BATH AND NORTH EAST SOMERSET ECONOMIC STRATEGY REVIEW 2014–2030 FOREWORD Locally the West of England economy Bath, together with Bristol is highlighted Bath and in particular the Bath City has shown particular resilience. as having an internationally-significant Riverside Enterprise Area, has a Having weathered one of the Increases in both resident and and fast-growing high tech sector in key role to play in delivering future longest recessions of recent times workplace employment have seen a new Centre for Cities/McKinsey & economic growth. The Review also the national economy is recovering the sub-region out-perform the Company report. highlights the importance of promoting and forecasts are suggesting national economy and the West of additional employment in the Market The Review highlights the issues that ongoing growth for the remainder England Local Enterprise Partnership Towns, supporting key housing & must be addressed. House prices are of the decade. Bath & North East is seeking to build on this underlying transport projects and addressing 40% higher than the national average. Somerset is well placed to take strength by setting out ambitious employability and skills in the Average wages are 10% lower. Long advantage of this recovery. We growth proposals in its Strategic workforce. term unemployment, particularly long have many strengths we can build Economic Plan published in 2014. term youth unemployment, remains In addition we have widened the scope on : an enviable quality of life : This Plan seeks to deliver a minimum an issue. There is a shortage of of the Strategy to embrace the whole a World Heritage city : two high of 65,000 new jobs by 2030 building industrial space and we lack the economy and ensure the contribution quality Universities : a strong Further on the area’s track record in overall quality of office space that and potential of the wider visitor and Education sector and a well-qualified innovation and creativity and a rich modern businesses demand. cultural sectors, both in economic and workforce. heritage and cultural vibrancy. “place” terms, is taken into account. Our ambition is to increase the Our vision is that: Bath & North east It is vital that the Bath & North East overall number of jobs in B&NES The Economic Strategy remains very Somerset will be internationally Somerset area seizes the opportunity by 11,500 and by focussing on much a partnership document which renowned as a beautifully inventive to be part of and share in the projected “priority sectors” where the area has will require partnership working, and entrepreneurial 21st century place economic growth and prosperity of the particular strengths we can increase both locally and sub-regionally, to with a strong social purpose and a wider sub-region. We have a nucleus of overall productivity and raise average address the identified priorities. We spirit of wellbeing, where everyone employment in the knowledge economy earnings. look forward to making our aims and is invited to think big – a ‘connected’ which can support economic growth objectives a reality for people living area ready to create an extraordinary and deliver a more productive, higher and working in Bath & North East legacy for future generations value local economy. Somerset.

Cllr Ben Stevens Colin Skellet OBE Jon Hunt Tim Middleton Matt Atkinson Ian Bell Angela MacAusland Cabinet Member Chair of West of Director of Research Vice-Provost Chair of Bath and Executive Director FSB Branch for Sustainable England Local & Innovation at Research and North East Somerset of The Initiative in Chairman for Bath Development for Enterprise Partnership University of Bath Enterprise. Research Learning & Skills B&NES B&NES and Graduate Affairs Partnership Bath Spa University 3

For further information please contact: Community Regeneration Bath & North East Somerset Northgate House, CONTENTS Upper Borough Walls, ECONOMIC STRATEGY REVIEW 2014 Bath BA1 1RG. 01225 396304 development_regeneration@ bathnes.gov.uk 9 16 ECONOMIC BUSINESS CONTEXT THEME

29 PLACE X THEME APPENDIX 1 4 INTRODUCTION 46 X PEOPLE APPENDIX 2 THEME 4 The Economic Strategy for Bath and North East Somerset (update 2014): Introduction INTRODUCTION ECONOMIC STRATEGY REVIEW 2014

In 2010 B&NES Council approved its first Economic Strategy, developed in conjunction with the B&NES Economic Partnership. The Strategy contains a number of strategic priorities and detailed actions and a commitment to review and refresh the document after a period of three years. 5

The review provides an opportunity as well as to foster growth in key to take into account major changes employment sectors. in the economy over the past 3 In particular the review of the years and the way public and private economic strategy puts wellbeing sector services are now provided. and the quality of place at the heart Our aim is to broaden the scope of of the outcomes it is aiming to the Strategy to reflect these changes deliver. and to include actions that address wellbeing and reduce inequalities

The revised Economic Strategy takes account of significant changes both locally and nationally including: • The socio-economic impacts of the 2008 recession, changes to the welfare system and Universal Credit, the increase in the age of retirement and the raising the participation age. • Falling unemployment and the numbers of young people not in education, employment or training • The changes to external partnership relations with the demise of the Regional Development Agencies and Business Links and the creation of Local Enterprise Partnerships (LEPs). • The pressure on resources, the ongoing challenge of moving to a low carbon economy and the demographic impacts of an aging population. 6 The Economic Strategy for Bath and North East Somerset (update 2014): Introduction

Our Vision is Bath and North East Somerset will be internationally renowned as a “beautifully inventive” entrepreneurial 21st century place with a strong social purpose and a spirit of wellbeing, where everyone is invited to think big – a ‘connected’ area ready to create an extraordinary legacy for future generations.

The review takes into account the work of the To address the Strategic Vision, the Economic B&NES Public Services Board which is promoting Strategy Review is structured around three key a co-ordinated approach to local services and inter-dependent ‘Strategic Economic Themes’ supporting the closer integration of key strategies ‘Business’, ‘People’, and ‘Place’ which are seen to deliver sustainable communities working to as key ‘areas of activity’. Within the three Themes a common vision. there are nine ‘Strategic Economic Priorities’, with a framework of actions and measures for Moving forward the Review will seek to build on promoting sustainable economic growth. the area’s strengths to create a more productive, higher value added economy. The focus will be The Strategy Review document addresses each on specific priority sectors and creating a range theme and its strategic economic priorities in of local employment opportunities which can be turn, setting out the evidenced based economic accessed by the resident workforce. strengths & weaknesses and issues & challenges within each, and establishing the opportunities for development and growth based on this analysis. 7

Priority BUSINESS GROWTH Theme & INVESTMENT BUSINESS NEW BUSINESS SPACE BUSINESS SUPPORT

Priority Theme SUCCESSFUL CITY PLACE VIBRANT MARKET TOWNS SUSTAINABLE CONNECTED COMMUNITIES HOUSING

Theme Priority PEOPLE EMPLOYMENT & SKILLS LEISURE & CULTURE ECONOMIC STRATEGY

Making Bath & North East Somerset – The place to live, work & visit 8 The Economic Strategy for Bath and North East Somerset (update 2014): Introduction

As resources become In order to ensure that the Strategy By establishing each of these important also considers its relationship with economic issues as core values we more expensive the environment and equality/social can ensure a strategic approach to businesses with lean inclusion two cross-cutting ‘core local economic development which manufacturing methods values’ have been established: is sustainable, includes all parts of ‘Sustainability’ and ‘Health & the economy, and where no-one is will be at an advantage Wellbeing’. excluded. and residents that reduce their energy consumption will be better placed to benefit from the economic HEALTH & WELLBEING & SUSTAINABILITY recovery. Promoting Cross cutting core values local production and Businesses and residents are reducing their energy and waste costs and purchasing will help to preparing for the future climate. This increases competitiveness and creates create a more sustainable work for environmental businesses which economy. Give all residents the opportunity to take grow and move to the area, bringing part in BANES economic success, which greeen jobs. Use of local food and energy will create fairer life chances, ensure is increasing economic resilience and a By building a dynamic healthy standard of living for all, and circular economy is developing, where and strong economy enable people to stay healthy waste is a valuable resource. we will be better placed Support sustainable businesses and the Focus on preventative spend to tackle the to tackle health & social Low Carbon & Environmental Goods & social and health problems which prevent issues in B&NES and Services (LCEGS) sector people from realising their potential

establish a fairer more Create fairer life chances through fair equitable community. By Maximise the local multiplier effect; employment and good work for all increasing local food production and local ensuring everyone has an food consumption to promote growth in incomes and jobs as well as the local opportunity to succeed cultural offer we will fully maximise our Enable existing businesses and residents to “green” by reducing their energy use Ensure a healthy standard of living for all economic potential. and adapting to the future climate 9 ECONOMIC CONTEXT

To ‘set the scene’ for the Economic Strategy Review, an assessment of the local economy has been undertaken which: • sets out recent past trends nationally and locally • provides a current position statement as to where the B&NES economy is now. • summarises our growth ambitions for the B&NES economy going forward to 2030. 10 The Economic Strategy for Bath and North East Somerset (update 2014): Economic Context

UK ECONOMY IN 2014 • A revised forecast upwards for UK • At the start of 2014, the claimant count GDP (Gross Domestic Product) growth was 1.2 million, the lowest level since There is considerable evidence from 2.4% to 2.7% in 2014 and from December 2008, and the Treasury’s that the UK economy is making 2.2% to 2.3% in 2015, and forecasts Office for Budget Responsibility (the substantial progress in recovering GDP growth of 2.6% in 2016, 2.6% in OBR - government’s independent fiscal from the global economic downturn 2017 and 2.5% in 2018. watchdog).now expects it to fall below which began to have an impact in 1 million in 2017 for the first time since • GDP to return to its pre-crisis peak in the spring of 2008. Indeed, the 2014 2008. the third quarter of 2014. Budget announcement (HM Treasury, • Inflation (Consumer Prices Index Budget Report – March 2014) gives • A revised forecast upwards for inflation – CPI) is expected to be below the following summary medium-term employment growth across the target at 1.9% in 2014 and then to stay economic forecast for the UK economy forecast period, expecting employment at the 2.0% target for the rest of the (2014 to 2018): to reach 31.4 million by 2018. forecast period. • Average earnings to grow faster than inflation throughout the forecast period. Gross domestic product (GDP) These forecasts are made in the light of major restructuring of the UK economy, 3.0 particularly in such sectors as Finance and the Public Sector, which suggests that the short-term to medium-term 2.5 prospects for the UK economy are ‘good’. In turn, the prospects for the 2.0 West of England and Bath & North East Somerset economies should be viewed 1.5 as equally optimistic.

1.0

0.5

0.0 2012 2013 2014 2015 2016 2017 2018

Outturn Forecast Source: ONS, Office for Budget Responsibility, March 2014 11

RECENT TRENDS Percentage change in economic AND THE BATH AND output and productivity 2007 - 2011 NORTH EAST SOMERSET ECONOMY IN 2014 Economic Output Productivity Overall economic performance of the B&NES economy 0.0 In 2011, the B&NES economy produced an estimated £3.8 billion -1.0 of GVA output with total workplace employment of almost 92,000, -2.0 equating to an average productivity per employee of £41,600. B&NES -3.0 productivity performance is slightly lower than across the West of England and nationally (£43,100 per -4.0 job and £42,400 respectively). -5.0 *GVA measures the contribution to the economy of each individual producer, industry or sector in the UK. -6.0

B&NES The main driver of B&NES’ lower As with the West of England and West of England productivity is the area’s above- nationally from 2007 to 2011 the B&NES average employment in public sector economy shrank during the 2008 England activities such as education and health economic downturn. Overall the output (36% of B&NES’ workplace jobs are of the B&NES economy fell by 5.1% in the predominantly public sector between 2007 and 2011 compared activities of Public Administration to a 1.9% decline across the West of & Defence, Health & Education England and a 5.4% decline nationally. compared to 29% across the West Productivity also fell across B&NES of England and 27% nationally) and over the period, by 5.6%, compared to the relatively large concentrations of productivity declines across the West employment in sectors such as retail of England and nationally of 4.2% and and tourism. 4.5% respectively. 12 The Economic Strategy for Bath and North East Somerset (update 2014): Economic Context

UNEMPLOYMENT The unemployment rate in B&NES However, whilst overall unemployment is 3.1% compared to 3.8% in the has reduced to the same level in 2013 West of England and 4.9% nationally. as it was in 2007, the proportion of Resident unemployment has remained claimant unemployment at 54% is consistently below the national higher than it was pre-downturn with a average, although the percentage steep rise in the proportion of long term increase (37%) is greater than the unemployment. Nevertheless the overall England figure (31%). unemployment rate remains well below the West of England and national figures. The chart below shows trends in unemployment for 2007 to 2013 for the B&NES economy. In 2007, prior to the economic downturn, B&NES had 3,900 unemployed residents, 28% of whom were claimant unemployed. Overall unemployment reached a peak of 5,600 in B&NES in 2012, but in 2013 numbers reduce significantly, suggesting that the B&NES economy, Unemployment in BANES in line with the national picture, is recovering from the downturn. Indications are that this trend will 6000 continue through 2014 and that unemployment could return to 2008 pre-recession levels. 5000

4000

3000

0 2007 2008 2009 2010 2011 2012 2013 13

EMPLOYMENT The chart below shows trends in Over the period, resident employment The chart below compares the • As with England, resident resident and workplace employment has been relatively more volatile, trends in resident and workforce employment in B&NES has risen by for 2007 to 2013 for the B&NES declining by far more than workplace employment in B&NES with the just over 1%, though across the sub- economy. In 2013 B&NES had resident employment before recovering more performance of those measures in region this is much higher at 3%. employment of around 87,000, around quickly in 2011 as employment the West of England sub-region and • Workplace employment in B&NES 1,000 more than pre-downturn. fluctuations in the wider sub-region nationally for 2007 to 2013 has declined by 3%, a very different However, workplace employment in affect people working outside B&NES. situation to growth of 4% across 2013, at 87,000, is some 2,000 lower the West of England and growth of than the pre-downturn level of 89,000. almost 1% nationally.

Employment Workplace Employment Percentage Change on B&NES Resident Employment Employment Indicators West of England 90,000 2007 to 2013 England

4% 88,000 3%

86,000 2%

1% 84,000 0%

82,000 -1%

-2% 80,000 -3%

78,000 2007 2008 2009 2010 2011 2012 2013 -2% Resident Employment Workplace Employment 14 The Economic Strategy for Bath and North East Somerset (update 2014): Economic Context

The overall picture painted by this assessment of the B&NES economy is that whilst resident unemployment has remained low, the wider economy has performed less well in relation to workplace employment, output and productivity driven principally by changes in public sector employment. However, growth in the knowledge economy locally has outstripped both the West of England and England (5% compared with 4% and 2%). The above average representation in sectors such as Information & Communications, Creative & Digital, Environmental & Low Carbon and Health & Wellbeing is also supporting the local economy to recover more quickly. 15

OUR GROWTH AMBITIONS 2010 – 2030

As part of the West of England Local Historically the B&NES area has Delivering the economic growth set Enterprise Partnership (LEP) we share contributed 15% of total jobs and out above will require a focus on our partners’ ambitions for promoting economic output in the sub-region and protecting manufacturing jobs and growth across the sub-region. The LEP the ambition is that this will continue increasing employment in selected has recently submitted its Strategic to be the case. Moving forward, the priority sectors. Overall total local Economic Plan to government. This Economic Strategy is seeking, in line employment would increase by 12% sets a baseline for delivering 65,000 with the LEP’s growth plans and the and the value of the local economy jobs and 2.6% GVA growth in the Council’s Core Strategy, to increase the would grow by over £3bn. West of England to 2030, with an number of jobs in B&NES by 11,500 by ambition to promote higher levels 2030. Taking into account job losses, The table below summarises the of growth dependent on the level of this will require some 16,900 new jobs changes in the key economic government funding for infrastructure to be created as set out below. indicators. and employment projects. Summary of B&NES 2010 to 2030 growth by Sector Summary of Key Economic Indicators 2010-2030 Employment by Sector (SIC 2007) 2010 2030 Net Change Average Annual Growth Rate (%) Agriculture & fishing 700 500 - 200 B&NES WofE England Energy & water 1,100 1,200 100 Manufacturing 4,700 4,500 -200 Average Annual Growth – Productivity 2.7 2.3 2.3 Construction 4,100 5,300 1,200 Average Annual Growth – Jobs 0.6 0.8 0.8 Distribution, hotels & restaurants 21,800 24,800 3,000

Transport & Communication 6,600 9,500 2,900 Average Annual Growth – GVA 3.2 3.2 3.1 Banking finance & insurance etc. 13,800 22,100 8,300 Public admin education & health 31,100 25,900 - 5,200 Other services 4,900 6,500 1,600 TOTAL 88,800 100,300 11,500 16 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme BUSINESS THEME

To promote business growth which delivers increased productivity and earnings and provides local people with access to sufficient quality sustainable jobs across the economy 17

INTRODUCTION The business theme provides an overview of the issues, challenges and opportunities for business and entrepreneurship in Bath and North East Somerset, and sets out a strategic approach to address these issues and challenges. Encouraging and enabling businesses and entrepreneurs to grow and prosper is fundamental to ensuring a competitive local economy for the future.

THREE KEY PRIORITIES FOR ACTION

PROMOTING DELIVERING PROVIDING APPROPRIATE A SUPPLY OF BUSINESS A COMPREHENSIVE BUSINESS GROWTH SPACE THAT MEETS BUSINESS SUPPORT & INVESTMENT LOCAL BUSINESS SERVICE FOR SMALL GROWTH NEEDS AND MEDIUM SIZED BUSINESSES 18 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

ISSUES AND CHALLENGES BUSINESS AND Business Size Entrepreneurship The average size of businesses in In addition to relatively low productivity, ENTREPRENEURSHIP B&NES is smaller relative to the national a further key issue is the low rate of picture (only 15% employ more than entrepreneurship. The area has a lower B&NES’ £3.8 billion of annual economic 10 people compared with 19% and ‘business birth rate’, but also a relatively output is produced by around 8,500 17% for the sub-region and nationally). high ‘business death rate’, which when Overall local businesses tend to be more combined make for lower growth (or business enterprises (VAT/PAYE established with 65% having traded for decline) in the local business stock registered businesses) and over 13,000 more than 3 years (compared with 60% (between 2009 and 2011 the stock self-employed. These businesses are in the West of England and nationally). of businesses in B&NES declined by around 2%). As well as business start- Productivity also responsible for B&NES’ 92,000 up, B&NES’ growth in self-employment total workplace employed population, The main indicator of the overall is also weak; self-employment in competitiveness of the B&NES economy who each produce an average of B&NES grew by 14% from 2001 to and its businesses is productivity. 2011 compared to much larger rises £42,000 per annum of output. As established earlier the main driver witnessed across the West of England of B&NES’ lower productivity is the (23% and 26% respectively). area’s above-average employment in the public sector and the relatively large Workplace Earnings concentrations of employment in sectors Partly as a result of the above such as retail and tourism. This is further workplace earnings are substantially exacerbated by above average part-time lower than elsewhere (average gross employment (42% compared with a weekly pay in B&NES is £382 compared sub-regional figure of 35% and a national with £410 across the West of England rate of 33%) and a below average and £422 nationally). Furthermore, representation of larger businesses earnings have demonstrated very weak which tend to have higher productivity growth over the last ten or so years; than smaller businesses. between 2003 and 2013 workplace earnings in B&NES grew by just 5% compared to 18% growth across the West of England and 24% nationally. 19

OPPORTUNITIES To address the inter-linked issues of low productivity, limited entrepreneurship and below average wages the focus has to be on building on the areas business strengths and business specialisms in specific priority sectors. By supporting business growth and investment in these areas, B&NES can close the productivity and workplace earnings gap which exists between itself and the broader West of England and national economies

The priority business sectors Priority sectors are seen as CORE SECTORS KEY SECTORS strategically important to the local economy. Their “strategic” importance • Tourism, Leisure, • Creative & Digital is because they are large employers Arts & Culture and/or higher value added and/or • Information & are higher growth, or are expected to • Retail Communication (ICT) demonstrate higher growth in the future. They are the sectors to ‘prioritise’ for • Health & Wellbeing • Advanced Engineering support and intervention as they are & Electronics essential in ensuring the longer-term • Finance & Professional competitiveness and stability of the Business Services • Environmental & local economy. Low Carbon There are 8 Priority Sectors in B&NES defined as “Core” or “Key” sectors. Core sectors currently employ significant numbers of people locally and will continue to be important in employment terms. Key sectors are generally smaller in employment terms but higher value added and offer the potential for significant future expansion. 20 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

Their employment and overall economic contribution (GVA output) is PRIORITY EMPLOYMENT GVA OUTPUT LOCATION SECTOR QUOTIENT set out in the following table together with their ‘location quotient’ – their TOTAL £m PER EMPLOYEE £ representation in the local economy compared with the national economy Tourism / Leisure / Arts & Culture 10,300 £205 £19,900 1.23 The priority sectors cover 58% of B&NES’ total employment (excluding Retail 10,200 £233 £22,900 1.16 self-employment). In terms of their output contribution, Health & Well-being 11,100 £337 £23,700 1.28 and because on average the Priority Sectors are higher value-added in Financial & Professional Business Services 8,500 £672 £79,000 0.84 terms of productivity, they account for a much larger share of B&NES’ ICT / Creative & Digital 5,800 £418 £72,000 1.25 total output; the eight priority sectors account for 64% of B&NES’ GVA. Advanced Engineering & Electronics 2,700 £159 £58,900 0.73

Environment & Low Carbon 1,300 £238 £183,300 1.48

The priority sectors have the potential to deliver up to 11,500 new jobs in B&NES by 2030 and make a significant contribution to increasing the area’s GVA output and productivity. 21

B&NES’ REPRESENTATION IN THE ‘KNOWLEDGE ECONOMY’ The priority sectors offer the opportunity There are two indicators which highlight for B&NES to exploit its business how B&NES performs in terms of the strengths in the Knowledge Economy, knowledge economy; activities in which the UK economy is “Smart specialisation • employment representation in the expected to maintain and increase its knowledge economy and high & focuses on key enabling global competitiveness. technologies. The role medium technology manufacturing In conjunction with the LEP, • the share of employment in higher of innovation in smart B&NES is able to develop a skilled occupations. specialisation is key, as is “Smart Specialisation” approach. On both of these indicators B&NES Focussing on digital & creative media, knowledge creation and performs extremely well compared to low carbon, high tech industries, both the West of England and national utilisation, investment advanced engineering & aerospace economy: in skills and human and professional services the Local capital, and the role of Enterprise Partnership Strategic Economic Plan proposes a “smart • In B&NES, 32% of employment • Some 63% of workplace agglomeration, clusters, specialisation” approach for the lies in the knowledge economy employment in B&NES is located in networks and ‘knowledge sub-region. and high & medium technology higher skilled occupations compared spill-overs.’” manufacturing compared to 30% to 60% across the West of England across the West of England and and just 55% nationally. 28% nationally. • In terms of growth in higher skilled • Between 2009 and 2012 occupations, B&NES has seen a employment growth in the 15% rise in its share of employment knowledge economy in B&NES has in these occupations between 2004 also been relatively high; B&NES’ and 2013 compared to an 11% rise employment in the knowledge across the West of England and a economy and high & medium 6% rise nationally. technology manufacturing grew by 5% compared to 4% across the West of England and just 2% nationally. 22 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

INVESTMENT & BUSINESS ENGAGEMENT, PROMOTION INVESTMENT AND PROMOTION Building on our region’s To take full advantage of the Historically the area has not attracted potential for growth in the area’s key significant inward investment but image & identity and the sectors and knowledge economy, the development of the Bath City role of the Invest Bristol a proactive approach to business Riverside Enterprise Area will To maximise the opportunity and & Bath shared inward engagement and business investment provide opportunities to attract new benefits of working with theLEP and promotion will be required. companies to the area building on and Invest in Bristol & Bath, the investment service’ Bath’s strong international brand and Understanding the business needs of identification and development of the quality of life offered by the area key sector companies and providing specific development “propositions” as a “beautifully inventive” place. a close relationship with the leading and the availability of modern business This will also enable opportunities in businesses in each sector will be an premises which can be used to N.E. Somerset & the market towns to important pre-requisite for enabling attract investors, developers and end be promoted to a wider audience. local economic growth and an occupiers will be required. acknowledgement that the bulk The Local Enterprise Partnership of future business investment and Strategic Economic Plan sets out how growth will come from indigenous the 5 LEP Priority Sectors will be companies. supported by investing in four well- evidenced ‘levers of growth’. One of However, if the area is to achieve these levers is as follows: the planned levels of economic and employment growth new inward investment will also be required. 23

SUMMARY OF THE ISSUES, CHALLENGES AND OPPORTUNITIES FOR BUSINESS AND INVESTMENT In summary, the key business issues SUSTAINABLE GROWTH and challenges for B&NES, each often inter-related are as follows: The business opportunities related to sustainable growth • The eight priority sectors; are essentially threefold: • The establishment and growth of • Raising the proportion of employment in the environmental & low carbon private sector businesses, particularly in business sector as a business higher value added sectors and businesses; sector in its own right which can in turn help to facilitate: • Raising the productivity of private sector • The opportunity to encourage businesses, particularly in retail and tourism; businesses and business supply chains to adopt efficiency measures • Raising the level of business start-up, which will use fewer resources and particularly in higher value added private boost profits through associated cost savings. sector business activities; whilst at the • The opportunity to encourage same time reducing business failure, and businesses to explore their thus improving business survival rates and exposure and risk to problems growing the overall stock of businesses. associated with climate change, and to undertake appropriate mitigation and adaptation 24 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

Demand Offices BUSINESS The demand for office space is focussed The situation in the office market is on Bath and is driven in the main by different. There is little availability in SPACE indigenous business expansion. Annual N.E.Somerset given the limited local average take-up is around 10,000sqm nature of demand, although this belies per annum. The take-up of industrial the potential of Keynsham given its space is lower at around 2,000sqm location and good connectivity. ISSUES AND CHALLENGES per annum, although this can vary on a yearly basis depending on specific In Bath the vacancy rate for offices is Stock occupations in N.E. Somerset. 7.5% which suggests that the market Overall in the main urban areas in is broadly in balance. However the B&NES there is 205,000sqm of office Supply quality of the overall office stock and the floorspace. By far the largest amount Industrial available floorspace is an issue. (84%) is in Bath with the remaining 16% The lower take-up rate for industrial Of the 120,000sqm of office space shared equally between the Somer premises is in part a result of restricted in the Bath central area only 12% is Valley and Keynsham. This reflects the availability. The typical vacancy rate for classified as grade A and much of importance of Bath as the predominant industrial property across B&NES is 3%. the available space in the preferred office market area with the market towns In Bath the rate is less than 1%. This central Bath locations is generally of catering only for specific local demand. places a severe restriction on occupiers poorer specification. This results in a In addition there is 371,000sqm of looking for space and has resulted in perception of an oversupply of office industrial floorspace in the urban areas. companies relocating out of the area accommodation and reduced rental However this time the split is different, with to Bristol and Wiltshire. In addition the levels due to competition across the Bath and the Somer Valley each providing Green Belt which covers most of the board. This in turn contributes to a 40% of the floorspace and Keynsham northern half of B&NES has meant lack of investor and developer activity the remaining 20%. The split confirms that no new industrial sites have come in the City. the historic role of the Somer Valley as forward. Workspace the industrial heartland of the area with In N.E. Somerset there has been the floorspace in Bath being focussed The availability of workspace for more choice due to the availability of on local service manufacturing alongside more specific end users seeking industrial land at the Bath Business Park, a small number of larger advanced creative, flexible managed space Peasedown St John and the Westfield engineering companies. or incubation / innovation facilities Industrial Estate. However both these is also an issue, where managed sites are now largely at capacity and workspace is under represented there is a need to bring forward new compared with neighbouring authorities employment locations. and whilst there is operator interest there are few potential opportunities. 25

OPPORTUNITIES To deliver a supply of Addressing the shortage of Given the environmental constraints in industrial floorspace by bringing areas surrounding Bath, new strategic business space that forward new strategic employment employment locations need to be meets business growth locations brought forward in Keynsham and the needs in B&NES will Whilst the overall amount of industrial Somer Valley floorspace is likely to contract as require the following key employment in the manufacturing Action is required to build on sector reduces, analysis indicates that issues to be addressed: partner and operator interest to losses are likely to exceed forecast bring forward: Raising the quality of office reductions. floorspace in Bath A new Creative Industries Hub There is a pressing need for new The redevelopment of former in Bath. industrial sites in Keynsham and the grade A office floorspace in the city. Making provision for the specific Economic forecasts indicate that, to Somer Valley and the regeneration of brownfield sites through the Bath space needs of small creative and deliver the required level of economic knowledge based businesses by growth and in particular to facilitate City Riverside Enterprise Area are the main drivers in this process. This increasing the supply of flexible the expansion of the key business managed workspace and facilitating sectors, up to 50,000sqm of modern combination of excessive loss of space and severely restricted supply the expansion of innovation and centrally located floorspace is incubation facilities. required. will inevitably result in key industrial companies and service manufacturing Additional managed workspace businesses having to relocate from in Keynsham and the Somer Valley the area due to lack of modern accommodation and new sites An expansion of University linked coming forward. innovation and incubation facilities 26 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

BUSINESS SUPPORT

ISSUES AND CHALLENGES The overview of the challenges facing There is a wide range of business the delivery of future business growth support programmes and products and investment highlighted the need to already in existence and in terms of local improve entrepreneurship in B&NES provision the priorities should be to: Raising the level of business start- up (particularly in higher value added private sector business activities), • Add value to existing business support activity whilst at the same time improving business survival rates through • Fill gaps in provision targeted business support measures is an essential element in delivering future • Ensure businesses are aware of the support economic growth. available and how to access it • Secure funds and develop local support programmes • Work with the Local Enterprise Partnership and other local partners to ensure appropriate local business support provision 27

In the Plan there are three key To help new companies through their Improving the capability of components of SME Business Support: formation phase proposals include: existing businesses Increasing the number and quality • Establishing an angel investor The Strategic Economic Plan of start-ups network and increasing the acknowledges that the majority of business start-ups (62%) fail to survive Building the local business stock is a availability of investor readiness 10 years. The survival rate after 3 years cornerstone of the LEP’s approach, support OPPORTUNITIES is better, 62% in the West of England with the main focus on the high- • The establishment of flexible compared with 60% nationally and in Working with the Local Enterprise performing minority of start-ups which workspace and “landing pads”. B&NES the rate is higher at 64%. Partnership they will seek to identify, support and In its Strategic Economic Plan the LEP persuade to grow in this area. • Creating outward looking networks Evidence indicates that businesses that connect companies to talent and that access support and advice sets out the ‘levers of growth’ that will Support will be linked with the Set opportunities to meet customers, have a better chance of survival and be used to promote economic growth Squared Innovation Centres and partners and investors it is proposed to develop a ‘menu’ of in the sub-region. One of these levers with existing Starting a High Growth start-up and existing business support concerns small & medium size (SME) Business programmes. Encouraging companies to business support as follows: increase trade overseas services linked to a centralised clearing and brokerage service including: ‘SME Business Support – supporting The West of England is the strongest the 85% of businesses in the region that performing export area within the • Access to existing local business are the engine for growth in our area’ South West region and the LEP intends support. to increase the proportion of SME s • Alignment with Enterprise Zone/Areas who trade overseas. and existing business incubator / Building the local business stock is a Building on the well regarded South enterprise centres. West UKTI service it is proposed to • Interfaces with the SME Growth cornerstone of the LEP’s approach, use European and other public funds Fund, including business finance to broaden and deepen the support with the main focus on the high- schemes, banks, angel investors and available to first time exporters and to venture capital funds. performing minority of start-ups which those exporters wanting to try new and they will seek to identify, support and particularly emerging markets. There will again be an emphasis on persuade to grow in this area. high-growth potential key sector companies but sustainable jobs growth in any SME will not be ignored. 28 The Economic Strategy for Bath and North East Somerset (update 2014): Business Theme

LOCAL SUPPORT SERVICES FOR START-UP THE WEST OF ENGLAND AND NEWLY ESTABLISHED BUSINESSES GROWTH HUB Analysis of the business stock in in B&NES to 2% compared with 4% B&NES indicates that the area has an in the sub-region. There is strong The LEP proposes to deliver support To ensure that local businesses are above average number of small (less representation in the priority sectors services through an SME Growth Hub aware of and have access to the full than 10 employees) businesses. including tourism, creative and serving the West of England, which will range of business support will require information and communication. The large majority of these businesses become part of the national Growth the Council, working in partnership (80%+) are locally owned and Maintaining the existing locally Hub Network. The Growth Hub is with the Universities, Colleges, many are run by “sole proprietors”. accessed support services, funded through the government’s Local Chambers of Commerce, Federation Employment in locally owned currently commissioned by the Growth Deal and income from users It is of Small Business and other business businesses was responsible for Council for all local businesses intended to take a “no wrong front door” representation organisations to offsetting wider job losses in the area is therefore particularly approach to accessing the Hub using establish local access to the Growth during the recession, limiting the important in B&NES. a range of public and private sector Hub in B&NES. overall reduction in employment partners to promote “local” access. As a primary means of raising awareness, the existing Business Navigator website will be upgraded to include more effective information and diagnostic tools.

SME Growth Hub Helping SMEs Finding the the Pot of Gold at the End of the Rainbow

SME Finance Hub Innovation Hub SME Support Hub SME Skills Hub SME Export SME Supplier Procurement Hub Holistic approach to Build on existing Build on existing Develop targetted skills Support Hub Support Service Establish a Procurement SME Finance engaging strengths: SET Squared, strengths: Busiiness training to address Build on existing Establish a Supplier Hub to better target with the Growth Fund, Bath Innovation Centre, West, BRAVE, North specific skills gaps strengths: Business Support Service public and major private banks, angels, VCs & Engine Shed and others Somerset Enterprise West, UKTI, ERDF, EEN working closely with sector procurement SME Support Hub to support high tech/ Area and others to to deliver practical the new Procurement spend to stimulate high growth start ups provide base support services to assist SMEs Hub to support SMEs the local economy services to export including aspiring to bid for especially the region’s services to help “get the public, humanitarian and SMEs whilst also deal done” e.g. letter significant private sector delivering savings and of credit, Logistics, opportunities through efficiencies Incoterms etc. formal competitive tender processes 29 PLACE THEME

The geography and infrastructure of Bath & North East Somerset is as diverse as its business stock; with a range of issues and opportunities. 30 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

INTRODUCTION building a low carbon economy and delivering improved connectivity. The Place theme of the Economic Strategy By ensuring that these factors are supported seeks to articulate and support the contributions and addressed it will be possible to develop a of the City of Bath and the surrounding market sustainable economy for the whole of Bath & towns of Keynsham and the Somer Valley to North East Somerset that can provide a strong the local economy, recognises the key role that quality of life and high standards of living and housing plays in supporting economic growth working. and promotes the opportunities offered by

KEY PRIORITIES FOR ACTION

SUCCESSFUL VIBRANT SUSTAINABLE HOUSING CITY MARKET TOWNS CONNECTED COMMUNITIES 31

SUCCESSFUL CITY Bath is a World Heritage Site, an In contrast five local areas (Local Super international tourism destination and Output Area’s – LSOA’s) with in the city a regional shopping centre. The city fall within the top 20% most deprived has an enviable reputation for its quality areas in the country. of life and plays a crucial role in the It is critical to the future economic B&NES economy. It provides nearly well-being of the area that: 70% of the areas employment and economic output (GVA) and is home to over 50% of B&NES businesses. More importantly 75% of knowledge based and priority sector employment is based in the city. Bath will remain a visitor friendly city with an international reputation for world class heritage and as a centre for innovation, enterprise and high quality education 32 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

Employment in the visitor economy has increased by 3.2% over the last five years and is forecast to continue INTERNATIONAL to grow by circa 3,500 jobs. The focus should be on building a more VISITOR DESTINATION sustainable higher value added product which will benefit both Bath and the wider area. Currently there are over 5.6m visitors each year to the city but only 16% are staying visitors, who on ISSUES & CHALLENGES average spend five times more per Tourists currently spend £375m in Bath is recognised as a regional head than day visitors. the local economy, supporting 8,700 shopping destination. The city centre There is ongoing competition both local jobs and producing £162m GVA/ has over 700 retail units and in excess from the domestic and international annum into the local economy of Bath of 100,000sqm of retail floorspace markets and in order to respond to & N. E. Somerset. The bulk of the which is significantly more than would this, the visitor economy sector needs employment and economic output is normally be expected to serve a city of to work in partnership; to attract, focussed on Bath where it is integral to 89,000 people and is an indication of manage and develop a flourishing the city’s wider visitor economy. the strong inter-connection between and sustainable tourism and the retail and tourism sectors. In A strong visitor economy is key to leisure industry which contributes 2011 retail expenditure in the city was the status of Bath as an International to economic prosperity, enhances the estimated to be over £600m. visitor destination. It is central to the image of Bath and the surrounding continuing success of a broad and The city’s reputation as an international area and is in harmony with its unique diverse retail sector; it underpins visitor destination is also a driver for the environment. the city’s rich cultural offer and has cultural sector in Bath. The wider visitor a significant role to play in attracting economy, covering the tourism, leisure, broader investment. culture and retail sectors accounts for 15,500 jobs, 25% of total employment in the city, and generates £315m of GVA annually. 33

OPPORTUNITIES To deliver a successful and sustainable To maintain this relationship will require visitor economy on-going investment in continued support for a public/private the “place” and in place marketing will sector destination marketing organisation be required. and the development of an up to date Destination Management Plan Develop, manage and promote a providing a joined-up approach to Utilise the city’s World sustainable visitor economy destination marketing, place management Heritage Site, Cultural, Spa Raising productivity by addressing and events programming. seasonality issues, focussing on high and independent shopping value markets and prioritising staying Maintain and enhance the city credentials as key elements visitors, linked to improved use of centre as a regional retail, leisure, of the visitor destination offer information technology will help to develop cultural and sporting destination a more sustainable tourism sector. The quality of the city centre is a A refreshed and updated Bath is recognised as one of the premier key element in the visitor destination visitor destinations by Visit England and offer. Since its inception in 2010 the version of the existing co- Visit Britain. This provides opportunities Bath City Centre BID, working in ordinated Visitor Marketing to engage in national & international conjunction with the Council, has Strategy is required to maximise marketing initiatives and help shape brought private sector resources to bear strategic thinking with national agencies on the maintenance of a high quality the potential for development of and government. public realm and helped to shape the visitor economy. and manage the retail and hospitality product. The Strategy will ensure that The continuation of the BID beyond growing and high value markets 2015/16 would provide opportunities to continue to be targeted, include supplement resources and add value to the destination marketing strategy; the development of a year making an important contribution to round Festivals and Events maintaining an attractive city centre. programme and develop opportunities to spread the benefits of tourism to surrounding rural areas. 34 PlaceThe Economic Theme Strategy for Bath and North East Somerset (update 2014): Place Theme

CENTRE FOR ENTERPRISE AND INNOVATION

ISSUES & CHALLENGES Given the focus of priority sectors in A recent Centre for Cities report Bath it is unsurprising that growth highlighted the Bristol and Bath in employment in the knowledge region as “having an internationally economy in the city, which increased significant and fast growing high by 7% between 2009–2012, has tech cluster” and Set Squared, outstripped increases in the wider an innovation centre collaboration B&NES area (5%), the West of England between Bristol, Bath, Exeter, (4%) and nationally (2%). Southampton and Surrey Universities, has been named as Europe’s top Nearly 60% of employees in the city university Business Incubator in 2013 are in higher skilled jobs with over and 2014. 40% of residents possessing NVQ level4 or above qualifications compared The main constraint to further future with 36% in the sub-region and 30% growth in the city’s knowledge nationally. economy is the lack of appropriate business space of the right type and Bath’s two universities are key to the right quality. supply of highly qualified workers and are also a source for entrepreneurialism and local economic growth with several significant companies in the city having spun out of or benefitted from links with the Higher Education (H.E.) sector. 35

OPPORTUNITIES Investment in the implementation of Build on the city’s strengths in The Creative Hub & Sector Support the Bath City Riverside Enterprise innovation & research linked to Study suggested that over the longer Area is the key opportunity for the H.E. Sector term (2012-2030) there could a need the delivery of high value added The Bath University Innovation Centre for up to 20,000sqm of space for the knowledge driven growth in the city. at Carpenter House is part of the highly Creative & Digital sector, with a medium term need of 1,000–2,000sqm. New commercial and business regarded Set Squared Partnership. The feedback from businesses surveyed quarters developed in & on the edge It is at capacity and has a waiting list was that: of the city centre for desk space. There is an urgent need to expand the facilities to provide The lack of high quality modern expansion or ‘move-on’ opportunities officespace in Bath has been alongside the incubation space. There are high levels of self-employment, acknowledged, both in relation to the freelancing and new entrepreneurial ventures overall stock and the current supply. The Art and Design faculties at Bath The historic business quarters of Bath Spa University are also creating a need across the creative and digital sectors which are based largely on period office stock for creative workshop / studio space. is fuelling the demand for flexible workspace which is now less attractive for business Support the small business & occupation. Occupiers are seeking such as co-working and other ‘drop-in’ facilities. creative sectors through the new locations convenient for the city delivery of new workspace There are a number of successful instances of centre and public transport links and there is a need to create a new Central The city is under-provided with the co-location of creative and digital businesses Business District for the city. managed business space but operators have not been able to identify in Bath. However, there is recognition among The Bath Office Market Review any specific development opportunities. many more established firms that there is a lack report has highlighted the shortage of quality office space and identified There is also a need for “Landing of suitable workspace to facilitate such clustering Bath Quays, Manvers Street and Bath Pads”, small flexible business spaces on a greater scale, this in turn is constraining Western Riverside / Green Park as the which can accommodate newly re- opportunities for growth. key locations for the provision of new located or expanding small businesses supply. with tailored business support packages available. Improving the profile for the sector is paramount to its continued performance. This is central to the successful delivery of a hub which needs visibility to enhance perceptions of creative and digital activity in Bath. 36 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

CONNECTED CITY

ISSUES & CHALLENGES The city is home to nearly 89,000 Increasingly residents also require residents and 4,500 businesses access to broadband to enable employing 56,000 people. access to information and services and to facilitate flexible and home A recent survey of office occupiers working. However 7,400 city residents in the city centre found that the top live within the 20% most deprived local priority in relation to any office space areas (LSOA’s) in the country where it needs was access to broadband is less likely that they will have connectivity. This is particularly adequate broadband facilities. important for the city where over 14,200 people are employed in key Bath is well provided by fibre enabled sectors such as Information & telecoms cabinets but broadband Communications and Creative & speeds can be limited, depending on Digital where access to sufficient the physical distance to the cabinet, bandwidth is vital for ongoing business by the use of copper wire between However this limited service does not operations. the cabinet and the premises. always meet the needs of businesses who seek access to ultrafast 100Mb/ A further 16,000 people are employed Generally speaking the existing sec bandwidth which requires fibre in the education sector including the network offers a minimum of 2Mb/sec to be provided to the premises. This city’s two universities where again up 25Mb/sec classed as superfast can be achieved but can prove too high bandwidth is essential for research broadband. costly for small businesses. 82% of projects and the commercialisation businesses in the city employ less of research. than 10 people. 37

OPPORTUNITIES A strategic Digital B&NES response Wireless Connectivity in the is being developed to address the City Centre issues and challenges, to establish Bath Being able to access digital information as a Connected City and facilitate wirelessly across the whole of the digital access for businesses and city centre would be of benefit to residents in Bath. businesses, particularly those in the Ultra-fast Broadband in the retail and tourism sectors, and to Enterprise Area & City Centre residents seeking information on goods and services. Working with a commercial provider we will seek to make the Bath City The network of publically owned street Riverside Enterprise Area a national furniture provides an opportunity to work exemplar project for the delivery of with a commercial provider to utilise Promoting Access for the ultra-fast broadband utilising B&NES selected furniture to deliver a wireless Digitally Excluded Council’s extensive network of ducts network across the city centre. This Recycling redundant PCs to families across the city. In conjunction with the would then provide a base for the in deprived wards in the city to facilitate Local Enterprise Partnership we will development of a multi-platform their digital connectivity will enable seek to develop a “voucher” system to information system available to them to better utilise the increasing encourage SME’s to connect to residents, visitors and businesses in Bath. amount of on-line information and broadband services. Terabit West access the range of goods and Terabit West is a project to deliver a services available in the city . high capacity closed broadband Connecting New Development network which can be used for Working with the WofE LEP we will research and product development. research “best practice” in using the Connecting the Bath City Riverside planning system to ensure new Enterprise Area into the Terabit West development sites in the sub-region’s network would enable high-tech Enterprise Zone and Enterprise Areas companies to innovate and are fibre enabled. commercialise new ideas with less risk. 38 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

VIBRANT MARKET TOWNS

Whilst Bath is the economic driver The Somer Valley by comparison has for the B&NES area, the market managed to recover from the earlier towns of Keynsham and the Somer factory closures. Overall employment Valley area provide two-thirds of the has increased by nearly 4% and there employment outside the city with a has been a 16% increase in key sector total of 16,600 jobs, just over 20% employment focussed on the health & of the total jobs in B&NES. wellbeing and tourism, leisure & culture sectors. However the area remains The market town areas also provide heavily reliant on manufacturing which nearly 20% of the area’s GVA accounts for 20% of total employment output and 24% of the total stock of compared with just 5% overall in businesses, although only 14% are in B&NES. the priority business sectors. They are home to 28% of the area’s population; The recovery in the Somer Valley is an indication that both areas suffer largely as a result of the availability from high levels of out–commuting and development of employment land which is in excess of 60%. at Westfield Industrial Estate and the Bath Business Park at Peasedown St This situation has been exacerbated John. Both these employment sites by major factory closures including are now almost fully built out and with Cadbury in Keynsham and Polestar, vacancy rates for employment space Alcan and Welton Bibby Baron in the at 3% or below across N.E. Somerset. Somer Valley. Keynsham has been There is an urgent need to bring particularly affected by the closure of forward new strategic employment Cadbury which has seen the town’s locations in the market towns to relatively small employment base enable future local economic growth. reduce by 11%.and a 5% reduction in the overall business stock and priority sector representation. 39

Midsomer Norton has three times the Market Town Connectivity number of retail units as neighbouring An overall co-ordinated approach to Radstock town centre and serves as traffic management, access and the market town for the Somer Valley parking in the town centres is central to area. Overall it has a similar amount of their continued vitality in order to reduce retail floorspace to Keynsham but to congestion, improve the environment date has provided a more diverse offer. and offer and ensure shoppers and The main issue is the lack of medium businesses can access a supply of sized and larger retail units, which is a competitively priced, conveniently constraint to attracting more national located car parking. retail operators, and the relative weakness of the food retail offer which Improved broadband connectivity leaves the town centre exposed to out both to surrounding rural communities of town food retail provision. and within the town centres will enhance access to and provision of information. Like Keynsham, MSN town centre ISSUES AND Keynsham has circa 150 retail units can be affected by traffic congestion Moving forward the Market Towns will CHALLENGES and 13,500sqm of retail space. The and previous retail assessments have be the location for up to 35% of the town has previously suffered from a suggested that, with retail units spread planned new housing in B&NES. It The Town Centres limited comparison and hospitality out along the High Street, there is a is important that this is balanced by local employment growth to assist As well as centres for employment, offer but this will potentially be need to create a new heart for the town in re-building the employment base the town centres of Keynsham, addressed following the strengthening focussing on the Streamside area and in Keynsham and diversifying the Midsomer Norton and Radstock of the food retail offer in the town the delivery of traffic management economy in the Somer Valley. Between act as local service centres for and B&NES Council’s investment in measures linked to high quality public 3,500 and 4,000 new local jobs will be the immediate population and the redevelopment of The Centre realm. required by 2030 to ensure that: surrounding rural areas, offering a Keynsham which will provide new range of retail, leisure and sporting office space, civic facilities and facilities. In this role the town centres additional larger units for food and also make an important contribution comparison retail space. The Market Towns will retain to local employment. The Centre redevelopment will also deliver public realm and traffic their role as sustainable local management improvements as part of an overall emerging strategy service and employment for improving the environment and reducing traffic impacts which continue centres for their local to adversely affect the town centre. population and rural hinterland 40 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

OPPORTUNITIES

There are identified employment Revitalising the town centres sites, development opportunities An overall strategic approach to and programmes of work which if public realm improvements and traffic progressed can address the issues and management is required in both town challenges facing the market towns. centres to improve their attractiveness Bringing forward new strategic and reduce congestion. employment locations In Keynsham the potential future In Keynsham the redevelopment of the redevelopment of the Riverside and Fire Somerdale site includes the provision Station sites, including the re-provision of 12,000sqm of new office space of the Leisure Centre, will need to and at World’s End Lane 6ha of land contribute to local employment and is proposed for employment use. strengthen the town’s overall offer. Together these developments could In Midsomer Norton the development Improving connectivity deliver up to 2,000 new jobs. of the South Road car park site for In conjunction with the Connecting In the Somer Valley the expansion of food retail will bring local employment Devon & Somerset Partnership the roll the Midsomer Norton Business centre and reinforce the town’s overall retail out of superfast broadband to 100% together with the development of the offer. It also has the potential to act as of rural communities surrounding the former Polestar factory and the 13.5ha the catalyst for the redevelopment of market towns is being progressed with a employment land site at Old Mills could under-used and vacant buildings on the view to completion by 2020. bring forward up to 1,800 jobs. Streamside to provide a supply of larger The town centres’ roles as service and retail units and contribute to building a In Keynsham and the Somer Valley the employment centres will be supported by new “heart” for the town centre new employment sites have ownership the improved wireless connectivity which and infrastructure constraints which it is planned to deliver in conjunction with need to be addressed. a selected service provider. 41

However there are further The most commonly accepted Reducing energy use also helps SUSTAINABLE challenges, especially given the definition of a ‘green’ job is the local economy by putting more important role Bath plays in the one created within the range of money in local people’s pockets. CONNECTED economy of the wider area and the businesses included in the low Currently around £157m per year planned level of overall employment carbon environmental goods and leaves the area in the form of COMMUNITIES growth in the Enterprise Area: services sector (LCEGS). This energy bills; this is predicted to rise includes environmental remediation, by 18% by 2020. • There will be a need to further water supply, waste treatment, expand Park & Ride (P&R) Similarly, domestic food expenditure energy efficiency and low carbon facilities, including provision in the district is around £382m energy. LCEGs is the most ISSUES AND east of Bath, to address coach per year, the majority of which is productive priority sector in CHALLENGES parking provision and improve the spent in supermarkets and leaves B&NES, with an average GVA of connectivity between P&R sites the local area. By contrast, the Connected Communities £183,000/ job. and the city centre production of local food creates The provision of an affordable, low However, it is now becoming a local multiplier effect; around carbon, accessible, integrated and • The frequency of and accessibility more widely understood that £3 can be generated for the local reliable transport network which allows to rail services is limited leading to economic opportunities arising economy per £1 spent. Local people to get around is essential to congestion at peak times from the shift to a low carbon sustainably produced food is a support economic growth in B&NES. • The A36 and A4 routes in the and environmentally sustainable key component of the low carbon Investment through the £80m Greater city and along the corridor to economy exist for many other economy, buffering against climate Bristol Bus Network programme and Bristol suffer from congestion at business and commercial activities, change impacts and disruptions in the Better Bus Area 2013 funding has major intersections Sustainable such as engineering companies global food supply and improving improved public transport services Communities supplying components for economic opportunities for local between the cities and market towns offshore wind. In addition, existing food and farming businesses. The transition to a sustainable in the WofE. In addition the Local businesses of all types need to plan economy will bring economic Think Local Sustainable Transport Fund and the to meet the increasing challenges benefits as well as helping meet the Cycle Ambition Fund have provided of rising resource and energy costs Our strategy for procurement is aim of reducing district wide carbon residents and businesses with and climatic disruption. ‘Think Local’. By helping to develop emissions by 45% by 2026. sustainable transport options. the local economy we can make Greening these businesses will significant improvements to the In Bath, the £27m Bath Transport in turn increase demand for the economic, environmental and social Package, due for completion in 2015, products and services of the wellbeing of the communities we is delivering investment into the city’s LCEGS and the growth of serve. Our carbon footprint will be transport infrastructure to support ‘green’ jobs. reduced and we will be supporting employment growth in the Bath City our own small and medium Riverside Enterprise Area. enterprises. 42 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

OPPORTUNITIES The development of Sustainable Further investment in road based Connected Communities has four key transportation, potentially through the components: sub-regional City Deal, will facilitate the next phase of P&R provision, the delivery 1. Accessibility to major employment of a new P&R east of Bath and the locations is improved allowing implementation of dedicated bus lanes businesses to draw from a wider along the A4 and A36 to speed access labour catchment area and residents into the city centre. to exercise sustainable transport options. City Deal funding, alongside developer contributions could enable Improvements to rail based travel will comprehensive improvements to provide employers with access to a Windsor Bridge and the Pinesway larger pool of skilled workers and help gyratory. Outside the city Pinch Point attract new business investment. transport funding can help to reduce The implementation of Metro West congestion at key points on the highway Promoting Sustainable Connected Phase 1 will allow additional train network, such as Hicks Gate. services to be provided between North 2. Existing businesses and residents Communities and developing a more Somerset, Bristol and Bath. are enabled to reduce their energy sustainable economy will mean that: Alongside Metro West, future investment and resource use and adapt to the Businesses and residents are in a possible new stations package, future climate: in particular Saltford and Corsham in Local businesses are supported to benefitting from improved connectivity, Wiltshire, could improve accessibility for reduce resource use and adapt to commuters and visitors. reducing their energy and waste climate change by signposting to costs, procuring more goods and The introduction of smart ticketing, assistance and resources available services locally and using more locally using the Sustainable Transport Fund through the LEP’s Growth Hub. and the electrification of the Great Existing and emerging policy frameworks produced food & energy. This increases Western main line will also enhance encourage high energy standards in new services and improve accessibility. the attractiveness of the area as an commercial buildings and the retrofitting employment location, creates work for of commercial buildings is supported local environmental businesses and through the LEP and sub-regional partners. Waste is used as a resource attracts new business investment. through a thriving LCEGs sector and an emerging “circular economy”. 43

The “Energy@Home” project Retaining economic activity in the local encourages residents to reduce their economy encourages the growth of the domestic energy consumption and LCEGS sector and the high value jobs it supports the retro-fitting on existing provides domestic properties. Innovative ways 4. Local food production and supply will be explored to ensure new buildings is increased, enhancing the local are built to a high standard of energy multiplier effect, creating income performance. & job growth and improving the 3. Sustainable businesses and quality of life and cultural offer the Low Carbon & Environmental Local businesses are encouraged and Goods & Services (LCEGS) sector supported to purchase and sell more are supported to grow local food. Through the Local Enterprise Energy retrofitting for existing Partnership Growth Hub and targeted buildings supports local providers local advice and guidance, new and builds local supply chains. Jobs businesses are supported to process within local businesses are created and distribute food locally. An increase and safeguarded by the increase in in local food trade generates income retrofitting. growth and safeguards local jobs in food processing and distribution. Local renewable energy projects are implemented using social and community enterprise models which retain revenue and jobs in the local area. 44 The Economic Strategy for Bath and North East Somerset (update 2014): Place Theme

Listed and historic buildings are an asset but can be problematic and costly to improve. The district housing HOUSING stock is older than the national average. One in three (28%) private sector properties was built more than 100 years ago and a quarter of housing ISSUES AND in the private rented sector fails to CHALLENGES meet minimum expected standards. It is estimated that preventing ill health Bath and North East Somerset is a caused by poor housing conditions desirable place to live and demand such as cold, damp, house fire or for housing is projected to increase. accidental falls could save local health Housing development has been services £5m each year and as the constrained by the economic situation older population increases this situation and restricted land supply. The housing could get worse. shortage pushes up prices and rents making affordability more challenging Most residents enjoy good health for people on low or middle incomes. and a good standard of living Home ownership has decreased and but in the more deprived areas, house prices are higher than the South communities experience high rates of West and national averages. unemployment, ill health, low income and difficulty accessing housing. Social rented housing is still the most These issues can lead to a high risk of affordable tenure and demand is high becoming homeless and leaving home, across the district. One in three (32%) tenancy termination and violence households lives in social or private are the most common triggers. The local housing market rented housing. The private rented Homelessness can be prevented by sector has grown significantly in timely advice and intervention and is balanced and integrates the last 10 years via conversions of the provision of suitable alternative owner occupied housing and housing housing. There are fewer households a choice of high quality benefit claims for private rents have in temporary accommodation than in increased. There are more houses in neighbouring local authorities. multiple occupation than the national homes including affordable average and the increase has changed The above issues need to be the character of neighbourhoods, addressed in a co-ordinated way to try homes in thriving vibrant, notably in the city. and ensure that in the future: sustainable communities. 45

What needs to happen: Improve existing homes Preventing homelessness and A choice of high quality homes requires tackling the main causes of • facilitating the delivery improvements to the existing housing homelessness of new homes including stock. Improved homes will help Building and improving homes will businesses attract and retain the staff help to ensure that everyone is better affordable homes; they need enabling economic growth housed. The Council runs Homesearch and the creation of local employment to enable the best use of affordable • making the best use opportunities. Providing a good range of housing for those in housing need and of available land housing for people that want to live and works in partnership with landlords and work in B&NES will require partnership the voluntary and community sector to supply and funding working to : provide financial support and advice to opportunities; facilitate access to housing in order to: OPPORTUNITIES • Enable financial assistance to Build more new homes • supporting mixed vulnerable owner occupiers for home • Continue to prevent homelessness A balanced housing market requires improvements and protect vulnerable homeless tenure developments people an increased supply of new homes. • Enforce minimum standards in rented New homes must be built in the right of new market and housing and offer guidance • Support the Homelessness place and be the right specification affordable housing Partnership to help homeless people • Support adaptations and better to meet changing housing needs. For options including into meaningful employment. every £1 spent on housing £2.41 is energy efficiency generated in the wider community. specialist and • Contribute to public services Developing new homes will create supported housing; partnerships that tackle the main employment, provide homes for causes of homelessness people that want to live and work in • helping residents to B&NES and have a positive impact on the economic growth of the area. thrive by incorporating good community infrastructure on new housing developments; • commissioning adaptable and sustainable homes for independent living. 46 The Economic Strategy for Bath and North East Somerset (update 2014): People Theme PEOPLE THEME

B&NES will have an economy with sufficient quality, sustainable jobs at all levels and local residents have the skills to enable them to progress through the labour market and earn incomes, which will enable them to achieve their economic potential and competitiveness. 47

INTRODUCTION Further to this if the outcome of the B&NES Health and Wellbeing strategy to… The residents and work force of B&NES play “Reduce Health inequality and improve health a crucial role in enabling our growth aims and & wellbeing in Bath & North East Somerset by objectives. So far the Strategy has set out helping people to stay healthy, improving the how we intend to support the development of quality of people’s lives and creating fairer life the local economy and infrastructure, but it is chances.” also necessary to ensure that every resident is supported in achieving a healthy and sustainable …is to be achieved then support must be working life. given not only to encourage business and employment growth, but also the issue of To deliver the aim of the People theme, there worklessness and its impact on health and needs to be a concerted effort in engaging all wellbeing needs to be addressed. members of the community to ensure that a reasonable level of equity and issues of health & wellbeing are addressed.

2 KEY STRATEGIC PRIORITIES EMPLOYMENT LEISURE AND AND SKILLS CULTURE 48 The Economic Strategy for Bath and North East Somerset (update 2014): People Theme

EMPLOYMENT AND SKILLS

ISSUES AND CHALLENGES Bath and North East However there are still issues to be addressed. The B&NES labour market Somerset has managed grew by 5.1% between 2001 and 2011 to weather the storm of compared to the higher growth of the respective working age populations of the economic crisis of the West of England (9.5% growth) and 2008 and the subsequent England (8.3% growth). recession. Unemployment Residents in B&NES in 2013 earned has remained below £411.50 per week (gross) compared to £420.30 across the West of England the national average and £421.60 nationally, which is and standards of living especially concerning when contrasted compared to the rest of the with house prices being over 40% higher than the national average. country are relatively high. Also there are unacceptable levels of deprivation in B&NES, with 20% of families not earning a living wage and 67% of people at risk of eviction from their homes being in work. 49

Unemployment rates The low rates of unemployment in B&NES are not an initial area of concern, however when the age of claimants and duration of claims is explored a number of issues arise. Skills Worklessness Just under one quarter (23.0%) of In relation to skills, B&NES Closely related to low skills levels, claimants are classified as ‘youth outperforms the West of England worklessness is often characterised unemployed’ - aged 18 to 24. Broadly sub-region and England, with 36% of by multiple disadvantage. Some similar rates are found across the West residents having NVQ4+ qualifications, individuals face a number of barriers to of England, but B&NES has seen a compared to 33.4% across the West participation in the labour market and 3.8% rise in youth unemployed as a of England and 29.8% nationally. are at a higher risk of being workless. percentage of its claimants compared to a 3.8% fall across the West of Similarly, just 9.7% of B&NES’ If people are to be helped to improve England and a 9.4% fall in the share residents have no qualifications their employment prospects, then nationally. compared to 11.7% across the West they need services which provide a of England and 14.8% nationally seamless journey into sustainable Analysis of the share of claimants who across England. employment. have been claiming for more than12 months shows that the share is lower A total of 57.1% of B&NES employees For employers there is a need to in B&NES than across the West of in employment are in ‘higher skilled improve the understanding of Universal England and nationally, but that it has occupations’ compared to 54.4% Credit provision and ensure their risen at a comparatively higher rate in the West of England and 52.5% workforce requirements are reflected than across the benchmark areas; nationally in the training and skills opportunities, 24.6% of B&NES’ claimants have been and in-work support services that are unemployed for more than 12 months offered. compared to 26.2% across the LEP area and 29.6% nationally, however, this share grew by 164.2% across B&NES compared to 147.5% growth across the West of England and 93.5% growth across England 50 The Economic Strategy for Bath and North East Somerset (update 2014): People Theme

Employment Sectors the higher share of part-time jobs People and their skills are a major Employment in B&NES has a much as a proportion of all jobs. Between factor in achieving local economic higher proportion of public sector 2003 and 2013 workplace earnings in jobs than found across either B&NES grew by just 4.7% compared growth, and are therefore also a of the benchmark areas and a to 17.9% across the West of England major determinant of the future much smaller proportion of private and 23.7% nationally. A key driver of prosperity, resilience and wellbeing sector employment; just 63.8% of this lower growth is likely to include employment in B&NES workplaces is in the rise of part-time employment in of the local area. the private sector compared to 64.6% B&NES. The Employment & Skills Plan for across the West of England and 67.4% In order for B&NES to survive and nationally. prosper into the future, the local B&NES seeks to meet the needs of This is a relatively serious competitive economy must at least achieve a local residents and support areas issue, likely to drive down B&NES’ GVA level of private sector economic of strength in the labour market to per worker (as public sector GVA per growth which will enable it to support worker is generally much lower than a its population. In addition issues of help fulfil the economic growth aims private sector equivalent). worklessness and in work poverty of the B&NES Economic Strategy. and the resulting effects on health and The local area needs to maintain Growth in self-employment in wellbeing need to be addressed with a B&NES between 2001 and 2011, at focus on enabling residents to improve and increase its levels of economic 14.2%, was impressive but lagged their financial and employment mobility. growth at a time when even more considerably behind the West of Skilled workers are more readily England and national growth; self- employed, and once at work are more local jobs are needed as a result of employment grew by 23.2% across productive with the capability to take the raising of the participation age the West of England and by 25.6% on sophisticated tasks. nationally between 2001 and 2011. (RPA) for young people, the raising Key drivers of B&NES’ lower earnings of the state retirement age and include the higher share of workplace employment in the public sector and changes to the welfare system. 51

OPPORTUNITIES There are three key Young People (18–24) & Prevention Tackling Unemployment of Low Skills and Worklessness Unemployment and worklessness in strategic areas for action; The evidence shows that youth B&NES is of a comparatively low level, Social Mobility, Business unemployment has risen in B&NES, however in ensuring the economic and Growth and increasing the contrary to the experience generally social sustainability of the present and across the country and whilst the future labour market this issue still needs Each group has complex Return on Investment overall number of claimants is now to be addressed. needs but there are some reducing, the level of long term and local benefits accruing There are a number of groups of people claimants has remained the same. generic areas of support who require specialist interventions in from new developments A range of measures need to be used that will benefit these B&NES including: in the area. to counter this worrying trend: residents, which include: • Those not in education, Social Mobility • Providing information employment or training (NEET) & To help tackle the issues of advice & guidance • tackling barriers to work Younger Claimants unemployment and in work poverty • Delivering employability within B&NES, a range of interventions • Young People Leaving Care (16-21) • improving basic skills & vocational skills are required to meet a range of and employability • Older long term unemployed needs. If future issues with in the • Encouraging work labour market are to be avoided, experience in Secondary • Those suffering from physical and • encouraging local interventions aimed at the prevention and Further Education mental health issues recruitment of unemployment and low skills should • Increasing residents participation • Lone Parents also be developed. and development in FE/HE • Young People aged 16–19 opportunities Successful interventions will be • Promoting entrepreneurship dependent on close joint working and self-employment • promoting between a range of organisations, agencies and partners. Central to apprenticeships this will be coordinating priorities and actions with DWP, Council • raising educational Services, Third Sector organisations attainment/ workforce and worklessness support providers development locally. 52 The Economic Strategy for Bath and North East Somerset (update 2014): People Theme

Engagement with the Local Enterprise Partnership will be essential in delivering the area’s aspirations on BUSINESS business growth & employment. The LEP Strategic Economic Plan GROWTH recognises People and Skills as one of the levers for growth. We will develop a well-motivated, To ensure that the B&NES economy Support for new business start- educated workforce with the grows sufficiently to support the ups, the development of social right skills to meet local business local population and deliver a range enterprises and delivering new needs. of employment that can meet the business investment into the area needs of the labour market, it is will be important elements in this. Business-led skills development necessary to ensure that businesses There is also a need to engage more will address the current and have the opportunity to increase businesses in training and skills future skills needs of business their productivity through well skilled development through: whilst meeting our aspirations employees. for growth, sustainability and inclusion. All education and UK Commission for Employment • Focussing on training activity will have line & Skills labour market forecasts employment and of sight to employment. suggest that by 2022 nearly half of all employment will be for skilled roles. training development Utilising funding from the Managerial, professional and associate in the Core Sectors government’s Local Growth professional occupations are projected Fund there will be investment in to grow three times faster than the • Improving the links the Employability Chartermark, average for UK employment as a between businesses which brings business and whole. education together. and education There is also a need to maximise the The West of England Skills Plan sets support available to people wishing to • Improving graduate out the People & Skills objectives start their own business, which will if that will be delivered and promotes successful help to provide a diverse retention levels a co-ordinated approach to Labour labour market. Market Intelligence which will help to • Support to promote inform B&NES priorities and actions. employment growth in the Key Sectors 53

A LOCAL RETURN ON INVESTMENT

In its role as a planning and regulatory To date TR&T provisions have been authority B&NES Council can play a incorporated into developments strong influencing role in the wider at BWR, Polestar Paulton and business community and provide direct Somerdale Keynsham and included support for a range of projects and in the procurement process for the programmes to address worklessness Keynsham Town Hall redevelopment, and improve employment prospects. Grand Parade Undercroft and Leisure Services contract. In particular the Council can ensure that as the economy recovers and new developments come forward they contribute to local employment and training provision through: • Targeted Recruitment & Training (TR&T) outcomes embedded into S106 planning agreements • TR&T outcomes contributing to the social value toolkit within the “Think Local” procurement Strategy • Support for apprenticeships, traineeships and work experience placements 54 The Economic Strategy for Bath and North East Somerset (update 2014): People Theme

LEISURE AND CULTURE

ISSUES AND CHALLENGES However there are a number Leisure and culture help to make Bath It is estimated that 80% of B&NES of challenges to overcome: and North East Somerset a ‘beautifully residents engage in arts, cultural or inventive’ dynamic place, attracting sporting activity at least once a month • Over 70% of adults are residents to settle here to live and work and in 2013/14 over 500,000 people not active enough to benefit and drawing visitors from the UK and attended outdoor events. High profile abroad to experience the area. The leisure, sports and cultural events and their health: the health cost area is a unique tourist destination, attractions add to the national and of this inactivity is estimated combining a rich heritage experience international reputation of Bath and with a wholly contemporary range North East Somerset. at £3m annually of cultural and leisure attractions for Participation in physical and sporting • Local sports and cultural visitors and residents alike. activity and in culture and the arts is venues are in a poor condition The leisure and cultural sectors are acknowledged to be beneficial both to important parts of the wider visitor the individual and the wider community. and in need of investment economy which employ over 10,000 It can reduce social isolation; improve which hampers participation people across B&NES and activities personal health & wellbeing and such as sporting events and festivals build capacity and sustainability in • There is a lack of engagement create wider impact through ancillary communities. Having a healthier from specific communities spend by visitors on accommodation, workforce can also benefit local travel, food & drink and retail. businesses. in arts and cultural activity New businesses are attracted to • Many leisure and cultural locate to a place that offers a variety of culture and leisure opportunities for businesses are small and their employees. reliant on volunteer help 55

OPPORTUNITIES Widening participation Employer engagement There has historically been a lack of Improving employee health & well- Enabling investment in new facilities, engagement in leisure and culture being is likely to lead to improved developing a strategic approach activities from certain communities in productivity. More employers need to events and promoting employer B&NES. In its role as a commissioner to be encouraged to develop “Active engagement will address a number of services the Council can seek to Workplace” schemes. of the above issues. address this issue through targeting This approach is embedded in the activities and resources. Enabling investment Health & Wellbeing and “Fit for Life” Negotiations on the contract for the A Strategic Plan for Events Leisure strategies as follows: delivery of leisure services in B&NES The development of a co-ordinated provide the opportunity to secure year round calendar of events and investment in new leisure facilities and activities, including the attraction of deliver an increase in the numbers further major national events, would of local residents using local leisure provide a significant boost to the Helping people to stay healthy centres visitor economy and help to engage individuals and local communities. • Work with local employers to create Maintaining the area’s profile as a healthy, active workplaces which centre for major events and sport Tailored business support Attracting major events such as The Providing tailored advice and support improve the health of the working Tour of Britain Cycling Race and on issues such as business planning, age population. the Special Olympics, alongside procurement and contracting and the contribution of regular rugby employment and/or volunteering • Create opportunities for volunteering fixtures at the Recreation Ground issues as part of the delivery of a to successfully increase people’s have a beneficial effect on the area’s wider package of business support in economy. B&NES will assist the sector’s smallest physical activity and promote good The Tour of Britain Cycle Race will businesses. Small-scale cultural mental health and well-being as attract an estimated 250,000 visitors organisations in particular can benefit well as increasing the potential for to the area and Bath Rugby generates from this type of targeted support. £25m into the local economy on an employment annual basis. 56 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 APPENDIX 1

ECONOMIC STRATEGY REVIEW: ACTION PLAN 2014–2020 57

Economic Strategy Theme Rationale Action Output Outcome Lead BUSINESS

PROMOTING APPROPRIATE BUSINESS GROWTH AND INVESTMENT

1. Ensure opportunities Workplace and resident Resource our continued engagement Investment secured in New development sites Council from being part of a employment growth in the with and influence on the West of enabling infrastructure for key brought forward in the Bath Support: successful WofE has outperformed the England Local Enterprise Partnership development projects and City Riverside E.A. LEP West of England economy national economy skills initiatives Liaise with Wiltshire & Somerset to Increasing numbers of BPA are maximised ensure cross boundary co-ordination Target 15% of LEP funds businesses are attracted on economic issues to Bath and North East Labour market issues Somerset addressed

2. Promote B&NES as a To achieve our Growth Agree our economic story and vision Increasing numbers of More modern office space IBB location for inward Ambition will require 15,600 as the basis of demonstrating our business are attracted to is built Support: investment to assist gross new jobs to be created Competitive Identity the area An increase in the number Council in achieving future by 2030 Establish a marketing brand for the Target 1,500 new jobs of higher-waged, higher BPA employment growth Bath City Riverside E.A. by 2020 skilled knowledge‟based jobs targets available locally Develop specific investment propositions as the basis for proactive engagement with the IB&B team

3. Facilitate the growth 32% of employment in Establish a relationship with key Proactive business Business support policies Council of key knowledge-based B&NES is in the knowledge companies in the knowledge economy engagement programme are informed and help Support: sectors locally economy to understand their issues businesses in these key 500 companies actively LEP & key partners and priorities sectors develop and engaged by 2020 offer more employment Maintain and develop key sector opportunities business networks and strengthen links with the H.E. sector Business relocations are prevented Actively promote business development services to key sector companies. 58 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 | Business

Economic Strategy Theme Rationale Action Output Outcome Lead

PROVIDING A COMPREHENSIVE BUSINESS SUPPORT SERVICE FOR SMEs

4. Maintain the delivery 3 year business survival rate Ensure the ongoing funding & delivery New and established Businesses are supported, Council of local commissioned in B&NES is 64% compared of the Business Support Service Level businesses receiving support business survival rates are Support: business support services with 60% nationally Agreement improved and jobs are better New business starts LEP and providers to new and existing protected locally companies in B&NES 600+ businesses receiving support 150 new business starts

5. Facilitate access to B&NES has above average Work with the LEP SME Support Local access to the Growth Tailored support for LEP high growth and specialist representation and growth Group, Business West and private Hub is available in B&NES businesses in the Key Support: support services for in the Knowledge Economy sector partners to ensure referrals and 500 businesses receiving Sectors and the Knowledge Business West B&NES businesses sectors local access support Economy Council 200 additional jobs created Bath University

DELIVERING A SUPPLY OF BUSINESS SPACE THAT MEETS LOCAL BUSINESS GROWTH NEEDS

6. Ensure the business Only 12% of the office space Maintain up to date data on business Better data and more Conversion rate on property Council space needs of local in Bath is grade A and the space demand, supply and take-up efficient & effective handling enquiries improved Support: companies are addressed vacancy rate for industrial of investment enquiries Increased numbers of jobs Commercial agents property is less than 3% Annual report on locations, created and/or protected vacancy rates, rents and yields

7. Reaffirm the working To achieve our Growth Establish the Bath and North East A strong coherent business Business better informed Initiative relationship between the Ambition will require 16,900 Somerset Economic Partnership as voice feeding into the on WofE and adjoining area Support: Council and the business gross new jobs to be created the owners and sponsors of the West of England LEP and issues and able to advocate Council community by 2030 Economic Strategy Government and influencing for the area HE sector adjoining areas such as B&NES features strongly FSB Somerset & Wiltshire in all the West of England LEP work 59

Economic Strategy Theme Rationale Action Output Outcome Lead PLACE

SUCCESSFUL CITY

8. Maintain Bath’s role The city attracts over 5.6m Continue to support a public / private Destination Management Ability to attract funds from BTP as a successful and visitors per annum spending sector Destination Management Plan national organisations Support: sustainable international £374m Organisation Visitor Marketing Strategy Increased private sector Council visitor destination Develop an up to date Destination sponsorship Businesses Hotel Investment Action Plan Management Plan 10% increase in staying Research and prepare a revised visitors Visitor Marketing Strategy 15% increase in visitor spend.

9. Ensure Bath city centre The wider visitor economy Establish a new New Bath BID contract Value of overall Visitor Council remains a regional retail, supports 15,500 jobs and Economy increased by 10% Creative & Cultural Bath organisation Sawclose leisure quarter Support: leisure, cultural and generates £315m GVA development At least one major event BID sporting destination annually Support the continuation of the delivered per annum BTP Bath BID and ongoing investment New Stadium Council in the public realm 20% increase in visitors to Creative & Cultural Plan & CCB events Promote investment in new leisure Events Strategy facilities Within the central area of the city, enable the development of a sporting, cultural and leisure stadium and a new cultural/ performing arts venue Develop a Creative & Cultural Strategic Plan including an Events Strategy setting out a year round programme of events and festivals 10. Maintain the city’s role Bath provides 70% of the Complete and publish a Masterplan New commercial quarters New grade A office space Council as the major employment areas employment and GVA and Delivery Plan for the Bath City developed in and on the developed Support: centre and economic output and is home to 50% Riverside Enterprise Area edge of the city centre By 2020 1,700 jobs and LEP driver for the B&NES area of the areas businesses Business plans developed for enabling New Central Business 1,000 new homes created BPA infrastructure for Innovation Quay and District created Bath Western Riverside LEP EDF capital infrastructure funding secured to enable key sites 60 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 | Place

Economic Strategy Theme Rationale Action Output Outcome Lead

11. Develop Bath’s role 75% of knowledge In conjunction with Bath University Significantly expanded By 2020: H.E sector as a centre for Enterprise, based and priority sector facilitate the expansion of the Set innovation facilities with 2,000sqm of additional Support: Innovation & the employment is based in Squared Innovation Centre at linked incubation space creative space supporting up Council Knowledge Economy the city Carpenter House “Landing Pad” facilities to 250 jobs LEP Promote the development of additional established in city centre operators 1,500 jobs delivered by incubation space for newly relocated or New Creative Hub company creation and expanding small businesses established expansion through the Work with developers and operators to Innovation Centre bring forward a new Creative Hub

12. Ensure businesses Access to broadband Implement Digital B&NES initiatives in CD&S role out completed in Broadband services delivered Council and residents have access identified as the top Bath B&NES by 2016 to ‘not spots’ in Bath Support: to appropriate broadband priority for businesses Establish the Bath City Riverside Ultrafast 100Mbs+ More business investment CD&S and digital services E.A. as a national exemplar ultra-fast broadband delivered to key attracted providers broadband project sites in Bath city centre and Improved accessibility to and the Enterprise Area attractiveness of city centres Wireless connectivity enabled in Bath City Centre Bath City Riverside E.A. connected to Terrabit West high capacity broadband network 61

Economic Strategy Theme Rationale Action Output Outcome Lead

VIBRANT MARKET TOWNS

13. Ensure the Market The market towns provide Facilitate the development of new 12,000sqm of employment Potential for up to 3,500 Council Towns retain their role as two thirds of the employment strategic employment locations space brought forward at gross new jobs by 2030 Support: sustainable local service in B&NES outside the city Somerdale Keynsham Prepare a Workspace Strategy for Up to 3,000 new homes by local partners and employment centres Keynsham and the Somer Valley Masterplans agreed for 2020 allocated employment land at Prepare Action Plans for Keynsham 95% of rural properties have Old Mills Paulton and World’s and Midsomer Norton Town Centres access to a minimum 2Mbs End Lane Keynsham including a strategy for attracting new broadband business investment. Appropriate mix for new employment space Deliver the agreed regeneration scheme established for Radstock Centre Development proposals Promote the development of key brought forward for the Fire housing sites Station & Riverside sites in Work with the Chamber of Commerce Keynsham and South Road and local traders in the Somer Valley and Business Centre MSN on the development of business to Radstock Railway Land business initiatives scheme completed Implement Digital B&NES initiatives in Somer Valley EXPO and the market towns & surrounding rural online initiative. areas CD&S programme rollout completed in B&NES by 2017 Wireless connectivity enabled in Market Town centres 62 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 | Place

Economic Strategy Theme Rationale Action Output Outcome Lead

SUSTAINABLE CONNECTED COMMUNITIES

14. Improve transport Congestion costs businesses Support the delivery of the Metro West Rail service improved on the Up to 2,500 jobs enabled Council connectivity within £100m+ per annum rail based project Bristol / Keynsham / Bath by 2020 Support: and between major corridor Secure LEP / DfT funding for key LEP employment centres transport infrastructure to serve the Bath Key development sites DfT City Riverside E.A. enabled in the Bath City Riverside Enterprise Area Improve public transport links between Bath and the market towns Town centre development sites enabled Develop proposals for comprehensive traffic management schemes in Keynsham & Midsomer Norton town centres

15. Promote Sustainable Energy costs result in £157m Provide resource efficiency information, Increase in the number of Local employment ESP Communities and of lost expenditure to the advice and guidance to local businesses businesses reducing energy safeguarded Support: the development of a through the LEP Growth Hub costs and recycling waste local economy annually. Reduction in domestic Council Sustainable Economy Implement the Energy@Home project Target of 2,000 homes energy costs Energy costs are set to rise retrofitted by 2020 by 18% by 2020 Develop local supply chains in relation More expenditure retained in to retro-fitting of buildings, renewable Employment growth in the the local economy energy projects and waste recycling wider LCEGS priority sector Local Food Strategy produced More food produced, sold and purchased locally

16. Develop a “balanced” Average house prices 17x Produce a Housing Implementation Up to 6,800 new homes Significant increase in Council local housing market average earnings Strategy delivered by 2020 delivery of new market and Support: that integrates a choice affordable homes Work with developers and house builders Up to 1,900 affordable RP’s of high quality homes to bring forward new housing provision homes provided by 2020 Maximum of 25 households including affordable in temporary accommodation homes in thriving vibrant In conjunction with delivery partners 300 empty homes brought on a quarterly basis communities commission the provision of mixed tenure back into use affordable homes Number of households in Work with landlords to improve private temporary accommodation rented housing & bring empty homes controlled back into us Deliver an effective Homelessness Service 63

Economic Strategy Theme Rationale Action Output Outcome Lead PEOPLE

EMPLOYMENT & SKILLS - SOCIAL MOBILITY

17. Preventing low skills Reported issues of poor Ensure that there is an efficient & Secondary schools working An increase in the Council and worklessness in employability skills in School effective package of support provided jointly with the Council on a employability of school Support: young people and University graduates. by all secondary schools, covering: programme that can provide leavers and more informed Learning Partnership the necessary careers and career relevant education - Information Advice & Guidance LEP employability training to meet choices made. secondary schools - Employability & the needs of young people Increased take up of VCSO Vocational training and employers , including the vocational employment / LEP Employability Charter - Work Experience training opportunities. Mark. - Increasing participation - Entrepreneurship and self-employment

18. Young People Leaving On average 40% of looked Worklessness Programme team 35 Care Leavers per year Reduction in the number of Council Care 16-21 after children in B&NES providing whole Journey Pathway participating in accredited B&NES children leaving care are reported to be Not in Management to B&NES care leavers. learning and training and/ experiencing unemployment Education, Employment or or entering sustainable Virtual School increasing participation Increased independence of Training (NEET) employment. of B&NES Care Leavers in Further Care Leavers in managing Education and Higher Education. their Economic Wellbeing.

19. NEETS 4% of B&NES 18 – 24 Outreach, engagement, key worker and B&NES NEET population to Reduction in the number of Council year old not in education, employment support programme in be engaged into education, NEETS and long terms 18- Support: employment or training place, through the Youth Employment training or employment, with 24 year old benefit claimants. Council (NEET) Programme an overall 10% reduction in DWP those not engaged. Council Bristol City Council Learning Partnership

20. Young People with Issues of long term Engage private and public sector Employment and training Young people experiencing Council Physical & Mental Health worklessness for young to provide placements for relevant opportunities available for physical/ mental disability Support: Learning Difficulties & people with physical or individuals and Project Search young people with physical & able to enter and sustain Council Disabilities mental disability, and learning candidates linked to specialist support mental disability and learning employment. Project Search difficulties. difficulties. 64 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 | People

Economic Strategy Theme Rationale Action Output Outcome Lead

TACKLING UNEMPLOYMENT AND PRIORITY RESIDENTS GROUPS

21. Long term ESA Over 4% of working age Develop engagement and support 10% Increase in the numbers Reduction in the level of ESA DWP claimants & Older population claiming IB & programme to enable former IB and of ESA claimants and older claimants Support: Claimants ESA and approximately 60% existing ESA clients to enter into claimants progressing to Reduction in the level of 50+ Council claiming over 2 years. training and employment employment long term claimants Sirona VCSO

22.Young parents 16-19 & More single parents to Develop package of engagement and Increased numbers of Reduction in the level of DWP Lone parents 19+ enter labour market due to support to enable young parents & lone young and lone parents Lone Parent Income Support Support: Universal Credit change. parents to enter the labour market participating in learning and JSA claimants. Council & training and gaining VCSO employment

23. Business growth Social Enterprise Value of social enterprise Targeted social enterprise start up and Specific business support Increased social enterprise Council to the local community and support service and start up IAG skills and start up Support: wider economy set up of a small loans fund. LP Cool Ventures Bristol & B&NES social enterprise network

Growth of employment opportunities through Inward Investment

Low growth of new start Develop a soft landing skills and Information available for Increase in the number of Council indigenous business employment package, delivering inward investors on the inward investors engaging Support: recruitment and training services for local labour market and skills and employment LP inward investors in partnership with the soft landing packages packages and increases in DWP DWP, LEP and training providers. available. Including local residents employed LEP supported recruitment events through these opportunities and sector based work academies 65

Economic Strategy Theme Rationale Action Output Outcome Lead

24. Core Sectors Low productivity of B&NES Engage businesses and employees Increases in participation Increased competitiveness of Learning Partnership Job related Training/ work force to participate in work based learning of business and employees business and work force. Support: work based learning/ opportunities through a coordinated in work based learning Decrease in worklessness in LEP Recruitment support business visit and events programme. opportunities. priority residents Council Coordination of employment Promotion of employment opportunities especially in Health & opportunities to priority Wellbeing, Tourism/ Leisure and Retail residents Supported by at least one event per sector per year and ongoing business visit and engagement programme.

25. Improving links Reported issues in Develop network of business willing to Coordinated access to work More local business engaged Learning Partnership between business & employability skills of link with schools, FE & HE by working experience and employment with education provider Support: education young people and business with business support organisations opportunities. LEP struggling to recruit. including the FSB. B&NES Schools business support networks

26. Key Growth Sectors Need to generate 10,000 Promotion of sector based skills and Priority sectors benefiting Increased levels of Learning Partnership new jobs. employment activities through visit and from: employment growth Support: events programme. enhanced interactions with Council Promotion of employment opportunities FE/HE; sector support networks through sector support organisations. support through LEP skills teams; support in advertising employment opportunities; access to skills funding for their work force Supported by at least one event per sector per year and ongoing business visit and engagement programme. 66 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 1 | People

Economic Strategy Theme Rationale Action Output Outcome Lead

A LOCAL RETURN ON INVESTMENT

27. Securing a local Council as significant Ensure Targeted Recruitment & 10% increase in the number Reduced levels of Council Return on Investment employer, planning authority Training (TR&T) contribute to the social of apprenticeships, work unemployment in labour Support: and procurer of goods works value tool kit within the “Think Local” experience and training market deprived areas Learning Partnership and services procurement strategy. opportunities available and priority residents. through the procurement Include TR&T outcomes in Planning process Contributions Strategic Planning Document(SPD) Number of apprenticeships, work experience and training Support the recruitment of opportunities available on apprenticeships and provision of work development sites. experience, internships and work placements. Number of apprenticeships, work experience and training opportunities offered by the Council.

28. Developing Lack of engagement from Deliver a programme of investment in More local residents and Improved health & Council engagement in leisure & specific communities leisure facilities in B&NES workers participating in well-being for local residents Support: culture physical and cultural activity and workers Over 70% of adults not Develop a proposal for a new cultural/ Creative & Cultural Forum, active enough performing arts venue in Bath 20% increase in local sector networks residents attending events Maintain the area’s profile as a centre for major events and sport & promote More sustainable local leisure increased community engagement and cultural businesses through the development of a year round programme of events and festivals Work with local employers to promote engagement in “active workplace” schemes and volunteering programmes Provide tailored support to small business and VCS providers in the leisure and cultural sectors 67 APPENDIX 2

ECONOMIC STRATEGY REVIEW: ACTION PLAN 2014–2020 68 The Economic Strategy for Bath and North East Somerset (update 2014): Appendix 2

The Economic Strategy sets out a Annual progress reports will be made MEASURING number of strategic objectives for jobs, using the measures set out below priority sector employment, productivity SUCCESS and average earnings. Forecasts for these measures are set out above and progress will be monitored as part of STRATEGIC MEASURES future Strategy Reviews.

MEASURE BASELINE 2010 TARGET 2030 SOURCE ANNUAL MEASURES BUSINESS

Number of jobs in the 50,400 61,900 Oxford Economics MEASURE Priority Sectors 2010 - 2030 Average GVA per worker 39,000 66,000 Oxford Economics BUSINESS 2010 - 2030 Number of jobs in the Priority Sectors PLACE Number of businesses in B&NES Number of jobs in B&NES 88,800 100,300 Oxford Economics Number of businesses in Bath 2010 - 2030 Number of businesses in Keynsham Number of jobs in Bath 60,300 68,100 Oxford Economics Number of businesses in the Somer Valley 2010 - 2030 Average weekly workplace earnings Number of jobs in the 16,900 19,800 Oxford Economics Market Towns 2010 - 2030 PLACE Total employment in B&NES / Bath / Keynsham / Somer Valley PEOPLE Business floorspace delivered in the Enterprise Area Average annual income 27,000 41,000 Oxford Economics per employee 2010 - 2030 Business floorspace delivered in the Market Towns Number of jobs in the 44,300 53,700 Oxford Economics Average house price in B&NES Core Sectors 2010 - 2030 CO2 emissions across B&NES Number of jobs in the Environmental Services & Low Carbon sector

PEOPLE Overall unemployment rate Average weekly resident earnings Percentage of working age residents with NVQ4+ Percentage of working age residents with NVQ2+