Written evidence from East Devon and South
Somerset District Councils
SUMMARY OF
MAIN POINTS
— In implementing this initiative it is
critical that the private sector is able to identify and deliver
a leading role in every LEP with the relevant local authorities
providing both a supportive facilitating role. Too often economic
partnerships at the regional and county level have struggled to
demonstrate relevance with consequent under-engagement by the
business sector. It is important that every LEP can develop its
own practical, business-like agenda. — There is a concern
that the distinctive role of district councils is ignored in the
letter to authorities of 29 June 2010; the lack of reference to
economic development powers at the expense of the emphasis on
upper tier authorities brings with it the risk that the needs
of functional economic areas might be subverted to the political
ambitions of upper tier authorities and the "convenience"
of working to existing lines on maps. — The role of the
district council as both the local planning and housing authority
in non-unitary areas often brings with it a more informed qualitative
relationship with the private sector, a better understanding of
its needs and the ability to create the right environment for
business and growth. As a consequence, in appropriate cases, relevant
groupings of district councils might better ensure that the legitimate
policy aims of the Secretaries of State are secured. In particular
the powers and duties of district councils are well placed to
help ensure that a LEP properly constituted to reflect a functioning
economic area can both set out local economic priorities and establish
a clear vision for local economic renewal.
— As the proposals for LEPs are taken forward
the Committee should recommend that all upper tier authorities
demonstrate how their proposals relate to functional economic
areas and the needs of businesses.
— In framing LEP structures and boundaries,
the Government must recognise a key tension between size and effectiveness.
A successful LEP will properly reflect local housing and regeneration
priorities and programmes. We believe the private sector would
much more readily engage at this scale and that ownership of the
agenda would thereby reflect a true private and public sector
partnership. Bearing in mind the current issues affecting the
economy the imperative should be to provide a structure that allows
local communities to transform their economy with a reduced amount
of public sector funding support.
BRIEF INTRODUCTION
Both East Devon and South Somerset District
Councils have demonstrated service excellence with a number of
national awards and Beacon Status in a range of areas, in recent
years, and have been known for partnership working and community
engagement. They are committed to delivering service efficiencies
and have mature programmes of Systems Thinking and Lean. Outcomes
are evidenced in enhanced value for money and improved services
for residents.
Both authorities are large and stable and are
two Councils in terms of governance. They have common core services
for efficiency; both want to preserve front line services; both
want to reduce "administration" costs and both are committed
to retaining their "sovereignty".
Further details about both Councils can be found
at:
www.southsomerset.gov.uk
www.eastdevon.gov.uk
FACTUAL INFORMATION
East Devon
— Largest DC in Devon and Second Largest
in the South West.
— Total number of residents: 135,000.
— Total area: 814 square kilometres.
— Includes seven towns and 61 parishes.
— Political Control: Conservative.
South Somerset
— Largest District in the South West.
— Total number of residents: 162,000.
— Total area: 960 square kilometres.
— Includes 11 towns and 121 parishes.
— Political control: Liberal Democrat.
— The analysis of the business structure
of the South Somerset, East Devon (and West Dorset) areas suggested
a strong feedstock of companies suitable for inclusion in the
development of an Innovation and Incubation Centre.
— Collaborative partnership arrangements
to sustain rural community and enterprise development are already
in placed across the Blackdown Hills and East Devon Areas of Outstanding
Natural Beauty.
— The local education (FE) sector are also
enthusiastic supporters of the concept.
— The level of skills in environmental
technology (ET) businesses is high with approximately 80% of ET
companies employing graduates and approximately 50% employing
postgraduates.
— Tourism is an industry work £250
million per annum to East Devon and £165 million per annum
to South Somerset.
— The Somerset Economic Appraisal reinforces
the belief that these transport routes sustain two separately
functioning economic zones.
— Yeovil is seen as the centre of a transport
corridor connecting the South West with the South and South East
of the country.
— Yeovil zone is one that has more linkages
to Dorset and Devon than to the main geographical centre of Taunton
and Bridgwater.
— Resident Population—291,400.
— Working Age Population—160,700.
— Manufacturing and Construction jobs—22,300.
— Service Sector Jobs—84,100.
— Tourism Related Jobs—9,800.
— VAT Registered Businesses—11,740.
RECOMMENDATIONS TO
THE COMMITTEE
— Government must recognise that there
is a key tension between size and effectiveness.
— A successful LEP must sensitively reflect
local housing and regeneration priorities and programmes.
— District Councils have the potential
to deliver an important and unique role in providing the building
blocks for the transformation of local economies but risk being
sidelined in the current debate and its emphasis on upper tier
authorities.
— In our case, a local delivery LEP that
embraces the role of both the Exeter City sub region and the A303
economic corridor (and recognises the influence of Taunton) is
needed.
EXECUTIVE SUMMARY
— In implementing this initiative it is
critical that the private sector is able to identify and deliver
a leading role in every LEP with the relevant local authorities
providing both a supportive, facilitating role. Too often economic
partnerships at the regional and county level have struggled to
demonstrate relevance with consequent under-engagement by the
business sector. It is important that every LEP can develop its
own practical, business-like agenda.
— There is a concern that the distinctive
role of district councils is ignored in the letter to authorities
of 29 June 2010; the lack of reference to economic development
powers, at the expense of the emphasis on upper tier authorities,
brings with it the risk that the needs of functional economic
areas might be subverted to the political ambitions of upper tier
authorities and the "convenience" of working to existing
lines on maps.
— The role of the district council as both
the local planning and housing authority in non-unitary areas
often brings with it a more informed qualitative relationship
with the private sector, a better understanding of its needs and
the ability to create the right environment for business and growth.
It should also be noted that in two-tier areas, the upper tier
(County Councils) retain no spatial planning responsibilities
apart from those relating to minerals and waste plan-making powers—a
fact that has greater relevance with the abolition of the Regional
Spatial Strategy. As a consequence, in appropriate cases, relevant
groupings of district councils might better ensure that the legitimate
policy aims of the Secretaries of State are secured. In particular
the powers and duties of district councils are well placed to
help ensure that an LEP, properly constituted to reflect a functioning
economic area, can both set out local economic priorities and
establish a clear vision for local economic renewal.
— As the proposals for LEPs are taken forward
the Committee should recommend that all upper tier authorities
should clearly demonstrate how their proposals relate to evidence-based
functional economic areas and the needs of businesses.
— In framing LEP structures and boundaries,
the Government must recognise a key tension between size and effectiveness.
A successful LEP will properly reflect local housing and regeneration
priorities and programmes. We believe the private sector would
much more readily engage at this scale and that ownership of the
agenda would thereby reflect a true private and public sector
partnership. Bearing in mind the current issues affecting the
economy, the imperative should be to provide a structure that
allows local communities to transform their economy with a reduced
amount of public sector funding support.
1. INTRODUCTION
1.1 This submission is made jointly by East
Devon and South Somerset District Councils. Both Councils are
acknowledged in their respective areas as forward thinking authorities,
willing to take difficult decisions in partnership with others
to ensure that the needs of their communities are addressed and
quality of life is enhanced. Politically, the two Councils are
a strategic alliance of a Conservative council and a Liberal Democrat
council, one that pre-dated the 2010 General Election.
1.2 In pursuance of the shared services
agenda EDDC/SSDC share a Chief Executive and are working towards
the extension of that agenda through all service areas so as to
deliver both local and efficient services. They collectively serve
a resident population of 291,000 across two counties and a working
age population of 161,000. We believe that large districts can
make an important contribution to the enterprise agenda in the
wake of the demise of regional agencies. Large district councils
provide essential front line services including housing, planning,
economic and community development. They hold a unique place at
the centre of local communities. They are closer to their communities
and to the business drivers of their economic functional areas
in ways that are rarely possible within some geographically large
and multi area upper tier authorities.
1.3 As a result of our alliance and the
ability to act more strategically outside the limits and confines
of existing county boundaries, the economic linkage of our two
areas and the similar business needs have become far more apparent.
There is considerable untapped potential for a distinctive economic
functional area within the A303/Exeter-Waterloo corridor stretching
from Wincanton to Exeter, economically vibrant in its own right
but also supportive of a clear relationship with both Taunton
and Exeter and the M5 economic corridor.
1.4 Both the South West Regional Spatial
Strategy and the South West Regional Economic Strategy (2006)
identify functional economic zones in the South West. In Somerset
the two main functional zones are defined by the two east/west
lines of transport and communication. These are the M5 and the
A303 transport corridors and they are two clearly defined, separate
zones bisecting the county of Somerset.
1.5 The Somerset Economic Appraisal (Ekosgen
June 2010) re-enforces the finding that these transport routes
sustain two separately functioning economic zones. In the case
of the A303 zone, Yeovil is seen as the centre of a transport
corridor connecting the South West with the South and South East
of the country. The report states that the "Yeovil"
(A303) zone "is one that has more linkages to Dorset and
Devon than to the main geographical centre of Taunton and Bridgwater.
Whilst strong links can be found with Mendip to the north, there
is little structural or functional linkage with Somerset's County
town." If the logic of this argument is followed then it
would be useful to consider the wider A303/A30 corridor on its
route into Devon.
2. ECONOMIC DEVELOPMENT
WITHIN THE
EAST DEVON/SOUTH
SOMERSET AREA
Relevant key facts include the following:
— Resident Population—291,400.
— Working Age Population—160,700.
— Manufacturing and Construction Jobs—22,300.
— Service Sector Jobs—84,100.
— Tourism Related Jobs—9,800.
— VAT Registered Businesses—11,740.
2.1 For a considerable number of years,
both Councils (together also with Exeter City Council and West
Dorset District Council) have worked successfully with existing
and relocated businesses to foster the economic success of the
corridor and surrounding areas. This has proved possible through
the use of existing statutory powers to promote economic development
and also the important role as the local planning authority. East
Devon and South Somerset are eager to capitalise on the advantages
of the area: an outstanding environment; the Exeter-Waterloo/Exeter-Paddington
rail links and the A30/A303 and A358 to the M5. At the western
end of our area are Exeter Airport and the Exeter and East Devon
Growth Point (Cranbrook, Skypark, Multimodal Freight Facility
and the Exeter Science Park). At the eastern end the successful
Yeovil economy supports a range of internationally significant
businesses. In combination these offer all the advantages of a
commitment to the innovation and science agenda, major private
sector companies and outstanding transport connectivity. As a
combined economic entity, developing a distinctive economic offer,
there is coherent linkage and focus within the area bounded by
Exeter, Taunton and Salisbury.
2.2 The following economic sectors are of
major significance to the area:
The Manufacturing, Aerospace and
Advanced Engineering Sectors
2.2.1 The advanced
engineering sector is a major employer within the South West with
approximately 60,000 jobs and is the most significant in terms
of Research and Development spend. The West of England Aerospace
Forum estimates that 40,000 of that total work within the aerospace
sector. Regional turnover is in excess of £4 billion, accounting
for 5% of regional GDP.2.2.2 The sector within Yeovil itself is
primarily focused on four major organisations—Augusta Westland,
Honeywell Aerospace, GKN and Aerosystems International, who between
them employ some 5,500 people in their Yeovil operations, constituting
nearly 25% of the town's working population. All four serve primarily
the aerospace industry and together make up the second largest
grouping of aerospace activity in the South West. As a result
they represent a cluster of advanced engineering activity, which
is not only vital to the future prosperity of Yeovil itself, but
is of considerable importance to the sector in the region.
2.2.2 The emphasis on higher added value activities
leading to a greater degree of sub-contracting ensures not only
the on-going need for highly qualified technical staff, but also
provides opportunities for local spin-off and new supply chain
businesses. In an era of global markets and supply chains this
development cannot guarantee work for new and established enterprises,
but it does provide opportunity. This combination of a cadre of
highly qualified knowledge-based workers and attractive living
environment, linked to a continuing trend among major companies
to focus ever more sharply on their core business, provides a
fertile breeding ground for new knowledge-based businesses.
2.2.3 Close to the Yeovil "hub" are
a number of smaller groupings of businesses forming part of the
advanced engineering sector. These exist in the eastern section
of the A303 corridor towards Wincanton and to the western end
of the corridor towards Honiton and Exeter.
2.2.4 There is ample evidence that Exeter has
been an economic success story in recent years. The City has a
sub-regional economic function that is both recognised and embraced
by private and public sector institutions. In recognition of this,
local councils have worked in partnership with Government, its
agencies and the private sector to deliver an ambitious programme
for growth—Exeter and East Devon Growth Point Partnership.
This programme seeks to capitalise on the City's potential both
within the City and through development in the western most portion
of East Devon. This quadrant of East Devon is already home to
Exeter International Airport, Flybe (Europe's largest regional
airline has its head office, engineering and training base in
East Devon and is the district's largest single employer) and
a significant number of Small and Medium Sized Enterprises (SMEs)
located within the Exeter Airport, Hill and Greendale Barton business
parks.
2.2.5 The A303 corridor encompasses a number
of smaller towns: Axminster, Chard and Honiton. These are also
important local service centres with on-going strengths in manufacturing.
Improved road links have increased the growth potential of Honiton.
Chard is a sizeable local settlement with strong local employment
and service centre functions. Axminster has successfully maintained
a balance between the stock of locally available jobs and its
economically active population through companies such as Axminster
Carpets Ltd, Axminster Power Tools Ltd, Air Control Industries
and a flourishing small business sector.
Innovation
2.2.6 Several feasibility
studies have been undertaken (Angle Technology 2002, Ancer Spa
2005, 2006) to determine the potential for incubating high-tech,
high value and fast growth businesses in this part of the South
West. As a region, the South West has long been regarded as an
innovation hot spot. The studies concluded that there was unmet
demand to create a suitable business environment with appropriate
levels of specialised support to sustain innovation hub for the
sub-region, based on the areas high-tech sector. The analysis
of the business structure of the South Somerset, East Devon (and
West Dorset) areas suggested a strong feedstock of companies suitable
for inclusion in the development of Innovation and Incubation
Centres. The Yeovil Innovation Centre (YIC)—a joint South
Somerset and SWRDA initiative but operated by the District Council.
2.2.7 Collaborative partnership arrangements
to sustain rural community and enterprise development are already
in place across the Blackdown Hills and East Devon Areas of Outstanding
Natural Beauty. "Making it Local" is the local name
for the Local Action stream of the Rural Development Programme
for England in East Devon and Mid Devon, South Somerset and Taunton
Deane.
Low carbon or green technology
2.2.8 The environmental
technologies sector is viewed as important in the South West with
plans to support its development set in place by SWRDA as part
of the drive to strengthen and promote knowledge-based industries
within the region. In 2006, South Somerset explored the priority
sub-sectors and clusters on which a flagship initiative (offering
sustainable development approaches) could be built.
2.2.9 The Chard Community Plan identified an
environmental business centre, as such a landmark project that
would link together strategic green objectives with key objectives
for the economic regeneration of the town. Research undertaken
(Ancer Spa 2006) identified a network of local, small to medium
sized businesses/manufacturers targeting the low carbon/green
technology sector. These were centred on a 10/15 mile radius of
Chard on the South Somerset- East Devon border. The network is
probably driven by the "green" ethic and sustainable
goals of businesses based in the Blackdown Hills AONB and the
surrounding environs. Chard itself is home to one of the leading
companies in the field of design, supply, installation and maintenance
of lightweight roof planting systems offering significant environmental
advantages.
2.2.10 The network included roofing systems,
rainwater harvesting, solar energy, IT and software development.
The local further education (FE) sector are also enthusiastic
supporters of the concept, with Yeovil College having particular
strengths in engineering, while Somerset College of Art and Technology
(SCAT) is developing strengths in aspects of environmental technology.
Both colleges have growing higher education (HE) capability, as
well as their known strengths in FE level vocational education
and training. Both have achieved Centre of Vocational Education
(CoVE) status as centres of excellence, Yeovil for engineering
and SCAT for sustainable development. Both institutions have links
with the town. South West Universities also have extensive expertise
in environmental technologies.
2.2.11 The level of skills in environmental
technology (ET) businesses is high with approximately 80% of ET
companies employing graduates and approximately 50% employing
postgraduates. The concept of growing the sector within the A303
corridor has tremendous business and local support. The area is
perceived to provide a natural centre for such development. Environmental
technology, knowledge-based companies often offer higher skill
level jobs and attractive career opportunities, which help drive
up skill levels and attract/retain high achievers. The type of
employment generally offered reverses trends of low skill, low
pay whilst linking to FE/HE, attracting those with higher skills
and offering higher levels of remuneration.
Tourism
2.2.12 Tourism is
a vital component of the A303 economy. Figures reveal an industry
worth £250 million per annum to East Devon and £165
million per annum to South Somerset. (South West Tourism 2008).
This functioning sector valued at over £400 million per annum
employs over 10,000 people within our areas and generates high
value business to the local economy. The local economy enjoys
a strong "multiplier" effect from tourism with excellent
supply chains and local service value.
2.2.13 Tourism is also a growing sector that
is the result of many years of quality product development and
a number of prevailing recessionary factors. More people are taking
holidays in the UK with a weak pound encouraging more domestic
visitors and more overseas visitors than in previous years. The
sector is beginning to capture the sustainable tourism market.
It offers relatively short journey times from some of England's
major population centres and is significantly closer than many
other tourist regions. The area has been pioneering car-free holiday
agendas and has excellent rail, road and air links to the south
of the UK and beyond.
2.2.14 Even within the tourism market, the A303/
A30 corridor offers quite a niche tourism market, cutting as it
does through several AONBs offering access to the World Heritage
Jurassic Coastline, seaside towns, market towns, quaint English
villages and a wealth of Historic Houses, Museums and Classic
Gardens. The coastal towns of Exmouth, Budleigh Salterton, Sidmouth
and Seaton provide an important but not exclusive focus of the
corridor's visitor economy. They face significant challenges that
require a coherent but locally sensitive approach to economic
diversification and sustainable regeneration. Useful public and
private sector partnership arrangements are developing in both
Seaton and Exmouth to co-ordinate and inform planned investment.
3. THE COMMITMENT
AND ENGAGEMENT
OF BUSINESS
STAKEHOLDERS
3.1 It is apparent from our discussions
with local employers that there is a concern that the current
emphasis on upper tier authorities might result in the far South
West Peninsula turning its back on the M5 corridor to Taunton
and the A303 to and beyond Yeovil.
3.2 The Exeter and East Devon New Growth
Point Steering Board (NGP Steering Board) has been working effectively
since 2007. A key feature of the NGP Steering Board is the participation
of private sector partners. They comprise: Exeter Airport, Exeter
Science Park, St Modwen, and Hallam Land Properties. All these
private sector partners have a direct stake in the growth agenda
and actively participate in meetings. The involvement of the private
sector is a notable success when compared with other, more traditional
economic development structures. We believe the engagement of
the business community and in particular "big hitters"
is an essential pre-requisite of any successful LEP.
3.3 Here lies the central dilemma in relation
to the geographic scale of a successful Local Enterprise Partnership:
the most effective scale for driving the agenda set by Government
and indeed the agenda set by our local communities, is the "City
or town region", roughly approximate to a travel to work
area. However, the Government has indicated it expects LEPs to
consist of more than one upper tier authority. Working at the
scale of more than one upper tier authority is sensible if one
wants to build an appropriate "regional" or "sub-regional"
case for strategic investment in roads and railways, and identifying
other "high level" priorities. However, having explicitly
removed regionalism and regional structures, the Government's
drive is towards arrangements that are explicitly local. The immediate
task for the LEPs will be to lever in more with less. This imposes
a discipline on the LEP to identify what can be achieved through
private investment and to overcome barriers to delivery of the
growth agenda through private enterprise.
3.4 Our submission is that in framing LEP
structures and boundaries, the Government must recognise that
there is a key tension between size and effectiveness. The optimal
geography of an LEP will tend towards the city or town region
and other sub-regional groupings. In our case, we believe this
could require a local delivery LEP that embraces the role of both
the Exeter City sub region and the A303 economic corridor (also
with acknowledgements to the influence of Taunton and the M5 corridor).
3.5 A successful LEP must sensitively reflect
local housing and regeneration priorities and programmes. We believe
the private sector would much more readily engage at this scale
and that ownership of the agenda would thereby reflect a true
private and public sector partnership. The Government expects
LEPs to focus on employment and enterprise and a transition to
a low carbon economy. All these matters are best tackled at the
scale of travel to work areas ie sub-regions. Delivery of low
carbon energy and heat networks need to be addressed across local
authority boundaries but the focus will be largely at the scale
of city and town regions. However, we recognise that there are
issues that are truly transformational in scale and contend that
an LEP that is very precisely focused on themes, such as nuclear
energy and renewables, aviation and transport, could also attract
the necessary level of business engagement to allow the LEP to
embrace other functioning economic areas with a shared agenda.
CONCLUSION
It is unfortunate that to date the role of district
councils has been overlooked through the emphasis on upper tier
authorities. We believe that district councils, acting through
and with their business sector links and partnerships have the
potential to deliver an important and unique role in providing
the building blocks for the transformation of local economies.
However they risk being sidelined in the current debate and the
sense that current discussions are perhaps focusing on what is
convenient for upper tier authorities rather than what the private
sector actually relates to and indeed requires. Furthermore this
potentially conflicts with and detracts from the localism agenda
and the declared need for real local leadership (be it business
or political). Such leadership would be far more successful in
engaging high profile business partners who are interested in
driving forward progress in local priority areas. This would contrast
if the focus were too large and diverse or irrelevant such that
the LEP in effect becomes a talking shop that turns business off.
We are convinced that at least in the short to medium term the
imperative is to provide a structure that allows local communities
and businesses to transform their economy, notwithstanding a reduced
amount of public sector funding support.
12 August 2010
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