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Home , City region, Liverpool City Region

Region Local Industrial Strategy:

Summary of Evidence Liverpool City Region is a growing economy . . .

GVA Growth 2007-2017 Liverpool City Region is a £32bn economy - measured £35,000 130 by Gross Value Added (GVA). In the last decade, we have added over £6bn to our economy, against the £30,000 125 backdrop of the deepest recession the UK has experienced since the Second World War. 120 £25,000 115 Our economy stagnated during the recession, while £20,000 others were shrinking, and it took longer for the full 110 impact to be felt in LCR. This means it has taken us £15,000 105 longer to recover, while other economies started to rebound as early as 2009, our recovery did not start £10,000 100 until 2013.

£5,000 95 We are now experiencing strong levels of growth, for £0 90 three of the last four years we have grown faster than the 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 national average, and between 2016 and 2017, our GVA £ millions Indexed growth (Right Hand Side) economy grew by more than 5%. Source: ONS

1 . . . but we have performance gaps to close

GVA per head (2010-2017) A delayed recovery has widened the gap between 28,000 LCR and the UK in terms of relative output, and UK 26,000 productivity. 24,000 North West 22,000 Our economy generates £20.4k of GVA for every LCR resident, 77% of the UK level. Since 2010, the gap has 20,000 Liverpool City Region increased from £4.5k to £6.7k per person. 18,000 2010 2011 2012 2013 2014 2015 2016 2017 Our productivity (GVA per filled job) tracks much closer GVA per filled job (2010-2017) to national levels, and is 89% of the UK level. Despite 54,000 this, every filled job in the LCR produces £6k less 52,000 UK output than the UK. 50,000 48,000 North West 46,000 44,000 Liverpool City 42,000 Region 40,000 2010 2011 2012 2013 2014 2015 2016 2017 Source: ONS

2 . . .and so, to close these gaps, we need to improve our performance against the five foundations

In October 2018, HM Government published a Policy Prospectus for Local Industrial Strategies to “build on unique local strengths to ensure every community, and the country, reaches their economic potential and creates high quality good jobs.”

Local Industrial Strategies should boost productivity and earning potential across local areas by focusing on the five foundations of productivity.

3 1 – People Our population is growing – but at a relatively slow rate . . .

1.5 million people live in the City Region, and our population has grown year-on-year since 2003. However, comparatively, we have experienced a slow rate of population growth, growing slower than any other LEP.

% Change in population by LEP (1997-2017)

30% 25% 20% 15% 10% 5% 0%

SolentDorset Humber Cumbria South East New Anglia LancashireTees ValleyNorth East The Marches Oxfordshire Hertfordshire Enterprise M3 Black Country Coast to Capital Gloucestershire Worcestershire West of City Region South East Midlands Greater Lincolnshire Greater ManchesterSheffield City Region Liverpool City Region Swindon and Wiltshire Thames ValleyHeart Berkshire of the South West Cornwall and Isles of Scilly and Leicester and Leicestershire Coventry and Warwickshire , Derby,North YorkshireDerbyshire, and … East… Greater Cambridge and Greater… Buckinghamshire Thames Valley Greater and Solihull Stoke-on-Trent and Staffordshire Source: Mid Year Population Estimates

5 … and we have a number of ageing communities

Dependency Ratio (2017) At the City Region level, the ageing population is less prominent than for other areas of the UK. However, 0.70 0.68 this masks the prevalence of the ageing society in 0.66 other areas of the City Region, particularly Sefton and 0.64 Wirral. 0.62 0.60 In both of these areas, the dependency ratio is also 0.58 considerably higher than the UK level, reflective of the 0.56 high proportion of residents age 65+ and smaller 0.54 Working Age Populations. In these areas, the Working 0.52 Age Population face a greater burden in supporting 0.50 the ageing and youth population. 0.48 0.46 0.44 Halton Knowsley Liverpool Sefton St. Helens Wirral Dependency Ratio UK Level

Source: Mid Year Population Estimates

6 Overall, our Working Age Population is growing. . .

We have a Working Age Population of 977k which has grown (with fluctuations) over the last 30 years. Liverpool City Region Working Age Population (1997-2017) 990

980 Thousands 970

960

950

940

930

920

910 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Mid Year Population Estimates

7 . . . And the WAP is becoming more skilled. . .

Our skills profile is improving. Since 2004, the proportion of highly skilled residents has increased, at the same time, the proportion of residents with no qualifications has fallen.

Change in qualification levels (2004-2018)

35% 33%

30%

25% 24% 19% 19% 20% 18% 16% 15% 15% 15% 10% 11% 10%

5%

0% % with NVQ4+ - aged 16-64 % with NVQ3 only - aged 16-64 % with NVQ2 only - aged 16-64 % with NVQ1 only - aged 16-64 % with no qualifications (NVQ) - aged 16-64 Jan 2004-Dec 2004 Jan 2018-Dec 2018 Source: Annual Population Survey

8 . . . But we need more highly skilled workers

While our skills profile is improving, comparatively, we have a low proportion of highly skilled workers (NVQ4+), and a high proportion of residents with no qualifications. A highly skilled population is a key component of a competitive, productive economy. Qualification levels of the Working Age Population (2018) 45%

40%

35%

30%

25%

20%

15%

10%

5%

0% % with NVQ4+ - aged 16-64 % with NVQ3 only - aged 16-64 % with NVQ2 only - aged 16-64 % with NVQ1 only - aged 16-64 % with no qualifications (NVQ) - aged 16-64

Source: Annual Population Survey LCR North West UK

9 Our employment rate is growing. . .

Employment Rate (2004 -2018) Each year a growing number of our residents are 76% employed, with significant growth in our employment 74% 72% rate from 2014 onwards. This fast rate of growth has 70% closed the gap considerably between the LCR 68% employment rate and that of the UK. 66% 64% 2004 2006 2008 2010 2012 2014 2016 2018 As of 2018 72% of our Working Age Population were LCR North West UK in employment, compared to 74% in the North West and the UK rate of 75%. Unemployment Rate (2004 -2018)

12% At the same time, our unemployment rate has fallen 10% significantly from 6.2% in 2004, to 4.1% in 2018. As of 8% 2018, the unemployment rate was lower than that of 6% both the North West and the UK. 4% 2% 2004 2006 2008 2010 2012 2014 2016 2018 Liverpool City Region North West UK

Source: Annual Population Survey

10 . . . but a high proportion of our WAP is inactive. . .

With 26% of our Working Age Population currently inactive, we have the third highest rate of economic inactivity of all LEPs in the UK, this is a key driver of our output gap with the UK.

Economic Inactivity Rate (2018) 30%

25%

20%

15%

10%

5%

0%

Solent Dorset HumberLondon Cumbria North East South East New Anglia The Marches Oxfordshire Black Country Hertfordshire Enterprise M3 Coast to Capital Worcestershire Gloucestershire West of England Liverpool City RegionGreater City Region Greater Lincolnshire South East Midlands Swindon and Wiltshire Heart of the South West Thames Valley Berkshire Cornwall and Isles of Scilly Cheshire and Warrington Leicester and Leicestershire Coventry and Warwickshire Derby, Derbyshire, Nottingham… York, North Yorkshire and East… Greater Birmingham and Solihull Stoke-on-Trent and Staffordshire Greater Cambridge and Greater… Buckinghamshire Thames Valley Source: Annual Population Survey

11 . . . and disconnected from the world of work

Liverpool City Region Labour Supply (2018) We have 274k residents that are economically inactive, a high proportion of these (30%) do not participate in the labour force due to long term sickness. Long term sickness is highest in St Helens Working Age Population WAP 968k 100% (37.4%) and lowest in Liverpool (26.9%).

Of our working age population, we have a proportionately Unemployed 25k higher number of residents that do not want a job when Self compared with the UK. In addition to sickness there are a Economically Active Employees 620k employed 74% number of reasons for this, such as stay at home parents 73k and people who have retired early – essentially lifestyle Wants choices. a job 47k Economic Inactivity by reason Does not Economically Inactive Long-term sick (30%), Student (23%), want 26% Looking after family/home(23%), Retired (12%), Temporary sick (2%), a job Other (10%) 201 k

Source: Annual Population Survey

12 Inactivity is underpinned by complex health-related challenges

Male Life Expectancy at Birth (2018) 80 Our economic inactivity rate reflects the range of complex health and wellbeing challenges residents in 78 the City Region face:

76 • One in four people of working age in the LCR have 74 limiting health conditions; Halton Knowsley Liverpool Sefton St. Helens Wirral • Life expectancy is two and a half years lower than England Average for England; Source: Public Health England Prevalence of Common Mental Health Disorders (2018) • The prevalence of ill health is increasing; and 30 • There is a high prevalence of mental health 25 disorders1. 20 15 10 Unfavourable health conditions in the LCR contributes to 5 both the employment and productivity gap. 0 Halton Knowsley Liverpool Sefton St. Helens Wirral England Average

Source: Public Health England 1 Health for Wealth: Building a Healthier Northern Powerhouse for UK Productivity

13 2 – Business Environment Our Business Base is growing . . .

Number of Active Enterprises in the LCR (2012-2017) There are 48,000 active businesses in the Liverpool 50,000 46,045 48,405 41,690 43,530 37,975 39,690 City Region. Since 2012, our business base has grown 40,000 each year and at a faster rate than both the North West 30,000 and the UK. 20,000 10,000 This is driven by a consistently higher business birth 0 rate, reflective of our entrepreneurial culture. 2012 2013 2014 2015 2016 2017

Source: UK Business Demography Business Birth Rate (2012-2017) 18%

16% 14%

12%

10% 2012 2013 2014 2015 2016 2017 LCR NW UK

Source: UK Business Demography

15 . . . But our business density is too low

Our business density is the lowest of all LEPs and contributes to our performance gaps with the UK. A larger business base will increase competition, generate more output and employment opportunities and, ultimately, improve performance of the Liverpool City Region.

Number of Businesses per 10k of WAP 1000

800

600

400

200

0

Dorset Solent LondonCumbria Humber SouthNew East Anglia Lancashire Tees ValleyNorth East The MarchesOxfordshire HertfordshireEnterprise M3 Black Country Gloucestershire Coast to CapitalWorcestershire West of England Leeds City Region South East Midlands Greater Lincolnshire Greater ManchesterSheffield City Region Liverpool City Region Swindon and Wiltshire Thames Valley Berkshire Heart of the South West Cornwall andCheshire Isles of Scilly and Warrington CoventryLeicester and Warwickshire and Leicestershire York, North Yorkshire and East… Derby, Derbyshire, Nottingham… Buckinghamshire Thames Valley Greater Cambridge and Greater… Stoke-on-Trent andGreater Staffordshire Birmingham and Solihull Source: UK Business Counts, Mid Year population estimates

16 As our business base grows we need more scale-up businesses . . . Scale-up businesses are an important source of employment and drive productivity. Relative to our business base, we have the fifth highest proportion of Scale-up businesses of all LEPs. However, the scale-up population is small, with just 610 located in the City Region.

Number of Scale-ups per 10k of businesses

250

200

150 100

50

0

Solent Dorset London Humber Cumbria Lancashire North East New Anglia Tees Valley South East Oxfordshire The Marches Black Country Enterprise M3 Hertfordshire West of England WorcestershireGloucestershire Coast to Capital Leeds City Region Stoke-on-Trent and… Greater ManchesterLiverpool City RegionSheffield City Region Greater Lincolnshire South East Midlands Swindon and Wiltshire Thames Valley Berkshire GreaterHeart Cambridge of the South and… West Cheshire and Warrington Cornwall and Isles of Scilly Leicester and Leicestershire Coventry and Warwickshire Derby, Derbyshire, Nottingham… York, North Yorkshire and East… Greater Birmingham and Solihull Buckinghamshire Thames Valley

Source: The Scale-up Institute and UK Business Counts

17 . . . And we need more exporting businesses

Businesses that sell beyond local markets tend to be more productive. In LCR, just 14% of the business base is in export intensive sectors, and just 2.4% of businesses export regularly. Increasing the number of businesses that sell products and services overseas could improve productivity of the City Region.

% Share of businesses in Export-intensive Industries 25%

20%

15%

10%

5%

0%

Solent Dorset London Humber Cumbria South East Lancashire NorthNew East Anglia Tees Valley Oxfordshire The Marches Black Country EnterpriseHertfordshire M3 Coast to Capital Gloucestershire Worcestershire West of England Leeds City Region South East Midlands Sheffield City Region Greater LincolnshireGreaterLiverpool Swindon and Wiltshire Thames Valley Berkshire Heart of the South West Cheshire and Warrington Cornwall and Isles of Scilly Coventry and Warwickshire Leicester and Leicestershire Derby, Derbyshire, Nottingham… York, North Yorkshire and East… Buckinghamshire ThamesGreater Valley Cambridge and Greater… GreaterStoke-on-Trent Birmingham andand SolihullStaffordshire Source: UK Business Counts

18 We have transformational growth opportunities

Across the City Region we have developed, and continue to develop core strengths across a number of sectors that provide real opportunity for strong levels of growth in terms of both jobs and GVA. Our sector accelerators, are sub- sectors of the economy that have strong growth potential, unique and nationally significant assets and strong potential to form innovation-led growth clusters across the City Region.

The sectors we have identified to drive the opportunity in the Liverpool City Region are:

• Automotive • Chemicals and Pharmaceuticals manufacturing • Life Sciences and Healthcare • Digital and Creative • Clean Growth

(Note Clean Growth sector analysis will be added following forthcoming work) Automotive Manufacturing

One quarter of a million cars are produced in the GVA Growth 2010-2017 (Indexed 2010=100) Liverpool City Region annually. The sector is diverse, on 300 the one hand we are home to Briggs Automotive 250 Company (BAC) producing 20 high performance 200 supercars each year, and on the other hand is the 300- 150 LCR acre Jaguar Land Rover site where a car comes off the 100 UK production line every 90 seconds. 50 0 Across the sector there are approximately 55 businesses, 2010 2011 2012 2013 2014 2015 2016 2017 employing more than 7,000 people. Since 2010, the Source: Office for National Statistics sector has grown considerably faster than the UK, Degree of specialisation (LQ analysis) with a Compound Annual Growth Rate (CAGR) of 16%. Employment 2.35 LCR There is a high concentration of employment and UK output compared to the UK, but a lower concentration of businesses. This is reflective of the high number of large, key employers in the sector.

0.96

GVA Number of Businesses 2.84 Source: Office for National Statistics, BRES, UK Business Counts Chemicals and Pharma Manufacturing

GVA Growth 2010-2017 (Indexed 2010=100) Liverpool City Region is home to some of the world’s biggest pharmaceutical players. In 2017, the sector 120 contributed in excess of £1.5bn of GVA. There are over 100 130 businesses operating in the sector, employing more LCR than 7.5k employees. 80 UK 60 Nationally, the sector has contracted, with a £4.5bn decline in output since 2010, against this backdrop, the 40 2010 2011 2012 2013 2014 2015 2016 2017 sector has shown resilience in the Liverpool City Region. Source: Office for National Statistics Degree of specialisation (LQ analysis) There is a considerably high concentration of Employment employment, businesses and output compared to the 2.73

UK, demonstrating the LCR’s sector specialism and LCR expertise. UK

2.00 GVA Number of Businesses 3.22 Source: Office for National Statistics, BRES, UK Business Counts Life Sciences and Healthcare

Our Universities produce world leading research related GVA Growth 2010-2017 (Indexed 2010=100) 120 to the Life Sciences and Healthcare sector. LCR UK In 2017, the sector contributed more than £3bn of GVA 110 and provided c. 95,000 jobs, across a business base of 100 more than 2,000. Since 2010, the sector has grown, albeit at a slighter slower rate than that seen nationally. 90 80 Our specialism in the sector is demonstrated through a 2010 2011 2012 2013 2014 2015 2016 2017 higher concentration of employment, businesses and Source: Office for National Statistics output than what is seen nationally. Degree of specialisation (LQ analysis) Employment 1.53 LCR UK

1.19 GVA 1.52 Number of Businesses Source: Office for National Statistics, BRES, UK Business Counts Digital, Creative and Technology

The Digital and Creative Sector in LCR is growing, with GVA Growth 2010-2017 (Indexed 2010=100) a constant stream of new businesses starting, 180 locating and growing in the City Region. We also have 160 a strong, and growing advanced computing sector, 140 underpinned by nationally significant assets such as 120 the most powerful supercomputer in the UK. 100 80 2010 2011 2012 2013 2014 2015 2016 2017 The sector is growing significantly, and faster than the LCR UK national rate. Output from the sector surpassed £1bn in Source: Office for National Statistics GVA in 2017, and the sector has grown at a CAGR of 7% Degree of specialisation (LQ analysis) since 2010. Employment There are around 2,500 businesses in the sector, LCR providing close to 13,000 jobs. 0.57 UK While there is less evidence of industrial concentrations, the sector continues to grow with emerging specialisms.

0.67 GVA Number of Businesses 0.94

Source: Office for National Statistics, BRES, UK Business Counts 3 – Ideas Our business base engages in innovation. . .

Percentage of businesses engaging in innovation activities With 57.2% of businesses innovation active, we have a Collaboration higher proportion of businesses engaged in innovation than the UK average. Innovation Active LCR UK A high proportion of businesses engage in Research and Development collaborative innovation (this includes collaboration with other businesses, research institutes, HEIs and 0 10 20 30 40 50 60 government). Source: BEIS, UK Innovation Survey Innovation activity engaged in (%) The most common innovation activity is that related to new/improved strategic business practices and changes Strategic & marketing to marketing concepts or strategies. New to market LCR Product and service UK Process

0 10 20 30 40 50

Source: BEIS, UK Innovation Survey

25 . . . And businesses secure a considerable amount of innovation funding . . . Breakdown of Innovate UK funding by number of grants Since 2003, organisations in the Liverpool City Region have secured 655 Innovate UK grants, totalling over 26% £73m. Private Sector NHS 1% Of the 655 grants, almost three quarters (73%) have University gone to private sector businesses. By value the share 73% falls to 52% showing that typically, private sector businesses receive lower value grants than Source: Innovate UK Universities or the NHS. Breakdown of Innovate UK funding by value of grants Top companies by value of Innovate UK funding received (2003-2018) Company Sector Value of Grants Number of Grants

Aimes Digital £3.2m 23 36% Private Sector FMCG £1.9m 10 52% NHS University Videregen Life Sciences £1.5m 2 Ulemco Clean Growth £1.4m 5 12% Acal Energy Chemicals £1.3m 12

Source: Innovate UK Source: Innovate UK

26 . . . but we are in the bottom half of all LEPs for the amount of funding attracted Innovate UK funding by Local Enterprise Partnership

2000 1800 1600 Millions 1400 1200 1000 800 600 400 200 0 Solent Dorset London Humber Cumbria South East South Lancashire Tees Valley Tees New Anglia New Oxfordshire The Marches The Hertfordshire Black Country Black North Eastern North Enterprise M3 Enterprise Worcestershire Gloucestershire Coast to Capital West of England of West Leeds Region City Northamptonshire Greater Lincolnshire Greater South East Midlands East South Sheffield City Region City Sheffield Liverpool Region City Swindon and Wiltshire and Swindon Greater Cambridge and… Cambridge Greater Heart of the South West Thames Valley Berkshire Valley Thames Cheshireand Warrington Cornwall and Isles ofScilly Coventry and Warwickshire Leicester andLeicesterLeicestershire York, North Yorkshire and East…and York,Yorkshire North Derby, Derby, Derbyshire, Nottingham… Buckinghamshire Thames Valley Thames Buckinghamshire Greater Birmingham and Solihull and Birmingham Greater Stoke-on-Trent and Staffordshire and Stoke-on-Trent Source: Innovate UK

27 We have a strong research base. . .

Universities in the City Region and Student Population Universities have a significant role to play in nurturing University Number of Students the knowledge economy and high quality research Liverpool Hope University 8,000 makes a major contribution to economic prosperity.

Liverpool John Moores University 22,000 Universities in the Liverpool City Region are home The Liverpool Institute of Performing Arts 690 to Research Excellence and achieved noteworthy The University of Liverpool 25,000 results in the last Research Excellence Framework review in 2014. Liverpool School of Tropical Medicine 120

Areas of research excellence The University of Liverpool had seven subjects in which research was ranked in the top ten in the UK, and University Areas or Research Excellence ranked first in the UK for research in Chemistry. Liverpool Hope University Mathematics and Computer Science

Liverpool John Moores University Sport and exercise science

The University of Liverpool Chemistry , computer science and informatics Liverpool School of Tropical Medicine Clinical medicine, public health

Source: Research Excellence Framework, 2014

28 . . . And our Universities have a relatively high R&D expenditure

Universities in the Liverpool City Region have the highest relative expenditure on R&D of all North West LEPs.

Higher Education expenditure on R&D per FTE

£900 £800 £700 £600 £500 £400 £300 £200 £100 £-

Solent Dorset London Humber Cumbria OxfordshireNew Anglia Tees ValleyNorth East Lancashire South East Black Country Enterpr ise M3 Hertfordshire The Marches Gloucestershire Coast to Capital Worcestershire Leeds City Region West of England LiverpoolGreater City Region SouthManchester EastSheffield Midlands City Region Greater Lincolnshire Swindon and Wiltshire Thames Valley Berkshire Heart of the South West Cornwall and IslesCheshire of Scilly and Warrington Leicester and Leicestershire Coventry and Warwickshire

Buckinghamshire Thames Valley Greater Birmingham and Solihull Stoke-On-Trent and Staffordshire York, North Yorkshire and East Riding

Greater Cambridge and Greater Peterborough

Derby, Derbyshire, Nottingham and Nottinghamshire Source: Eurostat, 2014

29 . . . But business R&D expenditure is low

Although business expenditure is higher than that of our HEIs, compared to other LEPs, business expenditure on R&D in the Liverpool City Region is low. Business expenditure on R&D per FTE £2,500

£2,000

£1,500

£1,000

£500

£-

Solent Dorset Cumbria London Humber New Anglia South East Tees Valley Lancashire North East Oxfordshire The Marches Hertfordshire Black Country Enterpr ise M3 Gloucestershire Worcestershire Coast to Capital West of England Leeds City Region South East Midlands Liverpool City RegionSheffield City Region Greater ManchesterGreater Lincolnshire Swindon and Wiltshire Thames Valley Berkshire Heart of the South West Cheshire and Warrington Cornwall and Isles of Scilly Coventry and Warwickshire Leicester and Leicestershire

Buckinghamshire Thames Valley Greater Birmingham and Solihull Stoke-On-Trent and Staffordshire York, North Yorkshire and East Riding

Greater Cambridge and Greater Peterborough

Derby, Derbyshire, Nottingham and Nottinghamshire Source: Eurostat, 2014

30 Evidence on collaboration between Universities and the business base is mixed

Business and Community Services by HE provider Relationships between universities and businesses are Total Number of Total Value of Rank (out of University important to unlock innovation and growth, and to Contracts Contracts 162) develop and graduate talent. Liverpool Hope University 25 372 106 LJMU 122 2,038 57 There is some evidence of collaboration between The University of Liverpool 469 15,296 19 Universities and businesses, but these tend to be Source: HESA focussed on larger organisations, with limited long-term Income for consultancy and contract research for businesses (2014-2016) relationships fostered between universities and SMEs.

£60,000 £50,000 £40,000 £30,000 £20,000 £10,000 £-

Solent Dorset London Humber Cumbria North EastSouth East Lancashire New Anglia Tees Valley Oxfordshire The Marches Enterpr ise M3 Hertfordshire Black Country Coast to Capital GloucestershireWorcestershire West of England Leeds City Region Derby, Derbyshire,… Stoke-On-Trent and… South East Midlands Greater Manchester Sheffield City Region Liverpool City Region Greater Lincolnshire Greater Cambridge and… Swindon and Wiltshire Heart of the South West Thames Valley Berkshire Greater Birmingham and… BuckinghamshireCheshire Thames…and Warrington York, NorthCornwall Yorkshire and Islesand… of Scilly Leicester and Leicestershire Coventry and Warwickshire Source: HEBCI

31 4 – Infrastructure Our local rail infrastructure provides uneven connectivity . . .

Internal connectivity of Liverpool City Region and its hinterland by rail The network is the “jewel in the crown” of the city’s rail assets and patronage has grown rapidly since the franchise was devolved in 2004.

At a local level, Liverpool City Region and its wider functional geography is well connected, especially at the core. However, for some areas, especially those of a more rural nature, rail connectivity is weaker.

Source: Long Term Rail Strategy

33 . . . And Liverpool is poorly connected to other locations around Britain Liverpool’s wider connectivity (based on whether or not a direct service links the locations) is poor, especially for a city of its size. Of the 20 with better connectivity, only seven have a larger population than Liverpool. Connectivity of key GB towns and cities

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Hull Derby Leeds London Bristol Cardiff Sheffield Reading Glasgow LiverpoolBrightonLeicesterBedfordSwanseaSwindon Newcastle Plymouth Colchester BirminghamManchester Nottingham Portsmouth Northampton Peterborough AberdeenBournemouth City Stoke-on-TrentMilton Keynes Source: Merseytravel Long Term Rail Strategy

34 We have key international gateways

Liverpool John Lennon Airport Passenger Numbers (2014-18) We are connected internationally by John Lennon 6 airport and our close proximity to . 5 LJLA is a growing international airport and has

Millions 4 grown considerably over the last decade. It now handles 3 over 5 million passengers annually. However, 2 connectivity to the airport is weak, unlike many other 1 major global airports, it has no dedicated rail line. 0 2014 2015 2016 2017 2018 Our Westward facing port is another international Port Tonnage (2014-18) gateway as well as being a significant asset to the LCR 33 economy. The port handles over 33 million tonnes 33 of freight per year and serves more than 100 global destinations including , , , Millions 32 , the and . 32 31 31 30 2014 2015 2016 2017 2018 We are a digitally connected City Region

Digital Connectivity by Local Authority Liverpool is one of the best digitally connected Superfast Ultrafast cities in the UK. We have built our own Internet Halton 98.85% 73.72% Exchange, ensuring world-class speeds. We connect to Knowsley 99.12% 79.69% London directly (LINX) and to the GTT transatlantic Liverpool 97.46% 80.95% internet cable linking the city to and Sefton 99.39% 62.42% . St Helens 98.57% 87.46% Wirral 98.75% 58.69% Liverpool is also a 5G testbed area creating a UK 94.95% 54.01% platform for the smooth roll out of 5G mobile Source: SQW analysis of https://labs.thinkbroadband.com/local/England internet connectivity over the next few years creating Proportion of the population that have rarely/never used the internet multi-gigabyte connectivity across the region.

15% All districts in the City Region have access to 10% superfast broadband, and digital connectivity is higher than national averages across all LAs. 5% However, digital inclusion is an identified challenge with a higher than average proportion of the population 0% LCR North West UK that rarely, or have never used the internet. Source: SQW analysis of https://labs.thinkbroadband.com/local/England

36 5 – Place There are significant place-based assets across the City Region

Blue and Green Infrastructure in the City Region Liverpool City Region has a rich asset base. It is home to more museums, theatres, galleries and heritage buildings than any other place outside of London. Adding to this are the natural assets across the City Region, we have miles of coastline and beaches and over 100 parks. Around 80% of the City Region is blue/green space.

There are some place-based challenges in the City Region, including higher than average crime rates, significant pockets of deprivation, and low wages.

Indicator LCR England Workplace Earnings £538 £575 Resident Earnings £534 £575 % of LSOAs in UK most deprived 31% - Crime per 1k Population 90 86.5 Affordability Ratio 5.86* 8.0

* North West data, LCR Data not available Neighbourhoods are characterised by significant levels of multiple deprivation Deprivation levels across the Liverpool City Region Liverpool City Region has a significant number of neighbourhoods characterised by deprivation. Almost one third of all LSOAs in the City Region are in the most deprived decile in the UK.

These neighbourhoods are located across the City Region but there is a particular concentration in a corridor running North from East Wirral, through North Liverpool/South Sefton to North Knowsley.

The scale of deprivation, and the impact this has on economic growth and productivity, underlines the need to regenerate these neighbourhoods.

Our growing Social Economy will also be important in improving the opportunities for residents in our most Source: Index of Multiple Deprivation deprived communities.

39 . . . That also suffer from low air quality

There is a striking correlation between areas with poor air quality and high levels of deprivation

Deaths from respiratory diseases Deprivation levels across the Liverpool City Region

40 The City Region needs to have the right housing choice. . .

Housing Stock by Council Tax Band Since 2016, over 11,000 new homes across all tenures have been delivered across the city region – the highest 60% rate of delivery since the 2008 recession. 50% However our current housing choice is 40% characterised by a higher than average proportion 30% of lower value houses (Council Tax Bands A and B) than that found nationally, 68% of our housing stock is 20%

% of propoerties % of propoerties in Council Tax Band A or B, compared to 44% of housing stock in England. 10%

0% This limited housing choice offer has implications A B C D E F G H for quality of life and attracting/retaining skilled Council Tax Band labour to the City Region. LCR England

Source: Council Tax Band Stock of Properties

41 . . . And higher quality office space

Office availability and demand (2016)

Office availability Office demand Liverpool City Region has high availability of office

Built last five All (sq ft.) Average Years supply pace, especially in the Liverpool and Sefton. However, years annual take the majority of this space is old, and not meeting the up (last 5 yrs.) expectations of businesses. Only Liverpool and Wirral Halton - 36,500 122,500 3 have had new office space delivered over the last five years. Knowsley - 87,000 45,600 1.9

Liverpool 10,900 2,315,900 304,400 7.6 The oversupply of low quality office space is supressing rent yields, and subduing private sector activity in Sefton - 446,500 88,000 5.1 developing higher quality space.

St Helens - 202,600 54,900 3.7 High quality business space that is fit for purpose is one Wirral 700 249,000 65,700 3.8 important driver of attracting new businesses into the

Total 11,600 3,666,100 681,000 5.4 City Region, and addressing the low business density challenge. Source: Cushman & Wakefield