Growing the Rural Economy Evidencing the Case for the Peak District

Final Report

January 2014

Growing the Rural Economy: Evidencing the Case for the Peak District

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1

1 INTRODUCTION ...... 5

2 ECONOMY AND BUSINESS ...... 8

3 PEOPLE AND PLACE ...... 23

4 ECONOMIC LINKAGES AND RELATIONSHIPS ...... 36

5 FUTURE OPPORTUNITIES ...... 41

6 INVESTING IN THE WIDER PEAK DISTRICT ...... 47

7 CONCLUSIONS ...... 51

APPENDIX A: COMPARATOR AREAS...... 53

APPENDIX B: SECTOR DEFINITIONS...... 54

Growing the Rural Economy: Evidencing the Case for the Peak District

EXECUTIVE SUMMARY

In November 2013, the wider Peak District partners – Derbyshire Dales and Staffordshire Moorlands District Councils, High Peak Borough Council and the Peak District National Park Authority – commissioned an independent economic assessment of the wider Peak District area. The primary aim of the research was to update the evidence base, confirming and expanding upon the existing understanding of the area, and to demonstrate its economic potential. The research highlights the distinct opportunities for economic development offered by the wider Peak District area, arising from its unique characteristics. The wider Peak District can also make a significant contribution to achieving the economic objectives set by the Local Enterprise Partnerships which overlay the area.

Economy and Business

Key Facts GVA: In 2010, the value of the output produced in the wider Peak District (GVA) was £3.8bn. Employment: 93,300 people are employed in workplaces within the wider Peak District. Sectors: The wider Peak District has a diverse economic structure with manufacturing the largest sector, followed by the public sector, retail and hospitality, all major sectors of employment. Businesses: There are 10,900 businesses in the wider Peak District area. The vast majority employ fewer than 10 people (91%), and survival rates are high.

The wider Peak District has a vibrant economy with a large, well established and resilient business base. The area has a high business density (67 businesses per 1,000 working age population), above the wider LEP areas and national average. Businesses in the wider Peak District have a better than average survival rate and are productive, generating a level of output per worker above or in line with the wider LEP areas and other comparable rural areas. Although most businesses are small, many have the potential for growth, and there are a number of important large or nationally based employers including JCB, Nestle, Swizzels Matlow, JD Williams, Lafarge Tarmac, Adams Foods and Eco-Bat Technologies. Self-employment rates are high, illustrating a level of entrepreneurialism within the wider Peak District community which can be harnessed to contribute to a more competitive business base across the LEP areas. Although there is some variation in the three districts’ sectoral employment structure, there are also commonalities. The wider Peak District has a high proportion of workplace employment in manufacturing, with particular strengths in the manufacture of food, metal products and machinery and equipment. Linked to the landscape, the visitor economy and agricultural sector are both important sectors. The agricultural sector, although modest in employment terms, has a key role in the maintenance of the Peak District landscape, which brings an array of important wider benefits and underlies the economy of the area. The wider Peak District’s sectoral strengths play into several of the LEPs’ priorities: • D2N2 priority sectors: Derbyshire Dales and High Peak make a significant contribution to food and drink manufacturing, the visitor economy and in advanced manufacturing sectors;

1 Growing the Rural Economy: Evidencing the Case for the Peak District

• Sheffield City Region priority sectors: Derbyshire Dales offers an ideal location for creative and cultural businesses. The exceptional landscape and access to neighbouring conurbations are key assets for building and expanding upon the creative and cultural business base. • Stoke-on-Trent and Staffordshire priority sectors: Staffordshire Moorlands makes a considerable contribution to the manufacturing sector and sub-sector priorities (advanced manufacturing and applied materials), as well as the visitor economy priority.

People and Place

Key Facts Residents: There are over 259,000 residents in the wider Peak District, 162,900 of whom are of working age. Of these, 123,300 are employed. Higher level skills and occupations: 31% of residents of working age have a degree- level qualification, and 40% are employed in managerial, professional and associate professional occupations. However, 14% of working age residents (nearly 23,000 people) hold no qualifications, 18% have Level 2 qualifications and 15% have Level 3 qualifications. Contrast between resident and workplace earnings : Workplace earnings in the wider Peak District are lower than average, whilst resident earnings match the national average. Quality of life: The area has a very high quality of life offer linked to low levels of multiple deprivation and an exceptional landscape; however there are pockets of deprivation and unaffordable housing and limited employment opportunities lead to an outward migration of young people.

The wider Peak District has a strong workforce, meaning that the area is characterised by high employment rates and correspondingly low unemployment, with a high proportion of residents with higher level skills and many employed in managerial and professional occupations. Despite this, the employment available locally is often relatively low skilled, part-time and poorly paid. Fourteen per cent of the resident workforce hold no qualifications, and have very limited access to well-paid work. The combination of low skills levels and poorly paid local employment results in pockets of deprivation in parts of the wider Peak District (often masked by the affluence of those residents who work outside the area), housing which is unaffordable for those on the average wage, and the outward migration of (better skilled) young people. The wider Peak District offers an exceptional landscape and an excellent quality of life for the majority of residents. The landscape and the vibrant communities across the area attract visitors, highly skilled mobile workers and inward investors into both the wider Peak District area and into the surrounding cities and conurbations. Sustainable economic growth, which capitalises on the environment as an economic asset whilst maintaining and enhancing its attractiveness, will benefit both the wider Peak District and the surrounding areas.

Economic Linkages and Interdependencies There are strong linkages between the wider Peak District and the surrounding conurbations, with strong commuter flows into each of the major cities, and some in-commuting from the surrounding areas into Staffordshire Moorlands. Each part of the wider Peak District also

2 Growing the Rural Economy: Evidencing the Case for the Peak District looks outwards towards the nearest major conurbation for the provision of more specialist services, rather than to other areas within the Peak District. It is the external linkages with the cities and conurbations that will drive economic growth in the wider Peak District – providing markets for local businesses and products, employment opportunities for local residents and an important source of visitors to sustain the retail and visitor economies. However, the internal linkages within the wider Peak District are crucial to ensuring that all residents and businesses benefit from economic growth, that it creates sustainable businesses and employment, and supports vibrant market towns and communities across the area. Developing these internal linkages, by building on networks such as Business Peak District, strengthening supply chain links between businesses, and developing the Peak District ‘brand’, will help to ensure that in future a greater share of economic growth is retained within the wider Peak District area, supporting local businesses, creating jobs and ensuring vibrant market towns and local settlements.

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Growing the Rural Economy – The Case for the Peak District The importance of rural economies to overall national economic well-being is well-established – they offer opportunities for economic growth, a dynamic business base, a strong manufacturing base and opportunities linked to the environment, as well as a high quality of life and an important contribution to the balance between economic growth and sustainability. The wider Peak District is no exception and its offer and location, between a number of densely-populated conurbations, only enhances these opportunities. The wider Peak District offers important economic development opportunities both in its own right (creating more and better paid local jobs, growing the business base, providing opportunities for young people) and through contributing to the economic growth priorities of the Local Enterprise Partnerships. Proposed assisted area coverage in parts of the wider Peak District would enhance this contribution. The key features of the case for investment in the wider Peak District are shown below.

The wider Peak District offers significant growth potential arising from: Recent employment growth The wider Peak District has recently demonstrated its potential for growth in a time of reduced public sector spending and support. A productive area - £3.8bn GVA There is a strong productivity base on which to build and generate high value growth. High business density and entrepreneurialism A demonstrable and successful track record in business start ups Strong business survival rates A high survival rate increases the return from investment in start up support and business growth. A high value manufacturing base Manufacturing is widely seen as a key sector which will help drive economic growth through innovation and export earnings. A qualified workforce Access to a skilled workforce is a key enabler of business growth. Opportunity to capture (further) value from the landscape The exceptional quality of the landscape draws individuals and (high value) businesses into the area.

Appropriate intervention and support is needed to ensure that this economic potential is realised and that the economic benefits which will result are harnessed for local residents and businesses as well as benefiting the wider LEP areas.

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1 INTRODUCTION

Introduction 1.1 The strategic context for local economic development has changed considerably in recent years. The introduction of Local Enterprise Partnerships (LEPs), replacing the previous regional structures and geographies, together with the pressing need to recover from the effects of the recession, has brought a renewed focus on economic growth and in particular on higher value, private sector job creation. With the upcoming 2014-2020 European Programme and the introduction of the Local Growth Fund, LEPs have a crucial role to play in determining local growth priorities, and partners wishing to access funding for economic development require a clear economic case to put to the LEPs for investment. 1.2 In November 2013, ekosgen – an independent research and evaluation company – were commissioned to produce an economic case for the wider Peak District, which is covered by three LEP areas. For the purposes of the study, the wider Peak District has been defined as covering Derbyshire Dales, High Peak and Staffordshire Moorlands districts, including the majority of the Peak District National Park. Building on a successful history of partnership working, the research provides a concise, up to date evidence base that will enable local partners to make the case for investment in the area to each LEP.

Research Objectives and Methodology 1.3 The primary aim of the research was to update the wider Peak District evidence base, confirming and expanding upon the existing understanding of the area, and allowing partners to demonstrate its economic potential. The research also included the following specific aims: • Identify the key components of the wider Peak District economy, capturing the area’s unique qualities and opportunities, economic characteristics and challenges to help demonstrate how it stands apart from other rural areas; • Linked to the above, define what makes the Peak District a distinctive, functional economic area; • Identify the relationships / interdependencies with surrounding urban areas / economies; • Evidence the economic value of the Peak District economy and its further potential to contribute to the LEPs’ economic growth agenda i.e. the potential return on investment in the Peak District; • Confirm the Peak District growth sectors / economic strengths on which to focus, to help maximise the economic contribution of rural areas and the market towns which serve them, with particular consideration to creating higher value jobs and the need for a sustainable approach. 1.4 Summarised in the table overleaf, the study method comprised two main stands of analysis.

5 Growing the Rural Economy: Evidencing the Case for the Peak District

Summary of the study method Statistical analysis Socio-economic baseline: A succinct and comprehensive baseline was undertaken encompassing three themes: economy, people and place. Comparator areas: As part of the baseline, comparator rural areas have been selected to provide a benchmark against which to compare the wider Peak District’s socio-economic profile and performance. The area’s performance has also been assessed against the wider LEPs (D2N2, Sheffield City Region and Stoke-on-Trent and Staffordshire), regional and national averages. Detailed sector analysis: As part of the baseline, but also to inform the assessment of the area’s opportunities, a detailed sector analysis was undertaken. Using official statistics, the analysis assessed sub-sector strengths and the associated productivity. An assessment of linkages and interdependencies: The economic linkages with the surrounding urban areas, as well as internal linkages, were analysed. Stakeholder consultations A total of 14 interviews were under taken with stakeholders from across the wider Peak District area including representing from local authorities, the National Park authority, the LEPs and businesses. The interviews were intended to test and refine the emerging findings from the statistical analysis and to bring qualitative insight to the research, in particular around opportunities and the unique features of the area.

Statistical Considerations 1.5 There are three key considerations regarding the available data. These should be borne in mind when interpreting the analysis as they have particular relevance to the wider Peak District economy: • Capturing the agriculture sector: The Business Register and Employment Survey is the main survey used to capture employment data, however the survey excludes farm agricultural operations (SIC subclass 01000). Instead, the Defra Agricultural Census provides information on labour in the sector, although it includes only those businesses above a certain threshold 1 based on size of holding or amount of livestock. It should be recognised that smaller Peak District agricultural businesses will therefore not be captured in this data; • There are some sectors such as the visitor economy which are not easily defined by standard industrial codes, which may result in an underestimation of the sector’s size. For example, the visitor economy definition will exclude activity such as agricultural diversification into holiday accommodation where the primary activity of the business remains as agriculture. • Capturing small businesses: The Inter-Departmental Business Register (IDBR) is used as the sampling frame for Office for National Statistics business surveys. This includes only businesses that are PAYE or VAT registered and so excludes some very small businesses and some sole traders. 1.6 Secondly, the Peak District National Park boundary is cut to the landscape rather than any administrative border, which creates an issue in defining the area for analysis. The study has adopted the definition previously used by the Peak District National Park Authority including all the lower super output areas (LSOAs) with more than 50% of the population within the national park boundary. In using this definition, the key implication for the study is that all LSOAs defined as part of the National Park fall within the three wider Peak District local authorities and those outside these districts are not captured in the analysis.

1 Utilised agricultural area >5 ha; Permanent outdoor crops >1 ha; Outdoor intensive production >0.5 ha; Crops under glass or other (accessible) protective cover >0.1 ha; Bovine animals >10 Head; Pigs >50 (All) / >10 (Breeding sows) Head; Sheep >20 Head; Goats >20 Head; Poultry >1,000 Head; Hardy nursery stock >1 ha; Mushrooms All.

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1.7 The report provides the headline findings and key statistics. Detailed data on the performance of each local authority district, the National Park area, the LEPs and the comparator areas is included in a separate Annex. Selecting Comparator Areas 1.8 A best fit approach has been taken when selecting the comparator areas. A total of four areas were chosen: wider Yorkshire Dales, wider North York Moors, wider Lake District and wider Dartmoor. Each of the areas share the following characteristics with the wider Peak District: • Each consists of three neighbouring local authorities; • Part of each local authority area falls within a national park boundary; • Each have a broadly similar landscape to the wider Peak District; • The total number of residents and employees is similar to that of the wider Peak District. 1.9 Given the uniqueness of the wider Peak District as a rural area, in terms of its proximity to urban areas and sectoral structure, it should be recognised that none offer a direct comparison to the wider Peak District. Nonetheless the comparator areas offer a useful benchmark against which to judge the performance of the wider Peak District economy and identify the unique features of the area. 1.10 A summary of the comparator areas and map is provided in Appendix A.

This Report 1.11 The remainder of the report is structured as follows: • Chapter 2: Business and Economy sets out the baseline analysis around GVA, employment and sectoral strengths, and the business base; • Chapter 3: People and Place sets out the baseline analysis of the population, workforce profile, skills, deprivation and features of place including landscape, housing, transport and broadband; • Chapter 4: Economic Linkages and Relationships discusses the commuter and leisure flows between the wider Peak District and surrounding cities and conurbations; • Chapter 5: Future Opportunities discusses the opportunities for the wider Peak District and the area’s contribution to the LEPs’ objectives; • Chapter 6: Investing in the wider Peak District discusses the rationale for investing in rural areas and in the wider Peak District; • Chapter 7: Conclusions sets out our overall conclusions from the research.

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2 ECONOMY AND BUSINESS

Key Point Summary • In 2010, the value of the output produced in the wider Peak District’s (GVA) was £3.8bn. This equates to a GVA per full time equivalent employee of £50,350, which places the area in line or slightly ahead of the wider LEP averages (D2N2 £50,350, SCR £47,700, S&S £46,000) but below the national average (£56,700). As a rural area, the wider Peak District performs relatively well in terms of productivity, and is only slightly behind the wider Dartmoor (£50,700) and the wider Yorkshire Dales (£50,600) areas. • With 93,300 employees, the wider Peak District has a relatively low employment density (580 jobs per 1,000 working age residents). This is largely due to the proximity of major urban labour markets, with residents having the opportunity to access a wider range of jobs outside the wider Peak District area. • The largest sectors of the wider Peak District economy in terms of employment are manufacturing (14,700 jobs), wholesale and retail (13,300), education (11,800), health (10,500) and public administration (8,800). • Other important sectors in the area include the visitor economy and agriculture. The visitor economy (including hospitality and leisure) provides 10,800 jobs in the area (12% of total). Agriculture provides 5,600 jobs but agricultural employment density is low compared to other rural areas; the sector also has a vital role in maintaining the landscape which brings a range of unique and highly important benefits to the area. • There are 11,000 businesses in the wider Peak District. The area has a high business density (67 businesses per 1,000 working age population), ahead of the wider LEP areas and national average, but a lower business density compared to other rural areas, with high rates of business survival. • The business base is characterised by small businesses, 91% are micro businesses (0- 9 employees).

GVA 2.1 In 2010, the value of the output produced in the wider Peak District was £3.8b (gross value added (GVA))2. Compared to the wider LEPs, this is equivalent to 11% of D2N2 GVA, 14% of Sheffield City Region and 24% of Stoke-on-Trent and Staffordshire, demonstrating the scale of the wider Peak District economy. Considering the local authority contribution to each of the LEPs, Staffordshire Moorlands accounts for 7% of Stoke-on-Trent and Staffordshire GVA, Derbyshire Dales and High Peak account for 7% of D2N2 GVA, while Derbyshire Dales accounts for 5% of Sheffield City Region GVA. A slightly higher proportion of the wider Peak District GVA is produced in Derbyshire Dales (37%), followed by High Peak (32%) and Staffordshire Moorlands (31%), which is broadly in line with the employment profile across the area.

2 GVA has been calculated using productivity at NUTS3 level by sector and applying this to FTEs in each of the study areas.

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Productivity: GVA per FTE 2010 Source: Regional Accounts and BRES £56,700 £50,350 £50,350 £52,300 £46,000 £47,700

Stoke & Sheffield CR Wider Peak D2N2 England England Staffs District minus London

2.2 In the wider Peak District, average GVA per full time equivalent employee (FTE) is £50,350 3. This places the area’s productivity on a par with D2N2 and ahead of Sheffield City Region and Stoke-on-Trent and Staffordshire. At the local authority level, productivity is similar across each of the districts. 2.3 The wider Peak District performs relatively well in terms of its productivity compared to other rural areas. Its GVA per FTE is ahead of the wider North York Moors (£49,200) and wider Lake District (£47,300), and is only slightly behind wider Dartmoor (£50,700), which benefits from higher productivity due to its southern location, and wider Yorkshire Dales (£50,600), which encompasses the prosperous area of Harrogate.

Employment 2.4 There is an important distinction to be made in the wider Peak District between those who work in the area and those who are residents but who work elsewhere . This section considers employment in companies located within the wider Peak District area. Employment and Employment Density 2.5 In 2012, there were just over 93,300 employees working in the wider Peak District, which equates to an employment density of 580 jobs per 1,000 working age resident. Compared to the wider LEP area averages and England, the wider Peak District has a lower employment density.

3 FTEs estimates are calculated by counting all full time jobs and half of part time jobs.

9 Growing the Rural Economy: Evidencing the Case for the Peak District

Employment density 2012: Employees per '000 working age population Source: BRES and Mid Year Population Estimates 677 642 604 580 597

Wider Peak Sheffield City Stoke & D2N2 England District Region Staffordshire

2.6 This is partly explained by the rural nature of the wider Peak District, as rural areas have a relatively high level of self employment and employees in the agricultural sector, neither of which are captured in the BRES data. However, the wider Peak District employment density is also behind other rural areas which share these economic characteristics. This suggests that there are relatively fewer jobs in the wider Peak District area and is a reflection of the wider Peak District’s strong economic linkages with the surrounding conurbations, with more of the workforce commuting to neighbouring city regions for employment rather than working within the local area (see Chapter 4).

Employment density 2012: Employees per '000 working age population Source: BRES and Mid Year Population Estimates 688 691 638 574 580

Wider Dartmoor Wider Peak Wider North Wider Lake Wider Yorkshire District York Moors District Dales

Sectors 2.7 The wider Peak District has a diverse economic structure with manufacturing, the public sector and private sector services all important employers. The top six largest sectors4 of the wider Peak District economy account for nearly two thirds of total workplace employment (59,100 employees, 63%). These are shown in the chart below.

4 This section of the analysis focuses on the broadest definition of sectors as classified by ONS Standard Industrial Classification (SIC) codes, which are termed sections in the SIC classification system.

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Wider Peak District employment, top six sectors 2012 Source: BRES 14,700 13,300 11,800 10,500 8,800 6,600

2.8 The large employment sectors are detailed in the table below which shows employment and the location quotient (LQ) 5.

Employment by sector, sections with >4,000 employees, 2012 % of total Employees LQ employment Over representation Manufacturing 14,700 16% 1.8 Education 11,800 13% 1.3 Public administration 8,800 9% 2.0 Arts, entertainment and recreation 4,400 5% 1.9 Average representation Wholesale and retail 13,300 14% 0.9 Health and social work 10,500 11% 0.9 Hospitality 6,600 7% 1.0 Under representation Professional services 4,000 4% 0.6 Source: Business Register and Employment Survey. Note: Employment is rounded to the nearest 100 and sections are the broadest sector classification. 2.9 The key points to note are as follows: Over Representation • Manufacturing is the largest sector in the wider Peak District (14,700 employees) and employment in the sector is over represented compared to the national average. Manufacturing employment is most significant in the High Peak, accounting for 39% of the wider Peak District employment in the sector (compared to 33% of the area total) and a location quotient of 2.2. • Public sector: Education (11,800), health (10,500) and public administration (8,800) are amongst the largest sectors. Education and public administration are both over represented, while health is slightly under represented. The majority of employment in public administration is in Derbyshire Dales (74%), reflecting the presence of Derbyshire County Council in Matlock. With a location

5 The LQ is an indication of the representation of the employment in a sector within a geographic area compared to the national level. A LQ of 1 indicates that the sector is equal to the national level, while a sector with an LQ of >1 is over represented and <1 is under represented.

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quotient of 4.4, employment in public administration in the district is particularly over represented. Due to the University of Derby site at Buxton and Buxton College, High Peak accounts for a greater proportion of employment in the education sector (44%) compared with Derbyshire Dales (29%) and Staffordshire Moorlands (27%). The sector is also over represented in High Peak with a location quotient of 1.8. Derbyshire Dales accounts for a slightly lower proportion of employment in the health and social work sector (31%), compared to High Peak (36%) and Staffordshire Moorlands (33%). Employment in the sector is also under represented in Derbyshire Dales, while it has average representation in the other districts. • Arts, entertainment and recreation is overly represented in the wider Peak District (LQ 1.9). Nearly two thirds of the 4,400 jobs are accounted for by Staffordshire Moorlands (64%), where the sector is particularly over represented (LQ 4.1) reflecting the presence of Alton Towers as a large employer in the district. This is followed by Derbyshire Dales (24%) then High Peak (12%). It is likely that this sector is in fact slightly larger, as this BRES data will not capture those who are self-employed and running lifestyle businesses. Average or Under Representation • Wholesale and retail is the second largest sector with 13,300 employees, although this is a slight under representation compared to employment in the sector nationally. A higher proportion of these jobs are accounted for by Derbyshire Dales (37%) and High Peak (36%) compared to Staffordshire Moorlands (27%), although the sector is not over represented in these areas. • Hospitality employment is concentrated in Derbyshire Dales which contributes 47% of the total wider Peak District employment in this sector, with High Peak and Staffordshire Moorlands accounting for 31% and 21% of the remainder respectively. This sector is over represented in Derbyshire Dales (LQ 1.3) but in line with the average in High Peak (LQ 1) and under represented in Staffordshire Moorlands (LQ 0.8), illustrating the spatial variation across the wider Peak District in the importance of hospitality employment. • Professional services employment is under represented in the wider Peak District. Most employment is found in Derbyshire Dales (42%) and High Peak (38%), although it remains under represented in these districts (LQ 0.6). 2.10 A summary of the remaining medium and smaller sectors of the wider Peak District economy is shown overleaf.

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Employment by sector, sections with <4,000 employees, 2012 % of total Employees LQ employment Over representation Mining and quarrying 1,300 1% 10.8 Average representation Transportation and storage 3,700 4% 0.9 Construction 3,600 4% 0.9 Other services 1,700 2% 1.0 Water supply 600 1% 1.1 Under representation Business services 3,900 4% 0.5 Finance 2,100 2% 0.6 Real estate activities 1,100 1% 0.7 Information and communication 900 1% 0.2 Source: Business Register and Employment Survey. Employment is rounded to the nearest 100.

2.11 The key points regarding these sectors are: Over Representation • Mining and quarrying is considerably over represented reflecting the area’s mining heritage and current activity in aggregates. Average or Under Representation • Of the 2,100 jobs in the finance sector, the majority are in Staffordshire Moorlands (76%), reflecting presence of Britannia/Co-operative Bank, and the sector is over represented in the district (LQ 1.5). The sector is significantly under represented in Derbyshire Dales and High Peak (LQ 0.2 in each district). • Half of business services sector employment is accounted for by Staffordshire Moorlands, with High Peak accounting for a third and Derbyshire Dales for 17%. The sector is under represented in each of the three districts. 2.12 BRES data shows that there are 2,500 employees in the creative and digital sector in the wider Peak District (3%). This sector is not classified in a single SIC code sector definition as those detailed in the previous two tables, and is instead defined by several lower level two digit SIC codes from a range of professional services and manufacturing sectors (see Appendix 1). The BRES data is however likely to underestimate the sector given that sole traders below the VAT threshold are not captured (previous reports have estimated that the sector accounts for a much higher proportion of jobs 6). The area has a unique offer for these businesses given its exceptional landscape, the visitor economy and the proximity to surrounding cities and markets. 2.13 Knowledge based industries are similarly not defined in a single SIC code and employment estimates are aggregated from a range of two digit SIC codes (see Appendix 2). Private sector knowledge based employment accounts for 18% of wider Peak District employment. The area is broadly in line with the wider LEPs on this indicator (D2N2 23%, Stoke on Trent and Staffordshire 19%, Sheffield City Region 18%). The wider Peak District performs reasonably well as a rural area in terms of knowledge based employment , with a higher proportion of employees in these industries than the majority of comparator areas (wider Yorkshire Dales 27%, wider Dartmoor 17%, wider North York Moors 16%, wider Lake District 12%).

6 Derbyshire Creative Industries Development Corridor Strategy 2007.

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2.14 Considering both public and private sector employment, half of employees in the wider Peak District are accounted for by knowledge based industries (47,600 employees, 51%). This places the area only marginally behind D2N2 (53%), Sheffield City Region (52%) and England (53%), and ahead of Stoke on Trent and Staffordshire (47%). 2.15 The area has a higher proportion of knowledge based public and private sector employment compared to other comparable rural areas. The area has a higher proportion of employees in knowledge intensive industries than wider North York Moors (47%), wider Dartmoor (42%), and the wider Lake District (37%). It is however slightly below the wider Yorkshire Dales (53%).

Other Important Sectors: Agricultural and Visitor Economy 2.16 The agriculture sector is a key underpinning sector for the wider Peak District’s economy and its communities. The sector maintains and enhances the landscape, which is one of the area’s key assets. The landscape and associated industries support wider production and service supply chains, as well as indirectly adding value to the wider business base. A 2008 study found that a significant proportion of businesses in the National Park (40%) felt that their performance would be seriously affected by a deterioration in the landscape 7. Other wider benefits central to the wider Peak District offer include a high quality of life and strong sense of place. 2.17 In employment terms however, the agricultural sector is a fairly small sector. Information about the workforce is collected via the Defra Survey of Agriculture, which shows there are just over 5,600 employees in the agriculture sector in the wider Peak District. The majority of employment is in Staffordshire Moorlands (42%) and Derbyshire Dales (41%), with less in the High Peak (17%). 2.18 The wider Peak District authorities contribute a significant proportion of agricultural employment in the LEPs. Over half of agriculture employment in D2N2 is accounted for by Derbyshire Dales and High Peak (46%), while a third of agriculture employment in Stoke-on Trent and Staffordshire (34%) and Sheffield City Region (33%) is accounted for by Staffordshire Moorlands and Derbyshire Dales respectively. Compared to other rural areas, the wider Peak District has a relatively low agriculture employment base. At 21 jobs in the agricultural sector per 1,000 residents, the wider Peak District has the lowest level of agricultural employment of the comparator rural areas, which range from 25 jobs per 1,000 residents in wider Dartmoor to 32 jobs per 1,000 residents in the wider North York Moors. 2.19 The agricultural economy in the wider Peak District is likely to be affected by the changes to the Common Agricultural Policy (CAP), which are currently being consulted upon. In recent years, the sustainability of agricultural businesses within the wider Peak District has been improved by their diversification into a broader range of activities. At this stage, it is not clear what level of funding is likely to be available to support this type of activity, but the need to build resilience into rural businesses (both land-based and other businesses) remains. 2.20 The visitor economy is not defined by standard industrial classification (SIC) codes. In line with the definition used by the LEPs, this study has defined it as hospitality (hotels and restaurants), attractions, museums, sporting facilities and travel agencies and tour operators. Combined these sectors employ 10,800 people within the wider Peak District economy, 12% of total employment. With an LQ of 1.3, the sector is over represented in the wider Peak District. The sector is however characterised by part-time working and low wages. Over half of employment in the sector is part-time (55%), compared to the area average of 39%, and although data is not available for the wider Peak District, nationally average earnings in the sector are around half of the average of all sectors.

7 Contribution of the Peak District National Park to the Economy of the East Midlands, SQW 2008.

14 Growing the Rural Economy: Evidencing the Case for the Peak District

2.21 The available STEAM 8 statistics show that in 2011, Derbyshire Dales and High Peak received a relatively high level of visitor revenue compared to the other Derbyshire districts, ranked first and second respectively out of the eight districts.

Sub-Sector Strengths Significant Sub-Sectors in the Wider Peak District 2.22 At the detailed sector level (two digit SIC codes), there are 19 significant sub-sectors in the wider Peak District 9. As shown below, the vast majority are sub sectors of manufacturing, the visitor economy and the public sector.

Significant private sector wider Peak District sectors 2012 Employees LQ Sports, amusement & recreation activities 3,200 2.4 Land transport 2,600 1.5 Manufacture of food products 2,100 1.9 Manufacture of fabricated metal products 2,000 2.0 Accommodation 1,800 1.4 Manufacture of machinery & equipment 1,600 2.3 Manufacture of other non-metallic mineral products 1,500 5.9 Other mining & quarrying 1,300 21.1 Manufacture of motor vehicles, trailers & semi-trailers 1,000 2.2 Manufacture of chemicals & chemical products 900 2.7 Manufacture of rubber & plastic products 900 1.8 Libraries, archives, museums & other cultural activities 900 2.7 Manufacture of basic metals 600 2.5 Manufacture of furniture 500 1.9 Printing and reproduction of recorded media 500 1.3 Manufacture of computer, electronic & optical products 500 1.3 Waste collection, treatment and disposal & recycling 500 1.3 Source: Business Register and Employment Survey. Employment is rounded to the nearest 100. 2.23 These sectors range significantly in terms of productivity. The majority of manufacturing sectors have above average productivity, in particular the manufacture of machinery and equipment, motor vehicles and food products, while the service sectors are below average. Wider Peak District Contribution to LEP Priority Sectors 2.24 The three LEPs, D2N2, Sheffield City Region and Stoke-on-Trent and Staffordshire, have each highlighted sectors which are considered to be a priority in the LEP area. In making the case for the wider Peak District, it is important to understand the districts’ contribution to these sectors. The standard industrial codes (SIC) used by each of the LEPs to define the priority sectors is included in Appendix B. D2N2 2.25 Derbyshire Dales and High Peak make a significant contribution to several of D2N2’s priority sectors. As shown overleaf, the districts, which account for 8% of overall employment in D2N2, account for 8% of manufacturing employment in D2N2 and have a higher LQ in this sector than the LEP. Furthermore, 10% or more of the LEP’s employment in food and drink manufacturing, the visitor economy and in advanced manufacturing sectors is accounted for by these districts. These sectors also have a higher LQ in the wider Peak

8 Scarborough Tourism Economic Activity Model. 9 For this purpose, a significant sector has been defined as a sub sector (2 digit standard industrial classification) with more than 500 employees and a LQ of more than 1.2.

15 Growing the Rural Economy: Evidencing the Case for the Peak District

District than the LEP average, particularly advanced manufacturing (defined as manufacture of chemicals, metals and metal products, and electrical and other machinery) and food and drink manufacturing.

Derbyshire Dales and High Peak contribution to D2N2 priority sectors 2012 Derbyshire Dales and High Peak D2N2

% of total sector Employees LQ LQ employme nt in D2N2 Total employment 66,000 - 8% - Manufacturing 10,288 1.8 8% 1.6 Visitor economy 6,800 1.1 10% 0.8 Advanced manufacturing 5,600 2.1 10% 1.6 Construction 2,500 0.9 6% 1.0 Food & drink manufacturing 1,800 2.1 11% 1.5 Manufacturing of transport machinery 600 1.0 3% 2.4 Medical & bioscience 200 0.4 4% 0.7 Source: Business Register and Employment Survey. Employment is rounded to the nearest 100.

Sheffield City Region 2.26 The Sheffield City Region priority sectors are shown below. In proportionate terms, the wider Peak District contributes to a relatively small amount of employment to the LEP’s priority sectors. Given that only one of the districts is within the LEP boundary and several of the LEP’s priority sectors are niche sub-sectors, this is perhaps unsurprising. 2.27 The wider Peak District is well placed however to contribute to the growth of Sheffield City Region’s creative and digital industries sector. The exceptional landscape and the area’s quality of life offer are key assets that will help to grow existing business base in this sector, as well attracting new start ups and talented professionals. 2.28 Derbyshire Dales’ contribution to other sectors with growth potential in the Sheffield City Region economy should also be recognised. The district has strengths in manufacturing and the visitor economy, both of which are marked as opportunities in the LEP area.

Derbyshire Dales contribution to Sheffield City Region priority sectors 2012 Derbyshire Dales SCR

% of total sector Employees LQ LQ employme nt in SCR Total employment 35,200 - 5% - Financial, prof. & business services 1,700 0.4 3% 0.7 Advanced manufacturing 600 0.4 2% 0.9 Creative & digital industries 900 0.5 3% 0.7 Logistics 900 1.0 4% 1.3 Low carbon 300 0.6 3% 1.0 Health technologies <100 0.2 1% 1.0 Source: Business Register and Employment Survey. Employment is rounded to the nearest 100.

Stoke-on-Trent and Staffordshire 2.29 Staffordshire Moorlands makes a considerable contribution to several of the Stoke-on-Trent and Staffordshire LEP’s priority sectors. The area has strengths in the manufacturing sector and sub-sectors (advanced manufacturing and applied materials), primarily in the manufacture of machinery and equipment, vehicles and chemicals, and the

16 Growing the Rural Economy: Evidencing the Case for the Peak District visitor economy which is significantly over represented in the district due to the presence of Alton Towers.

Staffordshire Moorlands contribution to Stoke -on -Trent and Staffordshire priority sectors 2012 Staffordshire Moorlands S&S

% of total sector Employees LQ LQ employme nt in S&S Total employment 27,300 - 5% - Manufacturing 4,400 1.9 8% 1.5 Visitor economy 4,400 3.5 11% 1.0 Health 3,500 1.0 6% 1.1 Education 3,100 1.2 8% 1.0 Financial, prof. & business services 2,900 0.8 8% 0.7 Building technologies 2,700 1.8 9% 1.4 Retail 2,400 0.9 5% 1.1 Applied materials 2,200 2.3 9% 1.6 Advanced manufacturing 2,000 2.1 12% 1.2 Logistics 1,100 0.9 4% 1.3 Creative and digital 500 0.3 3% 0.7 Energy generation 300 0.6 4% 0.9 Medical technologies 200 1.2 8% 0.9 Agri tech <100 0.1 6% 0.1 Source: Business Register and Employment Survey. Employment is rounded to the nearest 100.

Resident Employment by Sector 2.30 To this point, this chapter has considered the workplace employment sector profile (i.e. those employed in the wider Peak District regardless of where they live). This section considers resident employment by sector (i.e. the sector in which residents in the wider Peak District are employed, regardless of the location of their employer). The key points are: • Manufacturing is a prominent sector. The proportion of the workforce employed in manufacturing (13%) is higher than the national average (9%), in line with the D2N2 and Stoke-on-Trent and Staffordshire average (13%) and slightly higher than the Sheffield City Region average (11%). • The proportion of workers employed in the wholesale and retail sector (14%) is lower than the national average (16%) and the average in the wider LEP areas (18%-17%). • Financial, professional and business services employment (13%) is slightly above the LEP area averages (12%-11%) but behind the national average (16%).

17 Growing the Rural Economy: Evidencing the Case for the Peak District

Resident workforce sector profile Wider Sheffield Stoke & Peak D2N2 England CR Staffs District Public sector 28% 29% 30% 27% 28% Wholesale & retail 14% 17% 17% 18% 16% Manufacturing 13% 13% 11% 13% 9% Financial, prof. & business services 13% 11% 12% 12% 16% Construction 8% 8% 9% 9% 8% Hospitality 6% 5% 5% 5% 6% Other services 5% 4% 4% 5% 5% Transport & storage 4% 5% 5% 6% 5% Information & communication 2% 3% 3% 2% 4% Agriculture 2% 1% 1% 1% 1% Real estate 1% 1% 1% 1% 1% Utilities 1% 2% 1% 2% 1% Mining 1% - - - - Census 2011

2.31 The main points to note in a comparison of the wider Peak District workforce to other rural areas are that: • The wider Peak District has the highest proportion of resident employment in the manufacturing sector; and • The area has the lowest proportion of employment in hospitality compared with the comparator rural areas, although it is slightly above the national rural area average. 2.32 Considering the split of full and part time working in the resident employment base, there is considerable variation by sector. Part time working is highest in the hospitality (41% full time (ft), 59% part time (pt)), health (56% ft, 44% pt), education (57% ft, 43% pt) and other services (59% ft, 41% pt). In each of these sectors, the proportion of part time employees is higher than the national average (hospitality 53%, health 38%, education 40% and other services 39%).

Business Base 2.33 The wider Peak District has a large and thriving business base, with excellent long term survival rates. There are 10,900 businesses in the wider Peak District area, which equates to 67 businesses per 1,000 working age population. This places the wider Peak District ahead of the wider LEP area averages and the national average in terms of business density. However, compared to other rural areas, the wider Peak District has a lower business density. 2.34 At the district level, each of the districts have a higher business density than the average across their respective LEPs. The highest business density at the district level is in Derbyshire Dales (4,000 businesses, 92 businesses per 1,000 working age population), followed by High Peak (3,700 businesses, 63 businesses per 1,000 working age population) and Staffordshire Moorlands (3,300 businesses, 55 businesses per 1,000 working age population). In the interpretation of this data, it should be noted that only those businesses that are PAYE and/or VAT registered are captured.

18 Growing the Rural Economy: Evidencing the Case for the Peak District

Business density 2012: Enterprises per '000 working Business density 2012: Enterprises per '000 working age age population population Source: Business Demography and Mid-Year Population 68 Source: Business Demography and Mid-Year Population Estimates 60 78 74 75 49 51 68 69 44 England

Sheffield City D2N2 Stoke and England Wider Peak Wider Peak Wider North Wider Dartmoor Wider Lake Wider Yorkshire Region Staffordshire District District York Moors District Dales

2.35 The wider Peak District business base has a high proportion of small businesses. The vast majority of businesses in the area (91%) have fewer than ten employees, which is higher than the wider LEP (Sheffield City Region 86%, D2N2 87%, Stoke-on-Trent and Staffordshire 88%) and England average (88%). At the local authority level, the business base is particularly characterised by small businesses in Staffordshire Moorlands. A high proportion of small businesses is a common feature of rural areas and the wider Peak District’s profile is in line with the comparator rural areas. 2.36 The large businesses in the area should however not be overlooked. There are 40 businesses across the wider Peak District that employ 100 to 249 staff and 15 that employ 250+ staff. This includes Moy Park (one of Europe’s leading poultry companies) , Eco-Bat Technologies (the world's largest producer and recycler of lead), Longcliffe Ltd (leading producers of high quality calcium carbonates), the Chatsworth Estate, JCB, Lafarge Tarmac, Belle Engineering, Nestle and Swizzles Matlow. Although only forming 1% of the overall business base in the wider Peak District, medium and larger sized employers make a valuable contribution to the employment base of the area and offer potential for expansion and growth.

Business size profile 2013 Micro (0 -9 Sm all (10 -99 Med. (100 -249 Large (250+ employees) employees) employees) employees) Staffordshire Moorlands 93% 7% <1% <1% Derbyshire Dales 91% 8% <1% <1% Wider Peak District 91% 8% <1% <1% High Peak 90% 10% <1% <1% Source: UK Business: Activity, Size, Location

2.37 In 2012, the wider Peak District’s business start up rate (8%) was slightly behind that of the wider LEP areas (Sheffield City Region 11%, D2N2 10% and Stoke-on-Trent and Staffordshire 10%) and the national average (12%). There is however variation at the district level, with a relatively high business start up rate in High Peak (10%), compared to Derbyshire Dales and Staffordshire Moorlands (8% each). 2.38 Businesses in the wider Peak District have a better than average survival rate. Compared to the wider LEP averages, taking 2007 as the base year, a higher proportion of businesses in the area survive each year up to five years. All the wider Peak District districts perform well in terms of business survival compared to their LEP peers. Derbyshire Dales has the highest five year survival rate of the districts in Sheffield City Region (nine districts) and D2N2 (17 districts), High Peak is ranked fifth in D2N2 and Staffordshire Moorlands has the highest survival rate in Stoke and Staffordshire. Business support has previously been based on programmes of one-to-one business support and small grants and it could be argued that this has contributed to the area’s survival rates.

19 Growing the Rural Economy: Evidencing the Case for the Peak District

Business survival rates 1 year 2 year 3 year 4 year 5 year survival survival survival survival survival Wider Peak District 98% 84% 68% 58% 50% Sheffield City Region 95% 78% 60% 49% 41% Stoke & Staffs. 95% 81% 63% 52% 44% England 95% 81% 63% 52% 44% D2N2 96% 81% 64% 52% 45% Source: Business Demography. Based on businesses born in 2007

2.39 A high level of business survival is not unusual for a rural area, however the wider Peak District also performs well compared to the rural comparator areas. Although the difference in survival rate is small (an additional one to two percentage points higher survival rate each year), the area’s survival rate is ahead of the comparator areas’ each year up to five years. 2.40 The largest proportion of businesses in the wider Peak District are in the agriculture sector (15%), followed by professional, scientific and technical (11%), construction (10%) and retail (10%). When compared to employment in these sectors, this profile reflects the small number of employees employed by wider Peak District business. It also shows that there are larger businesses in terms of employment in the manufacturing sector.

Wider Peak District business base by sector 2012 Source: UK Business: Activity, Size, Location 16% 14% 12% 10% 8% 6% 4% 2% 0%

2.41 Compared to the wider LEP areas, the over representation of the agriculture sector (in D2N2, Sheffield City Region and Stoke-on-Trent and Staffordshire the sector accounts for 4%, 5% and 7% of businesses respectively), makes other sectors appear under represented when comparing the business sector profiles. However, considering the proportion of businesses in each of the LEP areas, the analysis highlights several other sectors that are over represented – see table overleaf.

20 Growing the Rural Economy: Evidencing the Case for the Peak District

Wider Peak District businesses as a % of LEP total 2012 Derbyshire Dales & High Peak businesses in D2N2 Total 12% Agriculture 31% Transport & storage 16% Hospitality 14% Professional, scientific & technical 12% Derbyshire Dales businesses in SCR Total 9% Agriculture 33% Professional, scientific & technical 10% Hospitality 9% Property 9% Transport & storage (inc. postal) 9% Staffordshire Moorlands businesses in Stoke & Staffs. Total 10% Agriculture 32% Transport & storage 12% Source: UK Business: Activity, Size, Location

2.42 Data regarding the business sector profile is not available at a more detailed sector breakdown than that presented above. Given that the LEPs’ priority sectors are tightly defined and built up from sub-sectors rather than based on broad sector definitions, it is difficult to estimate the number of businesses that the wider Peak District contributes to each LEP priority sector. Where possible, the contribution that wider Peak District authorities make to the LEPs’ priority sectors is shown below. This shows that the districts make a valuable contribution to the LEP priority sector business base.

Wider Peak District contribution to LEP business base in priority sectors 2012 No. % Derbyshire Dales & High Peak businesses as % of D2N2 Manufacturing 670 12% Construction 830 10% % of total - 12% Derbyshire Dales businesses as % of SCR Manufacturing 330 7% Financial, prof. and business services 910 9% % of total - 9% Staffordshire Moorlands businesses as % of Stoke & Staffs. Manufacturing 320 10% Construction 480 10% Financial, prof. and business services 670 9% % of total - 10% Source: UK Business: Activity, Size, Location

Competitiveness 2.43 The 2013 UK Competitiveness Index (UKCI) benchmarks the competitiveness of the UK’s localities including cities. The index is comprised of a range of input (economic activity rates, business density and start up, knowledge based activity), output (GVA, productivity,

21 Growing the Rural Economy: Evidencing the Case for the Peak District employment) and outcome (wages and unemployment) indicators of competitiveness. A score for each area is produced and the areas are ranked by score from 1 to 379. 2.44 Compared to the wider LEP districts, the wider Peak District performs reasonably well in terms of competitiveness. Derbyshire Dales’ rank (168) is the highest of all Sheffield City Region districts and is second to Derby (ranked 99) amongst the D2N2 districts. High Peak (rank 221) is mid-table amongst the D2N2 districts (seventh out of seventeen), as is Staffordshire Moorlands amongst the Stoke-on-Trent and Staffordshire districts (rank 296, fourth out of nine).

The Case for the Wider Peak District The wider Peak District has a large, well established and resilient business base as the relative level of geographic isolation and the highly skilled resident base lends itself to an enterprising culture. Although the vast majority are small businesses, with the remainder accounted for by high growth and larger businesses, the potential level of growth which could be achieved should not be underestimated. Furthermore, the business base is likely to be greater than that shown in the statistics due to the potential number of sole traders (non-VAT or PAYE registered) not captured in any available data. The area’s business base is productive, generating a level of GVA per FTE above or in line with the wider LEP areas, and each of the district economies perform reasonably well, or in the case of Derbyshire Dales very well, in terms of competitiveness. Although there is some variation in the three districts’ sectoral employment structure, there are also commonalities. There is a high volume of employment in manufacturing, a sector in which employment is over represented compared to the national level in each of the districts. Several of the area’s sub-sector strengths are in manufacturing, particularly in the manufacture of food, metal products and machinery and equipment. Linked to the landscape, the visitor economy and agricultural sector are both important sectors across the wider Peak District. The visitor economy provides a substantial number of jobs (although low wage and often part time) as well as supporting agricultural diversification. Improving the quality of the tourism offer will help to grow the value of this sector. The agricultural sector (although not substantial in terms of employees) has a key role in the maintenance of the Peak District landscape. While the wider Peak District economy is not defined by the landscape, it is a unique asset and one from which there are an array of critical wider benefits to be gained. This includes the Peak District brand, eco-system services and an attractive offer to inward investors (businesses and individuals). These sectoral strengths play into several of the LEPs’ priorities and should form a key part of the wider Peak District’s case for investment.

22 Growing the Rural Economy: Evidencing the Case for the Peak District

3 PEOPLE AND PLACE

Key Point Summary • There are over 259,000 residents in the wider Peak District. The demographic profile shows a slightly higher proportion of residents aged 65+ compared to the wider LEP and national averages. It does however have a relatively large working age population compared to the other rural comparator areas. • The area has a high proportion of working age residents with higher level skills (Level 4+) (31%), outperforming the wider LEP and national average on this indicator. There is also a high proportion of the resident workforce employed in highly skilled occupations (employed both inside and outside the wider Peak District area). At 40%, the proportion is ahead of the LEP averages (35-37%) but below the national average. There are 15% of the wider Peak District workforce with a Level 3 qualification. Level 3 skills are noted as important for the manufacturing and engineering sectors. • The employment opportunit ies offered in the wider Peak District tend to be low paid. Workplace earnings in the area are amongst the lowest of the wider LEP area districts. Conversely, resident earnings in High Peak and Derbyshire Dales are much higher and are in line with the national average, reflecting residents’ commuting to high paid employment in the surrounding cities. Staffordshire Moorlands’ residents’ earnings are lower and are in line with the area’s workplace average. • Unemployment across the wider Peak District is low. The Jobseekers Allowance claimant count (1.7%) is below that of the wider LEPs (D2N2 3.1%, Sheffield City Region 3.8%, Stoke-on-Trent and Staffordshire 2.4%) and the national average (3%). There are pockets of higher unemployment e.g. two wards in Glossop have more than 20% of working age residents on an out of work benefit, representing some of the highest rates in Derbyshire. • There are pockets of deprivation in the wider Peak District, with 1% of lower super output areas (LSOAs) amongst the most deprived 10% in the country. Considering deprivation by type, the area is particularly deprived in terms of barriers to housing and services, where 18% of LSOAs are amongst the most deprived 10% nationally. • The landscape of the area is one of the wider Peak District’s unique features, creating a sense of place and adding value to the area’s economy. The area’s central location surrounded by conurbations means it is in an ideal geographic position to fully realise the economic potential that arises from the opportunities generated by the landscape. • Affordable housing is a significant issue for the wider Peak District. House prices in Derbyshire Dales and High Peak are higher than in the majority of the surrounding LEP districts and are unaffordable for those on average wages. • Access to superfast broadband, particularly in rural areas is limited. Local broadband plans will be delivered by BT in both counties over the next two to three years to roll out fibre broadband. However the distance of many rural premises from exchanges could mean some areas are only able to access a basic service.

3.1 This analysis uses data from the 2011 Census rather than the Annual Population Survey (APS). The Census offers a much higher level of statistical confidence, particularly when looking at population sub-groups in relatively small geographical areas.

23 Growing the Rural Economy: Evidencing the Case for the Peak District

Population and Demographics 3.2 There are nearly 260,000 residents in the wider Peak District area, with a slightly higher proportion of residents in Staffordshire Moorlands (37%) and High Peak (35%), compared to Derbyshire Dales (27%). A total of 15% of the wider Peak District area residents live within the National Park boundary.

Residents 2011 Peak District National Park 37,900 Derbyshire Dales 71,100 High Peak 90,900 Staffordshire Moorlands 97,100 Wider Peak District 259,100 Source: Census 2011

3.3 The wider Peak District has a slightly higher proportion of residents aged 65+ (20%) compared to the wider LEPs (D2N2 17%, Sheffield City Region 17%, Stoke-on-Trent and Staffordshire 18%), and the national averages (16%), with a correspondingly lower proportion of working age residents (aged 16-64) and children. The wider Peak District’s demographic profile is broadly in line with the national rural area average, however amongst the comparator areas, the wider Peak District has a larger working age population and the lowest proportion of residents aged 65+.

Workforce 3.4 Throughout this chapter we discuss the characteristics of the wider Peak District resident working age (16-64 years) workforce. This is provides an overview of those who live in the area, considering whether they are employed or unemployed, their skill levels and where they are employed, their occupation. There are 162,900 individuals in the wider Peak District workforce, with over 130,100 who are economically active and 32,800 who are economically inactive. A summary of the number of residents by type of economic activity and inactivity is show in the figure overleaf. The 123,300 residents in employment is significantly higher than the 93,000 who are employed within the wider Peak District area and suggests that one quarter of wider Peak District residents in employment commute to work outside the three wider Peak District districts .

24 Growing the Rural Economy: Evidencing the Case for the Peak District

3.5 The workforce is one of the wider Peak District’s key strengths, as the economic activity rate is higher than the surrounding LEP areas, with a higher employment rate and lower unemployment 10 . Of those who are employed, the split between full time and part time working is broadly similar to the wider LEP areas, however the area has a higher proportion of self employment (17%) (13% in each of the LEPs). Of the inactive working age residents, the majority in the wider Peak District are retired (34%) and retirement accounts for a higher proportion of inactivity compared to LEP area averages.

10 Detailed 2011 Census data profiling economic activity for residents by age has not yet been released (this is available for the standard data which uses residents aged 16-74 as the base). Therefore when using residents aged 16-64 as the base, the unemployment category combines unemployed and economically active full time students. Although still below the wider LEPs, the difference in unemployment rate in the wider Peak District is likely to lower. Also, it is not possible to include the National Park profile as lower level geographies are also not yet available.

25 Growing the Rural Economy: Evidencing the Case for the Peak District

Economic activity and inactivity Sheffield Stoke & Wider Peak District D2N2 CR Staffs No. % % % % Economically active 130,141 80% 76% 75% 77% Employed 123,333 95% 92% 91% 93% Unemployed 6,808 5% 8% 9% 7% Economically inactive 32,803 20% 24% 25% 23% Retired 11,205 34% 23% 22% 25% Student (incl. full-time students) 6,931 21% 28% 27% 24% Looking after home or family 5,605 17% 19% 19% 19% Long-term sick or disabled 6,501 20% 21% 23% 22% Other 2,561 8% 9% 9% 10% Source: Census 2011. Base: Residents aged 16-64. Note: Unemployed includes unemployed and economically active full time students. 3.6 Across the wider Peak District area, the workforce profile is broadly similar. The main variation is in the proportion of retired residents, which is highest in Derbyshire Dales and Staffordshire Moorlands. The split between full and part time working is broadly similar across the area. Self employment varies however, with the highest proportion in Derbyshire Dales (21%), Staffordshire Moorlands (17%) and High Peak (16%). Across the rural areas considered for this study, the workforce profiles are broadly similar.

Economic activity and inactivity by local authority and National Park 2011 Staffords Wider Derbyshi High hire Peak re Dales Peak Moorland District s Economically active 80% 80% 80% 79% Employed 95% 96% 94% 95% Unemployed 5% 4% 6% 5% Economically inactive 20% 20% 20% 21% Retired 34% 37% 30% 35% Student (incl. full-time students) 21% 20% 25% 19% Looking after home or family 17% 18% 17% 17% Long-term sick or disabled 20% 15% 21% 22% Other 8% 10% 7% 7% Source: Census 2011. Base: Residents aged 16-64. Note: Unemployed includes unemployed and economically active full time students. 3.7 The youth unemployment rate varies across the Peak District with most recent JSA claimant rate for 18-24 years (November 2013) shows High Peak has a youth unemployment rate of 4.5%, Derbyshire Dales a rate of 2.5% and Staffordshire Moorlands 3.5%. These rates are below LEP and national average (D2N2 5.4%, Sheffield City Region 6.6%, and Stoke and Staffordshire 4.6%, England 5.1%). 3.8 The wider Peak District has a high level of home working. There are 18,200 residents who work from home, this equates to 15% of those in employment which is higher than the wider LEP areas (Stoke and Staffordshire 10%, Sheffield City Region 9% and D2N2 8%). The rate of home working is particularly high amongst wider Peak District residents who are self employed, with half working from home (51%). This is again higher than in the wider LEPs (Stoke and Staffordshire 42%, Sheffield City Region 39% and D2N2 35%).

Claimants 3.9 The wider Peak District has a low level of unemployment. There are just over 2,700 Jobseekers Allowance claimants in the wider Peak District (October 2013), which

26 Growing the Rural Economy: Evidencing the Case for the Peak District

equates to 1.7% of the working age population, below the LEP averages (D2N2 3.1%, Sheffield City Region 3.8%, Stoke-on-Trent and Staffordshire 2.4%) and the national average (3%). 3.10 There is variation in the claimant rate at the local authority level, with the highest rate in High Peak (2.2%), followed by Staffordshire Moorlands (1.6%) and Derbyshire Dales (1.1%). An analysis at ward level highlights a high level of claimants (both absolute and proportionate) in wards to the west of Glossop (Gamesley), east of Buxton (Stone Bench) and in Biddulph (Biddulph East).

A Highly Skilled Workforce 3.11 Working age residents in the wider Peak District are highly qualified, with more holding degree-level qualifications than amongst the surrounding LEP areas and fewer with no qualifications. The proportion of residents with no qualifications (14%) or low level qualifications (Level 1) (15%), are in line with or 1% point below than the national average.

Residents with no qualifications Residents with Level 4 qualifications Source: Census 2011 19% Source: Census 2011. Base: Residents aged 16-64. 18% 31% 17% 30% 15% 26% 14% 24% 23%

Wider Peak England D2N2 Stoke & Sheffield City Sheffield City Stoke & D2N2 England Wider Peak District Staffordshire Region Region Staffordshire District

3.12 Rural areas tend to have a more highly skilled workforce compared to the national average and the wider Peak District skills profile is broadly in line with the profile in other rural areas.

Skills profile 2011 No quals Level 2+ Level 3+ Level 4+ Wider Yorkshire Dales 10% 67% 49% 34% Wider Dartmoor 11% 66% 47% 33% Wider Peak District 14% 64% 46% 31% Wider Lake District 14% 63% 44% 29% Wider North York Moors 14% 62% 43% 29% England 15% 61% 44% 30% Source: Census 2011. Base: Residents aged 16-64.

3.13 In the wider Peak District, the working age population who are economically active have higher skills levels compared to the total working age population. There is a lower percentage of economically active residents with no qualifications (10%) and a higher proportion with level 2+ (68%) and level 4+ qualifications (34%). The wider Peak District economically active working age population are more skilled than the surrounding LEP averages, considering both Level 2+ (D2N2 64%, Stoke-on-Trent and Staffordshire 63%, Sheffield City Region 62%) and Level 4+ skills (D2N2 30%, Stoke-on-Trent and Staffordshire 28%, Sheffield City Region 27%). The wider Peak District is broadly in line with the comparator rural areas on this measure.

27 Growing the Rural Economy: Evidencing the Case for the Peak District

Skills Gaps 3.14 A skills gap occurs when the current workforce lacks the skills necessary to meet the demands of a job. Data from the 2011 UK Employer Skills Survey contains data on skills gaps, although this is not available at the district level. The survey shows that the proportion of employers with a skills gap in Derbyshire (14%) and Staffordshire (17%) areas is lower than the national average of 18% 11 . Considering the proportion of employees who are not fully proficient in their job, Derbyshire performs well (4%), compared to the national average (6%), however Staffordshire is above the national average (7%). There are no significant differences in the Derbyshire and Staffordshire skills gaps profile by occupation compared to the national profile. 3.15 A skills shortage occurs when an employer cannot find appropriately skilled applicants to fill a job vacancy. Data from the 2011 UK Employer Skills Survey shows in Derbyshire and Staffordshire, 3% and 2% of vacancies respectively are skills shortage vacancies, which is in line with the wider LEP and national average (3%).

Occupations 3.16 Reflecting the skills they hold, a high proportion of wider Peak District residents are employed in highly skilled occupations, which includes managerial, professional and associate professional positions. Within the wider Peak District, the highest proportion of residents working in highly skilled occupations is in the National Park (45%), followed by Derbyshire Dales (43%), both of which are above the national average, then High Peak and Staffordshire Moorlands (41% and 37% respectively).

Residents employed in highly skilled occupations Source: Census 2011 40% 41% 37% 35% 36%

Sheffield City Stoke & D2N2 Wider Peak England Region Staffs. District

3.17 There is also a higher proportion of residents employed in skilled trades in the wider Peak District area (14%) compared to the wider LEPs (+1% to +2% points) and national averages (11%). Other variations compared to the wider LEPs include fewer residents employed in low skilled occupations including elementary occupations and sales (-2% points) and sales and customer services (-1% to -2% points). 3.18 Compared to other rural areas, the proportion of the resident employment in highly skilled occupations in the wider Peak District is lower than the national rural average and wider Dartmoor and wider Yorkshire Dales, but above the wider Lake District and wider North York Moors.

11 Data is unavailable at the district level.

28 Growing the Rural Economy: Evidencing the Case for the Peak District

Residents employed in highly skilled occupations Source: Census 2011 46% 44% 40% 41% 38% 36%

Wider Lake Wider North Wider Peak Wider National Wider District York Moors District Dartmoor rural Yorkshire average Dales

3.19 There are clear differences in the jobs held by those who work within the wider Peak District and those held by residents of the wider Peak District. A comparison with the workplace occupational profile suggests that residents are commuting out to access highly skilled roles in managerial, professional and skilled trade occupations. There is a 2% to 3% point difference in the wider Peak District’s resident and workplace occupational profile, however this data is drawn from different series (Census and Annual Population Survey – workplace analysis) and as such should be treated as indicative.

Wages 3.20 Employment opportunities available within the wider Peak District offer low levels of wages. On average, workplace earnings are between £340 and £350 per week (£17,680 and £18,200 p.a. respective), which is nearly 20% lower than the national average of £410 per week (£21,320 p.a.) 12 . The earnings of those employed in the wider Peak District districts are amongst the lowest in the LEP areas. High Peak and Derbyshire Dales rank eleventh and fourteenth of the seventeen D2N2 district areas, Derbyshire Dales ranks eighth of the nine Sheffield City Region districts and Staffordshire Moorlands ranks fifth of the nine districts in Stoke-on-Trent and Staffordshire LEP. 3.21 Resident earnings are the wages earned by those living in an area, regardless of where they might work. In Derbyshire Dales and High Peak, resident earnings are considerably higher than workplace earnings, reflecting the higher paid employment opportunities available to residents in the surrounding cities (see Chapter 4). At £420 and £410 per week respectively (£21,840 and £21,320 p.a.), the average weekly wage in Derbyshire Dales and High Peak is in line with the national average (£410). Compared to the other D2N2 districts, High Peak and Derbyshire Dales rank third and sixth in terms of resident wages, while Derbyshire Dales is ranked second in Sheffield City Region. 3.22 In Staffordshire Moorlands, resident earnings are much more closely in line with workplace earnings and are below the national average. This reflects both lower wage employment and a lack of neighbouring centres with high value jobs. They are also fairly low considering average earnings across the Stoke-on-Trent and Staffordshire LEP, ranked seventh out of the nine districts.

12 Data refers to average including all genders and both full and part time workers.

29 Growing the Rural Economy: Evidencing the Case for the Peak District

Median weekly earnings Source: Annual Survey of Hours and Earnings

£420 £410 £410 £410

£340 £340 £350 £350

High Peak Derbyshire Dales Staffordshire England Moorlands Resident earnings Workplace earnings

Full and Part Time Earnings 3.23 Considering residents’ earnings and the average full time weekly wage, Derbyshire Dales and High Peak (£537 and £517 respectively, £27,920 and £26,880 p.a.) are slightly higher than the national average (£513) (£26,680 p.a.), while Staffordshire Moorlands is again below average (£468) (£24,340 p.a.). The resident part time weekly wage in Derbyshire Dales (£175) (£9,100 p.a.) is above the national average (£156) (£8,110 p.a.) and slightly below average in Staffordshire Moorlands (£151) (£7,850 p.a.). The data for High Peak part time earnings is not statistically robust. 3.24 Considering workplace earnings, the average full time weekly wage in Derbyshire Dales and High Peak (£458) and Staffordshire Moorlands (£460) (£23,810 and £23,920 p.a. respectively) is below the national average (£513) (£26,680 p.a.). The workplace part time weekly wage in Derbyshire Dales (£156) (£8,110 p.a.) is in line with the national average (£155) (£8,060 p.a.) and below average in High Peak (£125) (£6,500 p.a.). The data for Staffordshire Moorlands full time earnings is not statistically robust. 3.25 The districts’ full and part time earnings (both workplace and resident) ranked amongst the wider LEP districts are broadly similar to the total earnings rankings detailed above. The only notable variation is High Peak, which has the lowest part time workplace earnings of the D2N2 districts.

Apprenticeships 3.26 In 2011/12 there were nearly 2,500 apprenticeship starts in the wider Peak District area. Over two fifths of these starts were accounted for by High Peak (1,010 starts), followed by Staffordshire Moorlands (850 starts, 32%) and Derbyshire Dales (620 starts, 24%). 3.27 Between 2008/09 and 2011/12, the number of apprenticeship starts in the wider Peak District increased by 89%, which is marginally higher than the national increase (86%). Compared to the increase in apprenticeships across the wider LEPs, the wider Peak District is ahead of the rate in D2N2 and Sheffield City Region (81% and 78% respectively) but behind that in Stoke-on-Trent and Staffordshire (91%). 3.28 In the wider Peak District, the majority of apprenticeship starts were intermediate level (Level 2) (60%), followed by advanced level starts (Level 3) (38%), with a small number of higher level (Level 4) starts (1%) (reflecting the relatively recent introduction of this qualification). This is broadly in line with the profile in the wider LEPs and nationally. 3.29 The profile of apprenticeships starts by sector subject area is broadly in line with the national profile. There are a slightly higher proportion of starts in engineering and

30 Growing the Rural Economy: Evidencing the Case for the Peak District manufacturing (15%) and agriculture, horticulture and animal care (4%) compared to the national average, which reflects the area’s business base.

Apprenticeship starts by sector subject area 2011/12 Wider Peak England District Business, administration and law 29% 32% Retail and commercial enterprise 23% 21% Health, public services and care 18% 21% Engineering and manufacturing technologies 15% 13% Agriculture, horticulture and animal care 4% 1% Leisure, travel and tourism 4% 4% Construction, planning and the built environment 4% 3% Information and communication technology 2% 4% Education and training 0% 1% Source: Skills Funding Agency

Deprivation 3.30 The Index of Multiple Deprivation provides a relative measure of deprivation at small area level across England. Areas are ranked from least deprived to most deprived on seven different dimensions of deprivation and an overall composite measure of multiple deprivation. It should be noted however that multiple deprivation statistics can be misleading in a rural context where the indicators are more acute in urban areas and access to services is measured via distance which primarily affects those without access to a car. 3.31 Multiple deprivation in the wider Peak District is concentrated in a small area to the west of Glossop. Overall, the wider Peak District has a relatively low level of deprivation in comparison to the national average. However there are small pockets of deprivation, as shown in the map below, which should not be overlooked. Based on data from the Index of Multiple Deprivation 2010, there is a small area in the wider Peak District to the west of Glossop which is amongst the top 10% most deprived lower super output areas (LSOAs) nationally (1% of all LSOAs in the wider Peak District). Of the remainder, 13% of LSOAs in the wider Peak District are amongst the top 25% deprived nationally (including parts of Glossop and Kingsley) and nearly a third of areas (31%) are among the top 50% most deprived nationally.

31 Growing the Rural Economy: Evidencing the Case for the Peak District

Areas Experiencing Mulitple Deprivation

Source: Multiple Index of Deprivation 2010

3.32 The wider Peak District is particularly deprived in term of barriers to housing and services, reflecting the relative sparsity of the area and housing affordability. Communities most affected by barriers to housing and services are found across the northern parts of Staffordshire Moorlands and south Derbyshire Dales encompassing Ashbourne, Warslow and numerous small villages.

Areas Experiencing Barriers to Housing and Services

Source: Multiple Index of Deprivation 2010

3.33 An assessment of each domain of the Index of Multiple Deprivation (IMD) 2010 is shown overleaf. Whilst there are small pockets of income and skills deprivation, the wider Peak District performs well against the health, living environment, and in particular, crime

32 Growing the Rural Economy: Evidencing the Case for the Peak District deprivation domains. These are key features of the wider Peak District which attract residents into the area and contribute to the LEPs’ quality of life and environmental offer.

Wider Peak District deprivation by type 2010 (% LSOAs amongst the most deprived nationally) 5% most 10% most 25% most 50% most deprived deprived deprived deprived Overall IMD rank - 1% 13% 31% Deprivation by domain Barriers to housing and services 6% 12% 25% 51% Education, skills and training 3% 4% 12% 33% Income 1% 2% 7% 28% Employment 1% 3% 12% 39% Living environment 1% 1% 12% 43% Health and disabilities - 1% 12% 36% Crime - - 7% 27% Source: Index of Multiple Deprivation

Landscape 3.34 The wider Peak District has an exceptional rural landscape in close proximity to urban areas, which creates opportunities for economic growth that other rural areas do not share. Across the wider Peak District, the landscape is considered to be both unique and of high quality. It is a heterogeneous landscape which includes: open moorlands and gritstone formations in the Dark Peak; river corridor habitats of the Derwent Valley; the dales and gorges of the White Peak; and the historic fieldscapes, woodlands and upland areas of the Staffordshire Moorlands. 3.35 In terms of settlements, there are market towns and villages across the area, alongside an array of small hill farms. The market towns have an important role in the wider Peak District as centres of employment and local services. These centres should be maintained as a healthy, vibrant and attractive town centres, which are readily accessible, if the full potential of economic growth in the wider Peak District is to be realised. The area also has a considerable amount of built heritage sites. These are unique assets which, with appropriate investment, can be put towards economic uses. 3.36 There are also a number of un-regenerated industrial legacy sites in market towns which with appropriate investment can be put towards economic uses to support business and job growth. In addition there are a small number of rural industrial legacy sites which offer significant potential if investment is secured. 3.37 The upland National Park landscape in particular contributes a substantial amount to the area’s added value. Uplands are however not without their challenges and difficult access, inclement weather and the impact of the CAP reform all pose issues for the upland parts of the wider Peak District. 3.38 As noted previously, the wider Peak District landscape is an important economic asset. The landscape offers further economic growth opportunities in eco-system services (see Chapter 5), a Peak District brand, in contributing towards a very high quality of life for local residents and businesses, and adding to the attractiveness of the surrounding urban areas.

Housing 3.39 Access to affordable housing is an issue for the wider Peak District (as reflected in the IMD data presented above). The average house prices in the area are considerably higher than the national average, inflated by low supply and high demand as a result of migration into the area and demand for second homes and holiday lets. In 2012,

33 Growing the Rural Economy: Evidencing the Case for the Peak District house prices were highest in Derbyshire Dales (£251,600), followed by High Peak (£172,700) and Staffordshire Moorlands (£157,450), reflecting the occupational and wage profile of the wider Peak District. The key points to note on house prices are: • Derbyshire Dales average house price is considerable higher than the rest of the districts in Sheffield City Region. Sheffield has the second highest average house price in the city region which is some £86,000 lower than the average in Derbyshire Dales. • Derbyshire Dales has the highest average house price of the D2N2 districts, although there is a relatively small difference between the first and second highest average price (Rushcliffe) (£19,000). High Peak has the fourth highest average house price in D2N2. • Staffordshire Moorlands ranks fifth out of the nine districts and Stoke-on-Trent in terms of average house prices. 3.40 House prices in the wider Peak District are not only expensive but are also unaffordable for low earners. Derbyshire Dales has the highest ratio of lower quartile house price to lower quartile earnings (8.45) of all districts in Sheffield City Region (the second highest is North East Derbyshire at 6.02) and the second highest in D2N2 behind Rushcliffe (9.03). High Peak meanwhile is fourth highest in D2N2 (6.15) and Staffordshire Moorlands is fifth highest in Stoke-on-Trent and Staffordshire (6.22)

Transport 3.41 An area’s connectivity is an important factor for enabling economic growth, affecting business to business transactions, workforce commuting, access to education, training and services, and, importantly for the wider Peak District, the visitor economy. The wider Peak District is located between two important national north-south corridors, with the M1 to the east and M6 to the west. There are series of A-roads traversing the districts; the A6 is the main route along which many settlements have historically formed (including Cromford, Matlock, Darley Dale, Bakewell, Buxton, and Chapel-en-le-Frith) and the A57 (Snake Pass) route in to Sheffield, the A624 between Glossop and Chapel-en-le Frith and the A57/A628 Trunk Road. The A52 and A50 provide a strategic corridor between Derby and Stoke on Trent. The rail network includes an east-west line crossing the north of the area linking Manchester and Sheffield, and an extension from the Midland Mainline into Matlock. 3.42 There is a limited route choice through High Peak and Derbyshire Dales owing to the rural nature of the settlements which has resulted in a radial highway and associated public transport network 13 . This contributes to congestion in the area primarily along the length of the A6 route, the trans-Pennine routes and routes into Manchester. The road network is also affected by seasonal factors including fluctuations in traffic related to the visitor economy and (unpredictable) road closures due to snow and ice.

Access to fast broadband 3.43 The wider Peak District is covered by two broadband delivery programmes, Digital Derbyshire (£27.7m) and Superfast Staffordshire (£27m). Funded by the respective county councils, BT, the Government's Broadband Delivery UK (BDUK) fund, and in Derbyshire by the European Regional Development Fund (ERDF), the programmes will provide fast broadband for those areas where cost has prevented previous private sector investment. By 2016, both programmes aim to ensure that the vast majority of premises in the county (95% in Derbyshire and 97% in Staffordshire) have access to fast broadband speeds and that the remaining areas receive an uplift of a minimum of 2Mbps in broadband speed through other broadband technology such as satellite or advanced copper.

13 North Derbyshire Local Development Frameworks: Derbyshire Dales and High Peak, Stage 1: Strategic Transport Issues Report, 2010.

34 Growing the Rural Economy: Evidencing the Case for the Peak District

3.44 A recent report from Ofcom, the communication industry regulator, highlights that between 2011 and 2013, the gap between average download speeds in urban and rural areas has widened 14 . This is due to the lower availability of superfast broadband services in rural areas compared to urban areas, and because broadband speeds are slower in rural areas due to the greater distance between the property and the nearest telephone exchange. 3.45 Fast broadband is important for improving business competitiveness, accessing services and enhancing residents’ quality of life, as well as for attracting new businesses and residents to the area. In short, access to fast broadband is critical to supporting vibrant communities and economic growth in the wider Peak District.

The Case for the Wider Peak District The wider Peak District has a strong workforce, meaning it is characterised by high employment rates and correspondingly low unemployment, with a high proportion of higher level skills and residents employed in managerial and professional occupations. Despite this, wages are low, housing is unaffordable for many and there are pockets of deprivation within the area. To achieve the employment and GVA growth they intend, the LEP areas will need to attract and retain a higher quality workforce, and the wider Peak District can make an important contribution to this objective. However, access to housing and fast broadband are key enablers, both for attracting and retaining residents and businesses. The need to address barriers to affordable housing and ensure access to fast broadband have already been acknowledged by partners and are a priority for investment in the wider Peak District for the short to medium term. The wider Peak District offers an exceptional and high value landscape. The landscape and the vibrant communities within it are one of the key factors that draw residents and businesses into the area. As discussed later in this report, there is significant opportunity for economic growth linked to the landscape from inward investment, emerging ecosystem industries (see Chapter 5), as well as a significant contribution to the quality of life offer across wider LEP areas.

14 9.5Mbit/s in May 2011 to 16.5Mbit/s in May 2013.

35 Growing the Rural Economy: Evidencing the Case for the Peak District

4 ECONOMIC LINKAGES AND RELATIONSHIPS

Introduction

4.1 As a rural area, the wider Peak District’s proximity to surrounding cities and conurbations is one of its unique features. An understanding of the economic linkages between the wider Peak District and these urban areas is a key part of an assessment of the area’s economy and the economic opportunities it offers. For the wider Peak District, these linkages offer employment and leisure opportunities, business markets and access to business and professional services, as well as an important source of visitors. 4.2 The chapter reviews the wider Peak District’s economic linkages. As the 2011 Census data relating to travel to work flows has not yet been released, data from the previous Census, combined with recent employment data and employment change analysis, as well as stakeholder consultations, have been used to identify flows and economic interactions with the surrounding urban areas. Current Employment Concentrations

4.3 The wider Peak District is in close proximity to Manchester, Stockport and Tameside to the north west, Sheffield and Chesterfield to the north east, Derby and Nottingham to the south east, and Stoke-on-Trent to the south west. As shown in the map below, as would be expected, there are considerably higher numbers of employees in these cities compared to the rural areas.

Concentrations of Employment

36 Growing the Rural Economy: Evidencing the Case for the Peak District

Travel to Work Patterns

Out-Commuting 4.4 Based on travel to work data from the 2001 Census, there are four main out- commuter travel to work patterns in the wider Peak District: • Sheffield: There are commuter flows from the north Derbyshire Dales and north east High Peak into Sheffield. The highest flows are from Hathersage, Eyam and Calver in Derbyshire Dales; • Greater Manchester 15 : In terms of commuting, the north west of High Peak looks toward Stockport and Tameside and there is little commuting into Sheffield from these areas. While the flows are primarily into Stockport and Tameside, Manchester also has an influence on the north west edge of High Peak (New Mills and Glossop); • Derby: There are considerable commuter flows from the south east of Derbyshire Dales into Derby. There are also flows out from Derbyshire Dales to Nottingham and Chesterfield, although these are relatively small in comparison; • Stoke-on-Trent: There are commuter flows from across much of the south and west of Staffordshire Moorlands into Stoke-on-Trent, particularly the towns close to the city such as Forsbrook; There are also commuter flows in the north of Staffordshire Moorlands around Biddulph and surrounding areas out towards Macclesfield and in the south east to Derby, although these are slightly lower that the main flow into Stoke-on-Trent.

Out-Commuting Flows

15 Mainly Stockport and Tameside.

37 Growing the Rural Economy: Evidencing the Case for the Peak District

In-Commuting 4.5 There is considerable in-commuting from Stoke-on-Trent into Staffordshire Moorlands, and also, although to a much lesser extent, from Macclesfield, Newcastle-under- Lyme and East Staffordshire. This reflects the relatively low availability of employment opportunities in Stoke-on-Trent and the large employers in Leek (Britannia Building Society/Co-operative Bank), Cheadle (JCB) and Alton (Alton Towers). 4.6 In comparison, Derbyshire Dales and High Peak experience little in-commuting. There are very small flows in from small parts of west Sheffield (Dore and Ecclesall areas) in to Derbyshire Dales, from east Stockport (Marple and Romiley areas) and Tameside (Hollingworth and Mottram in Longdendale) into High Peak. Internal Linkages 4.7 In terms of commuting patterns within the wider Peak District, there is little flow across the three local authorities. This is due to the relatively low paid jobs that are available, coupled with limited public transport and high commuting costs. There is only one small commuter flow within the area from Hathersage, Eyam and Bradwell into the Hope Valley (Hope, Thornbridge and Bamford). 4.8 The market towns across the wider Peak District have a vital role as centres of employment and services for residents and visitors; however links between the market towns are limited. Residents in the wider Peak District look to specific market towns based on proximity and available transport links for business markets, supply chains linkages, employment and leisure, and then look to the neighbouring conurbations for goods and service needs which are not met by the market town. Estimating Current Travel to Work Patterns

4.9 It would be reasonable to assume that the travel to work patterns observed in the 2001 Census are broadly representative of the current commuter flows. In the absence of more up to date travel to work data, an assessment of employment change during the last growth period has been used to augment the 2001 Census data, as well as information from the stakeholder consultations. Considering change in the last growth period 16 , the map below suggests that: • In-commuting flows to Staffordshire Moorlands have continued or increased, as the area has experienced employment growth, particularly in Alton which experienced a high net and proportionate increase (1,900 jobs, 279%) and there has been little growth in Stoke-on-Trent and surrounding districts. • Out-commuting from High Peak to Sheffield and Manchester has continued. Employment has declined across much of the area and although parts have experienced growth (around Buxton and Burbage), this was not large enough to offset the decline. There has been an increase in the proportion of residents travelling to work by train from the High Peak, from 3% in 2001 to 4% in 2011, which suggests further flows out to Manchester, Stockport and Tameside. • In Derbyshire Dales, it is likely that out-commuting from the north of the district into Sheffield has continued. In the south, it is more difficult to tell the extent to which this might have reduced out-commuting into Derby. There has been employment growth in Matlock and to the south of Ashbourne. Furthermore, there has been an increase in the proportion of residents working from home (9% in 2001 to 12% in 2011).

16 The available data only allows change to assessed from 2003 onwards.

38 Growing the Rural Economy: Evidencing the Case for the Peak District

Employment Change, 2003-2008

Visitor Linkages

4.10 The visitor economy is an important feature of the wider Peak District, however there is limited data on visitor flows. The Peak District visitor survey collected information on where visitors to the national park had travelled from, although this dates from 2005, and there is little information about the origins of visitors to areas outside the national park boundary. Overall the majority were from the UK, with only a small proportion from overseas (2%). Of the day visitors, the largest proportion of visitors came from Sheffield, Stockport and Derby, followed by Nottingham and Oldham. The overnight visitors came from across the UK with the highest proportion from the midlands and south east England. Although somewhat dated, it is likely that these survey results remain valid. The latest available STEAM statistics highlight the high proportion of day visitors, indicating that the majority of travel into the area is from the surrounding cities and conurbations. An Internal and External Dynamic

4.11 The economic linkages between the wider Peak District and the surrounding cities and conurbations have had a fundamental role in shaping the area’s economy. These linkages will be the drivers of future economic growth, with the opportunity to realise and develop supply chains, to access markets and to build linkages with the wider knowledge base including the world-leading universities located in the surrounding cities. 4.12 Alongside well developed external linkages, the internal linkages within the wider Peak District also need to be strong to ensure that the area’s economic growth potential is fully realised and that the benefits are spread as widely as possible. As noted in the previous chapter, the wider Peak District is characterised by both wealth and high earnings, as well as low wages, deprivation and poor access to housing and services. Building strong linkages to

39 Growing the Rural Economy: Evidencing the Case for the Peak District ensure that economic growth benefits all, including those areas where it is most needed, will be crucial in maintaining the wider Peak District as a vibrant and competitive rural area.

40 Growing the Rural Economy: Evidencing the Case for the Peak District

5 FUTURE OPPORTUNITIES

Recent Growth Trends

5.1 In recent years the wider Peak District economy has shown signs of growth. Between 2009 and 2012, employment in High Peak and Derbyshire Dales grew by 3% and 1% respectively, ahead of the wider LEP averages (Sheffield City Region declined by 2% and D2N2 grew only slightly 0.1%). Staffordshire Moorlands however experienced employment decline (5%), which offset the growth in the other wider Peak District areas resulting in a slight net decline (0.1%). 5.2 The key sectors which have driven the growth include public services (public administration, education and health), mining and quarrying and manufacturing. The key points to note are: • Public administration has somewhat surprisingly experienced growth. This was driven by Derbyshire Dales, accounting for all of the wider Peak District’s growth in this sector and offsetting the slight decline experienced in the other districts. • The growth in education and health was largely accounted for by increases in High Peak. • Manufacturing employment grew across all the wider Peak District districts (4%), with the highest absolute and proportionate growth in High Peak and Staffordshire Moorlands (6%) and a lower level of growth in Derbyshire Dales (1%). The is ahead of the wider LEP average growth (Sheffield City Region 1%, D2N2 0.3%, Stoke-on- Trent and Staffordshire 2%) and the national average (-3%).

Wider Peak District employment change 2009 - 2012 Change (No.) Change (%)

Public admin 2,600 42% Education 1,000 9% Mining 600 100% Health 600 6% Manufacturing 600 4% Business services 200 5% Agriculture <100 28% Transportation and storage <100 1% Utilities <-100 -86% Other service activities -100 -6% Water -200 -21% Professional services -300 -8% Arts, entertainment and recreation -400 -8% Real estate -400 -26% Information and communication -500 -36% Hospitality -700 -9% Construction -900 -21% Wholesale and retail -100 -7% Finance -1,200 -37% Source: Business register and Employment Survey

41 Growing the Rural Economy: Evidencing the Case for the Peak District

Growth Forecasts

5.3 Growth forecasts for the wider Peak District have been produced by Oxford Economics. Those presented in this section represent the ‘policy off’ scenario, i.e. what is likely to happen in the absence of public sector intervention. 5.4 Over the coming years the wider Peak District’s projected future growth rate is expected to be slower than that of the regional and UK economy. Between 2011 and 2023, it is expected that an additional 2,400 employment positions will be generated in the wider Peak District, an increase of 3% which is behind the predicted 8% growth expected regionally and nationally. GVA is expected to increase by £1b, growth of 26%, which is again behind regional and national projections (33% and 35% respectively).

Forecast change 2011 - 2023 Source: Oxford Economics 40% 35% 35% 33%

30% 26% 25% 20% 15% 10% 8% 8% 5% 3% 0% Employees GVA

Wider Peak District East Midlands UK

Forecast Sectoral Employment Change 5.5 The broad sectors in which a net increase in employees (full time equivalents (FTEs)) between 2011 and 2021 is expected are shown overleaf. The key points are: • Other services: The largest absolute growth is expected in the other services sector (1,500 FTEs) and it has one of the largest proportionate increases (20%). This is slightly ahead of the regional and UK rate (16%). The majority of the increase is accounted for by sports, activities and amusements growth (1,100 FTEs); • Transport and storage employment is expected to experience a high absolute (800 FTEs) and proportionate increase (19%), which is slightly ahead of the regional and UK projections (18% and 16% respectively); • The growth in the professional services sector (700 FTEs, 15%) is below the regional (18%) and UK average (31%); • Hospitality (9%) and wholesale and retail (11%) growth are also below regional (21% and 14% respectively) and UK average (18% and 12%).

42 Growing the Rural Economy: Evidencing the Case for the Peak District

Wider Peak District growth sectors 2011 - 2023 Source: Oxford Economics 1,600 1,400 1,200 1,000

FTEs 800 600 400 200 0

5.6 There are six sections of the wider Peak District economy where an employment decline is expected between 2011 and 2023. The key points are: • Public administration is expected to experience the largest decline (1,500 FTEs, 19%), which is greater than that expected regionally and nationally (16% each), with other public sector employment in education and health also expected to fall; • Overall, manufacturing employment is expected to decline (-3%). However, the area holds up compared to the forecasts regionally (-6%) and nationally (-9%) and some manufacturing sub-sectors are forecast to grow (see later in this chapter).

Wider Peak District declining sectors 2011 - 2023 Source: Oxford Economics 0 -200 -400 -600

FTEs -800 -1,000 -1,200 -1,400 -1,600

5.7 The sub sectors in the wider Peak District with the highest levels of projected absolute employment growth are shown below. These include sectors related to the visitor economy, landscape and specialist construction, and professional services.

43 Growing the Rural Economy: Evidencing the Case for the Peak District

Wider Peak District employment growth 2011-2023, top 10 sub-sectors (FTEs) No. % Sports activities and amusement 1,100 29% Retail trade, except of motor vehicles 900 13% Land transport 600 22% Specialised construction activities 400 11% Food and beverage service activities 400 11% Computer programming consultancy 300 26% Wholesale trade 300 10% Real estate activities 300 23% Services to buildings and landscape 200 10% Architectural and engineering activities 200 14% Source: Oxford Economics

5.8 Of the high growth sectors above, there are three sectors (computer consultancy, food manufacturing and metals manufacturing) in which the wider Peak District is expected to experience employment growth between 2011 and 2023 at a rate higher than the regional average which also have above average levels of productivity. There are similarly two lower value sub sectors which are expected to experience employment growth above the regional average.

Wider Peak District sub -sectors with employment growth 2011 -202 3 above the regional average (FTEs) East Wider Peak District Midlands Change Change 202 3 GVA Change (No.) (%) per FTE (%) Above wider Peak District average productivity Computer programming, consultancy 300 26% £70,000 23% Manufacture of food products 200 7% £57,900 2% Manufacture of fabricated metal products 80 4% £55,200 -2% Warehousing and support activities 100 27% £49,000 25% Below wider Peak District average productivity Sports activities and amusement 1,100 29% £23,300 26% Land transport 600 22% £40,800 19% Source: Oxford Economics. Note: Wider Peak District 2023 average productivity is expected to be £48,300. 5.9 There are other emerging opportunities for growth, including ecosystem services and the cultural and creative sector, which are not easily captured by SIC codes and therefore do not show up in the economic forecasts. 5.10 Ecosystem services include all the essential natural services provided by the land, including: • Food • Timber and other crops • Clean water • Biodiversity • Carbon storage

44 Growing the Rural Economy: Evidencing the Case for the Peak District

• Landscapes for enjoyment and leisure 5.11 There is an increasing focus on these services as a result of a growing population and the need to provide increasing quantities of food and other goods from a limited land supply, coupled with the increasing environmental pressures as a result of climate change. There is also an increasing body of evidence which shows that these services should be taken into account when planning land use and that the provision of these services offers opportunities for rural businesses. 5.12 Research from the Centre for Rural Economy 17 highlights the factors that would support and benefit rural businesses from taking an ecosystem approach, which include: • Establishing better ways of mapping and valuing our natural assets; • More interdisciplinary research that links natural and social sciences; • Taking greater account in policy of the benefits that natural assets deliver; • Farmers and land managers should be appropriately rewarded for the work they do in maintaining and enhancing the supply of ecosystems services from the UK countryside; • Recognising and supporting the work done by NGOs and quangos that contributes to the supply of ecosystems services; • The people who advise land managers should be better linked into research. 5.13 There is already a significant cultural and creative offer within the wider Peak District, with a large number of small businesses operating across the area. The creative sector is very valuable to the UK nationally, and is expected to be an important source of exports in future years. 5.14 Many of the existing cultural and creative businesses within the Peak District could be classified as lifestyle businesses and may not offer significant growth potential (although they do play an important role in enhancing the retail offer, attracting visitors and providing a market for business services companies within the Peak District – including accountants, administrative services etc). Within the sector however there are a number of professional cultural and creative businesses, some of which have an impressive client base including large national companies. There may be the potential to unlock growth within the sector if broadband access can be improved, and if appropriate support, sites and premises can be provided, such as the Creative Cluster at Cromford Mills 18 . 5.15 The importance of social enterprise and the voluntary and community sector should not be overlooked. The sector plays an important role in the delivery of goods and services and in the generation of employment and GVA. Furthermore, in more isolated areas, these organisations play an important part providing goods and services not provided by the public or private sector due to prohibitive costs. 5.16 With the decline in public funding set to continue, this lack of financial support will continue to present challenges for the sector and put greater pressure on organisations to generate revenue from other sources. Conversely, there are opportunities associated with the public sector funding reductions, as more services may be contracted out. However the extent to which smaller organisations have the capacity to compete for and deliver these contracts will be an important issue.

17 What do ecosystems offer the rural economy?, Centre for Rural Economy, Newcastle University 2013. 18 12,000 sq ft of managed workspace for creative businesses accommodating 100 workstations within flexible-space business units and access to shared reception, administration services and conference facilities.

45 Growing the Rural Economy: Evidencing the Case for the Peak District

The Case for the Wider Peak District The following sectors present significant opportunity for economic growth in the wider Peak District : • Knowledge economy: The wider Peak District’s exceptional landscape and close proximity to conurbations are unique assets. These will be important for both growing existing knowledge based businesses, and encouraging knowledge based start ups and professionals into the area. • Manufacturing: The area has a strong manufacturing base. There are also manufacturing sub-sectors which present significant future economic growth opportunities including food and drink (which has considerable potential to benefit from the development of a Peak District brand) and advanced manufacturing. • Cultural and digital industries: The area’s attractive location and landscape offer are again a key asset for growing these businesses, and attracting start ups and talented professionals to the area. • Visitor economy: There is opportunity to build a higher value visitor offer to encourage increased visitor spend and more overnight stays. The wider Peak District’s recreation offer has a strong link to the health and wellbeing agenda and there may be related opportunities for the wider Peak District which are worth exploring. • Ecosystem services: This sector offers the opportunity to draw further value from the wider Peak District landscape.

46 Growing the Rural Economy: Evidencing the Case for the Peak District

6 INVESTING IN THE WIDER PEAK DISTRICT

The Case for Investment 6.1 The importance of rural economies is well established. A recent paper from the Centre for Rural Economy 19 highlights that: • Rural businesses make a significant contribution to the national economy: Rural businesses comprise 28% of England firms and 19% of GVA; • Rural areas offer opportunities for growth by providing a dynamic and dense business base, strong manufacturing base and higher propensity to export, community provision of local services where the need is not met by the private sector, and opportunity linked to the environment itself (e.g. ecosystem and water services); • The rural environment enhances wider well-being: Environmental stewardship is central to achieving a balance between economic growth and sustainability. 6.2 Wider Peak District makes a valuable economic contribution to the wider LEP opportunities and has much to offer their respective economic growth priorities. The area presents a sound business and economic case for investment, the key features of this case are shown in the box below.

The wider Peak District offers significant growth potential arising from: Recent employment growth A productive area - £3.8bn GVA High business density and entrepreneurism A high value manufacturing base A qualified workforce Opportunity to capture (further) value from the landscape

6.3 The wider Peak District stands apart from other rural areas in terms of its economic growth potential offer . The economic sectoral structure offers significant opportunities linked to the manufacturing base (particularly high value manufacturing and food and drink, the later of which could substantially benefit from the development of the Peak District brand). Furthermore, the exceptional landscape, surrounded by conurbations, creates a unique offer for knowledge based and creative and cultural businesses. 6.4 Many of the wider Peak District’s strengths are well aligned with the D2N2, Sheffield City Region and Stoke-on-Trent and Staffordshire LEPs’ priorities. Summarised in the table overleaf, the three LEPs have several (often overlapping) priorities for economic growth. Each of the LEPs places a priority on business and employment growth, a highly skilled workforce and raising productivity levels, to which the wider Peak District is well placed to contribute.

19 Rural areas as engines of economic growth, Centre for Rural Economy 2013.

47 Growing the Rural Economy: Evidencing the Case for the Peak District

Wider Peak District’s contribution to LEP priorities D2N2 SCR S&S Business and employment growth








Highly skilled workforce








Contributing productivity levels








Significant contribution to priority sectors


N/A


New business start ups and survival rates N/A


N/A A significantly enhanced offer to inward investors N/A


N/A Peak District brand and landscape as a key asset N/A





Note: N/A denotes that this is not a priority for the LEP

6.5 The wider Peak District’s linkages to other LEPs - Manchester City Region in the north west and Cheshire and Warrington in the west – give it significant potential to contribute to their economic growth. The area’s offer in key sectors and supply chains, a skilled labour market and the Peak District brand, present opportunities for the two LEPs in their focus on increasing higher value employment opportunities. 6.6 There is definite potential and capacity within the wider Peak District’s economy for growth. The interdependencies between economic growth in the wider Peak District and the surrounding LEP areas are illustrated in the diagram below.

48 Growing the Rural Economy: Evidencing the Case for the Peak District

6.7 The government has recognised the importance of SMEs to a thriving economy, stating that these businesses stimulate innovation, act as a competitive spur to existing businesses to increase their productivity and make a disproportionately large contribution to job creation 20 . Given that the wider Peak District business base is characterised by a high proportion of small and medium sized businesses, this forms an important part of the area’s investment case. 6.8 The case for investing in the wider Peak District is further emphasised by the economic forecasts which predict that the area will struggle to capture economic growth, resulting in the widening of the current employment and GVA gap. This suggests that a level of intervention and investment would reap outcomes from the existing economic strengths, but without which the area would struggle to reach it’s potential. What Can Rural Investment Achieve? 6.9 Evidence from previous interventions shows that investment in rural areas is highly valuable. While it should be noted that return on investment data is difficult to compile in any consistent format and the return across interventions is likely to be influenced by a broad range of factors, the following points highlight the benefits of rural investment: • Investing in rural areas is more likely to generate a lasting and long term benefit: BIS’ evaluation of RDA impact explored the contribution of different strands of activity across each region. Twenty three evaluations of rural development activities were considered as part of the analysis of emda’s achievements. The analysis indicated that 87% of projects evaluated had generated long term benefits compared to 68% of urban regeneration initiatives; • Rural economies support wider growth: Research by the Centre for Rural Economy at the University of Newcastle suggests that rural economies perform an important function as incubators and catalysts for growth, for example by providing a skilled labour market and a market for products and services. Investing in rural areas and maintaining both the landscape and vibrant communities is key to benefitting both urban and rural areas; • Capturing benefits locally: Investment in rural areas often have lower levels of leakage as the benefits are captured locally. Job opportunities are usually captured by local residents and the resultant wages and business spending is often captured locally; • Wider benefits: Alongside employment and GVA growth, investing in rural areas has been shown to generate wider benefits. For example, the ex-post evaluation of LEADER highlights the wider contributions of the programme such as the development of bridging and bonding social capital which may ultimately lead to new employment and productivity gains. LEADER investment has also been shown to create and safeguard employment in rural communities (albeit on a relatively small scale). Similarly, early evidence from the Rural Growth Network pilots shows that investment can galvanise a whole community to promote entrepreneurship; • Lower levels of deadweight: The impact evaluation of LEADER 21 found that average deadweight (the proportion of total benefits which would have occurred anyway, even in the absence of the intervention) was between 13% and 18% depending on business sector. This compares to benchmark business support deadweight of 47%. This is a significant variation, and indicates that investment in rural communities does not replace alternative funding sources and therefore creates jobs and economic growth that would not occur without it.

20 SMEs: enablers of success and economic rationale for government intervention, BIS, 2013. 21 National Impact Assessment of LEADER, ekosgen 2011.

49 Growing the Rural Economy: Evidencing the Case for the Peak District

6.10 Although difficult to quantify, the evidence suggests that despite a higher than average unit cost per business assist, there is a sound rationale for investment in economic growth in rural areas. What Could Rural Investment Look Like? 6.11 The wider Peak District is well-placed to make an important contribution to the LEPs’ aims of raising productivity, competitiveness and levels of employment and the LEPs are ambitious in their aspirations, for example D2N2 plans to create 55,000 jobs over the next ten years. The existing business base has the potential to create sustainable jobs with the appropriate support, and the entrepreneurialism evident within the resident population can be harnessed to generate more start up activity and add to the competitiveness of the business base. However, investment in the wider Peak District can also offer wider benefits: • Sustainable businesses in the wider Peak District help to maintain and enhance the quality of the landscape, contributing to economic growth and creating a virtuous spiral in which the landscape asset is improved through economic growth rather than degraded, thereby increasing the attractiveness of the wider Peak District as a place to live, work and visit. • Support to create more, and better paid, local jobs enhances the vibrancy of local economies and communities, creating more sustainable places and supporting social inclusion (and at the same time increasing the attractiveness of the wider Peak District). 6.12 In order to harness this growth potential, it is important that the support that is available is appropriate to the needs of areas such as the wider Peak District. For example, the vast majority of businesses in the wider Peak District area are small in size, and do not have the capacity to absorb large amounts of grant or loan funding or do not have capacity to match fund large grants or meet high intervention rates. The minimum grant sizes which apply to some funding streams (e.g. RGF in Sheffield City Region) can make them inaccessible to many Peak District businesses. Support in the wider Peak District should also be suitably tailored to meet local business needs, which can in some instances mean intensive support. 6.13 The proposed designation of five wards within High Peak and four wards within Staffordshire Moorlands as assisted areas in the new EU Programme is an important opportunity for the wider Peak District. This would enable significant investment to be levered into the area allowing larger businesses and investors to access structural funding and Regional Growth Funding for the redevelopment of industrial legacy sites and economic growth. 6.14 Smaller levels of investment in a larger number of businesses can make an important contribution to the achievement of LEP objectives on employment growth and GVA increase, often in a more sustainable and less risky way than making only large investments in a small number of larger businesses. The ability to access smaller scale funding forms an important part of the investment support needed to achieve the economic growth potential of the area. 6.15 Previous successful approaches in the wider Peak District have involved one to one and one to many support, co-ordinated locally and involving business to business mentoring through networks (for example, the Environmental Quality Mark (EQM) and Peak District Foods). The LEADER programme across the wider Peak District area is another recent example of successful business support. In 2008 Derbyshire Economic Partnership was awarded RDPE funding provided by the EU and Defra totalling £2.4m. Across Staffordshire Moorlands, High Peak and Derbyshire Dales, 66 projects received funding to August 2012. A key achievement for the Peak District LEADER programme is the large amount of private sector funding it has managed to lever in support of its activities. The total volume of investment to August 2012 was £4.445 million with the majority of this investment coming from the private sector.

50 Growing the Rural Economy: Evidencing the Case for the Peak District

7 CONCLUSIONS

7.1 The wider Peak District area offers a unique environmental and economic asset – no other rural area of such outstanding beauty, offering such a high quality environment, is surrounded by so many major conurbations. The linkages and economic interdependencies between the wider Peak District and the surrounding cities and urban areas are crucial both to the success of the Peak District economy, and also to the economic success of the wider Local Enterprise Partnership areas. 7.2 It is the external linkages with the surrounding cities that will drive economic growth in the wider Peak District – the cities provide wider Peak District businesses and residents with customers, markets, suppliers, a range of services and job opportunities. 7.3 However, it is the internal linkages between businesses and people within the wider Peak District that will ensure that the benefits of growth are maximised within the Peak District, and harnessed for local people – through the development of supply chain linkages, the creation of job opportunities, and the recycling of expenditure within the local economy, sustaining vibrant market towns and local communities and supporting social inclusion. 7.4 The wider Peak District offers real economic opportunities . Home to a thriving business base, with employment growth in a number of key sectors in recent years, and a highly skilled workforce, the wider Peak District provides a number of the conditions for growth which can contribute to the Local Enterprise Partnerships’ objectives of more private sector jobs, and higher quality jobs. The key socio-economic facts which give an overview of the wider Peak District area are shown in the box overleaf.

51 Growing the Rural Economy: Evidencing the Case for the Peak District

Key Facts Economy and Business GVA: In 2010, the value of the output produced in the wider Peak District (GVA) was £3.8bn. Employment: There are 93,300 workplace employees in the wider Peak District. Sectors: The wider Peak District has a diverse economic structure with manufacturing, the public sector, retail and hospitality all major sectors of employment; there are a number of important large or nationally based employers including JCB, Nestle, Swizzels Matlow, JD Williams, Lafarge Tarmac, Adams Foods and Eco-Bat Technologies. Businesses: There are 10,900 businesses in the wider Peak District area. The vast majority employ fewer than 10 people, and survival rates are high. People and Place Residents: There are over 259,000 residents in the wider Peak District, 162,900 of whom are of working age. Of these, 123,300 are employed (over 30,000 of whom work outside the wider Peak District area). Higher level skills and occupations: 31% of residents have a degree-level qualification, and 40% are employed in managerial, professional and associate professional occupations. However, 14% of residents (nearly 23,000 people) hold no qualifications, 18% have Level 2 qualifications and 15% have Level 3 qualifications. Contrast between resident and workplace earnings : Workplace earnings in the wider Peak District are lower than average, whilst resident earnings match the national average. Quality of life: The area has a very high quality of life offer linked to low levels of multiple deprivation and an exceptional landscape; however there are pockets of deprivation and unaffordable housing and limited employment opportunities lead to an outward migration of young people.

7.5 With appropriate intervention and support, this economic potential may be realised . Economic forecasts suggest that the wider Peak District economy may not keep pace with the growth expected in the surrounding areas over the next ten years or take advantage of wider UK growth opportunities unless there is appropriate financial intervention. Access to appropriate support – for businesses; for individuals; and for places – will be needed if the wider Peak District is to achieve its economic potential in the coming years. 7.6 The wider Peak District also enhances the economic ‘offer’ of each of the LEPs : • providing an exceptional quality of life (helping to attract both highly skilled workers to the LEP labour markets and inward investor companies to the LEP areas); • providing an opportunity for leisure and recreation; • providing the Peak District ‘brand’, which can be utilised by the LEPs as part of their overall marketing strategy; • Providing homes in safe and attractive communities for managers and professionals (both residents and inward investors). 7.7 It is important that the economic benefits which are generated through this offer are harnessed for local residents and businesses as well as benefiting the wider LEP areas. Again, appropriate support will be required to ensure that this is achieved.

52 Growing the Rural Economy: Evidencing the Case for the Peak District

APPENDIX A: COMPARATOR AREAS

Comparator area summary Population Employees Area National Park Local authorities No. No. Wider Richmondshire, Craven 1 Yorkshire Yorkshire Dales 268,000 114,300 and Harrogate Dales Wider West Devon. South Hams 2 Dartmoor 262,500 89,300 Dartmoor and Teignbridge Derbyshire Dales, High Wider Peak Peak District Peak, Staffordshire 259,700 93,300 District Moorlands Wider Lake Allerdale, Eden and South 3 Lake District 252,500 105,100 District Lakeland Wider North Ryedale, Scarborough, 4 North York Moors 250,400 96,000 York Moors Hambleton Source: Mid-year Population Estimates, Business Register and Employment Survey. *ekosgen estimate based on pre-2009 authority boundaries.

53 Growing the Rural Economy: Evidencing the Case for the Peak District

APPENDIX B: SECTOR DEFINITIONS

D2N2 Priority Sector Definitions Visitor Economy 55 : Accommodation 56 : Food and beverage service activities 79 : Travel agency, tour operator and other reservation service and related activities 90 : Creative, arts and entertainment activities 91 : Libraries, archives, museums and other cultural activities 93 : Sports activities and amusement and recreation activities Construction F : Construction Advanced Manufacturing 19 : Manufacture of coke and refined petroleum products 20 : Manufacture of chemicals and chemical products 22 : Manufacture of rubber and plastic products 23 : Manufacture of other non-metallic mineral products 24 : Manufacture of basic metals 25 : Manufacture of fabricated metal products, except machinery and equipment 26 : Manufacture of computer, electronic and optical products 27 : Manufacture of electrical equipment 28 : Manufacture of machinery and equipment n.e.c. Food and Drink 10 : Manufacture of food products 11 : Manufacture of beverages Medical and Bioscience 21 : Manufacture of basic pharmaceutical products and pharmaceutical preparations 325 : Manufacture of medical and dental instruments and supplies 721 : Research and experimental development on natural sciences and engineering Transport Manufacturing 29 : Manufacture of motor vehicles, trailers and semi-trailers 30 : Manufacture of other transport equipment Low Carbon Economy Not defined in SIC terms

54 Growing the Rural Economy: Evidencing the Case for the Peak District

Sheffield City Region Priority Sector Definitions Retail 47 : Retail trade, except of motor vehicles and motorcycles Visitor Economy 55 : Accommodation 56 : Food and beverage service activities 799 : Other reservation service and related activities 91 : Libraries, archives, museums and other cultural activities 931 : Sports activities 932 : Amusement and recreation activities Financial Professional and Business Services 64 : Financial service activities, except insurance and pension funding 66 : Activities auxiliary to financial services and insurance activities 78 : Employment activities 82 : Office administrative, office support and other business support activities 691 : Legal activities 692 : Accounting, bookkeeping and auditing activities; tax consultancy 701 : Activities of head offices 702 : Management consultancy activities 749 : Other professional, scientific and technical activities n.e.c. 941 : Activities of business, employers and professional membership organisations Construction F : Construction Logistics 492 : Freight rail transport 494 : Freight transport by road and removal services 502 : Sea and coastal freight water transport 504 : Inland freight water transport 512 : Freight air transport and space transport 521 : Warehousing and storage 522 : Support activities for transportation (25%) 531 : Postal activities under universal service obligation 532 : Other postal and courier activities Advanced Manufacturing 20 : Manufacture of chemicals and chemical products 27 : Manufacture of electrical equipment 28 : Manufacture of machinery and equipment n.e.c. 29 : Manufacture of motor vehicles, trailers and semi-trailers 254 : Manufacture of weapons and ammunition 302 : Manufacture of railway locomotives and rolling stock 303 : Manufacture of air and spacecraft and related machinery 304 : Manufacture of military fighting vehicles 309 : Manufacture of transport equipment n.e.c. 7112 : Engineering activities and related technical consultancy 7219 : Other research and experimental development on natural sciences and engineerin g

55 Growing the Rural Economy: Evidencing the Case for the Peak District

Healthcare Technologies 21 : Manufacture of basic pharmaceutical products and pharmaceutical preparations 266 : Manufacture of irradiation, electromedical and electrotherapeutic equipment 267 : Manufacture of optical instruments and photographic equipment 268 : Manufacture of magnetic and optical media 325 : Manufacture of medical and dental instruments and supplies 861 : Hospital activities (1%) 7211 : Research and experimental development on biotechnology Low Carbon 351 : Electric power generation, transmission and distribution 352 : Manufacture of gas; distribution of gaseous fuels through mains 360 : Water collection, treatment and supply 381 : Waste collection 382 : Waste treatment and disposal 383 : Materials recovery 390 : Remediation activities and other waste management services 712 : Technical testing and analysis 749 : Other professional, scientific and technical activities n.e.c. (20%) 7219 : Other research and experimental development on natural sciences and engineering (50%) 4677 : Wholesale of waste and scrap Creative and Digital Industries 181 : Printing and service activities related to printing 182 : Reproduction of recorded media 261 : Manufacture of electronic components and boards 262 : Manufacture of computers and peripheral equipment 263 : Manufacture of communication equipment 264 : Manufacture of consumer electronics 265 : Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks 321 : Manufacture of jewellery, bijouterie and related articles 322 : Manufacture of musical instruments 631 : Data processing, hosting and related activities; web portals 639 : Other information service activities 731 : Advertising 732 : Market research and public opinion polling 741 : Specialised design activities 742 : Photographic activities 743 : Translation and interpretation activities 749 : Other professional, scientific and technical activities n.e.c. (40%) 900 : Creative, arts and entertainment activities 951 : Repair of computers and communication equipment 952 : Repair of personal and household goods 61 : Telecommunications 62 : Computer programming, consultancy and related activities 7111 : Architectural activities 7220 : Research and experimental development on social sciences and humanities

56 Growing the Rural Economy: Evidencing the Case for the Peak District

57 Growing the Rural Economy: Evidencing the Case for the Peak District

Stoke-on-Trent and Staffordshire Priority Sector Definitions Manufacturing C : Manufacturing Retail G : Retail Education P : Education Health Q : Health Logistics 4910 : Passenger rail transport, interurban 4920 : Freight rail transport 4931 : Urban and suburban passenger land transport 4932 : Taxi operation 4939 : Other passenger land transport n.e.c. 4941 : Freight transport by road 4942 : Removal services 4950 : Transport via pipeline 5010 : Sea and coastal passenger water transport 5020 : Sea and coastal freight water transport 5030 : Inland passenger water transport 5040 : Inland freight water transport 5110 : Passenger air transport 5121 : Freight air transport 5122 : Space transport 5210 : Warehousing and storage 5221 : Service activities incidental to land transportation 5222 : Service activities incidental to water transportation 5223 : Service activities incidental to air transportation 5224 : Cargo handling 5229 : Other transportation support activities 5310 : Postal activities under universal service obligation 5320 : Other postal and courier activities Visitor Economy 5030 : Inland passenger water transport 5510 : Hotels and similar accommodation 5520 : Holiday and other short stay accommodation 5530 : Camping grounds, recreational vehicle parks and trailer parks 5590 : Other accommodation 5610 : Restaurants and mobile food service activities 5630 : Beverage serving activities 5914 : Motion picture projection activities 7721 : Renting and leasing of recreational and sports goods 7911 : Travel agency activities 7912 : Tour operator activities 7990 : Other reservation service and related activities

58 Growing the Rural Economy: Evidencing the Case for the Peak District

Stoke-on-Trent and Staffordshire Priority Sector Definitions 8551 : Sports and recreation education 8552 : Cultural education 9001 : Performing arts 9002 : Support activities to performing arts 9003 : Artistic creation 9004 : Operation of arts facilities 9101 : Library and archive activities 9102 : Museum activities 9103 : Operation of historical sites and buildings and similar visitor attractions 9104 : Botanical and zoological gardens and nature reserve activities 9200 : Gambling and betting activities 9311 : Operation of sports facilities 9312 : Activities of sport clubs 9313 : Fitness facilities 9319 : Other sports activities 9321 : Activities of amusement parks and theme parks 9329 : Other amusement and recreation activities 9602 : Hairdressing and other beauty treatment 9604 : Physical well-being activities 9604 : Physical well-being activities 9609 : Other personal service activities n.e.c. Building Technologies 0811 : Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate 0812 : Operation of gravel and sand pits; mining of clays and kaolin 1610 : Sawmilling and planing of wood 1621 : Manufacture of veneer sheets and wood-based panels 1622 : Manufacture of assembled parquet floors 1623 : Manufacture of other builders' carpentry and joinery 2223 : Manufacture of builders
ware of plastic 2320 : Manufacture of refractory products 2331 : Manufacture of ceramic tiles and flags 2332 : Manufacture of bricks, tiles and construction products, in baked clay 2342 : Manufacture of ceramic sanitary fixtures 2351 : Manufacture of cement 2352 : Manufacture of lime and plaster 2361 : Manufacture of concrete products for construction purposes 2362 : Manufacture of plaster products for construction purposes 2363 : Manufacture of ready-mixed concrete 2364 : Manufacture of mortars 2365 : Manufacture of fibre cement 2369 : Manufacture of other articles of concrete, plaster and cement 2370 : Cutting, shaping and finishing of stone 2391 : Production of abrasive products 2420 : Manufacture of tubes, pipes, hollow profiles and related fittings, of steel 2432 : Cold rolling of narrow strip 2433 : Cold forming or folding 2511 : Manufacture of metal structures and parts of structures

59 Growing the Rural Economy: Evidencing the Case for the Peak District

Stoke-on-Trent and Staffordshire Priority Sector Definitions 2512 : Manufacture of doors and windows of metal 2521 : Manufacture of central heating radiators and boilers 2529 : Manufacture of other tanks, reservoirs and containers of metal 2562 : Machining 2572 : Manufacture of locks and hinges 2593 : Manufacture of wire products, chain and springs 2594 : Manufacture of fasteners and screw machine products 2720 : Manufacture of batteries and accumulators 2825 : Manufacture of non-domestic cooling and ventilation equipment 2892 : Manufacture of machinery for mining, quarrying and construction 3312 : Repair of machinery 3320 : Installation of industrial machinery and equipment 4110 : Development of building projects 4120 : Construction of residential and non-residential buildings 4211 : Construction of roads and motorways 4212 : Construction of railways and underground railways 4213 : Construction of bridges and tunnels 4221 : Construction of utility projects for fluids 4222 : Construction of utility projects for electricity and telecommunications 4291 : Construction of water projects 4299 : Construction of other civil engineering projects n.e.c. 4311 : Demolition 4312 : Site preparation 4313 : Test drilling and boring 4321 : Electrical installation 4322 : Plumbing, heat and air-conditioning installation 4329 : Other construction installation 4331 : Plastering 4332 : Joinery installation 4333 : Floor and wall covering 4334 : Painting and glazing 4339 : Other building completion and finishing 4391 : Roofing activities 4399 : Other specialised construction activities n.e.c. 4613 : Agents involved in the sale of timber and building materials 4663 : Wholesale of mining, construction and civil engineering machinery 4673 : Wholesale of wood, construction materials and sanitary equipment 4674 : Wholesale of hardware, plumbing and heating equipment and supplies 7732 : Renting and leasing of construction and civil engineering machinery and equipment 7739 : Renting and leasing of other machinery, equipment and tangible goods n.e.c. Financial Professional and Business Services 64 : Financial service activities, except insurance and pension funding 66 : Activities auxiliary to financial services and insurance activities 78 : Employment activities 82 : Office administrative, office support and other business support activities 691 : Legal activities 692 : Accounting, bookkeeping and auditing activities; tax consultancy

60 Growing the Rural Economy: Evidencing the Case for the Peak District

Stoke-on-Trent and Staffordshire Priority Sector Definitions 701 : Activities of head offices 702 : Management consultancy activities 749 : Other professional, scientific and technical activities n.e.c. 941 : Activities of business, employers and professional membership organisations Advanced Manufacturing 20 : Manufacture of chemicals and chemical products 27 : Manufacture of electrical equipment 28 : Manufacture of machinery and equipment n.e.c. 29 : Manufacture of motor vehicles, trailers and semi-trailers 254 : Manufacture of weapons and ammunition 302 : Manufacture of railway locomotives and rolling stock 303 : Manufacture of air and spacecraft and related machinery 304 : Manufacture of military fighting vehicles 309 : Manufacture of transport equipment n.e.c. 7112 : Engineering activities and related technical consultancy 7219 : Other research and experimental development on natural sciences and engineering Medical Technology 2110 : Manufacture of basic pharmaceutical products 2120 : Manufacture of pharmaceutical preparations 2660 : Manufacture of irradiation, electromedical and electrotherapeutic equipment 2670 : Manufacture of optical instruments and photographic equipment 3250 : Manufacture of medical and dental instruments and supplies 3313 : Repair of electronic and optical equipment 4646 : Wholesale of pharmaceutical goods 7211 : Research and experimental development on biotechnology Energy Generation 351 : Electric power generation, transmission and distribution 352 : Manufacture of gas; distribution of gaseous fuels through mains 360 : Water collection, treatment and supply 381 : Waste collection 382 : Waste treatment and disposal 383 : Materials recovery 390 : Remediation activities and other waste management services 712 : Technical testing and analysis 749 : Other professional, scientific and technical activities n.e.c. (20%) 7219 : Other research and experimental development on natural sciences and engineering (50%) 4677 : Wholesale of waste and scrap Creative and Digital Industries 181 : Printing and service activities related to printing 182 : Reproduction of recorded media 261 : Manufacture of electronic components and boards 262 : Manufacture of computers and peripheral equipment 263 : Manufacture of communication equipment 264 : Manufacture of consumer electronics 265 : Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks 321 : Manufacture of jewellery, bijouterie and related articles

61 Growing the Rural Economy: Evidencing the Case for the Peak District

Stoke-on-Trent and Staffordshire Priority Sector Definitions 322 : Manufacture of musical instruments 631 : Data processing, hosting and related activities; web portals 639 : Other information service activities 731 : Advertising 732 : Market research and public opinion polling 741 : Specialised design activities 742 : Photographic activities 743 : Translation and interpretation activities 749 : Other professional, scientific and technical activities n.e.c. (40%) 900 : Creative, arts and entertainment activities 951 : Repair of computers and communication equipment 952 : Repair of personal and household goods 61 : Telecommunications 62 : Computer programming, consultancy and related activities 7111 : Architectural activities 7220 : Research and experimental development on social sciences and humanities Agri-tech 01 : Crop and animal production, hunting and related service activities 2015 : Manufacture of fertilisers and nitrogen compounds 032 : Aquaculture 202 : Manufacture of pesticides and other agrochemical products 283 : Manufacture of agricultural and forestry machinery Applied Materials 25 : Manufacture of fabricated metal products, except machinery and equipment 26 : Manufacture of computer, electronic and optical products 27 : Manufacture of electrical equipment 28 : Manufacture of machinery and equipment n.e.c. 29 : Manufacture of motor vehicles, trailers and semi-trailers 30 : Manufacture of other transport equipment

Knowledge Economy Sector Definitions 303 : Manufacture of air and spacecraft and related machinery 325 : Manufacture of medical and dental instruments and supplies 20 : Manufacture of chemicals and chemical products 21 : Manufacture of basic pharmaceutical products and pharmaceutical preparations 26 : Manufacture of computer, electronic and optical products 27 : Manufacture of electrical equipment 28 : Manufacture of machinery and equipment n.e.c. 29 : Manufacture of motor vehicles, trailers and semi-trailers 30 : Manufacture of other transport equipment 50 : Water transport 51 : Air transport 58 : Publishing activities 59 : Motion picture, video and television programme production, sound recording and music publishing activities 60 : Programming and broadcasting activities

62 Growing the Rural Economy: Evidencing the Case for the Peak District

61 : Telecommunications 62 : Computer programming, consultancy and related activities 63 : Information service activities 64 : Financial service activities, except insurance and pension funding 65 : Insurance, reinsurance and pension funding, except compulsory social security 66 : Activities auxiliary to financial services and insurance activities 69 : Legal and accounting activities 70 : Activities of head offices; management consultancy activities 71 : Architectural and engineering activities; technical testing and analysis 72 : Scientific research and development 73 : Advertising and market research 74 : Other professional, scientific and technical activities 75 : Veterinary activities 78 : Employment activities 80 : Security and investigation activities 84 : Public administration and defence; compulsory social security 85 : Education 86 : Human health activities 87 : Residential care activities 88 : Social work activities without accommodation 90 : Creative, arts and entertainment activities 91 : Libraries, archives, museums and other cultural activities 92 : Gambling and betting activities 93 : Sports activities and amusement and recreation activities

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