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					Report To Overview Committee –                                9 September 2008
Economic and Community Development


Subject:            Scoping the Economic Development Strategy
Status:             Routine matter for comment
Report Ref:
Ward(s):            All
Key Decision:       No
Key Decision Ref:
Report Of:          Head of Strategy and Innovation
                    Symon Easton
Contact:
                    Acting Economic Prosperity & Culture Manager. Ext: 2597
Appendices:
Papers relied on    Economic Prosperity Programme Board Report to ECD
to produce this     Committee 1 July 2008
report              Economic Development Strategy Terms of Reference


SUMMARY

1     This Report

1.1   This report follows on from the Economic Prosperity Programme Board report
      presented to this committee on 1 July 2008 and the inaugural meeting of the
      Programme Board itself on 18 July.

1.2   The purpose of this report is to seek members comments on the proposed
      scope, content and plan for the Economic Development Strategy. The
      purpose of the strategy is to help the council and its partners meet their
      economic development objectives in the borough.

2     Recommendation

      It is recommended that:

2.1   Members support the principle of preparing an Economic Development
      Strategy.

2.2   Members give their comments on the proposed scope, content and plan for
      the Economic Development Strategy




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PRIORITIES, IMPACTS AND RISKS

Contribution To Council Priorities
This report accords with the Council‟s Budget and Policy Framework
Council Plan Ref 2008-11:           Priority 1: To secure and enhance prosperity. A2
3-Year Action Plan:                 S12.1, S12.3
Other References:
Contribution To Community Strategy
Community Strategy 2006-16:         P2, P4, P5
Impacts
                                                       No
                                                                   Some       Significan
             Type                                  significant
                                                                  impacts     t impacts
                                                    impacts
Impacts      Financial                                              
for          Personnel                                  
BDBC
             Legal                                      
Impacts   Equality and Diversity                        
on        Rural/Urban                                               
Wellbeing
          Crime and Disorder                            
             Health                                     
             Environment and Climate Change             
             Economic                                                             
Involving Communication/Consultation                                              
Others    Partners                                                  
Risk Assessment
Number of risks identified:                                          None
Number of risks considered HIGH or Medium:                           None
                                                                        Yes
Strategic:       Already identified on Corporate Risk Register?
                                                                        No        N/A
                                                                        Yes
Operational:     Already identified in Service Plans?
                                                                        No        N/A




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GLOSSARY OF TERMS
Term                                    Definition
SEEDA                                   South East England Development Agency
RES                                     Regional Economic Strategy
EDO                                     Economic Development Office
HEP                                     Hampshire Economic Partnership
TVEH                                    Thames Valley Enterprise Hub
TVEP                                    Thames Valley Enterprise Partnership
LDF                                     Local Development Framework
LSP                                     Local Strategic Partnership
CSR                                     Corporate Social Responsibility
SMEs                                    Small to Medium Enterprises
MAA                                     Multi Area Agreement


DETAIL/MAIN CONSIDERATIONS

3       Background

3.1     Members are referred to the „Economic Prosperity Programme Board‟ report
        presented at a previous meeting of this committee on 1 st July 2008 for the
        background to the requirement for an Economic Development Strategy and a
        number of inter-linked projects which, together, are addressing the economic
        prosperity objectives in the borough.

3.2     Securing and enhancing prosperity is one of the four priorities of Basingstoke
        and Deane Borough Council. The 2008-11 council plan says:

              “Prosperity heads our agenda because unless prosperity is assured and
               sustained the community as a whole lacks the resources to address all
               our other priorities and needs. This applies equally in our towns and
               rural areas, for our younger and older residents, and especially for the
               disadvantaged and those with special needs, whether economic, social
               or physical. Prosperity generates the resources needed to tackle
               problems, to protect and improve the environment, and to deliver better
               services.”

3.3     Priority 1 of the council plan is:

        To secure and enhance prosperity

        Goal:        To make Basingstoke and Deane a place where local business,
                     entrepreneurs, organisations, families and individuals can flourish
                     by improving its image and reputation as an attractive place to
                     live, visit and do business.

        Aims A2, A4, and A6 of the Plan are:

        A2    Secure sustainable economic growth and overall prosperity for both rural
              towns and rural areas of the Borough.



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        A4   Improve image of the Borough as a place to live, work, invest, do
             business and visit

        A6   Regenerate and improve areas of the Borough to meet community and
             business needs and enhance well-being

3.4     Basingstoke & Deane in the north of Hampshire has a diverse mix of rural and
        urban economy, considered part of the Thames Valley and Western Corridor
        economic sub-region, which also includes the Hampshire districts of Hart and
        Rushmoor, this sub-region is regarded within the UK as the most powerful
        economic area outside London. It is home to a number of international
        companies, and is considered the hub for the ICT and life sciences sectors.
        With this in mind south east government agencies share the aspiration in their
        economic and spatial strategies that the sub-region should continue to
        develop its knowledge based economy to advance its position as one of the
        most prosperous, skilled and creative sub-regional economies in Europe.

3.5     The borough has attracted international companies since it was re-developed
        in the 1960‟s, creating a vibrant business environment with first rate
        commercial opportunities. The borough is strategically located and
        considered Hampshire‟s transport hub, with proximity and ease of travel to
        both London and Heathrow/Gatwick airports, along with easy access to main
        seaports in Southampton and Portsmouth. In addition the presence of a
        highly skilled labour force, its high quality business base and the excellent
        quality of life in Basingstoke & Deane, make it a major draw to investors

3.6     The creation of an economic development strategy will identify themes and
        initiatives that will shape the economic prosperity of the borough. The
        implications of this strategy will be wide and affect the community of residents,
        visitors and workers of the borough.

4       Economic Development Strategy Proposal

4.1     Scope

        The Economic Development Strategy will provide a structure for the
        Basingstoke & Deane economy with subsequent objectives that will set out
        the council‟s vision for economic development for the next 5 - 10 years.

        The strategy will include a mission statement that is coherent with the Council
        Plan and other corporate strategies. It will also include a vision and action
        plan for the future achievement of objectives that are relevant to promoting a
        sustainable and prosperous economy, these will include: Business Support,
        Enterprise Growth & Knowledge Economy, Skills Development, Inward
        Investment, Promoting Basingstoke, Transport Issues, Central Area
        Development, Partnership Work, Rural Economy, economic perspective of
        Culture and the Creative Sector, Business Partnerships and, sustainable
        business.

4.2     Links

4.2.1   SEEDA Regional Economic Strategy (RES)

        SEEDA has identified Basingstoke as a diamond for growth. There are eight
        diamonds for growth in the south east region, with only two diamonds in


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        Hampshire: the PUSH (Partnership for Urban South Hampshire) area and
        Basingstoke. The diamond for growth designation is given to cities and
        towns, due to their potential to shape the development of the south east, and
        the capacity to act as a channel to stimulate prosperity across wider areas in
        the region.

        The RES has three interlinked objectives

               Achieving global competitiveness

               Spreading the benefits of competitiveness (smart growth)

               Ensuring that competitiveness is consistent with the principles of
                sustainable development (sustainable prosperity)

4.2.2   Hampshire County Council – Economic Development Office (EDO)

        The EDO vision is for “a successful economy, where businesses thrive and
        invest; where all members of the community have the opportunity to
        participate in the productive, fulfilling work; where skills are developed; and
        where the environment is cared for. An economy fit for the future”.
        There are five priority areas of work:

               Economic Policy

               Rural Economy

               Business Development and marketing

               Community

               Environment

4.2.3   Hampshire Economic Partnership (HEP)

        This partnership brings together business, Government representative bodies
        and local authorities to influence government policy. It also supports the
        sustainable economic prosperity of Hampshire and its sub-regions by:

               Identifying and championing the needs and priorities of Hampshire
                business

               Providing an authoritative, credible, independent economic voice for
                business

               Ensuring that the best decisions are made to deliver sustainable
                economic prosperity for the area.

4.2.4   Thames Valley Enterprise Hub (TVEH)

        The Enterprise Hub Network specialises in knowledge-based businesses with
        pioneering ideas, focusing on entrepreneurial individuals and companies,
        helping them bring ideas to market quickly and profitably. TVEH offers a
        range of services and provides expert advice tailored to individual business
        needs for growth and investment.



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4.2.5   Thames Valley Enterprise Partnership (TVEP)

        TVEP has six objectives in supporting the development of the Thames Valley:

               Influencing transport infrastructure

               Attracting new investment

               Retaining investment, the provision of an Investor Care Service to
                encourage reinvestment by existing companies

               Supporting innovation

               Developing the talent pool

               Enabling economic regeneration

        The Economic Development Strategy will be strongly influenced by the
        Council Plan and will have an integral relationship with The Loc al
        Development Framework (LDF). There are also important links with the
        Sustainable Community Strategy, Housing Strategy, Central Area Vision and
        Basing View re-development.

4.3     Overall Aim

        The aim of this project is to develop an effective and sustainable Economic
        Development Strategy for the Borough, raising the profile of what all partners
        can do in the area to generate economic prosperity and guide the thinking on
        economic development for the next 5 years.

4.4     Objectives and Outcomes

               Secure sustainable economic growth and overall prosperity for both
                town centre and rural communities in the Borough

               Plan for attracting Inward Investment in to the borough

               Improve the skills levels of local community to meet the future needs
                of businesses

               Improve perceptions of Basingstoke as a location to live, work and
                enjoy, both locally and nationally

               Improve business involvement in the LSP by their contribution to the
                economic prosperity agenda

               Increase access to funding opportunities to improve the skills set of
                local people and develop projects that benefit local people through
                economic activity

               Increase CSR (Corporate Social Responsibility) from businesses that
                are linked to their area of expertise

               Improve opportunities for Entrepreneurial, Incubation and „Start Up‟
                Enterprises


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4.5     Business Case

4.5.1   Recognising the significant position that Basingstoke and Deane has in
        Hampshire, and in the south east, the Borough Council has a key role to play
        in the creation and sustainability of a healthy economy. It is the one agency
        which, through its powers, duties and responsibilities has the potential to
        influence the local economic climate across a wide spectrum of issues. This
        role is further strengthened by the designation of Basingstoke as a Diamond
        for Growth and a Growth Point according to the Regional Economic Strategy
        created by SEEDA.

4.5.2   The Economic Development Strategy is required to secure the development
        of Basingstoke and Deane as a business and culture location. The strategy
        will determine how the council can best design and plan for a prosperous
        future in the borough.

4.5.3   This Strategy must ensure that our businesses are able to compete and
        prosper in a global economy. With global improvements in communication
        technologies, increasing transport infrastructure, and the emergence of new
        markets, we must ensure that we continue to attract not just new investment,
        but equally as important, retain our current businesses by supporting their
        needs as closely as possible.

4.6     Strategy Content - Possible actions

        Research

           Establish baseline employment and employer mix in Basingstoke and
            Deane

           Gain understanding of issues for employers in the borough

           Monitor the economic climate and its effect on businesses in the locality

        Future trends

           Identify future trends, both locally, regionally and nationally that may affect
            economic growth and issues with specific economic sectors

        Business Growth / Partnerships

           Develop partnerships with key regional agencies – including; SEEDA,
            LSP, HCC, Business Link, TVEP, TVEH, Chamber of Commerce and,
            Place based Innovation Teams to consolidate and retain existing business
            and employers in the borough and, to identify and source funding streams
            to support business growth.

        Business Support

           Provide economic intelligence, advice and support to local businesses to
            promote diversification.

           Improve Council communications with businesses at a local level




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Enterprise / Innovation development

   Undertake Incubation / Start Up feasibility demand study and act on
    results

   Work with enterprise hubs, Economic Partnerships, enterprise groups,
    knowledge economy, innovation support initiatives, Basingstoke Business
    Partnership.

Inward Investment

   Work with businesses on addressing their current challenges and future
    requirements

   Develop an Inward Investment project plan with support from SEEDA

Promoting Basingstoke

   Work with the Promoting Basingstoke strategy group and Destination
    Basingstoke in helping to improve communication with businesses and
    create a positive inward investment message for the borough.

Skills Development

   Continue working towards the „Partnership for Success‟ strategy with
    partners

   Work in tandem with the existing Learning Campus and Local Area
    Agreement Projects to develop opportunities and secure external funds for
    skills development.

Economic Growth

   Work with the Planning Business Unit to align the Economic Development
    Strategy with the Local Development Framework to ensure that economic
    growth can be supported by local infrastructure

   Strengthen key areas of research, development and innovation to
    encourage global competitiveness among local businesses

   Engage with HCC and Planning on addressing transport issues.

Cross Boundary Working

   Identify economic/inward investment links across north Hampshire, with
    the possibility of joint projects with other local authorities (see „Diamonds /
    MAA Project‟)

Central Area Development

   Work with Neighbourhood Development and Planning on Town Centre
    Vision especially regeneration of Basing View.




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      Rural Economy

         Work with HCC Economic Development team on developing Terms of
          Reference for a project to address the borough‟s Rural Economy.

      Visitor Economy

         Work with initiatives that improve the night-time economy and public realm
          e.g. development of a cultural quarter at the top of town.

         Develop international links – economic, social and cultural e.g. foreign
          delegation visits, youth exchanges, business conferences.

      Case Studies

         Research a number of good case studies that represent and illustrate
          relevant aspects of the strategy that we would want to promote - include
          them as examples of what the council is trying to achieve.


5     Current Situation

5.1   The draft Terms of Reference for the Economic Development Strategy were
      presented at the first meeting of the Economic Programme Prosperity Board
      on 18 July. Members amendments and comments have been incorporated in
      the revised document which forms the body of this report.

5.2   A project team, comprised of internal council officers and representatives from
      external key partners such as Hampshire County Council and Business Link
      has been established to take forward work on the Strategy. The next meeting
      of the project team is scheduled for 11 September.

5.3   In the meantime, economic development and planning officers are meeting to
      identify and take forward the essential research requirements for the
      Economic Strategy and Local Development Framework. Whilst much data can
      be sourced with in-house expertise, or from partner agencies, it is anticipated
      that some research, such as identifying the impact of future trends on
      economic development, will need to be commissioned.

6     Financial Implications

6.1   The primary implication will be the need to commission research for the
      Economic Development Strategy such as identifying the future trends
      affecting the boroughs development. Officers are currently working closely
      with colleagues in planning to identify the current gaps in research that will be
      needed to underpin Economic Development and the Local Development
      Framework. This work is in progress, officers will be able to update members
      on potential costs and budget implications at the meeting.

7     Legal Implications

7.1   There are no legal implications for the council establishing an Economic
      Development Strategy. There are likely to be legal implications arising from a


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         number of the proposed policy changes in the Sub National Review, for
         example the requirement for authorities to undertake regional economic
         assessments, but these need to be addressed by just Upper Tier / Unitary
         authorities at this time.

8        Next Steps

8.1      The following project plan highlights the anticipated timeframe and key actions
         for the strategy‟s development:

                             Action                                 When

    Agree framework for developing the Strategy with            July / August 2008
    Programme Board and key partners

    Research – establish baseline employment and                August – Dec 2008
    employer mix in the borough

    Research – consult with employers and business
    agencies to identify the issues, local and national, that
    will impact on the development of the strategy              August – Dec 2008

    Research – identify future trends, both locally and
    regionally that may affect economic growth and issues
    with specific sectors                                       August – Dec 2008

    Economic Development Strategy scoping report to
    Economic and Community Development Overview
    Committee                                                   September 2008

    Research – identify demand and capacity for
    incubation / start up provision in the borough (see
    Learning Campus project)                                    August – Oct 2008

    Work with partners and businesses to establish and
    agree the priorities for the local economy – including
    „high level‟ event around LDF Strategic Vision for          August - Dec 2008
    Growth
                                                                Event date tba

    Outline the strategic objectives for the Strategy – seek    Jan 2009
    approval from partners and Programme board.

    Report back to overview for comments

    Publish Economic Development Strategy                       March 2009

    Detailed action plan to deliver objectives                  April 2009




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