Redcar and Cleveland Regeneration Masterplan Economic Futures: A Regeneration Strategy for Redcar & Cleveland April 2010 this is Redcar & Cleveland 1 C 2 Contents Foreword Page 4 C Executive Summary Page 6 Part One: Drivers of Change Page 16 1 The Regeneration Masterplan 2 The Context for Change 3 Economic Drivers 4 Redcar & Cleveland 2025 Part Two: Strategies for Change Page 34 1 Economic 2 Sustainable Communities 3 Connectivity 4 Environment and Infrastructure 5 Spatial Masterplan Part Three: Delivering change Page 76 1 Delivery Strategy 2 Flexibility of Delivery 3 Foreword F 4 Foreword: Councillor Mark Hannon, Portfolio Holder for Economic Development. The Regeneration Masterplan lays out a long-term 15 year plan The global recession of 2008-11 has highlighted the Redcar & for the social, economic & physical development of the Borough. Cleveland economy’s reliance on external markets for products It includes proposed changes in size, form, character, image of steel and petro-chemical processes. The vulnerability of and environment - all the things you told us were important as local operations to global decision making, the depth of supply part of the Love it Hate it consultation. chain dependence, the relatively undeveloped service sector that in other industrial economies has provided a balance of We recognise that to maintain the status quo is not acceptable, employment and the ongoing difficulty in making real in-roads improvements must be made to provide decent homes and into deprivation – these issues have been starkly presented Fgood transport links, creating jobs and improving social and though the recent recession. environmental conditions. By connecting people, places and movement through the Masterplan we aim to foster a sense of Responding to these challenges on an ad hoc and individual community wholeness and well-being. basis would have been an easy, but ultimately, flawed response. Instead, we have put in place a long term framework for The Masterplan will guide our growth and the development development. of our communities ultimately improving the quality of the Borough and our contribution to the region. It includes We and our partners have set ourselves the task of seeing analysis, recommendations, and proposals for our large scale, borough-wide regeneration by 2025. Our ambitions, community’s population, economy, housing, transportation, again based on widespread consultation including our Love it community facilities, and land use. It is based on public input, Hate it Campaign, are represented in the Redcar & Cleveland surveys, planning initiatives, existing development, physical Regeneration Masterplan. characteristics, and social and economic conditions. The key outcomes over the next 15 years will be approximately: If Redcar & Cleveland is to thrive and prosper in the 21st century, then we need to be open to new ideas and new • 14,000 new jobs; business and industry opportunities. That ability to adapt to new • 800 businesses created and supported; thinking is part of our heritage and it has stood us in good stead • £1 billion direct private investment; over the years. • £265 million direct public investment. Understanding the diverse nature of the Borough does not There is still much to be done but the completion of this lend itself to a single strategy for regeneration. The industry of important document provides a solid foundation to take us South Tees is as far removed from the rural economy of East forward and we’ve already started delivering some of the key Cleveland as the challenges and opportunities of Redcar are things. I firmly believe the best years for Redcar & Cleveland different from those of Greater Eston. Therefore the ‘Drivers lie ahead. of Change’ vary across the Borough and, to reflect this, the implementation of the Regeneration Masterplan will be through The future will see great changes for Redcar & Cleveland. It will four distinct Spatial Frameworks – one each for Redcar, South not be an easy journey but I am confident that this Borough will Tees, Greater Eston and East Cleveland. come out of the recession better and stronger than most. The Regeneration Masterplan puts considerable emphasis on quality of place; Redcar is to be transformed - work has already started on the seafront; the New Perspective: New Lives programme is the foundation for the stronger and increasingly sought after communities of Greater Eston; the best of East Councillor Mark Hannon Cleveland living currently will become the benchmark for all the Portfolio Holder rural communities. Deprivation will be reduced as the working for Economic Development population increases. 5 Executive Summary E 6 Executive Summary Executive Summary Redcar and Cleveland 2025 This Regeneration Masterplan sets out a 15 year framework for economic regeneration across the Borough of Redcar & Cleveland in the Tees Valley. During this period, the effects of the global recession of 2008 / 11 will have been managed, the foundations of E a stronger, more diverse, economy been laid and several transformational economic interventions will have taken place, resulting in a strong and sustainable economic future for the residents and businesses of Redcar, South Tees, Greater Eston and East Cleveland. The industrial economy will still be a key employer and major player in regional, national and international markets but the service sector – particularly the public sector, creative industries and tourism and leisure services – will form a larger part of the economy. Employment in both the new and modernising industries and the service sector will drive local wealth and draw on a more skilled labour force, which is more likely to be resident in the Borough, itself increasingly recognised for its attractive and wide-ranging urban and rural assets. Redcar & Cleveland is a diverse Borough ranging from coast to country, seaside towns to market towns, from suburban to rural and from heavy industry to national parks. Diversity is a strength and, in the future, the economy will be as diverse and as strong as the places and communities that make up the Borough. 7 Executive Summary Part One: Drivers of change future shape of the economy will ensure of employment could tip the balance The economy does not stand still. that public sector interventions, whether for fragile communities, leading to long The global recession of 2008 / 11 has policy based or financial, have maximum term deprivation and the reversal of underlined the need to constantly refresh effectiveness and impact. the positive trends whitnessed in the and review the public sector’s approach last decade. The Borough was the 52nd to the dynamics of the local economy, The need to grow employment and most deprived in England in 2010 – responding to challenges and identifying tackle deprivation unacceptably high but better than the and setting new economic imperatives. The need for intervention is beyond rank of 50th it achieved three years Whilst long-established industries have dispute; unemployment in the Tees earlier in 2007 and 44th in 2004. A return been hard hit, a measured response Valley as a whole rose by 73% between to employment will generate wealth and based on best possible analysis of the June 2008 and June 2011. Further loss local spending, support better services and create stronger towns and villages. Overall deprivation 2010 Source: IMD 2010 where 0% is most deprived nationally Skills of Working Age Population (% of working age population) Source: NOMIS Annual Population Survey (2010) No Level Level Level Level qualifications 1 2 3 4 England 11.1 13.3 16.3 19.6 31.1 North East 13 14.3 18.2 22.4 25.5 Redcar and 13.4 14.9 17.8 22.9 23.8 Cleveland 8 Executive Summary The weaknesses in the existing outside the Borough, further exposing resident labour force compares badly economy the local economy to wider national and in regional and national terms. Only Employment in manufacturing in Redcar global factors. 15% of the working age population has & Cleveland fell from 11,568 in 1998 a degree-level qualification compared to 6,895 in 2009, a dramatic change Lifting the low skill base to 20.7% in the North East and 26.5% but consistent with other areas once There are still many highly skilled jobs nationally - and the Government target is dominated by industry. However, in in Redcar & Cleveland. Unfortunately for 40% by 2020. Building a competitive contrast to these areas, where new many of these are taken by people workforce is a key target for the employment in financial services, commuting into the Borough and the Regeneration Masterplan. business, retail and distribution grew and replaced lost jobs, in Redcar Major components of employment change & Cleveland such employment has remained static. This has left the Borough with a weak service sector which needs to be addressed through the Regeneration Masterplan. Moreover, there is great interdependency within the remaining industrial economies, particularly so in the Petro-Chemicals cluster where business and products are strongly related and in many cases, dependant on shared infrastructure. In this and other industrial sectors such as steel, much of the decision making on investment and products takes place North Sea Steel Tourism Leisure Retail Creative Business Port Population new Growth Retail industrial/ Middles- manufacturing Brough Redcar Renewables Marske-by- South Leisure the-Sea Leisure Tees Petro- Chemicals Tourism New Creative Saltburn- Marske Retail by-the-Sea Population Retail Steel Retail Growth Middles- Leisure Brotton Retail Leisure Leisure Brough Leisure Greater Eston Retail Skelton Loftus Rural Population South Tees Resaissance Growth Spatial Framework Eston Nab Greater Eston Leisure Spatial Framework Guisborough Retail Tourism Redcar Spatial A171 Population Framework Growth Business East Cleveland Spatial Framework Economic Scenarios Roseberry Topping City Region Vitality A171 North York Moors Measured Revival National Park Stabilise/ Economic scenarios across the spatial areas. Consolidate 9 Executive Summary Economic Drivers A vision for the community and the economy The economy of Redcar & Cleveland is changing.