Local Development Strategy 2015 - 2020

MID DEVON AREA LEADER LOCAL DEVELOPMENT STRATEGY 2015 - 2020

Mid Devon Leader Local Development Strategy 2015-2020

The REALDevon Local Development Strategy has been approved by:

Mid Devon Leader Local Development Strategy 2015-2020

REAL (Rural Enterprise And Livelihoods) Devon LEADER Local Development Strategy

Contents 1. Introduction ...... 1 2. The Local Action Group Partnership ...... 2 2.1 Membership ...... 2 2.1.1 The Local Action Group (LAG) ...... 2 2.1.2 Executive Group ...... 2 2.2 Structure and Decision Making Process ...... 3 2.2.2 Structure ...... 3 2.2.3 Decision Making ...... 4 2.3 Local Action Group Staff ...... 4 2.4 Equal Opportunities statement (the public sector equality duty) ...... 5 2.5 Involvement of the community and consultation activity undertaken ...... 5 2.6 Training requirements ...... 6 3. The LAG Area ...... 7 4. REALDevon – Our Strategy ...... 8 4.1 The National Context ...... 8 4.2 Analysis of our Challenges ...... 8 4.2.1 REALDevon – Our Businesses ...... 8 4.2.2 REALDevon – Our People ...... 12 4.2.3 REALDevon – Our Place ...... 14 4.3 ‘SWOT’ analysis of the local area ...... 17 4.4 REALDevon Local Priorities ...... 18 4.4.1 Strategic Objectives ...... 18 4.5 Programme of Activity ...... 19 4.5.1 Supporting new and existing businesses to be more productive and competitive to enable growth and job creation ...... 19 4.5.2 To realise sustainable economic potential from our location, environmental and heritage assets ...... 21 4.5.3 Supporting Thriving and Sustainable Communities ...... 23 4.6 Evidence of Alignment with Heart of the SW LEP activity ...... 24 4.7 Provisional Outputs ...... 25 4.8 Sustainability appraisal ...... 26 4.9 Proposed co-operation activity ...... 27 5. Management and Administration ...... 28 5.1 Accountable Body ...... 28 5.2 Project development and assessment procedures ...... 28 5.2.1 Project Development ...... 28 5.2.2 Assessment Procedures ...... 28 5.3 Claims and payments ...... 28 5.4 Communications and publicity ...... 29 5.5 Monitoring and Evaluation ...... 30 5.6 Action plan ...... 30

Mid Devon Leader Local Development Strategy 2015-2020 6. Financial Plan ...... 31 6.1 Overall Funding Profile ...... 31 6.2 Expenditure for each year, by policy Priority ...... 31 6.3 Use of grants, procurement or other type of financial support ...... 32

ACKNOWLEDGEMENTS

The creation of this Local Development Strategy has been a true collaborative effort, reflecting all that is good about the LEADER approach to local development. Thanks go to the many people have committed time and passion to the ideas and substance that follow, especially the Shadow LAG members who steered the process; all those who came to consultation events, submitted projects or spoke with us as we developed the bid.

Cllr Richard Chesterton, Acting Chairman, REALDevon LAG

Mid Devon Leader Local Development Strategy 2015-2020 1. Introduction

This REALDevon (Rural Enterprise and local Livelihoods) Local Development Strategy (LDS) has been developed in response to the opportunity from DEFRA to establish a new LEADER Local Action Group in the Mid Devon area. REALDevon shares many of the same characteristics as its neighbours, which have benefitted from previous rounds of LEADER funding, so the opportunity to benefit from the LEADER approach in this new area is very much welcome.

REALDevon is under-performing economically – with lower than average levels of enterprise, poor productivity and a low skills base. It is seen as being ‘off the beaten track’ and loses out to neighbouring Exeter, whilst potential visitors drive through on their way to holiday destinations across the South West Peninsula. The area does however have huge ‘untapped potential’, which through this opportunity for LEADER funding, can be utilised for economic growth.

This Local Development Strategy has the support of the public, private and voluntary sectors in the REALDevon area, with the possibilities really capturing people’s enthusiasm, as the following quotes illustrate:

“Small rural businesses in Mid Devon have never before been able to access LEADER funding. This strategy, with a strong emphasis on enterprise and business growth, provides an exciting opportunity to help new and existing businesses thrive in the area.” Niki Lathwell, Director, Lathwell & Associates. Chair, Business Forum Mid Devon.

“Our agri-food sector is renowned for producing high quality, authentic food, benefitting from our unique Culm grassland. LEADER funding provides an exciting opportunity to support this important sector reach new markets and secure growth.” Mary Quicke, Managing Director, Quickes Traditional Ltd.

“Our people and communities are the biggest asset to the area and make it what it is, but with rural facilities and services constantly under threat, rural isolation becomes a real and pressing problem, with LEADER funding, we have the opportunity to support new ways of doing things.” Councillor Richard Chesterton, Cabinet Member for Planning and Regeneration Mid Devon District Council.

“We lose out in terms of visitors, as people often just pass straight through on their way to the coast. With a bit of work and investment, REALDevon could develop a unique tourism offer that attracts day visitors and staying visitors alike.” Pippa Griffith, Director of Tiverton Museum & Tourist Information Service, Chair of Mid Devon Attraction Group.

Mid Devon District Council covers the majority of the REALDevon area, and has worked in partnership with businesses and rural communities to support development of a LAG group and this Strategy. They have been supported in this by Devon County Council, who will act as the accountable body for the LAG and its neighbour ‘Making it Local’ (MIL).

As reflected in this strategy, the REALDevon and Making it Local LAGs have agreed a model of joint working, which allows back office functions to be seamlessly linked to achieve best value, whilst retaining the freedom and independence of each LAG in terms of strategy development, local involvement and decision making. As such, some text within this LDS mirrors text in the MIL LDS, reflecting common structures and processes.

The core elements of the strategy (i.e. analysis of our challenges, local priorities and activities) are however, based on a sound understanding of the REALDevon area and its needs, and we would welcome the opportunity to put this into practice to deliver REAL benefits for local people.

Mid Devon Leader Local Development Strategy 2015-2020 2. The Local Action Group Partnership

This section describes the REALDevon partnership structure, roles and responsibilities and processes.

2.1 Membership

2.1.1 The Local Action Group (LAG) The LAG is the partnership body that will deliver the LEADER programme in the REALDevon area. As REALDevon is a new LAG, this partnership is in its infancy, but has a growing membership, reflecting the current process of consultation and engagement. The partnership will be made up of individual stakeholders from a diverse range of businesses and organisations, representing social, environmental and economic interests from across the area. Membership will be open to all and we expect it to steadily increase throughout the programme period. Membership will be managed via a database which is regularly updated and members kept informed of the programmes progress via e-newsletters and e-bulletins.

The REALDevon LAG will hold an annual event to raise awareness of the programme, showcase successful projects and gain feedback from LAG members and wider stakeholders on the delivery plan for the next year. As well as providing a great opportunity to network, the event will incorporate a funding fair giving members the opportunity to meet external grant making bodies and discuss potential projects.

The REALDevon LAG, through a wide and inclusive membership, meaningful engagement activities and a ‘bottom-up’ approach to the development of its strategy, embodies the principles of LEADER.

2.1.2 Executive Group Alongside our wider LAG we have also identified a need for a smaller ‘Executive Group’ to enable efficient and effective management of our programme. Our Executive Group, as the decision making body and managing group for the LAG, should have the right balance of knowledge, skills and capabilities to make the programme work. Members will each need the following: • Knowledge of the REALDevon area and businesses/communities within it; • Understanding of the aims of REALDevon and the wider Rural Development Programme (RDP); • Particular knowledge or experience in one or more of the sectors the programme encompasses; • Ability to make informed decisions as a member of the group; and • Ability to think strategically and apply the principles of sustainability.

As well as representing sector based priorities such as agriculture, forestry and food, we will also look to ensure geographic and thematic representation. The Executive Group will consist of both voting and non- voting members. Of those voting members there will be no fewer than 15, with at least 50% of those members not being from public sector organisations. The table below illustrates a proposed membership of the Executive Group.

Table 1: Proposed Membership of the LAG Executive Group Type Organisation Rationale for Partnership Private e.g. Federation of Small Businesses Business Support Private e.g. Business Information Point Business Support Private e.g. Quickes Cheeses Food and Drink Sector Private / Community Enterprise e.g. Mid Devon Attractions Group Tourism Sector Private e.g. NFU Farming and Forestry Private e.g. Farmer/Forester Farming and Forestry Community / Social Enterprise e.g. Sustainable Crediton Environmental/Sustainability Private e.g. Cullompton Traders Assoc Town Community / Public e.g. Halberton Parish Council Public Mid Devon DC Local Authority Private e.g. Business Forum Mid Devon General Microbusiness Private / Community Enterprise e.g. Crediton Arts Centre Arts Private e.g. Savills Business – professional rural services Private e.g. Young Farmers, Petroc student body Youth Public e.g. officer East Devon District Council area

Mid Devon Leader Local Development Strategy 2015-2020 Supporting organisations would also have a place on the group, such as the Accountable Body and any delivery partners. These would not have a vote but attend meetings to assist with the running of the programme. A “Shadow” Executive Group was formed to support the LDS development process (with members from organisation examples above) and this will continue to take shape as further consultation and engagement activity occurs. The group has representation from business, community and voluntary sectors as well as the two district councils. Further meetings are arranged to ensure the LAG and Executive are fully functional at the start of the programme in January 2015. A wider meeting of the LAG will be held in the Autumn to formally select members to the Executive Group on the basis of the proposed representation above and elect a Chairman. Through this process, we would expect to achieve gender balance and fair representation.

The wider stakeholder group annual meeting will be held each Autumn to carry out further selection processes as needed. The Chairman will stand down each 2 years and can be replaced or re-elected from among the Executive Group. If further recruitment is required to the Executive Group during the 6 years to cover members leaving, or those who regularly do not attend, members who fit within the structure above will be selected from the wider stakeholder group, on a like-for-like replacement basis. If the Executive Group feels further representation is required from a new sector, they would seek to select someone from the stakeholder group, following consultation with Defra and ensuring the balance of gender and public/private sectors is not altered.

2.2 Structure and Decision Making Process

2.2.2 Structure Figure 1 illustrates our structure. An explanation of our structure is detailed in Table 2.

Figure 1: REALDevon Structure

The LAG

Social Accountable The Staff Economic Interests Environmental Body Team Interests Interests Devon County

Council

Executive Group

Table 2: REALDevon Structure – Roles and Responsibilities Element of Roles and Responsibilities Structure LAG Members a ct as ambassador s for the fund , represent the interests of the sectors and stimulate interest in the programme; Devolve decision making responsibilities to the Executive Group; Supply people and thus expertise to the Executive Group; Act as a consultative body, especially for development of the LDS, Annual Delivery Plan and programme monitoring; Help generate projects and activities, which fit the overall aims of the programme, and meet the needs of the area; and Act as consultees on policy making. Executive The wider LAG devolves all decision making to the Executive Group . Our Executive Group will oversee the implementation of Group the programme including the final decision making on grant applications and the delivery of outputs in line with the Annual Delivery Plan and LDS. The Executive group will meet bi-monthly to make final decisions on project applications based on their fit with programme aims and priorities, financial viability, identified project need, clear targets and objectives, sustainability, innovation, additionality and displacement, project management and delivery and risk assessment. This will also include the structure and process for a small grants decision panel subgroup. Accountable Devon County Council (DCC) will be the accountable body for the REALDevon LAG . DCC will provide and oversee systems to Body ensure a rigorous approach to financial management and compliance. Staff Team A small staff team will deliver and support the LDS. Details of the team are provided at 2.3. The team will be supported by voluntary appraisers who will appraise each project/bid.

Mid Devon Leader Local Development Strategy 2015-2020 2.2.3 Decision Making Our decision making process will be based on the previous Leader programme and updated to reflect any changes required by Defra in the National Operational Manual. Section 5 provides further detail on the LAG systems and processes.

A Project Decision Panel, made up of the LAG Executive Group will meet face to face, bi monthly with additional communication via email as needed. This panel will consider applications from £10k-£100k.

A separate Small Grants Decision Panel will be set up to consider grant applications under £10k on a monthly basis. The Small Grants Decision Panel will consist of 4 members of the Executive Group (LAG), and 3 Programme Stakeholders who have knowledge and skills relevant to the programme. These Stakeholders will be recruited from the Mid Devon area and will have local knowledge, as well as specific expertise, for example a local authority officer, business support organisation and community sector support organisation.

The Programme Manager will attend all Panel meetings and will prepare project summaries for both Panels’ information, but will take no part in the Panel’s project decisions.

Issues such as Conflicts of Interest , equality and general participation in the LAG and Executive Group will be governed by a Code of Conduct to be signed by all participants in the process. General Principles of the LAG Code of Conduct will include: • LAG Executive Group & Panel members will be asked to declare any conflicts of interest at the beginning of meetings or as soon as they become apparent, and these shall be minuted; • General (i.e. non-financial) conflicts of interest will be minuted and a record of members’ interests kept. The member concerned will normally be able to remain for discussion of the item, unless a majority of the Group indicates otherwise; • Members cannot sit on the decision making panel when it is considering an application from any project in which they may benefit financially have a current involvement, or from which they might stand to benefit in the future • A panel member shall not use their position as such, directly or indirectly, for personal gain or political purposes; and • All applicants will receive structured, fair and consistent feedback on their projects. The Programme Manager will provide feedback to the applicants on the basis of comments agreed by the LAG Board.

2.3 Local Action Group Staff

To achieve efficient and effective processes and Value for Money in programme management, we are planning a high level of collaboration with the nearby Making It Local LAG area, sharing staff, resources and back office functions. Due to the limited budget available and identified need for development support, particularly for this new programme area, project development support will be enhanced by partner organisations. The following partners plan to host and support project development: • Mid Devon: Mid Devon DC – Community Development and Regeneration Team; • East Devon: East Devon DC / East Devon AONB; • Other LAG partners delivering business support, such as DCC, HoSW LEP (via Growth Hub), FSB, NFU and BIP; • Additional support will come from other partner organisations in the LAG and wider partners, for example Forestry Commission, Community Council of Devon, and Parish Councils.

Mid Devon Leader Local Development Strategy 2015-2020 Table 3 below provides details of our proposed staff team.

Table 3: The Staff Team Staff Member Area Terms Summary of Roles and Responsibilities Employer Host/ Report s to Coverage Location Programme REAL Full Time Ensures local accountability, communications, smooth DCC Hemyock Executive Manager Devon reducing to delivery of Programme and provides technical direction and wider (shared 0.8 for final and advice to the LAG. LAG; with MIL) 2 years Responsible for the management, monitoring and accountabl reporting of programme reach and progress in line with e body the Annual Delivery Plan. Ensures compliance with EU, DEFRA, DCC and any other national or regional systems and structures. Responsible for development of the Annual Delivery Plan on behalf of the LAG. Programme REAL Full Time Provides first point of contact and admin support to the DCC Hemyock Programme Admin/ Devon reducing to Programme Manager. Manager Claims (shared 0.8 for final Undertakes first checks on project financial and Officer with MIL) 2 years monitoring claims and returns. Maintains communications for the programme. Programme REAL Part time Actions financial and monitoring claims and returns. DCC Primarily DCC Finance Devon (1-3 days Provides up-to-date financial reports and support to the DCC, Officer (shared per week) programme. Exeter with MIL)

2.4 Equal Opportunities statement (the public sector equality duty)

REALDevon will operate under the overarching principles of the constituent public bodies’ equal opportunities policies and proofing processes in all aspects of programme development, management and implementation. We recognise that the needs of women, older people, disabled people, people from minority ethnic groups, LGBT (lesbian, gay, bi-sexual and transgender) people and faith groups living in the REALDevon area can be different from those living in urban areas. These different needs will be considered at all stages of our programme. Firstly, at strategic level, equal opportunities will be a cross cutting theme of our LDS. Secondly, at management and operational level, our recruitment processes will have due regard to equal opportunities both in our attraction of LAG members, recruitment for our Executive Group and in our team of staff and appraisers. All information will be accessible to people with sight problems and comply with standards recommended by RNIB. Every effort will be made to provide information in an appropriate accessible format on request such as in other languages and/or alternative media. We will monitor our members and staff team to be able to record and report on equal opportunities issues.

Thirdly, in our work to support our beneficiaries, our information will be fully accessible. For the Programme to be accessible to all organisations in the rural area, there will be sustained publicity of REALDevon. Our application materials will set out our expectations in terms of equal opportunities including the need to demonstrate adherence to equal opportunities as a cross cutting theme. All applicants will be requested to demonstrate the ways in which they have considered the particular needs of the targeted beneficiaries through questions such as: • How can the project be made inclusive of the experiences/needs of different equality groups? • Would it be of benefit to engage with representatives from appropriate equality related organisations regarding the proposed project at an early stage? Thereafter who else might be consulted and how? • Is there inequality or potential for inequality that can be identified in any given area? If so, what can be done about it? This will be followed through in our appraisal and decision making process.

2.5 Involvement of the community and consultation activity undertaken

The development of this LDS has taken a bottom up approach involving extensive consultation with local businesses, stakeholders and the wider community throughout the area. This has included: • 4 events targeting the wider community – spread across the REAL area; • 5 sector related events – covering ‘food and drink’, ‘farming and farm diversification’, ‘forestry’, ‘tourism heritage and culture’; • A stand at the ‘Mid Devon’ show; and 5

Mid Devon Leader Local Development Strategy 2015-2020 • An on-line survey. The REAL Devon events were attended by 57 people, representing a broad cross section of business sectors (including social enterprises), the public sector, local residents and voluntary and community sector organisations. Events were facilitated to draw out key issues and opportunities, ideas for projects and how the REALDevon LAG could make a difference. A total of 54 project ideas were received, showing there is considerable ‘untapped potential’ in this area. As a new LAG area, the consultation events also included an element of capacity building, helping attendees understand the LEADER approach and how they might get involved. The Shadow LAG members were also consulted on the bid by email and at 2 meetings held in Tiverton. Letters of support for this Local Development Strategy have been received from the following organisations: Mid Devon District Council; Business Forum Mid Devon; Tiverton Museum; Mid Devon Attractions Group; West Devon Business Information Point (BIP); Crediton Town Team; Tiverton Portas Company (town team); Quickes Traditional Ltd; Cullompton Traders Association; North Devon Biosphere Reserve; East Devon District Council; The Devon Chef.

2.6 Training requirements

As a new LAG, REALDevon has the opportunity to learn from other LAGs in Devon and Somerset, where experience has shown the value and importance of training. Therefore we will devise a comprehensive training programme for both the Executive members and project appraisers. The skills, knowledge and competencies for the Executive members will include the following: • Understand clearly the aims and objectives of LEADER and the priorities of the REALDevon LAG • Understand the basic wider RDPE policy including measures, constraints and eligibility issues • Understand the processes and systems of the LAG • Become familiar with the information they will be expected to absorb prior to decision making and understand how it is compiled • Learn how to make effective and fair decisions

It is essential that the LAG recruits a pool of voluntary appraisers and trains them to become effective at appraising REALDevon Projects in a robust way to enable fair decision-making and satisfy the DEFRA audit process. They too will need to understand the background and basics of RDP and the specifics of the LDS (including the equality cross cutting theme). In addition, a high emphasis will need to be placed on eligibility issues, which can prove complex. Ideally, a mix of experienced and new appraisers will be found, and one or two of each used to appraise each project depending on value. It will also be desirable to identify appraisers with specialist sector knowledge to look at appropriate projects.

Mid Devon Leader Local Development Strategy 2015-2020

3. The LAG Area

Figure 2 below, shows that the REALDevon LAG area covers nearly the whole of the administrative district of Mid Devon (with the exception of those parishes included in Greater Dartmoor LEAF (Cheriton Bishop) and the Making it Local LAG (5 parishes). There are also seven East Devon parishes (blue on the map) which are of similar character to Mid Devon and therefore included within the area. The REALDevon area has a population of 72,028 (census 2011). Of this 72.9% live in a rural area (as defined by DEFRA). The defined area therefore has a common identity, with shared characteristics, challenges and opportunities.

Mid Devon is a rural inland District lying in the heart of Devon covering an area of 353 square miles (914 square kilometres), equidistant between the Somerset and Devon coasts. The district borders two National Parks (Dartmoor and Exmoor) and is close to the urban economies of Exeter and Taunton. Within the district there are three principle towns – Tiverton, Cullompton and Crediton, while over half the population lives in the scattered villages in the rural hinterland.

Figure 2: Proposed REALDevon LAG Area; Population:72,028

District Parish Mid Devon Bampton, Bickleigh, Bow, Bradninch, Brushford, Burlescombe , Butterleigh , Cadbury, C adeleigh, Chawleigh, Cheriton Fitzpaine, Clannaborough, Clayhanger, Coldridge, Colebrooke, Copplestone, Crediton, Crediton Hamlets, Cruwys Morchard, Cullompton, Down St. Mary, Eggesford, Halberton, Hittisleigh, Hockworthy, Holcombe Rogus, Huntsham, Kennerleigh, Lapford, Loxbeare, Morchard Bishop, Morebath, Newton St. Cyres, Nymet Rowland, Oakford, Poughill, Puddington, Sampford Peverell, Sandford, Shobrooke, Silverton, Stockleigh English, Stockleigh Pomeroy, Stoodleigh, Templeton, Thelbridge, Thorverton, Tiverton, Uplowman, Upton Hellions, Washfield, Washford Pyne, Wembworthy, Willand, Woolfardisworthy, Zeal Monachorum. (56 parishes) East Devon Brampford Speke, Huxham, Nether Exe, Poltimore, Rewe, Stoke Canon , Upton Pyne

Mid Devon Leader Local Development Strategy 2015-2020 4. REALDevon – Our Strategy

4.1 The National Context

At the time of writing, economic prospects nationally, including the economy in rural areas, are looking more positive. Following the recession, the economy is seeing the recovery take hold and prospects for growth are optimistic. A recent report on the rural economy shows that employment and investment will rise next year as the rural economy continues to benefit from a more positive UK economy. Data from the Rural Economy Index for the first half of 2014 shows more farming and non-agricultural businesses will be expecting to increase investment in the next 12 months 1.

The economies of rural areas do, however, face challenges within a wider economic context. The agricultural sector faces the issue of continuous fluctuations in demand and prices. The reform of the Common Agricultural Policy may also have a negative impact with potential reduced budgets for agri- environment schemes. Increasing costs in production, especially for utilities, will impact on sectors such as agriculture, food and drink and other manufacturing sectors; all of which play an important part in rural economies.

Environmental factors and changing consumer knowledge and taste could have a positive impact. Increasing knowledge around food miles and food security could help increase demand for local food production. Similarly, increasing awareness of environmental issues could help stimulate demand for more sustainable tourism. The rural environment, whilst being positive for tourism, could also offer potential in the growing market for environmental goods and services.

Climate change scenarios prepared by the Met Office suggest that patterns of more extreme winter weather, such as those experienced in the last two winters, are likely to increase in frequency. 2 This will impact on rural areas and could have an adverse effect on local communities (e.g. flooding), the natural environment and specifically agriculture.

Rural areas often have an older demographic which brings implications for both the labour market and pressure on public services. At the same time, the economic downturn and government austerity measures have precipitated a decline in some vital rural services resulting in difficulties for some in accessing services such as post offices, shops, libraries, and doctor’s surgeries.

Government policy remains focused on tackling the public sector deficit as a top priority with a resultant tighter public sector purse. That said, it recognises the importance of smart investment to encourage growth and through its Plan for Growth prioritises some sectors of economic importance to rural areas such as tourism. 3 It also has an aspiration to make the UK a world leader in agricultural technology, innovation and sustainability 4 with investment through the Technology Strategy Board. The Localism agenda has resulted in the development of the network of LEPs to help encourage local growth within their areas. Investment through Local Growth Funding, European Structural and Investment Funds and the Rural Development Programme will provide investment (legal issues such as state aid and EU rules and regulations permitting) at local area level to help address local issues and stimulate growth.

Within this context, the next sections describe the issues facing our area and a summary of our strengths, weaknesses, opportunities and threats (SWOT) . The SWOT is based on the most recent evidence and data available for the area, with recognition that the LAG area is not located within just one administrative boundary and data is not always readily available at output level. The most up to date data with best geographic fit, has been selected to help provide the evidence for our strategy.

4.2 Analysis of our Challenges

4.2.1 REALDevon – Our Businesses

Business numbers

1 The Country Land and Business Association and Smiths Core , Rural Economy Index Q1, 2014 2 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p4. 3 HM Treasury and Department for Business, Innovation and Skills (March 2011) The Plan for Growth. 4 HM Government (July 2013) A UK Strategy for Agricultural Technologies.

Mid Devon Leader Local Development Strategy 2015-2020 Analysis shows that there are approximately 3,760 enterprises 5 in the REALDevon Area. When we look at the number of businesses by size, we can see that the REALDevon area has a very high level of micro businesses, indeed the data (in table 4) shows a business profile significantly different to the national picture.

Table 4: Profile of businesses 6 and employment by size 7 Businesses Employment Unsurprisingly, this is reflected in (closest fit by MLSOA) (closest fit by ward) employment data, which shows that REALDevon England REALDevon England our LAG area has a high proportion Numbers % % Numbers % % of its employment in micro and Enterprises small businesses (58% for Micro (0 to 9) 3,460 92% 88.3% 6033 23% 13% REALDevon, compared to 28% for Small (10 to 49) 265 7% 9.6% 9,352 35% 15% Medium (50 to 25 0.7% 1.4% 7252 27% 14% England). This is important as 249) research by the ONS shows that Large (250+) 0 0% 0.4% 3848 15% 57% SME GVA per employee is on Total 3760 26,487 average 8.7% less than employees Local Units from larger firms 8 and as our LEP’s Micro (0 to 9) 3,710 89.0% 82.9% Strategic Economic Plan stated Small (10 to 49) 405 9.7% 13.8% “smaller businesses find it harder to Medium (50 to 55 1.3% 2.9% 249) absorb business advice/support, Large (250+) 5 0.1% 0.4% access funding opportunities and Total 4170 participate in national programmes/opportunities” .9

Tables 5 and 6 detail the number of business births and deaths per head of population in 2012 and business survival rates (from 2007) respectively. As can be observed, for 2012, both East Devon and Mid Devon have slightly lower rates of business births and the equivalent rates of business deaths than nationally. On five year survival rates since 2007, both areas have a rate higher than the England rate. Whilst this might be a sign of good business competitiveness, it can represent low ‘churn’ and a lack of dynamism in the economy. In addition, the Heart of the South West LEP is one of the worst performing LEP areas on standard measures of innovation 10 , business support take up is low and the LEP recognises that rural businesses tend to have differing needs from their urban counterparts. A need for a response tailored to these needs is therefore crucial.

Table 5: Business Births and Deaths Table 6: 5Year Survival Rates Since 2007 Business Per head of Business Per head of 5 year survival rate for businesses births working Deaths working founded in 2007 (%) 2012 population population Mid Devon 265 0.006 315 0.007 Mid Devon 50.0 East Devon 455 0.006 520 0.007 East Devon 53.2 England 239975 0.007 223800 0.007 England 44.4

Source: ONS Business Demography 2012 Source: ONS Business Demography 2012

Sectors Looking at the sectors that are of importance to REALDevon, Table 7 outlines the sectoral composition of our businesses (based on Middle Level Super Output Areas) as well as employment by sector (based on wards). This shows that the proportion of ‘ Agriculture, Forestry and Fishing ’ is significantly higher in REALDevon than it is in England. The influence of agriculture extends beyond its initial footprint with food processing forming a major part of the manufacturing sector. Construction , at 10.5%, is the only other sector to have a higher proportion than the England average. Other sectors which are important to REALDevon include: Professional, Scientific and Technical (8.3%), Retail (6.9%) and manufacturing (5.3%). However, these sectors are all relatively under-represented compared with the England average.

5 Inter-departmental business register, 2013 (business units). Based on the closest fit of Middle Level Super Output Areas, which do not align perfectly with the LAG area. 6 Source: Businesses, ONS Inter Departmental Business Register 2013. Note. An Enterprise is the smallest combination of legal units (generally based on VAT and or PAYE records) which has a certain degree of autonomy within an Enterprise Group. An individual site (for example a factory or shop) n an enterprise is called a local unit . 7 Source. Employment – ONS Business Register and Employment Survey 2012. Note % is of total employment. 8 HM Government (March 2014) United Kingdom Partnership Agreement, Draft. 9 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p45. 10 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p8.

Mid Devon Leader Local Development Strategy 2015-2020 The largest employment sectors in Mid Devon are manufacturing, retail, health, education and accommodation and food services. Farming and other land-based businesses predominate in many of the rural areas, together with tourism and newer web-based businesses, while distribution businesses have taken advantage of the good links along the M5 corridor.

Table 7: Sectoral Composition of Businesses and Employment Broad Industry group REALDevon England Employment Number of % % businesses Agriculture, Forestry & Fishing 117 11 1245 30.5% 4.4% Mining, Quarrying and Utilities 168 5 0.1% 0.6% Manufacturing 3908 215 5.3% 5.3% Construction 1195 430 10.5% 10.2% Motor Trades 489 125 3.1% 3.0% Wholesale 1255 185 4.5% 4.9% Retail 2697 280 6.9% 10.7% Transport & Storage (Including Postal) 736 115 2.8% 3.2% Accommodation & Food Services 1440 185 4.5% 6.2% Information & Communication (ICT) 354 120 2.9% 7.1% Finance & Insurance 194 30 0.7% 2.6% Property 299 85 2.1% 3.7% Professional, Scientific & Technical 1019 340 8.3% 15.3% Business Administration & Support Services 1081 230 5.6% 7% Public Administration & Defence 543 5 0.1% 0.9% Education 2408 75 1.8% 2.5% Health 2505 185 4.5% 5.7%

The LEADER National Delivery Framework sets out 6 policy priorities for the 2014-2020 programme, which place an emphasis on the following 3 sectors: Farming and agriculture, tourism and forestry. The following sections therefore explore the importance and issues facing these sectors in the REALDevon area.

Farming and Agriculture A recent study by the University of Exeter’s Centre for Rural Policy Research identified that Devon’s food economy is larger in relative terms than the food economy of most other English counties, accounting for 13% of GVA in the county compared to 7.6% for Great Britain. 12 This research gave the following useful insights into the agri-food sector in Devon: • Official data points to significant falls in the value of agricultural production since 2008, but farm incomes have been protected by sterling devaluation and its impact on farm support payments; • The sector is characterised by a large number of small businesses, with fewer larger businesses, although there is consolidation occurring in some sectors such as dairy, with increasing herd sizes; • The dairy sector in Devon is a highly dynamic area of food production and is by far the most significant primary production sector, accounting for 47% of the value of produce at the farm gate; • Many businesses are experiencing a cost-price squeeze as inputs rise and margins fall, which impacts on their ability to re-invest in the business. The report highlighted reducing energy costs as an area where support was needed. Similarly, the cost and availability of product distribution systems represented an area of difficulty for many businesses, with respondents identifying the need for support to develop shared, co-operative distribution services and co-operative working around storage, group purchasing schemes and even retail space. • The global food market is very strong and export markets are viewed as a significant opportunity, with vigorous demand for highly differentiated products in the Far East, Middle East and US. • Overall, the research indicates a very positive outlook. Even those respondents who reported negative growth were optimistic about their near future prospects. Particularly strong sectors were artisanal food producers supplying high quality products. • Nearly half the respondents reported that they would like to change the way they sell their products over the next three years. 39% would like to increase their direct retail sales via on-line and mail order, 35%

11 It is believed that this figure under-represents total employment in the agricultural sector 12 Matt Lobley, Jo Trail Thomson and Donald Barr, CRPR Research paper No 34. 2012 (2012) A Review of Devon’s Food Economy. Matt Lobley, Jo Trail Thomson and Donald Barr, CRPR Research paper No 34.

Mid Devon Leader Local Development Strategy 2015-2020 would like to increase sales to wholesale and distributors, and 18% would like to increase their direct retail through farm shops. The recent launch of the Government’s (DEFRA) £400m Plan for Public Procurement states that from 2017, all of Government will commit to buying fresh, locally sourced, seasonal food. This will provide opportunities for local farms to be in a position to respond.

Our consultations with the farming community in the REALDevon area highlighted: • The importance of dairy and livestock sectors, both in terms of primary production but also processing; • The perception that farmers and food producers in the area produce high quality products; • The need to create better linkages to markets (locally and further afield); • The opportunity to utilise redundant buildings and stone barns – potentially as part of a wider diversification plans; • The opportunity to diversify into non farming activities (e.g. rehabilitation, respite and social activities as well as tourism related); • The need to attract young farmers into the industry (including through apprenticeships); • The need to re-connect the urban populations with the land and food production; and • The opportunity to link farming, food and tourism through projects such as food trails.

Tourism Mid Devon attracts 131,000 visitors per year 13 , the lowest of all the Devon districts and 3.8% of the total for the Devon County Council area. The land-locked nature of the area is thought to be one of the reasons for this lower profile. However, this still accounts for £24m of tourism expenditure within the Mid Devon economy. Visit England’s Accommodation stock data14 suggests that the Mid Devon area has 206 accommodation establishments, which follows a similar profile to visitor numbers. Visit England statistics captured visitor numbers for three attractions in Mid Devon – Knightshayes Court (113,000 visitors in 2011), the Collegiate Church of the Holy Cross, Crediton(10,000 visitors) and Abbotswood cycle hire (1,200). Our consultation exercises suggest that Mid Devon is perceived as ‘off the beaten track’ and ‘a drive through place on the way to other destinations such as North Devon, South Devon and Cornwall’. However, consultees felt that there were opportunities to grow the sector as follows: • Developing under-utilised environmental assets (such as Eggesford Forest, Tiverton Canal, the Two- Moors way and Heart of Devon Walks) to promote and encourage rural leisure pursuits such as horse riding, cycling, walking, fishing and shooting as well as camping/glamping; • Heritage and Cultural assets such as the cloth trade in Cullompton • Linkages to the food sector, with suggestions to develop ‘food trails’ as well as food festivals; • Developing tourist attractions to bring day visitors into the area; and • Aligning activity with the soon to be produced Mid Devon Tourism Strategy. Some felt that improving the attractiveness and ‘visitor friendliness’ of the areas towns and villages would encourage potential visitors to stop and spend money, benefitting the rural economy.

Forestry Forestry is a very small sector, where reliable statistics on size and scale are difficult to come by at small geographies. However, our consultation suggests that forestry may be an area where there are opportunities to develop new markets (e.g. wood fuel, timber, kit housing, yurt frames etc.), activate more local supply and create more vibrant and sustainable supply chains. Crediton Gluelam (Glued Laminated Timber), a relatively new business, is the only plant of its type in the UK, currently relying on supply from imported timber, while undergoing a process of testing and certifying local British timber for use. Consultees also highlighted potential links with the agri-food sector (through Deer as a meat product) and tourism, reflecting the opportunities for improving the recreational value of the areas woodlands and forests. Details on the woodland coverage are included in the section 4.2.3.

13 Based on the GB Tourism Survey, 3 year rolling average 2011-13. 14 Visit England, accommodation Stock Data 2012

Mid Devon Leader Local Development Strategy 2015-2020 Economic Performance

Table 8: GVA per FTE (£) based on 2010 prices 15 2014 2015 2016 2017 2018 2019 GVA Levels for our area are lower Mid Devon 38555.6 39471.5 40431.5 41378.3 42390.7 43465.7 than national rates, illustrating low East Devon 38229.8 39090.0 40007.9 40907.4 41852.1 42837.2 levels of productivity. GVA/job UK 50441.2 51591.5 52872.6 54155.2 55522.3 56967.7 performance for Devon was 82% of UK levels in 2011 16 . Modelling carried out for the LEP indicates that whilst GVA per FTE will grow in both districts over the next five years, it will still remain below the national rate. Table 8 provides the detail.

Finally, in looking at the economy overall, the UK Competitiveness Index 2013 17 , ranks the competitiveness of UK local authority areas based on the following factors: • Input factors – Economic activity rates, Business start-up rates, number of businesses, proportion of working age population with NVQ level 4 or higher and proportion of knowledge based businesses; • Output Factors – GVA per head, productivity and employment rates; and • Outcome Factors – Gross weekly pay and unemployment rates.

This analysis found in 2013, Mid Devon was ranked 238 (out of 359 LA areas, where 1 is the highest) and East Devon ranked 227, i.e. in the middle-lower band in terms of competitiveness. East Devon appears to be improving having moved up the rankings from 288 in 2010, whereas Mid Devon appears to be sliding down the rankings from 185 in 2010.

Summary – Business Issues and Challenges The REAL Devon LAG area has a resilient business population, dominated by micro and small businesses, high levels of self-employment and lower value employment sectors. This consequently has a negative impact on economic output and opportunities for employment in the local area. There is therefore an urgent need to improve the competitiveness of the Mid-Devon economy and attract higher-wages industries into the area. Research has shown that micro and small businesses are less likely to take-up support, and therefore business support approaches need to be better tailored to their needs.

In terms of the numbers of businesses, the largest sectors are agriculture, forestry and fishing (30.5%), followed by construction (10.5%). However, the largest employment sectors are manufacturing, retail, health, education and accommodation and food services. Consultation has shown that there are opportunities to grow those sectors aligned with the LEADER Priorities (agriculture, tourism and forestry).

4.2.2 REALDevon – Our People

The population of the REALDevon area is 72,028. Table 9 details the age structure for our population and its comparison with England. This shows that whilst the proportion of young people is broadly in line with national averages, the area has a higher proportion of people over the age of 65 and proportionately fewer working age people, reflecting the outward migration of this group in search of employment.

Table 9: Age Structure 18 England REALDevon Current population projections confirm that the Number % Number % proportion of older people will increase and the Age 0 -15 10,022,836 19 13,479 18.6 proportion of working age people will decrease between Age 16 -64 34,329,091 65 43,835 61 now and 2021 19 . Age 65 and over 8,660,529 16 14,714 20.4 Total 53,012,456 72,028 Table 10 shows we have high levels of economically active residents, high levels of self-employment and low levels of unemployed people when compared to national levels. The high level of self-employment can be seen as a positive factor in terms of entrepreneurialism, however, coupled with high levels of part time

15 Source: Oxford Economics Heart of the South West LEP model (Jan 2014 16 Office for National Statistics (Updated July 2013) Subregional Productivity. 17 Huggins, R. and Thomson, P. (2013) UK Competitiveness Index 2013. 18 Census, 2011 19 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p23.

Mid Devon Leader Local Development Strategy 2015-2020 working it can also signal a lack of full time employment opportunities and under-employment. In our area, levels of part time working are high (38.5% for Mid Devon and 39.7% for East Devon) compared with national levels (32.8%) 20 . This often has implications for lower wages/income (see below) and ‘in work poverty’ 21 .

Table 10: Employment and Activity Status 22 Mid Devon East Devon Great Britain Jobs in Mid Devon tend to be Number % Number % % poorly paid and low skilled. Economically active (1) 39,400 81.3 58,900 79.3 77.4 Median workplace earnings in Mid In employment (1) 38,100 78.4 56,900 77.1 71.5 Devon District (the closest Employees (1) 29,700 63.5 44,700 61.2 61.2 approximation to the REALDevon Self Employed (1) 7,400 13.9 12,200 16.0 9.7 area) were £431.5 per week – this Unemployed (2) 1,700 4.4 2,200 3.7 7.5 is just 82.9% of the England average, - £21,700 per annum compared to £26,100 nationally - and this gap is increasing. This highlights the need for well-paid employment, particularly in an area with high housing and energy costs.

Table 11: Earnings by Workplace and Residence 23 Area Gross weekly pay Gross Weekly Pay Median residential earnings in Mid Devon (workplace measure) (residence measure) are fractionally higher at £440.8 per week, Note 1 Note 2 although are still significantly below the East Devon 437.0 472.4 England average of £520.70 per week. Mid Devon 431.5 440.8 Job density figures 24 show that Mid Great Britain 517.8 518.1 Devon has significantly fewer job South West 480.0 485.1 opportunities per person (0.65 jobs/person) than the national figure (0.78), forcing residents to look for work outside the area. When combined with lower than average wages, it is unsurprising that up to one third of the resident population commutes out of the District for work, with 21% commuting to Exeter and 9.2% to Taunton Deane 25 . Comparatively, levels of out-commuting in Mid Devon are among the highest in Devon. Residents who commute out often spend greater proportions of their incomes elsewhere, compounding the effects upon local shops and services. Department of Education figures show that 5.5% of 16-18 year olds in Devon were not in education, employment or training (NEET) compared to 5.3% nationally 26 . Given the tight labour market in Devon, ensuring young people are economically active or in education will continue to be a high priority.

Table 12: GCSE Results for REALDevon schools Table 12 shows that all, bar one, of the five GCSE results 27 secondary schools in the area achieved results England average 59.2% that are comparable with the England average England state funded average 60.6% or exceed it. However, despite these relatively Chulmleigh Community College 64.0% good results, there are concerns about the Cullompton Community College 60.0% aspirations of young people in certain areas, Queen Elizabeth's, Crediton 65.0% particularly Tiverton. Of greater concern, are Tiverton High School 54.0% the qualification levels of the working age Uffculme School 80.0% population within the area, detailed in Table 13.

20 Source: ONS Business register and employment survey Notes: % is a proportion of total employee jobs. Employee jobs excludes self-employed, government-supported trainees and HM Forces 21 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p58. 22 ONS, Annual Population Survey, January 2013-December 2013 Note 1: Numbers are for those aged 16 and over, % are for those aged 16- 64.Note 2: Numbers and percentage are for those aged 16 and over. % is a proportion of economically active. 23 Source: ONS Annual Survey of Hours and Earnings – workplace and resident analysis Note: (1) Median earnings in pounds for employees working in the area (2) Median earnings in pounds for employees living in the area 24 ONS Job Density 2012: Note jobs includes employees, self employed, government supported trainees and HM Forces. 25 ONS – Commute APS 2008 (Place of work of those living in Devon)

26 Department for Education (End 2013) 16-18 year olds that NEET and not known by Local Authority. 27 % of students achieving 5 plus grade A to C (including English and Maths) - 2013

Mid Devon Leader Local Development Strategy 2015-2020 Table 13: Highest Qualifications achieved 28 Individual level Mid Devon East Devon Great Britain Table 13 shows that Mid Devon Number % Number % % has a low skills base, with only NVQ4 and above 12,600 28.2 29,100 40.4 35.2 28.2% of its working age NVQ3 and above 25,000 56.3 45,300 63.1 55.8 population qualified to NVQ NVQ2 and above 32,200 72.5 56,700 79.0 72.5 level 4 and above and 10.8% NVQ1 and above 36,600 82.4 65,700 91.5 84.4 have no qualifications compared Other qualifications # # # # 6.3 to 9.3% nationally. Conversely, No qualifications 4,800 10.8 4,500 6.2 9.3 East Devon performs relatively well, but given that the majority of the REALDevon LAG falls into the Mid Devon district, the low level of skills within the population is likely to be a significant barrier to growth.

The REALDevon LAG area has three lower level output areas within the most deprived 25% in the UK as measured by the Index of Multiple Deprivation, all located in Tiverton. Under the education domain , 1 lower level output area falls into the worst 5% and 6 into the worst 20%, reflecting in part, the adult skills issue described above as well as attainment of young people within the area.

Our consultation exercise revealed a number of concerns relating to skills development including: • The need for better ICT skills and to be able to access this provision locally; • The need to help young farmers and improve other rural skills sets (e.g. timber, forestry & land based skills, rural arts and crafts); • The general need to retain, develop and diversify local skills and expertise; • A concern that businesses faced issues on sourcing suitable labour; and • A suggestion that a scheme could be developed to help rural businesses share mechanical and technological expertise.

Summary – Issues and Challenges – People The population of the REAL Devon area demonstrate higher levels of economic activity, employment and self-employment than national averages. However, the lower than average job density figures,

combined with lower than average wages is forcing residents to look outside the area for employment

and better paid jobs and this is reflected in our high levels of out-commuting.

Part time working and low average wages suggest ‘in-work poverty’ may be an issue for many residents. The lack of well-paid knowledge intensive opportunities makes it harder to attract and retain highly qualified individuals. Whilst the REAL Devon area, like all areas, will face the challenges of an aging population, it also benefits from a healthy population of children and young people. Retaining young people with future job prospects will be an important part of any development strategy.

4.2.3 REALDevon – Our Place Within Mid Devon the largest settlement is Tiverton , which is the administrative centre of the District. Tiverton lies at the junction of two important road routes: the A361 North Devon Link Road (linking Junction 27 of the M5 motorway with Northern Devon) and the A393 (linking Exeter with Minehead). Tiverton has a population of around 22,000 29 people equivalent to a quarter of Mid Devon’s total population. South east of Tiverton is the town of Cullompton, which is situated on the banks of the River Culm and well connected to the M5, 12 miles north of Exeter. Cullompton has a population of around 8,700 people. Both Tiverton and Cullompton have Urban extensions planned, with resultant population increases expected. The third of Mid Devon’s larger settlements is Crediton which lies to the North West of Exeter on the Exeter to Barnstaple Road. Crediton has a population of around 7,700 people. Whilst the recession initially hit our town centres, latest statistics from Mid Devon District Council (July 2014) suggest that the latest retail vacancy rates are improving, with vacancy rates at 12.7% for Cullompton, 10.1% for Crediton and 6.6% for Tiverton – all below the national average of 13.4%.

28 Source: ONS Annual Population Survey Jan 2013 – Dec 2013, # Sample size too small for reliable estimate. Notes: Level and % are for those aged 16-64. % is a proportion of resident population aged 16-64. 29 DCC Insight and Impact team

Mid Devon Leader Local Development Strategy 2015-2020 The Joseph Rowntree Foundation (Community infrastructure in new residential developments, Marilyn Taylor February 2011) states the community infrastructure of a place is as important a contributor to its future success, and its economic value, as housing and other aspects of physical design. The public spaces (including high streets, street markets, shopping precincts, community centres, parks, playgrounds, and neighbourhood spaces in residential areas) play a vital role in the social life of communities. They act as a ‘self-organising public service’, a shared resource in which experiences and value are created (Mean and Tims, 2005). The loss of existing facilities in communities is likely to have similar negative effect.

Transport and connectivity are identified as being vitally important to the LEP area overall, as peripherality and distance from markets has a direct and proven correlation with productivity 30 . The eastern side of the REALDevon area, has relatively good road links with the M5 motorway, regular fast train links to Exeter, London, Birmingham and further afield and is close to both Exeter and Bristol Airports, which have the potential to stimulate growth, especially along the M5 corridor. However, in many of the more rural parts of the area (particularly in the west and north), which are further away from transport arteries, access to vital services can be a significant problem for some people, particularly those on low incomes, and where public transport coverage is patchy. This is reflected in our performance as measured in the Index of Multiple Deprivation domain of ‘barriers to housing and services. Under this domain, 8 of our 38 lower level output areas are within the most deprived 5% in the UK and 18 falls within the most deprived 20%. Our community consultation also highlighted a concern with road infrastructure (in particular in relation to flooding) and public transport. The potential development of the Okehampton Rail line and re-opening of Cullompton Railway Station, were also highlighted as opportunities.

Ofcom data shows that in 2013 only 37.2% of addresses in Devon were covered by superfast broadband 31 , although this is set to improve as the Connecting Devon and Somerset project will deliver superfast broadband to at least 90% of premises by the end of 2016. The Heart of the SW LEP recognises the importance of digital and mobile infrastructure, identifying the need for further investment to the remaining 10% within its Strategic Economic Plan. Within our community consultation, broadband and mobile infrastructure were frequently mentioned, including the desire to see more Wi-Fi in community buildings.

The high rate of inward migration from other parts of the country (where house prices were significantly higher than in Mid Devon) has led to house price inflation. House prices have increased by 226% since 1996, far outstripping local average wages and wage growth. The average house price in Quarter 2 2013, was £186,000, representing a house price to median earnings ratio of 8.44, similar to the rest of Devon (8.42), but considerably higher than England (6.72)32 . The rural nature of the REALDevon LAG area means that in 2012 19,459 households (66.8%) were not connected to the mains gas network 33 . This compares with the England average of just 9.6% of households not connected to mains gas. In 2012 (DECC figures) the REALDevon area had an estimated 3,057 households in fuel poverty. This was 10.2% of all households, compared with 10.4% for England and 9.5% for the South West region. Expected increases in fuel prices in the future mean that addressing energy efficiency both in domestic and commercial environments will continue to be important. The community consultation supported this concern, with district heating, energy saving and community utility approaches all suggested as opportunities to address this issue. The natural environment of Mid Devon is of a high quality. The district borders Dartmoor and Exmoor National Parks and Blackdown Hills AONB. There are 13 internationally recognised Sites of Special Scientific Interest and over 200 country wildlife sites. The western tip of the REALDevon LAG area falls within the North Devon UNESCO Biosphere Reserve. The area benefits from a number of walking and cycling trails (such as the Two Moors Way, Exe Valley Way, Sustrans National Cycle Route 3 and the Grand Western Canal). A large number of consultees highlighted the opportunity associated with the development of new and existing walking and cycling trails. Current plans to seek AONB status for the Exe Valley, could help protect this important asset within the area.

The quality of the natural environment is matched by the richness of its cultural heritage with 2568 listed buildings, 50 conservation areas, 49 scheduled monuments and 3 registered parks and gardens.

The REALDevon area lies within both the North Devon (Taw) and East Devon (Exe/Culm/Creedy) catchments. The Taw Catchment is failing to achieve Water Framework Directive Targets, mainly as a

30 Heart of the South West Local Enterprise Partnership (March 2014) Strategic Economic Plan 2014-2030, p8. 31 http://maps.ofcom.org.uk/broadband/broadband-data/ 32 DCLG 2014 - Live tables on housing market and house prices 33 DECC, 2012

Mid Devon Leader Local Development Strategy 2015-2020 result of nutrient run off. This is causing further problems in the coastal waters into which it drains (outside the REALDevon area).

Much of the area is classified as ‘Culm Grassland’ by Natural England, describing the remote and sparsely populated landscape, with rolling hills and steep undulating pasture separated by many small valleys, with heavy, poorly-drained soil supporting rushy pastures of low agricultural quality but high nature conservation interest. Key threats to this landscape character include: the loss of culm grassland species due to changing grazing patterns, agricultural intensification, drainage and scrub encroachment; and fragmentation of unimproved grasslands. These threats could be reversed by managing the grassland and wooded areas for their conservation value.

Forestry Commission statistics suggest that there are 8,386 hectares of woodland in REALDevon, 10.1% of the land area, slightly below the proportion for Devon (11.7%) and the SW (10.3%), but higher than the England average (9.9%). Of the forested area, 37.4% is managed, significantly below the national aspiration for 66% to be managed by 2018.

Summary – Key Issues and Challenges – Place Eastern parts of the REALDevon area have good transport connectivity through proximity to the M5 road and adjoining rail corridor. This is the key strategic transport route through the Heart of the SW LEP and as such is likely to benefit from wider growth and development. However, beyond this narrow corridor, much of the REALDevon area has poor transport connectivity . In deeper rural areas, accessibility to employment, skills and key services is an important social inclusion issue. Whilst improvements to broadband connectivity will benefit the area, there is a risk that the most deeply rural areas will not be connected . Whilst housing

affordability may not be as severe as other LAG areas, it is nonetheless a significant issue, especially when considered alongside rising fuel costs , which due to the high proportion of households that are ‘off gas grid’ will have a disproportionate impact in the REALDevon area. The area’s woodlands and forests may provide an opportunity to create jobs and growth, by enhancing and serving a woodfuel market . Similarly, the area has other under-utilised environmental and cultural assets , where there may be scope to create economic benefit, perhaps through the development of innovative models for payment of eco-system services.

Mid Devon Leader Local Development Strategy 2015-2020 4.3 ‘SWOT’ analysis of the local area Strengths Weaknesses Business • Strong Agri-food sector with high quality products and • High proportion of businesses and employment in micro optimism about the future. and small businesses with lower GVA/employee and less • Low rates of business deaths and good survival rates over likely to access support. 5 years. • Low levels of GVA and competitiveness. -Mid Devon • Strong construction sector, with good growth prospects in ranked middle to low on competitiveness rankings. the wider area. • High reliance on lower value sectors . Lack of knowledge based, higher value sectors. • Low rate of business births and poor levels of innovation reflect a lack of dynamism in economy. • Weak utilisation of forestry products and development of supply chains. People • Proportion of children/young people close to national • Lack of full time opportunities (suggested by high levels population average. of part time working and self-employment). • High level of residents that are economically active and • Low job density levels, resulting in out-commuting . high levels of self-employment. • Low earnings by workplace and residence measures. • Comparatively low unemployment. • Retaining and attracting young and working age people . • Good average levels of health. • Low skills amongst working age population. • Strong sense of community and active communities. Place • Tiverton and Cullompton have good links with the M5 , • Accessibility to employment, skills and key services in close to mainline rail and Exeter Airport. western and deeply rural parts of the area • Cycle routes in development e.g. to link Cullompton • High shop vacancy rates in Cullompton • Natural assets and high quality environment, including • Vulnerability of transport infrastructure to flooding woodland and Culm grasslands. • High proportion of homes ‘off gas grid’ and at risk of fuel • Cultural and Heritage assets. poverty • Vibrant high-street in Crediton with independent retailers. • Under-utilisation of environment and heritage assets • Long distance paths , such as the Two Moors Way, Exe to attract visitors Valley Way, Sustrans National Cycle Route 3 and Grand • Under-management of forestry resource Western Canal. Governance • History of partnership working between the Local Authority • No previous culture of LEADER programmes and business community through the Business Forum Opportunities Threats Political • Focused public investment in priority areas such as growth • Austerity. Limit on public sector funds/investment. sectors and emphasis of localism/local priorities. • Reform of CAP – increased targeting, reduced budgets • Plan for public procurement –opportunity for agri-food. for agri-environment. Economic • Positive economic forecasts. • Challenges for sectors of economic importance e.g. • External initiatives ; Exeter and East Devon Growth Point, fluctuating demand and price for agricultural. Rising Devon and Somerset Rural Growth Network and Hinkley cost of utilities for agri-food as well as other sectors. Point C. • Exeter and East Devon Growth Point. • Local Developments : Urban extensions planned for • Within 90minute catchment of Hinkley travel to work area Tiverton and Cullompton, and other sites through local plan. – likely to attract workforce from Mid Devon. Social • Forecast growth in population. • Aging demographic – pressure on public services and • Increased environmental awareness – opportunity for labour market. specific sectors – agriculture, food and drink, tourism. • Attracting and retaining young people into rural • Strong sense of community. industries. • Decline in many vital rural services . • Affordability of housing . • Rising fuel prices within the context of ‘off gas grid’ homes. Technological • Better access to markets through improvements to • Most deeply rural areas may not get access to superfast superfast broadband. broadband . Environment • Better utilisation of environmental and heritage assets • Climate change – implications for local communities, to support economic growth. natural environment and agriculture. • Develop woodfuel markets serving ‘off gas grid’ homes. • Threats to Culm grassland from changing agricultural practices. • Limited area of land protected by environmental designation. Legal • Limitations – state aid, EU rules.

Mid Devon Leader Local Development Strategy 2015-2020

4.4 REALDevon Local Priorities

In establishing local priorities for the REALDevon area, we have adopted an approach which takes as its starting position the issues, needs and opportunities of the area. We then go on to develop 3 strategic objectives for the programme. We have based these on the three core aims established by the LEP to ensure our programme directly contributes and aligns with the LEPs Strategic Economic Plan, but crucially, adapting them to reflect our local needs. Under each strategic objective, we consider the key areas of activity to be funded through the REALDevon programme, reflecting the LEADER priorities and measures to ensure activity is eligible.

4.4.1 Strategic Objectives

Our SWOT exercise and associated evidence base and consultation process, points towards a number of potential priorities for achieving economic growth in the REALDevon area (listed in table 14 below).

Table 14: Potential Priorities for achieving economic growth in the REALDevon area. Business People Place • Diversify economic base, so it is • Create jobs and better quality • Make the most of REALDevon’s less reliant on low value sectors. jobs within the area to stem out- proximity to strategic transport • Improve productivity of key commuting. routes and neighbouring growth employment sectors including agri- • Improve workforce skills – centres and opportunities. food. especially in rural sectors. • Realise economic potential from • Support growth of micro- • Raise aspirations of young people under-utilised environmental businesses. and support them to understand heritage and forestry assets. • Encourage new businesses to local opportunities. • Improve resilience of housing stock start. • Address rural isolation, in to increasing fuel prices. • Encourage innovation as a key particular ensuring accessibility to • Improve digital infrastructure. driver of productivity. employment, training and key • Address housing affordability. • Maximise potential of tourism and services. • Maximise potential for towns to forestry sectors. drive economic growth rural • Improve resilience of businesses hinterlands. to increasing fuel prices. • Protect the area’s Culm grassland landscape. Using our understanding of the potential priorities above, we have developed a set of three strategic objectives for the REALDevon area, which build on and therefore directly align with the LEP’s core aims, as illustrated below:

Figure 3:Development of REALDevon Strategic Objectives aligned with the LEP’s Core Aims

Heart of the SW Maximising Productivity Capitalising on our Creating the Conditions LEP core Aims and Employment Distinctive Assets for Growth

Supporting new and To realise sustainable Supporting thriving and REALDevon existing businesses to be eonomic potential from sustainable communities, more productive and our location , Strategic with services and facilities competitive to enable environmental and to underpin growth Objecives growth and job creation heritage assets .

In the next section, we bring together the potential priorities with the three strategic objectives in order to consider which priorities should be taken forward within the REALDevon LAG programme. In considering this, we must think about: a) The extent to which priorities align with the strategic priorities of the Heart of the SW LEP; and b) The extent to which priorities align with LEADER priorities, eligibility and principles.

Mid Devon Leader Local Development Strategy 2015-2020 4.5 Programme of Activity

4.5.1 Supporting new and existing businesses to be more productive and competitive to enable growth and job creation

The following potential priorities pertain to this Strategic Objective: • Support growth of micro-businesses; Improve productivity of key employment sectors including agri- food; Improve workforce skills, especially in rural sectors; Develop forestry sector; Encourage new businesses to start; and Encourage innovation as a key driver of productivity.

Table 15 below examines each of these potential priorities in turn to reflect on the extent to which they align with the LEP’s Strategic Priorities as well as the LEADER Priorities, leading to proposed activities.

Table 15: Alignment of issues with the LEP Strategic Economic plan and LEADER Priorities to proposed activity Potential Priority LEP Context Fit with LEADER Proposed Activity Support growth of micro - Good - The LEP area is Good - aligns with 'support Supporting the growth of businesses also facing these issues, for micro and small micro and small recognising the differing enterprises and farm businesses. needs of SMEs. diversification'. Improve productivity of Good - aligns with the Good - aligns with 'support 1. Supporting the growth of key employment sectors, LEP's core aim of for increasing farm our agri-food sector. including agri-food. maximising productivity productivity' and 'support 2. Supporting the growth of across the whole economy. for micro and small micro and small enterprises and farm businesses. diversification'. Improve workfo rce skills, Good - aligns with the Poor - LEADER cannot No activity proposed, especially in rural LEPs strategic objective to fund skills development in recognising that LEADER sectors improve workforce skills. 2014-2020. cannot fund skills development in 2014-2020. Develop forestry sector Good - aligns with the Good-aligns with 'support Improve productivity from and manage woodlands LEP's core aim of for increasing forestry our woodlands and develop maximising productivity productivity'. our forestry sector. across the whole economy. Encourage new Good - The LEP has a Good - aligns with 'Support Stimulating Enterprise. businesses to start strategic objective to for micro and small 'stimulate enterprise and enterprises and farm growth'. diversification'. Encourage Innovation as Good - aligns with the Good- Aligns with the RDP Apply as a cross cutting a key driver of LEPs Strategic objective to Cross cutting theme for theme to all activities. productivity 'build our capacity for innovation. innovation'.

The following thematic activities are therefore proposed to be supported under this strategic objective: 1. Supporting the growth of micro and small businesses and stimulating enterprise; 2. Supporting the growth of our agri-food sector; and 3. Improve productivity from our woodlands and develop our forestry sector.

We recognise the importance of innovation as a driver of productivity and as such will be applying across all activities, reflecting its status as an RDP cross cutting theme.

Table 16, overleaf sets out examples of the types of projects that might be funded, the relevant RDP Priority and measure, and how proposed activities will complement LEP proposed activities.

Mid Devon Leader Local Development Strategy 2015-2020 Table 16: Proposed Activities under Strategic Objective 1: Support for New and Existing Businesses Activity Theme Example Activities LEADER Priority and Fit with Complementarity with the RDP Cross Cutting Themes Measure Jobs & LEP Growth 1a. Supporting the • Grants to support start-ups and Support for micro and Direct The level of investment in the Innovation - The grant scheme will favour growth of micro and existing SME’s invest in growth small enterprises and grant scheme will be set at a investments which help a business implement small businesses opportunities. farm diversification. level that is complementary to innovative practices and exploit innovative and stimulating • Construction or establishment of • Measure 6: Farm the LEPs EAFRD grant technologies or techniques, in particular the role- enterprise workshops, factories or facilities. and Business scheme. out of superfast broadband. • Support for farm diversification productivity. Information will be shared with Climate Change Adaptation and Mitigation - (e.g. into social care, tourism) • Measure 4: the Heart of the SW Growth The grant scheme will support investments which • Support for businesses to network Investment in Hub. help a business adapt to the challenges of climate and collaborate to improve physical assets All business support activity will change. productivity actively signpost to the Growth Environment - Applicants will need to • Business coaching Hub. demonstrate that their project does not cause harm to the environment. 1b. Supporting the • Support for collaboration to Support for increasing Direct Activity funded under this theme Innovation - Support for the agri -food sector to growth of our agri- establish new routes to market and farm productivity. will link (by referrals) to Heart of pilot innovative practices and technologies, will food sector product distribution systems (e.g. • Measure 4: the SW LEP EAFRD proposals drive innovation in this activity theme. group purchasing schemes, shared Investment in to support rural businesses Climate Change Adaptation and Mitigation - retail space, co-operative physical assets access new markets. Activity under this theme could pilot sustainable marketing) • Measure 6: Farm Innovation related activity will intensification within agriculture and the broader • Support to pilot innovative and business complement the LEPs emerging food sector. practices that increase farm productivity plans for the agri-tech sector, Environment - Investments made under this efficiencies thus avoiding duplication. theme will need to demonstrate how the • Facilitating young farmers/new environment is protected, including the Culm entrants & succession planning Grasslands. • Support for farm diversification not budgeted in this theme (see 2a) 1c. Improve • Activities to bring more forested Support for increasing Direct This activity does not currently Innovation – Could be promoted through: productivity from our land back into active management forestry productivity. overlap with activities proposed • the development of new management models woodlands and and use. • Measure 8: by Heart of the SW LEP. for small forested areas with multiple land- develop our forestry • Co-operative activity to develop Investment in owners. sector. markets (e.g woodfuel) and supply forest area • Development of new products/markets for chains. development wood; • Grants for forestry businesses. and improve Climate Change Adaptation and Mitigation viability of Development of a sustainable woodfuel market will forests. reduce CO 2 emissions & improve community resilience. Environment - By bringing woodland back into active management, biodiversity can be improved.

Mid Devon Leader Local Development Strategy 2015-2020

4.5.2 To realise sustainable economic potential from our location, environmental and heritage assets The following potential priorities pertain to this Strategic Objective: • Make the most of REALDevon’s proximity to strategic transport routes and neighbouring growth centres and opportunities; • Realise tourism potential from under-utilised environmental, heritage and forestry assets; • Maximise potential for towns to drive economic growth in rural hinterlands; • Diversify economic base, so REALDevon is less reliant on low value sectors.

Table 17 below examines each of these potential priorities in turn to reflect on the extent to which the potential priorities align with the LEP’s Strategic Priorities as well as the LEADER Priorities, leading to proposed activities.

Table 17: Alignment of potential priorities with the LEP Strategic Economic plan and LEADER Priorities to proposed activity Potential Priority LEP Context Fit with LEADER Proposed Activity Make the most of Good - The LEP Good - aligns with support Creating stronger links with REALDevon’s proximity recognises the importance for micro and small neighbouring growth to strategic transport of utilising strengths to enterprises and farm centres & utilising strategic routes and neighbouring support higher value diversification' and 'support transport opportunities growth centres and growth for rural tourism' opportunities Realise tourism potential Good - aligns with the Good - aligns with 'Support Making the most of our from under-utilised LEP's strategic objective to for rural tourism' and tourism potential environmental, heritage 'maximise our 'support for cultural and and forestry assets environmental assets' heritage activity'

Maximise potential for Medium – Whilst the LEP Medium – Whilst not Creating stronger towns to drive economic recognises the important explicitly set out within the economic ties between growth in rural role played by towns and six priorities, the concept of urban and rural areas hinterlands urban areas in driving ‘hub towns’ recognises the within the REALDevon economic growth, it has not role that urban areas can area. reflected this explicitly play in a successful rural within its strategic priorities. economy. Diversify economic base, Good- aligns with the Good – aligns with ‘support No new activity proposed. so REALDevon is less LEP’s strategic aim to for micro and small This potential priority will reliant on low value support higher value enterprises and farm be achieved through other sectors growth. diversification’. activities proposed.

The following thematic activities are therefore proposed to be supported under this strategic objective:

• Creating stronger economic ties with urban areas and growth centres (both within REALDevon and neighbouring areas) and utilising strategic transport opportunities; and • Make the most of our tourism potential.

Table 18, overleaf sets out examples of the types of projects that might be funded, the relevant RDP Priority and measure and how proposed activities will complement LEP proposed activities.

Mid Devon Leader Local Development Strategy 2015-2020 Table 18: Proposed Activities under Strategic Objective 2: To realise sustainable economic potential from our location, environmental and heritage assets Activity Theme Example Activities LEADER Priority and Fit with Complementarity RDP Cross Cutting themes Measure Jobs & with the LEP Growth 2a. Creating stronger • Opening up new markets and Support for micro and Direct No issues identified. Innovation – This activity provides an opportunity economic ties with developing supply chains linked to urban small enterprises and to pilot new and innovative practices which help urban areas and areas and transport network. farm diversification. better connect urban and rural. growth centres (both • Supporting the growth of local producer • Measure 4: Climate Change Adaption and Mitigation – within REALDevon markets within urban areas. Investment in Potentially shorted supply chains carry a lower and neighbouring • Improving attractiveness and visitor physical assets carbon footprint. areas) and utilising friendliness. • Measure 6: Farm Environment – Projects would be expected to strategic transport • Improving connections with the local and business minimise pollution and harm to the environment. opportunities. food sector (e.g. food festivals) development

2b. Make the most of • Investment in green infrastructure – e.g. Support for Rural Tourism Direct REALDevon will work Innovation – Innovation could be promoted our Tourism cycle ways, forest amenity. • Measure 7: Basic closely with the Heart through the use of ICT and social media in Potential • Signage and interpretation – linked with services and village of the SWLEP to promoting new tourism products. local food and drink and the natural/built renewal in rural ensure that any environment areas destination marketing Climate Change Adaptation and Mitigation • Destination marketing and promotion • Measure 4: projects align with Projects supported under this theme will better • Support for events and festivals which Investment in strategic activity connect people with the countryside and the connect people to the rural economy physical assets developed for the environment. Interpretation could include the through leisure, food and drink and the wider area. potential impact of climate change on the environment Similarly, in REALDevon environment. • Support for collaboration between developing our green sectors (e.g. culture, food and drink, infrastructure, we will Environment – Projects under this thematic activities) to build an integrated tourism work to ensure activity will largely be dependent on the existence offer activities align with of a high quality natural asset in order to be • Develop and pilot innovative models to those proposed by the successful. Therefore this activity will promote the pay for eco-system services to ensure LEP. conservation and enhancement of natural assets in the land manager is able to benefit from REALDevon. developing the asset. • Direct grants to individual tourism businesses not budgeted in this theme, as they will be able to apply to activity 2a.

Mid Devon Leader Local Development Strategy 2015-2020

4.5.3 Supporting Thriving and Sustainable Communities

The following potential priorities pertain to this Strategic Objective: • Address rural isolation, in particular ensuring accessibility to employment, training and key services; • Improve digital infrastructure; • Address housing affordability; • Improve resilience of housing stock to increasing fuel prices; • Improve/develop community services/facilities to support viability and sustainability of rural communities.

Table 19 below examines each of these potential priorities in turn to reflect on the extent to which the issue aligns with the LEP’s Strategic Priorities as well as the LEADER Priorities, leading to proposed activities.

Table 19: Alignment of issues with the LEP Strategic Economic plan and LEADER Priorities to proposed activity Potential Priority LEP Context Fit with LEADER Proposed Activity Address rural isolation, Good - 'Accessing training Good - aligns with Improving Rural Services, in particular, ensuring and employment provision of rural services transport and accessibility. accessibility to opportunities is a strategic employment, training and priority for the LEP key services. Improve Digital Whilst there is a good Good- aligns with provision No activity proposed – we Infrastructure strategic alignment, the of rural services. acknowledge the guidance LEP has advised Local provided by the LEP. Action Groups to avoid investment in digital infrastructure for the following reasons: 1) timing to identify gaps in superfast broadband coverage 2) the significant resource/time/ capacity required to do this adequately; and 3) the resultant risk to our programme and spend profile. Address Housing Good – This is a strategic Poor – there is no No activity proposed – Affordability priority for the LEP alignment with LEADER likely to require resource Priorities beyond the scope of LEADER Improve resilience of Good – Energy Good – aligns with Develop Local Renewable housing stock to Infrastructure is a priority provision of rural services Energy Provision increasing fuel prices for the LEP Improve/develop Low – this is not a strategic Good – Aligns with Supporting the community priority for the LEP. provision of rural services development of community services/facilities to facilities support viability and sustainability of rural communities

Two thematic activities are therefore proposed for this Strategic Objective: • Improving rural services, transport and facilities; and • Developing local renewable energy provision.

Table 20 overleaf summarises our proposed activities under this strategic objective, setting out the proposed allocation, examples of activities, the LEADER Priorities and measures, how the activity complements activities proposed by the LEP and how the RDP cross cutting themes could be supported.

Mid Devon Leader Local Development Strategy 2015-2020

Table 20: Proposed Activities under Strategic Objective 3: Thriving and Sustainable Communities

Activity Theme Example Activities LEADER Priority Fit with Complementarity with the LEP RDP Cross Cutting themes and Measure Jobs & Growth 3a. Improving rural • Community shops and Provision of Rural Assessed Improving rural services, transport and Innovation - Supporting proj ects which exploit new services, transport, other services and Services on case by facilities aligns fully with the LEP’s strategic ideas, practices and technologies (e.g. ICT, superfast facilities and facilities. case basis priority to improve accessibility to training broadband, renewable energy technologies). Pilot energy provision • Moped loan schemes Measure 7: Basic and employment. projects, which explore new ways of delivering rural • Small scale ICT services and Whilst we cannot fund ICT training, we will services will be particularly encouraged. infrastructure (e.g ICT and village renewal in be seeking innovative projects that help to Climate Change Adaptation and Mitigation - Wi-Fi in community rural areas build capacity of both rural businesses and Supporting projects which encourage rural resilience buildings) communities to benefit from ICT and reduce greenhouse gas emissions. • Improving capacity of rural improvements (e.g. mentoring, ICT Environment - Ensuring projects reduce waste and businesses and buddies, clubs). pollution and harness the potential of the communities to benefit As renewable energy is a potential area of environment. from ICT. duplication with LEP activity, we would • Eligible Community Energy work closely with the Heart of the SWLEP infrastructure such as local to ensure duplication is avoided. district heating schemes. Potentially aligning with activity under SO1 relating to forestry to generate local supply chains for woodfuel.

4.6 Evidence of Alignment with Heart of the SW LEP activity

Our process of developing the strategy has been fully aligned and cognisant of both the LEPs Strategic Priorities, as expressed in the Strategic Economic Plan and EUSIF, as well as practical delivery issues expressed in the EAFRD Review conducted by the LEP and shared with LEADER Groups in June 2014. Specifically:

• Our Strategic Objectives have been based on the Heart of the SW three core aims to ensure direct alignment with the Strategic Economic Plan (see figure 4 in section 4.4.1); • In developing our thematic activities, we have considered how this aligns with the LEPs strategic Priorities and any delivery issues (see tables 15-20) • In providing support to our business community, we will share information about any grant funding or support with the Heart of the SW Growth Hub to ensure that if local businesses go to the growth hub for advice, the growth hub is able to promote our projects. • Similarly, through our marketing and promotion activity, we will signpost local businesses to the Heart of the SW Growth Hub for wider support.

Mid Devon Leader Local Development Strategy 2015-2020 4.7 Provisional Outputs Table 21 below shows the completed output submission table requested by DEFRA. In estimating our outputs, we have used the DEFRA benchmarks as a starting point, adjusting upwards/downwards to reflect proposed activity and local circumstances. Outputs from the previous MIL programme have also informed this process as well as the 70/30% direct/indirect jobs and growth target. The end of programme forecast column in table 21 below is based on national benchmarks with the following exceptions: • Support for micro and small enterprises and farm diversification – The majority (£428,400) of funding under this LEADER priority has been allocated to ‘supporting the growth of micro and small businesses and stimulating enterprise’. This activity is largely expected to be in the form of grant funding for small businesses. Our LEP is currently suggesting that LEADER groups in the area cap grant funding at £10,000, to avoid overlap with proposed EUSIF activity. Whilst we recognise that discussions between the LEP and DEFRA are on-going on this matter, we have assumed that this cap will remain for the purpose of this exercise. Therefore we would expect average grant sizes to be considerably lower than the national benchmark of £19,951. A figure of £8,000 per grant has been used. The remainder of the funding has been allocated to activity theme 2a (creating stronger linkages), where we might expect larger projects (closer to the national benchmark) therefore a figure of £20,000/project has been used. The number of projects has been calculated on a pro-rata basis. Whilst smaller grants are useful and welcomed by local businesses, allowing them to make productivity improvements, they are potentially of insufficient scale to result in significant job creation. Therefore, we have adjusted the grant/job benchmark upwards from £11,931 to £15,000. • Provision of Rural Services – Benchmarks from the previous MIL programme suggest that average grant sizes are £14,439 for this type of activity, considerably lower than the £28,165 calculated nationally. We expect our proposed activity under this LEADER Priority to be similar in nature to that supported under the previous MIL programme and have therefore used a figure of £15,000/grant. • Support for Cultural and Heritage Activity - Benchmarks from the previous MIL programme suggest that average grant sizes are £18,294 for this type of activity, considerably lower than the £33,272 calculated nationally. We expect our proposed activity under this LEADER Priority to be similar in nature to that supported under the previous MIL programme and have therefore used a figure of £19,000/grant.

Table 21: Output Submission Table LEADER Policy RDPE expenditure Average RDPE grant Relevant CMES output End of programme forecast (by Priority per FTE job Created size (£) indicators for LDS application December 2020) (£) Support for 61,011 29,884 Total RDPE expenditure £229 ,500 increasing farm Number of projects supported 8 productivity Jobs created (FTE) 4 Support for micro 11,931 19,951 Total RDPE expenditure £581 ,400 and small Number of projects supported 61 enterprises and farm diversification Jobs created (FTE) 39 Support for rural 32,477 31,764 Total RDPE expenditure £189 ,720 tourism Number of projects supported 6 Jobs created (FTE) 6 Support for culture 55,991 28,165 Total RDPE expenditure £62 ,730 and heritage activity Number of projects supported 3 Jobs created (FTE) 2 Provision of rural 33,272 23,378 Total RDPE expenditure £99 ,450 services Number of projects supported 5 Jobs created (FTE) 2 Support for 77,045 21,788 Total RDPE expenditure £91 ,800 increasing forestry Number of projects supported 4 productivity Jobs created (FTE) 1 25

Mid Devon Leader Local Development Strategy 2015-2020 In addition to the core outputs proposed above, we have also started the process of estimating additional Outputs for our programme. It should be noted however, that these are provisional targets, based on best available evidence and provisional allocations at the time of writing. If successful, we would propose to work with DEFRA to refine targets using additional evidence held by DEFRA and confirmed allocations. Estimates have been derived from the following sources: • Total investment, no of projects and jobs created – as per previous table; • Businesses benefitting – The number of businesses benefitting under farm productivity has been estimated based on ratios (no. of projects/businesses benefitting) obtained from the ‘National Impact Assessment of LEADER’ conducted by ekosgen in 2011. The number of businesses benefitting under micro/small enterprises/farm diversification has been developed on the assumption that £428,000 has been allocated to a micro grant scheme, with an average grant of less than £10,000, resulting in approximately 54 businesses receiving a grant. The remainder has been allocated to activities to create stronger economic ties, where each project is likely to support more than one business. It is not unrealistic to expect these seven projects to support a further 46 businesses, bringing the total to 100 for this activity. • Villages/communities benefitting – based on benchmarks from the previous MIL programme; • Jobs Safeguarded – based on benchmarks from the ekosgen report for farm productivity and forestry priorities, the MIL benchmarks for rural tourism and the ratio between jobs created and jobs safeguarded from the ekosgen report for the micro/small enterprise priority.

Table 22: Provisional broader CMES outputs Farm Micro/Small Rural Rural Culture Forestry Total Productivity enterprises/ Tourism Services and farm heritage diversificati on Total Investment 229500 581400 189720 99450 62730 91800 1254600 No. of projects 8 73 6 5 3 4 99 Businesses benefitting 16 100 116 New tourism activities 16 16 Villages/communities benefitting 2 2 Jobs created 4 39 6 2 2 1 54 Jobs safeguarded 13 60 6 5.5 84.5 Key: Subject to receipt of guidance by Defra on outputs reporting for this programme. Black cells =CMES indicators not designated against a LEADER Priority Grey cells = CMES indicators designated for a LEADER Priority, but not selected for use by REALDevon at this time.

4.8 Sustainability appraisal With the time and resources available to prepare our LDS, we sought to be efficient in our sustainability appraisal by applying the principles of sustainable development right from the start. Our context for this was the Coalition Government’s vision and principles for sustainability: 1. Living within environmental limits; 2. Ensuring a strong, healthy and just society; 3. Achieving a sustainable economy; 4. Using sound science responsibly; and 5. Promoting good governance.

We adapted the government guidance for Local Plans and adopted the following process: • Setting the scope for the appraisal; • Developing and refining alternatives and assessing effects; • Preparing our draft sustainability report (as part of draft LDS); • Consulting on the draft; and • Finalising the appraisal including any action required.

Our summary findings of the appraisal were as follows:

Mid Devon Leader Local Development Strategy 2015-2020 • Strategic Direction – there was a good, strong fit between the LDS strategic direction and sustainability principles with principles 1, 3 and 4. Whilst ‘ensuring a strong, healthy and just society’ has strong alignment with ‘Supporting thriving and sustainable communities, with services and facilities to underpin growth’, its alignment with other strategic objectives is considerably weaker, reflecting the renewed emphasis on economic outcomes for this round of LEADER funding; and • Programme of Activity – given that this was linked to strategic objectives as set above, the fit with sustainability principles was found to be strong.

Two recommendations for action were identified: • Governance – The LDS contains an outline of the proposed governance model which fits well with sustainability principles. In developing these structures it is recommended that due cognisance is given to including a good cross section of potential beneficiaries in the wider LAG and Executive (economic sectors, geographic interests, demographic interests) and that sustainability is part of the training programme for those involved in governance structures; and • Applications, appraisal and decision making - Information on all five principles should be imparted to applicants as part of the programme’s guidance to enable them to demonstrate the ways in which their idea fits with sustainability principles. Part of the appraisal and decision making process should include an appraisal of sustainability.

4.9 Proposed co-operation activity We propose three levels of co-operation activity: • Close collaboration with Making it Local - REALDevon is already working closely with MIL, as both LAG areas adjoin each other, and propose to share a staff team with DCC as their Accountable Body. If both LAGs are successful with their bids, this arrangement will be strengthened and there will be considerable scope to share best practice and bring about economic efficiencies; • Collaboration with other Heart of South West LEP LAGs – Local Action Groups in the Heart of the SW enjoy a strong relationship with regular meetings between LAG Managers to exchange best practice and discuss broader issues. Our consultation process has identified a number of potential collaborative projects at this geography including: o A tourism project linking areas on the A377 with Eggesford Forest and local food and drink businesses, for example working jointly with the North Devon LAG; o Ward Forester 34 type activity across several LAGs o Biomass/Renewable energy project linking across several LAGs; o Establishment of Co-operative stalls at farmers markets & pannier markets o Sharing of some functions may be possible to enable economies of scale e.g. marketing to businesses • Collaboration with other LAGs outside the LEP area – We will seek out further opportunities for co-operation nationally and trans-nationally, as per Defra guidance when available.

34 http://www.wardforester.co.uk/

Mid Devon Leader Local Development Strategy 2015-2020

5. Management and Administration

5.1 Accountable Body Devon County Council (DCC) will act as the Accountable Body for REALDevon, as well as continuing this role for MIL. As DCC was audited and approved by DEFRA as the Accountable body for MIL’s previous programme, it understands LEADER principles and the processes and procedures involved. DCC has a wide range of experience of project and financial management of external funds such as: Leader, RDPE (MES) and Growing Places Fund. EU funded projects include Cordiale, Renewable Energy 4 Devon, SEACS (Sustainable Energy Across the Common Space) and CAMIS (Channel Arc Manche Integrated Strategy). DCC also works closely with the HoSW LEP and other partners on a number of government programmes. DCC will support REALDevon to develop robust and compliant systems, building on those previously used in the MIL area and accommodating any new requirements for 2015-2020.

5.2 Project development and assessment procedures REALDevon will offer grants to projects that fit the criteria for LEADER and meet the programme’s local strategic priorities. Through the ‘shared services’ model put forward between REALDevon and MIL LAGs, REALDevon will be able to tap directly into the considerable existing MIL LAG knowledge and experience of developing, appraising, supporting and monitoring projects within a LEADER framework. In addition, MIL and DCC have vast experience of other grant schemes including the Sustainable Development Fund, Rural Renaissance and the RDPE MES scheme, all of which used similar systems and processes.

5.2.1 Project Development The development of projects will happen through a collaborative process using staff from partner organisations and the REALDevon Programme team, with the Members of the wider LAG stimulating interest in Leader, helping to bring forward project ideas.

Initial enquiries relating to potential projects will be dealt with by the programme team or partner. An initial assessment will be made regarding the project’s eligibility and advice relating to the project’s aims and objectives and their strategic fit to the programme will be provided. If the project is not ready the Programme team or partner can provide appropriate advice and signposting to suitable sources of match funding and project development support. Numerous project ideas have emerged during the consultation process and programme staff will work with some of those organisations to help them develop their ideas and source potential sources of match funding.

5.2.2 Assessment Procedures Our assessment procedures will be open and transparent. There will be a 2 stage process using an Expression of Interest that can be assessed for eligibility and state aid before completing a full application. Complex EoI’s will be reviewed by the Executive Group for initial feedback. Completed full applications will be passed to the Programme Manager who will assess them to ensure they fit with the targets and priorities of the programme. The application will then be passed to two separate appraisers, for main grants and one for small grants. An appraisal scoring form will be completed and a recommendation made. The appraisers’ recommendation, along with a project report written by the Programme Manager, will then be passed to either the Small Grants Panel or the Executive group for a decision. See figure 4 below.

An appeals process will be in place for applicants who feel disadvantaged in any way.

5.3 Claims and payments DCC has been audited and approved by DEFRA, to ensure that its financial systems are robust and compliant. DCC will receive financial and monitoring returns from the projects, and check to ensure the accuracy of these. It will oversee the programme's expenditure and financial needs, with financial systems, controls and arrangements enshrined in a Funding Agreement between DEFRA and DCC. As a first tier regional local authority, DCC has a budget in excess of £1bn and has the capacity to ensure that all the projects it administers meet their cash-flow requirements, although it is recognised that this will no longer be a requirement in the 2014-2020 programmes.

Approved projects will submit their claims to the REALDevon office where they will be initially dealt with by the Claims Officer who will check to ensure all the appropriate paper work and invoices are correctly 28

Mid Devon Leader Local Development Strategy 2015-2020 completed before they are passed on to DCC finance for the required detailed checks and authorisation for payment.

DCC will cashflow the running costs of the REAL Devon programme, since they will host the staff and fund costs, claiming quarterly in arrears from DEFRA.

Figure 4: Process Flow Chart

5.4 Communications and publicity REALDevon will build upon our existing communication strategy for the consultation period to make use of a wide range of communication channels to ensure as many organisations as possible are aware of the programme: • Printed leaflets – distributed via REALDevon staff, LAG members and Development Officers employed by relevant Local Authorities as well as partner organisations and stakeholders; 29

Mid Devon Leader Local Development Strategy 2015-2020 • Websites – Further development of REALDevon’s website, www.realdevon.org plus information on partners’ websites; • Word of mouth – Members of Executive Group and the wider LAG will act as ambassadors for the programme and will stimulate general interest in the programme; • Local information points where possible – for example libraries, work hubs etc. • E-Newsletters – six per year sent to all the LAG members on the REALDevon database; • Social media –Use of Twitter; and • Local news media via press releases and articles on the programme.

5.5 Monitoring and Evaluation As explained in the National Delivery Framework, the RDP Common Monitoring and Evaluation System (CMES) has a range of output indicators which will measure the success of programme activities and will link to our priorities and actions in our LDS. We will utilise this system to monitor progress and to produce evidence for evaluation. The programme staff will include an element of monitoring and evaluation in their day to day roles as projects complete and ensure the CMES forms are completed and evidence provided as appropriate.

A system will be put together to enable projects to complete an evaluation sheet or survey (by email or online) to capture wider benefits and feedback. Inspection visits could also be used to discuss wider issues and benefits where applicable. This will ensure project benefits and lessons learned are captured as fully as possible. Limited budgets mean this programme will not be able to fund individual follow up evaluation visits for each project.

5.6 Action plan As REALDevon will be sharing staff with the Making it Local LAG, this Action Plan will be run in parallel. This Action Plan is subject to change, depending on operational guidance to be received from Defra. Date Key action November 2014 Announce arrival of new programme December 2014 Select new Executive group and Chair at the annual stakeholder meeting December 2014 Advertise for new staff January 2015 Train new Executive group January 2015 Appraise first projects January 2015 Staff in post January 2015 1st decision making meeting February 2015 1st Small Grants panel meeting March 2015 2nd decision making meeting

Mid Devon Leader Local Development Strategy 2015-2020

6. Financial Plan

6.1 Overall Funding Profile Table 22 below outlines the proposed distribution of funding between our thematic activities. This split of spend against theme enables the 70% direct / 30% indirect outputs to be produced as per section 4.7 above on Outputs.

Table 23: Expenditure by Thematic Activity Activity theme Option 3: Economy Emphasis SO1: Thriving and Sustainable Communities 1a. Improving Rural Services, transport and facilities ( inc . community Renewable 6.5 % £99,450 Energy) SO2: Support for New and Existing Businesses 2a. Supporting the Growth of Micro and Small Businesses and Stimulating Enterprise 28 % £428,400 2b. Supporting the growth of our agri -food sector 15 % £229,500 2c. Improve productivity from our woodlands and develop our forestry sector. 6% £91,800 SO3: Realise the sustainable economic potential for our location, environmental and heritage assets 3a. Creating stronger economic ties with urban areas and growth centres (both within 10 % £153,000 REALDevon and neighbouring areas) and utilising strategic transport opportunities. 3b. Make the most of our Tourism Potential 16.5 % £252,450 Running Costs and Admin 18 % £275,400 Programme Total 100% £1,530,000

6.2 Expenditure for each year, by policy Priority Table 23 below shows the expenditure by the RDP policy priorities by year. REALDevon will start allocating funds in January 2015, allowing actual spend to take place shortly afterwards. REALDevon proposes to spend 20% of its total allocation each year for the first 3 years, with spending decreasing as the programme progresses. This is considered a realistic profile on the basis this is a new LAG.

Table 24: Expenditure by year, by Policy Priority Expenditure Forecast (£) Financial Year Total Policy Priority 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 program me Support for increasing farm 0 45900 45900 45900 34425 34425 22950 229500 productivity Support for micro and small 0 116280 116280 116280 87210 87210 58140 581400 enterprises and farm diversification Support for rural tourism 0 37944 37944 37944 28458 28458 18972 189720 Provision of rural services 0 19890 19890 19890 14918 14918 9944 99450 Support for cultural and 0 12546 12546 12546 9409 9409 6274 62730 heritage activity Support for increasing 0 18360 18360 18360 13770 13770 9180 91800 forestry productivity

Running costs and animation 11016 47736 47736 47736 47736 36720 36720 275400

Grand Total 11016 298656 298656 298656 235926 224910 162180 1530000 Note: in addition to the 18% running costs, there will be in-kind match provided by LAG partners and DCC in terms of project development support and staff management overheads. This has not yet been quantified.

Mid Devon Leader Local Development Strategy 2015-2020

6.3 Use of grants, procurement or other type of financial support

REAL Devon will offer 2 grants schemes as follows:

• A main grants scheme for capital or revenue expenditure, with a minimum grant of £10,000 and a maximum allocation of £100,000. Applicants will be expected to provide match funding. Decisions regarding allocation will be decided by the Executive group at their bi-monthly meetings.

• A small grant programme for applications up to £10,000. This can be for capital or revenue, although restrictions will be placed on the type of revenue items that can be funded. This will use a faster, streamlined process than the main grants with approximately monthly decision meetings.

Currently we do not have clear guidance on intervention rates but based on the previous programme it is expected this LEADER funding will draw in at least £1.5m of match funding. When further guidance is received from Defra regarding final allocation to REAL Devon and on intervention rates for individual measures we will be able to produce a more accurate assessment of likely leverage.

Following receipt of guidance from Defra, REALDevon would welcome the opportunity to explore further umbrella types of small grants, using standard costs for example, or directly procure activity if appropriate.