Liverpool City Region Local Industrial Strategy Evidence base July 2019 City Region is a growing economy . . .

GVA Growth 2007-2017 is a £32bn economy - measured by Gross Value Added (GVA). In the last decade, we £35,000 130 have added over £6bn to our economy, against the £30,000 125 backdrop of the deepest recession the UK has experienced since the Second World War. £25,000 120 115 £20,000 Our economy stagnated during the recession, while 110 others were shrinking, and it took longer for the full impact £15,000 105 to be felt in LCR. This means it has taken us longer to £10,000 recover, while other economies started to rebound as 100 early as 2009, our recovery did not start until 2013 . £5,000 95 £0 90 We are now experiencing strong levels of growth, for three of the last four years we have grown faster than the national average, and between 2016 and 2017, our 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 economy grew by more than 5%. GVA £ millions Indexed growth (Right Hand Side)

Source: ONS

2 . . . but we have performance gaps to close

GVA per head (2010-2017) 28,000 A delayed recovery has widened the gap between UK LCR and the UK in terms of relative output, and 26,000 productivity. 24,000 22,000 North Our economy generates £20.4k of GVA for every LCR 20,000 West resident, 77% of the UK level. Since 2010, the gap has increased from £4.5k to £6.7k per person. 18,000 20102011201220132014201520162017 Our productivity (GVA per filled job) tracks much GVA per filled job (2010-2017) closer to national levels , and is 89% of the UK level . 54,000 Despite this, every filled job in the LCR produces £6k 52,000 UK less output than the UK. 50,000 48,000 46,000 North 44,000 West 42,000 40,000 20102011201220132014201520162017 Source: ONS 3 . . .and so, to close these gaps, we need to improve our performance against the five foundations

In October 2018, HM Government published a Policy Prospectus for Local Industrial Strategies to “build on unique local strengths to ensure every community, and the country, reaches their economic potential and creates high quality good jobs.”

Local Industrial Strategies should boost productivity and earning potential across local areas by focusing on the five foundations of productivity.

4 1 – People Our population is growing – but at a relatively slow rate . . .

1.5 million people live in the City Region, and our population has grown year-on-year since 2003. However, comparatively, we have experienced a slow rate of population growth, growing slower than any other LEP.

% Change in population by LEP (1997-2017)

30% 25% 20% 15% 10% 5% 0% Solent Derby,… Dorset London Greater… Greater… Greater… Greater… Humber Cumbria South East… South East South North East North Tees Valley Tees New Anglia New York, North… York, Oxfordshire Heart of the… of Heart The Marches The Swindon and… Swindon and… Cheshire Cornwall and… Cornwall Sheffield City… Sheffield Leicester and… Leicester Coventry and… Coventry Hertfordshire Liverpool City… Liverpool Black Country Enterprise M3 Enterprise Thames Valley… Thames Stoke-on-Trent… Worcestershire Coast to Capital to Coast Gloucestershire West of of West Buckinghamshire… Leeds City Region Leeds Source: Mid Year Population Estimates 6 … and we have a number of ageing communities

Dependency Ratio (2017) At the City Region level, the ageing population is less prominent than for other areas of the UK . However, 0.70 0.68 this masks the prevalence of the ageing society in 0.66 other areas of the City Region , particularly Sefton and 0.64 Wirral. 0.62 0.60 0.58 0.56 In both of these areas, the dependency ratio is also 0.54 considerably higher than the UK level, reflective of the 0.52 high proportion of residents age 65+ and smaller 0.50 0.48 Working Age Populations. In these areas, the Working 0.46 Age Population face a greater burden in supporting 0.44 the ageing and youth population.

Dependency Ratio UK Level

Source: Mid Year Population Estimates

7 Overall, our Working Age Population is growing. . .

We have a Working Age Population of 977k which has grown (with fluctuations) over the last 30 years. Liverpool City Region Working Age Population (1997-2017) 990

980

Thousands 970

960

950

940

930

920

910 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Mid Year Population Estimates 8 . . . And the WAP is becoming more skilled. . .

Our skills profile is improving . Since 2004, the proportion of highly skilled residents has increased , at the same time, the proportion of residents with no qualifications has fallen.

Change in qualification levels (2004-2018)

35% 33% 30% 24% 25% 19% 19% 20% 18% 15% 16% 15% 15% 10% 11% 10% 5% 0% % with NVQ4+ - aged % with NVQ3 only - aged % with NVQ2 only - aged % with NVQ1 only - aged % with no qualifications 16-64 16-64 16-64 16-64 (NVQ) - aged 16-64 Jan 2004-Dec 2004 Jan 2018-Dec 2018 Source: Annual Population Survey 9 . . . But we need more highly skilled workers

While our skills profile is improving, comparatively, we have a low proportion of highly skilled workers (NVQ4+), and a high proportion of residents with no qualifications. A highly skilled population is a key component of a competitive, productive economy . Qualification levels of the Working Age Population (2018) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% % with NVQ4+ - aged 16- % with NVQ3 only - aged % with NVQ2 only - aged % with NVQ1 only - aged % with no qualifications 64 16-64 16-64 16-64 (NVQ) - aged 16-64 LCR North West UK Source: Annual Population Survey 10 Our employment rate is growing. . .

Employment Rate (2004 -2018) Each year a growing number of our residents are 76% employed , with significant growth in our employment 74% 72% rate from 2014 onwards. This fast rate of growth has 70% 68% closed the gap considerably between the LCR 66% 64% employment rate and that of the UK. 2004 2006 2008 2010 2012 2014 2016 2018 As of 2018 72% of our Working Age Population were LCR North West UK in employment , compared to 74% in the North West and the UK rate of 75%. Unemployment Rate (2004 -2018)

12% At the same time , our unemployment rate has fallen significantly from 6.2% in 2004, to 4.1% in 2018. As of 7% 2018, the unemployment rate was lower than that of both the North West and the UK. 2% 2004 2006 2008 2010 2012 2014 2016 2018 Liverpool City Region North West UK

Source: Annual Population Survey 11 . . . but a high proportion of our WAP is inactive. . .

With 26% of our Working Age Population currently inactive, we have the third highest rate of economic inactivity of all LEPs in the UK, this is a key driver of our output gap with the UK .

Economic Inactivity Rate (2018) 30% 25% 20% 15% 10% 5% 0% Solent Dorset London Greater… Greater… Humber Cumbria South East South North East North Lancashire Tees Valley Tees New Anglia New York, North… York, Oxfordshire Swindon and… Swindon The Marches The Cheshire and… Cheshire Sheffield City… Sheffield Leicester and… Leicester Coventry and… Coventry Hertfordshire Liverpool City… Liverpool Black Country Enterprise M3 Enterprise Thames Valley… Thames Stoke-on-Trent… Worcestershire Coast to Capital to Coast Gloucestershire West of England of West Buckinghamshire… Leeds City Region Leeds Cornwall and Isles… and Cornwall Heart of the South… the of Heart Derby, Derbyshire,… Derby, Greater Lincolnshire Greater South East Midlands East South

Source: Annual Population Survey 12 . . . and disconnected from the world of work

Liverpool City Region Labour Supply (2018) We have 274k residents that are economically inactive , a high proportion of these (30%) do not participate in the labour force due to long term sickness. Long term sickness is highest in St Helens Working Age Population WAP 968k 100% (37.4%) and lowest in Liverpool (26.9%).

Of our working age population, we have a proportionately Unemployed 25k higher number of residents that do not want a job when Economically Active Self compared with the UK. In addition to sickness there are a Employees 620k employed number of reasons for this, such as stay at home parents 74% 73k and people who have retired early – essentially lifestyle choices.

Economic Inactivity by reason Economically InactiveLong-term sick (30%) , Student (23%), Economically 26% Looking after family/home(23%), Inactive Retired (12%), Temporary sick (2%), 274k Other (10%)

Source: Annual Population Survey 13 Inactivity is underpinned by complex health-related challenges

Male Life Expectancy at Birth (2018) Our economic inactivity rate reflects the range of 80 complex health and wellbeing challenges residents in 75 the City Region face: 70 Halton KnowsleyLiverpool Sefton St. Wirral • One in four people of working age in the LCR have Helens limiting health conditions ; England Average • Life expectancy is two and a half years lower than for England; Source: Public Health England Prevalence of Common Mental Health Disorders (2018) • The prevalence of ill health is increasing ; and • There is a high prevalence of mental health 30 25 disorders 1. 20 15 10 5 0 Unfavourable health conditions in the LCR contributes to Halton KnowsleyLiverpool Sefton St. Wirral both the employment and productivity gap. Helens England Average

Source: Public Health England 1 Health for Wealth: Building a Healthier Northern Powerhouse for UK Productivity 14 2 – Business Environment Our Business Base is growing . . .

Number of Active Enterprises in the LCR (2012-2017) There are 48,000 active businesses in the Liverpool City 50,000 43,530 46,045 48,405 37,975 39,690 41,690 Region. Since 2012, our business base has grown each year and at a faster rate than both the North West 30,000 and the UK. 10,000 This is driven by a consistently higher business birth -10,000 2012 2013 2014 2015 2016 2017 rate, reflective of our entrepreneurial culture.

Source: UK Business Demography Business Birth Rate (2012-2017)

15%

10% 2012 2013 2014 2015 2016 2017 LCR NW UK

Source: UK Business Demography 16 . . . But our business density is too low

Our business density is the lowest of all LEPs and contributes to our performance gaps with the UK. A larger business base will increase competition, generate more output and employment opportunities and, ultimately, improve performance of the Liverpool City Region.

Number of Businesses per 10k of WAP 1000 800 600 400 200 0 Solent Derby,… Dorset London Greater… Greater… Greater… Greater… Humber Cumbria North East North South East… South East South Lancashire Tees Valley Tees New Anglia New York, North… York, Oxfordshire Heart of the… of Heart The Marches The Swindon and… Swindon Cheshire and… Cheshire Cornwall and… Cornwall City… Sheffield Leicester and… Leicester Coventry and… Coventry Hertfordshire Liverpool City… Liverpool Black Country Enterprise M3 Enterprise Thames Valley… Thames Stoke-on-Trent… Worcestershire Gloucestershire Capital to Coast West of England of West Buckinghamshire… Leeds City Region Leeds Source: UK Business Counts, Mid Year population estimates 17 As our business base grows we need more scale-up businesses . . . Scale-up businesses are an important source of employment and drive productivity. Relative to our business base, we have the fifth highest proportion of Scale-up businesses of all LEPs. However, the scale-up population is small, with just 610 located in the City Region. Number of Scale-ups per 10k of businesses

250 200 150 100 50 0 Solent Derby,… Dorset London Greater… Greater… Greater… Greater… Humber Cumbria North East North East South East… South Lancashire Tees Valley Tees New Anglia New York, North… York, Oxfordshire Heart of the… of Heart The Marches The Swindon and… Swindon Cheshire and… Cheshire Sheffield City… Sheffield and… Cornwall Leicester and… Leicester Coventry and… Coventry Hertfordshire Liverpool City… Liverpool Black Country Enterprise M3 Enterprise Thames Valley… Thames Stoke-on-Trent… Worcestershire Coast to Capital to Coast Gloucestershire Buckinghamshir… West of England of West Leeds City Region Leeds

Source: The Scale-up Institute and UK Business Counts 18 . . . And we need more exporting businesses

Businesses that sell beyond local markets tend to be more productive. In LCR, just 14% of the business base is in export intensive sectors , and just 2.4% of businesses export regularly . Increasing the number of businesses that sell products and services overseas could improve productivity of the City Region.

% Share of businesses in Export-intensive Industries 25% 20% 15% 10% 5% 0% Solent Derby,… Dorset London Greater… Greater… Greater… Greater… Humber Cumbria South East South South East… South North East North Lancashire Tees Valley Tees New Anglia New York, North… York, Oxfordshire Heart of the… of Heart Swindon and… Swindon The Marches The Cheshire and… Cheshire Sheffield City… Sheffield Cornwall and… Cornwall Leicester and… Leicester Coventry and… Coventry Hertfordshire Liverpool City… Liverpool Black Country Enterprise M3 Enterprise Thames Valley… Thames Stoke-on-Trent… Worcestershire Coast to Capital to Coast Gloucestershire West of England of West Buckinghamshire… Leeds City Region Leeds

Source: UK Business Counts 19 We have transformational growth opportunities Across the City Region we have developed, and continue to develop core strengths across a number of sectors that provide real opportunity for strong levels of growth in terms of both jobs and GVA. Our sector accelerators, are sub- sectors of the economy that have strong growth potential, unique and nationally significant assets and strong potential to form innovation-led growth clusters across the City Region.

The sectors we have identified to drive the opportunity in the Liverpool City Region are:

• Automotive manufacturing • Chemicals and Pharmaceuticals manufacturing • Life Sciences and Healthcare • Digital and Creative • Clean Growth

(Note Clean Growth sector analysis will be added following forthcoming work) Automotive Manufacturing

One quarter of a million cars are produced in the GVA Growth 2010-2017 (Indexed 2010=100) Liverpool City Region annually. The sector is diverse , 300 on the one hand we are home to Briggs Automotive Company (BAC) producing 20 high performance 200 supercars each year, and on the other hand is the 300- LCR acre Jaguar Land Rover site where a car comes off the 100 UK production line every 90 seconds. 0 Across the sector there are approximately 55 2010 2011 2012 2013 2014 2015 2016 2017 businesses, employing more than 7,000 people. Since Source: Office for National Statistics 2010, the sector has grown considerably faster than Degree of specialisation (LQ analysis) the UK, with a Compound Annual Growth Rate (CAGR) Employment of 16%. 2.35

There is a high concentration of employment and output compared to the UK , but a lower concentration of businesses. This is reflective of the high number of large, key employers in the sector. 0.96 Number of GVA 2.84 Businesses Source: Office for National Statistics, BRES, UK Business Counts Chemicals and Pharma Manufacturing

GVA Growth 2010-2017 (Indexed 2010=100) Liverpool City Region is home to some of the world’s biggest pharmaceutical players . In 2017, the sector 120 contributed in excess of £1.5bn of GVA. There are over 100 130 businesses operating in the sector, employing more 80 LCR than 7.5k employees. 60 UK Nationally, the sector has contracted, with a £4.5bn 40 decline in output since 2010, against this backdrop, the 2010 2011 2012 2013 2014 2015 2016 2017 sector has shown resilience in the Liverpool City Region. Source: Office for National Statistics Degree of specialisation (LQ analysis) There is a considerably high concentration of Employment employment, businesses and output compared to the UK, demonstrating the LCR’s sector specialism and 2.73 L expertise. C…

2.00 Number of GVA 3.22 Businesses Source: Office for National Statistics, BRES, UK Business Counts Life Sciences and Healthcare

Our Universities produce world leading research GVA Growth 2010-2017 (Indexed 2010=100) related to the Life Sciences and Healthcare sector. 120 L 110 C… In 2017, the sector contributed more than £3bn of GVA and provided c. 95,000 jobs, across a business base of 100 more than 2,000. Since 2010 , the sector has grown , 90 albeit at a slighter slower rate than that seen nationally. 80 Our specialism in the sector is demonstrated through a 2010 2011 2012 2013 2014 2015 2016 2017 higher concentration of employment, businesses and Source: Office for National Statistics output than what is seen nationally. Degree of specialisation (LQ analysis) Employment 1.53 L C…

1.19 GVA 1.52 Number of Businesses Source: Office for National Statistics, BRES, UK Business Counts Digital, Creative and Technology

The Digital and Creative Sector in LCR is growing, with GVA Growth 2010-2017 (Indexed 2010=100) a constant stream of new businesses starting, 180 locating and growing in the City Region . We also have a strong, and growing advanced computing sector, 130 underpinned by nationally significant assets such as the most powerful supercomputer in the UK. 80 2010 2011 2012 2013 2014 2015 2016 2017

The sector is growing significantly , and faster than the LCR UK national rate. Output from the sector surpassed £1bn in Source: Office for National Statistics GVA in 2017, and the sector has grown at a CAGR of 7% Degree of specialisation (LQ analysis) since 2010. Employment There are around 2,500 businesses in the sector, providing close to 13,000 jobs. 0.57 L C… While there is less evidence of industrial concentrations, the sector continues to grow with emerging specialisms.

0.67 Number of GVA 0.94 Businesses Source: Office for National Statistics, BRES, UK Business Counts 3 – Ideas Our business base engages in innovation. . .

Percentage of businesses engaging in innovation activities With 57.2% of businesses innovation active, we have a Collaboration higher proportion of businesses engaged in innovation than the UK average. Innovation Active LCR UK A high proportion of businesses engage in collaborative innovation (this includes collaboration 0 20 40 60 with other businesses, research institutes, HEIs and government). Source: BEIS, UK Innovation Survey Innovation activity engaged in (%) The most common innovation activity is that related to new/improved strategic business practices and changes Strategic & marketing to marketing concepts or strategies. New to market LCR Product and service UK Process

0 10 20 30 40 50

Source: BEIS, UK Innovation Survey 26 . . . And businesses secure a considerable amount of innovation funding . . . Breakdown of Innovate UK funding by number of grants Since 2003, organisations in the Liverpool City Region have secured 655 Innovate UK grants, totalling over 26% £73m. Private Sector

1% NHS Of the 655 grants, almost three quarters (73%) have 73% University gone to private sector businesses. By value the share falls to 52% showing that typically, private sector businesses receive lower value grants than Source: Innovate UK Universities or the NHS. Breakdown of Innovate UK funding by value of grants Top companies by value of Innovate UK funding received (2003-2018) Company Sector Value of Grants Number of Grants 36% Private Aimes Digital £3.2m 23 Sector Unilever FMCG £1.9m 10 52% NHS Videregen Life Sciences £1.5m 2 12% Ulemco Clean Growth £1.4m 5 Acal Energy Chemicals £1.3m 12

Source: Innovate UK Source: Innovate UK 27 . . . but we are in the bottom half of all LEPs for the amount of funding attracted

Innovate UK funding by Local Enterprise Partnership

2000 1800 1600

Millions 1400 1200 1000 800 600 400 200 0 Solent Dorset London Humber Cumbria South East South Lancashire Tees Valley Tees New Anglia New Oxfordshire The Marches The Cheshire and… Cheshire Leicester and… Leicester Coventry and… Coventry Hertfordshire Black Country North Eastern North Enterprise M3 Enterprise Thames Valley… Thames Worcestershire Gloucestershire Coast to Capital to Coast West of England of West Buckinghamshire… Leeds City Region Leeds Heart of the South… the of Heart Northamptonshire Derby, Derbyshire,… Derby, Greater Cambridge… Greater Stoke-on-Trent and… Stoke-on-Trent Greater Manchester Greater Greater Lincolnshire Greater South East Midlands East South Greater Birmingham… Greater Sheffield City Region Sheffield Cornwall and Isles of… Isles and Cornwall Liverpool City Region Liverpool York, North Yorkshire… North York, Swindon and Wiltshire and Swindon Source: Innovate UK 28 We have a strong research base. . .

Universities in the City Region and Student Population Universities have a significant role to play in nurturing University Number of Students the knowledge economy and high quality research Liverpool Hope University 8,000 makes a major contribution to economic prosperity.

Liverpool John Moores University 22,000 Universities in the Liverpool City Region are home The Liverpool Institute of Performing Arts 690 to Research Excellence and achieved noteworthy The University of Liverpool 25,000 results in the last Research Excellence Framework review in 2014. Liverpool School of Tropical Medicine 120

Areas of research excellence The University of Liverpool had seven subjects in which research was ranked in the top ten in the UK, and University Areas or Research Excellence ranked first in the UK for research in Chemistry . Liverpool Hope University Mathematics and Computer Science

Liverpool John Moores University Sport and exercise science

The University of Liverpool Chemistry , computer science and informatics Liverpool School of Tropical Medicine Clinical medicine, public health

Source: Research Excellence Framework, 2014 29 . . . And our Universities have a relatively high R&D expenditure

Universities in the Liverpool City Region have the highest relative expenditure on R&D of all North West LEPs.

Higher Education expenditure on R&D per FTE £900 £800 £700 £600 £500 £400 £300 £200 £100 £- Solent Dorset London Humber Cumbria South East North East Lancashire Tees Valley New Anglia New Oxfordshire The Marches Hertfordshire Black Country Enterprise M3 Worcestershire Coast to Capital Gloucestershire West ofWest England Leeds City Region Derby, Derbyshire,… Stoke-On-Trent and… Greater Manchester Greater Lincolnshire South East Midlands Sheffield City Region Liverpool City Region Swindon and Wiltshire Greater Cambridge and… Heart of the South West Thames Valley Berkshire Greater Birmingham and… Cheshire and Warrington Buckinghamshire Thames… York, NorthYork, Yorkshire and… Cornwall and Isles Scilly of Coventry and Warwickshire Leicester and Leicestershire

Source: Eurostat, 2014 30 . . . But business R&D expenditure is low

Although business expenditure is higher than that of our HEIs, compared to other LEPs, business expenditure on R&D in the Liverpool City Region is low. Business expenditure on R&D per FTE £2,500

£2,000

£1,500

£1,000

£500

£-

Source: Eurostat, 2014 31 Evidence on collaboration between Universities and the business base is mixed

Business and Community Services by HE provider Relationships between universities and businesses are Total Number of Total Value of Rank (out of University important to unlock innovation and growth, and to Contracts Contracts 162) develop and graduate talent. Liverpool Hope University 25 372 106 LJMU 122 2,038 57 There is some evidence of collaboration between The University of Liverpool 469 15,296 19 Universities and businesses, but these tend to be Source: HESA focussed on larger organisations, with limited long-term Income for consultancy and contract research for businesses (2014- relationships fostered between universities and SMEs. 2016) £60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £-

Source: HEBCI 32 4 – Infrastructure Our local rail infrastructure provides uneven connectivity . . .

Internal connectivity of Liverpool City Region and its hinterland by rail The network is the “jewel in the crown” of the city’s rail assets and patronage has grown rapidly since the franchise was devolved in 2004.

At a local level, Liverpool City Region and its wider functional geography is well connected , especially at the core. However, for some areas, especially those of a more rural nature, rail connectivity is weaker.

Source: Merseytravel Long Term Rail Strategy

34 . . . And Liverpool is poorly connected to other locations around Britain Liverpool’s wider connectivity (based on whether or not a direct service links the locations) is poor, especially for a city of its size. Of the 20 cities with better connectivity, only seven have a larger population than Liverpool. Connectivity of key GB towns and cities

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Hull Leeds Derby Bristol Cardiff London Reading Bedford Glasgow Brighton Swindon Swansea Sheffield Leicester Liverpool Plymouth Edinburgh Newcastle Colchester Portsmouth Manchester Nottingham Birmingham Southampton Northampton Peterborough Bournemouth Aberdeen City Aberdeen Milton Keynes Milton Stoke-on-Trent Source: Merseytravel Long Term Rail Strategy 35 We have key international gateways

Liverpool John Lennon Airport Passenger Numbers (2014-18) We are connected internationally by John Lennon 6 airport and our close proximity to Manchester airport. LJLA is a growing international airport and has 4 grown considerably over the last decade. It now

Millions handles over 5 million passengers annually. However, 2 connectivity to the airport is weak , unlike many other 0 major global airports, it has no dedicated rail line. 2014 2015 2016 2017 2018 Our Westward facing port is another international Port Tonnage (2014-18) gateway as well as being a significant asset to the LCR 33 economy. The port handles over 33 million tonnes of freight cargo per year and serves more than 100 32 global destinations including China, Africa, Australia,

Millions India, the Middle East and South America. 31

30 2014 2015 2016 2017 2018 We are a digitally connected City Region

Digital Connectivity by Local Authority Liverpool is one of the best digitally connected Superfast Ultrafast cities in the UK . We have built our own Internet Halton 98.85% 73.72% Exchange, ensuring world-class speeds. We connect to Knowsley 99.12% 79.69% London directly (LINX) and to the GTT transatlantic Liverpool 97.46% 80.95% internet cable linking the city to North America and Sefton 99.39% 62.42% Europe. St Helens 98.57% 87.46% Wirral 98.75% 58.69% Liverpool is also a 5G testbed area creating a UK 94.95% 54.01% platform for the smooth roll out of 5G mobile Source: SQW analysis of https://labs.thinkbroadband.com/local/England internet connectivity over the next few years creating Proportion of the population that have rarely/never used the internet multi-gigabyte connectivity across the region.

15% All districts in the City Region have access to 10% superfast broadband, and digital connectivity is 5% higher than national averages across all LAs. 0% However, digital inclusion is an identified challenge LCR North UK with a higher than average proportion of the population West that rarely, or have never used the internet. Source: SQW analysis of https://labs.thinkbroadband.com/local/England 37 5 – Place There are significant place-based assets across the City Region

Blue and Green Infrastructure in the City Region Liverpool City Region has a rich asset base. It is home to more museums, theatres, galleries and heritage buildings than any other place outside of London. Adding to this are the natural assets across the City Region, we have miles of coastline and beaches and over 100 parks. Around 80% of the City Region is blue/green space.

There are some place-based challenges in the City Region, including higher than average crime rates, significant pockets of deprivation, and low wages.

Indicator LCR England Workplace Earnings £538 £575 Resident Earnings £534 £575 % of LSOAs in UK most deprived 31% - Crime per 1k Population 90 86.5 Affordability Ratio 5.86* 8.0

* North West data, LCR Data not available Neighbourhoods are characterised by significant levels of multiple deprivation Deprivation levels across the Liverpool City Region Liverpool City Region has a significant number of neighbourhoods characterised by deprivation . Almost one third of all LSOAs in the City Region are in the most deprived decile in the UK.

These neighbourhoods are located across the City Region but there is a particular concentration in a corridor running North from East Wirral, through North Liverpool/South Sefton to North Knowsley.

The scale of deprivation, and the impact this has on economic growth and productivity, underlines the need to regenerate these neighbourhoods.

Our growing Social Economy will also be important in improving the opportunities for residents in our most Source: Index of Multiple Deprivation deprived communities.

40 . . . That also suffer from low air quality

There is a striking correlation between areas with poor air quality and high levels of deprivation

Deaths from respiratory diseases Deprivation levels across the Liverpool City Region

41 The City Region needs to have the right housing choice. . .

Housing Stock by Council Tax Band Since 2016, over 11,000 new homes across all tenures have been delivered across the city region – the 60% highest rate of delivery since the 2008 recession. 50% 40% However our current housing choice is characterised by a higher than average proportion 30% of lower value houses (Council Tax Bands A and B) 20% than that found nationally, 68% of our housing stock is in Council Tax Band A or B, compared to 44% of % of propoerties propoerties of % 10% housing stock in England. 0% ABCDEFGH This limited housing choice offer has implications Council Tax Band for quality of life and attracting/retaining skilled labour to the City Region. LCR England

Source: Council Tax Band Stock of Properties

42 . . . And higher quality office space

Office availability and demand (2016)

Office availability Office demand Liverpool City Region has high availability of office Built last five All (sq ft.) Average Years supply pace, especially in the Liverpool and Sefton. However, years annual take the majority of this space is old, and not meeting the up (last 5 yrs.) expectations of businesses. Only Liverpool and Wirral Halton - 36,500 122,500 3 have had new office space delivered over the last five years. Knowsley - 87,000 45,600 1.9

Liverpool 10,900 2,315,900 304,400 7.6 The oversupply of low quality office space is supressing rent yields, and subduing private sector activity in Sefton - 446,500 88,000 5.1 developing higher quality space. St Helens - 202,600 54,900 3.7 High quality business space that is fit for purpose is Wirral 700 249,000 65,700 3.8 one important driver of attracting new businesses into Total 11,600 3,666,100 681,000 5.4 the City Region, and addressing the low business density challenge. Source: Cushman & Wakefield