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Levelling up the Great South West: a G7 Legacy Contents Levelling Up the Great South West: a G7 Legacy Contents 03 Foreword 04 Executive Summary 05 Chapter 1: Devon and Cornwall — challenges and opportunities 06 Chapter 2: Our Levelling Up Analysis 12 Chapter 3: Case Studies 15 Chapter 4: Policy Recommendations 16 Endnotes 2 Pennon Group plc Levelling Up Devon and Cornwall: a G7 Legacy Foreword Susan Davy CEO, Pennon With life in Britain gradually returning to This vision is one shared by Pennon, the These kinds of initiatives are Pennon’s normal, the political conversation is turning largest private sector employer in the region. contribution to what should be a huge joint to the Government’s main policy priority: We have 2,000 colleagues and support effort between national and local government, levelling up. Over the next few months there another 5,300 through our supply chain. We the private sector, and the third sector to will be lots of competing voices attempting have a unique role to play in supporting the transform our connectivity infrastructure, to define what the policy means and what it lives of people and the places they love. Now release investment into our high-growth should look like. that the Government is embarking on radical sectors, and boost the skills of the entire plans to reduce regional inequality across region. The post-Covid moment could be a This report is Pennon’s contribution to that Britain, that means ensuring the South West once in a generation opportunity to level up debate, commissioned on behalf of the Great secures the vital investment it needs. our region: here in the South West, we stand South West. By analysing all parliamentary ready to deliver. constituencies in Devon and Cornwall on Our recommendation is clear: levelling up six key indicators of social and economic cannot focus only on the North and Midlands. wellbeing, we have shown the unique We must transform levelling up into an challenges and the major opportunities facing integrated national project, with economic the South West. Our hope is that this report growth plans for every region incorporated can be a springboard to further action — into a central framework. powering our region to a high-tech, high- growth, green British future. We’re backing up our calls with action. Our Green Recovery Initiative is focused on The analysis shows that while the South opportunities to make an even bigger and West has a reputation as a relatively well-off better societal contribution, with projects region of the UK, and while crime is generally focused on improving public health, low and life expectancy is high, all but two protecting the environment and addressing of the 18 constituencies in the country’s two climate change. It will provide much needed most south-westerly counties are below the investment and support the creation of up to England and Wales average on spending 500 regional jobs up to 2025. It’s an example power, a measure of productivity which takes of a private sector driven plan which will into account employment rates and average benefit the wider supply chain and provide wages. opportunities for South West Water’s existing workforce to gain new green skills. Yet the region’s potential is huge. It already has much to build on: a natural environment That’s on top of the work we’re doing on which is the envy of Britain; a tourism trade our jobs and skills programmes: we were which makes up around a quarter of regional one of the first companies to sign up to GVA per year; the second highest regional the Government’s Kickstart scheme; our employment in the creative industries outside apprenticeship programme has a target of London and the South East; a thriving 500 apprenticeships over the next five years; aerospace and manufacturing sector; and we are very proud of our newly launched huge opportunities for sustainable energy graduate programme which intends to offer generation; and an increasingly innovative 100 roles by 2025. agri-food industry. Pennon Group plc Levelling Up Devon and Cornwall: a G7 Legacy 3 Executive Summary The aim of this report is to demonstrate the levelling up needs of the Great South West, looking primarily at the two counties of Devon and Cornwall; to outline the specific challenges affecting the region; to analyse the disparities existing within both counties; and to put forward policy recommendations which could support their economic development. ● ‘Levelling up’ is now the central more in need of levelling up than Devon, concrete plans: our Green Recovery commitment of the Government’s policy but both Plymouth seats and Torbay are Initiative will support the creation of up to agenda. Much of the political conversation more in need than anywhere else. 500 additional jobs across our regions over around levelling up has focused on the the next four years and provide further so-called ‘Red Wall’ of formerly Labour-held ○ We find that the rural factor is a major opportunities for South West Water’s seats in the north and midlands of England. cause of the low productivity levels in the existing workforce to gain new green In reality, however, all regions of Britain region. Despite promising clusters in a skills. We are also bringing young people have specific socio-economic challenges diverse advanced manufacturing sector, into the business through the Kickstart, which can be addressed by Government Devon and Cornwall tend not to benefit apprenticeship, and newly launched policy interventions. from the agglomeration effects present in graduate scheme. other counties with large conurbations or ● Devon and Cornwall is South West Water’s with better transport connectivity. ● As we move into a post-pandemic primary coverage area, and the two recovery, Government and the private counties have their own set of challenges ● Our analysis shows that what has sector will have to work closely together and opportunities to be solved and happened to many areas in the South to create the conditions in which new and unlocked by Government policy. However, West is very similar to much of the established sectors can thrive sustainably policies that benefit them will ultimately northern ‘Red Wall’. There are pockets of while protecting the natural environment. benefit the whole Great South West region. deprivation across both parts of the two Transforming levelling up into a truly Despite strong and nationally-leading counties: low productivity areas with low national project with a long-term strategy sectors across the two counties there are wages and a fragmented employment integrating economic thinking from every also major challenges on productivity, low market, many still dealing with the effects nation and region of Britain could have a pay, and pockets of deprivation, particularly of deindustrialisation and low levels of both real impact. Outlined below is our five-step in urban and coastal areas. private and public investment. Looked at on policy programme for central Government socio-economic indicators alone it would be to support the economic development of ● In order to better understand these difficult to tell apart many ‘Red Wall’ towns Devon and Cornwall and leave a lasting challenges, we have created a levelling up from those in coastal areas of the South legacy for the wider Great South West analysis of both counties at a parliamentary West. region: constituency level. ● However, there are plenty of opportunities 1. Transform levelling up into an ● The data shows two major patterns: for boosting growth, including an exciting integrated national project, with array of sectors making up a high-potential economic growth plans for every ○ The first is a clear divide between Devon advanced manufacturing cluster. British region incorporated into and Cornwall and the rest of the UK in a central framework. These plans terms of productivity. This divide cannot ● The combination of the natural environment should be delivered by regional be overstated. Cornwall and the Isles of and environmental science specialisms leaders with regional accountability. Scilly has the lowest productivity of any in the region means Devon, Cornwall and UK subregion — and by a long way – the wider South West could set its sights 2. Establish a Transport for the South 32% below the national average and an on becoming Britain’s greenest regional West body with similar powers to outlier even amongst the bottom quartile. economy, turning global concerns over Transport for the North, able to Devon, while better, is still the seventh sustainability into locally-led economic champion transport infrastructure lowest productivity area in the UK. growth. projects across the region. ○ Using historical productivity data, our ● Devon is home to one of the fastest- 3. Deliver ultra-fast South West 5G analysis finds that on a ranking of growing IT clusters in the UK, with the mobile, fibre and wireless broadband all parliamentary constituencies by number of sectors in the cluster having through to 90% of the population by productivity 13 out of 18 Devon and grown by 36% since 2010, creating over 2030. Cornwall constituencies are in the 2,000 jobs. Agri-tech contributes over £750 highest priority category. million to Devon’s economy each year 4. Expand the now-doubled public and the county has seen a 367% increase RD&I budget in every British region, ○ This is in contrast to the Government’s in environmental consultancies and prioritising the South West’s portion own levelling up categorisation, which businesses since 2010. in the advanced manufacturing and includes only three South West local environmental science clusters. authority areas in its priority group. ● Cornwall is similar: 27% of the county is Put simply: many places in Devon and recognised as an Area of Outstanding 5. Commit to opening up more STEM Cornwall rank consistently among the National Beauty, and the county has a pathways for students in higher and lowest growth areas in Britain.
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