ITEM 33 St George’s Barracks, Rutland Employment Strategy Report by BBP Regeneration For [Client] [Publication date] December 2018 ITEM 33 Report prepared by: Studio 432, Metal Box Factory 30 Great Guildford Street London, SE1 0HS [email protected] www.bbpregeneration.co.uk Job number: 2802 Version: 2.3 Prepared by: Stephen Pritchard / Chris Tilley Checked by: Stephen Pritchard Status: FINAL detai Document © BBP Regeneration 2018 - Neither the whole nor any part of this report may be published in any way without prior consent. Disclaimer: This report is only for the benefit of the party to whom it is addressed, and no responsibility or liability is extended to any third party for the whole or any part of its contents. Whilst every effort has been made to ensure the accuracy of its content, the report has l s been prepared on the basis of information available at the date of publication and without any independent verification. ITEM 33 Contents 1. Introduction ...................................................................................................................................... 4 2. Context ............................................................................................................................................. 6 Demographics ..................................................................................................................................... 6 Socio-Economic Profile of Residents .................................................................................................. 6 Employment in Rutland ....................................................................................................................... 6 Business Base in Rutland.................................................................................................................... 7 Commuting Patterns ............................................................................................................................ 9 Strategic Context ............................................................................................................................... 10 Employment Land .............................................................................................................................. 11 Feedback from Employers’ Workshop .............................................................................................. 12 Feedback from Local Agent Consultation ......................................................................................... 13 Viability .............................................................................................................................................. 13 3. St George’s Employment Needs ................................................................................................... 15 Emerging Masterplan ........................................................................................................................ 15 Home Working ................................................................................................................................... 16 4. St George’s – delivering the Employment Offer ............................................................................ 18 ITEM 33 1. Introduction This paper has been prepared to consider the types of jobs and types of businesses that can be attracted to St Georges and the ‘offer’ in terms of sites and premises that needs to be made available. The paper will help shape and form part of the evidence for the masterplan. It will also be used to inform investment decisions, bids for funding and delivery arrangements. The focus of the paper is on jobs which will be accommodated with ‘B Use Class’ properties. Employment Strategy 4 BBP Regeneration ITEM 33 2 Context Employment Strategy 5 BBP Regeneration ITEM 33 2. Context Bordering the counties of Lincolnshire, Leicestershire, Northamptonshire, Rutland is the most rural county in England, with high quality of life seen as a major attractor to the area. Rutland is affluent with a highly skilled population and a low unemployment rate. In this section we have summarised the key baseline socio-economic characteristics providing a context for the plans for St Georges Barracks. Demographics • The resident population of Rutland was 38,600 in 2016 • Of this, 59% is of working age, and 24% is aged 65+ • These percentages are similar to the averages in rural areas across the country. However, the working age population is smaller and the 65+ population is larger than in the Greater Cambridge Greater Peterborough LEP (GCGP) and the UK • Reflecting the trend seen across the country, there has been significant growth in the population aged 65+ between 2012 and 2016 and some increase, albeit much smaller, in the population aged 16-24, contrary to comparator locations in the same time period Socio-Economic Profile of Residents • According to the Rutland County Council Employment Review; “Rutland is affluent with a highly skilled population” • The economic activity rate is 82%. This is similar to the national average and all comparator areas • Resident earnings are higher than workplace earnings (£28,800 and £23,900 respectively), suggesting that residents commute out of Rutland for higher paying jobs • The proportion of residents qualified to NVQ4 (degree level) is significantly higher than in all comparator areas (46%) • There is anecdotal evidence that local businesses struggle to recruit suitably qualified and experienced staff, particularly in higher value sectors and activities; and also experience difficulty recruiting lower qualified and paid staff who are less willing to travel far to work Employment in Rutland • Total employment in Rutland was 15,000 in 2015 • This declined over the period between 2011 and 2015, contrary to all comparator locations • Job density1 of 0.85 in 2015 is the same as for the Greater Cambridgeshire and Greater Peterborough LEP, and greater than other comparator areas • According to the Rutland County Council Employment Review; “Double national average employment in public sector. Highly dependent on public sector employment” 1 Jobs Density = the total number of filled jobs in Rutland divided by the resident population of working age in Rutland Employment Strategy 6 BBP Regeneration ITEM 33 Business Base in Rutland • Key sectors by location quotient2 are; Education (1.9), Manufacturing (1.9), Accommodation & Food Services (1.6) and Retail (1.4) • The Professional, Scientific & Technical sector is the strongest office-based sector; it has the largest number of businesses and employs the largest number of people • According to Rutland County Council, traditional rural industries are declining and “the range of employment opportunities is limited” in the sector • Rutland has a similar business size-profile to comparator areas. Micro businesses (0-9 employees) comprise 89% of the total business count • Entrepreneurialism and small business growth is seen as a major driver of the local economy with potential for current out-commuters to establish businesses in Rutland • Business births increased between 2012 and 2016, is in line with comparator areas (although less than in the East Midlands and UK) • Business survival rates are similar to comparator areas • Total Gross Value Added (GVA) has increased between 2010 and 2015, but at a lower rate than in all comparator areas • GVA per head has increased slightly in the period between 2010 and 2015, but remains lower than in comparator areas • There is a decline in rural industries • Tourism is important to the area 2 Location Quotient = the concentration of employment in a sector in Rutland divided by the concentration of employment in that sector nationally. LQ>1.0 = a higher concentration of employment in that sector than nationally. LQ<1.0 = a lower concentration of employment in that sector than nationally Employment Strategy 7 BBP Regeneration ITEM 33 Figure 1 - Businesses by sector, percentage Source: ONS Business Counts – Local Units, 2015; chart from Employment Land Assessment Update (BE Group, 2016) • Figure 1 above shows the number of businesses by sector in Rutland in comparison to the region and the whole of Great Britain. These figures demonstrate the strength of the agricultural, forestry and fishing and professional, scientific and technical sectors, which make up a larger proportion of businesses in Rutland than they do nationally. Rutland is slightly weaker in the construction, retail, warehouse and storage and financial and insurance sectors when compared to the rest of the East midlands and the country as a whole. Employment Strategy 8 BBP Regeneration ITEM 33 Commuting Patterns • According to the 2011 Census of Population, 6,400 residents commute out of Rutland to work elsewhere, and 6,800 people commute into Rutland to work, so Rutland is a net importer of workers • South Kesteven is the top destination of workers from Rutland and is also the largest supplier of workers to Rutland • 53% of Rutland’s working residents live and work within Rutland • Rutland County Council states that Rutland is in the Peterborough travel to work area, within the Peterborough Housing Market Area (HMA), and also has functional links with the Leicester and Leicestershire HMA • As mentioned above, resident earnings (£28,700) are higher than workplace earnings (£23,900) in Rutland, which suggests out-commuting for higher pay jobs • Ensuring infrastructure (e.g. broadband) is in place may persuade some out-commuters to work more from