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Plymouth Local Economic Strategy 2006 - 2021 _ Beyond

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					Plymouth Local Economic Strategy
2006 - 2021 & Beyond




                             October 2006
I    Foreword


Plymouth is changing and that change is tangible. You can see it in the major new
developments across the city as Plymouth realises its ambition to become one of
Europe's finest, most vibrant waterfront cities.

Plymouth’s widely applauded approach to accelerated growth requires a step change in
the economic performance of the city and the sub region. This now consists of the all-
inclusive private sector sub-regional consensus, led by the Plymouth Chamber of
Commerce, and an exemplary track record of community involvement in both economic
development and regeneration.

Proactive intervention in the economy needs to dovetail with our exciting regeneration
plans and our proposals for improving infrastructure allowing us to compete at a regional,
national and international level. Plymouth can therefore make a unique contribution to
the UK’s economic growth as a city region identified by Government as one of its New
Growth Points.

The Plymouth Local Economic Strategy sets out a clear joined up framework for the
transformation of the Plymouth economy. The public, private and voluntary sectors,
together with sub regional partners, have come together to produce a coherent set of
actions that can be turned into reality on the ground.

Already a city of growth and opportunity, we see our economy changing, through
learning and innovation, transforming knowledge into an economic driver to create a
“city of ideas”.

We need to diversify the economic base and provide a climate for innovation and growth
that encourages enterprise and allows businesses to increase productivity and
competitiveness.

We wish to inspire today’s workforce to develop their skills and to prepare our young
people for a knowledge driven economy, liberating everyone’s potential as part of a truly
inclusive city.

We want to ensure that the wealth generated is shared by all, narrowing the gap of
aspiration and achievement across the city.




                                          (ii)
Plymouth's time has come. All partners have a single-minded commitment to deliver.
We hope you agree that the Plymouth Local Economic Strategy sets out a clear,
sustainable, and achievable vision of our shared future. At its heart will be a private
sector driven City Development Company to provide the necessary capacity and focus.

We invite you to read this strategy to discover what the new Plymouth has to offer, and
to join us, as we move forward as one.




         Tudor Evans                 Charles Howeson                  Sue Dann

            Leader                   Chair Chamber of             Cabinet Member for
    Plymouth City Council              Commerce                Economic Development and
    Chair Plymouth 2020                                           Human Resources,
  Local Strategic Partnership   Chair Wealthy Theme Group        Plymouth City Council
                                       Plymouth 2020
                                 Local Strategic Partnership




                                            (iii)
Plymouth Local Economic Strategy
contents
FOREWORD

EXECUTIVE SUMMARY                                     1

A NEW ECONOMIC STRATEGY FOR PLYMOUTH – Introduction   5

THE OVERALL CHALLENGE – Critical Success Factors      8

PLYMOUTH ECONOMIC STRATEGY

    THEME 1 – BUSINESS                                30

    THEME 2 – SKILLS                                  41

    THEME 3 –CENTRES                                  44

    THEME 4 – PARTICIPATION                           47

    THEME 5 – LEADERSHIP                              50

    APPENDICES                                        60
                                                  Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 1




Executive Summary
Plymouth: City of Opportunity

         “By 2020, Plymouth will be one of Europe’s finest, most vibrant waterfront cities, where
        an outstanding quality of life is enjoyed by everyone, where all can be “healthy, wealthy,
        safe and wise”.

The Local Development Framework (LDF) and Local Transport Plan (LTP) provide the strategic
framework for the spatial development of the city. This economic strategy identifies the key economic
development priorities which are necessary to deliver the step change in economic performance to
2026.

In moving towards this Vision, the Plymouth Local Economic Strategy seeks to realise the following
aspirations:
    •     A highly competitive City, well recognised and branded on the global economic stage;
    •     A City with a balanced, diversified and knowledge intensive business base;
    •     A City Region with well connected and inclusive communities;
    •     A City with an adaptable and skilled workforce which is constantly learning;
    •     A City where strong stakeholders and agencies work effectively together to deliver shared
          priorities;
    •     A City where a genuine commitment to sustainable development reinforces a set of unique
          environmental assets.

The Vision for Plymouth is nothing less than Plymouth becoming the best it can be.


Plymouth: City of Ideas
The “city of ideas” is a central concept within the economic strategy. By 2020 Plymouth will be
distinguished by a set of key physical and economic features, by a particular social and economic mix
and by a specific cultural climate and a set of culturally-held values. The key features will include:
    •     Knowledge creation (world class university and technology transfer infrastructure);
    •     Good skills levels throughout the workforce;
    •     Cluster(s) of growing knowledge industries;
    •     Transport links (especially airport with high connectivity) both to and within the city;
    •     Quality of life (good service/cultural industry presence);
    •     Effective local leadership (local government and other agencies);
    •     Appropriate degree of political and economic autonomy (cash, planning, strategic decisions,
          etc)


To achieve these goals requires strategic thinking, in which the locational, knowledge and cultural
assets of the city are viewed as a whole.
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 2



Plymouth’s assets
Plymouth has many positive factors on which to build, most notably an outstanding natural waterfront
setting and a new and exciting physical vision for the city centre (the Mackay Vision). These assets
together with a growing education infrastructure and established specialisms in Advanced
Manufacturing, Medical Sciences, Arts and Creative industries (e.g.: Plymouth Arts Festival),
Sustainability and Environmental sciences, and Marine Sciences (e.g.: Plymouth Marine Institute)
provide a platform to achieve the City’s vision. The University of Plymouth is a key driver for the
expansion of the City’s knowledge economy and a critical influence on the future economic prosperity
of the city. Private sector investment in the City is also increasing, as demonstrated by the successful
track record of Tamar Science Park and its impact in clustering high value added, knowledge intensive
businesses. The challenge is how to scale up from this base and provide similar incubation and start
up space located in close proximity to other centres of intellectual capital.

Plymouth’s challenges
At present Plymouth is a fragile and underperforming economy. Plymouth must improve its economic
performance, become more competitive and diversify its economic base in order to raise incomes and
tackle economic and social exclusion. It must provide a more supportive culture for its business
community and intellectual property, and provide the opportunity for small and medium sized
companies to flourish without having to leave Plymouth to do so. It must change its perception of
peripherality through better connectivity with other core cities and regional urban centres in Cornwall
and Devon, improve its image by promoting its cultural drivers and the City’s attractions as a place to
live, work and play.

The Economic Strategy
EDAW Plc and PriceWaterhouseCoopers LLP were commissioned to produce a new long-term
economic strategy and action plan for the Plymouth sub-region to ensure that it can deliver a step-
change in economic performance to dovetail with the City’s new spatial planning vision.

The overarching aim of the strategy is to achieve a significantly improved competitive position for the
city of Plymouth and to transform it into a competitive, diversified, balanced and well-connected
economy. A city where strong leadership drives economic success whilst ensuring development
remains inclusive and sustainable.

The Plymouth Economic Strategy identifies seven critical success factors that will be essential to bring
about economic transformation and success, these are:


    •    Productivity & Competitiveness
    •    Business & Enterprise
    •    Knowledge & Technology
    •    Skills & Learning
    •    Key centres
    •    Participation
    •    Leadership

These factors are determinants of economic performance in all cities and will become Plymouth’s
indicators of success over the next decade.
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 3



Proactive Interventions

The Plymouth Economic Strategy responds to these critical success factors through a series of
themes and the Strategy’s value added is rooted in the interaction of key ideas across each of the
themes. The most important ideas suggested by the Plymouth Economic Strategy are:

1.   Focus on key sectors for which Plymouth has competitive advantage: Six priority clusters
     have been defined by Plymouth Business Growth as the means to building on Plymouth’s
     competitive advantages. Our assessment of these sectors has suggested that the original
     Plymouth Business Growth Strategy choice of sectors remains valid, but:
              o   Special priority should be given to financial and business services, creative
                  industries, and tourism and leisure in terms of new investment/job prospects;
              o   Public sector relocations should also be included as a key target sector;
              o   The advanced engineering, marine industries, and medical and healthcare sectors
                  are important but primarily from the viewpoint of retaining and expanding the
                  existing economic base.

2.   Establish a clear brand and marketing strategy for Plymouth tailored to different target
     audiences: The Action Plan identifies two areas in which Plymouth should focus its branding and
     marketing efforts. The first is the Plymouth High Technology Hub to help target the investor offer
     at high tech and knowledge based sectors. The second is Plymouth: the national events capital,
     an initiative that will position the marine and lifestyle assets of the city as a cornerstone of a
     brand, which promotes national and international visiting and event tourism.

3.   Increasing levels of entrepreneurship through an Economic Strategy branded investment
     fund and competition: Entrepreneurship is an essential part of any competitive and sustainable
     economy. The strategy suggests the creation of Plymouth’s Dragons’ Den – a branded
     investment fund that would help to stimulate the rate of new business ideas coming forward and
     promote Plymouth as a more entrepreneurial city.

4.   Encourage Market Focused Research & Development (R&D): Plymouth should use its large
     education and skills infrastructure to encourage innovation and a more market focused research
     base. Fostering relationships between private sector companies and investors and the academic
     research base can help to move more research into commercial products and processes.

5.   Enhance the tourism offer: Plymouth needs to build on its waterfront location and heritage but
     also attract flagship marine initiatives and ‘high quality’ branded schemes that would step up the
     quality of tourism and leisure facilities in Plymouth. Additionally, it has to link with the city’s
     marketing efforts to make sure that there is a link between what is actually communicated and
     what is really on offer from a tourism point of view. The potential measures to improve
     Plymouth’s tourism offer include:
              o   Encourage the development and awareness of a greater breadth of heritage
                  attractions;
              o   Improve linkages between the waterfront and the rest of the City;
              o   Promote a regular international festival of the sea and attract national marine
                  events;
              o   Encourage improvement and expansion of the hotel stock (attract branded chains)
                  and investigate the opportunities for developing conference facilities.


6.   Develop Plymouth’s property offer, and in particular enhance the office accommodation to
     support business services: The focus should be around developing a rolling programme of
     investment in advanced office schemes, linked closely to the regeneration programme. Three
     types of office are likely to be required: multi-occupancy offices (e.g. 30,000 - 50,000 sq ft with
     scope for sub-divisions of say 5-10,000 sq ft), standalone offices of 10,000 - 50,000 sq ft and
                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 4



     serviced offices of 1,000 - 5,000 sq ft. The waterfront area, particularly Millbay, the City Centre,
     Sutton Harbour and Derriford represent the best opportunities to deliver the necessary range of
     office accommodation.

7.   Transform Plymouth into a true ‘learning city’. Building on Plymouth’s relatively large learning
     infrastructure and expanding it to promote specialized research in key sectors and increase high
     level academic research and post graduate learning. In parallel to this the strategy proposes a
     substantial uplift in the provision of community learning and outreach in disadvantaged areas, as
     well as extending the school campus agenda to tackle the skills deficit below NVQ3 level.

8.   Achieving well connected complementary growth. Plymouth will bring about a step change in
     economic performance by encouraging well connected mutually reinforcing economic centres.
     The strategy promotes the complementary development of the two primary economic centres, the
     City Centre and Derriford, through better connectivity, high quality speculative office
     accommodation at Millbay and high quality mixed used development on waterfront locations.

9.   Achieving effective and unconstrained participation in the labour market. Achieving
     inclusion for all communities and high levels of economic activity across the City requires highly
     targeted action based on a first class evidence base. The development of the City Observatory
     will revolutionise the collection, use and sharing of information by all partners to enable better and
     more effective intervention. This will be underpinned by the development of a Skills Board to
     ensure access and take up of basic skills across the City and a new approach to tackling
     economic inclusion through mobile multi-agency teams.

10. Establish a new Local Delivery Vehicle (LDV) for Plymouth: The strategy proposes a City
    Development Company that would oversee the implementation of the new Plymouth Local
    Economic Strategy and the long term realisation of the City’s regeneration objectives. The
    delivery vehicle will focus on delivery not strategy and will:

              o    Give the private sector a driving, rather than advisory role in the regeneration of the
                   City;

              o    Secure and maximise the effectiveness of infrastructure and other public sector
                   investment;

              o    Harness development benefits (and value where appropriate) that can be used to
                   support investment in infrastructure and realise other community benefits;

              o    Champion economic development at a City region level;

              o    Secure effective engagement of partners and stakeholders, and align their
                   investment programmes, behind an agreed set of priorities; and

              o    Attract new private and public/private investment partners into the city and maximise
                   benefits to the city from regional funds, UK state aid and European programmes
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 5




A new economic strategy for
Plymouth
This economic strategy is about determining a new future for Plymouth. It is about the driving forces
that will shape the economy of the City over the next 20 years and beyond.

The strategy was commissioned and managed by the Wealthy Theme Group of the Plymouth 2020
Partnership with the Government Office for the South West, the South West of England Regional
Development Agency and Plymouth City Council. It has been prepared by EDAW and
PriceWaterhouseCoopers.

The strategy is led by the already established bold and exciting Vision for Plymouth. This is a vision
that must be shared by all agents – public, private and community – who will be tasked with
implementing this new Economic Strategy, as well as all other key policies and strategies for the City.



The Economic strategy addresses a specific objective that sits within the overall City Vision, namely
“Developing a prosperous economy”



 Plymouth City Vision
 By 2020, Plymouth will be one of Europe’s finest, most vibrant waterfront cities, where an
 outstanding quality of life is enjoyed by everyone, where all can be “healthy, wealthy, safe and wise”.

 This Economic Strategy specifically addresses the following City Vision strategic objective:

 “Developing a prosperous economy”

 The following City Vision objectives are also pertinent to improving Plymouth’s economy:

 “Raising educational achievement”, and

 “Promoting inclusive communities”

 In “Developing a prosperous economy”, the Economic Strategy seeks to realise the following
 aspirations:
 •   A highly competitive City, well recognised and branded on the global economic stage;
 •   A City with a balanced, diversified and knowledge intensive business base;
 •   A City Region with well connected and inclusive communities;
 •   A City with an adaptable and skilled workforce, constantly learning;
 •   A City where strong stakeholders and agencies work effectively together to deliver shared
     priorities;
 •   A City where a genuine commitment to sustainable development reinforces a set of unique
     environmental assets.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 6



THE OPPORTUNITY

Cities all over the world are constantly positioning and re-positioning themselves in an attempt to
attract the types of investment that will guarantee their sustainable long-term prosperity. Plymouth
must fully ‘punch its weight’ and beat these other locations at their own game. There are many
components already in place that make Plymouth an attractive location for competitive businesses and
for creative and enterprising people seeking a high quality of life.

In developing a new economic development strategy for Plymouth, we are fortunate in a number of
ways. The City has some genuinely distinctive assets, which if effectively harnessed, will reinforce
efforts to strengthen and diversify the economy and increase the prosperity of its people.

This strategy is also about unlocking the potential of what Plymouth has to offer and ensuring that, by
effective leadership, co-ordination and partnership working, the City can deliver change and secure a
bigger share of resources from regional and national sources.



This strategy therefore seeks to build upon:
•   An outstanding natural environment and waterfront setting, with the potential to generate
    significant economic benefit through attracting people and business, as well as significant leisure
    and tourism activities. In addition, the City has easy access to a rural hinterland of immense
    environmental quality;
•   An existing physical vision for the City Centre that has already generated a high level of
    expectation, confidence and enthusiasm about Plymouth’s future as an economic player. Allied to
    this, the City centre is about to increase the scale of its retail sector, enhancing its ability to
    capture a larger regional consumer market;
•   A large and growing education infrastructure. For a city of its size, Plymouth is fortunate to have
    an impressive and growing set of education institutions which are all set to develop further over
    the next few years;
•   A strong and recognisable industrial and military heritage which has left behind a set of
    ongoing and evolving specialisms in Advanced Engineering and Maritime and Marine industries;
•   A strong sense of commitment and partnership from Plymouth stakeholders (resident, business
    and organisations).
•   The next European funding period runs from 2007-2013 and new programmes will differ markedly
    from current programmes in that they will need to be based around the Lisbon Agenda of
    competitiveness and productivity. The opportunity exists for the South West and Plymouth to
    make a case for investment in the City Centre as part of developing a competitive and knowledge
    based economy.
•   A strong evidence base provided by the Employment land Review produced by Baker Associates
    which confirms that Plymouth can achieve up to 42,500 jobs by 2026 increasing the number of
    jobs from 135,604 in 2003 to 178,104 by 2026 as follows:
                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 7




                                        Growth              Total Jobs as at 2026
                  Sector
                                       2003-2026
Extractive                                   0                         384

Manufacturing                             -4,000                     16,103

Utilities                                    0                         512

Construction                              +2,080                      7,393

Retail/Distribution                       +8,500                     33,259

Hotels and Catering                       +4,250                     13,703

Transport and Communications              -1,000                      6,238

Financial Services                        +1,400                      4,322

Business Services                        +10,750                     26,880

Public Administration                      +500                       9,281

Education                                 +7,750                     22,823

Health                                    +7,000                     25,839

Other Services                            +5,250                     11,367


TOTAL                                    +42,460                    178,104
                                                   Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 8



THE OVERALL CHALLENGE: Critical Success Factors for Plymouth

Despite some obvious strengths Plymouth currently has a relatively fragile economy and must improve
its economic performance in order to raise incomes and tackle issues of economic inactivity and social
exclusion.

Key challenges for Plymouth involve addressing the following critical success factors:

1.   Productivity & Competitiveness
     •   High levels of Gross Value Added (GVA)

2.   Business & Enterprise
     •  High levels of employment
     •  A diverse business base

3.   Knowledge & Technology
     •  A high proportion of employment in knowledge based activities
     •  High levels of innovative capacity

4.   Skills & Learning
     •    A high quality, adaptable skills base
     •    High levels of attainment in education
     •    A positive and aspirational culture

5.   Key centres
     •   A range of well connected centres and nodes that drive complementary and mutually
         reinforcing components of the economy

6.   Participation
     •   Inclusion and access for all communities
     •   High levels of economic activity

7.   Leadership
     •  Coordination and championing
     •  Image & Branding

The overarching aim of this strategy is to achieve an improved competitive position for the City of
Plymouth. All of the key success factors, as well as the individual action areas outlined within this
strategy, are geared towards the ultimate objective of greater competitiveness.



The critical success factors listed above are important determinants of economic performance for all
cities. Plymouth exhibits a current set of both strengths and weaknesses associated with these
factors, which are outlined below. The City’s current position is shown overleaf, with suggested targets
to be met by 2016.
                                                        Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 9




Critical Success Factors for Plymouth
Current Position & 2016 Target
Critical Success
                         Components                       Current Position             2016 Target
Factor
Productivity &           High levels of Gross Value       GVA per head is 90% of       GVA per head in Plymouth
Competitiveness          Added (GVA)                      UK average (2002)            to be 100% of UK average
                                                          Employment rate in           Employment rate in
                         High levels of employment
                                                          Plymouth = 73% (2004)        Plymouth = 80%
                                                          VAT registered business
                                                                                       VAT registered business
Business &                                                stock per 1,000 = 163
                                                                                       stock per 1,000 = 210
Enterprise                                                (2004)
                         A diverse business base
                                                          Change in total              Change in total
                                                          employment 2002 –2004 =      employment, year on year
                                                          -0.7%                        from 2006 = 2%
                         A high proportion of             Employment in knowledge      Employment in knowledge
                         employment in knowledge          and technology based         and technology based
Knowledge &
                         based activities                 activities = 16% (2004)      activities = 25%
Technology
                         High levels of innovative        Patent applications per      Patent applications per
                         capacity                         head = <50 (2002)1           head = 75
                                                          % of workforce with no
                         A high quality, adaptable                                     % of workforce with no
                                                          qualifications = 12.5%
                         skills base                                                   qualifications = 9%
                                                          (2004)
                                                          % of workforce with NVQ      % of workforce with NVQ
                         High levels of attainment        Level 4 qualifications =     Level 4 qualifications =
Skills & Learning
                                                          21%                          35%
                                                          % 18 year olds from
                                                                                       % 18 year olds from
                         A positive and aspirational      Plymouth proceeding to
                                                                                       Plymouth proceeding to
                         culture                          Higher Education = 23%
                                                                                       Higher Education = 34%
                                                          (2004/5)2
                         A range of well connected
                         centres and nodes that
                                                          Lack of connectivity         Full and complimentary
                         drive complimentary and
Key centres                                               between key economic         connectivity between key
                         mutually reinforcing
                                                          nodes within the City.       nodes.
                         components of the
                         economy
                         Inclusion and access for all     Overall mean IMD score =     Overall mean IMD score =
                         communities                      26 (2004)                    18
Participation
                         High levels of economic          Economic inactivity rate =   Economic inactivity rate =
                         activity                         23.5% (2004)                 19%
                                                          Lack of a well defined
                                                          delivery vehicle for         Successful development
                         Coordination and
                                                          strategic economic           and implementation of
                         championing
                                                          development and              delivery vehicle
Leadership                                                regeneration activity
                                                                                       Development and
                                                          No current branding and      implementation of
                         Image & Branding
                                                          marketing strategy           successful branding and
                                                                                       marketing strategy




1   Where the South West region is indexed to 100
2   Devon & Cornwall LSC
                                                                                            Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 10



Critical Success Factors

[1] Productivity & Competitiveness
Competitive cities demonstrate high levels of productivity – combining a range of factor inputs to
generate products and services as efficiently as possible. This is dependent upon many components
including natural and physical resources, skills and qualifications, managerial capacity, innovation and
ideas, as well as efficient systems of movement. Cities are highly competitive where these
components generate productivity levels that are higher than other locations.

Gross Value Added
Gross Value Added (GVA) is taken as the main indicator of productivity in a particular location.
Baseline data shows us that Plymouth GVA lies below the national and regional averages. Although
GVA per head in the City has been growing over time, there is still a substantial gap when Plymouth is
compared with UK cities such as Bristol, Edinburgh and Leeds.

                   Gross Value Added £ per head 2000 - 2002 (UK=100)                                                        GVA £ per head, comparator cities, 2002

    120                                                                                          30000

                                           UK = 100                                              25000
    100
          100 100 100
                                                                                                 20000
                           93   94   94
                                                                                  89   90
     80                                                                      85                               (England and Wales = 15273)
                                                               79    80 79                       15000

     60                                                                                          10000
                                             62   63 62

                                                                                                     5000
     40
                                                                                                        0
     20




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              UK           South West     Cornwall and Isles        Devon    Plymouth




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Source: ONS


Over the period 1995 to 2002, GVA per capita in Plymouth increased by 37% compared to an
                                                3
increase across England as a whole of 42.7% . Other centres in the South West region, including
Bristol and Bournemouth, are within the top ten locations nationally experiencing the largest increases
in GVA over this period. Plymouth’s performance is close to that of a number of other cities including
Bradford, Nottingham and Coventry. Despite an overall, relative underperformance, Plymouth is
actually ahead of Southampton, Leicester, Hull, Norwich, Preston and Stoke in terms of increasing
levels of GVA.

The challenge is not only to raise the overall level of GVA in Plymouth, but to strengthen efforts to
attract and grow higher value services within the economy, such as the business and professional
service sector. Tackling this challenge is also crucial to reducing the fragility of the Plymouth economy
and dependency on traditional sectors, as well as increasing the flexibility and innovative capacity of
the City.

Exports
Competitive cities tend to demonstrate relatively high levels of exporting to other locations, especially
exports of higher value added goods and services. In total though, even the most successful locations
will export no more than 20%-30% of overall outputs.

                                                                                                                                                                                    4
Plymouth generally lags behind the national average in terms of visible exports per capita . In 2002,
the value of visible exports in Plymouth amounted to ₤1,400 per capita, compared to an England
average of around ₤2,750. Plymouth therefore exports less locally produced goods and services than
the national average and indeed significantly underperforms relative to the most successful exporting
areas of the country, namely London and surrounding areas such as Reading and Milton Keynes.


3   State of the English Cities report, ODPM, 2006
4   Based on Plymouth Travel to Work Area, 2002. Source: State of the English Cities report, ODPM, 2006.
                                                                                     Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 11



Plymouth’s export performance is, however, in line with cities such as Hull, Sunderland and
Newcastle, and is actually better than a number of major centres such as Sheffield, Liverpool,
Norwich, Brighton and Bournemouth.

Economic Activity
The productivity of a location is also directly related to the number of individuals who are active in the
workforce. High levels of economic activity are directly related both to the productivity and
competitiveness of an area. Where economic inactivity is high, this indicates a loss of productive
resource available to the local business base, therefore impacting negatively on overall economic
performance.
              % who are economically active, working age, 1999-2004                                             % who are economically inactive, working age, 1999-2004

 83                                                                                                 25

 82

 81                                                                                                 20

 80
                                                                          England and Wales                                                                                 England and Wales
                                                                                                    15
 79                                                                       South West                                                                                        South West
 78                                                                       Devon                                                                                             Devon
                                                                                                    10
                                                                          Plymouth                                                                                          Plymouth
 77

 76                                                                                                 5
 75

 74                                                                                                 0
       Mar 1999-      Mar 2000-   Mar 2001-    Mar 2002-      Mar 2003-                                   Mar 1999-    Mar 2000-     Mar 2001-   Mar 2002-      Mar 2003-
       Feb 2000       Feb 2001    Feb 2002     Feb 2003       Feb 2004                                    Feb 2000     Feb 2001      Feb 2002    Feb 2003       Feb 2004


Source: Labour Force Survey


In the case of Plymouth, economic activity rates tend to be lower than the national average and are
consistently lower than the regional average. As such, the Plymouth economy will be disadvantaged in
terms of the relative productive capacity of the available labour force. Lower rates of economic activity
will impact upon the ability of the business base to secure the appropriate number and level of skilled
employees.

Given that the key aspiration for Plymouth is an overall increase in the scale of employment in the city,
prospective investors, as well as existing employers, will need to see high levels of economic activity
in order to give them confidence that the local labour market demonstrates the characteristics required
for successful business performance. A key goal for local stakeholder is therefore to establish a higher
overall rate of economic activity across all of Plymouth’s communities.

Incomes
The level of productivity and value added in a location is also often reflected in the incomes available
in that location, with high GVA generating activities tending to result in higher relative incomes.
          Mean gross weekly pay (£) by residence, total employed, 2005                                     Mean gross weekly pay by workplace, total employed, 2005

 500                                                                                          450

 450                                                                                          400          427.5
 400       430.0                                                                              350                            377.9                                              378.0
 350                          389.2                                                                                                                                 343.6
                                                                                              300
                                                                 352.2      345.8                                                                311.1
 300                                           334.2
                                                                                              250
 250
                                                                                              200
 200
                                                                                              150
 150
                                                                                              100
 100
 50                                                                                           50

  0                                                                                            0
        England and        South West    Cornwall and Isles      Devon    Plymouth                       England and      South West       Cornwall and Isles       Devon     Plymouth
          Wales                              of Scilly                                                     Wales                               of Scilly



Source: Annual Survey of Hours and Earnings


Earnings in Plymouth are generally below national levels in terms of both employment based and
residence based incomes. This suggests that the range of economic activities that dominate the
Plymouth economy are generating lower levels of GVA than is the case nationally. In addition,
workplace based incomes in the City are on average less than employment based incomes. This
specific observation suggests that a proportion of relatively higher income jobs are being taken up by
                                                   Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 12



individuals who do not reside in Plymouth and that lower paying jobs are more likely to be left to local
people. This is likely to be a reflection of the skills base and employability characteristics of the
Plymouth population, as well as a possible tendency for people to move to locations outside the City
as their incomes rise.

Of the 56 urban centres included within ODPM’s State of the English Cities report, Plymouth lies close
to the bottom of the list in terms of gross disposable household income5. Households in Plymouth
have levels of disposable income similar to Bradford, Coventry and Doncaster and actually higher than
a few key centres including Sunderland and Stoke. Plymouth’s disposable income levels are,
however, considerably below those of other locations within the South West region, including
Gloucester, Swindon, Bournemouth and Bristol.

The development of a more productive and competitive business base within Plymouth should be
demonstrated in part by a greater availability of higher income employment opportunities. It is vitally
important that, in order to generate a long-term, sustainable impact on the City, these opportunities
are both available to and taken up by local people who continue to live within the City boundary.




5   Data for relevant Travel to Work Areas, 2003
                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 13



Critical Success Factors

[2] Business &Enterprise
The Government has identified enterprise and entrepreneurship as key drivers of productivity growth
              6
in the economy . New firms are associated with the introduction of new technologies, innovative ways
of working and increased competitive pressure on other firms. Domestic and international research
has shown that new firms entering the market account for a significant part of total productivity growth.

Employment
A major objective for the Plymouth economy over the next decade and beyond is that its business
base successfully generates significant additional employment, which is sustainable over the long
term. This is a major challenge for Plymouth; in recent years, in common with the national economy,
the City has experienced a slight decline in overall employment levels. In addition, the employment
rate in the City has consistently been below the national rate and significantly below the regional
position. The challenge for Plymouth is two-fold: to generate employment growth and to increase the
employment rate

                       % who are employed, working age, 1999-2004                                                     % change in total employment, working age, March
                                                                                                                       2001/February 2002 - March 2003/February 2004
    82
                                                                                                    1
    80
                                                                                                  0.8                                                            0.90
    78
                                                                                                  0.6
    76                                                                        England and Wales
                                                                              South West          0.4
    74
                                                                              Devon               0.2
    72                                                                        Plymouth
                                                                                                    0
    70                                                                                                       England and Wales       South West                 Devon             Plymouth
                                                                                                  -0.2
                                                                                                                   -0.13
    68
                                                                                                  -0.4                                  -0.51
    66                                                                                                                                                                             -0.68
                                                                                                  -0.6
         Mar 1999-     Mar 2000-      Mar 2001-   Mar 2002-    Mar 2003-
         Feb 2000      Feb 2001       Feb 2002    Feb 2003     Feb 2004                           -0.8


    Source: Annual Business Inquiry                                                                Source: Labour Force Survey



Business Formation & Investment
In contrast to other parts of the South West region, net rates of new firm formation in Plymouth have
remained sluggish, despite a relativity large increase in the size of the overall business base in recent
years. In particular, the number of businesses operating per head of population is much lower in
Plymouth than the position regionally and nationally. This suggests that the City’s economy is less
entrepreneurial overall and has a tendency to rely on relatively large employers to supply the majority
of employment opportunities.


                % change in VAT registered business stock, 1998-2004                                                  Number of VAT registered business stock per 10,000
                                                                                                                                   population, 1998-2004
    9
                                                                                                   450
    8
                                                                                        8.12       400
    7
             7.19                                                                                                                                                       408 406
                                                                                                   350
    6                                                                                                                                               362 354
                                   6.39                                                            300                            331 339
    5                                                                                                                 308
                                                                                                                295
                                                                                                   250
    4                                                                  4.89
                                                                                                   200
    3                                               3.73
                                                                                                   150
    2                                                                                                                                                                                152 163
                                                                                                   100
    1                                                                                               50
    0                                                                                                    0
         England and         South West       Cornwall and Isles      Devon           Plymouth                 England and       South West     Cornwall and Isles       Devon       Plymouth
           Wales                                  of Scilly                                                      Wales                              of Scily


Source: DTI




6   Productivity in the UK3 – The Regional Dimension’ HM Treasury and DTI
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 14



Small FDI projects have been predominant in Plymouth since the 1980s and call centres have been
the only sector to do well. Additionally, Plymouth faces competition from Eastern Europe and the Far
East for mobile manufacturing projects. The City’s ability to generate additional employment through
new investment is constrained by a lack of awareness in the marketplace regarding Plymouth’s
investment ‘offer’ and a perception of peripherality and inaccessibility. These concerns put Plymouth
in a difficult position regarding competing for investment and suggest a focus on sectors where the
City has a genuine competitive advantage.

                    Business Start Ups per 1,000 population, South West sub-
                                         regions, 2005

                      m rse
                    So e   t
            o w ll
           C rn a & IoS
                u e o th
              Bo rn m u
                    Wiltshire
                       o a
                      T rb y
                 u    e
               So th W st
                       ee
                      D v n
   Ba      E  m rse
     th & N So e   t
          lo ce
         G u   stershire
                       o
                      D rset
                      Bristol
                      in o
                    Sw d n
                         lo
                     S. G s
                         o
                       Po le
                        o th
                    Plym u

                                0      5              10              15             20                 25


 Source: Barclays

The Barclays business start up database which focuses on new business accounts and enquiries
picks up significant numbers of new businesses that fall below the VAT registration threshold. Data
from Barclays shows that Plymouth experiences the lowest rate of new business formation in the
South West region. It should be borne in mind that high rates of business formation in the more rural
parts of the region may include a substantial element of ‘necessity’ related business activity, due to a
lack of other employment opportunities locally.


               % change in VAT registered business stock by industry, 1998-
                                          2004
 50
                                                                                      England and Wales

 40                                                                                   South West

                                                                                      Cornw all and Isles of
 30                                                                                   Scilly
                                                                                      Devon
 20                                                                                   Plymouth

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The challenge for stakeholders in Plymouth is to bring about an increase both in the number of new
businesses forming and surviving long term, but beyond this, to encourage the development of small
and micro business that can play a key role in a ‘sustainable business development’ approach.
                                                  Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 15



Critical Success Factors

[3] Knowledge, Technology & Innovation
Technology and knowledge have become key drivers of economic growth. An indicator of the ability of
the Plymouth economy to adapt to new technologies is the share of jobs in high technology sectors;
                                                                                   7
currently this share is significantly lower than regional and national averages . Knowledge rich
locations are more productive, more innovative and can continue to draw in higher levels of
investment; wealth creation in Plymouth is currently constrained by the relative under-representation
of employment in high-tech, knowledge rich industries.


                    % of employees in Technology and Knowledge Intensive
                                       Industries 2004

    25

                 23.28
    20
                                    19.91

    15                                                                      16.52                16.37

                                                        12.92
    10


     5


     0
             England and          South West     Cornwall and Isles         Devon              Plymouth
               Wales                                 of Scilly


Source: Annual Business Inquiry


In recent years there has been a decline in employment in technology and knowledge based activities
in Plymouth. This may be related to a continuing decline in manufacturing and dockyard related
activities, all of which are likely to have technology related inputs.

Stakeholders face a real challenge to increase the proportion of jobs within the Plymouth economy in
high tech and knowledge based sectors. Key levers will include investing in workforce skills, greater
R&D activity, investment in ICT and developing new and better links between private companies, the
University of Plymouth and other centres of excellence. Local partners must also seek to address the
possible capacity constraints that may be experienced by the many small businesses in Plymouth, in
terms of taking up and adapting to new technologies.

                  Change in % of employees in Technology and Knowledge
                              Intensive Industries, 2001-2004

    25
    20
                                                        20.76
    15
    10
     5            -1.38                                                      0.24
     0
     -5      England and          South West     Cornwall and Isles         Devon              Plymouth
               Wales                -5.19            of Scilly
    -10
    -15
    -20                                                                                         -24.25
    -25
    -30


Source: Annual Business Inquiry




7
 OECD definition of Technology and Knowledge Intensive Industries – Pharmaceuticals, Office Machinery and
Computers, Aerospace, Electronics-Communications, Scientific Instruments, Post and Telecommunications,
Finance and Insurance, Business Activities, Motor Vehicles, Chemicals, Other Transport Equipment, Non-Electrical
Machinery
                                                     Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 16



Innovative Capacity
The scale of innovative activity taking place within a local economy is often reflected in the number
and rate of patent applications. This rate will be higher where there is a large amount of activity
resulting in new product or service development. Within the South West region, the highest rates of
patent application per head are to be found in Bristol, Swindon, Bath and in Wiltshire. Plymouth,
                                                                                                 8
alongside Torbay and Bournemouth, has the lowest rate of patent applications in the region . This
suggests that locally based businesses and other institutions are not engaging in the types of activities
necessary to yield new products or services and release these onto local, national and international
markets.

The volume of research activity undertaken within a city’s higher education and associated institutions
can also be a key driver for innovation and therefore the achievement of a more competitive business
base. Access to grant funding for research is often a major determinant of the innovative and
research capacity of a particular location. In Plymouth Higher Education Funding Council funds
                                                                9
acquired by local institutions amount to around ₤10 per capita . This level of funding is considerably
less than other university cities in the UK; Cambridge for example achieves a level close to ₤300 per
capita, while Bristol is around ₤55 per capita.

The development of R&D and general innovation capacity across the business base is important to
future economic performance. Plymouth based businesses must be supported in their attempts to
develop, promote and export new products and services. There is a key role to be played here by
intermediary and ‘catalytic’ organisations such as the University of Plymouth.




8
    Regional Economic Strategy 2006-2015, Evidence Base, SWRDA 2005
9
    Figures for 2005-06, from State of the English Cities, ODPM 2006
                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 17



Critical Success Factors

[4] Skills & Learning
High level skills are a key determinant of economic growth. Higher skilled workers are essential to
both introducing and operating advanced production techniques. They adapt faster to new
innovations, are more flexible generally, play a key role in knowledge creation and are more able and
likely to receive additional training at work.



An increasing proportion of the jobs in the economy require a high level of skill. Baseline analysis tells
us that, despite reasonable performance at GCSE level, Plymouth has a lower share of people
employed in higher-level occupations than the regional average. Furthermore, the workforce in
Plymouth is less well qualified than the national average and less well qualified than neighbouring
counties within the region. Plymouth does not currently possess a skills base of sufficient
quality to enable the City’s development as a world-class knowledge based economy. This
process is just not possible with the current level and quality of qualifications and skills available. In
order to compete effectively with other areas, Plymouth must deliver a ‘step-change’ in the current
levels of workforce skills and create a labour market that will retain more of the young people that
perform well at school and in post 16 FE Education.


High Level Qualifications
Plymouth faces a number of very important issues regarding the local skills and learning landscape. In
particular, there is a much lower proportion of the City’s workforce in possession of Level 4
qualifications (degree level or equivalent) than is the case nationally or regionally. This level of
qualification is often taken as a measure of the knowledge intensity of a location’s economy, with a
higher incidence of degree level qualifications within the workforce suggesting a more knowledge
intensive business base locally, as well as robust education, learning and training infrastructures.
Although this particular skills situation is improving over recent years, there is still a considerable gap
between possession of high-level qualifications in Plymouth compared to national and regional
benchmarks. The relatively lower incidence of degree level and equivalent qualifications within the
local workforce suggests that the City is less well placed than others to attract new, technology and
knowledge intensive forms of investment, or to take advantage of advances in business and
management process.



                 % qualified to NVQ Level 4, working age, 1999-2004                                                % with no qualifications, working age, 1999-2004

 30                                                                                               18

                                                                                                  16
 25
                                                                                                  14

 20                                                                                               12
                                                                              England and Wales
                                                                                                                                                                         England and Wales
                                                                              South West          10
 15                                                                                                                                                                      South West
                                                                              Devon
                                                                                                  8                                                                      Devon
                                                                              Plymouth
 10                                                                                                                                                                      Plymouth
                                                                                                  6

  5                                                                                               4

                                                                                                  2
  0
      March 1999 - February   March 2001 - February   March 2003 - February                       0
              2000                    2002                    2004                                     Mar 1999 - Feb 2000   Mar 2001 - Feb 2002   Mar 2003 - Feb 2004



Source: Labour Force Survey



This situation is compounded by the relatively low rate of graduate retention in the City. Plymouths’
Further Education (FE) and Higher Education (HE) sectors are successfully drawing in talented people
who study and gain qualifications in the City. The retention rate of these individuals is, however,
relatively low at present, despite the emerging and growing high-tech, knowledge based businesses
located in the Derriford area and in other parts of the City.
                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 18



The Skills Base
There is a higher proportion of the Plymouth workforce with no formal qualifications than is the case
nationally. This rate has been in decline over recent years and Plymouth’s position now compares
favourably with the Devon County and regional averages. The western and eastern flanks of the City
have lower levels of the workforce holding NVQ Levels 4 and 5 qualifications. There is a much greater
representation of this qualification level in communities immediately to the north of the city centre
(partly associated with the location of the university and its associated arts and culture activities). This
indicates an interesting spatial segmentation of the high-level skills base within the City,
suggesting that certain communities are much better placed than others to take advantage of any new
high skill opportunities that might emerge over time. Conversely, a number of communities, in
particular those in Devonport, Stonehouse and other westerly areas of the City, will be particularly
disadvantaged in being able to tap into new high value added employment or enterprise opportunities..




The performance of Plymouth’s schools sectors is currently close to the national average for both
GCSE and Key Stage 2 attainment. Despite this level of performance at school the Plymouth skills
base develops a noticeable differential with the national position at NVQ Level 4. A key challenge for
the City is to ensure that good performance at compulsory school level is maintained beyond the age
of 16
.
            % of 15 year olds achieving 5+ Grades A*-C, September                    % of Key Stage 2 Primary School pupils achieving Level 4+
              2001/August 2002 to September 2002/August 2003
                                                                               100
 60
                                                                                90
 58                                         59                                  80
 56                                                                             70

 54                                    56                                       60                                                         England
                           55
                                                                                                                                           Cornwall
 52                   54                                                        50
            53                                              53           53                                                                Devon
       52                                                           51          40
 50                                                                                                                                        City of Plymouth
                                                       50
 48                                                                             30

                                                                                20
 46
                                                                                10
 44
       England       South West   Cornwall and Isles   Devon        Plymouth     0
                                      of Scilly                                        English         Mathematics         Science


Source: DfES
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 19



It is vital for schools in Plymouth to play a key role in preparing young people for both the world of
work and giving them the ability to adapt to changing economic conditions. In addition, many
consultees have commented on the negative aspirational characteristics exhibited by groups of young
people in Plymouth. Again, schools play a key role in shaping aspirations positively and must be
supported in doing this as effectively as possible.

Workforce Development
Workforce development has emerged as a key issue amongst stakeholders, businesses and the
broader community. Consultation suggests that the City’s workforce, in general, does not possess the
necessary level of skills and qualifications to allow it to take full advantage of changing technology and
work practices.

In addition, many consultees felt that a great many businesses in the City struggle both to identify their
workforce development needs and then to meet these needs through accessing adequate or flexible
support services. There is potentially a greater role to be played here by the City’s FE sector. It is
vitally important that diverse communities – residential and business – can easily access and avail of
learning experiences that have both an individual, personal impact on well-being and an aggregate
economic impact on the entire City’s performance.

Investment in workforce development is directly related to demand for training and skills on the part
of the City’s employers. The nature and range of sectors that dominate the City’s economy currently,
as well as some weaknesses in the managerial and innovative capacity of some parts of the industrial
base, serves to suppress the overall demand for new skills and additional qualifications. If employers
can be supported in identifying skill needs and in sourcing and funding appropriate training, thereby
increasing the capacity of the City’s workforce, the overall productivity enhancement that occurs as a
result of this will further improve Plymouth’s competitive position.

It is also important that workforce development and educational collaboration with business supports
opportunities for business innovation in both product and process. As such, vocational skills
development must be matched by developing individuals’ skills in enterprise, creativity, ideas
development and communication, in order to maximise the opportunities for innovative capacity to
develop across the business base.

Learning Pathways
Consultation with key stakeholders, regeneration agencies and community representatives suggests
that there are weaknesses in Plymouth regarding the transparency and accessibility of learning and
training pathways. There are a number of gaps in the pathways that take individuals from
compulsory schooling through to further education, whether academic or vocational in nature, on to
higher education and various forms of continuing learning and training.

Once individuals have left a learning activity of some kind, it can often be difficult to find an access
point in order to go back into learning. It is thought by some that this is a particular problem for young
people in the more disadvantaged neighbourhoods of the City.
                                              Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 20



Critical Success Factors

[5] Key Centres
Competitive cities often contain particular nodes or locations that operate strongly in terms of their
economic components as well as their community and cultural characteristics. It is imperative that
these points operate collectively to maximise the economic performance of a city and do not indirectly
undermine each other through inappropriate forms of competition for investment and resources.
Furthermore, each key node or centre should ideally reinforce the impact of the others through
complementary and supportive forms of economic activity.

Plymouth, like all urban areas, is characterised by a number of key economic nodes (illustrated
overleaf), all of which are currently experiencing varying degrees of development:
•   The City Centre has historically always operated as a key economic node for the City. The
    development of the Drake’s Circus retail centre, as well as the proposals contained within the
    MacKay vision will reinforce the role of the City Centre as a wealth generator and location for
    diverse business operations. Indeed, the Mackay vision requires the development of the City
    Centre as a multi-use, multi-functioning economic location as a means of generating a more
    sustainable, higher value economic outcome for the City. Areas close to the City Centre such as
    Millbay, Sutton Harbour and Devonport have also been identified as key development locations
    that can act as a platform for further, high value added economic and business development.
•   The Derriford area to the north of the City Centre has experienced an impressive degree of
    development over the last decade and has clearly marked itself out as a knowledge ‘campus’ of
    regional, if not national, importance. The presence of the College of St Mark and St John, the
    Peninsula Medical School, Derriford Hospital, Plymouth Airport, the International Business Park
    and the Tamar Science Park have transformed this area into a particularly high quality business
    and services hub with obvious potential for further growth and development.
•   There are a number of key developments to the east of Plymouth that will also drive the economic
    future of the City. The Langage area contains some of the greatest development potential as an
    employment site and provides one of the key locations within the City for the attraction of high
    value added inward investment. The development of the new Sherford settlement to the east of
    Plymouth will also act as a spur to the ongoing economic growth of the city, offering a location for
    new communities to reside and therefore a new skills base, as well as supporting demand for
    additional goods and services.
•   The area around Devonport and Stonehouse is currently undergoing a substantial degree of
    both physical and non-physical development. Initiatives including Devonport NDC, the Plymouth
    NRF Programme, as well as the Stonehouse and West Hoe Masterplan are supporting a number
    of economic development and regeneration initiatives. The objective of these developments and
    programmes is to directly address socio-economic disadvantage and to increase the economic
    potential of the communities and businesses located in these areas.
•   There are a number of other key industrial and business locations across the City that
    continue to act as major economic drivers and generators of prosperity for the City. Key areas to
    the North of the City Centre include Estover and Southway. As noted above, the eastern part of
    the City contains a particularly large volume of industrial and business space, particularly around
    Langage, Newnham and Valley Road. In the west of the City, Ernesettle, Honicknowle and
    Burrington are key sites, while to the immediate east of the City Centre, Cattedown continues to
    offer opportunities for further business development and employment generation.
•   The emerging arts and cultural quarter around the University of Plymouth on North Hill adds
    another dimension to this spatial configuration of economic activity hubs. Although much closer to
    the City Centre than to Derriford and other key hubs, this area may possibly act as a link between
    the City Centre and more northerly parts of the City.

As far as the future economic prosperity of Plymouth is concerned, it is imperative that these key
centres grow and develop in a manner that is fully complementary. It is vitally important that centres
                                              Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 21



do not enter into an unnecessary and inappropriate level of competition with each other for investment
and resources..

The two key nodes identified by the strategy are the City Centre and Derriford, both areas will
provide a major impetus to the City’s development. There is a clear need to ensure that connectivity
and access are maximised to realise their full development potential.
                                                                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 22




     Plymouth
                                                      Northern Industrial and Business
Key Economic Nodes                                                   Areas
                                                       Including: Estover and Southway




                                                      Derriford Area
    Western Industrial and Business               •   College of St Mark & St John
                  Areas
    Including: Ernesettle, Honicknowle
                                                  •   Tamar Science Park
              and Burrington                      •   Peninsula Medical School
                                                  •   International Business Park             Eastern Industrial and Business
                                                  •   Derriford Hospital                                    Areas
                                                  •   Plymouth Airport                        Including: Langage, Newnham and
                                                                                                          Valley Road




                                                                         University and
                                                                      Arts/Cultural Quarter
                                                                      • Museum and library




                      Devonport & Environs                                                      Cattedown Industrial
                             Dockyard             City Centre                                   and Business Areas
                      Stonehouse regeneration   • Retail Sector
                                                • Leisure and recreational amenities
                                                • Visitor attractions
                                                • Local authority functions
                                                • Waterfront & Barbican
                                                • Transport interchanges
                                                • Millbay & Sutton Harbour
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 23



Critical Success Factors

[6] Participation
High levels of economic participation are vital to city competitiveness. Urban locations will achieve
high levels of growth where there are few apparent constraints to individual and community
participation in employment, learning and leisure activities. Where there are significant concentrations
of factors that exclude or constrain personal opportunities, this will suppress the overall performance
of the city.

A review of the Indices of Deprivation 2004 and a range of other data tell us some important
messages about Plymouth. The first of these is that the city is located within a relatively prosperous
region with household incomes above the UK average and with fewer deprived areas than other
regions.

Within Plymouth the story is completely different, deprivation is widespread, ranking it amongst the six
most deprived local authority districts in the region. Higher than average levels of unemployment and
economic inactivity, low qualifications and low earnings are also prevalent amongst some segments of
the city’s population. Furthermore the proportion of households on income support, housing benefit
and incapacity benefit is also higher than the regional and national averages.




As is common in areas where there are high incidences of worklessness and social exclusion,
communities suffer from low levels of confidence and low aspirations. People find it increasingly
difficult to break the cycle of benefit dependency and therefore become vulnerable to poverty, poor
health, and suffer disproportionately from issues such as bad environmental quality (traffic, noise and
pollution) and crime. This has a number of important knock-on effects on the economic performance of
the city. The most obvious effect is the impact on the pool of skilled and motivated labour locally
available for businesses looking to expand or locate in the city. Other effects include a negative impact
upon the perceived attractiveness of the city centre as a place to live and work.
                                                            Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 24



                                                                            10
The mean overall IMD score (2004) for Plymouth is 26 . This score, although higher than some
similarly sized urban centres such as Ipswich, Peterborough, Preston and Brighton, is also
considerably below many other key locations including Liverpool, Hull, Sunderland, Newcastle,
Birmingham, Bradford, Middlesbrough, Stoke, Doncaster and Wakefield.

A specific number of neighbourhoods within the City of Plymouth are characterised by significant
deprivation across a range of indicators. In particular, Stonehouse, Devonport, the City Centre, North
Prospect and Barne Barton exhibit significant deprivation in terms of educational attainment, crime,
housing and worklessness. Overall, Stonehouse and Devonport, followed by the City Centre, are the
most deprived neighbourhoods in the City.


    Plymouth Neighbourhoods Index of Deprivation 2005

                  Education          Crime           Housing           Health      Worklessness All themes
                                                                                                      Position of
                                                                                                     Lowest whole
Neighbourhood                                                                                       or part Scoring
    Areas
              Score Rank Score Rank Score Rank                     Score Rank Score Rank Score Rank IMD 2004 SOA
                                                                                                        within
                                                                                                    neighbourhood
Stonehouse       84.31         3 51.30          2 53.23        18 82.39           1 100.00         1 74.25   1     3%
Devonport        94.48         1 38.40          3 50.11        25 78.84           4 90.26          2 70.42   2     3%
City Centre      77.98         5 100.00         1 63.74          7 59.83         12 47.16          8 69.74   3     3%
North
Prospect         90.46         2 33.30          6 51.53        22 80.70           2 71.97          3 65.59   4     3%
Barne Barton 75.26             6 36.90          4 57.54        13 77.01           5 53.84          6 60.11   5     3%
Efford           78.79         4 17.10        15 84.12           1 69.93          6 36.70         12 57.33   6    10%
East End         64.69       12 36.90           4 70.07          3 61.43         11 49.86          7 56.59   7    10%
Keyham           67.46       11 15.50         17 69.29           4 80.12          3 23.98         20 51.27   8    10%
Morice Town 60.67            13 29.00           8 50.46        24 52.97          19 57.00          4 50.02   9    10%
Ernesettle       74.07         7 18.10        14 46.73         27 56.39          13 44.39          9 47.93   10   20%
St Budeaux       69.87         9 15.20        20 58.05         12 66.64           8 29.26         16 47.80   11   20%
Honicknowle      71.84         8 21.70        12 45.31         31 67.40           7 29.70         14 47.19   12   10%
Lipson &
Laira            59.10       15 14.30         22 79.50           2 48.50         23 29.66         15 46.21   13   20%
Ford             56.38       17 22.70         11 61.14         10 66.24           9 24.22         19 46.14   14   20%
Stoke            39.09       32 31.90           7 51.87        21 63.16          10 42.82         10 45.77   15   20%
Whitleigh        69.75       10 21.10         13 37.02         36 55.55          14 37.87         11 44.26   16   10%
Mutley &
Greenbank        54.13       21 24.40         10 34.76         39 48.88          22 56.42          5 43.72   17   20%
Mount Gould 51.40            22 13.70         23 57.24         14 53.17          18 36.09         13 42.32   18   10%
Ham              56.06       20 25.20           9 44.19        34 54.59          15 26.30         18 41.27   19   10%
Source: Plymouth 2020 Partnership, Social Research & Regeneration Unit – University of Plymouth


The future economic performance of the City requires a high degree of participation within all
communities and will therefore necessitate a particularly intensive effort to enable the most deprived
communities to realise higher and more sustainable rates of economic activity. This will involve a
focus on several key factors.


•      Focussing on Economic Exclusion. Addressing these persistent issues will require sustained
       action across a number of different fronts, some of which feature in other elements of this
       strategy, such as improving the competitive business environment, boosting skills, education and
       workforce development. There will also need to be a set of measures targeting social exclusion,
       on a neighbourhood level. These measures must ensure that the life chances of children, young


10   State of the English Cities report, ODPM 2006. Higher IMD scores are associated with relatively higher levels of
deprivation.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 25



    people, adults and the elderly across Plymouth and particularly those from priority
    neighbourhoods are significantly improved.


•   High levels of worklessness. Worklessness including both unemployment and economic
    inactivity (where people no longer seek work due to ill health, caring responsibilities, lack of
    motivation) is very high in specific neighbourhoods including those adjacent to the city centre.
    Even in times of strong economic growth across the city, when there are more vacancies than can
    be filled, worklessness still persists. In addressing worklessness there is a need to prioritise those
    groups most affected and to understand where cultural and family care factors restrict access to
    opportunities. Patterns of worklessness are often repeated over generations, as children with
    parents out of work are more likely to become economically inactive than their counterparts with
    parents in work.
                                                                                       England and Wales
      % claimants, working age, February 2004 - November 2005                          South West
                                                                                       Cornw all and Isles of Scilly
                                                                                       Devon
      7.0
                                                                                       Plymouth
                                                                                       Budshead
      6.0                                                                              Compton
                                                                                       Devonport
                                                                                       Drake
      5.0                                                                              Efford and Lipson
                                                                                       Eggbuckland

      4.0                                                                              Ham
                                                                                       Honicknow le
                                                                                       Moor View
      3.0                                                                              Peverell
                                                                                       Plympton Chaddlew ood
                                                                                       Plympton Erle
      2.0
                                                                                       Plympton St Mary
                                                                                       Plymstock Dunstone
      1.0                                                                              Plymstock Radford
                                                                                       St Budeaux
                                                                                       St Peter and the Waterfront
      0.0
                                                                                       Southw ay
              February 2004   November 2004    February 2005    November 2005          Stoke
                                                                                       Sutton and Mount Gould

    Source: Claimant Count


•   Barriers to employment. Skills levels in city centre neighbourhoods in Plymouth are low relative
    to local authority area or the region and much of the worklessness and underemployment in the
    area can be attributed to a mismatch between the skills that employers demand and those
    available in the local labour force. Low skills are a legacy of a number of factors including poor
    achievement in schools and low aspirations; low demand for skills by many employers; little
    financial incentive or progression linked to improved skills levels in many jobs; and employers
    who are unwilling to train staff in low skills occupations for fear they will leave once they have the
    skills to gain employment elsewhere. The role of the FE sector is crucial in engaging residents
    and building their skills and confidence levels to a level where they can enter the job market.
•   Low levels of confidence and motivation. There is a range of additional issues other than low
    skills attainment that create barriers to people securing work and which are especially significant
    in the context of Plymouth’s priority neighbourhoods. These include low levels of confidence, low
    motivation to apply for employment opportunities that are low paid; the effect of generational
    unemployment and limited perceptions of the employment market.
•   Ethnic diversity and integration. Overall, Plymouth has a relatively low share of its population
    accounted for by non-white groups. Since the last Census in 2001, it is likely that the population of
    the City has become more diverse overall, with the arrival and growth of a number of new groups
    within the City. In most urban centres, non-white populations tend on average to experience
    greater levels of economic inactivity.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 26




                              White/Non-white Segregation Index, 2001

            Bradford

           Leicester
               Derby

             Preston
      Middlesbrough

               Stoke

           Wakefield
          Doncaster

       Peterborough
                   Hull

         Sunderland
          Gloucester

              Bristol
            Coventry

           Plymouth
             Ipswich
       Bournemouth
            Swindon

                          0    0.1      0.2       0.3          0.4          0.5   0.6      0.7       0.8
                                                        Segregation Index

    Source: ODPM

    Statistically, there is less residential segregation of white and non-white groups within Plymouth
    than in other urban centres in England. This suggests that, in general, communities may be
    relatively more integrated in Plymouth than is the case in other cities. This is also, however, likely
    to be a function of the relatively low non-white population overall in Plymouth.
•   Care responsibilities. For many people in priority neighbourhoods there are major barriers
    relating to non-employment responsibilities. The most important of these is care responsibilities,
    involving both children and adults. There are a high number of lone parents and a further group of
    carers who need/want to work, but care costs and responsibilities restrict their opportunities. A
    related barrier is the time and costs involved in travelling to employment locations. In some
    instances, care responsibilities restrict the distance which people can travel.
•   Getting employment and skills support to those who need it. It is important to understand that
    worklessness affects diverse groups with different needs for employment and skills support.
    Workless individuals can be usefully categorised into four groups, each with different needs for
    employment and skills support: unemployed, registered with the Job Centre Plus; unemployed,
    without access to mainstream services, such as asylum seekers and immigrants or those who are
    reluctant to receive Government support; economically inactive, who are able to work; and
    economically inactive, who are unlikely to ever to be able to participate fully in economic life.
    While interventions to break down barriers to employment and skills will address many of the
    needs of unemployed job seekers other groups face additional barriers to economic activity.
•   The changing skills requirement. The skills and qualification levels required for all types of jobs
    has risen, a consequence of increased use of technology and rising consumer expectations with
    regard to products and services. This has resulted in many lower skilled jobs requiring some form
    of qualifications. There is an ongoing need to continually up-skill the workforce and for individuals
    to invest in their own development to maintain and improve their employability. From basic literacy
    and numeracy to generic technical skills there is a need to ensure access especially in the priority
    neighbourhoods.
•   Disengaged young people are a priority. In the Neighbourhood Renewal area and Devonport
    NDC wards and other areas across Plymouth, a particular concern has been raised around the
    increasing number of young people becoming disengaged from the mainstream economy. The
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 27



               11
       ‘NEET’ group are young people who have not made a successful transition from compulsory to
       post-compulsory education or work. As a result, this group is extremely vulnerable to life-long
       problems of low skills, unemployment and low income. This is a priority group in terms of tackling
       worklessness in the area and ensuring that rates of economic engagement can be increased.

       A key aim of this strategy should be to create a more joined-up support system to address the
       needs of this group. This should include tie-in to the compulsory education system to help
       increase rates of engagement from a point before completion of compulsory education, which
       may also assist in raising school achievement rates.




11
     Not in Employment, Education or Training
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 28



Critical Success Factors

[7] Leadership
Competitive cities successfully create the right physical and non-physical conditions for economic
prosperity. These conditions need to be obvious to potential investors, new residents and visitors in
order to attract them to Plymouth rather than alternative locations. Successful cities brand themselves
well and clearly express their assets to a global audience.

Current research shows that urban locations, certainly in Europe, are converging in terms of the
components that they offer to potential investors, especially around business costs and infrastructure.
The components that make the difference are increasingly related to quality of life and to the image of
a location. This is where Plymouth, given its environmental strengths and its rich maritime history,
might just have the edge. This, of course, depends fully on the ‘brand’ being designed and expressed
in the most effective and sophisticated manner possible

During the course of the consultation programme undertaken as part of the strategy development
process, the impact of leadership and governance structures has emerged as a strong and consistent
theme, especially regarding the effective delivery of the Mackay Vision. This is manifested in terms of
the absence of a strong delivery culture amongst key implementation agencies, proliferation of
numerous but fragmented partnership arrangements, lack of effective private sector leadership in the
delivery process, and absence of a clear and strong branding of the Plymouth ‘offer’. These apparent
weaknesses in Plymouth’s strategic leadership and governance capacity are most strongly evident in
the perceived lack of a sense of urgency to address the City’s key economic competitiveness and
renewal priorities.

Strong civic leadership and clear strategic direction are critical to the successful delivery of both the
new economic strategy for the City and the Mackay vision. The spatial strategy that has been
developed for the City needs to be underpinned by a robust economic strategy that is rooted in
market fundamentals. This implies the establishment of an institutional framework that has, at its
heart, a central role for the private sector, acting as a driver of the delivery strategy rather than its
more traditional advisory role. The leadership role of the public sector also needs to be clearly
expressed as an enabler of the vision (e.g. through investment in economic infrastructure) and
promoting a consistent brand image of the Plymouth ‘offer’. The process of developing the delivery
strategy in itself can be seen as a platform for leadership capacity building in the City.

In addition to strong leadership a significant uplift in the current resources devoted to economic
promotion and development will also be required. This must include additional resources for working
with existing investors to encourage new investments aimed at moving up the value chain of goods
and services.
                                                                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 29




THE STRATEGIC FRAMEWORK

The Plymouth Economic Strategy must tackle the key challenges set out above. This process will be achieved through addressing a set of strategic themes within a logical
economic development framework.

                                                                              Plymouth Economic Strategy - Framework
                                                                           Plymouth Economic Strategy          - Framework



                                                                                       Plymouth City Vision
              By 2020, Plymouth will be one of Europe’s finest, most vibrant w                       aterfront cities, where an outstanding quality of life is enjoye                              d
                                By 2020, Plymouth will be one of Europe’s finest, most vibrant waterfront cities, where an outstanding quality of life is enjoyed by
                                                                               can be “healthy, wealthy, safe and wise”
                                                       by everyone, where allwhere all can be “healthy, wealthy, safe and wise”
                                                                   everyone,




                                                    Strategic Objective:             “Developing a prosperous economy”


                                                                                          Theme Areas
                 Business                                    Skills                                Centres                         Participation                           Leadership
            Critical Success Factors                Critical Success Factors                Critical Success Factors             Critical Success Factors               Critical Success Factors
     • Productivity &                           • A high quality,                       • A range of well                    • Inclusion and access for           • Delivery
       Competitiveness                            adaptable skills base                   connected centres and                all communities                    • Coordination and
     • High levels of Gross Value               • High levels of                          nodes encompassing                                                        championing
       Added (GVA)                                innovation                              complimentary and                                                       • Image & Branding
     • A diverse and growing                    • A positive and                          mutually reinforcing
       business base                                                culture
                                                  aspirational culture                    components of the
     • A high proportion of                                                               economy
       employment in knowledge
       based activities




                                                                                                      Actions
             Projects &                              Delivery                                                                  Linkages, Synergy &                              Priorities &
             Initiatives                         Arrangements &                                     Funding                        Best Practice                                Timescales
                                                     Vehicles
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 30




theme 1
Business
This theme area addresses the following critical success factors for Plymouth:

1.   Productivity & Competitiveness
     High levels of Gross Value Added (GVA)

2.   Business & Enterprise
     A diverse and growing business base

3.   Knowledge & Technology
     A high proportion of employment in knowledge based activities and innovation within businesses

The focus of the actions contained below is to achieve a diverse and growing business base for
Plymouth, this diverse business base is critical to achieving the City of Ideas concept . This section
discusses why and how Plymouth should generate investment opportunities and increase its
entrepreneurial abilities. While the short term focus for Plymouth should be to create a mixed base of
high and low value added activities, its purpose in the long term should be to allocate a high proportion
of its workforce in knowledge based activities to achieve high levels of GVA

In this context, the Critical Success Factors relating to Business & Enterprise and Knowledge &
Technology can be considered as critical inputs to achieving the longer term outcome of improved
Productivity & Competitiveness. Indeed, the successful delivery of all the critical success factors
identified within the Plymouth Economic Strategy will ultimately be manifested in securing improved
productivity and competitiveness as measured through high levels of GVA.

In the remainder of this section we have focused attention on the actions required to deliver improved
performance against the Critical Success Factors relating to Business & Enterprise and Knowledge &
Technology. These two factors are highly integrated and need to be considered together in terms of
how they drive improved economic competitiveness for Plymouth. The issues and actions to be
considered are both cross cutting and sectorally focused, and these are considered in turn in the
action plans. First it is important to understand the drivers of economic growth and competitiveness in
Plymouth, the competitive advantage of its key sectors, and the role that a sectoral approach to
economic growth can play in securing long term improvements to competitiveness.

INTRODUCTION & RATIONALE
The new agenda for Plymouth’s future envisages a substantial increase in population (from some
240,000 currently to some 300,000) with the creation of some 17,000 new jobs by 2026. A small
number of key sectors are likely to make a substantial contribution to the achievement of employment
growth through a combination of increased jobs within existing employers in the city, new jobs linked
directly to the economic growth of the city, or genuinely mobile jobs attracted to the city.

Of course, new actions and initiatives must be taken to improve the Plymouth investor offer – both the
generic offer and the individual sector offer. This was highlighted in the Plymouth Business Growth
Strategy:

 “In essence it seems to fall way short of its potential offer for lifestyle, workplace and urban attractor
   that this uniquely positioned and naturally endowed waterside city should be able to provide to a
                                           waiting population”
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 31



“The decline of the youth population highlights wider concerns that Plymouth is not performing the role
of an economically sustainable city”.

To develop an appropriate sector strategy for Plymouth and provide credible suggestions for
improving the investor offer, we need to start by analysing:

    1.   The sector market context for both inward and indigenous investment; and

    2.   The key location factors that influence investment decisions.

A summary of the fundamental changes that have been taking place in the regional and national
inward investment market are presented in Appendix B. In terms of how the market trends are
expected to take shape in the future, given our experience, we believe that although the UK still
remains one of the best performers in the whole of Europe for attracting inward investment, the future
market in this country is likely to be characterised by:

•   Growing business pressures to push activities (even high value added goods and services) to
    lower cost countries;

•   Even greater competition (both from elsewhere in the UK and internationally) for areas like
    Plymouth to win new investments and re-investments; and

•   Increasing policy emphasis by the city regions in the UK to promote their locations for investment
    with a move away from just inward investment to a broader strategy embracing inward
    investment, retailing, culture, leisure and tourism.

For Plymouth, this may mean that as inward investment from high tech sectors is very competitive,
these are unlikely to produce the quantity of jobs required by the city if it is to realise its growth
potential. Investment from existing business, particularly in the manufacturing sectors will be an
important source of projects. The challenge will be to embed existing investors, through investor
development initiatives and move them further up the value chain. Additionally, the city will need to
encourage those sectors which have current investment potential and can create significant number of
jobs. This will be needed to provide an initial investment momentum, which can help support a broad
base of professional service companies and stimulate the property market.

Based on our experience of advising companies on potential locations and incentives for planned
investment projects, we have identified the key location factors linked to eight broad groupings of
economic activity (see Appendix B). Given Plymouth’s location characteristics, we believe that of
special relevance to the new economic strategy for Plymouth are the relatively high value added
activities which tend to be concentrated in emerging industries (e.g. multimedia), high tech
manufacturing (e.g. semiconductors) and high level services (e.g. financial and business services).

It is important to note, however, that the pursuit of high value added activities is central to the
economic strategies of many areas in the UK and job opportunities are still limited compared to the
overall workforce size. The marketplace is highly competitive and significant progress will have to be
made (especially in relation to labour skills and property provision) to improve Plymouth’s investor
offer as a prerequisite to the achievement of enhanced performance in investment and jobs created in
the sector. Property in particular has a key role to play in ensuring cities like Plymouth get on to a
shortlist. The new manufacturing and service sectors often have time to market pressures and if
property is not available a company will exclude location. Availability of serviced greenfield sites on
their own is not enough to ensure Plymouth is successful in getting to investor shortlists. Additionally,
as stakeholders have told us, competition from Eastern Europe and the Far East for mobile
manufacturing projects, the lack of awareness in the marketplace of Plymouth’s offer and the
perceived peripherality and inaccessibility of Plymouth, place the City in a difficult position to compete.
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 32



There is therefore a need for realism, especially in the regeneration areas, about the potential success
and related timing of pursuing a high added value economic development strategy. Various cities, as
will be described below, have demonstrated the benefit of deploying a progressive strategy which
recognises the short-term importance of generating economic momentum (including relatively low
value added activities) and of placing a greater emphasis on the higher value activities over time.
Overall, this calls for focussing on sectors where the City has a genuine competitive advantage.



Developing a successful sector strategy
Sector choice, promotion and development are therefore important elements of the new economic
strategy for Plymouth. It is important to acknowledge, however, that a sector focus is not intended to
be exclusive, but rather to give an emphasis on where scarce marketing and product development
resources should be concentrated. Nevertheless, in cities seen as successful in achieving a
substantial business and employment growth, such as Barcelona, some element of sector focus has
been essential – although involving both low and high added value activities.

In general, choice of target growth sectors must reflect channels of potential job creation, especially as
the job prospects and the competitive advantage of Plymouth will inevitably vary from channel to
channel. Likewise, the ‘fit’ with the declared economic ambition and policies for Plymouth will vary
from sector to sector.

Our experience shows that successful sector strategy involves a combination of:

•   Choosing the ‘right’ sectors, based on a combination of market prospects, competitive advantage,
    and policy fit; and

•   Implementing the strategy, both to promote sustainable development (for all sections of the
    population) and to attract investment (both from existing and new investors) consistent with
    market forces and resources available for new interventions.

In practice, this is likely to mean the pursuit of both low and high added value activities in the targeted
sectors. This reflects both what can realistically be achieved in the short-term to attract new
investments to Plymouth, together with a recognition that – even with a progressive education and
skills development agenda– projects at both ends of the value-added spectrum will be needed to
promote and secure sustainable development (see Box 1).
                                                  Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 33



Box 1: Business Services Development in Glasgow

    A successful approach to sector development has been demonstrated effectively in Glasgow. In
    the early 1990s, the public sector partners in Glasgow embarked on an ambitious regeneration
    programme to fundamentally change the image, physical environment, and economic base of the
    city. Financial and business services played a key role.

    The initial emphasis was on building Glasgow’s reputation as an effective location for low value –
    added activities like customer service centres, using marketing campaigns to promote the city and
    developing skills development and property programmes to enhance the investor offer. This
    approach was very successful and laid the platform for extending the programme to other parts of
    the city and to higher added-value activities like shared service centres.

    The big advantage of targeting financial and business services was that Glasgow was able to
    promote a relatively wide range of economic activities, which collectively offered good investment
    and employment prospects for the city. Ultimately, this has resulted in leveraging significant
    private sector investments in new sites and properties – often in areas which hitherto were
    physically derelict and economically sterile.

    Without this investment momentum provided by financial and business services, Glasgow would
    have found it very difficult to attract higher value added activities like shared services to the city.
    The skills competencies developed in supporting the financial and business services investment
    have been relevant for the later high added value investors while the success associated with this
    investment has also generated significant investor interest across the board.

    The culmination of the strategy has been the planning and development of the new international
    financial services district, following the powerful example set by Dublin where a similar strategy
    and process was deployed.


Selecting sectors for development in Plymouth
The approach to sector selection comprises a combination of:

•     Assessing the potential for generating mobile and expansion investment opportunities, together
      with demand-led local growth; and

•     Analysing the current or potential competitive advantage of Plymouth, both in retaining/expanding
      existing investments and attracting new investments.

In terms of the potential for generating mobile and expansion investment opportunities, and demand-
led local growth, an important distinction can be drawn between:

•     Sectors which may have the potential to generate mobile investment opportunities for Plymouth;

•     Sectors which may have the potential to generate new investment opportunities from the existing
      investor base in Plymouth; and

•     Sectors which may have the potential to generate new investment opportunities as a result of
      local population and economic growth.

With key stakeholder consultation as a background (see Appendix C), we suggest below what each of
these opportunities could mean for Plymouth.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 34



Mobile investment opportunities. Plymouth – like many other cities in the UK – has found it difficult
to maintain its 1980s/early 1990s track-record in attracting mobile investment opportunities. Plymouth
was successful then because it understood the market and developed an offer which the
manufacturing companies required, namely serviced sites, advanced buildings, regional grants, and
low cost labour. As a result automotive and electronic companies from the USA and Japan located in
the city. The key to greater success in the future will be stronger performance in those sectors in
“growth mode” at the UK level – notably IT, software, and internet/e-commerce, together with
business, financial and professional services - and this will require a counterweight offer to the market
attractions of London/South East of England.

Existing investor base opportunities. New projects from the expansion of the existing investor base
are playing an increasingly important part of the UK’s inward investment market. This is especially the
case in the manufacturing sector. In 2004/05, there were only 45 new greenfield manufacturing
projects in the whole of the UK; in contrast, there were 224 expansion projects in the sector. Cities
across the UK are putting more effort into encouraging investment from existing investors and
embedding them into the local economy, through investor developer initiatives. This includes
increasing local sourcing of components and services of companies and the provision of quality
buildings to assist them in their move up the value chain.

Demand-led local opportunities. To accompany the planned growth of the city’s population and
employment, there will be an inevitable need for more local services – particularly in activities like
office services, culture, leisure and tourism. This demand must be harnessed in Plymouth itself and
the growing critical mass will also help to support the city’s developing role as a City Region.

The collective summary of potential investment opportunities per economic activity (organised by
location factors) is given in Table 1 below. The opportunities are split into three categories – high,
medium and low, based on our market experience and evidence. The following points are evident:

•   High level services and office services seem to provide the ‘best’ overall potential sources of
    investment opportunities for Plymouth, with a high or medium rating in all three categories. Sectors
    in these categories have a good ‘track record’ in investing in regeneration areas, particularly call
    centres and outsourcers. They also have a track record in investing and training economically
    inactive groups in the workforce in basic IT and customer service skills. If these re-skilled people
    are then released into the labour market they are better equipped to compete for other
    employment opportunities;

•   High tech manufacturing may well provide a good source of opportunities from the existing
    investor base;

•   Emerging industries and culture, leisure and tourism could be relevant sources of mobile
    (i.e. on a regional/national basis) investment opportunities; and

•   General services and culture, leisure and tourism could benefit from demand-led local
    growth related to the increasing population/employment base of the city.
                                                           Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 35




                           Table 1. Overview of Potential Investment Opportunities for Plymouth
 Economic Groupings                  Growth in Existing Base         Mobile Opportunities               Demand-Led Growth
 Emerging Industries                              L                          L/M                                L
 High Tech Manufacturing                          M                            L                                L
 High Level Services                              H                            H                               M
 Mainstream Manufacturing                         L                            L                                L
 Office Services                                  H                            H                               H
 General Services                                 L                            L                               M
 Leisure & Tourism                                M                            M                               M
 Processing Industries                            L                            L                                L
Source: PwC


NB: L = Low                                     M = Medium                                   H = High

Plymouth Business Growth has already identified key competitive advantages and disadvantages of
the city as the basis of a business-led regeneration strategy that builds wealth and generates jobs.
The SWOT analysis highlights a number of important features relevant for sector choice included in
Table 2 below (the full list of the Plymouth Business Growth SWOT is included in Appendix D).



          Table 2. Relevant features for sector choice from the Plymouth Business Growth Strategy SWOT
                    Strengths / opportunities                                          Weaknesses / Threats
 •    Workforce loyalty and effectiveness.                       •    Peripherality.
 •    Size and diversity of higher and further education
                                                                 •    Poor transport links.
      sector.
 •    World renowned marine science base.                        •    Low level of skills.
 •    Strong and developing medical science base.                •    Skills shortages – especially in engineering.
 •    Capitalise on environmental and quality of life            •    Sector weaknesses (computer services, business
      benefits.                                                       services).
 •    Develop the city’s role as a sub-regional centre for
                                                                 •    Unappealing city centre.
      business services, culture, leisure and entertainment.


Six priority clusters have been defined by Plymouth Business Growth Strategy as the means to
building on those advantages. We have also assessed the Plymouth Business Growth Strategy
clusters in terms of their prospects to offer new projects and jobs. The position is summarised on
Table 3 below.
                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 36




         Table 3. Overview of Potential Investment Opportunities in Plymouth Business Growth Strategy clusters
                                  Growth in Existing Base     Mobile Opportunities          Demand-led Growth
    Advanced Engineering                    M                          L                             L
    Business Services                       H                          H                             H
    Creative Industries                     M                          H                            M
    Marine Industries                       M                          L                            M
    Medical and Healthcare                  H                          M                             H
    Tourism and Leisure                     M                          M                            M


Against this background, it is useful to try to identify specific types of economic activity within the
broader sector groups. Of special relevance could be:

•      Emerging industries – media/multimedia;
•      High tech manufacturing – aerospace, automotive, marine, advanced materials, semiconductors;
•      High level services – IT services and software, R&D, financial and business services;
•      Office services – call centres, shared service centres, back offices and government agencies;
•      General services – healthcare support services; and
•      Leisure and tourism – retail and attractions.

Although the City of Plymouth may well have a current or potential competitive advantage in a range
of sectors/niches, the future job prospects – especially in terms of the availability of new jobs – are
likely to vary considerably from sector to sector.

Given the ambition of significantly increasing the city’s population, which in turn will be influenced by
the local provision of jobs, the sector choice must take into account the need to ensure that some of
the sectors are strong contenders for job creation on a relatively large-scale. These sectors can
include areas of public sector economic activity like healthcare given the central government’s policy
priority and spending plans. Following the findings of the Lyons Review and the inclusion of Plymouth
as one of the UK’s selected city growth areas, the city is in principle well placed to attract new
government agencies or relocations of existing departments/functions from elsewhere in the UK,
notably from London and the South East of England. Plymouth is one of the six priority locations
chosen by SWRDA as potential venues for civil service jobs. Public sector relocations, especially in
the early years, may well provide one of the best sources of large-scale projects.

Overall, the analysis tends to suggest that the original Plymouth Business Growth Strategy choice
of six key target sectors still remains valid, but:

•      Special priority should be given to financial and business services, creative industries, and
       tourism and leisure in terms of new investment/job prospects;
•      Public sector relocations should also be included as a key target sector;
•      The advanced engineering, marine industries, and medical and healthcare sectors are important
       but primarily from the viewpoint of retaining and expanding the existing economic base.

Therefore, in terms of those sectors likely to provide relatively good prospects for attracting mobile
investments/jobs to Plymouth, we suggest that special attention should be given to:
•      Business services/creative industries: Accounting/banking/legal services, Business process
       outsourcing, Call centres/contact centres/shared service centres; Regional HQs; Back office
       activities; Telecom services; IT services/software; and Media/multimedia.
•      Tourism and leisure: Hotels and Restaurants/cafés - especially from quality branded chains,
       retail offering.
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 37



Overall, this choice of sectors/niches would fit well with the assertion that CGS can target activities
that benefit from Plymouth’s environment and quality of life, or in which there is a strong intellectual
capital base, whilst avoiding those that require a central location or incur substantial travel and
transport costs”. Nevertheless, the sector emphasis could vary from one part of the city to another,
especially in the early years of promoting the new economic strategy.

Fundamentally, the step change in economic performance that Plymouth is seeking will not be
delivered solely through a continuation of past economic trends and policy interventions. Critical to
this process will be a shift in the image and perception of the City to investors and residents, which will
itself be underpinned by a range of supporting and interconnected changes in the economic and social
landscape. For example, the continued development of research based activities in the City driven by
the University, but also by the private sector in medical healthcare and marine science sectors, will
become a force for stimulating higher value added activities and generating sustainable employment
opportunities in Plymouth.


COMPONENTS

Given the challenges that Plymouth faces, it should aim to increase the number of jobs by focusing on:

1   Generating mobile and expanding investment opportunities by:
     •   Improving Plymouth’s investor offer – both the generic offer (overall image, perception,
         hard and soft infrastructure of the city) and the individual sector offer - by means of targeted
         interventions that address the business requirements of new and existing investors across
         the key product development areas of: Property, Infrastructure, Skills, Incentives and
         Lifestyle.
     •   Focusing on the right mix of sectors including both high and low value added activities with
         the aim of attracting more high value added activities (including high tech and knowledge
         intensive activities) that tend to be concentrated in emerging industries (e.g. multimedia), high
         tech manufacturing (e.g. semiconductors) and high level services (e.g. financial and business
         services).     Key levers will include investing in workforce skills, greater R&D activity,
         investment in ICT and developing new and better links between private companies, the
         University of Plymouth and other centres of excellence. The possible capacity constraints that
         may be experienced by the many small businesses in Plymouth, in terms of taking up and
         adapting to new technologies, should also be addressed.
     •   Promoting Plymouth as an investment location and to engage existing and potential
         investors about the merits of investing in Plymouth. A significant uplift in the current
         resources devoted to economic promotion and development will be required. This must
         include additional resources for working with existing investors to encourage new investments
         aimed at moving up the value chain of goods and services. These actions should link with
         the branding and marketing initiative that is already taking place.
2   Increasing the levels of entrepreneurship and to bring about an increase in the number of new
    businesses in the City. In contrast to other parts of the South West region, net rates of new firm
    formation in Plymouth have remained sluggish, despite a relativity large increase in the size of the
    overall business base in recent years. In particular, the number of businesses operating per head
    of population is much lower in Plymouth than the position regionally and nationally. This suggests
    that the City’s economy is less entrepreneurial overall and has a tendency to rely on relatively
    large employers and some traditional sectors to supply the majority of employment opportunities –
    perhaps more so than most Cities; and
3   Encourage the development of small and micro business that could play a key role in a
    ‘sustainable business development’ approach. There are a series of key initiatives promoting the
    development of small business support. It is felt, however, that outside of clusters, the particular
    needs of small businesses to increase growth potential is related to access to procurement from
    big employers, infrastructure (e.g. roads) and regulation (e.g. employment law, VAT threshold).
                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 38




Diversifying the Business Base
ACTIONS – CROSS CUTTING

Developing selected sectors includes overcoming key barriers to business growth and building on
competitive advantages, generating opportunities both for new inward investment and for the
indigenous business base that take account of entrepreneurs and small business needs.

Market forces alone will not deliver the required sector performance to match the emerging economic
strategy, nor deliver the 42,500 new jobs. Interventions by the public sector – albeit in close
partnership with the private sector – will be essential, especially given the current competitive
positioning of Plymouth and the scale and nature of the ambition for improving and regenerating the
city’s economy. This will especially be the case if the next regional policy review results in changes in
the Assisted Area status of Plymouth.

There is a also a need for realism – the economic strategy extends to 2026 but the urgent issue is to
break the existing economic mould for Plymouth, boost investor confidence and create a new vital and
energised economic context for fostering growth, investment and jobs.

Best practice inward investment experience from international-class cities like Barcelona and Dublin
has pinpointed the need to improve the investor offer for Plymouth from two main angles:

•    The ‘generic’ offer, in terms of the overall image, perception, hard (especially communications)
     and soft infrastructure of the city; and

•    The ‘sector’ offer, in terms of specific sectors or niches of sectors.

Although the vision encompasses a population increase of some 60,000 over the next 20 years or so,
it is unlikely that this will be achieved in practice without a proportionate and substantial increase in
employment. Inward investment is likely to be a key component of economic regeneration and
employment growth. In turn, this is likely to need a major shift in the positioning of Plymouth as a
business location, whilst also recognising that public sector relocations are likely to be important in
providing new jobs for the city.

Likewise, it will take time to improve both the generic and sector offer and this will impact on the ability
in the short-term (say less than 5 years):

•    To attract new investments to the regeneration areas; and

•    To attract high value added activities

In the early years of implementing the vision, early successes will be important, even if this involves
relatively low added value activities. However, interventions will be necessary – especially to improve
the property and skills elements of Plymouth’s investor offer, as well as actions to enhance the
supporting infrastructure. This approach is endorsed by the Plymouth Business Growth Strategy,
whose strategic objectives include:

    “To ensure that the right conditions are provided for business growth, by working with partners to
                       enhance the city’s infrastructure, image and environment”.



It is important to highlight that no strategy is risk free. Not all initiatives described below would
necessarily have the return or benefits expected. However, some risks need to always be taken to
achieve rewards for the City of Plymouth.
                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 39



How can the existing generic offer be improved?

Our experience in advising both sides of the marketplace – advising economic development and
investment agencies on strategies and programmes to attract investment and also advising
companies on potential locations for investment projects has led us to develop the following best
practice model for product development:




                                                  Clear market focus with an emphasis on key sectors




                    Target setting                        Integrated policy development                     Benchmarking




                                                             A dedicated organisation




                                                                                                                                 Implementation
    Feedback




                                Product development (including catalyst initiatives and client service programmes)




                     Property            Infrastructure          Skills & knowledge          Incentives              Lifestyle
                                        (including ICT)                  base


                                                              Marketing programmes




                                                          Investor offer delivery/outputs




In terms of identifying potential actions, the critical element is to improve the ‘offer’ of Plymouth in each
sector by means of targeted interventions that address the business requirements of new and existing
investors (whose requirements will be the same) across the key product development areas of:

•              Property;

•              Infrastructure;

•              Skills;

•              Incentives; and

•              Lifestyle.

The key product development areas could be addressed as follows:

Property: The Plymouth Business Growth Strategy SWOT analysis suggested that the ‘availability of
sites and premises for development’ is a strength. The central task will be to translate this potential
into readily available opportunities for potential inward and indigenous investors. Indeed, as time to
market pressures intensify, there is often a requirement – for many types of manufacturing and service
sector activities – for a readily, available new or modern building to form the cornerstone of the
investor offer. If this does not happen, locations outside Plymouth are likely to be considered, even in
those instances where Plymouth has a relatively strong competitive advantage. In other peripheral
locations in the UK, the public sector, usually the RDA, has been instrumental in encouraging
speculative properties as part of the process of creating markets. With time to market pressures critical
for many of the sectors, it is essential that investors are given the opportunity to consider Plymouth
and take their investment interest to the next stage. Currently Plymouth is not being considered and is
failing to achieve long list or short list status.
                                                  Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 40



Plymouth’s site portfolio includes the following key sites:

•   Plymouth International Business Park;

•   Tamar Science Park; and

•   Langage Industrial Estate.

The Employment Land Review (Baker Associates, November 205) reviewed the ability (and
competitiveness) of these key and other sites in Plymouth to accommodate the land and building
requirements of companies in the targeted sectors. The principal output of the study was to provide
an assessment of the total quantity of new employment land and floorspace needed in Plymouth over
the Local Development Framework period of 2001 – 2016 and beyond to 2026.

Existing analysis indicates that the forecast demand for floorspace and land is significantly below the
availability of both premises and land in the sub region. However, generally there is a perception that
there is an inadequate supply of land for high value, knowledge intensive industries (including inward
investment). Moreover, in terms of location of available sites, there is an oversupply in A38 located
sites and an under supply of city centre and waterfront locations required by 2026. Therefore, the
existing sites are generally not suitable to meet the requirements of the key growth sectors for the City
in terms of location and quality. Protecting, identifying and designating key waterfront/city centre
employment land will therefore be a key element of the economic strategy.

Skills. In our own inward investment experience, labour is increasingly seen by potential investors as
the key driver in location decisions. This applies especially to high added value activities. In other UK
city regions, initiatives have included special courses to encourage skills development in targeted
sectors (e.g. Modern Apprenticeship in financial services in Manchester) and bespoke training
packages for new employers (e.g. Glasgow). Increasingly, the emphasis must be on measures to
promote skills development and attract labour talent, rather than just helping the economically inactive
to access new work opportunities. The promotion of sectors like business professional and financial
services and the related availability of good quality jobs could act as an important inducement to
encourage young people (especially those of graduate calibre) to remain in Plymouth after the end of
their formal education there (and thus reducing the current leakage) or to move to the city. As part of
the skills development programme, cities (Glasgow and Manchester) are also engaging in wider
labour market awareness campaign to bring to the population’s attention job opportunities in the
targeted sectors. This is particularly relevant to Plymouth with its large university population.

Infrastructure and lifestyle. It will be vital to ‘get the city centre right’ if the vision is to be achieved in
practice. This will have a fundamental influence on the investor perception, general market positioning
and on the individual sector offers. As well as the physical and architectural aspects associated with
the regeneration of Plymouth, there will also be an expectation from both current and potential
investors of a radical improvement in the city’s soft infrastructure, notably in retailing, recreation,
cultural and leisure facilities and business services. While the city has clear advantages in presenting
a strong quality of life offer it has to first build its business infrastructure to capitalise on the
environmental appeal of the city region.

Incentives. The European Commission has issued proposals on the grant regime from 2007 onwards.
The UK Government estimates that the proposals would see the percentage of the UK population in
areas eligible for state aid fall from its current level of 30.9% to a lower level. Plymouth may not retain
its Tier 2 Assisted Area status. However, depending on budget availability, there may be merit in
examining how current incentive schemes can be aligned with sector priorities, while if Plymouth loses
its Assisted Area status post 2006, the opportunities to support businesses via new training support
and R&D initiatives which have block exemption from the EC, should be investigated.
                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 41




theme 2
Skills
This theme area addresses the following critical success factors for Plymouth:

Skills & Learning
•    A high quality, adaptable skills base
•    High levels of attainment
•    A positive and aspirational culture

INTRODUCTION & RATIONALE
Human capital is a key determinant of economic growth. Skilled workers add value to production,
adapt more quickly to new technologies and are more likely to receive additional training, increasing
their productive capacity even further. Plymouth, in keeping with the UK generally, exhibits much
diversity within its skills base, with incidences of both high level and low level skills apparent within the
City’s workforce. Recent studies have shown that variations in the regional composition of the skills
base lead, in turn, to variations in sub regional economic performance. With a clear correlation
between high skills levels and highly competitive cities, it is imperative that the skills base in Plymouth
improves overall and exhibits a high incidence of ongoing learning improvement and adaptability to
changing economic circumstances. Otherwise, the City may lose out to other locations in terms of
drawing in, embedding and benefiting from new investment.

To become more competitive, Plymouth’s sub-regional economy must be supported by a dynamic and
flexible labour market that can react and adapt to the changing demands of the economy.
Competitiveness comes from a strong base of generic and widely applicable skills, a high level of
qualifications and strong participation rates among the entire population. These factors will actively
help the City in attracting new, high value added investment.

A particularly interesting aspect of the skills and learning environment in Plymouth is related to the
actual scale of the education infrastructure within the City. Plymouth has an extensive learning
network incorporating a large university and a college of higher education (both of these institutions
growing and developing rapidly), a specialist medical teaching facility (one of the newest in the
country), a successful research based science park, two FE colleges (one of which is a specialist in art
and design), as well as a huge range of compulsory level education and community based learning.

There are few other cities of a similar size in the UK that have this scale and range of educational
activity. As such, the learning infrastructure is one of Plymouth’s major assets and must be utilised as
fully and creatively as possible as a mechanism for generating significantly greater competitiveness
and prosperity for the City. If the scale of the local learning infrastructure can be ‘converted’ into
results ‘on the ground’ within and amongst residential communities, Plymouth stands an excellent
chance of becoming a true ‘learning city’ that exhibits an enviable array of skills, qualifications and
creative class characteristics.

Consultation with key stakeholders has suggested that there is a particular imbalance in terms of
provision of academic versus vocational learning routes post 16. Many consultees felt that there
is an over supply of sixth form units, tending to overemphasise academic post 16 routes and leading
also to a lack of critical mass in the provision of post 16 learning. This results in a tendency for
vocational learning routes to be under developed and to lack the quality of content and provision that
is needed for the necessary uplift within the skills base. Overall, there is a feeling amongst
                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 42



stakeholders across the City that the current learning infrastructure, despite it’s impressing scale, is
not yet fit for purpose.

Skills & Learning
COMPONENTS

Securing a significant and sustainable improvement in the quality of the Plymouth skills base is one of
the fundamental challenges facing the City’s public stakeholders and employers. Furthermore, key
features of the City of Ideas concept are a knowledge creation infrastructure (world class university
and technology transfer) and good skills levels throughout the workforce.

As an overarching principle, the City’s public and private partners must ensure that the overall impact
of the educational infrastructure is greater than the sum of its individual component parts; it must
act as a joined-up, high value-adding infrastructure offering transparent and accessible skills
development pathways. Secondly, the quality of the education structures and facilities within the City
must itself be fully reflected within the local skills base. The quality of education and learning must
directly mirror the availability of an abundance of high level, adaptable skills across the City’s
communities.

Plymouths’ key learning and skills objectives:
•   Increasing the share of the residential population in possession of NVQ Level 4 (i.e. degree
    level) qualifications. The City must be able to demonstrate a high incidence of this level of
    qualification, and by implication associated skill capacity, if it is to successfully draw in and embed
    new investment as well as improve the productivity of the economy generally.
•   Maximising learning and achievement related aspirations across all of the City’s communities.
    Despite the significant scale of learning provision in Plymouth, there is still a degree of relative
    under-performance in terms of progression from compulsory level schooling to FE and HE level
    learning. There is a clear need to ensure that Plymouth’s young people are focussed on the need
    to maintain a commitment to lifelong learning and ongoing skills upgrade. In this context, schools
    and colleges, as well as individual teaching professionals, must be supported fully in their
    attempts to raise motivation levels in the youth population and instil a strong local desire for
    learning and achievement. This will be done in part by building upon existing best practice already
    present within the educational infrastructure.
    Motivation and aspiration for learning are not only important for young people, these are
    prerequisites for all individuals irrespective of age and personal circumstance if communities and
    therefore the City as whole are to achieve their full economic potential.
•   Develop robust and transparent learning pathways easily accessible to all of Plymouth’s
    residents. Support the establishment of a range of learning opportunities that can be easily taken
    advantage of by all residents irrespective of their current personal or socio-economic
    circumstances.
    In order to maximise its competitive position, Plymouth requires a learning infrastructure that is
    appropriate for a growing, dynamic economy. This in turn requires learning provision that
    effectively balances vocational and non-vocational pathways. In addition, there is a need for high
    quality advice and guidance in order that communities and employers can maximise their
    personal and collective benefit from learning structures. Local partners must ensure that all
    elements of the overall learning pathway are designed to compliment each other, to establish the
    most appropriate range and quality of educational opportunities for the City’s residents and
    employers.
•   Enhance workforce development opportunities. There is a need for all of the City’s employers –
    private, public and voluntary – to increase the skills capacity of their workforces and in so doing
    improve the overall productive capacity of the City.
•   Ensure that there is a high quality skills base available that directly matches the evolving needs
    of target growth sectors. The City’s learning stakeholders must make sure that the development
    of new employment opportunities around key target growth sectors – especially high value added
                                                             Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 43



         sectors – is fully driven and supported by the availability of the requisite skills and learning
         opportunities.
•        Increase the rate of knowledge transfer from HE level and related institutions – both within and
         outside of Plymouth – into the local business base. There is a need to ensure that all employers
         within the City are able to adapt to new technological developments and take advantage of
         ongoing R&D activity.

Skills & Learning
ACTIONS

A key component in developing the economy of Plymouth rests in enhancing and effectively
‘stretching’ the existing learning infrastructure in the City.

There are two aspects to this process, as illustrated below:

            Extending access to flexible learning            Existing Learning          Higher level learning & research
                                                              Infrastructure
    Increasing community outreach and community based                                   Increased emphasis on high level research and
    learning, especially in disadvantaged areas.         Currently meeting a range of   postgraduate learning
                                                          diverse needs across the
    Increasing incidence of e-learning in response to                                   Increased specialisation in key sectors such as
                                                         City, regionally and beyond
    residential and business needs.                                                     Advanced Engineering, Marine Sciences and
                                                                                        Technologies, Medical and Health Care, Art and Design
    Composition of transparent and accessible pathways
    across the City’s learning infrastructure



The first aspect to this ‘stretching’ process is to enhance opportunities for flexible, accessible
learning, at various levels and especially within the City’s more disadvantaged communities. This will
require greater levels of learning outreach into these communities, alongside encouraging and
enabling greater take up of learning opportunities. In addition, a more intensive approach to
developing flexible e-learning opportunities is required. These learning opportunities must both fulfil
the needs of individual learners, while also being fully cognisant of the need of the City’s diverse
business base.

The second aspect of the learning infrastructure ‘stretch’ operates at the higher, research led end of
the structure. Considerable effort needs to be expended in ensuring that Plymouth exhibits core and
identifiable research and postgraduate learning strengths in key and niche sectors. These sectors
should build upon existing strengths and include Advanced Engineering, Medical related specialisms,
Marine specialisms, as well as Art and Design activities.

In addition to the two aspects outlined above, overall, the learning infrastructure must form a logical
pathway (or series of alternative pathways) leading from basic skills and compulsory level learning
right through to opportunities for bespoke, original research in key areas. The infrastructure should be
designed and should evolve in a manner that allows individuals and businesses to effectively ‘come
into the system’ at a point that is most appropriate for them and to access learning opportunities that
enhance personal wellbeing as fully as possible and consequently, in the aggregate, maximise the
value and prosperity of the City’s economy.
                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 44




theme 3
Centres
This theme area addresses the following critical success factor for Plymouth:
Key centres
•   A range of well connected centres and nodes that drive complementary and mutually reinforcing
    components of the economy.

INTRODUCTION & RATIONALE

Competitive cities across the world are usually characterised as having high quality connectivity and
infrastructure assets. Ease of access to major urban centres, especially national capitals and central
government hubs, as well as effective international linkages, are increasingly important in promoting
economic dynamism. In addition, ICT and digital connectivity is also increasingly seen as a key
mechanism for diversifying the economic base of a location and increasing opportunities for
developing high value added economic activity.

Plymouth’s perceived physical peripherality, especially in the context of travel time to and from
London, has emerged as a constant discussion theme amongst stakeholder consultees. Although, on
balance, consultees view Plymouth’s distance from London as having a negative impact on current
economic performance, there remains a diversity of opinion regarding the actual scale of this negative
impact. In particular, there are many who see the City’s obvious environmental strengths as being
something of an effective counterweight to any actual, physical connectivity weaknesses.

An emerging view from consultees is that Plymouth must strive to become a strong regional centre in
its own right whilst also maximising its physical and digital connectivity networks. There is a clear need
to maximise the role of Plymouth as a City Region, ensuring effective connectivity with neighbouring
local authority areas; the City must create and embed significant levels of economic value from these
relationships. This requires a full complement of factors to be present within the city including physical
and digital infrastructure and other assets such as skills, educational infrastructures and quality of life
factors (including property and housing). In addition, it is vital that ease of movement within and
around the City is maximised, in order to facilitate the indigenous creation of economic value.
Enhancement of existing public transport services and networks is an important factor here.

There is much debate around the role that Plymouth Airport plays in driving the economy of the City.
According to a recent report by York Aviation, Plymouth City Airport could grow to be handling just
over 1 million passengers a year by 2030, based on meeting the needs of the local market. The key
issue for the airport is the length of its runway. Whilst the existing runway length is adequate for
current operations and would accommodate some growth of the route network within the UK and near
Europe using current aircraft types, these aircraft are gradually being replaced by larger aircraft which
                         12
require a longer runway .

Connected Centres
A key priority for the City’s economy is to ensure complementary growth and development of the main
economic nodes across the City. As well as appropriate connectivity between centres, it is also vital
that each key centre individually has a number of components which can lead to improved economic
performance. These components include high quality, flexible business space, appropriate industrial
and employment land, a high quality and diverse housing offer, as well as other service and amenity
requirements.


12
     York Aviation (2005), Plymouth Airport Study
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 45




There are a number of key challenges and priorities with regard to Plymouth’s main economic centres:
•   The creation of a bi-polar city economy, comprising the City Centre and Derriford, must be fully
    enabled to maximise the economic potential of the City. This will require a number of key
    elements including:
    o   Effective transport access and linkage between the key economic nodes, especially rapid
        and regular public transport infrastructure. The A38 eastern access corridor into and out of
        Plymouth should be given particular attention. It is imperative that the main growth areas of
        the City – in both employment and residential terms – have the requisite transport and
        connectivity structures to ensure long term sustainability and maximum economic impact;
    o   Guaranteeing that the two key nodes are fully connected to the other main employment and
        residential locations of the City is vital, thus maximising ease of access for all communities to
        business and employment sites.
•   In the longer term the development of further nodes of development to complement the bi-polar
    economy at Langage/Sherford and elsewhere in the city.
•   Ensuring that new knowledge based employment growth is not restricted to only outlying
    locations and that infrastructure is available within the City Centre and waterfront areas,
    especially, to enable a complementary growth of certain knowledge based activities (especially
    business services); retaining waterside employment sites will be critical to achieving these
    aims.
•   The proposals outlined within the MBM Vision for the Plymouth produced by architect David
    Mackay saw major opportunities for the City Centre and areas linked to it. It is imperative to the
    future of the City, economically, that the Vision for Plymouth is realised, especially in the context
    of diversifying physical uses within the City Centre. The establishment of a multi-functioning city
    centre is an important prerequisite to Plymouth reaching its full potential as a key economic
    location within the UK with significant complementary development at Derriford.
•   The City needs to develop a meaningful office accommodation offer. The current lack of
    modern offices acts as a considerable disincentive to possible inward investment, especially in
    high value added business services. It is likely that potential investors are completely bypassing
    Plymouth and moving onto other areas that are able to provide accommodation that comes closer
    to meeting their needs.
•   Stakeholders across the City must continue to lobby for improved connectivity between
    Plymouth and other key national and international centres. Whilst economic growth can be
    engendered in part through embedding the benefits of locally driven endogenous growth, this
    must not occur in isolation of any possible improvements to connectivity that might be sought and
    achieved;
•   The ability of Plymouth to function as a self-contained economic entity requires considerable
    investment in digital infrastructure. Stakeholders must ensure that businesses operating in the
    City are able to take advantage of the most advanced ICT and related networks and that lack of
    this type of infrastructure does not impede business growth and diversification.
    As part of the development of effective digital infrastructure, it is also vital that businesses across
    the City are supported in being able to take up and utilise this type of infrastructure. Awareness
    raising and training for business operators, managers and the workforce more generally is an
    important component in ensuring that digital connectivity works to the best advantage of the City.
•   In addition, the development of knowledge based economic activity will necessitate an
    infrastructure conducive to the incubation, development and growth of this type of activity. In
    particular, the development of office and other premises (e.g. laboratory or studio spaces) that are
    flexible and affordable, is vital to this process.
•   The City’s public and private stakeholders must do more to improve the housing offer available.
    The future of the City as a diverse, knowledge based economic entity with a much larger
    population, depends on being able to draw in significant numbers of highly skilled individuals.
                                                   Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 46



       Although the City clearly has an outstanding environmental ‘offer’ that this group may require, it
       needs to develop a better mix of high quality housing. There are a number of recent new
       developments of high quality residential apartments and flats across Plymouth, but there is s lack
       of new high quality family sized housing in central areas of the city. In addition, diversity within the
       residential property offer must encompass increased provision of affordable housing in
       appropriate locations, in order to maximise the availability of skills and access to employment
       opportunities.
•      In terms of employment land located in Plymouth, it is considered that current provision of
       employment land, as set out in the Structure Plan, is higher than that necessary to accommodate
                                    13
       future employment growth . The key issue here is to ensure that the appropriate amount of
       employment land and floorspace is provided in the right locations to meet future employment
       need. In particular, there is a need to manage the large quantity of employment land allocated in
       outlying areas around the edges of the City, versus a lack of employment land provision currently
       in the City Centre and waterfront areas that is more likely to attract investors in target growth
       sectors. Some consideration should be given to release of sites considered unsuitable for future
       employment to facilitate wider regeneration objectives. The Baker Associates Employment Land
       Review suggests land at St Budeaux bypass, Wakeham’s Quarry and Honicknowle are unlikely to
       attract employment development due to site constraints.
•      The economic and physical development of Plymouth must be undertaken in a manner that does
       not compromise the environmental quality of the City and its environs. Indeed, the
       environmental amenities of the City must, as far as possible, be enhanced through economic
       development activities in order to ensure a sustainable outcome. As such, careful consideration
       must be given to efficient use of energy and wherever possible investigation of green energy
       sources, as well as a sustainable approaches to waste disposal. Issues of flood risk must also
       feature in economic development plans, especially around any planned developments for the
       Millbay area.

Infrastructure & Access
COMPONENTS

The key objectives falling within this theme area are:
•      Continue implementation of the Vision for Plymouth;
•      Ensure complementary and mutually reinforcing economic development between and across all
       key centres where appropriate, especially the City Centre and Derriford;
•      Develop plans for further nodal employment centres especially at Langage and Sherford;
•      Develop early on the physical infrastructure required to attract investment in key target sectors, in
       particular, high-spec office accommodation and appropriately located employment land;
•      Protect and retain key waterside employment sites to facilitate mixed use development and
       help to create the infrastructure for business development & growth;
•      Enhance the quality and diversity of the Plymouth housing and accommodation offer;
•      Improve connectivity between Plymouth and other key centres while maximised ease of access
       within the City itself.




13   Baker Associates, Plymouth City Council Employment Land Review, November 2005
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 47




theme 4
Participation
This theme area addresses the following critical success factors for Plymouth:
Participation
•   Inclusion and access for all communities
•   High levels of economic activity

INTRODUCTION AND RATIONALE

The new economic strategy for Plymouth is based, in part, on the simple principle that for sustainable
growth to be achieved for the city there needs to be an ‘uplift’ in participation and income levels locally.
This should be driven by a healthy and highly motivated workforce from all communities equipped to
participate and contribute to the city’s economy and to its quality of life more broadly.

In overall terms, the Plymouth Economic Strategy should seek to achieve a virtuous circle whereby…

     …a more competitive city economy will bring about a significant improvement in the
     circumstances of those living in the poorest wards and this, in turn, reinforces economic
     growth through greater participation, higher skills levels and higher incomes…

This part of the strategy is based on a review of the quantitative evidence, in particular the Indices of
Deprivation 2004 and a range of other secondary data assembled for other strategic and initiatives
including; the Regional Economic Strategy, RISE (the Social Enterprise Strategy for the South West)
The GOSW Business Plan, the City Council’s Corporate Plan, the City Growth Strategy, the
Neighbourhood Renewal Strategy, the Devonport Regeneration Company Employment Strategy and,
in particular, evidence accrued as part of Plymouth’s Local Enterprise Growth Initiative bid. This
analysis was augmented by a number of face to face consultations with key agencies and strategic
stakeholders and a workshop with community and voluntary sector stakeholders.

As well as effective and unconstrained participation in the labour market, a competitive city is also
characterised by participative characteristics more generally. These characteristics might include
active involvement in community groups and in local democracy, healthy relationships between
businesses and their surrounding communities, a strong and innovative community and voluntary
sector, as well as successful social enterprises offering much needed goods and services onto the
market particularly in relatively deprived areas.

Additionally, the effective design and delivery of core services for all communities is a key
prerequisite for high levels of participation. A strong social infrastructure that is dynamic and evolves
to suit the needs of communities over time is a necessity for resilient economic performance.
Plymouth’s public sector partners must ensure that individuals are not constrained in accessing core
and essential services either due to location or to other socio-economic factors. Opportunities for
effective integration of services, co-location of specific functions, as well as suitable models of
neighbourhood management should be considered fully.

Social infrastructure also plays a key role in supporting community cohesion and integration. As
Plymouth becomes more diverse ethnically and socially, partners must be conscious of the need to
ensure that certain groups do not become isolated from the mainstream, increasing their risk of
exclusion and worklessness. At present, Plymouth is less segregated on ethnic grounds than other
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 48



similarly sized urban areas elsewhere in the UK. Communities must continue to become more mixed
in socio-economic terms promoting high levels of cohesion and integration.

It is also vitally important that economic development and regeneration efforts seek to maximise
aspirations at the community level. Stakeholder consultation has raised a number of concerns around
the ‘internal’ image within the City i.e. that many of Plymouth’s residents do not hold a particularly
positive view of their home town. This situation is considered to be partly a function of a lengthy
economic restructuring process that has had a number of negative consequences, particularly
affecting those industries that many communities feel in the past have been part of the City’s social
make up. Effective actions to create and raise aspirations are important in raising levels of
participation and economic activity, generating a higher level of economic performance overall and the
achievement of a more competitive city.

Plymouth’s bid for Local Enterprise Growth Initiative is based around four building blocks
specifically linked to increasing participation in economic activity from the City’s most deprived
neighbourhoods

      •   Tackling the inherent lack of aspiration and ambition amongst the residents living in deprived
          areas.
      •   Creating the next generation of entrepreneurs from these areas.

      •   Delivering tailor-made business support.

      •   Building on Plymouth’s excellent reputation in the area of social enterprise and building
          capacity within the Social Enterprise Sector to increase the number and quality of Social
          Enterprises within Plymouth.

Economic Inclusion
COMPONENTS

The Economic Inclusion theme of the overall Plymouth Economic Strategy is structured around a set
of three principles to guide our approach to tackling socio-economic exclusion across Plymouth. Three
key objectives flow from the principles under which the proposed individual actions and measures are
structured.

Inclusion Principles
[1]       The strategy is based upon a commitment to inter-agency working and local delivery at the
          city level, building upon existing efforts of the Plymouth 2020 Partnership.

[2]       The strategy must facilitate the tailoring of national and regional initiatives to address the
          needs of Plymouth residents more directly.

[3]       In order to be successful, the strategy should be based on sustained action over the long-
          term in order to make a significant impact


•     Gaining a better understanding of the problem. This may seem obvious, but experience tells
      us that in order to be effective, measures to tackle economic inclusion must be highly targeted to
      meet the needs of individuals and must be delivered through intensive outreach. Any intervention
      must therefore be based on a thorough understanding of the local population.
•     Increasing employability of adults and young people across Plymouth. Two programmes of
      interventions are needed to tackle this: a) a programme directly tackling barriers to the labour
      market and b) a programme to create ‘steps into employment’ - a suite of programmes to help
      people re-enter the labour market over 3 to 5 years. Worklessness, including economic inactivity
      is much higher in Plymouth than the regional or sub-regional average, furthermore levels of
      worklessness are persistently high in specific neighbourhoods across the city.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 49



•   Using Neighbourhood Management to tackle economic exclusion. Neighbourhood Management
    serves to improve the ‘liveability’ of areas by improving environmental quality (litter, noise
    pollution), tackling anti social behaviour and most importantly, ensuring services are delivered in a
    way which meets needs on the ground. Neighbourhood Management is important as it improved
    the conditions in which people live and therefore improves their chances of successful
    participation in work or training.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 50




theme 5
Leadership
This theme area addresses the following critical success factors for Plymouth:
Leadership
•   Coordination and championing
•   Image & Branding

DELIVERY STRATEGY PRINCIPLES
Intervention
The new economic strategy needs to be underpinned by a robust delivery and implementation plan
that is driven by the ‘vision’ and the options for change in Plymouth. An ‘objectives-led’ approach to
delivery is fundamental to realising the aims and priorities of the vision, and realising Plymouth as a
City of Ideas.

The final elements of the delivery framework and associated vehicles will be shaped by the appetite of
the different stakeholder groups (both public and private) to drive the vision forward, as well as the
type and scale of funding options available at the time of implementing the different components of the
vision. Presented below are some of the funding options and delivery mechanisms available to the
strategy partnership group and the implications of pursuing alternative implementation strategies. We
conclude this section by presenting a recommended way forward for delivering the Vision for Plymouth
through the establishment of a new Local Delivery Vehicle (LDV).

Funding

The successful delivery of the Vision for Plymouth will rest on the clear recognition that there is likely
to be a ‘funding gap’ between the costs of implementing the vision and the capital receipts generated
from sources such as land disposals. The onus will be firmly on the public sector organisations to
meet this gap through a cocktail of funding arrangements, recognising the strategic role of the City
economy in the regeneration of the local and sub regional economies. Public sector funding support
will be required for the initial reclamation of development sites and the provision of infrastructure and
landscaping. Whilst the residential elements of the vision may well be financially self-sustaining, many
types of industrial and office development are likely to be underpinned by some form of public sector
subsidy. Consideration will also need to be given to the best methods of achieving the required high
standards for the long-term maintenance of the public realm. Again, some form of public sector
support is likely to be necessary.

The public sector organisations involved in providing funding support will of course need to be
satisfied with the value for money that will be offered and achieved by their respective contributions. At
the same time, there must be a clear recognition that this will require long term commitment from the
public sector organisations to funding the different components of the concept as an integrated
package, so as to achieve the required critical mass for sustainable development of Plymouth.

In going forward, a zero budget funding approach should be adopted for the Plymouth Local Economic
Strategy Action Plan, building up funding possibilities from the most certain sources initially before
including the contributions of less certain sources, in order to identify the level and robustness of the
funding gap. It is likely that the development will take place in phases, with the most feasible parts of
the vision being taken forward first.
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 51



Delivery Vehicles

A range of potential delivery vehicles, which could be adopted as an appropriate model to take the
Action Plan forward, have been considered. It is anticipated that some form of partnership
arrangement will be required to drive the vision forward given the complexity of issues to be
addressed, in terms of required expertise in the development process, land assembly, marketing,
funding, state aids and so on. The nature and scope of this partnership arrangement could take a
number of formats – ‘public private partnership’ or ‘public public partnership’ – dependent upon the
motivation of different stakeholder organisations. The role of the PPP in driving this process forward
will be critical.

The key issue – or key question – is why do we need a delivery vehicle (or delivery vehicles) at all?

Taking the regeneration of Plymouth forward via a ‘loose’ partnership, and individual contractual
(rather than corporate) arrangements will carry the following risks:
•   Lack of co-ordination;
•   No branding;
•   Create difficulty in attracting private sector investment;
•   Lack of focus for public sector investment; and,
•   Absence of joined up thinking.

Three key issues arise when considering a delivery strategy:
•   Who is going to set the overall strategy and take ownership of its continuing relevance and
    appropriateness?
•   Who is going to develop and manage projects as they evolve?
•   How are individual elements going to be procured?

The PPP may play a variety of roles in this. Its role may well be as the overarching body managing
the first two processes outlined above. Crucially, how is the third element – the real delivery issue -
going to be addressed?

Effectively 4 solutions are possible:
•   Traditional procurement – largely public funded, through existing agencies or project sponsors;
•   PFI – now commonplace but still traditionally used to deliver key public projects such as schools,
    hospitals and roads, rather than complex mixed-use regeneration schemes; or
•   Other public private partnerships – often the preferred vehicle nowadays. These PPPs could
    take the form of new innovative development style agreements or new joint venture companies –
    the appropriateness of the vehicle needs to reflect the key drivers behind the project/s.
•   City Development Companies – a new form of partnership announced by Government which
    provides for a coordinated approach to deliver accelerated growth.

Frequently the main challenges to establishing a partnership, vehicle or company are:
•   Ensuring that the partners are clear in terms of the remit of the entity – i.e. what do we need it to
    do?
•   Understanding what is necessary to deliver the above – e.g. funding, skills, planning or other
    statutory powers;
•   Learning from best practice and models elsewhere – but realising one size does not fit all; and,
•   ‘Designing’ a delivery vehicle to fit the above – but being re-assured that from legal, tax and
    commercial standpoints the company is fit for purpose.
                                                                       Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 52



Therefore, in selecting the appropriate delivery vehicle for Plymouth the following options are
available.


                           Figure 1 - Delivery Vehicle Summary

                                    Public / Public Partnership                      Public/Public or Private Partnership
                           Strategic Partnership - Interventionist                   ‘Commercial’ Delivery Vehicle
                             Often a company limited by guarantee with a role          Typically a company limited by guarantee/share
                             and resources defined by founding members.                with strong private sector involvement,
                             Examples include:                                         Other examples include:
                             -Urban Development Corporations                           -Joint Ventures
                             -‘Bespoke’ Development Vehicles
                                                                                       -Development agreements
      Degree of Autonomy




                           Strategic Partnership – Coordinating                        -Limited Liability Partnerships
                             Often a company limited by guarantee with a role        ‘Public’ Sector Delivery
                             and resources defined by founding members.
                             Examples include:
                                                                                       -Either through mainstream programmes or
                             -Urban Regeneration Companies                             JV’s/partnerships with other Agencies
                             -Single Regeneration Budget (SRB Areas)/City
                             Challenge ?                                               -And many other forms – e.g. in-house provision

                            Working Partnership
                             Typically an unincorporated vehicle with documented
                             ‘rules of engagement’.
                             Examples include:
                             -Sub-Regional Partnerships, LSP’s
                             -In house provision



                               Typical ‘Umbrella’ / Delivery Vehicles                     Typical Project Delivery Vehicles




Examination of these options, in our experience, suggests:
•   Clarity is required between overarching delivery vehicles and project specific delivery
    vehicles;
•   The former – at least in terms of direct investors – tend to be Public Public Partnerships, and as
    such, the role of the private sector and conflicts of interest need to be carefully managed;
•   Arguably, the most effective vehicles in terms of delivery have been some of the more
    interventionist structures – though often this results in a loss of democratic accountability due to
    the degree of autonomy exhibited by these organisations;
•   Project delivery vehicles have greater clarity in terms of the role of the private sector and are
    usually extremely delivery focussed rather than strategy orientated; and,
•   There is potential to identify a range of hybrid models designed specifically for the individual
    contexts.

Experience suggests also that there are a number of other issues to assess in order to determine
whether a proposed delivery vehicle is genuinely meeting its objectives in the most efficient manner
and is therefore likely to engage the private sector. The key ‘tests’ are contained in Table 1 below.
                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 53



                                             Table 1 Fit for Purpose Test
   Test                       Why?
                              Whichever structure is selected should ‘add value’ to the existing organisations and
                              delivery mechanisms in place (otherwise the chosen delivery vehicle will at best
             Additionality
                              only ‘replicate’ the activities of existing organisations and, at worst, compete with
                              these bodies)
                              In terms of ensuring that the objectives, projects and programmes to support these
               Efficiency
                              objectives are delivered in a timely, effective and focussed manner
                              Future economic and social conditions are, at best, difficult to predict over the
                              medium to long term and, consequently, whichever delivery vehicle is selected
                Flexibility
                              requires to be able to adapt to changes in market conditions, political and funding
                              regimes as well as the needs of the local community
                              The option selected must be practical in terms, for example, of attracting funding
            Deliverability
                              support, political ‘buy-in’ and private sector commitment
                              In delivering objectives, and projects and programmes, clear lines of accountability
           Accountability     and responsibility will be required to inform, evaluate and monitor progress and to
                              attract funding support
                              The objectives set for regeneration are primarily aimed at the needs of residents
           Representative     and, as such, the delivery vehicle requires to reflect and represent such needs both
                              within the area and to “external” investors and funders
                              Resource commitments required for delivery need to generate benefits and positive
          Value for Money
                              returns in the most cost effective manner



TOWARDS IMPLEMENTATION

In this section, one suggested delivery arrangement for Plymouth going forward is presented. This
model is based upon a review of the relative merits of different delivery processes currently being
applied in UK regeneration areas. We start by setting out delivery mechanism principles that we
believe should be the cornerstone of any process for successfully delivering the Plymouth Vision.

Key Delivery Mechanism Principles
(i) Private sector leadership

Sustainable economic development in cities will only be achieved by building a competitive business
environment that generates jobs, income and wealth opportunities for local residents. As economies
become more global and the pace of change increases, localities need to build on their assets to
retain, grow and attract business, as well as become more innovative and responsive to change.

This requires a shift away from defining the task of urban regeneration in terms of reducing poverty to
a much more positive view based around creating economic advantage and opportunity for enterprise
development. Engaging the private sector to do this is essential. Plymouth requires the development
of a sustainable business population that is able to identify and benefit from the competitive
advantages that the City can provide.

The most deprived areas within a city are also hubs for wealth creation. The poorest communities
face daunting problems such as high crime, unemployment, lack of suitable premises, shortage of
management and staff skills, and negative perceptions that discourage business creation and private
investment. Yet, these are areas with significant economic advantages such as available workforce,
strategic locations, and underserved local retail markets. These communities are usually seen as
unproductive areas, but they really are untapped sources of enterprise growth, job creation and new
markets.

Public sector organisations that aim to engage the private sector in regeneration initiatives should be
aware of some of the barriers that this process may face. Major challenges that exist in urban
economic development include the ‘silo’ effect of different government entities following separate
agendas, the fragmentation of multiple organisations often working at cross-purposes, and the
challenge of engaging local leaders who are over-committed. The economic and political structure in
the UK at the local level is often a barrier to public-private collaboration.

New policy tools in the form of Local Strategic Partnerships, Business Improvement Districts, new
forms of public and private partnerships, and discussion of financial devolution have all improved
                                                  Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 54



coordination in recent years. Local and regional institutions need to be created that bring business to
the table, not just to advise on economic development issues, but to play a leadership role. This
requires public institutions to become partners and facilitators in the economic development process.

(ii) Plymouth’s role as a City Region

City-Regions are the enlarged territories from which core urban areas draw people for work and
services such as shopping, education, health, leisure and entertainment. The city-regional scale also
plays a significant role for business in organising supply chains and accessing producer services. As a
scale for policy intervention in England, the City-Region has greater economic and cultural resonance
than current administrative regions and local authority districts.

The economic logic for a city-regional component to policy-making has become more powerful as the
economic performance of cities has become increasingly critical to that of the regions in which they sit.
Across the country, Gross Value Added (GVA) data now show that the major City-Regions outperform
their regions and show higher rates of growth in GVA. Strong City-Regions are a necessary – even
though they may not be a sufficient – condition for ensuring optimal economic growth. Research
evidence shows that small businesses such as the cultural and creative industries and large
businesses such as aerospace rely heavily on informal local networks and that their supply chains
draw heavily on contacts drawn from within their City-Region.

Therefore, while cities are usually defined by their administrative boundaries, the economic impact of
these cities often results in mutually beneficial outcomes with the surrounding areas. The City-
       14
region reflects the relationship between the city and surrounding area and communities, and the way
people and organisations access services, jobs and cultural activities. At the national level,
Government now recognises that large cities – such as Plymouth – are key to driving both national
and regional competitiveness and, in particular, the development of the knowledge economy. This
focus highlights the need for mechanisms that are able to facilitate coordinated work across
administrative boundaries and policies to take into account the city-region relationship. The Local
Government White Paper “Strong and Prosperous Communities” sets out a suite of opportunities to
enable this cross-sector and cross-authority working which Plymouth will need to grasp very early if it
is to deliver on its ambitious, yet deliverable agenda.

It is increasingly recognised by Government that City Regions are the main drivers of economic
growth:
•    The recently published DCLG report ‘A Framework for City-Regions’ concludes that the economic
     focus on City-Regions fits well with the current logic of government policy.
•    The work of the ‘Core Cities’ research suggests that the most competitive regions in Europe
     contain the most competitive cities. The economic reach of larger cities has usually grown into
     their surrounding areas depending on work and commuter patterns, housing availability and
     affordability and retail catchments.
•    The ‘State of the Cities’ report puts the strengthening of city economies at the forefront of the
     urban policy agenda and provides a context for a focusing on the economic role of City Regions.
•    Most significantly, the introduction of a stronger city-regional policy framework would potentially
     help address both elements of the Regional Economic Performance (REP), Public Service
     Agreement (PSA) target which commits ODPM, HM Treasury (HMT) and the Department of
     Trade and Industry (DTI) to ‘make sustainable improvements in the economic performance of all
     English regions and over the long term reduce the persistent gap in growth rates between the
     regions’.




14
  City-region is recognised as a credible economic term within the concept of the knowledge economy, and is
used by land-use planners, economists and urbanists.
                                              Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 55



In the UK, the main cities typically are, however, under-performing relative to the national economic
performance. A recent DCLG report on the State of English Cities indicates that Plymouth performed
below the average English city over the period 1995 – 2002.

If Government decided to develop and deliver a national framework for City Regions, based on
reducing the gap between regional growth rates and focused on a smaller number of City Regions, it
would be looking for “trial” City Regions. These would need to demonstrate how potential
improvements in economic performance would help reduce the gap in regional growth rates and the
accessibility to the development of partnerships through which to enhance economic competitiveness
in partnership with government. Plymouth would be well placed to take up this challenge.

Plymouth 2020 – Local Strategic Partnership

The LSP was established in 2003 with a responsibility to improve the ‘well being’ of Plymouth and a
mandate to deliver the City Strategy. The City Strategy has set out its vision that Plymouth will
become ‘one of Europe’s finest, most vibrant waterfront cities, where an outstanding quality of life is
enjoyed by everyone’. The City Strategy also encompasses the aspirations and priorities of the
Neighbourhood Renewal Strategy and Plymouth’s commitment to the Sustainable Communities
agenda.

The LSP established four theme groups through which it is seeking to deliver the eight strategic
objectives of the City Strategy. These theme groups are:
•   Healthy – to improve the health, well being and social care of local people
•   Wealthy – to develop a city which creates and shares prosperity
•   Safe – to reduce crime and disorder
•   Wise – to promote a location for learning, achievement and leisure.

The LSP is now well established in the City and all the key local and regional stakeholders are well
represented on the LSP Board. There would appear to be some issues around effectively
communicating the benefits and evolving impact of the LSP to the private sector and community
groups. There is a strong case for ensuring that the LSP remains at the heart of any delivery
mechanism established for the Action Plan. Fundamentally, the LSP has legitimacy and a license to
operate across the City because it is accountable to all the key stakeholders with a vested interest in
the successful transformation of Plymouth.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 56



A NEW APPROACH FOR PLYMOUTH

Currently, the economic development strategy for Plymouth is being driven forward by the Wealthy
Theme Group of the LSP. In formulating a delivery strategy for Plymouth Vision it is clear that this
process needs to be owned and accountable to the LSP. Nevertheless, a new approach to the
delivery of the Plymouth Local Economic Strategy is required because of inherent limitations of the
Wealthy Theme Group structure and its operations. These limitations are:
•   The Wealthy Theme Group is a forum for holding to account the key local stakeholders, but is not
    primarily a delivery focused organisation;
•   The Wealthy Theme Group is not currently able to mobilise the resources and leadership of the
    private sector in Plymouth and its sub-region in the optimum manner;
•   The successful delivery of the Plymouth Local Economic Strategy is predicated on an integration
    of the priorities across all four of the Theme Groups and cannot be delivered by the Wealthy
    Theme Group alone.

By way of illustration of new approaches adopted in other UK cities, a case study of Creative Sheffield
is presented below, where new delivery and institutional structures have been created to help
transform the economic fortunes of Sheffield as the first City Development Company.

      Creative Sheffield
      Creative Sheffield is a new ‘city economic regeneration company’ to be developed in
      Sheffield with the purpose of transforming the performance of Sheffield’s economy over a
      period of 15 years. Explicitly, ‘Creative Sheffield’ will seek to deliver higher levels of
      economic growth and enhance the competitiveness of the city. It will also help Sheffield to
      play a stronger role in the sub-region.

      Creative Sheffield will:
               Be a company limited by guarantee;
               Be a limited life organisation;
               Have a territorial coverage of the City of Sheffield;
               Provide a new leadership model for city economic regeneration; aiming to reposition
               Sheffield.

      It has been proposed that Creative Sheffield will go through 2 phases of development. First;
      the Start-Up and Transition phase which will be for a 2 year period from January 2006 to
      December 2007. Second; will be the fully operational phase of ‘Creative Sheffield’ and will
      be the subject of a detailed Business Plan to be prepared during the 2 year start-up period.

      During the start-up period, some of the core activities of ‘Creative Sheffield’ will include:
      establishing the Chief Executive’s Office, production of an Economic Masterplan for Sheffield,
      strategic marketing, inward investment and development of the Knowledge Economy among
      others.

      During this transitional phase, four organisations will be integrated within Creative Sheffield.
      These include;

               Sheffield First for investment (inward investment organisation for Sheffield);
               Sheffield One (urban regeneration company for Sheffield);
               Cultural Industries Quarter Agency (organisation promoting the development of
               creative and digital industries in Sheffield);
               Knowledge Starts in South Yorkshire (a joint commercialisation programme
               involving University of Sheffield, Sheffield Hallam University and Sheffield City
               Council).

      Additionally, the Board is planning to increasingly engage the private sector generally and
      businesses in particular.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 57



Therefore, there is a clear need for the use of dedicated and focussed delivery mechanisms for the
implementation of the Plymouth Local Economic Strategy, rather than a conventional approach, given:
•   The complexity of the delivery process which will require careful co-ordination and a joined up
    approach;
•   The long term nature of the regeneration programme (at least 20 years);
•   The need to provide identity and branding to the regeneration of Plymouth;
•   The importance of achieving quick wins to build confidence and create momentum;
•   The need to create a favourable climate for private sector investment;
•   The upfront nature of the significant capital expenditure anticipated and downstream generation of
    income;
•   The critical need to manage the release of development land over time to support land values;
•   Ensure co-ordinated development in Plymouth with development opportunities and regeneration
    initiatives in the wider sub region;
•   The importance of securing balance between commercial performance and achievement of the
    preferred vision.

The key issue is how best to inject public funds so as to ensure:
•   Effective, rapid project delivery; and
•   A reasonable slice for the public sector of the value it adds to development through its investment.

A traditional approach has been for the public sector to make direct investments:
•   Upfront, to provide a platform for the regeneration (e.g. decontamination);
•   Co-funding of non-commercially viable projects through grants;
•   Direct investments in social infrastructure (e.g. schools) in parallel with investments made by
    developers in commercially viable projects.

Under this approach, the public sector tries to get its return either through land disposal proceeds
(where it owns part of the land), or through Section 106 obligations requiring the developer to provide
at least part of the accompanying infrastructure. There are three inherent weaknesses in this
approach:
•   The value for the public sector is extracted (in the form of sales proceeds and/or Section 106
    obligations) at an early stage in the project, where the perceived risks are higher, and the
    development surplus available for the public sector correspondingly lower.
•   The infrastructure surrounding housing tends to be dealt with as an ‘add-on’. The provision tends
    to be limited to that which can be extracted through Section 106 obligations or otherwise afforded
    from tight public sector budgets.
•   Long term accountability is weak. What can the public sector do if the infrastructure provided
    under Section 106 obligation performs poorly over the longer term? The developer will probably
    have exited years before.

One alternative approach for Plymouth – to complement rather than replace the traditional one
altogether – looks at building a long term partnership between the public sector and the private sector;
and above all, broadening this relationship to include the provision of parts of the economic
infrastructure, not just the commercially viable developments.

A City Development Company for Plymouth

Having reviewed all of the options we are of the view that there is a need to establish a new Local
Delivery Vehicle for Plymouth and this should be a City Development Company that would oversee
the implementation of all aspects of the Vision for Plymouth. A City Development Company would be
tasked with taking a overarching co-ordinating role between public and private sector stakeholders.
                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 58



A City Development Company would work with existing partnerships within the city and would be
based on a number of principles:


         -        A focus on delivery not strategy.

         -        Engagement with private and public sector partners able to drive delivery while
                  avoiding any commercial conflicts of interest.

         -        Ensuring the local authority demonstrates its strong community leadership role.

         -        Responding to the desire for local control and ownership of issues and required
                  actions.

         -        Ability to respond to the wish of partners for speed of action and simplicity of
                  approach.

         -        Retaining the flexibility to extend (or contract) its range of functions and to adapt its
                  own operational structure.

         -        Building on the will of public partners to use their statutory powers and ownership or
                  control of substantial land and property holdings to achieve the mutually agreed
                  aims of the partnership.

The Delivery vehicle will:

         -        Secure and maximize the effectiveness of the timely provision of infrastructure and
                  other public sector investment,

         -        Harness development benefits (and value where appropriate) that can be used to
                  support investment in infrastructure or other community benefits,

         -        Champion economic development,

         -        Secure effective engagement of partners and stakeholders, and align their
                  investment programmes, behind an agreed set of priorities.

         -        Attract new private and public/private investment partners into the city and maximize
                  benefits to the city from regional funds, UK state aid and European programmes.




We also believe that the promotion of the Plymouth City Region is fundamental to the long-term
economic transformation of the City. This requires new ways of thinking and working that transcend
city / sub regional boundaries, and integration of spatial planning with economic development
planning. There are currently two sub regional partnership bodies that need to have close links with
the City Development Company. These are:
•   Plymouth Sub Regional Economic Partnership: The Plymouth Sub-regional economic
    partnership is the public/ private partnership setting the economic priorities for the Plymouth travel
    to work area, and provides the economic input into the Plymouth 2020 Partnership. The
    partnership was developed as various organisations within the sub region acknowledged that
    there is a high degree of interdependency between Plymouth and the small towns and rural
    communities surrounding the City. This is most evident in terms of economic and employment
    links and reflected in a number of existing or emerging economic development structures that
    operate at the Plymouth sub regional level.
•   Plymouth, South East Cornwall and South West Devon Steering Group: The Plymouth,
    South East Cornwall and South West Devon Steering Group leads the spatial strategy of the Sub
    Area defined around Plymouth in which there are strong functional relationships with the City,
    such as a high proportion of people travelling in for work. The SWRA has asked Plymouth City
    Council, Devon and Cornwall County Councils, Dartmoor National Park Authority and the District
                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 59



    Councils of South Hams, West Devon and Caradon to put forward a strategy for the area. This
    should set out a vision for what the Sub Area will be like in 2026 and will be used to inform the
    Regional Spatial Strategy (RSS). The Sub Area is defined as the area around Plymouth in which
    there are strong functional relationships with the City, such as a high proportion of people
    travelling to the City for work. There have been Community Strategies prepared for all local
    authorities in the Sub Area (including Plymouth’s Mackay Vision for the regeneration of the City).



A clear brand and marketing strategy
There is a clear requirement to promote Plymouth as an investment location and to communicate the
obvious and less obvious benefits of investing in the city. There are however a number of different
audiences for any communications strategy these might include new and existing investors, visitors,
new and existing residents. We have identified two core themes on which to focus initial marketing
and branding efforts that will underpin the various elements of the strategy.

1. Plymouth: the high technology hub
This branding should help Plymouth to target its investor offer to high value added activities in the high
tech and knowledge based sectors, in particular business services, creative industries and healthcare
industry. This effort will link to other priority actions to make sure that the location requirements for the
sectors to be attracted are actually in place, and that the location requirements that are already in
place are promoted. The tourism industry should also contribute to this initiative by profiling itself for
business tourism and by enhancing the offer mostly on hotels, event amenities and infrastructure
access. Overall achieving this branding requires a strong marketing strategy focused at the right
sectors and using business means (e.g. specialised magazines).

2. Plymouth: the national events capital
This branding takes as cornerstones the marine and lifestyle assets of the city of Plymouth. It aims to
build on marine assets for the development of national (e.g. marine aquarium) and international (e.g.
cruises) visiting and event tourism (e.g. festivals). It provides an offer of well maintained historic
marine assets that are used yearly for set national events. There is an obvious linkage with the
creative industry, particularly the performing arts sector. The Creative Industries Cluster and its
businesses should plan and develop a cultural map of Plymouth and a central diary of creative events,
meetings, sourcing opportunities etc. This would help to promote and grow the creative industries
sector, enhance the cultural attractions and events offered by Plymouth and create opportunities for
further collaboration between local businesses.
Appendices
                                              Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 61




Appendix A. Action Plan

The following appendix outlines an indicative Action Plan which could be used to deliver a step
change in the Plymouth Economy. Clearly the Action Plan will need to be adopted and reviewed
by the Strategic Delivery Vehicle when appropriate. A summary of the core components and
actions within the plan is also provided.


Summary

                                       Sub-
 Theme           Core Component                          Project Action
                                       Component
 1. Business     1 Mobile and          Property and      1.1 Develop a public-private partnership
 (Diversifying   Expanding             Land              mechanism to address cluster/investor property
 the business    Investment                              requirements
 base)
                                       Incentives        1.2 Identify and improve availability of business
                                                         incentives
                                       Promotion         1.3 Establish Plymouth’s clear brand and
                                                         marketing strategy tailored to different target
                                                         audiences:
                                                         1)High technology
                                                         2) National events capital
                 2 Entrepreneurship                      2.1 Enterprising programme for young people

                                                         2.2 Plymouth's Dragons Den
                 3 Growing Small                         3.1 Business to Business Mentoring
                 and Medium Sized
                 Businesses
                 Sector Action Plans   A Creative        A.1 Define an appropriate leadership and delivery
                                       Industries        body

                                                         A.2 Information Exchange
                                                         A.3 Digital Media R&D
                                                         A.4 Encourage Market Focused R&D (Proof of
                                                         Concept Scheme)
                                                         A.5 Image and Profile
                                       B Maritime        B.1 Draw on the Marine Science Park study by
                                       Industries        DTZ Pieda
                                                         B.2 Explore greater linkages between yacht
                                                         charter and hospitality industries
                                                         B.3 Skills
                                       C Tourism,        C.1 Leadership and Strategy
                                       Culture and
                                                         C.2 Tourism Offer
                                       Leisure
                                                         C.3 Skills
                                       D Health and      D.1 Cluster Leadership
                                       Medical
                                                         D.2 Skills
                                       E Advanced        E.1 Cluster Leadership
                                       Engineering
                                                         E.2 Local Procurement
                                                         E.3 Skills Development
                                       F Business        F.1 Develop a public-private partnership
                                       Services          mechanism to address cluster/investor property
                                                         requirements
                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 62




                                            Sub-
Theme               Core Component                           Project Action
                                            Component
2. Skills (Skills   1 Increase Level 4                       1.1 HE Access Support
and Learning)       Qualifications
                                                             1.2 Graduate Retention Programme
                    2 Effective Learning                     2.1 Effective Advice and Guidance
                    Pathways
                                                             2.2 Plymouth Citizens Learning Charter
                                                             2.3 Plymouth Learning Pathway
                                                             2.4 Development of schools as extended learning
                                                             facilities
                    3 Workforce                              3.1 Skills Diagnostic Support
                    Development
                                                             3.2 Virtual Business Training Zones
                                                             3.3 Managerial Capacity Uplift
                                                             3.4 Plymouth Post 16 Vocational Strategy
                    4 Skills for Target                      4.1 Plymouth City Growth Skills Academy
                    Sectors
                    5 Knowledge Transfer                     5.1 Plymouth Knowledge Transfer and
                                                             Commercialisation Programme
                                                             5.2 Plymouth R&D Ventures
3. Centres          1 Appraise and
                    Implement the
                    Mackay Vision
                    2 Complementarity
                    between key centres,
                    especially the bi-
                    nodal area of City
                    Centre and Derriford
                    3 Office
                    Accommodation and
                    Employment Land
                    4 Improve the
                    Housing Offer
                    5 Improve
                    Connectivity
4.                  1 Gaining a better                       1.1 Establish a 'City Observatory'
Participation       understanding of the
                                                             1.2 Establish and service a 'Skills Board'
(Economic           problem
Inclusion)
                    2 Increasing            1 Tackling the   2.1 Reaching out into priority wards through
                    employability of        Barriers         mobile multi-agency teams
                    adults and young                         2.2 Increasing childcare provision
                    people across                            2.3 Create specific programmes to support carers
                    Plymouth
                                                             2.4 Create specific programmes to support lone
                                                             parents into training and employment
                                            2 Steps into     2.5 Intermediate Labour Markets
                                            Employment
                                                             2.6 Support the expansion of existing
                                                             programmes
                                                             2.7 Helping people sustain employment
                                                             2.8 Work with major employers to ensure a high
                                                             take up of employment opportunities by local
                                                             residents
                    3 Using                                  3.1 Roll out Neighbourhood Management across
                    Neighbourhood                            Devonport Neighbourhood and across NRF wards
                    Management to tackle
                    economic exclusion
                    in Plymouth (Ensuring
                    Plymouth
                    neighbourhoods are
                    clean, safe and well
                    managed)
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                  Delivery (roles) & Funding     Linkage, synergy and best practice
Core Components       Project Action                                                                                                                         Timescales
                                                                                  Implications                   components
Diversifying the      1.1     Develop      a    public-private    partnership     Lead organisation: City        Linkage/synergy with:                       Mechanism  in
Business Base         mechanism to address cluster / investor property            Development Company, in        Mackay Vision for Plymouth; Theme 1.        place by April
Component 1           requirements                                                conjunction with Plymouth      Business - Sector Action Plans; Theme       2008.
Mobile and            It is crucial that business needs are at the forefront of   City Council.                  3. Centres – Core Component 1
expanding             city planning for employment use to make sure that                                         Appraise and Implement the Mackay
investment            their needs are addressed directly by:                      Approx cost: £60,000 per       Vision; and, Theme 3. Centres – Core
(Property and land)                                                               annum.                         Component 3 Office Accommodation and
                      •   Promoting available real estate to investors and                                       Employment Land.
                          local business;
                      •   Producing a coordinated timeline of expected                                           Best practice:
                          construction projects to plan work packages;                                           Draw on experience of Glasgow and
                      •   Ensuring affordable workspace is available for big                                     Dublin.
                          (e.g. call centres) and small businesses (e.g.
                          creative businesses).


                      There may also be scope for additional skills and
                      property interventions to ensure that Plymouth has the
                      capability to respond to the opportunities. Other
                      activities such as the marine and tourism sectors would
                      also benefit from investments in infrastructure. Cities
                      such as Barcelona have used the marine sector as part
                      of the overall development and promotion strategy.
                      This might include the potential for bringing the ever-
                      growing cruise market into Plymouth.


Diversifying the      1.2 Identify and improve availability of business           Lead organisation: City                                                    Programme
Business Base         incentives                                                  Development        Company.                                                established    by
Component 1           The European Commission has issued proposals on             Possible    funding    from                                                July 2007.
Mobile and            the grant regime from 2007 onwards. The UK                  Plymouth’s Local Enterprise
expanding             Government estimates that the proposals would see           Growth     Initiative   bid.
investment            the percentage of the UK population in areas eligible       Potential             ERDF
(Incentives)          for state aid fall from its current level of 30.9% to a     Competitiveness funding
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                      Delivery (roles) & Funding   Linkage, synergy       and   best   practice
Core Components      Project Action                                                                                                                               Timescales
                                                                                      Implications                 components
                     lower level. Plymouth has retained its Tier 2 Assisted
                     Area status..

Diversifying the     1.3 Establish Plymouth’s clear brand and                         City         Development     Branding initiative.                           Launch branding
Business Base        marketing strategy tailored to different target                  Company.                                                                    and   marketing
Component 1          audiences                                                                                     Synergy with Creative Industries (Theme        campaign     by
Mobile and           Actions to improve the investor offer are very important         Approx cost: £100,000 per    1. Businesses - Sector Action Plans: A.        September
expanding            but they must be accompanied by parallel measures to             annum            (concept    Creative Industries) and Marine Sector         2007.
investment           promote Plymouth as an investment location and to                development).                (Theme 1. Businesses - Sector Action
(Promotion)          engage existing and potential investors about the                                             Plans: B. Maritime Industries).
                     merits of investing in Plymouth. A significant uplift in
                     the current resources devoted to economic promotion
                     and development will be required. This must include
                     additional resources for working with existing investors
                     to encourage new investments aimed at moving up the
                     value chain of goods and services.

                     We have identified two streams in which Plymouth
                     should focus its branding and marketing efforts.


                     1. Plymouth: the high technology hub
                     This branding should help Plymouth to target its
                     investor offer to high value added activities in the high
                     tech and knowledge based sectors, in particular
                     business services, creative industries and the
                     healthcare industry. This effort will link to other priority
                     actions to make sure that the location requirements for
                     the sectors to be attracted are actually in place, and
                     that the location requirements that are already in place
                     are promoted.        The tourism industry should also
                     contribute to this initiative by profiling itself for business
                     tourism and by enhancing the offer mostly on hotels,
                     event amenities and infrastructure access.
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                  Delivery (roles) & Funding   Linkage, synergy    and   best    practice
Core Components      Project Action                                                                                                                         Timescales
                                                                                  Implications                 components
                     2. Plymouth: the national events capital
                     This branding takes as cornerstones the marine and
                     lifestyle assets of the City of Plymouth. It aims to build
                     on marine assets for the development of national (e.g.
                     marine aquarium) and international (e.g. cruises)
                     visiting and event tourism (e.g. festivals). It provides
                     an offer of well maintained historic marine assets that
                     are used yearly for set national events. There is an
                     obvious linkage with the creative industry, particularly
                     the performing arts sector. The Creative Industries
                     Cluster (relating to 1. Businesses: Sector Action Plans:
                     A. Creative Industries) and its businesses should plan
                     and develop a cultural map of Plymouth and a central
                     diary of creative events, meetings, sourcing
                     opportunities etc. This would help to promote and grow
                     the creative industries sector, enhance the cultural
                     attractions and events offered by Plymouth and create
                     opportunities for further collaboration between local
                     businesses.
                                                                                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 66




THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                 Delivery (roles) & Funding    Linkage, synergy and best practice
Core Components      Project Action                                                                                                                         Timescales
                                                                                 Implications                  components
Diversifying the     2.1 Enterprising programme for young people                 Plymouth City Council plus    Already     existing    initiatives from     April 2007
Business Base        Raise the profile of enterprise and innovation in school,   business         community,   implementing organisations plus National
Component 2          college and university curricula and encourage young        Connexions, LSC, Business     Strategy for Enterprise Education.
Entrepreneurship     people to set ambitious goals for their adult lives,        Link, Young Enterprise,
                     embracing a full range of options including enterprise,     University of Plymouth.       Synergy      with      Plymouth’s  Local
                     self-employment and higher educational attainment.                                        Enterprise Growth Initiative and Theme
                     For this to take place the following is suggested:          Approx cost: £30,000 per      2. Skills (especially, Core Components 1
                     • Best practice and lessons from the Business and           annum.                        Increase Level 4 Qualifications 1.1
                          Enterprise specialist schools model are taken on                                     Graduate Retention Programme and 3
                          board;                                                 Possible     funding   from   Workforce Development 3.4 Plymouth
                     • A Business Enterprise Manager for every school,           Plymouth’s Local Enterprise   Post 16 Vocational Strategy).
                          who can adopt and implement the positive lessons       Growth Initiative bid.
                          from Enterprise in Education pathfinders nationally,
                          the Skills to Work programme and the Young
                          Managers programme;
                     • Engaging more employers in the provision of more
                          and better work placements, ensuring that all
                          young people are able to access, and ready to
                          take advantage of, rich work experience
                          opportunities; additionally employers should be
                          encouraged to identify better their skill demands
                          and to aim to fulfil those with local people;
                     • Greater use of business role models in schools,
                          building on the work of Young Enterprise, to
                          demonstrate ambitious goals are within reach by
                          more frequently bringing them close to successful
                          people from their own communities;
                     • Engage with the University of Plymouth in its role
                          as one of the main promoters of leading edge
                          thinking and innovation in Plymouth.
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                 Delivery (roles) & Funding     Linkage, synergy and best practice
Core Components      Project Action                                                                                                                          Timescales
                                                                                 Implications                   components
                     2.2 Plymouth’s Dragons Den                                  Chamber of Commerce,           Proof of concept initiative and Digital      Initiative could
                     One of the main challenges to get new businesses            Federation      of  Small      Media R&D fund.                              be set up and
                     rolling is the lack of start-up loan schemes particularly   Businesses, University of                                                   running       by
                     for young entrepreneurs (e.g. as an alternative to the      Plymouth, Tamar Science                                                     December      of
                     Student loan scheme) that reward innovation and self-       Park.                                                                       2007.
                     initiative. One way of promoting these is through the
                     creation of an Economic Strategy branded investment         Approx cost: £150,000 per
                     fund for young Plymouth entrepreneurs based on the          annum.
                     ‘Dragon’s Den’ format.
                                                                                 Possible     funding   from
                                                                                 Plymouth’s Local Enterprise
                     Young engineers and creatives will pitch their business     Growth      Initiative   bid
                     ideas to a panel of five senior leaders (‘dragons’) from    (Revolving Loan Fund).
                     the Plymouth businesses community in a bid to secure
                     investment finance. Each panel member will put up
                     £30k per annum from their individual firms as part of
                     their ongoing CSR commitment, giving a total
                     investment fund of £150k per annum to invest in two
                     business ideas with high growth potential. There will be
                     significant opportunities for promotion via local press
                     and other networks.


                     The University of Plymouth should also play a role.
                     Not only is academia an important source of spin-off
                     projects but it can also serve as an important promoter
                     of innovation to its students and the wider community.
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                 Delivery (roles) & Funding   Linkage, synergy and best practice
Core Components      Project Action                                                                                                                        Timescales
                                                                                 Implications                 components
Diversifying the     3.1 Business to Business Mentoring                          Chamber of Commerce,         Business      Link,    Plymouth   Local      September 2007
Business Base        The creation of a business mentoring programme that         Business Link, Enterprise    Enterprise Growth Initiative, Enterprise
Component 3          will release some of the extensive knowledge and skills     Plymouth, Federation of      Plymouth and other small business
Growing Small and    currently locked in established Plymouth firms. This        Small Businesses.            mentoring initiatives.
Medium Sized         intensive and structured programme will support and
Businesses           nurture entrepreneurs and SMEs with high growth             Cost: no direct financial
                     potential but who are currently under performing. It will   cost (opportunity cost of
                     provide face-to-face support and focus on direct            business             time
                     business impact. A comprehensive ‘Mentoring Pool’ to        commitments).
                     hand-hold businesses through the challenges and
                     opportunities of growing their market could be put
                     together with credible business leaders from within the
                     City and beyond, including representatives from
                     leaders of cluster groups and businesses in priority
                     growth sectors.
                                                                                                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 69




Diversifying the Business Base
ACTIONS – SECTOR ACTION PLANS

How can the existing sector offer be improved?

A summary of potential actions to improve and strengthen the investor offer in the targeted sectors is given in the following table.
POTENTIAL ACTIONS
Sectors           Property                             Skills                                     Hard & Soft Infrastructure              Incentives
                  Establish whether lack of
A. Creative                                            Foster closer relationships between        Create effective networks to
                  suitable accommodation is                                                                                               Promote existing schemes.
industries                                             industry and academia.                     promote clustering effects.
                  barrier to growth.
B. Marine         Ensure adequate supply of            Focus on delivery of targeted skills
                                                                                                  -                                       -
industries        premises.                            initiatives.
C. Tourism and Support of flagship initiatives                                                    Attract ‘high quality’ branded
                                                       Address labour ‘shortage’ issues.                                                  Promote existing schemes.
leisure           e.g. national marine museum.                                                    schemes.
D. Health &       Ensure ongoing success of            Foster closer relationships between
                                                                                                  -                                       -
Medical           Tamar Science Park.                  industry and academia.
                                                                                                                                          Investigate the potential of new R&D and
                                                       Skills development programme to
E. Advanced         Ensure adequate supply of                                                     Environmental improvements to           training initiatives under European
                                                       meet needs of sector and support
engineering         premises.                                                                     existing key sites.                     Commission block exemption rules for all
                                                       other sectors – medical / marine.
                                                                                                                                          sectors.
                                                                                                  Focus on continuing the
F. Business         Ensure adequate supply of                                                                                             Explore potential for small scale grants
                                                       Develop targeted skills initiatives.       physical and architectural
services            quality office premises.                                                                                              targeted on key sectors.
                                                                                                  aspects of the city centre.

A. Creative Industries

The Creative Industries cluster is a difficult concept to define and will mean different things in different areas. Creative Industries cover advertising, architecture, the creative
arts, design, photography, film and video, music and performing arts, publishing, TV and radio, and related software and IT activity. Currently the sector employs 3,000 – 4,000
people in Plymouth, mostly in small businesses. During the Economic Visioning Summit, it was made clear by participants that Digital & Media businesses are the main focus
of the Creative Cluster. The creative industries sector has been identified within the City Growth Strategy (2004) and the Economic Visioning Study (2006) as a key business
sector for Plymouth, with potential for considerable growth in terms of new businesses, employment and wealth creation, albeit from a small base in some of the newer
activities. The growth potential of the creative industries will depend to a large extent on premises provision and the ability of these activities to cluster across networks.
                                                                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 70




Plymouth Business Growth is in the process of establishing a sector group for the Creative Industries and this will comprise a variety of sub-sector groups such as Plymouth
Media Partnership, Plymouth Music Industries Group and others. Additionally, various action plans have been identified by bodies such as the ACIC, PCC and Creative
Plymouth.

According to Plymouth Business Growth, the following are the main drivers and opportunities for the creative business sector in Plymouth:

    1.   Key drivers to the growth of the creative business sector in Plymouth:

         •   Large educational and skills infrastructure - Plymouth College of Arts and Design (PCAD) (one of only 4 specialist colleges of Art & Design in the UK with c.4,000
             students) and University of Plymouth (expanding cultural quarter and 1,300+ students) with linkages to 19 other University Plymouth Colleges;
         •   Range of sector-specific support services and networks, especially Plymouth Media Partnership, Creative Entrepreneurs, Arts Matrix and Innovate;
         •   Continued growth of key exemplars Theatre Royal, TR2 and Twofour Productions.

    2.   Key opportunities to support the growth and success of new and existing creative businesses and promote Plymouth as a ‘creative city’:

         •   Provide a clear and ‘joined up’ leadership and delivery focus for creative businesses within the city;
         •   Generate new business start-ups, from graduates of the University and PCAD;
         •   Raise the profile of Plymouth as a dynamic ‘creative city’;
         •   Grow the creative business sector which should increase the graduate retention rate of creative graduates.

Plymouth Business Growth has identified a series of key actions for 2006/07, which are seen as ‘do-able’ and do not require extensive investment. These include:
    •   Enabling creative businesses to find, and make greater use of, the services that are there to assist them, through measures such as a creative web portal, joint event
        planning, a services directory and skills route maps.
    •   Increase the number of business start-ups from the PCAD and the University of Plymouth student populations by running programmes to inspire, inform and assist
        graduates in setting up creative businesses in Plymouth;
    •   Events to raise the national and international profile of Plymouth as a ‘creative city’;
    •   Increased bespoke skills support through PMP and its Skills Academy proposal.

Some of these actions would be addressed by projects proposed in the Business theme above, such as Core Component 1: Mobile and Expanding Investment - 1.3 Promotion
that addresses branding and marketing, or Core Component 2: Entrepreneurship - 2.1 Enterprising programme for young people and 2.2 Plymouth’s Dragons Den, that refer to
entrepreneurship. These projects already have natural links with the Creative Industries sector. Nevertheless, given this background, the table below proposes what we see
as key projects to be implemented by Plymouth to help the Creative Industries sector grow.
                                                                                                                       Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 71




THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                               Delivery (roles) & Funding   Linkage, synergy and best
Sector       Project Action                                                                                                                             Timescales
                                                                                               Implications                 practice components
Creative     A.1 Define an appropriate leadership and delivery body                            Plymouth            Media    Leadership and delivery     Appointments           by
industries   There is the need to identify or develop a new body that will lead the sector’s                                vehicles.                   December 2007 and
                                                                                               Partnership and
             strategy. In the case of Plymouth, given the weight of the Digital & Media                                                                 consolidation of delivery
                                                                                               Creative Plymouth.           Links with Theme 1          body by April 2008.
             businesses, the Plymouth Media Partnership (PMP) ought to play a key role                                      Business          Core
             both in strategy and action implementation. It is expected that as a leading      Approx: none besides         Component 1: Mobile
             and delivery body, Creative Plymouth would need significant investment in         time investment.             and          Expanding
             staff and resources (including its web portal).                                                                Investment – Property
                                                                                                                            and     Land;     Core
                                                                                                                            Component 3: Growing
             Besides delivering a Skills Academy, it is suggested that PMP gets engaged
                                                                                                                            Small    and   Medium
             in the creation and delivery of a Media and New Media Hub which provides
                                                                                                                            Sized Businesses.
             shared resources for existing companies as well as incubation and mentoring
             support for new companies. The Hub could potentially offer a range of key
             resources including IP advice and provide a one-stop-shop for appropriate
             linkages with other supporting organisations such as Business Link,
             Enterprise Plymouth or UK Trade & Investment. This project may have
             some resemblance with the ITTC set up at the Tamar Science Park. It could
             be located in the “Cultural Quarter” and linked closely with the University of
             Plymouth and PCAD.

             A.2 Information Exchange                                                          Creative Plymouth.                                       Network up and running
             It is difficult for small companies to make contact with the right people in                                                               by July 2007.
             large companies to develop new business. This should address not only
             larger business opportunities within the sector (e.g. Theatre Royal, BBC, and     Approx:    £50,000    per
             Western Morning News) but opportunities across other sectors that require         annum.
             creative services. A creative network would be helpful in organising focused
             networking events and facilitating contact between large and small
             companies. Also providing supply chain information on local creative
             services and a one-stop-shop for market information would be important in
             developing business opportunities for local creative businesses. Although it
             is suggested that this makes part of the services already provided by
             Plymouth Media Partnership and Creative Plymouth, other services should
             also be enhanced, communicated and made of easy access to the sector.
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                Delivery (roles) & Funding   Linkage, synergy and best
Sector       Project Action                                                                                                                              Timescales
                                                                                                Implications                 practice components
             A.3 Digital Media R&D                                                              Plymouth            Media    Theme 1. Business –         Start by April 2008.
             There is an important need for new entrepreneurs that develop ideas of new         Partnership.                 Core      Component 2
             start-ups. Nevertheless, to promote the development of higher value added                                       Entrepreneurship      2.2
             activities, it is also necessary to promote entrepreneurship within existing       Approx cost: £20,000 per     Plymouth’s       Dragons
             businesses through R&D. New products, business models and spin-outs                annum.                       Den and Theme 1.
             may create a larger number of employments than new small businesses and                                         Business     –     Sector
             therefore represents a crucial component of a growth strategy. It is               Possible funding from        Action Plans A. Creative
             suggested that the following options are explored:                                 Plymouth’s       Local       Industries A.4 Proof of
             • Promoting the development of internal innovation programmes in existing          Enterprise      Growth       Concept Scheme.
                businesses; and                                                                 Initiative bid.
             • The creation of a recognition event (e.g. awards) for innovations coming
                from the existing business base.

             It is not suggested that this initiative is linked to the Plymouth’s Dragons Den
             and the Proof of Concept project (to be explained below) due to the
             dimensions of funding required in existing businesses and the complications
             in terms of R&D ownership for investors outside of an existing business.
             A.4 Encourage Market Focused R&D (Proof of Concept Scheme)                         University of Plymouth       Theme 1. Business –         September 2007.
             Plymouth should use its large educational and skills infrastructure to             and PCAD.                    Core     Component 2
             encourage innovation and a more market focused research base. Though in                                         Entrepreneurship     2.2
             the field of technology and media bringing R&D to market is both shorter and       Approx cost: £20,000 per     Plymouth’s      Dragons
             simpler than in the other fields, we believe there is a stage which precedes       annum.                       Den and Theme 1.
             this where R&D in the field of digital media technologies and content would                                     Business     –    Sector
             be more market focussed through a Proof of Concept scheme. A Proof of                                           Action Plans A. Creative
             Concept scheme would help plug the gap between academic research and                                            Industries A.3 Digital
             full commercialisation by helping researchers take their ideas and inventions                                   Media R&D.
             out of the University and develop them into hi-tech, ingenious new
             companies. We recommend that such a scheme for the PCAD and the                                                 R&D.
             University of Plymouth is explored further in partnership with businesses.
             A.5 Image & Profile                                                                Creative Plymouth.           Maritime industries and     Start mapping by July
             Plymouth has an emerging dynamic creative sector - there is great potential                                     tourism sector plans.       2007.
             for further development in this sector. However, given the individual nature       Approx cost: £10,000 per
             of creative businesses, the promotion of Plymouth as a source of creativity is     annum (for mapping           Synergy with Theme 1.
             often fragmented and individual successes are potentially missed. If these         exercise)                    Businesses - Sector
             successes and talents are not celebrated and promoted it becomes even              £20,000 for web portal.      Action    Plans:   C.
                                                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 73




THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                 Delivery (roles) & Funding   Linkage, synergy and best
Sector         Project Action                                                                                                                             Timescales
                                                                                                 Implications                 practice components
               harder to attract new talent and business from within and outside the city.                                    Tourism, Culture and
               The creative cluster must take ownership of mapping out the creative and                                       Leisure and Theme 1.
               cultural assets and activities of the city and promoting these both locally and                                Businesses - Sector
               nationally (e.g. having a calendar of events that is distributed widely across                                 Action      Plans:     B.
               the city).                                                                                                     Maritime Industries.

                                                                                                                              Linkage with Theme 1.
                                                                                                                              Business      -     Core
                                                                                                                              Component 1 Mobile
                                                                                                                              and           Expanding
                                                                                                                              Investment – Promotion
                                                                                                                              2.    Plymouth:       the
                                                                                                                              national events capital.

B. Maritime Industries

The sector currently comprises a variety of activities including ship and boat building/repair, marine engineering, marine construction, environmental technologies,
communications, ship management, agency and freight forwarding, port operations, marine leisure and marine science activities. Employment in the marine industries is over
12,500, with Devonport Management Limited (DML) and Princess Yachts dominating the sector. Although SWRDA’s investment on the Marine Science Park needs to be
acknowledged for the development of high value added activities, we believe that the primary focus for the marine assets should be on branding rather than job creation - as
part of the overall image of Plymouth using its water-based location and assets as a lever to encourage more people to visit the city and to do business there. This could have
wider spin-offs in terms of encouraging other service activities to locate in Plymouth - using "quality of life" as one of the key location factors. It should also be taken into
account that the port sector can also offer opportunities for a relevant number of higher value added jobs (e.g. technicians, operators, etc). The marine sector could therefore
be nurtured in two ways - helping to grow investment and employment opportunities (e.g. leveraging Plymouth’s marine assets through the development of the Marine
technology / research and possibly a science park) as part of the overall strategy and promoting the sector as a key element of image-building for the City as a whole.

Any wider marketing strategy should be considering Plymouth’s marine assets when defining a brand for the city. This would drive the type of services to be developed by the
Maritime sector and the links with the tourism industry (e.g. events tourism, retreat tourism). It is also important to highlight that Plymouth’s marine capabilities do not relate
just to shipping but also to bioscience through the Plymouth Marine Science Partnership which presents interesting linkages with the health and medical cluster. This strategy
does not underestimate the role of the relatively untapped marine science activities undertaken by the University, Plymouth Marine Laboratory and the Marine Biological
                                                                                                                          Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 74




Association. There are future growth prospects in renewable energy, environmental goods and services, coastal defence, aquaculture, biotechnology etc. However, the scale
                                                                                                                                                                       15
of the job creation prospects is likely to be limited in the short – medium term. Employment growth of 600 is estimated over the period to 2026 (Employment Land Review ).

According to Plymouth Business Growth, the following are the main drivers and opportunities for the Maritime sector in Plymouth:

       1.   Key drivers to the growth of the maritime sector in Plymouth:

            •   Future of DML;
            •   Growth of specialist manufacturers (Princess Yachts) and supply chain boosts;
            •   Increasing tourist numbers arising from the positive promotion of the Plymouth brand, and of Plymouth’s maritime attractions.

       2.   Key opportunities to support the growth and success of companies in the maritime sector:

            •   Raise the profile of Plymouth as a successful maritime city for businesses and tourists;
            •   Support Maritime Plymouth as a focus for the growth and promotion of the sector;
            •   Business growth from the commercialisation of marine expertise held within Plymouth Marine Laboratory.

The following table details project actions, delivery & funding, linkage and timescales of implementation for the Maritime sector:




15   Baker Associates for Plymouth City Council Employment Land Review November 2005.
                                                                                                                        Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 75




THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                          Delivery   (roles)   &   Linkage, synergy and best practice
Sector     Project Action                                                                                                                                  Timescales
                                                                                          Funding Implications     components
Maritime   B.1. Draw on the Marine Science Park study by DTZ Pieda                        Maritime Plymouth,       Marine Science Park study by DTZ        April 2007
                                                                                          Health and Medical       Pieda.
                                                                                          cluster     leadership
                                                                                          bodies.
           B.2 Explore greater linkages between yacht charter and hospitality             Maritime Plymouth in     Links with Theme 1. Businesses -        Start September
           industries                                                                                              Sector Action Plans: C. Tourism,        2007
                                                                                          close collaboration
           It is important to make a distinction between the 'traditional' services                                Culture and Leisure and Theme 1.
           provided by Plymouth and the increasing commercial opportunities linked        with Creative            Business - Core Component 1
           to the tourism markets (e.g. National Marine Aquarium or cruise ports)         Plymouth.                Mobile and Expanding Investment –
           and to the potential organisation of national events that include the use of                            Promotion.
           the marine environment. Plymouth’s marine environment, and the lifestyle       Approx cost: depends
           opportunities that it presents, is probably Plymouth’s major asset for
                                                                                          on how it is
           tourism purposes. There are many linkages between the visitor economy
           and maritime activities that need to be better understood                      performed.

           B.3 Skills                                                                     Maritime Plymouth;       Theme 2. Skills.     PCFE CoVEs         Programmes in place
           Plymouth should focus on the delivery of targeted skills initiatives to        University of            Marine Engineering and Technology.      and            under
           promote:                                                                                                                                        implementation    by
                                                                                          Plymouth; PCFE,                                                  April 2008.
           •     Better alignment of the education and skills systems to the needs of
                                                                                          Plymouth Marine
                 the marine sector in terms of both technical skills such as
                                                                                          Science Partnership;
                 engineering, and other skills such as languages which are important
                                                                                          Marine Skills Centre
                 for the internationalisation of the sector;
                                                                                          (under development).
           •     Enhancement in the skills levels and workforce productivity of
                 maritime companies;
           •     Careers in the (new) maritime sector – including bioscience;
           •     Usage of skills from the (old) maritime sector.                          Approx          cost:
           Suggested initiatives include the roll-out of an LSC supported engineering     £500,000 per annum.
           skills project and a Careers Development project with Sea Vision. These
           initiatives can also leverage on the Marine Skills Centre which is under
           development.
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C. Tourism, Culture & Leisure

The Tourism and Leisure sector currently comprises a variety of service activities for visitors and residents including hotels, restaurants, bars, pubs, clubs, transport services,
specialist retailers, attractions, marinas and entertainments. This in turn is linked to a whole range of supporting and supplier industries including travel agents, the food sector,
media and entertainment etc. The sector is currently estimated to employ 11,000 people in Plymouth, mostly in small businesses.

Tourism, Leisure and Retail is a key sector, which not only serves the local market but also the significant number of visitors to the City. Service sector activity is forecast for
strong growth in the future and will provide a range of jobs for Plymouth residents at all skill levels. The city has a number of key attractions associated with the marine
environment including the beach, its waterfront location and historic dockyards, and the National Marine Aquarium. The ferry port also provides a major opportunity on which to
capitalise. The sector fits well with the Vision for Plymouth and activities of public sector bodies in the region. Given the need to exploit opportunities to benefit from
collaborative working, tourism, leisure and retail need to work together.

One of the main challenges for this sector seems to be making sure that Plymouth has the right retail offer and attractions according to the type of tourism it wants to focus on.
Often we have seen a dilemma arising between the focus on business tourism vs. leisure tourism. Given that it is necessary for Plymouth to attract higher value added
activities in the future, a better business facilities offering (e.g. hotels, restaurants, events management, transport services, etc.) needs to go along side it. However, the use of
Plymouth’s marine assets to promote hosting national events and to attract national and international tourists would link well to the development of leisure as well as business
tourism. It is necessary that a clear branding of Plymouth (which may involve tailored messages for different audiences) is first defined and supported by the appropriate
infrastructure so that tourism services can follow to provide the right offering.

The Plymouth City Growth Strategy proposes the following competitive advantages and challenges for the Tourism and Leisure sector:

    1.   Key competitive advantages of Plymouth:

         •    High quality environment and natural setting;
         •    Outstanding maritime heritage;
         •    Potential as a major centre for marine leisure – yachting, diving and other watersports;
         •    Role as a transport hub – many visitors pass through the city to use the cross channel ferry, intercity rail and coach services, or to reach Cornwall by road;
         •    Large population offering potential to develop leisure and entertainment services that serve both the local population and the sub-regional tourism market.
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    2.   Key issues and challenges:

         •   The image of the city – and a failure to promote a distinctive and positive image to potential visitors;
         •   Transport issues – especially poor rail and air links but also some concerns regarding car parking and transport services within the city;
         •   Environmental issues – such as the quality of the built environment in general, and the gateways into the city (e.g. train and bus stations) in particular;
         •   The need to make more of the Barbican and Coxside area, and resolve local environmental problems (such as litter, anti-social drinking, transport and parking
             issues, under-developed retail potential);
         •   Attractions and events – a perception that the city lacks things to do;
         •   Challenges in marketing the city and its attractions, especially given the limited budgets available.

The following table details project actions, delivery & funding, linkage and timescales of implementation for the Tourism, Culture and Leisure sector:

THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                    Delivery     (roles)   &   Funding   Linkage, synergy and best practice
Sector         Project Action                                                                                                                                        Timescales
                                                                                    Implications                         components
Tourism,       C.1 Leadership & strategy                                            Tourism Partners.                    Leadership and delivery vehicles.           April 2007
Culture &
Leisure
               According to the Plymouth City Growth Strategy, a number of          Approx cost: none assuming that
               associations and collaborative ventures are in place already,        organisations cover time and
               including Plymouth Attractions Group, Premier Hotels Group,
               Plymouth Hotels & Guest Houses Association (for smaller              expenses.
               hotels), Plymouth Personal Services (for owner occupied guest
               houses), and Plymouth Hotels & Caterers Association.
               Collaborators should also involve the retail sector which has
               deep connections with the tourism and leisure offer for Plymouth.


               However, Plymouth does not have an up to date tourism
               strategy. It is suggested that relevant bodies develop an
               overarching leadership body for the development and
               implementation of a tourism sector vision and strategy that builds
               from expectations of other sectors (e.g. business tourism needs)
               and is aligned with the overall marketing strategy of the city.
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                     Delivery     (roles) &    Funding   Linkage, synergy and best practice
Sector      Project Action                                                                                                                                           Timescales
                                                                                     Implications                        components
Tourism,    C.2 Tourism offer                                                        New sector leadership body in       Theme 1. Business - Sector Action           April 2007 –
Culture &   Plymouth’s waterfront location and heritage are important assets                                             Plans: B. Maritime Industries; Theme 1.     2015
                                                                                     close collaboration with Maritime
Leisure     to be exploited with tourism purposes (e.g. national events)                                                 Business - Core Component 1 Mobile
                                                                                     Plymouth, PVDG and Creative         and Expanding Investment – Promotion
            which should take advantage of the creative and marine
            leadership and strategies of the city. Given other sectors that it       Plymouth, PCFE.                     and overall branding and marketing of
            wants to grow, business tourism is also a good option. Overall,                                              Plymouth.    PCFE CoVE Tourism /
            Plymouth needs to build on these assets but also attract flagship        Approx cost: the implementation     Hospitality.
            marine initiatives and ‘high quality’ branded schemes that would         of all these actions if planned
            step up the quality of tourism and leisure facilities in Plymouth.
                                                                                     and implemented could imply
            Additionally, it has to link with the city’s marketing efforts to make
            sure that there is a link between what is actually communicated          major investments in £m for a
            and what is really in offer from a tourism point of view. In order       wide range of stakeholders.
            to improve Plymouth’s tourism offer we suggest the following
            actions:

            •    Exploration of the entire waterfront and city through
                 improved linkages, signage, maps & marketing;
            •    Improve signage to link retail centres, tourism and leisure
                 offer;
            •    Support efforts to attract greater numbers of cruise ships
                 and associated visitors;
            •    Encourage leading heritage attractions to develop more
                 active/ interactive features;
            •    Encourage the development and awareness of a greater
                 breadth of heritage attractions;
            •    Promote a regular international festival of the sea and attract
                 national marine events;
            •    Encourage people attending events to visit the rest of the
                 city and improve communication, promotion and
                 collaboration to ensure all businesses can benefit from
                 events;
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THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                    Delivery     (roles)     &   Funding    Linkage, synergy    and    best   practice
Sector      Project Action                                                                                                                                               Timescales
                                                                                    Implications                            components
            •    Consider improving gateways to the city and to retail areas,
                 including access to and from the water;
            •    Encourage improvement and expansion of the hotel stock
                 (attract branded chains) and investigate the opportunities for
                 developing conference facilities to improve offer to business
                 visitors.

            C.3 Skills                                                              New sector leadership body and          Theme 2. Skills.                             Map     by
            The Tourism & Leisure sector, and its connections with retail,          Chamber of Commerce.                                                                 September
            can create jobs across all skill levels. It should be a priority that                                                                                        2007.
            after a sector strategy looks at the future skill needs in the sector   Approx     cost:       £150,000   per
            it makes sure that there will be the means to deliver these.            annum.
            Linkages with university should be sought.              Additionally,
            Plymouth may consider the possibility of a Retail Academy to
            support the preparation of employees for future job opportunities
            in an interlinked tourism, leisure and retail offer.
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D. Health & Medical

The medical and health sector currently comprises the provision of health services by public and private sectors, together with the manufacture and distribution of
pharmaceutical products, medical and surgical equipment and medical research. The sector currently employs 13,500 in Plymouth, mostly in the public health sector but
increasingly in medical related industries. There is already a concentration of small medical technology companies in and around the Tamar Science Park and the Language
Industrial Estate which will form the basis of future cluster growth.

The Health & Medical cluster is now considered to be very well established and an area where a competitive advantage needs to be developed further given its high added
value activity and linkage between the University and businesses. This high tech industry also provides a very good source of opportunities from the existing investor base
given the established leadership of Plymouth in the area. In particular, the Tamar Science Park should be fostered to strengthen its role as business incubator (e.g.: potential
investment in a “Home Office” which would act as advance facilities for those companies wishing to kick start their operations before their sites/premises in Plymouth are ready
for occupation).

The Derriford area of Plymouth is an established industrial, business and academic area of the city. In recent years the area has seen a growth in medical and health related
activity and has also been an area of focus for public sector led regeneration activity. The Derriford area includes a number of organisations whose collaboration is critical to
the successful development of a competitive Health & Medical cluster in Plymouth. Some of the key organisations include: NHS Hospital Derriford, Peninsula Medical School
(PMS), Tamar Science Park, College of St Mark and St John, Plymouth International Business Park (PIBP) and various Medical Companies such as BD (formerly Becton
Dickinson) and Cardio Analytics.

According to the Plymouth Business Growth the key drivers and opportunities for the growth of the Health and Medical cluster in Plymouth are:

    1.   Key drivers for the growth of the medical sector in Plymouth:

         •   Continued expansion of Peninsula Medical School, increasing the availability of medical and clinical skills;
         •   Redevelopment and expansion of healthcare with New Derriford Hospital (2006-2012 £800 million+ PFI);
         •   Expansion and availability of quality business space at science parks, including Tamar Science Park and Plymouth International Business Park;
         •   Possible set-up of a South West Medilink in 2007;
         •   An ageing and growing population.

    2.   Key opportunities to grow the medical sector in Plymouth:

         •   Provide a focus to grow the sector in Plymouth through setting-up a strong medical sector network involving businesses and key parties;
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         •   Promote Plymouth as a business location to attract new investment both from the growth of existing companies and attracting new investors.

Clearly, the overall opportunity in this sector is to transform Derriford - and Plymouth more widely - as a location of national and international excellence in medical science and
technology and health related activities.

The Plymouth Business Growth has been developing an action plan for the Health & Medical Sector. Additionally a Business Development Strategy for Derriford has been
prepared for the South West of England Regional Development Agency. These provide a comprehensive analysis of the cluster needs and suggest a series of actions for
growth. Similar to other sectors, the Healthcare and Medical sector would benefit from inward investment and entrepreneurship promotion activities. Nevertheless the table
below suggests what we believe are the key actions that should be taken forward to develop the cluster.

THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                             Delivery (roles) &     Linkage, synergy and       best
Sector       Project Action                                                                                                                                           Timescales
                                                                                                             Funding Implications   practice components
Health &     D.1 Cluster Leadership                                                                          To be determined.      Derriford      cluster     and    September
Medical      The sector needs to have a formalised leadership structure. A number of partners have                                  Derriford cluster study.          2007
             suggested the creation of a “Medical Sector network”, a more formal structure that
             addresses the lack of central coordination should be developed. The Derriford study             Approx cost: no        Leadership and        delivery
             suggests the recruitment of a Cluster Executive that could lead a network of key players        additional  costs      mechanisms.
             in the sector. This approach which could be extended geographically to cover the whole          besides      time
             of Plymouth.                                                                                    investment.

             D.2 Skills                                                                                      Peninsula   Medical    Theme 1. Business – Core          Mapping  by
             The continued expansion of the Peninsula Medical School, increasing the availability of         School.                Component               2         December
             medical and clinical skills, creates the need to focus efforts on the areas were there is a                            Entrepreneurship; Theme 2.        2007.
             demand for skills and at the same time to foster entrepreneurship among graduates. In           Approx         cost:   Skills.
             particular, Plymouth has a skills gap when it comes to “bio-entrepreneurs”. It is suggested     £200,000        per
             that the Peninsula Medical School lead and work with relevant skills bodies to identify         annum.
             skills needs and consider suitable responses. A key aspect of this activity is defining
             which are the local and the non-local markets for those skills. Additionally, it is suggested
             that potential employers are actively engaged in such discussions.
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E. Advanced Engineering

The sector comprises a variety of high value-added enterprises involved in mechanical, precision, electrical, electronic and communications engineering, serving diverse
markets. Key industries in the South West region include aerospace, automotive and manufacture of measuring instruments and medical devices. There are significant
overlaps with the marine and medical sectors. Collectively, companies in sub-sectors that involve advanced engineering employ more than 5,000 people in the City of
Plymouth, excluding the marine sector. Many of these are branch plants of multi-national manufacturing companies. Only a minor proportion of activity could truly be described
as advanced engineering, with most jobs involving a variety of manufacturing operations. Advanced engineering operations include major companies such as BAE Systems
Avionics (manufacturing electronic equipment for aircraft), as well as a range of smaller engineering and design firms. Plymouth has a concentration of activity in a range of
engineering based manufacturing activities, including manufacture of TV and radio receivers, industrial process control equipment, instruments for measuring, tools, electronic
valves, bearings and gears, and steel tubes.

Plymouth Manufacturers Group (PMG) represents the interests of larger engineering and manufacturing companies and provides opportunities for networking and knowledge
sharing. The DTI’s Manufacturing Advisory Service provides advice to manufacturing companies, and is currently running a Lean Manufacturing Programme for 10 PMG
companies. The ten projects have benefited from topic workshops and on-site support provided by MAS, and have encouraged networking and idea sharing among
participating companies. Further initiatives to support manufacturing companies in the region are planned. SWRDA is planning to set up a world class Microsystems
manufacturing facility in Plymouth and is looking for an operator to run it. It would provide full Microsystems commercialisation and manufacturing services to companies of all
sizes. A regional Advanced Engineering Skills Project – "Journey Through Engineering" - part SWRDA funded for 3 years – includes work with schools, university liaison,
Apprentice of the Year competition, specialist sector courses and sharing of best practice. A Supply Chain Purchasing Development Programme was launched in March 2004.

The Plymouth City Growth Strategy proposes the following competitive advantages and challenges for the advanced engineering sector:

    1.   Key competitive advantages of Plymouth:

         •   Drive towards introducing innovation and increasing productivity;
         •   Global competition posing both opportunities and threats to manufacturing firms.

    2.   Key issues and challenges:

         •   High value added manufacturing. E.g. Princess Yachts, DML Luxury Boat Division;
         •   Explore the development of local supply chains via the ‘@ plymouth’ portal opportunity;
         •   Ongoing enhancement of the local workforce and management in a fast changing competitive environment;
         •   Set-up of new businesses from skilled people being released or made redundant by downsizing, closures and outsourcing.
                                                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 83




Priorities for Growth

The priorities with regard to advanced engineering would appear to be to:
•   Enhance the competitiveness of major employers, to reduce the risk of plant closures and relocations;
•   Encourage the development of higher value operations – based on local skills and knowledge – to enhance competitive advantage;
•   Encourage the development of local supply chains, strengthening linkages between firms and providing opportunities for the growth of smaller companies;
•   Support the start-up of new indigenous firms to broaden the supply base and reduce reliance on overseas decisions;
•   Strengthen links with the University and other HE/FE organisations in the region, to encourage knowledge transfer, skills development and commercialisation of research;
•   Encourage the start-up of new knowledge-based businesses among skilled workers released by downsizing, closures and outsourcing.

The following table details project actions, delivery & funding, linkage and timescales of implementation for the Advanced Engineering sector:

THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                                                              Linkage, synergy and
                                                                                                          Delivery (roles)    &    Funding
Sector             Project Action                                                                                                             best          practice    Timescales
                                                                                                          Implications
                                                                                                                                              components
Advanced           E.1 – Cluster Leadership                                                               PMG, RDA, PCC, BL.                  Leadership       and      April 2008
Engineering        Pilot a co-ordinated and pro-active programme to engage with a small number of                                             delivery mechanisms.
                   strategic advanced engineering companies to work with them to attract new firms,
                   resolve barriers to growth and provide links to established business support           Approx cost: no additional
                   services.                                                                              costs       besides   time
                                                                                                          investment.

                   E.2 – Local Procurement                                                                PMG.                                Local       Procurement   April 2008
                   Increase sales opportunities for advanced engineering businesses by recruiting                                             initiative.
                   businesses to register and promote themselves on the Plymouth local procurement        Approx costs: £5,000.
                   portal (launched in May 2006).

                   E.3 – Skills Development                                                               University of Plymouth, PMG,        Theme     2.    Skills.   December
                   Launch of Plymouth Marine Skills Training Centre (Marine South West) in                PCFE, Plymouth Engineering          PCFE            CoVE      2006
                   Stonehouse, Devonport delivering training and skills development courses for           Skills Council.                     Engineering          &
                   marine engineering businesses.                                                                                             Technology
                                                                                                          Approx costs: to be defined by
                                                                                                          the training centre’s feasibility
                                                                                                          study.
                                                                                                                        Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 84




F. Business Services

Includes a variety of services provided to businesses, including banking, insurance, accountancy, legal, consultancy, commercial property, recruitment, machinery rental,
computing, security and cleaning services. There are some overlaps with the creative industries, which include advertising and architectural services.

Published statistics make the sector difficult to quantify, because of the difficulty of distinguishing between business and domestic markets - collectively the above activities
employ more than 18,000 people in Plymouth, though that is an overestimate of true business service activity as it includes some services (e.g. banking, insurance, real estate,
legal services) that are offered to both business and domestic customers. Most business services are underrepresented in Plymouth, although there are local strengths in
industrial cleaning and rental of construction equipment.

There are few relevant cross cutting local initiatives. Business service firms are served by individual professional organisations (e.g. representing accountants and lawyers).
The main cross cutting organisation is Plymouth Chamber of Commerce, which organises a range of training, networking and business support activities.

The Plymouth City Growth Strategy (first version) proposes the following competitive advantages and challenges for the business services sector:

    1.   Key competitive advantages of Plymouth:

         •   Plymouth’s size and location mean that it is well placed to serve as a business service centre for Devon and Cornwall;
         •   The local economy creates demand for business services, and there are opportunities for companies to supply markets elsewhere in the sub-region that lack
             Plymouth’s critical mass.

    2.   Key issues and challenges:

         •   The fortunes of the sector depend to a large extent on the development of the economy as a whole, as revenues are gained from supplying services to other
             businesses;
         •   However, there is also a significant local supply gap, so developing Plymouth’s role as a business centre, and meeting more local demand locally, are also
             priorities;
         •   Businesses stress the potential role of public procurement given the scale of the public sector locally. The purchasing policies of manufacturing branch plants
             were also raised as an issue;
         •   Addressing transport issues is also seen as significant, both in developing Plymouth’s role as a service centre, and in encouraging growth in the economy more
             generally;
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            •    Though there is not a general skills shortage, firms have reported difficulties in finding staff with more specialist legal, secretarial, accountancy and financial
                 consultancy skills;
            •    Business services comprise a variety of individual activities and local firms do not generally see themselves as belonging to the same sector. Scope for
                 collaborative ventures may therefore be limited.

Priorities for Growth

The key priority is to develop the role of Plymouth as a service centre, identifying opportunities to increase the proportion of local demand met by local firms. This might be
achieved by addressing supply chains/procurement policies and/or by aiming to enhance the skills and capabilities of local firms. The priority is to provide sufficient
employment floorspace in desirable locations to sustain the development of Plymouth as a business services centre. Employment growth of 11,200 jobs is estimated over the
                                                                                    16
period 2001 – 2026 in Financial and Business Services (Employment Land Review ).

The following table details project actions, delivery & funding, linkage and timescales of implementation for the Business Services sector:

THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                                     Linkage, synergy and best practice
Sector           Project Action                                 Delivery (roles) & Funding Implications                                                          Timescales
                                                                                                                     components
Business         F.1      Develop       a      public-private   Lead organisation: City Development Company,         Mackay Vision for Plymouth; Theme 1.        Advanced      office
Services         partnership mechanism to address               in conjunction with Plymouth City Council,           Business – Core Component 1 Mobile          building in Millbay
                 cluster       /      investor      property    SWRDA and private sector.                            and Expanding Investment - Property         available         for
                 requirements                                                                                        and Land; Theme 3. Centres – Core           occupation by 2008
                 In relation to offices, the focus should be    In terms of delivering the offices, the best way     Component 1 Appraise and Implement          /10.
                 around developing a rolling programme          forward would be for the PCC (probably in            the Mackay Vision.
                 of schemes, linked closely to the              association with SWRDA) to prepare an outline
                 regeneration programme. Three types of         programme, focused on a small number of sites,       Best practice: draw on experience of
                 office are likely to be required:              and then invite developers to put forward bids for   Glasgow and Dublin.
                 • Multi-occupancy offices (e.g. 30,000 -       specific buildings. Some form of public sector
                   50,000 sq ft with scope for sub-             support - both in respect of financial aid and
                                                                marketing support (i.e. to help find tenants) - is
                   divisions of say 5-10,000 sq ft).            likely to be relevant.
                 • Standalone offices of 10,000 - 50,000
                   sq ft.                                       Indicative costs for advanced office builds are:
                 • Serviced offices of 1,000 - 5,000 sq ft.

16   Baker Associates for Plymouth City Council Employment Land Review November 2005.
                                                                                                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 86




THEME 1 – BUSINESS – ACTIONS & DELIVERY
                                                                                                                     Linkage, synergy       and        best   practice
Sector        Project Action                                Delivery (roles) & Funding Implications                                                                      Timescales
                                                                                                                     components
              These types of office need to be new               •    Multi occupancy offices - £4–6 million
              build or quality refurbishments - in               •    Stand Alone Offices - £1–5 million
              attractive locations linked to the                 •    Serviced offices - £ 80–400k
              promotion/image-building strategy.

THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                              Delivery (roles) & Funding
               Project Action                                                                                     Linkage, synergy and best practice                          Timescales
Components                                                                        Implications
Skills &       1.1 HE Access Support                                              Lead agency: College of         Key linkage with proposed Skills Board (Theme 4.            Have       new
Learning       Development of transparent structures to support                   St Mark and St John, in         Participation - Core Component 1 Gaining a better           initiative and
Component 1    individuals into HE level learning. This action area should        collaboration with the          understanding of the problem 1.2 Establish and              structures in
Increase       have a dual focus:                                                 University of Plymouth,         service a ‘Skills Board’)                                   place       by
Level 4        • Supporting young people in Plymouth to take                      Plymouth         Guild     of                                                               December
Qualifications     advantage of HE opportunities based within the City.           Voluntary            Service,                                                               2007.
                   The project should work closely with schools to                Connexions and the LSC.
                   identify individuals who have the potential to move
                   onto Level 4 learning, but who are at risk of                  Approx cost:
                   withdrawing from the learning infrastructure before            £100-125,000 per annum
                   this point is reached. Advice and support should be            to support two full time
                   offered around childcare, financial and benefits               posts and on-costs.
                   support, as well as building self-confidence and
                   motivation;
               • Support for adults who may benefit from returning to
                   learning leading to Level 4 qualifications. This aspect
                   of the project would involve encouraging adults to
                   enter HE access related learning, moving them
                   gradually towards a flexible learning arrangement that
                   will lead eventually to a degree qualification. The
                   action will include outreach into community and
                   related facilities (e.g. community centres, local leisure
                   and health facilities etc) to identify relevant individuals
                   and then offer flexible support. Support will again
                   cover childcare, financial and benefits assistance,
                   advocacy or welfare support where necessary, as well
                   as health and medical support.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                        Delivery (roles) & Funding
               Project Action                                                                               Linkage, synergy and best practice                      Timescales
Components                                                                  Implications
               1.2 Graduate Retention Programme                             Lead agency: University         Linkage     with    existing  graduate    retention     Extended
               Development of a programme of activities to increase the     of        Plymouth.        In   programmes operated by the University of                activities  in
               retention of graduates in the Plymouth area, as well as      conjunction with College        Plymouth; Theme 1. Business – Core Component            place      by
               investigating opportunities to bring back young Plymouth     of St Mark and St John,         2 Entrepreneurship; Theme 2. Skills – Core              December
               natives who have chosen to study elsewhere. Key              LSC,       Plymouth      City   Component 4 Skills for Target Sectors; Theme 3.         2007.
               activities will include:                                     Council and Plymouth            Centres – Core Component 4 Improve the Housing
               • Increasing the incidence of graduate placement within      Chamber.                        Offer; Theme 4. Participation – 1. Gaining a better
                   existing Plymouth based employers (or employers                                          understanding of the problem 1.2 Establish and
                   based elsewhere in the wider city-region). Graduate      Approx cost £125,000 per        service a ‘Skills Board’.
                   placements should take place both during                 annum.
                   undergraduate        study   (via     sandwich    type
                   arrangements), as well as immediately post               & £20,000 for a one off
                   completion of degree. Active identification, through     piece of research to
                   outreach research, of possible recipient companies for   investigate    graduate
                   graduates will have to be undertaken intensively;        destinations.
               • Enhanced opportunities for graduates to form their
                   own businesses. Students should be encouraged to
                   develop business ideas during undergraduate study
                   and should be advised on how these ideas might be
                   taken forward commercially immediately post study –
                   possibly in conjunction with paid employment or in
                   partnership with other entrepreneurs. This activity
                   requires high-level business advice for students
                   (including protection of IPR), alongside the
                   development of subsidised business and incubation
                   spaces that will be appropriate for the forms of
                   businesses that might be created;
               • Advice and guidance for students on factors that will
                   encourage them to stay in Plymouth, including access
                   to accommodation/housing, health and welfare
                   services, work and residency permits etc;
               • Investigation of the nature and range of destinations
                   of those young people who have left the City of
                   Plymouth to study in other locations.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                            Delivery (roles) & Funding
               Project Action                                                                                   Linkage, synergy and best practice                      Timescales
Components                                                                      Implications
Skills &       2.1 Effective Advice & Guidance                                  Lead agencies Plymouth          Key Linkage with the Plymouth City Observatory          New activities
Learning       Enhanced employability and career planning expertise             College       of     FE    in   (Theme 4. Participation – Core Component 1              in place by
Component 2    and services within the City in order to support young           conjunction with Plymouth       Gaining a better understanding of the problem, 1.1      December
Effective      people and other groups in planning for longer-term              Guild of Voluntary Service      Establish a ‘City Observatory’); Theme 1. Business      2007.
Learning       labour market attachment. Developing key skills in               and Connexions.                 – Core Component 2 Entrepreneurship and Theme
Pathways       adaptability, flexibility, enterprise, creativity and lifelong                                   4. Participation – 1. Gaining a better understanding
               learning in order to extend long-term participation in the                                       of the problem 1.2 Establish and service a ‘Skills
               labour market. Development of both ‘outreach’ and ‘shop          Approx cost: £50,000 per        Board’
               front’ facilities open to all residents of the City.             annum.
               Requirement for well informed, high level guidance                                               Key linkage with Plymouth schools Enterprise
               offered by trained personnel in association with key                                             Entitlement programme.
               employers.

                 Guidance should be available on determining a
                 transparent learning experience that will lead to higher
                 level of ongoing leaning in the city. In particular there
                 should be careful consideration of the appropriateness of
                 academic versus vocational learning routes.
                 This project activity should make extensive use of up to
                 date Labour Market Intelligence generated and collated
                 by the Plymouth City Observatory.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                         Delivery (roles) & Funding
               Project Action                                                                             Linkage, synergy and best practice                      Timescales
Components                                                                   Implications
               2.2 Plymouth Citizens Learning Charter                        Lead organisation – City     Linkage with Theme 1. Business – Sector Action          Charter
               Development of a charter that allows all citizens of          Development Company –        Plans; Theme 2. Skills – Core Component 4 Skills        programme
               Plymouth – irrespective of personal or socio-economic         sponsors of the Charter.     for Target Sectors; Theme 2. Skills – Core              fully
               circumstances – to develop and activate a personal                                         Component 1 Increase Level 4 Qualifications;            operational
               learning programme. Guidance should be offered to allow       Support should be offered    Theme 4. Participation – Core Component 1               by December
               all citizens to access learning appropriate to their own      by the LSC, Plymouth         Gaining a better understanding of the problem 1.1       2007.
               needs that is also conducive to addressing the city’s         College of FE, PCAD,         Establish a ‘City Observatory’ and 1.2 Establish
               overall skills requirements, especially in the light of       College of St Mark and St    and service a ‘Skills Board’; Theme 4. Participation
               required growth in key sectors.                               John, Connexions and         – Core Component 2 Increasing employability of
                                                                             Plymouth       Chamber.      adults and young people across Plymouth.
                The Charter must allow citizens access to learning which     Third sector.
                is subsidised depending on circumstances. Employers
                must also sign up to the Charter and allow flexibility in    Approx cost:    £100,000
                working and other arrangements in order to facilitate the    per annum.
                take up of learning. Sign up to the Charter on the part of
                Citizens must also confer other benefits, for example
                subsidised childcare, access to free or subsidised leisure
                amenities, receipt of travel and other expenses
                (dependent on any benefit implications), provision of
                learning materials etc. Stakeholders should strive to
                achieve 30% of citizens signed up to the Charter by the
                end of the first year. A key emphasis should be placed
                upon taking individuals all the way through to Level 4
                learning.
                2.3 Plymouth Learning Pathway                                Lead agency: PCFE with       Links with Theme 2. Skills – Core Component 2.          Pathway  in
                Development of a robust and transparent learning             Plymouth City Council.       Effective Learning Pathways 2.2 Plymouth Citizens       place    by
                pathway that brings all of the City’s key educational                                     Learning Charter; Theme 4. Participation – Core         December
                institutions together under an umbrella network. A           Approx cost: £50,000.        Component 1 Gaining a better understanding of           2007.
                number of routes through the pathway should be                                            the problem 1.2 Establish and service a ‘Skills
                developed for different groups and sets of circumstances.                                 Board’.
                The Plymouth Citizens Learning Charter should be used
                in conjunction with this pathway structure.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                           Delivery (roles) & Funding
               Project Action                                                                                Linkage, synergy and best practice                      Timescales
Components                                                                     Implications
               2.4 Development of schools as extended learning                 Lead Agency: Plymouth         Links with Theme 2. Skills – Core Component 2.          Programme in
               facilities                                                      Children’s Services.          Effective Learning Pathways 2.2 Plymouth Citizens       place    by
               Programme to develop schools as extended learning                                             Learning Charter; Theme 4. Participation – Core         December
               facilities for the benefit of the wider community. Use of       Cost will be dependent        Component 2 Increasing employability of adults          2007.
               extended schools to run basic skills courses: there is a        upon individual school        and young people across Plymouth and Theme 4.
               need to increase the basic skills levels of the adult           programmes.                   Participation – 1 Gaining a better understanding of
               population in Plymouth, and many employed adults will                                         the problem 1.2 Establish and service a ‘Skills
               have limited access to employer provided training. The                                        Board’.
               provision of training at local schools presents an
               opportunity to address this skills deficiency and to attract
               adults back into learning.
Skills &       3.1 Skills Diagnostic Support                                   Lead agency LSC, in           Linkage with Theme 2. Skills – Core Component 4.        Programme in
Learning       This action involves the development of high-level              conjunction with both         Skills for Target Sectors; Theme 4. Participation –     place by July
Component 3    diagnostic support for employers in Plymouth to aid in the      public and private training   Core Component 1 Gaining a better understanding         2007.
Workforce      identification of skills development needs. Key aspects of      providers. Chamber of         of the problem 1.2 Establish and service a ‘Skills
Development    the action include:                                             Commerce. PCFE.               Board’.
               • Diagnostic outreach services – employers receive              Plymouth      Engineering
                   intelligent diagnosis of skills needs and a clear outline   Skills Council. Overseen
                   of the bottom-line benefits that will be achieved from      by City Development
                   enhancing workforce skills;                                 Company.
               • Development of a costed workforce training plan as
                   part of ongoing business planning for employers;            Approx cost:     £200,000
               • Detailed guidance on location and availability of skills      per annum.
                   development support that meets the needs of
                   individual employers. Brokering and negotiation with
                   training providers on behalf of employers;
               • Identification or sourcing of potential funding sources
                   for skills development;
               • Development           of   bespoke      training  delivery
                   arrangements, where possible, in order to reduce both
                   direct and indirect costs of accessing workforce
                   development and training services.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                             Delivery (roles) & Funding
               Project Action                                                                                 Linkage, synergy and best practice                      Timescales
Components                                                                       Implications
               3.2 Virtual Business Training Zones                               Lead organisation - LSC.     Theme 2. Skills – Core Component 3 Workforce            Arrangements
               Development of virtual, collaborative arrangements                                             Development 3.1 Skills Diagnostic Support.              in place by
               amongst employers – especially SMEs – in order to                 Approx     cost  up    to                                                            December
               reduce the overall costs of training for small businesses.        £100,000 per annum.                                                                  2007.
                                                                                 50% of costs to be
                 This action involves the ‘pooling’ together of a number of      contributed by employers.
                 employers who then enter a collaborative arrangement to
                 receive workforce training and development services. The
                 cost of the training is then divided across all of the
                 businesses. This action is tied to the Skills Diagnostic
                 Support project (Theme 2. Skills – Core Component 3
                 Workforce Development 3.1 Skills Diagnostic Support),
                 which will identify a number of employers that might
                 benefit form this type of arrangement. There would also
                 be opportunities for cross learning or information
                 exchange across the employers drawn together by this
                 initiative.
                 3.3 Managerial Capacity Uplift                                  Lead agency – University     Theme 2. Skills – Core Component 3 Workforce            Programme in
                 This action involves a full investigation of the hierarchy of   of Plymouth and PCFE in      Development 3.1 Skills Diagnostic Support; Theme        place    by
                 management training needs across Plymouth and the               conjunction with Plymouth    1. Business – Core Component 3. Growing Small           December
                 wider City-region. In particular, there will be an emphasis     Chamber and the LSC.         and Medium Businesses; Theme 2. Skills – Core           2007.
                 on enhancing the managerial capability of those                                              Component 3. Workforce Development 3.1 Skills
                 businesses that offer the best growth potential in the City,    Approx cost:     £100,000    Diagnostic Support and 3.2 Virtual Business
                 especially if these employers are operating successfully        per annum.                   Training Zones and Theme 4. Participation – 1.
                 at present. Skills development interventions often bypass                                    Gaining a better understanding of the problem 1.2
                 successful businesses, assuming that they do not require                                     Establish and service a ‘Skills Board’.
                 support to grow further.

                 This project would diagnose managerial capacity
                 constraints - either current or possible future constraints –
                 and bring in higher level consultancy support to improve
                 managerial capacity. The project would also improve
                 opportunities for cross-transfer of managerial skills across
                 sectors and enhance opportunities for managerial
                 mentoring programmes.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                           Delivery (roles) & Funding
               Project Action                                                                                  Linkage, synergy and best practice                      Timescales
Components                                                                     Implications
               3.4 Plymouth Post 16 Vocational Strategy                        Lead agency: LSC.               Key linkage to Theme 2. Skills – Core Component         Strategy
               Development of a post 16 strategy for the City that results     Collaboration            with   2 Effective Learning Pathways 2.2 Plymouth              complete by
               in the effective development of additional vocational skills.   Plymouth College of FE,         Citizens Learning Charter and 2.3 Plymouth              December
               A key aspect of the strategy will be to balance the             Plymouth City Council,          Learning Pathway; Core Component 3 Workforce            2007.
               numbers of individuals going into academic post 16              Jobcentre Plus, PCAD,           Development 4 Skills for Target Sectors; Theme 4.
               routes with those pursuing vocational routes. In addition,      Plymouth           Children’s   Participation – Core Component 2 Increasing
               the extent to which individuals can develop vocational          Services.                       employability of adults and young people across
               and non-vocational skills simultaneously should be                                              Plymouth.
               investigated via the strategy. A key outcome of the             Approx cost: £50,000.
               strategy will be to ensure that all 16 year olds in Plymouth
               are in possession of an employment, training or further
               education offer.

Skills &         4.1 Plymouth City Growth Skills Academy                       Plymouth City Council, in       Key linkage with the Plymouth City Growth               Initial
Learning         Development of an academy to provide centres of training      collaboration with the City     Strategy; Theme 1. Business – Core Component 1          collaborative
Component 4      and learning excellence tied directly to Plymouth’s target    Development Company.            Mobile and Expanding Investment - Property and          arrangements
Skills for       growth sectors. Key elements of this action include the                                       Land; Theme 1. Business – Sector Action Plans;          in place by
Target           following:                                                    Other partners will include     Theme 2. Skills – Core Component 2 Effective            December
Sectors          • Development of a physical centre that incorporates          Plymouth College of FE,         Learning Pathways; Theme 2. Skills – Core               2008.
                     training and learning services offered by the relevant    PCAD,     University     of     Component 3 Workforce Development and Theme             Physical
                     institutions and organisations across the city. This      Plymouth, College of St         4. Participation – 1 Gaining a better understanding     development
                     physical centre would be used for the delivery of         Mark and St John,               of the problem 1.2 Establish and service a ‘Skills      completed by
                     collaborative learning programmes. The centre would       Jobcentre Plus, Plymouth        Board’.                                                 December
                     also include business and incubation space for newly      Guild     of    Voluntary                                                               2010.
                     established businesses;                                   Service, Tamar Science
                 • Development of bespoke training and learning                Park.
                     courses directly relevant to target growth sectors.
                     These courses would be delivered within the new           Approx revenue cost
                     centre or alternatively on the premises of the partner    :£200,000 per annum.
                     organisations;
                 • The Skills Academy will complement existing centres
                     of excellence in Tourism, Technology and Marine
                     Engineering that exist at PCFE. These centres, allied
                     to the City Growth industries and those that will help
                     facilitate the physical redevelopment of the City,
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                          Delivery (roles) & Funding
               Project Action                                                                              Linkage, synergy and best practice                      Timescales
Components                                                                    Implications
                   especially the Construction, retail and leisure sectors.
                   Skills allied to ongoing regeneration, spatial planning
                   and community capacity building should also be
                   included;
               • Development of collaborative arrangements between
                   learning organisations including schools, FE and HE
                   sectors;
               • The academy should also include services associated
                   with attracting new inward investment and in
                   ‘managing in’ this investment;
               • Establishment of protocols between learning
                   providers and inward investors in key growth sectors,
                   in order to develop curricula that can effectively
                   anticipate new and evolving skill needs.
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THEME 2 – SKILLS – ACTIONS & DELIVERY
Core                                                                          Delivery (roles) & Funding
               Project Action                                                                               Linkage, synergy and best practice                      Timescales
Components                                                                    Implications
Skills &       5.1      Plymouth       Knowledge         Transfer     &       Lead agency University of                                                             Programme
Learning       Commercialisation Programme                                    Plymouth.             Tamar                                                           established
Component 5    Development of outreach services that support the              Science Park, Peninsula                                                               by April 2008.
Knowledge      embedding of research-led developments into Plymouth           Medical School.
Transfer       based businesses. In particular, this activity should be
               related to key growth sectors, as well as to advances in       Approx cost:     £100,000
               managerial process. The project would involve the              per annum.
               establishment of relationships and protocols between
               research led organisations (especially the University of
               Plymouth) and Plymouth based employers that would
               benefit directly from knowledge transfer in key research
               areas. The development of protocols associated with
               protection of IPR would also be required.

                A number of research outreach personnel would be
                required in order to determine the best means of
                embedding new technological or other developments in
                the processes of local businesses. In addition, a series of
                seminars and networking events for businesses would be
                arranged.

                Another aspect of this project would involve research
                institutions partnering with local businesses in order to
                support the commercialisation of research taking place in
                Plymouth.
                5.2 Plymouth R&D Ventures                                     Lead agency: University                                                               Programme
                This project involves the development of a pooled             of Plymouth.                                                                          established
                resource to allow smaller Plymouth based employers to                                                                                               by December
                undertake some R&D activity. This would be supported          Cost would be dependent                                                               2007.
                by research oriented organisations through outreach and       on agreed funding for
                diagnostic support. The objective is to allow SME             venture   capital   pool,
                businesses who would otherwise be financially                 Tamar Science Park.
                constrained in terms of carrying out R&D to be supported
                in doing so possibly through funding or through receiving
                support from research based organisations.
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THEME 3 – CENTRES – ACTIONS & DELIVERY
Core Components  Project Action                                                Delivery     (roles) & Funding   Linkage, synergy & best practice   Timescales
                                                                               Implications
Centres              1.1                                                       City Development Company,        Linkage with Theme 1.              City Development Company
Component 1          It is imperative that the Vision for Plymouth and LDF     GOSW, SWRDA, EP, PCC             Business – Core Component          Business Plan agreed by
Appraise and         Core Strategy for the centre of Plymouth and                                               1 Mobile and Expanding             December 2007.
Implement the        Derriford is brought forward and taken to completion.                                      Investment – Property and
Mackay Vision        The aspiration for an increase in the overall                                              Land; Theme 3. Centres –
                     population of the City rests on the re-configuration of                                    Core Component 3 Office
                     the City Centre as a multi-functioning, sustainable                                        Accommodation         and
                     and vibrant urban location.                                                                Employment Land.

                     The City Development Company must undertake
                     more detailed appraisal work urgently to speed up
                     delivery of major developments and implement these
                     appropriately through entering into effective
                     collaborative arrangements with the private sector.


Centres              2.1                                                       City Development Company in      Theme 3                            2006-2021.
Component 2          Complementary development is essential to the             association other land owning
Complementarity      future of Plymouth. This must involve careful             partners and SWRDA.
between key          planning for the development of the main hubs – the
centres,             City Centre and Derriford.
especially the bi-
nodal area of
City Centre and      Publication of the Derriford Area Action Plan setting
Derriford            out development options.
Centres              3.1                                                       City Development Company.        Synergy with Mackay Vision;        Develop       plans      for
Component 3          Plymouth must exhibit an appropriate range of                                              Theme 1. Business – Sector         speculative office portfolio
Office               business sites and premises that maximise the                                              Action Plans; Theme 1.             by June 2007.
Accommodation        attraction of high value added inward investment, as                                       Business – core Component 1
& Employment         well as stimulating endogenous business growth –                                           Mobile    and     Expanding
Land                 ranging from small scale business incubation space                                         Investment – Property and
                     to large scale high spec office accommodation.                                             Land; Theme 2. Skills – Core
                                                                                                                Component 5 Knowledge
                     Partners in the City should seriously consider the                                         Transfer.
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THEME 3 – CENTRES – ACTIONS & DELIVERY
Core Components  Project Action                                              Delivery     (roles)   &   Funding   Linkage, synergy & best practice   Timescales
                                                                             Implications
                  development of speculative, high quality office
                  accommodation in key locations across Plymouth.
                  In particular, partners should consider development
                  of showcase office accommodation in Millbay – a
                  location targeted by the Mackay Vision as a key
                  development opportunity area.

                  This action should be undertaken in conjunction with
                  the development of a range of flexible business
                  spaces in other key, possibly waterfront based,
                  locations, for the growth and development of smaller
                  niche businesses that would support the growth of
                  the key target sectors.

                  In addition, high quality business incubation space
                  should be developed within close proximity of the
                  University of Plymouth in order to increase the
                  potential of the university as a stimulus for high
                  value added employment.

                  The overall objective is to develop private sector
                  interest in speculatively developing the Plymouth
                  office accommodation offer.
Centres           4.1                                                        Lead agency: Plymouth Housing        Synergy with Theme 2. Skills       2006-2021.
Component 4       Development of a more mixed and higher quality             Partnership.                         – Core Component 1 Increase
Improve the       housing offer should be taken forward. In particular,                                           Level 4 Qualifications 1.2
Housing offer     public partners should investigate collaborative                                                Graduate          Retention
                  arrangements with developer partners that would                                                 Programme.
                  result in construction of high quality family
                  accommodation.

                  Overall, the residential property offer in the City must
                  become more diverse, including an appropriate
                  volume of affordable housing.
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THEME 3 – CENTRES – ACTIONS & DELIVERY
Core Components  Project Action                                            Delivery     (roles) & Funding   Linkage, synergy & best practice   Timescales
                                                                           Implications
Centres           5.1                                                      Lead agency: Plymouth City       Links with Theme 3. Centres        Significantly      improved
Component 5       There are four components to this action area:           Council                          –    Core    Component    2        public transport connections
Improve           • Local stakeholders – public and private - should                                        Complementarity between key        between Plymouth City
Connectivity          continue to lobby for improved linkage between                                        centres.                           Centre and Derriford by
                      Plymouth and other key locations. This includes                                                                          December 2016.
                      lobbying for improvements to rail links to London,
                      as well as road linkage to Exeter and other
                      locations north and east of the City;
                  • Air links with key centres in the UK and beyond
                      should also be developed further where possible;
                  • Connectivity within the City of Plymouth should
                      be improved, especially connections between
                      disadvantaged       communities       and      key
                      employment, leisure and retail areas;
                  • Connectivity between the Derriford area and the
                      City centre, as well as other neighbourhoods
                      across the city should also be developed further
                      as a priority.
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THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                             Linkage, synergy and best
Core Components                   Project Action                                             Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                             practice
Economic Inclusion                1.1 Establish a ‘City Observatory’                         Partners: LSC, City Council, University of      Devonport NDC and           Established and
Component 1                       This new Observatory should be established by and          Plymouth, SWRDA.                                Plymouth                    operational  by
Gaining a better                  for all key stakeholders to underpin future projects       Lead Partner: 2020 Partnership.                 Neighbourhood               December 2007.
understanding of the              addressing economic inclusion across the City. The                                                         Renewal Programme
problem                           project would be based on a common approach to             Anticipated Cost:        approx      £60,000-   reporting            and
                                  data collection, monitoring and mapping and also           £80,000 per annum.                              monitoring
                                  agreed     geographies     and    boundaries.    The                                                       requirements.
                                  Observatory could incorporate the ongoing NRF and          Delivery would require the creation of an
                                  NDC for measuring progress towards floor targets           Observatory sub-group attached to               Links with Theme 4.
                                  data function and meet all LSP data requirements. All      Plymouth 2020. Protocols would also             Participation – Core
                                  service providers would sign up to the Observatory in      have to be established regarding the data       Component 1 Gaining
                                  order to generate a comprehensive socio-economic           and information gathering remit of the          a better understanding
                                  picture.                                                   Observatory with regard to surrounding          of the problem 1.2
                                                                                             districts in Devon and Cornwall.                Establish and service a
                                  Ideally, the Observatory would encompass a                                                                 ‘Skills Board’.
                                  regularly updated web based, public access system
                                  that would collate compile and present data in an
                                  easily accessible manner possibly utilising bespoke,
                                  customised GIS tools. The Observatory would also
                                  be used as a repository for all relevant reports and
                                  documents relating the socio-economic conditions
                                                            17
                                  and priorities of the City .




17   For a useful example see the Northamptonshire Observatory: www.northamptonshireobservatory.co.uk
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THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                    Linkage, synergy and best
Core Components          Project Action                                             Delivery (roles) and Funding Implications                                    Timescales
                                                                                                                                    practice
                         1.2 Establish an ‘Employment and Skills Board’             Partners:    LSC,    City Development           Effective linkage with       Establish
                         The Plymouth Employment and Skills Board would             Company, Plymouth College of Further            relevant        priorities   Employment and
                         bring together the LSC, the City Council, FE, HE and       Education, Connexions, Job Centre Plus,         under the ‘Skills’ theme     Skills Board by
                         other providers on a monthly basis to tackle the           University of Plymouth.                         (Theme      2.    Skills);   September 2007.
                         following priorities:                                      Lead     Partner:   City  Development           Theme 1. Business –
                                                                                    Company.                                        Sector Action Plans;
                         •   Basic skills provision across the area with an                                                         Theme 4. Participation
                             emphasis on access in priority wards;                  Anticipated Cost: approx £24,000 per            – Core Component 1
                         •   Introduction to learning – providing clear learning    annum.                                          Gaining      a      better
                             routes for those who are currently distanced from                                                      understanding of the
                             learning and educational opportunities. This           The Skills Board would report quarterly to      problem 1.1 Establish
                             service would include supporting functions such        the Plymouth 2020 Wealthy Theme                 a ‘City Observatory’.
                             as childcare and travel bursaries where                Group.
                             necessary;
                         •   Transition of young people into work and training
                             - generic and work related skills require
                             improvement alongside strengthened access to
                             employment and training routes;
                         •   Adult skills - ensuring that the focus for adult
                             training    for    employed    and     unemployed
                             individuals     reflects  growth     sectors     for
                             employment including regeneration related
                             activity and links to the three cores at PCFE in
                             Marine Engineering, Hospitality & Tourism and
                             Technology.
                         •   Sector specific skills – to ensure there is
                             sufficient and planned capacity to address skills
                             shortages in the key economic sectors.

                         The Board would seek to collate and interpret (via the
                         Observatory) all relevant labour market data, and on
                         the basis of this, generate an ongoing series of
                         project  interventions      to   be   delivered      at
                         neighbourhood and, where appropriate, City level.
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THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                      Linkage, synergy and best
Core Components             Project Action                                            Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                      practice
Economic Inclusion          Tackling the Barriers                                     Partners: Plymouth Action Team, City            Devonport NDC,              Identify priority
Component 2                 2.1 Reaching out into priority wards through              Council, Plymouth College of Further            Plymouth                    households    by
Increasing employability    mobile multi-agency teams                                 Education, Connexions, Job Centre Plus,         Neighbourhood               June       2007.
of adults and young         Lessons from elsewhere suggest that in order to           Go4    Adults,  Plymouth      Returners,        Renewal Programme           Programme      of
people across Plymouth      raise awareness and encourage participation in            Routeways, University of Plymouth.              Neighbourhood               support
                            learning, people must initially be engaged in their                                                       Management                  implemented by
Two components:             communities or ‘on the doorstep’.                         Lead Partner: Plymouth Action Team.             Initiatives; Theme 4.       December 2007.
(1) Tackling the Barriers                                                                                                             Participation – Core
(2) Steps into Employment   In other cities mobile, multi-agency teams have           Anticipated Cost: £250,000 per annum.           Component 3. Using
                            targeted specific households (identified through                                                          Neighbourhood
                            project 2.1) with comprehensive information and                                                           Management to tackle
                            guidance on the range of training and support on                                                          economic exclusion in
                            offer. This approach is pro-active and resource                                                           Plymouth.
                            intensive and should increase awareness and access
                            to pre and post recruitment support and training
                            alongside information on other services that might
                            help to tackle other barriers i.e. childcare, financial
                            exclusion etc.

                            These teams would link into existing community
                            based      support     via   Devonport     NDC     and
                            Neighbourhood Renewal Funded projects.
                            Tackling the Barriers                                     Partners:  City   Council/Sure  Start,          Links with Theme 2.         Have         new
                            2.2 Increasing Childcare Provision                        Plymouth College of Further Education,          Skills    –      Core       Childcare
                            Whilst daytime provision is now starting to meet          Connexions, Job Centre Plus.                    Component 1 Increase        strategy in place
                            demand more effectively, there is a need to enhance       Lead Partner: Surestart/Plymouth City           Level 4 Qualifications      by     December
                            ‘out of office’ hours provision of childcare and early    Council plus voluntary and community            1.1    HE      Access       2007.
                            years support. This reflects the varied work patterns     providers.                                      Support.
                            in    certain    sectors    including    health.  New
                            developments need to provide for more flexible use        Costings would be dependent on the
                            of existing centres, increase the number of registered    proposed scale of delivery to be
                            childminders, and establish better links between          established via an appropriate needs
                            childminders/childcare           provision         and    assessment and feasibility study.
                            individuals/businesses to match demand with supply.
                                                                                                                          Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 101




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                       Linkage, synergy and best
Core Components          Project Action                                                Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                       practice
                         Tackling the Barriers                                         Partners: City Council/Social Services,         Links with Theme 2.         New programme
                         2.3 Create specific programmes to support carers              Plymouth College of Further Education,          Skills      –       Core    established by
                         There is a significant number of residents with care          Connexions, Job Centre Plus, RISE.              Component              3    July 2007.
                         responsibilities that restrict their ability to access                                                        Workforce
                         training and employment opportunities. In some                Lead Partner: Plymouth City Council in          Development.
                         cases, the core issue is affordability of care, while in      association with Plymouth Communities
                         other situations, the barrier is availability. In addition,   Partnership and Plymouth Guild of
                         constraints in terms of the flexibility of care               Voluntary Service
                         arrangements means that many individuals are
                         restricted from increasing their economic participation       Anticipated cost: £50,000 per annum.
                         from any existing level.

                         There is a need to provide advice and assistance to
                         individuals with care responsibilities. In particular, the
                         possibility of using community based social
                         enterprise models to provide responsive and
                         affordable care support should be investigated as
                         fully as possible.
                                                                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 102




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                   Linkage, synergy and best
Core Components          Project Action                                            Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                   practice
                         Tackling the Barriers                                     Partners: City Council/Social Services,         Links                with   New programme
                         2.4 Create specific programmes to support lone            Plymouth College of Further Education,          Neighbourhood               established by
                         parents into training and employment                      Connexions, Job Centre Plus, RISE.              Renewal Fund; Theme         July 2007.
                         There are significant numbers of people in Plymouth                                                       4. Participation – Core
                         who are prevented from entering the labour market or      Lead Partner: Plymouth City Council in          Component              2.
                         accessing training by their parenting responsibilities.   association with Plymouth Communities           Increasing
                         Research evidence highlights large numbers of lone        Partnership and Plymouth Guild of               employability of adults
                         parents in all the NRF priority wards. There is a need    Voluntary Service.                              and      young    people
                         to provide an integrated set of programmes to lone                                                        across Plymouth 1
                         parents that would improve access to skills and           Anticipated cost: £50,000 per annum.            Tackling the Barriers
                         employment opportunities and combine this with a                                                          2.2           Increasing
                         range of other support measures including affordable                                                      childcare      provision;
                         child.                                                                                                    Theme 2. Skills – Core
                                                                                                                                   Component 1 Increase
                                                                                                                                   Level 4 Qualifications
                                                                                                                                   and Core Component 3
                                                                                                                                   Workforce
                                                                                                                                   Development.
                                                                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 103




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                   Linkage, synergy and best
Core Components          Project Action                                            Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                   practice
                         Steps into Employment                                     Partners: City Development Company,             Construction      related   2006-2021.
                         2.5 Social enterprise development                         Plymouth City Council, Co-Active,               social       enterprises
                         Build on Plymouth’s successful social enterprise          Millfields Trust , Job Centre Plus,             should be developed
                         infrastructure to develop supported employment            Plymouth Returners, Wolseley Trust              around implementation
                         opportunities. Many people in the economically            Routeways, Community and voluntary              of the Mackay Vision
                         inactive category, especially those who have been         sector.                                         for    Plymouth      City
                         out of the labour market for some time, may not have                                                      Centre
                         the social or basic skills to take up employment          Lead  Partner:         City     Development
                         opportunities. As with the NEET category, some            Company.                                        Links with Theme 1.
                         people may require to re-enter employment in a                                                            Business – Sector
                         supportive environment. Priority should be given to       Cost: excess of £1,000,000 per annum.           Action Plans; Theme 2.
                         supporting social enterprises that can combine high                                                       Skills      –    Core
                         levels of support with a formal employment                                                                Component 2 Effective
                         environment.                                                                                              Learning Pathways, 3
                                                                                                                                   Workforce
                         In addition, these types of activities can be                                                             Development and 4
                         specifically designed around the City’s target and                                                        Skills    for   Target
                         growth sectors and around industries that support                                                         Sectors.
                         these     sectors.     In    particular,  Construction,
                         Engineering, Retail and Hospitality sectors should be
                         investigated for their potential in generating social
                         enterprise solutions that can both support local
                         people into employment, as well as offering a
                         valuable role in developing supply chains and
                         support activities to target growth sectors.
                                                                                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 104




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                 Linkage, synergy and best
Core Components          Project Action                                          Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                 practice
                         Steps into Employment                                   Partners: Plymouth Action Team, City                                        Immediate effect
                         2.6 Support the expansion of existing                   Council, Plymouth College of Further                                        and 2006 - 2021
                         programmes                                              Education, Connexions, Job Centre Plus,
                         In particular, the expansion of programmes such as      Go4    Adults,  Plymouth     Returners,
                         Stepping Stones, which is targeted at incapacity        Routeways, University of Plymouth,
                         benefits recipients, where individuals can try          Community and voluntary sector.
                         employment before their benefits are withdrawn.
                         There are many more people on incapacity benefit in     Lead  Partner:         City     Development
                         Plymouth than are on the unemployment register          Company.
                         especially in areas such Devonport. There is a need
                         to understand how people can be supported back          Anticipated Cost: excess of £1,000,000
                         into employment. There is an opportunity also to        per annum.
                         develop a further range of programmes which draw
                         upon recent good practice and provide support which
                         assists peoples move back into employment.
                         Steps into Employment                                   Partners: Plymouth Action Team, City                                        December 2007.
                         2.7 Helping People Sustain Employment                   Council, Plymouth College of Further
                         There are a number of reasons why some                  Education, Connexions, Job Centre Plus,
                         economically inactive people may not be able to         Go4    Adults,  Plymouth     Returners,
                         sustain employment including personal insecurity        Routeways, University of Plymouth,
                         (insecure relationships, housing); the pay gap, after   Community and voluntary sector.
                         starting work, between the last benefits payment and
                         the first paycheque; and the need for on-going          Lead  Partner:         City     Development
                         support to address barriers to continued employment.    Company.
                         Support should be made available to counsel and
                         support individuals for 6 or 12 months after            Anticipated Cost: approx £300,000 per
                         employment has been secured.                            annum.
                                                                                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 105




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                                                                 Linkage, synergy and best
Core Components          Project Action                                          Delivery (roles) and Funding Implications                                   Timescales
                                                                                                                                 practice
                         Steps into Employment                                   Partners: Plymouth Action Team, City            Links with Theme 2.         Operational by
                         2.8 Work with major employers to ensure a high          Council, Plymouth College of Further            Skills      –       Core    December 2007.
                         take up of employment opportunities by local            Education, Connexions, Job Centre Plus,         Component 1 Increase
                         residents                                               Go4    Adults,    Plymouth    Returners,        Level 4 Qualifications,
                         Plymouth has a fairly large employment base, and a      Routeways, University of Plymouth,              Core Component 3
                         considerable number of vacancies are generated          Community      and   voluntary   sector.        Workforce
                         each year. This includes a broad range of               Plymouth Childrens’ Services, Plymouth          Development and Core
                         employment in the Health service and the University,    Schools.                                        Component 4 Skills for
                         in addition to major employment opportunities at                                                        Target Sectors; Theme
                         Derriford.                                              Lead  Partner:         City     Development     3. Centres – Core
                                                                                 Company.                                        Component              2
                         The National Health Service is already working to                                                       Complementarity
                         increase the accessibility of employment and an         Anticipated Cost: approx £250,000 per           between key centres.
                         opportunity exists to create a single area-wide         annum.
                         employment brokerage to place workers with large
                         institutional employers. This project would create a
                         general register of planned new developments and
                         their likely labour requirements to allow forward
                         planning, and make effective use of local labour
                         contracts and public sector procurement agreements
                         to induce employers to offer training to their staff.
                                                                                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 106




THEME 4 – PARTICIPATION – ACTIONS & DELIVERY
                                                                                         Delivery (roles) and Funding   Linkage, synergy and
Core Components         Project Action                                                                                                           Timescales
                                                                                         Implications                   best practice
Economic Inclusion      3.1 Roll out Neighbourhood Management across                     Costs:      £250,000     per   Linkage with Theme       2006 - 2021
Component 3             Devonport Neighbourhood and across NRF wards.                    annum                    per   4. Participation –
Using Neighbourhood                                                                      Neighbourhood.                 Core Component 2
Management to tackle    To include:                                                                                     Increasing
economic exclusion in   •   Neighbourhood Mangers – to oversee and coordinate                                           employability        1
Plymouth                    the delivery of re-shaped services at neighbourhood          Lead Team NRF team             Tackling the Barriers
Ensuring priority           level. This will include a more detailed and fine grain      and Devonport NDC plus         2.1 Reaching out into
neighbourhoods are          appreciation of neighbourhood needs across                   City and voluntary and         priority wards through
clean, safe and well        environmental, health, crime and social services, as well    community sector.              mobile multi-agency
managed.                    as community learning and some leisure activities;                                          teams.
                        •   Neighbourhood Forum – development of neighbourhood
                            level forums that allow local people to express views
                            and concerns around the health and vitality of their local
                            areas, as well as quality and flexibility of local service
                            provision. Forums should organise and deliver events
                            that draw the community together, as well as a series of
                            mechanisms to gather views and elicit local opinion.
                            Reporting back to the community will also be an
                            important aspect of the forum as well as establishing
                            robust linkage between local statutory agencies and
                            community representation;
                        •   Street Wardens – recruitment of a team of wardens for
                            all priority neighbourhoods within the City. Wardens
                            would be tasked with monitoring the environmental
                            quality of the neighbourhood and directly remediating
                            problem areas where appropriate. Monitoring and
                            recording of certain types of criminal activity would also
                            fall within the remit of the wardens, having drawn up
                            effective and appropriate protocols with local police and
                            other security services;
                        •   Community Development - Neighbourhood
                            Management will also be used as mechanism for
                            ongoing community development, community capacity
                            building and extending models of local democracy.
                                                                                                            Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 107




THEME 5 – LEADERSHIP – ACTIONS & DELIVERY
                                                                  Delivery     (roles)   &   Funding
Core Components   Project Action                                                                       Linkage, synergy & best practice   Timescales
                                                                  Implications
Leadership        1.1                                             Plymouth 2020                        Linkage with all themes.           April 2007
Component 1       Establish City Development Company,
                  Memorandum and Articles and agree Board
                  membership

Leadership        1.2                                             Plymouth   2020  and          City   Linkage with all themes.           December 2007.
Component 2       Complete and endorse City Development Company   Development Company.
                  Business Plan
Leadership        1.3                                             City Development Company.            Linkage with all themes.           April 2008.
Component 3       Initiate Business Plan
                                                                                                             Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 108




Appendix B. Market Context

National and regional inward investment market trends

The 2004/05 UK FDI performance (as a barometer of inward investment) can be summarised:
     1,066 projects secured; and


     39,592 new jobs forecast.


This performance compared well to the 2003/04 figures with projects up by 31% and new jobs up by 55%. Some fundamental changes have been taking place in the
regional and national inward investment markets. They can be summarised:

    Relatively small size of new jobs per UK FDI project (average now 37 jobs), especially for some high-tech sectors such as software and pharmaceuticals/biotech.

                                        New Jobs per FDI project (2004/05)

                 Call Centres (& ssc)

                         Automotive

                           Telecoms
                             Finance

                        Food & Drink
        IT, Internet and e - commerce

 Environmental products and services

                          Electronics
           Pharmaceuticals & biotech

                         Engineering
                           Softw are

                          Chemicals

                        Management

                                        0    20     40    60     80    100   120   140   160   180   200
                                                                 No. of new jobs
                                                                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 109




Continuing and increasing importance of the service sector – some 75% of the UK FDI market in 2004/05.




                                         FDI Projects by activity 2004/05


                                       Call/Shared Service
                                             Centres
                           Distribution                E-commerce
                                               3%
                               8%                          2%
                   R&D
                    9%                                                                 Other Services
                                                                                            43%



                  HQs
                  10%


                               Manufacturing &
                                 Assembly
                                    25%
                                                                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 110




   Continuing importance of the ‘high-tech sectors’.




                                        FDI Projects by sector 2004/05
                          Softw are

       IT, Internet and e - commerce
                         Electronics

          Pharmaceuticals & biotech
                       Management

                            Finance
                        Automotive
                          Telecoms

                       Food & Drink
                        Engineering

Environmental products and services
                Call Centres (& ssc)

                         Chemicals

                                       0%        2%        4%            6%   8%   10%   12%
                                                                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 111




Increasing market share gained by London and the South East – 43% of all UK FDI projects in 2004/05.




                                     FDI Projects by region 2004/05



           London
        South East
        North West
     West Midlands
          Scotland
     East Midlands
           Eastern
        North East
            Wales
   Yorks & Humber
       South West
         N. Ireland

                      0         50           100           150          200           250              300
                                                     No. of projects
                                                                                                    Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 112




Rising importance of M&A – some 24% of the UK FDI market in 2004/05 – with new greenfield investments now accounting for less than 50%.




                                      FDI Projects by type 2004/05



                                 Mergers/Joint Retentions
                                  Ventures        2% Global
                                     3%            Entrepreneurs
                                                         1%
          Acquisitions
             22%
                                                                                          New
                                                                                          46%




                         Expansion
                           26%
                                                                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 113




In 2004/05, the South West attracted 38 FDI projects (3.6% of the UK total), involving the forecast creation of 1,251 new jobs and the safeguarding of 6,857 jobs. Key sectors
were telecoms, environmental products and services, software and electronics.


                                               South West projects as a % of UK projects 2004/05

                                  Telecoms

       Environmental products and services

                                  Softw are

                                 Electronics

                                Automotive

                       Call Centres (& ssc)

                   OVERALL AVERAGE %

                                Engineering

                 Pharmaceuticals & biotech

                               Management

               IT, Internet and e - commerce

                                 Chemicals

                                    Finance

                               Food & Drink

                                           0.0%      1.0%      2.0%      3.0%       4.0%      5.0%      6.0%       7.0%      8.0%
                                                                                                                         Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 114




Market outlook

Although the UK still remains one of the best performers in the whole of Europe for attracting inward investment, the future market in this country is likely to be characterised
by:

      Growing business pressures to push activities (even high value added goods and services) to lower cost countries;


      Even greater competition (both from elsewhere in the UK and internationally) for areas like Plymouth to win new investments and re-investments; and


      Increasing policy emphasis by the city regions in the UK to promote their locations for investment with a move away from just inward investment to a broader strategy
      embracing inward investment, retailing, leisure and tourism.
                                                                                                                Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 115




Appendix C. Key Location Factors for Sectors

Based on its extensive experience of advising companies on potential locations and incentives for planned investment projects, PwC believes that the traditional way of
classifying sectors/business activities through the standard industrial classification does not reflect particularly well how modern industry and commerce has evolved and
increasing convergence. PwC has therefore identified a new basis for classifying economic activity, based on the central principle of grouping together types of
economic activity which tend to share common location factors. Eight broad groupings have been defined:

     Emerging industries (e.g. multimedia);


     High level manufacturing (e.g. semiconductors);


     High tech services (e.g. financial and business services);


     Mainstream manufacturing (e.g. plastics);


     Office services (e.g. back office);


     General services (e.g. distribution);


     Leisure and tourism (e.g. hotels); and


     Processing industries (e.g. paper and pulp).
                                                                                                                      Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 116




PwC has also identified the key location factors linked to each of these groupings – they are summarised in Table 5.


              Groupings of Economic Activities                                                             Key common requirements
 1 “Emerging Industries”                                       o   High propensity to cluster
 .
   o Media/multi-media                                         o   Access to leading technologies and an innovative environment
    o    Biotechnology                                         o   Presence of Universities, researchers and skilled labour
    o    Nanotechnology                                        o   Susceptible to catalyst initiatives and Government support
                                                               o   Prestige locations in a quality environment
                                                               o   Excellent infrastructure and accessibility to customers/markets
 2 “High Tech Manufacturing”                                   o   Existing skill base vital
 .
   o Semiconductors                                            o   Access to large and growing markets and key customers
    o    Telecoms equipment                                    o   Track record in attracting high tech manufacturing
    o    Pharmaceutical & fine chemicals                       o   Sensitive to differences in operating costs and tax/incentives
    o    Advanced materials                                    o   High quality communications
    o    Aerospace                                             o   Fast track, purpose-built premises with full Government support
 3 “High Level Services”                                       o   Appropriate skills availability
 .
   o IT services and software                                  o   Rapid market access
    o    HQ functions                                          o   Propensity to cluster in IT & Software, HQ and R&D
    o    R&D                                                   o   Low operating costs becoming increasingly important
    o    Financial and business services                       o   Access to advanced technologies & University research for R&D
    o    Telecoms services                                     o   High quality facilities in a prestige location for HQ functions
    o    Publishing
                                                                                                              Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 117




                  Groupings of Economic Activities                                                  Key common requirements
 4 “Mainstream Manufacturing”                        o   Quality market, labour & supplier access
 .
   o Electronics & office machines                   o   Operational cost sensitivity
     o    Plastics and rubber                        o   Increasing requirement for an educated and skilled workforce
     o    Automotive assembly and components         o   High quality infrastructure and logistics is essential
     o    Medical devices                            o   Prefer high quality locations with a good track record in industry
     o    Textiles and food processing               o   Favourable regulations governing labour laws, operating, etc
     o    Wood & paper products/packing              o   Can be sensitive to grants and other incentives
     o    Mechanical engineering                     o   Shift to emerging markets
 5 “Office Services”                                 o   Appropriate labour availability vital
 .
   o Call centres & shared service centres           o   Increasingly cost sensitive
     o    Back office                                o   Multi-lingual skills often critical
     o    Government agencies                        o   Access to customer (internal as well as external) can be important
                                                     o   Good quality ICT and physical infrastructure
                                                     o   Prestige locations not essential; can be grants sensitive
                                                     o   Can be influenced by IPA initiatives to support the sector
 6 “General Services”                                o   Market (customer) access critical
     o    Transport, logistics and distribution      o   Infrastructure and logistics also critical for distribution activities
     o    Printing                                   o   Skilled labour availability is important
     o    Healthcare support services                o   Cost sensitive
     o    Trade centres/building services            o   Purpose built facilities and large sites are also important
Table 5 (cont.)
                                                                                                           Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 118




                  Groupings of Economic Activities                                              Key common requirements
 7 “Leisure and Tourism”                             o   Market (customer) access and growth potential is critical
 .
   o Hotels                                          o   Labour availability is also a consideration, as well as language skills
     o    Attractions                                o   Regulations governing construction and operation
                                                     o   Infrastructure quality and logistics
                                                     o   Quality and attractiveness of the environment (rural or urban)
 8 “Processing Industries”                           o   Accessibility to large growth markets and key customers
 .
   o Paper and pulp                                  o   Adjacent to natural resources
     o    Mineral products                           o   Good quality road, rail and port infrastructure and logistics
     o    Forestry products                          o   Low operating costs
     o    Major foodstuffs                           o   Appropriate labour force
     o    Oils processing                            o   Presence of related and supporting industries
     o    Extractive industries                      o   Pro-business regulations
     o    Steel and aluminium                        o   Substantial and reliable water and power supplies
Table 5 (cont.)
Source: PwC
                                                                                                             Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 119




Appendix D. Consultation (sector strategy related)

We carried out a limited number of consultations with interested parties, including:
    Plymouth Manufacturing Group;


     Plymouth Council;


     SWRDA;


     Tamar Science Park; and


     National Marine Aquarium.


Respondents were asked a series of structured questions covering issues including:

     General perceptions of Plymouth’s success in the FDI market:


o          “Last major investor was Murata in the 1980s – small projects have predominated since then”.

o          “City is doing well in call centres, but not so well in other areas of activity”.

o          “Plymouth has not adjusted well to the new market conditions, especially in inward investment”.
                                                                                                               Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 120




Reasons for success/lack of success:


 o    “Manufacturing cannot compete with Eastern Europe and Far East for mobile projects”.


 o    “There is a lack of awareness in the marketplace of what Plymouth can offer”.


 o    “Technical skills are present in the area, but the perception is that the city is out on a limb and inaccessible”.


The realistic prospects for attracting new investments to Plymouth:


 o    “Plymouth is very unlikely to attract anything like the previous number of larger manufacturing projects”.


 o    “The city can attract new investment but only by focussing on sectors where it has a genuine competitive advantage”.


 o    “The perceptions of peripherality mean that it’s a tough sell to attract investment to the city”.


Views on the city growth strategy:


 o    “It seems to be moving in the right direction”.


 o    “Public sector interventions in economic development need to be enhanced significantly if the near vision is to be delivered”.


 o    “Where is the competitive advantage that the advanced engineering sector can offer to investors compared to other locations”.


 o    “It seems fine and well matched to the regional economic strategy”.


 o    “It is not immediately clear how the substantial increase in jobs will be achieved – and which sectors will be a key source of these jobs”.
                                                                                                            Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 121




 o    “I can understand why the key sectors were chosen but the strongest offer is in medical and healthcare as a result of investment in the hospital and on the
      science park”.


Actions that could be taken by the public sector to improve the Plymouth offer:


 o    “The public sector can make income-grown companies more competitive by assisting with innovation and technology”.


 o    “Can the public authorities look at the quality of the environment in some of the major employment areas?”


 o    “A key requirement will be an ongoing programme of new office building in the city to underpin the new economic strategy”.


 o    “Basic numeracy literacy is a major issue – the workforce needs upskilling”.


 o    “Marketing is a critical first step – there is a need to get the message across that Plymouth is accessible and open for business”.


 o    “There is a need to actively market the city in key overseas markets”.


 o    “The intervention has to be very focused – there is no point in ‘tweaking’ the offer”.


 o    “We have to think big, developing the university and associated spin-out benefits may provide Plymouth with the USP it needs”.
                                                                                                            Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 122




Appendix E. Plymouth Business Growth SWOT

                                                  Competitive Strengths, Weaknesses, Opportunities and Threats
Competitive Strengths                                                            Competitive Weaknesses
Outstanding natural setting, environment and quality of life.                    Peripherality.
Rich maritime heritage.                                                          Poor transport links.
Size and sub-regional presence.                                                  Lack of an entrepreneurial culture.
Workforce loyalty and effectiveness.                                             Over reliance on low value operations
Size and diversity of higher and further education sector.                       Dependence on major employers.
World renowned marine science base.                                              Poor internal and external image.
Strong and developing medical science base.                                      Examples of poor urban environmental quality.
Sectoral strengths in the defence, marine, medical & engineering sectors.        Deprivation.
Availability of sites and premises for development.                              Low levels of skills.
                                                                                 Unappealing city centre.
                                                                                 Poor track record of engagement with business.
                                                                                 Sectoral weaknesses (computer services, business services).
                                                                                                                 Plymouth Local Economic Strategy 2006 – 2021 & Beyond | 123




                                                    Competitive Strengths, Weaknesses, Opportunities and Threats
 Opportunities                                                                         Threats
 Capitalise on strengths in the higher education sector.                               Downturn in global economic conditions.
 Capitalise on environmental and quality of life benefits.                             Increased competition from low cost overseas competitors.
 Use ICT effectively to overcome locational disadvantages and attract lifestyle
                                                                                       Relocation of existing employers.
 businesses.
                                                                                       Increased peripherality, if a failure to improve transport links is accompanied by
 Make the most of available funding.
                                                                                       improvements elsewhere.
 Create a new sense of optimism, creativity and entrepreneurship.                      Declines in defence spending and employment.
                                                                                       Skills shortages – especially in engineering related occupations – where the
 Redevelop the built environment.
                                                                                       workforce is ageing and there are difficulties in attracting young people.
 Engage business in shaping the city’s economic future.                                Fragmentation of initiatives and a failure to integrate strategies.
 Develop the city’s role as a sub-regional centre for business services, leisure and
 entertainment.
 Gain a larger share of the regional tourism market.
 Benefit from increased leisure spending.
 Develop stronger and more focused local business networks and supply chains.
Table 8 (cont.)
Source: CGS

				
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