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Dumfries and Galloway Regional Economic Strategy 2016-2020

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Dumfries and Galloway Regional Economic Strategy 2016-2020 Dumfries and Galloway Regional Economic Strategy 2016-2020 Dumfries & Galloway Together is Better DUMFRIES AND GALLOWAY 2 Regional Economic Strategy 2016-2020 Contents Foreword ........................................................................................................4 Introduction ....................................................................................................5 Challenges ......................................................................................................6 Opportunities .................................................................................................7 Key Sectors ......................................................................................................8 Investment for Growth ..................................................................................9 Context .........................................................................................................10 Stakeholders’ Perspectives ...........................................................................12 Our Vision .....................................................................................................13 Our Vision Explained ....................................................................................13 Strategic Objectives ......................................................................................14 Strategic Actions ..........................................................................................15 The Outcome ................................................................................................17 Economic Leadership Group ........................................................................17 Delivery .........................................................................................................18 3 DUMFRIES AND GALLOWAY Foreword The economic ambition for our region is simple, to achieving them. It has ambition at its heart but ensure that every member of every community has it also provides a strategic foundation built on equality of access to a prosperous future. a sound evidence base to support what is a very positive vision for our region. Our Regional Economic Strategy is central to achieving this vision which, in turn, will help us Attainment of our vision requires a shared meet our key priorities of building our economy, commitment with participation from our supporting children, protecting vulnerable people communities and individuals, and working with and being inclusive. the public, private, third and further and higher education sectors. Our shared vision is bold; it is We recognise that our region’s economy is the based on the ambition that our region deserves. key to unlocking the future potential of our To achieve this all partners must demonstrate communities and people. A prosperous economy strong, confident leadership and work together will provide employment and income which will in the pursuit of our vision. We are determined to benefit all in the region. It will help us retain our succeed. young people and attract new families. Ronnie Nicholson While there are challenges and barriers to growth there are also significant opportunities to be Chair seized and built upon. Assets such as our coastline Strategic Partnership and countryside, our vibrant towns and villages Colin Smyth and our overall quality of life are all highly rated and can all be used to our economic advantage. Chair Underpinning all of this are our region’s proud Economy, Environment and and resilient communities. Infrastructure Committee Dumfries and Galloway Council Our Economic Strategy sets out our vision and strategic objectives for our regional economy in 2020 and puts in place a clear framework for 4 Regional Economic Strategy 2016-2020 Introduction Our Strategy is based on data collated and Our vision is ambitious. By defining our strategic analysed by independent researchers in the objectives our region is able to position itself Crichton Institute and presented in the Dumfries to maximise the potential of our people and and Galloway Regional Economic Strategy 2014- empower our communities. We must take full 2020: Baseline study and regional economic advantage of the ongoing economic recovery profile. The baseline study consulted widely and and by doing so counter the impacts of public further consultation has been undertaken by sector funding cuts, welfare reforms, and a fall in Dumfries and Galloway Council. The baseline study European Union funding. indicates that we have: In order to deliver economic growth for the region • Gross Value Added1 that is much lower than we need to focus on our regional strengths and the Scottish average acknowledge that our priorities may not always • an ageing population fit neatly with those defined at a Scottish, United Kingdom, or European level. • a low wage economy • a high rate of youth unemployment Kirkconnel Sanquhar Moffat Drumlanrig Thornhill St Anns Langholm Lockerbie New Galloway Dumfries Murray’s Monument Gretna Newton Annan Stewart Dalbeattie Castle Stranraer Gatehouse Douglas Wigtown of Fleet Portpatrick Kirkcudbright Dundrennan Port William Whithorn Drummore 1 The long-established headline measure of economic growth produced by the Scottish Government is total Gross Value Added (GVA), which is based on the output of all industries in the economy. The methodology is given in detail at http://www.gov.scot/Topics/Statistics/Browse/Economy/GDP/GDPcalc 5 DUMFRIES AND GALLOWAY Challenges • GVA per hour worked in DandG is 82% of the • The region is not visible enough at a national Scottish average. level in terms of policy, lobbying and as a place to do business. Dumfries and Galloway • A high, and growing, proportion of jobs are is also under-promoted as a place to visit, part-time; the rate of unemployment remains work and live. The number of private higher than before the start of the recession sector jobs in the region has declined since in 2008; the rate of youth unemployment is 2008 and the public sector accounts for a consistently higher than for other age groups; large proportion of the region’s GVA and and there is significant underemployment. employment. Many of the jobs in the region’s key sectors provide low levels of productivity and often • The recent changes to the Common seasonal employment. Agricultural Policy are expected to reduce farm income to the region by 18m per year • Relatively few of those of working age have by 2019. a high level of qualification. This means that some businesses find it difficult to recruit • Some parts of the region do not get good people with the skills that they need. Lack quality mobile coverage from network of appropriate qualifications may also be operators, or do not get any coverage at all. a hindrance to future development needs. • Our population is declining and statistics The level of work related training is low. show a rapid increase in the 65+ age group In addition, for some employers, there are whilst at the same time we have net out- difficulties in recruiting for low skill/entry migration of younger people. level jobs. • Our region’s full-time workers receive the lowest average weekly pay in Scotland. This, along with the low level of GVA per capita, reflects the low level of employment in high value-added activities. • Over 22% of the region is classified as rural or remote rural and 76 (7.8%) of the 976 datazones in the 15% most access deprived datazones in Scotland are in Dumfries and Galloway. 45% of the region’s datazones are amongst the 15% most access deprived in Scotland and over 20% of households do not have access to private transport. 6 Regional Economic Strategy 2016-2020 Opportunities • Parts of the region have good links to the • Older people can make a positive strategic transport network. Lockerbie and contribution to the workforce and the the M74 Corridor are well connected to major economy while the ageing population population centres in Glasgow, Edinburgh presents opportunities for private and third and the north of England while the west of sector developments in the health and social the region is linked to Northern Ireland by care sectors. the ferry ports at Cairnryan. • The principles of regional equity, or equality • Dumfries and Galloway Council has between regions, in either a South of invested £12.6m in the region’s broadband Scotland or ‘Borderlands’ context, can be infrastructure and the region is benefiting exploited to the region’s advantage. from a share of a national investment of • The region is well placed to contribute to £264m. Access to high speed data links is Scotland’s energy ambitions through both being rolled out across the region during the carbon reduction and the potential for early years of our Strategy. renewable energy generation and storage. • The high number of micro-businesses • Dumfries and areas to the east of the region provides a broad base of businesses that have have been granted Assisted Area status and potential for growth. businesses in these areas can take advantage • Major assets such as the rural landscape of higher levels of public support. and coast are key resources for its tourism • The quality of life in the region is highly rated industry. Our region’s attractiveness is also with low crime rates and high quality schools. important in making Dumfries and Galloway a desirable place to live and work. Our • Our communities are resilient and capable natural resources provide opportunities in of delivering innovative solutions to local forestry
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