2Our Strengths, Opportunities and Needs
There are many However, we must address Our 15 year plan sets out improving our housing offer, issues that prevent us from our strategy to transform enhancing the city centre’s reasons to be realising Preston’s potential. the city, targeting resources public realm, together with optimistic about Barriers to sustainable and aligning public and the investments in transport economic growth need to private sector investments and other infrastructure Preston’s future. We be lifted so that the city’s to respond to need and under way across Preston, have opportunities businesses can flourish. Too capitalise on opportunities give us a strong platform on many of our residents are for positive change. which to build. in front of us to held back by the multiple The good progress we cement our role challenges of deprivation, have already achieved in and we need to find better as Lancashire’s ways to raise prosperity and major commercial, improve their health and wellbeing. Our infrastructure educational and needs sustained investment cultural centre, and to be fit for the 21st century and the challenges that to do this in ways climate change will bring. The which maximise Covid-19 crisis has created an immediate imperative to the benefit of those support the city’s economic opportunities for all and social recovery. our communities.
46 47 Business Enterprise 2 Innovation Economy: Business, Our Strengths Enterprise and Innovation Preston’s contribution to BAE Systems operations • Substantial public sector Lancashire’s economy is and at Blackpool Airport employment based substantial. There are 90,000 and Hillhouse in Wyre. in Preston including jobs in the city across a wide Together these form the Preston City Council, Preston is established as a major employment range of business sectors, Lancashire Advanced Lancashire County with 71,000 in the area Manufacturing and Energy Council, civil service and centre, with a dynamic and growing business which is the focus of our Cluster (LAMEC), a centre the headquarters of the base underpinned by a substantial workforce City Investment Plan. Our of excellence for high tech fire and rescue service. 6,600 business units span manufacturing, energy There are 12,500 jobs in from within and outside the city. We want a similarly wide range of and chemicals. health and social care sectors, around 65% of which alone in Preston, with the to realise the full commercial potential of operate in the CIP area. Key • A well-established Royal Preston Hospital a the city, increase the number and the quality economic strengths are: financial and professional major employer in the city. services sector which These are sectors whose • Preston’s role in the reflects the city’s historic of jobs Preston offers, create and grow advanced manufacturing value has been underlined role in Lancashire. Preston by the Covid-19 crisis. Our businesses in the city, attract the investment and engineering sector is the major centre for in which Lancashire public sector employers office-based sectors in are anchor institutions to back the objectives of the Preston Model is a leading UK and Lancashire, with major international location. for the city’s economy, and ensure our communities benefit from new office-based operations and an essential part of Engineering employs for companies including 85,000 people across delivering community investment. Talk Talk, Homeserve and wealth-building through Lancashire, offering Places for People. skilled and well-paid the Preston Model. jobs for the city’s residents, contributing to Preston’s prosperity and providing a focal point for innovation through major developments including UCLan’s new Engineering Innovation Centre. Preston is located at the centre of a network of four Lancashire Enterprise Zones, at Samlesbury and Warton adjacent to
48 49 2 • Beyond the important Preston’s Cultural and retail and leisure economy in the city, wholesale and Creative Economy distribution employment in Preston is substantial A visitor economy which attracts and has grown quickly in around 7 million visitors a year recent years, with James generating £330 million of visitor Hall & Co one of Preston’s spending and supporting 4,000 largest individual employers at 3,500. jobs in Preston in retail, leisure, cultural and creative industries. • Preston’s business birth rate is faster than that of Preston has 13% of Lancashire’s Lancashire, although its creative industries employment business failure rate is also and 11% of its creative industries higher giving a similar net businesses. business birth rate of 0.6. Both lag the net business Creative industries account for 370 birth rate for England of of Preston’s businesses (6% of all 1.2. businesses). With 94% employing • Growth in new businesses fewer than 10 people, micro- between 2013 and 2019, businesses are the key component which has accelerated of the city’s creative enterprise. over the last two years, in sectors including Creative sector employs around professional, scientific 1,800 people, with many more self- and technical sectors, employed people in the sector. transportation and storage, administrative The city has a healthy freelancer and support services, economy with an average of 60 construction and education. individual artists and practitioners some full time and others part time • An increasing desire from working around other employment investors and wealth funds to place their funds in locations underpinned by a clear social and community purpose can maximise the reach of the Preston Model.
50 51 2 Our Key Challenges Despite its strong position • Preston’s commitment • Preston has a productivity gap. The need to • Lancashire’s Local as an employment and to community wealth- challenge. Gross Value drive up productivity is Industrial Strategy business centre in Lancashire, building is in part driven Added per full-time recognised as a priority in evidence base shows Preston faces challenges to by the need for more equivalent job stood the emerging Lancashire that the area’s headline its economic resilience and higher paid and higher at 78% of the figure Local Industrial Strategy, performance in terms future growth. quality employment for England in 2018. which points to the gap of R&D investment is opportunities in the city. Around 40% of Preston’s between Lancashire and lagging. Business R&D • By 2018, Preston had only The wages of residents GVA is accounted for the UK having widened investment per head is seen employment recover lag well-behind the by the wholesale and over the past 20 years. only 80% of the England back to the level at which Lancashire and national retail sector, public average. Closing the it stood in 2009. Falling averages, and workplace administration and performance gap has job numbers particularly wages are also much defence, and human an important part to in the public sector lower than the average health and social work. play both in increasing (administration, health, for England. Preston ranks These sectors are major the productivity of care, education), ICT and in the bottom 10 cities in employers, but they are Lancashire’s economy and financial services during the UK in average weekly also lower productivity supporting the drive for recession were followed workplace wages. sectors and this is an higher quality and better by some stabilisation important contributory paid employment. and recovery, particularly factor in the productivity during the latter half of the 2010s.
£ 600 £ 591 £ 591 47% £ 580 46% £ 560 £ 537 46% £ 540 £ 532 £ 526 £ 520 £ 503 £ 500 £ 480 44% Figure 2.2 Figure 2.2 £ 460 Figure 2.1 Median Gross Percentage of Businesses in Weekly Earnings, Full-Time, Most Impacted Sectors £ 440 2019 Source: Business Impact of Preston Lancashire England Source: Annual Survey of Coronavirus Survey, ONS, April 2020; UKBC, ONS, 2019 Resident Workplace Hours and Earnings Preston Lancashire England North West
52 53 2 Key Opportunities and Needs
The Covid-19 crisis has By June 2020, 2,400 Preston’s substantial public Capitalising on the strength of established sectors – including health and care, immediately and significantly businesses in Preston had sector employment means professional services, education, advanced manufacturing and engineering – to affected Preston’s economy, received a total of £28.7 it has been less exposed drive recovery from the Covid-19 crisis, deliver high quality new jobs for the city and there is an urgent need million through the UK than other areas to furlough and ensure that many more of our residents have the potential to secure better to mitigate its impacts and Government’s coronavirus measures and redundancies paid jobs. support the recovery of our two grant schemes. The to date. Public sector jobs businesses and communities. schemes include a small are not eligible for the UK Supporting the recovery and growth of Preston’s visitor economy by diversifying A comparatively high business grant scheme, and Government’s Coronavirus and strengthening the retail, leisure and cultural offer at the heart of the city proportion of the city’s a scheme explicitly for the Job Retention Scheme, and centre. We need to invest in the facilities, events and supporting infrastructure businesses operate in sectors hospitality, retail and leisure public sector organisations that will bring people back to the city centre and give them good reasons to most impacted by Covid-19, sector. in the city, together with key spend more time and money there. sectors in which businesses workers in the private sector, have seen a fall in turnover The key issue for businesses have played an absolutely Building on Preston’s innovation assets including UCLan and its Engineering of 50%. In particular our in the visitor economy has critical part in the battle Innovation Centre to increase collaborative R&D with businesses, driving up visitor economy including been the unprecedented against the virus and in commercial innovation activity and improving business productivity. our important retail sector, reduction in customers, supporting communities and arts and cultural facilities and including residents, visitors businesses in the city. businesses, and food and and people working in Creating the environment that encourages the formation of more businesses in drink and accommodation the city. Evidence on the Preston both through the space and facilities that enable businesses to put down businesses, have been dramatic drop in people roots in the city and wider support measures, including through the community severely affected by the using Preston city centre wealth-building programme. lockdown measures. underlines the magnitude of the impact.
16 March - PM urges 4 July - Pubs re-open in 100 working from home 15 June - Non-es- x England 13 May - First easing of sential retail restrictions re-opens
all inde 50 24 March -Lockdown er begins Ov 0
Mar 1 Apr 1 May 1J un 1 Jul 1
Figure 2.3 Preston City Centre Use Pre and Post-Lockdown (Pre-lockdown = 100)S Source: Centre for Cities (July 2020) High Street Recovery Tracker
54 55 2 Community People and Our Strengths The size and diversity of In addition to the young age • The city’s large student Communities Preston’s population is vital profile of our population, the population, with 23,000 asset for our city. Their skills key strengths of our people students studying full and and talent are essential to and communities are: part-time at UCLan. This Improving the health and the future success of our is a substantial pool of wellbeing of Preston’s people and economy, and we must • Our resident workforce talent for employers in provide the opportunities and skills base, with the city, a driver of ideas communities is a priority of our and support that enables 73,000 working residents and innovation for the them to realise their of Preston in 2019, 46,000 city, and a source of new plan. An economy in which the potential. of which lived in the City businesses. Investment Plan area. education, skills development and Preston’s population of Preston’s employment • The diversity of Preston’s training of our residents enables 141,800 is substantially rate of 78% compared population (ethnicity, younger than the Lancashire with 75% in Lancashire faith, culture, sexuality and them to secure good jobs or start or England average. Around and 76% in England. gender) is also a source 67% of the population of of strength. Around businesses is a key to achieving the City Investment Plan • The contribution that 34,000 (24%) of the city’s this, building on our community area is under the age of our population makes residents were estimated 44, compared with 54% to supporting the city’s to define themselves wealth-building initiative. We must in Lancashire and 56% visitor economy, with as non-White British in in England. With the Preston’s residents’ part 2016, with Asian and also tackle the persistent health UK’s ageing population of a wider retail and Asian British residents inequalities which are a barrier to an important economic leisure catchment area of the largest cohort at 15% challenge, this is a source 500,000 people. of the city’s population. economic and social mobility, and of future strength for our This has given Preston an city and we must ensure we increasingly cosmopolitan which limit the life chances of too retain our young people. quality.
many people. 0-15 16-24 25-44 45-64 65+
England
Lancashire
Preston
CIP Area
0% 20%4 0% 60% 80%1 00%
Figure 2.4 Population Profile 2018 56 Source: ONS Mid-Year Population Estimates 57 2 Our Key Challenges • Wellbeing data which • Young people who • A well-established and There are pressing challenges • Employers surveys show • Many of our young people suggests that there get a good start in committed network of for Preston to address if we a significant proportion are getting a good start have been consistent our schools, with our amateur and community- are to deliver inclusive growth (22%) of Preston’s in education and work, improvements in the primary and secondary led organisations in the city. businesses lack the skills but they are also more number of Preston’s school attainment levels engaged in arts and they are seeking, and likely to face the challenge • The proportion of residents reporting comparing favourably cultural activities across that a higher proportion of unemployment, residents working in that they are happy with those of Lancashire the city, with good than the national average which is very likely to higher paid, higher and satisfied with and England. Our examples including have staff lacking full be exacerbated by the managerial and their lives, and a fall in schools and further Preston Arts Association, proficiency in the skills effects of the Covid-19 professional occupations, the number reporting education colleges are Preston Caribbean that are critical to their crisis. Across Preston, and the proportion feelings of anxiety. In key to ensuring that just Carnival and the city’s business. Chorley and South Ribble, qualified to degree level 2018-19, Preston scored under 90% of young community choir 2018 estimates suggest or higher, are both lower • Preston sees a net better than the England people stay in education amongst many. that 18% of 16-19 year than the national average. outflow of people each average on all the key after age 16, 7% take up olds were unemployed. This underlines the need year, in particular in the sentiments of wellbeing. apprenticeships and 4% Data on the proportion to bring more higher 25-34 age group but it This is consistent with secure work. of children in workless skilled and higher paid job is also the case in most our #WhatsYourPreston households further opportunities to the city, age groups. Since 2013, survey which pointed to underlines the issue. At and to encourage more the net outflow has positivity about the city. 13%, Preston had a higher of our graduates and reduced, driven in part proportion of children in higher skilled workforce by an expanding student workless households than to choose to live, work population. However, either Lancashire (7.8%) and start businesses in there is a long-established or England (10.5%). Preston. pattern of younger working age people • Preston lags well behind leaving the city to live the Lancashire and elsewhere. England averages in gross weekly wages. • Population projections The Preston Model point to a 30% increase has set out to improve over the next 25 years the quality of work in the number of available to our residents, people aged over 65 including initiatives to in Preston, and a 50% encourage more of the increase in the over city employers to pay the 75s. Preston’s resident national living wage as a workforce is ageing, as minimum. is that of Lancashire. Attracting and retaining more younger working people is essential to the city’s future economic prospects. 58 59 2 • In an economic degree level indicates of deprivation are found • Preston ranks 31st of 317 • The effects of deprivation • A cultural and creative environment in which that Preston has a smaller around the city centre local authority areas in and poor health outcomes infrastructure which continual technological proportion of residents in Preston and along the England on the health for Preston’s more relies heavily on development is changing (35%) qualified to degree corridor to the east of deprivation index. deprived communities the commitment of the types of work and level or higher (NVQ4+) the city centre. These Essentially a measure of are likely to be affecting communities and occupation that are than the England areas contribute to the 16 the risks of premature life expectancy trends. individuals to deliver, required, and the skills average (40%), while lower layer super output death and the impairment Male life expectancy in and whose capacity needed to succeed in 7% of residents have no areas (LSOA) which are of quality of life through Preston currently stands and resources bring them, flexibility and qualifications. in the 10% most deprived poor physical or mental at around 78 years, one challenges both to the adaptability will be nationally, 6 of which are health, this is the domain of the lowest figures in growth of this activity and increasingly important • Deprivation is a long- in the most deprived 5% of the IMD in which Lancashire, and there are its sustainability. qualities for young people. standing problem for nationally. To the north Preston’s rank is the signs that it has plateaued However, data on the some communities of the city, Preston has lowest of all the domains. during the last 10 years. proportion of residents across Preston. The several areas in the least Female life expectancy who are educated to highest concentrations deprived LSOA nationally. • There are substantial has actually fallen over the numbers of residents last four years. of the city who face the combined and linked • Preston lacks a holistic challenges of low incomes health and wellbeing and involuntary exclusion strategy for the city. This from the labour market. is in part as a result of the Of those faced with complexity of the two- labour market exclusion, tier local government 22,600 of Preston’s structure in Lancashire residents fell into this where responsibilities category, with 10,500 are distributed between income deprived. The district and County and effects of this problem also in part as a result are felt by children, with of the different place 5,600 children aged 0-15 footprint which the health living in income deprived services operate on. families, and in older Community health and households in which 5,250 wellbeing is inextricably of the city’s residents are bound up with economic Local Authority Boundary income deprived. wellbeing, and our Index of Deprivation (0-1 is most 10% deprived area City Investment Plan nationality) 0-1 recognises the need for 1-2 action on both fronts. 2-3
3-4
4-5
5-6
6-7
7-8
Figure 2.5 Index of Multiple Deprivation in Preston, 2019 8-9 60 Source: English Indices of Deprivation; Hatch Regeneris; Contains OS Data – Crown Copyright 9-10 61 2 The impact of Covid-19 on Our City Key Opportunities and Needs
The Covid-19 crisis has offered protection against had a substantial and redundancies, there is a Retaining more of Preston’s graduates and young people is already an established immediate impact on the risk of further significant priority for the city. The outflow of working people and families in the 25-34 year old city’s communities and its rises in unemployment as age group, many to the surrounding area, is also a long-standing feature of migration workforce. the two schemes taper from Preston. They are a vital part of Preston’s future workforce and business off. creators, and we have more to do to provide the range of employment opportunities, • By the end of May 2020, the right housing and a cultural and leisure offer that will persuade more of them to 15,400 jobs in Preston had • Since March 2020, 26% put down roots and build careers in the city. been furloughed as part of all deaths in Preston of the UK Government’s since March have been Our young people are well-served through our Preston’s and Cardinal Newman Coronavirus Job attributed to Covid-19, the Colleges and UCLan, and through employer-led training and skills development in Retention Scheme, and same rate of nationally the city. We need to sustain and increase investment in the facilities and services 3,800 self-employed Covid-19 attribute deaths. that help raise attainment levels, equip young people with core employability skills, people had taken up the Preston’s Covid-19 death the skills required by the city’s key sectors and those needed for a future economy Self-Employed Income rate per 100,000 people driven by technological rapidly developing digital economy. Support Scheme, 70% is significantly higher than of all the eligible self- that of Lancashire and We need to make much more of our arts, cultural and leisure sector to increase the employed people in the England. This is despite engagement and participation of our communities across the city. This will support city. the city having a lower the economic resilience of a vital sector for Preston, and contribute to our efforts to proportion in the most “at improve the health and wellbeing of our residents. • Unemployment rose risk” population (those from 3,300 in December aged 70+). The problem We need to deliver a bold, integrated community health and wellbeing strategy (2,900 in the CIP area) of deprivation faced for the city, establishing it as a strategic priority on par with inclusive growth and to 6,450 and 5,400 by some of Preston’s community wealth building, and reflecting the importance of good health outcomes respectively by the end communities is likely to in the city’s economic development and regeneration. Ensuring our communities of May 2020, increases have been an important directly benefit from increased wealth generated in the city is a core objective of the of 92% and 85%. Whilst contributory factor to Preston Model, and a key determinant of better health and wellbeing. furlough and self- these figures for the city. employment support has This means building on our strong health and social care sector and UCLan’s proposals to increase learner capacity in health and care professions, extending 120.0 104.9 preventative community health initiatives and capitalising on our land assets to 98.9 100.0 deliver an innovative, integrated community health and wellbeing facility which Figure 2.6 Covid-19 Death 81.9 incorporates users, innovators and providers. 80.0 Rate per 100,000 (Age 69.3 Standardised Population) 60.0 Source: Number of deaths Supporting and developing opportunities for our communities to lead and and age-standardised participate in arts and cultural activity across the city by providing enabling 40.0 rates, by sex, England and resources and facilities. This is about both the recovery of Preston city centre from Wales, England, Wales and 20.0 the dramatic fall in footfall that has resulted from the Covid-19 crisis and, in the regions of England, deaths longer-term, to diversify and expand the range of facilities and activities that will 0.0 occurring between March and May 2020, ONS, 2020 encourage more residents and visitors to spend time in the city centre. Preston North West England North West 62 63 2 Place Our Strengths Our residents have highlighted Our place strengths • The Preston, South Ribble • There is renewed local, through our #WhatsYourPreston combine our city’s historical and Lancashire City Deal regional and national buildings, our cultural and has supported a step developer interest in both survey what they value about the leisure assets, our green change in the quantity Preston’s suburbs and city as a place to live, work and infrastructure and our and range of Preston’s centre. The City Council has location: housing offer, particularly developed a strategy to in north west Preston. support the delivery of new spend leisure time in. Pride in its • The city has strong It is delivering a major homes in the city centre, representation of history and heritage infrastructure, package of transport with a vision to create national retailers, with and infrastructure works a series of vibrant and the city’s compact size and 146 different national totalling over £430m popular neighbourhoods. brands, many located of public investment, Transformation is already its leisure facilities, its green within two shopping levering a further £2.3bn starting to happen. centres - Fishergate infrastructure and its setting and of private commercial The number of vacant and St. George’s - or investment into new commercial buildings being location are qualities recognised along Fishergate which housing and employment converted to apartments connects them. They are developments. From a is steadily increasing, by our communities. They have complemented by a mix position in 2013 when with the delivery of 140 of independent retailers, also told us that improving what Preston was delivering no apartments in Red Rose food and drink providers, new housing, over 5,000 House and Elizabeth is distinctive and valued about a feature valued by the new homes have been House. The former Grade city’s residents. The re- completed since the start 2 listed Sorting Office Preston is important to them, and modelled Preston Markets, of the City Deal. with in Preston has been which opened in 2018, our plan strongly reflects this. consent for 9,000 more converted into 31 one, two have already established a which will significantly and three bedroom luxury reputation as a shopping expand the city centre’s apartments completed and leisure hub, with catchment. An average with communal rooftop the Grade 2 listed of 737 new homes gardens and Mulberry ‘European style’ market per annum have been Homes in partnership with delivering an attractive delivered over the past 3 Adactus are delivering 189 food offer. Preston city years, with 3.4% average new homes including new centre is also the only house price growth in the affordable houses and place in Lancashire to past 12 months compared an extra care facility. The be awarded Purple Flag to a national average of latest City Living Strategy status – recognising the 1.2%. Rental growth is also identifies 25 sites available progress Preston has strong – growing 7% year for residential development made in delivering a safe on year. within the city centre and and vibrant night-time the surrounding inner core economy. neighbourhoods.The City
64 65 2 Council has a ‘retain first’ and stimulated new The Square has become listed Moor Park provides • Green space within the diversity. This includes objective with regard investment along the the focus of city centre an expansive green city is identified as a creative workspaces to the development of high street including the living in Preston with over area for the city with strength by residents. such as Society 1 and its own assets, building opening a national brand 200 apartments currently a substantial number In addition, Preston’s Make North, the annual on the Preston Model, restaurant in a former and being delivered in the of sports and leisure strategic and accessible arts, performance and and recognising that long term derelict church. Square and adjacent facilities. To the west, location by road and music festival Lancashire intervention by the streets. Winckley Square Ashton Park provides rail provides excellent Encounter and festivals public sector in addition • Off Fishergate, Winckley is returning to its position another green lung for the access for residents and such as the Caribbean to private investment is Square and its Georgian as one of the most city. visitors to the Blackpool Carnival, the biggest often essential to unlock buildings provide a green desirable addresses in the and Fylde Coast, East such festival outside the viability challenges. haven at the heart of the city for living, working and • The city’s historic docks Lancashire and its access Preston Guild, and the city centre. Following an eating. brought shipping to to the Pennines, and the annual Preston Mela, • The Grade 1 listed Harris innovative transfer of the the centre of industrial Forest of Bowland AONB, UCLan’s Jazz and Science Museum, Art Gallery and square from the Council to • Close to the city centre, Preston and were the Lancaster and Cumbria, festivals, Rockpreset, Library attracts 350,000 a business led Community the Grade II listed and largest inland dock in the and to the south the Prestfest, Harris Open, visitors annually to the Interest Company (CIC) award winning Avenham UK at one time. Since Greater Manchester and Summer Saturdays, many neo-classical style 19th the square has recently and Miller Parks are their closure the area has Merseyside metropolitan other community led century building in the benefited from a £1.2 identified amongst seen substantial waterside area. events. In 2019-20 over centre of the Harris million refurbishment residents’ favourite places residential development, 100 events were held in Quarter. Alongside the investment and secured in the Preston, providing new retail and leisure • A range of cultural events, Preston’s public spaces Harris, there are several Green Flag status substantial green space development and the activities and facilities and in its parks. The 20 Grade II Listed buildings in stimulating private sector and access to the River marina is now a focal recognised by residents yearly Preston Guild is the city centre including investment in a number Ribble. To the north of point for yachting and for their independent the city’s highest profile our Town Hall, Magistrates of surrounding buildings. the city centre, Grade II boating. spirit and celebration of event, an internationally Court, Sessions House and significant festival next the Former Post Office scheduled for 2032. and Preston Station. • A range of small and • Fishergate, Church Street medium size professional and Friargate are the organisations delivering city’s core historic streets. interesting and innovative Preston has recognised arts and cultural activities the value of conserving and facilities in the city, and making best use of including: In Certain these assets. The recent Places, Derelict, Blaze, investment in Fishergate Make North, Birley has transformed the Studio, Tin Can People, experience of walking Salsa Northwest, They from the station to Eat Culture, Blue Moose, the heart of the City Northern Heart Films and Our Allison.
66 67 2 Our Challenges
Improving Preston’s quality Lancashire overall. The net • Although a strategy is • Historically Preston’s average of 24.1%) but the • A deficit of accessible as a place is a priority for the absorption of office space in place to deliver new offer was focused on proportion of floorspace and affordable spaces for City Investment Plan and we in Preston over the past homes in the city centre, retail. While relatively falls below the UK average arts and cultural activities understand the challenges: 12 months is 57,000 sq ft its existing stock reflects resilient pre-Covid-19, (22.0% compared the UK in the city, particularly and this figure is skewed its historic industrial • Preston has no supply structural change in this average of 25.1%). for short term ‘pop-up’ as it includes the HMRC heritage. Over 80% of of Grade A office space sector means we need to type exhibitions, studio lease renewals which the city centre stock • The existing retail and in the centre and has diversify and improve the spaces and arts hubs. would actually produce is terraced or flats/ leisure stock is generally seen no new office quality of the city’s wider Such spaces tend to a negative figure. Given maisonettes and around quite dated and has development in the city offer, particularly cultural be available on short these values, speculative a third is social rented. lacked investment in centre in over 20 years. and leisure facilities leases and the long-term development of Grade A Around 50% of housing recent years. Low rental The existing supply of in the city centre, the sustainability of such office space in unviable – in Preston is in Council levels of £26.85 psf in offices in Preston city independent offer and the activity is difficult to generally rents need to be Tax Band A. In order Preston do not incentivise centre is made up of a evening economy to draw secure. in the mid £20s psf. to be able to attract a the private sector to combination of largely in a wider demographic wider range of residents, and new visitors. Our invest in existing stock or • Reliance on short terms un-refurbished 1960/70s • As a result, Preston is in particularly economically evening economy remains support new development grants for arts and blocks or converted the difficult position of not active, the city must offer dominated by ‘wet-led’ to stack up. For context culture which offers little Georgian buildings which having the type of space a much better choice of establishments and retail rental levels average guarantee of repeat have their challenges that will attract occupiers homes. the city centre lacks a £31.60 in Lancaster and funding and hampers the in terms of layout and who will pay higher values cinema and a range of £53.40 psf in Manchester growth and development infrastructure which and without higher values family-oriented restaurant city centre which is 50.3% of organisations and limits occupier demand. being achievable the brands. These are issues higher than current individuals. Arts Council Average overall office private sector will not be raised by residents in average rental levels in England currently invest rents in Preston are able to finance speculative our #WhatsYour Preston Preston. £7 per head annually £9.87 psf, compared to development. However, survey. For comparison across Lancashire’s £10.48 psf for the wider a 2020 study by Knight goods the city centre 1.5 million residents, Lancashire region. This Frank and Robert Pinkus is below average for compared to £35 per represents a negative reported demand for the number of units head in Liverpool and £38 rental growth of -2.9% high quality office space (28.4% compared to the per head in Manchester. over 12 months. Rents in Preston City Centre UK average of 30.6%) in Preston are on existing from a range of but more substantially average 40% lower than sectors and occupiers, above average for the Manchester, only 30 creating an opportunity proportion of floorspace minutes away by train, for to improve the quality of (40.1% compared to the example. Office space in office stock, attract new UK average of 34.6%). Preston currently spends businesses to Preston and The proportion of units on average 14.9 months contribute to economic occupied by leisure on the market and there growth in the city and operators falls marginally is a vacancy rate of 5.3% wider county. compared to 4.9% in above the UK average (26.4% compared to the 68 69 2 • Preston Guild Hall was • Investment in Fishergate • Preston city centre has a a major regional and and Winkley Square has relatively large number of national attraction – demonstrated the impact buildings and land which hosting the UK Snooker that investment in the have not come forward Championships for 20 public realm can have on for development for many years. However, this surrounding vacant and years, in part as a result substantial venue has underused buildings. This of viability challenges, not been able to the positive impact has shone but also because assets respond to the changing a light on the quality are held either by leisure market and has of public realm/streets ‘distant’ landlords and/ to be taken back into the scape in other parts of or investors who are not ownership of the public the city such as Friargate. engaged in or with the sector. Further investment is City, or conversely held by required in public realm national businesses with • As with the office market, to enhance experiences a historical connection low rental levels do not and encourage visitors to with the City who are incentivise the private explore the city. not incentivised to bring sector to invest in existing forward development. stock or support new The City and County development to stack Council responded to up. This is particularly MHCLG’s January 2020 an issue with a number consultation for evidence of attractive heritage in this regard. buildings which could create amazing spaces but require additional investment to bring them back into productive use or to attract quality occupier which will not currently be supported by enhanced rental values.
70 71 Key Opportunities and Needs A significant opportunity for Preston to respond to pent-up demand from occupiers who have not had the option of any Grade A space. Values will not attract the private sector to drive this and public sector intervention is needed to deliver a new commercial district in the Preston Station Quarter to stimulate new commercial activity in its own right and deliver the essential Grade A office space to support significant research, innovation, and knowledge-based sectors, and complement our existing manufacturing and knowledge assets in our universities, Enterprise Zones and 2 major employers. Developer interest in city housing needs to be harnessed through public sector The impact of support to ensure abnormal costs around demolition, ground conditions and access can be overcome to deliver new homes. This will diversify the supply and contribute Covid-19 on Our City to attracting and retaining more young people and families and their subsequent The Covid-19 crisis has seen Covid-19 has also had spending power in the city. A bigger and more diverse residential catchment will also a dramatic fall in footfall in immediate impacts on the support the city to strengthen and diversify its cultural and leisure offer, including its Preston city centre and across residential and commercial evening economy. the city. Many businesses in property markets in Preston, We have a wealth of attractive historic assets that can be utilised to enhance and the retail and leisure sector, although the magnitude of diversify our offer supporting more leisure (including food and drink) and creative together with arts and cultural these impacts is not yet clear. industries (linked to its creative history and existing cluster of businesses). Investment organisations, have had to House purchase transactions in the Harris Museum will be central to this but this must be supported by a critical temporarily close in response have fallen substantially. mass of other attractions and associated uses well connected through quality to lockdown measures. How There were only 75 sales streetscapes. This includes building further on our successful market and public realm many will close permanently recorded in Preston in March investments, creating new and enhanced destinations supporting the wider Harris is yet to become clear, but 2020 compared with 389 in Quarter offer. it is likely that the impact of March 2019, and very little the recession triggered by activity has occurred since The city centre needs further investment that improves public spaces and street scene Covid-19 will significantly March. A short-term rise in to support the regeneration of key historic streets and strengthen development values affect consumer spending commercial property vacancy in the retail and leisure sector. There are opportunities to make better use of other key and the prospects for quick is likely as a result of business heritage assets in the city centre including buildings, market spaces, public spaces and recovery of city centre trade. failures, and changes in streets, including the renovation and repurposing of under-used and disused buildings. The immediate issue is to working pattern, particularly reopen the city centre in home-working, associated The immediate need to drive footfall back into the city centre to aid the recovery of ways which give residents, with Covid-19 may lead to our businesses and communities from the Covid-19 crisis, and to generate sustained students, workers and visitors changing requirements for increases in the number of residents and visitors spending time in the city centre. This the confidence to spend time office and other commercial means investing in the buildings, facilities and spaces that will attract people to the there, and to do so safely floorspace by businesses. city centre, and to the development of events and new opportunities for participation. in light of continuing social However, it is considered that The opportunity to further improve Preston’s market offer, building on the successful distancing measures. given the scale of Preston it investments we have already made. Thriving markets continually adapt to new trends could benefit from businesses and tastes, and there is potential for us to make much more of our street food offer wanting smaller and more and to broaden their appeal to a wider demographic, including young people. accessible locations. UCLan is a major asset for the city which needs to be harnessed not only in terms of the physical change that the delivery of its masterplan will support in unlocking and enhancing new investment in the city but also in terms of the value that a strong university has to support the reputation and spending power of its employees and students studying and living in the city. Our historic parks are a vital asset to the city and there is an opportunity to enhance the contribution this green infrastructure makes to active living for our residents and our priorities to improve the health and wellbeing of our communities. They are also part of the broader offer that makes the city attractive to new residents, businesses and visitors, and we must ensure that we safeguard and improve them.
72 73 2 Infrastructure and Our Strengths Connectivity • Preston Railway Station • The regeneration of the • Preston’s economy and is the busiest in the iconic Preston Bus Station communities benefit from North West outside of in 2016-2018 provides easy access to motorways Preston’s locational advantage and Manchester and Liverpool, appealing and modern including the M6, M61, with 4.5 million annual infrastructure for the city. M55 and M65. Lancaster, good connectivity are recognised passenger trips and A network of local and Liverpool, Manchester and over 1.25 million annual regional bus services, Salford are within a one as real strengths of the city. Strong interchanges. Located and national coach hour drive of Preston, and transport infrastructure and in the city centre, it is a services, operate from the provide excellent access strategic public transport station, serving over 150 to the Blackpool and facilities provide good access into infrastructure hub primary communities and Fylde coastline, Pennine where four railway lines destinations across 39 Lancashire and the Lake and out of the city, and major new converge and frequent stands. The refurbishment District. The recently investments through £430 million direct trains are available of the station provides completed Penwortham to destinations across the an opportunity for both Bypass and the Western via Preston’s City Deal and more country. There are direct active and sustainable Distributor are further services to Blackpool travel through the enhancing connectivity recently the Transforming Cities North (4 trains per hour), promotion of multi-modal to the strategic road Fund are further enhancing our Edinburgh and Leeds journeys. The opportunity network. (all 1 train per hour). The to transform bus corridors connectivity and accessibility. This opening of Phase 1 of across the city would HS2 linking London with further reinforce this infrastructure is crucial both to Birmingham by 2031 investment. will reduce the travel achieving our growth objectives for time between Preston Preston and to our commitments to and London by over 25 minutes. Completion of tackling climate change. Phase 2, broadly aligned with the end of our 15 year plan, will reduce the travel time between the two cities down to 78 minutes
74 75 2 Our Challenges • There are several city • Preston has exemplar • Central Preston’s digital Whilst Preston is well-served alternatives to the car and • With the continued centre sites which are public realm schemes connectivity is strong. by its enabling strategic encourage sustainable acceleration of significant development in the city centre, with 98.6% of residential infrastructure, there are travel. developments in mobile opportunities for Preston. the Fishergate scheme and business premises issues to address if it is to technology and advances This includes the Preston as the centrepiece. This have access to superfast contribute to achieving the • The rationalisation of city in computing technology Station Quarter which has scheme demonstrates broadband at speeds of city’s economic potential, centre car parking would including artificial the potential to deliver a the distinctive approach 30 Mbps or better, and improve movement and influence the choice of intelligence, Preston must major office, knowledge to placemaking that is 77% of premises access accessibility and deliver clean travel mode that residents keep ahead in the roll out and leisure development; evident in Preston and to ultra-fast broadband growth. and visitors take. The of 4G/5G infrastructure, the 25 hectare Stoneygate provides a foundation capable of 100 Mbps or timing of investment in and continue to secure • Whilst CO2 emissions per Masterplan area, a for future public realm better. This is a crucial highway infrastructure, investment to expand capita in Preston have significant opportunity improvements, creating asset at a time when such as the Western its ultra-fast broadband fallen, the drop has not to deliver around 1,600 streets that promote the digital economy is Ribble Crossing, that provision. been as fast as that of new homes in the centre walking and cycling, growing rapidly and would provide new route Lancashire or England of the city; the £200 balancing the needs when home, mobile options away from the • There are still areas of over the last 15 years. million UCLan campus of all road users. The and commercial activity city centre, also has a role residential and business Preston ranks amongst masterplan which would initiative has helped to demands higher speeds to play in shifting towards premises in the city the 10 English cities with transform the area around reduce vacancy rates at a and capacity. low and zero carbon centre which do not the highest per capita the university and links challenging time for high modes in the city centre, yet have access to emissions in the UK. In into the city centre. street retail, and enhance particularly walking and ultra-fast broadband addition, the city is also in the quality of a key city cycling, as traffic levels infrastructure, and some the top 20% of UK cities centre corridor. and severance reduce. of our communities by levels of transport and businesses lack related pollutants • The 10-year strategy the resources needed including Nitrogen for walking and cycling to connect to this Dioxide. across Lancashire includes infrastructure. There targets to double the is a related challenge • Car use continues to be number of people cycling, of ensuring that our the dominant mode of increase the number communities and travel into and out of the of people walking by workforce have the city. There is currently 10%, and bring levels of skills to make the most a lack of incentive for physical inactivity in every of changing digital residents and visitors district below the national technologies. to switch to alternative average, all by 2028. modes of transport. Investment in physical Improvements to public infrastructure, and transport, both rail behavioural measures and and bus, together with initiatives, will be required investment in walking and to achieve these aims cycling networks, will be and enable clean growth needed to provide viable across the city. 76 77 2 Key Opportunities and Needs
Our successful City Deal and Transforming Cities Fund investment provides a strong platform for further investment in the city’s transport infrastructure and particularly for improvements to movement and accessibility across the city centre. This includes the need for a step change in the provision of walking and cycling infrastructure, combined with behavioural measures and initiatives, to make walking and cycling part of everyday life.
HS2 and the delivery of the Preston Station Quarter opportunity has the potential to create a new central business district in Preston, as well as a site capable of also being a potential location for a new community health and wellbeing facility for the city.
The need to invest in strengthening digital skills in Preston, focusing particularly on younger people but recognising also the general need to equip our residents, businesses and workforce with the capability to respond to a rapidly changing sector.
Supporting the delivery of the UCLan campus masterplan, including opportunities to invest in connectivity and public realm improvements between the campus and the Harris Quarter, and the potential for further developments of innovation facilities in the city centre.
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