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Economic Development
Economic Development Strategy
The PUSH Economic Development Strategy is a key document for the partnership. It is a significant part of the PUSH Business Plan and sets out both the context for economic growth and specifies the priority actions to lay the foundations of the transformational change necessary over the period to 2026 to be implemented by PUSH and its partners. It is a dynamic document that will continue to evolve over the next 3 years both in response to the achievement of important milestones but also broader economic trends.
PUSH's Economic Development Strategy
PUSH's Economic Development Strategy executive summary
Economic Development
South Hampshire is an area of economic challenges and opportunities. PUSH’s aim is to raise the economic performance of the sub-region to match the rest of the South East, with more jobs, better business productivity and growth in knowledge-based and higher value sectors of the economy.
The challenge
With its one million people and 420,000 jobs, South Hampshire accounts for 10% of the South East’s economic wealth. Over the last two decades, South Hampshire’s economy has grown faster than the national average but consistently below the average growth rates across the South East. Economic growth (GVA) currently stands at 2.75% per annum compared with over 3% for the South East as a whole.
Headline growth also masks disparities within South Hampshire. Productivity measures show that the rural fringe and urban boroughs have outperformed the national average, but our cities have lagged some distance behind:
Productivity levels below national/ regional benchmarks
Whilst employment levels are relatively high in South Hampshire, earnings are relatively low. This is partly explained by the lower than average proportion of the population with higher level (degree) qualifications, and employed in knowledge-based businesses. There is some distance to travel to match levels of entrepreneurship found elsewhere in the South East, and a need to foster more of an enterprise culture.
The opportunities
For all these signs of under-performance, many of which can be traced to the decline in traditional manufacturing industries, our research underlines the potential in South Hampshire. Areas of strength, such as business services, advanced manufacturing and high value research and development activity are already pointing the way for growth. Our strategy is therefore to raise the sub-region’s economic performance at least to match the South East average, particularly by growing knowledge-based and high value-added areas of the economy and equipping the workforce with the skills needed to succeed in those areas.
Links:
Push Economic Drivers & Growth Phase 3 - Final Report
Push Economic Drivers & Growth Phase 3 - Final Appendices
South Hampshire Economic Drivers and Growth - DTZ Combined Report - final version - 25 January 2007
PUSH’s Vision for economic-led growth
PUSH’s vision, rooted in our research on economic drivers and growth, is firmly based on achieving an upward step change in South Hampshire’s economy. It aims for:
- Raising annual growth from 2.75% annual GVA increase today to 3.5% by 2021-2026 – this means adding over £13 billion to the South Hampshire economy over 20 years;
- Annual productivity improvement (GVA per employee) of 2.7% by 2026;
- 59,000 new jobs especially in business services, logistics and distribution, retail and tourism;
- Growth in advanced manufacturing and knowledge-intensive firms
- Increase in attainment and skills, especially at NVQ Levels 2 and 4: by 2011 we want to see 68.9% of the working population with level 2 qualifications (6% more than 2005) and 30.4% achieving level 4 (also a 6% increase), with year on year improvement thereafter
- 2 million square metres of new employment land (60% of which is already identified), and delivery of the regionally important South Hampshire Strategic Employment Zone near Eastleigh
PUSH is working closely with the South East England Development Agency (SEEDA) to ensure that its strategy and work programme support delivery of the Regional Economic Strategy and stand to benefit from SEEDA-led investment.
Improving skills
Through joint working with key agencies such as the Learning and Skills Council, Job Centre Plus, Business Links and with Higher and Further Education institutions, PUSH aims to improve skills and training by:
- reducing economic inactivity and unemployment
- building capacity with learning providers
- offering progression routes to better qualifications and job opportunities
- retaining South Hampshire graduates in the sub-region
- improving adult basic skills
- working with employment partners to strengthen workforce development practices
Enabling business growth
PUSH and its partner local authorities will help to create the conditions for businesses to flourish, by:
- ensuring that land is available at the right times and in the right places to support business growth
- developing starter and move-on business accommodation
- engaging with business, for instance through the Investment, Land and Property Group of the Hampshire Economic Partnership, to understand business site requirements and market trends
Promoting innovation and enterprise
PUSH will also promote innovation, enterprise and business performance by:
- improving business infrastructure and support, providing a gateway for Inward Investment
- Improving productivity through better knowledge transfer (e.g. from Universities to business)
- supporting transition to higher value-added businesses, building on existing clusters in advanced manufacturing, marine industries, business services and creative & cultural industries, and emerging clusters such as in environmental technologies and life sciences/ “pharma-bio”) and distribution & logistics
- improving the communications infrastructure (e.g. better access to broadband for business)
- Ensuring that entrepreneurs can access the management and leadership skills they need to innovate and thus grow successful businesses
- Fostering an enterprise culture starting in schools and colleges
A great place to do business
We want to make South Hampshire an even better place than now to do business. Part of that is about what we do to support business activity, But another part is about demonstrating what South Hampshire has to offer in terms of its quality of life, its environment, outstanding retail offer, cultural assets, leisure facilities, visitor attractions and night time economy.
Above all, our vision for economic led growth is about creating sustainable communities. Successful delivery depends upon having the right infrastructure in place to support growth – not just physical infrastructure like roads and utilities, but also social, community and cultural infrastructure including homes, schools, healthcare, local facilities and services.
To deliver this vision we are working in partnership with the business community and other public sector providers, Government departments and agencies (e.g. Department for Business, Enterprise & Regulatory Reform, Department for Innovation, Universities & Skills, Department for Transport, Highways Agency, Environment Agency, SEEDA, Business Link, the LSC, Job Centre Plus).
Making it happen
The PUSH Economic Development Panel oversees a work programme led by five sub-groups involving partner agencies and representatives from business and other sectors:
- Skills (chaired by the LSC)
Reduction in economic inactivity and unemployment; capacity building with learning providers; progression routes; retention of graduates; basic skills; workforce development; productivity improvements
- Enterprise, Innovation & Business Support (chaired by Southampton City Council)
Business infrastructure i.e. business support, knowledge transfer; strategic accessibility; transition towards a knowledge economy; promoting enterprise
- Land and Property (undertaken by the HEP Investment, Land & Property Task Group)
Identifying action needed to unlock strategic employment sites; monitor the supply of employment land; intensify development; starter and move on accommodation; understand business requirements for sites
- Local Area Agreements (Chaired by Portsmouth City Council)
Harnessing LAAs to deliver economic gains for South Hampshire in line with PUSH and Regional Economic Strategy objectives. More Information
- Communications Sub-group (Chaired by Eastleigh Borough Council)
Developing a communications strategy for the Economic Development work of PUSH, with an emphasis on promoting PUSH objectives and activities with the business community and building wider engagement.
Projects
PUSH and its partners are taking forward a number of projects as part of its work programme. These include:
- Development of a comprehensive skills strategy for South Hampshire, and a linked project focusing on skills linked to the construction industry to capitalise on opportunities arising from regeneration and urban development activity;
- Research into economic clusters with potential for growth
- Staging a “Solent Festival of Innovation” in 2008
Measuring and monitoring progress
PUSH commissioned the consultants DTZ Pieda to develop a Performance Management & Evaluation Framework to measure the impact of PUSH’s interventions to foster economic growth. The framework captures both annual performance and longer term trends using indicators and data that are readily available. It proposes regular thematic reviews which fit into the PUSH business planning model. The draft framework was delivered to PUSH in June 2007 and is being further refined in consultation with a wide stakeholder group. The final version of the framework will be available through this website.
PUSH is also developing a monitoring framework for other aspects of its strategy, including information on new house building, trends in housing affordability, employment land use and the completion of supporting infrastructure. The aim is to bring this information together with the economic development framework to inform monitoring of the overall progress of the PUSH strategy.
Contacts:
For more information about PUSH’s work on economic development, contact Bernie Topham (Bernie.Topham@eastleigh.gov.uk)