Transcript The Hertfordshire Economy

The Hertfordshire Economy:
John Gourd
Chair – Hertfordshire LEP
January 2012
Hertfordshire
- the perception:
- the reality:
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Losing our competitive
edge
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Increased commuting to
London
Polarised economy –
wealth/deprivation
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‘Powerhouse of UK
economy’
– GVA £25bn p/a (5th
largest outside London)
– 1m people
– 47,000 businesses
High quality of life
Highly skilled &
entrepreneurial people
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Business perceptions:
– ‘anti-growth’ - 60%
green-belt
– Congested, creaking
infrastructure
– Expensive - premises,
salaries, housing etc.
The recession has hit Herts businesses…
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915 fewer enterprises since 2008
…leading to fewer people in work…
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10,000 people more claiming out of work benefits
1 in 5 young people out of work (and rising)
…and impacting on living standards.
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6% fall in real terms incomes
There are long term issues…
• Economy actually stagnating from 2001
– Loss of small and large firms
• Polarised performance across districts
– Job creation
– Unemployment
• Lack of key employment sites
• Falling behind our competitors nationally and
internationally
…and long term challenges…
• By 2031 for every three people of working age
there will be two ‘dependants’
• £2.6bn infrastructure deficit
• Not enough housing to satisfy projected
demand
• Increased pressure on land and other
environmental resources - utilities
…however, Herts has all the key elements
for growth
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Key sectors
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Life sciences
Film & media
Advanced manufacturing/aerospace
Business services (financial & ICT)
Skills base
– Higher than UK average for level 2-4 skills
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Strategic location
– M25, M1, A1, 3 Airports
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Quality of life
The newcomer - Hertfordshire LEP
LEP - Initial Priorities
• 2011
–
‘set up mode’ – governance, executive, premises,
website etc.
– Supporting key infrastructure bids
• Croxley Rail Link
• Superfast Broadband
– Team Hertfordshire – inward investment support
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2012
–
an action plan for economic growth
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Allocated £10m to kick-start growth
Conclusions:
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Weathering recession but economy still ‘sliding’ over
long term
We have the component parts (sectors, skills, location)
to grow the economy
BUT
We need to convince business & government that Herts
is a sound investment
We need an ambitious, prioritised plan to grow our
economy
– What, where and when (using new tools/levers)
– Buy-in from private & public sector
We need to pick up the pace…
The Hertfordshire Economy:
John Gourd
Chair – Hertfordshire LEP
January 2012