LOCAL ECONOMIC ASSESSMENT

2017 EXECUTIVE SUMMARY

Big plans, bright future 2 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 3 STOCKTON-ON-TEES IS DRIVING ECONOMIC GROWTH AT THE HEART OF

4 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Supporting economic growth and development is a key priority for Stockton-on-Tees Borough Council, and in order to do this we must define the Borough’s economic growth needs based upon a sound understanding of its existing and future position

tockton-on-Tees is a Local Authority in Stockton-on-Tees covers 20,393 hectares, and the North East of England. The Borough has 84,990 homes. The principal settlements Sis bounded by to the west, are Stockton, , Thornaby, Ingleby , & and Barwick, Norton, and Yarm. to the east, and these five Local Authorities form the Tees Valley Combined As an economic asset, the River Tees courses Authority area. The Borough also shares a through the Borough and sustains a variety of boundary with to the North and uses; from a working river upstream; a leisure Hambleton to the south. destination; and forming part of the tranquil green corridors. This is just one example of one Tees Valley has a population of 666,237; of which of many environmental and green infrastructure 194,803 (29.2%) live in Stockton on-Tees, making assets. it the largest Local Authority area in Tees Valley by population size. Stockton-on-Tees benefits from good access to the strategic road network – A1M, A19, A66 and Stockton-on-Tees’ commuting patterns1 indicate A67 – and a network of bus routes that provide that over half (44,347) of employed residents live frequent services to connect residents to work and work in the Borough, with the addition of and leisure destinations predominantly across 7% who are classed as homeworkers, 7% have Tees Valley, and for the movement of goods and no fixed workplace, and 1% work offshore. The services. remaining employed residents work outside the Borough. Middlesbrough was the destination There are six train stations in total providing with the highest number of Stockton-on-Tees’ frequent access to destinations in Tees Valley commuters followed by Redcar & Cleveland. and across the North, and a direct link to London via the East Coast Mainline. The Over a third of the Stockton-on-Tees’ workforce Borough is home to Durham Tees Valley Airport originate from outside of the Borough; with located in the south west and is also linked to Middlesbrough the most common destination of Teesport to the east, which is one of the largest origin for commuters who work in ports in the UK. Stockton-on-Tees.

1 ONS (2011) – Census Travel to Work information.

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 5 STOCKTON-ON-TEES

N

o

N COUNTY r o t h ´ COUNTY r t S HARTLEPOOL h ´e a S HARTLEPOOL e a

DURHAM DURHAM

Billingham D

m Seal Sands Billin#gham N D m Seal Sands #Billingha A N Station Haverton Teíesport Billingha Hill L A Station Haverton Teíesport Hill E L

E North Te es V Hospital

V North Te es E Hospital

E L

N Sto ckton L C Sto ckton N O -St ono ckt - onStation C Sto ckton Tees Station T O - on - H Tees G D

T H D G U G N Thornaby O G Station U N N Thornaby R O A Station I N B R A I Thornaby

L

B R Th-oorn-naby S L

S R R

Te-oesn- E A

R E A

L A Tees C

L A

D C

D # D Eaglescliffe D

D Eaglescliffe Station # D Eaglescliffe D E

Station D E

Allens West I

Station Ingleby R

Allens West I

Station Ingleby R

M

o Barwick

M o Barwick Dur ham Tees ValleyDur hamAir por Teest Valley Air port Yarm Yarm Yarm StatioYan rm Station

NORTHNORTH YORKSHIRYORKSHIREE

010.5 2345Miles 010.5 2345Miles

021 468 Kilometres 021 468 Kilometres

LegeLendgend

BorouBoghrou Boghun Bodaryundary!!EnterpEnterpriseri Zose neZone HoHousinusgin Grg owGrowth Arth eaAreas s ## TownTown Centre Centres s RaRailwailway yLi Linenes s

BuilBut upilt arupea area EmEmployplmeoyment Lont caLoticaontisons WyWynyarnydar Sud Sustaistnaaiblnaebl See Settlettmelement nt StStraterategicgi Roc Roadad Ne Netwtworork k RiRivever Ter Teeses

6 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY he Local Economic Assessment analyses The Assessment has been undertaken against characteristics of the local economy to the Themes of Business, Place and People; Tinform a better understanding of the recognising them as a series of dynamic and challenges and opportunities associated with inter-connected factors. economic growth. It takes a comprehensive look at the most up-to-date, publically available The Tees Valley Combined Authority produces statistics and data from a range of sources, and a Local Economic Assessment for the area and locally gathered information and intelligence. the Stockton-on-Tees’ Assessment dovetails with that by providing a comprehensive This Executive Summary highlights the key understanding of Stockton-on-Tees’ role within insights that have been drawn from the analysis the growth of the Tees Valley economy. that can help to inform Strategy, Policy, and Delivery priorities.

RS RTNE HIPS

PA

Y

T

I

V

BALANCED R A

O

L ECONOMY

H

U

BUSINES T

E U

F A

O PEOPLE S D R E

M N PLACE I O B N E M Y O C EY TEES VALL

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 7 8 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY THIS IS THE STORY OF STOCKTON-ON-TEES...

Stockton-on-Tees has a resilient and growing economy; providing a strong foundation for tackling the continuing challenges that exist

he Business base is diverse and growing; The variations in deprivation within with a range of industries located in the Stockton on-Tees are reflective of its diversity as TBorough that support a large number of a Place; with large urban areas contrasting with highly skilled and highly paid jobs. Whilst the more rural villages. There are also contrasts Stockton on-Tees economy is growing in relation between older areas that emerged as a result to the value of goods and services produced of the industrial heritage of the area, and newer there still remains a large gap to match the areas that have been developed in more recent national position. years.

Manufacturing continues to be important; There is a good supply of attractive land and making up a larger share of the local economy sites for investment, and a range of quality compared to the national position. Growing business accommodation to meet the needs of employment and specialisms in emerging start-up, new, and expanding businesses, with sectors show signs of an economy that rateable values at highly competitive prices. continues to diversify and is creating new and higher value jobs. People’s access to employment and services is good as a result of improving road, rail and The People who live in Stockton-on-Tees communications networks, which also enables are integral to its continuing success, so the businesses to access the skills in the local importance of providing equality of opportunity labour market, and enable the efficient supply for them to live happy, healthy and fulfilling lives and movement of goods and services within the is fundamental. A large number of residents economy. are highly skilled and can access employment opportunities. Compared to the national picture, The Borough’s green infrastructure and there are some measures relating to the environmental assets support the quality of life economy and labour market where of its residents as well as attracting people to Stockton-on-Tees out-performs the national the area to live, work, visit or do business. These average, but in other measures there is room assets include, for example, large areas of for improvement. In considering the more local accessible open space, together with other areas context, Stockton-on-Tees performs strongly of natural and semi-natural habitat, the River when compared to Tees Valley and the North Tees, a network of cycleways and public rights East. of way, which collectively go towards making the Borough a highly attractive place. Within Stockton-on-Tees there is a contrast between different parts of the Borough; with areas of both relative high affluence and high deprivation.

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 9 STOCKTON-ON-TEES HAS A GROWING NUMBER OF BUSINESSES, AND THEY ARE SURVIVING LONGER. MANUFACTURING IS STILL IMPORTANT, SUPPORTED BY A RANGE OF OTHER SPECIALISMS, BUT ECONOMIC OUTPUT REMAINS BELOW THE UK AVERAGE. JOBS GROWTH IN STOCKTON-ON-TEES IS STRONG, AND THE NUMBER OF JOBS IS THE HIGHEST IT HAS BEEN SINCE RECORDS BEGAN.

10 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY BUSINESS

he long-term trend in economic recovery Over the last 20 years economic output per head has generated strong growth in jobs. of population has steadily increased to £20,257, TThe Stockton on Tees’ economy supports however since 2006 the Stockton-on-Tees’ 94,000 jobs and contributes £3.95bn to the position against the figure for England has national economy (Figure 1). steadily declined, and in 2015 was 77.4% of the England figure.

FIGURE 1: GROSS VALUE ADDED PER HEAD OF POPULATION IN STOCKTON-ON-TEES AND PROPORTION RELATIVE TO ENGLAND GVA, 1997 TO 2015

£23,000 Stockton-on-Tees GVA per Head Relative to England 90.00

£21,000 88.00

86.00 £19,000

84.00 ) (% £17,000 82.00 ad he r £15,000 pe ) 80.00 A (£

GV

ead 78.00 h £13,000 nd a r pe 76.00 ngl A £11,000 E of GV 74.00 n io £9,000

72.00 opo rt Pr

£7,000 70.00

£5,000 68.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: ONS - Regional GVA(I) by Local Authority in the UK

Manufacturing continues to be important, and The Manufacturing sector contributed £647m in made up 16.4% of the total economic output in economic output in 2014, which is the highest Stockton-on-Tees in 2014 compared to 9.8% in figure in 15 years. the UK.

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 11 Since 2010 the number of jobs has increased by At 11.9%, the five year jobs growth in 10,000, which is the highest number recorded Stockton-on-Tees is higher than that seen in the since records began (Figure 2). North East (8.1%) and the UK (9.5%).

FIGURE 2: NUMBER OF WORKPLACE JOBS IN STOCKTON-ON-TEES, 2000 TO 2015

100,000

e 95,000

90,000 ees workplac -T 85,000

80,000

75,000 Jobs in the Stockton-on

70,000 0 3 7 0 200 2001 2002 200 2004 2005 2006 200 2008 2009 201 2011 2012 2013 2014 2015

Source: (NOMIS) – Jobs Density.

There has been strong growth since 2011 in the Business births have outnumbered closures number of businesses located in for five consecutive years, which has resulted Stockton-on-Tees, although there are still in accelerated growth in the stock of active fewer businesses per head of population than businesses in the Borough. There was twice the nationally. With 5,445 active businesses in number of business start-ups in 2015 than there Stockton-on-Tees in 2016 it represents higher were in 2010. growth than the rate in the North East and across the UK. The majority of businesses employ less than five people; with almost 8 in 10 having up to Businesses are more resilient in 4 employees in 2016, which is consistent with Stockton-on-Tees than elsewhere; with more national figures. However, in Stockton-on-Tees than 9 in 10 businesses that started in 2014 still the proportion of active enterprises employing trading after their first year, and more than 4 in more than 50 people is higher than in the UK. 10 of businesses still active after 5 years. Stockton-on-Tees’ figures are higher than the Tees Valley, North East and National averages.

12 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY There has been significant growth over the past Key broad sector specialisms in five years in the number of businesses in the Stockton-on-Tees include ‘Construction’ where ‘Professional, Scientific and Technical’ sector employment is 50% more concentrated than with 530 more businesses than in 2011. This in England. The ‘Professional, Scientific & broad sector accounts for more than Technical’ and ‘Manufacturing’ sectors have 1 in 4 businesses, followed by ‘Construction’, higher employment concentrations than in Tees ‘Business Administration and Support Services’ Valley. A key specialism in Stockton-on-Tees is and ‘Retail’. in a sector called ‘Architectural and Engineering Activities; employing 5,500 people, which is 3.6 The ‘Health’ sector employs 11,400 people times more highly concentrated than nationally. or nearly 1 in 8 of the total employment in Stockton-on-Tees followed by the ‘Professional, Innovation, Exports, and Foreign Direct Scientific and Technical’ and ‘Manufacturing’ Investment (FDI) are all important to the sectors each making up around 1 out of every 9 Stockton-on-Tees economy. With 1 in 4 North jobs in the workplace. These three sectors have East jobs associated with the ‘Manufacture of grown over the last five years; with employment Chemicals and Chemical Products’ located in in the ‘Professional, Scientific and Technical’ Stockton-on-Tees it is assumed that the local sector being particularly strong; increasing by economy makes a significant contribution to the more than 50%. North East export total of £2.6bn in ‘chemical products’. Over the past twelve years Stockton- The Stockton-on-Tees’ economy contributes on-Tees has attracted thirty FDI projects. to all seven of the Tees Valley Combined Authority’s priority sectors, with jobs growth being seen across all except for ‘Process, Chemical & Energy’. However, the concentration of employment in this sector in Stockton-on-Tees equates to the highest proportion of Tees Valley employment for a priority sector.

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 13 STOCKTON-ON-TEES PROVIDES AN ATTRACTIVE LOCATION FOR BUSINESS INVESTMENT WITH LOW VALUE COMMERCIAL PROPERTY VALUES, AND HOUSE PRICES WELL BELOW THE NATIONAL AVERAGE

14 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY PLACE

tockton-on-Tees is a place to do ‘Industrial’ premises by their very nature business and a place to work, with 5,450 are large and make up 59.2% of all rateable Scommercial properties; representing floorspace in Stockton-on-Tees, which is growth in commercial floorspace and higher than in Tees Valley and England. ‘Retail’ premises over the past five years. The growth premises make up 18.5% of floorspace in in commercial floorspace has been primarily Stockton-on-Tees. This has not grown since driven by an increase in ‘industrial’ floorspace 2010 despite growth nationally. Both ‘office’ and (Figure 3), with 12.2% more than in 2010. Local ‘other’ floorspace have grown in the last five intelligence suggests that floorspace that is years; similar to trends witnessed in Tees Valley available for this use is becoming limited. and across England.

FIGURE 3: COMMERCIAL FLOORSPACE (SQ.M), 2010-11 TO 2015-16

2010 -1 1 2015 -1 6

1,217 Industrial 1,366

428 Retail 428

269 Office 284

206 Other 230

Source: Valuation Office Agency (2016) – Non Domestic Rating: Business Floorspace 2016 figures

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 15 Stockton-on-Tees is a place to live with a Stockton-on-Tees is well connected. The growing housing stock and with house prices Borough is in close proximity to the national well below the national average. In March road network via the A1(M), A19 and A66. 2017 house prices in Stockton-on-Tees were on average £132,826 compared to £232,530 There are faster journey times on the ‘A’ roads nationally. The size and type of housing varies across Stockton-on-Tees than nationally, and greatly across the Borough and this is reflected rail passenger numbers at the six stations in the in the house prices at Ward level ranging from Borough have continued to increase since 2011. £77,500 to £365,000. More than 9 in 10 households in the Borough have access to superfast broadband, and Housing is more affordable in the Borough than Stockton-on-Tees is in the top 15% of all Local in England. The average house price in Authorities nationally for average broadband Stockton-on-Tees is 4.99 times the average speeds. income, which compares to an ‘affordability ratio’ of 7.16 times in England. The affordability of housing differs within the Borough as it is dependent on incomes and house prices, which vary.

Stockton-on-Tees is a place to shop, eat, drink, and visit; with a diverse range of town centres, high streets and other shopping areas supporting retail uses and a growing evening and leisure economy. Cultural, heritage and leisure assets and events are also increasingly important to the success of our main Centres.

16 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY Stockton-on-Tees is a place to enjoy and has a Stockton-on-Tees is sustainable. wide range of high quality open space and green The Borough has consistently good air quality infrastructure in both rural and urban areas that compared to national objectives. CO2 emissions provide clear benefits for residents’ quality of life have declined faster than the UK, but per capita and in providing attractive settings for new and emissions remain above the national average. existing businesses and development (Figure Three quarters of emissions in Stockton-on-Tees 4). There are over 600 hectares of publicly are from ’industrial and commercial’ uses, which accessible open space across the Borough that is a considerably higher share than national includes parks, recreation grounds, amenity figures. green spaces and green corridors.

FIGURE 4: URBAN OPEN SPACE IN STOCKTON-ON-TEES, 2017

Source: Stockton-on-Tees Borough Council - © Crown Copyright and database right 2017 Ordnance Survey 100023297

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 17 THE POPULATION IS GROWING, HOWEVER THE NUMBER OF RESIDENTS OF WORKING AGE IS FORECAST TO DECLINE. THERE ARE STRONG RATES OF ECONOMIC PARTICIPATION, BUT THERE IS A RISK THAT SOME ARE BEING LEFT BEHIND.

18 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY PEOPLE

tockton-on-Tees has a growing Those residents aged 16-64 (commonly known population. The total population of the as the ‘working age’ population) in mid-2015 SBorough is forecast to increase from numbered 122,849. This position has fallen from 194,803 to 211,005 people by 2039; a change a peak in 2011 and is forecast to fall further to a that will be driven primarily by an increased 65+ low in 2033 to 120,878. population (Figure 5). This age group is forecast to continue to grow over the next 25 years - increasing by 54.0%.

FIGURE 5: POPULATION BY AGE OF STOCKTON-ON-TEES’ RESIDENTS FROM 1991 TO 2015 COMBINED WITH THE LATEST POPULATION PROJECTIONS FROM 2016 TO 2039

70,000 25 to 49 60,000 Estimates Projections

65+ 50,000

40,000 0 to 15

on s 50 to 64 rs 30,000 Pe

20,000 18 to 24

10,000 16 to 17 0

19911993 19951997 1999 2001 2003 2005 200720092011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039

Source: ONS - (Mid-2015) Population Estimates and (Mid-2014) based Population Projections

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 19 Almost three quarters of the working The number of people claiming ‘out-of-work’ age population in Stockton-on-Tees are benefits has fallen in Stockton on-Tees, which economically active with the vast majority suggests higher labour market participation and in work and the rest actively seeking work a reduced reliance on financial support from the (unemployed). It is estimated that over a quarter state amongst residents. of working age residents are not actively seeking work. The main reasons for this are as a result In November 2016 the number of residents of study, followed by long-term sickness, looking claiming ‘out of work’ benefits was 14,322, which after family/home or retirement (Figure 6). is an historic low since records began in 1999. ‘Employment and Support Allowance (ESA)’ and People who are inactive and those who are ‘Incapacity Benefits’ make up the majority of unemployed may require support in the form of claimants, although this is reducing. ‘out-of-work’ benefits and other benefits (such as carers allowance and disability allowance).

FIGURE 6: STRUCTURE OF THE WORKING AGE POPULATION

WORKING AGE POPULATION 122,800 (Aged 16-64 = the potential workforce)

ECONOMICALLY ACTIVE ECONOMICALLY INACTIVE 74.4% 25.6%

In Employment Unemployed 70.8% 3.6%

Source: ONS Annual Population Survey - Year ending December 2016

Average incomes are higher than regionally Across the period 2012 to 2016, Stockton-on- but lower than national figures,and there Tees Borough Council provided on average are variations within the Borough as well. At 17,085 instances of adult social care; with £522.70, the weekly earnings for a resident 23.3% of this being provided to people aged 18- working full-time in Stockton-on-Tees are 59. Adult social care services were delivered to £16.00 less than the UK figure, but £30.50 higher all areas, but more were delivered to those areas than a North East resident. However, the lowest with higher deprivation. earning 10% of full-time workers in the Borough only earn £295.70 per week. Being in good employment has clear links to people’s positive health and wellbeing. There are disparities and health inequalities Conversely, unemployment can contribute to across the Borough. These are related to poor health. Therefore maintaining a strong variances between Wards and within Wards in economy with an adequate supply of high quality, terms of health, incomes, deprivation, and the highly paid and sustainable jobs that residents need for adult social care and other support. can access is of critical importance.

20 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY This is evidenced by the fact that locations with Up-skilling of the existing workforce and a higher need for adult social care are the ones provision of work-based training are key with poorer health, lower employment levels, to ensuring residents have the right skills lower incomes and lower skills levels. As skills to acquire the new and replacement job and qualifications are a key element to people opportunities that are forecast for the Borough. achieving higher incomes it is encouraging to see improvements in the skills profile of the The latest figure of 2,770 is the highest Borough. ever recorded in Stockton-on-Tees for apprenticeship starts. Higher level Residents’ skills and qualification levels are apprenticeship starts continue to increase year high and increasing. In the last ten years on year, but still make up only 6.5% of the total. the proportion of the population with a higher level qualification has grown from 25.4% of the Relevant and transferable skills are important working age population to 36.7%. This growth in ensuring those seeking work are employable in the skills profile of the Borough will become and can access the job opportunities available. ever more important as employers will require a With record low numbers of residents claiming highly skilled workforce in the future. ‘out of work’ benefits and a continuing rise in the proportion of residents with higher level More than a third of Stockton on-Tees’ residents qualifications the positive trends seen in the work in roles associated with higher level skills Stockton-on-Tees’ labour market are likely to and qualification requirements; with many of continue. those residents forecast to retire in the near future this could potentially leave skills gaps or The Stockton-on-Tees Local Economic shortages within the economy. Assessment forms part of a broader evidence base, which together inform strategies that aim The education, learning and skills infrastructure to further improve and grow the economy of in Stockton-on-Tees and the wider Tees Valley Stockton-on-Tees and enhance the quality of life will enable those in education to achieve the of its residents, including the Economic Strategy skills and qualifications required in the labour and Growth Plan, the Children and Young market, and there is evidence to suggest that People’s Plan, the Adult Social Care Strategy, great progress is already being made. and the Joint Health and Wellbeing Strategy.

In Stockton-on-Tees the highest ever proportion of 16-18 year old school leavers are known to be in education, employment and training. At 92.7% this exceeds the national rate of 87.4%. Local intelligence suggests that there is a strong correlation between provision of Careers, Education, Information, Advice and Guidance (CEIAG) and positive outcomes for school leavers.

STOCKTON-ON-TEES IS A PLACE WITH AN EXCITING FUTURE...

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 21 22 | LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY CONTACT DETAILS

Stockton-on-Tees Borough Council Economic Growth and Development Services Strategic Development PO Box 34 Municipal Buildings Church Road Stockton-on-Tees TS18 1LD

Email: [email protected] Tel: 01642 526050 Web: www.stockton.gov.uk/economicassessment

LOCAL ECONOMIC ASSESSMENT 2017 EXECUTIVE SUMMARY | 23 Produced by Xentrall Design & Print Services egds0086