SGP Final Report V5 5 January 2014

Somerset Growth Plan 2014-2020

Operational Document

January 2014

Contents

Strategic Framework ...... i 1. Introduction ...... 7 2. Opportunities and Barriers to Growth ...... 11 3. The Geography of Growth in Somerset ...... 16 4. Our Approach to Growth in Somerset ...... 20 5. Investment Packages and Projects ...... 23 6. Governance and Next Steps ...... 32

Appendices

A Principles of Growth

B SWOT, Barriers and Economic Data

C Methodology for Target Setting

D Funders of Growth

E Projects and Prioritisation

F Project Details

Version Number: 5.5

Date: January 2014

Somerset Growth Plan 2014 – 2020 January 2014

Strategic Framework

This document sets out Somerset’s plans to promote growth. Between now and 2020 we will enable the delivery of growth, and also lay the foundations for long-term sustainable economic growth in the years after this.

Purpose of the Growth Plan

The purpose of this Growth Plan is to attract and guide investment, to overcome barriers and maximise sustainable growth from local opportunities, benefitting Somerset’s communities, businesses and residents.

The Growth Plan will be used to inform the Heart of the South West Local Enterprise Partnership’s (HoSW LEP) Strategic Economic Plan (SEP). The SEP will be used during negotiations with Government to agree the allocation of funding from the Local Growth Fund over which the LEP will have control.

The process of developing and agreeing a Growth Plan for Somerset aims to:

• Create a shared ambition and vision for growth and progression across enterprises, residents and the public sector • Support the delivery of infrastructure and housing to enable growth to take place • Increase the scale, quality and sustainability of economic opportunity in Somerset • Ensure participation and access to these opportunities for local residents

Growth is important to Somerset because:

• It improves the quality of life for all residents • We need to increase our economically active workforce to maintain a sustainable and balanced population as people live longer • To continue to enable growth and effectively facilitate local services in a time of declining central funding means that growth is important to sustaining the financial basis of Local Authorities • Standing still whilst other places grow is effectively going backwards

Opportunities for Growth

Achieving growth will be dependent on realising Somerset’s opportunities, and overcoming the barriers preventing this. Growth will primarily be created by the private sector. The main opportunities for Somerset’s future economic growth are:

• Deriving maximum local benefit from the £16 billion development of the Hinkley Point C nuclear power station, and ensuring a sustainable economic legacy • Deriving more value from Somerset’s advanced manufacturing expertise, particularly its globally linked aerospace sector; and using this expertise to capture growth in the broader low carbon energy sector • Increasing the quality and value of well established sectors in Somerset, including food & drink processing, land & water management, tourism and logistics

Somerset Growth Plan 2014 – 2020 January 2014

• Seeking value from sectors which could grow in Somerset, including health, construction and business & professional services • General growth across the economy, linked to national and global economic recovery

The main barriers to growth in Somerset are:

• An ageing population • Relatively small and dispersed urban areas (i.e. lack of urban agglomeration) • A lack of higher level skills • Inadequate infrastructure to support further expansion in the economy • Flooding and its consequential disruption to transport and the economy

There are strengths to Somerset’s connectivity, with good north-south links along the M5 within Somerset and on to Bristol and Exeter, and the mainline rail link to London. However, within the M5 corridor there is poor resilience if there are problems on the motorway network, and beyond the M5 there is more limited connectivity. The links from east to west, in particular from Taunton to Yeovil, are weaker than the main north-south links. Further investment in the rail network will help to support future growth, and ensure that Somerset is well connected to opportunities and planned growth in Bristol to the north and Devon to the south.

To achieve growth we need to attract significant investment into the county. We will need to both build on our existing strengths and strong businesses, and encourage new investors into the county. Somerset will welcome investors from both the private and the public sector, and we will ensure that we are investor ready.

The Geography of Somerset’s Growth

Plans for population change show growth taking place throughout Somerset. More of the growth will be seen in Somerset’s larger towns, with significant housing growth planned for Taunton (760 homes per year), Yeovil (360 homes per year), Bridgwater (360 homes per year) and Frome (100 homes per year), throughout the growth plan period. Employment growth is also planned to take place throughout Somerset, and again, there will larger numbers in the larger towns, with Frome expecting an additional 120 jobs per year, Yeovil and Bridgwater expecting job growth of 250-300 per year and Taunton having plans for more than 550 jobs per year. The type of growth in the major towns, market towns and coastal towns will be complementary, with larger businesses expected to be located in the more accessible parts of Somerset, closer to the main transport networks. Along the M5 Corridor there is complementarity between Bridgwater and Taunton, with the former seeing recent growth in manufacturing and distribution, and the latter concentrating on technology and service sector growth. In the former Regional Spatial Strategy Bridgwater, Taunton and Wellington were considered as a ‘Joint Study Area’ with a single strategic planning framework, alongside places like Exeter, Gloucester/Cheltenham and Swindon. Yeovil is separate to this M5 cluster, but it has strong transport connections with Dorset and Devon, strong economic connections to the West of England, and plays an important role in the global aerospace industry.

The economy of Somerset is strongly inter-connected with the economies around it, and in functional economic terms different parts of Somerset relate to different economies in adjacent areas. An understanding of the Functional Economic Market Areas (FEMAs) in Somerset and its

Somerset Growth Plan 2014 – 2020 January 2014 surrounding areas is helpful to understand the geography of Somerset’s economy and its future growth.

The figure below shows how Somerset’s economy is part of four FEMAs, which overlap to a certain extent and are not entirely mutually exclusive:

• central Somerset is part of the M5 Corridor – a functional economy that broadly follows the M5 and includes the towns near to it – this area links in to the West of England to the north, and Exeter and Devon to the south • western Somerset is part of the North Peninsula – a functional economy that runs along the north of the South West peninsula, this area links in to northern Devon and on to north Cornwall • north-eastern Somerset is part of the North East Triangle – a functional economy around the cities and large towns of the west, including Bristol, Bath, Cheltenham, Gloucester and Swindon - this part of Somerset is therefore linked in to the West of England LEP area and areas beyond this • southern Somerset is part of the A303 Corridor which runs along the A303 from Exeter in the west to Dorset and Wiltshire in the east - and links this part of Somerset in to Dorset and eastern Devon

Figure 1: Functional Economic Market Areas

This view of how Somerset’s economy works has been reinforced in 2013 through the broad range of consultations with local stakeholders undertaken to develop our Growth Plan. The Growth Plan recognises that there are different drivers of growth in these different parts of Somerset.

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Somerset Growth Plan 2014 – 2020 January 2014

Somerset in 2020

To develop a deliverable Growth Plan it is necessary to have a vision of what we are trying to achieve. The vision for Somerset in 2020 builds on the county’s strengths and opportunities. It comprises:

• An economy with sustained growth faster than the UK • A global reputation in nuclear, low carbon energy, aerospace & advanced manufacturing, and food & drink (including agri-tech) • Increased value in the rest of the economy, particularly in land management, tourism, health, logistics, construction and business and professional services • Strong growth hubs at Bridgwater, Frome, Taunton and Yeovil connected to Somerset’s network of vibrant market towns and rural areas • An aspirational workforce with world class skills, helping to grow the competitiveness of Somerset’s businesses • A connected county with high quality and resilient transport and ICT infrastructure • A housing stock that meets the needs of Somerset's growing and changing population

Objectives of the Growth Plan

To achieve our vision for Somerset in 2020 our objectives are to:

• Create a more dynamic and growth focused business population with increased value-added and productivity • Increase levels of education and skills within the workforce to foster growth and enable residents to access employment opportunities • Tackle significant infrastructure deficits and enhance strategic connectivity • Enable the delivery of major housing and employment developments that will enable growth

All of these objectives will be achieved whilst maintaining the high quality of the environment, and quality of life in Somerset.

Targets for Somerset’s Growth

The objectives help to shape the types of activity that need to take place, but targets are needed to help to determine the nature and scale of activity.

The primary measure will be economic growth. Population growth and housing growth are needed to enable economic growth, and sustainable economic growth is needed to support population growth; thus there is inter-dependence between the two. There also needs to be a focus on the quality of economic growth (i.e. productivity or GVA/worker) as well as the quantity of growth (i.e. GVA, jobs).

Indicative targets for growth in Somerset by 2020 are:

• An additional £3 billion of GVA per year • Greater productivity growth than the UK economy • 15,000 - 17,000 additional jobs

Somerset Growth Plan 2014 – 2020 January 2014

• 65% of the adult population qualified to Level 3 or above, and 40% to Level 4 or above • 20,000 additional homes Delivering the Growth Plan

Having set objectives and targets for growth in Somerset over the period to 2020, the plan needs to be supported by a set of deliverable investments. To make this Growth Plan effective, we have identified a small number of high priority investment areas that address genuine barriers to growth, are deliverable, and have the greatest impact on Somerset’s economy.

The investments areas need to:

Create a more dynamic and growth focused business population

• Raise the level of business starts • Increase growth aspiration, skills and competence among business leaders • Improve productivity and competitiveness • Encourage diversification into new markets (including export) • Attract sustainable inward investment from the UK and overseas • Promote supply chain development activity in key sectors Increase levels of education and skills within the workforce to foster growth and enable residents to access employment opportunities

• Raise proportion of the workforce with NVQ L3+ and 4+ equivalent qualifications • Develop STEM skills base to support the growth of key sectors • Improve employability through developing generic and work ready skills aligned to Somerset’s future economic opportunities Tackle significant infrastructure deficits and enhance strategic connectivity

• Improve the speed and reliability of access to strategic locations through road and rail improvements, in particular ensuring good connectivity to Bristol and Exeter airports and ensuring that the rail network can support faster movement of freight and passengers, thus helping to reduce pressure on the road network and improve journey time resilience • Ensure high quality communications infrastructure to the whole county including superfast broadband and mobile connectivity • Improve the quality and breadth of Somerset’s town centres’ offers • Alleviate flood risks to enable growth Enable the delivery of major housing and employment developments that will drive growth

• Unlock local infrastructure to bring forward development • Ensure delivery of sufficient quantity, quality and type of employment floorspace • Ensure housing supply to accommodate a balanced population

A long-list of potential investments has been identified, to help to support the delivery of growth in Somerset. Some of these are ready to deliver, and others require further development. Funding will be sought to enable the delivery and development of these investments, from a number of sources including private funds, the Heart of the South West LEP’s Single Local Growth Fund, the EU’s

Somerset Growth Plan 2014 – 2020 January 2014

Structural and Investment Funds, and other public funds. Some investments will be place-specific within Somerset, some Somerset-wide and others LEP-wide.

Investment packages

Significant growth will be supported by delivering packages of investments which work together to best exploit Somerset’s opportunities. The packages help to make the most of Somerset’s opportunities:

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 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

Somerset Growth Plan 2014 – 2020 January 2014

1. Introduction

This section sets out an introduction and some context for Somerset’s Growth Plan. It covers:

• The purpose and aims of the Growth Plan • The approach that has been undertaken to develop the Growth Plan for Somerset • An explanation of why growth is important to Somerset • A definition of what we mean by growth in this plan 1.1. Purpose and aims of the Growth Plan

The purpose of this Growth Plan is to attract and guide investment to overcome barriers and maximise sustainable growth from local opportunities, benefitting Somerset’s communities, businesses and residents.

Without any intervention the market will deliver growth in Somerset, with much of it focused on the major opportunities that are discussed in this Growth Plan. However, there are barriers to maximising this growth, and barriers to Somerset’s economy deriving the most value from this growth. With limited and focused intervention led by the public sector (although often delivered in partnership with the private sector), the scale, benefits and sustainability of growth in Somerset can be optimised.

The process of developing and delivering a Growth Plan for Somerset aims to:

• Create a shared ambition and vision for growth and progression across enterprises, residents and the public sector • Deliver the infrastructure to enable growth to take place • Increase the scale, quality and sustainability of economic opportunity in Somerset • Ensure participation and access to these opportunities for local residents

These aims are based on the common themes from the Somerset local authorities’ economic strategies:

• West Somerset Economic Strategy Refresh – Responding to Change - Strategy Document, (August 2011) • “Grow and Green” A New Economic Development Strategy for Taunton Deane, (March 2010) • South Somerset District Council, Economic Development Strategy 2012 to 2015, (December 2012) • Mendip Economic Development Strategy 2013-2016 (November 2012) • Sedgemoor’s Economic Development Strategy: 2011 – 2026 Update • Somerset, A Landscape for Business – Somerset Economic Strategy • Somerset Low Carbon Economy Framework • Somerset County Plan (July 2012)

Somerset Growth Plan 2014 – 2020 January 2014

This Growth Plan will be used to guide investment in support of economic growth in the county. The investments that help to enable economic growth will be defined within a framework that is built upon: the existing economic and development plans for Somerset; Somerset stakeholders’ ideas for additional areas of investment; and the ability to meet objectives of external funders who will be asked to support the investment areas. Any new investment proposals will need to be firmly based on quantitative evidence of a growth opportunity, a barrier to realising that opportunity, and a delivery plan that can clearly overcome the barrier and enable the growth.

There are limited resources to support growth-related investment areas 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 investment areas that address genuine barriers to growth, are deliverable, and have the greatest impact on Somerset’s economy.

1.2. The approach to developing a Growth Plan for Somerset

The Growth Plan for Somerset has been developed in consultation with a wide range of stakeholders from across Somerset, including the local authorities, businesses, education institutes and others. Independent economic development advisers have been appointed to help the stakeholders to do this, and provide critical challenge throughout the process. Significant engagement with the private sector has taken place throughout this process, including private sector representation on the project’s management group.

The process was started in August 2013, with a review of all existing growth and economic development strategies in Somerset and the recently published Somerset Economic Assessment1. The Growth Plan builds on these. Nearly 40 individual consultations were then undertaken with strategic stakeholders throughout Somerset to identify further opportunities and barriers to growth. The list of stakeholders was agreed with the steering group, and included: all the local authorities in Somerset, the Heart of the South West LEP, business representative organisations, business sector representative bodies, and all of the FE colleges in Somerset.

A draft vision and objectives were developed and agreed by the local authorities’ Regeneration Directors. The framework for the emerging Growth Plan was tested in consultation events with a project coordination group and workshops with the strategic stakeholders involved earlier in the process. Refinement of the Growth Plan has been carried out through consultation workshops with the local authorities’ Regeneration Directors and Chief Executive Officers. Communication with the LEP has been carried out throughout the process to ensure that the Somerset Growth Plan will effectively influence the LEP’s strategic economic plan.

1.3. Why growth is important to Somerset

Growth is important to Somerset because:

• It improves the quality of life for all residents

1 State of the Somerset Economy (July 2013)

Somerset Growth Plan 2014 – 2020 January 2014

• We need to increase our economically active workforce to maintain a sustainable and balanced population as people live longer • There is a need to increase council tax and business rates base in a time of declining public funding in order to deliver effective local services and help to enable growth to take place • Standing still whilst other places grow is effectively going backwards

The primary measure of growth is economic growth. The objective of the Heseltine review into creating economic growth in the UK2 is to consider: “how to more effectively create wealth.” The Heart of the South West LEP’s Business Plan states that: “our primary organisational objective is to lead and influence outcomes for the Heart of the South West economy to improve economic growth and job creation.”

However, population growth (and housing growth) is needed to enable sustainable economic growth. Economic growth is needed to support population growth, hence there is interdependence between the two. There also needs to be a focus on the quality of economic growth (GVA/worker) as well as quantity (GVA, jobs).

1.4. Principles of growth

It is important to establish the principles of growth that will underpin the Growth Plan for Somerset before developing the detail of the plan. These principles are discussed in more detail in Appendix A.

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.

Growth in Somerset will be driven by both domestic and external markets. 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.

Somerset needs to build on its competitive advantages. Competitive advantage emerges from areas of specialisation in the local economy. 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.

Somerset has large rural areas and few large towns, and so needs to work hard to derive benefits from agglomeration effects (i.e. the social and economic benefits that are seen by larger towns and cities). In Somerset agglomeration effects can be achieved through:

• Linking places together through infrastructure, ICT, transport etc • Ensuring that the large towns are accessible from their rural/market town hinterlands • Investing in growth in the most accessible places, where it can be enjoyed by the most people and is most sustainable

2 Lord Heseltine of Thenford CH (October 2012) No Stone Unturned: In Pursuit of Growth

Somerset Growth Plan 2014 – 2020 January 2014

Growth must be built on Somerset’s opportunities. Any intervention and investment by the public sector must address market failures3, and maximise opportunities.

Appendix A sets out a simplified model of Somerset’s economy, which can be used to understand how growth will be created. Whilst growth in Somerset will be influenced by global and national factors, this plan focuses on those areas that can be effectively controlled locally. From this model it is possible to identify the four main areas in which investment should be targeted in order to promote growth in Somerset. These are summarised in the figure below.

Figure 1.1: Areas of Investment to Promote Growth

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, Gov’t, Growth, Spending, Growth,

3 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.

Somerset Growth Plan 2014 – 2020 January 2014

2. Opportunities and Barriers to Growth

Growth will be primarily delivered by the private sector and the social economy rather than directly by the public sector. Employment in the public sector generally has reduced in recent years, and will decline further. Local authorities’ funding has also been reduced, thus reducing their ability to intervene directly in the delivery of economic growth. Therefore the role of the public sector will be in enabling growth to take place. To effectively target the enabling actions that are needed, it is helpful to identify significant future market opportunities for Somerset, and the barriers that will prevent these opportunities from being realised.

Appendix B sets out a SWOT analysis of the Somerset economy, which builds on the latest Somerset economic assessment1, the Somerset local authorities’ economic development plans and strategies, and input from the stakeholder consultations and workshops undertaken during the development of the Growth Plan. This leads to an assessment of the key opportunities for growth, and the barriers that are preventing this growth from taking place.

2.1. Industry sectors and the focus of growth in Somerset

Whilst general growth across the economy needs to be encouraged there are a number of important sectors that will provide a focus for action in this Growth Plan. These sectors are important for different reasons. Some are sectors in which there are already concentrations of activity in Somerset; others are forecast to grow significantly as a result of wider structural and demographic change; yet others have the potential to grow because of specific investment or opportunity in Somerset. This means that different responses are needed to different sectors.

Figure 2.1: Industry sectors in Somerset

Current Strength General Opportunity Specific Opportunity All identified within the Significant employment growth Related to identified Somerset local economic opportunities nationally lie in opportunities in particular assessment1 as existing service sectors sectors in Somerset strengths and opportunities Aerospace and Advanced Business Services & ICT Nuclear Manufacturing This is an existing specialism Identified in sectors research HPC investment is a major within the Somerset economy. undertaken for Somerset in opportunity creating There are particular strengths 20134 as having potential to opportunity in direct in and around Yeovil related to create large number of construction activities as well the presence of Augusta employment opportunities. as the supply chain through the Westland and its supply chain. This would include mobile development and production of There are also examples of investments (serving distant components and long term advanced manufacturing markets) and expansion to operation. Identified within activities in many other meet local demand. the State of Somerset report as locations. This strength a key opportunity. provides an opportunity to Health & Social Care build on existing embedded Opportunities related to both Low Carbon Energy

4 SERIO, the RED Group and Ecorys (February 2013) Sector Research: Final Report to Somerset County Council

Somerset Growth Plan 2014 – 2020 January 2014

Current Strength General Opportunity Specific Opportunity companies and to capitalise on the growth in the population, Opportunities arising from both the existing skills base. particularly within older age natural environment (biofuels, groups. Consultations have wind, tidal energy) and utilising Land Management indicated opportunities to build synergies with nuclear and Land management is an on existing health sector advanced manufacturing important sector for Somerset, capabilities in Taunton. capabilities. Identified within particular in more rural the State of Somerset report as settings. Future opportunities an opportunity. lie in diversifying into new markets and environmental Construction management. In part this growth opportunity is linked to the overall Food & Drink Processing expansion and recovery of the A significant sector in Somerset economy. However, there are with activity ranging from niche specific opportunities related to artisanal food making to high HPC. The SERIO sectors value large scale food research identified building processing businesses. There design and construction as a are opportunities to build on key opportunity. this existing strength, to develop innovation capacity Agri Tech and to develop new markets, There is real potential to particularly export establish a farm and food opportunities. industry connected hub working with the government’s Tourism proposed national Agri-Tech A significant sector in Somerset, research centres to fast track particularly in rural areas. productivity and knowledge Consultations have identified transfer. The Royal Bath & opportunities to drive value West Agricultural Society is a from the tourism product to lead partner in an initiative to increase scale of employment provide a national support opportunity. network providing essential linkages between research, farm production and food technology/processing.

2.2. Opportunities and barriers

The main drivers of Somerset’s future economic growth are based on maximising growth in particular sectors where Somerset has a strong opportunity. These are:

Somerset Growth Plan 2014 – 2020 January 2014

• Increasing the quality and value of well established sectors in Somerset, including food & drink, land management, tourism and logistics • Seeking value from sectors which could grow in Somerset, including health, construction and business & professional services • General growth across the economy, linked to national and global economic recovery

However, there are barriers which prevent these opportunities from being fully exploited. The figure below sets out the barriers that are restricting the realisation of each of these opportunities.

Figure 2.2: Opportunities and barriers to growth

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 higher-level 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 start-up, R&D and innovation activity, and low levels of exporting. Business growth is restricted through difficulty accessing finance • Lack of suitable business premises and viable development land, including major strategic development sites

Beyond these business-focused 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 knowledge-intensive and globally competitive activity) and market demand • Actual and perceived risks of flooding and its impact on the economy and major transport and other infrastructure • 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

Somerset Growth Plan 2014 – 2020 January 2014

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.

There is significant potential for cross-over 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.

Somerset Growth Plan 2014 – 2020 January 2014

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 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.

Somerset Growth Plan 2014 – 2020 January 2014

3. The Geography of Growth in Somerset

Having established the vision, objectives and targets of growth in Somerset to 2020, it is important to consider how this plays out across the county. To do this, it is important to consider the functional economic geography of Somerset, as distinct from its administrative geography, and the role of the major towns within this.

3.1. Functional economies and growth

Growth opportunities are driven by socio-economic activity and the market, not by administrative boundaries. The economy of Somerset is strongly inter-connected with the economies around it, and in functional economic terms different parts of Somerset relate to different economies in adjacent areas. Growth in Somerset is dependent on what happens outside Somerset just as much as what happens within Somerset. This means that dialogue with adjoining local authorities and LEPs will be critical to supporting future growth in Somerset5.

An understanding of the Functional Economic Market Areas (FEMAs) in the South West of England is helpful to understand the geography of Somerset’s economy and its future growth. Initially identified in work commissioned by the former South West Regional Development Agency, the FEMAs remain a useful tool for understanding how the economy of Somerset works, and are used in Somerset latest Economic Assessment6. The figure below shows how Somerset’s economy is part of four FEMAs, which overlap to a certain extent and are not entirely mutually exclusive:

• central Somerset is part of the M5 Corridor – a functional economy that broadly follows the M5 and includes the towns near to it - which links it into the West of England to the north, and Exeter and Devon to the south • western Somerset is part of the North Peninsula – a functional economy that runs along the north of the South West peninsula, which links it in to northern Devon and on to north Cornwall • north-eastern Somerset is part of the North East Triangle – a functional economy around the cities and large towns of the west, including Bristol, Bath, Cheltenham, Gloucester and Swindon - which links this part of Somerset in to the West of England LEP area and areas beyond this • southern Somerset is part of the A303 Corridor which runs along the A303 from Exeter in the west to Dorset and Wiltshire in the east - and links this part of Somerset in to Dorset and eastern Devon

This view of how Somerset’s economy works has been reinforced in 2013 through the broad range of consultations with local stakeholders undertaken to develop our Growth Plan. Somerset’s economy is influenced by four FEMAs (which overlap to a slight extent) i.e. not a single, coherent growth rationale for all of Somerset.

5 The implications of this statement are that there is a need to work with adjoining areas to coordinate growth plans, and actions to promote growth 6 Marchmont Observatory, University of Exeter (2013) State of the Somerset Economy

Somerset Growth Plan 2014 – 2020 January 2014

Figure 3.1: Functional Economic Market Areas

3.2. The economic identity of Somerset’s largest towns

Somerset does not have a large urban centre if measured in national terms. Rather it is characterised by a series of market towns of varying sizes. However, there are a number of significant settlements, and there is a clear hierarchy in terms of both population and policy designation.

Taunton is the county town and is the largest settlement with a resident population of around 65,000 persons. Together with Bridgwater and Wellington it was designated as an SSCT (Strategically Significant Cities and Towns) within the now revoked Regional Spatial Strategy, and a Principal Urban Area within the previous Regional Planning Guidance. Yeovil has a resident population of around 46,000 and Bridgwater around 41,000. Bridgwater formed part of the SSCT with Taunton and Wellington, reflecting the concentration of urban activity along the M5 corridor. Yeovil also received an SSCT designation. Hence, these towns have been recognised as the most significant places in Somerset in planning terms in recent years.

Frome is the largest of the other settlements with a population of around 26,000. Highbridge & Burnham on Sea has a population of around 20,000 and Wellington a population of 14,000. Minehead, Street, Chard, Wells, Shepton Mallet and Glastonbury all have populations of between 9,000 and 12,000. Somerset’s market towns play an important role in providing employment opportunities and access to services and leisure facilities for those people living in these towns and

Somerset Growth Plan 2014 – 2020 January 2014 also in their rural hinterlands. They serve populations which are spread throughout Somerset’s rural areas.

The distribution of employment in Somerset’s largest towns follows a similar pattern to the distribution of resident population.

Figure 4.2: Residents and Employment in Somerset’s Largest Towns

60,000"

50,000"

40,000"

30,000"

20,000"

10,000"

Yeovil"" Frome"" Street"" Chard"" Wells"" Taunton"" Bridgwater"" Wellington"" Minehead"" Shepton"Mallet"" Residents"

Employment" Burnham=on=Sea"&"Highbridge""

Source: ONS 2011 Census of Population, based on town definitions from the State of the Somerset Economy report, 2013

The figure below shows the outline targets for housing and jobs within the respective Core Strategies/Local Plans for the major settlements in Somerset. Figures in brackets provide the annual average figures to crudely adjust for differing plan periods. These data show Taunton as the most significant growth hub in absolute terms, with Yeovil and Bridgwater on a similar scale.

Somerset Growth Plan 2014 – 2020 January 2014

Figure 4.3: Places and Growth Targets in Somerset

Population Housing Jobs Comments (2011) (+ p.a.) (+ p.a.) Taunton 64,600 13,000 (760) 9,500 (560) Taunton is the county town situated within the Borough of Taunton Deane. It is the largest settlement within both the Borough and the county of Somerset. Taunton is identified within the Taunton Deane Core Strategy to take the lion’s share of future growth in terms of both housing and employment. Yeovil 45,800 8,000 (360) 5,500 (250) Yeovil is the largest settlement within the South Somerset District and is identified as the prime economic driver in the area. It is identified to deliver some 50% of future growth in the district in terms of housing and employment. Bridgwater 41,300 7,500 (360) 6,700 (320) Bridgwater is the largest settlement in Sedgemoor District. Bridgwater currently accounts for around 40% of the district population but is identified as the engine room for future growth. As such, it is identified to deliver around 70% of future growth. Frome 26,200 2,300 (100) 2,700 (120) One of five principal market towns in Mendip. The Mendip Local Plan strategy is to retain a multi centred approach, with Frome delivering around 25% of future housing growth in Mendip.

In the consultations, concerns were raised that there are no clear economic identities for the largest settlements in the county (primarily Taunton, Yeovil and Bridgwater). Their strengths, objectives and vision for the future in terms of sector growth, employment land and housing development need to be better articulated and linked. They need to send the message that they are open for business (in a co-ordinated way).

Somerset Growth Plan 2014 – 2020 January 2014

4. Our Approach to Growth in Somerset

In this section we set out the core of the Growth Plan including the vision, objectives and targets for Somerset’s growth.

4.1. Somerset in 2020

Building on Somerset’s opportunities and the principles of growth set out above, a vision for the future of Somerset has been created and endorsed by the Growth Plan’s sponsors.

Our vision for Somerset in 2020 includes:

• An economy with sustained growth faster than the UK • A global reputation in nuclear, low carbon energy, aerospace & advanced manufacturing, and food & drink (including agri-tech) • Increased value in the rest of the economy, particularly in land management, tourism, health, logistics, construction and business and professional services • Strong growth hubs at Bridgwater, Frome, Taunton and Yeovil connected to Somerset’s market towns and rural areas • An aspirational workforce with world class skills, helping to grow the competitiveness of Somerset’s businesses • A connected county with high quality and resilient transport and ICT infrastructure • A more affordable housing stock meeting the needs of Somerset's growing and changing population

4.2. Objectives of Somerset’s Growth Plan

To support the delivery of the vision for Somerset in 2020, and beyond, the objectives of the Growth Plan are to:

1 Create a more dynamic and growth focused business population 2 Increase levels of education and skills within the workforce to foster growth and enable residents to access employment opportunities 3 Tackle significant infrastructure deficits and enhance strategic connectivity 4 Enable the delivery of major housing and employment developments that will enable growth

All of these objectives should be achieved whilst maintaining the high quality of the environment, and quality of life in Somerset.

4.2.1. Create a more dynamic and growth focused business population This will involve raising the level of business starts, and the survival rates of businesses that have recently started. For established businesses, it means providing support to increase growth aspirations among business leaders. For all businesses, providing help to improve productivity and competitiveness will be important. Encouraging diversification into new markets, including export markets, will help to stimulate business growth.

Attracting sustainable inward investment, from the UK and overseas, into Somerset will help to grow the local business population, and provide opportunities for supply chain development.

Somerset Growth Plan 2014 – 2020 January 2014

General promotion of supply chain development activity in key sectors will be important, particularly where support is given to Somerset businesses to break in to the supply chains of existing larger local businesses, and the supply chains of businesses located outside Somerset.

4.2.2. Increase levels of education and skills within the workforce If businesses are growing, developing and becoming more competitive, they will need more highly skilled workers. It will be necessary to increase the proportion of the workforce that holds NVQ Level 3+ and Level 4+ equivalent qualifications. In particular it will be important to develop the Science, Technology, Engineering and Mathematics (STEM) skills base, to support the growth of key sectors.

It will also be important to improve the employability of those already in work, and those currently not working, through developing generic and work ready skills to enable them to move into work, and progress in their careers.

4.2.3. Tackle significant infrastructure deficits and enhance strategic connectivity It will be important to improve the speed and reliability of physical access to strategic locations, particularly the more strategic employment and housing sites. It is necessary to ensure high quality communications infrastructure across the whole county, to enable residents and businesses to engage in national and global opportunities and market places. The figure below shows the most strategically important transport proposals for Somerset.

Figure 4.1: Strategic Transport Proposals

Given the vulnerability of particular places and some strategic transport infrastructure to flooding, then alleviating flood risks in these places will help to enable development and growth to take place, and ensure the reliability of the transport network.

Somerset Growth Plan 2014 – 2020 January 2014

4.2.4. Enable the delivery of major housing and employment developments Helping to deliver specific pieces of local infrastructure (such as road improvements) will enable the development of strategically important employment and housing sites.

Alongside this, it will be important to support the delivery of a suitable housing supply (in terms of both the scale and composition of the housing stock that is delivered) to accommodate a balanced population which contributes to Somerset’s future growth.

4.3. Targets for Somerset’s Growth

The objectives help to shape the types of activity that need to take place, but targets are needed to help to determine the nature and scale of activity.

The primary measure will be economic growth. Population growth and housing growth are needed to enable economic growth, and sustainable economic growth is needed to support population growth; thus there is an inter-dependence between the two. There needs to be a focus on the quality of economic growth (i.e. productivity or GVA/worker) as well as the quantity of growth (i.e. GVA, jobs).

Indicative targets for growth in Somerset by 2020 are:

• An additional £3 billion of GVA per annum • Greater productivity growth than the UK economy • 15,000 - 17,000 additional jobs • 65% of the adult population qualified to Level 3 or above, and 40% to Level 4 or above • 20,000 additional homes

Further measures will be developed for

• The delivery of new employment floorspace in use classes B1, B2 and B8 • Growth in business rate income

Further details on the methods of target setting are set out in Appendix C.

Somerset Growth Plan 2014 – 2020 January 2014

5. Investment Packages and Projects

This section sets out the investment packages, and identifies projects that can form part of these investment packages. An initial assessment has been made of the deliverability of the project, and projects have been divided into: those which are thought to be close to delivery; those which are currently under development; and those which are at concept stage. The criteria used for this assessment are included in Appendix E.

5.1. Investment packages

5.1.1. Hinkley Point C and nuclear supply chain Significant work has already been done on the development of proposals which will help to maximise the positive impact of the construction and operation of HPC on the local economy, and leave a positive socio-economic legacy. This work has been directed by the Hinkley Strategic Delivery Forum, and is being developed into a Growth Deal proposition.

In addition to the specific projects set out in the table below, many of the projects set out under the general packages of infrastructure, business competitiveness, inward investment, skills and housing will contribute towards maximising the benefit of HPC to future growth in Somerset. In particular, business support to Somerset SMEs and skills support to Somerset residents will help both to engage fully in the HPC opportunity.

Projects in this package include:

• Low Carbon Innovation Centre at Bridgwater: Phase 1 • Business Support: Focused support for high growth sectors • Business Support: HPC supply chain development • Skills: Hinkley Training Agency • Low Carbon Innovation Centre at Bridgwater: Phase 2

5.1.2. Aerospace, advanced manufacturing and low carbon energy Aerospace and advanced manufacturing are well established in Somerset, and low carbon energy has growth potential based on expertise developed in the HPC supply chain as well as using expertise in these well established sectors. There is a significant opportunity for the development of tidal power in the Bristol Channel; which has a strong link with the marine energy focus of the Plymouth and Peninsula City Deal and the South West Marine Energy Park. As with HPC, projects identified under some of the broader packages will support and enable growth in these sectors. Again, business support and skills development will enable Somerset SMEs and residents to engage fully in the opportunities that these sectors present.

Advanced manufacturing and low carbon energy are growth prospects that span the Heart of the South West LEP, and so need to be considered as part of a broader LEP-wide approach to supporting growth. A programme of business support is being developed for the whole LEP area, building on the Growth & Innovation Network (GAIN) project that has been created under the Plymouth City Deal, and will prioritise the LEP’s key sectors. Aerospace in Somerset is strongly linked to the Aerospace sector in the West of England, so some projects should be considered on a pan-LEP basis.

Somerset Growth Plan 2014 – 2020 January 2014

For both of these opportunities, business support and skills development can be tackled on a LEP- wide or pan-LEP basis.

Projects in this package include:

• Augusta Westland Civilianisation Project • Site: Puriton/Huntspill Energy Park • Business Support: Focused support for high growth sectors • Business Support: HPC supply chain development • Yeovil Innovation Centre phase 2 and grow-on space • Support for the development of tidal power in the Bristol Channel

5.1.3. Increased value in food & drink processing, land, mineral & water management, tourism and logistics These are well-established and often large sectors in the Somerset economy, and many have a high Location Quotient (LQ). There is scope to increase the value-added in each of these sectors, as they often included low value components and low wage or part-time jobs. Increasing the value-added in the sectors will generate growth through increasing quality in the Somerset economy. This can be achieved through both by promoting growth in the higher-value parts of these sectors, and also by increasing value right across the sectors – through, for example, the better use of capital machinery and equipment, new sites and premises that are more fit for purpose, better business practices, and higher workforce skills. Therefore, some of the business support, workforce development and infrastructure projects identified under other packages will support growth in these sectors.

Projects in this package include:

• Site: Employment/Enterprise Area at Bath & West Showground • Business Support: Agri tech centre of excellence at Bath & West Showground • Mendip Rural Enterprise Centre at Bath & West Showground • Improvements to visitor facilities at Cartgate service station

5.1.4. Increased value from health, construction and business & professional services These are sectors where there is potential for growth in Somerset.

Projects in this package include:

• Site: Firepool, Taunton • Skills: Level 3 STEM training • Site: J25 Strategic employment site

5.1.5. Infrastructure At present this is presented as a single package, and it covers a number of significant infrastructure related issues, including: improving connectivity to and within Somerset; flood alleviation; and major site development, predominantly of mixed-use sites. Physical connectivity projects include strategic transport improvements (e.g. motorway and trunk road improvements), local roads and passenger transport. There are also ICT connectivity projects set out here. There are a number of flood

Somerset Growth Plan 2014 – 2020 January 2014 alleviation projects which will help to both ensure the reliability of transport networks, and also open up new development sites in areas that are currently at risk of flooding. There are a number of major development sites identified here which will help to provide both large employment sites and significant numbers of new homes.

The delivery of these infrastructure projects will support all of the sectoral growth aspirations in Somerset as well as general economic growth.

Projects in this package include:

• Floods: Parrett barrage/Bridgwater flood defences • Floods: River Tone/Taunton flood defences • Local Road: Yeovil western corridor • Local Road: Yeovil eastern corridor • Site: Puriton/Huntspill Energy Park • ICT: Connecting Devon & Somerset, broadband delivery • Rail: Station upgrades (including Taunton) • Major Road: A303 • Major Road: M5 J23 • Major Road: A358 • Major Road: M5 J25 • Floods: Somerset levels river dredging • Improve access to service through the development of a range of transport solutions inc Public Transport • Local Road: Toneway corridor transport improvements • Local Road: Walton bypass • Site: Monkton Heathfield (22 Ha B1b, B1c, B2 and B8) • Site: Walford Cross (10 Ha long—term release) • Site: North East Bridgwater • Site: Bridgwater Gateway • Site: Isleport • Site: Bath & West Showground • Site: Innovia, Bridgwater • Site: Firepool, Taunton • Site: Frome Commerce Park • Site: Woodlands, Bridgwater • Site: Brimsmore, Yeovil • Site: Bunford Park, Yeovil • Yeovil town centre regeneration: car parking and cattle market • Local road: Millfield Link Road, Chard • Site: Crewkerne Key Site • Local Road: Colley Lane link • Major Road: M5 J24 • Major Road: M5 J22 • Major road: dualling of A358 (West Somerset)

Somerset Growth Plan 2014 – 2020 January 2014

• Major road: dualling of A39 (West Somerset) • Sustainable transport improvements (Walking, Cycling and Bus Transport) • Bus and infrastructure scheme: NE Taunton • Rail: Dualling of rail lines • Rail: Mainline rail electrification • Rail: Faster services to Bridgwater • ICT: Connecting Devon & Somerset, broadband delivery (including demand stimulation): Final 10% • ICT: 4G • ICT: Mobile phone coverage • Site: J25 Strategic employment site (25 Ha B1b, B1c, B2, B8, other) • Public realm: Vibrant and successful town centres • Site: Minehead old hospital site regeneration • Site: Wincanton employment land • Site: Castle Cary employment land • Site: Ilminster employment sites • Site: Wellington, Chelston (17 Ha B1a, B1b, B1c, B2, B8) • Site: Wellington, Chelston (8.67 Ha single occupier) • General support for employment sites in rural areas • Frome town centre linkages – cycle/footpath • Saxonvale – Frome town centre regeneration • Strawberry line – cycle route extension • Floods: Burnham & Highbridge Sea Defences • Site: Funnel Lane, Bridgwater

5.1.6. Business competiveness Business competitiveness is a LEP-wide issue, and one for which solutions are being developed at a LEP-wide level. Proposals for support to business competitiveness have already been developed under the Plymouth City Deal, based on the existing GAIN (Growth and Innovation Network) project. These proposals are being used as the basis for the model on which a LEP-wide business support project is currently being developed.

Although a LEP-wide solution is being developed, it will be important to ensure that this is suitable for Somerset businesses, and effectively delivered throughout Somerset. These proposals are at a very early stage of development, but the different elements of a business support solution that will be required to support the increase of business competitiveness in Somerset are likely to include: focused support for businesses in high growth sectors; business mentoring; export support activity; helping businesses to understand and address their training and skills development needs;

Projects in this package include:

• Highbridge Enterprise Centre: Phase 1 • Rural work hubs • Innovation and workspace hubs • Business Finance: Business growth fund/loan guarantee • Business Finance: Equity investment in businesses

Somerset Growth Plan 2014 – 2020 January 2014

• Shepton Mallet business incubator

5.1.7. Inward investment Infrastructure, connectivity, sites, premises, workforce skills and supply chain potential in the existing local business community will all be important in making Somerset attractive to inward investors, so projects under other packages will contribute towards increased inward investment and its contribution to growth in Somerset. Inward investment, particularly from overseas, is a priority for the LEP, and the current business support solution that is being developed on a LEP-wide basis will be delivered in Somerset, with a focus on the key sectors. As with other forms of business support, although a LEP-wide solution is being developed, it will be important to ensure that this is suitable for Somerset , and effectively delivered throughout Somerset.

5.1.8. Skills The need for greater workforce skills has been identified as an essential part of delivering future growth in Somerset. In particular, some of the key growth sectors are heavily reliant on Science, Technology, Engineering and Mathematics (STEM) skills, and so this is a key area where greater support is needed. Level 3 and Level 4 skills will be particularly important in the future. This means that the delivery of both Further Education (FE) and Higher Education (HE) particularly in the STEM areas will be important. Also, general employability skills have been identified as a key requirement, particularly by the business community in Somerset. Projects are currently more focused on the delivery of skills and the coordination of delivery, but there will also need to be investment in FE capital and premises to enable this.

In terms of project identification, there is a requirement for greater engagement with both the training delivery sector, and also businesses which are the users of these skills. This will help to identify the need for further projects and areas of investment.

Projects in this package include:

• FE/HE: Coordinated HE provision • FE/HE: Strengthened HE offer (more and better - all areas) • Skills: Level 3 STEM training • People/Workforce: Schools raising standards and aspirations • Business education for school leavers • People/Workforce: General employability skills • People/Workforce: Pre-employment support

5.1.9. Housing The delivery of significant amounts of housing will take place through the delivery of major mixed- use sites, which are discussed under the infrastructure package above. Any dedicated housing projects should be considered here. The range of barriers that are preventing the delivery of major mixed-use sites include: cost of dealing with contamination; market conditions affecting commercial viability; cost of Section 106 obligations (including roads and flood defences); and the cost of external highways infrastructure.

Somerset Growth Plan 2014 – 2020 January 2014

5.2. Projects

In the tables below, the projects set out above have been sorted into groups according to their strategic significance as well as their 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 projects have been classified into three waves as follows:

Wave 1: These are projects which are close to delivery. 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 socio-economic impact of the project; work towards achieving a full funding package; and work towards achieving all necessary permissions, including planning permission if appropriate.

Wave 2: These are projects under development, 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.

Wave 3: These are projects at the concept stage. They are primarily ideas that have been suggested during the preparation of the Growth Plan, but which have not reached the status of Wave 2 projects 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.

5.2.1. LEP and Pan-LEP 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 pan-LEP level.

Wave 1 Low Carbon Innovation Centre at Bridgwater: Phase 1 Augusta Westland Civilianisation Project ICT: Connecting Devon & Somerset, broadband delivery Wave 2 Business Support: Focused support for high growth sectors Business Support: HPC supply chain development Skills: Hinkley Training Agency Major Road: A303 Major Road: A358 Major Road: M5 J25

Somerset Growth Plan 2014 – 2020 January 2014

Improve access to service through the development of a range of transport solutions inc Public Transport Wave 3 Low Carbon Innovation Centre at Bridgwater: Phase 2 Rail: Dualling of rail lines Rail: Mainline rail electrification ICT: 4G Business Finance: Business growth fund/loan guarantee Business Finance: Equity investment in businesses Skills: Level 3 STEM training People/Workforce: Schools raising standards and aspirations Business education for school leavers People/Workforce: General employability skills People/Workforce: Pre-employment support Support for the development of tidal power in the Bristol Channel as part of the development of the broader marine energy sector within the LEP and the South West

5.2.2. Somerset-Wide 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.

Wave 1 Rural work hubs Inward investment Wave 2 Rail: Station upgrades (including Taunton) Major Road: M5 J23 Floods: Somerset levels river dredging Innovation and workspace hubs FE/HE: Coordinated HE provision FE/HE: Strengthened HE offer (more and better - all areas) Wave 3 Business Support: Agri tech centre of excellence at Bath & West Showground Improvements to visitor facilities at Cartgate service station Skills: Level 3 STEM training Sustainable transport improvements (Walking, Cycling and Bus Transport) ICT: Connecting Devon & Somerset, broadband delivery (including demand stimulation): Final 10% ICT: Mobile phone coverage Public realm: Vibrant and successful town centres General support for employment sites in rural areas

Somerset Growth Plan 2014 – 2020 January 2014

5.2.3. 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 (sub-Somerset) level.

Wave 1 Site: Puriton/Huntspill Energy Park Floods: Parrett barrage/Bridgwater flood defences Floods: River Tone/Taunton flood defences Local Road: Yeovil western corridor Local Road: Yeovil eastern corridor Highbridge Enterprise Centre: Phase 1 Site: North East Bridgwater Site: Bridgwater Gateway Local Road: Colley Lane link Wave 2 Site: Employment/Enterprise Area at Bath & West Showground Site: Firepool, Taunton Local Road: Toneway corridor transport improvements Local Road: Walton & Ashcott bypass Site: Monkton Heathfield (22 Ha B1b, B1c, B2 and B8) Site: Walford Cross (10 Ha long—term release) Site: Isleport Site: Innovia Site: Bath & West Showground Site: Frome Commerce Park Site: Woodlands, Bridgwater Site: Brimsmore, Yeovil Site: Bunford Park, Yeovil Yeovil town centre regeneration: car parking and cattle market Local road: Millfield Link Road, Chard Site: Crewkerne Key Site Wave 3 Yeovil Innovation Centre phase 2 and grow-on space Mendip Rural Enterprise Centre at Bath & West Showground Site: J25 Strategic employment site Major Road: M5 J24 Major Road: M5 J22 Major road: improvements to A358 (West Somerset) Major road: improvements to A39 (West Somerset) Bus and infrastructure scheme: NE Taunton Rail: Faster services to Bridgwater Site: Minehead old hospital site regeneration Site: Wincanton employment land Site: Castle Cary employment land

Somerset Growth Plan 2014 – 2020 January 2014

Site: Ilminster employment sites Site: Wellington, Chelston (17 Ha B1a, B1b, B1c, B2, B8) Site: Wellington, Chelston (8.67 Ha single occupier) Frome town centre linkages – cycle/footpath Saxonvale – Frome town centre regeneration Strawberry line – cycle route extension Shepton Mallet business incubator Not Yet Designated Floods: Burnham & Highbridge Sea Defences Site: Funnel Lane, Bridgwater

Somerset Growth Plan 2014 – 2020 January 2014

6. Governance and Next Steps

Local stakeholders in Somerset (including the local authorities and the business community) will need to work closely together to deliver, and continue to develop the Growth Plan to respond to emerging local needs and opportunities. Linked to this is the need for the local authorities and the HoSW LEP to work with neighbouring local authorities and LEPs on joint areas of investment which can be delivered sub-regionally or within sub-regions and markets which cross LEP boundaries – e.g. Yeovil’s relationship with Dorset, or the link of the M5 corridor to the West of England.

6.1. Governance

6.1.1. Developing the Growth Plan This Growth Plan was commissioned by all of the local authorities in Somerset. Development of the Growth Plan involved consultation with a range of stakeholders, with a particular focus on engaging the business community. The growth plan builds on the County and Districts’ local economic development plans and strategies, and is not intended to replace them.

The Growth Plan has been agreed by all of the local authorities.

6.1.2. Ongoing governance This Growth Plan is expected to be a live document, so should be regularly reviewed and updated – probably annually. This draft of the Growth Plan is only a snapshot in time, and is based on current circumstances and current knowledge. The Growth Plan needs to responds to changing circumstances both within and outside of Somerset. The economic experience of the last five years has shown that flexibility and responsiveness to changing global conditions are needed to ensure competitiveness in the global economy. A formalised governance structure will be needed to manage this process.

6.2. Next steps

Having established the framework in which growth will be supported in Somerset over the period to 2020 – including a vision and set of objectives – it is necessary to agree the investments or projects that can help to support the delivery of these objectives.

6.2.1. Progressing the delivery of the Growth Plan In the development of this draft of the Growth Plan a large number of project ideas have been suggested. Few of these are in a current state to be implemented. Some have been developed to some extent, and further development is needed. Some are currently concepts, with little project development having taken place.

The previous section of the Growth Plan sets out the long-listed projects by deliverability.

6.2.2. Investment packages 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;

Somerset Growth Plan 2014 – 2020 January 2014 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.

The previous section of the Growth Plan groups the projects into packages that are aligned to opportunities and barriers.

6.2.3. 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.

6.2.4. 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.

Once a long-list of projects has been developed through the research and analysis stage of the project and sorted into the three categories above, it will be necessary 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

Fit with objectives

• Fit with Growth Plan objectives • Robust case for barriers/market failure that can be overcome • Ability of project to attract investment from other sources

Deliverability

• Business plan, governance, permissions etc

Somerset Growth Plan 2014 – 2020 January 2014

Impact (ranking criteria)

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

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.