Sefton Local Economic Assessment Supporting Annexes May 2011 Sefton Local Economic Assessment Supporting Annexes Contents Annex A: Glossary...........................................................................................................A-1 Annex B: STEEP Analysis .............................................................................................. B-1 Annex C: Technical Note................................................................................................ C-1 Annex D: Theme 1 – Overall Competitiveness: Data..................................................... D-1 Annex E: Theme 2 – People and Communities: Data.....................................................E-1 Annex F: Theme 3 – Business Enterprise & Growth: Data ............................................F-1 Annex G: Theme 4 – Work and Skills: Data ................................................................... G-1 Annex H: Theme 5 – Preconditions of sustainable growth: Data ................................. H-1 Annex I: Business Survey - Detailed Analysis.................................................................I-1 Annex J: Area Profiles..................................................................................................... J-1 Contact: Rebecca Pates Tel: 0161 475 2112 email: [email protected] Richard Hindle [email protected] Approved by: Richard Hindle Date: 02/03/11 Director www.sqw.co.uk Annex A: Glossary Table A-1: Key terms used in the LEA main report Term Definition Active enterprise An 'Active Enterprise' is one which has reported employment or turnover during the period, and is captured by ONS as part of the Business Demography database Business Unit A term used by ABI to refer to legal units, which have a certain degree of autonomy within an enterprise group. Claimant count Claimant count measures how many people are claiming unemployment-related benefits Economically People who are either in employment or unemployed. active Employment rate The number of people in employment expressed as a percentage of all people. Enterprise births The term “enterprise births” refers to new businesses, and does not include businesses that have been created as a result of mergers or restructuring. Enterprise Enterprise deaths refers to the number of business closures, and does not cover businesses that deaths have stopped trading following a take-over, or which have ceased to exist because their core business activity has changed. Gross Value Gross value added is the difference between output and intermediate consumption for any given Added (GVA) sector/industry. That is the difference between the value of goods and services produced and the cost of raw materials and other inputs which are used up in production. GVA can be expressed more simply as the sum of wages and profits linked to particular activities. Gross Domestic Product (GDP) is equivalent to GVA plus taxes on products less subsidies on products. Knowledge The OECD definition of knowledge intensive businesses includes a range of SIC 2003 sub- intensive sectors (3 digit) such as the manufacture of pharmaceuticals, medicinal chemicals and botanical products, office machinery and computers, electrical equipment, medical and surgical equipment, industrial process control equipment, aircraft and spacecraft, and telecommunications, monetary and other financial intermediation, insurance and pension funding, activities auxiliary to financial intermediation, computer related activities, R&D, architectural and engineering activities, motion picture and video activities and radio and television activities. Location An index to assess the concentration of employment/number of business units in a particular Quotient (LQ) sector in an area, compared to the national average. This is a measure of relative specialisation. LSOA The SOA layers form a hierarchy based on aggregations of Output Areas (OAs), and there are 34,378 Lower Layer SOAs in England and Wales. The Lower Layer SOAs were built using 2001 Census data from groups of Output Areas (typically four to six), and have a minimum size of 1,000 residents and 400 households, and average 1,500 residents. NVQ equivalents No qualifications: No formal qualifications held Other qualifications: includes foreign qualifications and some professional qualifications NVQ 1 equivalent: e.g. fewer than 5 GCSEs at grades A-C, foundation GNVQ, NVQ 1, intermediate 1 national qualification (Scotland) or equivalent NVQ 2 equivalent: e.g. 5 or more GCSEs at grades A-C, intermediate GNVQ, NVQ 2, intermediate 2 national qualification (Scotland) or equivalent NVQ 3 equivalent: e.g. 2 or more A levels, advanced GNVQ, NVQ 3, 2 or more higher or advanced higher national qualifications (Scotland) or equivalent NVQ 4 equivalent and above: e.g. HND, Degree and Higher Degree level qualifications or equivalent Productivity GVA generated per job Residence The figures show the median earnings in pounds for employees living in the area who are on earnings adults rates of pay and whose pay was not affected by absence. The earnings information collected relates to gross pay before tax, national insurance or other deductions, and excludes payments in kind. A-1 Term Definition Workplace The figures show the median earnings in pounds for employees working in the area who are on earnings adults rates of pay and whose pay was not affected by absence. Figures for earnings come from the Annual Survey of Hours and Earnings (ASHE). The ASHE is based on a 1 per cent sample of employees, information on whose earnings and hours is obtained from employers. The survey does not cover self-employed. The earnings information collected relates to gross pay before tax, national insurance or other deductions, and excludes payments in kind. Source: Predominantly ONS A-2 Annex B: STEEP Analysis B.1 In this Annex, we provide a headline ‘STEEP’ analysis of the socio-cultural, technological, economic, environmental and political opportunities and challenges facing Sefton over the next 10 years. Evidence used to inform this analysis includes national documentation (e.g. HMT report on Long-term global economic challenges and opportunities for the UK), wider futures work, and the evidence base developed by SQW for Sefton’s Local Economic Assessment. Table B-1: Headline STEEP analysis Socio-cultural • Quality of life and importance of the work-life balance. • Positive, open, attitudes to training/lifelong skills development are key to a flexible adaptive local economy • Ageing of the population is likely to continue, due to the in-migration of older people (e.g. to Southport) and because people are living longer. Implications include: Potential to better use skills and experience of older workers, and opportunity to increase employment rate of older people Silver Economy – demand for services and products, leisure and financial services (although many of the jobs created are low value added) Significant contributions to society (non-paid) Potential under-occupancy of homes, placing greater pressure on housing availability and affordability in parts of the Borough Increasing demand for houses of particular types, including assisted living • There are also hard to reach communities including those with mental health problems, lacking in basic skills, people with disabilities, young people not in employment and or training and single parents. • High house prices and affordability issues , with implications for retaining/attracting young adults and families. • Linked to the point above, retention of best and brightest young people – with limits on job opportunities and housing affordability issues, there is a risk of increasing ‘talent drain’ out of the local economy, either as graduates do not return or young people move for job opportunities in the south east/London • ‘Place identity’ increasingly significant in creating positive image and local brand: Sefton contains distinctive places, but lacks overall identity Technological • Increasing pressure to decouple economic growth and resource use. • Businesses and households in Sefton need to be encouraged and incentivised to improve energy efficiency and adaptation. • Rapid technological change and the increasing integration of the global economy are important drivers of growth, employment and productivity: Changing trade patterns leading to new investment in infrastructure; opportunities for ports/logistics hubs • As communication and technology continue to improve, so production chains are becoming increasingly dispersed globally. No economy can rely solely on its past strengths or traditional expertise, so there is a premium on promoting enterprise and productivity to ensure businesses can compete effectively in the global market place. • Increasing globalisation and technological change underlines the importance of innovation and skills accumulation , and of making the UK and Sefton an attractive location to do business. • Access to the internet and fastest broadband speeds is crucial for businesses and people, for example to access services/job advertisements etc. Also, through advancement in technology, people are more likely to work from home – broadband access and speeds become increasingly important (especially in attracting people to live and work in the Borough). The roll out of Next Generation Broadband will have significant implications for enabling more home-working, increasing the global inter-connectedness of B-1 supply chains, and reducing social isolation. • Places that are at the forefront of technological