Wigan Local Development Framework Economy and Employment

Evidence Review

June 2009

Wigan Council

Environmental Services

Borough Profile: Core Strategy

Contents

Title Table

Employment

A International

Lisbon Strategy: Towards a Europe of Innovation and Knowledge A1

Cohesion policy in support of growth and jobs A2

B National

Planning for Economic Development B1

Planning for Economic Development NLP Report B2

Employment Land Reviews: Guidance Note B3

Planning for Sustainable Rural Economic Development B4

Developing Entrepreneurship for the Creative Industries B5 The Role of Higher and Further Education Good Practice Guide for Tourism B6

Tomorrow's Tourism Today B7

Measuring Sustainable Tourism at the Local Level B8

The National Statistics Review of Tourism Statistics B9

Property Snapshot – UK Economy & Property Market B10

Planning for Economic Development: A Scoping Study for PPG4 B11

Recession to Recovery – The Local Dimension B12

C Regional

Moving Forward - The Northern Way C1

North West Regional Economic Strategy C2

Title Table

The North West Employment Land Study C3

North West Ports Economic Trends and Land Use Study C4

Ocean Gateway – A Vision for the North West by Peel Holdings (Draft C5 Prospectus)

North West Utilities Infrastructure Study C6

D Sub regional

Greater Manchester Economic Strategy 2004/05 – 2006/07 D1

Greater Manchester City Region Development Programme D2

Greater Manchester Skills Analysis and Priorities D3

Demand for Employment Land in Greater Manchester Study D4

The Manchester City Region Knowledge Economy Report D5

NWRA Mersey Belt Study Policy Statement D6

Liverpool City Region Strategic Proposals D7

Liverpool City Region Development Programme Report D8

Sub Regional Economic Strategy for Warrington and Cheshire (CWEA D9 2004) Prosperous Places: Taking forward the Review of Sub National D10 Economic Development and Regeneration

Economic Baseline 2008 Unit 1: Economic Context D11

Economic Baseline 2008: Unit 2: Business Base D12

Economic Baseline 2008: Unit 3: People D13

The Economic Impact of EU and UK Climate Change Legislation on D14 Manchester City Region and the North West

Greater Manchester Forecasting Model D15

Unemployment Monitor D16

Manchester Skills and Employment Strategic Framework (Draft) D17

Manchester Independent Economic Review – Wigan Brief D18

Manchester Independent Economic Review – Reviewers Report D19

Title Table

E Local

Wigan Economic Development Plan E1

A Fresh Future For Wigan – A Marketing Strategy for Wigan’s New Economic E2 Development Zone (B2B Final Report)

Wigan’s Economic Development Update July 2007 E3

Migrant Workers Report E4

Wigan Tourism Strategy 2004 - 2009 (Draft) E5

Wigan Employment Land Review E6

Strategic Masterplan for Wigan South Central E7

What Makes Wigan Work? : The Worklessness Strategy for Wigan E8

Wigan B2B Research Information – How are we doing? A Final Review E9 and Evaluation

Wigan Coalfields Research E10

Wigan Borough Lifelong Learning Strategy 2008-2013 (draft) E11

F General Statistics

Annual Business Inquiry 2005 F1

2006 Annual Survey of Hours and Earnings F2

Business Closure rates F3

New Business Survival Rates F4

New Business Formation F5

Gross Added Value per head F6

Incapacity benefits claimants per 000 16+ population F7

Long term unemployment as a proportion of all unemployment (12 F8 months+)

Unemployment rate F9

Which parts of Great Britain are vulnerable to the credit crunch? F10

List of Changes since Issues & Options Table

New Reviews

Property Snapshot – UK Economy & Property Market B10

Recession to Recovery – The Local Dimension B12

Ocean Gateway – A Vision for the North West by Peel Holdings (Draft C5 Prospectus)

North West Utilities Infrastructure Study C6

Prosperous Places: Taking forward the Review of Sub National D10 Economic Development and Regeneration

Economic Baseline 2008 Unit 1: Economic Context D11

Economic Baseline 2008: Unit 2: Business Base D12

Economic Baseline 2008: Unit 3: People D13

The Economic Impact of EU and UK Climate Change Legislation on D14 Manchester City Region and the North West

Greater Manchester Forecasting Model D15

Unemployment Monitor D16

Manchester Skills and Employment Strategic Framework (Draft) D17

Manchester Independent Economic Review – Wigan Brief D18

Manchester Independent Economic Review – Reviewers Report D19

Wigan Employment Land Review E6

Strategic Masterplan for Wigan South Central E7

What Makes Wigan Work? : The Worklessness Strategy for Wigan E8

Wigan B2B Research Information – How are we doing? A Final Review E9 and Evaluation

Wigan Coalfields Research E10

Wigan Borough Lifelong Learning Strategy 2008-2013 (draft) E11

Which parts of Great Britain are vulnerable to the credit crunch? F10

Other Relevant Evidence

Title Topic Paper National & Regional Planning Policy Guidance 4 Planning Policy National & Regional Planning for Economic Development Planning Policy Employment Land Reviews: Guidance National & Regional Note Planning Policy Planning Policy Statement 1: Sustainable National & Regional Development Planning Policy National & Regional Planning Policy Statement 6: Town Centres Planning Policy National & Regional Planning Policy Statement 7: Rural Areas Planning Policy National & Regional Planning Policy Statement 13: Transport Planning Policy Planning Policy Statement 25: National & Regional Development and Flood Risk Planning Policy Regional Planning Guidance for the North West National & Regional (RPG 13) - Adopted March 2003 Planning Policy Draft Regional Spatial Strategy for the North National & Regional West Planning Policy Draft Regional Spatial Strategy for the North National & Regional West Panel Report Planning Policy Open Space, Play, Children Act 2004 Sport and Recreation Spatial Planning for Sport and Active Open Space, Play, Recreation: Guidance on Sport England’s Sport and Recreation Aspirations and Experience North West On The Move: The North West Open Space, Play, Plan for Sport and Physical Activity 2004- Sport and Recreation 2008 Wigan Children and Young People’s Plan Open Space, Play, 2006-2009 Sport and Recreation Open Space, Play, Taking SHAPE for the future: 2006-2012 Sport and Recreation Wigan Sustainable Employment, Regeneration and Transport Corridor: Accessibility Alternative Options Study Making the Connexions: Final Report on Accessibility Transport and Social Exclusion

The Transport Innovation Fund Accessibility

The Eddington Transport Study: The Case Accessibility for Action Parking Forum Position Paper 7 – Parking and its Role in Workplace and School Accessibility Travel Planning

Title Topic Paper

GB Freight Report 2006 Accessibility

The Future of Air Transport Accessibility

North West Regional Planning Assessment Accessibility for the Railway

Northern Rail Cycling Strategy Accessibility

North West Regional Freight Strategy Accessibility

Greater Manchester Local Transport Plan 2 Accessibility

Greater Manchester Local Transport Plan 2 Accessibility Accessibility Strategy Greater Manchester Integrated Transport Accessibility Strategy

Corridor Partnership 3 (Draft) Report Accessibility

Greater Manchester Local Transport Plan 2 Accessibility Bus Strategy Principles of the Greater Manchester Passenger Transport Executive Park and Accessibility Ride Strategy Greater Manchester Freight Strategy Accessibility

Manchester Airport Draft Master Plan to Accessibility 2030 A New Deal for Trunk Roads in England: Accessibility Understanding the New Approach National Planning Good Practice Guide for Tourism Policy

Wigan Borough Retail Study Retail and Centres

Wigan Pier Quarter Strategy Retail and Centres Cities North West (Institute for Public Policy Research and North West Development Retail and Centres Agency) Rate reform boost for small businesses and town centres (Department for Communities Retail and Centres and Local Government) ‘Planning White Paper Background (Royal Retail and Centres Town Planning Institute Press release) Barker Review of Land Use Planning, Final Retail and Centres Report - Recommendations Securing the Future: The UK Sustainable Environment, Natural Development Strategy Resources and Pollution An Environmental Vision Environment, Natural Resources and Pollution Environmental Quality in Spatial Planning Environment, Natural Resources and Pollution

Title Topic Paper Local Agenda 21 Environment, Natural Resources and Pollution EU Water Framework Directive (2000/60/EC) Environment, Natural Resources and Pollution Water for life and livelihoods – A framework for Environment, Natural river basin planning in England and Wales Resources and Pollution (Environment Agency, 2006) Waterways for Tomorrow Environment, Natural Resources and Pollution Making Space for Water Environment, Natural Resources and Pollution River Douglas Catchment Flood Management Environment, Natural Plan Scoping Report Resources and Pollution Mersey Estuary Catchment Flood Management Environment, Natural Plan Resources and Pollution Greater Manchester Strategic Flood Risk Environment, Natural Assessment Resources and Pollution Sustainable Urban Drainage Systems: promoting Environment, Natural good practice Resources and Pollution The SUDS Manual Environment, Natural Resources and Pollution Planning Policy Statement 25 Appendix F: Environment, Natural Managing Surface Water Resources and Pollution North West Green Infrastructure Guide Environment, Natural Resources and Pollution Regenerating the English Coalfields: Interim Environment, Natural evaluation of the Coalfields regeneration Resources and Pollution programmes Guidance for the Safe Development of Housing Environment, Natural on Land Affected by Contamination Resources and Pollution Wigan Derelict Land Survey 05/06 Environment, Natural Resources and Pollution Contaminated Land Inspection Strategy Environment, Natural Resources and Pollution Draft Report On The Investigation Into Minerals Environment, Natural Resources in Greater Manchester Resources and Pollution Environment, Natural ODPM Circular 05/2005 Resources and Pollution

Air Quality Strategy for England Scotland Wales Environment, Natural and Northern Ireland, 2000 and 2003 Addendum Resources and Pollution

Development Control: Planning for Air Quality Environment, Natural Resources and Pollution Greater Manchester LTP2 Air Quality Strategy Environment, Natural and Action Plan Resources and Pollution

International

Table A1 Title Lisbon Strategy: Towards a Europe of Innovation and Knowledge Proponent body European Union / The Lisbon Special European Council Status (e.g. statutory, non-statutory) Statutory Date produced March 2000 Why is it relevant to the Local Development Framework? The aim of the Lisbon Special European Council of 23-24 March 2000 was to invigorate the Community's policies, against the backdrop of the most promising economic climate for a generation in the Member States.

Two recent developments are changing the economy and society. Globalisation means that Europe must set the pace in all the sectors where competition is intensifying. The sudden arrival and growing importance of information and communication technologies (ICT) in professional and private life call for a radical overhaul of the education system in Europe and guaranteed lifelong learning opportunities. In 2005 the strategy was re-launched to ensure the key objectives are met. Key messages, requirements, objectives The Lisbon European Council therefore endeavoured to issue guidelines for exploiting the potential offered by the new economy, in order to eradicate the scourge of unemployment, amongst other aims. As the Cardiff, Cologne and Luxembourg processes together provide a range of suitable instruments, no new processes were considered necessary in Lisbon. On the contrary, it is through the strategy of adapting and strengthening the existing processes that the potential for economic growth, job creation and social cohesion can best develop - for example by providing the European Union with reliable data to compare between the Member States, so that appropriate measures can be taken. Opportunities The technological challenge Information and communication technologies (ICT) represent both a major challenge and a significant opportunity for job creation. The Commission intends to improve the quality and quantity of jobs in the European Union in the short and medium term through the impact of ICT. In a more general context, it is important to make sure that this information society is accessible to all, regardless of social category, race, religion or gender. This digital economy, with the potential to improve quality of life, is an important factor in improving competitiveness and in job creation. Even so, it is vital to ensure that this economic and social transition - however fast it occurs - does not leave certain categories of citizen behind and that the fruits of growth are distributed equitably. This is the aim of initiatives such as the Commission's " eEurope " initiative, which also puts the emphasis on increasing economic productivity and improving the quality and accessibility of services for the benefit of all European citizens, based on a fast infrastructure (broadband) with secure Internet access available to as many people as possible. A knowledge-based society If people arriving on the labour market are to participate in the knowledge economy, their level of education must be sufficiently high. The inverse relationship between level of education and rate of unemployment is becoming more pronounced. Europe must raise the educational level of school-leavers. Teaching and research should be better coordinated at European level. This can be achieved by creating networks of national and joint research programmes. Making Europe more competitive If Europe is to become the world's most competitive economic area, it is also important to improve research conditions and create a more favourable climate for entrepreneurship, in particular by reducing the administrative costs associated with bureaucracy. Integration of the financial markets and coordination of macroeconomic policies The potential of the euro must provide an opportunity to integrate the European financial

markets. As emphasised in the Commission communication " Risk capital: A key to job creation in the European Union ", the risk capital markets are vital for the development of SMEs. The conclusions of the European Council demonstrate the need for a strict timetable so that a plan of action for the financial markets can be in operation by 2005. With regard to economic policies, the priority is still macroeconomic stability, as defined in the Stability and Growth Pact , integrating the objectives of growth and employment. The transition to a knowledge economy calls for structural policies to play a more important role than before. Modernising and strengthening the European social model In its contribution to the preparations for the Lisbon European Council, the Commission emphasised that the European social model includes resources to support the transition to a knowledge economy. Social integration will be promoted by encouraging work, guaranteeing viable pension schemes - at a time when the European population is described as "ageing" - and guaranteeing social stability. Issues / Constraints Due to a favourable economic outlook, full employment seemed tangible in 2000. However, owing to the economic slowdown and structural problems in the Member States, the European Union is still lagging behind as regards this objective. The weaknesses of the European labour market continue to create difficulties: • the insufficient number of jobs being created in the services sector, even though this is by far the most important in terms of employment; • significant regional imbalances, particularly since enlargement in 2004; • a high rate of long-term unemployment; • labour supply does not match demand, which is quite often the case in periods of economic recovery; • a shortage of women participating in the labour market; • European demographic trends, in particular an ageing population. Taking stock five years after the launch of the Lisbon strategy , the Commission found the results to date disappointing with the European economy has failing to deliver the expected performance in terms of growth, productivity and employment. Job creation has slowed and there is still insufficient investment in research and development. The Commission based its findings on the November 2004 report by the high-level group entitled "Rising to the challenge: the Lisbon strategy for growth and employment". This evaluation of progress achieved with the Lisbon strategy is extremely critical: lack of political resolve and inability to complete the internal market in goods and establish that for services. The report is also critical of a top-heavy agenda, poor coordination and irreconcilable priorities. The Commission has decided to focus attention on the action to be taken rather than targets to be attained. The date of 2010 and the objectives concerning the various rates of employment are thus no longer put forward as priorities. This Communication fits into this context as a signal for relaunching policy priorities, particularly with regard to growth and employment. The Member States, in order to achieve this progress, must focus their efforts on the reforms agreed as part of the strategy and pursue stability-orientated macroeconomic policies and sound budgetary policies. A new partnership for growth and employment is essential in order to give a fresh start to the Lisbon strategy. Accordingly, in order to stimulate growth, the Commission intends to:

• make the European Union (EU) more attractive to investors and workers by building up the internal market, improving the European and national regulations, by ensuring open and competitive markets within and outside Europe, and lastly by extending and improving European infrastructures ;

• encourage knowledge and innovation, by promoting more investment in research and development, by facilitating innovation, the take-up of information and communication technologies (ICT) and the sustainable use of resources, and by helping to create a strong European industrial base. How could the Local Development Framework respond For the Core Strategy to identify Wigan borough’s role in achieving macroeconomic growth through implementation of the stability orientated macroeconomic policies and growth of a knowledge economy in the borough.

Implications for the sustainability appraisal Provides background information.

Cross references (General) Cross Reference (Topic Reviews) Housing Retail and Centres

Table A2 Title Cohesion policy in support of growth and jobs Proponent body Commission of the European Communities Status (e.g. statutory, non-statutory) Non-statutory Date produced 5th July 2005 Why is it relevant to the Local Development Framework? At the March 2005 European Council, the Lisbon strategy was renewed with the adoption of the partnership for growth and jobs. In line with this strategy, cohesion policy must be focused on promoting sustainable growth, competitiveness and jobs. The strategic guidelines identify those areas in which cohesion policy can contribute to the achievement of other Community priorities, including those deriving from the Lisbon strategy. They are also in line with the integrated guidelines for growth and jobs . Key messages, requirements, objectives The Community Strategic Guidelines contain the principles and priorities of cohesion policy and suggest ways the European regions can take full advantage of the € 308 billion that has been made available for national and regional aid programmes over the next seven years. National authorities will use the guidelines as the basis for drafting their national strategic priorities and planning for 2007-2013, the so called National Strategic Reference Frameworks (NSRFs). According to the guidelines and in line with the renewed Lisbon strategy, programmes co-financed through the cohesion policy should seek to target resources on the following three priorities: • improving the attractiveness of Member States, regions and cities by improving accessibility, ensuring adequate quality and level of services, and preserving their environmental potential;

• encouraging innovation, entrepreneurship and the growth of the knowledge economy by research and innovation capacities, including new information and communication technologies; and

• creating more and better jobs by attracting more people into employment entrepreneurial activity, improving adaptability of workers and enterprises and increasing investment in human capital. Opportunities Investment and jobs The Communication lists three groups of measures for making Europe and its regions a more attractive place to invest and work. First, transport infrastructures must be expanded and improved. With this in mind, the Member States must give priority to the 30 projects of European interest by investing in secondary connections. In addition, better access to rail infrastructure and improved connectivity of landlocked territories to the Trans-European network (TEN-T) must be encouraged. The same applies to the environmental dimension of transport networks and the development of short-sea shipping. Knowledge and innovation The aims of growth and job creation will require a structural shift in the economy towards knowledge-based activities. To achieve this, it will be necessary to: • increase and improve investment in research and technological development (RTD), especially in the private sector (including through public-private partnerships (PPPs), small and medium-sized enterprises (SMEs) and cooperation among companies); • facilitate innovation and encourage the creation of companies with the objective of promoting a climate which promotes the production, dissemination and use of new knowledge (entrepreneurship); • promote the information society and the dissemination of information and communication technology (ICT) equipment to companies and households; and • improve access to finance by creating financial engineering mechanisms, while supporting financial instruments other than subsidies.

Jobs To create more and better jobs, cohesion policy must aim to address the challenges highlighted in the European employment strategy. In particular, more people must be attracted into and retained in employment through the modernisation of social protection systems. In addition, worker adaptability and labour market flexibility must be increased by investing in human capital through improvements in education and skills. In line with these priorities, the administrative capacity of public administrations and services must be increased and a healthy labour force maintained. Territorial cohesion and cooperation Cohesion policy must be adapted to the particular needs and characteristics of individual regions in terms of the problems and opportunities which derive from their geographical situation. The territorial dimension includes the following themes: • the contribution of cities (urban areas) to growth and jobs (in order to promote entrepreneurship, local employment and community development, for example);

• supporting the economic diversification of rural areas (e.g. the synergy between structural, employment and rural development policies); and

• cross-border, transnational and interregional cooperation focused on the aims of growth and job creation. Issues / Constraints Investment and jobs The synergies between environmental protection and growth must be strengthened so as to guarantee the sustainability of economic growth, innovation and job creation. With this in mind, the Commission recommends investing in infrastructures, creating attractive conditions for businesses and their staff and putting in place risk prevention measures. In addition, the EU's Kyoto commitments must be taken into account. Traditional energy dependency must be reduced through improvements in energy efficiency and use of renewable energies. How could the Local Development Framework respond • For the Local Development Framework to identify and rigorously assess all issues and options relating to how economic growth can be achieved in the Wigan borough through delivery of strategies such as Northern Way, RES and Greater Manchester Development/ Growth Strategies etc. • The Core Strategy will need to set our clear spatial objectives on how economic growth can be delivered and ensure there is a synergy between that and the strategies and objectives of the Wigan Economic Development Plan and work undertaken by the Economic Regeneration section of the council. • For the Local Development Framework to ensure that infrastructure effectively links into existing and future infrastructure at a national and international scale i.e. Trans European Networks Implications for the sustainability appraisal For the SEA/ SA framework to provide a robust and balanced appraisals of local development documents to ensure that environmental, economic and social sustainability is achieved in the borough. Cross references (General) Cross Reference (Topic Reviews) Housing Related Acts Retail and Centres Council Decision 2006/702/EC of 6 October 2006 on Community strategic guidelines on cohesion [Official Journal L 291 of 21.10.2006]. Communication from the Commission of 20 July 2005 "Common Actions for Growth and Employment: The Community Lisbon Programme" [COM(2005) 330 final - Not published in the Official Journal].

Communication from the Commission of 25 January 2006 to the Spring European Council - Time to move up a gear - Part 1: The new partnership for growth and jobs - Part 2: Country chapters [COM(2006) 30 final - Not published in the Official Journal].

National

Table B1 Title Planning for Economic Development Proponent body ODPM Status (e.g. statutory, non-statutory) Non Statutory Date produced 2004 Why is it relevant to the Local Development Framework? In December 2001, the Government issued the Green Paper, Planning: Delivering a Fundamental Change. Following a period of consultation, the Government published its response, Sustainable Communities – Delivering through Planning. This paper set a timetable of three years for the review of existing national Planning Policy Guidance (PPGs). PPG4, Industrial and Commercial Development and Small Firms was highlighted as a priority for review.

As part of the PPG4 review, the Office of the Deputy Prime Minister (ODPM) commissioned ECOTEC Research and Consulting Ltd in association with Roger Tym and Partners to explore current practice and issues involved in planning positively for economic development. The research findings will inform and provide an evidence base for a new planning policy statement and good practice guidance on planning for economic development.

The study was carried out using an inter-linked case study approach, focusing on practice at a regional, county, unitary and district/borough level within four English regions: East of England, South West, West Midlands and the North West. This involved the review of regional policy documents (including Regional Planning Guidance (RPG) and Regional Economic Strategies (RES)) and a sample of development plans; consultations with a range of local, regional and national stakeholders; four regional workshops and a small business workshop; and the assessment of practice in 12 case study areas. Key messages, requirements, objectives The focus of this study has principally been on the process of planning for economic development. Practice in this area is generally focused on two areas: • The development of a strategy or vision for an area, and the strategic allocation of employment land; and • Development Control – the implementation or delivery of the strategy, through the determination of individual planning applications.

Objectives: • To achieve high and stable levels of growth and employment, while ensuring that the benefits of that economic growth can be shared by everyone and so deliver a better quality of life. • To help realise the role of the planning system in facilitating economic development and meeting business needs, future guidance must clearly set out the ways and means by which the system can do this, whilst recognising the important role the system plays in balancing economic development interests against other objectives. • The planning system is not solely concerned with maximising competitiveness or wealth creation. The practice of planning for economic development cannot be divorced from the Government’s broader objectives for land-use planning, such as promoting an urban renaissance and social inclusion5, minimising the need to travel and promoting sustainable development. Opportunities Strategy and Policy Development • The strategic approach of RPG / RSS and RES is generally self-supporting and provides a clear framework for the operation of planning for economic development at a local level. • Found that in some urban contexts, such as Manchester and Birmingham, the planning system has played an important role in facilitating major regeneration programmes through visioning masterplanning and land allocations, and making the links between economic development and community needs. • evidence, that the planning system responding to changes in the economic climate, such as an increasing emphasis on raising the productivity and competitiveness of indigenous companies and recognition of the diminishing opportunities for attracting large inward investment projects

Allocation of Employment Sites • Assessment of the demand and supply of employment land, and the allocation in development plans, is an important part of the process of planning for economic development. Assessments should be used for: o estimating the demand for economic activities that are not land intensive, o separating out actual needs from more aspirational needs, o providing scope for a more co-ordinated approach to estimating the demand for employment land, led by the respective Regional Planning Bodies • Planning for economic development is contributing to an urban renaissance in a variety of ways. This is a strong component of the strategy at a regional and local level, with some regions / areas identifying that urban areas offer the best means to improve economic performance. There is a strong emphasis on promoting development on previously- developed land and on concentrating development within existing settlements. • The planning system is also seeking to promote a rural renaissance through a range of economic development policies and mechanisms with a focus on steering development towards market towns and the identification of priority areas. At a local level, planning departments are seeking to balance aspirations to facilitate small-scale economic development with the need to protect and enhance the local environment. • Arguably, planning for economic development is contributing strongest to promoting sustainable development in line with national policy, and has sought to balance economic, environment and social interests. • At a local level, planning bodies are seeking to improve access to employment opportunities and to steer development toward priority areas. Transport improvements have been identified as an important pre-requisite to raise economic performance of peripheral or deprived areas. It is rare for planning policy to target particular disadvantaged groups, although there are examples of authorities promoting training initiatives and the provision of childcare facilities.

Recommendations • That regional planning bodies remain the key mechanism for delivering strategic economic development • Local Development Frameworks to set out how the adopted economic development policies and strategy will support the implementation of other economic development strategies, programmes and initiatives. Local Development Frameworks should also clearly set out the expectations of other organisations in contributing and delivering strategies. • The preparation process should look to effective pooling of resources in developing evidence and policies in DPDs such as adjoining local authorities, organisations agencies, landowners etc. • Encourage planning bodies at the regional and local level to develop policies for different types of firms or groups of firms including local businesses/small firms and different sectors. This should contain guidance on the types of planning policies/mechanisms/instruments that can be used to promote different types of firms and sectors. • Safeguard employment land and provide clear criteria where non employment uses / change of use will be accepted and promote economic development considerations to form an important part of the process of determining applications as part of the overall aim of promoting sustainable development. • Provide clear advice on the use of S106 agreements to support the practice of planning for economic development. Issues / Constraints Strategy and Policy Development • Some examples of RES, RPG show that they sometimes lack a strategic approach in dealing with large sites which have created uncertainty for local authorities when interpreting regional policy and for other agencies concerned with land assembly and site development. • Evidence suggests that the integration between the planning system and wider economic strategies, programmes and initiatives should not be over-stated and this is an area that merits improvements. • Development plans broadly support the strategy adopted in RPG / RSS. The timing of development plan reviews has a strong influence on the extent to which they reflect the latest regional thinking. Local policy objectives and priorities are also an important influence on the economic development policies contained within development plans,

particularly in relation to issues such as labour market balance and housing supply. This can lead to some dislocation in the strategy/ policies for economic development at the regional, and local level – for example between regional ‘go for growth’ strategies and more protectionist development plans. • Targeted support for particular sectors or clusters is not a strong feature of planning department’s strategy for economic development beneath the regional level. Cambridgeshire found to be most advanced of the areas assessed. Also found only limited evidence of planning departments developing policies for specific types of firms, such as reserving land for small firms. There is a need for stronger guidance on the ways the planning system can plan pro-actively for different sectors/ clusters and types of firm. • Stakeholders consulted with during the study confirmed that planning departments are placing greater emphasis on supporting indigenous firms, for example by giving preference to local firms at particular sites. Inward investment tends to be the preserve of regional bodies and some of the larger local authorities. However, attracting inward investment projects remains an important part of the strategy for some local areas searching for new employment opportunities.

Allocation of Employment Sites • Some stakeholders raised concerns that the economic aspects of sustainable development are now receiving a lower priority than environmental and social concerns.

• Planning for economic development is contributing less explicitly to the promotion of social inclusion, although this reflects the more limited role of planning as a whole to this policy area. How could the Local Development Framework respond • Ensure that the Local Development Framework is based on a robust and credible assessment of demand and supply of employment land which is coordinated with sub regional and regional methodologies. • Assessments of economies are also undertaken with specific focus on market realism and sustainability factors. • Allocations are based on clear criteria such as such as use classes, size, location, accessibility, spatial distribution and priorities, regeneration needs, economic potential, environmental protection, types of sectors, firm size, market availability and sustainability. • Ensure Employment Land Reviews of employment site quality are undertaken on 3 year cyclical basis. • Ensure Local Development Framework process is used to review allocations and release sites if identified as unlikely to come forward. • That reviews of DPDs are programmed to react in timely way to revisions of RPG/ RSS and RES etc. • Ensure the Local Development Framework considers targeting communities and business etc that have specific economic, environmental and social needs when developing policy. • For DPDs to provide spatial policies that: o Safeguard employment land and provide clear criteria where non employment uses / change of use will be accepted. o Promote economic development considerations to form an important part of the process of determining applications as part of the overall aim of promoting sustainable development. o Specifically address the need to increase competitiveness. o Provide and increase access to additional facilities that ensure that an employees’ well being is not adversely effected i.e. reduced need to travel, provision of childcare facilities etc. o Provide clear guidance on S106 contributions and how such agreement can be used to meet economic development objectives. o Explicitly demonstrate how the policy link to and helps deliver other economic/ employment strategies. o Clearly sets out its expectations of other organisations. o Ensure that specific types of business and cluster areas are supported and that allocations are identified to adapt to changing circumstances. o Makes provision for attracting inward investment and not be insular i.e. concentrating on supporting established employers. o Provides a balance of employment development that meets the needs of rural and urban economies / communities.

Implications for the sustainability appraisal The primary consideration is the tension between balancing the social and environmental elements of sustainability with the argument that economic growth is essential to sustainability despite its impact on the natural environment.

Document makes a number of recommendations regarding the future monitoring of employment land and employment uses that could be integrated into the Annual Monitoring Report. These include:

• Planning bodies establish indicators and targets to monitor the effectiveness of the adopted economic development policies and strategy. • Recommend the closer sharing of intelligence between planning bodies and economic development specialists, including economic development units, in monitoring planning for economic development. Cross references (General) Cross Reference (Topic Reviews) Planning Policy Guidance 4: Industrial, What other topic papers areas may this document effect? Click here and see where else the commercial development and small firms document can be reviewed.

Housing

Table B2 Title Planning for Economic Development (Nathaniel Lichfield and Partners Report) Proponent body Nathaniel Lichfield Partnership Status (e.g. statutory, non-statutory) Non-statutory Date produced 2006 Why is it relevant to the Local Development Framework? On behalf of the Regional Development Agencies, Nathaniel Lichfield and Partners were commissioned to establish the effectiveness of the current national planning policy framework for enabling economic development schemes and comment on whether the policies allow for a responsive approach to economic development.

The methodology involved producing and analysing questionnaires sent to all local authorities regarding their views o the current status of planning policy. The report covers the following areas:

• Policy Review – analyses the range of policy guidance and notes that promote sustainable economic development and identifies the extent to which economic development is embedded within the current national planning policy framework. • Current effectiveness and use of PPG4 – this section assesses the effectiveness of the planning policy guidance note that focuses on economic development, within a changing economic context. • Pressure from housing development – analyses the impact of more recent planning policy statements in relation to housing on safeguarding employment land. • Bringing forward Office Development – an assessment of whether there is sufficient clarity in national policy to plan for employment land for offices, in the context of PPS6 • Employment Land Reviews – identifies the positive impact of, as well as the issues that are arising in undertaking employment land reviews. • Conclusions – Sets out a series of conclusions from the proceeding sections of the report and makes recommendations on how changes within the planning system could continue to impact positively on economic development.

Key messages, requirements, objectives The key findings of the research have identified that the promotion of economic objectives and how these are grounded within a national planning policy framework are not afforded the same weighting as other policy objectives. This issue is compounded by the age of PPG4 Planning for Economic Development (published in 1992), which to an extent has been superseded by more recent planning guidance. As a result of this a number of new planning policy documents and guidance notes have been introduced or existing ones have been revised.

It was agreed that PPG4 would be reviewed as a priority alongside other PPGs and the RDAs feel that the priority to review PPG4 remains. The RDAs would welcome a new PPS4 which is:

• Succinct and user friendly and stresses the need to provide the right type of land in the right location to meet the needs of businesses, • Fills the gaps in current national guidance and signpost applicants/Local Planning Authorities to existing guidance, • Promotes the need for up to date employment land reviews, • Sets criteria to safeguard high quality or economically important land from other uses, • Stresses the need for alignment between the Regional Economic and Regional Spatial Strategies and provides hooks to inform policies within the Regional Spatial Strategies (RSSs) and Development Plan Documents (DPDs) but at the same time allows local flexibility. Opportunities To develop planning policies that meet the needs of a modernising, growing economy. Issues / Constraints • PPG4, in comparison to guidance for other land uses lacks overall clarity and strength

in its policy approach to industrial and commercial development. Compared to other more up to date national policy guidance, it does not contain criteria-based policies with tests (such as those found in PPG3 and PPS6). It is also weak in not expressly supporting the protection of land for industrial and business uses against other competing land uses, particularly in light of the recent changes to PPG 3 “Housing”, paragraph 42(a). This has increased pressure for the re-use of employment sites for housing and is representative of the stronger emphasis and support for housing development in comparison to that currently given to employment uses. • Whilst PPG4 makes reference to the division of business and general industry in the B1 use class and acknowledges the trend towards home working, it makes little reference to the types of economic development now taking place and their varying locational needs. For example, no specific reference is made to the locational requirements of high-technology industrial uses, clusters, new and small businesses, live-work developments, knowledge based industries, environmental industries and different types of office development (private/public). Unlike PPS1 it also does not make any reference to non traditional employment generating uses, leisure, public services, tourism and retail. • As PPG4 was published in 1992, it also makes no reference to Regional Economic Strategies (RESs) and the planning role of the Regional Development Agencies (the need for alignment of the RSS and RES is advocated in PPS11 Regional Planning 2004, with limited explanation of how this is to be achieved). There is also no reference to the need for employment land reviews and how these should be used or for assessments of need, to counter proposals for other replacement land uses and to shape Development Plan Documents. • Paragraph 23 of PPG3 sets a national target of providing 60% of all housing on brownfield land by 2008. No similar target applies to employment development on brownfield land. The requirement to meet this target in PPG3 for such development creates an additional pressure to release brownfield employment sites for housing. • Also, the criteria in Draft PPS3 “Housing” on what constitutes developable land for housing allocation does not include reference to avoiding land which is allocated for alternative uses. Again this will place greater pressure for housing to be brought forward on sites that are currently allocated for employment use. • Moreover it omits the requirement in PPG3 that housing development should only be permitted providing that it does not undermine regional and local strategies for economic development and regeneration, thus lending further weight to the development of housing over and above economic development. • There is little in the way of detailed policy advice on planning for economic development in PPS1, although there is specific support for mixed use developments (paragraph 27). Taking into account the Regional Economic Strategy (RES) and the need to promote investment to deliver longer term economic objectives are also acknowledged. (paragraph 23) • Whilst PPG13 shows greater awareness of the locational requirements of different types of B1 employment than PPG4, it does not prioritise employment uses ahead of other uses on accessible sites for nor does it stipulate the priority for development between town centres and transport interchanges, especially for uses that generate a high number of trips. • Despite the requirement to demonstrate ‘need’ for B1 office uses within town centres, PPS6 provides insufficient guidance on the appropriate methodology for assessing proposals against its requirements. The approach set out in Paragraph 29 of PPS6 is useful, however, there is no guidance as yet as to how this assessment should be considered alongside wider economic objectives and there is no corresponding policy in PPG4. • In light of paragraph 2.51 stating that when selecting sites for allocation a range of other considerations (regeneration, employment and economic growth) may be material to the choice of locations for development, a revised PPG4 requires a similar emphasis. • PPS11 is concerned predominantly with the process of revising a RSS rather than how a consistent approach between the RES and RSS can be achieved. Annex A to PPS11 acknowledges the need for a PPS4, and provides interim guidance until this is in place. How could the Local Development Framework respond To explore the concepts of employment/ cultural clusters and the type, scale and location of development. Implications for the sustainability appraisal Provides background information.

Cross references (General) Cross Reference (Topic Reviews) Planning Policy Guidance 4: Industrial, commercial development and small firms

Table B3 Title Employment Land Review: Guidance Note Proponent body Department for Communities and Local Government Status (e.g. statutory, non-statutory) Statutory Date produced 2004 Why is it relevant to the Local Development Framework? The Employment Land Reviews Guidance Note was published in December 2004 and was developed in order to provide planning authorities with effective tools with which to assess the demand for and supply of land for employment.

The emphasis of this guidance is on the methodology for undertaking employment land reviews and it does not provide effective policy guidance on employment land. Key messages, requirements, objectives • The guidance note recommends that planning authorities should undertake employment land reviews and housing capacity studies simultaneously. • They should adopt consistent assumptions and approaches, taking account of housing and employment requirements when assessing the likelihood that existing or allocated employment sites will remain in or come forward for employment uses. • It also advocates adopting a systematic approach to assessing the development potential of sites for mixed use development. • The guidance note recommends that local plans should adopt strategies to guide development towards urban centres where appropriate, promote development in small towns and rural areas, promote rural diversification, support local economic development and secure a more balanced pattern of housing and employment across the plan area. Opportunities To undertake and Employment Land Review to provide an assessment of existing employment allocations and ‘clusters’ and identify future land demand requirements, ensuring that the distribution of employment sites is related to the needs of existing and future businesses and the communities of the borough. Issues / Constraints Current shortfall of up to 91 hectares may result in significant constraints should land demand requirements exceed this. How could the Local Development Framework respond • For the Local Development Framework to have full regard to the requirements of Planning Policy Statement 1 to ensure that employment development within the borough is sustainable. • The Core Strategy and Allocations and Infrastructure Development Plan Document to set out broad and site specific areas and policies for employment development throughout the borough. Implications for the sustainability appraisal Not a key document for appraisal. Cross references (General) Cross reference (Topic Reviews) • Planning Policy Guidance 4: Industrial, Economy and Employment Commercial Development and Small Firms Retail and Centres • Planning for Economic Development Housing

Table B4 Title Planning for Sustainable Rural Economic Development Proponent body The Countryside Agency Status (e.g. statutory, non-statutory) Non-statutory Date produced October 2004 Why is it relevant to the Local Development Framework? This guidance has been prepared for local planning authorities to encourage a new positive approach towards developing planning policies and advice for sustainable rural economic development. This guidance will also be of interest to local authority economic development and community development teams involved in the local development and application of positive policies related to supporting sustainable rural economies in their areas.

Key messages, requirements, objectives Rural areas need strong and durable economies built upon local economic, community and environmental strengths; indiscriminate economic development that threatens the environmental quality and community structure of rural areas should be discouraged.

Past rural policy approaches have often been sectoral, with agriculture, environmental management, housing, service provision, infrastructure and employment addressed as separate issues.

‘Sustainable rural economic development’ is development which provides local social, economic and environmental benefits together. What constitutes it will vary from place to place to reflect different needs, opportunities and potential benefits.

Opportunities

The key features of the Countryside Agency’s new approach to planning for sustainable rural economic development include: • a crucial focus on local economies; • seeking to provide social, economic and environmental benefits together; • providing support for diversification of agricultural enterprises, and the land-based economy more generally, especially where these contribute to environmental enhancement; • enabling rural communities to be more self-sustaining; • policies developed from a sound understanding of the current nature of the local rural economies, and which reflect the scope and capacity for future economic development in rural areas.

Issues / Constraints Providing opportunities for economic growth in rural areas whilst minimising the need to travel and negative impact son the environment. How could the Local Development Framework respond

Step 1: Understanding the state of the local countryside

The first stage in planning for sustainable rural economic development is to develop an understanding of the local rural economy and countryside context to pro-actively inform policy. Issues that may need to be covered include: • local population structure and pattern; • local housing structure; • local economic/business structure; • local infrastructure and services structure; • local agricultural/land economy structure; • local environmental/countryside character information; • local policy and programmes (social/economic/environmental).

Developing an understanding of how the elements of a rural area relate to one another, and to factors outside the area, is crucial to understanding how an area ‘works’. Key aspects to consider include:

• business networks & clusters; • commuting patterns; • service use; • infrastructure use; • shopping patterns; • community networks.

These patterns should be overlaid to establish the overall functionality of the rural area, and thus understand if and how parts of it function in different ways.

Step 2: Synopsis of the state of the local countryside

Having established an understanding of the state of the local countryside, a synopsis should be developed to summarise: • the ‘position’ of the local countryside; • key characteristics; • strengths and weaknesses; • opportunities and constraints to an integrated approach to rural economic development; • important spatial variations in issues across rural areas.

Step 3: Setting a vision

An understanding of the state of the local countryside and the synopsis established under Steps 1 and 2 provide the basis on which to develop a 10-year vision for the future. This should be seen as part of the overall vision for the local authority area set out in the Local Development Framework.

The vision should be realistic and focus on what is most important, and achievable, whilst at the same time being ambitious. The vision should provide a ‘future synopsis’ from which the key features of the local community, economy and environment can be identified, and objectives and policies based. A fundamental element of the vision is that it should be spatial, responding to variation across rural areas.

Step 4: Identifying objectives

Using the vision, clear objectives should be set to guide policy development – adopting an objective-led approach. These should be both overarching (integrated) and thematic. They should be selective and prioritised, focusing on areas where policy and action can bring about necessary change, and include timeframes for achievement. The objectives should also include an analysis of their interrelationships so that integration is a clear focus for the policies to be drawn from.

Step 5: Developing planning policy

Planning policies should be identified to deliver the defined objectives that are integrated with other policies and activities, both within and outside the local authority area. The understanding of the state of the local countryside, synopsis, vision, and objectives should lead to planning policies which are criteria-based and area-specific. It is important that policy criteria reflect the objectives for the area and the spatial differences across it. In this way they should be able to promote development that will provide local social, economic and environmental benefits together. Implications for the sustainability appraisal Provides background information. Cross references (General) Cross Reference (Topic Reviews) Planning Policy Guidance 4: Industrial, commercial development and small firms

Table B5 Title Developing Entrepreneurship for the Creative Industries: The Role of Higher and Further Education Proponent body Department for Culture, Media and Sport’s Creative Industries Division Entrepreneurship Task Group Status (e.g. statutory, non-statutory) Non-statutory Date produced May 2006 Why is it relevant to the Local Development Framework? This paper provides the background and evidence for encouraging and investing in graduate entrepreneurship to underpin the growth and development of the Creative Industries. It has been produced on behalf of the Department for Culture, Media and Sport’s Entrepreneurship Task Group in recognition of the increasingly important contribution made by the Creative Industries to the UK economy and the critical role played by graduates. The paper has been developed and refined through a lengthy process of information gathering, collation of existing reports, studies and research followed by wide consultation across the education and Creative Industries sectors and represents a synthesis of the experience, evidence and findings of over 200 individuals from around 150 organisations and institutions. Key messages, requirements, objectives Evidence clearly identifies the need to increase capacity for entrepreneurial learning across HE and FE to maximise opportunities for all students to develop entrepreneurial qualities to ensure the continued success and competitiveness of the Creative Industries. To achieve this, a more strategic approach is recommended and The Task Group has identified the following priorities for action which are explained in greater detail in the accompanying paper, Making the case for Public Investment:

• Development of a National Framework for entrepreneurial learning. • A comprehensive investigation and evaluation of the existing provider models. • Investment in curriculum innovation and creative infrastructure to create incentives. • Establishment of a National Creative Enterprise Programme that builds on existing good practice and exemplars to increase the scope and scale of opportunities Opportunities The Creative Industries is the fastest growing sector of the UK economy growing at an average of 6% per annum and 10% globally. It contributes 7.9% towards UK GDP and almost 2 million people are employed within its 13 sub-sectors.

The Creative Industries in the UK are currently in a strong competitive position, however failure to build and capitalise on existing strengths and ensure that the sector has the influx of creative entrepreneurial talent it needs will mean that we are likely to fall behind as overseas markets develop. China, New Zealand and Hong Kong, amongst others have formulated strategies for investment in their Creative Industries and closer to home, Scotland, Wales and Northern Ireland are well ahead of England in developing frameworks for the sector.

The sector needs those with creative and entrepreneurial talents who also have had the chance to develop real-world awareness, commercial know-how and know-who, self- efficacy and confidence to build successful new businesses and have an impact on existing ones. Our higher and further education institutions are in an unparalleled position to prepare students and are open to the challenge. All that is needed is a long term strategy, policy focus and investment to provide the incentives, motivation and clear direction for them to do so. Issues / Constraints A consultation process identified a number of key barriers that have prevented higher and further education from developing any long-term strategies for helping creative graduates to capitalise fully on their latent entrepreneurial talent despite the increased emphasis on the Creative Industries and the entrepreneurship agenda in recent years. In particular:

The lack of a coherent national policy framework that addresses entrepreneurship for the sector and the 46,000 graduates from the creative subjects annually has led to short-term, non-sustainable interventions with many existing programmes relying on short-term,

external funding (e.g. European structural funds, Higher Education Innovation Fund (HEIF) projects and Regional Development Agency (RDA) funding) and lacking exit strategies for continuing support after funding ends.

A lack of understanding of what works. There is currently no real body of evidence or research that tells us what types of approaches to entrepreneurial learning work and in which contexts. In the absence of any specific guidance, institutions have been left to make their own decisions as to whether to introduce entrepreneurial learning opportunities, at what stage and of what type.

A lack of incentives for institutions to focus on this area. Current Further Education (FE) and Higher Education (HE) Policy and funding does not promote the development of ‘home- grown’ entrepreneurial talent and there is little recognition or encouragement for academic staff who engage in enterprise activity and who might become effective leaders and enterprise champions.

A lack of relevant, sustainable learning opportunities both within and outside degree programmes means that graduates leave university unprepared for the realities of self- employment and that those already employed find it difficult to supplement their skills and knowledge gaps with appropriate training.

Lack of a common terminology. In many cases, the language and words used by the sector, by educators and by Government are incompatible and inconsistently applied. The Government’s focus on ‘enterprise’ and ‘entrepreneurship’ lacks relevance for creative individuals whilst preferred terms such as ‘self-employed’ and ‘freelance’ can have pejorative connotations and do not carry the political weight needed to convince policy makers.

Tensions between creative expression and commercial realities whereby academic staff and students are uncomfortable with the perceived conflicts between creative freedom and real- world utility.

A lack of appropriate information, advice and guidance. Careers advisers in HE and colleges are not sufficiently ‘clued-up’ about careers in the creative sectors or entrepreneurship and often fail to promote or recognise the importance of self-employment as an option. h. In addition, there are a number of specific issues facing the FE sector that arise largely from their relationship with the Learning and Skills Council (LSC), however the sector does have a lot to offer in terms of close links with local communities and business.

The sector is one of the most highly educated with around 43% having degrees or higher level qualifications, significantly more in some sub-sectors, compared with 16% of the workforce as a whole How could the Local Development Framework respond For the Local Development Framework to take recognised that creative and entrepreneurialism as a key element of building the boroughs economy: Implications for the sustainability appraisal Provides background information. Cross references (General) Cross Reference (Topic Reviews) Planning Policy Guidance 4: Retail and Centres Industrial, commercial development and small firms

Table B6 Title Good Practice Guide on Planning for Tourism Proponent body Department for Communities and Local Government Status (e.g. statutory, non-statutory) Non-statutory Date produced May 2006 Why is it relevant to the Local Development Framework? The planning system has a vital role to play in terms of facilitating the development and improvement of tourism in appropriate locations.

This document is designed to:

• ensure that planners understand the importance of tourism and take this fully into account when preparing development plans and taking planning decisions;

• ensure that those involved in the tourism industry understand the principles of national planning policy as they apply to tourism and how these can be applied when preparing individual planning applications;

• ensure that planners and the tourism industry work together effectively to facilitate, promote and deliver new tourism developments in a sustainable way.

Key messages, requirements, objectives Tourism, in all its forms, is of crucial importance to the economic, social and environmental well-being of the whole country.

Tourism is defined by the World Tourism Organisation as: “comprising the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”.

The World Tourism Organisation further explains that “Tourism” refers to all activities of visitors including both “tourists (overnight visitors)” and “same-day visitors”.

This definition has been adopted by the UK Government and the World Tourism Organisation definition of tourism is therefore used for the purposes of this guide.

At the same time, this guide recognises that tourism is extremely diverse. This definition can include travel and visits for business, professional and domestic purposes as well as for holidays and recreation. Tourism, in all its forms, is of crucial importance to the economic, social and environmental well-being of the whole country.

Tourism is defined by the World Tourism Organisation as: “comprising the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”.

The World Tourism Organisation further explains that “Tourism” refers to all activities of visitors including both “tourists (overnight visitors)” and “same-day visitors”.

This definition has been adopted by the UK Government and the World Tourism Organisation definition of tourism is therefore used for the purposes of this guide.

At the same time, this guide recognises that tourism is extremely diverse. This definition can include travel and visits for business, professional and domestic purposes as well as for holidays and recreation.

Opportunities Tourism generates significant revenues, provides millions of jobs, supports communities and helps maintain and improve important national assets.

It is the UK’s third largest foreign exchange earner after oil and vehicles – tourism accounts for over 4% of total exports.

In addition, central Government target to increase the value of tourism to £100bn by 2010.

The industry employs 2.2 million people – 7.7% of the UK workforce. Almost 80% of tourism jobs are located outside London and most tourism employment is located in 150,000 small and medium-sized enterprises (SMEs).

Tourism generates a high percentage of new jobs. It is also the largest employer of people under the New Deal employment initiative. It also provides a valuable stepping stone for young people with little or no work experience or qualifications.

Tourism can bring many broader benefits that will contribute to the economic and social well being of local communities as well as to individuals. It can: • be the focus of regeneration of urban and rural areas, as has been demonstrated by its success in Birmingham and in many seaside resorts; • provide a catalyst for growth in an area, raising its profile and stabilising out migration; • provide opportunities for retraining for the resident workforce and help to diversify over-specialised economies; and • help maintain and expand underused sports and recreation facilities in urban areas.

The revenue generated by tourism can help to: • support and enhance local services and facilities such as shops and pubs, particularly in rural areas; • secure the retention or upgrading of public services such as public transport, health centres and libraries; • support a broader and more vibrant and active community by attracting arts, sports or cultural events; • aid diversification within the rural economy; and • underpin the quality of the local environment and facilitate further enjoyment of it by residents and visitors.

Tourism depends heavily on the natural and built environment and can also be the key to maintaining and enhancing the environment: • The economic benefits of tourism in particular can help to sustain and improve both the natural and built physical environment. • Derelict land and buildings may be brought back into use and the countryside can be better maintained. • Visitors to historic buildings, archaeology and landscapes can provide income or voluntary efforts which help maintain and conserve such assets. • In rural areas the health of the environment and of the community depends on the viability of the local economy. So areas which attract visitors for their scenic beauty and which enjoy income from tourism will be better able to afford to sustain the local environment. • Proposals involving high quality design improve the visual and environmental experience for visitors and the local community alike.

The planning system, by taking a pro-active role in facilitating and promoting the implementation of good quality development, is crucial to ensuring that the tourism industry can develop and thrive, thereby maximising these valuable economic, social and environmental benefits.

Issues / Constraints Environmental impact – this can have a large number of facets, such as visual and noise impact, impacts on an historic setting, impact upon biodiversity and upon landscape quality. Impacts may be positive, negative or a mix of both.

Transport and accessibility – travel is an inherent element of tourism. Whilst recognising that it is a principle of the planning system to seek to promote more sustainable transport choices, improve accessibility and reduce the need to travel, this may be particularly difficult for some types of tourism projects or for areas that are poorly served by public transport.

Functional links – whilst some forms of tourism may, in commercial terms, be able to be directed to a variety of locations (e.g. a hotel) others will be much more specific in their land use requirements (e.g. a visitor centre for a cathedral).

How could the Local Development Framework respond The example below gives an overview of how one local authority, the London Borough of Greenwich, has worked actively through the planning system to underpin the development of tourism in its area.

Their work included: • dedicating specific parts of the development plan to tourism and its promotion. This followed from consultation with the tourism sector including the World Heritage Site Steering Group; • consultation with stakeholders on planning applications and involvement with partners in the preparation of planning briefs; • preparing a hotel strategy that actively promoted sites to hotel operators and developers. This has led to two new hotels being built and increased visitor spend in the local economy; • lobbying with private sector partners for improvements in public transport. This has helped secure investment in light rail, underground and river transport services; • active engagement with small hoteliers and owners of bed and breakfast establishments to give advice on planning matters; • securing contributions to tourism initiatives through s106 agreements, and voluntary contributions for marketing; and • working with developers and operators to secure local employment and business opportunities. Implications for the sustainability appraisal

Not a key document for broad appraisal. Provides background information.

Cross references (General) Cross Reference (Topic Reviews) • Economy and employment • Retail and centres • Open Space, Play, Sport and Recreation

Table B7 Title Tomorrow's Tourism Today Proponent body Department of Culture Media and Sport Status (e.g. statutory, non-statutory) Non-statutory Date produced 2004 Why is it relevant to the Local Development Framework? Tomorrow's Tourism Today outlines plans for action and responsibilities for delivery for the DCMS and its key partners in five areas. These are the four joint priorities agreed by the DCMS and the tourism industry; marketing and e-tourism, quality, skills and data, plus a fifth priority for the DCMS – advocacy for tourism across Whitehall and the EU.

Tomorrow's Tourism Today, which had the working title of the Tourism Prospectus, is the result of consultation by the DCMS with its key partnership organisations; VisitBritain, the England Marketing Advisory Board (EMAB), the Tourism Alliance, the Local Government Association and the Regional Development Agencies. It also reflects comments from over 30 organisations and individuals who responded to a final round of general consultation.

The idea for Tomorrow's Tourism Today came from the series of Hartwell Conferences between the DCMS and the tourism industry. They were part of the process of tackling the downturn in tourism that followed the Foot and Mouth outbreak and the September 11th attacks in 2001.

The tourism reform agenda has led to significant changes in the structures that help support the tourism industry. Most notable are the creation of VisitBritain as a dynamic marketing organisation promoting Britain abroad and England domestically, and the passing of regional tourism strategy in England to the Regional Development Agencies. Tomorrow's Tourism Today gives a clear guide to agreed roles and responsibilities for a programme of partnership working to produce sustainable growth for the tourism industry.

This prospectus is not designed to deal with every issue relevant to the tourism industry. Although it builds on the strategy set out in 1999’s Tomorrow’s Tourism, it is closely focussed on delivering improvements in key areas. Key messages, requirements, objectives Key Message / Vision • to see successful businesses providing a rich variety of experiences for today’s discerning leisure and business tourists, and creating real economic and social benefits for the whole country in the process. • to see sustained and sustainable growth, with the industry and the public sector working more closely together in marketing Britain as a tourist destination at home and overseas. • to see the customer at the very heart of all progress and put businesses in a position to provide the very best products and services to the customer through effective and co- ordinated partnership work.

The Government, regional bodies, local authorities, the voluntary sector, and the industry itself are committed to meeting and exceeding the rising expectations of visitors, by: • working in closer partnership in marketing, and particularly in planning and resourcing our work to market the industry’s products in a more effective and co-ordinated manner; • ensuring continuous improvement in the quality of our tourism products;• investing more in developing the right skills; • helping businesses by providing more and better customer information, making it easier to access and book holidays and other services; • improving policy and business decisions with better data; • building tourism into national and regional economic development strategies, and making better use of scarce resources by increasing collaboration at national, regional and destination levels; • promoting closer collaboration between the public bodies which promote tourism, culture, heritage and sport; • giving greater recognition and support to local authorities and other local organisations in supporting tourism; and • fully recognising and exploiting the links between tourism and the cultural and sporting life of this country, by bringing events and programmes together into unified plans.

Opportunities • Rural communities will receive specific focus • need to manage tourism carefully – not just to suit places for tourists, but to ensure that we do not destroy what attracts them in the first place, and that local communities benefit. • Tourism is already a key UK industry, with an annual turnover of £76 billion, or over 4% of GDP. 2.1 million people – over 7% of the working population – work in the sector. And the UK is 7th in the table of world tourism earners. • In quality, the industry is working to agree and implement common standards for all major accommodation grading schemes by the end of 2004/05, and significantly increase the present 43% rate of participation in such schemes by 2006. • In skills, DCMS and the wider tourism sector will support People1st in addressing skills shortages, and developing proposals for improving recruitment and retention. • the UK remains one of the most popular destinations for international leisure and business travellers. According to the World Tourism Organisation, we are seventh in the table of inbound world tourism earners.

The country can provide what today’s visitors are seeking:

• short breaks are a dynamic market, appealing to both domestic and international tourists; • there is great potential for further expansion in business tourism, bringing in significant numbers of high spending tourists who sustain the upper end of the accommodation sector, and businesses in conferencing and exhibitions; • English universities and language schools attract high numbers of overseas students; • interest in outdoor activities such as walking and cycling is increasing significantly, and we are well placed to capitalise on this; and • rural tourism continues to be significant, underpinning much of the economic activity of the most beautiful parts of the country.

Issues / Constraints • The UK’s tourism “balance of payments” was £15 billion in the red in 2002. • Hundreds of millions of holidays are taken, and day-trips made, in this country every year. The businesses that serve those visitors make up an industry worth around £76 billion a year - about 4.4% of UK GDP. It is estimated that 2.1 million people, or 7.4% of our working population, work in the tourism industry (of whom, 1.8 million are estimated to be employed in England). • 86% of England’s tourism income comes from domestic visitors. Of the total of 194 million overnight stays taken in England in 2002, 135 million were made by domestic visitors. • Despite being ranked seventh for tourism globally we are competing in an ever more challenging market, and have dropped two places in the above table over the last three years. Both new destinations and new markets are rapidly emerging, the latter reflecting the increasing affluence and mobility of people in Eastern Europe and Asia. • In 2002, some calculations show that we spent as much as £15 billion more on travelling abroad than we earned from overseas visitors to this country – a deficit up from £2 billion in 1990. This is not just a matter of new, low cost flight connections. It has much to do with our own increasing affluence. People want to travel and have a far greater choice of destinations. Deficits in tourism can be reduced by attracting more overseas visitors however this will have impact on carbon emission • The growth area in the domestic market is in day trips and short breaks, often based around cultural pursuits, heritage attractions or shopping, or themed around attractions and hobbies. For overseas visitors, we are seeing growth in business tourism, and in visiting friends and relations. There is good evidence that these types of visits very often lead to repeat trips - business visitors often return to the UK for pleasure, and overseas students return to the haunts of their youth. • recognise that, while productivity in the tourism industry has improved over recent years, evidence suggests that it remains low – not only compared with other UK service sectors, but to the tourism industries of some of our key competitors. Given the assets we possess, the income we generate from tourism is not as great as it could be. How could the Local Development Framework respond For the Local Development Framework to recognise the contribution tourism will play in growing the local economy. The development of tourism may also provide scope for wider development requirements in employment areas to meet the needs of business tourists.

Implications for the sustainability appraisal Progress against delivery in the above key areas will be co-ordinated by the Tourism Review and Implementation Group (TRIG). (For monitoring framework) Cross references (General) Cross Reference (Topic Reviews) • Tourism Reform Programme • DCMS tourism prospectus,

Table B8 Title Measuring Sustainable Tourism at the Local Level Proponent body Department for Media, Culture and Sport Status (e.g. statutory, non-statutory) Non-statutory Date produced January 2002 Why is it relevant to the Local Development Framework?

The purpose of this Guidance Note is to encourage the measurement of tourism impacts on local areas more broadly than in economic impact terms.

It is vital that, in addition to tourism economic impact indicators, objective measurements of environmental and social impacts are obtained as well.

All these benefits and impacts need to be considered together, to ensure that there is wise growth in tourism and that tourism development is more sustainable.

Key messages, requirements, objectives

Tourism growth is one of the greatest success stories of our times. However in recent years there has been a growing concern for; over-saturation and deterioration of some destinations, the overwhelming of some cultures, bottlenecks in transport facilities, and a growing resentment by residents in some destinations.

A good deal of Travel and Tourism activity relies on natural or cultural resources, so it is necessary to protect them for the future. Limits to; the number of visitors in one place at one time, the patience and welcome of our hosts, and the numbers who can visit natural resources must all be considered.

Opportunities 1) Economic • Generation of local wealth. • Diversification of fragile local economies. • Contributes to the development of local infrastructures. • Creates amenities for the benefit of residents which also will help attract other industries. • Generation of tax income. • Contribution to the generation of local goods and services.

2) Employment • Generation of employment requirements. • Employment in the tourism sector is becoming increasingly attractive as seasonality declines and minimum wage laws take effect. • Recognition that tourism provides additional part-time employment opportunities which opportunities are becoming increasingly attractive. • New developments in the tourism sector create local employment opportunities faster than in other sectors. • Tourism sector employment allows entry to employment opportunities at all levels of qualification and achievement.

3) Social • Encourages benefits of tourism amenities for residents. • Encourages local diversification through new local businesses and products. • Improving the quality of community life by widening choice and supply of local services. • Increases and diversifies social contacts. • Introduces the benefits of interaction between people of different cultural and supporting infrastructure.

4) Environment • Environment awareness encouragement of local people and business through use of environment protection programmes. • Acting as a catalyst for the regeneration of redundant resources.

• Supporting the maintenance and improvement of our natural and built heritage and ensuring its conservation for present and future use. • Better use of the built environment. • Providing economic incentive for investment in water quality, e.g. beaches, rivers, and canals.

Issues / Constraints 1) Economic • Tourism is volatile and can reflect quickly upturns and downturns in demand. • Much of the tourism product is seasonal. • Investment funds are harder to obtain for new tourism development projects in areas of high seasonality and/or peripherally. • Dysfunctional linkages between different businesses and tourism industries within the tourism sector, both public and private sectors. • A public and private perception that “tourism” is not a genuine or effective sector of the economy. • The existence of tourism “grey economy” outside of regulations and quality control.

2) Employment • Seasonality of tourism demand creates a preponderance of seasonal employment. • Need to establish better employment opportunities, e.g. full-time. • The quality of jobs in the tourism sector can compare badly with other sectors of the economy. • A greater mobility of labour is required by the tourism industry. • The need to invest in training to ensure that people have the skills to fill the jobs available.

3) Social Impacts • Competition for tourism accommodation versus resident accommodation negatively affecting first time buyers. • Second home ownership increases cost of housing for residents. • Competition by tourists for use of local amenities. • Traffic congestion. • Loss of open space to tourism developments and supporting infrastructure • Resident communities’ attitude to tourism. • Crime levels (whether by visitors upon host or host upon visitor). • Sense of place and local distinctiveness.

4) Environment • Traffic congestion resulting from tourist travel. • Loss of open space to tourism development and supporting infrastructure. • Litter and graffiti. • Energy consumption. • Air quality. • Water issues. • Crowding. • Low awareness of environmental schemes. • Lack of public awareness of their responsibility in tourism. • Sense of place and local distinctiveness.

How could the Local Development Framework respond The application of sustainable tourism policy thus involves:

• Definition of the sustainability themes that are important and desired standards of quality; • Monitoring indicator variables to determine whether existing conditions are within the bounds of desired change, or trends show that limits are being reached; • Undertaking agreed action when and where standards are about to be, or have been violated.

Implications for the sustainability appraisal

Provides background information. Cross references (General) Cross Reference (Topic Reviews)

Table B9 Title The National Statistics Review of Tourism Statistics Proponent body The Department for Culture, Media and Sport Status (e.g. statutory, non-statutory) Non-statutory Date produced June 2004 Why is it relevant to the Local Development Framework? The Department for Culture, Media and Sport published The National Statistics Review of Tourism Statistics on 28 June 2004.

A public sector group was formed to develop an implementation plan, as is required by National Statistics Quality Review procedures. This group met in July and September 2004, and following the outcome of 2004 Spending Review allocations, its conclusions were published (below) in the form of an Implementation Plan.

This review takes the UN-endorsed World Tourism Organisation (WTO) definition of tourism reproduced on the previous page of this report as given. It concentrates on statistics of tourism activity in the UK, by UK residents and others. It does not address in any detail UK residents’ tourism outside the UK. The review was conducted by an independent consultant working with a small team from DCMS and with a steering group representing a wide range of tourism interests and with extensive relevant experience.

Key messages, requirements, objectives Methodology used is based the Tourism Satellite Account: Recommended Methodology Framework – published by the UN in 2001:

“Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated fro within the place visited”

Tourism data and statistics represent key management information for tourism decision purposes, for overall national and regional policy formulation, targets and monitoring. They are required for use in:

• Economic evaluation of tourism and monitoring of trends within both the national and regional economy – now and looking ahead to Tourism Satellite Accounting options; • Planning -identifying the overall volume and forms of tourism to be supported and other forms to be discouraged through strategic and other planning guidelines for tourism; • Marketing -targeting segments, targeting products and themes, campaign plans and monitoring systems to record progress; • Sustainable development – meaning assessing tourism volume and value trends, product development trends and the use of indicators and benchmarks to monitor and guide progress on the environmental and social impacts of tourism; • Advocacy -the use of data for demonstrating the economic, social and environmental values of tourism, especially in debates in which tourism priorities are established in comparison with other obligations of government. • Opportunities The importance of the sector is illustrated by its accounting for over 4 per cent of UK GDP.

Local users require statistics for their area, and sometimes for comparable areas, similar to those provided for larger areas by UKTS, LDVS, and IPS. However, there is no realistic prospect of those surveys having a sufficiently large sample to provide such statistics.

There view recommends addressing this need through • Local surveys with samples defined by those using particular accommodation on particular nights • Inclusion in household surveys interviewing in the locality of questions about friends and relatives staying • Inclusion in national or regional household surveys of questions about day visits.

Issues / Constraints Major gaps identified by users include:

• Good quality lists of accommodation providers and other tourism businesses • Frequent and timely statistics of day visitors • Frequent and timely indicators of short term market trends • More detailed statistics of tourist expenditure • More comprehensive and robust local statistics.

• The review also found that significant further resources need to be devoted to the main established surveys (and in particular the UK Tourism Survey (UKTS) and the Leisure Day Visits Survey (LDVS)) • The broader development of panel surveys, of the type conducted for example by some trade associations, offers an opportunity to gain timely indications of short term trends of the type which many users indicated they would find valuable. These would cover a wider range of data than can be collected from statistically selected samples of businesses, and would provide a valuable addition to the range of available statistics.

Other important issues raised by the review include the needs to: • Involve businesses and trade associations as partners in developing tourism statistics; • Coordinate data collection from businesses so that – as far as possible- one request and return can serve many uses;

Ensure that responsibility and accountability for statistical development is clearly allocated, and adequately resourced, in a manner which does not make the development of tourism statistics subsidiary to, or unduly influenced by, the wider objectives of the organisation(s) within which the relevant individuals work.

Five main surveys are used to assess the volume, value and nature of tourism at this level: • United Kingdom Tourism Survey (UKTS); • Leisure Day Visits Survey (LDVS); • International Passenger Survey (IPS) • United Kingdom Occupancy Survey (UKOS); and • Survey of Visits to Visitor Attractions (SVVA).

These surveys seek to collect much of the appropriate key data for: • Tourism monitoring; and the related issues of • Resource allocation to, and within, tourism; and • The planning, development, marketing and evaluation of tourism activities.

However, there are some gaps in their coverage, including: • Expenditure by those receiving visits from friends and relatives • Some aspects of business tourism • Business day trips qualifying as tourism.

How could the Local Development Framework respond For the Local Development Framework to have regard to tourism statistics, particularly regarding planning, development, marketing and evaluation of tourism activities. Whilst tourism is an increasingly important element of the borough’s economy the Local Development Framework should seek to develop tourism facilities that can be reached through sustainable modes of transport.

Implications for the sustainability appraisal Monitoring Framework: • United Kingdom Tourism Survey (UKTS); • Leisure Day Visits Survey (LDVS); • International Passenger Survey (IPS) • United Kingdom Occupancy Survey (UKOS); and • Survey of Visits to Visitor Attractions (SVVA).

Cross references (General) Cross Reference (Topic Reviews)

Table B10 Title Property Snapshot – UK Economy & Property Market Proponent body Colliers CRE Status (e.g. statutory, non-statutory) Non-statutory Date produced October 2008 Why is it relevant to the Local Development Framework? This economy and property review provides an up-to-date assessment of the national economic and property market in the United Kingdom. Key messages, requirements and objectives ECONOMY

• The UK economy is contracting – economic sentiment (at 76.1) at its lowest since June 1991

• Service sector confidence (at -24.5) lowest since data series began in 1997

• CCRE view: UK economy contracting. Recession likely for end-2008 and for the first quarters of 2009. The financial sector is still unable to deliver finance to support the property markets; funding for general business activities is increasingly difficult.

PROPERTY MARKET

Investment Overview:

• Transaction volumes are not recovering

• Bank lending to commercial property has come to a virtual halt

• UK commercial banks have closed their business to new businesses in 2008

• Leveraged buyers are out of the picture indefinitely.

• Property companies looking to sell both to de-leverage and also to release cash for buy opportunities in 2009.

• Limited deals suggest high yields for retail, office and industrial.

• CCRE view: Latest financial turmoil has brought a further significant reduction in the level of investment deals. Increasingly, the remainder of 2008 is looking difficult.

Retail:

• Insolvency specialists Begbies Traynor report that 323 retailers are on their ‘critical watch list’ (retailers with at least a 70% chance of failure)

• Auditors describe JJB as ‘unviable’. MFI subject of a management buyout, but around 80 units likely to be closed. Bank consolidations will impact high streets substantially.

• Reduction on consumer confidence

• CCRE view – Despite stable official statistics, expectations of further distress in the retail sector as a whole, coupled with consolidation in the retail banking sector will result in considerable space coming on to the market. Rental growth will continue to contract.

Offices:

• Letting demand slowing, deals taking longer to complete. Headline rents steady, but net effective rents falling. Lettings based on bank relocation of staff to regional cities (e.g. Leeds and Manchester) cancelled. Despite record take-up in Manchester and Birmingham in 2008, there is very little on the books in 2009.

• CCRE view – Struggling financial sector leading to more job losses and weakening demand for office space. Rents to fall further. Out-of-town business space will fare especially badly.

Logistics and Industrial:

• Occupier demand is waning. Multi-let industrial parks are weakening, although logistics warehouses continue to fare better, reflecting positive growth in the transport, communication and distribution sector.

• IPD UK industrial rents fell by a quarter of a percent on a three month basis in the three months to September 2008.

• CCRE view – Industrial sector prospects look very constrained over the remainder of 2008 and 2009. Exporters will suffer from a weak global economy despite the weak Sterling.

Residential:

• Mortgage approvals declining month-by-month (record low of 32,000 in August). Buy-to-let mortgage availability heavily reduced.

• Nationwide index down -1.7% in September. Halifax down -1.3%. High rise city centre flats outside London are being offered at 50-60% discounts for block purchasers.

• House builder woes mount. Major developers have cut over 6000 jobs. Taylor Wimpey interim results show turnover down 96% to £4.3m. Value of land banks has fallen by 33% since last year.

• CCRE view – No real signs of price stability are apparent; no early indications of imminent recovery; pricing correction to play out well into 2009. Correction is being driven by financial constraints and lack of mortgage availability. Easing inflation and further rate cuts may positively impact sector sentiment in next six months. Opportunities

Issues and constraints If the economic downturn continues medium to long term, projected housing, economic and social targets may not be achieved.

How could the Local Development Framework respond?

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Housing

Table B11 Title Planning for Economic Development: A Scoping Study for PPG4 Proponent body Department for Communities and Local Government Status (e.g. statutory, non-statutory) Non-statutory Date produced 2002 Why is it relevant to the Local Development Framework?

In December 2001, the Government issued the Green Paper, Planning: Delivering a Fundamental Change. The Green Paper signalled the Government’s intention to review Planning Policy Guidance 4 (Industrial and Commercial Development and Small Firms). ECOTEC was commissioned to assess the scope and content of a revised version of PPG4, covering planning and economic development, to address the principles set out in the Planning Green Paper. This report is the outcome of that assessment and makes detailed recommendations for the coverage and content of revised policy in PPG4 and, where necessary, supporting good practice guidance.

The assessment is based upon literature review and a limited number of consultations held with those currently involved in planning for economic development at a national, regional and local level. It is intended as a scooping study and, as such, has been necessarily selective in its research base.

The objectives of the study have been to: • Assess the range of issues to be addressed in a revised policy document on planning and economic development, giving the rationale for the recommendations underpinning its proposed scope and content; • Clearly differentiate between, and give reasons for, those issues which are properly policy matters to be included in the PPG and those which are more appropriately good practice guidance – in accordance with the principles set out in the Planning Green Paper; • Ensure that the recommendations for scope and content address the range of relevant contexts and issues, including: strategic and local development frameworks; development control matters; and the relationship with other national planning policies; and • Provide a framework for preparation of a revised PPG4 and, if appropriate, good practice guidance, by: setting out the contents of relevant policy and guidance documents, including headings and sub headings, with a summary of what each section should address.

The report is divided into three sections. The first examines the range of issues to be addressed when planning for economic development. The second provides a possible framework for a revised PPG4, and the third sets out a template for associated Good Practice Guidance.

Key messages, requirements and objectives The Green Paper identified obstacles to an effective relationship between the planning system and economic development including the speed of decisions on planning matters undermining productivity and competitiveness and the unfocused nature of national guidelines (DTLR, 2001).

The issues that will need to be considered in any revision to PPG4 include: • Changing demands for space and changing locational requirements of businesses, driven by changes in technology and the balance of expanding and contracting sectors o A transition is occurring to a more service-orientated, knowledge-based economy; o Manufacturing will remain important but with less significance in terms of employment; o Anticipated loss of almost 700,000 manufacturing jobs (1998-2009) with an increase of 1.9 million in business and miscellaneous services in same period.

• Recognition of the importance of business networks and industrial clusters o The Competitiveness White Paper published in 1998 identified clusters and networks as an important source of regional productivity and economic growth

• Balancing competing demands in the use of land

• Overcoming difficulties in the implementation of the planning system o Many believe that the system is failing Small and Medium Enterprises (SMEs) through a lengthy, outdated process o Delays in planning decisions are shown to undermine the commercial viability of a project o The process involves too many uncertainties causing higher risks and costs for development with a serious lack of transparency in the procedures o The process is believed to fail its stakeholders due to the out-of-date local plans, inconsistencies with Regional Economic Strategies and a lack of the right knowledge and skills base.

One observation made of the present PPG4 has been that, whilst its provisions were broadly appropriate, it was not being consistently implemented in practice. Opportunities Proposed Coverage of PPG4 Planning Authorities should be encouraged to adopt a plan, monitor and manage approach to the provision of sites and premises for economic development. The extent of likely development to meet stated objectives should be planned for, the uptake of identified sites and premises monitored and the release of sites and premises managed.

As a matter of policy PPG4 should set out the broad national objectives that planning for economic development should be seeking to deliver. These could include the following: • Planning for economic development should promote sustainable development • Planning for economic development should promote economic competitiveness • Planning for economic development should help to tackle social exclusion • Planning for economic development should promote an urban renaissance PPG4 should briefly state the role of the planning system in promoting economic development:

• Promoting a competitive economy

• Promoting linkages with other planning topics as part of a spatial approach (e.g. housing, transport investment plans)

• Encourage cross-border co-operation with neighbouring authorities

• Supporting the actions of wider business support structures At the sub-regional scale, Local Development Frameworks plans should make the space available for business development within the plan area, allocate potential sites and seek to secure the long-term security of the local economy. Ensuring an adequate supply of sites and premises: Assessing the amount of land required – Plans should contain a sufficient supply of land to support agreed economic development strategies. Working in partnership with economic development professionals or property specialists, planners should assess the amount of land likely to be required over the life of the plan. Assessing the suitability of potential sites and premises – Criteria based approach likely to be appropriate. In deciding suitable criteria, planners should bear in mind the following aspects:

• Location and accessibility

• Availability of previously developed sites and empty or under-used buildings

• Capacity of existing and potential infrastructure

• The physical and environmental constraints on development of land

• Contributing to building communities

• The needs of different economic sectors and different types of business Location criteria: In general: • Offices: to focus office development in city, town and district centres and near to major public transport interchanges. A sequential search for sites will be appropriate • Research and development to facilitate the development of clusters of high- technology, knowledge-driven companies. A sequential search for sites is likely to be appropriate, with • connections to key R&D centres an appropriate consideration • Industry: to ensure there is a supply of sites with a choice of means of access. Site location • criteria are likely to vary by the nature of proposed use • Distribution: to promote sustainable distribution, including where feasible the movement of freight by rail or water. Distribution sites are likely to be in out of town locations. Mixed use developments should be promoted – planners should not seek to separate residential, commercial and industrial activity unless there are strong reasons for doing so. Ensuring a suitable range of sites and premises – sites of varying sizes and location, to accommodate the needs of different users, as identified within related economic development strategies Issues and constraints

How could the Local Development Framework respond?

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Planning Policy Guidance 4: Industrial, commercial development and small firms

Consultation Paper on a new Planning Policy Statement 4: Planning for Sustainable Economic Development

Table B12 Title Recession to Recovery – The Local Dimension Proponent body Local Government Association Status (e.g. statutory, non-statutory) Non-statutory Date produced November 2008 Why is it relevant to the Local Development Framework? This is an analysis of the potential differential geographical impact of the current economic slowdown on towns and cities, regions and sub regions in England. This analysis of the local effects of recession is crucial in order to inform local government as to their role in moving from recession to recovery and has a major implication on the delivery of objectives set out in the Local Development Framework.

Key messages, requirements, objectives

Northern cities are in a better position to weather the economic storm than London, which could be set to bear the brunt of the recession, according to a report today. The findings published by the Local Government Association (LGA) shows that the recent growth of big northern cities has placed them relatively well to cope with the effects of the economic slowdown. The report revealed at a credit crunch summit in London projects how each area of the country could be affected differently by the downturn if no action is taken. It says almost two in five of jobs that could be at risk over the next two years are in London and the South East. The hardest hit industries will be construction and manufacturing, while high skilled industries look set to remain relatively unscathed. Even within individual regions there are marked differences between how local areas may fare. The LGA warned that a national, blanket policy to deal with the recession would be unable to target help effectively to specific areas. It is calling for as many economic decisions as possible to be taken at a local level to ensure that local solutions can be found to local problems. LGA chairman Margaret Eaton said: “Councils will be pulling out all the stops over the coming months and years to protect local people and businesses from the worst effects of the slump. “With greater freedoms over transport, infrastructure, planning, economic development and skills, councils would be able to do even more for local people.”

The report suggest that the appropriate policy response to a forthcoming national economic slowdown must include economic interventions made at the level of individual counties, functional economic areas, local governmental partnerships, and local authorities. LGA research, and discussions with local agencies, suggest that appropriate local policies may fall into the following categories:

• Business development and support. The primary conduit for financial support is likely to be at regional level, with the Regional Development Agencies chiefly responsible for new loans and other funding streams. However, business advice can be delivered locally and tailored to at-risk sectors and industrial groups where jobs growth is possible. The experience of local delivery agencies will be crucial here.

• Training and skills. Ensuring that training available to the local workforce matches the demands made by local industry should be a priority, no matter what the economic conditions are. While interventions here can have a long response time, they can be critical for softening the blow of a recession and ensuring a rapid recovery.

• Infrastructure investment. Targeted investment in infrastructure can stimulate the local economy (in the short term for construction and engineering, as well as in the longer term) and ensure that high-priority employment locations are better placed to

recover. There is also an opportunity to close gaps between any growth in housing which may have occurred during a period of economic growth, and the infrastructure necessary to support the extra dwellings.

• Housing, planning, land allocation policy. A weakened housing market can lead to a disparity between the requirements of developers and local homebuyers. Strategic investments in infrastructure can reduce the barriers to entry for developers while ensuring that they are able to provide the necessary levels of affordable housing and facilities within their developments.

• Support for innovation. Investment in genuinely innovative development in tradable sectors is of maximal benefit to local, regional and national economies because of the minimal risk of displacement (if something is new, the amount of local competition is small).

The report is available here.

Opportunities

Issues / Constraints

How could the Local Development Framework respond

Ensure that the LDF includes policies which support business development, training and skills, infrastructure investment, housing allocations and innovation as detailed in the document.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Regional

Table C1 Title Moving Forward - The Northern Way Proponent body Yorkshire Forward, One North East and the Northwest Regional Development Agency Status (e.g. statutory, non-statutory) Non – statutory Date produced September 2004 Why is it relevant to the Local Development Framework? In February 2004 the Deputy Prime Minister invited three northern Regional Development Agencies to demonstrate how the North could release the potential for growth. If the productivity and employment of the three northern regions matched the current UK average, the UK would be some £29 billion per annum better off. In response the Northern Way Steering Group identified a simple challenge - what should the North do differently to accelerate, significantly, the rate of growth of the North’s economy?

In September 2004 The Northern Way vision was published and set out a vision for the North of England by 2025. It seeks a region with a strong, knowledge-driven economy, with high educational attainment, and in-migration from elsewhere in the UK, as well as the rest of the world, by people attracted by the high quality of life. The key driver behind the Northern Way initiative is the need to achieve greater economic growth and reduce the productivity gap wit the rest of the UK. Key messages, requirements, objectives Key Message • Contribute to tackling the £29 billion gap between North and South regions • Market the North better in a global context. • More people need to be brought into employment. • Need to exploit the knowledge base. Opportunities The initial approach adopted has been to develop a Growth Strategy that builds on the proposals set out in the North’s three RESs and adds value. The Growth Strategy is governed by 4 guiding principles including:

• looks at the North as a whole to identify pan northern investments, which will add value to that which is being undertaken in each of the individual regions; • is based on how best to build on the North’s strengths, clearly defining what partners can do in the North and what Government must do to realise benefits from these assets; • complements the three Regional Economic Strategies, as these define - now and in the future - the key proposals to take forward economic development in the three regions of the North; • defines actions at the most appropriate scale - pan northern, regional, city regional, or more local. Issues / Constraints The northern regions have historically been out performed by the South of the country in particular London and the South East. In order to reduce the GVA output gap the following constraints will need to be addressed: • more people need to be brought into employment • north's knowledge base capacity is not meeting the projected needs • there is limited entrepreneurialism in the north • the regions require a larger share of global trade • employer skills requirements often identify a ‘skills gap’ • a lack of a northern airports plan and improve surface access to key northern airports • improved access required to the north's sea ports • city region access and linkages between city regions requires improvement. • Development of sustainable communities is limited. • limited marketing of the north within the global economy context. How could the Local Development Framework respond To have full regard to the Northern Way and ensure economic growth is a key issue absorbed in the spatial objectives of the Core Strategy. What should we do in response to

these requirements, aims and objectives? Implications for the sustainability appraisal Ensure appraisal framework has specific regard to economic growth in the borough.

Cross references (General) Cross Reference (Topic Reviews) Regional Economic Strategy for the North West 2006.

Table C2 Title North West Regional Economic Strategy Proponent body North West Development Agency Status (e.g. statutory, non- Statutory statutory) Date produced 2006 Why is it relevant to the Local Development Framework? The Regional Economic Strategy (RES) published in 2006 replaces the first strategy published in March 2003 by the North West Development Agency. The RES is the rolling 20 year strategy to shape the future economic direction of the Northwest with a particular focus on activities in the three years 2006 to 2009. The NWDA led the development of the strategy to ensure its ownership by everyone seeking to develop the economy. The collective effort of key partners is essential if the transformational of the economy is to be achieved. At the heart of the RES lies the concept of achieving sustainable development. The RES is of central importance to a range of other policies influencing, for example, housing, planning and transport policies via the Regional Housing, Spatial and Transport strategies. Key messages, requirements, objectives Regional • Productivity and enterprise levels are high, driven by innovation, leadership excellence and high skills; and carbon emissions are low. • Key growth assets are fully utilised, (Priority Sectors, the Higher Education and Science Base, Ports/Airports, Strategic Regional Sites, the Natural Environment especially the Lake District, and the Rural Economy.) • Employment rates are high and concentrations of low employment are eliminated. • Developing transport infrastructure to connect the region internally and with the rest of the world. Opportunities Manchester City Region • Manchester becomes a vibrant European city with peripheral centres becoming key drivers of city-regional growth • North’s greatest concentrations of high value activity in manufacturing, financial and professional services, media, creative and cultural industries. • Strong potential for growth in life sciences, ICT/digital and communications. • Manchester Airport’s role as the key international gateway to the North. • Highest performing research and teaching institutions outside the Golden Triangle. • Critical mass of cultural assets. • Regional Media Hub - the planned relocation of the BBC will establish its status as the premier broadcasting/ commissioning centre outside London. • Dynamic private sector in Manchester - recognised as the only UK city outside London in the top 20 European business locations. • Key business tourism destination.

Wigan • Realise and nurture the natural and built heritage assets such as Wigan Greenheart. • Demands on transport networks leads to congestion particularly at peak times. Develop innovative transport solutions to link people with jobs. Actions to reduce congestion will help encourage inward investment Issues / Constraints Regional Despite improvement the region is still not contributing its full potential to the UK economy.

The GVA per head of the Northwest is still 12% lower than the England average – resulting in an output gap of £13 billion.

Other key “gaps”

• 80,000 fewer people working. • 120,000 more people with no qualifications.

• 80,000 fewer people with degree-level qualifications. • 90,000 fewer people working in the “knowledge economy”. • 38,000 fewer companies.

Development of the regions transport infrastructure and strategic regional sites could have some negative impacts on natural resources and local environment conditions.

Manchester City Region

• High concentrations of economically inactive people. • High concentrations of those with low levels of qualifications. • Improving connections to and within the city-region including the expansion of Manchester Airport, improvements to the Manchester Rail Hub and Trans-Pennine Rail Network, and completion of the planned extensions of Metrolink. • Provision of the appropriate housing to support economic growth. • Ensure the high performance in the south of the city-region benefits the north. How could the Local Development Framework respond To have full regard to the role Wigan can play in strengthening the Manchester City Region position in delivering economic growth in the North West through a range of economic, environmental and social led schemes such as Green heart .

Both the Core Strategy and Allocations and Infrastructure DPD should identify the broad and site specific locations for economic/ employment development with potential for additional SPDs to be produced for leisure, tourism, development of sites for knowledge economy and master planning (i.e. mixed used) Implications for the sustainability appraisal To ensure that sustainable economic development forms part of the appraisal framework.

Potential Indicators for Monitoring Framework

• GVA Headline • GVA per Head • GVA per Hour Worked • GVA By Sector • Full-time/Part-time Jobs Created • Male/Female Jobs Created • Employment Rates • Employment Rates for Disadvantaged Groups • Self employment rates in deprived areas • Incapacity Benefit Claimants as a % of working age population • Income Support Claimants as a % of working age population • Sickness and Absence from work (hours lost) • Working age people with no qualifications • Working age people with Level 2 qualifications • Working age people with Level 3 qualifications • Economically active working age people with Level 4+ qualifications • Adults with basic skills needs • % of employers providing further training • Management and enterprise skills Regional • VAT Registrations and De-registrations • Stock of VAT-registered companies • Business Survival Rates • Number of exporters • Foreign Direct Investment R • Innovation Rates • R and D Spend (private and public) as a % of GVA • Energy Consumption • CO2 Emissions • Waste Levels • % of energy use from renewables • Previously Developed Land Regional • English Index of Multiple Deprivation • Housing Affordability

• Number of districts where house prices are substantially lower than Sub-regional • Average (Median) Wage Levels • Household Incomes (average, and households below average) Regional • Number of DEFRA "Lagging Districts" • Mean taxpayer income earned by rural district • Population and population structure • Net In-Migration • Net In-Migration, By Broad Age Group • Public transport usage • Congestion Regional • ICT usage and take-up • Crime Rates R • Number of major events, and their economic impact • International and domestic visitor numbers • Tourism Expenditure Cross references (General) Cross Reference (Topic Reviews) • Moving Forward – the Northern What other topic papers areas may this document Way effect? Click here and see where else the • Regional Spatial Strategy for the document can be reviewed. North West • Greater Manchester Economic Housing Strategy 2004/05 – 2006/07 • Wigan Economic Development Plan

Table C3 Title The North West Employment Land Study Proponent body North West Regional Assembly Status (e.g. statutory, non-statutory) Non-statutory Date produced April 2005 Why is it relevant to the Local Development Framework? The North West Employment Study, commissioned by Arup with Donaldsons, was published in April 2005 by the North West Regional Assembly. The project forms a key part of the evidence base for the preparation of the Regional Spatial Strategy (RSS) for the North West. The purpose of this study is to provide an up-to-date, accurate and robust assessment of the quantity and quality of existing employment land (over 5 hectares) in the North West, and the extent to which this land can meet projected future demand for the period to 2021. The provision of employment land is a crucial issue for the future economic and spatial development of the North West region.

Key messages, requirements, objectives The commission has two main objectives and associated outputs: a) Phase 1 and 2: assessment of the quality and quantity of existing employment sites; and b) Phase 3: appraisal of how the provision of employment land could meet employment land requirements, up to 2021, based on employment forecasts.

Quantity of Employment for the North West There is a total of 5,795.70 hectares of committed employment land in the North West. This land is distributed across the sub-regions as follows:

• Cheshire and Warrington: 1,491.24 hectares; • Cumbria: 633.4 hectares. • Greater Manchester: 1,367.98 hectares; • Lancashire: 1,068.58 hectares; • Merseyside and Halton: 1,234.49 hectares;

There are a total of 257 sites of 5 hectares or more in area in the North West. These account for a total of 4,488 hectares employment land. General employment uses (i.e. allocated for an unspecified mix of B1, B2 and B8 uses) account for 71.1% (2,882 hectares) of the total area. Of the region’s 257 employment sites over 5 hectares, 168 are allocated in adopted development plans and a further 50 are allocated in draft development plan documents. Other sites are unallocated but benefit from extant planning permission. Across the North West, 65 employment sites of 5 hectares or more are considered to be readily available (i.e. able to be developed immediately for their appropriate employment use). These 65 sites represent a total of 885.5 hectares.

Opportunities The Greater Manchester Sub Region • Greater Manchester has the largest combined area for B1 sites over 5 hectares in the North West (236 hectares). • Nearly one quarter of the sub-region’s larger employment sites have the benefit of full planning permission. • A total of 23 sites in the sub-region are either readily available for employment use or are considered to be available within the next three years. • Greater Manchester has the highest combined area for B1 sites amongst North West sub-regions with an area of 235.9 ha. • A total of 32 sites are allocated in adopted development plans and ten are in draft development plans. Only one site in the sub-region is committed and seven are unknown in terms of development plan allocation. • Nearly one quarter (12) of the Greater Manchester sub-region’s employment sites have the benefit of full planning permission and an additional seven have outline consent.

Twenty are either the subject of current planning applications or are the subject of discussions and only 11 remain allocated with no moves towards planning permission. • A total of nine employment sites in the Greater Manchester sub-region are considered to be available, fully serviced and actively marketed. A further fourteen are considered likely to be available within the next 3 years; i.e. preparation commenced, or preparation programmed with funding in place. Fourteen sites are not likely to be developed within the next 3 years, or site preparation is required. One site is not generally available, is reserved for a specific business/user or has an unwilling seller. The status of the remaining sites is unknown.

Market Deliverability: Quality, viability and constraints • There is a relatively even distribution of employment sites across Greater Manchester. • The highest ranking sites in Greater Manchester, in terms of availability and deliverability include two Strategic Regional Sites: Ashton Moss and Kingsway Business Park. In terms of planning policy/sustainability rankings, the top ten ranked sites are all located in Manchester and Salford. • Over half the sites in Greater Manchester will be available within the next three years. • The market interest in Greater Manchester is high compared to the other sub-regions and the region average. The average score of sites in Greater Manchester is 2.86, which is the highest scoring sub-region. The majority of sites fall within the higher and middle thirds. • The ownership of committed employment sites in the sub-region is ranked highly, culminating in an overall score of 4.02 across the ten Districts. Ten of the 50 sites are owned by Local Authorities / Other Public Bodies, whilst several, particularly in Wigan, are in mixed ownership. • The current supply of employment sites is about average for the region. The regional average score is 2.83 and average score of sites in Greater Manchester is 2.84. The majority of sites fall within a moderate to low supply. • Vacant floorspace in Greater Manchester is below average for the region. The regional average score is 3.26, compared to the Greater Manchester average score of 3.14. Nearly all sites fall within the moderate to low category. • Topographical issues do not represent a significant constraint for the vast majority of employment sites in the sub-region, as a high score of 4.20 overall indicates. • Broadband internet is available throughout the sub-region, leading to a maximum score in this category of 5.00. • The RPG Spatial Development Framework states that a significant proportion of development and urban renaissance resources of the region should be focussed on the North West Metropolitan Area, which includes the ten unitary authorities of Greater Manchester. Consequently, the sub-region scores maximum points in this indicator. • Public transport accessibility is good for the Greater Manchester sub-region; its overall rating of 3.68 is the highest in the North West, and indicates the close proximity of many of the sites to the major rail and bus interchanges in the region. • Ready access to a Motorway: the vast majority of Greater Manchester’s centres of employment are located close beside a motorway, with 42 of the 50 sites within 10 minutes drive of a motorway junction. This has resulted in an overall average score of 4.04, the highest sub-regional average in the region. • The Density of the Economically Active Population in the sub-region is very high, with an overall score of 4.82 representing the highest average score for any of the sub- regions in the North West. All ten of the Greater Manchester Districts are ranked in the top fifteen highest densities in the region, with Rochdale the lowest at 5.89 economically active people per hectare, to Manchester City, at 13.76 economically active people per hectare (the second highest in the region behind Blackpool). • The amount of Previously Developed Land used for committed employment sites in Greater Manchester is also the second highest in the region, resulting in a high overall score of 3.66 compared to a regional average of 3.35. Twenty nine sites out of 50 in Greater Manchester would be constructed wholly on previously developed land. • Flood Risk of employment sites in Greater Manchester is the second lowest in the region, resulting in an overall score of 4.34. Only eight sites are at risk of flooding (1 in 100 years or greater), whilst 37 sites have no flood risk at all. • No significant Environmental Constraints were identified at any of the employment sites analysed in Greater Manchester, resulting in an overall score of 4.76. • Priority Regeneration Designations in Greater Manchester focus around Objective 2 funding, transitional areas, assisted areas, and Enterprise Grant areas, which cover large parts of the sub-region, particularly around Wigan, Trafford, Tameside, Salford, Oldham, Manchester and Bolton. Only Stockport’s employment sites are not covered by

any of these economic assistance designations. This has resulted in Greater Manchester scoring 3.42 in this category, the second highest in the region. • The majority of employment sites are likely to qualify for Gap Funding, and an overall score of 3.79 has resulted. Issues / Constraints • Three of the sub-region’s employment sites are located in the Green Belt or have other major policy constraints, two of them are designated as protected open space and only one site has a local designation which may affect its development. The majority, 39 sites, are not constrained by land use policies. • There is no clear geographical distribution of sites by overall policy and sustainability criteria across the Great Manchester sub-region. • Local rents are some of the highest in the region. In a regional context the average score is 3.24, which is 0.54 higher than the regional average; this score is 3.26 in a sub- regional context. Nearly all sites are ranked within the higher and middle thirds. • Contaminated land is an issue for many of the employment sites in Greater Manchester, as the overall score of 3.70 is one of the worst in the region. Around 54% of the land is previously developed, which is likely to have an effect on the overall scoring in this category. • Utilities and highways constraints are a problem for certain sites in Greater Manchester, although the overall score of 3.68 closely mirrors the regional average for such constraints. • The Internal Environment of the employment sites are generally of a moderate quality, with an aggregate score of 3.90. • Compliance with key principles and objectives of RES: Of the 12 key objectives, the sites on average comply with around six of the key objectives, resulting in Greater Manchester achieving a moderate overall score of 2.98. • There are several designated Strategic Regional Sites / Regional Investment Sites in Greater Manchester: North Manchester Business Park in Manchester, Kingsway in Rochdale, Barton in Salford, Ashton Moss in Tameside, Davenport Green, and Carrington in Trafford have over five ha remaining for employment use • Pedestrian / Cyclist access to the employment sites has been estimated to be fairly average, resulting in an overall score of 3.08, slightly higher than the regional average of 2.89. Just two sites have no existing or proposed pedestrian / cycle routes nearby. • Congestion on the surrounding road network to the employment sites is slightly lower than the regional average (scoring 3.00 compared to 3.47 for sites in the North West as a whole). Eleven of the 50 employment sites have either high or very high congestion on the surrounding network, located in either Wigan, Stockport, Rochdale or Salford. • Easy and Appropriate HGV Access (for B2/B8 sites only) is not generally a problem for most of the employment sites in the sub-region, with an overall score of 4.10 resulting. Only two sites, both in Wigan, have identified several HGV restrictions to the sites. • Proximity to Rail, Sea and Air Freight (for B2/B8 sites only): The Greater Manchester employment sites score moderately in this category, with an overall score of 2.98 being below the regional average of 3.47. The sites to the north and east of the sub-region in Bury, Rochdale, Oldham and Bolton score relatively poorly, due to the increased distance away from the ports and Manchester Airport. • Unemployment levels vary somewhat across the sub-region, from Stockport’s low figure of 2.47%, to Manchester’s of 5.02%, the third highest in the region. This results in an overall score of 3.00, which is a slightly lower score than the regional average. • The patterns of Deprivation in Greater Manchester’s local communities mirror the trends set in the previous indicator. There is a wide disparity between relatively low deprivation in Stockport(ranked in the 50% least deprived District in England), to Manchester (ranked second most deprived District in England in the rank of average scores domain) • Potential Pressures for Non-Employment Uses could possibly affect just 13 of the 50 sites, with those in Salford and Stockport under most strain. This has resulted in an overall score of 4.16in this category, the highest in the region. • Availability and Deliverability Rankings Regarding the lowest ranking category, five of Bolton’s seven sites are ranked in this lower third, along with four of Trafford’s. East of Leigh Road in Wigan is the lowest scoring site in this category, with an overall score of 2.62. • Planning Policy / Sustainability Rankings In terms of the planning policy and sustainability criteria, a high number of sites in the top third are unavailable in the sort to medium term; 12 of the 17 sites in this category are likely to be unavailable within the

next three years. The highest ranking site in the sub-region is in Manchester, Queens Road Tip, at 4.44. Of the top ten ranking sites, all are in either Manchester or Salford. Of the lowest ranking third, this includes five of Rochdale’s sites, five of Wigan’s, and all of Stockport’s. The lowest scoring site in this category is Hareshill Road in Heywood, Rochdale, which scored 3.17.

How could the Local Development Framework respond Prepare Employment land Review for Wigan borough and include more detailed employment land demand projections, whilst assessing existing employment land and premises. The framework will then need to explore options for the appropriate locations for development that meets the needs of local communities and inward investors.

Implications for the sustainability appraisal Provides background information. Useful for: • Establishing the baseline position. • Stages of the appraisal that require further detail. Cross references (General) Cross Reference (Topic Reviews) • Demand for Employment Land in Greater Manchester Study • The Manchester City region Knowledge Economy Report

Table C4 Title North West Ports Economic Trends and Land Use Study Proponent body North West Development Agency Status (e.g. statutory, non-statutory) Non-statutory Date produced October 2005 Why is it relevant to the Local Development Framework? The study, produced by MDS Transmodal Limited in association with Regeneris Consulting Limited for the North West Regional Development Agency (NWDA), provides an overview of the North West economy to establish the impact this will have on the region’s ports The first thing to note, however, is that the performance of the region’s economy is only one factor influencing the performance of its ports and wider economic and transport issues. The region’s ports have a range of economic benefits, as well as various drawbacks – these are set out below. Key messages, requirements, objectives Key implications of the region’s performance and prospects are:

• The continuing shift from manufacturing activity to the service sector across the North West is expected to reduce both the imports of raw materials and exports of manufactured goods to and from the region’s manufacturers. • The gradual improvement in the region’s prosperity together with the reduction in UK’s manufactured output will lead to an increase in the import of manufactured consumer goods from elsewhere in the world. Some of this increase in imports will come through the region’s ports, but also through the South East ports. • The prospects of some specific sectors may have a significant impact upon particular ports where there is a heavy dependence upon the activities of these sectors. This dependence is far more likely to exist where the ports are relatively small in terms of their total volume of freight. An example might be the run down of the BNFL Sellafield site, which may have implications for the Port of Barrow. Opportunities Support of businesses and employment in a range of activities which are directly related to the operation of the port. In addition, a wider range of business activities (and hence employment) which support the operation of the ports (e.g. logistics, maritime commerce, etc) and which form part of the wider maritime cluster.

The efficient import and export of raw materials and finished goods by firms located within and out of the region. In some instances firms engaged in added value activity, typically manufacturing, may choose to locate in close proximity to the port.

Provision of national and international connectivity and hence support of trading links between countries – this provides the basis for the import and export of bulks and other inputs and finished goods and is an important aspect of the UK and the region’s competitiveness. Some ports play a particularly important role in the activities of some sectors (e.g. Barrow in Cumbria and its role in the transport of nuclear materials from Sellafield)

Multimodal access to markets, which supports the supply chain between industries. This can play an important role in reducing the use of road transport, congestion and the associated costs

Connectivity for the movement of people between parts of the UK and internationally; this is an important aspect of the region’s tourism industry. Although travelling by ship is typically less time efficient than travelling by car or air, it has a lesser environmental impact.

Attraction of inward investment – the availability of ports can have an impact on foreign firms’ investment decision

Support for leisure cruising and related tourism activity. Issues / Constraints Range of environmental drawbacks from the operation of ports, including discharges and

emissions from cargo handling, noise pollution, etc – ports are often in close proximity to residential communities

Congestion and pollution on road access routes (although the use of ports can reduce total overall mileage)

A number of issues that could have an indirect impact:

• The region’s core cities have experienced strong employment growth in recent years and this has led to an increased take-up of employment land. In some parts of the region (e.g. land adjacent to the Manchester Ship Canal) this has led to competing demands for land which might previously have been freely available for port uses. • There will be significant changes in the patterns of economic activity by sector over the next couple of decades, releasing yet more previously developed land and changing the spatial and site-specific pattern of property demand. Some of this land may be in the immediate proximity to the region’s ports and provide scope for re-use for port related activities - a continuation of a trend which has been occurring in some locations, such as the Port of Liverpool, for a number of years. • The growth in higher-level skills in the workforce will tend to lead to longer commuting patterns and use of the car (other things being equal). This could contribute to increased congestion, although its impact on the access to the region’s ports might be limited. • Growing incomes, increased leisure activity and the popularity of waterfront locations has led to the development or proposals for mixed use development schemes on former port land. This trend is likely to continue especially where port land is freed up in the main urban areas (and hence demand for other uses is strong) How could the Local Development Framework respond For the framework to explore options in terms of how port expansion and transport of freight may affect the borough in terms of employment in logistics, manufacturing and administration sectors, transport impact etc and determine Wigan’s role in this sector. Implications for the sustainability appraisal Provides detailed / specific background information. May be useful for appraisal of more detailed plans.

Cross references (General) Cross Reference (Topic Reviews) Regional Economic Strategy

Table C5 Title Ocean Gateway – A Vision for the North West by Peel Holdings (Draft Prospectus) Proponent body Peel Holdings Status (e.g. statutory, non-statutory) Non-statutory Date produced 2008 Why is it relevant to the Local Development Framework? Ocean Gateway is a concept launched by Peel on the 5th September 2008 to drive economic prosperity in the Region. The Draft Prospectus describes Peel’s proposed £50 billion investment strategy for the North West of England to be phased over the next few decades.

Peel has a concentration of sites in an area over 50 miles long reflecting in large part:

• Its long-standing ownership of the Manchester Ship Canal and landholdings related to it • Its long-standing acquisition of Bridgewater Estates, including significant landholdings in the Worsley/Boothstown area • Its more recent acquisition of the lands owned by the Mersey Docks and Harbour Company at Liverpool/Wirral; and • Other land acquisitions which have sought to consolidate these substantial holdings – in Salford these include Manchester City Airport from Manchester City Council, land at Barton from United Utilities and others, green belt between the Barton strategic employment site from Land Improvement Holdings and local farmers, and most recently the Worsley Garden Centre.

The landholdings are extensive and Peel’s aspirations ambitious. “Through the Ocean Gateway, Peel is sharing ideas and attracting investment interest for its most significant projects in the area around the River Mersey and Manchester Ship Canal corridor”.

The Vision for the Ocean Gateway is:

“To maximise the potential of the North West as a globally significant region and major driver of the UK economy, using the Ocean Gateway as an economic powerhouse and environmental asset to enhance, strengthen and bring together the Liverpool and Manchester City Regions.”

Peel’s prospectus includes a number of sites in Greater Manchester, most notably in Salford, Trafford and Manchester but also in Rochdale and Wigan. A number of the projects highlighted are already emerging through Core Strategies, and some are currently in development in the planning system whilst others are more longer term aspirational initiatives.

The Prospectus provides an outline of which Ocean Gateway projects Peel intend to bring forward in the next 1-5 years.

Key messages, requirements, objectives

The full list of proposals are:

1. Mersey Wind Farms – (Sefton, Wirral, LCC?) 2. Royal Seaforth Post-Panamax Container Terminal – (Sefton) 3. Port of Liverpool Surface Access- (LCC, Sefton) 4. Switch Island – (Sefton) 5. North Liverpool Docks and River Terminal – (LCC) 6. Liverpool Waters – (LCC) 7. Princes Dock and Cruise Terminal – (LCC) 8. Birkenhead Docks and Twelve Quays – (Wirral) 9. Wirral Waters – (Wirral) 10. Woodside – (Wirral) 11. Cammell Laird – (Wirrall) 12. Bromborough Recovery Facility – (Wirral) 13. Eastham Waste Management and Biofuel – (Wirral) 14. Port Wirral – (Wirral) 15. Liverpool International Business Park – (LCC)

16. Speke Garston Coastal Reserve – (LCC) 17. Land adjacent to Liverpool John Lennon Airport – (LCC) 18. Liverpool John Lennon Airport – (LCC) 19. Liverpool John Lennon Airport Surface Access – (LCC) 20. Mersey Tidal Power – (Sefton, Wirral) 21. Merseyside Biomass - ? 22. Manchester Ship Canal – (MCC, SCC, Trafford through to Wirral) 23. Ellesmere Quays – (Ellesmere Port, Neston) 24. Pioneer Business Park – (Ellesmere Port, Neston) 25. Ince Resource Recovery Park – (Ellesmere Port, Neston) 26. Frodsham Deposit Grounds – (Vale Royal, West Cheshire) 27. Runcorn Waterfront – (Halton) 28. Bridgewater Canal and Way – (Halton and beyond (inc. SCC)) 29. Port Warrington – (Warrington) 30. Arpley Landfill – (Warrington) 31. Arpley Meadows – (Warrington) 32. Warrington Quays – (Warrington) 33. Woolston Deposit Ground – (Warrington) 34. Haydock Park – (St Helens) 35. Partington Village – (Trafford) 36. Carrington Wharfside – (Trafford) 37. Salford West and Wigan – (SCC, Wigan MBC) 38. Port Salford – (SCC) 39. Western Gateway Infrastructure Scheme – (SCC, Trafford) 40. Salford Forest Park – (SCC) 41. City Airport Manchester – (SCC) 42. Sports Village and City Reds – (SCC) 43. Trafford Quays – (Trafford) 44. Trafford Centre Rectangle – (Trafford) 45. MediaCityUK – (SCC) 46. Salford Quays- (SCC) 47. Trafford Wharfside – (Trafford) 48. Cornbrook and Pomona – (Trafford) 49. St. Georges and Castlefield – (MCC) 50. Scout Moor Wind Farm – (Rochdale)

Ocean Gateway is represented by three spatial reaches from west to east being the Liverpool City Region, Manchester Ship canal Corridor and Manchester City Region. The emphasis within the Manchester City Region includes the ‘western gateway’ of Salford, Trafford and parts of Wigan.

The Ocean Gateway projects fall into three thematic projects:

Transport and Logistics SuperPort:

• Commencement of construction of the Post-Panamax facility, as a key infrastructure investment for the North West supported by improved surface access both road and rail; • The Port Salford development as the UK’s only inland water way served rail freight distribution park, with progress also to be made on Port Wirral and Port Warrington; • Ongoing investment in the Liverpool John Lennon Airport Master Plan proposals including the Oglet World Cargo Centre and improved surface access, both site transport and the Eastern Access Transport Corridor.

Communities and Regeneration:

• Completion of phase one of MediaCity UK in 2011, the relocation of BBC departments and significant early wins through the clustering effect for a host of other media businesses at Salford Quays and Trafford Wharfside; • The transformation of surplus and under-used dock and canal side sites for economic and housing growth through Liverpool and Wirral Waters, with permissions in place in Spring 2010 to allow the projects to be championed to worldwide markets at the Shanghai Expo; • Major housing-led proposals for Ellesmere Quays, Runcorn Waterfront, Partington Village, Salford West and Wigan, Arpley Meadows and Trafford Quays, to create new

sustainable communities.

Sustainable Resources:

• The commencement of Ince Resource Recovery Park, bringing major innovations in the waste and energy sector to the region; • Proposals for the Mersey Tidal Power project will be consulted upon and applied for; • A major green infrastructure project at Salford Forest Park.

It should be noted that Government Office/NWDA are now widening the concept out to something now described as “Atlantic Gateway” within which Peel’s Ocean gateway proposals are said to sit. This appears to be a concept which might be described as “Peel Plus” – the 50 sites identified by Peel, plus other sites in other ownerships which might be put forward by other parties, both public and private. This is a response to early criticism that the Ocean Gateway concept was entirely focussed on sites in one ownership, and to have any strategic credibility needed to be widened out.

Guiding Principles and Objectives

According to the draft Prospectus, the Ocean Gateway is an integrated and shared approach under three guiding principles and a number of key objectives, as follows:

Guiding Principle Key Objective Marrying opportunity and • Boosting the economic strength of the North West need • Creating jobs for local people • Creating new communities • Enhancing quality of life and well being • Improving the culture, leisure and tourism Environmental innovation • Promoting low carbon growth • Providing sustainable solutions for energy, waste and water • Making best use of transport investment • Enhancing green infrastructure and biodiversity Working together • Partnering with the public sector and the third/voluntary sector • Integrating and sharing with established communities • Stimulating, and collaborating with, the private sector

The prospectus claims that each of the projects performs at different levels against most, or in some cases, all of the objectives.

Marrying Need and Opportunity

Boosting the economic strength of the North West: • Over £6bn annual Gross Value Added – Ocean Gateway can play a key role in driving the regional economy • High value growth in knowledge based industries – high profile sites such as Media City UK and Liverpool and Wirral Waters will play a crucial role in attracting major employers in key sectors such as digital media and financial and professional services • Investing in transport infrastructure • Stimulating economic renewal in areas of need

Creating jobs for local people: • 45,000 existing jobs • 100,000 potential additional jobs (including 15,500 at Media City UK at Salford Quays) many located in close proximity to areas with high levels of worklessness. • A range of employment opportunities – in sustainable locations and in a variety of sectors ranging from traditional sectors such as maritime, the growing retail and leisure sector, and higher skilled employment in media, aviation, environmental technology and financial and professional services.

• Raising employment rates in deprived areas • Attracting and retaining higher skilled workers

Creating new communities: • Over 73,000 new homes across 4 Growth Points (including 3000 in Salford West/Wigan) • Sustainable neighbourhoods • Meeting different housing market needs • Innovation and quality for the 21st Century

Enhancing quality of life and well being: • Improving life chances • Infrastructure for healthy living • Healthy, safe and attractive places to live, work and play

Improving the culture, leisure and tourism: • Existing regional destinations – e.g. Trafford Centre and Salford Quays • Planned regional destinations – including the further growth of Liverpool John Lennon Airport and the cruise liner market linking the Port of Liverpool with worldwide destinations. • City waterfronts – Projects at Liverpool and Wirral Waters, Media City Uk at Salford Quays, Trafford Wharfeside, Pomona, Cornbrook, St. George’s and Castlefield corridors will help Liverpool and Manchester compete against the most well recognised successful waterfronts in the world e.g. Vancouver and Shanghai. These projects will include major cultural attractions to complement the existing e.g. Imperial War Museum and Lowry Centre.

Environmental Innovation

Promoting low carbon growth: • low carbon locations for growth • Innovation in low carbon built development • Global freight via low carbon local ports

Promoting sustainable solutions for energy, waste and water: • Investment and innovation in waste (including the promotion of a regional waste cluster at the Ince Resource Recovery Park) • Investment and innovation in renewable energy, including wind farms and tidal power (utilising the tidal power of the River Mersey) • Sustainable uses of land and water, including trialling the land for biomass and cleaning up or remediating sites for development.

Making best use of transport investment: • An accessible gateway, including programmes of planned investment to enhance existing air, road, rail and water networks. • Growth in sustainable, accessible locations – investment within Ocean Gateway will play a significant role in maximising the use of sustainable forms of transport and thereby make best use of infrastructure assets. At the highest level, this concentration of transport infrastructure means that the Ocean Gateway can be seen as a location for much of the housing and economic growth required, whilst also regenerating deprived areas. • Managing transport demand – many schemes deliver a mix of complementary uses, both within projects and linking into surrounding areas, which minimises the need to travel. • Investing in sustainable freight transport – seeking to ensure that great proportions of freight are transported using water and rail infrastructure in the Ocean Gateway area. • The importance of aviation

Enhancing green infrastructure and biodiversity: • A diverse entity • Fragmented, untapped resources – realising the potential of the existing high quality heritage areas, wildlife areas, canal networks, and mixed habitat nature reserves.

• Towards an ‘Ocean Gateway Regional Park’ – many of the projects will make significant contributions to the green and blue infrastructure of the region, whilst safeguarding and improving biodiversity. The Prospectus identifies the potential to link four existing Regional Parks, including Wigan Greenheart, together through the Ocean Gateway. A new ‘Ocean Gateway Regional Park’, promoted and supported by the Regional Authorities, Forests, Peel and other landowners and community groups, to provide essential green linkages and to create a parkland setting for the strong housing and economic growth initiatives coming forward, could greatly reduce some of the existing fragmentation and enable the whole to total much more than the sum of its parts. • A notable project, with implications on Wigan Borough, is the Bridgewater Canal and Way, which provides a continuous link between the Wigan Greenheart Regional Park and the Weaver Valley Regional Park as well as numerous points of access into the Ocean Gateway area. The Bridgewater Way project, being jointly promoted by Peel with Local Authority partners, and support from other stakeholders, will create a 65km leisure route for walkers and cyclists, connecting communities, landscapes and habitats.

Working Together

Working in partnership with the public sector and the third/voluntary sector: • Working across local boundaries • Partnering with regional agencies and government • The role of the third/voluntary sector

Integrating and sharing with established communities: • Investing in 9 deprived communities, including parts of West Salford / Trafford / Wigan • Working with communities to tackle deprivation

Stimulating, and collaborating with, the private sector: • Attracting investment and highly skilled workers • Embedded in the business core of the Region • Complementing and stimulating investment • A key opportunity in an economic downturn

Opportunities • To work closely with Peel to enable the successful delivery of sustainable developments on Peel-owned sites within Wigan Borough. • the list of projects includes many which have the prospect of driving forward city regional growth. •

Issues / Constraints

• There is no evidence base (and few stakeholders) to support the Atlantic Gateway concept as a key priority driving the region forward over the next 20 years

• If a corridor approach is pursued it will be important to clearly understand what this would mean for public investment. The dangers are many as it could: o detract focus from completing the task of creating strong city regions which are already evidenced as a core drivers of regional growth; o undermine the efforts to deliver carbon efficiencies; o spread existing mainstream resources across a wider area; o be contrary to MIER’s emerging findings of the benefits of agglomeration; o exacerbate environmental sustainability problems including congestion; o undermine regeneration efforts within the city region

• Argument that housing projects should be considered on a sub area or city region by city region basis as housing markets do not operate coherently across a corridor stretching from Liverpool to Manchester.

How could the Local Development Framework respond Carry out detailed discussions with Peel Holdings on their intentions/proposals within Wigan

Borough, and on those outside the borough which have indirect implications and align with policies in Core Strategy.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Housing

Table C6 Title North West Utilities Infrastructure Study Proponent body North West Development Agency Status (e.g. statutory, non-statutory) Non-statutory Date produced August 2008 Why is it relevant to the Local Development Framework? The North West Utilities Infrastructure Study identifies opportunities and constraints of utility infrastructure in the North West. The Local Development Framework can help to address these issues.

Key messages, requirements, objectives

The provision of utilities infrastructure and their capacity remains a key concern for both the public and private sector in the North west. Whilst current capacities as a whole across the region are relatively good – notably if compared to other English regions – there are some areas which need to be addressed to ensure that the current planned future development and economic growth in the region can be delivered.

Potential utilities constraints in the North West:

Electricity

There appears to be particularly high utilisation rates in the EMW network for substations in the following areas at either Grid Supply (132 kV) or Primary (33kV) substation level:- • parts of Central and Western Cumbria (132kV) and a small part of South- East • Cumbria (33kV) • parts of the Fylde Coast (both 132kV and 33kV) • the Lancaster area (33kV only) • parts of Greater Manchester (both 132kV and 33kV) • the Warrington area (both 132kV and 33kV) • part of North Cheshire (132kV only) • South and Central Lancashire (33kV only)

From the above information it appears there are potential issues for the following areas of planned major development:- • Greater Manchester - Growth Point and HMR areas, and Strategic Regional Sites • at Barton, Carrington and Central Park • Fylde Coast and Lancaster area - Growth Point and HMR areas, and Strategic • Regional Site at Bailrigg • Central Cumbria and parts of West and South Cumbria - Growth Point, and • Strategic regional sites at Kingmoor and Westlakes (Whitehaven) • Warrington area - Growth Point area and Strategic Regional site at Omega South • South and Central Lancashire - Growth Point and Strategic Regional Sites at ROF • Cuerden and Chorley

Gas

In the absence of any information on capacity being provided by National Grid, the Study Team were unable to make any analysis of the North West network's ability to respond to future planned growth.

Potable Water

In general UU consider that the potable water trunk distribution network in the North West has adequate capacity, subject to some shortfalls in isolated areas. UU

acknowledge that there are restrictions and limitations at the sub-regional and local level, but that these cannot be realistically identified with the information provided.

The key area of concern in the North West for UU is the West Cumbria and Carlisle Resource Zones, both of which are quite sensitive to any major changes in supply and demand, with the later close to going into deficit.

Wastewater

UU have limitations on wastewater treatment capacity in several areas. In addition much of the sewerage system is of Victorian vintage with severe capacity limitations, which are further exacerbated by liabilities on environmental improvements and restrictions on the network.

The areas of key concern area appear to be parts of the Fylde Coast in terms of wastewater treatment to cope with current and future demand, and south & west Manchester to cope with any further growth in demand; in addition there are issues in Manchester with the Victorian-era combined wastewater/stormwater system. Some localised issues also arise in parts of Lancashire, namely the Ribble Valley and the Preston area.

Telecommunications

There are no particular pressing geographic issues, although there is a need to ensure that NGN roll-out does not disadvantage any of the North West sub-regions as compared to the others and enables regional centres to compete with European knowledge destinations.

Opportunities

There are some features of the North West’s current utilities situation which could act as a benefit to the region’s economic development:-

The development of renewable energy technologies and production The North West region has a long-established concentration of the UK's specialist companies, facilities and staff in the nuclear sector, and it is recognised that these existing strengths and assets, combined with significant potential natural assets in renewable energy generation are of national and international importance. West Cumbria - "Britain's Energy Coast" - could provide a unique contribution to both Europe and the UK’s short and long term policy goals, transforming its own economy in the process, and to develop a leading sustainable approach to future energy planning and consumption.

Opportunities for the roll-out of newer technologies The region has made excellent progress in the past decade in the roll-out of newer telecommunications technologies - for example NWDA's 'Project Access' - which has left the region for now in a good relative competitive position. Concerns were expressed that the region may suffer competitively if the roll-out of the next generation of telecommunications (NGNs) was not progressed more quickly, in particular in light of the faster rate at which these were being progressed in other parts of the UK (notably in the South East) and across Europe.

Building on existing skills strengths The region has a concentration of utilities-related skills, with particular expertise in the nuclear sector and an emerging concentration in renewable technologies. Existing DNOs have reported issues with recruitment and retention of staff, and have stated their willingness to work with public sector partners to try to address these. There is clearly a potentially mutually beneficial set of actions and arrangements which could be put in place to augment the region's existing strengths and increase existing competitive advantages.

Utilities capacities Whilst there are some key concerns for specific utilities in specific locations, these are relatively few and are confined to certain parts of the region rather than abundant and widespread, especially when compared to some other English regions - for example

water issues in the South and East. This should be seen as a positive for the region, and a potential strength to build upon.

Issues / Constraints Age of utilities infrastructure The North West was one of the first regions in the UK to invest heavily in utilities infrastructure. As a result some of this infrastructure is now approaching or at the end of its usable life, and requires considerable investment for it to cope with anticipated levels of planned demand and, in some cases, to cope better with existing levels of demand.

All of the respective utilities companies have invested heavily in upgrading their network assets but it is likely that a considerable amount of further investment will be needed to meet the demands of planned major investments in the region, and to ensure that the region remains competitive with other UK and European regions.

Unique network architecture in the SP Manweb area The former MANWEB area has a network architecture which is unique and quite unlike the 'standard' network architecture found in the rest of the North West region and other regions across the UK. This type of network architecture was designed to have positive attributes - namely a much higher utilisation of transformer capacity and a higher degree of security of supply - but less positive attributes, the key one being that the costs of developing, managing and maintaining it are substantially greater (approximately 5 times). This means that the costs of delivering development projects in the SP Manweb area could be proportionally higher, in particular network reinforcements.

Asset sweating Some of the region's DNOs have recently seen their performance levels either drop against previous performance or fail to meet UK benchmark targets on indicators that could be related to the degree of asset sweating - for example unplanned interruptions to service and leakages. the use asset sweating is not unique to the North West, but when added to other factors that seem to be specific to the North West region - notably relating to the timescales for delivering increased capacity - it could putting the region at a competitive disadvantage, in particular if other regions have the ability to respond more quickly to additional capacity requirements than the North West is able.

Two electricity networks and two DNOs The North West region is unique amongst English regions in having electricity distribution networks operated by two different companies. This provides an additional layer of confusions for key stakeholders who already have limited knowledge and understanding of the utilities market and how it operates. These factors could be magnified on the SP Manweb network, where potential entrants to the market may feel that the costs of upgrading or standardising the network, plus the cost of acquiring the specific skilled staff to operate the network, cannot be recovered through the potential for revenue generation.

Competition in the utilities marketplace Evidence provided by Ofgem, BERR and the DNOs themselves suggests that competition in those sections of the utilities markets that open to competition is relatively good in the North West region compared to other English. Having said that, competitively-provided connections still represent an equally relatively low proportion of all connections provided in both the region and across the UK3. Ofgem has expressed disappointment that the level of market competition has not grown quite as much as expected over the past 10 years.

There was a strong view from end-consumer consultees that the North West does not have genuine competitive choice when it comes to delivering some major utilities infrastructure, in particular electricity, and notably in the former MANWEB area.

How could the Local Development Framework respond By addressing infrastructure opportunities and constraints in the Core Strategy and other Development Planning Documents.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Sub Regional

Table D1 Title Greater Manchester Economic Development Plan 2004/05 – 2006/07 Proponent body Manchester Enterprises Status (e.g. statutory, non-statutory) Statutory Date produced Why is it relevant to the Local Development Framework? The Economic Development Plan provides a framework to connect and deliver national, regional and local priorities within Greater Manchester. The Plan is influenced by national strategies and policy frameworks covering competitiveness, skills, urban renaissance and sustainable communities. It also reflects the Government’s Neighbourhood Renewal and Welfare to Work agendas, and will help deliver against the national Public Service Agreement (PSA) floor targets and other targets within the Regional Economic Strategy as well as responding to the existing Greater Manchester Strategy. Key messages, requirements, objectives A key priority in developing the Plan has been to review other sub-regional strategies and plans, streamlining and rationalising these where possible. The analysis has also identified linked policy areas which impact on economic growth, such as transport, tourism, health, crime, education and statutory planning and land use which are considered in the Greater Manchester Strategy rather than in this Plan. Opportunities • Regional Centre – The core of the conurbation forms the strongest Regional Centre in the UK, employing around 160,000 people, and is the largest and fastest growing employment area in the North West. • World class universities – A world class HEI cluster, including the largest university in the UK, with the merger of Manchester University and UMIST, will help to ensure that Manchester: Knowledge Capital has the potential to drive forward the economic performance of the North West as a whole. • Knowledge economy – Nearly 700,000 people are employed within Manchester: Knowledge Capital’s priority sectors, with particularly strong concentrations in the conurbation core. • Strong financial and professional services sector – Manchester is the largest and fastest growing centre for financial, professional and legal services outside of London. The conurbation has achieved both high levels of inward investment in shared service centres while also attracting major legal, insurance and investment businesses. • Health – The health and medical research sector provides a link between the internationally renowned academic facilities within the University of Manchester and major health services, research and teaching facilities at the core of the conurbation. The sector is also a major employer, with around 120,000 staff across Greater Manchester, a budget of £3 billion in 2005 and a major purchaser of goods and services. With investments including the new UK biobank, and bio-incubator, research networks across the conurbation on genomics and commercial links with AstraZeneca and GSK, the area is well placed to become the national leader in biomedical innovation. • Science base – The broader city-region has a significant physics and chemical research and commercial base, with major academic research capacity in material sciences in Manchester and Salford, advanced light source research in Cheshire and one of the largest private sector research and development programmes in Cheshire and extending into Merseyside. • Cultural, sporting and visitor infrastructure – The BBC and Granada in central Manchester form the hub of a growing media sector that is second only to London in size and significance. Major sporting, conference, exhibition and concert venues alongside significant arts, museums and visitor attractions have established Manchester as the second most visited city outside London. • Connectivity – Manchester Airport is a key asset for the conurbation, the nation’s third largest airport with the potential to become a truly international hub. Aside from the Airport, the conurbation has an orbital motorway; sits on the West Coast Main Line for national and international freight and passenger rail connections into London and Scotland; the trans-Pennine motorway and railway linkages underpinning the North European Trade Axis running from the Mersey to the Humber ports; the largest heavy rail network outside of London; and the UK’s most successful light rail system in the

Metrolink network. Greater Manchester is also the second most important hub for broadband infrastructure in the UK, with the UK’s only international internet exchange outside of London. • People and Place – The area has a strong reputation for innovation and entrepreneurship, with strong civic leadership alongside to harness the creativity that exists. Greater Manchester now enjoys an image of a modern, creative, and multicultural city-region. The combination of cultural and sport assets, affordable housing, and economic opportunities offer the high quality of life needed to make Greater Manchester a leading place to live and work. Issues / Constraints • Skills – There is a need to strengthen the resident skill-base for those in work and those seeking employment or changing career if we are to achieve the full economic and social potential of Greater Manchester as a major force in the global knowledge economy. Employers need to be actively engaged in training their own employees alongside initiatives to attract and retain talent including graduates, getting them into key occupations to grow the area’s population and to strengthen the local skills base. We need to train far more young people in critical skill priority occupations at NVQ levels 2, 3 and 4. • Increasing value added – Although employment in manufacturing has declined across the conurbation, GVA in the sector has not decreased over the last five years showing that labour productivity within the sector has been improving. The challenge remains to assist businesses outside existing growth hot spots to move up the value chain, exploiting high-level skills and new technology to become more competitive in global markets. Additionally, new firm formation and sustainability of companies are below national levels and half the rate in London so more effective support for new businesses is essential. • Spreading the benefits – Taking action to grow the knowledge economy across the whole of Greater Manchester will help to reduce the polarisation that currently exists across the conurbation. A key part of this will be to integrate better the skills, employment, business development, transport, regeneration, health and environment agendas; particularly programmes which occur in similar areas of activity but are driven by different authorities/agencies/funding lines. The transport infrastructure, while a major asset, also presents significant challenges for the future because of congestion, fragmented local public transport, under-investment in the rail network and funding for the Metrolink expansion. Better connections will be required to help bring people and job opportunities closer together. • Increasing participation in work – Greater Manchester has a significant legacy of people who are inactive in the labour market, often concentrated in small areas and when combined with other social and economic problems, giving rise to some of the most deprived areas in the country. Youth unemployment is a particular issue, with the proportion of 16-24 year olds amongst Greater Manchester’s unemployed increasing faster than the regional or national averages between 1996 and 2004. Ensuring that young people can participate in the economic and social development of Greater Manchester will be a particular feature of the Economic Development Plan. How could the Local Development Framework respond • For the Core Strategy to the key opportunities such as health, provision of cultural sporting and visitor infrastructure, connectivity and people and places etc. Implications for the sustainability appraisal Provides background information. Appraisal framework should reflect the key issues. Cross references (General) Cross Reference (Topic Reviews) • Moving Forward – the Northern Way • Regional Spatial Strategy for the North West • Greater Manchester City Region Development Plan • Greater Manchester City Strategy • Greater Manchester Skills Priorities 2006 • City Region Development Plan 2005 • Wigan Economic Development Plan

Table D2 Title Greater Manchester City Region Development Programme Proponent body Manchester Enterprises Status (e.g. statutory, non-statutory) Date produced 2006 Why is it relevant to the Local Development Framework? This City Region Development Programme has been developed within the context of a number of plans and strategies, including the Northern Way, and in parallel with the revision of the North West Regional Economic Strategy, Regional Spatial Strategy, Regional Transport Strategy, Regional Housing Strategy and the Regional Sustainable Development Framework which underpins each of these strategies. Key messages, requirements, objectives The vision, set out in the Greater Manchester Strategy, has been adopted for the wider city region and states that by 2025 the Manchester city region will be:

“A world class city-region at the heart of a thriving North” Opportunities • Opportunities for accelerated economic growth

The plan’s vision includes:

• One of Europe’s premier city regions, at the forefront of the knowledge economy, and with outstanding commercial, cultural and creative activities; • World class, successfully competing internationally for investment, jobs and visitors; • An area where all people have the opportunity to participate in, and benefit from, the investment and development of their city; • An area known for, and distinguished by, the quality of life enjoyed by its residents; and • An area with GVA levels to match those of London and the South East.

Issues / Constraints • £29 billion output gap between North and the rest of the UK. • Current performance of the city regions, including the best performing ones such as Manchester and Leeds, is still not sufficient to drive the economy of the North at a pace fast enough to bridge the output gap. • The Manchester City Region is not a homogenous area but a diverse mix of high value and performing economic centres adjacent to some of the most deprived communities in the country. • Despite falling unemployment the city region has disproportionate numbers of people that are economically inactive and excluded from mainstream employment support services. • There are many groups who are not currently participating in the labour market because of skills and employment barriers, whilst a large number of vacancies remain unfilled across the conurbation. • The majority of wards across Greater Manchester have a lower share of high level qualifications, falling to below half the national average across large parts of the conurbation. • Almost a fifth (17%) of the city region’s working age population have no qualifications at all and the Learning and Skills Council estimates that 420,000 people in Greater Manchester and 100,000 people in Cheshire need to improve their basic skills in reading, writing and numeracy. • The full potential of the rail network being under-utilised due to a lack of rolling stock and limited track and signalling capacity; the frequency, reliability, coverage and integration of bus services being insufficient for them to be seen by many people as a genuine alternative to the car; poor public transport serving many parts of the most deprived and rural communities meaning many residents find it difficult to access jobs outside their immediate neighbourhood.

How could the Local Development Framework respond • What should we do in response to these requirements, aims and objectives? • How could we respond to opportunities, issues and constraints? • What themes or objectives should be included in the Local Development Framework

and identify which documents it should be applied to (i.e. Core Strategy, Wigan Central AAP) Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) • Moving Forward – the Northern Way Housing • Regional Spatial Strategy for the North West • Greater Manchester Economic Development Plan 2004/05 – 2006/07 • Greater Manchester City Strategy • Greater Manchester Skills Priorities 2006 • City Region Development Plan 2005 • Wigan Economic Development Plan

Table D3 Title 2008-09 Greater Manchester Skills Analysis and Priorities Proponent body Manchester Enterprises Status (e.g. statutory, non-statutory) Non-statutory Date produced February 2008 Why is it relevant to the Local Development Framework? The purpose of this document is to draw on recent research carried out by Manchester Enterprises (ME) and others in order to identify the main learning and skills priorities for Greater Manchester (GM) and the wider Manchester City Region (MCR). The report has been produced to help employers to plan; to inform LSC commissioning and negotiation with providers; and to present guidance to education and training providers and others about the skills required by the GM economy now and in the near future.

The report is primarily economic in focus and therefore concentrates on more immediate occupational and vocational skills issues, with a strong sectoral emphasis. However, it also notes the important issues which GM faces in terms of the basic and generic skills of the adult workforce and the need to ensure that young people are as well-prepared as possible for the transition to employment. For this reason, the document will also be used as the basis for dissemination of labour market information to those advising young people and adults about careers and learning options. Key messages, requirements, objectives GENERAL PRIORITIES Overall: ƒ Continuing to encourage and support employers to identify and address the current and future skills requirements of their workforces, as a key contributor to business and broader economic development; ƒ Reversing the decline (since at least 2003/04) in the volume of more occupationally specific course starts; ƒ Making the most effective use of Train to Gain (formerly the Employer Training Pilot), with the associated brokerage network, and the Level 3 Trial, to address GM skills issues. ƒ Matching other skills provision (including Centres of Vocational Excellence and Skills Academies) more closely to the needs of the economy, especially at Levels 3 and 4, and giving higher priority to employer demand/economic need over individual learner preferences, especially where there is evidence of comparative low employer demand for the skills in question and/or where attainment levels and progression into the relevant occupations are low; ƒ Taking action to address the Government’s new (post Leitch Report) target of 40% of adults qualified with Level 4 and above by 2020 by developing more flexible, employment oriented and work-based courses at Level 4 and above and developing progression routes to such Level 4 opportunities from Level 3; ƒ Prioritising on a needs basis with the HE and FE sectors the development of Foundation Degrees (part and full-time) and other part-time and modular work based provision for occupations with the highest priority, and complementing this with Professional Apprenticeships and additional NVQ4 provision; ƒ Reprioritising current mainstream LSC resource for Level 3 qualifications from non- vocational to vocational provision and increasing provision for the 19+ age group, particularly in the City Region’s accelerator sectors (as set out in the Manchester City Region Development Programme 2006); ƒ Increasing adult provision for career changers, including those at risk of redundancy from declining manufacturing industries (including provision accessible whilst employees are still in work – evening/weekends – to limit risk of unemployment); ƒ Reviewing the mode and mix of provision relating to specific sectors and occupations to ensure it is better geared to employer needs; • Developing arrangements to better track progression from FE courses to ensure that scarce training resources are used as effectively as possible to meet the needs of the economy; and ƒ Developing arrangements to better track progression from FE courses to ensure that scarce training resources are used as effectively as possible to meet the needs of the economy. ƒ Raising motivation and aspiration of young people and adults so that they feel empowered to access new job opportunities.

Young People: • Continuing to improve educational attainment levels • Increasing the numbers qualifying in Maths, Sciences and Foreign Languages • Addressing gender stereotyping at all levels • Improving Skills for Life, first steps learning and generic employability skills • Developing enterprise and entrepreneurial skills • Helping young people to fulfil their potential and make a successful transition to work through more and better vocational experiences from an earlier age, and through better careers education and guidance • Capitalising on the planned expansion of Apprenticeships in order to address the needs of the local economy; • Enabling more young people (including graduates) to progress into Level 3/4 occupations • Retaining in the sub-region more of the GM universities’ graduates • Engaging more effectively with employers to support this agenda

Adults: • Continuing to promote and drive the achievement of generic employability skills, Skills for Life qualifications, and first steps learning experiences; • Enabling more of the economically inactive (including the over 50s) to play a part in the GM economy; • Developing enterprise and entrepreneurial skills (including for the over 50s); • Targeting such activity (e.g. in relation to Incapacity Benefit claimants) on concentrations of greatest incidence; • Helping people to develop transferable and new skills to take up jobs in skills shortage areas; • Introducing a Career Changers Level 2/3 Programme to enable employed people to move into skills shortage occupations; and • Building on the Leitch Report recommendations and associated Government decisions to develop stronger labour market information and adult careers advice and guidance arrangements to underpin a more demand-driven approach to the funding of adult education and training.

Occupational/Sectoral Priorities The immediate sectoral priorities, based on an analysis of future skills demand against current LSC-funded supply and consultation with key partners are: • Increasing provision for: o Some Financial and Professional Services occupations, especially credit controllers and call centre agents and operators o Retail and Wholesale Managers o Chefs • Reducing and refocusing provision for: o General media studies o Plumbers o Motor mechanics, auto engineers o Vehicle body builders and repairers, spray painters o Artists, actors and entertainers, dancers, musicians o Product, clothing and related designers o Nursery nurses, playgroup leaders and assistants, childminders and related occupations o Hairdressers, barbers o Beauticians and related occupations • Introducing more (sectorally tailored) general business skills training for micro businesses in sectors such as ICT Digital / Communications and Creative / Digital / New Media; • Reviewing LSC funding eligibility rules to consider funding some qualifications currently excluded in GM which are highly relevant to important occupations and which, in some cases, are funded in other LSC areas; and • The LSC, ME and other partners to review in greater detail the supply and demand for the closely related areas of Sport, Health and Leisure, where there is an apparent oversupply and where Government aspirations re the Olympics and Health/Obesity agendas are in danger of fuelling unfocussed growth.

Opportunities

Issues / Constraints Main GM educational / young people skills issues • Overall participation and attainment levels are improving but from a baseline below national averages; • Weak performance in English, Maths and Science at Key Stage 4; • Nearly half of young people in GM leave school without Level 2 or equivalent qualification; • Employer concerns about young people being poorly prepared for work, with poor generic and employability skills; • One tenth of 16-18 year olds within Greater Manchester are not in Employment, Education or Training, and pockets of high youth unemployment; • Low levels of progression into traditional higher education in the conurbation core; • Scope for greater retention within the sub-region of graduates from local universities; and • Occupational gender stereotyping. Main GM workforce skills issues • Population profile ageing; • Estimated 420,000 residents with poor literacy and numeracy; • Over a fifth of adult population with no qualifications; High levels of worklessness; • Concentration of low skills and worklessness in particular areas/wards; • Growing mismatch between the sub-regional qualifications base and the future requirements of the sub-regional economy; • Many graduates under-employed in Level 1/2 occupations; • Increasing requirements for generic skills such as communication, dealing with numbers, using computers, working in teams, planning etc. at all levels of employment; • Labour shortages, where increased demand for people in unskilled and semi-skilled occupations cannot be met by the supply of people, e.g. because of lack of generic skills; • Under representation of ethnic minorities in Work Based Learning; and • Continued pockets of serious disadvantage, social exclusion, and low activity rates affecting geographical areas and specific groups, including ethnic minorities and the emergence of the underachieving young white male “underclass” How could the Local Development Framework respond To ensure that options for employment land and premises are informed by the need to match jobs with local community needs. Implications for the sustainability appraisal

Provides detailed background information. May be useful for appraisal of specific policies or plans.

Cross references (General) Cross Reference (Topic Reviews) • Moving Forward – the Northern Way • Education and learning • Regional Spatial Strategy for the North West • Greater Manchester Economic Development Plan 2004/05 – 2006/07 • Greater Manchester City Strategy • City Region Development Plan 2005 • Wigan Economic Development Plan

Table D4 Title Demand for Employment Land in Greater Manchester Study Proponent body Association of Greater Manchester Authorities (AGMA) Status (e.g. statutory, non-statutory) Non-statutory Date produced May 2006 Why is it relevant to the Local Development Framework? The study was commissioned to:

• Determine the spatial implications of employment forecast for Greater Manchester • Determine the location requirements of market sectors • Provide a geographical representation of Sector demand across Greater Manchester

The Study was intended to inform further work on determining whether Greater Manchester has the right quality employment sites in the right location to accommodate projected employment growth.

The Oxford Economic Forecast model was used as base information source for projected employment growth data. Spatial implications were considered under both reference and optimistic (which assumed an additional 2.8% growth in Gross Value Added) scenarios. The projected employment growth within each business sector was translated into floor space and then land uses extrapolated under: Office (B1); Manufacturing (B2) and Distribution (B8). In order to cross check these assumptions a comparison was made with the land take that had been evident historically for each land use. This data was extract from the NW Employment Land Study (2005). It was noted that caution was needed to be applied to the comparison because historical data was a gross figure that included supporting infrastructure (e.g. amenity space, access roads) whereas the projections derived from employment growth, were net figures.

Key messages, requirements, objectives Supply of industrial and distribution accommodation is somewhat constrained in southern and eastern parts of the sub-region. The majority of new accommodation in these areas is coming through redevelopment of traditional industrial and distribution locations dotted around the M60 such as Trafford Park and Stone Cross Park in Wigan

Employment projections identify that Greater Manchester North (Bolton, Bury, Rochdale, Oldham and Wigan) is predicted to grow between 1% and 5% and Greater Manchester South by 11% and 18%.

Wigan has one of the lowest vacancy rates in the sub region at 7.67% (2003/2004)

On average over the last few years, the greatest volume of employment land has come forward in Wigan (25 hectares), with the lowest in Bury (3 hectares) Opportunities Churn of employment sites driven by the demand for residential development, has led to increased demand in what were previously considered to be secondary locations such as Wigan, Bury and Rochdale where land and premises remain more cost effective. In addition, the completion of the M60 has led to a pattern of increased dispersal in this sector. Increasing evidence for demand in Wigan (where the West Coast Main Line, M6 and other major roads converge); for Finance, professional ICT Digital services

There are existing high concentrations of logistics business in Wigan and Rochdale reflecting their strategic locations for the sector, which are likely to remain.

Wigan is the seat of the North West Regional Assembly as is also likely to benefit to some extent from additional public sector employment growth.

RPG13 Spatial Development Framework establishes a structure for the concentration of development and urban renaissance resources across the North West region, with a particular focus on the Cities of Manchester and Salford Cities as regional poles, followed

by other centres (including Ashton-under- Lyne, Bolton, Bury, Oldham, Rochdale, Stockport and Wigan) that will have priority for development and regeneration. The study confirms that there is a need for an extensive mix of property and sites across Greater Manchester to ensure market demand is met. Consideration should be given to protection of sites that are not on the scale of strategic investments sites in terms of land take but are nonetheless viewed as critical to the growth needs of Greater Manchester. The identification of such sites of special economic significance should be an integral part of the evaluation of the quality of the supply portfolio. Skills factors are especially important to the knowledge-based sectors such as financial and professional services, healthcare/biotech and environmental technologies and labour intensive sectors such as manufacturing/engineering and contact/shared service centres. Ensuring that the workforce of Greater Manchester has the correct balance of skills and knowledge is therefore as critical as providing the right property product. Demand for office floorspace is driven by the availability of property needs rather than the availability of developable land. Therefore securing the right range and quality speculative development is critical to maintaining a ready supply of office accommodation for the sub region. There is evidence that the demand for distribution space (B8) up to 2021 would to be more than met by development that either underway, proposed or in the pipeline. Employment decline in the manufacturing sector suggests that up to 477 hectares of industrial land will no longer be needed. This would be a reduction of 28% by 2021. However, this does not mean that there will not be a requirement for new sites for this sector. Issues / Constraints Wigan is over-represented in the food products; textiles and leather; other mineral products; and constructions sectors. The Borough does, however, have less employees in utilities and several of the Business Service sectors, with the overall figure for this key sector being a quarter below the national average.

Projections suggest that, based on historic take up rates of 25.41 hectares per annum, Wigan requires 406.6 (487.9) hectares of B1, B2, B8 land during the period 2005 – 2021. An approach that focused solely on interventions to bring forward strategic investment sites to meet projected demand in Greater Manchester may not provide the necessary flexibility to meet market needs and realise the growth potential of the sub region. Assuming even the highest forecast demand for office accommodation, the development pipeline suggests that there is sufficient quantity of site for 19 years for office accommodation. However, it will not be known whether those sites are the right quality and in the right location to meet sector demand until more is known about the supply of sites in the sub region. Existing premises, which do not meet the requirements of modern manufacturing and engineering businesses, will continue to be sought by residential and other developers and occupiers to seek to realise their maximum value. This will create significant churn within the market through relocations. The likely scale of relocations is not known and needs to be determined in order to make adequate provision for new sites. The extent to which the sub region has the right property/sites in the right location will ultimately be determined by the follow on work on employment site supply. This will also inform the interventions needed to better align supply with demand.

The borough has an identified shortfall of up to 91 hectares of employment land during the plan period 2001 - 2016 How could the Local Development Framework respond For the Core Strategy and Allocations and Infrastructure DPD to: • Ensure that changes in industrial land use patterns are addressed through adequate land provision. • Ensure that there is enough flexibility in planning policies and allocations to ensure that any changes in land and premises requirements can be met. • Help contribute to a balanced economy in the borough. • To ensure that the provision of employment land encourages reduced need to travel to work.

Implications for the sustainability appraisal A monitoring framework will need to incorporate indicators in the: • Annual Monitoring Report • Wigan Economic Development Plan monitoring framework Cross references (General) Cross Reference (Topic Reviews) • NW Employment Land Study (2005) • The Manchester City region Knowledge Economy Report

Table D5 Title The Manchester City Region Knowledge Economy Report Proponent body Manchester Knowledge Capital, Manchester Enterprises, AGMA Status (e.g. statutory, non-statutory) Non Statutory Date produced 2006 Why is it relevant to the Local Development Framework? This report provides a baseline assessment of the MCR knowledge economy. The big three concepts that MCR stakeholders are seeking to unify through integrated strategies and partnerships are: the city-region, the knowledge economy and sustainable development.

The author of this report, Local Futures, has produced similar city-region reports for Glasgow, Edinburgh, Cardiff and the Three City Nottingham-Derby-Leicester partnership, as well as London. Key messages, requirements, objectives The main aims of this report are:

• To promote a shared understanding of the knowledge economy agenda for MCR stakeholders • To assess the MCR knowledge economy, benchmarking its position relative to other major city-regions and nationally • To identify strategic directions for the MCR knowledge economy for consideration by the sponsors of this report.

Key message:

That Greater Manchester will experience growth in the knowledge economy sectors. Opportunities • Forecasters expect the North West to follow national trends, with ‘knowledge workers’ predicted to make up more than 40 percent of the region’s labour force by 2014 (the figure for London is around 60 per cent). Financial and business services are expected to be the main sector driving knowledge employment growth in all regions of Britain. • Reinforcing this, forecasters believe that more intense global competition, accelerated innovation and the wider diffusion of ICT will combine to generate more highly skilled jobs across the entire country. • Metropolitan dominance is a major feature of the knowledge economy and therefore the Manchester City Region provides a suitable structure for growth with city regions are now being seen by many economic geographers and economists as the emerging flagships of national knowledge economies. • City regions the best structure to achieve economic competitiveness and it is believed that city regions as an organising framework can enable the development of sustainable and competitive knowledge economies outside London • Manchester City Region has been referred to the ‘powerhouse’ of the North. – with the largest contribution to national productivity/GVA outside London and the South East. Manchester City Region, alongside Leeds, has made the greatest economic progress and according the Northern Way group “appear to have the momentum and capacity to develop into European level competitive cities in the short-to-medium term”. With the progress already made by MCR, it has been suggested the city region act as a ‘pathfinder’ for other northern city regions. • Manchester City Region has a strong higher education (HE) sector. The 4 universities include the University of Manchester with a particularly strong academic reputation – being named Sunday Times University of the Year 2006 and ranking 15th in the academic league table in the UK. M:KC regards the HE sector and its world-class research as a key asset to Manchester City Region’s knowledge economy and to the science city programme. The partnership is also developing a graduate retention strategy, keeping highly skilled individuals in the area. • Manchester’s stakeholders have the opportunity to incorporate sustainability in to strategies for the city region before problems become irreversible and to create a niche as a ‘green’ city region.

• Manchester City Region stands out as having a strong knowledge economy within the North West and when compared to other city regions in the Northern Way, with a relatively strong business knowledge economy and skills profile. This suggests that the city region is of strategic importance both to the region as a whole and within the Northern Way.

Competitiveness, skills and travel analysis • Within both the Northern Way and the Core Cities, Manchester City Region is the largest city region in terms of economic scale and it is also one of the most productive. • Manchester City Region holds the largest share of knowledge intensive employment amongst the English city regions. Although, still far outweighed by London and the South East, Manchester is showing strong signs of catching up. • As major drivers of the knowledge economy, it is important to strengthen the quality of business start-ups in the city region. • If Manchester City Region is to create a sustainable knowledge economy, it is vital to address the inequalities – both in skills and employment – that exist across the city region. • Examining the spatial dynamics of the city region, Manchester and other central districts form the major employment centres. With growth in the Northern arc of districts (Wigan to Oldham), the North/South divide within the city region appear to be eroding. Issues / Constraints • National and regional occupational forecasts presume that Britain’s knowledge economy is characterised by a future decline in the less skilled manual and routine information-processing office jobs. Personal service and sales jobs are the only broad occupational category where positive job creation is forecast. However, many of these jobs – in Manchester’s hotels and restaurants, central shopping districts and local high streets and so on – tend to be casual and temporary, poorly-paid and increasingly taken by foreign transients and women looking for part-time work. Therefore, the future of MCR economy appears to depend on the innovative, managerial and entrepreneurial talent of knowledge workers - AND also their spending power in purchasing more personal and household services. • Intrinsic links between change in economy and education which have led to social exclusion and widening of the social classes. • more funding and resources are required for devolved to city regions to strengthen their strategic decision-making capabilities. Economic Architectures • 27 per cent of all jobs in the North West in 2004 were generated by highly knowledge- intensive (K1) industries and services. This comprises mainly of the public sector – education, and health and social work (81.3 per cent of total K1 employment). • The North West has a relatively weak business knowledge economy, accounting for just 32 per cent of knowledge intensive employment (K1 plus K2). Half of employment of in the private sector is concentrated in the K4 sectors, 55.8 per cent of which comprises retail, wholesale, and hotel and restaurants. • A relatively high proportion of jobs in the financial and business services fall in to the K2 and K3 sectors, which raises issues of the types of jobs being created in these sectors • The North West has a poor supply of graduate labour; just 22.2 per cent of the resident labour force is qualified to degree standards. Many of these highly skilled people appear to be under-employed in occupations that do not normally require a degree. • At the other end of the labour market, over a third of the North West’s residents lack basic qualifications and effectively live in ‘skills poverty’. The problem of ‘skills poverty’ is particularly high amongst the older population (45 years to retirement age). • The employment rate declines as qualification levels become more basic. The employment rate amongst degree holders, despite the indication of underemployment, stands at 86.7 per cent, whilst the employment rate for those with basic or no qualifications stands at just 60 per cent. • From a national perspective the knowledge economy is London-centric. Outside of London, the city region agenda aims to counterweight London’s economic scale and competitiveness. Manchester City Region is very important to this agenda as a whole, as it is offers the greatest opportunities for developing a competitive knowledge economy. • Despite successes recently, Manchester City Region still needs to deal with issues of

inequality. Similar patterns of inequality – in employment and skills – are found within all big cities, including London and Birmingham. These disparities are summarised in Chart 2.7. • These inequalities demonstrate that the benefits of the development of the knowledge economy do not necessarily cascade down to all areas, particularly within the core of the city region, Manchester, where huge ‘skills poverty’ threatens to exclude thousands from the knowledge economy. • The contrast between the left and right hand sides of the architectures – employment and skills – suggests that it is commuters who seem to gain from the local knowledge economies. Ultimately the city region’s knowledge economy needs to grow but this must socially and spatially inclusive. How does Manchester City Region compete with London without creating the inequalities London faces? • Wigan is identified as having one of the weakest knowledge economy’s in Greater Manchester. (see diagram below).

Competitiveness • Districts on the northern edge of the city region – Wigan across and down to High Peak – are characterised by weaker business drivers. Furthermore, the city region as a whole is the least reliant on the public sector as a knowledge intensive employer.

Business Analysis • The enterprise culture in Manchester City Region is also important. We can see that new business formation rates are slightly higher than the national average, 10.94 and 10.08 respectively. There is considerable variation in formation rates within the city region. It would appear that those districts located along the M60/M62 corridor are the most enterprising, this may as a result of good connectivity and strategic emphasis. In the longer term, looking at change in total VAT registered stock from 1996 to 2005; it is the districts in the south west of the city region, Vale Royal and Warrington, with the highest growth rates. Taken together with new business survival rates, this would indicate that the quality of new business formation, particularly in Manchester, Tameside and Oldham and areas in the north of the city region, is not strong.

Skills Analysis • Human capital – the knowledge, skills and other competences of the workforce – powers the knowledge economy. There is an obvious skills divide between the north and south of Manchester City Region, made evident by the human capital index, a weighted average of NVQs. • The geography of graduate labour, unsurprisingly, corresponds with that of knowledge workers, with the highest proportion of knowledge workers resident in Congleton, Vale Royal, Macclesfield, Trafford and Stockport. How could the Local Development Framework respond For Local Development Framework to address the following issues: ƒ What policies are in place to promote a competitive, inclusive and sustainable economy in Manchester City Region? ƒ What are the impacts of the knowledge economy in the city region? ƒ How does Manchester City Region fit within the wider geographical context i.e. with the Northern Way, the Core Cities, and the North West? ƒ How can transport systems and economic development reduce sprawl and produce more income multipliers? How will the transport system cope with the pattern of development in the city region, with several major employment centres? ƒ The public sector is crucial to the development of Manchester City Region’s knowledge economy and in defining the city region itself. How can the public sector play a more influential role? Could multi-area agreements be an effective model? ƒ What is the future role for universities in the Manchester City Region? How might they become more embedded as drivers of the local economy? ƒ How does the city region develop major clusters and encourage knowledge spillover within the city region? ƒ With an already strong cultural scene in Manchester, cultural cosmopolitanism is important in attracting and retaining talent in the city region. What strategies are and should be put in place to build on this cultural milieu? ƒ Tackling ‘skills poverty’ has to be a major priority if the knowledge economy is to be inclusive. What strategies are in place to improve skills and what more could be done?

ƒ As the life blood of the knowledge economy, policies to promote business enterprise and to support innovation are a key priority. ƒ Although the point has already been made, finding areas where London does not have the first-mover advantage and creating niches in the city region is of particular importance. How is might the city region develop these niches? Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) • Moving Forward – the Northern Way • Regional Spatial Strategy for the North West • Greater Manchester Economic Development Plan 2004/05 – 2006/07 • Greater Manchester City Strategy • City Region Development Plan 2005 • Wigan Economic Development Plan

Table D6 Title NWDA Mersey Belt Study Policy Statement Proponent body North West Development Agency Status (e.g. statutory, non-statutory) Date produced 2003 Why is it relevant to the Local Development Framework? The Mersey Belt Study was published in May 2002 and circulated to all local authorities in the North West and to other regional partners. The study sought to:

• Identify the steps needed to manage better all assets within the Mersey Belt Southern Crescent so that economic potential could be encouraged and realised creatively, without compromising the principles of sustainable development.

• Support and complement regeneration in the Metropolitan Axis by identifying realistic and sustainable opportunities to accommodate and deflect development pressures from the south to the north of the River Mersey in the short and long term. Key messages, requirements, objectives This Policy Statement was published in October 2003 and presents the Agencies final policy and response to recommendations. The study primarily addresses the requirements of the Regional Economic Strategy and Regional Planning Guidance for the North West (RPG13). Within the RES, Objective 9 ‘Ensure the availability of a balanced portfolio of employment sites’, both the key activities are relevant to the Mersey Belt Study:

• Secure the development of designated strategic regional sites to boost business growth opportunities. • Secure a complementary portfolio of sub regional and local employment sites.

Within the explanatory text to Objective 9 the Strategy makes further reference to the Mersey Belt Study:

“A limited number of further (strategic regional) sites may be required, for example sites arising from local plans or from studies such as the Mersey Belt Study. In relation to the Mersey Belt Study the NWDA will prepare a position statement which will set out its own interim conclusions. The NWDA will then consult widely with regional partners and consider any representations before formally designating any further strategic regional sites”. Opportunities Issues with the document that effect Wigan include:

Identification of Wigan South Central as strategic opportunities for encouraging the development of knowledge based industry in RPG’s North West Metropolitan Area, and working alongside the local authorities concerned, endorse the use of the Agency’s powers and resources (including land assembly and if necessary compulsory purchase) to bring about their successful regeneration and development.

Maximise Omega’s potential by enhancing public transport accessibility from south Warrington and towns in neighbouring districts such as St Helens, Wigan and Halton. (For further information see NWRA Strategic Regional Sites Evidence Base (Jan 2005) and Emerging issues and NWRA Regional Strategic Sites Annual Monitoring Report (April 2005))

Concentrating resources on a small number of locations and improving transport links in the “gap area” between the two conurbations – specific references to Wigan South Central and Middlebrook, Bolton.

Wigan South Central being located in the centre of the “gap area” defined by the Mersey Belt Study consultants. It is a major brownfield development opportunity at a central location in RPG’s North West Metropolitan Area Regeneration Priority Area. Wigan is identified in RPG’s key diagram as a Metropolitan “key town”. Its rail hub provides direct services to national destinations on the West Coast Main Line, and services to many regional destinations. It is well served by public transport. Office development is therefore supported by RPG Policy EC8. As with Chester City Centre, Wigan South

Central is identified only as a general location. However it is anticipated that any development sites subsequently identified would similarly comply with RPG Policies DP1 and Policy EC8.

Wigan Metropolitan Borough Council has committing itself to work with NWDA to implement the proposal and consultants are developing the concept currently. Major infrastructure investment will be required to deliver the proposals. The Agency should regard Wigan South Central as an important opportunity in the “gap area”. However further work and feasibility study has yet to be completed, and designation as a strategic regional site is not therefore appropriate at this stage.

Issues / Constraints Risk that developments such as Omega would increase out commuting from borough and constrain the growth of the borough’s knowledge economy. How could the Local Development Framework respond ƒ Ensuring that large employment developments are identified and monitored in terms of their impact on the borough’s economy. ƒ Options need to be explored to compliment Wigan’s role in the region’s economy whilst ensuring its own economic growth is not negatively effected. ƒ Framework needs to have full regard to all sub regional spatial concepts. Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews)

Table D7 Title Liverpool City Region Strategic Proposals Proponent body Status (e.g. statutory, non-statutory) Non-statutory Date produced 2005 Why is it relevant to the Local Development Framework? The Liverpool city region development programme has been assembled under the overview of The Mersey Partnership, (the sub-regional partnership), through an operational group chaired by Liverpool City Council and comprising the local authorities of Wirral, St Helens, Knowsley, Sefton and Halton, Merseytravel, GM Learning and Skills Council, The Mersey Partnership and Merseyside Policy Unit.

This economic strategy has been produced alongside work on the Regional Spatial and Housing Strategies, the Merseyside Local Transport Plan and the review of the North West Regional Economic Strategy. It sets out an initial analysis of the city region and presents a strategic and action framework for further development.

The city region comprises the Core City of Liverpool and local authority districts of St Helens, Wirral, Knowsley, Sefton, and Halton plus the adjacent areas of Warrington, Chester, Ellesmere Port and Neston (West Cheshire), and North Wales and West Lancashire. There are also strong economic interrelationships with the Manchester city region. Its markets inter-act over a much wider catchment area; 6.75 million people live within 60 minutes drive time from Liverpool City Centre. The city region economy contributes a 40% share of the North West region’s GVA and 34% of its jobs. Key messages, requirements, objectives To improve the economic future of the Liverpool City Region for all our residents and businesses. In doing this over the next twenty years we will contribute to the growth of the North of England economy and help reduce the economic gap with the rest of the UK. Opportunities Wigan borough identified as having strong flows with the city region in particular with Warrington and Cheshire which provide important inflows to the city region.

1) Strategic Priorities and their key actions Key investments include: • effective national and North of England marketing of Liverpool Capital of Culture 2008 • sustaining the investment in Mersey Waterfront Regional Park’s unique range of coastal assets to create a new sense of place that attracts tourists, businesses, and investors to the city region and reduces the outflow of our talented young people.

2) The Well Connected City Region. Key investments include: • Developing the Port of Liverpool as the International Sea Gateway to the North of England; • Infrastructure investments to support the expansion of Liverpool John Lennon Airport. • The Mersey Gateway will provide a new road bridge crossing of the River Mersey between Runcorn and Widnes to improve and modernise road access to the city region • Enhanced Rail connections including improvements to the West Coast Main Line; Trans-Pennine routes and Lime Street Station and Gateway.

3) The Creative and Competitive City Region. Key investments include: • Research and Development - addressing knowledge transfer and commercialisation of research ideas within the HE and business bases, particularly in our health and life sciences strengths. • Focus Clusters will enable world class clustering infrastructures in our key areas of global industrial strength. • Pervasive Productivity will work to secure a step-change in raising the productivity of our wider business base. • Public Sector Excellence - modernising public services, and maximising its role as a major purchaser of goods and services for the benefit of the City Region.

• 21st Century Sites and Premises - delivering a diverse range of modern and flexible sites, capable of meeting the needs of modern businesses. • Environmental technologies – developing the region’s unique potential for excellence in environmental technology/performance, expanding the knowledge base, and achieving international recognition for centres of excellence in selected sub-sectors

4) The Talented and Able City Region. Key investments include: • Full Employment in the City Region which will tackle concentrations of worklessness through an accelerated process of up-skilling and employability and Skills for the City Region, to develop a highly skilled and flexible workforce.

5) The City Region of Sustainable Neighbourhoods and Communities. Key investments include: • Expanding the quality and choice of our housing offer; and enhancing our residential areas to sustain and reflect economic growth. We also recognise that ‘health is wealth’ and aim to make a significant improvement in the health prospects of our people. Issues / Constraints • Deprivation levels in parts of the LCR are among the highest in the UK and are intrinsically related to patterns of low economic activity and skills and to the failure of housing markets in the conurbation core. • 300,000 people who are economically inactive • The Liverpool city region has a mixture of strong and weaker economic centres and sharp contrasts in productivity and quality of life • Alongside some of the UK’s best economic performance are found some of the most severe instances of market failure (housing, skills levels, worklessness and deprivation). • The overall pattern of employment change over recent years has been decline in primary and manufacturing activities offset by growth in services. Public service expansion, in particular, has been a major contributor to employment growth within the city region but this brings some clear vulnerabilities. • Analysis of business density shows a substantial variation. Parts of the city-region are comparable with the North West, but most have densities that are lower and evidence shows that lowest densities are in, or close to, the core urban area. • Labour market activity rates across the sub-region vary widely but there exists a distinct pattern with rates in the core urban area falling away significantly from other areas. Evidence suggests that close to a fifth of the inactive base in the LCR aspire to work but the low levels of activity in part of the LCR are a specific characteristic of the concentrations of deprivation and remain one of the primary challenges in moving forward. How could the Local Development Framework respond ƒ Ensuring that large employment developments are identified and monitored in terms of their impact on the borough’s economy. ƒ Options need to be explored to compliment Wigan’s role in the region’s economy whilst ensuring its own economic growth is not negatively effected. Framework needs to have full regard to all sub regional spatial concepts. Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) Northern Way Housing Regional Economic Strategy Retail and Centres Liverpool City Region Development Programme

Table D8 Title Liverpool City Region Development Programme Report Proponent body Mersey Partnership Status (e.g. statutory, non-statutory) Non-statutory Date produced 2006 Why is it relevant to the Local Development Framework? The 2006 update to the Liverpool City Region (LCR) Development Programme has been compiled by the Sub Regional Partnership (SRP), guided by The Mersey Partnership with support and collaboration from key partners who have worked together closely on updating the progress that has been made on the key themes. Key messages, requirements, objectives It will form the key strategy statement, for submission to the Northern Way, on the future direction of the whole City Region and a platform from which partners in the City Region can:-

ƒ Promote the City Region and its assets ƒ Provide focus for and help align the various strategies and funding streams ƒ Help to stimulate private sector involvement and investment ƒ Influence public investment planning and coordination ƒ Establish collaborations across the City Region ƒ Identify and develop pan-northern opportunities/ organisations to promote knowledge transfer and spin offs ƒ Accelerate development of health science research capacity within the City Region Opportunities ƒ Increase inward investment (Discussions with NWDA Strategic Investment Programme) ƒ Develop sector clusters (The Mersey Partnership is working closely with Sector Boards, Directors and Funding Stakeholders to bring forward a final phase of the Programme for 2007 and 2008) ƒ Improve physical business infrastructure ƒ Health is wealth ƒ Environment Economy (Particular focus will be on Waste Management, Environmental Technologies, Green Infrastructure and Responsible Business and Sustainable Procurement) ƒ Digital Development (Liverpool University’s Advanced, Internet Methods and Emergent Systems Centre (AIMES), Digital Academy, Community based digital initiatives) ƒ Well connected City region (The aim is to develop the Ports of Liverpool into the international sea gateway to the North of England, John Lennon Airport is the fastest growing airport in the UKK with further plans for expansion, Mersey Gateway - creation of a second crossing of the Mersey at Runcorn/Widnes is seen as a key economic driver) Issues / Constraints ƒ The final phase of the Merseyside Sector Development Programme is dependent on continued support from Government Office for the North West (GoNW) and NWDA. ƒ The lack of a ready stock of the highest class commercial sites has been a major inhibitor for parts of the City Region for decades and is required to meet the demanding needs of modern businesses. ƒ future success of the Air port is dependent on developing key routes to major London airports and the implementation of new and improved road and rail infrastructure. Productivity ƒ GVA and GVA per capita growth has been stronger in LCR than in the North West and the UK as a whole. ƒ Cheshire GVA per capita 13% greater than for the UK. ƒ Cheshire, Warrington and Halton GVA out performing the rest of the North West, but other areas significantly lower - Wirral, East Merseyside. ƒ Public sector spending levels and a drive to increase ƒ Productivity in public services (e.g. public sector = 34% of LCR workforce (203k) and 26% of economic output; 20 Govt departments with 17k civil servants) Population and Labour Market Migration ƒ Working age population in steady growth between 1993 and 2003 reversing period of

decline (particularly strong reversal in Knowsley, Warrington, Wirral and Sefton). ƒ Continued decline in 25-34 age cohort is affecting the development of a high skilled young professional market and graduate retention. ƒ Liverpool is the primary recipient of labour movement within the city region over 75,000 migrating into Liverpool mainly from - Wirral, Sefton, St. Helens. ƒ Significant labour market linkage between LCR and other surrounding City regions. ƒ Higher-level occupations tending to move outside of the city region for work, with the link to Manchester City region being particularly strong. ƒ Distinctive areas of low quality housing stock and high levels of deprivation. ƒ Relatively stable population of around 2.3 million people. ƒ Economic boundaries (as defined by travel to retail and travel to work) are not consistent with political and administrative boundaries (e.g. Liverpool primary inflows - Wirral, Sefton and Knowsley). ƒ Ageing population lowering relative percentage of working age population and consequently the demand on public services, investment and companies. ƒ Labour mobility, including in-migration of labour from overseas and internal movement of people to jobs. ƒ Business connectivity including digital infrastructure, logistics, business orientated air-links, and links to adequate skills supply (e.g. 70% of CEO’s now use low cost airlines for business purposes). ƒ Chester’s vibrant economy is a significant importer of labour from across the City Region and the North. Skills ƒ Workless individuals have a much higher prevalence of low/ no skills and lower average low/no skilled prevalence rates significantly. This demonstrates a picture of particular pockets of deprivation linked to unemployment. ƒ Proportion of LCR residents qualified to level 4+ lower than across the North West and the UK whereas 80% of new jobs are at Level 4+. ƒ Increased importance of enterprise, skills, innovation, investment, technology and competition in driving business productivity. Employment ƒ LCR has 989,000 jobs (equivalent to 34% of region). ƒ Employment is highest in the public sector (31%), followed by distribution, hotels and restaurants and manufacturing. ƒ Highest worklessness rates in the core urban areas - Liverpool has 90,000 workless adults [city employment rate 63% (UK 75%)]. Business and Sector Development ƒ Nearly 50,000 VAT registered businesses exist across the City Region, but there is significant variation in business density across the City Region. ƒ Global political instability (particularly relating to commodity prices). ƒ LCR, although a patchwork of sub-economies, is driven by 4 core spheres of economic activity – International commerce, manufacturing, financial services and transport. How could the Local Development Framework respond To develop spatial options that take into account cross boundary issues with areas such as St Helens and West Lancashire and have full regard to sub regional approaches to development. Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) Northern Way Housing Regional Economic Strategy Retail and Centres

Table D9 Title Investing in Success - Sub Regional Economic Strategy for Warrington and Cheshire (CWEA 2004) Proponent body Cheshire and Warrington Economic Alliance Status (e.g. statutory, non-statutory) Non-statutory Date produced October 2004 Why is it relevant to the Local Development Framework? ‘Investing in Success’ has been prepared in the context of other important strategies such as the Regional Economic Strategy (March 2003), and two community Plans for Warrington and Cheshire and the strategic frameworks governing the work of the learning and Skills Council Cheshire and Warrington and business link Cheshire and Warrington.

The strategy has in part been developed in response to a request by NWDA for a strategy and action plan to help guide their investment decisions in Cheshire and Warrington. However, it also has a wide propose and should help guide and shape a broader range of investment decisions beyond the Agency, particularly where the collective impact of interventions can really make a difference. Key messages, requirements, objectives

• The region to act as a successful economic engine for the region and wider Northern Way area operating in a complementary way with the regions main urban areas Opportunities • Offer a world class location for key knowledge based sectors including combination of access, scale and quality of skills pool and quality of environment. Issues / Constraints • Still have untapped potential in pockets of deprivation and amongst working age population who lack basic skills or have low qualifications. • Are a provider of wider opportunities which are and could be accessed by residents of the more deprived urban areas in Greater Manchester and Merseyside. • increasing problems of success manifest in congestion, skills shortages, housing affordability concerns and access to sites and premises for growth How could the Local Development Framework respond To develop spatial options that take into account cross boundary issues with areas such as Warrington and have full regard to sub regional approaches to development. Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) Northern Way Housing Regional Economic Strategy Retail and Centres

Table D10 Title Prosperous Places: Taking forward the Review of Sub National Economic Development and Regeneration Proponent body Department for Business, Enterprise and Regulatory Reform and Communities and Local Government Status (e.g. statutory, non-statutory) Non-Statutory (Consultation Document) Date produced March 31st 2008 Why is it relevant to the Local Development Framework? The reforms aim to provide an economic environment that enables business to adapt to and create new technologies and opportunities.

The review focused on how to strengthen economic performance in regions, cities and localities throughout the country, as well as tackling persistent pockets of deprivation where they remained.

Key messages, requirements and objectives Reforms are there to: • Streamline the regional tier; introducing integrated (planning and economic) strategies and giving Regional Development Agencies the lead role in regional planning. • Strengthen the role of local authorities in economic development. • Support collaboration by local authorities across economic areas.

The review of sub-national economic development and regeneration demands a strong and deep partnership between Regional Development Agencies and Local Authorities. There is a need to ensure complimentary regional and local economic, housing, planning, transport and low carbon priorities.

Possibility of developing different arrangements to reflect different circumstances in each region.

Regional Development Agencies will continue to be business-led. The Department for Business Enterprise and Regulatory Reform and Communities and Local Government will work to ensure future appointments to Regional Development Agency boards are appropriate in terms of skills and experience.

Regional Development Agencies will become more strategic bodies in line with devolved decision making principles. They will continue to work, in close contact with the private sector, to deliver services such as supporting innovation and co-ordinating inward investment.

All local authorities within a region will be represented by a forum of local authority leaders to hold the Regional Development Agency to account. They could be accountable to parliament by regional parliamentary committees and, as currently, to the Secretary of State for Business Enterprise and Regulatory Reform.

The new integrated strategies will build on the Regional Economic Strategies and Regional Spatial Strategies. They will set out a vision for how and where sustainable economic growth would be delivered. The process for developing the strategy should be robust, transparent, open and efficient and the strategies will be subject to an independent examination.

The creation of a focused statutory economic assessment for county and unitary local authorities is proposed. This would contribute to sustainable community strategies, local development frameworks, local and multi-area agreements and the integrated regional framework.

The Government considers that the focus for new sub-regional arrangements (multi-area agreements) should be economic development.

Opportunities Statutory Economic Assessments for Local Authorities, whatever form they take, will help bolster the evidence base for the Local Development Framework. The contribution in shaping other Local Authority documents and Regional Documents will ensure a chain of conformity and consistency. Issues and constraints Although the business-led Regional Development Agencies are accountable to both local authorities and parliament, the focus of the integrated strategies might be on economic development, which could be at the expense of environmental and social objectives. How could the Local Development Framework respond? When the Integrated Regional Framework is produced, the Local Development Documents will have to be in conformity with this. The Economic Assessment will also be a key component of the Local Development Framework Evidence Base. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) National and Regional Planning Policy

Table D11 Title Economic Baseline 2008 Unit 1: Economic Context Proponent body Manchester Independent Economic Review Status (e.g. statutory, non-statutory) Non-Statutory Date produced January 2008 Why is it relevant to the Local Development Framework? This document provides key statistics on the economy for the UK, North West and the Manchester City Region. This data can help inform the Local Development Framework Evidence Base.

Key messages, requirements and objectives The World Economy • The overall global economic climate in 2008 is forecast to be one of slower but still strong growth • Global credit market conditions deteriorated sharply in the latter part of 2007 • Inflation has been increasing in emerging countries, relating to strong domestic demand and increases in energy and food prices.

The UK economy • The bulk of the UK economy performed strongly in 2006 at 2.8% and is expected to average around 3% in 2007. The key driver being the service sector which has experienced growth of 3.7% • The UK has experienced the longest period of economic growth in its modern history. However, a significant slowdown in both the service sector, consumer spending and business investment is emerging. • In the context of globalisation, the UK needs to enhance the sectors in which it remains a competitive advantage in order to remain in a globally strong economic position. Such sectors include financial services and sub-sectors of the science and engineering industry. • Technological change is a key driver of economic growth and productivity. The Government’s Office of Science and Innovation identified eight clusters of technological development o Information and Knowledge Management; o Sensors and Tracking; o Network Interactions and Communications; o New Security Technologies; o Advanced Materials; o Nanotechnologies; o Mind and Body Sciences; and o New Energy Technologies. The North West Economy • The Region’s Economy consists of 233,000 workplaces which employ over 3 million staff. It represents approximately 10% of the UK economic output. • Almost three-quarters of the working age population are in employment. (Approximately 4.3 million people) • There is a significant productivity gap between the region and the rest of the country. The GVA (Gross Value Added) per capita in the region is £14,700 compared to £16,700 nationally. • The GVA gap can be attributed to a number of factors including the differences in labour markets, price levels and proportion of jobs in various applications. • There are also influences from the supply-side of the economy, namely the skills gap.

The Manchester City Region Economy • Economic output fell in real terms in most areas of Greater Manchester during the 1980s and early 1990s. From around 1995 onwards, economic growth in the Manchester City Region has outstripped that in the North West.

• In the last decade, the City Region has accommodated 90% of the net increase in the North West’s population and almost half the net increase in employment. • The City Region generates half of the North West’s total economic output and is the Region’s main economic driver. • The City Region is developing as a major centre in knowledge intensive industries.

Benchmarking the City Region Economy: GVA per resident capita (Index of 100 for UK average in 2004):

Opportunities The UK economy • The reduction of the pound’s value against the Euro is important because over half of the UK’s exports go to the Eurozone and this could provide a welcome boost to the manufacturing sector.

The North West Economy • Since 2000, the rate of growth in the number of jobs has been a lot faster than in the rest of the country. • The narrowing of the skills gap presents a potential opportunity for economic growth in the North West.

Issues and constraints The UK economy • The UK is more vulnerable to the impact of the credit crunch due to the importance of the financial sector to the broader economy. • A slow down in the housing market will affect consumer spending growth through a reduction in consumer confidence and willingness to spend. • There is a major question over whether the housing market slow down will combine with banking and financial problems to form a downward spiral in asset prices, confidence, spending and growth.

The North West Economy • The productivity gap has been increasing over the last decade, mainly due to the decline in manufacturing jobs in the North West. • Whilst a large amount of jobs have been created in the region, many of these are

lower value added jobs such as call centres.

How could the Local Development Framework respond? The information from the Manchester Independent Economic Review can help inform the topic papers, particularly to fill gaps and/or update information. Policies in the Local Development Framework for Economy and Employment will need to be set amongst the context of economic growth trends. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D12 Title Economic Baseline 2008: Unit 2: Business Base Proponent body Manchester Independent Economic Review Status (e.g. statutory, non-statutory) Non-Statutory Date produced January 2008 Why is it relevant to the Local Development Framework? This document provides information relating to the business base of the city region and how it is performing, particularly in comparison with the region and the country. Particularly, the structure and performance of the business base is looked at, entrepreneurship and business development rates and the knowledge economy. Key messages, requirements and objectives • The Manchester City Region has a strong and diverse business base, comprising a total of 121,900 workplaces. • The majority of employees (48.6%) work within small to medium enterprises, similar to the national and regional average. • Business start-up rates have increased by 8.9% between 1996 and 2006, faster than the regional (8.3%) and the national (3.4%) rates. However, the city region is a long way below areas such as the South East for VAT registrations. • Business survival rates are lower than the national average, but in the last decade the rates have shown a faster improvement than nationally. • Six sectors have been identified as priority ‘sector accelerators’, these are: o Aviation and key asset Manchester Airport o Creative / Digital / New Media o Financial and Professional Services o ICT Digital / Communications o Life Science Industries o Manufacturing • A further nine key sectors have been identified: o Construction (including architecture) o Customer Contact Centres o Education o Environmental Technology Services o Hospitality and Tourism o Logistics o Public Services o Retail o Sport • Financial and Professional Services, together with life science industries have replaced manufacturing to become the most important employment sectors. Nevertheless Manufacturing still remains a significant employer, with 11.8% of jobs in that sector.

Opportunities • Wigan has high concentrations of: construction, logistics, retail and sports employees. Issues and constraints • The conurbation punches below its weight in terms of being headquarters of top UK or international businesses. United Utilities is the only FTSE 100 Company in the city region at Warrington and only 6 FTSE 250 companies operate within the conurbation. • Growth rates in the total number of business workplaces across the city region were lower than nationally. Between 1998 and 2006, there was growth of 5% compared to 7.3% nationally. • Business Density (number of businesses per 1,000 residents) is lower in the city region than the national average: 459.0 compared to 518.9. Wigan had the lowest figure in the city region with 347.5. • Wigan has low concentrations of employment in education and creative / digital / new media.

How could the Local Development Framework respond?

The information from the Manchester Independent Economic Review can help inform the topic papers, particularly to fill gaps and/or update information. Policies in the Local Development Framework for Economy and Employment will need to be set amongst the context of economic growth trends. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D13 Title Economic Baseline 2008: Unit 3: People Proponent body Manchester Independent Economic Review Status (e.g. statutory, non-statutory) Non-Statutory Date produced May 2008 Why is it relevant to the Local Development Framework? This document provides information on the population of the city region, in terms of the labour market, earnings, skills and qualifications. Although the data does not look at Wigan individually, the trends identified for the city region and differences between the national and sub-regional figures provide a good basis for planning for economic development in the borough. Key messages, requirements and objectives Context • Signs of a healthy economy include a growing population able to service the demands of employers in its locality • A healthy labour market should include appropriate supporting conditions for education, training and workforce development; welfare benefits and childcare provision. Also adequate provision of housing, employment land, and transport infrastructure should support these. • Appropriate skills meeting the changing needs of employers are crucial to the successful development of the city region’s economy. • Higher levels of skill and competencies are being demanded more within the labour market as the economy becomes increasing knowledge intensive.

The Labour Pool • During the recessions of the 1980s and 1990s, the city region under-performed significantly in terms of population growth. Skilled labour was lost to other city regions. • In recent years the city region has experienced population growth, with a 1.6% increase between 2000 and 2006, although most of this population growth was driven by growth in the City of Manchester. Wigan’s population growth was slightly less than the rate for the city region, but was only 2nd to Manchester out of the Greater Manchester authorities. • The City Region has a higher proportion of 20-29 year olds than the national average. This is 13.5% compared to 13% nationally. However most of these people are concentrated in the cities of Manchester and Salford. • The changing population structure means that older people will comprise a greater proportion of the population and workforce over the next 10-20 years as ‘baby- boomers’ reach retirement age. • Population forecasts suggest continued growth in the city region between 2007 and 2017, with 145,000 net additional residents.

Employment and Deprivation • The Manchester City Region has 30.4% of super output areas in the 20% most deprived, though this is down from 32.3% in 2004. • Wigan’s employment rate is below the national and city region rates. • The city region’s employment rate is just below the national rate, but it is higher amongst 20-34 year olds. • Both the region and city region have a higher than average proportion of benefit claimants. The number of those claiming inactive benefits (specifically Incapacity Benefit) is much greater than the number of those claiming Job Seekers Allowance. • The city region has a larger proportion of Job Seekers Allowance claimants aged under 25 than the national rate (33.1% compared to 30.7%). • The incapacity benefit claimant rate for the city region is significantly higher than the national rate. (9.2% compared to 7.2%). • There are higher incomes in the south of the city region. Higher workplace than residence figures indicate a high amount of people commuting to Greater Manchester, with many high earners living to the south in Cheshire.

Working population benefit rates (Job Seekers Allowance, Incapacity Benefit and Lone Parent). (p.16)

Median Incomes (2005) (p.24)

Qualifications • 15.6% of the resident population have no qualifications, compared to 14% nationally. • The percentage of working age residents with no qualifications aged 16-19 in the city region is higher than nationally (19% compared to 17.8%). • Unemployed in the city region are 3 times more likely to have no qualifications than those in employment (32% compared to 9.8%).

Opportunities • Growth in gross median earnings has been higher in the Greater Manchester than nationally (18.6% for workers and 17% for residents, compared to 16.8%). However these are still someway below the national average. • For the whole working age population, level 3 and above skills profile mirrors the national average. Issues and constraints

The Labour Pool • An ageing population will result in the shrinking of the working age population, in relative terms, and an increase in dependency ratios (i.e. ratio of people of pensionable age to people of working age). • The working age employment rate for the non-white resident population in the city region is 53.6%, compared to 75.8% for the white population. • Due to an increasingly ageing population, the forecast increase in population levels do not equate to a proportional increase in working age population. The challenge for policy is to create the right climate for attracting working age residents, as well as improving employability, economic activity and contribution of an ageing population.

Employment and Deprivation • The city region has a very high level of deprivation, which holds the area back from achieving more dynamic growth. Reduced levels of economic activity reduce the available workforce and productivity growth. • There are large numbers of out of work residents in the city region. Worklessness is a key issue as it leads to poverty, ill health, crime, substance misuse, low school attainment and family breakdown. • The main factors impacting on worklessness are: employability (lack of skills and experience, personal problems) employer attitudes and practices (reluctance to recruit long term unemployed people, discrimination, requirement for formal qualifications), specific barriers to work (care issues, transport, and education) and accessing job opportunities (lack of information and motivation, difficult to match people with appropriate job opportunities). • Unemployment is likely to increase in the short-medium term, due to slowing of economic growth and policy shift to reduce inactivity (reducing the number of incapacity claimants and putting more people into the labour pool).

How could the Local Development Framework respond? The information from the Manchester Independent Economic Review can help inform the topic papers, particularly to fill gaps and/or update information.

The data in this report and the conclusions show that there is a significant amount of deprivation in the city region, with Wigan being no exception. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Communities Education and Learning

Table D14 Title The Economic Impact of EU and UK Climate Change Legislation on Manchester City Region and the North West Proponent body Manchester Enterprises Status (e.g. statutory, non-statutory) Non Statutory Date produced July 2008 Why is it relevant to the Local Development Framework? The document outlines the threats and opportunities to the region from climate change legislation.

There is growing evidence that the climate change agenda is altering market conditions and underlying assumptions previously used to determine trends and establish the economic priorities for the Manchester City Region. This agenda will have an impact on spatial planning, investment decisions, development and business practices and trends.

The report focuses on what could be done in the short-to-medium term to develop strategies to deal with the impact of climate change legislation in the City Region in the context of the North West.

Key messages, requirements and objectives • Significant impacts on the economy are likely, as binding provisions on carbon pricing, trading and associated emissions reduction targets are introduced.

• There will be a cost of inaction across all sectors with competitive advantage and cot reduction upsides for proactive business responses to climate change legislation, regulation and policy. Without exploiting opportunities and mitigating effectively a ‘failure to adapt’ scenario suggests that the city region could lose an estimated £21 billion in GVA over the next 12 years (by 2020).

• If the end-user ceases to accept high footprint goods and services then the supplier will stop producing. These market pressures should not be underestimated when it is already evident that customer and shareholder pressure is impacting on business behaviour. It is also clear that cost pressures from increasing energy and fuel process are driving change in business operating models.

• There are already signs that consumers and considering carbon footprint when making buying decisions.

• Air and land transport are significant economic activities in the region and legislative impacts have the potential to be magnified significantly through the supply chain due to their critical role as a facilitator of individual and business connectively and knock –on costs.

• Important growth sectors and the financial, business and professional services and public sector services.

• Strong leadership is required.

• Gaining the support and confidence of the business and investment community, by creating economic opportunity and reducing market uncertainty through a consistent policy approach, is a prerequisite for success.

• New approaches to energy generation and distribution are required and a more comprehensive approach to energy planning creates a significant economic opportunity for the region.

Strategic priorities

• Exploiting first mover advantage with a clearly articulated policy position with respect to climate change legislation.

• Leadership aimed at building an international reputation.

• Transforming the energy mix (based on low and zero carbon technologies) to reduce economic cost.

• Promoting sector growth through targeted procurement strategies. The public sector can play a significant role.

• Reducing uncertainty and risk to encourage business investment.

• Delivering coherent advice and support to business in general (about CC regulation)

• Developing specific sector strategies in support of the most vulnerable sectors as well as in opportunity sectors.

• Promoting inward investment.

• Policy alignment – But ensuring that policy does not discriminate because of geography. For example a high percentage renewable energy requirement for new development in the north f the city region would have a different impact on investment decisions than in the south, where land values are higher.

• Investing in skills and building capacity. Opportunities • The economic structure of the City Region with its strengths in financial and professional services sectors, together with a growing environmental technology sector, places it in a strong position to compete effectively within markets on a global scale. By creating the right conditions for new and emerging businesses in this area and ensuring existing business have the right support and expertise to enable them to adapt quickly, the City Region has the opportunity to build an international reputation that would attract inward investment.

• Mitigation of the risks associated with climate change creates an economic and competitive opportunity for land and air transport sectors.

• There is quantitative evidence that key service sectors- major contributors to the Manchester City Region economy – have already demonstrated the ability to grow without significant increases in direct emissions. There is also little evidence to suggest that higher output growth in future will lead to growth in direct emissions. (NB: Indirect emissions may increase though)

• Public sector influence over procurement patterns and energy usage is high, which means that specific policy and targeted action from public sector organisations can encourage change and provide support.

• Niche markets and demand for environmental technology and services.

• Opportunity to shape and align planning policy to direct investment to deliver carbon efficiencies through improvements to function, infrastructure, design, location and density of major developments.

• Opportunity for a collective approach to energy planning that can take advantage of the economies of scale in major development and regeneration projects within and across local authority boundaries.

• The proposed Climate Change Agency for the region by AGMA, has the potential to enable the public and private sectors to pool the necessary skills and expertise to enable the delivery of the interventions set out in this report. Manchester City Region assets

• A strong and positive economic structure that is skewed towards the sectors that are expected to be the drivers of growth.

• Successful urban regeneration.

• Capacity for innovation.

• Strong higher and further education institutions.

• Improving transport and infrastructure.

• Political leadership (AGMA)

Issues and constraints

• There is a business concern about future markets for low carbon products and services, and the robustness of these markets especially in a more uncertain climate. It will be necessary to provide business with more certainty (and opportunity) to until greater confidence that there will be a good return on investment.

• Small and medium sized enterprises with a lack of capacity will have concerns about dealing with compliance/administrative challenges.

• The pressure to source low-carbon goods to reduce their whole-life-cycle footprint could increase the costs for business in both supply and production of goods for some organisations.

• The climate change agenda necessitates long-term thinking that may not be in keeping with business time horizons.

• New skills and competencies will be required. Inevitably there will be skills gaps, which will present a major challenge.

• Redistribution of production to countries outside the legislative sphere will result in the same level of emissions and energy use, but to the detriment of the UK economy.

How could the Local Development Framework respond?

• Developing proactive policies to support the environmental technologies sector.

• Energy planning and infrastructure development based-upon low and zero carbon technologies.

• Challenging renewable energy targets for major new developments.

• Support for small and medium sized businesses. Implications for the sustainability appraisal • Supports the inclusion of climate change considerations and the promotion of a low carbon economy as key aspects of the sustainability appraisal framework.

Cross references (General) Cross Reference (Topic Reviews)

Table D15 Title Greater Manchester Forecasting Model (2007) Proponent body Oxford Economics Status (e.g. statutory, non-statutory) Non-statutory Date produced 2007 Why is it relevant to the Local Development Framework? Robust and consistent information on the current and likely future performance of Greater Manchester, in terms of its economy, population and households, is a vital tool in the development of strategies and plans to accelerate the economic performance of the city region, for example through workforce development, business support and other strategic investment activities.

In April 2006 AGMA agreed to adopt the Greater Manchester Forecasting Model (GMFM) to fulfil these requirements. Developed by Oxford Economics (OE), the GMFM provides integrated forecasts for GVA, population and households, based on and informed by forecasts of employment change.

Key messages, requirements and objectives

The following tables identify the employee change forecasts for the period 2007/2008-2026 in Wigan Borough per Econometric SIC2 sector. Table 1 includes each Econometric SIC2 sector. Table 2 includes only B-class Econometric SIC2 sectors.

Table 1 – Employee Change 2007-2026

Employees

Econometric SIC2 Sector 2007 2008 2026 Change 08-26 Agriculture 200 200 100 -100 Extraction 0 0 0 0 Manufacturing of: 0 food, drink and tobacco 4900 4800 3400 -1400 Textiles, clothing and leather 800 800 200 -600 Wood and wood products 500 500 300 -200 Pulp, paper and printing 800 800 400 -400 Coke, oil and nuclear 0 0 0 0 Chemicals and pharmaceuticals 600 600 300 -300 Rubber and plastic products 1300 1300 1000 -300 Other non-metals 700 700 400 -300 Metals 1500 1400 600 -800 Machinery and equipment 500 500 200 -300 Electrical and optical equipment 1300 1300 500 -800 Transport equipment 800 700 400 -300 Other manufacturing 600 600 400 -200 Electricity, gas and water 100 100 0 -100 Construction 7200 7300 8400 1100 Distribution and retail 21400 21600 22200 600 Hotels and restaurants 6500 6500 8500 2000 Transport and communications 5700 5800 6100 300 Financial intermediation 1700 1700 1800 100 Business services 12800 13000 16600 3600 Public administration and defence 4200 4200 4400 200 Education 8700 8800 10100 1300 Health 11700 11900 14100 2200 Other personal services 5600 5700 6900 1200 Total 100,200 100700 107400 6700

[Red text indicates non-B uses]

Table 2 – Employee Change 2007-2026 for B-class sectors

Proportion of SIC Employees in Use Employee change (2008- Number of employees Class (%) ** 26)

Econometric SIC2 Sector 2008 2026 Change 08-26 Office (B1a/B1b) Industry (B1c/B2) Warehousing (B8) Office (B1a/B1b) Industry (B1c/B2) Warehousing (B8) food, drink and tobacco 4800 3400 -1400 100 0 -1400 0 Textiles, clothing and leather 800 200 -600 100 0 -600 0 Wood and wood products 500 300 -200 100 0 -200 0 Pulp, paper and printing 800 400 -400 100 0 -400 0 Coke, oil and nuclear 0 0 0 100 0 0 0 Chemicals and pharmaceuticals 600 300 -300 100 0 -300 0 Rubber and plastic products 1300 1000 -300 100 0 -300 0 Other non-metals 700 400 -300 100 0 -300 0 Metals 1400 600 -800 100 0 -800 0 Machinery and equipment 500 200 -300 100 0 -300 0 Electrical and optical equipment 1300 500 -800 100 0 -800 0 Transport equipment 700 400 -300 100 0 -300 0 Other manufacturing 600 400 -200 100 0 -200 0 Construction 7300 8400 1100 30.6 0 336.6 0 Transport and communications 5800 6100 300 65.9 0 0 197.7 Financial intermediation 1700 1800 100 100 100 0 0 Business services 13000 16600 3600 100 3600 0 0 Other personal services 5700 6900 1200 100 1200 0 0 Total 47500 47900 400 4900 -5563.4 197.7

Key: B1a/B1b B1c/B2 B8 ** based on Use Class and Sector Conversion used in the Wigan ELR Table 2 indicates a perceived overall loss of 466 jobs in the Borough in the period 2008-2026. Over this period a continued decline in manufacturing is forecast with a loss of 5563 industrial jobs. This decline is offset by the rapid growth in the service sector with 4900 new jobs forecast, including 3600 new jobs in business services. Opportunities

Issues and constraints

How could the Local Development Framework respond?

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D16 Title Unemployment Monitor Proponent body Manchester Enterprises Status (e.g. statutory, non-statutory) Non-statutory Date produced December 2008 Why is it relevant to the Local Development Framework?

This is a monitoring update on the number of unemployed people in the borough at November 2008. This is based on the number of job seekers allowance claimants. The LDF will seek to tackle unemployment in the borough through the creation of new employment opportunities and addressing low skill and qualification levels.

Key messages, requirements, objectives November unemployment figures show that for the first time since February 2003 the number of people claiming jobseeker’s allowance in the UK has hit the 1 million mark. In itself that figure doesn’t mean an awful lot – the claimant count has been creeping up throughout 2008 – but the symbolic value matters greatly: the UK is undoubtedly in recession. Greater Manchester will not be immune from this but there is evidence that the city region is holding up well despite the tough economic conditions. Looking at the jobseeker’s allowance figures for GM shows that the number of claimants rose by 3,500 to 53,900 in November, the highest level since spring 2000 and the sixth straight month-on-month increase. It is anticipated that these claimant rates will continue to rise throughout 2009, and may even double by the end of the year if GM increases are in line with the increasingly mainstream national projections of 2 million unemployed by Christmas 2010. Figures released for the wider ILO definition of unemployment for the North West suggest that the number of people out of work has now topped 100,000 across the conurbation. As you would expect, there is evidence that businesses are starting to suffer.

Job Seekers Allowance Claimants (November 2008):

• 53,840 JSA claimants in Greater Manchester • JSA claimant rate highest in Manchester (4.1%) and lowest in Trafford (2.3%). Wigan claimant rate (3.5%) higher than GM (3.3%), NW (3.2%) and UK (2.8%). • Norley ward had the 6th highest claimant rate (7.2%) in Greater Manchester. • Wigan experienced the second highest annual growth (50.2%) and the second highest number of claimants in GM (6,585) • GM experienced a higher annual increase in claimants (36.6%) than the North West (34.7%) and the UK (34.4%). In contrast, the monthly change (6.9%) was less than the NW (7.8%) and UK (8.8%) increases.

Job Seekers Allowance Claimants by Gender (November 2008):

• The male JSA claimant count stood at 40,973 in GM in November 2008. • The female JSA claimant count stood at 12,911. • All districts experienced monthly and annual increases in the male claimant count. The largest annual change in the male claimant count was in Wigan (57.8%). GM’s annual male claimant growth rate (39.4%) remained higher than the North West (37.7%) or the UK (37.4%).

Job Seekers Allowance Claimants – Long Term (November 2008):

• The long-term (over 6 months) JSA claimant count stood at 12,020 in GM in November 2008. Long-term claimants as a proportion of total

JSA claimants were highest in Rochdale (24.6%). Wigan (22.7%) experienced a higher long-term proportion than GM (22.3%), and a lower long-term proportion than the NW and UK (both 23.6%). The highest proportion was experienced in Central and Falinge (35.0%) in Rochdale, with the second highest in Swinley in Wigan (32.5%).

Job Seekers Allowance Claimants – 16-24 year olds (November 2008):

• The youth (16 to 24 year olds) JSA claimant count stood at 17,900 in GM in November 2008. Youth claimants as a proportion of total JSA claimants were highest in Bury (35.7%). Wigan had the second highest rate (35.5%), higher than GM (33.2%), NW (33.3%) and the UK (31.1%). • The second highest proportion was experienced in Bedford-Astley (42.4%) in Wigan. • The greatest annual increase was in Wigan (53.6%). GM’s annual growth (33.3%) exceeded the NW (32.8%) but lower than the UK (36.4%). GM’s monthly increase (4.1%) was less than NW (5.8%) or UK (2.0%).

Job Centre Plus Notified Vacancies

• The total number of vacancies in GM stood at 21,985 in November 2008. This represented a 19.8% monthly increase in notified vacancies and a 5.8% increase on the year. Manchester experienced the highest number of vacancies (5,719), after a monthly fall of 2.8%. • Annually, GM (5.8%) outperformed the North West and GB, which experienced decreases of 3.3% and 0.5% respectively. The greatest annual increase was experienced in Oldham (57.4%), whereas the greatest decrease was experienced in Wigan (-18.8%).

Opportunities

Issues / Constraints

How could the Local Development Framework respond By formulating policies which address prevalent employment and education issues such as: • Tackling low aspirations in the borough and improving accessibility to education • Providing our local workforce with the necessary skills to access existing and future employment in the Borough • Creating the right conditions needed to modernise and grow the borough’s economy and provide additional employment opportunities in a number of sectors, including growth sectors.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D17 Title Manchester Skills and Employment Strategic Framework (Draft) Proponent body Commission for Economic Development, Employment and Skills Status (e.g. statutory, non-statutory) Date produced November 2008 Why is it relevant to the Local Development Framework? Manchester’s Skills and Employment Strategic Framework is designed to address the major skills and employment challenges facing Greater Manchester. The document will guide the activities of the Commission for Economic Development, Employment and Skills and the wide variety of bodies – local, regional and national – that are part of Manchester’s skills and employment infrastructures. Developed through extensive consultation, this Strategic Framework should represent a common way forward – the Manchester way.

Key messages, requirements, objectives • Employment and skills are inextricably linked. Over one third of Greater Manchester’s economically inactive population have no qualifications at all, compared with just a tenth of those employed. • Those holding a Level 2 qualification raise their chance of achieving sustained employment by over 50%. Yet, over half a million of the sub-region’s working age population - over one third - do not meet this minimal requirement.

The following 4 key employment and skills priorities are identified to help ensure long- term sustainable economic growth in Manchester and to make it a world-class city region at the heart of the thriving North:

1. Meet current and future recruitment and skills needs of Manchester's businesses by improving the skills and qualifications of the adult population 2. Drive up demand for and investment in skills and qualifications by employers to ensure Manchester's economy is increasingly productive, competitive and future facing 3. Equip young people with the skills and qualifications they need to make the most effective contribution to Manchester's economy 4. Tackle worklessness, including through improving job sustainability, for those living and working in Manchester by linking people, jobs, training and services

Meet current and future recruitment and skills needs of Manchester's businesses by improving the skills and qualifications of the adult population

• Despite having one of the largest concentrations of HE students in the country, Manchester has a lower proportion of its resident population qualified to HE level then England as a whole (25.3% versus 28.3%). • Manchester does well in retaining graduates and is a net importer of people with Level 4 and above skills. • The proportion of the working age population resident in the area who do not have a Level 2 qualification or above is above the national average – 34% compared to 32%. These are concentrated in deprived parts of the borough with high levels of worklessness.

• The key strategic objectives that need to be addressed are: o Supporting a demand led system with sound information on employer and labour market needs; o Increasing the achievement of higher levels skills and improving talent retention and attraction in Manchester.

Drive up demand for and investment in skills and qualifications by employers to ensure Manchester's economy is increasingly productive, competitive and future facing

• Despite many high performing businesses and sectors, and dynamic geographic pockets, average GVA per head of resident population for Manchester is behind the UK average and well below that of benchmarks such as London and Munich

• Some 68% of employers in Manchester had provided training to their employees in the 12 months prior to the survey, around the same as the England average. This means that in 2007 one in three Manchester employers had provided no training to any of their employees. • There are three key objectives: o Engaging more effectively with employers to stimulate, encourage and support them to invest in the skills of their workforce o Ensuring that provision meets employers’ needs o Stimulating and supporting innovation

Equip young people with the skills and qualifications they need to make the most effective contribution to Manchester's economy

• While there is still a gap with the rest of the country, solid progress has been made in raising young people’s starting level of educational achievement at 16 in Greater Manchester. The proportion of young people achieving 5 GCSE’s at A*-C has risen to 59%, though the number with 5 A*-Cs including Maths and English is significantly lower. • By age 19, the gap between GM and the rest of England, in terms of achievement at Level 2, is substantially narrower, reflecting the importance of learning after the age of 16 in helping young people catch up. However, at Level 3, there is a significant short fall against the national average. • On top of the lack of education, the lack of basic employability skills also needs to be addressed. • Greater Manchester is not generating and retaining a sufficient home grown young workforce with the higher level technical skills required by the sub region’s developing economy. • Key objectives are: o Increasing the proportion of young people participating in education, employment and training o Delivering a comprehensive range of high quality vocational based learning options which truly motivate young people and lead to higher achievement o Engaging employers to enrich the learning options available to young people o Raising the aspirations of young people regardless of their background to go on to higher education either through the academic or vocational route

Tackle worklessness, including through improving job sustainability, for those living and working in Manchester by linking people, jobs, training and services • The employment rate in Greater Manchester is 72%, 2% lower than the national average. This is too high. • The total out of work and claiming some sort of benefit is 288,350 (18%) and likely to rise in the current economic climate. • Of those on benefit, 15% are on JSA and 55% are on Incapacity Benefit or Severe Disability Allowance • 78% of those on Incapacity Benefit have been claiming for over 2 years • Key objectives are: o Tackling cultures of worklessness and engaging with more inactive groups o Securing high quality assessment and advice for individual clients o Providing clients with the tailored and integrated support they need to be competitive in the labour market o Connecting workless residents with local employment opportunities o Providing effective support to help residents stay and progress in employment

Opportunities

Issues / Constraints

How could the Local Development Framework respond The employment policies in the LDF Core Strategy should relate to the priorities set in

the Strategic Framework to help ensure sustainable economic growth in Greater Manchester.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D18 Title Manchester Independent Economic Review – Wigan Brief Proponent body Status (e.g. statutory, non-statutory) Non-statutory Date produced March 2009 Why is it relevant to the Local Development Framework? The Manchester Independent Economic Review (MIER) is a 12 month programme of research, run independently of the Government and its agencies in Greater Manchester and the North West. It has commissioned impartial studies which address growth in the City Region and also the questions about how growth in the regional centre relates to the rest of the region, and how to ensure that innovation based growth will benefit the regional and UK economy, as well as the City Region.

The MIER consists of six ‘Core Projects’ (plus a Review of the Daresbury Science Campus and its impact on the UK, NW and MCR economy), looking at a different aspect of the MCRs economy.

Key messages, requirements, objectives Economic Context After years of strong growth, the world economy has experienced marked deceleration towards the end of 2008. The challenge is to make sure that the City Region’s diverse knowledge economy is able to meet the demands of this current economic crisis and even become stronger and more dynamic through it. Beyond the short term, partners must continue to plan strategically for long term growth.

UK: • Now in recession – credit crunch and significant slowdown in the UK services sector, consumer spending and UK business investment. • In 2008, housing market activity fell and house price inflation eased rapidly • Weaker sterling; pound significantly weakened against the US dollar

North West: • Since 2000 the growth gap between GVA in the NW an UK has narrowed – but the GVA per head gap with the UK average has remained stable at 12-13%. • Productivity levels in nearly all service sectors in the NW remain below UK average, and there is considerable potential for the NW to grow in the long term. • Rising unemployment, worsening business conditions.

Manchester City Region • Main driver of the regional economy and home to a population of over 3 million (47% of NW). Almost 90% of the net increase in the NW population and 48% of the net increase in the NW’s employment, were related to MCR’s growth in the last decade. • Generates 50% of the North west’s total economic output and is continuing to develop as a major centre of knowledge intensive industries. • Annual GVA growth rate between 1999 and 2004 (2.4%) lower than UK (2.9%) – although this masks significant differences between City Region districts. • Local companies signalling low confidence levels and a decline in investment intentions.

Business

• Wigan has 6th highest stock of registered businesses in GM • Business density rates are lower in Wigan than all other GM districts and significantly lower than GM, MCR, NW and GB rates. • Low proportion of employment in knowledge intensive sectors in Wigan compared to other GM districts and areas of the NW • Higher proportion of employment in the sectors of retail, manufacturing, construction and sport. • Wigan has a traditionally manufacturing-based economy. Location Quotients illustrate the continued importance of manufacturing, construction, retail and logistics in the borough – with levels of employment in these sectors significantly

above national averages. • The sectors that have grown most over the last decade are Education, Life Sciences, and Financial and Professional Services. This illustrates the increased importance that the ‘knowledge based-economy‘ will play to Wigan’s economy. • Forecasts show that Financial and Professional Services will be key to the GM, and Wigan’s economy, in the medium to long-term, and will play a crucial part in driving the economy’s recovery.

People

• Despite a large and growing population, Wigan still has a legacy of low skill levels and worklessness in many communities across the borough. • The MCR has a population of over 3 million, with an age profile that is younger than the UK average. • Over 300,000 people live in Wigan Borough – a large potential labour force. • As with the rest of the country, Wigan expected to witness a proportional rise in its elderly population between now and 2017.

Economic Activity and Employment • Wigan’s employment rate (73.1%) is higher than the GM (71%) and NW average (72.1%) but lower than the UK average (74.4%). • Unemployment rates in Wigan are consistently higher than regional and national rates. • Productivity levels are comparatively low in Wigan (£34,500 per employee).

Earnings • Average earnings across the borough are comparatively low when compared to GM, NW and UK averages. • Although the gross weekly wage (£429.10) is below the national average, areas within the borough do illustrate the presence of a productive and flexible workforce within the borough.

Qualifications and skills: • The occupational structure of MCR reflects the changing industrial structure of the City Region, with the movement towards knowledge intensive industries. • However, the legacy of a declining manufacturing base and a low wage economy has left Wigan with a legacy of lower levels of average skills levels, and crucially lower levels of Level 4+ skilled residents than GM, NW and UK averages.

Place

• A rich heritage combined with a keen desire for progress has created a forward looking borough for Wigan with the potential for residents to have an exceptional lifestyle to match.

Industrial land • Due to its location midway between Manchester and Liverpool and excellent transport links, the borough is able to provide easy access to a variety of UK and European markets. • Industrial and warehouse land values have risen steadily in Wigan over the last decade but remain below GM averages. • Developers remain cautious about industrial and warehouse property, with sustained price slowdowns predicted in the current economic climate.

Commercial property • GM has largest office market outside London, concentrated in central and south Manchester, Salford Quays and Trafford. • Wigan market has a low level of supply. • Lack of grade A space (18% of total supply) is restricting the market and has been reflected in some of the rents previously achieved.

Retail market

• MCR is a major centre of retailing in the Northwest and is regarded as England’s second city from the perspective of regional and national retailers. • Likely to see a very challenging 2009 with limited consumer borrowing and national recession.

Residential offer • In 2008, overall house prices in Wigan (£114,094) remained below GM (£130,201) regional (£133,614) and national prices (£179,418). • The average prices mask significant areas of deprivation in the borough. • Housing in Wigan is more affordable than in GM as a whole with house prices in 2007 being just under four-times that of income (3.63, GM: 3.96).

Opportunities

Issues / Constraints

How could the Local Development Framework respond

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table D19 Title Manchester Independent Economic Review – Reviewers Report Proponent body MIER Status (e.g. statutory, non-statutory) Non-statutory Date produced March 2009 Why is it relevant to the Local Development Framework? The Manchester Independent Economic Review (MIER) is a 12 month programme of research, run independently of the Government and its agencies in Greater Manchester and the North West. It has commissioned impartial studies which address growth in the City Region and also the questions about how growth in the regional centre relates to the rest of the region, and how to ensure that innovation based growth will benefit the regional and UK economy, as well as the City Region.

The MIER consists of six ‘Core Projects’ (plus a Review of the Daresbury Science Campus and its impact on the UK, NW and MCR economy), looking at a different aspect of the MCRs economy.

Key messages, requirements, objectives

• All of the UK’s other city regions lag well behind London. • MCR needs to increase productivity but not at the expense of London and the South East. • The primary aim of this Review is to seek to increase productivity, efficiency and living standards in MCR. A faster growing, more productive city region will be a better place to live, with more dynamism and innovation in the good times and more resilience in the bad times. This can be achieved by: o Enhancing the benefits of agglomeration o Reducing the costs of agglomeration, including housing, transport and congestion costs.

Key findings:

1. MCR’s potential - Outside London, MCR is the city region which is best placed to take advantage of the benefits of agglomeration and increase its growth. 2. Productivity rankings in the UK – MCR has highest productivity in the north. Firms in Manchester have significantly higher productivity than firms outside Leeds-Bradford and Liverpool elsewhere in the North. 3. Manchester punching below its weight – Although MCR is characterised by relatively high agglomeration economies, productivity is lower than we should expect given the size of MCR’s economy. 4. Agglomeration economies exist arising from a large, diverse urban region 5. Explanations for productivity differences – largely explained by the extent of agglomeration economies, skills, and to a lesser extent access to transport within the city region. 6. Importance of skills – Skills are a large part of the explanation for the productivity gap between the South east and the rest. Manchester higher than other cities in the north but lower than southeast and Bristol. 7. Transport links - Inadequate transport networks within MCR are an important cost of increasing the size of the city and improvements would be the largest economic payoff. 8. Housing – is the other main cost of increasing agglomeration. There are not enough houses in the places people want to live. 9. No rationale for redistributing economic activity from south to north – There is no rationale for supporting policies which try to redistribute activity in some places at the expense of others. 10. Neighbourhood outcomes are increasingly polarised – This is evident in all districts in Greater Manchester. 11. Deprivation arises at individual level, not neighbourhoods.

Recommendations:

A need to (a) boost productivity so that the growth rate increases, and (b) ensure that all

parts of the city region and all of its people enjoy improved opportunities as a result of a stronger economy.

A need to focus on skills; housing; transport; planning; and governance.

Skills:

• The highest priority is improving skills.

• Manchester needs to address simultaneously both the supply of skilled workers, and the demand from employers to use more skilled workers and to use them more effectively in high value added activities.

• Recommendation - Sustained efforts to improve the very early years experience of all young people in MCR, including at school, especially in socially isolated neighbourhoods, and a review of school admissions policies to test the extent to which existing catchment areas do indeed reinforce social disparities.

Housing:

• The availability of housing is an important element of the attractiveness of MCR as a place to live.

• Housing plays a vital role in ensuring opportunities in the more deprived parts of MCR.

• There is a shortage of the kind of housing that high skilled and professional workers demand.

• Planning policies in MCR appear to put too much emphasis on the planning of mixed communities as a primary aim rather than a beneficial side-effect of other policies. In the context of attracting and retaining the highly skilled, there is no evidence to suggest that such mixing is widely desired

• Manchester offers a high quality of life, but nevertheless needs to improve its housing offer in order to attract more skilled people from elsewhere.

• Recommendation: A review of housing strategy with an emphasis on demand conditions and the easing of planning restrictions which restrict availability and increase housing costs for skilled workers.

Transport:

• Manchester Airport is one of Manchester’s key differentiators from other comparator cities outside London and vitally important tin attracting investment.

• In terms of gaining the greatest economic benefit, focus should be on improving transport within the travel-to-work areas of Manchester, rather than between Manchester and other cities.

• With regard to external links, there is a stronger case to improve links with Leeds rather than London.

• A significant agglomeration cost arising from transportation is congestion. Congestion charging would have brought large overall gains to MCR. A strategy to achieve economically realistic traffic management is needed. No change will result in increased congestion, imposing further economic and environmental costs on the city.

• Recommendation: A review of transport planning within Manchester from the perspective of improving productivity and the connection between those areas of the city, including the regional centre, where employment is concentrated, and others.

Planning:

• National government planning policy focuses on brownfield sites, which businesses of this kind generally do not want, and business incubators which are all too often in locations that businesses do not find desirable.

• Recommendation: Planning policy should be reviewed to acknowledge the reality of economic demand and permit more expansion of suitable business premises in those parts of the city region where demand is strongest.

• Recommendation: That Manchester moves as quickly as possible to a unified regime for planning, regeneration and neighbourhood renewal. The precise balance of local and city-wide roles should be the subject of further review

• Recommendation: That Manchester, regional and national government partners undertake further detailed studies to identity whether there are potential government investments in science and elsewhere in the non-traded sector, including universities and other publicly funded research, in MCR which would be productivity enhancing for the UK as a whole.

Governance:

• Economically, the city region’s internal administrative boundaries are largely irrelevant. However strong collaboration and a shared sense of purpose will be required to take the sometimes difficult decisions arising from this review.

• Recommendation: MCR’s failure to deliver the TIF package suggests there is room for improvement in developing robust governance. The city region should therefore look again at how it takes major decisions of the kind this report highlights in order to ensure that the difficult decisions needed to promote sustainable growth are considered effectively.

• Recommendation: The development of a more effective system of programme and project evaluation. Housing, economic development, regeneration, skills and other policy areas should join transport priorities in being evaluated rigorously on a city region-wide basis.

• Recommendation: That Manchester and central Government explore fully the evidence about the costs and benefits of, and the potential for delegation and devolution of some decision-making powers, including funding.

• Recommendation: In respect of trading links and skills in particular, that the response to this review should be led by the private sector.

Opportunities • Manchester, ahead of all cities outside London, has the potential to take advantages of the benefits of agglomeration and increase its growth. • There is evidence that growth in Manchester is the most realistic way to raise overall economic growth in the north. • The Review states that Wigan is well placed on the M6 corridor. This is a major factor in terms of economic demand.

Issues / Constraints • MCR’s productivity is lower than might be expected given its size. • National government planning policy focuses on brownfield sites, which businesses of this kind generally do not want, and business incubators which are all too often in locations that businesses do not find desirable. • Manchester needs to improve its housing offer in order to attract more skilled people from elsewhere. • There is a serious threat to investment in MCR from the drying up of credit, given that firms in the city region seem unusually reliant on debt finance.

How could the Local Development Framework respond

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Housing

Local Table E1 Title Wigan Economic Development Plan Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non Statutory Date produced 2005 Why is it relevant to the Local Development Framework? The Plan is regarded as a catalyst for change. It successfully integrates National, Regional and Sub-Regional Strategies and supports the LSP Community Plan. The Plan defines clear goals and articulates the local needs and issues that have to be met and overcome so as to achieve the goals. The Plan was completed on June 2005 and was approved and adopted by the Board of Wigan Economic Partnership on 29 June 2005 and approved by the Council Regeneration Panel on 8 June 2005. Wigan Economic Partnership is one of seven thematic partnerships forming a key component of the Local Strategic Partnership (LSP) structure in the Borough. The principal role of the Economic Partnership is to develop the Economic Development Strategy for the Borough and to lead on the strategy’s implementation. The following Vision Statement was agreed at the Wigan Economic Partnership meeting held on 27 May 2004:

Before the year 2020, the Borough will be: • One of the best places to live and work with access to all the North West has to offer • A prosperous community of skilled people and successful businesses. The Wigan Economic Development Plan recognises the following in realising the vision:

The need to offer greater opportunity for local residents by modernising the local economy thereby increasing the number and quality of jobs. However, this requirement for modernisation should be balanced against the quality of life of the Borough residents. Wigan Borough does not have the development land capacity to meet the full employment needs of its residents and the development of green field sites for major new developments would have adverse environmental impact. The major centres of employment external to the Borough such as the Regional Centre, Warrington and Bolton will therefore remain integral to the growth in prosperity of Borough residents. Key messages, requirements, objectives Key Message The need to offer greater opportunity for local residents by modernising the local economy thereby increasing the number and quality of jobs. However, this requirement for modernisation should be balanced against the quality of life of the Borough residents.

The 5 principles stated by Wigan Economic Partnership are:

• To attract high quality investment will require a corresponding high quality offer in terms of environment, sites, supporting infrastructure and skilled labour. • The need to improve the transport infrastructure of the Borough to enable residents to easily access the new internal and external opportunities. The key to opening up these opportunities is the A5225. • That the full potential of the Wigan Economy can only be realised by directing economic regeneration at those in greatest need. Economic inefficiencies can be addressed by focusing on worklessness and areas of high deprivation. • That the skills base of local residents will have to increase to enable them to take full advantage of the new opportunities being created and to increase wage levels. • That Town Centres are important engines and indicators of economic prosperity and will require investment to meet increasing user expectations.

• That the growth of the Leisure, Cultural and Sport Sectors of the economy will contribute significantly to the enhancement of the quality of life for Wigan residents.

Social Inclusion In order to ensure that we improve social inclusion there is a need to understand:

• What prevents people being active and contributing members of their communities • What is the best way to motivate people? especially children and young people • What are the risk factors that tend to make things worse

Partnership Working It will be essential for the Partnership to work co operatively with other thematic partnerships in addressing many of the key issues and priorities identified. Within the Community Plan, there are identified areas where cross partnership working could be beneficial in achieving the Goal.

Sustainable Development The aim is to improve competitiveness and encourage economic growth at the same time as protecting and enhancing Wigan’s diverse environment, using resources prudently, tackling the causes of social exclusion, and recognising the needs and contribution of everyone. A sustainable development appraisal will be carried out prior to finalising the Plan.

Opportunities From the 6 Goals; • From a survivability angle, manufacturing industries are showing a net “loss” whilst financial and business services sector is showing significant increasing net “gains”. These figures mirror the overall sub regional levels but the figures for Wigan are significantly lower than other areas. • Business support services have been relatively successful in helping new companies survive, but this success has been mainly within the declining manufacturing sector, this support has to be transformed to acknowledge the desire to grow knowledge based businesses • There is a need for more people with business leadership and management skills across the Wigan economy to stimulate business growth, encourage entrepreneurship and increase business start ups. • A relatively stable workforce in Wigan means that employees are more likely to remain loyal to their current employer following employer investment in skills development and training than in other areas of the NW region. This could become a significant advantage for the Borough as it increases its attraction to potential investors. Wigan needs to narrow the GVA gap between it and the higher growth local economies in the south of the Greater Manchester. • The basic skills issues in Wigan need to continue to be tackled to ensure it remains at or above the GM average. Currently 25% of residents have basic skills needs. • It is essential that the learning and training providers are directed towards meeting the current and future skills demands for the Borough. The growth areas in the local economy are known and Wigan has the opportunity to play to its strengths in positioning itself to support the development of particular business niches (e.g. environmental technology). Issues / Constraints

Goal 1 - Build Competitive Businesses • There has been a significant shift in the types and sectors of business growth and sustainability. In 1994 new VAT registrations for SIC classified manufacturers was 60, by 2003 this figure was 35. For SIC classified financial intermediation, real estate, renting and business services the figures were 105 in 1994 and 200 in 2003. • 21% of the companies in the Borough are in knowledge-driven sectors. This is the second lowest amongst the comparators within the Local Futures audit. Wigan has a relatively high proportion of businesses in the knowledge-driven production, reflecting the Borough’s traditional strengths in manufacturing. • 96% of Wigan companies employ fewer than 50 people (source Neighbourhood Renewal Strategy). Of these approximately 75% employ fewer than 10 people illustrating that small firms are an important component of the local economy. • Although new business stock increased by 3.5% this is from a relatively low base and Wigan still has a low business density. • Identified lack of level 4 employment opportunities in growth manufacturing sectors.

Goal 2 - Attract visitors, investment and talent • Whilst the growth in knowledge-driven employment may seem at first glance to be impressive, on further analysis, the figures highlight some major concerns. Assuming Wigan maintained this growth over the years to 2001 to 2011, and other authorities

achieved zero growth, then Wigan would still only advance one place higher. Furthermore, Trafford has the third highest growth, but double that of Wigan at 63%. • This growth may well be fuelled by the massive growth in Public Sector employment and not specifically from attracting or growing knowledge-driven companies within the Borough. • Lack of quality housing to fuel investment. This has an impact on the quality of life and lifestyle of potential/current workforce (e.g. graduates)

Goal 3 - Create World Class Skills • There is sufficient provision at level 3, but uneven provision at level 2 across the borough • Measures are needed to address low rate of female employment in the Wigan economy. • There needs to be improved engagement with businesses in relation to workforce skills development. • The low self-employment rate in Wigan indicates a lack of entrepreneurship within the Borough. This is a significant barrier to increasing the rate of employment within the knowledge sector. • The majority of the working population within Wigan are not suitably qualified to gain employment in the knowledge sector. This lack of a suitably qualified and skilled workforce may seriously undermine any efforts to exploit the significant increase in available office space within Wigan. The numbers of people in Wigan and levels 3 and 4 needs to be increased. • The raising of personal ambition and expectations in Wigan needs to be tackled in order to kick start economic activity and growth by increasing business start up, bringing greater pressures on employees and employees for work based learning and increasing demands for higher-level education.

Goal 4 - Achieve Economic Inclusion • The economic exclusion of significant sectors of the population needs to be addressed. • Basic employability and occupational skills of those not in work need to addressed in order to raise their competitiveness in the labour market • How can employment opportunities be secured for people on incapacity benefits wishing to return to today’s labour market? • High levels of Incapacity Benefit claimants – there is a need to concentrate efforts within the first 6 months of claiming otherwise claimants tend to remain on Incapacity Benefit for long periods. • Quality of primary care in Wigan

Goal 5 - Ensure the best transition to working life for all our young people • Whilst there has been an overall rise in young people going into learning there needs to be an increase in those going into full time Further Education and Work Based Learning. The StAR review identified a lack of aspiration amongst residents which contributed to poor staying on rates in education. • The growing numbers of young people who have non-employed status in work based learning. There are also growing numbers of young people entering jobs without training • There is a relatively high number of young people who are not in education, employment or training, (NEET) though good work is being done to reduce this number (The group has a range of disadvantages and there is a lack of opportunity for some). • Educational achievement of young people at Key Stage 3 in some schools below the national average for national curriculum level 5+. (13 out of 21 below national average). • Educational achievement of young people at Key Stage 4 in some schools below the national average for level 2 (5 or more A*-C, GCSE grades or equivalent). (11 out of 21 below national average). • Post-16 attainment at GCE and VCE level shows a wide variation between learning providers. • Low value added at A/AVCE level of some providers. • There is a concern over the low rate of working age population qualified to Level 4 and above. This has implications for the development of knowledge industries within the Borough. • Provision in work based learning is of varying quality. Transport system and employer base does not support work related learning opportunities. Lack of suitable employers for Level 3 Apprenticeships.

• The increase in NVQ only achievement within work based learning at the expense of full apprenticeship programme. Also the poor achievement rate at levels 2 and 3. • Falling rolls in primary and secondary schools in the borough. • New build work is being undertaken at both Wigan and Leigh College and St John Rigby College. The impact of this should be taken into consideration when planning future provision. • Internal transport system does not support the development of skills, employment and education. There are issues about accessibility of colleges and schools.

Wigan has in place a 14-19 strategy, covering the period to 2014. It summarises issues in the Wigan area as: • A highly particular local geography which has strengths, but may also inhibit aspirations, participation and achievement for both young people and adults • Educational issues include poor resourcing; inadequate educational building stock; falling school rolls and some under achievement • A general lack of strategic planning and coherent provision by the range of partners involved in the delivery of the 14-19 phase and beyond. This results in a lack of co- ordination and co-operation in the planning of the 14-16 curriculum and work related learning across schools. • A prime opportunity to access funding and create an educational culture based on participation in learning throughout life and leading to marked improvements in individual achievement. • A high level of segregation at secondary level for Learners with Learning Difficulties and Disabilities (LLDD). (Special schools are in the process of addressing this by implementing the outcomes of the Special Schools Review).

Goal 6 - Attain a modern, integrated and efficient transport network • There is large-scale recognition of the inadequacy of the Borough’s internal transport system. • How important are our external communication links. • Internal transport system does not support the development of skills, employment and education. How could the Local Development Framework respond The Local Development Framework should have full regard to the issues and opportunities identified in the plan. The plan is a key document in formulating its spatial vision and objectives in the Local Development Framework Core Strategy and Allocation and Infrastructure DPD. Questions identified in achieving the goals of the plan should be addressed through preparation of these DPDs. For example:

Goal 2 - Attract visitors, investment and talent • Should the Borough continue to replace jobs lost from the traditional sectors with jobs from the service/knowledge sectors to maintain the status quo? • What is the scale and quality of employment land supply needed to attract sufficient new jobs to provide for the needs of the local people? • Should the Borough seek to increase the total number of jobs available so as to reduce the net outflow of commuters?

Goal 4 - Achieve Economic Inclusion • How are people to be engaged to rejoin the formal labour market and secure employment? • How can improvements in health be linked to economic development and regeneration? • How joined up are local agencies delivering services. Are structures comprehensive, co-ordinated or relevant?

Goal 6 - Attain a modern, integrated and efficient transport network • Which key transport infrastructure projects are fundamental to the Borough’s economy? • Are there solutions to these problems which do not involve substantial new roads? • Assuming that new road building is the only realistic solution, how do we secure the resources to achieve our aspirations? • What priority should be given to the development of local employment as a means of reducing travel requirements? • What priority should be given to lobbying relevant agencies to secure improvements in links to adjoining major centres of employment and the national transport system?

Implications for the sustainability appraisal The appraisal framework should consider the issues outlined in this review (these should be tackled in a holistic manner and not simply through “economic objectives”). A number of indicators may also be relevant to the monitoring of the sustainability appraisal. Cross references (General) Cross Reference (Topic Reviews) • Regional Economic Strategy Housing • Regional Policy Guidance for the Retail and Centres North West (RPG 13) • The Northern Way and Manchester City Development Programme • Regional Spatial Strategy - Manchester City-Region • The Greater Manchester Strategy • Greater Manchester Economic Development Plan • Wigan Community Plan • Local Futures Study

Table E2 Title A Fresh Future For Wigan – A Marketing Strategy for Wigan’s New Economic Development Zone (B2B Study) Proponent body Quality Economic and Social Research in association with B2B International Status (e.g. statutory, non-statutory) Non-statutory Date produced 2002 Why is it relevant to the Local Development Framework? This report aims to develop a marketing strategy for Wigan’s New Economic Development Zone.

To achieve this the study comprises of evidence gathered from: • A survey of companies in the north west who had moved recently (30 firms) or were intending to move within the next two years (50 firms) • Interviews with developers, agents, and intermediaries (18) • CREDO – a national database of over 250,000 company relocations • Previously undertaken surveys of movers and intending movers • NWDA successes and enquiries databases, and the WBP enquiries database • Desk research, and previous research studies Key messages, requirements, objectives Like all regional economies, the North West is affected by trends in the national economy. Although buoyed up by consumer borrowing and spending, and public sector spending programmes, growth is running at a slacker pace. Manufacturing has been in recession for over a year, and these factors have diminished the pace of company expansions and relocations. Such trends have contributed to a subdued regional property market. With the exceptions of housing, and to a lesser extent retail and distribution, all North West property markets are quieter. Manufacturing is very quiet. According to agents and developers, key factors currently driving demand for property in the North West are: • Start-ups (small amounts of space across all sectors, and property types) • Demand for local industrial space by local firms expanding (no specific sectors) • Demand for warehousing from 20,000 sq ft right up to 500,000 sq ft, from retail operators, and 3rd Party distributors • Demand for small office units (2,000 up to 10,000 sq ft) from professional services occupiers – legal, accountants, architects, ICT, recruitment agencies, consultants – both regional offices of national firms and head offices of regional/sub-regional firms • There is some debate amongst intermediaries about the demand for out-of-centre offices, with some developers prepared to back such investments, but others considering the market is over-supplied, and that City Centres are safer • There are mixed views on the Call Centre market, with some considering demand to have peaked, but many of the recent investment announcements nationally have been Call Centres. Examples locating in Bolton and Blackburn give encouragement that such developments could be attracted to Wigan Opportunities

Over the last 5 years Wigan’s business relocation has had a positive balance of moves in over moves out. Half of firms currently undecided on a future location for their investments rated Wigan at a 3 or better on a scale of 1 to 5, where 1 was considered ‘not at all suitable’ and 5 ‘extremely suitable’ for their business needs.

Developers and agents asked to rank Wigan generally also rated it at around 3 on a similar scale, against 8 important investment locations, mainly in the southern half of the North West1ranking it from 4th to 7th on various investment criteria: Summary Wigan Wigan's Rank of 9 Score* Communications 3.2 5 Property supply/cost 3.1 6 Labour supply/cost 3.5 4 Image for business 2.4 7 Engineering/mfg business 3.6 4 Software/prof services business 2.6 7 Govt office/charity etc relocation 3.0 6 Call centre 3.5 6 Major leisure/tourism development 2.8 4 Distribution centre (for NW) 3.5 4 Shopping village 2.9 6 The main strengths of Wigan identified by developers comprised of its;

• Basic location, allied to good strategic communications

• Labour pool: size, price, loyalty and quality (for manufacturing)Competitive land and premises prices • ‘Underrated’ environment Sectors with most potential to invest in Wigan are likely; to be already well-represented in the area, to be significant in the North West region generally, to be growth sectors or mobile for other reasons.

Some functional sectors, such as Call Centres, Shared Service Centres and Distribution Centres might represent potential investors. Issues / Constraints Wigan has a poor image nationally as a business location. In the last Black Horse Relocation Survey in 1997, the town was ranked 39th of 48 UK cities as the most desirable city to relocate to if moving. The main weaknesses of Wigan identified by developers included; • Poor image for business – ‘flat caps and mill clogs’ image persists • Internal communications – especially lack of A5225 • Lack of sites connected to good communications • Quality of life/environment For office occupiers • Lack of established offices market and business services sector • No university Views on the specific EDZ sites were generally positive, with Pemberton Colliery, Westwood Park and Wigan Pier exciting most interest. But the levels of interest were contingent on the improvements to access that would come from implementation of the A5225. The Pemberton site is viewed as stand alone, whereas the other two sites are seen as

1 Chester, Liverpool Centre, Manchester Centre, Skelmersdale, St Helens, Trafford Park, Warrington, Wolverhampton

linking into the town centre. Wigan Pier is viewed as requiring a comprehensive regeneration. Wigan Enterprise Park is viewed as being ‘the wrong side of town’, but having more potential if the road can be extended to improve access to the site. Wigan has a weak record in attracting investments from some of the sectors expected to grow most strongly over the next decade. Business and professional services are sectors projected to grow by over 120,000 jobs from 1999 to 2010 in the North West, but Wigan has been losing firms in these sectors through relocations. Shifting the economy towards these growth sectors is a crucial objective if employment is not to decline. How could the Local Development Framework respond

To encourage future business growth, the following issues need to be taken into account; • A better choice of executive housing must be provided in attractive locations, near to the good schools that Wigan has. • Wigan needs developers to build offices, with good links to the town centre – Westwood park seems an obvious opportunity to encourage further development of an offices market, and perhaps the best opportunity to establish a business park in Wigan. • Local college and training providers need to develop and offer courses suited to occupations in the business and professional services sector. Wigan also needs to continue attracting businesses in sectors suited to its current strengths. This requires: • a mix of industrial properties to suit the needs of relocating and expanding manufacturing and warehousing businesses - 5,000 sq ft up to around 30,000 • consideration of a sheltered industrial start-up centre, offering a mix of very small units Finally, a marketing and promotion campaign is required to target the sectors identified and put Wigan on the investment map. Implications for the sustainability appraisal Provides detailed background information. May be useful for appraisal of specific policies or plans. Cross references (General) Cross Reference (Topic Reviews) Wigan Economic Development Plan Housing Retail and Centres

Table E3 Title Wigan’s Economic Development Update July 2007 Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced July 2007 Why is it relevant to the Local Development Framework?

This report forms part of the regular series providing information on the current state of the Wigan economy and progress in attracting new jobs and investment to the Borough. The report looks at current unemployment, progress on major employment sites, enquiries for sites and buildings and investments for the period April 2007 to June 2007.

Key messages, requirements & objectives

Unemployment The figures show an unemployment rate of 2.5% for May 2007 compared to rate of 3.7% for May 2006.

Further analysis reveals that in the 12 months since May 2006 some of the most deprived wards have experienced a reduction in unemployment. Although still above national average figures for wards such as Ince, Newtown and Norley have seen unemployment decrease from 7.2%, 7.5% and 8.6% respectively to 4.8%, 5.0% and 5.6% betwee n May 2006 and May 2007.

Opportunities

Progress on Employment Sites

Wigan Pier Quarter: Agreement has been reached to dispose of The Way We Were building on its closure in December 2007. The ERO has co-ordinated the design and production of material for the disposal of the building. This will be used as part of the marketing strategy to take the building to the marketplace as a commercial opportunity in July.

Makerfield Way, Ince: The 21,000 sq ft of new commercial units by Units UK are now complete. Negotiations continue with the same developer for the purchase of the remaining 3 acres, with a view to constructing another 32,292 sq ft of floor space on this plot. The outstanding environmental works should commence in the next 6 months as the development progresses, following the purchase of a small piece of land which forms an access to the other site. These will be the next phase of development under this project, and will secure more outputs within the next 12 to 18 months.

South Lancs Industrial Estate Extension, Ashton: Patrick Properties has been assembling land ownership adjacent to the South Lancs Industrial Estate. The adjacent land, known as South Lancs Industrial Estate Extension, is an allocated employment site within the current Unitary Development Plan. A paper was presented to Cabinet requesting authorisation to sell a piece of land to Patrick Properties. The sale of this land would facilitate bringing forward Phase 1 of the development.

Enquiries

The total number of enquiries received by the Property Finder Service during the period April to June 2007 was 175.

An example of enquiries received during this period include:

ƒ An engineering company requiring land to construct a training centre and machinery workshop; ƒ A component company looking for a warehouse for distribution; ƒ Small media company looking for premises as the company expands; ƒ Successful plumbing services company requiring up to 12,000 sq ft due to the expansion of their business; ƒ Building contractor requiring town centre office space to fulfil a two year contract; ƒ A food company requiring storage space; ƒ A design and manufacturing company seeking up to 10,000 sq ft on a freehold basis.

Twenty seven properties were let and 5 were sold in the period April to June 2007. These were predominately office and industrial premises with some small retail shops being taken. Issues and constraints

Employment land shortfall (Primary Employment Areas)

How could the Local Development Framework respond? Ensure that existing employment allocations and clusters have improved accessibility and future employment sites are developed to meet future employment needs of local communities. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Cross references (General) Cross Reference (Topic reviews) Economic Development

Table E4 Title Migrant Workers Report Proponent body Wigan Partnership and Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced 2006 Why is it relevant to the Local Development Framework? During the autumn of 2006 Wigan Borough Partnership and Wigan Council therefore supported a survey of Eastern European migrant workers in the Borough. The survey was based on a model trialled in East Lancashire, and combined statistical evidence with the views of private, public and third sector agencies that come into contact with Eastern European migrants. The survey does not claim to be comprehensive, but does give an indication of the current picture. In this report the Wigan survey is set in the context of national and regional information to paint a picture of what these new patterns of migration and exchange between partner nations in the EU mean for us in Wigan.

During November 2006 a survey was carried out, on behalf of Wigan Borough Partnership and Wigan Council, around migrant workers in Wigan Borough. Based on a model used in East Lancashire, the aim was to explore the experiences local agencies were having of migrant workers in the Borough. We recognised that the survey could not be comprehensive – but it has given us an insight into the experiences of a range of organisations (from employers and statutory service providers to voluntary and community sector support agencies) that come into contact with Eastern European migrants. Key messages, requirements and objectives • Over 800 people in the Wigan Borough are registered on the WRS (at September 2006), suggesting that we may have close to 2,000 Eastern European migrants in the Borough. • Migrant workers seem to be widely dispersed across the Borough, both in terms of employment and housing. Whereas asylum seekers have focussed around Leigh, and to a lesser extent the Pemberton area, migrant workers are present in significant numbers in Wigan North and South Townships, Leigh, and in smaller numbers in nearly all of the other settlements in the Borough. Opportunities • Wigan is steadily becoming a more cosmopolitan Borough. People are coming to live and work in Wigan from all over the world, and not just as asylum seekers or refugees. Leaving aside Eastern European countries, in 2005-6 National Insurance numbers were issued in Wigan to between 10 and 20 people from South Africa, from France, China, New Zealand, Iran, Thailand, Iraq, Libya, Myanmar (Burma) and India (which recorded over 110 registrations). Other registrations included people from (amongst other places) Australia, Germany, Nigeria, Portugal, Italy, Philippines, Zimbabwe and Turkey. • Opportunities to use existing structures to build on networks e.g. libraries. • Promote access to playgroups to help integration, language, etc. • Work ethos of migrants is very good – employers are very happy with their work record. • A number of agencies express a desire to be supportive and pro-active in engaging and working with Eastern European migrants

Issues and constraints

• It seems that, from an initial stage when Eastern European migrants were single males, more women, partners and families are coming into the Borough – which should provide more opportunities for sharing and integration. • Most workers are over-qualified for the mainly manual jobs they are doing – and therefore have under-used skills. Over time this may lead to migrants making better use of their skills or setting up their own businesses, but there is not a great deal of evidence of this at present. • Since EU enlargement in May 2004, people from Eastern European countries have been coming in significant numbers to live and work in the Borough. The presence of these economic migrants is a new element in the cultural diversity of our Borough, but we have had no easy way of monitoring numbers or needs of these individuals and families – and at the same time, scare stories have emerged from some parts of Britain suggesting that migrant workers are arriving in such numbers as to put pressure on statutory and other services. • Issues with accuracy of figures produced by the Workers Registration Scheme (WRS) suggesting that there are many more migrant workers in the UK than the 427,00 identified by the WRS in mid 2006. In addition these figures are based on place of work rather than residence.

• issues regarding the quality of education compared to English qualifications and language barriers. • Evidence of poor health in young people and specific health needs amongst different ethnic groups. • In terms of accommodation, many migrant workers seem to be living in multiple occupation properties in poor condition, and tensions may result because of the nature and location of these properties – unlike with asylum seekers, we have no way of influencing the settlement pattern of migrant workers in the Borough. • Issues with housing affordability in rented sector, lack of control on where migrants live and therefore balanced and mixed communities are not being achieved, most migrants live in areas of deprivation which brings its own tensions. • Long-term residents of the Borough from minority ethnic communities have little in common with new migrants • Perceptions blurred of EU migrants and asylum seekers and accusations of taking local accommodation, jobs, etc • There are no dedicated funding streams to support work with Eastern European migrants – and no obvious “lead responsibility” agency How could the Local Development Framework respond? • Ensure the evidence base incorporates the housing needs of migrants and asylum seekers • Ensure that provision of housing is related to need a located in balanced and mixed communities. • Ensure that the development of a knowledge economy considers the skills base available from migrant workers. Implications for the sustainability appraisal Incorporate issues into the sustainability framework by creating a headline objective that considers the following: community cohesion & development, equality and diversity. Cross references (General) Cross Reference (Topic reviews) ƒ Housing ƒ Retail and centres ƒ Demographics

Table E5 Title Wigan Tourism Strategy 2004 - 2009 (Draft) Proponent body Wigan Leisure Trust Status (e.g. statutory, non-statutory) Non Statutory Date produced 2003 Why is it relevant to the Local Development Framework? The Destination Wigan Strategy builds on the borough’s first strategy ‘Tourism for Tomorrow’ which focussed mainly in the development of the tourism infrastructure required to build a viable tourism destination. Destination Wigan looks to build on the borough’s inherent strengths and character and provide a clear focus for progressing tourism locally through until 2009. Implementation of this strategy will require co-ordination and partnership working across a local and sub-regional (Greater Manchester) level with leadership provided by Wigan Tourism Unit. Underpinning this vision are 2 cross cutting themes: ‘Excellence’ and ‘Winning’. Both have been extracted from the North West Tourism Vision which provides the framework for the development of this strategy. Key messages, requirements & objectives To build on the borough’s inherent strengths and character and provide a clear focus for progressing tourism locally through until 2009. Opportunities • 2001 STEAM tourism impact figures showed that the Wigan Borough is currently the 3rd most valuable and the fastest growing tourism destination within Greater Manchester (outside of the City of Manchester), reporting a year on year increase in tourism business of 22% to £193.65M. • Wigan is a popular day visitor destination with 45% of local tourism business relating to day visits. • The borough has a range of products that are attractive to the emerging and high yielding grey and business tourism markets. • Wigan Town Centre is well positioned strategically to benefit from the expected growth in rail and bus travel. • Within the Borough, tourism is an industry that the Council and its partners take seriously. The local authority in particular has put a great deal of dedication and investment into developing the tourism potential of the borough. • The Regional centres of Manchester and Liverpool provide a significant opportunity for Wigan to “piggy back” onto other tourism strategies • Sports and Business Tourism has seen very good performances. • Technology is having a significant influence on the location and way that destination and booking information is used and will require Tourist information Centres adapt to changing markets. Issues and constraints • It is predicted over the next 5 years, that growth will slowly level out and that the borough will fall in the Greater Manchester tourism league table, mainly due to increasing local competition by destinations, particularly within the Manchester city pride sub-region. • Cultural day visitor attractions including museums are expected to continue to see a decline in visitors, mainly due to the proliferation in competition over the past 10 years and changing consumer interests. How could the Local Development Frameowrk respond? • To ensure that the Core Strategy and related DPDs provide specific scope for tourism to drive the development and regeneration of the borough. Implications for the sustainability appraisal

Consider including tourism as a series of sub-questions to sustainability objectives. Including access to environmental resources. Draft targets identified are as follows. By the start of 2009 we will achieve − 1.4 million tourism visits per annum. − £225.5 M visitor spend per annum − 7400 people directly employed in local tourism. Cross references (General) Cross references (Topic reviews) Wigan Community plan Wigan Unitary Development Plan

Table E6 Title Wigan Employment Land Review Proponent body Arup and Wigan Council Status (e.g. statutory, non-statutory) Non-Statutory Date produced December 2007 Why is it relevant to the Local Development Framework? The Employment Land Review forms an essential part of the Local Development Framework Evidence Base. It provides data on what employment sectors growth is likely to occur and how the Core Strategy can respond to this, through providing figures on how much land is likely to need allocating. All existing allocated sites and important non- allocated sites are appraised and a recommendation is given for whether or not the site should be retained, modernised or released. Key messages, requirements and objectives Headlines:

• The borough has a net forward supply of 167.53 hectares (4 hectares higher if poorest performing sites are retained). (p.70)

• There could be a need to allocate between 125 and 170 hectares of employment land through the Local Development Framework to address the deficit in the supply of employment land. (p.75)

• Considered that the borough could aspire to the higher end of the 293 – 336 hectare range. This means a shortfall of 164.1 hectares or 168.04 hectares if the worst performing Primary Employment Area sub-sites are released. (p.73)

Quantitative Employment Land Demand Analysis

• Several methodologies and scenarios were looked at to establish a figure for employment land take up to 2026:

o Historic take up rates. These are considered to be the most accurate but are no longer viewed as appropriate. Based on data from 1989 – 2006, this gave a 318.57 hectare land requirement. Using data only from the last ten years, this was reduced slightly to 307.02 hectares. The historic take up data does not provide data relating to the use classes order categories (i.e. B1, B2 and B8). (p.42)

o Office of National Statistics (ONS) commercial and industrial floorspace figures. These cannot be broken down into the use classes order categories because they are based on Office, Factory and Warehousing rather than the use classes. The growth figures were translated into economic land projections by applying a plot ratio of 40%. This gave a total of 213.7 hectares, 49.68 for B1, -46.2 for B2 and 233.4 for B8, with drastic growth in B1 and B8 and a sharp decline in B2. (p.39)

o Oxford Economic Forecasting econometric model: This assessment is based on three scenarios A) The reference scenario 2005 (acknowledges future growth potential within the city region) B) The optimistic scenario 2005 (looks at additional growth in city region through addressing skills gap and factors such as infrastructure improvements) C) The reference scenario 2006 (uses more up-to-date ABI data than the 2005 model).

The net demand for B1a office could be as high as 21.63 ha; Net demand for B1b/c/B2 Industrial use is in decline and this could be as high as -58.32 hectares over the period 2005 to 2026. B8 Warehousing could increase to 19.53 ha net over the twenty-one year time period.

The figures produced by the econometric model are net. The negative figure for B2 uses simply means that the net difference between new B2

land developments coming forward and B2 land lost to other uses is likely to be strongly negative. (p.30-38)

o The preferred scenario: This is similar to the model used by the North West Regional Assembly in preparing the North West’s Regional Spatial Strategy. This used past take up rate adjusted on the basis of modelled GVA (Gross Value Added) growth. The preferred scenario for Wigan is past take up rates moderated on projected growth in employment modelled in the Oxford Economic Forecasting econometric model. (p.44)

o The results of the preferred scenario show 293 hectares of land for scenario A, 335 hectares for scenario B and 317 hectares for Scenario C. This compares with 319 hectares based on past take up rates.

Qualitative Demand Assessment

• The Office sector: (p.48)

o Emerging office market mainly based in edge of town locations and on the East Lancs Road corridor.

o Rental values range from £8 to £13.50 per square foot, lower than other areas across Greater Manchester.

o Estimated yields are 6-7%.

• The Industrial sector: (p.48)

o There are large variations in the quality and type of stock that is available. There are high quality prime industrial locations such as Stone Cross Park ranging to poor quality secondary locations such as Wallgate, Wigan.

o Values are estimated to match those in across the sub-region.

o Prime yields are under 7% and secondary yields are typically 7-7.5%.

Site Assessments • All 36 of the Primary Employment Areas allocated in the Unitary Development Plan, 27 unallocated clusters and 19 safeguarded land sites were assessed based on: commercial viability, local market conditions, the quality of the site and the wider environment, the strategic access and catchment, environmental sustainability and other policy considerations. (p.58) • The Primary Employment Areas represent 790 hectares of land. It was recommended that 587 hectares were retained, 199 hectares were considered for modernisation and 3.9 hectares were considered for release (part of Moss Industrial Estate and Newton Road, Lowton). (p.62) • The Clusters represent a total of 131.45 hectares of land. It was recommended that 32.33 hectares were retained, 93.5 hectares were modernised and 5.62 hectares were released (Leyland Works, Wigan, Bispham Hall Business Park, Billinge and Welch Hill Mill, Leigh). (p.65) • The safeguarded land sites that were appraised covered a total area of 485.6 hectares. The top third sites (at Appley Bridge, Tyldesley, Astley and Golborne – all on the edge of the borough) accounted for 83 hectares and it was considered that these could be allocated subject to further work in the production of the Development Plan Document. (p.67)

Opportunities • The Employment Land Review provides an assessment of employment sites, safeguarded land and clusters of non-allocated employment land. These assessments can help inform planning decisions. The Office Sector • The emerging office market has been strengthened by edge of town

developments and development along the A580 East Lancs Road. • Locations close to the strategic road network or major infrastructure improvements will attract private sector investment. (p.73) The Industrial Sector • The regeneration of sites and property has helped the borough adapt from its heavy industrial past. Continued economic stability has resulted in high occupancy levels. (p.74)

Issues and constraints

• The forecasts are not set in stone – there is slight economic uncertainty at the moment and it is difficult to see how this is factored into the scenario calculations. • There are some limitations in the forecasts • Only ‘B class’ employment uses are included, not other employment generators such as retail, leisure and tourism.

The Office Sector • Gaps in portfolio include new/refurbished business space that would attract high tech companies. Older style property that attracts poor quality companies presents a negative image to the business community. • The office stock in Wigan typically consists of poor quality 1950s and 1960s town centre offices with limited parking. Wigan not considered an office location. • A lack of high quality premises in the borough has lead to a significant amount of out-migration to neighbouring areas such as Warrington. • Rents are lower in Wigan when compared to the rest of the sub-region. (p.73)

The Industrial Sector • There is a recognised shortage of industrial development land in the borough. • The poor road infrastructure needs to be overcome to ensure future business growth. (p.74) How could the Local Development Framework respond? The information presented in the Employment Land Review will inform strategic allocations and policy direction in the Core Strategy. This will help meet the objectives set out in the Issues and Options document for Economy and Employment. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table E7 Title Strategic Masterplan for Wigan South Central Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced May 2008 Why is it relevant to the Local Development Framework? This document sets the strategic masterplan for the Wigan South Central Area. In order to realise this vision, the Council will need to translate this Masterplan into the Local Development Framework through the allocation of sites and creation of new planning policies. Key messages, requirements and objectives Strategic objectives:

• Improve accessibility (both public and private) within and to Wigan South Central

• Make Wigan South Central’s natural assets a catalyst for repositioning the area

• Ensure that development opportunities are maximised to attract high value employment

• Ensure Wigan South Central meets investment criteria of target sectors – the right housing, the right skills, the right facilities and attractive environment

• Ensure that existing residents benefit from new opportunities

• Attract new residents into Wigan South Central

• Ensure transformation of Wigan South Central brings wider benefits to the rest of Wigan Borough

Delivery of the Masterplan as envisaged could deliver the following outputs over the next 15 years:

• 240,000 sq m of modern office space

• 35,000 sq m of modern industrial space

• 55,000 sq m of warehouse space

• 6,000 sq m of retail space

• 2,500 new homes

• 3 hotels, new car parking and a new school.

The Masterplan identifies the following sites for future employment uses:

• Wigan Pier Quarter – Mixed use development including B1a office;

• Westwood Park – 1 million sq ft of floorspace (approx. 92,900 sq m) – a vibrant mix of manufacturing, marketing, warehouse, research and development, hotel and office facilities. To become the largest clothing and textile industry centre in Europe;

• Pemberton Colliery – Mixed use development comprising employment, housing and supporting uses.

The Masterplan also identifies the following sites for development:

• Robin Park and the North West Corridor – housing-led mixed use development on sites surrounding the existing leisure and retail uses at Robin Park

• Worsley Mesnes and Parson’s Meadow – environmental improvement schemes and corridor improvements

Key actions (Accessibility):

Strategic and local road infrastructure:

• Completion of the A49 Access Wigan Link Road between Goose Green and Westwood Park.

• A radial distributor link connecting Junction 26 of the M6 with the A49 Link Road.

• An outbound southern relief route in two phases –

o In the short term, a connection is proposed between Pottery Road and the Saddle Junction

o In the longer term a full two-way southern relief route is proposed between Chapel Lane and the Saddle Junction via an existing Corporation Street alignment, passing under the railway and connecting with Robin Park Road to the north.

• A new Wigan Inner Relief Route between the Saddle Junction and North West of the town centre. This existing proposal would tie in with the Southern Relief Route to create a full inner ring road for Wigan town centre

Transport Hub:

• The transport hub will create a link between Wigan Wallgate and North Western stations by providing covered walking routes and improved road crossing facilities

Public transport and park and ride:

• Establishing the relief routes will divert vehicular traffic and allow bus priority routes to be established through the Pier Quarter. New bus routes will also be established to connect key employment sites to residential neighbourhoods.

• Potential to create a park and ride facility at Pemberton Station.

Walking and cycling:

• The Strategic Masterplan establishes high quality pedestrian and cycle routes by utilising existing green corridors

Key Actions (Heritage):

• Freestanding, individual landmark buildings to be enhanced through specific measures e.g. lighting, landscaping

• Securing appropriate uses for heritage buildings

• Heritage corridors to contribute to the creation of attractive environments for pedestrians and cyclists and link closely with the green space and pedestrian and cycle improvements across Wigan South Central

Key Actions (Green space and waterways):

• Creating a network of high quality green spaces linked by green corridors for use by pedestrians and cyclists

• Reinforcing Wigan Flashes as the focal point of the Greenheart initiative through opening up views from the elevated A49 link, promoting the creation of a visitor centre to act as a landmark gateway to the Flashes and improving linkages to the surrounding areas

• Enhancing Parson’s Meadow through improving the quality of the space and linkages to the surrounding areas.

• Enhancing the appearance of key routes into Wigan Borough through landscaping and environmental improvements

• Creating a strong north-south corridor along the canal and river from the Flashes through the Pier Quarter and to the north west of the town centre to improve accessibility between the areas for pedestrians and cyclists

• Creating new green spaces and areas of public realm within new developments and utilising green spaces to integrate new and existing development.

• Raising the environmental quality of existing development through establishing ‘green spokes’ that extend into sites and link to the wider green space network

• Ensuring a balance of quality and quantity in playing fields provision across Wigan

• Ensuring new development benefits from high quality landscaping Opportunities

• A new direct connection to the M6 between J26 and the town centre, via the former Pemberton Colliery, will establish a high quality employment corridor. Establishing the link across the M6 between the M58, Wigan and Manchester will represent the missing rung in the ladder of east-west connections across the region. Improving linkages to the M6 are crucial to the economic growth of the Borough. Although close to the M6, access is poor. Congestion is an issue in Wigan however, unlike many towns and cities, the network is not always operating at capacity. Tackling a few key pinch points should greatly enhance accessibility across Wigan. The ‘Access Wigan’ proposal will open up access to Westwood Park, creating a connection between the A49 and the south of Wigan town centre. The delivery of ‘Access Wigan’ will also help to relieve congestion in the Pier Quarter by creating an alternative route between Junction 25 of the M6 and the town centre. To make more of the Borough’s natural resources (green space, waterways and heritage assets) as a recreational asset and as an environmental resource. This Strategic Masterplan will ensure a comprehensive approach to regeneration across Wigan South Central:

• Enabling transport infrastructure to have sufficient capacity to accommodate new development in a sustainable manner;

• Delivering improvements to the environment through addressing the impact of traffic on local roads and neighbourhoods;

• Balancing competing demands for land and ensuring that development reflects market demand and policy requirements in terms of timing, quantum and mix;

• Offering supporting actions to ensure our local people are able to benefit from investment and improving the overall quality of life including educational opportunities and skills;

• We and our partners are committed to delivering the Strategic Masterplan and generating the political and financial support required from local, regional and national stakeholders Issues and constraints

The following challenges exist:

Establishing strategic transport linkages: • Congestion

Improving local connectivity: • Movement constrained due to rail/canal/river bridges • Lack of alternative routes around the town centre and Pier Quarter results in bottlenecks and reduced environmental quality • The Wigan South Central area is severed by numerous roads, railway lines and canal corridors. This makes movement across and within the area challenging, especially for pedestrians and cyclists.

Capitalising on green space, waterways and heritage assets: • The built form generally turns its back on Wigan’s natural resources and the attractive environments are hidden from view as people travel into Wigan on key routes resulting in negative perceptions.

Supporting economic growth: • The town has a limited profile as an office destination, with a small supply of office space which is predominantly pre 1980s • Central areas such as Wigan South Central are characterised by higher rates of rental activity and lower value, terraced property.

Enterprise, education and skills: • Levels of self employment and business start ups are below the regional average • One in three of our working age population across the Borough has no qualifications • Only 13% of our working age population are qualified to degree level or equivalent, below both Greater Manchester and the North West (figures are most acute within the Wigan South Central area) • The lack of a University presence in the Borough is recognised as a barrier to promoting higher skills amongst the workforce.

Deprivation: • Areas within Wigan South Central have high levels of deprivation. Worsley Mesnes in the heart of Wigan South Central and Marsh Green just to the north are amongst the most deprived neighbourhoods in Wigan Borough.

How could the Local Development Framework respond? By ensuring that the Core Strategy and Site Allocations support the vision and objectives of the Wigan South Central Masterplan and enable effective delivery of the identified key actions.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Housing

Table E8 Title What Makes Wigan Work? : The Worklessness Strategy for Wigan Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced September 2008 Why is it relevant to the Local Development Framework? The worklessness strategy for Wigan will define the overall approach to reducing the levels of worklessness in the Borough. This objective is one that the Local Development Framework sets out to deliver (Objective EE9).

Key messages, requirements and objectives

Baseline Data

• Wigan has a worklessness rate (the percentage of the working age population claiming out of work benefits) of 18.2% (34,670 people). This is higher than the North West average (17.5%) and the UK average (14.2%).

• Of the 34,670 people claiming work benefits, 51.5% are male and 48.5% are female. The working age population is split 52.6% male 47.4% female.

• Encouragingly, there has been a declining worklessness trend in Wigan in the last 8 years (1999-2007), although in this time period Wigan has not closed the worklessness gap compared to the North West and UK averages. Unfortunately the worklessness rate within Wigan’s most deprived Super Output Areas has seen virtually no reduction in the last 8 years.

• 49 of Wigan’s Super Output areas are in the 10% most deprived nationally. These Super Output Areas are home to approximately 25% of the borough’s working age population.

• In the most deprived Super Output Areas, the worklessness rate is considerably higher than for the whole borough at 31%.

• The largest proportion of worklessness results from 60% of the total claiming incapacity benefit (20,690 people). 10.8% of the working age population claim incapacity benefit, higher than the North West average (9.5%) and the UK average (7.2%) – the majority of IB claimants have mental health related illnesses.

• Although the number of Incapacity Benefit claimants has reduced significantly in Wigan since 1999, the rate in the most deprived areas has remained static (with significant increases for mental health related illnesses).

• 13.5% of the worklessness total is Job Seekers Allowance claimants. The rate of Job Seekers Allowance claimants in Wigan (2.5%) is below the North West average (2.6%).

Three priorities are identified from the evidence base: • Priority 1 – Reduce overall levels of worklessness in the deprived communities • Priority 2 – Reduce the number of people claiming Incapacity Benefit due to mental health issues across the Borough. • Priority 3 – Reduce the number of young people (under 25) claiming Incapacity, Job Seekers Allowance, and Lone Parent benefits. Opportunities • There has been a decline in the number of Incapacity Benefit claimants over the last 8 years.

Mainstream Funded Activity

• Wigan will be in receipt of £21 million of Working Neighbourhoods Fund (WNF) over the next 3 years.

• Also an opportunity to bid for funding from other sources such as European Programmes and Coalfield Funds.

• Current mainstream activities to address worklessness include Pathways to Work, New Deal and Next Step.

• Current mainstream activities to address low skill levels include Train to Gain, Adult Community Learning and Skills Coaching.

• Current mainstream activities for increasing levels of enterprise, which are now being consolidated under the Business Support Simplification Process, include Business Support and Business Start Up. Issues and constraints

• 60% of Incapacity Benefit claimants have been claiming for over 5 years.

• In Wigan 6,600 Incapacity Benefit claimants are statistically unlikely to ever work again.

• Over 50% of young Incapacity Benefit claimants (515 people) aged under the age of 25 live in the deprived areas.

• Wigan has a higher proportion of Job Seekers Allowance claimants that are aged 18-24 than the UK and North West average.

Barriers • Several barriers to success are identified in the strategy. These are things that may be preventing workless people to gain long term employment. The 2 key barriers to success are (a) low skill levels and (b) low enterprise levels.

Skills

• Poor basic skills – There is an extremely high number of people living in deprived areas with literacy and numeracy issues e.g. in some areas of Norley, over 92% of adults have issues with numeracy. • A lack of formal qualifications - The percentage of people in Wigan without a formal qualification is 19.4%, significantly higher than the North West (15.8%) or the UK (13.8%). • There is a lack of appropriate vocational qualifications in the borough.

Enterprise

• Wigan’s low level of enterprise activity are characterised by: o Below average business density; o Low business start-up levels; o Low self employment rates; o Low amounts of women in business; o Low business survival rates (especially in deprived areas); o Low levels of innovation; o Weak knowledge economy; o Weak social enterprise sector.

Mainstream Funded Activity

• There are still many gaps found in Mainstream Funded Activity including long term Incapacity Benefit claimants, training for vocational qualifications and potentially business start ups.

How could the Local Development Framework respond? The Worklessness Strategy is being produced in the context of the Sustainable Community Strategy and the Local Area Agreement. The Local Development Framework is being produced in the same context, so it is likely that the Framework will play a part in delivering some of the objectives of the worklessness strategy and vice versa. Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Local Area Agreement Communities Sustainable Community Strategy

Table E9 Title Wigan B2B Research Information – How are we doing? A Final Review and Evaluation Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced December 2007 Why is it relevant to the Local Development Framework? The B2B Study, through consultation and engagement with developers and agents and companies across the 4 sectors of manufacturing, professional services, financial services and creative industries within the Borough, identifies what companies look for when choosing a business location. The Study also considers how important the image of an area is to business and how proactive marketing can influence perceptions and image.

Key messages, requirements and objectives Key relocation factors:

• Workforce and skill availability (considered most important)

• Transport/accessibility (an escalating concern)

• Costs (increasingly important)

The best locations for business:

• Are those that are in the public eye and seen as popular with increasing investment and prosperity

• Have a good supply of quality, skilled staff

• Are accessible and have a strong transport infrastructure

• But costs remain competitive

The worst locations for business:

• Accessibility issues, lack of transport and congestion problems can cause a location to be judged poorly

• This linked with the issue of skill shortages and high costs will cause a location to be rated poorly

• Dissatisfaction also revolves around crime, security and safety

• A lack of investment interest can also cause a location to lose its shine (this can also be linked to failures in city management or decision making)

A change in market conditions:

• The market has changed considerably over the last few years and is much less buoyant and more uncertain

• Business optimism is 15% lower than 2 years ago

• Satellite towns and cities are experiencing more enquiries than main cities

• Smaller/medium sized properties show strongest demand and tends to be through the local market

Type of enquiries:

Manufacturing is a declining sector with exceptions within niche or higher end markets; the Financial and Professional sector (solicitors/accountants etc) have all shown growth in terms of new office space; Service, Leisure and Creative is a growing sector, Service being the growth industry nationally.

Ideal location:

• Accessible (sufficient transport infrastructure)

• Offers access to an ample and established workforce

• Within close proximity to other business networks

• Attractive to the workforces as a place to live and work, level of property prices.

Choosing a New Business Location:

Top influencing factors Lesser influencing factors

Availability of suitable site/premises Close to customers and suppliers

Cost or rent Attitude of local EDA or LA planners

Good parking Opening up new/wider markets

Quality of life Town Centre location

Image for business Labour costs

Motorway access Financial assistance area

Onsite services Close to airport

Freehold or long lease Close to seaport

Labour/skills supply

Specific Requirements of Target Businesses:

Over 90% of past movers and 70% of potential movers acquired/seek pre-built premises

The majority of past movers (approx 63%) rent/lease rather than purchase the freehold. Potential movers are 50/50.

Over 50% of past and potential movers have got/will require floorspace under 5000 sq foot.

Over 60% of past and potential movers require under 2000 sq foot of external site space.

Image:

• When showed images of Wigan, first impressions were very positive

• However, front of mind associations are still of the stereotypical ‘Northerner’

• Wigan has an improving image but one that still needs working on

• The success of rugby and football teams cannot be underestimated

• Learning from Warrington

Wigan vs. the competition

• Wigan is seen on par with cities of Bolton and St Helens

• In the eyes of developers and agents, Wigan has improved as a business environment since 2005

• However, so have other competing locations in the North West

• Liverpool has seen considerable increases but still isn’t deemed as strong as

Manchester

• Bolton and Wigan are becoming more interesting although Wigan is still suffering with a very poor image and in terms of accessibility

• Wigan’s main strength is its labour supply & cost of labour in comparison to the other towns

• Industries most suited to Wigan are still manufacturing and logistics

Over 90% of past movers and 85% of potential movers did not consider Wigan as a potential location for their business, with 76% stating that they would not consider Wigan in the future. The main reasons being:

• Distance from where existing staff live

• Distance from existing customer base

• Problems with motorway traffic congestion on the M6 and in the town centre

Views on Wigan’s EDZ sites

Westwood was considered to have the most potential as a business location – although confusion about the site’s future exists in terms of road links (is the motorway link road happening?) and potential availability.

With the exception of the Wigan Pier Quarter (due to its promotion), and to a lesser extent Pemberton, the vast majority of respondents were unaware of all EDZ sites in Wigan.

Only 32% of respondents said they would consider any of these business locations in Wigan (compared to 52% in 2005) – mainly due to poor accessibility and not being close enough to Manchester and Liverpool.

Getting Noticed:

• Need to raise awareness – indicate levels of skills available, the availability of labour, the benefits of moving to the area, the level of grants available etc

• Need to quash negative perceptions – PR stories etc - use success stories and local business cases to counteract negative perception

• Create Partnerships

o Need to heighten communication and partnering with agents and developers

o Organise events & forums with key speakers to instigate innovative thinking and networking

Suggested actions:

• Advertising campaign to market Wigan’s Unique Selling Points and strengths to the target markets

• Promote Wigan Pier Quarter to creative industries

• Invest in EDZ to develop smaller, more suitable premises to attract SME businesses to the region Opportunities

• Future potential growth of the region

• Lack of opportunities in city centres (Manchester and Liverpool)

• Low awareness of what Wigan has to offer

• Cheaper rates

• Creative industry segment

Issues and constraints • Economic slowdown • Highly competitive marketplace • Cities drawing the young talent • Poor image – however the investment of money can drastically improve an area’s image e.g. Salford Quays

How could the Local Development Framework respond?

• The allocation of suitable employment sites in the Core Strategy.

• Ensuring that the improvement of accessibility and transport infrastructure are major priorities.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table E10 Title Wigan Coalfields Research Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced December 2007 Why is it relevant to the Local Development Framework? Wigan MBC commissioned SQW Consulting in July 2007 to undertake socio-economic baselining research in the Wigan coalfields. This final report constitutes the agreed output of the work. The research builds on the findings of the SQW-led national interim evaluation of regeneration in the English coalfields published in early 2007. The 2 primary objectives for the study are:

• To explore the regeneration and policy contexts in which the Wigan coalfields are situated as part of a wider assessment of the key remaining socio-economic challenges facing these areas; • To identify the key challenges and opportunities for addressing the remaining issues facing the Wigan coalfields.

The Wigan coalfields, as defined by the national interim evaluation, lie at the heart of the Wigan borough encompassing nine wards – Abram, Douglas, Hindley, Hindley Green, Ince, Leigh East, Leigh West, Leigh South, and Winstanley. They form a key corridor connecting Wigan to Leigh, running parallel to the M61 and M6 motorways, in a south-easterly direction away from Wigan town centre. This includes Winstanley to the west, Abram and Hindley as well as Wigan and Leigh.

Key messages, requirements and objectives Key findings from the national interim evaluation: • The three coalfield-specific programmes assessed (The Coalfields Regeneration Trust, English Partnerships National Coalfields Programme, and Coalfields Enterprise Fund) had made a substantial contribution to the regeneration challenges faced across the coalfields. They had made considerable headway with physical renewal, significant progress with regard to skills and community development and significant contributions to employment generation in some of the coalfield areas.

• However, the evaluation also found that significant problems persist across the coalfields particularly with regard to:

o Access to employment opportunities – Levels of employment and economic activity remain generally lower in the coalfields than non-coalfield areas o Education and skills – attainment levels remain below the regional and national average in coalfield areas, as is the proportion of adults with Level 4+ qualifications o Public health - continued support is required where small pockets of former miners with specific work-related illnesses remain. However, much more substantial public health issues driven by low income and lifestyle choices remain. For example, smoking, alcohol, unhealthy diet and a lack of exercise, as well as poor sexual health, drug abuse and teenage pregnancy still need to be addressed across the majority of the coalfields. o Transport - economic adjustment in some coalfields is being hampered by poor strategic transport links and inadequate local public transport provision. This acts as a barrier to investment in some areas and is preventing local residents from easily accessing new employment opportunities.

• The problem for the people residing in many coalfield areas is that they are disadvantaged by where they happen to live, and by an historic dependence on coal mining which was lost, in many cases, very abruptly.

• The performance of the coalfields since 1998 varied markedly in terms of employment re-adjustment. Further, there was a tendency for those areas showing more sustained improvements in employment prospects to be marked by less

severe social and environmental deficits. The national interim evaluation concluded that the Wigan Coalfields had improved since 1998.

• Wigan coalfield itself continues to suffer from relatively high levels of deprivation with particular issues around poor public health, worklessness and physical degradation. Further, the research identified poor local transport connectivity as a key barrier to future growth. In summary, the research found that clear challenges remained in terms of regenerating the area.

• The research also revealed a wide range of effective regeneration activity seeking to address these ongoing issues, both specific to the coalfields and in the wider borough. For example, the physical developments under the National Coalfields Programme at Bickershaw North and South (together totalling some 207 ha of land being redeveloped) were found to offer significant potential employment, housing and quality of life benefits.

• The Coalfields Regeneration Trust’s Higher Folds Special Coalfield Area (SCA) activity was playing a key role in building local capacity and fostering community cohesion. The evaluators also reported that the SCA had contributed significant outputs with regard to skills and the provision of advice on health and welfare issues.

The prevailing socio-economic conditions in the Wigan coalfields: • There remains significant deprivation and deeply embedded socioeconomic challenges in the Wigan coalfields. On many measures, compared to the wider Wigan borough and regional and national performance, there is a clear and persistent deficit.

• By way of health, labour market, educational and environmental indicators, the Wigan coalfields remain to a very real degree adversely affected by the legacy of mining in the area. the sectoral take-up of economic activity suggests that the area remains tied to its tradition of generally low-value employment and few businesses are categorised as being knowledge intensive. As a result, relatively few people travel far to work in the coalfields, limiting its potential to generate economic activity and drive wealth creation in the area - This is a key challenge and by building on the strengths of the current economic base, moving into higher-value sectors and improving the strategic and local transport networks there is the ability to increasingly do so.

• There is evidence of real progress in the coalfields. More people are off key benefits and into work, IB-SDA claimants rates are down suggesting improving public health, and the working age population is increasing, thus providing opportunities for employment and economic activity.

Opportunities Strategic challenges and opportunities:

• First, reducing the health deficit in the coalfield areas. This is crucially important as poor public health is not only clearly an issue in itself. It also has wider economic knock-on effects as it reduces economic activity and output in an area.

• Second, and closely related to this, the persistently low levels of employment and economic activity in the coalfields must be addressed. Work is the best pathway to a better quality of life. In the coalfields, however, there remain significant labour market challenges. Central will be attracting high quality investment, creating jobs and generating wealth.

• Third, changing the low level of knowledge-based and high-value employment in the coalfields. It is unrealistic to expect the coalfields in the short-term to dramatically transform its economic base. Indeed, support must be geared towards sustaining and improving current business. However, the area remains dominated by unsustainable low skilled work and a controlled move up the value chain is

crucial.

Issues and constraints Key district level issues:

• Implementing the local and strategic transport infrastructure changes necessary to bring the system into the 21st Century. An effective and sustainable transport system is essential if Wigan is to attract workers from outside, increase investment by knowledge-based businesses and facilitate easier commuting for residents of the coalfields. At present the congestion in the town and wider borough is not only a day-to-day problem, it is also stifling longer term economic development.

• Raising levels of enterprise in Wigan. Enterprise and entrepreneurship are key drivers of economic growth as new firms foster innovative thinking and improve production methods. They also provide jobs for local people and increase the wealth being created in an economy. However, Wigan has consistently had low levels of enterprise and remains well below regional and national rates.

• Up-skilling the workforce and sustained educational improvement in Wigan. Addressing these issues will require a wide range of stakeholders to work together, from schools and colleges to local employers and public sector agencies. However, improved skills, both in today’s and tomorrow’s workers, are key if Wigan is to compete in the increasingly competitive economic environment.

• Ensuring that Wigan capitalises on its current regeneration activity and success. Much has already been achieved e.g. Grand Arcade and Pemberton Business Park offering significant employment opportunities; Westwood Park receiving planning permission with the potential creation of ‘Chinamex’, an official trading platform of the Chinese government which would create in excess of 1000 new jobs; major new commercial and housing complexes in development at Bickershaw South and Hindley, accompanied by the potential regional park at Bickershaw North.

How could the Local Development Framework respond? Ensure that the policies in the Local Development Framework support the regeneration of the Wigan Coalfields area by:

• Increasing accessibility to employment opportunities;

• Promoting education;

• Addressing the public health issues which are generally prominent in these areas in order to reduce the health deficit; and

• Improving strategic transport links and local public transport provision.

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)

Table E11 Title Wigan Borough Lifelong Learning Strategy 2008-2013 (draft) Proponent body Wigan Council Status (e.g. statutory, non-statutory) Non-statutory Date produced 2008 Why is it relevant to the Local Development Framework?

The Local Development Framework aims to tackle prevalent education and learning issues in the borough. This includes the promotion of lifelong learning.

Key messages, requirements, objectives

The aims and objectives of the strategy are to:

• Increase learning opportunities for all, seeking to stimulate new opportunities where gaps exist • Remove barriers to learning thereby improving access • Raise aspirations and self belief • Encourage community involvement and participation • Promote the enjoyment of learning for all • Secure the learning and skills essential to engage and support a strong and diverse base in Wigan.

Current position:

• In 2007, Wigan was ranked as the 67th most deprived local authority in England • Norley East, Worsley Hall, Marsh Green, Worsley Mesnes and Hag Fold are in the top 3% of most deprived areas in England. • 29 Super Output Areas fall within the 10% most deprived in the country for education and skills. • Only 20% (26.364) of Wigan workforce is qualified at level 4 • 38% (50,092) of the Wigan workforce is below level 2 • 1/4 (32,956) of the workforce has poor literacy and numeracy • 12% of those economically inactive have no qualifications

To tackle these issues lifelong learning is key (as illustrated in progression triangle below) in initially engaging with participants, then providing the pathway for gaining confidence, skills, experience and qualifications.

Local Area Agreement

The Local Area Agreement has a number of priorities where Lifelong learning could contribute to achievement:

• To increase participation in community and cultural activities that improve the wellbeing of individuals, and community cohesion o Provision of Community learning activities available and promoted to all o Using leisure and cultural activities to promote participation achieving learning outcomes.

• Narrow the attainment gap between our most disadvantaged communities and the population as a whole. o Ensuring a wide variety of education and skills training is on offer in accessible local and community venues across the borough. o Targeted projects aimed specifically at disadvantaged people in SOAs. o Increased Skills for Life provision and Family Learning delivered from a range of venues in SOAs and other deprived areas.

• Improving the range of things to do and accessibility of positive activities for all Children and Young People. o Facilities provided that support Young Peoples learning and Family learning e.g. Play Grounds, IT facilities, homework clubs

o Sessions targeted at Teenagers to encourage participation and engagement in structured out of school activities.

• Reduce social exclusion for older people and other vulnerable adults o Provision of Community learning and activities available and promoted to all. o Targeted projects to certain groups e.g. Carers and vulnerable adults.

• Reduce the level of worklessness. o Embedding IAG into Adult and Community learning provision enables progression from engagement in informal learning to a more structured pathway with employment as a potential long-term outcome. o PCDL and ACL provision available to 50 +.

• Increasing skill levels with reference to business need. o Provision of Skills for Life and national vocational qualifications across the borough. o Provision of Skills Shop (development of 2/3 Skills Shops by end of 2008). o Access to LSC Train to Gain funding supports learners in employment to gain Skills For Life, Level 2 and Level 3 qualifications. o Through the Wigan Learning Partnership access to a wide range of Adult Community learning programmes. o Support the higher level skills needs within the locality. o Access to adult information, advice and guidance re careers and employment, which will be launched as adult careers service in o 2009 / 10.

Strategic Priorities for Lifelong Learning in Wigan Borough:

• Priority 1 Increasing learning and engagement opportunities within the community, raising participation, confidence and aspirations. • Priority 2 Ensuring that people have the basic skills needed to enable participation in economic, social and community life. • Priority 3 Targeting disadvantaged communities, vulnerable adults and those furthest from the workplace, supporting them to achieve their full potential and opportunities to lift themselves and their families out of poverty. • Priority 4 Helping people to achieve skills for current sustained employment and future career opportunities. • Priority 5 To develop skills, qualification and experience progression pathways that support and develop a wide range of ability levels. • Priority 6 To provide positive activities for children and young people and families, that encourage participation, develop basic and work related skills.

Opportunities Successful implementation of this strategy will help in:

• Removing worklessness • Narrowing the attainment gap between our most disadvantaged communities and the population as a whole • Reducing social exclusion

Issues / Constraints There are a range of challenges facing Wigan Local Strategic Partnership which include:

Attainment: On average, pupils from the more disadvantaged groups have a lower attainment than the Borough average at every key stage. This is particularly true of boys living in the most deprived areas of the Borough.

Skills & Qualifications: Only 20.4% of Wigan’s residents are qualified to NVQ level 4 and above compared with 24.8% in the North West and 27.1% in England.

Accessing higher education: Between 1999/2000 and 2005/06 Wigan has seen a 14% increase in the number of full-time entrants to higher education compared with the North West at 17% and England at 18%. People living in deprived areas are still less likely to enter higher education.

Employment: In the most deprived 3% Super Output Areas people only have a 50% chance of being in work. Nearly 20% of people in these areas have not worked since before 1991 – twice as high as the national average. 8.4% have never worked, and 30% of people in these areas have a registered longstanding illness – almost twice the national average. How could the Local Development Framework respond By setting policies which: • Help to remove barriers to education and learning • Help to raise the motivation and aspirations of young people and adults in the Borough • Help to encourage participation in higher and further education. • Help to reduce worklessness

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews) Economy and Employment

Table F1 Title Annual Business Inquiry Proponent body Office of National Statistics Status (e.g. statutory, non-statutory) Non-statutory Date produced 2005 Why is it relevant to the Local Development Framework? The Annual Business Inquiry statistics offer good baseline knowledge on sector growth and decline patterns in the borough. This provides a yardstick for planners in determining what types of development may be located in the borough and the amount of land needed to accommodate this. Key messages, requirements, objectives

Area 1998 1999 2000 2001 2002 2003 2004 2005 Creative / Digital / New Media 2,500 2,400 2,900 2,800 2,500 2,900 2,900 2,600 Financial & Professional Services 6,300 6,700 7,800 7,900 8,200 9,200 10,000 8,900 ICT Digital / Communications 1,200 1,200 1,300 1,600 1,500 1,800 2,000 1,900 Life Science Industries 10,300 10,800 11,200 12,600 11,500 11,200 11,400 12,000 Manufacturing 20,900 21,000 21,400 19,100 18,500 16,800 16,800 14,800 Construction (inc. architecture) 8,500 7,200 8,000 8,100 8,600 8,400 9,700 8,000 Education 6,500 7,100 7,700 8,100 7,700 7,900 7,700 8,200 Hospitality & Tourism 5,300 5,400 5,400 6,000 6,700 7,000 5,400 6,700 Logistics 3,500 4,000 5,200 5,700 5,000 6,300 4,200 4,100 Public Services 5,300 5,000 4,600 4,700 4,700 4,200 4,500 4,200 Retail 12,800 13,100 13,700 13,400 12,800 13,300 14,200 16,200 Sport 900 1,100 1,100 1,100 1,100 1,200 1,400 2,000 Total employees (excl self- employed) 92,900 95,500 99,700 100,200 98,300 99,800 100,700 101,500

• There are existing high concentrations of logistics business in Wigan, reflecting its’ strategic location for the sector. This is likely to remain.

• Wigan is over-represented in the food products; textiles and leather; other mineral products; and constructions sectors. The Borough does, however, have less employees in utilities and several of the Business Service sectors, with the overall figure for this key sector being a quarter below the national average.

• There is increasing evidence for demand in Wigan (where the West Coast Main Line, M6 and other major roads converge); for Finance, professional and ICT Digital services.

• The latest Annual Business Inquiry data 2004 – 2005 identifies:-

• Key decrease experienced in Manufacturing between 2004 / 2005 (-1,900 employees / - 11.4%). This is a large decrease considering that the number of employees in manufacturing had been steady between 2003 and 2004, at around 16,800. Construction decreased by –1,700employees (-17.4%). This large decrease may be in part, a readjustment due to the unexpectedly high increase between 2003 and 2004, of 1,300. The losses experienced in Financial and Professional Services (-1,100 / -11.4%) is at odds with the upward trend of consistent year on year increases and strong growth of 7.9% per annum between 1998 and 2004.

• Major employee increases in Retail (+2,000 / 14.4%) over 2004 / 2005. This is a clear acceleration of the upward trend (with a previous stable net ‘in year’ increase of 1.8% between 1998 and 2004). Large increase within Hospitality and Tourism (+1,300 / 24.0%), which may be explained as a readjustment back to employee levels pre-2004, before the unexpected decrease between 2003 and 2004 (1,600).

• In more detail:

• Within Manufacturing, the largest decreases occurred in: manufacturing of food and beverages (-600), with smaller scale decreases across several other manufacturing sub-sectors.

• The key losses within Construction were within: general construction of buildings and civil engineering works (-1,000) (particularly within workplaces with 200+ employees) and the installation of electrical wiring and fittings (-300). • In Financial and Professional Services, the largest increases occurred in labour recruitment and provision of personnel (-500) and: other monetary intermediation (-300). • The key increase within Retail was in retail sales via mail order houses (+1,800). • The key increases within Hospitality and Tourism were in bars (+1,000) and restaurants (+500). • Other notable changes between 2004 / 2005 included an decrease compulsory social security activities (-600), and gains in sic7470: industrial cleaning (+700) and the operation of sports arenas and stadiums (+500). • Significant increase in the number of employees in workplaces of 200+ between 2004 and 2005 in Wigan (+1,000 / +3.9%pa). The largest increases were within retail trade and recreational, cultural and sporting activities. • The one notable decrease between 2004 and 2005 in Wigan was within workplaces employing 11-49 employees (-800 / -3.0%pa). The main components of loss were within construction and recreational, cultural and sporting activities.

Creative / Digital / New Media

2% 3% Financial & Professional Services 10% 18% ICT Digital / Communications 2% Life Science Industries

Manufacturing 13% 5% Construction (including architecture)

5% Education

Hospitality & Tourism

7% Logistics 17% Public Services 9% 9% Retail

Sport

Opportunities To move the borough towards and knowledge economy whilst modernising traditional sectors such as manufacturing. Other growth areas include Hospitality and Tourism which could provide a strong foundation for revitalising the borough’s centres. Issues / Constraints Some issues identified with the quality of the data when assessed against the Greater Manchester Forecasting Model. How could the Local Development Framework respond To explore options for providing new employment land and premises ‘packages’ to meet the needs of a modernising economy. The framework can also set out options for its centres and determine what types of employment uses are best suited to those locations other than those identified in Planning Policy Statement 6. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline / monitoring position. May also be useful for appraisal of specific policies or plans.

Table F2 Title 2006 Annual Survey of Hours and Earnings Proponent body Office of National Statistics Status (e.g. statutory, non-statutory) Non-statutory Date produced 2006 Why is it relevant to the Local Development Framework? The Annual Survey of Hours and Earnings (ASHE) provides information about the levels, distribution and make-up of earnings and hours paid for employees in all industries and occupations.

The volumes contain UK data on earnings for employees by sex and full-time/part-time workers. Further breakdowns include by region; occupation; industry; region by occupation; and age-groups, for the following variables: gross weekly pay, gross hourly pay, gross annual pay, weekly pay excluding overtime, hourly pay excluding overtime, overtime pay, gross paid hours and paid overtime hours. Key messages, requirements & objectives Analysis by Government Office Region by Occupation Overall • The North West Region saw a (mean) 4.2% annual increase in the gross wage of employees in 2006. This compares favourably against the national average of 3.9%. • However the (mean) gross wage in the North West still lags behind the national in 2006. The difference being £22,293 and £24,301 respectively.

Male Workers • Within the North West, male workers saw a (mean) gross wage increase of 4.3% compared to a national (mean) increase of 3.7% in 2006. • This took the North West (mean) annual wage figure up to £25,652 which is still below the £30,689 national mean wage for males in 2006.

Female Workers • For female workers in the North West, the (mean) annual gross wage increased by 3.4%, which was lower than the national figure of 4.3%. • This took the North West (mean) annual wage figure for 2006, up to £16,665, which remained below the £17,758 national mean wage for females.

Analysis by Industry

Sector North Comparison North West Comparison West with Mean Wage with Mean National (£) National Annual Average % - Average £ - % /+ /+ Wage Change ALL EMPLOYEES +4.2 +0.3 22,293 -2,008 Manufacturing +2.4 -1.2 26,491 -209 Electricity, Gas and Water -7.4 -9.2 38,061 +6,150 Supply Construction +7.1 +2.1 26,886 +370 Wholesale and Retail Trade +1.7 +0.9 16,860 -1,213 Hotels and Restaurants +12.6 +7.1 11,368 -1,585 Transport, Storage and Communication +6.9 +3.7 21,357 -1,484 Financial +6.1 +0.6 27,923 -17,600 Real Estate, Renting and Business Activities +6.7 +1.7 25,517 -5,151 Public Administration +4.7 +2.5 23,837 -1,698 Education +2.9 - 20,598 +192 Health and Social Work +4.0 -1.5 20,183 -364 Social and Personal Activities -10.4 -15 19,094 -3,070

Analysis by Place of Work by Local Authority

Overall • In 2006 the annual (mean) gross wages of employees in Wigan increased by 3.5%. However this was lower than the sub-regional increase of 5.5% for Greater Manchester and the 4.2% increase for the North West.

• The (mean) gross wage of employees in Wigan for 2006 was £19,898. Thus the Borough lags behind the sub regional average for Greater Manchester, £23,193 and the regional average of the North West £22,293.

Male Workers • Male workers in Wigan saw an annual (mean) gross wage increase of 3.8% in 2006; compared to a Greater Manchester increase of 5.9% and a North West increase of 4.3%.

• This took the male (mean) wage figure for 2006 up to £25,652. However this still remains below the £28,783 mean for Greater Manchester but higher than the £21,900 mean for the North West.

Female Workers • Female workers in Wigan saw an annual (mean) gross wage increase of 2.5% in 2006; compared to a Greater Manchester increase of 3.7% and a North West increase of 3.4%.

• This took the female mean wage figure for 2006 up to £14,761. However this is still below the £17,416 mean for Greater Manchester and the £16,665 mean for the North West.

Opportunities To provide employment land and premises that attract inward investment and lead to increased average earnings Issues and constraints The borough still has relatively low skilled work force and therefore this will constrain increases in average earnings. How could the Local Development Framework respond? Ensure framework helps deliver a strong growing economy to help increase average earnings in line with national average. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans. Consider indicators for appraisal framework.

Table F3 Title Business Closure rates Proponent body Small Business Services Status (e.g. statutory, non-statutory) Non-statutory Date produced 2005 Why is it relevant to the Local Development Framework? The indicator presents the percentage of businesses that have deregistered for VAT within the last year. This data is derived from annual workplace estimates based on the Inter Departmental Business Register (IDBR)

The indicator is calculated by Businesses deregistering for VAT 2005/ All VAT registered businesses 2005) x 100. Key messages, requirements, objectives

Business closure rate (2005)

District %

Manchester 11.35

Bury 9.84

Bolton 9.11

Salford 9.11

Trafford 8.65

Rochdale 8.54

Stockport 8.53

Oldham 8.28

Tameside 8.18

Wigan 7.92

Great Britain 8.43

Source: Local Knowledge; Business start-ups and closures: VAT registrations and deregistrations

Opportunities To maintain and further improve Wigan’s strong business closure rates and to encourage entrepreneurialism and development of Small and Media Sized Enterprises. Issues / Constraints This data only shows VAT registered companies and thus excludes many small businesses and 'one man bands'. This data is derived from annual workplace estimates based on the Inter Departmental Business Register (IDBR). The IDBR is a register of 2.1 million of the 3.8 million UK VAT/PAYE registered businesses. How could the Local Development Framework respond To explore options to provide suitable land and premises for entrepreneurial businesses such as those in the B1 office, research and light industrial/ small scale general industry (B2). Explore potential for development of employment/ cultural clusters and incubator units etc. In addition to provide a range and choice of different premises types and rents for all forms of start up businesses as well as improved / larger premises for existing business looking to expand. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F4 Title New Business Survival Rates Proponent body Small Business Services Status (e.g. statutory, non-statutory) Non statutory Date produced 2003 - 2005 Why is it relevant to the Local Development Framework? The indicator presents the proportion of businesses still registered for VAT 24 months after their initial registration. This is based on registrations and deregistrations of VAT- based enterprises, and is calculated from data collected from the Inter-Departmental Business Register (IDBR)

Data is mainly supplied at district level. Key messages, requirements, objectives

Opportunities To improve the business survival rates to below the national average through good location of business to potential workforces and premises that suits the need of the size and scale of business. Issues / Constraints The IDBR is a register of 2.1 million of the 3.8 million UK VAT/PAYE registered businesses. This data has good overall coverage - although this data on shows VAT registered companies and thus excludes many small businesses and 'one man bands' How could the Local Development Framework respond To explore options to provide suitable land and premises for entrepreneurial businesses such as those in the B1 office, research and light industrial/ small scale general industry (B2). Explore potential for development of employment/ cultural clusters and incubator units etc. In addition to provide a range and choice of different premises types and rents for all forms of start up businesses as well as improved / larger premises for existing business looking to expand. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F5 Title New Business Formation Rate Proponent body Small Business Services Status (e.g. statutory, non-statutory) Non statutory Date produced 2005 Why is it relevant to the Local Development Framework? The percentage of businesses that have registered for VAT within the last year. This data is derived from annual workplace estimates based on the Inter Departmental Business Register (IDBR) ((registered business stock 2005/ stock at start of the year 2005) x 100 Key messages, requirements, objectives

New business formation rate (2005)

District %

Tameside 12.00

Manchester 11.89

Salford 11.67

Trafford 11.60

Bury 11.24

Rochdale 10.90

Wigan 10.78

Stockport 10.36

Bolton 10.20

Oldham 10.19

Great Britain 9.82

Source: Local Knowledge; Business start-ups and closures: VAT registrations and deregistrations

Opportunities To increase the formation rate Issues / Constraints This data only shows VAT registered companies and thus excludes many small businesses and 'one man bands'. This data is derived from annual workplace estimates based on the Inter Departmental Business Register (IDBR).The IDBR is a register of 2.1 million of the 3.8 million UK VAT/PAYE registered businesses.

How could the Local Development Framework respond To explore options to provide suitable land and premises for entrepreneurial businesses such as those in the B1 office, research and light industrial/ small scale general industry (B2). Explore potential for development of employment/ cultural clusters and incubator units etc. In addition to provide a range and choice of different premises types and rents for all forms of start up businesses as well as improved / larger premises for existing business looking to expand. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F6 Title Gross Added Value per head Proponent body Department for Trade and Industry Status (e.g. statutory, non-statutory) Non statutory Date produced 2004 Why is it relevant to the Local Development Framework? GVA per head gives an indication of the relative level of productivity per person in an area

Gross Value Added per Head = (GVA/Number of people in employment in region) Key messages, requirements, objectives

Gross Value Added per head (2004)

District per head

Manchester 23,088.64

Trafford 22,129.22

Salford 20,359.85

Stockport 19,950.05

Tameside 17,819.09

Rochdale 11,494.37

Oldham 10,763.91

Bolton 10,674.35

Bury 10,643.56

Wigan 10,567.99

Great Britain 18,272.55

Source: Local Knowledge; GVA by NUTS 3 areas at current basic prices; Annual Survey of Hours and Earnings

Opportunities To significantly improve the borough productivity Issues / Constraints Borough has an over reliance on traditional/ declining sectors and its knowledge economy is in its infancy. How could the Local Development Framework respond To explore options to provide suitable land and premises for entrepreneurial businesses such as those in the B1 office, research and light industrial/ small scale general industry

(B2). Explore potential for development of employment/ cultural clusters and incubator units etc. In addition to provide a range and choice of different premises types and rents for all forms of start up businesses as well as improved / larger premises for existing business looking to expand. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F7 Title Incapacity benefits claimants per 000 16+ population Proponent body Nomis Status (e.g. statutory, non-statutory) Non statutory Date produced 2006 Why is it relevant to the Local Development Framework? This indicator provides a figure for the number of people receiving incapacity benefits within the area. It is paid to people who are assessed as being incapable of work and who meet the same contribution conditions as for Sickness Benefit. This indicator provides the figure per 1000 within the working age population in any given area and is therefore comparable across localities

(Number of incapacity benefit claimants)/(Total population 16-64/1000)

The Department for Work and Pensions collect records from Social Security benefits they administer. A 5% sample is used within this release to provide quarterly figures. Raw data has been rounded to the nearest 100. The indicator is provided as an expression per 000 of the population aged between 16 and 64. The population figures are taken from the 2001 Census results. The results are also released annually from the DWP at SOA level Key messages, requirements, objectives

Incapacity benefits claimants per 000 16+ population (November 2006)

District per 000 16

Wigan 39.00

Rochdale 33.00

Tameside 33.00

Oldham 30.00

Salford 30.00

Bolton 28.00

Bury 26.00

Manchester 25.00

Stockport 21.00

Trafford 21.00

Great Britain 20.15

Source: Local Knowledge; DWP Benefits

Opportunities To significantly reduce the amount of people claiming incapacity benefit and to get them into employment.

Issues / Constraints Wigan has high degree of long term illness and health problems. Issues with claimants not being incentivised to get back into employment.

How could the Local Development Framework respond To provide land and premises that attract diverse range of business across the borough that are accessible and meet local community employment needs.

Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F8 Title Long term unemployment as a proportion of all unemployment (12 months+) Proponent body Nomis Status (e.g. statutory, non-statutory) Non-statutory Date produced 2007 Why is it relevant to the Local Development Framework? The proportion of people aged 16-59/64 (men/women) claiming Job Seekers Allowance or National Insurance Credits who have been doing so for 12 months and over. This data is residence based

(unemployed 12 months (claiming for over 12 months)+/all unemployed) x 100 Key messages, requirements, objectives

Long-term unemployment as a proportion of all unemployment (12 months+) (June 2007)

District %

Salford 17.84

Wigan 16.75

Stockport 15.22

Manchester 15.09

Rochdale 13.32

Bolton 13.15

Oldham 12.17

Tameside 11.02

Trafford 10.33

Bury 9.49

Great Britain 16.93

Source: Local Knowledge; Claimant counts with rates and proportions Opportunities To reduce instances of long term employment Issues / Constraints The claimant count measures only those people who are claiming unemployment-related benefits (Jobseeker's Allowance). Overall, the data is a good account as it is based on

administrative records. How could the Local Development Framework respond Ensure opportunities for developing skills whilst securing a diverse range of accessible employment opportunities that meet local employment needs. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F9 Title Unemployment rate (June 2007) Proponent body Eurostat Status (e.g. statutory, non-statutory) Non-statutory Date produced 2007 Why is it relevant to the Local Development Framework? The proportion of people aged 16-59/64 (men/women) claiming Job Seekers Allowance or National Insurance Credits. The higher the score, the more unemployed in a given area. This indicator is an official Performance Indicator - ECR2a

Unemployment Rate = (total unemployed/total labour force) x 100

Unemployment rate indicates the number of unemployed as a percentage of the total labour force. Unemployment is defined by the Internal Labour Organisation as people aged 15 years and above who are not in work but have made serious efforts to find work. Key messages, requirements, objectives

Unemployment rate (June 2007)

District %

Manchester 3.70

Oldham 3.00

Salford 3.00

Rochdale 2.90

Bolton 2.60

Tameside 2.40

Wigan 2.40

Bury 2.00

Stockport 1.70

Trafford 1.70

Great Britain 2.29

Source: Local Knowledge; Claimant count with rates and proportions

Opportunities To get the unemployment rate below the national average. Issues / Constraints Skill levels need to be improved across the borough to meet the needs of a changing

economy. How could the Local Development Framework respond Ensure opportunities for developing skills whilst securing a diverse range of accessible employment opportunities that meet local employment needs. Implications for the sustainability appraisal Provides detailed information useful for establishing and updating the baseline position. May also be useful for appraisal of specific policies or plans.

Table F10 Title Which Parts of Great Britain are Vulnerable to the Credit Crunch? Proponent body Oxford Economics Status (e.g. statutory, non-statutory) Non-statutory Date produced July 2008 Why is it relevant to the Local Development Framework?

The credit crunch will have an impact on the delivery of aims and objectives set in the Local Development Framework and Regional Spatial Strategy e.g. the number of new homes built, new employment floorspace created etc.

Key messages, requirements and objectives

Key points:

• The economy is being hit by the twin pressures of the credit crunch, which is restricting the supply of finance (particularly for house purchase) and a squeeze on disposable incomes resulting from high and rising energy and food prices. • The resulting slowdown will have a wide-reaching impact across the country, not just on London and the greater South East. This reflects the importance of financial services to a wide range of centres and the way that local economies of the UK have changed in light of globalisation. • The industries most likely to be initially affected by the credit crunch and squeeze on disposable incomes are financial services, real estate, other business services, construction and retail and other consumer related industries. Heading into 2009, the sectoral and thus geographic pattern of impact will change as the wider economy begins to slow. • Central London – the City, Tower Hamlets and Westminster - has the country’s biggest concentration of financial & business services and real estate jobs, and is the most vulnerable part of Great Britain (GB) to any resultant job losses. • Outside of central London, a number of smaller centres show up as being particularly vulnerable. These include Chester, Bournemouth, Calderdale and Macclesfield. These tend to be relatively prosperous areas, all of which have high concentrations of jobs in banking and auxiliary services. • Within London area, Barnet, Elmbridge and Richmond show up as being vulnerable because of concentrations of jobs in real estate, while Watford and Kingston have a general exposure to a range of the vulnerable sectors, not just financial services. • Cities are generally more exposed than rural areas but there is a considerable range in level of exposure, with Leeds, Edinburgh and Bristol more exposed than more industrial and public sector-focussed cities, such as, Sheffield and Liverpool.

Wigan is ranked the 160th most vulnerable local authority to the credit crunch out of 408, with a score of 95 (a score of 100 is the Great Britain average) Opportunities

Issues and constraints

How could the Local Development Framework respond?

Implications for the sustainability appraisal

Cross references (General) Cross Reference (Topic Reviews)