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Our Strengths, Opportunities and Needs

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Our Strengths, Opportunities and Needs 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.
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