West of England Strategy Discussion Paper - Draft July 2017
The West of England Combined Authority (WECA) covers Bath & North East Somerset, Bristol and South Gloucestershire. WestWECA also supportsof the LocalEngland Enterprise Partnership, which includes Strategy North Somerset. The West of England Combined Authority (WECA) covers Bath & North East Somerset, Bristol and South Gloucestershire. WECA also supports the Local Enterprise Partnership,Discussion which includes North Somerset. paper West of England Strategy Discussion Paper
“Our vision is to be a beacon of growth and innovation; a place where everyone has the opportunity to reach their potential and where prosperity delivers for everybody.”
2 Contents
Foreword Tim Bowles ...... 4
Foreword Steve West ...... 5
Map of region ...... 6
Context ...... 7–8
Regional data...... 9–10
Our vision for the West of England...... 11 1. Businesses that succeed...... 12–13 2. World class skills for employment ...... 14–16 3. Infrastructure fit for the future...... 17–21
Future direction of travel...... 22–23
3 Foreword Tim Bowles
In the spring of 2017 I had the privilege of being elected as the first Mayor of the West of England, a region about which I am passionate.
I take on this challenge at a time Three priorities are beginning to of considerable strength. Growth emerge: in the region has exceeded the national average, productivity is zz The first is to build on our the highest of all the core cities strengths as a leader in and the region is a net contributor innovation, high tech and to the UK economy. There is a creativity and continue to nurture businesses that succeed. high level of employment and Tim Bowles many of the businesses located zz The second is to close the gap West of England Mayor here are at the forefront of global in life chances that is shaped by excellence. where you live, by ensuring that educational attainment is good But the region is not without for all and meets the skills needs challenges. While our industries of businesses located here. continue to thrive and drive zz The third will be to put the growth, the advantages of that foundations in place both to growth don’t always touch every create more homes that are community. The impact of a affordable, and to improve our growing population is being felt by roads, cycle and pedestrian our transport system and housing, routes. and we will need to ensure that jobs are available to our residents I believe we have a great by supporting businesses to opportunity, working together, to innovate and succeed. get this right and I would like to I have been listening to what hear what you think on this draft people have been telling me Regional Strategy. about their priorities. Over the next four years, and in partnership with the councils and business, I want to lead a region that delivers on economic growth.
4 Foreword Steve West
The West of England Local Enterprise Partnership (LEP) has a crucial role to play in bringing the business and university voice to the table. Our aspiration is to make sure the region continues to be a driving force for economic and knowledge growth in the UK.
To do this we need to get serious No one should underestimate about how we work together to the determination of the West of promote the unique benefits of England LEP to make a difference the region. We have a lot to offer. to the region. We are fully behind We are a global leader in creativity this draft Regional Strategy and innovation, where micro- discussion document and will do Professor Steve West CBE electronics and processing power everything in our power to create Vice Chancellor, President comes together with software an ambitious, prosperous and and Chief Executive Officer development and digital design. sustainable future for all to benefit. of the University of West of Our easy connection with London, the UK, the EU and the rest of England and Interim Chair the world makes us a safe bet for of the West of England significant investment to drive Local Enterprise sustainable business growth. Partnership
5 Map of region
Thornbury Thornbury
SOUTH GLOUCESTERSHIRE SOUTH GLOUCESTERSHIRE Yate Severn Estuary Port of Yate Bristol Severn Estuary
Portishead River BRISTOL Port of Avon Bristol Kingswood Clevedon Portishead River BRISTOL Avon River Bristol Keynsham Avon Bath Kingswood Airport Clevedon NORTH SOMERSET
Weston-super-Mare BATH AND NORTH River EAST SOMERSET Bristol Keynsham Avon Airport Bath NORTH SOMERSET Radstock
Weston-super-Mare BATH AND NORTH © Bristol Design BD9179 EAST SOMERSET
Radstock
6 Context
The West of England is a prosperous city region with growth that has exceeded the national average over the past 15 years. Productivity is the highest of all the core cities and we are a net contributor to the UK economy. Our GDP per head is higher than Bordeaux and Barcelona and similar to Hannover. The West of England is made up of the Combined Authority area (Bristol, Bath & North East Somerset and South Gloucestershire) and North Somerset.
At the heart of this success lie However, this strong performance Added to this, inequality is a some of the region’s core and the region’s contribution significant challenge. Although strengths: to the wider economy cannot the region performs well on be taken for granted. The West most indicators of poverty, the zz Our connections to the rest of of England faces challenges headline figures mask pockets the UK and the world through that pose a real threat to future of deprivation. Growth must be our motorway, rail, air and prosperity: within environmental limits and its sea links help our businesses benefits must be shared if we are to compete nationally and zz Recently productivity has to secure the prosperity of current internationally; levelled off; and future generations. zz We have a highly skilled, zz Skills shortages constrain talented workforce, many of growth across key sectors that We should avoid being whom are educated at our are important to the economy; complacent about economic growth that compares well with world class universities or are zz The region’s transport system many cities across the UK and the attracted by the high quality is under strain; jobs on offer. The strong, EU. When compared to the most zz Housing delivery and vibrant and diverse cultural and productive European cities like affordability is a critical issue; leisure opportunities coupled Amsterdam and Hamburg, our with our outstanding natural zz Across the region the speed performance falls short. In 2014 environment, encourages and connectivity of broadband our GDP per capita was 55 per them to stay; is variable; cent of Amsterdam’s and 65 per cent of Hamburg’s. To compete at zz We are home to clusters of zz Climate change means a global level we should aspire to world leading sectors e.g. future growth must be more this level of performance. aerospace, financial and environmentally sustainable; professional services, creative zz The impact of Brexit on the and digital, and emerging region is unclear, creating sectors such as robotics, some uncertainty. artificial intelligence (AI), driverless cars and assisted living supported by Smart Cities and Smart Housing.
7 So what does this mean?
We are determined to build on The establishment of the West With the right investment and our strengths to address the of England Combined Authority commitment from policy makers, challenges faced by the region, provides the opportunity to build we have the foundations in place ensuring that we continue to be on partnership working across to ensure that we can continue to a key driving force for economic council boundaries to drive be a beacon for innovation and growth in the UK and that the economic growth. Devolution growth. A place where everyone benefits of growth are shared by unlocks a billion pounds of has the opportunity to reach all our residents. Growth must be funding over the next 30 years. We their potential and where supported by quality infrastructure will work with the Government prosperity delivers for everyone. and geared to delivering vibrant, to explore further devolution and This Regional Strategy provides inclusive communities. investment that help to unblock the opportunity to build a the challenges we face. As a highly powerful ‘place based’ approach self-contained region, with 90 but to achieve this we need the per cent of those living here also right support from Government working here, we might conclude to keep us firmly on the map. that any investment made will context benefit our residents.
8 Thornbury SOUTH GLOUCESTERSHIRE Yate
BRISTOL Kingswood Portishead BRISTOL
Clevedon
Keynsham 1,131,300 Weston-super-Mare BATH
Radstock NORTH SOMERSET BATH AND NORTH EAST SOMERSET
89% urban population West of England Total Population (2016): 11% rural focused 1,131,300 (ONS Population estimates)
Airport – 122 destinations; including 7 major European hubs
Bristol Port - 25% of aviation fuels into the UK
£31.7bn GVA £32.60 £31.80 (2015) WofE ave. UK ave. 25%
Productivity - GVA per hr worked (2015)
9 43,813 active enterprises (2016)
Home to 9 out of 12 of the largest aerospace companies in England.
47.9% educated to NVQ level 4 + compared to 41.2% for England
£262,800 £220,000 Average house National Average prices in the West for house prices of England
26,006,364 13,665,112 passengers in 2015/16 passengers in 2004/05
10 Our vision for the West of England
The West of England is fast becoming a super-connected region – nationally, internationally and digitally. Our solid economic foundations, adaptability and collaborative nature are coupled with a vibrant, diverse and creative culture. Boosted by the right infrastructure investment, we can build an even stronger community, giving residents a great place to live and access to the best employment opportunities. Our vision is to be a beacon of growth and innovation; a place where everyone has the opportunity to reach their potential and where prosperity delivers for everybody.
To deliver on this, we will focus on:
Businesses that World class skills for Infrastructure fit for the succeed employment future
Supporting businesses to Improving alignment of knowledge Improving connectivity in the region start up, grow and flourish and skills supply with existing to increase access to jobs, reduce and future employer demands to congestion and promote sustainable Supporting our businesses in enable individuals to succeed and transport choices developing and maintaining businesses to grow success in existing and Improving national and international emerging markets around the Developing an integrated connections to expand the region’s world employment, education and global reach skills system that is engaged Attracting investment and and responsive to employer Finding innovative ways of increasing high quality employment needs and provides clear routes the availability and affordability of opportunities into the region into employment and to more a range of housing types creating sustainable and rewarding careers communities where people want to Removing barriers to live and work completing the cycle of Supporting and stimulating business, creativity and innovation including SMEs, to attract and Enabling employment space to from idea to design to develop the talent they need to provide opportunities that suit the commercialisation, within the improve productivity needs of businesses at all stages region. Developing innovative ways to Supporting high quality, effective provide local people with appropriate digital infrastructure to address support, information, advice and variations in connectivity and guidance to unlock their career broadband speed potential and thrive in a modern Developing infrastructure that is economy. sustainable for future generations.
11 1. Businesses that succeed
In the last decade, our economic contribution to incubator in the world - the Bath the UK has outperformed the national average: we Innovation Centre, University of the West of England’s FutureSpace generated £2,250 per person above the England and the Bristol and Bath Science average, making us one of the highest contributing Park provide open, dynamic and city areas. That kind of performance has not collaborative environments for happened by chance. businesses to grow. Many of our businesses are The West of England is a unique Our region is far more than big connected to the world, trading blend of strong productivity, high business. Enterprises born here with Europe and beyond. value industry, innovation and have the highest survival rate of Increasingly, businesses across creativity. We are home to 9 out all the core cities in England due, the West of England are adopting of 12 of the largest aerospace in part, to the availability of our an international focus, and of companies in England. We are highly skilled workforce. Small and our businesses with a turnover of globally renowned for our creative Medium Enterprises (SMEs) are an more than £1million, 59 per cent sector; TechNation reported important part of our economy; have subsidiaries abroad. This that our digital sector was the employing nearly 75 per cent of international focus will become most productive in the UK. We our total workforce. They are a ever more important as national have a thriving low carbon and key driver of entrepreneurialism, trade agreements change and as environmental goods and services innovation and jobs growth and the Brexit negotiations develop. sector. We have the highest to realise our true economic To retain our global position we concentration of finance and potential we will need to continue will need to use our influence to insurance support services and to support businesses to start up enable business to sustain existing we are leading innovation with the and grow. Creative workspace relationships within the EU and Bristol Robotics Laboratory and such as SETsquared in Bristol – to build new trading relationships the National Composites Centre. ranked as the number 1 university across the world.
12 We are a highly skilled region with a mix of We will need to continue to develop a local technology, engineering and professional talent. workforce equipped with the range of skills needed More of our workforce is educated to degree level to support business growth. Addressing low skills than the national average, and we are the third most levels, confidence and work readiness is an important popular place in the UK for Oxbridge graduates. Our part of this, and to making sure that everyone in overall employment rate is one of the highest in the the region benefits from the business growth that country at 78 per cent. happens here and has access to new employment opportunities. All of these attributes have served to make our region more future proof and forward thinking than most. Climate change poses major challenges and But we still have work to do. regionally we will need to play our part. Transitioning to a low carbon economy as a means to meeting If the West of England is to continue to grow and the UK’s carbon reduction targets and improving compete successfully nationally and internationally, business competitiveness will be part of our plan for we will need to continue to attract investment, high growth. There is an opportunity here for business to quality employment opportunities and talent from make the most of low carbon opportunities and around the world. New, affordable and low carbon innovations that can help cut costs, improve office space in our two Enterprise Zones and four performance and access new markets. Enterprise Areas will provide exciting opportunities for businesses to locate and invest here and businesses Our ambition is to build on our unique blend of already here to grow. strong productivity, high value industry, innovation and creativity to realise the potential of the West of The West of England has a strong track record on England as a world class, sustainable, and inclusive innovation and knowledge intensive industries; the economy. transputer chip was invented here, Concorde first took flight here, the use of composites in aircraft was Working in partnership we will focus on: pioneered here and mobile phone technology first zz Supporting businesses to start up, grow and became usable here. Some of the world’s first flourish autonomous robots were also developed here by Grey Walter, a tradition followed by Bristol Robotics zz Supporting our businesses in developing and Laboratory, the UK’s largest centre for maintaining success in existing and emerging multidisciplinary robotics and AI research and markets around the world development. To strengthen this position as a global zz Attracting investment and high quality leader and a magnet for innovative businesses we employment opportunities into the region want to remove barriers to innovation, bring zz Removing barriers to completing the cycle of organisations together to focus on opportunities, and creativity and innovation from idea to design to help businesses in the region access the support they commercialisation, within the region. need to develop new ideas and technologies and bring these to market. We have an opportunity for the Bristol North Fringe to develop its leadership in aerospace and engineering to be a market leader in high-value design and innovation.
13 2. World class skills for employment
The West of England has a highly educated population. Many of these individuals are educated at our world class universities, many are attracted by the diverse range of high skilled jobs available, and the region’s strong vibrant and diverse cultural and leisure opportunities encourage them to stay.
The region is home to the UK’s act as a draw for highly skilled Despite our four world class most productive and vibrant people. The region is also home universities, residents in some of tech cluster, and a cutting edge to high volume employment our wards are among the least advanced engineering economy sectors such as health & care, likely to go to university in the supporting the second largest construction and the visitor country. This disparity cannot aerospace cluster in Europe. economy offering a diverse range be accepted as the norm and We have a global reputation for of quality job opportunities. we want to do more to address creativity and a globally focused it. Not all local residents are The headlines on our highly skilled financial and professional service accessing appropriate education workforce and low unemployment cluster. These clusters offer the and training to develop the skills mask disparities in educational opportunity for jobs and career that the modern economy needs, attainment within the region. progression within the region and particularly at technical and higher
14 levels. In some areas of the West support to develop workplace Most sectors identify skills gaps of England, young people go skills, raise their aspirations as a barrier to their future growth. through school without a clear and fulfil their career potential. This is particularly a problem view of the opportunities that may Supporting employers to attract for advanced engineering, be open to them. Tackling this and retain diverse local talent manufacturing and aerospace, requires innovative approaches whilst upskilling and retraining creative and digital and health to engaging and inspiring young their existing workforce, provides and life sciences. In addition to people as early as possible. an opportunity to address skill the gaps in these existing sectors, Involving employers in education shortages now. many of which identify a demand will help them play a greater, for people with STEM skills The region’s further education more strategic role in shaping (Science, Technology, Engineering institutions play a valuable role in skills provision while improving and Maths) new requirements supporting medium-high level students’ employability and work are emerging, from a broad and technical skills. Weston readiness. This will help ensure need for digital skills to the more College is one example of how parity of opportunity for young specific nuclear science. Our FE institutions can play a role in people across the region to local education and skills system supporting economic understand local routes into work, needs to be better aligned and development and regeneration for apprenticeships and further study. responsive to the requirements example through the new Law and of businesses to help realise our Barriers to work and learning Professional Services Academy, growth ambitions over time. exist for many individuals and and the South West Skills Campus Ensuring that there is a pipeline of communities in the region. We Future Technology Centre. skilled individuals to meet these want to ensure that all adults, requirements will be crucial for the regardless background or personal future prosperity of the region. circumstances can access
15 We want to ensure that residents To address these challenges the West of England will focus on: of the West of England are able � Improving alignment of � Supporting and stimulating to benefit from high quality knowledge and skills supply business, including Small employment and training with existing and future Medium Enterprises, to attract opportunities so that they can employer demands to enable and develop the talent they access employment vacancies. individuals to succeed and need to improve productivity To achieve this we want to businesses to grow support new approaches to � Developing innovative ways lifelong learning, helping adults � Developing an integrated to provide local people to upskill and retrain. Devolution employment, education and with appropriate support, has given the West of England skills system that is engaged information, advice and Combined Authority more and responsive to employer guidance to unlock their control over some areas of skills needs and provides clear career potential and thrive in a provision, in particular the Adult routes into employment modern economy. Education Budget. To address this and to more sustainable and challenge the West of England rewarding careers will work in partnership with work in partnership with education and skills providers, the business community and others.
16 3. Infrastructure fit for the future
The West of England is well connected both nationally and internationally. It also benefits from an outstanding natural environment that attracts people here and encourages them to stay.
We have a motorway intersection performing airport in January Congestion is currently amongst serving the M4 corridor enabling 2016 for a second consecutive the highest in the UK, contributing powerful economic relationships year, plans to increase passenger to dangerous levels of air pollution through to Swindon, Oxford, numbers are constrained by the and presenting a real threat to Cambridge, London (East) and surrounding infrastructure, and the region’s productivity. Public Newport, Cardiff, Swansea (West). the productivity growth of the transport plays a much smaller Likewise the M5 connects the port risks being curtailed by the role than in other areas, only 6 South West and the nationally withdrawal of the rail electrification per cent of residents of the West significant energy projects proposals. of England use public transport at Hinkley and Oldbury and to get to work which adds to the In addition, while this connectivity offers access to the Northern problem of congestion. Added to facilitates a high proportion of Powerhouse via the West this, affordable transport options local businesses competing Midlands. are often not available to link internationally, it also means that residents in some parts of the Bristol Airport and Bristol Port offer problems on the region’s road and region to job opportunities in growing international connectivity rail network have knock-on effects others. and both have growth plans. for neighbouring regions. However, despite Bristol Airport being named the UK’s best
17 Infrastructure is under considerable strain and with a forecast of around 4 per cent increase in the workforce over the next 10 years, the pressure is set to increase. The Joint Transport Study, undertaken by the four councils, has already identified a transport infrastructure deficit of more than £7.5bn to meet the region’s existing and future development needs to 2036; at least twice as much as the West of England councils are currently spending on building transport schemes.
18 Housing delivery and affordability is a critical issue. The West of England councils are working together House prices in the West of England are on average to address these challenges with a strategy to plan between 8-10.5 times the average earnings. This transport infrastructure and houses together. The takes home ownership out of the reach of many Joint Spatial Plan will be the first of its kind in the of our residents and other affordable options are UK, and will allow strategic decisions to be made in short supply. Whilst supply of land, planning to deliver integrated housing, employment and permissions and building of new homes are transport opportunities so we can build sustainable, increasing, there are particular problems of capacity diverse communities which are well connected to in the development industry. In addition, the costs of job opportunities. building and land values on many of the sites lead to higher prices. Ensuring that our workforce has access to an appropriate range, type and tenure of affordable home in the right places to access employment opportunities is critical to ensuring sustainable economic growth.
19 Broadband connectivity and The distinctive regional geography The West of England’s support speed is variable across the also offers opportunity, with for national emission reduction region with Bristol and Bath and the expansive Severn Estuary targets is already driving North East Somerset ranked fairly already subject to two nationally innovation and behavioural well on download speeds and significant nuclear projects set to change across the region. superfast broadband availability, provide 12 per cent of the nation’s However, we recognise that but North Somerset and South energy. The Estuary also affords our unique natural assets and Gloucestershire rank in the opportunities for innovative economic strength affords bottom 100 authorities. All council energy solutions, combined with us greater responsibility in areas suffer from notable no- flood defence schemes that can keeping climate change within spots, including some city centre open economically viable areas of recommended limits. We are locations. the existing floodplain. working with our partners in the four councils to develop a West The natural and historical of England energy plan, a regional environment is an asset that framework for energy and climate attracts businesses and people change that will establish agreed to come to, and stay in, the area. ambitious local CO2 reduction Inevitably the commitment to targets and strengthen our efforts sustaining that environment to transition away from fossil fuel creates constraints and requires use. more innovative approaches to address development demands.
20 To address these challenges the West of England will focus on:
� Improving connectivity in � Enabling employment space the region to increase access to provide opportunities that to jobs, reduce congestion suit the needs of businesses and promote sustainable at all stages transport choices � Supporting high quality, � Improving national and effective digital infrastructure international connections to to address variations in expand the region’s global connectivity and speed reach � Developing infrastructure � Finding innovative ways of that is sustainable for future increasing the availability generations. and affordability of a range of housing types creating communities where people want to live and work
21 Future direction of travel
We are determined to ensure that the West of England is a competitive force on a global scale. We aspire to economic growth rates akin to some of the EU’s most productive economies. To achieve this we will ensure the West of England continues to be a beacon for innovation and economic growth, a talent magnet for investment and a driving force for the UK. The region’s prosperity must be of benefit to all our residents.
This strategy for the West of We are working in partnership We will use this regional strategy England identifies priorities for across the private, public and to develop a business plan for action that are widely shared. voluntary sectors to ensure we the West of England Combined This work has been developed in have a shared sense of purpose. Authority. This will set out what we partnership with the councils and This publication marks the start will do to deliver the strategy and has been based on engagement of a dialogue with all our partners how we will measure our success. with a range of stakeholders over the summer, with a view to The priorities will form the basis of during spring 2017. We want to publishing a final strategy in the decisions about how investment hear the views of partners and autumn. will be made. The strategy will others on the priorities identified in also form the basis for considering this strategy. future discussion with government about what further investment and devolution of powers is necessary to secure future growth in the region.
22 Visit our website where you can find out more about how you can comment on this Strategy. www.westofengland-ca.org.uk
23 Designed and printed on sustainably sourced material by Bristol Design, Bristol City Council BD9179