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Place-Based Growth: Unleashing Counties' Role in Levelling up England

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Place-Based Growth: Unleashing Counties' Role in Levelling up England Place-based growth Unleashing counties’ role in levelling up England 2020 This report has been prepared for The County Council’s Network (CCN) in connection with understanding the role that county authorities have played in delivering place-based growth. This report is prepared for CCN only. To the fullest extent permitted by law, we do not accept a duty of care whether in contract or in tort (including in negligence) or under statute or otherwise nor assume responsibility to anyone other than CCN for our work or this report or for any opinions or conclusions that we have formed. We do not accept any responsibility for any loss or damages or costs incurred by you arising out of the use of this report by any third party. We do not warrant or represent that the report is appropriate for your purposes. The report was not created for, and should not be treated as suitable for, any purpose other than that set out in our terms of engagement with CCN. If you do rely upon the report for any purpose, you will do so entirely at your own risk and you will not bring or threaten to bring any actions, proceedings or claims against Grant Thornton UK LLP where the action, proceeding or claim in any way relates to or concerns or is connected with the use of or reliance on the report. The data used and incorporated into this report has been provided by third parties. We have not verified the accuracy or completeness of any such data. There may therefore be errors in such data which could impact on the content of this report. No warranty or representation as to the accuracy or completeness of any such data or of the content of the report relating to such data is given nor can any responsibility be accepted for any loss arising therefrom. Contents Section Page Executive summary 4 Methodological approach 10 Introduction: Why growth matters in counties 12 Why place matters 22 The uniqueness of place and the rise in spatial inequality 23 The challenge of place and the need to rethink economic development 32 The relationship between places and the importance of connectivity 48 Placed-based growth – the county perspective 56 Investment 57 Influence 68 Action 75 Conclusions 90 Place-based growth recommendations 91 Appendix: Case studies actions pack 93 About us 136 Place-based growth: Unleashing counties’ role in levelling up England Executive summary In December 2019 the new Conservative Government set out a policy agenda that was heavily place-based. At its heart was an “agenda for levelling up all parts of the UK”. This report speaks directly into this agenda. It provides Why growth matters in counties evidence and insight into placed-based growth through the lens of county authority areas. It unpacks the role of county By 2041 28.2 million people will live in county authority areas. authorities* in delivering growth over the past decade through: This will have profound implications on services, infrastructure provision and budgets. It is a scale of growth that is not seen in other authority types. However, this growth is not uniform across county authority areas, and whilst some areas will desk-based research be focused on how best to plan and adapt to an imminent increase in population, for others it will be the changing demographics (e.g. an increasing elderly population) that will require a greater focus. Alongside this, emerging macro trends data analysis – related to technology, sustainability and changing work patterns – will mean that growth will look different to what has gone before. It is a changing context that requires strong local, place-based leadership. case study consultations with With a geographic coverage that covers much of England, 10 county authorities county authorities are well placed to meet this need. They are places where people live and work accounting for 46% of England’s population, 47% of its homes and 48% of its By examining the extent to which local place-specific businesses. Furthermore, for many county authorities they circumstances have shaped action and investment, this are traditional centres of heritage, culture and community. report analyses the extent to which growth has been enabled At a very simple level they are the ‘places’ individuals identify locally and in doing so identifies the barriers that exist. with, be that Surrey, Cornwall, Derbyshire or Essex. It is a combination of factors that places county authorities at the These findings are drawn together to form a series of heart of place-based growth. They offer a broad reflection recommendations to inform policy discussions and debate on different experiences, from those at the heart of driving around how place-based growth can be supported and economic growth through to those facing significant socio- how the new Government’s agenda for “levelling up” can be economic challenge. delivered. *’County authorities’ refer to the CCN membership which comprises all 26 county councils in England and 10 county unitary authorities. 4 Place-based growth: Unleashing counties’ role in levelling up England Why place matters surrounding areas. It is a challenge that requires county authorities to play an essential strategic role to ensure that 1 | The uniqueness of place and the rise in spatial the right type of homes are built in the right places and that inequality these developments drive social, economic and environmental Across a broad range of indicators related to business benefits. For others it is about stimulating new growth, creating environment and living standards, there is notable variation employment and improving living standards. It is a challenge in county authority performance. It is clear that county that focuses on addressing the deep-set socio-economic issues. authorities face complex and multifaceted challenges which are in some cases hindering growth. Of the 36 county Regardless of the specific nature of challenge, it is clear that authorities analysed, only six areas had productivity levels the delivery of essential infrastructure is key, with many county (GVA per job) above the national average. Resident earnings authorities being held back by a growing gap in infrastructure are also low in a large number of county authorities, with provision – with an estimated average infrastructure gap of 25 county authority areas recording below average mean £4 billion per authority. This challenge is further complicated earnings. Furthermore, growth over five years on key metrics by the current fragmented system of planning development in such as businesses, employees and GVA has lagged behind which district councils oversee housing planning whilst County both England averages and non-county authority areas*. For Councils manage local infrastructure investment. example, the number of businesses in county authority areas Managing these challenges underlines the need for an intimate grew by 7.9% between 2015 and 2019, which compares to understanding of place and a joined-up approach to delivery, 11.6% nationally and 15.1% in non-county authority areas. coupled with more freedom and powers to make decisions at a It is a variation that reflects entrenched regional disparities, but place level and across a broader spatial scale. more significantly it is a variation that underlines the need to 3 | The relationship between places and the importance of narrow the gap in spatial inequality to level up the economy. connectivity If progress is to be made in addressing these challenges then County authority areas are not isolated islands and their future policy has to be place-based in focus and recognise relationship to wider functional economic areas has a profound the unique strengths and challenges that different county impact on the scale and nature of growth. Although, proximity authority areas face. to larger economic hubs, such as London and other Core Cities, It is an argument that is given further weight by the inequality does present both risk and opportunities for county authority that exists within county authority areas which also underlines areas. For example, whilst county authorities can benefit from the danger of a ‘one size fits all’ approach to policy or access to high-wage jobs in these city economies, there is a programmes across county areas. Addressing these issues risk of losing skilled workers and graduates. Proximity to large therefore requires a combination of an intimate knowledge cities also creates risks as they expand beyond the traditional of place, a joined-up approach to delivery and freedom and administrative boundaries placing additional pressure on powers to make decisions across a broader spatial scale. housing and infrastructure in the surrounding areas. 2 | The challenge of place and the need to rethink Therefore, infrastructure provision is critical in ensuring that economic development places and people are linked. New transport developments, The challenge facing counties is complex and multi-faceted such as HS2, offers improved links over a much wider area but and growth remains a real and pressing challenge. Over the there remains a need to think about connectivity at a more past five years county authority areas have lagged behind local level. Alongside this, transport planning also has to adapt non-county authority areas and the England averages across to changing attitudes towards transport: whilst people continue a number of key growth metrics including total population, to value mobility, they also care about adverse impacts of employees, businesses, and GVA. The only exception to this transport on climate, health and quality of life and about their is dwelling stock growth where it surpasses both the national own travel experience as congestion mounts. average and non-county authority areas. Connectivity is also not just physical. We live in an increasingly Therefore, if markets are going to be unlocked and growth virtual world and therefore the presence of superfast stimulated there is a requirement for strong, local and place- broadband is a particular requirement for those county based leadership.
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