Southend-on-Sea Borough Council Agenda
Item No.
Report of Corporate Director of Enterprise,
Tourism and the Environment
to
The Cabinet
On
16
th
6 November 2007
Report prepared by: Anita Thornberry
Economic Development & Tourism Strategy
Economic & Environmental Scrutiny Committee –
Executive Councillor: Councillor John Lamb
A Part I Public Agenda Item
1. Purpose of Report
To inform Members of the content of the Economic Development and
Tourism Strategy for Southend.
2. Recommendation
2.1 That the Council approves the Economic Development and Tourism
Strategy for Southend.
2.2 That the Council approves the inclusion of the Strategy as part of the
Thames Gateway Economic Development Strategy.
2.3 That the Council agrees that Officers should include the activity contained
within the Strategy as part of the Medium Term Financial Planning.
3. Background
3.1 In January 2006 the Council Economy and Environment Scrutiny Committee
published the Council’s Economic Policy which recommended the focusing of
activity on five key sectors for the economy, namely Leisure and Tourism; Culture
and Creative Industries; Financial Services; Aeronautical Engineering; and, Health
and Medical.
3.2 An Economic Development and Tourism Strategy for taking forward these sectors
has now been created and addresses the following areas:
A baseline assessment of the current state of the local economy and existing
economic development activity.
Testing and developing Southend’s identified key growth areas.
A review of the key spatial drivers of economic growth, drawing on the
Regeneration Framework.
Identification of a set of key performance/success indicators
A costed Action Plan based on a 5-year timescale.
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3.3 The Economic Development and Tourism Strategy has been closely integrated
with the Regeneration Framework as the latter document provides the physical
infrastructure to support the growth of the local economy and the resulting supply
chains that support the identified sectors. The two documents together also
provide the compelling story to Government of how resources can be deployed
most effectively to transform the future of Southend as a place where people live,
work and visit. As will be seen from the Regeneration Framework, this process
has been successfully completed.
3.4 In addition, the Southend Strategy needs to dovetail with the Thames Gateway
Costed Delivery Plan which is being generated by the Department for
Communities and Local Government which prioritises the projects that the
Government will support, as well as the Thames Gateway South Essex Economic
Development Strategy. This latter document will be the principle document that
informs the Regional Economic Strategy and therefore synergy is necessary for
Southend to draw down regional funding for delivery. Again, this process has
been successfully completed.
3.5 The Sub-National Review of Economic Development, commissioned by the
Treasury and the subject of a paper brought to this meeting of the Cabinet, seeks
to devolve further responsibility for economic development to local authorities so
that they have greater flexibilities and incentives to promote economic growth.
This Strategy enables Southend to respond positively to this challenge.
3.6 The vision of the Economic Development and Tourism Strategy is “A vibrant,
creative, cultural hub and regional centre offering quality of product and
destination, with a diverse and sustainable economic base and the ability to regain
graduates and attract both inward and foreign direct investment. A place where
people want to live, work and visit.” This vision is drawn from that of the
Sustainable Communities Strategy and the Council’s Corporate Plan and supports
the vision encapsulated in the Regeneration Framework.
3.7 The Regional Spatial Strategy has set the target of 13,000 new jobs and 6,500
new homes for Southend by 2021. The Economic Development and Tourism
Strategy seeks to identify where the employment may be drawn from. The targets
are challenging but through direct and indirect targeted interventions for job
creation they will be reached.
3.8 Currently Southend’s economy has room for growth – especially given the
proximity to London and we must take greater advantage of this. Consequently
there is room for the town’s share of retail and leisure spend to increase. Tourism,
office and manufacturing are all vulnerable and are experiencing national
economic pressures.
Target Sectors in Detail
3.9 Much of Southend’s visitor economy is predicated on day visitors. Where visitors
stay in the Borough it is usually with friends and relatives which is not a
sustainable way forward. New product in the shape of the Saxon King Museum,
the Urban Beach opportunity and the development of the Pier are being brought
forward and, in the context of the wider regeneration of the Borough, the product is
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being enhanced over time which is attractive to the staying market. Southend also
has a lot to offer the market segments, identified by VisitBritain, that are more
likely to have an economic value to the destination. Where Southend has not
moved forward is in the way in which the Borough is marketed to those segments
which has allowed the perceptions of a low-value experience to take hold. It will
take time to overcome these perceptions but a concerted, and sustained,
marketing campaign highlighting the depth of offer in Southend, needs to be
undertaken. In this way hoteliers, encouraged by the regeneration proposals and
evidence of its delivery, will take a keen interest in investing in Southend thereby
providing the bed spaces needed to truly capitalise on the potential markets.
Initially any campaigns will simply focus on bringing a different type of market to
Southend for the day and, as new product comes online, eventually encouraging
them to stay. In terms of business tourism, hotel developments that include
conferencing facilities will be encouraged with meetings encouraged and targeted
that best meet the sectors for economic development in the Borough to encourage
further investment in the area in those business areas. It must be noted, however,
that the considerable reduction in Central Government funding to VisitBritain – a
£10m decrease over the next three years – and the reduction in Regional
Development Agency funds will place a greater burden on Local Authorities to
provide marketing resources.
3.10 Cultural and creative industries are already burgeoning in Southend as evidenced
by the relocation of Metal and Mongrel Arts organisations. In addition, the
University of Essex has an expanding cultural and creative focus and will soon
provide a second home to East 15 Acting School courses. A Cultural Hub
proposal is currently being investigated by the University alongside the Arts
Council and EEDA and supported by the Council. There is also a proliferation of
creative industries clustered around Leigh-on-Sea and Southend is rich in theatres
and museums including the Focal Point Gallery. The Arts Council East has
expressed commitment to investing in Southend to help the Borough realise its
ambition of being the cultural capital for the region and, through the Shared
Prospectus with EEDA, this will be centred around regeneration and economic
development. The focus on culture and creative will help to shift perceptions of
the Borough to both visitors and high value added companies from other sectors
due to the quality of life that can be afforded in an area. And there is a growing
body of evidence linking the presence of a ‘creative class’ in towns and cities with
economic success. Towns and cities across the UK with a high proportion of
employees in the creative industries tend to exhibit higher levels of productivity.
3.11 Aviation and Advanced Engineering, centred around Southend Airport, already
has a base in the Borough. The growth of the Airport is hampered by the length of
the runway and the surrounding green belt area but the potential for the existing
Maintenance, Repair and Overhaul (MRO) activities already present is significant.
The employment offered in this field is highly skilled and well paid that are unique
to the local area. Through making the surrounding business parks and industrial
estates more attractive – and, crucially, more accessible via A127 improvements -
to investors through public sector intervention this sector can grow significantly
and attract the supply chain that is necessary to support its operations. To some
extent there is potential through airline operators for a wider economic potential
around the airport but this depends entirely on the business plans of the airline
operators who are currently well served through Stansted and City Airport.
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3.12 Financial and Business Services in Southend already employ a high proportion of
the workforce (23%). Whilst job creation in this sector has slowed in recent years
due to relocations overseas, companies are increasingly reversing this trend due
to language and cultural barriers. The scale of back office relocations seen in
Southend in the past will probably not be repeated but there is still a market for
smaller to medium-sized professional service companies, such as Insure & Go,
looking for a workforce skilled in administrative and financial activities. One of
Southend’s attractions for business is the ease of access to London via rail and
the comparatively low rental rates. However, a barrier to this sector is the current
state of office stock in the Borough. The main provision along Victoria Avenue is
dislocated from the town centre and not fit for modern business. A way in which
this can be remedied is through the proposed town centre provision of smaller
office units.
3.13 The Health and Medical sector is a long term ambition, based on the success of
KeyMed and the spin-off companies that have emerged around it as well as the
hospital. It is entirely possible that, should Southend Hospital realise its ambition
of being a leader in stroke prevention and treatment that this is a key area where
intervention is focused in terms of encouraging research and development
companies to the local area, thereby creating a cluster effect. There may also be
some value in establishing links with Basildon and the NHS University hospital
there to ensure that the wider South Essex economy benefits from this sector and
the highly skilled, highly productive jobs that will accrue. The University is keen to
support this direction through the skills provision that will be required.
3.14 In terms of delivery, Southend has a very complicated business support sector
with a variety of agencies working in the area with the resulting outcome of few
businesses accessing their services. In an environment of a high start-up rate and
high failure rate, this is an area that requires particular attention. The Council is
already working in partnership with Business Link, which has its Thames Gateway
office in Southend, through the new brokerage model and this is anticipated to
continue. However the Council will also need to play a facilitating role in bringing
together different, public sector funded, bodies in order to rationalise the offer and
therefore not only ensure that there is one point of contact but also to maximise
existing investment and promote the services that are offered. The intention is to
create one “Southend Enterprise Hub” which will then create an environment
within which further public sector funding, for example EEDA funding, can be
drawn down. This is not a new initiative, there has been a one-stop-shop in
Southend in the past and the conversation to start this again took place relatively
recently. With the new vision for Southend, however, and the regeneration plans
for the town and the recommendations of the Sub-National Review, it is now timely
for the Council to take a more proactive role in facilitating the joined-up way of
working.
3.15 In order to fully capitalise on the economic potential of Southend, the Borough has
to engage more strongly with Inward Investment efforts. There are barriers to
Southend immediately accessing both UK and foreign direct investment currently,
not least the quality of the premises available for businesses but in terms of the
proximity to London, the air and sea connections and the proposed regeneration,
there are some strong positives to draw on. The Regeneration Framework will go
some way to improving the office supply in the Borough but the Council also has to
engage with a strategic inward investment offer that link Southend not only to the
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wider Thames Gateway but also to Greater Essex. A coordinated service where
public sector investment is maximised through the regional and sub-regional
activity is the only realistic way forward for Southend – the resources simply do not
exist for the Borough to act alone in this arena due to strong national and
international competition. Depending upon the agreement of a set of protocols, it
is recommended that Southend engages with the proposed wider Essex inward
investment activity and, where opportunities arise, the wider Thames Gateway for
marketing and enquiry generation. For enquiry handling, investor development
and business retention, the Council is already well placed to deliver.
3.16 The lack of a sufficiently advanced skills base is not only a barrier to success for
Southend but also for the wider Thames Gateway. It is vital that the education
provision, from schools to Higher and Further Education is geared towards the
needs of the economy and robustly delivered. Economic development needs are
incorporated within the Southend’s Lifelong Learning Strategy and the further and
higher education institutions in the Borough are seeking to address the needs
based on the economy’s requirements. The Thames Gateway Interim Plan Skills
Strategy is focused on how to deliver Train2Gain at Level 3l; an integrated
Information Advice and Guidance (IAG) offer; and, a Guarantee of Assured
Progression. It is recommended that the Council and its partners engage with
Thames Gateway in this area and helps deliver the requirements.
3.17 The success of the Economic Development and Tourism Strategy will be
measured through a reduction in the business failure rates in the Borough, through
an increase in creative businesses opening, fewer empty commercial properties,
reduced unemployment, greater take-up of training courses including University
courses by local residents, greater investment in the Borough by both UK and
international-owned businesses and the retention of them and a significant
increase of the impact of tourism on the economy.
4. Corporate Implications
Resource Implications (Finance, People, Property)
4.1 Existing resources of the Economic Development team will be deployed to
delivering the outcomes of the Economic Development Strategy and the Tourism
Unit will be focused on delivering the Tourism strategy.
Contribution to Council’s Vision & Critical Priorities
4.2 Delivery of the Economic Development and Tourism Strategy will lead to the
delivery of a “Prosperous Southend” by enhancing the local economy and creating
an environment whereby aspirations and an entrepreneurial spirit can successfully
and sustainably thrive.
Consultation
4.3 Consultation with stakeholders took place as part of the formulation of the Strategy
and further consultation has taken place with the final document with responses
still awaited. As the recommendations are translated into delivery plans, further
consultation will also take place.
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Equalities Impact Assessment
4.4 Economic development is inextricably linked to delivering against equalities
targets.
Risk Assessment
4.5 The key risk is a failure to deliver the highest priority recommendations of the
Economic Development and Tourism Strategy as this will lead to stagnation of the
Southend economy and the disenfranchisement of stakeholders.
4.6 This risk will be addressed through achieving the Council’s support and buy-in to
the key recommendations and ensuring that the resources available to the
organisation both internally and, where appropriate, externally are focused on
delivery.
Community Safety Implications
4.7 There are no direct community safety implications.
5. Background Papers
5.1 Southend-on-Sea Borough Council Economic Development & Tourism Strategy
6. Appendices
6.1 Southend-on-Sea Borough Council Economic Development and Tourism Strategy
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