Exeter and Heart of Devon Economic Development Strategy_1_ by malj

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									            Exeter and Heart of Devon
             Economic Development
                     Strategy



                                            Summary




Summary Strategy – updated 18 August 2004
EHOD Economic Development Strategy Summary




CONTENTS




1.                INTRODUCTION


2.                ECONOMIC AND SOCIAL CONTEXT


3.                VISION AND STRATEGIC OBJECTIVES


4.                IMPLEMENTATION AND NEXT STEPS




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EHOD Economic Development Strategy Summary




1.          INTRODUCTION



1.1         This document provides a summary of the economic development strategy of
            Exeter and the Heart of Devon Economic Partnership. It provides a vision for
            the sub-region and working framework for the economic partnership and other
            key stakeholders.

1.2         The strategy is based on a detailed analysis of the economic characteristics
            and priorities of the sub-region and highlights the importance of the area as a
            major contributor to the economic performance of the wider South West.

            CONSULTATION

1.3         Importantly, the strategy has been developed in the light of a comprehensive
            consultation process including face-to-face interviews with 25 key partners.
            Moreover, the draft strategy was circulated to approximately 300 stakeholders
            in the sub-region.

1.4         The consultation process generated widespread support for the strategy and
            reflected the positive approach of key players in the sub-region and region to
            work in partnership to achieve the aims of the strategy.

            PURPOSE OF STRATEGY

1.5         Exeter and the Heart of Devon (EHOD) is one of a number of sub-regional
            partnerships in the region. A key function of a sub-regional partnership as
            defined by the South West Regional Development Agency (SWRDA) is to
            produce strategies that demonstrate both how they will deal with the most
            important issues in their areas and how they can deliver within the framework
            of the Regional Economic Strategy. Moreover, SWRDA highlights that the
            partnerships provide an important consultative and strategic function in
            defining priorities for action including support from the RDA and other
            strategic agencies.


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1.6         Given that the strategy plays a critical role in translating the Regional
            Economic Strategy into the sub-regional context of EHOD, the action
            framework set out in this document clearly reflects the strategic economic
            objectives established by SWRDA.

1.7         There are a number of other fundamental reasons for the strategy including:

                       complementing and adding value to the existing range of economic
                        development, regeneration and related strategies and initiatives in the
                        South West region1;

                       providing an integrated framework for effective partnership and joint
                        working not only between local authorities and public bodies
                        represented in the sub-region but also with stakeholders in the private,
                        community and voluntary sectors;

                       defining common goals and priorities for the economic development
                        and regeneration of the sub-region – providing a key input to future
                        policy development at both the local and regional levels. This strategy
                        will be important in shaping future regional economic and planning
                        strategies (including the Regional Spatial Plan). It will also provide a
                        strategic economic context for Local Development Frameworks and
                        local Community Strategies; and

                       facilitating the delivery of relevant regional economic development and
                        regeneration programmes and initiatives.

            NATURE OF THE STRATEGY

1.8         The strategy is deliberately ambitious but pragmatic. It sets out a range of
            long-term strategic objectives, which provide the challenge to all key
            stakeholders with an interest in the sub-region. The strategy is founded on
            the principles of:

                       sustainable development;


1
  Includes initiatives such as: Community Plans; Rural Renaissance; Coastal and Market Towns
Initiative; Devon Structure Plan; Strategic Plan Learning and Skills Council; Devon Rural Strategy;
South West Sustainable Farming and Food Delivery Plan; local Development Plans; local economic
development plans. Key plans and strategies are fully analysed in the main report.
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                       support for urban, rural and coastal enterprise;

                       promotion of innovation and research;

                       equality of opportunity for all;

                       economic diversity; and

                       a competitive skills base and diverse range of learning opportunities.

1.9         The vision for the sub-region is complemented by an economic development
            action framework for the period 2004 to 2008. This action plan builds on the
            previous sub-regional strategy for EHOD. Whilst the action plan aims to
            establish the mechanisms required to make a significant contribution to the
            strategic objectives, importantly it also provides a common sub-regional
            implementation framework for all key partners.




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2.          ECONOMIC AND SOCIAL CONTEXT



            INTRODUCTION

2.1         This section provides a brief summary of the key economic, social and labour
            market characteristics of the sub-region2. Coupled with the consultation
            process, this analysis is important in highlighting key economic development
            priorities for the sub-region and the constituent local authority areas.

2.2         The SWOT analysis set out in this Section provides a synopsis of the sub-
            region’s economic opportunities and challenges.

            PEOPLE AND SKILLS

2.3         In 2002 the population of the sub-region was approximately 430,000.
            Between 1991 and 2002, the total population of the sub-region increased by
            over 8% (33,140). The significance of population growth was most
            pronounced in areas, which have proved popular as locations for ‘in-
            migration’. These include Exmouth, Honiton, Cullompton, Tiverton, Dawlish
            and Teignmouth.

2.4         This trend of population increase is forecast to continue with the number of
            people living in the sub-region increasing by 50,000 over the next 20 years.
            Of these, approximately 30,000 will be of working age. Whilst this will provide
            an important driver for economic growth, it will be essential to match labour
            market growth with appropriate investment in the creation of new jobs and
            supporting infrastructure.

2.5         Overall, the skills and qualifications of the sub-region’s population compares
            reasonably well to the national average. However, whilst younger age groups
            are more likely to have higher qualifications, the percentage of 25 to 34 year
            olds with higher qualifications in EHOD is notably below the national average.
            This reflects the fact that:


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                       a significant proportion of young people migrate outside of the sub-
                        region to work . This is reinforced by low levels of graduate retention in
                        the sub-region; and

                       graduates, either with a permanent or term-time address in the sub-
                        region move out of the region to find graduate employment.

2.6         There is a relatively low level of young adults with high qualifications in EHOD
            and the sub-region is characterised by a low ‘staying-on’ rate at 16+. This is
            particularly the case in Exeter where staying-on rates and GCSE pass rates
            are low (43% compared to 53% in Devon). This reflects the significance of
            under-performance in education in parts of the sub-region and problems
            relating to low aspirations.

2.7         Recent research carried out for the Learning and Skills Council showed that
            levels of workplace training in Devon and Cornwall are insufficient to support
            the needs of the labour force. Consequently, it will be important for
            stakeholders in the sub-region to work closely with employers and small
            businesses to encourage and facilitate greater participation in workplace
            training. This is particularly important when one considers future skill
            requirements: it is anticipated that 43% of the total net increase in
            employment in Devon over the next 10 years will be accounted for by
            demand for professional occupations3.

2.8         Seventeen of the 282 areas covered by the Indices of Deprivation 2004 in
            EHOD are in the top 25% of areas in England, with 11 of these areas in
            Exeter (concentrated in the city centre, Priory ward, Whipton and
            Mincinglake), five in Teignbridge (Newton Abbot and Teignmouth) and one
            was in Mid Devon (Tiverton).          The most pressing factors underlying
            deprivation in the sub-region are low incomes and poor access to services (in
            rural and coastal areas). In creating a more sustainable and prosperous
            economy, it will be essential that key regeneration initiatives are focused on:

                       coastal and market towns;

                       rural areas throughout the sub-region; and

2
    Section 3 of the main report provides the detailed analysis.
3
    Economic and Labour Market Projection: Warwick Institute for Employment Research, 2003.


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                       deprived and disadvantaged communities in Exeter.

            BUSINESS AND EMPLOYMENT

2.9         Between 1991 and 2002, total employment in EHOD increased from
            137,400 to 182,500 (33%)4. As a centre for employment, Exeter continues to
            provide the majority of jobs for people residing in the sub-region or travelling
            to work from beyond the area. However, other locations within the sub-region
            have experienced significant levels of employment growth over the past
            decade; most of it has arisen over the last five years and has been focused on
            locations surrounding Exeter (particularly to the east of the M5, Honiton,
            Tiverton and Newton Abbot).

2.10        In terms of employment structure, a number of key observations can be
            made:

                       service sector activities dominate the Exeter economy whilst
                        manufacturing is a more significant employer in the other three
                        districts;

                       the banking, finance and insurance sector in Exeter is becoming an
                        increasingly important source of employment in the City. Whilst public
                        sector jobs remain substantial, in 2002 the sector accounted for a
                        significantly lower proportion of total employment than that recorded in
                        1996;

                       the rate of employment growth in distribution, hotels and restaurants
                        (including retail) was greater in Exeter than the other districts. This
                        may reflect the growing importance of the City as a retail centre;

                       manufacturing is particularly significant in Mid Devon, accounting for
                        22% of total employment in 2002 (compared to 10% in EHOD);

                       agriculture and land-based activities are an important and crucial
                        source of enterprise and employment in the sub-region’s rural areas.




4
    Excluding self-employment.
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                       the sub-region's environmental assets are a critical resource to the
                        sub-region's economy, which are continually managed and enhanced
                        by farmers (in terms of land) - it is therefore crucial that a sustainable
                        and profitable agricultural industry is in place to ensure that
                        environmental assets remain so.

                       tourism is of fundamental importance to the EHOD economy. Overall,
                        approximately 10% of employment directly relates to tourism activity.
                        In some areas, particularly rural and coastal locations, the reliance on
                        tourism is significantly greater (for example, in East Devon
                        approximately 20% of total employment relates to the tourism industry).

2.11        Approximately only 9.5% (over 17,000) of the employees in the sub-
            region work in knowledge based industries compared to 12% in the
            South West5. Exeter alone accounts for nearly half of the sub-region’s stock
            of knowledge based jobs. Whilst this demonstrates the role of Exeter as the
            main commercial centre, it also highlights that the three rural districts are
            particularly poorly represented in terms of the knowledge based sectors.
            Raising the proportion of knowledge-based jobs in the sub-region is a major
            theme to the economic development strategy. The University of Exeter has
            an important role to play in facilitating knowledge transfer to local businesses
            in EHOD and the wider region.

2.12        Rates of self-employment in the sub-region are above the national average,
            with high levels in the rural areas, particularly in locations most distant from
            Exeter (up to 35% in places). This reflects the prevalence and importance of
            small businesses: agricultural, tourism and other land based activities in these
            areas.

            LABOUR MARKET

2.13        Analysis of commuting data highlights Exeter’s role as the key employment
            centre for the sub-region. Indeed in absolute terms, Exeter is the major
            centre for ‘in-commuting’ west of Bristol. Whilst the leading and growing role
            of Exeter for employment reflects the importance of the main urban area as a
            commercial business centre, there is a need to encourage more sustainable


5
  Organisation for Economic Co-operation and Development (OECD) definition of knowledge-based
industries includes telecommunications, computer and information services, business services, high-
technology industries and pharmaceuticals.
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            communities in the sub-region by supporting appropriate employment
            creation in the area’s market and coastal towns.

2.14        Earned Income levels are significantly lower in EHOD compared to the
            rest of the South West region. Indeed, this trend is evident for the majority
            of occupations. The following factors have to a greater or lesser extent
            contributed to the presence of low wages in the sub-region:

                       high levels of agricultural and related employment;

                       high levels of part-time and seasonal employment;

                       a relatively low proportion of knowledge based jobs;

                       lack of established reputation as a location for inward investment in
                        sectors required highly valued skills;

                       a high proportion of retired population (in-migrants); and

                       low aspirations     (including   educational   attainment    and   career
                        development).

2.15        Reversing EHOD’s low-wage economy is the fundamental priority of this
            strategy. Closely coupled with the issue of low incomes is the acute problem
            of housing affordability. Indeed, the house price-wage ratio in the sub-
            region is substantially higher than the regional and national averages. This
            problem is generated not only by poor average wages but a buoyant housing
            market driven in large part by in-migrants to the area. The effects of this
            discrepancy include:

                       an exacerbation of deprivation and economic exclusion for key groups
                        and communities in the sub-region;

                       creating a greater degree of inequality in the sub-region;

                       generating shortages in the supply of labour and specific skills
                        (including key workers and those in elementary service jobs);



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                       pushing young people out of the area to locations where wages are
                        higher or where housing is more affordable; and

                       undermining the longer term competitiveness of the sub-regional
                        economy.

            INFRASTRUCTURE

2.16        Increasing the role and take-up of Information Communications
            Technology (ICT) in small and medium sized businesses is a key priority
            for increasing productivity in the sub-region. Despite the commercial
            advantages of simple ICT solutions, a large proportion of businesses in EHOD
            have not taken up these benefits. Indeed, it is estimated that 70% of
            organisations in the Heart of Devon do not use email or internet on a regular
            basis (56% in Exeter). Moreover, only 20% of micro-businesses (0-4
            employees) use ICT as an integral part of their operations.

2.17        ICT also has the potential to play a major role in increasing access to
            quality learning opportunities in the sub-region.

2.18        There is a high demand in the sub-region for a range of suitable and high
            quality employment sites and premises. The nature of demand reflects the
            diverse economic role of the sub-region. This includes demand for:

                       strategic sites for inward investment and strategic expansion,
                        particularly within Exeter, the Principal Urban Area, and Area Centres;

                       local employment sites to meet local and sub-regional demand from
                        existing Small & Medium Enterprises (SMEs) and some larger
                        employers; and

                       facilities for stimulating business start-ups, expansions and innovative
                        enterprises (including managed workspace).

2.19        Whilst the sub-region has a range of allocated sites and development
            proposals, many of these are constrained by unresolved infrastructure issues
            and/or by problems of market viability6. Supporting the provision of

6
  Section 3 of the main report provided a review of demand and supply trends (including the
identification of key sites in the sub-region).
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            appropriate land and premises and overcoming critical development
            constraints is fundamental to the future prosperity of the sub-region.

2.20        This will be critical in:

                       creating the right conditions for sustainable economic growth and
                        enhanced sub-regional and regional competitiveness;

                       providing opportunities to secure inward investment, particularly in
                        knowledge based industries;

                       addressing local economic need and stimulating local regeneration;

                       facilitating enterprising activity; and

                       influencing the sub-region’s settlement pattern, particularly in terms of
                        local balance between employment demand and labour supply
                        (encouraging more sustainable settlements).

2.21        A range of strategic and local transport infrastructure initiatives must be
            addressed to support the sub-region’s economic and social priorities. In
            strategic terms, the most critical priorities are to:

                       increase the expansion of air services to and from Exeter International
                        Airport including a connection to an international hub (supported by
                        implementation of on-site development plan);

                       reduce the peripherality of EHOD and South West Peninsula by
                        ensuring the upgrading of the A30 / A303 between Illminster and
                        Honiton;

                       improve frequency and reliability of Exeter-Paddington and Exeter-
                        Waterloo rail services;

                       ensure strategic developments planned along the A30 to the east of
                        Exeter are supported by co-ordinated transport investment and public
                        transport facilities (including surface access to Exeter International
                        Airport);


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                       upgrade North-South routes including the A358;

                       promote significant investment in integrated transport initiatives both
                        within Exeter and in developing links between the City and the rest of
                        Devon and Cornwall.

2.22        Key local transport priorities include the need to:

                       maximise the opportunity presented         by    the   existing   railway
                        infrastructure (lines and stations);

                       rationalise the M5 Junction 29 (A30) with new junction at A370/A30
                        and new highway link between junctions 29 and 30 to avoid local traffic
                        using M5;

                       improve accessibility in rural and coastal areas to employment/service
                        centres and to public transport hubs;

                       improve accessibility to key market and coastal towns to support
                        sustainable growth in local employment opportunities and to facilitate
                        the diversification of the tourism sector;

                       ensure traffic congestion does not become an inhibiting factor to
                        business performance or investment in the sub-region by introducing
                        mitigation measures;

                       develop additional opportunities for new bus Park & Ride and other
                        inter-modal facilities.

            SWOT ANALYSIS

2.23        Table 2.1 summarises the key opportunities and challenges facing the sub-
            region.




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                                  Table 2.1 - EHOD Economy SWOT Analysis

                                        Strengths                              Weaknesses


             Enviable quality of life and environment          High house prices – low wages / shortage of
                                                               affordable housing
             Relatively diverse economy
                                                               Under-developed knowledge based
             Research        and      knowledge       based    employment structure
             infrastructure (Universities, Met Office, small
             firms)                                            Shortage of readily available land and
                                                               premises for high quality and prestige
             Growing capacity for knowledge transfer and       occupiers.
             innovation (e.g. Innovation Centre Phase 1
             and Phase 2)                                      Shortfall of incubator and expansion facilities
                                                               for high growth SMEs
             Strong service / office sector in Exeter
             (business & professional services)                Shortage of appropriate sites and premises
                                                               for indigenous industry and clear evidence of
             Competitive SME sector in outlying towns          market failure
             Excellence in vocational, HE academic and         Concentrations of urban, rural and coastal
             training facilities                               deprivation including poor level of basic skills
             Largely well qualified workforce.                 in places.

             Exeter International Airport – access from        Variable performance of school pupils and
             and gateway to Far South West and growing         low staying on rates for 16+
             gateway to international destinations.            Low take-up of basic and advanced ICT
             Culture of co-operation                           solutions

             Geographical variety and appeal              to   Low level of graduate retention and loss of
             businesses, residents and visitors                young qualified people to other centres of
                                                               employment

                                                               East-West      accessibility    reduced      by
                                                               constraints of A30-A303

                                                               Perception of congestion in Exeter

                                                               Local bottlenecks around rural towns




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                           Opportunities                                      Threats


   Co-operation and strategy integration:                 Fragmentation without co-operation (including
                                                          training and business support)
         development and planning
                                                          Increasing congestion particularly M5/A30
         economic development & spatial planning
                                                          interchange and Airport surface access –
         sub-regional network of business support        negative impact on quality of life and
                                                          investment perceptions
         planning & delivery of vocational training

         employment and sector targeting                 Increasingly unsustainable settlements and
                                                          local congestion
         graduate retention and skills sourcing
                                                          Piecemeal planning and delivery of business
         rural enterprise                                support and training services
         ICT
                                                          Loss of established businesses and poor
         Public sector engagement with                   survival rates without integrated workspace
          businesses                                      strategy
   Potential for strong sub-regional brand                Shortage of available premium development
   Complementary service role of Exeter with              may deter knowledge based inward investors
   rural enterprise and local industrial clusters in      Increasing loss of young people to higher
   the sub-region’s towns.                                wage locations
   Key development opportunities (e.g. Science            Agricultural and rural decline
   Park, Sky Park, key sites in major towns
   throughout sub-region)                                 Restructuring of tourism markets

   Universities and synergy with knowledge                Accessibility threatened without E-W and N-S
   based employers – catalyst for growth,                 investment (road and rail) - increased
   diversity and increased competitiveness.               perception of peripherality
   Plans for Innovation Centre Phase 2 and
                                                          Labour and skill shortages
   potential for Science / Technology Park linked
   to University of Exeter.                               Lack of engagement with small businesses

   Emerging high value / knowledge based sector
   activities and emerging markets (e.g. Life
   Sciences, ICT, short-break tourism)

   Under-used capacity of suburban railway and
   station infrastructure.

   Public and private service sectors relocating
   from South East.

   Development of training and research centres
   of excellence.



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3.          VISION AND STRATEGIC OBJECTIVES



3.1         The Vision of this strategy is to:

            create a sustainable economic base which is founded on the sub-region’s
            diversity and its unrivalled high quality of life. The sub-region will provide a
            highly significant contribution to the growing economic prosperity of the South
            West. This will be facilitated by an integrated and cohesive partnership
            approach which maximises the economic potential and benefits arising from
            the inter-dependency between Exeter as the principal commercial and
            regional centre west of Bristol and the urban, rural and coastal areas of the
            sub-region.

3.2         The strategic economic development framework set out below establishes the
            priorities, which underpin the Vision for the sub-region. These priorities relate
            directly to the regional economic priorities established by SWRDA in the
            regional economic strategy. The priorities are grouped under SWRDA’s three
            regional strategic objectives:

            (i)         To raise business productivity;

            (ii)        To increase economic inclusion; and

            (iii)       To improve regional communications and partnership.

3.3         Delivering the Vision requires a long-term commitment from all partners. The
            priorities set out below, provide a framework for co-ordinated partnership
            action for the next 4 years through to 2008, and falls within the regional
            economic strategy timescale (2004-2012).




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                                Strategic Economic Development Framework

    Strategic Objectives                    Priorities 2004-2008


    1. To raise business                       To secure EHOD as a regional leader for knowledge based service and
    productivity                                research activities.


                                               To proactively promote investment in key competitive economic sectors
                                                and provide knowledge-based jobs for the sub-region’s increasing
                                                population.

                                                        o   ICT;
                                                        o   Professional & business services;
                                                        o   Biotech, medical & healthcare research;
                                                        o   Environmental technology;
                                                        o   Small scale advanced engineering;
                                                        o   Tourism (e.g. short break, inbound and business)
                                                        o   Knowledge based public sector activities;
                                                        o   Arts, culture, heritage and media industries;
                                                        o   Food and drink.

                                               To further develop Exeter’s role as the main commercial and regional
                                                centre west of Bristol.


                                               To actively promote inward investment and re-investment in key
                                                knowledge based activities.


                                               To equip the labour force with the appropriate skills to meet the existing
                                                and future requirements of employers through a joint workforce
                                                development strategy and delivery framework, which is well integrated
                                                with the sector, development and business support initiatives.


                                               To maximise the role of Exeter and Plymouth Universities as the regional
                                                catalyst for knowledge and technology transfer in supporting the
                                                development of target sectors. In addition, define the institutions’ role in
                                                delivering research based business support.


                                               To identify and realise new employment land and premises opportunities
                                                to meet strategic and local business needs.


                                               To encourage increased employer investment in training to raise
                                                productivity.




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    Strategic Objectives                    Priorities 2004-2008


                                               To facilitate a focussed skills development programme in knowledge
                                                                 7
                                                based industries and to address skill shortages in key sectors (e.g.
                                                tourism, engineering, construction).


                                               To build on existing partnership models which support the establishment
                                                and growth of enterprises which produce environmental products or use
                                                the environment as a key economic resource (e.g. coppice woodlands,
                                                biomass systems).


    2. To increase                             To ensure a co-ordinated approach is taken to increasing average income
    economic inclusion                          levels and reducing wage disparities within the sub-region.


                                               To encourage partners to adopt common planning policies and to use
                                                planning mechanisms to increase the supply of affordable housing in the
                                                sub-region for those on low incomes and key workers.


                                               To facilitate a network of more sustainable settlements throughout the
                                                sub-region.


                                               To enable sustainable enterprise to flourish.


                                               To maximise access to a wide variety of skills training opportunities which
                                                can improve prospects for higher incomes. Priority should be given to
                                                those excluded from employment, those living in the sub-region’s most
                                                deprived communities and those living in rural locations.


                                               To encourage the provision of a balanced and diverse portfolio of jobs to
                                                meet the varied need of workers in the sub-region.


                                               To raise aspirations of young people in the sub-region, particularly those
                                                resident in the most disadvantaged rural, coastal and urban communities.


    3. To improve regional                     To ensure the EHOD sub-region is successful as the South West’s most
    communications and                          integrated and cohesive location for co-operation and partnership. In
                                                doing so, become the regional benchmark for best practice in joint
    partnership
                                                working including:

                                                -   development and planning;

                                                -   economic development, inward investment & spatial planning;

7
  Organisation for Economic Co-operation and Development (OECD) definition of knowledge-based
industries includes telecommunications, computer and information services, business services, high-
technology industries and pharmaceuticals.
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    Strategic Objectives                    Priorities 2004-2008


                                                -   sub-regional network of business support;

                                                -   planning & delivery of vocational training;

                                                -   employment and sector targeting;

                                                -   rural enterprise;

                                                -   tourism promotion and development;

                                                -   public sector engagement with local and regional businesses.

                                                   To significantly increase the use of ICT in the core business activities
                                                    of SMEs in all sectors.


                                                   To maximise the role of ICT as a channel for increasing access to a
                                                    wide range of learning opportunities.


                                                   To improve the quality and reliability of strategic air, road and rail
                                                    access to and from the sub-region.


                                                   To improve the public transport accessibility of rural and coastal
                                                    areas to transport hubs and centres of employment and services.


                                                   To be proactive in planning and implementing traffic congestion
                                                    mitigation measures in the Principal Urban Area of Exeter.




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4.          IMPLEMENTATION AND NEXT STEPS



4.1         The strategic delivery framework and key actions required to contribute to
            achieving the vision and strategic objectives is set out below.

4.2         It is important to stress that the action framework relates to the period 2004-
            2008. In most instances, taking the steps outlined in the action framework will
            require an integrated and partnership approach. The action framework builds
            on a range of key initiatives, some of which are already defined by key
            partners in the sub-region.

            PARTNERSHIP FRAMEWORK

4.3         The delivery of the economic development framework is dependent on the
            ability of local, sub-regional and regional partners to agree collective priorities
            and to commit to the long term implementation of these priorities. Clearly, a
            strong culture of co-operation and partnership is already established in the
            sub-region and this provides the foundations for a greater degree of joint
            working.

4.4         It is essential that the partnership focuses on priorities which warrant
            collective action either in avoiding duplication or where planning and/or
            delivery of initiatives at the sub-regional level adds significant value.

4.5         In taking forward the economic development strategy, it will be important to
            build in a regular review of progress and to ensure that strategic objectives
            and associated actions continue to be justified. Furthermore, implementation
            of the actions will involve a more complex and involved process of partnership
            working, which will include commitment of human and financial resources.

4.6         Central to the refinement of the economic development strategy will be the
            engagement of the Local Strategic Partnerships. Appropriate mechanisms
            may need to be put in place to ensure the LSPs are fully engaged (e.g.
            through twice yearly meetings). Furthermore, it may be appropriate for the

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EHOD Economic Development Strategy Summary


            EHOD Partnership to consider wider engagement and consultation with other
            organisations not currently represented.

4.7         Table 4.1 sets out the action framework for the period 2004-2008. The actions
            have been grouped according to strategic themes consistent with the RDA’s
            Regional Economic Strategy and Corporate Plan.




Summary Strategy – updated 19 August 2004   4-2
EHOD Economic Development Strategy Summary

Table 4.1 – Economic Development Action Framework 2004-2008

STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                        KEY PARTNERS               OUTCOMES
& PRIORITIES                                                                                                           (♦ - lead partners)
1. Raise Business
Productivity
(a) Sector Development                      Promote image of EHOD for investment and support and encourage             SWRDA (♦)                  Create 1,900
                                            the development of key sectors                                             Local Authorities (♦)      additional jobs in
                                                 ICT and Culture and media industries                                 DTI                        knowledge-based
                                                 professional & business services;                                    University of Exeter (♦)   industries.
                                                 biotech, medical & healthcare research and development               FE Colleges
                                                 environmental technologies                                           Major employers in key
                                                 small scale advanced engineering;                                    sectors
                                                 inbound, short break and business tourism
                                                 food and drink

                                            Produce and implement sector development project plans including:
                                                purpose and targets
                                                key partners (who does what and when)
                                                identification of required catalysts to attract and develop
                                                  businesses
                                                ensure provision of strategic sites, incubation, expansion and
                                                  move-on accommodation
                                                business support and training required and how it will be
                                                  delivered
                                                identify how incubator schemes or other specialised workspace
                                                  can be used to create and build on opportunities for key sectors
                                                  / clusters.

                                            Agree specification, location and programme for Science Park –                                        By 2008, obtain
                                            establish working group to take forward.                                                              planning permission
                                                                                                                                                  and agree finance plan
                                            Ensure planning policies in Local Development Frameworks reflect                                      for Science Park.
                                            vision and goals of economic development strategy, particularly
                                            allocation of appropriate sites and policies, which support key sectors.

Summary Strategy – updated 19 August 2004                  4-1
EHOD Economic Development Strategy Summary

STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                             KEY PARTNERS            OUTCOMES
& PRIORITIES                                                                                                                (♦ - lead partners)
1. Raise Business
Productivity
(b) Deliver supply of                       Review quality and suitability of existing employment land                      SWRDA (♦)               At least 1 prestige high
appropriate sites and                       allocation and proposals in the light of the economic development               Local Authorities (♦)   quality site to serve
premises for business                       strategy.                                                                       Regional Assembly       Exeter PUA (fully
                                             consider need for public sector intervention if demonstrable market           Private Sector          serviced – access and
needs.                                                                                                                      University of Exeter    utilities), ready for
                                                 failure
                                             define joint site development and phasing framework to meet range             Enterprise Agencies     development by 2008.
                                                 of business and industrial activities for the period up to at least 2008   Business Link (♦)
                                                 (including priority sectors, SMES and local services)                      Developers & Property   Bring to market at
                                             prioritise which additional land should be made available to help             Agents (♦)              least 4 employment
                                                 serve Exeter PUA, Newton Abbot, Tiverton, Cullompton, Crediton,                                    sites to serve sub-
                                                 Teignmouth/Dawlish, Exmouth, and Seaton/Sidmouth in the period                                     region’s market and
                                                 up to 2012                                                                                         coastal towns.
                                             establish monitoring framework to measure take-up, location and
                                                 type of development / occupier, location and change of use for                                     Development and
                                                 alternative purposes                                                                               occupation of
                                             inform SWRDA of priorities and need (supported by initial project                                     Innovation Centre
                                                 appraisal).                                                                                        Phase II
                                             LAs to package together any funding bid
                                                                                                                                                    Planning permission
                                            Establish effective co-ordination of sub-regional innovation and                                        and development,
                                            business support to ensure an integrated approach is adopted by key                                     finance and operation
                                            players in developing and promoting a network of incubator, expansion                                   package agreed for at
                                            and science park facilities.                                                                            least two 3,500 sqm
                                                                                                                                                    locations. of managed
                                            Encourage agricultural diversification and re-use of buildings for                                      workspace/ incubator
                                            rural enterprise: assess and identify opportunities, suitable occupier                                  units in the sub-region
                                            types and the economic and planning implications. Use assessment to                                     by 2008.
                                            encourage a positive policy response in LDFs.




Summary Strategy – updated 19 August 2004                   4-2
EHOD Economic Development Strategy Summary

STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                            KEY PARTNERS             OUTCOMES
& PRIORITIES                                                                                                               (♦ - lead partners)
1. Raise Business
Productivity
(c) Support Business Growth                 Work with partners to secure adequate and consistent funding for               SWRDA (♦)                Increase annual
                                            the creation of an integrated business support, advice and training            Local Authorities (♦)    average business
                                            framework across the sub-region                                                Business Link (♦)        start-up and survival
                                                                                                                           Enterprise Agencies(♦)   rates by 15% by 2008.
                                            Produce and implement project plan which also defines a hub and spoke          NFU (South West)
                                            network of incubation/workspace facilities and support which is also           Countryside Agency &
                                            interlinked with the Innovation Centre and Science Park                        Environment Agency
                                                                                                                           FBAS
                                            Establish sub-regional ICT working group to increase awareness of              Learning & Skills        Target: 70% of all
                                            economic benefits of utilising ICT in core business activities (including e-   Council (♦)              businesses in EHOD
                                            working and e-learning).                                                       Local FE Colleges        to make regular use of
                                                                                                                           Broadband providers      email/internet by 2008.
                                            Develop and implement a "Rural Business Development and                        and ICT companies (♦)
                                            Support Programme" under the auspices of the Rural Renaissance                 Devon Rural Network
                                            Initiative of the South West Regional Development Agency.
                                            The Bid will aim to improve rural business support and development
                                            across the 3 Rural Districts of East Devon, Mid Devon and
                                            Teignbridge.The bid will be supported by Exeter City Council and will
                                            address the following aims:
                                             support for Rural Enterprise
                                             promotion of Innovation and Economic Diversity
                                             development of the skills of rural business's owners and employees
                                             identifying training needs and sources of training and learning
                                             development of diversification opportunities
                                             realisation of the value of the environment as a rural economic asset
                                             productivity and sharing/co-operation issues as a business
                                                 development
                                             opportunity for rural business.




Summary Strategy – updated 19 August 2004                   4-3
EHOD Economic Development Strategy Summary
STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                        KEY PARTNERS                 OUTCOMES
& PRIORITIES                                                                                                           (♦ - lead partners)
(d) Develop a skilled and                   Produce joint workforce development plan - identifying needs, gaps         SWRDA(♦)                     Specific targets and
adaptable workforce                         and priorities for training, skills development and promoting learning.    Learning       &    Skills   outcomes to be
                                            Prioritise subsequent actions. Produce project plans: -                    Council (♦)                  produced for each
                                                                                                                       Learning Partnerships        project aimed at
                                               together with those engaged in promoting social inclusion to address   Local FE Colleges            raising skills levels.
                                                skills and training development within disadvantaged communities       Local Schools
                                                e.g., by supporting actions identified in the social housing and       Devon County Council
                                                inclusion partnership strategy for Exeter                              (♦)
                                               implement actions to improve the competitiveness of agricultural       Devon Rural Network
                                                enterprise in the sub-region and
                                               encourage experienced and skilled retirees to provide mentoring
                                                support for workforce development or to return to the workplace

                                            Formalise the working relationships between EHODEP                                                      Target: 2 COVEs
                                            and the EHOD Learning Forum. Work together to identify                                                  proposals to be
                                            opportunities / need for centres of excellence and Centres of                                           committed for the
                                            Vocational Excellence (COVEs) e.g. retail, tourism &                                                    EHOD sub-region
                                            catering, engineering, health & care, financial & business                                              by 2008.
                                            management, ICT and continue support for the Exeter
                                            Construction Centre, Sowton, Exeter.
(e) Ensure EHOD is a                        Develop sub-regional innovations and business support strategy             University of Exeter (♦)     Specific PR
leading sub-region in the                   based on an integrated network of incubator, expansion and                 Local businesses.            targets/outcomes to be
South West for innovation                   science park facilities. Define lead role of University of Exeter in       SWRDA (♦)                    agreed as part of
and knowledge-based                         technology and knowledge transfer and R&D – particularly in respect        Local authorities (♦)        strategy and project
businesses.                                 of target sectors.                                                         Met Office and/or other      plan
                                            Establish a Knowledge Working Group, to facilitate the development         regional champions
                                            of new knowledge transfer initiatives and opportunities for innovative
                                            enterprise including:
                                             identifying Knowledge Champions to raise profile of the sub-region
                                             working with the University of Exeter to expand programme for
                                                 graduate employment and joint working with local SMEs (e.g. STEP
                                                 and KTP)

Summary Strategy – updated 19 August 2004                  4-4
EHOD Economic Development Strategy Summary
STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                        KEY PARTNERS            OUTCOMES
& PRIORITIES                                                                                                           (♦ - lead partners)
                                               work with the Centre for Agriculture and Rural Enterprise (CARE) to
                                                maximise knowledge transfer and dissemination of best practice in
                                                rural areas.

2. Increase Economic
Inclusion
(a) Increase economic                       Replicate the Blackdown Hills Rural Partnership approach. Produce          Countryside Agency      Project specific targets
participation to stimulate                  and implement project plan which:                                          Local Authorities /     to be identified by April
employment and business                      promotes the approach to cover other rural parts of the sub-region       LSPs(♦)                 2005 in plans for a
start-ups in areas of greatest                  (Local Product Strategies)                                             Forestry Commission     percentage increase in
need.                                        focuses on support for sectors and activities that produce               Business Link           business start-ups in
                                                environmental products or use the environment as a key economic        Enterprise Agencies     rural areas by 2008.
                                                resource.
                                                                                                                       (♦)
(b) Support the regeneration                Facilitate support to increase the provision of affordable housing         Local Authorities (♦)   LDF/Structure Plan
of communities in greatest                  by:                                                                        SWRDA                   Targets
need.                                           working closely with local planning authorities to establish          FE Colleges & Schools
                                                mechanisms for securing developer contributions to increase supply     LSPs
                                                of affordable housing                                                  Voluntary Sector (♦)
                                             lobbying for the funding of key transport improvements (e.g on           Major Employers
                                                transfer of employment sites to housing.
                                            Facilitate support for actions aimed at raising household incomes                                  Increase the number
                                            by:                                                                                                of households earning
                                             working closely with partners to ensure comprehensive take-up of                                 more than £15,000 per
                                                benefits                                                                                       annum.
                                             securing access to training for remote and disadvantaged
                                                communities (ICT, transport, childcare provision, outreach services
                                                etc).
                                             the use of special initiatives to raise the career and income
                                                aspirations of young people, particularly in areas of greatest need.
3. Improve sub-regional
communications &
partnerships
(a) Promote EHOD sub-                       Promote high profile landmark developments to increase ‘visibility’ of     SWRDA (♦)               Attract 1 major inward
region to attract new                       sub-region (e.g. redevelopment of Princesshay, Skypark, Met Office,        DCC                     investment relocation
Summary Strategy – updated 19 August 2004                  4-5
EHOD Economic Development Strategy Summary
STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                        KEY PARTNERS             OUTCOMES
& PRIORITIES                                                                                                           (♦ - lead partners)
businesses, employees and                   and the World Heritage Coast).                                             Local Authorities (♦)    to EHOD by 2008
investment.                                                                                                            South West Tourism (♦)
                                                                                                                       Large employers (local
                                                                                                                       and inward investors)
(a) Promote EHOD sub-                       Demonstrate importance of the natural environment: produce and
region to attract new                       implement a project plan that demonstrates to external organisations the
businesses, employees and                   importance of the sub-region’s natural environment both as an existing
investment (continued)                      economic resource, a potential asset for future growth and as a key
                                            contributor to quality of life (for businesses, employers, residents and
                                            visitors alike).

 (b) Improve the strategic                  On-going lobbying for:                                                     Highways Agency(♦)       Effective lobbying
communications                               commitment to A303 / A30 improvements (Honiton to Ilminster) and         Network Rail(♦)          campaign undertaken.
infrastructure to support                      north-south improvement                                                 Train Operating
business needs.                              improvement to frequency and reliability of Exeter-Paddington and        Companies(♦)
                                               Exeter-Waterloo services                                                Local Authorities(♦)
                                             commitment for maximising use of existing rail network (and              SWRDA(♦)
                                               stations) in the Exeter Travel to Work area                             Exeter International
                                             expansion of international destinations and scheduled flights from       Airport(♦)
                                               Exeter International Airport
                                             improvements to the A376 to make Exmouth more accessible as a
                                               business and visitor location
                                             improvements to the rural bus network to increase access to
                                               employment, training, local services and transport hubs

                                            Produce integrated land-use and infrastructure delivery plan for
                                            development proposals east of Junctions 29 and 30 of the M5 including
                                            surface access to the Airport (see above).

(c) Conserve & enhance the                  Support environmental oriented enterprises: Produce and implement          South West Tourism (♦)   Increase the average
sub-region’s environmental                  project plans that support the establishment and growth of enterprises     Countryside Agency       annual occupancy
and cultural capital to                     producing environmental products or using the environment as a key         Environment Agency       rates of tourist
provide major benefits to                   economic resource (e.g. biomass systems, coppice woodlands, arts and       Hotel owners and local   accommodation by
tourism and the wider                       crafts                                                                     Chambers of              10% in the period up
economy.                                    Promote tourism offer: that maximises economic benefit and supports        Commerce.                to 2008
                                            the promotion of the area for investment. Produce and implement            SWRDA
Summary Strategy – updated 19 August 2004                  4-6
EHOD Economic Development Strategy Summary
STRATEGIC OBJECTIVES                        ACTIONS (2004-2008)                                                        KEY PARTNERS               OUTCOMES
& PRIORITIES                                                                                                           (♦ - lead partners)
                                            project plans which assist in the promotion of the sub-region’s tourism    NFU (South West)
                                            offer and products and focuses on increasing the variety and quality of    Local Authorities / LSPs
                                            accommodation and attractions, range of activities and other initiatives   (♦)
                                            that will extend tourism season e.g.:
(c) Conserve & enhance the                   market site opportunities for new high quality hotel developments
sub-region’s environmental                      (including Exeter)
and cultural capital to                      promote the ‘icon’ status of the East Devon World Heritage Coastal
provide major benefits to                       Site and support the creation of new World Heritage interpretation
tourism and the wider                           centres at Exmouth and Seaton.
economy (continued)                          support initiatives to increase numbers of ‘off season’ and ‘shoulder
                                                season’ visitors
                                             food & drink, arts & crafts
                                             agriculture & forestry
                                             business tourism, conference capacity
                                             improve signage to key tourism destinations along major routes into
                                                the sub-region.

(d) Improve the way the                     Establish a delivery framework: EHOD Economic Partnership to               Local Authorities / LSPs
region and sub-region works.                establish with partners a delivery framework to implement the Strategy     (♦)
                                            and deliver identified economic development projects throughout the        SWRDA (♦)
                                            sub-region                                                                 Regional Assembly (♦)
                                                                                                                       GOSW (♦)
                                            Measure economic impact: Strengthen the integrity and profile of the       Private Sector
                                            sub-region through on-going research to highlight and measure its
                                            contribution to the regional economy, and to demonstrate the linkages
                                            between Exeter and the rest of the sub-region.




Summary Strategy – updated 19 August 2004                  4-7

								
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