Transcript Robert Hetherington

Robert Hetherington
Economic Development Manager
Oxford City Council
A Strategic Approach to
Economic Growth in the City
Clear strategic focus for growth:
•
•
•
•
Oxford Economic Growth Strategy
City Deal
Strategic Economic Plan
European Investment Strategy
Focused on enterprise, skills, connectivity and place
shaping.
The Oxford Economy - a well known
narrative….
Oxford:
• is a national economic asset
• is the engine of the Oxfordshire economy provides about 1/3 of the county’s jobs; half of
those who work in city live elsewhere
• offers a very diverse, knowledge based economy
which is riding the worst of recession - but no room
for complacency
• is one of the county’s growth areas alongside
Bicester and Science Vale
Oxford’s future economic prosperity
• must build from Oxford’s assets and addressing
known barriers to growth
City Deal
Summary of City Deal
Approach Deal approach
Necessary Infrastructure
“creating an accessible workforce”
Housing
3
Context of Oxford Area
•
•
•
•
The focus on innovation is
dependent on the supporting
infrastructure being in place,
through skills, transport and
housing
Our central Location, with
transport links to London,
Heathrow, and the Midlands, as
well as the South Coast and West
Country. However, we are aware
that these links need to be better to
bring in further business and
sustain it.
The Innovation Arc runs from
Science Vale in the south, through
Oxford, to the development area of
Bicester in the north.
It is serviced by rail, and links the
motorway system as well as the
developing London Oxford Airport
6
City Deal Proposition
The City Deal programme

Oxford and Oxfordshire has the greatest
potential of any location in the UK to deliver
world leading technology and business
innovation.

We intend to establish in partnership with
government, universities and private sector
business a “Knowledge Economy Spine”
Oxfordshire’s GVA per capita has tracked the
UK average (1980‐2006) despite our latent
potential, and we believe that we can
accelerate that growth



Prioritised our key innovation projects, as
our City Deal Programme, with key
infrastructure needed to deliver them. Our
wider ambition will be delivered through the
Local Growth Deal
Without this investment the potential of the
city region to drive significant and
sustainable growth of the UK economy will
be lost to global rivals.
•
•
•
•
•
•
•
•
•
•
£2,179.4m investment programme
£1,341.6m private sector investment
£641.8m public sector investment
Accelerated housing growth with up to
1,095 additional houses within the City.
Net ongoing Jobs
19,055
Average GVA per job £40,000
Gross GVA £845.6 m
Net Ask
£196.0m
Ratio £1 Ask: £2.54 GVA
Capex per job £103,096
Our Total programme for Growth
•
•
•
•
•
•
•
•
•
•
£4.23bn investment programme
£2.82bn private sector investment
£1.02bn public sector investment
Accelerated housing growth
Net ongoing Jobs
95,584
Average GVA per job £40,000
Gross GVA £3,752m
Net Ask
£389.7m
Ratio £1 Ask: £4.52 GVA
Capex per job £64,821
7
What will be Delivered
•
new innovation and incubation centres :
–
–
–
–
•
•
The Harwell Innovation Hub: focused on open innovation;
The UKAEA Culham Advanced Manufacturing Hub: focused on remote
handling technologies;
The Oxford BioEscalator: focused on the life sciences sector;
The Begbroke Innovation Accelerator: focused on advanced engineering
sectors.
Science Transit Scheme
Road Improvements
–
–
A40 /A44 link
Improved access to Harwell
Oxford Economic Growth Strategy
Oxford Economic Growth Strategy Oxford …
…is the UK’s most prosperous, resilient, diverse, globally competitive
knowledge-based economy
…is a world leader in research, development and innovation driven by
two universities, multi-national companies, and a wide range of small
companies
…seeks and welcomes global investors and businesses serving global
markets
…enables and supports growth of new start-up/spin-out ventures;
…is Oxfordshire’s primary retail centre and a strong international
tourist destination;
…ensures that young people gain the skills needed access to jobs in
the city through their enrolment in the City’s high performing schools;
…offers a readily available supply of affordable homes for sale, and for
rent
..is demonstrating, in practice, how best to promote economic growth
and establish Oxford as a truly sustainable City.
Key sector strengths
• Automotive industry
– Centre of motorsport valley, strong exporter,
4,871 jobs
• Publishing
– 100 businesses and 3,500 jobs
• Tourism
– 6th most visited city, 9.5m visitors and £770m
income
• Retail
– Employ 8,000 and support tourism offer
• Creative and cultural industries
– Underpinned by theatres, museums and
vibrant music scene
• Professional services
– Employ 10,200 and support local business
base
Barriers to growth
• 7.4% workforce hold no qualifications –
higher than Oxfordshire (6.6%) and South
East (6.9%);
• educational attainment at all ages in state
schools are below regional and national
averages;
• housing is the “most unaffordable” location
outside parts of London; this seriously
hinders recruitment; median price of
£290,000 higher than County or region;
median price to wages higher; private rents
are higher;
• severe congestion, particularly on the A34
and A40, weakens Oxford’s competitive
advantage;
• notwithstanding a strong commitment to
sustainable development, the supply of
employment land in or adjacent to the city is
limited.
Economic Growth Strategy Strategic priorities
1. Expand knowledge
6.
economy
2. Support growth of
7.
existing companies
3. Ensure an ample
8.
supply of employment
land
9.
4. Strengthen city centre
retail offer
10.
5. Increase value of
11.
Oxford’s tourism to the
region
Strengthen skills and
educational attainment
Increase the supply of
housing
Secure investment in
broadband
Address environmental
challenges from growth
Invest in transport
Create single delivery
team
Immediate Opportunities
• Superfast broadband
– Vouchers for business
– Free wifi in public places
European Structural Funds
investment Strategy
PROPOSED EU GROWTH
PROGRAMME 2014-2020 KEY
FEATURES
•
•
•
•
•
•
A new single “EU Growth Programme” to be financed
by ERDF and ESF with a contribution from EAFRD,
rationalised from 12 separate ones for 2007-13
LEPs to be the fundamental building blocks receiving a
7 year notional allocation – giving certainty in an
uncertain world.
Less than 5% „top slicing‟ for national programmes –
compared to over 50% in current programmes.
Significant shift away in decision-making powers from
Whitehall to local level - new responsibilities for LEPs
(including a broader partnership)
Funds to be more integrated, transparent and
streamlined under one programme (Managing
Authorities (ie DCLG / DWP / DEFRA) will “hide the
wiring” from LEPs and end beneficiaries as far as
possible to reduce administrative burdens)
LEPs to identify their preferred EU fund investment
strategy as part of their wider growth strategy, for
agreement by the national Growth Programme Board
(responsible for overall programme governance).
Purpose of Structural Funds
• European Structural and Investment Funds are
designed to improve economic growth and social
wellbeing.
• All Member States receive some form of
assistance.
• The Structural Funds (ERDF and ESF) cover a
wide range of activities, all designed to improve
economic competitiveness and employment.
Allocations Based on Economic
Performance and Population
National Picture
England
Wales
Scotland
Northern Ireland
EU STRUCTURAL FUNDS
BUDGET IN ENGLAND:
3 CATEGORIES OF AREAS
Less developed
Cornwall & the Isles of Scilly
Transition
Cumbria
Devon
East Yorkshire & N. Lincolnshire
Lancashire
South Yorkshire
Shropshire & Staffs
Merseyside
Lincolnshire
Tees Valley & Durham
More developed
Rest of country
Allocation £m
5,277
1,833
680
390
GDP (as % of
EU average)
Allocation
£m
73.2
457
89.5
88.1
85.8
70
65
123
84.9
84.5
83.9
80.2
79.8
78.5
205
137
217
156
81
277
Includes Oxfordshire
Local Allocations
Black Country
Buckinghamshire Thames Valley
Cheshire and Warrington
Coast to Capital
Cornwall and the Isles of Scilly
Coventry and Warwickshire
Cumbria
Derby, Derbyshire, Nottingham and Notts
Dorset
Enterprise M3
Gloucestershire
Greater Birmingham and Solihull
Greater Cambridge & Greater
Peterborough
Greater Lincolnshire
Greater Manchester
Heart of the South West
Hertfordshire
Humber
Lancashire
Leeds City Region
Leicester and Leicestershire
Liverpool City Region
177.4
13.9
142.2
67.3
592.9
136.0
91.4
249.7
47.3
45.7
38.3
255.8
75.5
133.5
415.6
118.3
69.5
102.4
266.3
391.2
126.3
221.9
London
New Anglia
North Eastern
Northamptonshire
Oxfordshire LEP
Sheffield City Region
Solent
South East
South East Midlands
Stoke-on-Trent and Staffordshire
Swindon and Wiltshire
Tees Valley
Thames Valley Berkshire
The Marches
West of England
Worcestershire
York and North Yorkshire
748.6
94.5
539.6
55.0
19.4
203.4
43.1
185.9
88.3
161.6
43.6
202.6
28.7
113.7
68.6
68.1
97.5
Minimum spending levels at national level required by the regulations
CORE THEMES
Less Developed Regions
Transition Regions
More Developed
Regions
At least 50% ERDF must be
spent on these 4 themes, of
which approx 12% on low
carbon (% tbc)
At least 60% ERDF must be
spent on these 4 themes, of
which approx 15% on low
carbon (% tbc)
At least 80% ERDF must be
spent on these 4 themes (of
which at least 20% on low
carbon)
Climate Change
Adaptation
Environmental Protection
Lower priority
Lower priority
Lower priority
Lower priority
Sustainable Transport
Lower priority
Lower priority
Innovation
SME Competitiveness
Low Carbon
ICT
Employment
Skills
Social Inclusion
(at least 20% value of
ESF)
Institutional Capacity
At least 60% ESF must be spent At least 70% ESF must be
At least 80% ESF must be
on up to 4 sub- priorities within spent on up to 4 sub-priorities
spent on up to 4 subthese themes
within these themes
priorities within these themes
Oxfordshire Allocation by
Theme(ERDF)
Themactic Objective /
Distribution
ERDF
£8,600,000
TO1 Innovation 45%
£3,870,000
TO1/TO3 Financial
instrument
TO3 SME
Competitiveness 35%
TO4 Low Carbon 20%
£3,010,000
£1,720,000
Investment areas
Allocation within Theme
Annual 7 years (mean)
£1,228,571
Collaborative networking
between institutions 50%
£1,430,000
£276,428
Commercialisation support
50%
£1,440,000
£276,428
Access to finance fund
TO1 £900,000
TO3 £300,000
Building growth capacity 50%
£1,400,000
£215,000
Fostering entrepreneurial
culture 50%
£1,400,000
£215,000
Building low carbon market
50%
£860,000
£122,857
Non domestic LC
technologies 50%
£860,000
£122,857
Oxfordshire Allocation by
Theme(ESF)
Themactic Objective /
Distribution
ESF
£8,600,000
Employment / Labour
mobility: Access to
employment 30%
£2,580,000
Social inclusion: active
inclusion (20%
mandated)
Education, skills &
lifelong learning (50%)
£1,720,000
Investment areas
Allocation within
Theme
£1,228,571
Annual 7 years
(mean)
Retraining older workers 25%
£645,000
£92,142
Literacy and numeracy for young people
25%
£645,000
£92,142
Gender in-balance in technology sectors
25%
£645,000
£92,142
Enhancing pathways for long term
unemployed 25%
£645,000
£92,142
Early intervention to avoid NEET inc work
with families 25%
£430,000
£61,428
Community Grants scheme 25%
£430,000
£61,428
CLLD 50
£860,000
£122,857
Collaborative projects for placements 20%
£860,000
£122,857
SME capacity for higher skills placements
20%
£860,000
£122,857
Apprenticeships and traineeships in
priority sectors 20%
£2,580,000
£368,571
Role of Local Enterprise
Partnerships in EUSIF
• The LEP has three key roles in this
work
– Lead the development of an European
Structural and Investment Funds
Strategy,
– Consult and engage all interested
parties, including rural interest.
– Develop a pipeline of compliant projects
which deliver the strategy from late 2014
onwards.
Oxfordshire Strategic Economic
Plan (Growth Deal)
A Strategy for Economic Growth
“By 2030 Oxfordshire will be recognised as
a vibrant, sustainable, inclusive, world
leading economy, driven by innovation,
enterprise and research excellence.”
Growth Deal Funding
- Competitive Pot
Source
£million
2015 /2016
Local Authority Transport Majors
819
Local Sustainable Transport Fund (Capital)
100
Integrated Transport Block
200
Further Education Capital
330
European Social Fund Match
170
New Homes Bonus
400
Total
2,019
Of which, capital
1,449
Oxfordshire Growth Deal
•
•
•
•
•
Headington Eastern Arc transport improvements
Oxford flood defence scheme
Oxford University Centre for Superconductivity
Cycle tracks in Science Vale
Oxford Centre for Technology (Oxford City
College Blackbird leys Campus)
• Abingdon College New building
• Didcot Rail Station Car Park
• Bicester London Road Level Crossing
• Package worth £108m to 2021
• £16m in 2015/16
Impacts on Headington
Bioescalotor
ORC: Old Road
Campus
JR: John Radcliffe
CH: Churchill
NOC: Nuffield
Orthopaedic
Centre
WF: Warneford
•
•
•
•
•
•
Translate science into business
Launch pad for sustainable new companies
Centre for industrial collaboration
Located on university / hospital site
Advice and support as well as facilities
Drug Discovery, MedTech, Diagnostics,
TeleHealth, Data Analyses ++
Strategy for the Eastern Arc
• Delivering a form of high quality “rapid transit”
public transport (which could be high quality
conventional bus, light rail or guided trolleybus),
serving park and ride sites and major
employment and housing areas in the Eastern
Arc;
• Working with employers to develop travel plans
and reduce the availability of car parking for staff;
• Improving the reliability of local bus services, and
improving cycling links, to encourage mode
switch away from car travel for shorter journeys;
• Investigating how bus interchange can be
improved
• Tackling congestion at key junctions on the ring
road.