Appendix A: Principles of Growth
It!is!important!to!establish!the!principles!of!growth!that!will!underpin!the!Growth!Plan!of!Somerset! before!developing!the!detail!of!the!plan.!! 1 Growth(will(be(led(by(the(private(sector(
Most!growth!in!Somerset!over!the!period!to!2020!will!be!created!by!the!private!sector,!and!some!by! the!social!economy.!!Direct!job!creation!by!the!public!sector!is!not!expected!to!play!a!role!in!growth! in!the!coming!years.!!Public!sector!intervention!should!only!be!used!to!overcome!market!failures.!
Market' failure! occurs! when! a! market! does! not! efficiently! allocate! resources! to! meet! certain! objectives! (in! this! case! promoting! growth! in! Somerset)! due! to! specific' problems' with' the' market' mechanism.!!!The!public!sector!should!only!intervene!in!the!economy!when!markets!are!not!efficient! and!when!the!intervention!would improve!efficiency!i.e.!in!this!case,!promote!growth!in!Somerset.!! The!first!condition!for!public!sector!intervention!is!evidence!that!a!market!failure!exists.!!The!second! condition!is!that!the!intervention!will!make!an!improvement.!
As!an!example!in!the!case!of!this!commission,!market!forces!may!lead!to!the!private!sector!creating! jobs! in! places! other! than! Somerset! because! of! barriers! or! perceived! barriers! to! investing! in! Somerset.!!For!example,!Somerset!may!lack!a!key!piece!of!infrastructure!that!is!found!elsewhere,!or! the!perceived!risk!is!high!whereas!the!actual!risk!is!low.!!This!becomes!a!market!failure!when!the! wider!benefits!to!Somerset!of!investing!in!the!missing!piece!of!infrastructure!outweigh!the!costs,!but! the! private! sector! is! unwilling! to! invest! in! the! infrastructure! because! it! cannot! capture! enough! benefits!to!make!it!worthwhile,!or!perceives!the!risk!as!too!high.!!There!is!then!a!case!for!the!public! sector!to!invest!in!the!infrastructure!or!overcoming!the!misperception,!which!encourages!the!market! to!invest!in!Somerset,!which!then!creates!wider!benefits!such!as!more!or!better!jobs!for!Somerset! residents.! 2 Growth(in(Somerset(will(be(driven(by(domestic(and(external( markets(
Growth! can! be! created! from! trade! in! domestic! markets! or! external! markets.! ! In! this! case,! the! domestic!market!is!Somerset.!!Everywhere!else!is!an!external!market,!and!this!should!not!be!thought! of!only!as!overseas!export.!!Growth!from!the!domestic!market!must!be!created!by:!either!growing! the!size!of!the!domestic!market!e.g.!more!residents/consumers!in!Somerset;!or!replacing!imports!of! goods! and! services! into! Somerset.! ! External! trade! can! be! in! the! form! of! goods! and! services,! and! inward! investment! and! tourism! are! forms! of! external! trade.! ! ICT! infrastructure! can! mean! that! external!trade!does!not!involve!physical!movement!(of!goods!or!people).!!In!Somerset’s!case,!more! growth/wealth/value!is!likely!to!be!created!from!growth!in!external!trade!than!by!growth!in!serving! the! domestic! market.! ! This! means! focusing! on! externally! tradable! economic! activities! in! which! Somerset!has!competitive!advantage.!
! ! ! 1! ! 3 Somerset(needs(to(build(on(its(competitive(advantages(
Competitive! businesses! are! not! spread! throughout! the! economy,! they! tend! to! ‘cluster’! in! interR connected! sectors.! ! Competitive! advantage! emerges! from! areas! of! specialisation! in! the! local! economy.! ! There! are! a! number! of! reasons! why! particular! industries! in! particular! places! are! successful1:!
• The!presence!of!particular!factors!of!production!e.g.!skilled!labour,!infrastructure,!and!also!the!natural! environment! • High!demand!for!their!products!and!services! • The!presence!of!suppliers!and!related!industries! • Well!organised!and!managed!companies! • Healthy!rivalry!between!the!companies!in!a!location!
In! particular,! innovation! drives! competitive! advantage.! ! Collaboration! is! also! important,! and! the! strongest! competitive! advantage! occurs! when! there! is! sharing! (of! information,! techniques,! technologies!etc.)!as!well!as!competition!between!businesses!in!a!location.!
What!this!means!for!Somerset!is!that:!
• Priority!should!be!given!to!the!most!competitive!specialist!sectors!(both!currently!and!in!the!future)! e.g.!aerospace!and!nuclear! • Support!should!be!provided!to!other!sectors!with!a!competitive!advantage!e.g.!Food!&!Drink,!Agri! Tech,!Tourism!etc.! • There!should!be!investment!in!high!skills/training!and!infrastructure! • Efforts! should! be! made! to! promote! supply! chain! and! cluster! development!in! areas! of! competitive! advantage! • Investment!should!be!made!to!improve!management!skills! • Support!for!innovation!and!collaboration!in!priority!sectors!will!be!important! 4 Somerset(needs(to(work(hard(to(derive(benefits(from( agglomeration(effects(
Larger!numbers!and!concentrations!of!people!and!economic!activity!(e.g.!cities)!create!benefits!of! scale,! and! also! greater! opportunities! for! communication,! networking,! cluster! development! and! competitive! advantage,! as! discussed! above.! ! However,! the! largest! town! in! Somerset! has! a! population! around! 60,000,! so! physical! agglomeration! is! limited.! ! Whilst! developing! a! large! city! in! Somerset!is!not!realistic!(at!least!in!the!shortRterm),!there!are!other!ways!in!which!agglomeration! effects!can!be!achieved,!e.g.:!
• Linking! places! together! through! infrastructure,! ICT,! transport! etc! e.g.! greater! linkages! between! Bridgwater,!Taunton!and!Yeovil! • Ensuring! that! the! major! towns! are! accessible! from! their! rural/market! town! hinterlands,! thus! increasing!the!scale!of!accessible!population!in!these!towns! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1!Porter,!M!(1998)!The!Competitive!Advantage!of!Nations! ! ! ! 2! ! • Investing!in!growth!in!the!most!accessible!places,!where!it!can!be!enjoyed!by!the!most!people!and!is! most!sustainable! • This!then!allows!specialisation!(and!competitive!advantage)!in!smaller!places! • Linking!places!in!Somerset!to!places!outside!Somerset!e.g.!Bristol,!Exeter!etc! 5 Focus(on(promoting(growth(in(functional(market(areas(
Growth!will!be!created!in!functional!economic!market!areas.!!The!functional!economic!geography!of! Somerset!is!discussed!at!chapter!three!of!the!Growth!Plan.! 6 Growth(must(be(built(on(Somerset’s(opportunities(
Intervention!and!investment!must!address!market!failures,!and!maximising!opportunities.!!Market' failure!occurs!when!a!market!does!not!efficiently!allocate!resources!to!meet!certain!objectives!(in! this!case!promoting!growth!in!Somerset)!due!to!specific'problems'with'the'market'mechanism.!!!The! public!sector!should!only!intervene!in!the!economy!when!markets!are!not!efficient!and!when!the! intervention! would improve! efficiency! i.e.! in! this! case,! promote! growth! in! Somerset.! ! The! first! condition! for! public! sector! intervention! is! evidence! that! a! market! failure! exists.! ! The! second! condition!is!that!the!intervention!will!make!an!improvement.! 7 Modelling(Somerset’s(Economy(
The!figure!below!sets!out!a!simplified!model!which!helps!to!identify!the!areas!(shaded!orange)!in! which! investment! should! be! focused! to! promote! future! growth! in! Somerset.! Whilst! growth! in! Somerset!will!be!influenced!by!global!and!national!factors,!this!plan!focuses!on!those!areas!that!can! be!effectively!controlled!locally.!
! ! ! 3! ! Change,in, Popula=on, Housing, Household, Growth, Growth, Structure, Taxes, Workforce, Growth, Taxes, Public,Sector, Revenue,Growth,
Demand/, Business/ Taxes, supply,,of, Economic, Business, skills, Growth, Aspira=on,and, Competency,
Access,to,markets/strategic,infrastructure, Consumer, Demand, Growth, Export, Public, Growth, Spending, Growth, !
!
!
!
!
! ! ! 4! ! Appendix B: SWOT and Barriers
The!assessment!of!strengths,!weaknesses,!opportunities,!threats!and!barriers!draws!upon!data!set! out!in!the!latest!State!of!Somerset!Economy!report1.!!Excerpts!from!this!report!setting!out!the!key! data!are!attached!as!an!annex!to!this!appendix.! 1 Current(Strengths(and(Weaknesses(
1.1 Strengths(
The! Somerset! Economic! Assessment! (2013)! identifies! a! number! of! strengths! of! the! Somerset! economy.!!These!can!be!summarised!as:!
• Most!economically!active!residents!are!in!work! • Somerset!has!a!high!quality!of!life! • Somerset’s! economy! has! grown! marginally! since! 2007,! whereas! the! national! economy! has! shrunk! over!the!same!period! • Growth!has!been!balanced!across!a!range!of!sectors! • Somerset!has!relatively!good!connectivity,!including!to!London!and!Bristol! • The!economy!is!fairly!broad!and!mixed! • Skills!are!reasonable,!particularly!midMlevel!skills!
Somerset!is!a!relatively!diverse!area!–!economically,!socially!and!culturally.!!In!terms!of!the!economy,! it!has!a!large!number!of!SMEs!and!high!levels!of!selfMemployment.!!Whilst!there!are!a!number!of! globally!competitive!large!businesses,!they!are!few!in!number.!!Overall!Somerset!has!low!levels!of! deprivation,!although!there!are!some!pockets!in!places!such!as!Bridgwater,!and!some!less!obvious! rural! deprivation.! ! Somerset! has! high! economic! activity! rates,! although! in! places! this! could! mask! underMemployment.!!Somerset!has!a!very!high!quality!of!environment,!and!consequent!quality!of!life! which!attracts!residents.!
Accessibility!in!parts!of!Somerset!is!very!strong,!with!the!M5!motorway,!and!mainline!rail!serving! parts!of!the!county.!!Looking!outside!the!county!boundaries!there!is!proximity!to!airports!at!Bristol! and!Exeter,!and!proximity!to!several!large!cities.!!This!accessibility!serves!parts!of!Somerset!well,!and! places! like! Bridgwater! have! seen! major! investments! in! logistics! and! distribution! because! of! the! strong! accessibility;! but! beyond! the! core! infrastructure! some! of! the! more! rural! areas! are! poorly! served!–!and!this!is!explored!in!more!detail!below.!!Somerset!has!a!broad!economy,!with!particular! strengths!in!sectors!such!as!distribution,!tourism,!as!well!as!high!quality!employment!in!the!YeovilM based!aerospace!and!advanced!manufacturing!cluster.!!Taunton!is!a!strong!market!town,!serving!the! wider!county.!!!
Mendip' has! diverse! economy! and! globally! competitive! businesses! including! Clarks,! Mulberry! and! Blackthorn.!!Mendip!also!hosts!the!Glastonbury!Festival,!which!brings!significant!global!profile!to!the!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1!State!of!the!Somerset!Economy!(2013)!Produced!by!the!Marchmont!Observatory!for!Somerset!County! Council! ! ! ! 1! ! local!area.!!The!district!offers!a!high!quality!of!life,!which!is!a!strong!attraction!to!employees!and! hence!the!businesses!that!employ!them.!
Sedgemoor'has!strong!road!accessibility!with!the!M5!running!through!the!district.!!It!has!a!rail!link!to! Bristol! and! Exeter,! and! efforts! are! being! made! to! improve! the! quality! of! the! service! on! this! line.!! Sedgemoor! has! seen! significant! recent! economic! developments! and! employment! creation! (e.g.! Morrisons!and!North!East!Bridgwater!housing/construction!employment).!!There!is!an!established! Bridgwater!Vision!and!Bridgwater!Challenge!Partnership!which!bring!focus!to!the!future!growth!of! the!district’s!main!town.!!Sedgemoor!will!see!significant!impact!from!the!development!of!Hinkley! Point!C!(both!positive!and!negative),!and!EDF!Energy!has!made!recent!investments!in!training!and! skills!infrastructure!and!delivery!in!the!local!area.!
South' Somerset! has! a! concentration! of! high! value! aerospace! and! advanced! manufacturing! employment,!and!forms!part!of!a!larger!West!of!England!cluster.!!With!Augusta!Westland!it!has!one! of! the! largest! globally! competitive! businesses! in! Somerset! (which! brings! challenges! as! well! as! benefits!–!discussed!below).!!Yeovil!also!has!an!innovation!and!enterprise!centre!which!is!helping!to! support!the!growth!of!dynamic!new!businesses.!
Taunton' Deane! includes!Taunton!which!is!a!strong!market!town!and!service!centre!for!much!of! Somerset.!!As!the!county!town!it!is!home!to!a!variety!of!public!administration!and!service!functions! and!therefore!has!high!levels!of!public!sector!employment.!!There!are!significant!development!plans! for!major!sites!in!and!around!Taunton!which!will!both!create!economic!activity,!and!increase!the! scale!of!Taunton,!this!promoting!agglomeration!benefits.!!The!district!has!relatively!high!levels!of! resident!earnings.!
West'Somerset'has!a!very!strong!tourism!sector,!with!efforts!being!made!to!increase!the!quality!and! competitiveness!of!local!businesses,!as!well!as!extend!the!season!to!increase!the!level!of!benefit.!! The! district! has! a! very! high! quality! environment! which! is! attractive! to! residents,! but! brings! challenges!around!development!and!accessibility.!
1.2 Weaknesses(
The! Somerset! Economic! Assessment! (2013)! identifies! a! number! of! weaknesses! of! the! Somerset! economy.!!These!can!be!summarised!as:!
• Productivity!is!around!20%!lower!in!Somerset!than!the!national!average! • There! are! fewer! businesses! postMrecession! than! beforehand,! whereas! the! stock! of! businesses! nationally!increased!over!the!period!2008!to!2011! • Business!confidence!has!decreased!in!the!last!year! • Somerset!has!a!relatively!low!level!of!new!business!formation! • There!is!a!lack!of!dynamism!in!the!County’s!business!community,!shown!by!a!low!rate!of!new!business! formation! • There!are!fewer!jobs!than!before!the!recession! • Much! unemployment! remains! hidden,! and! around! 25,000! Somerset! residents! are! thought! to! be! underemployed! • Somerset!has!a!relatively!low!proportion!of!its!workforce!in!high!level!occupations,!and!a!relatively! high!proportion!of!its!workforce!in!lower!level!occupations! ! ! ! 2! ! ! • There!is!an!underMrepresentation!of!employment!in!key!growth!sectors!such!as!finance!and!business! services! • There!is!poor!performance!on!some!educational!indicators,!and!relatively!poor!performance!in!higher! level!skills! • Average!workforce!earnings!are!lower!than!the!national!average! • The!County!comprises!a!number!of!distinct!and!small!functional!economic!areas,!and!therefore!does! not!derive!agglomeration!benefits! • The! diversity! of! the! County’s! economy! means! that! it! does! not! have! a! concentration! of! economic! activity!in!growth!areas! • A! shortage! of! suitable! business! premises! and! freehold! development! land! restricts! employment! growth!
Somerset!has!relatively!low!skills!and!low!levels!of!qualifications;!and!gaps!in!some!areas!where!high! level!skills!are!required.!!The!county!lacks!a!major!urban!agglomeration!and!the!economic!and!social! benefits!that!go!with!this;!although!there!are!strong!growth!aspirations!for!Taunton,!as!mentioned! above.!!Overall!Somerset!has!low!population!density,!which!brings!challenges!around!accessibility,! service! delivery! and! concentrations! of! economic! activity.! ! Somerset! does! not! have! a! dedicated! Higher! Education! (HE)! institution! and! the! profile! that! goes! with! this,! although! it! has! a! strong! FE! sector! which! is! seeking! to! tackle! this! challenge! through! the! delivery! of! HE! level! courses! in! the! county.! ! There! are! relatively! low! concentrations! of! knowledge! employment,! albeit! that! there! are! some!concentrations!of!high!level!expertise!such!as!aerospace!and!advanced!manufacturing!in!South! Somerset.!!The!county!has!a!generally!low!wage!economy,!and!this!is!more!prevalent!in!some!places,! like!Sedgemoor,!than!others.!!Somerset’s!rurality!(including!poor!access)!leads!to!some!dispersed,! and!often!hidden!deprivation.!!!
Somerset! has! few! highMproductivity/globally! competitive! sectors,! and! only! a! small! number! of! globally! competitive! businesses.! ! The! Aerospace! sector! is! highly! dependent! on! a! single! large! employer!that!is!overseasMowned,!which!brings!risks!of!investment!decisions!being!made!on!a!global! basis.!!A!global!decline!in!defence!spending!also!presents!risks.!
The! lack! of! reliability! of! the! second! strategic! road! access! into! the! county! (A303/A358)! is! compounded!by!the!M4/M5!routes!being!close!to!capacity,!although!recent!signalling!upgrades!at! M4/M5!junction!may!help.!!Capacity!for!growth!at!a!number!of!junctions!on!the!M5!is!limited.!!Some! strategic!development!sites!(e.g.!Puriton)!are!not!being!delivered!quickly!enough;!and!other!strategic! sites!(e.g.!Firepool)!not!attracting!investment!in!the!current!market.!
Mendip'has!significant!levels!of!low!value!employment;!and!does!not!have!a!strong!business!identity.!! Sedgemoor'has!low!levels!of!skills!and!educational!attainment.!!It!also!has!some!concentrations!of! deprivation.! ! South' Somerset! has! challenges! around! accessibility,! particularly! to! the! motorway! network.!!!!Taunton'Deane’s'economy!has!a!high!concentration!of!public!sector!employment,!which! is!vulnerable!to!current!and!future!spending!cuts,!particularly!in!local!government.!!West'Somerset'is! highly!dependent!on!tourism!and!agriculture,!which!are!generally!low!valueMadded!sectors!(albeit! that!efforts!are!being!made!to!increase!their!value).!!The!district!has!low!levels!of!economic!activity,! and!an!older!population.!!The!scale!of!the!district!and!the!small!scale!of!its!population!has!led!to! challenges!around!the!operation!of!local!government.!
! ! ! 3! ! ! Local! plans! for! the! districts! in! Somerset! are! at! different! stages! of! development.! ! Whilst! Taunton! Deane! and! Sedgemoor! have! recently! adopted! Core! Strategies,! others! do! not.! ! Where! local! plans! have!not!yet!been!adopted!there!may!be!difficulties!driving!forward!economic!growth!plans!in!an! uncertain!planning!and!growth!environment.! 2 Future(Opportunities(and(Threats(
2.1 Opportunities(
The! Somerset! Economic! Assessment! (2013)! identifies! a! number! of! opportunities! for! the! future! growth!of!the!Somerset!economy.!!These!can!be!summarised!as:!
• Hinkley!Point!C!could!be!a!significant!catalyst!to!economic!growth!in!Somerset!in!the!future! • This!sits!within!the!growth!potential!of!low!carbon!energy!more!generally,!including!renewable!energy! • Augusta! Westland! has! secured! RGF! funding! which! should! enable! it! to! diversify! into! nonMmilitary! markets! • Somerset! has! a! higher! than! average! share! of! employment! in! mediumMhigh! and! high! technology! manufacturing! • There!is!potential!for!diversification!in!the!agriculture!sector! • There!is!potential!to!increase!the!quality!of!the!tourism!sector!
The! proposed! £16! billion! investment! in! Hinkley! Point! C! (HPC)! provides! a! massive! opportunity! for! economic!growth!in!Somerset,!although!it!brings!challenges!too.!!A!legacy!aspiration!is!the!creation! of! a! new! nuclear! supply! chain! cluster,! which! can! be! broadened! into! other! low! carbon! energy! technologies.!!This!will!also!contribute!to!the!diversification!of!advanced!manufacturing,!reducing! the!reliance!on!aerospace!mentioned!above.!!Growth!in!this!sector!provides!potential!for!export!to! other!parts!of!the!UK!and!overseas.!!As!well!as!HPC,!there!are!other!significant!low!carbon!energy! opportunities!that!Somerset!could!benefit!from,!including!Severn!Tidal!Power,!the!Atlantic!Array!and! HPB! decommissioning.! ! Tourism! has! potential! for! increased! value,! including! greater! overseas! tourism!e.g.!from!China.!!Major!development!sites!such!as!Firepool,!Monkton!Heathfield,! Puriton! and!the!Bath!&!West!Showground!have!significant!development!potential!which!could!attract!new! investment!into!Somerset!(albeit!that!all!strategically!significant!sites!have!challenges!that!need!to! be!overcome).!!A!superfast!broadband!network!is!being!rolled!out;!along!with!support!to!businesses! to!make!the!most!of!this!opportunity,!which!should!help!to!address!some!of!the!accessibility!and! connectivity!issues!faced!by!parts!of!the!county.!
There!are!some!LEP!priorities!that!are!central!to!Somerset’s!future!economic!growth,!including:!R&D! capacity,! business! support,! superfast! broadband,! tackling! unemployment,! and! improving! skills.!! Nuclear!and!low!carbon!energy!are!also!identified!as!priority!sectors.!
Mendip'has!potential!to!grow!rural!enterprises!more!generally;!and!engage!in!the!HPC!supply!chain.!! Food! and! drink,! and! specifically! Agri! Tech! provide! opportunities! for! the! local! economy,! with! the! potential!to!create!a!focus!of!activity!at!the!Bath!&!West!Showground.!!Sedgemoor'is!very!close!to! the! proposed! HPC! development,! which! offers! major! opportunities! (and! challenges)! for! both! local! workers! and! local! supply! chain! and! other! businesses.! ! Puriton! Energy! Park! is! also! a! major! opportunity!for!Sedgemoor,!either!as!part!of!the!HPC!process!or!more!broadly!in!terms!of!the!low! ! ! ! 4! ! ! carbon! energy! sector.! ! South' Somerset! has! opportunities! for! the! diversification! of! advanced! manufacturing!businesses!into!growing!sectors!such!as!low!carbon!energy,!including!the!HPC!supply! chain.! ! The! Yeovil! Vision! also! sets! out! opportunities! for! economic! growth! in! the! town.! ! Taunton' Deane'has!a!longMstanding!aspiration!to!create!a!green!(knowledge)!economy,!which!fits!well!with! the! low! carbon! and! low! carbon! energy! opportunities! in! the! county.! ! Taunton! Deane! also! has! significant! largeMscale! strategic! regeneration! and! development! opportunities! at! Firepool! and! Monkton!Heathfield.!!West'Somerset'is!close!to!HPC,!which!presents!opportunities!for!workers!and! supply!chain!businesses.!!There!are!development!sites!at!Minehead!and!Williton,!which!could!attract! HPCMrelated!investment!or!present!opportunities!for!other!sectors.!!The!district!also!has!economic! opportunity!through!the!improvement!of!the!quality!of!the!tourism!offer,!leading!to!higher!tourist! spend.!
As!well!as!HPC,!other!possible!infrastructure!priorities!include:!
• A358/303!which!is!a!LEPMwide!project!! • Potential!for!improvements!to!the!rail!infrastructure! • Enabling!investments!to!bring!forward!major!strategic!mixedMuse!sites!–!including!employment!land! and!housing! • Enabling!investments!to!bring!forward!major!housing!developments! • Infrastructure!to!reduce!flooding!and!flood!risk! • Skills!delivery!infrastructure!i.e.!training!and!teaching!facilities! • Business!support!infrastructure!–!revenue!funding!for!business!support!as!well!as!capital!funding!for! facilities!and!business!accommodation!
2.2 Threats(
The!Somerset!Economic!Assessment!(2013)!identifies!a!number!of!threats!to!the!future!growth!of! the!Somerset!economy.!!These!can!be!summarised!as:!
• General!economic!decline!as!a!consequence!of!global!economic!decline! • Ageing!population!leading!to!a!decrease!in!the!working!age!population! • Decline!in!employment!in!manufacturing!and!public!sector!affecting!particular!places!badly! • Less!competitive!economy!failing!to!attract!inward!investment! • Lack!of!affordable!housing!detering!skilled!inMmigrants!to!the!county! • Future!changes!to!the!funding!of!training!meaning!that!less!people!are!trained!to!appropriate!levels!
Global!and!national!economic!downturn,!future!uncertainty,!and!lack!of!investment!confidence!are! affecting! Somerset! as! much! as! anywhere! else.! ! The! decline! of! defence! spending,! and! strategic! decisions!about!Augusta!Westland!that!are!made!elsewhere!present!risks!to!the!future!growth!of!the! aerospace!and!advanced!manufacturing!sector,!which!is!one!of!Somerset’s!few!globally!competitive! areas! of! economic! activity.! ! Equally,! Somerset! will! benefit! and! faces! opportunities! from! global! economic! recovery.! ! Uncertainty! around! the! development! programme! for! HPC! means! that! infrastructure! investments! (by! both! the! public! and! private! sectors)! are! not! currently! being! made.!! Once!EDF!Energy’s!Final!Investment!Decision!is!made,!the!local!economy!may!not!be!able!to!gearMup! to!the!opportunity,!and!it!will!be!served!by!inward!investors!from!elsewhere.!!High!levels!of!public! sector!employment,!particularly!in!Taunton!Deane,!leave!Somerset’s!economy!vulnerable!to!future!
! ! ! 5! ! ! cuts,!particularly!in!local!government.!!In!general,!the!lack!of!a!coordinated!and!strong!lobby!for!the! county! at! Westminster! means! that! opportunities! such! as! RGF! and! Enterprise! Zones! have! had! insufficient!political!support.!!Internal!competition!within!the!Heart!of!the!South!West!LEP,!and!a! lack!of!experience!of!working!together!across!a!large!geography!and!economically!diverse!area!has! restricted!some!potential!opportunities.! 3 Barriers(to(Growth(
Based! on! the! analysis! set! out! above,! a! number! of! barriers! to! future! economic! growth! can! be! identified.! ! A! business! survey! carried! out! by! SERIO! across! the! Heart! of! the! South! West! in! 2012! identified! a! number! of! barriers! to! growth! including:! lack! of! consumer! demand,! difficulties! in! accessing!finance,!external!restrictions!(including!planning,!licensing!and!regulation),!lack!of!suitable! staff!and!lack!of!regulation!
The!latest!Somerset!Economic!Assessment!(2013)!identifies!lack!of!access!to!business!space,!lack!of! broadband,!poor!skills!and!poor!access!to!markets!as!barriers!to!business!growth.!
Growth!can!be!driven!by:!
• Growing!the!existing!economy!i.e.!incremental!improvement!and!growth,!building!on!what!is!already! there! • Structural!change!in!the!economy!i.e.!promoting!growth!in!areas!where!there!is!a!clear!and!evidenced! opportunity!for!Somerset!but!little!existing!activity!
Both!of!these!drivers!of!growth!need!to!be!underpinned!with!infrastructure!to!accommodate!that! growth!e.g.!ranging!from!housing!to!specialist!business!premises!to!transport!infrastructure.!!!
The! following! table! summarises! the! opportunities! and! barriers! that! currently! prevent! them! from! being!realised.!
Opportunity:(General(growth(in(the(economy(
As!the!economy!recovers!and!the!local!business!and!resident!population!expands!there!will!be! opportunities!for!growth!across!all!sectors!of!the!economy!to!meet!rising!demand.!!!
Barriers!to!realising!this!opportunity!include:!
• Lack! of! suitably! skilled! local! labour,! particularly! higherMlevel! skills,! and! poor! performance! on! some! educational! indicators.! ! Lack! of! a! dedicated! HEI! has! been! suggested! as! a! barrier! by! a! number! of! stakeholders;!albeit!that!HE!is!being!delivered!through!FECs.!!The!barrier!is!more!about!coordination,! focus,!profile!and!credibility!of!FE!and!HE!delivery!in!Somerset,!than!it!is!about!the!type!of!institution! that!is!delivering!it! • Lack!of!business!and!employment!base!in!general!growth!sectors!e.g.!finance!and!business!services.!! This! is! compounded! by! the! lack! of! significant! inward! investment! projects! into! Somerset! (although! Hinkley!Point!C!is!the!exception!to!this)! • Low!levels!of!dynamism!in!parts!of!both!the!enterprise!and!resident!communities.!!This!is!evident!in! low!levels!of!business!startMup,!R&D!and!innovation!activity,!and!low!levels!of!exporting.!!Business!
! ! ! 6! ! ! growth!is!restricted!through!difficulty!accessing!finance!! • Lack!of!suitable!business!premises!and!viable!development!land,!including!major!strategic! development!sites!!
Beyond!these!businessMfocused!barriers,!there!are!broader!concerns!about!weaknesses!in!transport!! and!communications!infrastructure,!and!the!delivery!of!affordable!housing,!including:!
• Lack! of! suitable! and! affordable! housing! to! accommodate! existing! and! future! population! (and! therefore!workforce)! • Weakness! in! some! critical! transport! and! communications! infrastructure! (e.g.! certain! motorway! junctions,!weakness!in!the!commercial!bus!market,!universal!roll!out!of!high!quality!communications,! and!delivery!of!some!strategic!employment!sites)! • Lack!of!agglomeration!and!concentrations!of!economic!activity!(particularly!knowledgeMintensive!and! globally!competitive!activity)!and!market!demand! • Need!for!greater!coordination!between!planning!and!development!frameworks!across!the!whole! county! • Lack!of!resources!to!develop!projects!and!proposals,!and!to!deliver!growth!!! !
Opportunity:(Growth(related(to(the(construction(of(Hinkley(Point(C(
The! £16! billion! investment! in! HPC! provides! a! truly! significant! opportunity! to! catalyse! growth! in! Somerset.!!!
Many!of!the!barriers!to!realising!growth!related!to!HPC!are!common!to!those!barriers!preventing! general!growth!in!the!economy.!!The!solutions!to!overcoming!the!barriers!may!need!to!be!delivered! in! a! way! that! is! particular! to! HPC! and/or! the! nuclear! sector,! but! they! will! be! similar! to! those! solutions!to!overcoming!barriers!to!general!growth,!and!may!be!delivered!as!part!of!the!same!area! of!investment.!!Key!barriers!to!capturing!HPC!related!growth!include:!
• Labour!force!quality! • Lack!of!suitable!premises!and!development!land!! • Lack!of!suitable!housing!and!limitations!of!some!critical!transport!infrastructure!(although!these!two! are!being!addressed!through!the!DCO!Section!106!agreement)!
Opportunity:(Growth(in(aerospace(and(other(advanced(manufacturing(
The!barriers!to!realising!growth!in!the!aerospace!sector!and!other!advanced!manufacturing!sectors! are!common!to!those!restricting!growth!in!new!nuclear,!as!discussed!above.!!In!addition:!
• Substantial!proportion!of!manufacturing!businesses!in!low!value!activities!
Opportunity:(Growth(in(low(carbon(energy(more(generally(
With! potential! opportunities! offered! by! solar! and! gas! power! at! Puriton,! offshore! wind! and! tidal! energy!(Severn!Tidal!Power)!there!are!opportunities!in!the!broader!low!carbon!energy!sector.!!There! are!also!opportunities!offered!by!nuclear!decommissioning.!
! ! ! 7! ! ! There! is! significant! potential! for! crossMover! between! the! supply! chains! of! nuclear! and! other! low! carbon! energy! technologies.! ! Therefore! investments! which! overcome! barriers! to! growth! in! the! nuclear!sector!could!also!help!to!stimulate!growth!in!other!low!carbon!energy!sectors.!
Opportunity:(Increased(value(in(the(Food(&(Drink(sector(
The!food!and!drink!sector!in!Somerset!is!significant!and!has!opportunities!to!grow!through!adding! value!in!the!processing!sector!and!developing!new!exports.!
As! well! as! the! general! barriers! to! growth! noted! above,! specific! challenges! to! realising! this! opportunity!include!access!to!finance,!and!business!support!to!develop!new!products!and!markets!
Opportunity:(Increasing(the(value(of(the(land(management(sector(
The!land!management!sector!is!significant!in!terms!of!its!interrelationships!with!the!food!&!drink! sector! and! managing! the! environment! which! is! of! great! importance! to! a! number! of! sectors! and! quality! of! life! among! Somerset’s! residents.! ! However,! much! activity! is! low! value! and! seasonal.!! Opportunities!exist!to!increase!diversification!and!explore!new!ways!of!generating!economic!value.!
Particular!barriers!include!the!need!for!business!support!to!explore!diversification!into!new!markets,! innovate!and!achieve!business!growth.!
There!is!already!activity!to!address!barriers!to!growth!in!this!area.!!Any!new!investments!will!need!to! generate!significant!additional!benefit.!!!
Opportunity:(Innovation(in(the(Agri(Tech(sector(
BIS/DEFRA!are!consulting!on!a!national!Agri!Tech!Strategy!with!an!ambition!to!establish!a!number!of! applied!research!centres!across!the!UK!in!a!£90!million!research!funding!and!economic!productivity! programme.!! The! Agricultural! Societies! are! collaborating! to! provide! a! national! support! network! providing! essential! linkages! between! research,! farm! production! and! food! technology/processing.! The! Royal! Bath! &! West! Agricultural! Society! is! a! partner! in! the! initiative! and,! with! the! parallel! development! plans! for! the! showground! site,! has! an! opportunity! to! establish! a! strong! centre! of! excellence!in!Somerset.!!The!initiative!also!helps!to!forge!strong!linkages!with!HE!establishments!of! national/international! repute! which! stimulate! further! collaboration! and! engagement! with! local! business!and!education!providers!in!the!future.!
Barriers!to!realising!this!opportunity!include!the!need!for!strong!LEP!endorsement!and!support!in! discussions!with!government.!!Funding!and!investment!will!also!be!particular!barriers!to!delivery.(
Opportunity:(Increasing(the(value(of(the(tourism(sector(
The!tourism!sector!is!important!to!Somerset,!but!is!characterised!by!too!little!high!value!activity.!! This!leads!to!seasonal,!part!time!and!low!paid!employment!in!many!cases.!!There!are!opportunities! to!increase!the!value!of!activity!through!developing!the!quality!of!the!product!and!targeting!new! markets!to!drive!demand.!
Reported!barriers!to!growth!in!this!sector!relate!to!business!leadership!and!management,!the!need!
! ! ! 8! ! ! for!business!investment!and!innovation,!weak!communications!infrastructure!and!workforce!skills.!!!
There!is!already!activity!to!address!barriers!to!growth!in!this!area.!!Any!new!investments!will!need!to! generate!significant!additional!benefit.!!!
Opportunity:(Growth(potential(in(the(health(&(social(care(sector(
The! ageing! population! provides! both! challenges! and! opportunities.! ! As! increased! numbers! of! residents!require!care!and!support!there!are!economic!opportunities!related!to!the!delivery!of!care.!! In!addition,!there!are!opportunities!related!to!the!development!of!new!products!and!processes!to! support! health! and! care! more! generally,! and! as! part! of! the! response! to! increased! demand! for! assisted!living.!!!
! 4 Issues(Arising(from(Stakeholder(Consultations(
4.1 Business(and(Enterprise(
A! number! of! key! economic/enterprise! growthMpotential! sectors! have! been! suggested! in! various! consultations,!including:!
• Nuclear!(HPC!related)!and!low!carbon!energy!(particular!opportunities!around!biomass!and!solar)! • Aerospace!and!advanced!engineering/manufacturing!(including!automotive!and!hydrology)! • Tourism! • Food!&!Drink! • Health!and!social!care!
Issues!around!business!growth!and!leadership.!!Particularly!related!to!lack!of!large!enterprises,!flat! structures,!family!owned!businesses!and!lifestyle!businesses.!!Create!a!range!of!drivers!for!business! support! which! are! not! being! met.! ! ! The! gap! in! provision! post! the! demise! of! Business! Link! was! regularly!noted.!
At!higher!end,!business!support!should!move!away!from!1M2M1!interventions!and!be!more!strategic! looking!at!potential!around!clusters!and!supply!chains.!!The!real!value!is!in!company!to!company! interactions.! ! Business! support! should! be! viewed! from! a! customer! perspective,! not! a! delivery! perspective.!!
These! are! not! necessarily! the! focus! of! individual! projects,! but! could! be! prioritised! or! drawn! out! within!enterpriseMrelated!projects.!
4.2 Workforce(and(Skills(
A!number!of!issues!have!arisen!from!consultations!relating!to!the!area!of!workforce!and!skills,!many! common!to!a!number!of!consultees:!
• Transfer!of!SFA!administering!and!awarding!FE!capital!programme!to!LEP!by!2015/16.!!Therefore!a! need!for!Somerset!and!LEPMwide!Growth!Plan!to!articulate!both!strategic!priorities!for!FE!and!more!
! ! ! 9! ! ! local!priorities!(so!that!smaller!local!priority!schemes!which!form!key!small!parts!of!the!supply!chain! and!which!are!likely!to!be!funded!by!existing!SFA!system!are!not!lost!within!prioritisation!of!strategic! projects).! • The!Somerset!Growth!Plan!and!wider!LEP!should!use!the!assets!and!investment!plans!that!colleges! have!to!help!lever!in!Growth!Funds.! • While! a! number! of! colleges! offer! undergraduate! courses,! there! is! no! single! coMordinated! HE! “Somerset!offer”.! • There!are!gaps!in!fully!understanding!some!business!needs!in!terms!of!skills!and!training.!Potential! need!for!strengthened!ESB!to!develop!employer/provider!links!and!set!skills!agenda!for!the!economy.! • There!needs!to!be!a!balance!between!artificially!trying!to!grow!some!sectors!and!providing!skills!and! training!to!match!demand!of!students.! • There!remains!a!challenge!in!making!industry!attractive!to!students!–!many!still!favour!a!University! route! rather! than! seeing! the! value! of! apprenticeships! and! moving! forward! to! foundation! degree! through!the!workplace!and!partMtime!study.! • Colleges!in!Somerset!have!a!strong!independent!offer!and!remain!competitive.! • Colleges! are,! in! general,! keen! to! link! into! opportunities! to! develop! specialist! cluster! Innovation! Centres! and! Centres! of! Excellence! through! apprenticeships,! foundation! degrees! and! employability! skills!(and!potentially!physically!hosting!centres).! • The! “bulge”! in! student! numbers! expected! to! hit! FE! and! HE! in! several! years’! time! presents! both! challenges!and!opportunities!from!a!skills!base!and!business!perspective.! • Better!linking!and!coMordination!of!the!supply!chain!from!training!through!to!employment!retained!in! Somerset.!!! • Broadband!skills!–!can!companies!which!are!able!to!“go!digital”!able!to!utilise!it!effectively!enough?!!Is! there!a!need!for!training!in!this!area?! • Concerns!regarding!the!work!readiness!of!young!people!entering!the!workforce.!
4.3 Infrastructure(and(Place(
Key!major!infrastructure!improvement!projects!and!commonly!identified!concerns!are:!
• M5!Junction!25!linked!with!A358/A303;! • M5!Junction!23;!! • Parrett!Barrage;!! • Somerset!Levels!dredging!and!longMterm!sustainable!solution!to!flooding;!! • Taunton!flood!defence!scheme!(upstream!River!Tone);!and,! • SuperMfast!Broadband!(and!4G)!rollMout!in!rural!areas!and!implications!for!growth!of!and!sustaining! competitive!rural!business.! • Poor!mobile!phone!coverage!in!rural!areas!
4.4 Other(Issues(
Numerous! consultees! discussed! the! functional! economic! geography! of! Somerset.! ! Comments! included:!
• The!county!not!forming!a!single!coherent!economic!entity;! • No!major!urban!agglomeration!to!generate!the!centrifugal!force;!and!
! ! ! 10! ! ! • A!tendency!for!each!area!of!Somerset!to!look!outwards!e.g.!Mendip!area!looks!north!to!Bath!and! Bristol,!Yeovil!looks!south!to!Dorset!and!Devon,!connections!north!and!south!along!the!M5!to!larger! centres!
Other!issues!commonly!raised!included:!
• The! impact! of! rurality! on! the! economy,! with! many! small! lifestyle! businesses,! inaccessibility! to! markets,!challenges!for!service!delivery;! • The!lack!of!joined!up!working!across!local!authorities!and!other!institutions;! • The!need!for!a!more!growth!focused!attitude!throughout!businesses,!the!workforce!and!the!public! sector!institutions.! !
! !
! ! ! 11! ! ! Annex(to(Appendix(A:(Excerpts(from(the(State(of(the(Somerset( Economy(Report(
!
! ! ! 12! ! ! EXECUTIVE SUMMARY: SOMERSET, A SUCCESSFUL ECONOMY?
This report looks at the key economic indicators and the trends in performance of the Somerset economy. Here, a reflection is provided on what that means in terms of the strengths and weaknesses for the economy and future threats and opportunities.
Successes
The Somerset Economy is, indeed, successful in a number of respects.
Firstly, it keeps most of its economically-active residents in work. Unemployment rates are lower than the national average, with ILO unemployment at 4% whilst the claimant count also remains low at 2.3%. Although employment has grown and fallen in line with the national picture up to 2011, Mendip and West Somerset continued to see employment growth in more recent times.
Somerset also delivers a high quality of life. The majority of Somerset’s districts are at the non- deprived end of the scale and on a variety of measures it scores well on quality of life. A general trend of net inward migration also attests to the relative attractiveness of Somerset as a place to live and work.
GVA growth rates in Somerset were consistent with year-on-year growth between 2000 and 2007 resulting in an expansion of 24% in real terms over the period, in line with the UK average. Whilst contracting between 2007 and 2009, growth in Somerset has exceeded the UK with 5.8% in Somerset and 3.2%in the UK between 2009 and 2011. The Somerset economy is therefore marginally (0.4%) larger than in 2007 and the UK economy is 1.8% smaller.
So what underlies this apparent success?
Firstly, the County has benefited from growth. The value of economic output was marginally higher in 2011 whilst it was lower nationally. In the recovery from recession, there has been a balanced growth across most sectors.
Somerset also benefits from its location and has an attractive working environment and heritage that is vital in terms of attracting inward investment. Connectivity to other economic centres is a key consideration for inward investors and proximity to London (and other conurbations) in terms of time and distance has been shown to have a positive impact on productivity. This connectivity also clearly offers employment opportunity to residents who commute out of Somerset to work in Bristol and other areas along the M4 corridor.
To some extent, the County has also benefited from its mixed economy. The lack of intense specialisation may have protected the economy from the prevailing economic conditions. Nor does Somerset contain any areas with significant economic problems or severe deprivation. Whilst pockets of poverty and deprivation certainly exist and need to be addressed, they remain just pockets in an otherwise successful economy, and do not represent a significant challenge to the social and economic fabric of the County.
There are also some strong indicators in terms of overall skills levels and particularly mid - level skills, and a reasonable proportion of its workforce in managerial/senior roles, skilled trades and technical occupations. There are indications of improvement in qualifications levels in the workforce and the attainment levels of 19 year old have improved steadily since 2005 so that more 19 year olds achieve the equivalent of two A levels than is the case nationally.
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Weaknesses in the economy
We have so far looked at the ways in which the Somerset economy has been successful. In many ways, based on its location, its physical environment and its economic structure, it has succeeded in avoiding some of the worst adverse affects of the current economic downturn. But it does have a number of weaknesses and these weaknesses may impede Somerset’s ability to generate new economic activity and support better local growth performance in the coming years.
Weaknesses in economic performance The evidence presented in the State of the Somerset Economy 2013 report shows that, in some respects, Somerset has fared worse than the national economy. The business base is smaller post-recession and there is a range of indicators which suggest constrained growth and economic performance: • The County’s business population has contracted over the last three of years with the stock of enterprises in 2011, 4% lower than the 2008 peak. While the business stock nationally increased marginally (by less than 1%) between 2008 and 2011, it decreased in all but one of Somerset’s benchmark local authorities. • Though unemployment rates are low, the County has actually seen a net loss of jobs. There are fewer jobs than before the recession, with employment levels and rates only holding up due to a fall in the population during the worst years of the recession. • Business confidence is down on last year. Businesses have identified a number of barriers to business growth1: lack of consumer demand (36%); difficulties in accessing finance (26%); external restrictions (planning, licensing, regulations) (16%); lack of suitable staff (15%); lack of investment (14%).
• Whilst unemployment is significantly below the national average, there are concerns that much unemployment remains hidden. Sheffield Hallam University has produced local estimates of the real incidence of unemployment which puts Somerset’s real level of unemployment at 6.6% in April 2012. Whilst this is below the Great Britain average, it reveals a more pessimistic labour market picture. There is also increasing evidence of underemployment with significant numbers of Somerset residents (25,000) thought to be underemployed (those who would like to work longer hours). Underemployment affects household incomes and impedes productivity.
• Productivity is an important measure of the efficiency of an economy and has traditionally been around 20 per lower in Somerset than the UK average. This has not changed significantly in recent years.
• The density of the business population in terms of the number of new businesses created and the existing business stock, in relation to population, is a commonly accepted measure of business dynamism. Somerset has a relatively low rate of new business formation.
Weaknesses in the Workforce Examining the workforce with the same critical focus we find that: • Somerset has a lower proportion of its workforce in managerial and professional occupations but a higher proportion in lower-skilled occupations.
• There is an under-representation of employment in some key growth sectors such as finance and business services.
1 Heart of the South West Business Survey (SERIO, 2012)
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• The County performs poorly on some education indicators and there is a particular issue in terms of the relative poor performance in higher level skills. • The County’s workforce has lower average earnings than the national average.
Economic Structure Overall, a closer look at the economic and business performance of the County shows, perhaps, a lack of dynamism. This is particularly evident in the low rates of new business formation in the County. The root of the answer is complex but lies essentially in Somerset’s geography and its economic structure. So what factors might account for this?
Despite its strong cultural identity, Somerset has been described as a county of many economies. The analysis reveals that, in terms of growth, employment and economic structures the areas of Somerset share different fortunes. The County has not relied on one single employment centre and it is not unusual for administrative areas of this scale to have a number of different economic zones with differing characteristics. These diverse characteristics are, however, extreme and that potentially makes strategic planning a challenge. Bridgwater, Taunton and Yeovil are relatively self-contained with little economic flow between them. Beyond this, the Somerset economy is centred on many smaller market towns that provide local services and retail to smaller rural hinterlands. The deeply rural economy such as West Somerset and smaller parts of the rest of the County have few service centres, making accessibility challenging. This part of the economy is characterised by low wages and insecure employment and, as commonly seen elsewhere, contains small pockets of deprivation masked by more affluent areas.
The local economic structure is biased towards production industries such as manufacturing, food and drink and agriculture – with relative under-representation of key growth sectors such as business services and finance.
A high degree of specialised industry and dependence on one or more sectors can be problematic. To that extent, a mix and spread of industries can ensure resilience in the face of economic pressures. The industrial structure is fairy mixed which means that the County is not highly dependent on any particular industry. However, the flip side is that Somerset lacks a significant growth pole with the critical mass to generate dynamic growth companies. Benefits can be gained from clusters and encouraging knowledge exchange and innovation which, in turn, can lead to the benefits of agglomeration. As such, an ideal situation is often considered to be one where an area has a number of different specialisms. With the exception of the aerospace sector and some engineering specialisms, there is an absence of the major dynamic clusters necessary for innovation and growth.
The stock of industrial floor space has fallen in some parts of the County and this may place pressures on future development. Anecdotal evidence suggests that, throughout much of the County, there is a healthy demand for premises but in some places “businesses are often frustrated by the shortage of suitable available employment units, and freehold land within those employment areas, for development” (District Economic Development Officer). The supply of retail units currently exceeds demand, leading to a growing number of vacancies but the ageing retail stock is often ill-matched to the needs of modern businesses.
Somerset has a productivity gap when measured against the national economy, and this is potentially a structural weakness. A significant portion of the manufacturing activity is low value added production and is therefore vulnerable to low cost competition from overseas. Replacing low value activity with higher value added activity will, therefore, be critical over time to protect Somerset’s economy.
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Yet, whilst the wide gap between the County and national productivity levels is, in part, accounted for by the presence of less productive sectors (such as food and drink), it is also likely some of the explanation lies in working practices and hours worked. This may be a feature of life in Somerset where quality of life and work/life balance are important, and may need to be balanced against the need to become economically more productive.
More critical is whether those businesses which wish to grow and innovate have the right economic conditions and support to do so. This will include access to business space, Broadband, skills and access to markets. Overall, Somerset performs poorly in respect of the five drivers of productivity: Investment, Innovation, Skills, Enterprise and Competition. Our analysis of the drivers of productivity indicate that more may need to be done to encourage and nurture innovation.
Skills A skilled and well-qualified workforce is a fundamental requirement for a competitive and prosperous economy. There is also a strong link between skills and employment. The skills of the workforce affect how well an economy can adapt to changing conditions, as skilled workers are better able to adapt to new technologies and identified new market opportunities.
Skills are an important factor in attracting inward investment as they are an indicator of the quality of the workforce. The lack of higher-level skills in the County potentially represents a significant challenge to economic growth and, in particular, an impediment to the development of the knowledge-intensive economy. The lack of HE provision in Somerset is a factor as many qualified young people must leave the County to find relevant provision. But retaining young people in the area and attracting new graduates to the area requires the presence of the right types of job.
Hinkley Point C certainly has the potential to act as a catalyst, not only with the direct creation of higher-level skilled employment but because its presence may provide opportunities to create clusters of innovation across the County in different sectors.
Educational attainment levels remain slightly below the national average, and although the trend is improving, it is at a lower rate than nationally. In schools, the relatively poor performance of some groups in Somerset compared with the national average is a real matter for concern. Pupils in Somerset who are eligible for free school meals are not only considerably less likely than pupils who are not eligible for free school meals to achieve five or more good GCSE passes (including English and maths), but they are also considerably less likely than pupils eligible for free school meals nationally to achieve this standard. This failure to address gaps in attainment stores up problems for the long term and reinforces the affect of multi-generational multiple deprivation, as well as lack of perceived opportunity.
At the same time, employers are experiencing difficulties with recruiting employees due to lack of skills and there is further evidence from employers that there are skills gaps in the workforce. Significant levels of skills shortages and gaps can act as a barrier to business growth. With one- fifth of employers in Somerset identifying a skills gap among their employees, and with skills gaps having a major impact for one-in-ten employers in the County, measures are also needed to address workforce development issues.
There is a need for an integrated strategy to increase higher-level skills (including through ensuring progression for those with lower level skills that are already in work) as well as creating the conditions for inward investment and business growth in target sectors.
Future threats
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In describing the relative strengths and weaknesses of the Somerset economy, one might conclude that simply maintaining the status quo may seem an attractive option. For whilst there are weaknesses in the economy, overall the quality of life considerations may make a “do nothing” option feasible. But that assumes that the balance of advantages and disadvantages will remain the same without intervention. Here we will examine why that may not be the case.
Global economic climate The first of these are presented by the global economic climate and the potential return to recessionary economic conditions. The economy has little defence against the severe downturn in trade which could impact on the Somerset economy with its relative dependence on the manufacturing and the production sectors.
Demographic change Secondly, demographic change presents a significant challenge to future growth. For whilst the population is projected to increase, the working age population is forecast to decrease at the expense of a higher proportion of those over retirement age. That will not only place greater pressure on existing services but, in the absence of significant net inward migration, may constrain business growth. The younger age group is forecast to decline which means that raising higher skills levels will require an up-skilling of those currently in employment at a time when public funding to support this is declining.
Low carbon economy One of the greatest long-term challenges will be to secure economic recovery, whilst making the transition to a low carbon economy.
The environment of Somerset is, overall, one of its enduring strengths; thus, growth based on sustainable development, which ensures that Somerset remains an attractive place to live and establish a business, will be critical. The effects of climate change on the County are likely to be flooding, hotter and drier weather, increased storms and increased soil erosion. Indeed, the adverse environmental impact of the climate has been keenly felt in terms of flooding in 2012. Connectivity Despite the good work carried out by Connecting Somerset and the County Council, Somerset still suffers from relatively poor broadband speeds and low access to superfast broadband. The issue is more pronounced in rural areas. Only 21% of premises have access to superfast broadband compared with 65% across the UK, and average sync speeds in Somerset are also significantly slower than the UK average. The average data throughput per residential connection in Somerset is also significantly lower. This places Somerset businessess at a significant disadvantage in the new digital economy.
Structural change and competitiveness Whilst overall employment is projected to grow, this will be largely as a result of the service sector, whereas employment in manufacturing and public services is expected to fall, by 1,400 and 2,300 jobs respectively. Forecast declines in some sectors such as manufacturing will impact especially on Yeovil and Bridgewater and the loss of agricultural jobs will impact especially on rural areas. At the same time, continued public sector cuts will have an effect on employment, especially in Taunton but also other parts of Somerset.
Somerset is relatively uncompetitive in relation to a range of composite measures of local competiveness (or attractiveness to business) which are used to rank local authorities across the UK, which place Somerset local authorities between a mid and low rank in terms of competitiveness.
As the knowledge economy grows, there will be increasing competition for skills, and business location decisions will take more account of whether an area has the right environment
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(including housing) to attract skilled workers. Already it is clear that while high-quality housing alone may not be enough to attract significant inward investment, a lack of high-quality affordable housing may preclude it. Provisional data for 2012 suggests that housing in Somerset is more expensive relative to earnings than the England average with the median house price exceeding median earnings by 7.5 times. Housing is less affordable in Somerset than in most the selected comparator local authority areas.
A number of significant changes are planned to post-16 education and skills funding which will be in force by 2014/15. Overall, these changes represent a shift toward greater contributions from both employers and learners. Significant groups of learners will have to co-fund or fully fund the costs of their education and training through loans. Employers and learners will, therefore, be expected to play an increasing part in paying for their learning. At the same time, changes are taking place to the structure of publicly-funded provision as parts of the infrastructure respond to a more marketised approach. Combined with public funding cuts, this may have a significant impact on both the demand for skills, education and training and its provision.
Opportunity and growth
Clearly, major opportunities are presented by the presence of the Hinkley Point site and, in particular, the development of Hinkley Point C. The economic forecasts produced for this State of the Economy Report indicate that both the direct and indirect job creation will be significant. The challenge is ensuring that the benefits are, as far as possible, reaped by Somerset residents. Ensuring that the right skill sets are available in the local workforce will be critical, both for the construction and the operational phase. The other challenge is to use this opportunity to help drive a cluster of high added value manufacturing around the low carbon sector.
There are two key aspects of this enabling sector in Somerset. Firstly, the development (and future operation) of Hinkley Point C and secondly, the growth of the renewables sector. Emerging technologies will feature highly to meet the Government’s decarbonisation goals. Supported by a strong research base, the UK has the potential to become a market leader. Any increase in demand is likely to pull through demand for goods and services from a wide range of other sectors of the economy. The energy market sectors are heavily driven by regulation and the potential for both national government and local actors to have an impact on the sector is therefore very high – for example, through procurement policy, measures to reduce market uncertainty, and demonstration projects. Clearly, this is a sector where a strategic partnership with the public sector is likely to be highly beneficial to growth.
The success of AgustaWestland in securing support for its new commercial rotorcraft projects under Round 3 of the Government’s Regional Growth Fund, will provide a boost to Yeovil supporting the firm’s future and will enabling it to diversify its base away from the military market. This investment is expected to create 450 new jobs with a further 1,000 jobs created in the supply chain. The rotorcraft industry is a vital element of the UK’s hi-tech industrial base and makes a major contribution to the UK economy with 2011 revenues of more than £1.1 billion and an order book of more than £3 billion.
Given the employment opportunities that this investment will create, local partners will be focused on maximising the local benefits of this, ensuring that the local labour market has the skills required to take the opportunities created. The emphasis of local actors will, therefore, be far more on maximising local benefit than on supporting the sector itself.
The UK’s knowledge economy has “increasingly driven economic performance, jobs generation and export growth”. According to the BRES estimates, 12,200 people are employed in high or medium-high technology manufacturing enterprises, a higher share of employment than the
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England average. This needs to be nurtured and grown, with support for innovation and potential new sources of financing, in the light of the current restrictions on bank lending, opportunities for diversification and cluster development in manufacturing, help in developing niche markets, higher technology solutions and agglomeration strengths. The wider region’s Universities could be called upon to support this drive. Similarly, ongoing support will be needed to secure diversification in the agricultural sector, supporting more productive units and better marketing. The excellent environment will continue to provide a strong base for tourism but there continues to be a need for quality of provision and development opportunities for major and minor attractions.
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Appendix C: Shaping Targets for the Somerset Growth Plan
1 Basis&and&Principles&
1.1 Purpose&
It!is!helpful!to!confirm!the!purpose!of!such!targets.!!!Primarily,!the!targets!are!intended!to!clarify!an! ambition!and!a!direction!of!travel!within!the!growth!plan.!In!this!instance!they!need!to!reflect!the! vision!and!objectives!as!agreed.!!
From!an!understanding!of!what!end!results!are!desired,!it!is!then!helpful!to!set!out!indicators!that! can!be!monitored!to!track!progress.!!In!some!cases!a!quantitative!target!related!to!the!indicator!is! appropriate.!!However,!where!such!quantitative!targets!are!established!it!is!vital!to!appreciate!that:!
• The!economic!performance!at!the!Somerset!level!will!be!heavily!influenced!by!the!wider!economic! environment;!and! • Any!detailed!econometric!analysis!undertaken!to!targets!will!contain!substantial!uncertainties.!!
To!control!for!these!factors!it!is!often!helpful!to!use!relative!rather!than!absolute!targets.!!In!all!cases! it!is!appropriate!to!ensure!the!wider!context!is!considered!when!monitoring!and!evaluating!progress.!!
This!first!attempt!at!setting!targets!is!intended!to!provide!broad!‘orders!of!magnitude’!around!the! core!areas!of!focus!within!the!vision!and!objectives,!and!to!identify!areas!of!challenge!in!target! setting.!!!
1.2 Target&Areas&
From!an!analysis!of!the!vision!and!objectives!there!are!six!primary!areas!that!could!be!subject!to! target!setting:!
• GVA!and!Productivity!(vision)! • Sectors!(vision)! • Business!and!Enterprise!(objective!1)! • Employment!and!Skills!(objective!2)! • Housing!and!Infrastructure!(vision,!objectives!3!and!4)! • Spatial!dimension!(vision)!
At!this!stage,!these!targets!are!not!intended!to!be!a!full!monitoring!and!evaluation!framework!for! the!Growth!Plan.!!Rather,!they!are!intended!to!allow!clear!communication!of!the!ambition!to!grow! and!provide!an!indication!of!scale!of!growth!sought.!!Therefore,!it!is!likely!to!be!appropriate!to!arrive! at!a!short!list!of!key!target!indicators!that!aid!communication.!!!Based!on!research!to!date!this!might! reasonably!include!five!headline!targets!for!the!following!indicators:!
• GVA!! ! ! ! 1! ! • Productivity! • Employment/Jobs! • Skills! • Housing!
These!encapsulate!the!issues!at!the!heart!of!the!growth!plan!and!there!are!clear!indicators!that!can! be!easily!measured.!!!!The!first!three!are!outcome!targets.!!Skills!and!Housing!are!more!readily! termed!output!targets,!however,!they!are!significant!issues!for!the!growth!plan.!!Potentially!one! might!add!an!indicator!on!business!growth.!
1.3 Key&Challenges&
The!key!challenges!relate!to!ensuring!targets!are!robust,!meaningful!and!easy!to!communicate.!!For! example:!
• Specific!quantitative!target!vs!general!statement!of!direction!of!travel! • Mutually!consistent!targets!vs!individual!indicator!targets!
For!example,!there!has!been!discussion!around!a!GVA!growth!target.!!The!form!of!words!in!the! vision!includes!the!Somerset!economy!growing!at!a!faster!rate!than!the!national!economy.!!Upon! investigation!this!is!already!happening.!!Therefore,!to!make!the!target!meaningful!one!might!wish!to! specify!the!degree!to!which!Somerset!is!growing!faster!than!the!national!economy.!!However,!this! begins!to!add!in!additional!complexity,!which!whilst!technically!rigorous!will!hamper!communication.!!!
In!order!to!combat!this!issue!it!is!suggested!that!whilst!such!technical!work!may!be!needed!in!the! background,!the!targets!used!to!communicate!the!growth!plan!are!simplified!wherever!possible.!! Taking!the!example!from!above,!an!estimate!of!what!such!GVA!growth!might!look!like!can!be!made,! the!detailed!workings!provided!in!an!annex,!but!the!headline!target!statement!be!kept!simple.! 2 Draft&Targets&
Based!on!research!to!date!we!would!recommend!working!towards!a!suite!of!targets!along!the! following!lines!(all!quantitative!figures!subject!to!review):!
1. Additional!GVA!of!£3bn!per!annum!by!2020,!as!a!result!of!Somerset’s!economy!growing!faster! than!the!UK! 2. Greater!productivity!growth!over!the!period!2014Z20!than!the!UK!economy! 3. An!additional!15,000!–!17,000!jobs!in!the!county! 4. Workforce!skills!in!line!with!Leitch!2020!targets! 5. An!additional!20,000!homes!to!meet!the!needs!of!a!growing!and!changing!population!
The!remainder!of!this!paper!sets!out!in!further!details!the!thinking!behind!these!targets,!including! challenges!faced.!!!
! ! ! 2! ! 3 GVA&and&Productivity&
3.1 Indicators&
Gross!Value!Added!(GVA)!is!a!measure!of!economic!output.!!A!number!of!GVA!related!indicators!are! available!for!Somerset,!produced!by!the!ONS.!!These!include:!
• Headline!GVA! • GVA!per!head!of!population! • GVA!per!job!filled! • GVA!per!hour!worked! • The!growth!rates!of!each!of!these!indicators!
The!available!indicators!include!the!overall!scale!of!economic!output!(GVA),!a!measure!related!to!the! size!of!the!population!(GVA!per!capita)!and!measures!of!labour!productivity!(GVA!per!job!filled!or! hour!worked).!Each!are!potentially!relevant!for!different!reasons.!
In#addition#to#ONS#data#Somerset#County#Council#has#access#to#modelled#economic#data#provided#by# Oxford#Economics#(OE).###Both#ONS#and#OE#sources#have#been#considered.##It#is#proposed#that#ONS# data#be#used#given#that#it#is#both#an#‘official’#source#and#freely#available.###Due#to#differences#in#the# indicators#ONS#and#OE#provide#they#are#not#directly#comparable#and#cannot#both#be#used#without# creating#confusion.#
3.2 Relative&GVA&Growth&
It!has!been!agreed!that!a!relative!measure!of!GVA!is!most!suitable!given!the!influence!of!wider! economic!effects.!!The!proposed!wording!of!the!vision!statement!is!that!the!“economy!will!grow!at!a! faster!rate!than!the!national!economy”.!!This!relates!specifically!to!the!growth!rate!of!headline!GVA,! rather!than!a!per!capita!or!productivity!measure.!
In!validating!this!target!it!is!helpful!to!consider!some!of!the!context:!
• In!2011!GVA!for!Somerset!is!measured!as!just!over!£9!billion!(at!current!basic!prices).!!! • Somerset!produces!0.7%!of!UK!GVA.!! • Over!the!period!2000Z2011!GVA!in!Somerset!rose!at!a!slightly!higher!rate!(59%)!than!the!UK!average! (55%)!and!more!markedly!so!when!considering!UK!excluding!London!(51%).!! • As!a!result!of!this!higher!level!of!growth!Somerset!now!contributes!a!marginally!higher!percentage!of! total!UK!GVA!than!in!2000.!!! • Annual!fluctuations!are!volatile,!year!on!year!growth!rates!varied!between!+7.7%!and!Z1.8%!over!the! period!2000Z2011.!
On!this!basis,!Somerset!is!already!growing!at!a!faster!rate!than!the!UK!economy!and!therefore! without!further!qualification,!the!current!drafting!of!the!target!within!the!vision!statement! somewhat!lacks!ambition.!
Setting!a!Somerset!based!growth!rate!has!weaknesses!given!the!significant!volatility!in!data!and! external!influences.!
! ! ! 3! ! Options!for!clarification!therefore!include:!
• Stating!a!target!growth!differential!e.g.!Somerset!to!grow!at!a!rate!10%!above!UK! • Stating!the!target!share!of!UK!GVA!for!which!Somerset!will!account!e.g.!in!2020!Somerset!will! generate!0.75%!of!UK!GVA!
The!former!approach!has!a!greater!sense!of!ambition,!even!if!the!resultant!outcomes!of!both!are! potentially!similar.!!The!discussion!would!then!relate!to!the!scale!of!growth!differential!targeted.!! Over!the!last!10!years!the!growth!rate!has!been!around!3%!above!the!UK!and!5%!above!the!UK! excluding!London.!!!
We!therefore!propose!one!of!the!following!targets:!
• Over!the!period!2014Z2021!Somerset!will!experience!GVA!growth!at!a!rate!5%!above!UK!GVA!growth! • Over!the!period!2014Z2021!Somerset!will!experience!GVA!growth!at!a!rate!of!10%!above!GVA!growth! in!UK!excluding!London.!
The#UK#excluding#London#measure#was#discussed#at#the#last#coordination#group#session#as#a# potentially#helpful#indicator.#
For!the!purposes!of!communicating!a!target!it!is!suggested!that!the!options!above!are!far!too! complex.!!It!is!therefore!proposed!that!on!the!basis!of!the!chosen!target!an!estimate!of!what!this! might!look!like!in!nominal!GVA!terms!is!calculated.!!This!will!provide!a!clear!headline,!with!the! detailed!ambition!set!out!within!an!appendix.!
3.3 Productivity&Growth&
Whilst!GVA!growth!is!an!important!indicator!of!the!change!to!the!overall!size!of!the!economy,!the! growth!plan!is!also!interested!in!the!nature!of!this!growth.!!In!simple!terms!GVA!is!a!product!of! employment!and!labour!productivity.!!The!balance!of!these!two!factors!within!the!targets!is! therefore!relevant!to!the!overall!strategy!being!pursued.!!!
In!terms!of!the!Somerset!Growth!Plan!this!reflects!the!intention!to!see!growth!in!specific!high!value! sectors!as!well!as!through!increasing!the!value!generated!in!a!range!of!other!locally!important! sectors.!!Therefore,!productivity!is!an!important!indicator!for!the!growth!plan.!!!
Currently!available!data!provides!a!useful!context!for!target!setting:!
• GVA!per!job!filled!in!Somerset!is!currently!(2011!data)!84.5%!of!the!UK!average.!!Growth!rates!over! the!period!2003Z2011!have!been!marginally!higher!in!Somerset!than!the!UK.!!! • GVA!per!hour!worked!in!Somerset!are!85.6%!of!the!UK!average.!!Growth!rates!over!the!period!2005Z 2011!are!lower!in!Somerset!than!the!UK!average.!!!
On!this!basis,!the!proposed!target!is!that:!
• GVA!per!job!filled!and!GVA!per!hour!worked!to!be!rising!at!a!faster!rate!than!the!UK!average!in!order! to!achieve!the!aspirations!of!the!growth!plan.!!!
! ! ! 4! ! Given!that!Somerset!is!largely!a!full!employment!economy!(with!caveats)!we!are!realistically! expecting!productivity!growth!to!be!a!greater!factor!than!employment!growth!in!fuelling!increases!in! GVA.!!Therefore!we!might!reasonably!expect!productivity!growth!to!need!to!outstrip!UK!levels!by!a! greater!rate!than!overall!GVA!growth!–!although!our!ability!to!accurately!quantify!this!may!be! limited.!!However,!it!could!be!that!target!statement!is!that!the!rate!of!growth!differential!for! productivity!has!to!be!greater!than!that!for!GVA!more!generally!–!so!the!balance!is!in!the!favour!of! productivity.!!!
This!is!a!further!example!of!the!complexity!involved!that!will!not!be!helpful!to!communication!but!is! a!necessary!technical!element!to!provide!robust!and!meaningful!targets.! 4 Sectors&
Whilst!there!is!a!reference!to!key!sectors!within!the!growth!plan!vision!there!are!no!particularly! helpful!indicators!that!are!likely!to!be!helpful!at!the!headline!level.!!Whilst!tracking!sector! performance!might!reasonably!be!an!element!of!wider!monitoring!and!evaluation!work,!it!will!be! too!complex!(in!terms!of!technical!work!and!ability!to!communicate)!to!provide!targets!across!all!the! key!sectors.!
On!this!basis!no!sector!based!targets!are!suggested!at!this!stage.! 5 Business&and&Enterprise&
It!is!not!immediately!clear!whether!there!are!any!relevant!targets!to!from!this!objective!area!that! should!feature!at!the!headline!level.!
Firstly,!it!is!necessary!to!work!out!what!we!want!to!measure!here.!!Is!it!about!dynamism!in!business! stock,!level!of!new!starts,!growth!in!businesses,!survival!of!businesses?!!There!are!a!host!of! indicators!but!a!need!to!keep!it!simple.!
One!potential!indicator!which!would!capture!the!essence!of!discussions!around!fostering!growth! businesses!might!be!‘increasing!average!business!size’.!!In!order!to!gather!data!on!this!HJA!will!need! to!apply!for!a!license!to!get!access!to!BRES!data.!!!!!
Additional!Business!Demography!statistics!are!maintained!and!have!business!start,!fail!and!stock! data!as!well!as!survival!rates.!!!Key!issues:!
• Start!up!as!a!%!of!stock!is!lower!in!Somerset!than!UK.!!However,!they!do!not!provide!a!comparison! with!population.!Potentially!the!stock!based!figure!could!be!skewed!by!a!historic!high!stock!of! businesses!which!is!possible!given!high!levels!of!self!employment!etc.! • Level!of!start!ups!has!declined!with!recession!–!more!so!than!UK! • Survival!rates!are!generally!better!than!UK,!but!are!on!a!downward!trend!
If!it!is!about!growth!we!could!just!look!to!see!growth!in!the!overall!business!stock!and!growth!in!the! average!size!of!businesses.!!!
! ! ! 5! ! 6 Employment&and&Skills&
6.1 Employment&
An!initial!assessment!of!the!five!core!strategies!and!local!plans!(at!various!stages)!was! undertaken.!!This!indicates!a!crude!average!annual!employment!growth!figure!of!around!2,000!jobs! per!annum!across!Somerset.!!!On!this!basis,!across!the!2014Z20!growth!plan!period,!an!employment! target!in!the!region!of!12,000!additional!jobs!emerges.!
The!average!annual!figure!is!somewhat!troublesome!in!this!instance,!because!there!have!been!job! losses!in!the!period!2006Z2014!(or!at!least!some!years!of!this!period)!which!means!job!growth!over! entire!plan!periods!is!not!going!to!be!evenly!distributed.!!Therefore,!one!might!reasonably!expect! this!to!be!a!minimum!figure!for!the!period,!particularly!as!it!is!reasonable!to!expect!a!large!part!of! the!growth!plan!period!to!be!characterised!as!economy!recovery!(even!if!gradual).!!!!!
Oxford!Economics!data!suggests!such!a!recovery!(i.e.!stronger!growth!over!the!period!2014Z20!than! the!preceding!six!years)!and!for!the!same!period!suggests!around!16,800!additional!jobs!in! Somerset.!!!!
The!long!term!average!annual!job!growth!for!Somerset!in!the!OE!model!(2006Z26)!is!only!about!two! thirds!of!the!targets!in!the!planning!documents.!!1,300!vs!1,900!jobs!per!annum.!!!
Together!this!suggests!that!(1)!OE!are!more!conservative!over!the!long!term!and!(2)!despite!this,! they!are!suggesting!a!higher!level!of!employment!growth!over!the!period!of!the!growth!plan.!!!
On!this!basis!an!employment!growth!target!within!the!growth!plan!in!the!region!of!15,000!–!17,000! over!the!6!years!may!be!appropriate.!!
6.1.1 Workforce&Capacity&–&Consistency&Check& In!setting!an!employment!target!it!is!helpful!to!consider!issues!of!workforce!capacity.!!This!covers! issues!of!growth!and!changing!structure!of!population!and!unemployment/participation.!!!
The!latest1!(2011!based)!population!projections!for!Somerset!indicate!the!following:!
• 22,900!person!growth!in!total!population! • Z2,300!change!in!population!aged!16Z64! • Possibly!+16,000!in!working!age!population!if!you!take!account!of!changes!to!state!retirement!age!–! so!all!the!increase!and!more!is!among!people!in!their!60s!–!some!of!whom!may!choose!to!get!out!of! the!labour!market!if!they!can!afford!it!and!are!likely!to!be!subject!to!lower!activity!rates!as!a!result.!!
It!should!also!be!noted!that!
• JSA!Claimant!unemployment!is!currently!around!5,600! • ILO!unemployment!is!currently!around!10,700!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1!This!does!not!touch!on!the!fact!that!further!population!projections!are!anticipated!and!the!various!issues! around!migration!assumptions!that!get!debated!at!great!length!when!considering!housing!provision!within! local!plans.!!! ! ! ! 6! ! These!data!show!us!that!growth!in!the!workforce!is!primarily!driven!by!the!changes!in!state! retirement!age!–!and!not!through!any!growth!in!core!working!age!groups.!!Whilst!HJA!has!not! undertaken!any!detailed!economic!activity!modelling!here,!typically!participation!rates!are!slightly! lower!among!older!workers.!!!Using!a!figure!of!66%!economic!activity!in!this!group!leads!to!+11,000! as!an!upside!growth!in!workforce!over!the!growth!plan!period.!!Future#population#projections#may# revise#the#figures#down#and#no#allowance#has#been#made#for#net#commuting#or#unemployment.!
Depending!on!the!measure!of!unemployment!used!there!are!5,000!Z10,000!currently! unemployed.!!However,!it!is!accepted!that!there!will!always!be!a!base!level!of!unemployment!which! is!likely!to!be!in!the!region!of!5,000!(2%!of!workforce).!!Therefore!there!are!a!maximum!5,000! unemployed!as!a!labour!pool!and!potentially!(quite!probably)!less.!!There!are!some!economically! inactive!that!want!a!job!(potentially!17,000!according!to!the!data)!but!we!don’t!know!how!close!to! the!labour!market!they!are.!
LDFs!indicate!around!12,000!jobs!based!on!flat!annual!average!(realistically!a!downside!estimate! given!uneven!distribution!of!job!growth).!!OE!indicated!around!17,000.!!!!This!provides!a!range!of! 12,000Z17,000!jobs.!!It!is!suggested!the!range!is!trimmed!towards!the!higher!end,!15,000!–!17,000.!!
Looking!at!the!OE!data!in!a!bit!more!detail,!they!suggest!a!total!population!increase!of!around! 23,000!of!which!the!working!age!population!is!expected!to!rise!by!11,000!(which!seems!to!be!slightly! at!odds!with!the!ONS!data.!Unemployment!is!currently!modelled!at!a!level!between!the!ILO!and! Claimant!rates!(around!7,500!persons)!and!is!expected!to!reduce!to!provide!a!further!1,600!workers! (the!rate!falling!to!close!to!1.5%)!over!the!growth!plan!period.!!A!good!proportion!of!the!additional! jobs!are!part!time!and!we!do!not!know!what!OE!assume!about!double!jobbing.!!!!!The!levels!of!net! migration!in!OE!and!ONS!seem!similar.!!Therefore,!OE!clearly!believe!17,000!jobs!can!be!supported! on!a!lower!growth!in!workforce.!!!
On!this!basis,!the!workforce!capacity!analysis!would!suggest!a!range!of!15,000!–!17,000!jobs!may!be! reasonable.!!However,!it!may!be!creating!some!internal!consistency!issues!to!raise!employment! targets!beyond!17,000!jobs!–!particularly!given!that!housing!provision!in!current!planning! documents.!
6.2 Skills&
The!2006!Leitch!Review!of!Skills!–!Prosperity!for!all!in!the!global!economy,!World!Class!Skills!Z provides!a!helpful!starting!point!for!shaping!skills!targets.!!!
The!Leitch!Review!sets!out!targets!for!basic,!intermediate!and!higher!level!skills!at!2020!in!the!UK.!! These!remain!relevant!for!the!Somerset!Growth!Plan.!
The!table!below!shows!the!current!Somerset!and!UK!qualifications!profile!and!the!Leitch!targets!for! 2020.!!!The!current!profile!shows!that!Somerset!has!a!high!proportion!of!residents!aged!16Z64!with! at!least!Level!2!skills!(and!commensurately!a!low!proportion!of!workforce!with!no!or!very!low! qualifications).!!Somerset!has!a!higher!proportion!with!L3!qualifications!than!UK,!but!a!markedly! lower!proportion!of!its!workforce!with!level!4!qualifications!or!above.!!!
! ! ! 7! ! The!Leitch!targets!indicate!a!need!for!more!than!90%!of!adults!to!have!at!least!Level!2!qualifications! and!more!than!40%!of!adults!to!hold!level!4!qualifications!by!2020.!!It!also!indicates!a!need!for!the! balance!of!intermediate!level!skills!(L2!and!L3)!to!be!in!favour!of!level!3,!which!suggests!at!least!65%! of!adults!should!have!at!least!level!3!qualifications.!!!
In!comparison!to!the!current!profile!of!Somerset!this!particularly!requires!an!uplift!at!Level!4,!as!well! as!increases!at!levels!2!and!3.!!!
The!Leitch!targets!may!therefore!be!a!helpful!target!for!Somerset,!with!the!huge!challenge!around! L4.!!!
& Somerset&2012& UK&2012& Leitch&Target&2020& Level!2!or!above! 77.5%! 71.8%! 90%! Level!3!or!above! 54.7%! 55.1%! 65+%! Level!4!or!above! 30.0%! 34.4%! 40%! ! ! ! ! L2! 22.8! 16.7! 25Z! L3! 24.7! 20.7! 25+! L4+! 30.0! 34.4! 40! N.b.!this!is!a!bit!clumsy!because!of!the!way!the!data!is!presented.!!Neither!the!L2+,!L3+!approach!nor!L2,!L3! approach!provide!a!complete!picture.!For!the!non!expert!this!data!could!all!be!a!bit!confusing.!!Therefore!it!is! likely!to!be!refined!in!future!drafts.!
It!should!also!be!noted!that!the!final!report!of!the!review!identified!that!it!is!very!hard!to!predict! with!any!accuracy!future!anticipated!occupational!and!skills!needs,!there!is!a!very!clear!need!for! significantly!higher!levels!of!workforce!skills!to!equip!the!UK!economy!for!successful!competition!in! the!global!economy.!!At!the!more!detailed!level!the!report!encourages!a!much!stronger!demand!led! mechanism!to!ensure!the!correct!skills!are!provided.!
6.3 Distribution&of&Employment&Growth&Within&Somerset&
In! response! to! interest! from! Mendip! DC! we! have! modelled! the! distribution! of! the! proposed! employment! growth! target! across! Somerset’s! districts.! ! The! employment! target! set! out! in! the! Growth!Plan!is!15,000!Z!17,000!additional!jobs!by!2020.!!For!the!purposes!of!the!modelling,!we!have! taken!a!midZpoint!of!16,000!jobs.!!The!method!by!which!this!figure!has!been!calculated!is!set!out!in! Appendix!1!to!this!note.!
Minimum!ranges!for!employment!growth!have!been!set!out!for!each!district.!!To!achieve!16,000! additional!jobs,!each!district!will!need!to!achieve!employment!growth!at!the!top!of!this!minimum! range.!!However,!some!may!not!be!able!to!do!this,!so!some!districts!will!need!to!accommodate!more! new!employment!than!this!minimum!range.!
Figure&1:&Distribution&of&Employment&by&District&
District& Baseline& Proportion&of& Minimum& Growth&as& Employment& Somerset& Employment& Percentage&of& (2011&Census,& Employment& Growth&to&2020& Baseline& ONS)& Mendip! 42,900! 20%! 2,600!Z!3,400! 6%!Z!8%!
! ! ! 8! ! Sedgemoor! 41,700! 20%! 2,700!Z!3,600! 7%!Z!9%! South!Somerset! 64,200! 30%! 3,100!Z!4,000! 5%!Z!6%! Taunton!Deane! 52,800! 25%! 3,200!Z!4,200! 6%!Z!8%! West!Somerset! 12,000! 6%! 600!Z!800! 5%!Z!7%! All!Somerset! 213,500! ! 12,200!Z!16,000! 6%!Z!7%! ! 7 Housing&and&Infrastructure&
Key!issue!is!how!broad!we!want!to!take!this!topic!area.!!The!majority!of!targets!that!could!emerge! from!this!area!are!output!rather!than!outcome!measures.!
7.1.1 Housing& The!five!core!strategies!(at!various!stages!of!development/adoption)!suggest!annual!average! housebuilding!of!2,700!units!p.a.!over!the!duration!of!plans.!!This!equates!to!16,200!over!the!growth! plan!period!(2014Z20).!!!
This!annual!average!approach!is!a!crude!estimate!and!does!not!take!account!of!the!lower!rates!of! building!in!the!last!few!years.!!It!should!therefore!be!viewed!as!a!minimum!figure.!!Some!plans!have! a!trajectory!with!slow!rates!of!development!in!the!first!5!years,!an!intermediate!rate!in!the!next!5! and!then!higher!growth!in!the!later!parts!of!the!period.!!The!scale!of!potential!pick!up!in!the! housebuilding!industry!is!uncertain,!as!are!the!levels!of!planning!certainty!associated!with!some!of! the!plans.!!!
In!order!to!set!a!target!a!range!of!16,000!–!20,000!would!provide!a!helpful!initial!starting!point.!!!
7.1.2 Employment&Sites& There!are!various!figures!across!the!five!core!strategies!which!are!not!directly!comparable.!!A!variety! of!strategic!sites!are!proposed!and!link!to!the!project!packages!and!infrastructure!improvements! within!the!Growth!Plan.!!There!is,!therefore,!a!need!for!a!piece!of!strategic!technical!work!to!assess! the!broad!supply!and!demand!for!employment!sites!across!Somerset.!!!Such!a!piece!of!technical! work!should!consider!in!particular!the!demand!and!supply!of!key!sites!to!identify!highest!priority!and! scale!of!need!across!the!life!of!the!growth!plan.!!
7.1.3 Transport&Infrastructure& Suggested!that!this!does!not!feature!in!the!target!suite.!
7.1.4 Communications&Infrastructure& Suggested!that!this!does!not!feature!in!the!target!suite.!
7.1.5 Flood&Mitigation&and&Prevention&Infrastructure& Suggested!that!this!does!not!feature!in!the!target!suite.!
!
!
! ! ! 9! ! Appendix D: Funders of Growth
1 Funding(for(areas(of(investment(
Funds!will!be!needed!from!both!the!public!and!the!private!sectors!to!deliver!the!investments!that! underpin!the!Growth!Plan.!!Alongside!investment!by!the!private!sector,!sources!of!public!funding!for! growth!actions!include:!
• The!Single!Local!Growth!Fund!(SLGF)!that!will!be!administered!by!the!Heart!of!the!South!West!LEP! • EU!Structural!Funds!for!the!period!2014!to!2020!that!will!be!guided!by!the!Structural!and!Investment! Funds!Strategy!being!prepared!by!the!LEP! • The!Growing!Places!Fund!administered!by!the!LEP! • Homes!and!Communities!Agency!funds! • Regional!Growth!Fund!and!Advanced!Manufacturing!Supply!Chain!Initiative! • Rural!Development!Programme!and!other!DEFRA!funds! • Local!authorities’!discretionary!funds! • Other!central!government!funds!e.g.!transport!funds!
1.1 Objectives(of(external(funders(
The!common!themes!that!emerge!from!a!review!of!the!objectives!of!external!funders!of!growth!are:!
• Increased!productivity!(through!investment!in!R&D,!innovation!etc)! • Delivering!infrastructure!to!support!growth,!including!road,!rail!and!internet! • Supporting!new!business!starts,!and!business!growth! • Attracting!inward!investment! • Creating!more!employment!opportunities!especially!in!the!private!sector! • Improving!access!to!employment!opportunities!(through!skills,!training!etc)! • Tackling!difficulties!with!housing!affordability!
Whilst!not!an!exhaustive!summary!of!external!funders’!objectives,!the!following!are!likely!to!be!very! significant!external!funders!of!investments!for!growth!in!Somerset:!
LEP$objectives$
• Drive!productivity!and!enterprise! • Attract!new!businesses!and!investment! • Maximise!employment!opportunities! • Promote!infrastructure!to!connect!with!markets! • Local!growth!fund!–!housing,!transport!and!skills!are!important!areas!
European$funding$objectives$
• Innovation,!research!and!technical!development! • Support!for!small!businesses! • Low!carbon!economy! ! ! ! 1! ! • Skills! • Employment! • Social!inclusion!
UK$Government$funding$objectives$
• Regional!Growth!Fund!–!Direct!job!creation!through!private!sector!enterprise!and!growth! • Advanced! Manufacturing! Supply! Chain! Initiative! (a! subset! of! the! RGF)! –! R&D,! skills! and! capital! investment! 2 LEP(context(
The!roles!and!responsibilities!of!LEPs!–!and!their!relationships!with!local!authorities!W!are!changing! post! the! Heseltine! growth! review.! ! In! their! formative! stage! post! 2010,! LEPs! have! been! ‘strategic! advisors’,!highlighting!to!Government!barriers!to!growth!and!advocating!priorities!for!investment! from!central!funds!e.g.!RGF!
The!Government’s!response!to!the!Heseltine!agenda!is!transforming!the!role!of!LEPs.!!!!LEPs!must! agree! with! Government! a! strategic! economic! plan! for! their! area! and! will! have! authority! over! significant!amounts!of!Central!Government!and!European!funding.!!This!transformed!role!for!LEPs!is! being!shaped!at!pace.!!LEPs!will!need!to!agree!a!growth!deal!with!Government!during!2014!(EU!local! growth! fund,! single! local! growth! fund,! ‘optWins’! to! national! programmes! and! locally! justified! freedoms!and!flexibilities).!!Much!of!this!process!will!be!competitive!across!the!39!LEPs.!!!
Government! expects! local! authorities! to! support! LEPs! in! the! growth! deal! process! and! in! delivery! thereafter.!!Expectations!of!close!collaboration!of!local!authorities!with!their!LEPs!includes!aspects! such! as! the! release! of! assets! and! resources,! pooling! of! staff! and! budgets,! closer! collaborative! governance!of!the!growth!agenda!
2.1 The(LEP’s(Growth(Deal(
An!important!first!use!of!Somerset’s!Growth!Plan!will!be!to!inform!and!influence!the!drafting!of!the! Heart!of!the!South!West!LEP’s!Growth!Plan!for!the!wider!area.!!Local!Enterprise!Partnerships!have! been!tasked!with!supporting!growth!through!the!creation!of!a!Strategic!Economic!Plan!which!will! help!to!determine!the!investment!of!Single!Local!Growth!Funds!and!other!sources!of!funds,!including! both!public!and!private!sector!funds.!!This!is!the!basis!of!local!Growth!Deals.!
The!Growth!Deal!should!bring!together!commitments!from!the!LEP,!local!authorities!and!the!private! sector!to!combine!their!resources!to!deliver!their!Strategic!Economic!Plan,!including:!
• Better!use!of!local!authority!assets! • Commitments!to!proWgrowth!reforms!e.g.!coordinated!development!of!local!plans! • Commitment!to!collective!decision!making!
The!Strategic!Economic!Plan!should!draw!in!investment!from!a!range!of!sources!including:!
! ! ! 2! ! • LEP!Local!Growth!Fund!(LGF)!–!made!up!of!local!authority!transport!funds,!further!education!capital! funds,!ESF!match!funds!and!New!Homes!Bonus1! • Private!sector!investment! • Local!authority!funding! • Revolving!fund!resources!e.g.!Growing!Places!Fund,!Enterprise!Zone!retained!business!rates!and!City! Deal!funds! • Department!of!Transport’s!Local!Sustainable!Transport!Fund! • Public!Works!Loan!Board!funds! • Match!funding!from!local!partners!such!as!Housing!Associations,!universities.!Colleges!and!others! • Surplus!and!redundant!public!sector!assets!
CLG!guidance!states!clearly!that!the!Strategic!Economic!Plan!is!not!just!about!the!LGF.!!!
The!Strategic!Economic!Plan!needs!to:!
• Demonstrate! a! wider! commitment! to! growth,! in! particular! making! the! area! attractive! to! private! investment! • Align!or!pool!local!authority!capital!and!revenue!spend!on!growth! • Demonstrate!effective!collaboration!on!economic!development!activities!! • Maximise!synergies!with!wider!local!growth!programmes.!
2.2 Asks(and(offers(
The!Growth!Deal!guidance!to!LEPs!states!that:!“the$Government$will$respond$to$the$offers$made$by$ Local$Enterprise$Partnerships$in$pursuit$of$the$shared$objective$of$growth”!!
Therefore!this!Growth!Plan!needs!to!be!built!on!offers!as!well!as!asks!
Offers!include:!
• Amount!of!additional!GVA! • Number!of!jobs!! • Quality!of!jobs! • Number!of!local!people!employed!in!those!jobs! • Delivering!more!for!less!
Asks!include:!
• Funding!–!from!a!number!of!sources! • Flexibilities!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1!Some!72%!of!the!funds!making!up!the!LGF!pot!are!capital!funds.!The!components!of!the!LGF!are!housing,! transport!and!skills!funds,!and!these!themes!should!be!reflected!strongly!but!not!exclusively!in!the!plans!for! LGF! ! ! ! 3! ! 3 EU(Structural(Funds(
The! EU! SIF! forms! part! of! the! funding! package! for! the! growth! plan! (albeit! that! CLG! requires! a! separate!document!for!this).!!Therefore!the!LEP!Growth!Plan!needs!to!incorporate!the!EU!SIF,!and! this!needs!to!be!cascaded!down!to!a!Somerset!level.!
Somerset(Growth(Plan(fit(with(LEP(priorities( LEP(Priorities((EU(SIF)( Somerset(Growth(Plan(Objectives(
Creating$the$conditions$for$growth$ • Create!a!dynamic!and!growth!focused!business! population! Infrastructure,!connectivity,!workforce!skills!and! • Increase!levels!of!education!and!skills!within!the! business!support!! workforce! • Tackle! significant! infrastructure! deficits! and! enhance!strategic!connectivity! • Enable! the! delivery! of! major! housing! and! employment! developments! that! will! enable! growth! Maximising$employment$opportunities$ • Create!a!dynamic!and!growth!focused!business! population! Inward! investment,! business! competitiveness,! • Increase!levels!of!education!and!skills!within!the! higher!value!jobs!and!career!ladder!skills!! workforce! Building$on$our$distinctiveness$ • Create!a!dynamic!and!growth!focused!business! population Smart! specialisation,! major! projects! and! our! • Tackle! significant! infrastructure! deficits! and! natural!environment!! enhance!strategic!connectivity! !
LEP(priorities(by(theme( (( Creating( the( Maximising( Building(on(our(Distinctiveness( Conditions( for( Employment( Growth( Opportunities(
Place! • Unblocking! • Improving! • Development! of! specialist! sites,! development! connectivity!! equipment!and!infrastructure!! opportunities!! • Workspace! and! • Specialist!Growth!Zones!! • Unlocking! employment! • Low! carbon! technologies! and! funding! (public! sites!! !infrastructure! and!private)!! • Maximising! • Developing! a! potential! of! pipeline! of! oven! growth!centres!! ready! strategic! • Education! and! infrastructure! skills! and! transport! infrastructure! ! ! ! 4! ! (( Creating( the( Maximising( Building(on(our(Distinctiveness( Conditions( for( Employment( Growth( Opportunities(
projects! and! improving! resilience! • Protect! and! enhance! environmental! assets! Business! • Making! support! • Ensuring! • Transformational! innovation! –! to! start,! grow! national! creating! an! ecoWsystem! of! support! and! develop! delivery! meets! around!key!specialist!opportunities.! businesses! local!needs!! relevant! and! • Supporting! easier!to!find!! businesses! to! • Make! it! easier! reach! new! for! businesses! to! markets!and!link! access! public! to!supply!chains!! sector! • Supporting! procurement! businesses! to! opportunities!! innovate! • Provide! a! single! through! Access! to! working!smarter!! Finance!Platform! • Attracting! businesses! to! locate! and! invest! People! • Ensuring! • Raising! • Leadership/Management/Enterprise! business! skills! aspirations! and! skills!! needs! are! supporting! • Developing! our! R&D! talent,! aligned! understood! and! those! most! to!smart!specialisation!! planned!for!! excluded! from! • Attracting!higher!level!skills! • Skills! the! labour! infrastructure! is! market!! aligned! to! • Supporting! the! demand!! Long! term! • Employer! unemployed,! engagement!! inactive! and! • Collaboration! youth! and! innovation! unemployed! on! social! into!work!! inclusion! • Skills! for!
! ! ! 5! ! (( Creating( the( Maximising( Building(on(our(Distinctiveness( Conditions( for( Employment( Growth( Opportunities(
progression! in! work!! • Improving! technical! and! higher! level! skills! ! (
!
! ! ! 6! ! Appendix E: Projects and Prioritisation
1 What&is&a&project?&
A!project!that!will!be!supported!under!the!Growth!Plan!is:!
• Temporary!activity! • To!accomplish!a!specific!task!–!in!this!case!one!which!contributes!to!the!Growth!Plan’s!objectives! • To!deliver!a!defined!output!–!which!should!help!to!achieve!the!proposed!targets! • Within!an!agreed!budget! 2 Progressing&the&delivery&of&projects&
In!the!development!of!this!draft!of!the!Growth!Plan!a!large!number! of! project! ideas! have! been! suggested.!!These!are!set!out!in!the!Annex!to!this!appendix.!!Few!of!these!are!in!a!current!state!to!be! delivered.!!Some!have!been!developed!to!some!extent,!and!further!development!is!needed.!!Some! are!currently!concepts,!with!little!project!development!having!taken!place.!!However,!just!because!a! project!is!deliverable!should!not!give!it!priority!in!the!Growth!Plan.!!The!highest!priority!should!be! given!to!projects!that!help!to!deliver!the!Growth!Plan’s!objectives.!!The!way!in!which!different!types! of!projects!should!be!dealt!with!is!summarised!in!the!figure!below.!
&Figure&1:&Dealing&with&Types&of&Projects&
Type&of&Project& Fits& with& Growth& Plan& Does¬&fit&with&Growth&Plan& Objectives& Objectives& Ready!to!deliver! Take! through! prioritisation! Reconsider! –! can! it! be! process! redesigned! to! fit! with! Growth! Plan!objectives?!!Do!not!invest! Project!under!development! Invest!in!full!development! Reconsider! –! can! it! be! redesigned! to! fit! with! Growth! Plan!objectives?!!Do!not!invest! Concept!M!undeveloped! Invest!in!highMlevel!project!plan! Do!not!invest! ! The!process!for!prioritising!those!projects!that!are!ready!to!deliver!and!which!fit!with!the!Growth! Plan!objectives!is!discussed!below.! 3 Geography&and&ownership&of&projects&
The! geographical! coverage! of! a! project! will! help! to! determine! the! stakeholders! who! should! be! involved!in!the!delivery!of!the!project!
• Packages!of!investment!around!Functional!Economic!Market!Areas!(FEMAs)!and!opportunities!in! particular!places! ! ! ! 1! ! • Projects!delivered!across!all!of!Somerset! • Projects!delivered!on!a!wider!basis!(including!LEPMwide)!
The!process!for!identifying!a!lead!stakeholder!is!set!out!in!the!figure!below.!
Figure&2:&Geography&of&projects&and&stakeholder&lead&
Geography&of&project& Criteria&for&stakeholders&and&lead& PlaceMspecific!or!predominantly!in!one!FEMA! Local!stakeholders!with!expertise!in!project! subject!matter! All!Somerset! Local!stakeholders.!!Potential!to!link!with!other! similar!projects!in!LEP!area!if!appropriate,!but! there!must!be!a!lead!stakeholder!for!Somerset!!! Larger!than!Somerset! Somerset!stakeholer!must!be!involved!to!ensure! Somerset!benefit,!but!lead!may!be!taken!at!a!LEP! level! ! 4 Packages&of&projects&
Given! the! breadth! of! some! of! the! opportunities! that! Somerset! faces,! there! is! scope! for! linking! projects! together! to! better! exploit! these! opportunities! through! tackling! barriers.! ! In! some! cases! projects!can!be!linked!to!address!the!multiple!different!barriers!than!are!restricting!an!opportunity;! and!in!other!cases!a!number!of!smaller!project!that!are!similar!in!nature!can!be!linked!together!to! achieve!a!critical!mass!of!activity.!
4.1 Linking&projects&to&address&multiple&barriers&
As! an! example,! maximising! the! benefits! of! the! opportunity! around! Hinkley! Point! C! and! nuclear! supply! chain! development! faces! barriers! of! labour! force! skills,! infrastructure! and! business! capabilities.!!Therefore!a!number!of!coordinated,!and!possibly!interMlinked,!projects!are!needed!to! derive!maximum!benefit!from!this!opportunity.!!Packages!of!projects!can!be!compiled!around!the! most!significant!opportunities.!!These!are!summarised!in!the!figure!below.!
Figure&3:&Opportunities&as&focus&for&packages&of&projects!
Package&! Primary&Geography&! Key&Centres&for&Growth! Hinkley!Point!C!and!nuclear! M5,!Western!Somerset! Bridgwater,!Taunton! supply!chain! Aerospace,!advanced! M5,!A303,!Western!Somerset! Yeovil,!Bridgwater,!Taunton,! manufacturing!and!low!carbon! Frome! energy! Increased!value!from!health,! All!Somerset!! Taunton,!Yeovil,!Bridgwater! construction!and!business!&! professional!services! Increased!value!in!food!&!drink! All!Somerset! Market!towns,!coastal!towns,! processing,!land,!minerals!&! Bridgwater,!Frome! water!management,!tourism! and!logistics! Infrastructure!for!improving! All!Somerset! A303/A358!corridor,!M5! ! ! ! 2! ! connectivity,!flood!alleviation! junction!improvements,!rail! and!growth! connectivity! Business!competiveness!! All!Somerset! ! Inward!investment! Major!settlements! Taunton,!Bridgwater,!Yeovil! and!Frome! Skills! All!Somerset! ! Housing! Major!settlements! Taunton,!Yeovil,!Bridgwater! and!Frome! !
4.2 Linking&projects&to&achieve&critical&mass&
In!some!cases!there!are!small!projects!that!can!support!a!small!amount!of!growth!(e.g.!infrastructure! to!open!up!a!small!residential!or!employmnet!land!site),!but!the!scale!of!the!project!means!that!it! does!not!compare!with!larger!projects!in!terms!of!the!scale!of!benefits!that!it!can!generate.!!In!cases! like!this!it!may!be!possible!to!link!together!a!number!of!smaller!projects!(e.g.!a!number!of!smaller! employment!sites!that!all!need!enabling!infrastructure)!to!achieve!a!critical!mass!and!economies!of! scale!across!all!of!the!project.!
This! approach! will! help! to! enable! smaller! scale! projects,! often! in! rural! areas,! to! be! considered! alongside!the!larger!projects!thar!are!more!typically!found!in!urban!or!more!accessible!areas.! 5 Prioritising&projects&
There!are!limited!resources!to!support!growth!projects!in!Somerset,!so!there!is!a!need!to!determine! where! best! to! allocate! those! resources! to! make! the! most% significant! contribution! to! growth! –! in! particular!through!overcoming!the!barriers!to!growth.!
To!make!this!Growth!Plan!effective,!it!will!be!important!to!agree!a!small!number!of!high!priority! projects!that!address!genuine!barriers!to!growth,!are!deliverable,!and!have!the!greatest!impact!on! Somerset’s!economy.!
A!longMlist!of!projects!has!been!identified!through!the!process!of!development!of!the!Growth!Plan.!! This!list!remains!live,!and!will!continue!to!be!updated!on!an!ongoing!basis.!!It!is!helpful!to!prioritise! these! projects! in! order! to! identify! which! should! feature! in! the! Growth! Plan.! ! The! prioritisation! process!will!be!based!on!evidence!that!demonstrates!the!contribution!that!a!project!makes!towards! achieving!growth!in!Somerset.!!As!far!as!possible!the!prioritisation!criteria!should!be!quantifiable,! albeit!that!qualitative!judgement!may!be!required.!
Projects!will!be!assessed!against!criteria!under!the!following!three!headings:!
• Fit!with!objectives! • Deliverability! • Impact!
5.1 Fit&with&objectives&
• Fit!with!Growth!Plan!objectives!–!see!next!section!(G2)!!
! ! ! 3! ! • Robust!case!for!barriers/market!failure!that!can!be!overcome!! • Ability! of! project! to! attract! investment! from! other! sources.! ! Potential! funding! sources! have! been! suggested,!but!this!listing!is!not!definitive!
5.2 Deliverability&
The!deliverability!of!projects!has!been!assessed,!based!on!the!research!undertaken!in!preparing!the! Growth! Plan! i.e.! primarily! through! stakeholder! consultations! and! general! awareness! of! project! proposals!rather!than!a!detailed!review!of!project!documentation!and!data.!!The!classification!of!the! deliverability!of!projects!is!as!follows:!
Projects& close& to& delivery.! ! These! are! projects! for! which! significant! background! work! has! been! undertaken,!although!some!further!project!development!work!may!be!needed.!!They!are!capable!of! being!delivered!during!the!Growth!Plan!period!i.e.!before!2020,!and!preferably!in!the!earlier!years!of! the!Growth!Plan!period.!!For!these!projects!it!is!understood!that!there!is!a!lead!organisation!and! governance!process!in!place;!a!detailed!business!plan;!evidence!of!the!socioMeconomic!impact!of!the! project;!work!towards!achieving!a!full!funding!package;!and!work!towards!achieving!all!necessary! permissions,!including!planning!permission!if!appropriate.!
Projects&under&development.!!!These!are!projects!for!which!some!work!has!been!undertaken!on! deliverability,!and!it!may!be!possible!to!deliver!them!during!the!lifetime!of!the!Growth!Plan!(i.e.!by! 2020),!probably!in!the!latter!part!of!this!period,!and!possibly!after!2020.!!There!will!be!an!identified! lead!organisation!for!the!project,!and!some!progress!will!be!have!been!made!in!some!of!the!areas!of:! governance,!business!planning,!impact!assessment,!funding!and!achieving!all!necessary!permissions.!
Projects& at& concept& stage.!!These! are! primarily! ideas! that! have! been! suggested! during! the! preparation! of! the! Growth! Plan,! but! which! have! not! reached! the! status! of! a! project% under% development!as!described!above.!!There!may!not!even!be!a!project!lead!organisation!in!place.!!They! will!require!significant!development!to!achieve!deliverability!during!the!lifetime!of!the!Growth!Plan.!
5.3 Impact&&
Projects!can!only!be!considered!for!inclusion!in!the!Growth!Plan!when!it!can!be!demonstrated!that! they!will!contribute!to!growth!in!Somerset!either!directly!(e.g.!through!job!creation),!or!by!providing! the!essential!enabling!infrastructure!(e.g.!transport!or!housing)!that!is!an!integral!part!of!the!growth! process.!!!
Where!possible!the!following!data!should!be!provided:!
• Net!additional!GVA!created! • Number!of!private!sector!jobs!created! • Quality!of!jobs!created!! • Sustainability!of!jobs!! • Number!of!local!people!supported!to!access!tangible!job!opportunities! • Amount!of!new!investment!attracted!to!Somerset!! • Number!of!new!homes!delivered!
! ! ! 4! ! For! enabling! projects,! it! should! be! shown! how! they! help! with! the! delivery! of! other! projects! that! create!the!outputs!listed!above.!!Some!limited!weighting!may!be!given!to!projects!that!promote! growth!in!particular!places!in!Somerset,!although!overall!growth!is!the!primary!focus!of!the!Growth! Plan.!
There!is!insufficient!information!available!to!allow!the!assessment!of!the!impact!of!all!of!the!projects! on!the!longMlist.!
The! strategic! economic! significance! of! each! project! has! been! assessed,! based! on! the! information! that!has!been!collected!through!stakeholder!consultations.!!At!this!stage!the!following!method!has! been!used!for!classifying!the!strategic!economic!significance!of!projects:!
LEP&and&panMLEP&projects.!!These!are!projects!that!are!of!importance!across!the!whole!LEP!area,!and! often!beyond!the!LEP!area!into!adjacent!areas.!!This!is!either!because!of!their!strategic!significance! to!the!whole!LEP!economy,!the!geography!that!they!cover,!or!a!combination!of!both!of!these.!!The! funding!and!delivery!of!these!projects!will!in!many!cases!be!organised!at!the!LEP!or!panMLEP!level.!
SomersetMwide&projects.!!These!are!projects!that!are!of!importance!to!all!or!most!parts!of!Somerset.!! This! is! either! because! of! their! strategic! significance! to! the! whole! of! the! Somerset! economy,! the! geography!that!they!cover,!or!a!combination!of!both!of!these.!!The!funding!and!delivery!of!these! projects!will!in!many!cases!be!organised!at!the!Somerset!level.!
Local&projects.!!These!are!projects!that!are!of!importance!to!a!part!of!Somerset!but!not!to!all!areas! of!Somerset.!!The!funding!and!delivery!of!these!projects!will!be!organised!at!the!local!(subMSomerset)! level.!
6 Growth&Plan&Objectives&
For!the!purposes!of!presenting!projects,!the!Growth!Plan!objectives!and!subMobjectives!have!been! numbered,!and!are!set!out!below.!
1& Create&a&dynamic&and&growth&focused&business&population&
1a! Raising!the!level!of!business!starts.!!Increasing!growth!aspiration!among!business! leaders.!!Improving!productivity!and!competitiveness.!!Encouraging!diversification!into! new!markets!(including!export)!
1b! Attracting!sustainable!inward!investment!from!the!UK!and!overseas!
1c! Promoting!supply!chain!development!activity!in!key!sectors!
! !
2& Increase& levels& of& education& and& skills& within& the& workforce& to& foster& growth& and& enable&residents&to&access&employment&opportunities&
2a! Raise!proportion!of!the!workforce!with!NVQ!L3+!and!4+!equivalent!qualifications!
! ! ! 5! ! 2b! Develop!STEM!skills!base!to!support!the!growth!of!key!sectors!
2c! Improve!employability!through!developing!generic!and!work!ready!skills!
! !
3& Tackle&significant&infrastructure&deficits&to&enhance&strategic&accessibility&
3a! Improving!speed!and!reliability!of!access!to!strategic!locations!
3b! Ensuring!high!quality!communications!infrastructure!to!the!whole!county!
3c! Alleviating!flood!risks!to!enable!growth!
! !
4& &Enable&the&delivery&of&major&housing&and&employment&developments&that&will&enable& growth&
4a! Unlocking!local!infrastructure!to!bring!forward!development!
4b! Ensure!housing!supply!to!accommodate!a!balanced!population!
!
& &
! ! ! 6! ! Appendix F: Project Information
This!appendix!sets!out!information!about!projects!that!has!been!collected!during!the!preparation!of! the! Somerset! Growth! Plan.! ! This! appendix! is! not! comprehensive,! and! significant! additional! information!is!required.!
Projects!are!set!out!below!under!the!clusters!that!have!been!set!out!in!the!Growth!Plan:!
• Hinkley!Point!C!and!nuclear!supply!chain! • Aerospace,!advanced!manufacturing!and!low!carbon!energy! • Increased!value!from!health,!construction!and!business!&!professional!services! • Increased!value!in!food!&!drink!processing,!land,!minerals!&!water!management,!tourism!and!logistics! • Infrastructure!for!improving!connectivity,!flood!alleviation!and!growth! • Business!competiveness!! • Inward!investment! • Skills! • Housing!
! !
! ! ! ! ! ! 1! ! 1 Hinkley!Point!C!and!nuclear!supply!chain!
1.1 Low!Carbon!Innovation!Centre!at!Bridgwater:!Phase!1!
The!Low!Carbon!Energy!Innovation!and!Collaboration!Project!will:!
• Help!to!attract!and!locate!upperLtier!businesses!in!Somerset!and!the!South!West!so!that!they!can! collaborate!with!local!businesses! • Support!the!development!of!SMEs!to!reach!the!standards!needed!to!engage!in!low!carbon!energy! supply!chains! • Identify!opportunities!and!broker!collaborative!relationships!between!local!SMEs!and!upper!tier! supply!chain!businesses,!particularly!around!areas!of!innovation!
The!Project!will!also!deliver!an!innovation!centre!which!will!be!a!hub!for!the!delivery!of!this!support,! and!the!establishment!and!growth!of!a!low!carbon!energy!supply!chain!cluster!in!Somerset!and!the! South!West.!!As!well!as!a!base!for!the!delivery!of!the!activities!above,!the!innovation!centre!will! provide!flexible!workspace!to!accommodate!collaborative!supply!chain!projects.!
The!Project!will!be!set!up!with!support!from!the!ERDF!and!other!funders.!!Once!established,!the! innovation!centre!will!generate!an!income!stream!which!enable!the!ongoing!delivery!of!the!Project,! and! thus! ensure! its! future! sustainability.! ! This! makes! a! significant! contribution! to! structural! economic!change!and!future!prosperity!in!the!South!West.!
Phase! 1a! includes! a! 2,400! sq! m! innovation! centre.! Business! Support:! Focused! support! for! high! growth!sectors!
Opportunity:!The!provision!of!support!to!highLgrowth!potential!businesses!is!a!national!government! priority! and! a! LEP! priority.! ! There! is! a! generic! market! failure! case! for! the! provision! of! publically! funded!business!support,!particularly!to!newLstarts,!micro!and!small!businesses!to!help!them!grow! and!start!employing!more!people.!!Somerset!has!a!relatively!high!proportion!of!small!businesses,!but! this! is! probably! more! a! function! of! the! lack! of! alternative! employment! opportunities! than! it! is! a! function!of!high!entrepreneurial!spirit!in!the!county.!
Barriers:! Since! the! demise! of! Business! Link! it! is! widely! acknowledged! that! the! provision! of! a! comprehensive!range!of!business!support!to!a!broad!range!of!businesses!has!become!fragmented,! inconsistent!and!often!not!delivered!at!all.!!!
Activity:! This! will! need! to! be! built! around! a! ‘front! end’! i.e.! a! single! point! of! contact! for! business! support;!some!sort!of!diagnostic/signposting!service!behind!this;!and!the!provision!of!some!direct! business!support.!!There!are!many!ways!of!doing!this,!with!the!old!Business!Link!model!at!one!end!of! the!scale!seen!as!‘gold!plated’!and!the!current!websiteLonly!Business!Link!model!seen!as!too!little.!! Given! that! this! is! a! LEP! and! national! priority,! the! design! and! development! of! a! business! support! programme!should!be!undertaken!as!part!of!a!larger!project!and!not!just!SomersetLonly.!!However,! there!needs!to!be!a!locally!attuned!frontLend,!and!a!guarantee!that!Somerset!businesses!will!get!a! minimum!quantity!and!quality!of!support.!!!
! ! ! ! ! ! 2! ! Delivery!plan:! There!is!a!debate!going!on!as!part!of!the!EULSIF!plan!development!within!the!LEP! about!the!opportunity!to!buyLin!to!the!national!provision!of!certain!services!such!as!MAS,!UKTI!and! Growth!Accelerator.!!These!will!provide!some!of!the!higherLvalue/higher!quality!business!support! services,!so!this!seems!like!a!good!idea.!
Governance:!tbc,!but!if!part!of!a!larger!project!this!would!be!dealt!with!by!the!accountable!body!
Timing:! As! a! revenue! funded! project,! this! can! be! delivered! relatively! quickly! and! in! an! ongoing! manner.!
Resources,! expenditure! and! ability! to! attract! investment:! This! looks! like! an! ongoing! publically! funded!revenue!cost.!
Geographical!coverage:!Certainly!SomersetLwide,!probably!LEPLwide,!and!possibly!panLLEP!wide!as! the! needs! are! likely! to! be! common! amongst! other! similar! areas! such! as! Wiltshire,! Dorset! and! Cornwall.!
Value! for! money:! As! part! of! a! LEP! or! even! broader! project,! Somerset! should! be! able! to! achieve! valueLforLmoney!from!this.!!It!will!be!likely!to!require!ongoing!revenue!support,!so!provision!needs! to!be!made!for!this.!!This!is!core!to!the!LEP!objectives,!so!it!is!likely!that!both!Single!Local!Growth! Fund! and! EU! Structural! Funds! will! be! used! for! this! purpose.! ! There! is! generally! limited! scope! for! private! sector! leverage,! although! it! may! be! possible! to! generate! some! revenue! income! or! match! funding!from!the!private!sector.!!Delivery!body!could!be!private!sector,!but!private!sector!is!unlikely! to!invest!in!the!provision!of!the!service,!unless!it’s!in!the!form!of!SMEs!match!funding!the!public! provision!of!support!on!a!caseLbyLcase!basis.!
Outputs:!Will!need!to!be!defined,!but!could!create!ongoing!numbers!of!new!additional!jobs.!!Assume! tens!to!hundreds!of!additional!jobs!every!year.!
1.2 Business!Support:!HPC!supply!chain!development!
The! Hinkley! Strategic! Delivery! Forum! (including! Somerset’s! local! authorities! and! the! Chamber! of! Commerce)!has!prepared!an!action!plan!to!support!development!of!the!HPC!supply!chain!in!the!local! area.!!Actions!emerging!from!this!will!need!to!be!undertaken.!
Somerset!Chamber!of!Commerce!has!been!undertaking!work!for!EDF!Energy!to!identify!local!SMEs! that!want!to!engage!in!the!HPC!supply!chain.!!It!is!now!seeking!funding!to!develop!its!work!with!local! SMEs!further,!to!help!them!to!participate!in!the!supply!chain.!
1.3 Skills:!Hinkley!Training!Agency!
Further!information!required.!
1.4 Low!Carbon!Innovation!Centre!at!Bridgwater:!Phase!2!
Building! on! the! Phase! 1a! project,! above,! further! funding! is! required! to! deliver! Phase! 1b! (an! additional!600!sq!m)!and!Phase!2!(a!separate!building!of!2,000!sq!m).!
! !
! ! ! ! ! ! 3! ! 2 Aerospace,!advanced!manufacturing!and!low!carbon!energy!
2.1 Augusta!Westland!Civil!Aviation!Hub!
!AgustaWestland! are! investing! £100! million+! to! create! a! new! industry! sector! in! the! UK! with! the! establishment!of!a!Civil!Helicopter!Hub.!The!investment,!which!includes!up!to!£46!million!from!the! Government’s!Regional!Growth!Fund,!will!help!create!and!safeguard!thousands!of!long!term!jobs! across!the!UK!whilst!creating!new!opportunities!for!the!UK!supply!chain,!a!significant!part!of!which!is! in! South! West! England.! The! funding! will! also! support! the! design! and! development! in! the! UK! of! advanced! technologies! in! the! field! of! tiltrotor! systems! integration! and! for! increasing! the! performance! of! tiltrotors,! which! combine! the! benefits! of! a! helicopter! and! an! aeroplane! in! one! aircraft.!!
The!investment!will!enable!Somerset!based!AgustaWestland!to!be!at!the!forefront!of!commercial! helicopter! research,! development,! manufacturing,! final! assembly! and! to! be! able! to! deliver! the! essential!support!services!required!by!commercial!operators!including!training!and!maintenance.!
The!project!will!offer!collaborative!opportunities!for!supply!chains!in!the!Somerset!economy!and!will! present! further! potential! projects! capable! of! attracting! funding! to! this! highLgrowth! development! sector!(see!Appendix!D!section!1)!
2.2 Site:!Puriton/Huntspill!Energy!Park!
90! Hectare! Low! Carbon! Energy! Park,! encompassing! a! range! of! B1,! B2! and! B8! usages! as! well! as! energy!production!facilities.!!
Owned! by! BAE,! the! former! ROF! brownfield! site! at! Puriton! is! faced! with! a! range! of! oneLoff! cost! pressures!linked!to!remediation!and!access.!The!site!principally!requires!a!new!link!road!(Circa!£5m)! which!the!developer!has!indicated!it!is!willing!to!fund.!A!more!significant!challenge!however!is!in! place!at!to!Junction!23,!which!will!require!an!upgrade!(circa!£15m)!if!the!site!is!to!be!fully!utilised.!!
Project!consented.!Now!requires!funding!secured!for!transport!improvements.!
2.3 Yeovil!Innovation!Centre!phase!2!and!growRon!space!
The!Funding!Partnership!for!the!Yeovil!Innovation!Centre!are!collating!a!new!Business!Plan!for!the! centre.!This!will!include!options!for!future!development!!
The! existing! YIC! site! includes! 3! acres! of! potential! expansion! land! and! 2.43! acres! of! neighbouring! brownfield!land.!This!offers!opportunities!for!a!potential!expansion!of!the!existing!centre.!Even!with! a!churn!of!tenants!the!centre!is!fast!approaching!80%!occupancy!and!has!created!or!safeguarded! approx.!130!jobs.!!Expansion!would!be!likely!to!offer!a!similar!job!creation!trajectory!over!a!three! year!timeLframe.!New!jobs!would!be!created!in!the!highLvalue,!highLtech!sectors!
Straightforward!acquisition!of!new!land!would!be!imminently!deliverable,!with!the!business!case!for! expansion!being!developed!in!conjunction!with!the!new!business!plan.!!
! ! ! ! ! ! 4! ! 3 Increased! value! in! food! &! drink! processing,! land,! mineral! &! water!management,!tourism!and!logistics!
3.1 Site:!Employment/Enterprise!Area!at!Bath!&!West!Showground!
Description!of!activity:!The!Showground!site!presents!over!90!ha!of!strategic!opportunity!to!support! business,! leisure,! tourism! and! the! wider! rural! economy.! Already! a! major! event! based! visitor! destination,!the!Royal!Bath!&!West!Agricultural!Society!vision!is!to!create!a!high!quality,!yearLround! conference!and!exhibition!venue!aligned!with!a!high!quality!rural!economy!business!identity.!
Opportunity:! A! comprehensive! and! environmentally! sensitive! development! plan! has! been! established! which! will! help! secure! the! long! term! sustainability! of! the! Showground! site! and! the! Society’s! charitable! aims! in! supporting! agriculture,! countryside! education,! the! rural! economy! and! rural! life! in! general.! Rather! than! exploit! the! site! value! for! residential! development! a! more! sympathetic!and!appropriate!development!strategy!has!been!explored!which!will!support!the!wider! economy!and!provide:!!!
• 10,000!sq!m!of!international!scale!exhibition/conference/hotel!facilities! • 13,000!sq!m!of!specialist!retail/leisure!provision! • 20,000!sq!m!of!new!business!space! • 500!sq!m!sustainable!energy!centre! • 12!ha!of!open!space!/!leisure!and!outdoor!events! • 9!ha!of!reserve!space!for!future!potential!
Barriers:!This!is!a!unique!proposition!which!supports!the!economic!growth!of!an!iconic!location!with! national!and!international!brand!awareness!and!identity!which!is!rare!in!the!Somerset!context!and! will!help!provide!a!focal!point!for!growth!in!the!wider!rural!economy.!
By!excluding!higher!value!residential!uses!from!the!site!there!are!financial!constraints!in!the!early! establishment! of! the! gateway! presence! and! vision! for! the! site! necessary! to! stimulate! and! attract! commercial!business!occupiers.!!
In!the!current!economic!climate,!current!business!enquiries!are!finding!difficulty!to!fully!commit!to! the! upLfront! capital! fitLout! costs! required! in! specialist! food! technology! production! units! and! yet! remain! constrained! by! existing! out! of! date! premises! to! capitalise! on! emerging! growth! markets.! Mendip!District!Council!is!seeking!to!provide!some!support!through!provision!of!short!term!Business! Rate! relief! (equivalent! to! Enterprise! Zones)! but! is! unable! to! provide! the! wider! capital! allowances! relief!available!on!other!Government!sponsored!sites.!!
Delivery!plan:!A!Planning!Framework!was!approved!by!Mendip!District!Council!(July!2010)!and!forms! the!basis!of!the!development.!
The!potential!for!a!Local!Development!Order!(LDO)!is!currently!being!considered!by!Mendip!District! Council! for! the! Rural! Economy! Business! Zone! which! will! enable! speedy! delivery! of! all! BLuse! class! development!on!a!10!ha!gateway!to!the!overall!site.!
! ! ! ! ! ! 5! ! Governance:!The!site!is!in!the!single!ownership!of!the!Royal!Bath!&!West!of!England!Agricultural! Society! who! have! an! exclusive! developer! agreement! with! an! experienced! regeneration! partner! –! London!&!Wharfedale!acting!as!the!master!developer!for!the!site.!!The!lead!contractor!is!Sir!Robert! McAlpine.!
Timing:!Development!is!expected!to!commence!in!2014!and!could!be!substantially!complete!with!6! years!by!2020!subject!to!market!activity.!
Resources,! expenditure! and! ability! to! attract! investment:! Total! site! development! costs! are! estimated!to!be!in!the!order!of!£80!million.!!The!lead!developer!is!providing!equity!investment!to! support! site! planning! and! marketing! and! has! secured! “inLprinciple”! debt! finance! for! construction! activity!which!is!to!be!occupier!(and!covenant)!driven.!
The! site! has! potential! to! be! commercially! viable! in! the! long! term! and! will! attract! investment! dependent!on!occupier!market/strengths.!The!challenge!is!to!establish!the!credibility!of!the!vision! and!potential!of!the!location!in!the!short!term!to!gain!investor!and!occupier!confidence.!£1.5!million! public!investment!would!support!the!initial!gateway!infrastructure!and!site!mobilisation.!
Current!Economic!Impact!of!the!Showground!Site!is! £164! million! per!annum.!On!completion,! the! enhanced! showground! site! could! contribute! between! £177! and! £183! million! per! annum! to! UK! economy;! plus! a! further! £30! million! GVA! per! annum! from! the! Rural! Economy! Business! Zone! development.!
Geographical!coverage:!The!enhancement!of!the!Royal!Bath!&!West!Showground!site!is!of!regional! (South!West)!and!national!significance!creating!a!yearLround!destination!and!visitor!attraction!with!a! variety!of!leisure,!cultural!and!business!conferences!and!events!being!provided.!!!
The! development! of! the! Rural! Economy! Business! Zone! will! have! a! Somerset! wide! appeal! for! specialist! clusters! of! occupiers! in! an! environment! to! meet! the! needs! of! the! rural! economy,! particularly!agriculture!and!farming,!food!production,!research,!agricultural!and!farming!services.!!
Outputs:!Full!development!of!the!site!will!create!over!a!1,000!new!private!sector!jobs!and!provide:!!
• 20,000!sq!m!of!new!business!space! • 10,000!sq!m!of!international!scale!exhibition/conference/hotel!facilities! • 13,000!sq!m!of!rural!leisure!provision! • 500!sq!m!sustainable!energy!centre!
Outcomes!and!economic!benefits:!The!Rural!Economy!Business!Zone!alone!will!generate!some!£30! million!net!additional!GVA!per!annum!on!completion.!
The!enhanced!showground!attraction!will!generate!1.5!million!additional!visitors!per!annum!(more! than!double!the!current!level)!and!contribute!£13!L!£19!million!of!additional!GVA!per!annum!to!the! economy.!
Next! steps:! Site! is! already! available! for! development! and! live! business! enquiries! are! currently! in! negotiation.! ! Preparatory! work! and! stakeholder! conversations! are! taking! place! in! respect! of! the! proposed!LDO! ! ! ! ! ! ! 6! ! 3.2 Business!Support:!Agri!tech!centre!of!excellence!at!Bath!&!West!Showground!
Description!of!activity:!A!farm!and!food!industry!connected!hub!working!with!national!AgriLTech! research!centres!to!fast!track!productivity!and!knowledge!transfer.!
Opportunity:! BIS/DEFRA! are! consulting! on! a! national! AgriLTech! Strategy! with! an! ambition! to! establish!a!number!of!applied!research!centres!across!the!UK!in!a!£90!million!research!funding!and! economic!productivity!programme.!!The!Agricultural!Societies!are!collaborating!to!provide!a!national! support! network! providing! essential! linkages! between! research,! farm! production! and! food! technology/processing.!The!Royal!Bath!&!West!Agricultural!Society!is!a!key!partner!in!the!initiative! and!with!the!parallel!development!plans!for!the!showground!site!creates!a!unique!opportunity!to! establish!a!strong!centre!of!excellence!in!Somerset.!!!
The! initiative! also! helps! forge! strong! linkages! with! HE! establishments! of! national/international! repute! which! stimulate! further! collaboration! and! engagement! with! local! business! and! education! providers!in!the!future.!!
Barriers:! The! government! requirements! are! expected! to! crystallise! further! in! December/January! with! the! call! for! bid! proposals.! ! This! will! be! a! competitive! process! for! the! centres! of! excellence.!! Capital!and!Revenue!support!costs!will!help!formalise!the!local!offer!
Delivery! plan:! The! Royal! Agricultural! Society! is! leading! the! initiative! nationally! and! currently! in! discussion!with!leading!research!institutes.!The!Royal!Bath!&!West!Agricultural!Society!is!driving!the! proposals!locally!with!support!from!Mendip!District!Council!and!local!business!partners.!!
Governance:!To!be!further!developed!but!will!come!under!the!auspices!of!the!RBAWAS!
Timing:!Call!for!national!centres!likely!to!be!Dec/Jan!–!with!submissions!to!be!completed!within!6L8! weeks.!
Resources,! expenditure! and! ability! to! attract! investment:! Revenue! support! may! be! required! for! initial! startLup! period! and! setLup! costs! involved.! An! outline! financial! plan! is! currently! being! considered.!
Geographical!coverage:!A!centre!of!excellence!based!in!Somerset!will!make!a!regional!impact!on! farm!productivity!and!business!engagement.!
Outputs:!Ultimately!10L15!farm!outLreach/AgriLTech!research!posts!locally!based.!!Accommodation!L! 1,500!sq!m!Innovation!Hub!
Outcomes!and!economic!benefits:!Knowledge!Transfer!–!academic/business!links!
• HE!presence/identity!for!Somerset! • Farm!productivity!benefits!–!early!adoption!of!research!innovation! • Food!technology!research!&!innovation!
3.3 Support!for!the!tourism!sector!
Suggested!by!the!Somerset!Tourism!Association!
! ! ! ! ! ! 7! ! Opportunity:! It! was! suggested! that! with! sufficient! coordination! and! marketing,! Somerset! could! aspire!towards!a!sector!the!size!of!Cornwall’s.!!However,!STA!did!acknowledge!that!Somerset!is!more! of!a!shortLbreak!than!longLstay!destination.!
Barriers:! Somerset! is! lacking! core! funding! for! a! destination! management! organisations! (DMO)! to! coordinate! tourism! promotion! and! marketing.! ! Somerset! has! an! £850! million! tourism! sector,! compared!to!Cornwall’s!£2!billion!sector.!!!
Activity:! Core! funding! of! a! DMO,! allowing! it! to! take! on! permanent! staff,! and! a! large! marketing! programme,!with!a!strong!emphasis!on!internetLbased!activity.!!STA!had!not!given!any!consideration! to!activity!that!would!increase!the!quality!of!the!sector!or!spend!per!visitor.!
Governance:!STA!is!a!private!sector!led!body,!so!there!is!scope!for!this!to!be!a!private!sector!led! project,!with!some!limited!support!from!the!public!sector.!
Timing:!As!a!revenue!based!activity!this!could!be!delivered!relatively!easily!and!quickly.!
Resources,!expenditure!and!ability!to!attract!investment:!No!values!provided,!but!looks!like!mainly! revenue!costs,!and!scalable!according!to!the!amount!of!funding!available.!
Geographical!coverage:!SomersetLwide,!but!Somerset!only!as!it!will!be!in!direct!competition!with!all! adjoining!areas,!including!other!parts!of!the!LEP.!
Value!for!money:!Some!public!funding!will!be!required,!but!potential!for!businesses!in!the!sector!to! contribute!to!this!too.!!Likely!to!be!revenue!funding,!so!not!a!major!cost.!!Potential!to!seek!further! contribution!from!existing!tourism!businesses!to!maximise!private!sector!leverage.!
Could!seek!something!like!RGF!if!there!was!sufficient!private!sector!match!funding.!!Unlikely!to!be!a! high!priority!for!most!core!LEP!funds.!
Outputs:!Likely!to!be!more!of!the!same!(i.e.!relatively!low!value,!seasonable!jobs),!unless!activity!is! focused!on!improving!the!quality!of!the!sector.!!Need!to!avoid!focusing!on!just!displacing!visitors! from!elsewhere,!with!no!net!gain!to!the!South!West!or!UK.!
Outcomes!and!economic!benefits:!Potential!to!create!more!jobs,!but!will!need!to!be!very!focused!in! order!to!increase!the!quality!of!the!local!economy!
Potential! to! increase! numbers! of! visitors,! visitor! spend,! employment! in! the! sector,! and! GVA! generated!
3.4 Mendip!Rural!Enterprise!Centre!at!Bath!&!West!Showground!
A!specialist!enterprise!centre!targeted!at!rural!and!food!business!including!test!kitchen!facilities!and! training!venue.!!
Opportunity:!There!is!emerging!business!interest!for!small!scale!business!startLup!premises!for!food! and!other!rural!enterprise!activities!which!are!challenging!to!deliver!in!isolation.!There!is!potential!to! capitalise!on!the!wider!business!activities!at!the!B&W!site!to!create!an!integrated!Rural!Enterprise! Centre! which! could! include! the! proposed! AgriLTech! Innovation! Hub.! The! development! would! be!
! ! ! ! ! ! 8! ! supported! by! the! B&W! main! developer! and! there! is! speculative! interest! from! a! leading! food! producer!who!may!be!able!to!support!the!management!of!the!test!kitchens.!
Barriers:! Traditional! property! development! solutions! are! occupier/covenant! driven! and! a! more! flexible! partnership! approach! is! required! to! support! the! development! of! an! integrated! business! support!driven!enterprise!centre!for!the!benefit!of!new!and!growth!oriented!rural!businesses.!
Delivery!plan:!London!&!Wharfedale!as!the!main!B&W!developer!would!take!lead!responsibility!for! the!design!and!construction!subject!to!a!head!lease!agreement!with!a!partner!either!individually!or! in!a!JV!agreement!with!public!sector.!
Governance:!To!be!further!developed!further!
Timing:!Subject!to!confirmation!of!“inLprinciple”!support!the!concept!can!be!worked!and!costed!up! in!more!detail!in!2014!and!could!be!delivered!in!2015.!!
Resources,! expenditure! and! ability! to! attract! investment:! A! detailed! costLplan! has! yet! to! be! developed! –! there! is! already! “inLprinciple”! private! sector! support! and! commitment! subject! to! balancing! contributions! from! the! public! sector.! There! is! confidence! in! underlying! demand! from! occupiers!subject!to!the!occupancy!costs!being!affordable.!
Geographical!coverage:!Based!at!the!B&W!site!the!centre!would!have!a!wide!rural!catchment!and! influence!across!east!and!south!somersert.!
Outputs:!Approximately!2,000!sq!m!of!new!commercial!floorspace!incorporating:!
• 60%!lettable!space!to!business!tenants! • 40%!training/meetings/test!kitchen!facilities!
Outcomes! and! economic! benefits:! New! Business! Start! Ups! supported.! ! Product! Development! &! Launch.!!Training!&!Development!!
Next! steps:! Further! scoping! of! concept! and! broad! content/activities.! ! Partnership! development! –! governance/management!&!delivery.!!Concept!design!proposals!and!costings!!
3.5 Improvements!to!visitor!facilities!at!Cartgate!visitor/rest!area!!
This!is!viewed!as!a!strategic!project!that!would!enhance!the!appearance!and!level!of!facilities!on! offer! to! visitors! and! businesses! using! the! busy! A303! route! to! the! South! West.! This! key! arterial! highway! is! likely! to! be! upgraded! in! coming! years.! Cartgate! is! a! key! stopping/resting! location! for! hundreds!of!thousands!of!visitors!each!year!and!the!site!needs!upgrading!!to!reflect!increased!usage! and!its!importance!as!a!gateway!location!to!the!South!West.!!
! ! ! ! ! ! 9! ! 4 Increased!value!from!health,!construction!and!business!&! professional!services!
4.1 Site:!Firepool,!Taunton!
Approximately! 47,000! sq! m! of! office! space,! 8,000sqm! of! additional! retail! and! leisure! floorspace,! approximately!400!dwellings,!hotel!and!associated!infrastructure.!
Localised! flooding! within! parts! of! the! site! can! be! alleviated! as! part! of! wider! town! centre! flood! attenuation! proposals! which! are! currently! being! investigated.! Completion! of! Northern! Inner! Distributor!link!road!will!provide!good!access!and!frontage!land!which!will!assist!marketability!of!the! site.! The! key! barrier! is! scheme! viability,! particularly! in! relation! to! the! requirement! for! the! development!to!include!a!boulevard!representing!a!key!gateway!to!the!town!centre.!
The!Taunton!Town!Centre!‘Rethink’!project!is!due!to!be!reported!to!TDBC!members!in!January!2014.!! The!project!seeks!to!review!the!original!Taunton!Vision!work!and!assess!market!delivery!issues!and! options!for!bringing!forward!the!town!centre!regeneration!sites.!
4.2 Skills:!Level!3!STEM!training!
Further!information!required.!
4.3 Site:!J25!Strategic!employment!site!
Further!information!required.!
!
! ! ! ! ! ! 10! ! 5 Infrastructure!!
5.1 Floods!
Increased!flood!protection!will!do!two!things:!
• Protect!existing!homes!and!businesses!from!flood!risk,!thus!reducing!costs!(both!insurance!costs!and! costs!associated!with!flooding!events)! • Open!up!areas!and!sites!for!development,!which!could!not!previously!be!developed!due!to!flood!risk!
5.1.1 Floods:!Parrett!barrage/Bridgwater!flood!defences! Activity:!Significant!work!done!by!EA,!SCC!and!SDC!on!Barrage.!!Funding!needed!to!enable!Parrett! Barrage! to! be! realised! (understanding! that! there! remains! a! shortfall! in! funds! between! now! and! when! EA! suggest! it! must! be! delivered! (tied! in! to! housing! delivery).! ! Gap! will! be! known! by! SDC! officers.!!Enabling!earlier!delivery!will!also!benefit!Levels!project!below.!
Delivery!plan:!Significant!work!done!by!EA!and!SCC!on!impact!of!2012!flooding!on!Levels.!!Significant! work!done!by!SCC!and!EA!on!delivery!of!project!although!sustainable!longLterm!solution!remains!to! be!determined!through!feasibility!work.!
Governance:!EA,!SDC!and!SCC!
5.1.2 Floods:!River!Tone/Taunton!flood!defences! Critical!to!enable!the!general!growth!of!Taunton!including!employment!and!housing!development!
Activity:!Major!strategic!flood!solution.!!“SuperLpond”!
Delivery!plan:!Feasibility!study!underway.!!!
Governance:!Env!Agency,!LEP,!SCC,!TDDC!
5.1.3 Floods:!Somerset!levels!river!dredging! Funding! needed! to! fill! gap! in! £1.7m! L! £4.1m! budget! required! for! initial! dredging! of! Levels! and! development! of! longLterm! sustainable! solution! to! ensure! protection! of! businesses,! transport! network!(road!and!rail)!and!housing!from!future!flood!events.!!Significant!benefit!to!rural!business! but!also!possible!implications!for!agriculture!change!in!the!longLterm.!
Governance!to!involve!SCC!and!EA!lead!(assume!SDC!and!MDC!as!partners)!
5.1.4 Floods:!Burnham!&!Highbridge!Sea!Defences! Further!information!required.!
5.2 Major!Roads!
Opportunity:!General!view!that!improvements!in!road!transport!infrastructure!will!increase!growth! prospects.! ! The! most! significant! opportunities! are:! M5! Junction! 25! significant! upgrade,! including! allocation! of! a! major! new! employment! site! to! the! east! of! the! motorway;! upgrading! of! the! A303/A358!and!possibly!masterplanning!of!the!development!opportunities!along!the!road;!and!M5! ! ! ! ! ! ! 11! ! Junction!23!upgrade!to!improve!accessibility!into!north!Bridgwater!facilitating!Hinkley!supply!chain! activity.!
Barriers:!Very!expensive!and!relatively!difficult!to!access!funds.!!Need!for!a!well!workedLup!scheme! before!it!can!be!considered!for!funding,!and!so!support!is!needed!to!work!up!this!case.!
The! case! for! investment! in! roads! (as! a! public! good)! is! a! straightforward! market! failure! case.!! However,!given!the!high!level!of!competition!for!investment!in!major!road!schemes!means!that!the! growth!aspects!of!the!projects!must!be!emphasised.!
Activity:! It! is! recognised! that! these! are! significant! projects! costing! tens! of! £millions.! ! In! the! first! instance! various! pieces! of! technical! and! advocacy! work! need! to! be! undertaken! to! progress! these! schemes.!!Once!a!scheme!for!each!has!been!agreed,!some!capital!funds!from!LEP,!EU!etc!may!be! required.!
Delivery!plan:!Significant!technical!work!is!needed!to!progress!these!opportunities!to!a!development! ready!state!
Governance:!The!Local!Transport!Body,!the!LEP!Board,!the!Highways!Agency!and!the!Department!for! Transport!will!be!key!bodies!involved!in!releasing!major!transport!scheme!funding.!SCC!will!play!a! key!role!(as!Highways!Authority).!!!
Timing:!Technical!work!will!be!relatively!shortLterm,!but!delivery!of!the!capital!works!will!be!a!longL term!project.!
Resources,!expenditure!and!ability!to!attract!investment:!Major!public!capital!funds!required.!!May! be!some!scope!for!private!sector!contribution!through!Section!106,!CIL!etc.!!Major!road!schemes! have!had!to!have!a!robust!economic!case!behind!bids!for!funding!for!some!time!now.!!!
Geographical! coverage:! Locally! specific,! although! benefits! will! accrue! across! Somerset! and! potentially!larger!parts!of!the!LEP!and!wider!South!West!in!the!case!of!the!most!strategic!schemes.!
Value!for!money:!Technical!and!advocacy!work!is!less!expensive!although!still!challenging!for!Local! Authorities! to! fund! with! reducing! revenue! budgets,! but! capital! works! will! be! tens! of! £millions.!! Mostly!public!funds,!although!some!scope!for!Section!106/CIL!funds.!!Some!private!sector!leverage,! but!probably!not!significant!
Outputs:!Not!clear.!!Should!be!in!the!technical!work.!
Outcomes!and!economic!benefits:!Potentially!significant,!but!will!need!to!be!modelled!
5.2.1 Strategic!Major!Road!Improvement!:!A303/!A358/!A30! An!improvement!to!the!A303/A358/A30!corridor!has!long!been!considered!a!priority!by!a!strong! coalition!of!businesses,!LEPs,!local!authorities,!emergency!services!and!crossLparty!MPs!who!are! calling!for!vital!improvements!to!the!corridor!to!boost!the!South!West!economy!and!support!the! Government’s!drive!for!growth.!
!
! ! ! ! ! ! 12! ! The!route!experiences!considerable!congestion,!and!road!safety!problems,!and!is!an!extremely! unreliable!access!point!to!the!South!West.!From!a!survey!of!over!650!businesses;!89%!said!the! unreliability!of!the!route!was!harming!their!business.!This!has!resulted!in!restraints!to!development! and!business!growth!along!the!corridor.!
The!inherent!lack!of!resilience!in!transport!routes!linking!the!South!West!with!UK!and!international! markets!is!highlighted!time!and!time!again!when!the!limited!road!or!rail!links!to!the!area!are!closed! due!to!accidents,!flooding!or!even!routine!maintenance!works.!
South!West!Authorities!and!the!LEP!submitted!a!prospectus!and!outline!business!case!to!the! Government!in!April!2013!highlighting!that!a!dual!carriageway!improvement!would!generate!21,400! jobs;!generate!£41.6bn!to!the!economy!(GVA);!provide!transport!benefits!of!£1.9bn!due!to!a! reduction!in!journey!times,!congestion!and!delays;!generate!employment!related!economic!impacts! of!£7.2bn;!increase!visitor!expenditure!by!£8.6bn!per!year;!improve!transport!resilience!to!cope!with! incidents!and!during!flooding;!save!an!anticipated!1,807!fatal!or!serious!casualties!over!60!years;!and! reduce!carbon!emissions!by!9%.!!This!was!a!conservative!estimate!based!on!improving!turnover!of! existing!businesses!and!excluding!at!that!stage!any!estimate!of!new!inward!investment!associated! with!an!improved!route.!
The!Government!announced!in!July!2013!that!it!would!tackle!some!of!the!most!notorious!and!longL standing!road!hot!spots!in!the!country!including!the!A303/A358/A30!corridor.!The!Department!for! Transport!is!undertaking!a!feasibility!study!of!the!route!with!a!view!to!presenting!a!strong!business! case!and!recommendations!to!Ministers!by!the!end!of!2014.!The!study!will!establish!whether!there! are!individual!sections!of!the!route!which!could!be!constructed!earlyLon!in!the!Government’s!new! roads!programme!which!will!start!in!2015.!
Cost!for!an!endLtoLend!dualling!scheme!was!last!estimated!at!£1.3bn!including!costly!sections!such! as!improvements!at!Stonehenge,!however!early!deliverables!could!include!for!example!a!£50m! scheme!to!dual!the!section!between!Sparkford!and!Ilchester!which!delivers!economic!benefits! approximately!6!times!greater!than!the!cost!of!construction.!!!There!are!also!opportunities!to!make!a! good!case!for!an!improvement!to!the!A358!at!Henlade!in!conjunction!with!proposed!employment! development!to!deliver!clear!economic!growth!benefits!whilst!tackling!congestion!and!pollution!on! that!section!of!the!route.!
5.2.2 Strategic!Major!Road!Improvement:!M5!J23! Highways! capacity! is! a! crucial! contributor! within! the! Hinkley! Point! Impact! Area.! ! Junction! and! highways!capacity!in!the!locality,!notably!at!J23!of!the!M5,!is!a!source!of!immediate!concern,!with! the!inclusion!of!additional!HPC!transport!effectively!taking!the!local!network!to!capacity!over!the! lifetime!of!the!project.!
Whilst!EDF!Energy!has!agreed!to!provide!reasonable!mitigation!to!assist!with!their!specific!impacts,! this! does! not! extend! (nor! could! it! under! the! current! planning! framework)! to! providing! any! contribution!to!additional!requirements!for!business!needs.!
The!technical!assessment!for!the!Development!Consent!Order!did!not!include!the!supply!chain.!The! supply! chain! detail! is! still! largely! unknown! as! it! is! subject! to! contract,! and! individual! business!
! ! ! ! ! ! 13! ! decisions! on! establishing! operating! premises! to! construct! the! station.! However,! Sedgemoor! has! allocated!and!consented!a!number!of!commercial!premises!to!accommodate!the!supply!chain,!for! example!at!Bridgwater!Gateway!(Junction!24)!and!at!the!Huntspill!Energy!Park!(HEP)!(up!to!90ha!of! employment! land! off! Junction! 23).! The! consent! at! HEP! is! constrained! and! limited! by! physical! highways!capacity!which!will!form!a!real!barrier!to!supply!chain!mobilisation,! and! will! potentially! delay!the!project!or!result!in!the!supply!chain!being!located!at!a!greater!distance!from!the!main!site,! incurring!additional!cost!and!creating!wider!impacts.!
Immediate!commitment!is!needed!(in!advance!of!the!outcomes!from!the!Highways!Agency!Route! Based! Strategies)! to! progress! improvements! to! M5! J23! to! enable! Hinkley! supply! chain! activity! to! locate!at!Huntspill!Energy!Park.!!
Commitment!for!the!Highways!Agency;!requested!through!the!Hinkley!Deal!is!needed!to!undertake! preparatory!work!during!2014!including!detailed!assessment,!detailed!design!and!planning!matters! to!enable!a!scheme!to!be!implemented!as!early!as!possible!preferably!aiming!for!a!start!prior!to!the! Agencies!wider!national!2015L2019!programme.!
A!Highways!Agency!study!has!identified!an!appropriate!improvement!to!the!junction!which!will!cost! in! the! region! al! £15m! L! £18m.! ! ! EDF! is! already! required! to! implement! a! partial! traffic! signal! improvement!to!the!junction!and!the!Huntspill!Energy!Park!is!also!likely!to!be!required!to!contribute! towards!improvements.!!The!full!improvement!requires!significant!widening!and!structures!work!on! the!M5!and!would!be!an!appropriate!investment!for!the!Highways!Agencies!programme.!
5.2.3 Strategic!Major!Road!Improvement:!M5!J25! Improvements!to!J25!are!absolutely!critical.!J25!is!already!a!major!traffic!‘pinch!point’!on!the!M5! corridor!and!increased!capacity!at!this!location!is!essential!to!the!successful!delivery!of!Taunton’s! growth!plans.! In!addition!to!relieving!congestion,!this!scheme!is!essential!to!deliver:
• the!planned!growth!at!Monkton!Heathfield,!including!32.5!hectares!of!new!employment!land. • the!second!new!strategic!employment!site!as!identified!the!Core!Strategy!Policy.!East!of!J25!adjacent! to!the!A358!is!the!preferred!location!in!the!emerging!Site!Allocations!Plan.!This!location!is!consistent! with! the! long! held! view! of! the! business! community! and! flows! from! a! Core! Strategy! Policy! that! is! supported!by!the!LEP.
Providing!increased!capacity!at!J25!is!also!critical!to!providing!improved!access!to!West!Somerset! and!the!region!as!a!whole,!maximising!the!benefit!of!recent!government!investment!in!the!delivery! of!the!Northern!Inner!Distributor!Road.
J25!and!the!A358!provide!the!link!between!the!two!strategic!routes!into!the!South!West,!being!the! A303!and!M5!corridor.!Improving!J25!is!therefore!of!wider!and!more!strategic!benefit!to!the!region! having! regard! to! the! amount! of! traffic! (particularly! HGV’s)! using! the! A358! to! transport! goods! between!the!south!coast,!the!A303!and!the!M5!corridor.!Such!traffic!is!likely!to!increase!significantly! as!a!result!of!the!planned!nuclear!new!build!at!Hinkley!Point!and!there!is!the!additional!possibility!of! more!tourist!traffic!using!J25!to!access!West!Somerset.!
Improvements!to!M5J25!have!been!included!within!a!longLlist!of!12!major!transport!schemes!that! the!Local!Transport!Body!hopes!to!fund!through!the!LEP!Growth!Deal.!!Somerset!County!Council,! ! ! ! ! ! ! 14! ! Taunton! Deane! Borough! Council! and! the! Highways! Agency! are! undertaking! technical! work! to! establish!an!appropriate!design!for!the!required!improvements.!
5.2.4 Strategic!Major!Road!Improvement:!M5!J24! Somerset!County!Council!undertook!a!detailed!study!of!the!impacts!of!planned!growth!in!the! Bridgwater/!Taunton/!Wellington!corridor!within!the!‘Taunton!Transport!Strategy!Review!2’!in!2008.! The!study!concluded!that!the!impact!of!planned!growth!created!considerable!pressures!on!the!M5! junctions!including!J24!which!(although!less!severely!affected!than!J23!and!J25)!was!predicted!to! experience!a!400%!increase!in!delay!by!2026.!!!This!assessment!preLdated!the!additional!pressures!of! the!Hinkley!Point!C!and!Huntspill!Energy!Park!developments!which!were!not!committed! developments!at!the!time.!!!
Specific!improvement!proposals!require!developing!at!this!location!to!ensure!that!the!junction!does! not!become!a!barrier!to!economic!growth!in!the!area!due!to!increased!congestion.!!
5.2.5 Strategic!Major!Road!Improvement:!M5!J22! Potential!development!proposals!are!emerging!which!could!create!considerable!additional!pressure! on!J22!of!the!M5!at!BurnhamLonLSea.!!Significant!improvements!may!be!required!to!enable!this! economic!growth!are!to!develop!(a!potential!1,000,000!sq!ft!development!at!Isleport!is!under! discussion).!!This!junction!is!also!a!key!location!on!one!of!the!strategic!access!routes!to!Bristol! Airport.!
Specific!improvement!proposals!require!developing!at!this!location!to!ensure!that!the!junction!does! not!become!a!barrier!to!economic!growth!in!the!area!due!to!increased!congestion.!
5.3 Local!Major!Road!Schemes!
5.3.1 Local!Major!Road!Improvement:!Yeovil!Western!Corridor! Improvements! to! main! highway! infrastructure! extending! from! Thorne! Lane! in! the! north! to! the! Lysander!Roundabout!in!the!south.!!Funding! would!unlock!Bunford!Park!6,640!jobs,!Lufton!2,000! phase!3!with!750!jobs,!Lufton!Key!site!696!dwellings,!Brimsmore!!830!dwellings.!
This!project!remains!a!top!priority!for!South!Somerset!and!has!been!the!subject!of!bids!to!RGF,!GPF! and!PinchLpoint!funding.!!The!scheme!is!highly!deliverable!but!has!stalled!because!of!viability!and! cashLflow!issues!for!developers!
The!Local!Transport!Body!(LTB)!has!provisionally!allocated!£6.54m!towards!a!total!scheme!cost!last! estimated! at! £12.2m.! ! The! scheme! is! one! of! five! priority! schemes! already! provisionally! allocated! funding!by!the!Heart!of!the!South!West!LTB!for!delivery!in!2015L2019!using!their!major!transport! scheme!funds!from!the!Department!for!Transport.!!The!remainder!of!the!scheme!cost!will!need!to! be!provided!via!developer!contributions!and!work!is!currently!underway!to!revise!the!scheme!design! to!achieve!a!cost!effective!and!deliverable!business!case.!!The!LTB!funding!provides!an!opportunity! for!Section!106!agreements!to!be!renegotiated!if!the!scheme!is!to!work.!
The!LTB!will!need!to!consider!a!detailed!business!case!during!2014!before!releasing!funding!for!a! start!in!2015.!
! ! ! ! ! ! 15! ! Deliverability:!excellent.!!Costs:!all!available!(2013)!
The!project!remains!stalled.!
5.3.2 Local!Major!Road!Improvement:!Toneway!Corridor!! Toneway!Corridor!is!the!main!access!route!into!Taunton.!The!junctions!at!Creech!Castle,!Obridge!and! Heron! Gate! provide! key! connections! between! the! A38,! the! M5! (Junction! 25)! and! Taunton! Town! Centre.! These! junctions! currently! serve! existing! employment! sites! and! suffer! from! high! levels! of! congestion!at!peak!times!(both!morning!and!afternoon).!Over!the!next!15!years,!significant!levels!of! employment,! retail! and! residential! development! are! proposed! in! Taunton! including! urban! extensions!at!Monkton!Heathfield!to!the!North!East!of!Taunton!and!potentially!at!Comeytrowe!to! the! southwest! of! Taunton.! Taunton! Deane! Borough! Council! is! proposing! to! allocate! a! strategic! employment!site!to!the!east!of!Junction!25.!Improvements!to!this!corridor!are!required!to!enable! the!town!to!grow.!
Improvements! to! Toneway! Corridor! have! been! included! within! a! longLlist! of! 12! major! transport! schemes! that! the! Local! Transport! Body! hopes! to! fund! through! the! LEP! Growth! Deal.! ! Somerset! County! Council! will! need! to! undertake! technical! work! to! establish! an! appropriate! design! and! progress! the! business! case! for! the! required! improvements! which! are! estimated! to! cost! approximately!£6.2m.!!
5.3.3 Local!Major!Road!Improvement:!Walton!&!Ashcott!Bypass! A!strategic!highway!provision!is!required!to!improve!connectivity!and!reliability!of!linkages!to!the! M5.! The! provision! may! also! help! delivery! of! new! housing! development! at! Walton! Parish! and! employment!schemes!at!Street!Business!Park!in!Mendip.!
Opportunity:!The!Walton!Parish!Housing!site!is!designed!to!provide!400L500!homes!(30%!affordable)! together!with!a!new!Primary!School,!Community!Facilities,!Distributor!Road!and!Open!green!space.!! Street!Business!Park!is!a!14.6!acre!(5.9!ha)!greenfield!site!with!potential!to!deliver!up!to!250,000!sq! ft!of!new!commercial!floorspace.!
Barriers:!The!full!cost!of!providing!the!bypass!link!is!proving!a!prohibitive!barrier!to!development! and!realisation!of!growth!proposals.!A!crossLboundary!agreement!is!also!required!with!Sedgemoor! District!Council!to!finalise!the!alignment!of!the!byLpass!and!link!road.!
Delivery!plan:!A!reservation!corridor!for!the!route!alignment!is!preserved!in!the!Draft!Local!Plan.!
Governance:!!As!the!scheme!would!be!a!Local!Major!Transport!Scheme!it!would!need!to!be!subject! to!an!early!assessment!and!prioritisation!against!other!potential!major!transport!schemes!in!the!LEP! area.!Subject!to!suitable!prioritisation!by!the!LTB!and!the!LEP!Board,!a!business!case!would!then!be! required.!!!SCC!Highways!would!be!required!to!progress!the!early!assessment!and!any!subsequent! business!case,!scheme!design!and!secure!construction!contract.!
Timing:!Subject!to!funding!commitment!
! ! ! ! ! ! 16! ! Resources,!expenditure!and!ability!to!attract!investment:!Initial!design!work!required!to!clarify!cost! implications.! An! outline! bypass! scheme! proposal! was! last! costed! in! 2001! within! the! ! ‘Central! Somerset!Access!Strategy’!major!scheme!bid!and!totalled!approximately!£18m.!
Geographical!coverage:!Mendip!wide!&!eastern!part!of!Sedgemoor!will!benefit.!!
Outputs:!Time!and!Cost!savings!will!be!achieved!by!existing!users!travelling!the!A39!to!reach!the!M5! –!an!essential!strategic!route!for!business!in!rural!Mendip!and!Sedgemoor!District!areas.!Highway! safety!improvements!will!be!achieved!as!a!result!of!the!byLpass!construction.!
In!addition!the!development!of!the!Street!Business!Park!will!create!around!950!new!private!sector! jobs!within!some!23,200!sq!m!of!new!business!space!(B1,!B2,!B8).!
Up! to! 500! new! homes! will! also! be! provided! at! Walton! Parish! (30%! affordable)! supporting! rural! economic!growth.!
Outcomes! and! economic! benefits:! Completion! of! Street! Business! Park! will! contribute! some! £36! million!of!additional!GVA!economic!growth!per!annum!and!stimulate!some!£85!million!of!private! construction!investment.!
5.3.4 Major!Local!Road!Improvement:!West!Somerset!Bypasses!(A358!and!A39).! A!strategic!highway!provision!is!required!to!improve!connectivity!and!reliability!of!linkages!to!the!M5! from!West!Somerset!to!support!the!economic!success!of!the!area.!
Previous!proposals!include!a!string!of!bypasses!along!the!corridor!to!reduce!congestion!and!improve! journey! times,! ! including! bypasses! for! Williton,! Washford/! Billbrook,! Carhampton,! Dunster! and! Porlock.!
Governance:!!As!the!scheme!would!be!a!Local!Major!Transport!Scheme!it!would!need!to!be!subject! to!an!early!assessment!and!prioritisation!against!other!potential!major!transport!schemes!in!the!LEP! area.!Subject!to!suitable!prioritisation!by!the!LTB!and!the!LEP!Board,!a!business!case!would!then!be! required.!!!SCC!Highways!would!be!required!to!progress!the!early!assessment!and!any!subsequent! business!case,!scheme!design!and!secure!construction!contract.!
Resources,!expenditure!and!ability!to!attract!investment:!Initial!design!work!required!to!clarify!cost! implications.!Bypass!scheme!proposals!were!last!costed!at!a!very!conceptual!level!in!2002!within!the!! ‘Western!Somerset!Economic!Development!and!Access!Strategy’!and!totalled!approximately!£22m! (excluding!Dunster!&!Porlock).!
5.3.5 Local!Road!Improvement:!Yeovil!Eastern!Corridor! Improvements! to! highway! infrastructure! between! Penmill! Roundabout! in! the! East! and! the! Reckleford!Roundabout!in!the!west.!Associated!access!needed!to!strategic!town!centre!employment! and!regeneration!sites.!!Up!to!400!jobs!associated!with!eventual!end!user,!but!the!real!key!is!the! vitality!that!would!be!added!to!the!town!centre!where!many!more!jobs!will!be!created!in!the!high! percentage!of!closed!retail!units!and!many!jobs!safeguarded!for!the!longLterm.!
! ! ! ! ! ! 17! ! Deliverability!of!the!remainder!of!the!Eastern!Corridor!Scheme!is!fragmented.!The!far!eastern!part! (Penmill!Roundabout!and!St!Michael’s!Avenue!Junction)!now!has!a!private!sector!market!solution.!!
The! Department! for! Transport! provided! £3.06m! towards! the! scheme! in! 2012! based! on! cost! estimates! provided! to! them! for! delivering! improvements! to! Horsey! Roundabout,! Hospital! Roundabout,!Fiveways!Roundabout!and!pedestrian/!cycle!link!improvements.!Other!elements!of!the! corridor!scheme!had!been!assumed!to!be!developer!funded!prior!to!recent!viability!concerns.!
The!Market!Street!Junction!will!need!to!be!forward!funded!to!deliver.!The!sites!it!will!service!include! the! Old! Cattle! Market! and! the! rear! access! to! the! Quedam! Shopping! Centre.! Both! sites! are! strategically!vital!but!need!expensive!highway!infrastructure!solutions.!An!‘all!movement’!junction!is! considered!to!be!required!at!Market!Street/!A30!to!access!the!sites!and!needs!to!be!forwardLfunded! due! to! site! viability! issues.! ! The! current! junction! is! not! of! a! suitable! standard! and! alignment! to! accommodate!the!additional!development!traffic.!
The!corridor!improvements!would!improve!traffic!flow!along!the!remainder!of!the!Eastern!Corridor,! noting! that! at! market! street! new! traffic! turning! movements! would! be! accommodated;! provide! access!to!parking!and!unlock!one!unviable!strategic!site!and!one!unviable!new!access!point!to!town! centre!
Deliverability:!extremely!good!
Costs:!will!need!refining!!
Negotiations!continue!with!all!land!and!property!owners.!
SSDC!are!undertaking!further!viability!assessments!for!various!components!of!the!scheme.!
Past!development!proposals!have!either!been!rejected!through!the!development!control!process!or! have!been!assessed!as!unviable!by!prospective!developers.!
5.3.6 Local!Road!Improvement:!Millfield!Link!Road,!Chard! Traffic!modelling!carried!out!for!each!phase!of!the!Chard!Regeneration!Scheme!(CRS)!reaffirms!that! significant!new!infrastructure!is!needed!to!improve!linkages!around!the!eastern!edge!of!the!town.! The!only!piece!of!infrastructure!that!unlocks!significant!early!growth!capacity!at!acceptable!cost!is! the!Millfield!Link!between!the!A30!and!the!Millfield!Industrial!Estate.!!This!linkage!needs!to!come! forward! as! a! priority! as! a! first! step! towards! the! implementation! of! the! wider! plan.! The! link! is! a! significant!piece!of!road!infrastructure!and!the!accompanying!development!phase!does!not!provide! sufficient! surplus! value! for! it! to! be! delivered! by! the! private! sector.! ! In! any! case,! the! link! is! so! strategically!important!as!a!means!to!unlock!future!development!phases!its!timely!delivery!should!be! assured!by!strong!public!sector!leadership.!!
On!current!build!out!rates!the!Millfield!Link!will!need!to!be!built!in!approximately!2L3!years! (NB:! stated!in!2010)!to!ensure!the!growth!of!Chard!is!not!again!curtailed.!!If!implemented!together!with! MOVA!Signalling!improvements!(update:!MOVA!has!now!been!installed,!Jan!2012)!at!the!Convent! junction!its!construction!will!create!the!capacity!for:!
Residential!Units:! ! ! ! ! ! ! 18! ! • 167!dwellings!L!South!of!A30!Crewkerne!Road! • 29!dwellings!L!North!of!Hudson!Drive!off!Cook!Avenue! • 153!dwellings!L!South!east!of!Millfield!Industrial!Estate! • 97!dwellings!L!Town!Centre!
Employment:!
• 1.242!hectares!L!Employment!Land!East!of!Millfield!Industrial!Estate! • 0.4326!hectares!L!Retail!Land!East!of!Millfield!Industrial!Estate!
The! delivery! of! the! Millfield! Link! is! a! tangible! project! that! will! deliver! housing! and! employment! outputs!that!are!likely!to!attract!public!sector!funding.!Its!delivery!will!create!momentum!and!build! confidence.!!The!Millfield!Link!can!be!considered!as!either!a!capital!project!with!100%!public!sector! funding! with! clawLback! achieved! through! subsequent! phases,! or! as! an! exercise! in! gap! funding! a! private!sector!led!initial!phase.!
Further!details!are!provided!at!http://www.southsomerset.gov.uk/chardregen!
5.3.7 Local!Road!Improvement:!Colley!Lane!Southern!Access!Road! The!Bridgwater!Colley!Lane!Southern!Access!Road!(CLSAR)!will!provide!access!into!the!Colley!Lane! Industrial!Estate!from!the!South.!The!new!road!will!run!in!a!southerly!direction!from!Parrett!Way!to! Marsh! Lane! with! a! new! roundabout! at! the! existing! Marsh! Lane/Showground! Road! junction.! The! scheme!is!required!to!provide!relief!and!additional!capacity!on!Taunton!Road!and!Broadway!which!is! a! key! access! route! into! Bridgwater! from! the! south! and! will! be! particularly! important! in! reducing! heavy!goods!traffic!on!those!roads.!!The!estimated!cost!of!the!scheme!is!£8L£10m.!The!proposals!are! being!primarily!funded!through!contributions!towards!transport!infrastructure!in!South!Bridgwater,! secured!through!legal!agreements!with!developers.!!
Discussions!and!negotiations!with!land!and!property!owners!are!nearing!completion!and!discussions! are!underway!with!developers!regarding!release!of!funds!required!under!the!s106!legal!agreements.!!!! Compulsory!purchase!of!land!is!required!to!deliver!the!scheme!and!CPO!processes!can!commence! once!funding!discussions!are!completed.!!
5.4 Rail!
5.4.1 Rail:!Station!upgrades!! Stations!play!an!import!part!in!rail!travel!and!have!a!big!impact!on!how!enjoyable!(or!otherwise)!the! experience!is!and,!therefore,!how!likely!it!is!to!be!attractive!to!travellers.!Improved!rail!facilities!have! economic!benefits!as!gateways!linked!to!attracting!inward!investment,!with!larger!projects!playing!a! key!role!in!town!centre!regeneration.!!
In! order! to! assess! the! ability! of! Somerset’s! stations! to! deliver! this! service,! each! station! has! been! assessed! against! the! minimum! requirements! set! out! in! the! ‘Better! Rail! Stations’! report! commissioned!by!the!Secretary!of!State!for!Transport!in!2009.!!These!requirements!were!designed! to!set!a!standard!for!what!passengers!can!expect!from!different!types!of!station.!Information!was! collected! through! site! visits,! from! the! National! Rail! Enquiries! and! Train! Operators’! websites! and! through!consultation!with!stakeholders.! ! ! ! ! ! ! 19! ! Many!stations!in!Somerset!are!lacking!basic!facilities!and!do!not!provide!an!attractive!environment! for!waiting!passengers.!Moreover,!some!stations!are!not!accessible!for!users!with!mobility!issues!or! with!large!luggage!and!prams.!Work!is!needed!to!ensure!these!stations!are!accessible!for!all!users!so! that! if! stations! are! unmanned,! people! can! still! travel! freely! on! trains.! A! schedule! of! required! improvements! at! each! station! has! been! prepared! and! is! available! to! form! a! programme! of! investment.!Individual!improvements!can!be!prioritised!based!upon!the!relative!impact!on!economic! growth!in!the!area.!
Taunton! and! Bridgwater! rail! stations! are! the! subject! of! larger! transformational! regeneration! projects.!A!masterplan!for!Taunton!railway!station!regeneration!area!was!finalised!by!Network!Rail! in!April!2012!to!create!a!new!gateway!into!Taunton!linking!with!new!employment!development!at! Firepool.!!The!masterplan!proposes!a!new!station!entrance!and!booking!hall,!new!station!concourse,! café!and!visitor!facilities,!bus!coach!interchange,!commercial!development,!improved!parking,!office! units,!and!opportunities!for!housing.!!!
Proposals! for! improvements! to! Bridgwater! station! are! being! developed! as! part! of! the! Bridgwater! celebration! mile! feasibility! study! and! will! improve! access,! interchange! and! parking! as! well! as! enhancing!the!public!realm!in!the!area!as!a!gateway!to!the!town.!Access!by!foot!and!by!bike!is!poor! particularly!from!the!east!as!there!is!no!step!free!crossing!of!the!line!close!to!the!station.!Step!free! access!is!only!possible!by!using!the!highway!network!which!results!in!a!significant!detour!and!this! matter!requires!addressing!as!a!priority.!
5.4.2 Rail:!Dualling!of!rail!lines! Further!information!required.!
5.4.3 Rail:!Mainline!rail!electrification! Network!Rail's!'Network!Rail!Utilisation!Strategy:!Electrification'!was!followed!by!the!Government's! announcement,! in! 2011,! of! the! electrification! of! the! Great! Western! Mainline.! This! (and! the! associated!Intercity!Express!Programme,!which!will!provide!new!trains)!will!see!electrified!services! between! London! and! Bristol! and! on! the! Berks! and! Hants! line.! This! electrification! has! significant! benefits! but! would! not! extend! into! Somerset.! This! could! put! the! County! at! a! competitive! disadvantage!compared!to!electrified!areas!and!may!affect!connectivity.!The!RUS!suggests!extending! electrification!into!Somerset!could!have!significant!benefits.!
The! South! West! Rail! Task! Force! has! commissioned! a! study! to! establish! a! business! case! for! electrification! of! the! mainline! to! Plymouth! and! also! onwards! to! Penzance.! Several! alternative! scenarios!are!being!tested!within!the!study.!
5.4.4 Rail:!Faster!services!to!Bridgwater! Bridgwater! Station! is! served! by! the! Cardiff! to! Taunton! train! with! one! service! per! hour! in! each! direction!for!the!majority!of!the!day.!Average!time!to!Bristol!Temple!Meads!is!53!minutes.!There!are! between! 5! and! 7! stops! depending! upon! the! time! of! day.! This! compares! with! a! drive! time! of! approximately!40!minutes.!
Bridgwater!Station!sees!approximately!287,000!journeys!per!year!to!and!from!the!station.!60,000!of! these!trips!end!at!Bristol!Temple!Meads.!For!context!this!compares!to!approximately!1.3!million!rail! ! ! ! ! ! ! 20! ! journeys!to!and!from!Taunton!Station!with!230,000!of!those!to!Bristol!Temple!Meads.!Taunton!has!a! population!catchment!within!5km!of!its!railway!station!only!28%!greater,!yet!generates!78%!more! journeys! than! Bridgwater! per! annum.! Whilst! this! is! clearly! due! to! a! better! level! of! service! from! Taunton!it!highlights!that!there!is!significant!potential!to!increase!demand!for!rail!at!Bridgwater.!
The!delay!to!the!announcement!of!the!Greater!Western!Franchise,!which!covers!three!of!the!four! train!routes!in!Somerset,!means!there!is!ongoing!uncertainty!around!what!type!of!services!might!be! run!in!the!future.!This!was!due!to!start!in!April!2013!but!this!has!now!been!put!back!to!July!2016.!
What!is!required!to!achieve!potential?!!
• 2!/!3!trains!per!hour!serving!trips!to!Weston!Super!Mare!and!Bristol!Northbound!and!Taunton!and! Exeter!southbound!! • Journey!time!to!Bristol!reduced!to!under!40!minutes!as!a!minimum!but!ideally!closer!to!30!minutes!! • Additional!rolling!stock!of!the!correct!type!(capable!of!75mph)!to!deliver!additional!services!! • Permission!from!Network!Rail!for!TOC!to!utilise!rail!path!availability!! • Interface!with!Cross!County!intercity!services!! • Possible!revenue!support!for!3!years!until!service!is!proven!to!be!commercially!viable!
5.5 Public!and!Community!Transport!
5.5.1 Improve!access!to!services!through!the!development!of!a!range!of!transport!solutions!inc! Public!Transport! Somerset! is! a! challenging! area! in! which! to! provide! viable! and! sustainable! passenger! transport! services.!!Owing!to!its!rural!nature!it!has!a!high!car!ownership!and!usage!which!leads!to!congestion! ‘hot!spots’!at!peak!hours.!!The!diverse!array!of!settlements!ranging!from!small!rural!villages!to!the! densely! populated! urban! areas! of! Bridgwater,! Taunton! and! Yeovil! provide! a! difficult! market! for! commercial!bus!service!operations.!!!
The!lack!of!good!public!transport!connections!in!rural!parts!of!Somerset!can!lead!to!exclusion!(e.g.! from! the! labour! market).! Retaining! rural! accessibility! without! incurring! undue! revenue! costs! of! supporting!unsustainable!rural!bus!services!is!a!key!challenge!for!the!Council.!
A!Smart!Rural!Travel!project!is!being!developed!including!use!of!smartphone!technology!(providing! both!market!intelligence!data!and!a!mechanism!to!request!transport)!to!tackle!these!issues!with!the! following!aims:!
• Improve!operator!knowledge!of!potential!market! • Improve!offer!and!choice!to!customer! • Stimulate!demand! • Achieve!commercial!viability! • Improve!access!to!a!range!of!travel!choices!and!information! • Improve!coordination!
The!project!will!bid!for!Local!Sustainable!Travel!revenue!funding!for!2015/16!(up!to!£1m!available!for! each!authority!based!on!a!competitive!bid)!with!a!private!sector!telecoms!partner!to!enable!research! and!development!and!proof!of!concept!via!implementation!in!a!pilot!area.!!
! ! ! ! ! ! 21! ! 5.5.2 Sustainable!transport!improvements!(Walking,!Cycling)! Many!development!proposals!in!Somerset!particularly!in!the!larger!towns!assume!that!a!significant! proportion!of!trips!to!and!from!the!development!will!be!undertaken!on!foot!or!by!cycling!to!manage! down!the!potential!congestion!impacts!of!new!development.!!!Investment!is!needed!to!ensure!that! critical!walking!and!cycling!links!are!provided!in!order!to!realise!the!full!economic!potential!of!the! growth!areas.!!The!economic!benefits!of!improved!health!due!to!increased!levels!of!physical!activity,! and!reduced!numbers!of!cycle!casualties!through!improved!safety!are!also!considerable!in!the!UK! economic!context.!!
Somerset!County!Council!has!published!transport!strategies!for!the!main!growth!areas!of!Taunton,! Bridgwater,! Yeovil! and! Frome! which! contain! proposed! pedestrian! and! cycle! improvements.! ! A! detailed!improvement!programme!can!be!prepared!through!identifying!the!most!critical!new!routes! and!facilities!which!best!facilitate!economic!growth!in!those!areas!within!a!given!funding!envelope.!! A!specific!cycle!safety!scheme!linking!Cannington!to!Hinkley!Point!C!is!also!important!in!the!context! of!supporting!the!Hinkley!construction!project.!!!
5.5.3 Bus!and!infrastructure!scheme:!NE!Taunton! This!package!of!measures!is!critical!to!the!planned!delivery!of!the!major!urban!extension!at!Monkton! Heathfield.! ! Monkton! is! an! extremely! large! and! complex! urban! extension! which! will! ultimately! provides!homes!and!jobs!for!more!than!10,000!people,!together!with!4!new!schools,!a!major!district! centre!and!two!smaller!local!centres,!substantial!amounts!of!new!employment!land,!new!transport! infrastructure,!a!new!1,000!space!park!and!ride!facility!and!other!key!infrastructure.
It!is!broadly!comparable!in!size!and!complexity!with!Cranbrook!at!Exeter!and!Sherford!at!Plymouth! and!its!significance!for!the!future!growth!and!development!of!Taunton!is!arguably!greater!in!terms! of! the! scale! of! planned! growth! compared! with! the! existing! settlement.! It! is! by! some! margin! the! single!largest!planned!mixedLuse!urban!extension!in!Somerset.
Monkton! is! a! development! with! developer! consortia! already! in! place! and! land! ownership! issues! largely! resolved.! Development! is! already! underway! and! the! delivery! of! the! associated! strategic! transport!measures!is!critical!to!maintaining!rates!of!delivery!and!growth.
Taunton! Deane! Borough! Council! has! prioritised! the! delivery! of! these! transport! measures! highly! within!its!draft!‘section123’!list!for!the!purposes!of!CIL.!The!Council!has!also!recently!approved!a!sum! of!£375,000!towards!planned!improvements!at!Creech!Castle!Roundabout.!This!would!be!available! for!a!wider!scheme!package,!subject!to!any!necessary!further!approval.!This!local!contribution!can! only!provide!a!relatively!modest!amount!of!match!funding!and!further!‘external’!funding!is!essential! to!secure!delivery.
Many!of!these!measures!are!capable!of!early!delivery;!with!much!of!the!required!land!already!in! ‘public!‘ownership.
5.5.4 Frome!town!centre!linkages!–!cycle/footpath! Description!of!activity:!Provision!of!cycleLpath/footpath!linking!a!key!housing!development!site!to! the!town!centre! and!enhancing!the!sustainability!of!new!development!and!supporting!local!town! centre!expenditure.!!! ! ! ! ! ! ! 22! ! Opportunity:!The!Southfield!Farm/Wallbridge!site!on!the!edge!of!Frome!town!centre!is!allocated!for! new!housing!development!(400!L!450!units).!A!key!objective!is!to!secure!sustainable!transport!links! to!the!town!centre!including!a!cycle!way/footpath!over!the!railway.!
Barriers:!There!are!emerging!concerns!over!potential!“market!failure”!to!deliver!the!wider!strategic! linkages!for!long!term!sustainable!development!objectives!in!the!current!economic/financial!climate.!
Delivery!plan:!The!housing!site!has!developer!interest!and!a!planning!application!is!expected!shortly!
Governance:!The!scheme!could!be!structured!to!be!delivered!by!the!developer!(with!public!funding)! or!could!be!run!separately!by!SCC!Highways!and!Mendip!DC.!
Timing:!Delivery!in!2015/16!to!complement!the!housing!provision!
Resources,! expenditure! and! ability! to! attract! investment:! The! project! involves! negotiation! with! Network!Rail!–!potential!costs!could!be!in!the!order!of!£1!L!£1.2!million!
Geographical!coverage:!Frome!town!centre!–!a!key!growth!hub!in!the!Somerset!Growth!Plan!!
Outputs:!Support!for!the!sustainable!infrastructure!link!would!facilitate!the!earlier!development!of! up! to! 450! new! homes! will! be! provided! (30%! affordable)! and! a! primary! school! supporting! rural! economic!growth.!
Outcomes! and! economic! benefits:! Unlocking! the! housing! development! will! stimulate! some! £30! million!of!private!construction!investment.!
Next!steps:!OnLgoing!planning!negotiations!to!determine!issues!and!implications!
5.5.5 Strawberry!line!–!cycle!route!extension! The!Strawberry!Line!is!a!project!backed!by!local!Community!Groups,!Councillors!&!Politicians!with! the!aim!of!converting!the!old!railway!line!from!Clevedon!to!Cranmore!into!a!network!of!safe!paths! for!walkers,!cyclists,!families!&!residents!to!enjoy.!!
Opportunity:!Part!of!the!Mendip!route!–!Wells!to!Dulcote!is!already!open!–!and!a!feasibility!study!is! currently!underway!by!Sustrans!into!the!opening!of!the!next!phase!to!Shepton!Mallet!creating!a!high! quality!walking!and!cycling!route!from!the!two!urban!areas.!
Barriers:!Establishment!of!sustainable!pathways!between!market!towns!is!not!a!commercially! attractive!or!viable!proposition!for!the!private!sector.!
Delivery!plan:!Delivery!partners!are!established!and!engaged!in!a!rolling!programme!of!development! subject!to!funding.!
Timing:!The!route!feasibility!study!is!due!to!be!completed!December!2013!and!detailed!planning!will,! therefore,!commence!2014.!
Resources,!expenditure!and!ability!to!attract!investment:!This!is!clear!market!failure!project!and! subject!to!public!sector!investment!to!create!high!quality!sustainable!linkage!between!urban!centres! in!rural!Somerset!supporting!sustainable!tourism!and!investment.!
! ! ! ! ! ! 23! ! Geographical!coverage:!County!wide!connectivity!
Outputs:!X!km!of!high!quality!cycleway!and!footpath.!!Sustainable!construction!benefits!
Outcomes!and!economic!benefits:!Contribute!to!safer!pathways!and!healthy!living!and!support!for! rural!tourism!facilities!and!promotion.!
Next!steps:!Review!feasibility!study.!!Scope!project!plan!and!cost!analysis!!
5.6 Sites!
Opportunity:! Significant! growth! in! economic! activity! will! require! new! employment! sites! and! premises!to!accommodate!new!start!businesses,!growth!in!existing!businesses!and!inward!investors.!! This!will!be!particularly!important!in!terms!of!accommodating!major!growth!related!to!opportunities! such!as!Hinkley!Point!C.!!!
Limited!quantitative!evidence!has!been!provided,!but!anecdotal!evidence!suggests!that!opening!up! major! employment! sites! will! lead! to! development! of! new! premises! and! creation! of! new! jobs! in! Somerset.!!This!includes!reference!to!specific!companies!where!growth!has!been!enabled!in!the!past! and!companies!facing!constraints!of!growth!due!to!lack!of!appropriate!supply!now.!
Barriers:!It!is!suggested!that!lack!of!major!strategic!employment!site!is!restricting!growth!in!certain! places! in! Somerset.! ! Undoubtedly! there! is! some! unLmet! demand,! but! this! needs! to! be! tested! thoroughly.!
Description:! Investment! in! enabling! infrastructure! which! will! allow! developers! to! deliver! major! employment!sites!and!new!employment!premises!
Resources,!expenditure!and!ability!to!attract!investment:!Capital!funds!required.!!May!be!potential! for!repayment!in!the!longerLterm,!opening!up!the!opportunity!for!a!revolving!fund!of!some!sort.!
SLGF.!!Potential!for!Growing!Places!Fund!to!be!used.!!Need!to!speak!to!HCA!about!any!other!funds.!
Geographical!coverage:!This!is!a!national!issue,!so!this!could!be!addressed!at!any!level!from!national! to!panLLEP,!to!LEP.!!Any!fund!or!mechanism!is!likely!to!be!delivered!at!a!level!higher!than!Somerset! alone,!although!the!investments!that!it!makes!will!be!local!and/or!site!specific.!
Value!for!money:!Large!amounts!of!capital!funds!required.!!This!will!ultimately!leverage!significant! private!sector!funding!which!will!invest!in!delivering!the!sites!and!premises.!
Outputs:!Delivery!of!sites!leads!to!delivery!of!employment!space,!which!leads!to!the!creation!of!jobs.!! “Build!it!and!they!will!come”!
Outcomes!and!economic!benefits:!It!will!be!important!to!ensure!that!this!generates!net!additional! employment!and!doesn’t!just!displace!employment!from!existing!locations.!!However,!relocation!of! existing!businesses!that!enables!growth!is!a!valid!output!
! ! ! ! ! ! 24! ! 5.6.1 Site:!Monkton!Heathfield!(22!Ha!B1b,!B1c,!B2!and!B8)! Mixed!use!urban!extension!of!up!to!4,500!dwellings,!22.5!hectares!of!employment!land!and!mixedL use!district!centre!and!associated!infrastructure.!
The!Section!106!Agreement!incorporates!a!requirement!to!deliver!the!Western!Relief!road!after!the! occupation!of!651!dwellings.!!There!are!delivery!issues!facing!the!Western!Relief!road!and!the!cost!of! purchasing! the! land.! ! The! development! consortium! claims! that! scheme! viability! is! a! serious! impediment!to!the!delivery!of!the!site.!!The!lack!of!progression!with!the!Western!Relief!Road!does! represent! a! significant! barrier/threat! to! the! delivery! of! the! remaining! 3750! dwellings! and! the! employment!land.!
LIF! funding! through! HCA! is! being! utilised! to! explore! delivery! options! and! progress! a! planning! application!for!the!Western!Relief!Road.!
5.6.2 Site:!Comeytrowe!urban!extension! Proposed!allocation!for!mixed!use!development!including!up!to!2,000!dwellings.!
This!site!is!being!progressed!by!a!consortium!of!developers!and!a!planning!application!is!anticipated! in! 2014.! ! There! is! still! uncertainty! surrounding! the! required! transport! solutions! for! the! site! and! further! work! is! required.!!Ongoing! discussions! with! developers! and! Somerset! County! Highways! team.!
5.6.3 Staplegrove!urban!extension! Proposed!allocation!for!mixed!use!development!of!between!500L1,500!dwellings.!
This! site! is! being! progressed! by! a! developer.! ! There! is! still! uncertainty! surrounding! the! required! transport!solutions!for!the!site!and!the!overall!impact!this!could!have!on!the!final!dwelling!allocation! for!the!site.!
Ongoing!discussions!with!developers!and!Somerset!County!Highways!team.!
5.6.4 Site:!Walford!Cross!(10!Ha!long—term!release)! Further!information!required.!
5.6.5 Site:!North!East!Bridgwater! 235!acre!regeneration!site!next!to!the!M5!and!close!to!Junction!23.!Consented!for!2,000!homes!and! 110,000!sq!m!of!employment!space!
400! homes! and! initial! businesses! on! site,! including! 800,000! sq! ft! Morrisons! distribution! centre.!! However,! site! currently! slowed! down! due! to! wider! market! conditions.! Potential! for! housing! and! commercial!space!incentives!to!invigorate!second!phase!of!development.!
Housing! funding! to! pump! prime! phase! two! of! development.! Assistance! for! commercial! activity,! building!on!the!RGF!secured!by!Mulberry.!
! ! ! ! ! ! 25! ! 5.6.6 Site:!Bridgwater!Gateway! 45!acre!business!park!at!Junction!24!of!the!M5!focused!on!Hinkley!Supply!Chain!and!low!carbon! businesses!
Consented!business!park,!the!site!is!subject!to!a!significant!level!of!pump!priming!to!install!transport! infrastructure.!As!such,!sunk!requirement!and!risk!remain!challenging.!However,!site!is!progressing,! with!first!significant!development!consented.!!!
Consented!and!first!developments!due!to!begin!shortly.!Further!grant!and!pump!priming!would!be! beneficial,!but!not!site!critical.!!
5.6.7 Site:!Isleport! Further!information!required.!
5.6.8 Site:!Bath!&!West!Showground! Opportunity:!100!acre!major!redevelopment!opportunity!–!capacity!for!1000!plus!jobs!
Barriers:!A!commercially!viable!scheme!may!be!possible!but!may!not!deliver!the!mix!of!uses!most! desirable! for! growth! agenda! –! potential! to! incorporate! skills! development/training,! agricultural! focused!HE!and/or!innovation!centre!(Food!&!Drink?)!and!business!support.!!!
Activity:!Major!redevelopment!opportunity!that!provides!a!range!of!commercial!development.!!Links! to!food!and!drink!and!tourism!sectors!as!well!as!potential!for!other!employment!uses,!retail,!leisure! etc.! Possible! rural! enterprise! zone! with! LDO! and! business! rate! relief.! ! See! http://www.bathandwest.com/regeneration/160/!
Delivery!plan:!Headline!masterplan.!!Developer,!construction!partner!and!bank!involved.!!Early!stage! interaction!with!LEP.!
Governance:!Developer,!MDC!
Outputs:!Potential!to!accommodate!over!1,000!jobs!!
5.6.9 Site:!Innovia,!Bridgwater! 132!Hectare!site!with!potential!for!housing!and!other!usage!
Previous!site!of!Innovia!Films,!now!in!the!ownership!of!EDF!Energy.!Potential!for!significant!housing! and!other!end!uses,!if!market!can!be!incentivised!to!invest.!EDF!keen!to!see!site!come!forward,!but! have! no! plans! to! do! so! at! significant! cost! to! the! firm! given! wider! commitments.! Will! require! infrastructure!investment!
Housing!funding!to!pump!prime!site!and!bring!forward!development.!
5.6.10 Site:!Old!Gas!Works!Site,!Tangier,!Taunton! Planning!permission!for!225!flats.!
The!site!has!abnormal!issues!relating!to!contamination.!!The!site!has!also!had!to!make!a!considerable! contribution!to!the!strategic!flood!alleviation!scheme!for!the!town!centre.!!The!collapse!of!the! ! ! ! ! ! ! 26! ! apartment!market!has!rendered!the!scheme!unviable!for!a!number!of!years!but!an!alternative! scheme!is!being!explored.!
Ongoing!discussions!with!developers.!
5.6.11 Site:!Frome!Commerce!Park! Further!information!required.!
5.6.12 Site:!Woodlands,!Bridgwater! Further!information!required.!
5.6.13 Yeovil!Sites! Yeovil!has!four!strategic!site!opportunities!to!support!long!term!and!sustainable!employment!and! residential! growth.! These! opportunities! have! real! potential! to! lever! in! significant! private! sector! investment,! jobs! and! housing.! But! to! release! this! potential,! some! significant! levels! of! transport! infrastructure!improvements!are!required!to!alleviate!congestion!and!dramatically!improve!access!to! the!sites!by!all!modes.!The!cost!of!meeting!the!necessary!infrastructure!improvements!means!that! the!commercial!development!of!the!four!major!development!sites!are!currently!not!viable!and!able! to!be!met!by!the!private!sector!alone.!To!enable!their!delivery,!an!application!by!the!Abbey!Manor! Group! and! South! Somerset! District! Council! was! made! for! Growing! Places! Fund! investment! (this! funding! bid! was! unsuccessful).! Funding! is! required! at! an! early! stage! to! unlock! the! following! four! sites:!
• Bunford!Park! • Lufton!2000!Business!Park! • Lufton!Key!Site! • Thorne!Lane!Key!Site!(a.k.a.!Brimsmore!Key!Site)!
To! open! up! the! above! employment! and! residential! developments! and! make! them! ready! for! occupation,!a!package!of!road!and!other!infrastructure!is!required!to!facilitate!the!developments!of! these!turnkey!projects:
• Element! 1! L! Copse! Road/Western! Avenue! Junction.! ! The! scheme! provides! improvements! to! a! surcharged!priority!junction!serving!the!Lufton!Employment!Area.!The!planning!application!for!this! infrastructure!improvement!was!submitted!in!early!February!2012. • Element!2!L!Western!Avenue!Crossing.!!The!scheme!provides!a!pedestrian!/!cycle!link!between!the! Houndstone!Business!Park!and!the!large!Abbey!Manor!Park!residential!area,!which!is!severed!by!the! very!busy!Western!Avenue. • Element! 3! L! Bluebell! Road! Roundabout.! ! Improvements! to! the! pedestrian/cycle! crossing! at! this! roundabout!will!form!an!important!part!of!the!West!Yeovil!cycle!path!network!by!linking!the!existing! and!proposed!residential!developments!at!Lufton!and!Alvington,!and!the!existing!employment!area!at! Alvington,!with!the!principal!eastLwest!cycle!path!network!into!the!town!centre!along!the!north!of!the! Westland!Airfield. • Element!4!L!(i)!Westlands!Roundabout;!(ii)!Bunford!Park!Access,!and!(iii)!Lysander!Road!Roundabout.!!
! ! ! ! ! ! 27! ! 5.6.14 Site:!Brimsmore,!Yeovil! Thorne!Lane!Key!Site!(a.k.a.!Brimsmore!Key!Site)!is!a!23.7!hectare!residential!development.!The!first! phase! of! this! development! received! planning! permission! from! South! Somerset! District! Council! in! November!2011.!This!is!for!298!dwellings.!This!land!is!allocated!in!the!2006!South!Somerset!Local! Plan!for!residential!development.!Outline!planning!permission!was!granted!for!the!whole!of!the!site! in!2007!providing!for!in!total!around!830!dwellings,!including!35%!affordable!housing.!The!site!is!one! of!three!key!housing!sites!in!the!2006!adopted!Local!Plan!which!are!vital!to!meeting!identified!local! housing!demand.!It!is!also!identified!as!a!key!site!in!Somerset’s!Local!Investment!Plan:!2010L2015.
5.6.15 Site:!Bunford!Park,!Yeovil! Bunford!Park!will!be!a!15!hectare!high!quality,!masterLplanned,!business!park!set!within!a!mature! landscaped!parkland!setting!on!the!south!western!edge!of!Yeovil.!The!site!is!the!biggest!employment! site!in!the!adopted!Local!Plan,!which!is!allocated!for!B1!employment!uses!and!held!by!Abbey!Manor! under!an!option.!Outline!planning!permission!was!granted!in!March!2011!for!up!to!600,000!sqft!of! B1!employment!space!which!could!create!6,640!jobs!in!total,!including!5,170!jobs!in!B1!employment! space,!which!has!planning!permission,!plus!potentially!around!another!1,470!B2!employment!space! jobs.!These!jobs!are!expected!to!be!wide!ranging!from!a!variety!of!office!based!jobs,!through!to!light! manufacturing,!logistics!and!retail!and!leisure!jobs!in!the!park’s!central!facilities.!!
Note!that!the!schemes!identified!in!5.6.13,!14!and!15!are!linked!to!the!local!road!scheme!at!5.3.1
5.6.16 Yeovil!town!centre!regeneration:!car!parking!and!cattle!market! Further!information!required.!
Note!that!this!scheme!is!linked!to!local!road!scheme!5.3.2!
5.6.17 Site:!Chard!Eastern!Development!Area!(CEDA)! This!project!is!a!main!component!of!the!Chard!Regeneration!Scheme!(CRS).!!The!site!is!included!in! the!Local!Plan!and!is!allocated!for!strategic!growth!to!provide!the!following!development!within!the! plan!period!(up!to!2026)!and!beyond;!
• Approximately!3,207!dwellings!(1,700!by!2026).! • Approximately!19!hectares!employment!land!(13!hectares!by!2026).! • 2!primary!schools!(within!and!beyond!2026).! • 4!neighbourhood!centres!(within!and!beyond!2026).! • Highway!infrastructure!and!improvements.! • Sports!and!Open!Space!provision.!
One!of!the!key!issues!to!be!addressed!to!facilitate!the!identified!levels!of!growth,!is!that!of!highways! capacity.! Traffic! problems! are! a! major! concern,! with! certain! elements! of! the! town’s! highway! network! at! or! near! capacity.! To! resolve! these! issues! and! to! accommodate! further! growth,! an! alternative!route!between!the!A358!to!north!and!south!of!the!town!incorporating!the!A30!to!the! east!is!stated!as!being!required.!!The!CRS!sets!out!a!phasing!sequence!which!incrementally!increases! the!capacity!of!the!highways!infrastructure!to!accommodate!traffic!flows!as!growth!occurs.!
The!infrastructure!phasing!sequencing!as!set!out!in!the!CEDA!is!as!follows;! ! ! ! ! ! ! 28! ! i.!Improvements!to!the!A358/A30!Convent!signals!in!the!town!centre!and!East!End!Gateway.! ii.!A!new!link!between!the!A30!near!Oaklands!House!to!the!end!of!Millfield.! iii.!A!connection!sought!from!Millfield!to!Forton!Road.! iv.!Linkages!north!from!the!A30!using!Oaklands!Avenue!and!involving!creation!of!a!new/upgraded! route!around!the!north!east!of!the!town!to!the!A358!Furnham!Road.! v.!Completion!of!the!link!between!Forton!Road!and!the!A358!Tatworth!Road.!
A! forward! funding! issue! complicated! by! a! large! (but! willing)! landowner! consortium.! Stalled! since! 1996! despite! protracted! negotiations! –! a! key! issue! exists! at! Millfield! Link! (in! single! private! ownership)!and!other!access!points!which!will!have!onerous!infrastructure!costs.!!Cost!of!providing! road!and!services!to!the!component!sites!are!creating!viability!issues.!!
Costs:!all!available!(2010)!but!will!need!updating!
Landowner!consortium!and!project!governance!are!at!an!advance!stage.!
Deliverability;!this!is!a!highly!deliverable!project!with!the!scheme!developed!and!adopted!within!the! Chard!Regeneration!scheme.!!Extensive!documentation!with!web!links!provide!here:! http://www.southsomerset.gov.uk/chardregen!
5.6.18 Site:!Crewkerne!Key!Site! Key!Site!allocated!to!include!92!affordable!homes!and!approx.!20!acres!of!employment!land.!The! employment!land!!being!the!entire!allocation!for!the!plan!period!
Highway!infrastructure!costs!associated!with!providing!a!link!road!through!the!key!site!are!viewed!as! high.!
Developer!now!views!the!Section!106!costs!as!onerous!and!seeks!permission!to!increase!the!number! of!dwellings!whilst!reducing!the!employment!allocation.!!Negotiations!with!developer!continue!but! new!planning!application!with!increased!housing!allocation!is!anticipated.!
The!key!site!employment!land!is!currently!being!marketed!by!developer.!!Retaining!a!realistic!longL term!supply!of!employment!land!will!be!a!key!aim!for!Crewkerne!
5.6.19 Site:!Minehead!old!hospital!site!regeneration! Further!information!required.!
5.6.20 Site:!Wincanton!employment!land! Additional!employment!land!to!meet!the!requirements!of!the!Local!Plan.!!Various!sites!are!identified! but! existing! sites! are! not! currently! being! taken! up! in! the! open! market.! ! Requirement! for! land! constrained!by!lack!of!demand!in!the!current!economic!climate!and!it!is!important!that!a!longer!term! view!is!taken.!!!
! ! ! ! ! ! 29! ! 5.6.21 Site:!Castle!Cary!employment!land! Additional!employment!land!to!meet!the!requirements!of!the!Local!Plan.!!Various!sites!identified.!! Local! business! expansion! anticipated! to! drive! development! although! infrastructure! costs! will! ultimately!determine!viability.!
5.6.22 Site:!Ilminster!employment!sites! Additional!employment!land!to!meet!the!requirements!of!the!Local!Plan.!!Sites!identified!since!1996! have! proved! difficult! to! bring! forward! because! of! infrastructure! costs! and! the! consequent! requirement! by! developers! to! introduce! housing! development! as! an! enabling! mechanism.!! Negotiations!with!landowners!and!developers!continue!
5.6.23 Site:!Wellington,!Chelston!(17!Ha!B1a,!B1b,!B1c,!B2,!B8)! Further!information!required.!
5.6.24 Site:!Wellington,!Chelston!(8.67!Ha!single!occupier)! Further!information!required.!
5.6.25 Saxonvale!–!Frome!town!centre!regeneration! Description! of! activity:! Enabling! infrastructure! to! support! the! commercial! regeneration! of! Frome! town!centre!
Opportunity:!Saxonvale!is!a!12!ha!brownfield!site!located!in!the!centre!of!Frome.!The!site!provides! extensive! potential! for! major! mixedLuse! regeneration! development! embracing,! housing,! retail,! leisure!and!employment!uses.!
Barriers:! The! site! is! in! mixed! ownership! including! some! public! sector! land.! ! Although! centrally! located,! connecting! the! site! with! the! rest! of! the! town! centre! is! key! challenge.! ! The! need! for! comprehensive! development! solutions! for! a! complex! urban! site! is! proving! challenging! in! current! market!conditions.!
Delivery!plan:!A!development!brief!has!been!prepared!for!the!site!and!adopted!since!2005!
Governance:!Delivery!will!be!developer!led!supported!by!public!sector!land!owners,!
Timing:! There! is! clear! occupier! interest! and! developers! are! working! on! scheme! proposals! which! could! come! forward! for! planning! consideration! 2014.! Development! could! commence! 2015! for! completion!2016/17!subject!to!unlocking/overcoming!barriers.!
Resources,!expenditure!and!ability!to!attract!investment:!Public!sector!support!may!be!required!for! small!scale!land!acquisitions!to!establish!a!more!cohesive!and!comprehensive!development!solution.!
Public!sector!support!is!also!likely!to!be!required!to!fund!connecting!and!enabling!infrastructure!to! unite!the!site!with!the!town!centre!and!enhance!local!public!realm.!
Geographical!coverage:!Frome!town!centre!is!a!key!growth!hub!in!Somerset!and!supports!wide!rural! population!catchment.!
! ! ! ! ! ! 30! ! Outputs:!Full!development!of!the!site!could!create!over!500!new!private!sector!jobs!and!up!to!750! new!homes!supporting!the!vitality!and!vibrancy!of!Frome!town!centre!and!wider!economic!growth! potential.!!
Outcomes!and!economic!benefits:! Realisation!of!the!Saxonvale!town!centre!regeneration!project! could!unlock!some!£85!million!of!private!sector!investment!and!construction!activity!in!Frome,!and! enable!some!£20!million!of!additional!GVA!per!annum!to!the!local!economy.!
Next! steps:! Continuing! discussions! are! being! held! with! development! interests/landowners.! ! The! ability! to! confirm! public! sector! financial! contributions! will! help! consolidate! development! and! delivery!plans!and!realise!a!high!quality!scheme!for!the!town!centre.!
5.6.26 Site:!Funnel!Lane,!Bridgwater! Further!information!required.!
5.6.27 General!support!for!employment!sites!in!rural!areas! Further!information!required.!
5.7 ICT!
5.7.1 ICT:!Connecting!Devon!&!Somerset,!broadband!delivery! Further!information!required.!
5.7.2 ICT:! Connecting! Devon! &! Somerset,! broadband! delivery! (including! demand! stimulation):! Final!10%! Further!information!required.!
5.7.3 ICT:!4G! Further!information!required.!
5.7.4 ICT:!Mobile!phone!coverage! Further!information!required.!
5.8 Public!Realm!
5.8.1 Public!realm:!Vibrant!and!successful!town!centres! Further!information!required.!
In!Taunton,!the!Borough!Council!is!committed!to!enhancing!Taunton!town!centre,!creating!a!safe,! attractive,!prosperous!and!enjoyable!environment!for!people!to!live,!work!and!visit.!!Through!the! Project!Taunton!initiative!and!with!the!support!of!many!local!and!regional!partners,!the!Council!has! already! delivered! numerous! public! realm! enhancements! including! Goodlands! Gardens,! Somerset! Square!and!more!recently!Castle!Green!in!the!historic!heart!of!the!Town.
The!proposed!enhancements!have!been!discussed!since!2009!and!would!be!a!natural!and!major!step! forward! for! the! Town! Centre,! enabled! by! the! opening! of! the! new! Tangier! Way! road! and! the! forthcoming! Northern! Inner! Distributor! Road.! The! Borough! Council! is! committed! to! working! with! ! ! ! ! ! ! 31! ! Somerset! County! Council! on! the! detailed! enhancement! options! and! consultation! to! make! the! enhancement!scheme!a!reality. 6 Business!competiveness!!
6.1 Highbridge!Enterprise!Centre:!Phase!1!
Further!information!required!
6.2 Rural!work!hubs!
Opportunity:! Improve! self! containment! and! create! economic! life! and! vibrancy! into! smaller! settlements! through! provision! of! small! scale! development! of! business! units.!!Anecdotal! evidence! that!lots!of!small!scale!business!start!ups!that!need!to!transition!from!back!bedroom/garage!into! business!premises!…!
Barriers:!…!but!hampered!by!restrictive!terms!and!lack!of!available!premises!in!close!proximity!to! current!locations.!!In!particular!the!lack!of!small!scale!employment!space!in!rural!areas!is!thwarting! growth!of!small!firms.!
Many!schemes!often!too!large!which!creates!funding!issues!and!planning!difficulties.!!In!many!cases! only!need!small!schemes!as!a!stimulus!and!can!be!expanded!following!take!up.!!!!Example!–!West! Bagborough.!!Mix!of!office!and!industrial.!Perhaps!with!some!common!services.!!Doesn’t!need!to!be! expensive!buildings!
6.3 Innovation!and!workspace!hubs!
Suggested!by!Somerset!Chamber!of!Commerce!
Opportunity:!Relocation!and!growth!of!small!high!value!businesses.!!In!particular!this!appears!to!be! predicated!on!the!relocation!of!highly!skilled/qualified!people!out!of!London/South!East!to!Somerset! to!set!up!knowledge!intensive!service!sector!businesses,!whilst!seeking!quality!of!life.!!These!are!not! described!as!‘lifestyle’!businesses!as!they!do!have!growth!aspirations,!but!the!founders!are!often! highly!mobile!and!attracted!to!Somerset!by!the!quality!of!life.!!!
The!workspace!hubs!could!be!sectorally!themed,!but!they!are!really!about!promoting!growth!in!high! value!knowledge!intensive!sectors.!!A!series!of!hubs!in!accessible!locations!(i.e.!the!major!towns)! could!be!linked!through!a!network.!!!
Barriers:!No!hard!data!provided!across!the!board,!but!there!is!anecdotal!evidence!that!there!is!a!lack! of!flexible!(mostly)!office!space!for!new!start!and!growing!small!businesses!in!high!value!sectors.!! Evidence!of!market!failure!would!need!to!be!collected.!
Delivery:! The! Innovation! Centre! proposed! as! part! of! the! Low! Carbon! Energy! Innovation! &! Collaboration!Project!is!a!potential!model!for!one!of!these,!albeit!that!this!is!driven!by!a!particular! market!demand.!!The!idea!of!delivering!a!package!of!a!high!quality!innovation/workspace!centre! with! high! quality! business! support,! with! signLposting! to! specialist! support! is! at! the! heart! of! this!
! ! ! ! ! ! 32! ! proposal.!!The!Forward!Space!centre!in!Frome!delivered!by!a!private!entrepreneur!is!seen!as!a!model! for!this,!although!it!is!not!clear!how!much!business!support!comes!as!part!of!this!package.!
Potentially!LEPLwide!interest!in!something!like!this.!!Potential!to!link!into!the!LEPLwide!approach!to! business!support!
Governance:!tbc,!but!could!be!delivered!by!the!private!sector!with!limited!public!sector!gap!funding.!! Not!a!proven!model,!but!similar!projects!have!been!delivered!elsewhere!
Timing:!Relatively!short!term,!but!could!include!capita!construction!which!can!take!longer.!
Resources,! expenditure! and! ability! to! attract! investment:! It! has! been! suggested! that! the! full! innovation!and!workspace!hub!concept! cannot! be! delivered! on! a! commercial! basis,! so! there! is! a! need! for! public! subsidy! to! make! this! work! in! several! Somerset! locations.! ! Clearly! any! public! investment! would! need! to! lead! to! a! sustainable! business! model! which! does! not! require! ongoing! public!revenue!funding.!!Given!that!the!private!sector!can!almost!make!this!work,!there!is!a!case!for! limited!gap!funding!from!the!public!sector.!
Geographical!coverage:!Equally!applicable!to!other!rural/market!town!type!economies,!so!potential! for!delivery!at!LEPLwide!level!of!even!panLLEP!(e.g.!Wiltshire,!Dorset,!Cornwall!etc.).!
ValueRforRmoney:!Expenditure!could!be!limited!if!public!funds!could!be!used!to!gap!fund!the!mostly! private!delivery!of!these!hubs.!!!However,!a!model!would!need!to!show!how!the!hubs!and!ongoing! business!support!are!sustainable!without!ongoing!public!funding.!
If!a!gap!funding!model!could!be!created,!then!private!sector!funds!would!form!the!majority!of!the! funding!package.!!This!might!therefore!be!suitable!for!a!something!like!RGF.!
Potential!for!relatively!high!levels!of!leverage!of!private!sector!funding.!
Outputs:!Nothing!available,!but!this!would!support!the!establishment!and!growth!of!a!number!of! high! value! knowledge! intensive! businesses.! ! Assume! that! a! high! quality! innovation! centre! could! support!the!establishment!of!10L20!additional!businesses!per!year.!
Outcomes! and! economic! benefits:! We! would! need! to! be! convinced! that! this! will! support! net! additional! new! business! and! job! creation,! and! not! just! displace! this! activity! from! other! place! in! Somerset!
6.4 Business!Finance:!Business!growth!fund/loan!guarantee!
Further!information!required.!
6.5 Business!Finance:!Equity!investment!in!businesses!
Further!information!required.!
6.6 Shepton!Mallet!business!incubator!
Description!of!activity:!Small!business!and!startLup!incubator!and!local!workLhub!facility!as!part!of! wider!network!across!Somerset.!! ! ! ! ! ! ! 33! ! Opportunity:! Considerable! market! research! has! identified! strong! market! potential! for! a! business! incubator/work!hub!in!Shepton!Mallet!to!support!new!business!growth!and!development.!!A!focused! incubator! facility! dovetails! with! MDC’s! wider! Enterprise! Mendip! campaign! working! in! partnership! with!the!Chambers!of!Commerce!to!stimulate!and!promote!new!business!startLup!activity.!A!Mendip! Enterprise!Fund!has!been!established!which!will!support!small!business!growth!and!development!as! well!as!initial!starts.!!
Barriers:! The! current! RGN! programme! to! support! rural! workLhubs! is! targeting! smaller! delivery! projects!than!would!be!envisaged!for!Shepton!Mallet.!!
The! commercial! property! market! is! unable/unwilling! to! fund! development! for! flexible/licenced! occupation!or!startLup!business!with!no!trading!history/covenant!strength.!!
Delivery!plan:!Mendip!District!Council!has!completed!feasibility!research!and!has!been!approached! by!experienced!private!sector!partners!interested!in!managing!a!joint!venture!facility.!An!established! incubator/work!hub!in!Frome!has!indicated!that!demand!is!outpacing!supply!of!flexible!workspace,! and!that!occupiers!are!now!looking!west!to!Shepton!Mallet!for!both!housing!and!flexible!workspace.!
Governance:!To!be!further!developed!further!
Timing:!Project!delivery!expected!to!be!2015/16!!!
Resources,! expenditure! and! ability! to! attract! investment:! A! detailed! costLplan! has! yet! to! be! developed! –! there! is! already! “inLprinciple”! private! sector! support! and! commitment! subject! to! balancing! contributions! from! the! public! sector.! There! is! confidence! in! underlying! demand! from! occupiers! subject! to! the! occupancy! costs! being! affordable.! An! established! incubator/work! hub! in! Frome!has!indicated!that!demand!is!outpacing!supply!of!flexible!workspace,!and!that!occupiers!are! now!looking!west!to!Shepton!Mallet!for!both!housing!and!flexible!workspace.!
Geographical!coverage:!The!project!would!complement!the!more!specialised!proposal!for!the!B&W! site!but!would!also!have!wide!rural!catchment!and!influence.!!
Outputs!
• Approximately!1,000!sq!m!of!new/refurbished!commercial!floorspace!incorporating:! • Meeting/Training!rooms! • Flexible!workLspace!/!Touch!Space!for!small!business! • Dedicated!office!space!for!startLups/growth!business! • OnLsite!and!virtual!business!advice!and!support! • Local!business!mentoring!and!financial!support!
Outcomes!and!economic!benefits!
• New!Business!Start!Ups!supported! • Enhanced!productivity!and!survivorship!of!new!business!starts! • Training!&!Development!!
! ! ! ! ! ! 34! ! Next! steps:! Further! scoping! of! concept! and! broad! content/activities.! ! Partnership! development! –! governance/management!&!delivery.!!Concept!design!proposals!and!costings!! 7 Inward!investment!
Further!information!required.! 8 Skills!!
8.1 FE/HE:!Coordinated!HE!provision!
Further!information!required.!
8.2 FE/HE:!Strengthened!HE!offer!(more!and!better!R!all!areas)!
Further!information!required.!
8.3 Skills:!Level!3!STEM!training!
Opportunity:! Somerset! has! significant! growth! potential! in! advanced! manufacturing,! particularly! aerospace!and!low!carbon/nuclear.!
Barriers:!Somerset!has!a!well!evidenced!low!level!of!skills!in!its!workforce.!!!
Activity:!Increased!or!better!quality!provision!of!STEM!training!to!at!least!Level!3!i.e.!technician!level.!! Provision!should!be!guided!by!the!needs!of!employers,!particularly!in!advanced!engineering!–!with!a! focus! on! aerospace! and! low! carbon/nuclear.! ! This! could! be! linked! to! the! business! support! programme.!!Apprenticeships!are!seen!as!a!positive!way!forward!in!this!area.!!!
Timing:!Revenue!funded!activity!could!be!delivered!relatively!quickly.!
Resources,!expenditure!and!ability!to!attract!investment:!This!looks!more!like!a!revenue!project,! although! the! SFA! budgets! being! brought! into!the!Single!Local!Growth!Fund!are!more!focused!on! capital!development.!
Single!Local!Growth!Fund!includes!FE!capital!funding.!!It!is!not!ringLfenced,!but!there!appears!to!be!a! view!that!it!will!be!used!primarily!for!the!purposes!for!which!it!was!originally!intended.!
Potential!for!employers!to!pay!for!training!provision!–!as!long!as!it!is!focused!on!meeting!their!needs.!
Geographical!coverage:!SomersetLwide,!with!a!focus!on!better!coordination!of!activity!between!the! five!Somerset!colleges!
Value!for!money:!Not!yet!wellLdefined!enough!to!ascertain!vfm!
Outputs:! Higher! and! better! skilled! workforce,! contributing! to! higher! levels! of! employment! and! increased!business!productivity.!
! ! ! ! ! ! 35! ! 8.4 People/Workforce:!Schools!raising!standards!and!aspirations!
Further!information!required.!
8.5 Business!education!for!school!leavers!
Further!information!required.!
8.6 People/Workforce:!General!employability!skills!
Further!information!required.!
8.7 People/Workforce:!PreRemployment!support!
Further!information!required.! 9 Housing!
Delivery!of!sites!for!market!and!affordable!housing!widely!suggested!but!little!evidence!or!detail!of! how!this!will!work.!!Economic!growth!is!closely!linked!to!population!growth,!so!greater!provision!of! both!market!and!social!housing!will!enable!growth!to!take!place.!!!
Barriers:!No!quantitative!evidence!provided!but!anecdotal!suggestions!that!lack!of!low!cost!market! housing! seen! as! an! impediment! to! growth! in! the! local! economy.! ! Lack! of! two! to! three! bedroom! houses! being! provided,! which! is! what! workers! want/need.! ! There! is! a! debate! to! be! had! about! whether!this!is!focused!on!the!three!major!towns!and!the!large!market!towns!where!sustainable! urban!extensions/major!developments!can!be!delivered.!!There!will!always!be!a!case!for!small!rural! schemes,!but!I!don’t!think!this!is!about!that.!!Therefore,!prioritisation!is!going!to!have!to!take!place.!
Description:! Investment! in! enabling! infrastructure! which! will! allow! developers! to! deliver! new! housing! developments! comprising! market! and! affordable! housing! –! in! particular,! two! to! three! bedroom!homes!
In!some!parts!of!the!county!the!schemes!may!be!of!a!small!scale!in!absolute!terms,!hence!a!‘fund’! may! be! a! more! appropriate! response! from! which! a! series! of! smaller! schemes! can! be! unlocked,! achieving!aggregate!benefits.!
Activity:!Probably!some!involvement!in!providing!enabling!infrastructure!to!open!up!major!housing! sites!which!include!some!affordable!provision.!!This!is!the!sort!of!thing!that!the!HCA!does,!so!we! need!to!develop!a!view!about!how!the!HCA!is!involved!in!this.!
Resources,! expenditure! and! ability! to! attract! investment:! Major!capital!funds!required.!!May!be! potential!for!repayment!in!the!longerLterm,!opening!up!the!opportunity!for!a!revolving!fund!of!some! sort.!
SLGF.!!Potential!for!Growing!Places!Fund!to!be!used.!!Need!to!speak!to!HCA!about!any!other!funds.!
! ! ! ! ! ! 36! ! Geographical!coverage:!This!is!a!national!issue,!so!this!could!be!addressed!at!any!level!from!national! to!panLLEP,!to!LEP.!!Any!fund!or!mechanism!is!likely!to!be!delivered!at!a!level!higher!than!Somerset! alone,!although!the!investments!that!it!makes!will!be!local!and/or!site!specific.!
Value!for!money:!Large!amounts!of!capital!funds!potentially!required.!!This!will!ultimately!leverage! significant!private!sector!funding!which!will!invest!in!delivering!the!housing.!
Outputs:!Will!deliver!houses.!!Houses!accommodate!workers,!thus!contributing!to!economic!growth.!! Also!stimulates!employment!in!the!construction!sector.!
Outcomes! and! economic! benefits:! Direct! employment! in! construction,! and! increased! residential! population,!hence!workforce,!hence!economy.!
9.1 Mendip!Housing!Sites!
Mendip!District!Council!has!provided!information!on!its!housing!sites.!
9.1.1 Southfield!Farm/Wallbridge,!Frome! 400!homes;!30%!affordable;!Primary/First!School!(x!places);!Footpath!links!–!river!&!railway;! Landscape!&!Open!Space!
Barrier:!Potential!site!issue!over!connections!to!town!infrastructure!
Required!Funding:!Gap!funding!
Proposed!site!in!PreLSubmission!Draft!Local!Plan!(Nov!12).!!Application!submitted!for!outline!consent! for!450!homes.!!17%!of!town’s!requirement.!!Development!Brief!to!be!prepared.!
9.1.2 West!of!Cannards!Grave!Road,!Shepton!Mallet! Mixed!Use!L!500!homes;!30%!affordable;!Primary!School;!Small!business!space!(m2!to!be!determined);!22!ha!to! be!retained!for!Mid!Somerset!Showground!
Barrier:!Sustainable!drainage!(SUDS)!assessment!and!solutions!required!
Proposed!site!in!PreLSubmission!Draft!Local!Plan!(Nov!12).!!39%!of!town’s!requirement.!!Development!Brief!to! be!prepared.!!Opens!up!future!growth!area!in!long!term.!
9.1.3 Walton!Parish,!Street! 400L500!homes;!30%!affordable;!Primary!School!(x!places);!Community!Facilities;!Distributor!Road;!Open!green! space!
CrossLboundary!agreement!with!Sedgemoor!would!need!to!be!in!place!to!maximise!development!and!unlock! Street!Business!Park!
Proposed!site!in!PreLSubmission!Draft!Local!Plan!(Nov!12).!!30L38%!of!town’s!requirement.!!Development!Brief! to!be!prepared.!!Opens!up!future!growth!area!in!long!term.!
Walton!Bypass!could!help!to!accelerate!development!and!aid!regeneration!
! ! ! ! ! ! 37! ! 9.1.4 Thales,!Wells! Circa!180!homes;!30%!affordable!
Potential!brownfield!constraints!
Outline!planning!consent!granted!April!2013!and!landowner!currently!marketing.!!12!%!of!requirement.!
9.1.5 Land!south!of!Glastonbury!Road,!Wells! 150!homes;!40%!affordable!
10%!of!town’s!requirement.!!Development!Brief!to!be!prepared.!
Southerly!Second!phase!to!Nutricia!Site.!
9.1.6 Land!west!of!Wells!(North),!Wells! 200!homes;!40%!affordable;!Primary!School!
14%!of!town’s!requirement.!!Development!Brief!to!be!prepared.!
9.1.7 Land!west!of!Wells!#2!(South),!Wells! 100L150!homes;!40%!affordable;!Contribution!to!development!of!primary!school!
10%!of!town’s!requirement.!
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