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Mapping County Durham's Functional Economic Market Areas Durham County Council

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Mapping County Durham's Functional Economic Market Areas Durham County Council Mapping County Durham’s Functional Economic Market Areas Prepared for Durham County Council January 2011 Richard Smith, Philip Craig (GH) and Mike Coombes (Newcastle University) RR2013/06 Mapping County Durham's Functional Economic Market Areas Durham County Council 14 January 2011 Mapping County Durham's Functional Economic Market Areas Durham County Council A report submitted by GHK in association with Centre for Urban and Regional Development Studies, Newcastle University Date: 14 January 2011 Job Number 7430 Richard Smith GHK 30 St Paul's Square Birmingham B3 1QZ T +44 (0) 121 233 8900 FF +44 (0) 121 212 0308 [email protected] www.ghkint.com Mapping County Durham's Functional Economic Market Areas Document control Document Title Mapping County Durham's Functional Economic Market Areas Job number 7430 Prepared by Richard Smith, Philip Craig, Professor Mike Coombes Checked by Philip Craig and Mike Coombes Date 14 January 2011 Mapping County Durham's Functional Economic Market Areas Contents Executive summary ......................................................................................................... i 1.2 County Durham‘s Economic Geography ................................................................................... ii 1.3 Conclusions ...............................................................................................................................v 1.4 Action Plan ................................................................................................................................v 1 Introduction ........................................................................................................ 1 1.1 The Need for Functional Economic Areas ............................................................................... 1 1.2 Aims and Objectives of the Study ............................................................................................ 2 1.3 Structure of the Report ............................................................................................................. 3 2 Mapping County Durham’s Functional Economic Areas ................................. 4 2.1 The Concept of Functional Economic Geography ................................................................... 4 2.2 Study Approach ........................................................................................................................ 5 2.3 Study Method ........................................................................................................................... 5 2.4 Summary of Data Inputs and Scores ....................................................................................... 9 2.5 County Durham‘s Economic Geography ................................................................................ 12 2.6 Review of Findings ................................................................................................................. 13 2.7 Strength of Linkages .............................................................................................................. 15 3 The Functional Economic Areas in Profile ...................................................... 17 3.1 County Durham‘s Role in the North East Economy ............................................................... 17 3.2 The Functional Economic Areas – an overview ..................................................................... 18 3.3 Durham City ........................................................................................................................... 20 3.4 Tyne Link ................................................................................................................................ 37 3.5 Wear Link ............................................................................................................................... 51 3.6 South Durham ........................................................................................................................ 64 4 Policy Responses ............................................................................................. 78 4.1 Overview of Stakeholder Views ............................................................................................. 78 4.2 Skills and Education ............................................................................................................... 78 4.3 An Effective Vision and Strategy ............................................................................................ 80 4.4 Business Involvement and Support ....................................................................................... 82 4.5 Pro-active Planning ................................................................................................................ 84 4.6 The Fragility of the County‘s Economy .................................................................................. 86 4.7 Conclusions and Policy Priorities ........................................................................................... 88 Mapping County Durham's Functional Economic Market Areas Executive summary 1.1.1 Purpose of the Study This Report forms part of evidence compiled for the County Durham Economic Assessment (CDEA). The aim of the study is to increase understanding of Durham's economic geography and indentify functional economic areas, helping Durham County Council (DCC) and its partners to think through how this can support growth and development. The analysis seeks to identify and map the following: ▪ linkages between the County's town and other centres; ▪ flows of people, goods, information and services; ▪ the distribution of sectors and clusters; ▪ distinctive market areas; and ▪ the economic roles of the County's town and other centres. The study should inform the Economic Assessment but will also have implications for other strategies and the work of the North East Local Enterprise Partnership. 1.1.2 Understanding Economic Geography Functional economic geographies relate to the real area that an economy operates within (functional economic areas or FEAs), rather than simply looking at areas in terms of their administrative boundaries. Understanding these areas is important to ensure that decisions and interventions on the economy are undertaken at the right spatial level. An economic paper issued by the CLG suggested that: This gap between administrative and economic boundaries inhibits strategic decision-making and creates co-ordination challenges for economic policy-making, risking policies that are not in the wider regional or national interest or the loss of policy opportunities that could make all places better off.1 The patterns of flows which make up FEAs differ depending on which local markets are considered. The result can be that the FEA boundaries seem ‗fuzzy‘ because the results depend on the data and method that the boundaries have been defined with.2 It is also notable that many of the patterns making up FEAs have been changing over time, not least due to increased car ownership and greater mobility generally widening the area over which people travel on a daily basis for work and leisure. As FEAs are expected to look beyond labour market areas, in this report we include a more diverse cluster of economic flows and linkages, constructing a ‗best fit‘ economic geography where we can be confident in saying the majority of economic linkages and flows exist. One crucial early decision for the research was to select the geographic ‗building block‘ areas to be used. Working with the Steering Group, the final decision reached was to adopt the Study Area Zones defined for the field research by a parallel study, the Retail and Town Centre Study. The zones lie substantially within County Durham and break the County into roughly twice as many areas as the seven former Districts. As a result, the use of the zones identified in the Retail and Town Centre Study offer the opportunity to undertake a more detailed analysis of FEAs.3 1 CLG (2008), Why Place Matters and Implications for the Role of Central, Regional and Local Government, page 40 2 CLG (2009), Local Economic Assessments: Draft Statutory Guidance, Communities & Local Government, London 3 In the Annex there is a complete listing of the zones used (including those in the areas adjacent to County Durham). In that listing the postcode sectors making up each zone are specified, as are the identifying codes used for each zone on later maps. i Mapping County Durham's Functional Economic Market Areas 1.2 County Durham’s Economic Geography The analysis resulted in recognition of four distinct FEAs across County Durham. ▪ Durham City: At the centre of County Durham is Durham City. This is the one Study Area Zone in the County that has emerged as a discrete FEA in its own right. This could be seen as evidence of a self-contained local area but, in practice, we suggest the analysis demonstrates that Durham City has no single very strong link with any one other area. Durham City FEA Headline Statistics % of County Durham business base 21% % of County Durham employment 29% % of residents below NVQ Level 2 10% % of residents with NVQ Level 4 40% Sectors with greatest employment: Public Administration and Education; Tourism; and Financial and professional Business Services. Major Centres Durham City ▪ Tyne Link: Starting in the north, the northern fringe of the county – the areas of the former Districts Chester-le-Street and Derwentside – groups with the adjacent parts of Gateshead and thereby also with Newcastle and its environs.
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