DOCSLIB.ORG

Impact of the Economic Downturn on the South West and the Government's Response

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Impact of the Economic Downturn on the South West and the Government's Response House of Commons South West Regional Committee Impact of the economic downturn on the South West and the Government’s response First Report of Session 2008–09 Report, together with formal minutes, oral and written evidence Ordered by the House of Commons to be printed 16 July 2009 HC 392 Published on 3 August 2009 by authority of the House of Commons London: The Stationery Office Limited £0.00 The South West Regional Committee The South West Regional Committee is appointed by the House of Commons to examine regional strategies and the work of regional bodies. Current membership Alison Seabeck MP (Labour, Plymouth Devonport) (Chairman) Mr David Drew MP (Labour, Stroud) Linda Gilroy MP (Labour, Plymouth Sutton) Kerry McCarthy MP (Labour, Bristol East) Dr Doug Naysmith MP (Labour, Bristol North West) Powers The Committee is one of the Regional Committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152F. These are available on the Internet via www.parliament.uk. Publication The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at http://www.parliament.uk/parliamentary_committees/sw.cfm Committee staff The current staff of the Committee are David Slater (Clerk), Duma Langton (Inquiry Manager), Emma Sawyer (Senior Committee Assistant) and Ian Blair (Committee Assistant). Contacts All correspondence should be addressed to the Clerks of the South West Regional Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 0654; the Committee’s email address is [email protected] Impact of the economic downturn on the South West and the Government’s response 1 Contents Report Page Summary 3 1 Background 5 The South West Regional Select Committee 5 Inquiry and terms of reference 6 2 Impact of the economic downturn on the South West 7 The economic downturn in the South West 7 3 Impact on Business 9 Access to finance 9 Late payment 10 Trade Credit Insurance 11 Tax 12 Public procurement 13 Preparing for the future 14 4 Impact on Jobs and Skills 16 Unemployment 16 Train to gain 19 5 Impact on Personal Finance 22 Housing 22 Debt 24 6 The role of the RDA 27 7 The role of the Regional Minister 30 South West Regional Economic Task Group 30 Regional Economic Council and Council of Regional Ministers 31 Conclusions and recommendations 33 Formal Minutes 38 Witnesses 39 List of written evidence 39 Impact of the economic downturn on the South West and the Government’s response 3 Summary This report looks at the impact of the economic downturn on the South West, and the measures Government has introduced to try and mitigate the impact. The region is often perceived as having a rural economy dominated by tourism and agriculture. In fact, it is heavily dependent on manufacturing, construction, distribution, retail and financial and business services. It also has a very high proportion of small and medium sized enterprises and many of these are part of supply chains in sectors such as the aerospace industry. We welcome the measures that the Government has introduced, nationally and through the South West Regional Development Agency to try and support businesses. However, we raise concerns with the implementation of these schemes. The Government needs to consider how initiatives designed in Whitehall are delivered in the region, and take particular account of the needs of small businesses in view of the large number in the region. Unemployment in the region has risen higher than the national average. Firms have tried to defer making redundancies by adopting temporary closures and reduced hours working. Regional agencies, such as Jobcentre Plus, are working with employers and trades unions and others to try and defer redundancies, and use the opportunity to train staff. More could be done to inform employers of their options before making redundancies. Despite this there have been job losses, notably in some areas where previously the unemployment levels had previously been very low. A wage subsidy scheme could help keep people in jobs and help retain skills in certain sectors. We recognise that such a scheme would be expensive, and too expensive for the resources of the SWRDA, and ask the Government to review the impact of ProAct in Wales so far. The region needs to retain skills particularly in specialist sectors. We welcome the flexibilities introduced to make Train to Gain more accessible but it is in danger of being over-subscribed and without adequate funding it may not be available to all those businesses that want to utilise it. The impact of the recession on personal finance in the region has been marked, and we do not think the region has seen the full impact on housing and family finances yet. Citizens Advice Bureaux in the region are being overwhelmed by clients asking for help around debt, housing, redundancy, benefits and tax credits, and in numbers higher than the national average. Many clients wait until a crisis develops rather than seek early help, and then come with multiple problems. The Government must provide resources to those working on the front line providing advice to the vulnerable, and encourage the public to seek advice in advance of encountering difficulties. SWRDA has reacted to the downturn quickly and reprioritised its services to provide essential support to businesses in the region. It has done this at the same time as its budget has been severely cut. The Government must recognise that the SWRDA is experiencing 4 Impact of the economic downturn on the South West and the Government’s response increased demands on its services, it should not reduce the single pot allocation further in the next two years, and it should reconsider how it provides funding to all the regional development agencies. The Regional Minister must continue to work with partners, and those in central Government, to increase the number of affordable and social homes in the region. The South West Regional Economic Task Group should continue to unblock housing construction schemes. The Regional Minister can serve a useful role taking the concerns of the region to the heart of Government. However, we remain to be convinced as to how the role adds value and urge the new Regional Minister to work hard to publicise how his work has led to identifiable progress in mitigating the impact of the downturn on the region and helping to prepare it for the future. Impact of the economic downturn on the South West 5 1 Background The South West Regional Select Committee 1. The Government proposed the creation of regional select committees in its Green Paper, The Governance of Britain, in July 2007.1 Following the Green Paper, the House of Commons Modernisation Committee conducted an inquiry into Regional Accountability, and in its Report recommended, “that the most effective way to strengthen regional accountability to Parliament is to establish a system of regional grand and select committees. … There should be one grand and one select committee for each of the administrative regions in England”.2 2. The House of Commons endorsed the Committee’s recommendation on 12 November 2008 agreeing to create eight regional select committees covering the eight administrative regions of England.3 The remit of these committees is to “examine regional strategies and the work of regional bodies” in their region.4 Members were appointed to the South West Committee on 3 March 2009.5 The South West region 3. The South West region of England is the largest of the English regions, covering the local authorities of Bath & NE Somerset, Bournemouth, Bristol, Cornwall, Devon, Dorset, Gloucestershire, North Somerset, South Gloucestershire, Plymouth, Poole, Somerset, Swindon, Torbay and Wiltshire.6 4. The region has a population of about five million, the largest concentrations being in Bristol, Plymouth, Bournemouth and Swindon. Nearly one third of the population live in settlements of less than 10,000 and the region has the highest proportion of people living in very small villages in England.7 The region contains the National Parks of Exmoor and Dartmoor, the extensive coast of the Devon/Cornwall peninsula, and the Isles of Scilly. Cornwall and the Isles of Scilly qualify for European Convergence investment, targeted at the less-developed regions of Europe, which are those whose capita Gross Domestic Product (GDP) is less than 75% of the EU average.8 5. The South West region contributed nearly 9% towards the National Gross Value Added (GVA) in 2007 and regional GVA growth has been consistently higher than the UK average. However, the region is very diverse and while areas such as Swindon, Avon and Poole may have outperformed the UK average, growth has been slower in Plymouth, Torbay and Wiltshire.9 The region has a very high proportion of firms that are small or micro businesses (41% working in 1 Ministry of Justice, The Governance of Britain, CM 7170, 3 July 2007 2 Third Report of the Modernisation Committee, Session 2007–08, Regional Accountability, HC 282, para 45 3 Votes and Proceedings, 12 November 2008, pp 995-1001 4 Standing Order 152F 5 Votes and Proceedings, 3 March 2009, pp 258-9 6 Further information on the region can be found at the South West Observatory website www.swo.org.uk 7 South West Regional Assembly, Draft Regional Spatial Strategy, p.2 (see www.southwest-ra.gov.uk/nqcontent.cfm?a_id=836) 8 www.cornwall.gov.uk 9 www.southwestrda.org.uk/region/economy/regional-information 6 Impact of the economic downturn on the South West businesses employing less than 10 compared with 29% working in firms employing 250 or more),10 and 20% of the people employed in the private sector in the region are self-employed.11 6.
Load more

Recommended publications
  • South Gloucestershire Area Profile
    SOUTH GLOUCESTERSHIRE: ! AREA PROFILE ! South Gloucestershire has one of the fastest growing populations in the South West, and the area is the second largest of the four unitary authorities of the West of England sub-region. The area of Kingswood, which borders Bristol, was a mining area and suffered through the decline of traditional industry. South Gloucestershire unitary authority area was formed in 1996 following the merger of Northavon District, a mainly rural area, and Kingswood Borough, a mainly urban area east of Bristol. Much of the recent and projected growth is a result of the building of large new housing estates and the arrival into the area of large employers such as the MOD and Friends Life Insurance (formerly AXA). The voluntary sector has developed in recent years and CVS South Gloucestershire is now well established and supported by the Local Authority, and works in partnership with other statutory agencies and community anchor organisations to support groups across the area. South Gloucestershire is part of the West of England Local Enterprise Partnership (LEP) area. Headlines: six Priority Neighbourhoods are within the • South Gloucestershire is one of the fastest Bristol conurbation growing areas in the south-west, with major • South Gloucestershire has the largest housing and employment developments surface area of the West of England Unitary planned Authorities which is significantly rural • South Gloucestershire is not a deprived • However two thirds of South area, but there are some pockets of Gloucestershire’s
    [Show full text]
  • The Skills Panorama: Achieving National and Regional Impact (Arli)
    THE SKILLS PANORAMA: ACHIEVING NATIONAL AND REGIONAL IMPACT (ARLI) Demand-Side Analysis Country Report Country Report UK Principal Author: Andrew Dean January 2014 1. Table of contents 1. Table of Contents ......................................................................................................................... 2 2. ABOUT THIS PROJECT .................................................................................................................. 4 3. ABOUT THE AUTHORS .................................................................................................................. 4 4. ABOUT LMI ................................................................................................................................... 4 5. ABOUT THE UK STAKEHOLDERS ................................................................................................... 5 6. INTRODUCTION ............................................................................................................................ 6 6.1 The UK political setting ........................................................................................................ 6 6.2 The UK Labour Market ......................................................................................................... 7 7. DEMAND and SUPPLY of LMI ..................................................................................................... 10 7.1 LMI Infrastructure .............................................................................................................
    [Show full text]
  • State of the Environment Report for Wiltshire & Swindon 2012
    State of the Environment Wiltshire and Swindon 2012 Does Wiltshire include Swindon? Historically the county of Wiltshire has included Swindon. Two local authorities – Wiltshire Council and Swindon Borough Council – now have responsibility for distinct geographic areas, covering 3,255km2 and 230km2 respectively. For the purposes of this report, ‘Wiltshire’ and ‘Swindon’ are used to refer to those areas within the local authorities’ boundaries, unless stated otherwise. Swindon anniversary Chippenham Wiltshire Wildlife Trust works Devizes to create Living Landscapes across Wiltshire and Swindon Trowbridge and to lead and support the transition of society towards more sustainable living. We are committed to ensuring that our work is based on sound Salisbury knowledge and evidence and that we use this to influence and inform decisions by others. We own or manage almost 900 hectares of land Bristol that provide havens for wild London plants and animals and places for people to experience nature. We have more than 17,000 members and supporters and more than 600 volunteers. Founded in 1962, This report is available to download from www.wiltshirewildlife.org Wiltshire Wildlife Trust and www.intelligencenetwork.org.uk is celebrating its 50th Published in April 2012 © Wiltshire Wildlife Trust 2012 anniversary with a series of events and activities This report was prepared by Jenny Hawley (Environmental Intelligence Officer), throughout 2012. based on previous work by Jonathan Mantle, at Wiltshire Wildlife Trust. With grateful thanks to data providers and special thanks to Sir John Lawton. Project funded by NHS Wiltshire. www.wiltshirewildlife.org Contact details A large print version of the Wiltshire Wildlife Trust (Registered text of this report is available charity No.
    [Show full text]
  • By Jon Burnett
    The new geographies of racism: By Jon Burnett Acknowledgements © Institute of Race Relations 2011 This publication is part of a project, Solidarity and the new geographies of racism, supported by the Barry Amiel and Norman Melburn Trust. The IRR's research on racial violence is also supported by the Esmée Fairbairn Foundation. We would like to thank all of the people we spoke to and interviewed about racial violence in Plymouth, without whom this report would not have been possible. We would also like to offer a special thank you to Jon McKenzie, of the Plymouth and District Racial Equality Council, for the statistical information he made available. Finally, we would like to offer our gratitude to Danny Reilly for his time, knowledge and commitment. I Institute of Race Relations 2-6 Leeke Street London WC1X 9HS Tel: 020 7837 0041 Fax: 020 7278 0623 Web: www.irr.org.uk Email: [email protected] The new geographies of racism: Plymouth 2 Introduction and methodology attacking people’s homes, work, or places of wor- ship; and others still have been part of concerted In 2010 the Institute of Race Relations (IRR) pub- attempts to force people to flee the city. lished Racial violence: the buried issue, a report analysing 660 racist attacks which took place The information contained in this briefing throughout the UK in 2009.1 The findings indicated draws on in-depth interviews with a cross-section that patterns of racial violence in the UK are shift- of those working working on issues relating to ing. Whereas previously, attacks were frequently con- racism and racial equality in Plymouth.
    [Show full text]
  • The South West : Current Planning Issues, Major Projects and Professional Planning Activity Written to Brief the RTPI President for Her Regional Visits During 2020
    The South West : current planning issues, major projects and professional planning activity Written to brief The RTPI President for her regional visits during 2020 A LARGE AND DIVERSE REGION The South West is the largest of the nine English regions. At 23,800 sq km, it is larger than Wales and its northern boundary, in the Gloucestershire Cotswolds, is closer to the Scottish border than it is to the Scilly Isles, its southern boundary. It is renowned for its environmental quality, its mild climate and spectacular coastline. The image of the region as a popular British holiday destination, dates from the days before mass foreign travel. However, tourism remains a key element of the economy, with more than 25 million visitors each year. Because the South West is so large and so diverse , physically, economically and, more recently, in terms of local government structure, achieving coherence has always been a challenge. The RTPI South West region also serves members in the Channel Islands, where the States of Jersey and Guernsey/Alderney respectively, operate a planning system similar in many ways to the UK model. Population The resident population of some 5.6 million (ONS, 2018 mid-year), has all but doubled over the last 100 years, from 2.8 million back in 1911 (an increase of 89% compared to that for England overall of 57% ). The population is projected to reach 5.8 million by 2024 – a 7.3% increase, which is the fourth largest after London, Eastern England and the South East. Inward migration has long been a key element of population growth in the region, so that whilst the percentage of growth due to natural change is one of the lowest of any region, that due to inward migration is much the highest of any region ( ONS forecasts to 2024), with most of this accounted for by migration from other parts of the UK.
    [Show full text]
  • Bath & North East Somerset: Area Profile
    BATH & NORTH EAST ! SOMERSET: AREA PROFILE ! Bath and North East Somerset (B&NES) is a unitary authority with the historic city of Bath at its core joined to North East Somerset (formerly Wansdyke District). Bath is a cultural heritage centre and is wealthy, although South Bath is largely sprawling council housing estates with high levels of deprivation. North East Somerset has many towns that depended on mining industries, the last of these closed in the 1970s and some of the smaller towns and villages still struggle with high unemployment and low paid jobs. The voluntary sector is much weaker in this area. There is no dedicated Council for Voluntary Service and until 2012 this was provided through a service level agreement with CVS North Wiltshire. A new approach is currently being tried through Connecting Capacity. The voluntary sector is characterised by a few larger more established agencies such the Citizens Advice Bureau and Age Concern and numerous much smaller, less well funded organisations. B&NES is part of the West of England Local Enterprise Partnership (LEP) area. Headlines: • Overall B&NES is not a deprived area, but • The most deprived areas of B&NES are there are some pockets of persistent relative parts of south-west Bath, Radstock, and deprivation which are extreme when seen Keynsham. Although only 4.3% of people against the wealth of much of the area live in deprived areas, 13% of children live • B&NES is the smallest of the West of in poverty England local authority areas by • The most prevalent issue within the overall
    [Show full text]
  • POPGROUP User Group
    POPGROUP - user group meeting- Dr Peter Boden analytics John McCarthy edge POPGROUP User Group (Scotland) Ladywell House, Edinburgh January 2012 Slide 1 POPGROUP Presentation content - user group meeting- • Introduction • POPGROUP developments • User issues • Derived Forecast Module • Housing-led forecasts • Q & A Slide 2 POPGROUP Introduction - user group meeting- • Edge Analytics provides expertise in geographical modelling and research with a specialism in demographic forecasting and scenario planning • This expertise is based upon 20 years experience in the application of modelling methods to support investment, planning and policy development in the public and private sector, both in the UK and internationally • Edge Analytics is contracted by the Local Government Association (LGA) to support and develop POPGROUP ‐ a suite of demographic forecasting used by local planners across the UK Edge Analytics 2012 Slide 3 POPGROUP POPGROUP - Demographic Forecasting - user group meeting- Aberdeen City Cornwall Herefordshire North Ayrshire Salford City The Vale of Glamorgan Aberdeenshire Cumbria Highland North Yorkshire Leeds University Torfaen Argyll & Bute DenbighshireDenbighshire Kent Northamptonshire Sheffield U.S. Census Bureau Birmingham City Derbyshire Leeds City Northern Ireland Statistics & Shropshire University of Manchester Blackburn with Darwen Dorset Leicestershire Research Agency South Lanarkshire University of StrathclydeStrathclyde Blaenau Gwent Dudley Luton Northumberland Southern California University of West of Bournemouth
    [Show full text]
  • South West Water Limited Strategic Environmental Assessment of Water Resources Plan 2009 Environmental Report
    South West Water Limited Strategic Environmental Assessment of Water Resources Plan 2009 Environmental Report Hyder Consulting (UK) Limited 2212959 5th Floor The Pithay All Saints Street Bristol BS1 2NL United Kingdom Tel: +44 (0)870 000 3003 Fax: +44 (0)870 000 3903 www.hyderconsulting.com South West Water Limited Strategic Environmental Assessment of Water Resources Plan 2009 Environmental Report Author Gemma Blackler Checker Nicola Hartley Approver David Hourd Report No DV53405/ER3 Date 16/03/2009 This report has been prepared for South West Water Limited in accordance with the terms and conditions of appointment for Environmental Report dated March 2009. Hyder Consulting (UK) Limited (2212959) cannot accept any responsibility for any use of or reliance on the contents of this report by any third party. Strategic Environmental Assessment of Water Resources Plan 2009—Environmental Report Hyder Consulting (UK) Limited-2212959 Strategic Environmental Assessment of Water Resources Plan 2009—Environmental Report Hyder Consulting (UK) Limited-2212959 CONTENTS Abbreviations ...................................................................................................ii 1 Introduction........................................................................................... 1 1.1 The South West Water Water Resources Plan..................................... 1 1.2 Strategic Environmental Assessment ................................................... 2 1.3 Habitats Regulations Assessment Screening......................................
    [Show full text]
  • Port of Plymouth Evidence Base Study: Executive Summary and Final
    Port of Plymouth Evidence Base Study: Executive Summary Executive Summary Introduction Atkins Ltd was commissioned in November 2009 by Plymouth City Council (PCC) and its partners Devon County Council and Cattewater Harbour Commission, with support from the Tamar Estuaries Consultative Forum, to undertake a study of the Port of Plymouth. The study aimed to provide a robust evidence base which can be used to inform a range of future policies and plans in Plymouth and the South West region. Furthermore, should the decision be taken to prepare a masterplan for the Port of Plymouth, the study will provide a sound foundation from which the masterplan can be developed. This summary sets out the key points from the study findings. Purpose of Study Collectively, the four ports (Cattewater, Sutton Harbour, Millbay and Devonport) in Plymouth represent one of the South West’s and UK’s largest and most diverse ports. Whilst the ports all act independently they do have inter-related roles which have a significant combined impact on local, regional and national economic development and transport and, in the case of Devonport, also on our national defence capability. The study aimed to establish a robust evidence base of the four ports with a view to providing important input into a number of key policies and initiatives including: • Plymouth Local Development Framework (LDF) Core Strategy Review and relevant Area Action Plans (AAPs); • Local Economic Strategy Review; • South West Delivering a Sustainable Transport Strategy (DaSTS); and • Local Transport
    [Show full text]
  • Economic Development Strategy for Cheltenham 2007 – 2017
    Economic Development Strategy for Cheltenham 2007 – 2017 Vision To enable Cheltenham to have a thriving and prosperous economy whilst enhancing our environmental and social fabric. This strategy will focus on how Cheltenham Borough Council, with the support of partners, stakeholders and the participation of the business community, will support economic development and business growth in a way that does not compromise the quality of life of present and future generations. Economic Overview The economy of Cheltenham is facing new challenges and no one can be certain how the area will develop over the next ten years. However, assuming that growth will continue on current economic trends, detailed economic profiling provided by Gloucestershire Labour Market Information Unit is summarised in Appendix A and provides the basis for this strategy. Since the production of the 2001 Economic Development & Regeneration strategy for Cheltenham, changes in global, national, regional and local economic conditions have impacted on Cheltenham and brought to the forefront issues which affect the prosperity and quality of life of the businesses and residents of the town. To set the context for this strategy some of these issues have been outlined briefly below. In particular the intensifying impact of globalisation and the growing challenge of climate change: • Climate Change –Cheltenham’s Climate Change Strategy states, “climate change is now widely regarded as the most pressing environmental problem confronting mankind at the outset of the 21st Century”. The 2007 Gloucestershire Energy Strategy reinforces this message and highlights the need to encourage businesses of all sizes to realise the business and investment opportunities that will arise from a sustainable energy economy.
    [Show full text]
  • State of the Somerset Economy 2013
    State of the Somerset Economy 2013 Produced by Marchmont Observatory for Somerset County Council July 2013 1 ACKNOWLEDGEMENTS The Marchmont Observatory would like to thank Rani Budd for her supporting in sourcing and mapping data for this report. This report has been jointly funded by Somerset County Council and the Marchmont Observatory, via European Social Fund Technical Assistance. The Marchmont project team comprised: Hilary Stevens Chris Evans Jo Pye Ben Neild Adam Crews Kevin Aggett Hilary Todd Katie Kelsey 2 | P a g e CONTENTS Acknowledgements ....................................................................................................... 2 Contents ......................................................................................................................... 3 List of figures .................................................................................................................... 9 List of tables ................................................................................................................... 12 Preface ........................................................................................................................... 14 Executive Summary: Somerset, a Successful Economy? ...................................................... 15 Successes .............................................................................................................. 15 Weaknesses in the economy .................................................................................. 16 Future threats
    [Show full text]
  • A Better Place to Be Dix’S Field Email [email protected] Exeter EX1 1QA Web Culture and the South West of England
    Culture South West Telephone 01392 229587 Sterling House Fax 01392 229542 A better place to be Dix’s Field Email [email protected] Exeter EX1 1QA Web www.culturesouthwest.org.uk Culture and the South West of England Published and written by First published by Culture South West in 2008. Sterling House, Dix’s Field, Exeter EX1 1QA. © Culture South West. www.culturesouthwest.org.uk Design Designed in the South West by Gendall. www.gendall.co.uk Print By Century Litho in the South West onto Take 2 offset which is a 100% recycled paper, sourced only from post consumer waste. Cover image Arts Council England / Jim Wileman Location: Lyme Regis, Dorset Durdle Dor. On the Jurassic Coast, Dorset. POst Card THIS place FOR address ONLY Greetings from Dorset! We have discovered this fantastic place called the Jurassic Coast, so called Mr & Mrs Smith because of its amazing number of 12 Bohill fossils that can be found, some dating Acacia Road back 250 million years. It’s beautiful London scenery too. SE19 6SJ Wish you were here. Love from us all X Blast from the Past Jurassic Coast See page 13 Contents Foreword 4 Introduction 6 Vision and Why Culture Matters 8 Meeting the Region’s Challenges 16 Achieving the Vision 26 Appendix A: Glossary 30 Appendix B: Extract from State of the South West 32 “The 21st century will experience a major increase in real wealth... sooner or later machines will do most of the work. What we do with our leisure time will be a huge issue.
    [Show full text]