to North Warwickshire and Hinckley College ensured the retention and expansion of the College offer (and consequent levels of activity) within the town centre. Developed as a centre for creative enterprise reflecting an identified shortfall in the provision of managed workspace for creative sector businesses and more generally to respond to a need for a high quality office offer within the town centre. Project Delivery Project costs: The total capital cost of the project was approximately £8.5 million. This included £2 million of land acquisition costs (including the cost of acquiring land for the North Warwickshire and Hinckley College which was gifted to the college) and £6.5 million of refurbishment costs. Project The refurbishment of the Atkins Building was jointly funded by HBBC, the East funding: Midlands Development Agency and the Leicestershire Economic Partnership as follows:  HBBC – £2.37 million  EMDA – £2.44 million associated primarily with the acquisition of the site;  LSEP – £3.69 million Smaller funding contributions were also made by English Heritage – reflecting the listed status of the building - and North Warwickshire and Hinckley College. Since opening the Atkins Centre has been operated successfully by HBBC and generates a positive financial return. In 2012/13 it generated an income in excess of £250,000 per annum. Timescales:  Completion – June 2010 Partners and  HBBC – Lead partner roles:  EMDA/LSEP – Funding partners Project Outputs and Benefits Outputs: The Atkins Building comprises 3,200 sq m of office and associated floorspace. Economic The scheme has resulted in important economic benefits in the construction and the benefits: operational phases as follows: Construction Phase Based on a total capital investment of £6.5 million associated with the refurbishment of the site, it is estimated that the scheme supported around 45 person years of employment. Operational Phase Based on discussions with HBBC staff, there are currently around 30 organisations based within the Atkins Building. Businesses are engaged in a range of activities including:  Local Authorities – the Leicestershire Registration Service;  Design – a range of businesses involved in graphic design, web design and product design;  Artists – a range of artists including photographers;  Media – Hinckley Times and other media marketing and advertising businesses  Other businesses – including businesses engaged in counselling, recruitment, human resources and other activities.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Levels of demand for accommodation have remained high and there is ‘waiting list’ for office type units. It is estimated that these businesses employ around 200 people on site in a wide range of roles. Wider The investment by HBBC and its partners in the Atkins Building project has also benefits: resulted in a number of important wider benefits including:  Catalysing wider regeneration – the delivery of the Atkins Building has supported wider regeneration within the town centre. Most directly, the acquisition of the site has played a critical role in securing investment by North Warwickshire and Hinckley College.  Sustaining the local creative industries sector – the scheme has provided a focus for the development of start-up and small businesses, particularly within the creative sector. As the building manager, HBBC has taken a proactive role to supporting start-up and micro businesses through signposting to business support and other services, alongside assisting businesses in identifying grow on accommodation where required.  Protecting local heritage – the Atkins Building is Grade II listed and forms an important element of the industrial heritage of Hinckley. In the absence of the project, it is likely that a significant portion of the factory site would have been cleared for housing and lost.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Greenfields

Project Characteristics Description: The Greenfields Business Park comprises around 3,700 sq m of high quality, BREEAM Excellent rated light industrial and hybrid employment space. The scheme involved the redevelopment of a redundant portion of a former Council depot site adjacent to Hinckley town centre. Since completion in 2010 the site has benefited from very high levels of demand and levels of occupancy have remained extremely high. The scheme accommodates businesses operating within a range of sectors including knowledge intensive activities alongside more locally focused service sector activities. Area: Hinckley and Bosworth Status: Complete Lead partner: Hinckley and Bosworth Borough Council Strategic The scheme brought an underutilised asset back into sustainable commercial use. importance: The scheme has acted as an exemplar for sustainable building materials and technologies. Consultees considered that the high level of sustainability has made the scheme more marketable and minimised vacancy levels. The scheme delivered new employment space appropriate for a range of sectors in a highly sustainable location adjacent to the town centre. The scheme continues to generate a sustainable source of revenue for the Council amounting to approximately £200,000 per annum (gross). Project Delivery Project costs: The total capital cost of the project (including land costs) was approximately £6.5 million. The estimated cost of constructing the units amounted to approximately £5 million. This represents a relatively high build cost of approximately £1,300 per sq m. This reflects the level of specification and investment in green technologies. The capital costs were jointly funded by HBBC and the Leicestershire Economic Partnership as follows:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 HBBC financial contribution – £2.9m  HBBC land value – £1.4m  LSEP grant funding – £2.1m Reflecting high levels of occupancy, the Greenfields scheme has generated a net rental income. It is estimated that the units generated a net income of £185,000 in 2013/14. Alongside this, it is estimated that business rates income from the scheme amounts to approximately £78,000 per annum. Timescales: The project emerged as a concept in 2005 and was subject to ongoing design development over the period to 2007 The project commenced in 2009 and was completed in 2010. Partners and HBBC – Lead partner roles: LSEP – Funding partner Project Outputs and Benefits Outputs: Investment by HBBC and LSEP directly resulted in the delivery of 3,700 sq m of BREEAM Excellent and Very Good rated employment floorspace featuring sedum roofs, timber cladding, grey water harvesting and micro-generation. Economic The scheme has resulted in important economic benefits in both the construction benefits: and the operational phases as follows: Construction phase The total cost of constructing the scheme amounted to around £5.1 million. Based on benchmark values for construction expenditure per employee, derived from the Annual Business Survey, it is estimated that this level of expenditure potentially supported approximately 40 person years of gross construction related employment. Operational Phase The scheme currently accommodates an estimated 20 businesses. Based on appropriate employment density benchmarks, reflecting the nature of the businesses located at Greenfields, it is estimated that activity at the Greenfields site currently supports some 80 full-time equivalent jobs. Wider The scheme has resulted in a range of wider benefits including: benefits:  Regeneration catalyst – the scheme has contributed to the wider regeneration of the town through bringing an underutilised site back into active use.  Strengthening the local economy – the scheme delivered a unique property offer within the local market and has been successful in attracting a range of occupiers including knowledge intensive businesses into the town.  Environmental exemplar – the scheme has showcased a range of materials and technologies within high levels of environmental performance. It has demonstrated the potential value of these technologies in terms of attracting occupiers and sustaining low levels of vacancy. Alongside this, a wider range of environmental interventions were supported through the scheme including works to enhance the ecology of an adjacent watercourse.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: North Warwickshire and Hinckley College

Project Characteristics Description: The new campus was developed in 2011 on the site of the former Atkins Factory, and adjacent to the newly refurbished Atkins Building, following the gift of the site to the College by HBBC. The scheme enabled the relocation of the Campus from the former London Road site within Hinckley town centre. A range of other locations were considered for the relocation of the Campus including an edge of town site and alternative sites within Nuneaton. The new campus accommodates the College’s Creative Arts provision, with state-of- the-art recording studios, performance spaces, dance and photography studios, a theatre and computer suites. The campus hosts a range of courses including art and design, performance arts and technology as well as journalism and media studies. In their 2012 report, Ofsted rated the new facilities at Hinckley Campus as outstanding. It reported that “The new campus at Hinckley has had a positive effect on staff and learners and inspectors found that the standard of work of the learners currently based there is very good.” The site of the former Hinckley College on London Road has been subject to redevelopment, creating 47 new residential units within Hinckley. Area: Hinckley and Bosworth Status: Complete Lead partner: North Warwickshire and Hinckley College Strategic Through gifting the site, acquired by HBBC from Morris Homes, NWHC was able to importance: relocate the campus within the town centre, ensuring that levels of activity within the centre were sustained. The quality of the design, alongside the Atkins Building, set a new benchmark for development within the town centre. The new campus provides a focus for the creative arts within Hinckley and complements the adjacent Atkins Building.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Delivery Project costs: The total cost of delivering the new campus was £13 million. This excluded the cost of the land, which was gifted to the College by HBBC following the acquisition of the site from Morris Homes. The net cost to the College was off-set through the disposal of the former college site on London Road for residential development. Timescales: The new campus was opened in September 2011. Partners and The delivery of the new Hinckley Campus was led by North Warwickshire and roles: Hinckley College. HBBC played a central role in enabling the scheme through gifting the site to the College and providing support through the planning process. Project Outputs and Benefits Outputs: Re-provision of modern educational facilities within Hinckley town centre Economic The project safeguarded the presence of North Warwickshire and Hinckley College benefits: within Hinckley town centre. It is estimated that investment of £13 million supported approximately 85 person years of employment in the construction. Based on the convention that 10 person years of employment is equivalent to one full time job, this equates to 8.5 FTE jobs. Wider The scheme has resulted in a range of wider benefits including: benefits:  Regeneration catalyst – the scheme has contributed to the wider regeneration of the town through bringing an underutilised site back into active use.  Strengthening the local economy – alongside the Atkins Building, the new Campus has provided a focus for the development of the creative and cultural sectors within Hinckley town centre.  Community benefits – the scheme has ensured that further education opportunities are retained within Hinckley town centre, in a central location accessible via sustainable forms of transport. The new campus has also significantly enhanced the quality of the facilities available to local residents.  Environmental exemplar – the scheme has showcased a range of materials and technologies within high levels of environmental performance.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Hinckley Business Improvement District

Project Characteristics Description: Hinckley Business Improvement District (BID) was established in 2009 for a five year term to 2014. The BID area covers the main town centre and encompasses approximately 450 businesses predominantly in the retail and food and drink service sectors. The BID has now entered into a second five year term. The activities of the BID in the first term comprised the following main elements:  Business Support – support offered to businesses has included funding for shop front improvements (£50,000), business advice surgeries, free training sessions (on tax, visual displays, social media), assistance with planning issues, free basic website development and lobbying support.  Marketing and promotion – the Hinckley Loyalty Card (more than 4,800 members), extensive promotional material (including 116 articles in the Hinckley Times, 2,000 slots on local radio) and 70 pieces of marketing literature including a welcome pack for new businesses and residents.  Events and visitor services – more than 30 events and associated promotional material including an annual soap box derby, pancake race and classic car show. Area: Hinckley and Bosworth (Hinckley Town Centre) Status: Ongoing Lead partner: Hinckley Business Improvement Partnership Strategic The BID was proposed by the Hinckley Town Centre Partnership in response to importance: concerns relating to the leakage of expenditure from the local area to larger retail centres. The BID was established with the aim of increasing usage of the town centre by the local community.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Delivery Project costs: The BID is funded primarily through business contributions. For businesses located within the BID area with a total Rateable Value of more than £2,000, the charge is set at 1.95% of total rateable value. The total annual turnover of the BID in 2014 was approximately £155,000. Timescales: First term – 2009-2014 Partners and The creation of the BID was led by the Hinckley Town Centre Partnership. roles: The BID has forged effective and lasting relationships with key stakeholders including key stakeholders (HBBC, Leicestershire County Council, NWHC, Leicestershire Chamber of Commerce), major employers (Triumph, MIRA, National Grid, Hinckley and Rugby Building Society) and visitor attractions (Twycross Zoo, Mallory Park). Project Outputs and Benefits Outputs:  Marketing - The BID has estimated that marketing support equating to at least £1,120 (and up to £4,715) has been provided to each business over a five year period.  Events – over a five year period the BID arranged 30 events within the town centre generating an estimated 150,000 visits. Economic Survey work undertaken by the BID indicates that retail vacancy rates within the BID benefits: area fell between 2012 and 2013 to an eight year low of 9.5%. This compares to a national average of 14.1%. An assessment of the economic benefits of the BID has been undertaken based on key areas of activity. In particular, the assessment has looked at the impact in terms of promoting activity within the town centre through a programme of events, as well as providing businesses with general support. Based on these components it is estimated that the BID has supported 75 gross jobs. Wider The BID has delivered a range of wider benefits as follows: benefits:  Image and perception – marketing and promotion has been targeted towards the local community, raising the awareness of residents of activities and services available within the town centre;  Community participation – events organised by the BID have generated significant levels of interest within the local community. Alongside drawing in spectators, events such as the box car rally and pancake race have encouraged participation by a range of groups within the local community.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: MIRA Technology Park

Project Characteristics Description: MIRA was founded in 1946 as the government-funded Motor Industry Research Association. It is now a world-class, independent, vehicle engineering and development consultancy which delivers intelligent solutions that solve its customers' challenging problems. MIRA provides a range of services including:  Vehicle engineering;  Test engineering;  Defence vehicle engineering;  Unmanned ground vehicles;  Low carbon vehicle engineering;  Intelligent transportation systems;  Certification and homologation;  Other aerospace and rail engineering. MIRA owns the MIRA Technology Park (MTP) which offers accommodation and facilities for a variety of businesses in the automotive, aerospace, rail, defence and digital technology sectors seeking to undertake research and product development in the UK. It is located in the local authority area of Hinckley and Bosworth in the East Midlands region within a secure 335 hectare landscaped park. Development of the MTP is expected to generate more than 2,500 jobs by 2021. In August 2011 the MTP was awarded Enterprise Zone (EZ) status by the UK Government and is the only transport sector focused EZ in the UK. EZ status offers a number of significant benefits to businesses located within the Park including discounted business rates and enhanced capital allowances. In November 2011, Regional Growth Fund (RGF) was secured by Hinckley and Bosworth Borough Council to provide off-site infrastructure. In May 2014 the MTP received approval for £7.4 million of investment (on an equity basis) under the Government’s Local Infrastructure Fund to support on-site access and infrastructure works. Subsequently, in July 2014, the MIRA Enterprise Zone Skills Centre was successful in securing £9.5 million from the Local Growth Fund with North Warwickshire and Hinckley College acting as the lead applicant. To date, MIRA has developed out some 7,800 sq m of floorspace, including a new control centre, and attracted investment from Aston Martin, Bosch, Lockhead Martin, Norgren and Haldex. Area: Hinckley and Bosworth, North Warwickshire and Nuneaton and Bedworth Status: Ongoing

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Lead partner: MIRA Strategic The MTP EZ is proposed within the context of a dedicated strategy articulated by the importance: LLEP in the Strategic Economic Plan (SEP). In particular, this establishes that:  the MTP Enterprise Zone is one of four Transformational Priorities that together aim to provide Leicester and Leicestershire and the UK with a global competitive advantage;  the proposals for the MTP Enterprise Zone will make it the largest transport sector R&D technology park in Europe. There is an aspiration for it to become a global centre for transport R&D; and  the SEP acknowledges the success of MTP, which has already created over 250 jobs and attracted significant foreign direct investment Project Delivery Project costs: The total cost of delivering the scheme is estimated to be approximately £350 million. In total more than £37 million of public sector support has been allocated to the development of the MTP including:  £19.6 million of Regional Growth Fund support for off-site and other infrastructure works;  £7.4 million of Local Infrastructure Fund support for on-site infrastructure works;  £9.5 million of Local Growth Fund support for the creation of a MIRA skills centre; and  £0.85 million of support from Leicester and Leicestershire Enterprise Partnership for marketing and promotional activities and business support activities. Partners including the LEP and local authorities are reviewing a wider package of investments aimed at ensuring that the benefits of the Enterprise Zone are maximised at the local level. Timescales: Key milestones to date include:  2011 – EZ status awarded to MTP  2011 – Regional Growth Fund support awarded for highway upgrades, a new power sub-station and a sustainable transport initiative;  2014 – Local Infrastructure Fund support confirmed for the construction of on- site infrastructure  2014 – Local Growth Funding support allocated for the delivery of a MTP Skills Centre Partners and The lead partner is MIRA. roles: Other project partners have played a key role, for example in securing funding:  Hinckley and Bosworth Borough Council – the Council acted as the applicant to secure £19.6 million of RGF support for off-site highway works and other investments.  North Warwickshire Borough Council and Nuneaton and Bedworth Borough Council - partners assisted in preparing the bid for RGF funding.  North Warwickshire and Hinckley College – in partnership with MIRA, the University of Leicester and Loughborough University, the College secured more than £9 million of LGF support for a MIRA Skills Centre. Project Outputs and Benefits

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Outputs: The completed development is expected to comprise 162,500 sq m of developed floorspace including:  139,000 sq m new research and development focused space;  Replacement of 24,000 sq m of existing MIRA facilities; and  Additional amenities including hotel, retail and café facilities comprising 7,000 sq m.  A new educational facility operated by North Warwickshire College in partnership with MIRA, the University of Leicester and Loughborough University. Alongside this, ongoing investment associated with the project will significantly upgrade the highway infrastructure adjacent to the site resulting in wider benefits. Economic To date, the MTP has attracted investment from Aston Martin, Bosch, Haldex, benefits: Norgren and Lockheed Martin. In excess of 7,800 sq m of new research space has been delivered, including a new control centre, providing upgraded facilities for employees of MIRA. It is estimated that new floorspace provides accommodation for around 350 employees, with a further 115 person years of temporary employment supported in the construction phase. It is anticipated that the MTP will continue to deliver significant economic benefits – both locally and nationally – in the construction and the operational phases as follows:  Construction Phase - In the construction phase it is estimated that capital investment of £350 million will support approximately 2,300 person years of construction related employment.  Operational Phase - Once fully developed out it is estimated that the MTP will accommodate approximately 2,500 jobs by 2021. Based on development to date, it is estimated that a further 2,150 jobs will be created over the next 10 years. Wider The delivery of the MTP is expected to result in a range of wider benefits including: benefits:  Strengthening the local economy – it is anticipated that the development of a major hub of automotive and related activities at MIRA will result in significant spin off benefits for the local economy. In particular, it is expected to support the growth of supply chain businesses within the automotive and related high technology and knowledge based sectors. In addition to this, it is expected to support the development of a critical density of expertise in relation to the automotive sector within the local area.  Image and Perceptions – MIRA is an internationally renowned centre for research and testing in the automotive sector. The MTP has national status through its designation as an EZ. Maximising the potential of this asset is expected to further raise the profile of the area – including both Hinckley and Nuneaton – as a focus for high technology and knowledge intensive investment.  Environmental effects – the MTP will be developed to a very high environmental standard. Further to this, investment will enable the current work of MIRA in relation to sustainable vehicles to be extended.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Hinckley Commercial Park

Project Characteristics Description: Hinckley Commercial Park is a large modern business park developed out since 2006 providing mainly distribution floorspace. The Park is located directly off the A5 and within 2 miles of the M69, offering good access to the wider motorway network. Phase 1 of the scheme commenced in 2006 and comprised around 65,000 sq m of distribution space. The scheme has attracted a range of occupiers including Syncreon and CAT Logistics. As part of the scheme, developer Goodman invested more than £12 million in land remediation, infrastructure and landscaping. This included a new roundabout and access point from the A5. Alongside this, the developer has contributed to establishing a bus link between the Park and Hinckley town centre. Phase 2 of the scheme commenced in 2013 with the development of a 30,500 sq m distribution unit for distribution firm DPD. The construction of this unit is now complete and following occupier fit-out will become operational in September 2015. A second unit of 15,300 sq m has been developed out speculatively, reflecting the return to strength of the distribution market within the ‘Golden Triangle’, and has also been taken up by DPD. Area: Hinckley and Bosworth Status: Phase 1 – Complete, Phase 2 – Complete Lead partner: Goodman Strategic The scheme delivers: importance:  The remediation and re-use of a prominent and under-utilised site located strategically on the A5;  Modern distribution accommodation within a high quality business park environment, diversifying and strengthening the local and the sub-regional property offer;  A range of employment opportunities for residents of Hinckley, Nuneaton and the wider area;  Catalytic benefits, supporting the wider regeneration of the A5 Corridor and promoting adjacent residential investment

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Delivery Project costs: The total cost of the phase 1 scheme, including land preparation and infrastructure costs, is estimated to be around £65 million. Total investment in relation to the Phase 2 scheme exceeds £100 million. Timescales: The Phase 1 scheme commenced in 2006 and completed in 2012 The Phase 2 scheme commenced in 2013 and completed in September 2015 Partners and The lead developer for the scheme is Goodman. roles: HBBC played an important role in:  Supporting the scheme through the planning process; and  Providing support to Goodman in relation to promoting the site and attracting investors. Project Outputs and Benefits Outputs: The scheme has delivered the following outputs:  30 ha of land brought forward for development;  114,000 sq m of new distribution floorspace;  A high quality business park environment benefiting from excellent access to the strategic road network via the A5. Economic The scheme has delivered important economic benefits in both the construction and benefits: the operational phases as follows: Construction - Based on capital expenditure of £170 million it is estimated that investment over the two phases has supported some 1,130 person years of construction employment. Based on the convention that ten person years is equivalent to a permanent full time job, this equates to 113 FTE jobs. Operational - It is estimated that floorspace delivered through the Phase 1 scheme accommodates some 805 gross jobs within the transport and logistics sector. The new DPD depot delivered through the Phase 2 scheme is expected to create around 800 FTE jobs upon completion. Wider The scheme has also delivered important wider benefits as follows: benefits:  Strengthening the economic base – the phase 1 scheme has played a critical role is establishing Hinckley as a prime logistics location within the Golden Triangle. Building upon its success, the developer was able to secure a national distribution firm for one of the largest parcel hubs in the UK in Phase 2 of the scheme.  Regeneration catalyst – work to bring the scheme forward has also supported the delivery of a wider programme of regeneration, including the delivery of around 350 new homes on a 25 ha brownfield site adjacent to the Commercial Park.  Image and perceptions – the scheme has significantly enhanced the quality of the site and the wider A5 corridor through delivering modern accommodation within a high quality business park environment.  Community benefits – working with partners including Goodman, HBBC has played a central role in implementing a bus service to the Park to link jobs opportunities to areas of employment need.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Triumph

Project characteristics Description: The company is engaged in the manufacture of motorcycles and related accessories and parts. It was formed in 1983. Its primary manufacturing sites are located within Hinckley. The following table provides key financial information for Triumph Motorcycles Limited for the 2010-2014 period.

Triumph Motorcycles Limited – key financials and employees (2010-2014) (£000s) 2014 2013 2012 2011 2010 Turnover 340,185 333,702 316,760 297,452 273,782 Profit (Loss) before Taxation -12,264 -12,792 2,659 4,580 4,710 Net Tangible Assets (Liab.) 55,470 54,894 64,320 62,298 69,364 Shareholders Funds 25,470 34,894 44,320 42,298 38,679 Profit Margin -3.61 -3.83 0.84 1.54 1.72 Return on Shareholders Funds -48.15 -36.66 6.00 10.83 12.18 Return on Capital Employed -22.11 -23.30 4.13 7.35 6.79 Liquidity Ratio 0.83 0.75 0.72 0.80 0.87 Gearing (%) 580.25 414.16 266.20 263.68 285.35 Number of Employees 508 490 478 478 483

Featuring liquid-cooled, three-and four-cylinder engines, the company's models include the 865cc Bonneville - with styling cues that hearken back to its Bonneville heritage, the Daytona 675, and the Sprint ST. Taking marketing strategies from Harley- Davidson, it also offers a line of garb and accessories that appeal to fans of British Steel. The company sells its motorcycles in more than 40 countries. In addition, the company produces a wide range of clothing and personal accessories for ladies, men, and children. It also has genuine motorcycle accessories such as

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

alarms, chrome items, custom paint, luggage, screens, seats, and silencer. The company has offices in America, Thailand, Malaysia, France, Germany, Italy, Japan, Sweden, and Benelux. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Triumph Motorcycles Limited Strategic In addition to Triumph’s strategic importance as a major employer in the local area, importance: the firm is part of Hinckley and Bosworth’s cultural heritage as the largest surviving motorcycle manufacturer in the UK. Furthermore, Triumph plays an important role within Hinckley and Bosworth’s Tourism Strategy and is identified as one of a number of ‘business tourism opportunities’ which seek to promote the area to national and international visitors and enhance the tourism offer. Project Outputs and Benefits Outputs:  Estimated that Triumph employs around 1,200 people within Hinckley  The factory produces an estimated 47,000 bikes each year Economic and Triumph makes a substantial contribution to the strength of the local manufacture wider benefits: sector, providing a strong base for exports.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Caterpillar

Project Characteristics Description: Caterpillar is one of the largest and most important employers within the Hinckley and Bosworth area. The site located in Desford is the head office location for Caterpillar (UK) and operates production lines for two vehicles – a backhoe loader and a compact wheel loader. The site, which has been a manufacturing base for Caterpillar for more than 60 years, comprises a manufacturing centre of more than 85,000 sq m including more than 4,000 sq m of office space. Alongside this, the site comprises more than 170,000 sq m of warehousing and associated space occupied by Neovia Logistics (formerly Caterpillar Logistics Services). In total, it is estimated that Caterpillar employs approximately 1,600 people across the Desford sites. The following table provides key financial information for Caterpillar (UK) Limited for the 2010-2014 period. Caterpillar (UK) Limited – key financials and employees (2010-2014) (£’000) 2014 2013 2012 2011 2010 Turnover 861,229 1,053,579 982,604 607,423 235,261 Profit (Loss) before Taxation 70,586 136,421 34,168 26,255 3,871 Net Tangible Assets (Liab.) 359,705 418,246 396,407 415,488 392,079 Shareholders Funds 330,637 273,577 149,662 289,401 259,043 Profit Margin 8.20 12.95 3.48 4.32 1.65 Return on Shareholders 21.35 49.87 22.83 9.07 1.49 Funds Return on Capital Employed 19.62 32.62 8.62 6.32 0.99 Liquidity Ratio (x) 2.95 4.28 1.35 2.06 2.86 Gearing (%) 17.52 58.11 197.06 43.57 59.28 Number of Employees 2,438 2,344 1,931 1,557 1,521

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Alongside supporting a wide range of jobs, the firm has a strong track record of recruiting apprentices, based on linkages with a number of further education providers. In 2011 the firm recruited more than 200 apprentices. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Caterpillar (UK) Strategic The strategic importance of the site relates to its status as one of the largest employers importance: in Hinckley and Bosworth and Leicestershire as a whole. The site accommodates a wide variety of jobs across a range of occupations and skills levels. Alongside this, the Caterpillar has established close linkages with local education providers and recruits a significant number of apprentices. Finally, the site makes a very significant financial contribution through business rates. In total it is estimated that the annual business rate payment in respect of the site is in excess of £3 million. Project Outputs and Benefits Outputs: At present there are estimated to be some 1,600 employees based at the Desford Plant. Economic and Caterpillar makes a substantial contribution to the strength of the local manufacture wider benefits sector, providing a strong base for exports.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: The National Forest

Project Characteristics Description: The National Forest was established in 1994/95 and covers a 200 square mile area across the counties of Staffordshire, Derbyshire and Leicestershire, including parts of the Hinckley and Bosworth Borough Council area around Markville and Groby. Across the wider National Forest area the delivery of a number of attractions – including the National Forest Way alongside Hilton Hotel Resort and Stonywell Cottage amongst them - has contributed to the National Forest being recognised as an emerging destination by VisitEngland. Future priorities for the Forest outlined in the Strategy 2014-2024 include:  Strengthening the position of the Forest as a national exemplar, centre of excellence and research partner;  Targeted expansion of the forest to ensure that the impact of creation programmes are maximised – ecologically and economically;  Enhanced forest management to establish the role of the Forest as an economic asset;  Enhanced visitor experience, offering greater variety and an improved journey through the Forest. Area: Hinckley and Bosworth and wider area Status: Ongoing Lead partner: The National Forest Company Strategic The National Forest Strategy for the period 2014-2024 sets out the overarching importance: aim/vision as: “By 2024, The National Forest will be a transformed landscape across 200 square miles of the heart of England.” Objectives under this aim are:  Enjoyed by everyone  Economically vibrant

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Celebrated for its quality  Sustainable into the future Project Delivery Project costs: N/A Timescales: The Forest was set up with cross party support in the 1990s. The first strategy period ran between 1994 and 2004. Key investments across the Forest area over the last 10 years include:  The creation of the National Forest Caravan and Camping club site and the YHA National Forest at Moira in 2007;  The creation of the National Forest Cycle Centre at Hicks Lodge in 2011;  The completion of the Hilton Resort hotel at St Georges Park in Derbyshire in 2012;  The opening of Stoneywell Cottage by the National Trust in 2014. None of these key investments lie within the Hinckley and Bosworth area. Partners and The Lead Partner is the National Forest Company. roles: Key project partners include:  Government departments and agencies;  Local authorities – including Hinckley and Bosworth Borough Council and Leicestershire County Council;  Private sector organisations; and  Voluntary organisations. Project Outputs and Benefits Outputs: Between 1994 and 2012 some 8 million trees were planted. By 2014 levels of planting equated to around 150 ha per annum, significantly lower than a peak of 575 ha in 2002/03. This reflects the changing focus for the forest. Economic Research commissioned by the National Forest Company in 2014 identified that the benefits: National Forest currently makes a significant contribution to the economy of the area, with this contribution expected to grow over coming years. In terms of current economic contribution the benefits are assessed in terms of:  the visitor economy – in 2012 it is estimated that there were 7.5 million visitors to the National Forest as a whole. This represents an increase of 9.6% over the number of visitors in 2003, with particular growth in the number of staying visitors. It is estimated that visitor expenditure in 2012 supported 5,800 jobs.  the woodland economy – it is estimated that the Forest supports the woodland economy, relating the role of the Forest as a recreational, educational and visitor destination resource, alongside the increasing the demand for wood fuel, crafts and furniture. The report does not seek to disaggregate the economic impact by local authority area. However, it is noted that the major attractions identified within the report lie outside of the Hinckley and Bosworth area. As such, while the Forest forms part of a cluster of wider attractions (including key attractions such as Twycross Zoo and Bosworth Field within Hinckley and Bosworth) there is considered to be significant opportunity to enhance the level of local impact through supporting investment in visitor attractions linked to the National Forest Brand.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The Genecon report identifies significant growth potential associated with the development of the National Forest over the period to 2024. In particular, it forecasts an increase in the number of visitor days and associated spend of 2 million and £606 million respectively over this period, supporting an estimated 2,777 FTE jobs. Alongside this, it is estimated that by 2030 the woodland economy will support a further 64 direct, indirect and induced jobs within the local economy. Wider Alongside increased visitor numbers, the assessment of the National Forest identifies benefits: a range of wider benefits as follows:  Social benefits – the Forest has a range of community engagement projects and programmes. In 2013 it is estimated that 38,000 school children and teachers participated in educational programmes.  Cultural benefits – the National Forest has commissioned a range of community led art installations across the forest.  Environmental benefits – alongside biodiversity, the Forest makes an increasingly important contribution to carbon sequestration and energy security.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Bosworth Water Trust Leisure Park

Project Characteristics Description: Bosworth Water Trust is a family orientated leisure and water park set in 20 hectares. The Park has around 8 hectares of lakes for windsurfing, sailing and canoeing, alongside other leisure activities. The site is a focus for events, including classic car shows and triathlons. The Park also has a well-established and popular campsite catering to families with tent pitches, hard-standing for caravans as well as a newly constructed lodge. Alongside this, the site has a café and bar. In 2013 the Park attracted around 120,000 visitors, including both day visitors and those staying overnight. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Bosworth Water Trust Strategic The Park is recognised as a valuable asset to both local residents and to the visitor importance: economy of Leicestershire. Its importance is recognised within the Leicestershire Visitor Strategy. Project Outputs and Benefits Outputs: It is estimated that 120,000 people visited the Bosworth Water Trust Park in 2013. This included a significant number of school and other groups. Economic Based on total visitor numbers of 120,000, it is estimated that the Park could benefits: potentially generate total visitor expenditure amounting to £5.0 million per annum – including both on-site and off-site expenditure. Based on this level of expenditure it is estimated that the Park could support around 100 gross jobs. Allowing for the effects of leakage, displacement and multiplier effects, it is estimated that the Park supports some 50 net jobs. Based on appropriate GVA per employee benchmarks, it is estimated that this level of employment could support annual GVA of £2.7 million.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Wider Alongside increased visitor numbers, the Park potentially results in a range of wider benefits: benefits including:  Social benefits – the Park attracts school groups and visitors from a range of backgrounds. It provides access to high quality leisure facilities, alongside opportunities for local residents to experience and learn new activities.  Environmental benefits – the park supports a wide range of land and water based ecology, and promotes the conservation of native habitats and species.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Future Projects Project Name: The Crescent

Project Characteristics Description: Located on the site of the former bus station, the Crescent is a comprehensive town centre regeneration project that will transform the offer within the town centre through the delivery of new retail and leisure floorspace. It will create a modern mixed-use development, well linked to the town centre providing larger units to complement the existing town centre shops and provide Hinckley with a purpose built, well configured retail scheme to meet modern needs. The scheme will also include public realm improvements to Station Road. This 25,000 square metres (270,000 square feet) scheme includes:  Sainsbury's superstore (9,300 sq m)  Five-screen multiplex cinema – agreement reached with Cineworld  Retail units and restaurants (7,800 sq m)  Offices (400 sq m)  New bus station  Car parking for around 550 cars. HBBC has played a key role as a development partner in catalysing the delivery of the scheme. Area: Hinckley and Bosworth Status: Delivery Lead partner: The lead partner is Tin Hat Regeneration Partnership. This partnership comprises: Wilson Bowden Developments Limited and Centenary Ashcroft LLP in conjunction with HBBC Strategic The scheme will: importance:  Significantly enhance the retail and leisure offer within Hinckley town centre, enabling the town to retain a greater proportion of its local retail expenditure;  Enhance the quality of the urban townscape, making Hinckley town centre a more enjoyable place in which to spend time

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Delivery Project costs: The total cost of the project is estimated to be £82 million. HBBC has invested approximately £4.5 million to acquire part of the site and deliver leisure units. Alongside this, HBBC has created a rolling loan facility of £7 million (through PWLB borrowings) to support the delivery of the wider scheme. The net margin on this facility is expected to be in excess of £250,000. The scheme is also expected to generate positive financial benefits to the Council once it is operational. It is estimated that development will result in a business rates uplift of more than £750,000 per annum (£375,000 after the levy). Alongside this, rental income associated with HBBC land ownerships is expected to be in the order of £320,000 per annum. Timescales: Key project milestones are as follows:  January 2011 – Planning consent granted;  June 2014 – Site works commence;  November 2015 – Superstore to open;  December 2015 – Cinema and leisure units to open. Partners and Wilson Bowden - lead developer roles: Centenary Ashcroft – asset and development manager HBBC - in their capacity as a member of the Tin Hat Partnership, has provided significant assistance to enable the project to proceed:  Land assembly – HBBC used CPO powers to assemble the site for redevelopment. Alongside this, the Council invested £4.5 million to acquire part of the site and deliver leisure uses including a cinema and food and drink activities  Loan facility – HBBC has provided the Partnership with access to a rolling facility of £7 million at preferable rates of interests as a means of supporting cashflow to enable site assembly and facilitate the early commencement of construction. Project Outputs and Benefits Outputs: The project is expected to deliver the following outputs:  approximately 4 ha of land within a town centre improved and redeveloped;  25,000 sq m of new commercial floorspace delivered;  550 car parking spaces  creation of a high quality public realm environment. Economic It is anticipated that the Crescent scheme will result in significant economic benefits benefits: across the local Cross-Border Partnership area in both the construction and the operational phases. Construction Phase Based on capital investment of £82 million, it is estimated that construction and associated expenditure will support some [550] person years of construction related employment. Based on the convention that 10 person years of employment is equivalent to 1 permanent job, this equates to [55] FTE jobs. Operational Phase The socio-economic impact assessment submitted as part of the Environmental Statement alongside the planning application (10/00743/OUT) identified the potential for the scheme to generate an estimated 609 gross additional jobs within the Borough and more than £20 million net additional GVA per annum.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Based on a high level assessment of impact, reflecting revised proposals and updated benchmarks, it is anticipated that new floorspace will accommodate in excess of 1,000 gross jobs. Wider The scheme is expected to deliver important wider benefits: benefits:  Regeneration catalyst – the scheme will significant enhance retail and leisure provision and enhance the quality of the environment within the town centre. It will create a new focus for activity, helping to maximise the capture of local retail expenditure. It is anticipated that creating a new focus of activity within the town centre will stimulate further investment to address falling standards across the remainder of the retail offer.  Community benefits – the scheme will extend the range of local retail and leisure facilities within close proximity to local communities. It will also significantly enhance the quality of the public realm environment within the town centre to the benefit of local residents.  Environmental benefits – the scheme will create high quality retail and leisure facilities and employment opportunities within a highly sustainable town centre location. The reprovision of the bus station will ensure a high level of accessibility by sustainable transport options.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Argents Mead Leisure Centre

Project Characteristics Description: The new leisure centre at the site of the former HBBC offices will provide state of the art leisure facilities within the town centre. The new centre will provide one of the best facilities within the Midlands. The new leisure centre will offer like for like facilities, albeit providing a significant improvement in terms of quality and access arrangements. As such, the new centre will offer a pool and starter pool alongside a sports hall and gym. The gym within the new facility will be 50% larger than the existing leisure centre. It is anticipated that upon the completion of the new facility the existing leisure centre will be redeveloped as part of a residential led mixed use scheme. Area: Hinckley and Bosworth Status: Delivery Lead partner: Places for People Leisure / Hinckley and Bosworth Borough Council Strategic The re-provision of leisure facilities at Argents Mead has been identified as importance: responding to key objectives, particularly in terms of:  Delivering a very high standard of leisure provision for local residents;  Addressing a significant liability associated with the retention of the existing leisure centre;  Retaining provision within the town centre, contributing to the wider regeneration of the town centre;  Maximising the economic potential of a prominent site within the town centre. Project Delivery Project costs: The total capital cost of the project is estimated to be £15.1 million. Funding for the project is as follows:  £7.1 million – HBBC capital funding  £8.0 million – HBBC loan funding (capital repaid by operator over 20 years)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

By comparison the capital cost to the Council of refurbishing and extending the life of the existing facility was estimated to be up to £8.4 million. Timescales:  2007/08 – HBBC made provision within capital budget to initiate process to develop proposals for a new leisure centre for the Borough;  2008 - Site for new leisure centre identified at Hinckley Cricket Club;  2009 - Project deferred as a result of cuts to HBBC capital budget;  2010 - Capital works undertaken to extend the life of the existing leisure centre to 2015;  2012 - RLP Consulting appointed to undertake a review of options for future provision of leisure facilities within Hinckley;  2012 - Argents Mead identified as the preferred location for the new facility;  2013 - Specification issued for the procurement of an operating partner;  2013/14 - PFP Leisure (formerly DC Leisure) selected as the preferred partner to build and operate the centre;  2014 - Building work commenced;  2016 - New leisure centre to open. Partners and  HBBC – Funding, site selection, operator selection roles:  Places for People Leisure – selected by HBBC to build and operate the new leisure centre under a DBOM contract Project Outputs and Benefits Outputs:  The delivery of 6,420 sq m of high quality new leisure floorspace within the town centre;  An increase in the number of leisure centre visits from 650,000 per annum to 880,000 per annum. Economic It is anticipated that the scheme will result in a range of economic benefits benefits: associated with construction related employment, increased usage by local residents and associated off-site expenditure. Construction Phase Based on a construction expenditure of £15.1 million it is estimated that 101 person years of employment could be supported in the construction process. Based on the convention that 10 person years of employment equates to 1 permanent job, it is estimated the scheme could support 10 FTE equivalent jobs. HBBC and PFP Leisure have sought to maximise the usage of local labour within the construction process. Alongside this, as part of the agreement, a commitment has been made to employing a number of apprentices in the construction process. Operational Phase HBBC and PFP Leisure have indicated that staff working within the existing leisure centre will be retained. It is anticipated that the Centre will result in increased usage of facilities – from 650,000 visits per annum to 880,000. Based on an initial assessment undertaken by HBBC, it is estimated the levels of expenditure arising in the town centre will increase from £3 million per annum to £5 million per annum. This level of expenditure could support some 40 jobs within the town centre. Wider It is expected that the scheme will deliver a range of important wider benefits as benefits: follows:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Regeneration catalyst – The re-provision of leisure facilities within the town centre will contribute to increasing levels of footfall across the centre. In particular, it is anticipated that key elements such as the enhanced facilities and new café overlooking the greenspace will result in an increase in the number of visits and dwell times within the town centre, resulting in increased expenditure support local businesses.  Community benefits – the scheme will significantly enhance the quality of leisure facilities available within the Borough. It is anticipated that that this will increase the number of people using the facilities, with consequent long term benefits in terms of health and well-being. Alongside this, the scheme will result in the creation of a new public space for community use. It is anticipated that the scheme will also enable the redevelopment of the existing leisure centre, leading to the creation of new homes within the town centre.  Image and perception – the new leisure centre will be of a very high quality. In replacing the former HBBC offices, it will result in a significant improvement in the quality of the environment in this town centre location. The scheme will also unlock the redevelopment of the existing, outdated leisure centre.  Environmental sustainability – The new facility has been designed to a very high level of environmental sustainability. Key features include a green roof.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Rural Broadband

Project Characteristics Description: Superfast Leicestershire is an existing £18.8m project, led by Leicestershire County Council (LCC), to bring superfast fibre broadband to as many premises in Leicestershire as possible, reflecting initial LCC objectives to achieve a 100% roll out by 2018. This programme is being delivered in partnership with BT under a Phase 1 contract over the period 2014-16. While achieving the initial target is likely to prove challenging, it is anticipated that the Phase 1 contract will secure access to broadband at speeds of 24 Mb/s to 26,000 premises across Leicestershire. LCC has now agreed an extension to this programme through a Phase 2 contract, with an indicative funding allocation of £9.2 million. This extension project will enable provision to be rolled out to remaining areas on a targeted basis. The scale of the extension programme may increase, subject to securing additional funding from district councils. Within Hinckley and Bosworth there are estimated to be a total of 50,000 premises. It is estimated that 37,000 premises have been reached by the market. It is anticipated that the Phase 1 and Phase 2 projects will extend market coverage to 95% (mainly focused on the Hinckley area). Following the Phase 1 and Phase 2 contracts it is estimated that 2,500 premises will still not be receiving Next Generation Access. A range of innovative and community led solutions are being investigated for these residual premises. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Leicestershire County Council Strategic The project has significant importance. In particular, it will seek to meet the strategic importance: objectives of the Government and Leicestershire County Council to ensure full

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

coverage by NGA broadband. It will play a critical role in narrowing the digital divide between Hinckley (where NGA broadband installation has been led by the market) and the rural hinterland. This process is considered to be critical in terms of supporting business growth and access to services across the Borough. Project Delivery Project costs: The total cost to the public sector of the phase 1 contract is £18.8 million. Funding has been secured from Leicestershire County Council, alongside DCMS, ERDF and funding from district councils. Funding from HBBC amounted to £50,000. To date, funding of £9.2 million has been secured in relation to the Phase 2 contract. Negotiations with district councils in relation to this contract are ongoing. Timescales: Investment under the Phase 1 contract will be carried out over the period 2014-16. The period of the second contract is 2016-18, albeit with a gap of 6 months between the contracts. Negotiations are ongoing to eliminate this gap. Partners and  Leicestershire County Council roles:  BT  HBBC and other district councils Project Outputs and Benefits Outputs: The anticipated outputs at the Leicestershire level are as follows:  Phase 1 – 54,000 premises upgraded to NGA broadband  Phase 2 – 18,000 premises upgraded to NGA broadband Within Hinckley it is anticipated that the Phase 1 and Phas2 programmes combined will upgrade 10,500 premises to NGA broadband. Alongside the Phase 1 and Phase 2 programmes, it is noted that the private sector has led a number of investments within Hinckley and Bosworth, notably at MIRA and Dodwells (led by Warwicknet – a small locally based service provider). Economic At a national level, economic benefits are expected to arise from investment in benefits: enhanced broadband infrastructure as a result of a range of factors including:  Productivity growth of broadband-using enterprises;  Safeguarding of local enterprise employment;  Enhanced teleworker productivity;  Enhanced labour market participation; and  Network construction impacts. Research undertaken by LCC indicates that investment in broadband infrastructure could generate economic growth of £91 million per annum by 2021. Based on the UK economic impact of broadband study (SQW) it is estimated that investment in enhanced broadband infrastructure has the potential to support more than 50 jobs. This figure is relatively low as a significant proportion of the benefits will accrue to businesses in the form of productivity improvements. Wider There are a range of wider economic benefits associated with investment in benefits: broadband infrastructure as follows:  Social impacts – Investment to enhance and extend broadband infrastructure has the potential to result in a range of social benefits, particularly in terms of narrowing the digital divide and promoting household savings through reducing the need for commuting. Alongside this, there is clear scope for the extension of broadband to support new models of service delivery for key public service

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

providers, particularly in the education and health sectors. This has the potential to be of particular benefit for groups with limited access to services, particularly those located in rural areas.  Environmental impacts – the extension of broadband services has the potential to deliver significant environmental benefits, particularly through reducing carbon emissions associated with commuting.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Twycross Zoo

Project Characteristics Description: Twycross Zoo is a key visitor attraction within the Borough. Renowned as a world primate centre, it is the only zoo in the UK with all four of the great ape species. Over the last decade it is estimated that the Zoo has averaged around 490,000 visitors per annum. While this places it in the top ten of zoos nationally, an economic impact assessment commissioned by the zoo (BrittonMcGraph Associates) has advised that it is ‘treading water, reaching out to the local market but not becoming a true destination. The impact assessment indicates that significant opportunities exist to extend the reach of the Zoo. In particular, it notes that as a result of its central location, Twycross has the potential to extend its catchment to reach an audience of more than 20 million visitors and residents. The Zoo has a planned programme of capital improvement works which are currently being implemented. Phase 1, relating to the reintroduction of giraffes to the Zoo, is now complete. Investment is ongoing to create a new gibbon enclosure, new chimpanzee environments and re-purposing existing buildings to create an indoor tropical house. This investment forms part of a wider 20 year masterplan for the Zoo, launched in March 2015. The aim of this development strategy is to double the number of visitors to the Zoo, while improving levels of animal welfare. Plans under this wider masterplan include a children’s water park and enlarged facilities as part of a new ape centre. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Twycross Zoo Strategic The Zoo is the largest visitor attraction within the Borough. However, analysis importance: undertaken on behalf of the Zoo has indicated that it is failing to maximise key opportunities associated with its reputation and central location.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

The project has the potential to play a central role in developing the Borough as a visitor destination. In particular, linked to other attractions, the Zoo will form a central component of a visitor economy framework for the area. Project Delivery Project costs: The total estimated cost of the capital investment works is estimated to be £10.5 million over three years. This forms part of a wider investment strategy proposed over the next 20 years which will seek to improve the welfare of animals and boost visitor numbers, providing the Zoo with a more sustainable financial footing. The total cost of the wider investment strategy is estimated to be £55 million. Timescales: The initial phase of investment commenced in 2014 and will continue to 2016. Partners and The phase 1 project is led by Twycross Zoo roles: The Zoo has benefited from the support of a number of key partners including Natwest Bank HBBC has supported the Zoo through the planning process NWBC is supportive of development at Twycross Zoo Project Outputs and Benefits Outputs: Outputs identified under the Phase 1 investment programme include:  New animal enclosures  Enhanced visitor facilities  Improved signage and access arrangements Economic The proposed project will result in important economic benefits in the construction benefits: and the operational phases as follows: Construction phase Based on a total investment of £10.5 million, it is estimated that some 70 person years of on-site and related employment will be supported through the construction process. Operational Phase The economic impact assessment carried out by BrittonMcGraph Associates estimates that the initial phase of investment will result in a 20% uplift in the number of visitors to the zoo, equating to approximately 100,000 visitors per annum. Based on this uplift in activity, the impact assessment estimates that increased visitor expenditure will support some 96 FTE gross jobs at the Zoo and within the wider area, with a further 39 jobs in the local supply chain. Investment over the longer term has the potential to further extend the reach of the Zoo. Moreover, measures to promote greater linkages between the Zoo and other local attractions (for example through promoting an improved accommodation offer) have the potential to ensure that local benefits associated with the Zoo are maximised. Wider In addition to the benefits identified above, it is anticipated that the project will benefits: result in a range of other important benefits as follows:  Strengthening the visitor economy – it is anticipated that investment will strengthen the appeal of the Zoo, enhance the quality of the visitor experience and further extend its catchment. As such, it will play a critical role in building a density of attractions within the local area. To ensure that the local benefits are

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

maximised, linkages between the Zoo and other local attractions (and visitor accommodation) should be reinforced.  Community engagement – The Zoo has an active volunteer community. This community plays an important role in enhancing the overall visitor experience and communicating the role of the Zoo. In particular, the Zoo provides an important focus for community based activities – including educational activities – across the local area.  Image and perception – Investment will significantly enhance the visitor experience, contributing to improved visitor perceptions and reviews of the attraction. The enhancement of the Zoo is expected to improve general perceptions of the area as a visitor destination, linked to other local attractions.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Market Bosworth Marina

Project Characteristics Description: A new 150 berth marina located on the Ashby Canal adjacent to the town of Market Bosworth is nearing completion. The on-site facilities include fixed length pontoons and gated jetties, alongside full electric, water and pump-out services. Facilities also include a 300 sq m facilities building accommodating a booking office, chandlery, boater facilities and a lounge. Facilities are of an extremely high standard, offering full disabled access. In future it is anticipated that café/restaurant facilities will be delivered on-site. The Marina has experienced very high levels of demand prior to completion – there are already 65 boats moored at the marina with a further 100 moorings (including long and short term places) reserved, with demand for accommodation from a boat brokerage company. Area: Hinckley and Bosworth Status: Ongoing Lead partner: Trivett family Strategic  The key strategic contribution of the scheme relates to extending the range and importance: density of visitor attractions and facilities within the local area. Project Delivery Project costs: The total cost of the project is estimated to be £2.5 million. Delivered by contractors based in the wider Leicestershire and Warwickshire area (GJP Marinas, Trivett family, Kedler) Timescales: 2011 – Planning permission granted 2013 – Works commenced 2015 – Project completion (SSSI works outstanding)

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Partners and  Leicestershire County Council – significant support through the planning process. roles:  Canal and River Trust – dedicated support from the Marina Unit at CRT Project Outputs and Benefits Outputs: Key outputs of the project are as follows:  153 berth marina completed  500 m of towpath area improved  Works to enhance ecological habitats including a SSSI. Economic It is anticipated that the marina will support 3 direct jobs (site manager and benefits: caretaking roles). A boat brokerage service will also be offered on site. It is anticipated that the project will result in additional visits to the local area and spin off visits to other local attractions including:  Bosworth Battlefield  Bosworth Trust Water Park  Bosworth town. Allowing for 100 visitor nights per berth per annum, based on combined long-term and short-term moorings, it is estimated that the marina could support 15,300 visitor nights per annum. Based upon appropriate benchmarks for inland marinas, it is estimated that the scheme has the potential to support a further 20 jobs in the local support chain. Wider It is expected that the Marina will result in a range of wider economic benefits as benefits: follows:  Strengthening and diversifying the visitor economy – the marina extends the visitor offer, drawing new visitors into the area. In particular, there is an opportunity to ensure that linkages between the marina and adjacent attractions are maximised.  Environmental improvements – as part of the project works are being undertaken to enhance a SSSI adjacent to the site. Works including the planting of new habitats.  Social benefits – the marina is one of the few within the region to offer full DDA compliant access arrangements, opening up canal boating opportunities to groups with more limited mobility.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Barwell and Earl Shilton Sustainable Urban Extension

Project Characteristics Description: Barwell and Earl Shilton were identified as the preferred location to accommodate housing growth within Hinckley and Bosworth as part of the preparation of the Core Strategy (adopted in 2009). The two allocations – land to the west of Barwell and land to the south of Earl Shilton – were identified as having the least constraints to development. They were also identified as offering the greatest potential benefits in terms of facilitating the regeneration of the existing town centres. Hinckley and Bosworth Borough Council has prepared an Area Action Plan (AAP) setting out a vision for the delivery of two new major Sustainable Urban Extensions (SUEs) Earl Shilton and Barwell. The growth of these SUEs will be supported by the provision of community facilities including new schools and healthcare services, substantial recreation space, and improved walking, cycling and public transport provision between the SUEs and Barwell, Earl Shilton town centres. These developments will create a new neighbourhoods comprising of a range of housing types and tenures including new affordable housing. It is envisaged that the SUEs will extend the housing offer within the Borough, responding to identified demand and creating a new market within the wider Hinckley area. Alongside this, under the AAP, it is envisaged that the SUEs will directly benefit the existing town centres of Barwell and Earl Shilton. In particular, it is anticipated that the existing centres will benefit from an increase in custom as the local residential base grows. The Council has identified a range of regeneration opportunities within each town centre and will work with interested parties to secure investment to seek to maximise the local benefits of growth. Area: Hinckley and Bosworth Status: Future Lead partner: Hinckley and Bosworth Borough Council Strategic The strategic importance of the Barwell and Earl Shilton SUEs includes: importance:  The SUEs respond to projected population growth and seek to ensure that new housing development is accommodated within a sustainable location;  To create new vibrant communities that integrate and effectively contribute to the existing built environment;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Maximises the potential to regenerate the existing town centres of Barwell and Earl Shilton, both of which are identified as being in need of investment. Project Delivery Project costs: It is anticipated that the total combined cost of the SUEs will be in excess of £400m. The Area Action Plan identifies scope for infrastructure costs of £80 million to support the delivery of the SUEs. This includes provision for infrastructure and access enhancements, alongside works associated with the delivery of new education, health and community facilities. It also allows for a developer contribution of £20 million in lieu of half of the on-site policy requirement for 20% affordable housing. Timescales: The phasing of development remains subject to ongoing design development and negotiations. Indicatively it is anticipated that the initial phases of development at Barwell will be completed in 2016. It is anticipated that completion rates will increase over the life of the development from around 50 dwellings per annum up to 300 dwellings per annum. Earl Shilton remains further from delivery. Pending the determination of a planning application, it has been indicated that initial phases will be completed in 2018, with rates of delivery of up to 200 dwellings per annum. Partners and HBBC has played an important role in establishing the rationale for the creation of roles: the SUEs and their proposed location. Proposals for each of the SUEs are now being advanced by separate consortia of developers as follows:  Barwell SUE – comprising a number of developers including Taylor Wimpey, Ainscough Strategic Land and Barwood.  Earl Shilton SUE – comprising of a number of developers including Barwood, Bloor Homes and Jelson Homes. Project Outputs and Benefits Outputs: The schedule of outputs has been derived from the AAP and informed by project specific discussions. The key outputs for each project are as follows: Earl Shilton  81 hectares (200 acres) of land for development to create a new SUE;  A minimum of 1,600 new homes, with initial phases to be completed in 2018;  An allowance for affordable housing at 20% of total units equating to 320 affordable units (50% potentially to be delivered off-site through a commuted sum);  4.5 hectares (11 acres) of employment development for local office (minimum of 0.5ha), industrial and warehouse uses;  A new neighbourhood centre including a primary school, local convenience retail offer, community and recreation provision and sports facilities. It is anticipated that the SUE will be accessed via new connections to the existing A47, linking the SUE to the A5 corridor. Barwell Key outputs of the project are as follows:  127 hectares (300 acres) of mainly greenfield land for the development of a new SUE;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 2,500 new homes, with initial phases to be completed in 2016 subject to ongoing negotiations;  6.2 hectares (15.3 acres) of employment development for primarily local industrial and warehouse use;  A community centre comprising of a new two form primary school, local convenience retail provision, community and recreational facilities, including 9.6 ha of outdoor sports pitch provision. It is envisaged that the SUE will be accessed via the A44. Economic Alongside 4,100 new homes, it is anticipated that new employment provision could benefits: lead to the creation of jobs for local residents. It is anticipated that the delivery of new homes will result in significant levels of economic activity linked to increased household expenditure. Based on the proposals, and informed by benchmark rates for development density, it is anticipated that a total area of 10.7 ha could support 2,000 sq m of office and 36,000 sq m of industrial / warehouse type floorspace. Based on employment density benchmarks (allowing for a level of vacancy) and estimates for increases in household expenditure, it is anticipated that new the delivery of the sustainable urban extensions could generate some 1,000 gross jobs. Wider It is expected that the proposed urban extensions will result in a range of wider benefits: economic benefits as follows:  Regeneration catalyst – the SUEs will act as a catalyst for the regeneration of the existing town centres of Barwell and Earl Shilton;  Community services – the schemes will result in the delivery of new community infrastructure including education, health, recreation, and leisure facilities. It is anticipated that existing communities will also benefit from the delivery of these facilities;  Extend the local housing market – it is anticipated that the schemes will provide a new market offer, potentially attracting new households to the area supporting local growth;  Strengthen the local economy – the allocation of land has the potential to open up high quality sites for new employment provision. Building upon recent schemes, including the Greenfields project, there is an opportunity to deliver new and innovative product types as part of the overall employment offer.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Hinckley and Bosworth - Site Allocations

Project Characteristics Description: The Site Allocations and Development Management Policies Document allocates land to deliver the development requirements outlined in the Hinckley and Bosworth Core Strategy over the period to 2026. The Document, which is currently at examination, identifies allocations in relation to housing, employment, recreation, green spaces, community uses and leisure uses. Updating the 2009 Core Strategy, the Document identifies sites to meet the minimum housing requirement within each of the key urban and rural settlements across the Borough. It sets out allocations to support the delivery of 817 units over five years as part of an overall total allocation of 1,713 over the longer term. In addition to this, the Allocations Document identifies sites for employment development, reflecting the 2013 Employment Land and Premises Review (BE Group). A number of these sites, including the MIRA Technology Park Enterprise Zone and Hinckley Commercial Park phase 2, have already been considered separately. However, in addition, the Document allocates a number of other major sites for employment activities including land for Neovia at Desford, Nailstone Colliery and Tungsten Park, alongside a number of smaller sites. In total, it is estimated that these sites comprise around 44.7 ha of land with the potential to accommodate some 172,000 sq m of floorspace. Area: Hinckley and Bosworth Status: Examination Lead partner: Hinckley and Bosworth Borough Council Strategic The Site Allocations and Development Management Policies Document will, upon importance: approval, form part of the Hinckley and Bosworth Local Plan. The document will be used by Hinckley and Bosworth Borough Council in determining planning applications. Project Delivery Project costs: N/A

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Timescales: The Site Allocations and Development Management Policies Document is for the period to 2006 to 2026 Partners and Key partners in relation to delivering this plan include: roles:  Land owners  Developers  Neighbouring local authorities Project Outputs and Benefits Outputs: Sites allocated through the plan provide capacity for:  44.7 ha of new employment development; and  1,713 dwellings including 817 dwellings to be delivered within 5 years. Economic Employment Allocations benefits: Based on the Employment Land and Premises Review (2013), it is estimated that Hinckley and Bosworth has a total forward land supply of 98.6 ha. Excluding MIRA and Hinckley Commercial Park (which have been assessed separately) as well as schemes delivered to date (including Flude House), it is estimated that the Borough has a forward land supply of around 44.7 ha. It is estimated that this land could accommodate some 170,000 sq m of employment floorspace. Allowing for standard assumptions in relation to the mix of uses, occupancy levels and employment densities, it is estimated that new floorspace could accommodate 2,225 gross jobs (see Table below). Site Site (ha) F’space Gross Net jobs (sq m) jobs Tungsten Park, Hinckley 1.7 6,120 149 80 Jarvis Porter, Coventry Rd, Hinckley 0.9 3,525 73 39 Nailstone Colliery 24.4 93,100 1,117 603 Neovia, Desford 15.8 61,600 739 399 Interlink Distribution Park 1.2 4,270 88 48 Dunlop Ltd, Bagworth 0.7 2,800 58 31 Total 25.7 79,605 2,224 1,201 Based on benchmarks for leakage (reflecting the allocation of sites to meet local need), displacement and multiplier effects, it is estimated that the development of new premises on these sites could create around 1,200 net additional jobs. The net GVA impact could equate to in excess of £80 million per annum. Housing allocations It is estimated that 1,713 dwellings could support an increase in local household expenditure of around £11.5 million per annum. This level of expenditure has the potential to support 90 full time equivalent gross jobs. Allowing for leakage, displacement and multiplier effects, it is estimated that the increase in household expenditure resulting from the delivery of the allocated sites could result in 45 net additional jobs. Over five years, it is estimated that the delivery of 817 residential units could lead to an increase in household expenditure of £5.5 million per annum. It is estimated that this expenditure could support 45 gross FTE jobs and 22 net additional jobs. Wider The development of employment and housing sites allocated through the plan has benefits: the potential to deliver important wider economic benefits in relation to:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Catalysing regeneration – schemes have the potential to support wider regeneration effects  Attracting inward investment – a range high quality employment sites will enable Hinckley and Bosworth to capture inward investment opportunities, including opportunities associated with key stakeholders (including MIRA and Caterpillar);  Improving the image of Hinckley and Bosworth – high quality schemes have the potential to further enhance perceptions of the area as a place to work and live; and  Creating new opportunities for local residents – the creation of employment opportunities alongside extending and diversifying the housing offer.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Hams Hall Regional Logistics Site

Project Characteristics Description: The site of three former power stations – Hams Hall A, B and C – the Hams Hall Distribution Park was brought forward in the early 1990s across the sites of the ‘A’ and ‘C’ power stations. The scheme was advanced by PowerGen (now E.On) working with a number of developers. The site of the former ‘B’ power station was integrated into the Green Belt. The Hams Hall Rail Freight Terminal was opened in 1997. The 5 ha site, which has storage for 6,000 TEU, has a customs clearance to enable it to handle international traffic via the Channel Tunnel. Hams Hall is now an established major employment location located adjacent to the M42 and M6 Toll. Hams Hall is a Regional Logistics Site extending to around 200 hectares and accommodates a number of major logistics companies alongside distribution centres for retailers and manufacturers. Following a variation to the planning consent, permission was granted to allow manufacturing activity on the site, enabling the BMW Engine Manufacturing Plant to be accommodated at Hams Hall. Key occupiers at Hams Hall include:  BMW – production commenced in 2001 following investment of £400 million. The factory is located on a site of approximately 34 ha (including 13ha of expansion space) and comprises around 115,000 sq m of floorspace. BMW estimates that the factory, which has built on average around 390,000 engines per year since 2007, employs around 800 workers.  Sainsburys – a major regional distribution centre extending to approximately 75,000 sq m. The centre accommodates approximately 700 employees within the warehouse and 250 HGV drivers.  Beko – currently based in a 14,000 sq m unit and employ 70 staff. Beko is seeking expansion space at Hams Hall to take advantage of established links with the rail freight terminal.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

It is understood that all of the major plots at Hams Hall have now been developed out, allowing for the retention of significant land holdings by existing occupiers for future expansion. There is now an opportunity to develop the former ‘B’ power station site. The site comprises 21 ha and lies within the designated Green Belt. It is recognised that the site may be brought forward in the future for renewable energy uses. Area: North Warwickshire Status: Ongoing Lead partner: E.On Strategic The strategic importance of the site relates to the following factors: importance:  The site is one of three regional logistics sites within the West Midlands reflecting the scale of the site and the presence of a rail freight terminal;  The site is a major employment location providing a range of employment opportunities including advanced manufacturing jobs at the BMW engine plant;  The site generates in excess of £10 million in business rates income to North Warwickshire Council per annum. Project Delivery Project costs: There has been very significant investment at Hams Hall over a period of more than 20 years. The scale of investment is illustrated by the BMW engine plant which cost in excess of £400 million to construct prior to opening in 2001. Timescales: Hams Hall Distribution Park initially commenced in 1994. The Park remains a very important employment location and, subject to securing appropriate consents, the site will continue to be developed out over a number of years as existing occupiers expand. Partners and The scheme has been led by E-On (formerly Powergen). roles: Project Outputs and Benefits Outputs: To date, based on a review of hereditaments at Hams Hall, it is estimated that some 500,000 sq m of predominantly distribution floorspace has been delivered. The scheme has been facilitated through the delivery of new off and on-site infrastructure (including enhanced access to the motorway network at Junction 9 of the M42 via the A446. The scheme has also benefited from the delivery of the Rail Freight Terminal, which represents a key link for a number of occupiers of the Hams Hall estate. Allowing for the development of the ‘B’ site, it is anticipated that future phases have the capacity to accommodate a range of uses. This site remains within the Green Belt, although it has recognised potential to accommodate renewable energy facilities. Economic Hams Hall is an established and significant employment area. Key employers include benefits: BMW (estimated 800 jobs) and Sainsbury’s (estimated 950 jobs). The site accommodates a range of other distribution occupiers. Based on employment density benchmarks, it is estimated that other occupiers provide employment for more than 3,600 people at Hams Hall. On this basis, total employment at Hams Hall is estimated to be in excess of 5,350.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

It is estimated that future phases of development at Hams Hall have the potential to generate a range of benefits. Notably, the scheme has the potential to deliver renewable energy infrastructure, subject to the identification of need. Wider  Strengthening and diversifying the local economy - Hams Hall played an important benefits: role in establishing the North Warwickshire and the wider M42 corridor as a key focus for the distribution sector. Investment by BMW has also played an important role in developing the area as a focus for high technology manufacturing, linked to the wider automotive sector across the wider West Midlands.  Social benefits – significant employment opportunities have been generated for local residents in both the construction phase (including land and infrastructure works as well as the delivery of employment accommodation) and for businesses located on the Park. Alongside creating a wide variety of jobs – supporting the employment across a range of occupations and skill levels - a number of businesses (notably BMW) have developed apprenticeship programmes  Environmental improvements – while establishing the area as a major employment zone, the project has also enabled the remediation of a former power station site. Further phases will see this remediation work extended to the former ‘B’ site to deliver new renewable energy infrastructure.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Birch Coppice Regional Logistics Site

Project Characteristics Description: Birch Coppice is a former colliery site which following the closure of the mines has been successfully redeveloped for large scale warehousing and distribution uses over the period from 2000. In total the site extends to 165 hectares. Following the development in 2006 of the Birmingham Intermodal Freight Terminal (BIFT), a rail freight terminal extending to 14.5 ha and capacity to store 3,000 TEU, Birch Coppice has been designed as one of three Regional Logistics Sites within the West Midlands. The development of the site has been split into three phases. To date, significant development has taken place under phase 1, with this phase largely complete. Phase 2, comprising of 186,000 sq m of B8 floorspace, was granted planning consent in 2010 and delivery of this phase is ongoing. Planning consent for Phase 3 was granted in 2013, allowing for 33,265 sq m of B1(c), B2 or B8 floorspace. There is estimated to be around 40 ha remaining to be developed out across Phases 2 and 3. Alongside these phases, permission has also been granted for 63,000 sq m of B1(c), B2 or B8 floorspace at the adjacent Hall End Farm site. Key occupiers already located at the site include:  Volkswagen Group – 68,000 sq m  Ocado – 53,400 sq m  UPS – 33,000 sq m  Euro Car Parts – 23,800 sq m Alongside this, Euro Car Parts are proceeding with a scheme comprising a further 72,300 sq m, consolidating operations from across the country.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Demand has remained relatively strong through the downturn. IM Properties delivered two units on a speculative basis (15,000 sq m and 13,000 sq m), secured occupiers and sold to an investor at an initial yield of 5.8% (very competitive investment market). This signals that demand (both from occupiers and investors) remains strong and will continue to promote development activity. Area: North Warwickshire Status: Ongoing Lead partner: IM Properties Strategic The strategic importance of the site relates to the following factors: importance:  The site is one of three regional logistics sites within the West Midlands reflecting the scale of the site and the presence of a rail freight terminal;  The site is a major employment location providing a range of employment opportunities principally within the distribution sector;  The site generates in excess of £7.2 million in business rates income to North Warwickshire Council per annum. Project Delivery Project costs: The redevelopment of the site has attracted very significant levels of investment over the period from 2000. To date, it is estimated that IM Properties has invested in excess of £40 million to open up the site and plots for development. This includes a contribution towards off- site infrastructure works and wider works within the community. Key investments have included the Ocado Fulfilment Centre, involving an estimated £210 million of capital investment. Overall, based on project specific information alongside cost benchmarks, it is estimated that in excess of £450 million has been invested at Birch Coppice to date (at 2015 prices). Allowing for future development at Birch Coppice of 150,000 sq m, based upon construction cost benchmarks it is estimated that future investment could amount to around £100 million. Timescales: Key project milestones include:  2000 - Phase 1 scheme consented and commenced  2006 – BIFT developed and operational  2010 – Phase 2 scheme consented and commenced  2013 – Phase 3 scheme consented  2014 – Permissioned granted for Hall End Farm Partners and The project has been led by IM Properties roles: North Warwickshire Council has worked with the developer and occupiers to seek to ensure that the local benefits of the scheme (in relation to the creation of jobs for local residents alongside securing section 106 contributions for local community projects) are maximised. Project Outputs and Benefits Outputs: To date it is estimated that in excess of 350,000 sq m of employment floorspace has been delivered at Birch Coppice. There is estimated to be capacity for a further 150,000 sq m of floorspace, with a number of schemes (including a major distribution unit for Euro Car Parts) currently under construction or planned.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Other outputs at the site include the BIFT, which has developed linkages with a number of occupiers (including Voltswagon Group). Economic To date, the Birch Coppice scheme is estimated to have resulted in significant benefits: economic benefits in both the construction and the operational phases as follows:  Construction phase – based on a total capital investment of £450 million it is estimated that some 3,000 person years of employment have been supported in the delivery of infrastructure works and the construction of workspace at Birch Coppice. Based on the convention that 10 person years of employment is equivalent to one permanent job, this equates to 300 FTE jobs.  Operational phase – It is estimated that approximately 6,000 people currently work at Birch Coppice. Ocado is estimated to employ around 2,000 people on the site. Other key employers include Euro Car Parts who currently employ 650 people. Employment for other occupiers has been estimated on the basis of employment density benchmarks. It is further anticipated that future activity will result in significant economic benefits:  Construction phase – allowing for investment of £100 million, it is anticipated that future development activity could support more than 650 person years of construction employment at Birch Coppice, equivalent to 65 FTE jobs.  Operational phase – based on employment density benchmarks, it is anticipated that 150,000 sq m of new B1(c), B2 and B8 floorspace could accommodate some 2,000 gross jobs. This would increase total employment at the site to around 8,000. Wider The scheme has resulted in a range of important wider benefits: benefits:  Social benefits – through redeveloping a former colliery site, the scheme has contributed to retaining a wide range of employment opportunities within the area for local residents. Further to this, occupiers on the site have instituted a range of programmes to target employment towards local residents. This includes the Academy, a three week programme operated by Euro Car Parts which draws roughly half of referrals from Jobcentre Plus, with the remainder drawn from up to 50 organisations including Work Programme providers, Housing Associations, charities and Local Authorities.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Coleshill Leisure Centre

Project Characteristics Description: North Warwickshire Council has led the delivery of a new replacement indoor leisure facility comprising approximately 2,200 sq m of new leisure floorspace. The facility is fully accessible and DDA compliant and comprises a sports hall, squash courts, a 40 station health and fitness suite, dance studio and changing facilities. The new facility, located at the Coleshill School, replaces an aging facility that had reached the end of its functional life. The decision to relocate the leisure centre emerged from an independent review of options for leisure facilities within Coleshill. The site of the former leisure centre did not offer sufficient capacity to enable redevelopment without a significant impact on continuity of service. Locating the offer at the Coleshill School was judged to offer a better solution in terms of service provision and financial terms. The new facility opened officially in December 2014 and meets the requirements of the Coleshill School and the wider community. Staff from the former centre were retained and relocated to the new facility. North Warwickshire Council has instructed agents to market the site of the former leisure centre for residential development. Area: North Warwickshire Status: Complete Lead partner: North Warwickshire Borough Council Strategic The rationale for intervention to replace the existing facility was as follows: importance:  Existing facilities were nearing the end of their functional life, with M&E identified as being in need of replacement within 3-4 years;  facilities were of a poor quality and finish and performed very poorly in relation to equality of access;

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 High levels of identified demand for leisure facilities within the local area were identified with limited alternative supply. Failure to provide new facilities would have resulted in leakage to facilities in adjacent local authority areas; and  Re-provision in a new location was identified as the preferred option to ensure continuity of service. Project Delivery Project costs: The total cost of delivering the Leisure Centre was estimated to be £4.3 million, comprising of £4 million construction and associated design fees and £0.3 million FF&E costs. The funding profile for the scheme was as follows:  NWBC capital – £1.85 million  NWBC borrowing – £0.97 million  Education Funding Agency - £1.46 million  England Squash - £25,000 The Council has appointed agents to market the site of the former leisure centre at a price of c. £0.7 million. It is anticipated that the sale of the site will significantly reduce the net cost of the scheme. Timescales: The new facility opened in December 2014. The marketing of the former leisure centre site is ongoing. Partners and North Warwickshire Borough Council – Lead Partner roles: Coleshill School – site owner, funder Project Outputs and Benefits Outputs: The new leisure centre provides 2,200 sq m of new leisure floorspace. The vacated former leisure centre has the potential to be redeveloped for residential uses. Subject to design and planning, the site could potentially accommodate a range of market, affordable or specialist residential units. Economic Overall, it is estimated that investment in the construction phase will have supported benefits: approximately 30 person years of temporary employment. The scheme, through sustaining leisure and recreation provision within Coleshill, ensured that local employment within the leisure centre was retained. Wider  The redevelopment of the leisure offer has delivered a range of wider benefits as benefits: follows:  Regeneration catalyst – the former leisure centre is located in a relatively prominent location within Coleshill Town Centre. The building, which is of relatively poor appearance, is being marketed for residential led development. It is anticipated that the redevelopment of the site will significantly enhance the appearance of the area and contribute to the quality of the townscape;  Social benefits – the new leisure centre is fully DDA compliant and offers access to a range of recreational and health facilities;  Educational benefits – the new centre is located at Coleshill School and provides pupils of the school with access to modern, high quality sports facilities. It is anticipated that this facility will make an important contribution to the sports and health curriculum offered by the school.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: North Warwickshire Borough Council – Council House Refurbishment

Project Characteristics Description: The project involved the refurbishment of the NWBC office on South Street in Atherstone. The project enhanced the efficiency of the building and has enabled the co-location of a number of locally important partners including NWBC, Warwickshire County Council, Job-Centre Plus, the Citizens Advice Bureau and Warwickshire Police. The project responded to an identified need for investment to replace key elements of the M&E, as the office was becoming increasingly costly to operate. Prior to the downturn, NWBC looked at options for the disposal of the South Street Office to facilitate relocation to more modern and suitable premises, potentially involving co-location with partner organisations. This would have been likely to have involved a move away from Atherstone. Post downturn there was a change in focus. Decision to refurbish the existing offices and co-locate with partners at current location. Alongside cost savings, a key benefit of this option was retaining services – including Council, police and other services – within Atherstone. Area: North Warwickshire Status: Complete Lead partner: North Warwickshire Borough Council Strategic  The project enabled the co-location of key partners including NWBC, Warwickshire importance: County Council, Job-Centre Plus, the Citizens Advice Bureau and the Police to provide more joined up service delivery  The refurbishment ensured that key services – including NWBC and the police – were retained within Atherstone town centre. Project Delivery Timescales: The capital works were undertaken over a 6 month timeframe.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Partners and The Councils partners in this project were: roles:  Warwickshire County Council  Warwickshire Police  DWP – Job Centre Plus  Citizens Advice Bureau Project Outputs and Benefits Outputs: The project has significantly enhanced the quality of the accommodation offer and enabled key public services to be retained within Atherstone. Co-location of key organisations is expected to promote enhanced service delivery for the benefit of local residents. Wider Wider benefits associated with the project relate to: benefits:  Supporting the town centre – the scheme enabled the retention of the Council offices – and associated employment - within Atherstone. The Council is one of the largest employers within the town centre. Footfall associated with employees and visitors to the Council offices plays an important role in sustaining local businesses within the town centre.  Social benefits – the co-location of partners provides an enhanced platform for service delivery and has the potential to make an important contribution to providing residents with a more joined-up service.  Enhanced energy efficiency – it is estimated that the works have resulted in a significant reduction in the usage of gas and electricity within the building. As a result, the facility has a much lower carbon footprint.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: The Belfry Hotel and Resort

Project Characteristics Description: The Belfry was acquired by KSL Capital Partners in 2012. The owners placed the resort under the management of the De Vere Group. At acquisition, KSL identified the need for significant investment to enhance the quality of the accommodation – both in terms of the hotel and the wider resort offer. This reflected the long term performance of the resort in key market segments – notably the conference and event (wedding) markets. The project partners initiated a comprehensive refurbishment and reconfiguration of the facility. This £26 million programme of investment was undertaken on a phased basis over the period 2013 to 2014. Area: North Warwickshire Status: Complete Lead partner: Belfry Hotel and Resort comprising of:  KSL Capital Partners – Owner and investor  De Vere – Operational management of the facility and the refurbishment works. Strategic  The Belfry is one of the foremost golf resorts within the UK and has a global importance: reputation as a result of hosting the Ryder Cup on four occasions. Investment sought to ensure that the strength of the Belfry Brand was renewed;  Investment sought to ensure that the resort remained competitive in the conference and event market. Project Delivery Project costs: Investment totalled £26 million and was fully funded by the project partners. Timescales: Refurbishment took place over four phases between 2013 and 2014 (completed in June 2014). The phased approach ensured that no more than 120 rooms were taken out of service at any one time. Partners and The project partners were KSL and De Vere. roles: Project Outputs and Benefits Outputs: Investment enabled the full refurbishment of the hotel and resort including the creation of new bar and restaurant facilities. As a result internal reconfiguration, the project resulted in a net reduction of the number of rooms from 324 to 319.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Economic Based on investment of £26 million, it is estimated that the capital works could have benefits: supported around 175 person years of employment in the refurbishment process. This equates to 17.5 FTE permanent jobs. Based on discussions with the Belfry, it is understood the works have played an important role in renewing demand in key market sectors. In particular, very early data indicates that interest for conferences and events (including weddings) has increased by 20% to 30%. There has also been a very significant improvement in catering performance (approximately 100% increase in turnover). While there has been an improvement in terms of overall performance, it is understood that staffing levels at the resort remain broadly unchanged. Wider The main benefit relates to image and perception. The Belfry has a global profile as a benefits: golf resort, and remains an important destination at the UK/regional level as a conference location. As one of the foremost venues within Warwickshire, the Belfry represents a key local asset. Investment has enhanced the quality of the experience at the Belfry. It is also envisaged that, over time, investment will enable the resort to compete more effectively for higher profile golf events. This could further enhance the profile of the area.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: North Warwickshire Site Allocations Plan

Project Characteristics Description: The site allocations plan identifies sites throughout North Warwickshire for development over the period to 2029. Prepared as part of the Local Plan, it sets out targets that support the overarching aims and objectives of the Council in relation to housing and employment growth. As set out within the Site Allocations Plan, the allocation of employment sites responds to a total identified requirement (set out in the 2013 employment land review) for 58 ha of employment land. Allowing for completions and extant planning permissions, a remaining requirement of 27 ha was identified. The Allocations Plan identifies five sites with the potential to accommodate 25.7 ha of employment development. It is anticipated that further capacity for local needs will emerge through development at Birch Coppice and rural employment development, for example farm diversification. In relation to housing, a requirement for 3,650 dwellings is identified over the period based on the Strategic Housing Market Assessment (2013) and allowing for a further requirement in respect of Tamworth. Allowing for existing consents, alongside a windfall allowance, the Allocations Plan identifies capacity for 2,240 housing units (including 500 dwellings for Tamworth). Area: North Warwickshire Status: Adopted Lead partner: North Warwickshire Borough Council Strategic Site allocations will ensure that the development of new housing and employment importance: floorspace is appropriately located and supports the growth aspirations set out within the local plan. Project Delivery Timescales: The Allocations Plan is for the period 2014 to 2029 Partners and Key partners in relation to delivering this plan include: roles:  Land owners  Developers

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 Neighbouring local authorities Project Outputs and Benefits Outputs: Sites allocated through the plan provide capacity for:  25.7 ha of new employment development; and  2,238 new dwellings. Economic Employment Allocations benefits: In total it is estimated that land allocated for employment development could accommodate approximately 80,000 sq m of new employment floorspace. Allowing for standard assumptions in relation to the mix of uses, occupancy levels and employment densities, it is estimated that new floorspace could accommodate 1,750 gross jobs (see Table below). Site Site (ha) F’space Gross Net jobs (sq m) jobs DOR10 - Land/Playing fields south of 3.5 12,075 347 188 A5 Dordon DOR22 - Land West of Birch Coppice 5.1 16,830 397 214 DOR24 - Land at Centurion Park, M42 8.5 22,100 332 179 Junction 10 DOR18/19/20 - Land off A5 / Gypsy 3.6 12,600 306 165 Lane, Dordon Roundabout ATH6 - Land North of the A5, East of 5.0 16,000 371 201 Holly Lane Total 25.7 79,605 1,753 946 Based on benchmarks for leakage (reflecting the allocation of sites to meet local need), displacement and multiplier effects, it is estimated that the development of new premises on these sites could create around 950 net additional jobs. The net GVA impact could equate to in excess of £120 million per annum. Housing allocations It is estimated that 2,238 dwellings could support an increase in local household expenditure of around £15 million per annum. This level of expenditure has the potential to support 120 full time equivalent gross jobs. Allowing for leakage, displacement and multiplier effects, it is estimated that the increase in household expenditure resulting from the delivery of the allocated sites could result in 60 net additional jobs. Wider The development of employment and housing sites allocated through the plan has benefits: the potential to deliver important wider economic benefits in relation to:  Catalysing regeneration – schemes have the potential to support wider regeneration effects  Attracting inward investment – a range high quality employment sites will enable North Warwickshire to capture inward investment opportunities, as will a high quality housing offer;  Improving the image of North Warwickshire – high quality schemes have the potential to further enhance perceptions of the area as a place to work and live; and  Creating new opportunities for local residents – the creation of employment opportunities alongside extending and diversifying the housing offer.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: CSW Superfast Broadband Project – North Warwickshire

Project Characteristics Description: The CSW Broadband Project has been established to bring improved broadband speeds across Coventry, Solihull and Warwickshire – particularly in the rural areas. The aim of the project is to extend the provision of the wholesale network to cover areas that will not be reached under the existing roll-out plans of the commercial providers. The project is being rolled-out under two contracts between CSW Broadband and BT. Prior to the commencement of the project, superfast broadband (minimum speed of 24Mb/s) availability within North Warwickshire was across estimated to be approximately 48% compared to 73% across Warwickshire as a whole. It is estimated that Contract 1, which was signed in May 2013, will increase availability to 85% within North Warwickshire and 89% across Warwickshire as a whole by completion in March 2016. The total cost of Contract 1 is £8.9 million, funded predominantly by BD:UK and Warwickshire County Council. Contract 2 between CSW Broadband and BT has now been signed and comprises of two parts. Part 1 will see the network extended to enable around 17,250 premises to access fibre broadband with 14,610 premises at Superfast Broadband speeds, raising overall superfast coverage to 94% across Warwickshire. Within North Warwickshire, it is estimated that Contract 2, part 1 will extend coverage to 93%. The total value of part 1 is £10.6 million, with £3.7 million funding from Worcestershire County Council alongside contributions from BD:UK, Solihull Council and BT. Based on a total allocation from BD:UK of £9.7 million, there is potential for a further extension to Contract 2 (part 2) of £10.3 million. CSW Broadband has outlined aspirations to extend availability of Superfast Broadband to 98% of all premises

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

across Warwickshire. This target would equate to a further 2,300 premises within North Warwickshire. Area: North Warwickshire Status: Ongoing Lead partner: CSW Broadband Strategic The project has significant importance. In particular, it will seek to meet the strategic importance: objectives of the Government, CSW Broadband and its partners to maximise the availability of superfast broadband coverage. It will play a critical ongoing role in reducing the gap between North Warwickshire and adjacent areas in relation to Broadband availability, addressing a significant barrier to services and a potential barrier to investment – particularly within rural parts of the district. Project Delivery Project costs: The total cost of Contract 1 to the public sector is £8.9 million. Alongside an allocation of £4.1 million from BD:UK, funding support has been secured from Warwickshire County Council. BD:UK funding of £9.7 million has been allocated to CSW Broadband for Contract 2. To date, £4.1 million of this allocation has been matched by £3.7 million of Warwickshire County Council funding and £0.4 million of funding from Solihull Council. Allowing for the contribution of BT, the total cost of Contract 2 part 1 is £10.6 million. Timescales: Investment under Contract 1 is ongoing and will continue of the period to Match 2016. Contract 2 is programmed to commence in summer 2016 and roll-out over the period to summer 2019. Partners and  CSW Broadband roles:  Warwickshire County Council and Solihull Metropolitan Borough Council  BT  NWBC and other district councils Project Outputs and Benefits Outputs: Across Warwickshire, it is anticipated that the programme will extend superfast broadband to some 65,000 premises over Contract 1 and Contract 2 (part 1), potentially increasing to 75,000 over the duration of Contract 2 subject to identifying further match funding. Within North Warwickshire, it is estimated that contract 1 will upgrade around 14,000 premises to superfast broadband, with a target of around 4,000 for Contract 2. Economic At a national level, economic benefits are expected to arise from investment in benefits: enhanced broadband infrastructure as a result of a range of factors including:  Productivity growth of broadband-using enterprises;  Safeguarding of local enterprise employment;  Enhanced teleworker productivity;  Enhanced labour market participation; and  Network construction impacts. Based on the UK economic impact of broadband study (SQW), reflecting a pro-rata assessment of likely investment within North Warwickshire, it is estimated that

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

investment in enhanced broadband infrastructure has the potential to support some 90 jobs. This figure is relatively low as a significant proportion of the benefits will accrue to businesses in the form of productivity improvements. Wider There are a range of wider economic benefits associated with investment in benefits: broadband infrastructure as follows:  Social impacts – Investment to enhance and extend broadband infrastructure has the potential to result in a range of social benefits, particularly in terms of narrowing the digital divide and promoting household savings through reducing the need for commuting. Alongside this, there is clear scope for the extension of broadband to support new models of service delivery for key public service providers, particularly in the education and health sectors. This has the potential to be of particular benefit for groups with limited access to services, particularly those located in rural areas.  Environmental impacts – the extension of broadband services has the potential to deliver significant environmental benefits, particularly through reducing carbon emissions associated with commuting.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: UK Central and HS2

Project Characteristics Description: UK Central (UKC) is a major growth initiative led by Solihull MBC and supported by a range of strategic partners, including the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP). The programme focusses on four key economic zones within the Borough broadly aligned to the M42 corridor, namely the UKC Hub, Chelmsley Wood / North Solihull, Solihull Town Centre and Blythe Valley Park. The Hub represents the largest single opportunity area. A unique set of international assets are located within the Hub, including Birmingham Airport, the National Exhibition Centre (NEC), Jaguar Land Rover (JLR), Birmingham Business Park and the proposed new HS2 station. Outlined below are the proposals for the HS2 Interchange Station site. Separate profiles have been prepared for the NEC and Birmingham Airport. The vision for the Interchange Station site is to create a high value, mixed activity economic hub based on an innovative and modern approach to ‘garden city’ principles. It will form a key component of a unique international growth area. In order to realise the substantial potential of the Interchange Station area, significant early infrastructure investment is required. The concept master plan identifies four key zones for the Interchange Station site – station area, office/mixed-use area, residential area and light industrial/R&D area. There will be a clear open space hierarchy and comprehensive transport and car parking strategy. The objectives for the HS2 Interchange Station site are:

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

• to create a highly accessible economic ‘growth hub’ which is a place of design excellence by 2046 when the development is complete; • to accommodate in the region of 20,000 jobs by 2046; • to attract high level of international investment – with at least 30% of the jobs being in globally trading businesses by 2046; • to be the home for 4,500 people living in some 2,000 residential units by 2046; and  to be an essential component of the internationally recognised and successful UKC Hub which is a key driver of growth. Area: Solihull Status: Ongoing Lead partner: Solihull MBC Strategic The proposed investment within UKC, particularly around the HS2 Interchange importance: Station site, will help to meet the Government's economic growth and rebalancing agendas, highlighted within the 'Plan for Growth', through improvements to productivity, the attraction of new national and international businesses to the sub- region and by helping to stimulate growth within the economy through private sector investment. More generally, HS2 is one of the Government's Top 40 priority infrastructure investments and the Growth Strategy for the Interchange Station site responds directly to recommendations made by the HS2 Growth Taskforce as articulated within the National Infrastructure Plan. The GBSLEP has also identified that the arrival of HS2 represents a once-in-a-generation opportunity to deliver a step-change in the economic potential of the sub-region and drive long-term growth. The UKC HS2 Interchange Station Growth Strategy forms part of the wider Midlands HS2 Growth Strategy, which also encompasses the HS2 Curzon Masterplan and a comprehensive package of connectivity improvements, linking the two stations and their associated Development Zones to other transport hubs and the wider region. The proposals for the Interchange Station site will complement the planned investment set out within the wider Growth Strategy and play a key part in realising the full benefits of HS2. At the local level, it is anticipated that UK Central will act as a major focus for investment and job creation, resulting in significant prospects for local businesses and residents. While representing an important opportunity, the scale of the proposed scheme and associated HS2 works has the potential to result in significant disruption, particularly within the construction phase. In particular, it is anticipated that ongoing investment will result in transport disruption and increased congestion, as well as absorbing construction sector capacity. Project Delivery Project costs: Total development construction costs associated with the Interchange Station site are likely to be in excess of £1 billion. Timescales: Phase of HS2 is due to be complete by 2026. The development of the Interchange Station site, including associated infrastructure, will take place between 2016 and 2046.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Partners and  Solihull MBC roles:  HS2  GBSLEP  DfT  NWBC and other district councils Project Outputs and Benefits Outputs The objective for the HS2 Interchange Station site is to create a highly accessible economic ‘growth hub’, attracting new, high level international inward investment and generating a significant number of new employment opportunities in key growth sectors. It is estimated that the development of the Interchange Station site has the potential to create approximately 20,000 new jobs and around 2,000 new homes. Of the jobs created, based on current travel to work data, some 400 could be accessed by North Warwickshire residents. The activity attracted to the Interchange Station site will focus on markets and sectors that are unlikely to compete directly with many of those located in North Warwickshire and will complement the growth of the sub-region as a whole. Wider The arrival of HS2 will provide a number of significant connectivity improvements, economic including reduced journey times and increased capacity. It therefore has the benefits: potential to greatly enhance the linkages between businesses and their suppliers, employees and customers. Enhancing connectivity can result in productivity gains through cost savings or increased efficiencies to businesses locating close to the Station. International evidence also shows that with appropriate interventions the development of high-speed rail networks can result in significant economic benefits through new development and growth clustered around stations. The Interchange Station site provides a range of new development opportunities that provide the capacity for significant business growth. The wider benefits of the project are therefore expected to include: • Employment growth • Market expansion • Higher productivity • Business attraction • Higher investment • Additional local expenditure

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: Birmingham Airport

Project Characteristics Description: A comprehensive range of development proposals for Birmingham Airport are set out within the current Airport Master Plan ‘Towards 2030: Planning a Sustainable Future for Air Transport in the Midlands’. Two of the airport’s most significant recent developments are the new Air Traffic Control Facility (NATCF) which has provided an iconic landmark at its border with one of the main routes into the City and a runway extension that changes the game for long-haul travel, creates new jobs, opens up trading opportunities and saves thousands of miles in unnecessary surface journeys. Area: Birmingham Status: Ongoing Lead partner: Birmingham Airport Holdings Limited Strategic Birmingham Airport is of strategic importance to the region and provides importance: international connectivity, including 143 direct connections to growth markets and for conference, business and leisure tourism. The Davies Commission affirmed the importance of Birmingham Airport in the UK’s long-term aviation strategy, and made three key points regarding the future growth of the Airport:  The potential for a second runway as a long-term option;  Making the most of Birmingham’s capacity in the medium-term; and  The impact of the High Speed 2 rail development on Birmingham Airport’s future development.

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Birmingham Airport has been recognised as integral to the UK’s long-term aviation model, supporting the growth of aviation links across the UK. The Airport is estimated to support a total of 11,620 job opportunities (10,490 full- time equivalents (FTEs)) and to generate £272 million in terms of income (at 2006 prices) in the West Midlands region (including multiplier effects). The Airport also forms part of a unique concentration of strategic assets within UK Central (UKC), the region’s principal international gateway.

Project Outputs and Benefits Outputs: A wide range of development proposals are planned for the Airport Operational Area, Airfield Infrastructure; Passenger Terminal Facilities, the Elmdon Terminal Site Facilities, Airside Support & Landside Ancillary Facilities and Services and Utilities serving the Airport. Economic The Airport’s Master Plan provides for a major expansion that will generate benefits: significant additional employment opportunities and income. Forecasts suggest that passenger numbers will treble from the current level of 8.6 million to 27.2 million passengers per annum in 2030 and that the numbers of jobs supported in the region will increase to 19,090 FTE jobs and income generated to £824 million (2006 prices). Of the anticipated uplift in employment of 8,600, it is estimated that around 170 of these jobs could be taken by North Warwickshire residents based on current travel to work data. In addition, the capital investment programme itself will support some 2,770 FTE jobs and generate some £60 million of income (at 2006 prices). Wider There are a range of wider economic benefits associated with investment in benefits: Birmingham Airport, including:  Attracting and retaining investment by:  Assisting with attracting inward investment in an increasingly competitive environment;  Assisting local companies to be more outward looking and to penetrate new markets;  Support the retention, expansion and commercial success of companies already present in the Region  Reduced surface journeys and journey time savings – i.e. Birmingham residents not having to travel to another airport.  Enhancing the visitor economy

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Project Name: The NEC (including Resorts World Birmingham development)

Project Characteristics Description: The NEC Group operates the NEC, the ICC, the Genting Arena and the Barclaycard Arena. It also operates a national ticketing agency, The Ticket Factory; hospitality brand, amplify; and caterer, Amadeus. In January 2015, LDC, the private equity arm of Lloyds Banking Group, acquired the NEC Group from Birmingham City Council for £307 million. The deal brings the NEC Group into private ownership for the first time. The principle objectives of the sale were to secure an investor who shares the vision and strategic ambitions of the NEC Group and to maximise the proceeds for Birmingham City Council. It was recognised that bringing the NEC Group under private ownership will enable the business to take full advantage of its growth opportunities and reach the next stage of its development. In doing so, economic impact and economic impact and job creation can be preserved and enhanced. As a key element of the NEC Group, the NEC is the UK’s largest exhibition facility with 182,000 sq m of flexible exhibition space through 20 interconnected halls. It attracts around two million visitors to 125 exhibitions per annum. The NEC hosts many of the largest and high-profile exhibitions such as Spring Fair, Crufts and Autosport International. The NEC is identified within the Greater Birmingham & Solihull Strategic Economic Plan as one of a number of physical and cultural assets. The NEC also forms part of a unique concentration of strategic assets within UK Central (UKC), the region’s principal international gateway. Consideration is being given to the potential to develop the NEC site and in particular the surface level car parks for residential and commercial uses. There are major proposals for expansion at the NEC. The Resorts World Birmingham development will comprise a £150m integrated leisure and entertainment complex comprising an outlet retail centre, a 178 bedroom hotel, as well as bars, restaurants, a cinema and a large casino. Area: Birmingham

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

Status: Ongoing Lead partner: Resorts World Birmingham / Genting Casinos UK Strategic A key purpose of the City Council investing in establishing the NEC Group more than importance: 30 years ago was to drive economic development and regeneration. At present, the NEC Group is an important contributor to the West Midlands economy, employing more than 1,000 staff on a permanent basis, with a further 700+ casual workers. It delivers an economic impact to the region of £2bn whilst supporting some 29,000 jobs in the region. The Resorts Word Birmingham project will play an integral part in the NEC’s wider strategy to offer visitors a more diverse leisure and hospitality experience to increase both dwell times on the site and further enhance the NEC’s reputation as the UK’s premier venue for exhibitions and entertainment. Project Delivery Project costs: The cost of investment by Genting Casinos is over £150 million Timescales: Due for completion in 2015 Partners and  Realm - is a specialist asset manager and developer of retail space and currently roles: manages the largest portfolio of outlet centres in the UK.  Solihull College - is the leading further education and skills provider in the Solihull Borough. They will work closely with Genting, Galliford Try and other recruitment partners to ensure that local people can identify and achieve the appropriate skills to qualify for jobs at Resorts World Birmingham.  Jobcentre Plus - As one of the primary vehicles for promoting and fulfilling local jobs- Jobcentre Plus will work closely with Solihull Council, Solihull College, Genting Casinos and Galliford Try to ensure that local people will be able to take advantage of the opportunities created at Resorts World.  The NEC Group - The NEC (part of the NEC Group) is one of the most successful and well established exhibition and entertainment venues in the UK. As the first purpose built exhibition complex to be opened in the UK it has been home to some of the biggest shows, exhibitions and events ever staged in the UK. Every year, around 4 million people come together at over 700 events at the NEC Group’s venues to learn, do business and be entertained.  Galliford Try - is one of the largest construction contractors in the UK. They have been appointed to construct the Resorts World complex. During the construction phase Galliford Try will be recruiting for a range of vacancies which will be coordinated through our recruitment partners.  Solihull Metropolitan Borough Council - will be playing a major role in coordinating the employment opportunities generated by Resorts World. Utilising their experience of the Borough and contacts among employers and trainers, SMBC will be a vital conduit in the recruitment process. Project Outputs and Benefits Outputs: Resorts World Birmingham will comprise of 538,000 sq ft of employment floorspace for retail and leisure uses, including:  An outlet shopping centre with 50 units selling a range of discounted fashion, shoes and electronics  178 four star bedrooms with 5 five star suites and an Asian-themed spa  A wide range of internationally-themed restaurants and bars

Hinckley and Bosworth Borough Council, North Warwickshire Council and Nuneaton and Bedworth Council Economic Review and Impact Assessment - Technical Report December 2015

 An 11-screen cinema with state-of-the-art digital technology  A casino offering a contemporary and exciting gaming experience  A multi-use banqueting and conference centre Economic Resorts World supports the continued prosperity and growth of the NEC and will be benefits: a major driver of the ‘Destination NEC’ strategy, which started with the £29 million refurbishment of the Genting Arena in 2009. The Resorts World Birmingham project is expected to create 1,750 FTE jobs during the construction phase and 1,100 FTE jobs when operational. An economic assessment of Resorts World Birmingham’s impact on the regional economy undertaken by PWC has highlighted that during the construction phase £58 million in GVA will be generated and when operational the development will create £32.8 million in GVA per annum to the regional economy and £25 million in GVA per annum to the Solihull economy. Based on Travel to Work data from the 2011 Census it is estimated that 2% of the new jobs might be taken up by residents of North Warwickshire – perhaps some 25 jobs. Wider There are a range of wider economic benefits associated with investment in the benefits: project:  Strengthening the leisure and entertainment offer – supporting the attraction of new audiences drawn from local, regional, national and international marketplaces while complementing existing attractions in Solihull Town Centre  Catalyst for further investment in the region