STRATEGIC ECONOMIC PLAN - CHESHIRE AND WARRINGTON MATTERS - 871candwep.co.uk
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CONTENTS 2 WELCOME 10 Section 1: Our Economic Story: Cheshire and Warrington Today 4 INTRODUCTION 24 Section 2: Our Growth Ambition / ‘Where do we 6 EXECUTIVE SUMMARY want to get to?’ 27 Section 3: Our Areas of Focus / Spatially, thematically, 8 PURPOSE OF THE SEP sectorally / Achieving Our Ambition / ‘What do we have to do?’ 38 Section 4: Making it happen / Delivery, accountability, governance WELCOME WE HAVE ACHIEVED MUCH SINCE THE FIRST VERSION OF OUR STRATEGIC ECONOMIC PLAN WAS LAUNCHED IN 2014 From being principally strategic bodies Interchange and the Intelligent Energy low carbon technologies, and providing intended to give a voice to business in the Demonstrator project at the Thornton support for residents to enhance their skills identification of economic priorities, LEPs Science Park are the first visible examples and work readiness. The Cheshire Science now have responsibility for significant of the impact of this funding. Corridor Enterprise Zone, which was amounts of public money. In Cheshire and Almost all of the £123 million of European launched in April 2016, has already attracted Warrington this includes over £200m from Structural Investment Funds allocated to 40 new companies delivering 623 jobs, the Local Growth Fund to support a range of infrastructure, skills and innovation Cheshire and Warrington has been 340,000ft2 of new or refurbished floorspace projects, unlocking a further £380 million committed or provisionally allocated, and over £30 million of investment, with the of public and private investment over the delivering a range of projects aimed at potential to generate up to £200 million of next 10 years. The ‘pinchpoint’ scheme in supporting SMEs, encouraging innovation, business rates over 25 years to be retained Birchwood Park, the new Chester Bus helping the development and adoption of and re-invested within the sub-region. 02
Our strategy is having a real impact. When I introduced the first version of Cheshire SPATIAL PRIORITIES... and Warrington matters, the LEP’s aspiration was for our economy to have grown to £26.6 billion by 2021 – by the end of 2016 we had already exceeded this figure by almost £3 billion – demonstrating what an outstanding economy we have. This edition of the SEP reflects continued change in the national political and economic landscape. It has been updated in line with our commitment that it remains a ‘living document’, keeping pace with a fast-moving policy environment. It is a chance to recalibrate our ambitions and I welcome the views and thoughts of our partners and stakeholders on this refreshed strategy. The LEP team has already engaged widely as part of the refresh process and will continue to do so as we move forwards, making sure that the SEP is a ‘living document’. Ensuring that the ‘voice of business’ is heard and properly reflected in strategy and policy is a key role for the LEP and one which we continue to take seriously. Christine Gaskell, MBE, DL KEY: 1 = Cheshire Science Corridor, 2 = Constellation Partnership, 3 = Mersey Dee Economic Axis, 4 = Warrington New City Chair, Cheshire and Warrington Local Enterprise Partnership 03
• Specialist credit card firm, MBNA, employs 1,700 people at Chester Business Park INTRODUCTION BY PHILIP COX, CHIEF EXECUTIVE The environment in which LEPs operate Housing is another area that has Ageing Society set out in the Industrial • Places: prosperous communities and the leadership role they are gained much higher prominence in Strategy, and how our strategic vision across the UK expected to demonstrate in local recent months, with the Housing White aligns with the five foundations for a We are not starting from a blank sheet economic growth continues to evolve Paper published in February 2017 transformed national economy: - of paper. Lots of work was undertaken at speed. This light touch review of the signalling the Government’s intention • Ideas: The world’s most innovative in developing the original SEP and in SEP recognises the publication by to ‘fix our broken housing market’. economy Government of the Industrial Strategy the subsequent discussions with This review also recognises the need to • People: good jobs and greater government around devolution; the White Paper, Clean Growth Strategy prepare for development of Local earning power for all refresh process has built on this whilst and the review of LEP Governance undertaken for Government by Mary Industrial Strategies which will set out • Infrastructure: a major upgrade to looking at our ideas through a ‘fresh Ney, a Non-Executive Director of the how areas can respond to the four the UK’s infrastructure pair of eyes’ to make sure they are still Ministry of Housing, Communities and ‘Grand Challenges’ of AI & Data Economy, • Business environment: the best appropriate given the changing political Local Government. Clean Growth, Future of Mobility and place to start and grow a business and policy environment – especially our 04
work on devolution. We are aiming for consistency and continuity with previous work. Our approach is shifting to give a much greater emphasis on place. The original SEP focussed on our key economic strengths through a series of intervention priorities and themes. Whilst these continue, there is more thought given to the importance of place and the social, physical and environmental factors needed to create attractive, successful places that are essential if we are to attract and retain skilled people and that will support economic growth. The original SEP was developed to support an initial bid to the Local Growth Fund so contained more project and financial detail than would normally be the case for a strategic document. As part of the refresh process our more detailed thinking around delivery will be contained in separate delivery plans covering transport, skills, energy, science and innovation, digital, housing and quality of place which will be developed and published in the coming months. The LEP aims to promote economic growth in a way that is sustainable and which benefits as many of our communities as possible. However, the process for deciding where growth happens, and in what form, will sit firmly with our local authority partners and be subject to the democratic planning process. 05
EXECUTIVE SUMMARY DELIVERING ON OUR GROWTH AMBITIONS; BUILDING ON THE MOST SUCCESSFUL ECONOMY IN THE NORTH This update on our 2017 Strategic desire to create great places for their Mersey Dee Economic Axis, and the North Wales is a fundamental Economic Plan (SEP) confirms the residents and businesses to live, work, potential to create Warrington New requirement for our continued success. revised ambition shared across the invest and relax. City, completing the New Town Cheshire and Warrington sub-region: to development that has become one of During the refresh of the SEP, several The SEP sets out the key opportunities grow our economy’s GVA £50 billion the fastest growing and most messages emerged very strongly: - that will drive our growth ambitions: per annum by 2040. Our ambition is the world class science, technology and successful towns in the UK. These founded on the bedrock of being spatial priorities also re-affirm that our • The success of our economy is, in part, innovation assets within the Cheshire consistently the most successful economy is inter-twined with those of down to a significant level of inward Science Corridor; the once-in-a- economy in the North, supported by a the sub-regions and Core Cities around commuting, highlighting the generation opportunity that HS2 will vibrant private sector business base bring to the Constellation Partnership us, and that close working with our importance of maintaining and and public sector partners that are pro- area and wider region; the unique neighbours in the Northern enhancing local and strategic road and active, business-friendly and which cross-border opportunities within the Powerhouse, Midlands Engine and rail networks; 06
• There are demographic challenges ahead. • Our economic activity is not confined to • Skills and Education: setting out plans including increased provision of smaller Our population growth is well below the UK towns and cities – the rural area is home to for working with businesses and skills homes in urban areas to attract younger average and we have markedly smaller a wide range of businesses beyond providers to make sure that our population, and opportunities for new, proportion of 20-35 year olds than other ‘traditional’ land-based activities; workforce has the skills needed to high quality, sustainable housing areas. As a result, our workforce is ageing remain productive and are connected to developments aligned to local need and and pressure on public services is increasing; • Creating an excellent ‘Quality of Place’ is an opportunities. This includes encouraging national policy priorities; essential component underpinning employers to work with young people to • Science and Innovation: setting out how • We have a highly skilled resident workforce, economic growth. High quality urban, sub- inspire them about career opportunities we work with local businesses, FE and HE though much of these skills reside in older urban and rural places, housing, leisure so they understand what skills and providers, Innovate UK and the workers. Skills levels in younger age groups and retail offer and visitor economy are key education they need to progress in the Department for Business, Energy and are lower than in other areas and we face careers they choose; Industrial Strategy to capitalise on our problems attracting and retaining to attracting and retaining the skilled graduates; workers and their families we need to • Energy: provide a roadmap for the LEP science and innovation assets and and its partners to capitalise on the area’s strengths, especially in the Cheshire • Many people, especially first-time buyers support our businesses. Science Corridor. strengths in the Energy sector, address and younger people looking to rent, The SEP is intended to be a high-level, the challenges of transitioning Each of the spatial priorities will also be struggle to find the right kind of housing at strategic road map to achieving our growth successfully to a low carbon economy and supported by detailed strategies. a price they can afford in the places they ambition. The strategy has been designed putting Cheshire and Warrington at the The refresh process has been undertaken at want it. Housing is a key component which to be flexible and provide a broad forefront of efforts to deliver affordable a time of political and economic change. underpins economic growth, and ensuring framework within which different areas energy and clean growth as identified in BREXIT will bring about a fundamental shift we get the right numbers, type and quality the Government’s Industrial Strategy in the way Britain interacts with Europe and of housing in the right locations and at an and groups can align their activities. The White Paper and Clean Growth Strategy; the rest of the world which could have affordable price will be critical for our key messages set out under our growth future prosperity; • Quality of Place: to ensure that our significant implications for a sub-region that ambition (Section 2) and the thematic strengths in terms of quality of place – has a strong track record of exporting. It will • Behind the common image of Cheshire and priorities set out in section 3 provide a including high quality public services - impact on many key areas including labour Warrington as a ‘dormitory’ for Liverpool good starting point. supply, productivity and technology, are used to attract and retain the inward and Manchester, lies a highly productive movement and trade. It will also impact on The refreshed SEP is supported by a series investment, skilled workers and visitors manufacturing economy. Our area is business confidence at various times of supporting delivery plans and strategies that we need to grow our economy, responsible for around a quarter of through the process. which set out the main themes and initial whilst maintaining and enhancing the manufacturing output in the North West, by To take account of this, the SEP has been area’s built and natural environment. value, and manufacturing as a share of our interventions in more detail: - This will include a Place Marketing designed to be a flexible, ‘living’ document overall economy is around 2½ times greater that can adapt as the post-BREXIT landscape Strategy which will set out the benefits of than the national average; • Transport: setting out the priority becomes clearer. It is also consistent with locating in Cheshire and Warrington. transport investments at a local and the work undertaken since 2015 by the LEP • As well as manufacturing, we have strategic level which we believe will be • Digital: to ensure that the sub-region and its local authority partners linked to strengths in Chemicals, Life Sciences required to support the needs of a £50 has access to the digital infrastructure potential opportunities for devolution. (including pharmaceuticals), Energy and billion a year economy. This includes (superfast fibre broadband, 4G / 5G, etc) Environment, Finance and Business Services The LEP has undertaken this initial review of improvements and additions to the road and the skills needed to use them; and Logistics and Distribution. Growth the SEP in March 2018 and aims to potential has also been identified for the and rail network and better, more • Housing: setting out the role of housing undertake regular (at least annual) reviews Agritech and Digital sectors; coordinated public transport services; in future economic development after that. 07
PURPOSE OF THE STRATEGIC ECONOMIC PLAN (SEP) CHESHIRE AND WARRINGTON IS ONE OF THE ‘Cheshire and Warrington Matters’ sets out our ambition to drive the The Strategy is purposefully high level, so that the key messages are not lost UK’S MOST SUCCESSFUL PLACES, ITS ECONOMY economy forward, capitalising on the underneath lots of detail. Throughout unique strengths and opportunities the document, where further OUT-PERFORMING THE UK AVERAGE ON A that our sub-region has. It is a strategy supporting information is available (or is to be developed in the coming NUMBER OF MEASURES. to support growth and economic months), this will be clearly identified. development over the next 20+ years, It is our intention that the SEP is a doubling the size of the economy and ‘living document’ and as such it will be setting out the key economic, updated to reflect and respond to key environmental and social strengths on changes in national and local policy as which that growth will be founded. and when they happen. 08
Section 1 looks at Cheshire and £29.3 Billion Economy Warrington’s economy today, highlighting the data analysis undertaken as part of the SEP refresh to help understand how our economy is built up, how it is performing, its key sector strengths and what challenges it may face in the future. 488,000 Section 2 sets out our growth ambition and what, in practical terms, Employing over this might look like by 2040. Section 3 identifies the key steps and 42,000 interventions the LEP believes will be necessary in achieving the ambition of People In over a £50 billion economy by 2040. This includes setting out the key areas of focus for future intervention in a spatial and capability context. businesses Finally, Section 4 describes how the LEP will work with its partners and key stakeholders to deliver this Strategy, • Launch of the Greater Manchester and ensure that progress is properly Cheshire Life Sciences Fund reported and that the investment 920,000 1.5% decisions taken are accountable, Home to almost taken in a transparent way and offer value for money. Underpinning the SEP refresh is a of the UK robust evidence base, and a people programme of extensive stakeholder engagement. The evidence reports are available to download from the LEP website. 09
SECTION 1 CHESHIRE AND WARRINGTON TODAY Cheshire and Warrington is a hugely In many ways, this economic success is at Our economy is diverse. Alongside a successful economy. Our economic output odds with the common image of Cheshire thriving Manufacturing sector, we have (GVA) is greater than that of Core Cities and Warrington – that of a largely rural real strengths in Advanced Engineering, such as Birmingham, Leeds and Sheffield. economy which acts as a dormitory to its Life Sciences, Chemicals, Energy and The economy has doubled in size since larger, Core City neighbours of Liverpool Environment, Financial and Professional 1997 and we have consistently exceeded and Manchester. Services and Transport and Storage UK performance benchmarks on a number (Logistics). of measures. Cheshire and Warrington has The evidence demonstrates a very different picture. Cheshire and Warrington However, challenges exist around the second highest level of Gross Value is at the heart of the UK’s manufacturing maintaining our productivity advantage. Added (GVA) per head of population in England outside of London and in terms of industry: it produces almost 25% of the Like the rest of the UK, Cheshire and productivity our output per head is around north west’s manufacturing output (by Warrington was hit economically by the 118% of the UK average. Workers in the value) and the sector has grown at almost financial crisis of 2008. Figure 1 sub-region generate over £8,200 each per four times the rate experienced nationally. demonstrates that different places within year more than the North-West average We also ‘import’ significant volumes of the sub-region have recovered at different and £3,100 more than the UK average1 labour. rates over the subsequent period. 10 1 GVA per filled job £51,947 compared to £43,741 (North West) and £48,823 (UK), Office For National Statistics Sub Regional Productivity (March 2016 release).
> ) Figure 1: GVA Growth by Local Authority (1997 – 2015) Figure 2: Comparative GVA by Sector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omposition of the economy G/%%1.;+#. Figure 2 above shows the size of GVA HI'2I1%')>/2+ HI'2I1%')>/2+ Growth based on in the seven largest economic sectors national average in Cheshire and Warrington (as HI'2I1%')G'2+)/.:)HI'2+'% HI'2I1%')G'2+)/.:)HI'2+'% defined using Office for National ) ) Statistics ) ) ) SIC ) )codes), ) ) as ) well as their percentage growth in GVA over the Cheshire East, which has the largest period between 2010 and 2015. economy of the three constituent local The chart emphasises the importance authorities within the LEP area has of manufacturing and wholesale trade recovered strongly, powering ahead of in the LEP area: it is the largest sector average UK growth rates (as shown by in GVA and has the sub-region’s the dotted line). second highest growth rate over the ) ) ) ) ) ) ) ) ) ) • Opening of the Birchwood Warrington’s GVA growth over the last 5 years. It also demonstrates the Pinchpoint scheme same period has been more in line significant growth since 2010 of the with the national level whilst Cheshire Business Services sector, which has West and Chester appears to have expanded at a rate almost 50% higher been hit harder and taken longer to than the UK average over the period. begin to recover. This may reflect the importance of the Finance sector to the Borough, which has experienced a significant fall in the number of jobs since 2008. 11
Sector Strengths Together, Manufacturing, Finance and Business Services and Logistics and Distribution account for 60% of our economic output by value. In terms of Our work so far, reinforced by the recent Northern Independent Economic Review employment, Wholesale and Retail (16.3%), Health and Social Work (11.7%), and (NIER)2, has identified a number of key sector strengths which will provide the Administrative and Support Services (11.2%) are the largest sectors accounting for core to future growth. These are shown in summary in Figure 3, below. 40% of jobs in the sub-region. Almost 10% of employment is in the Professional, Scientific and Technical category3. These strengths vary by constituent local authority. The table below sets out the sector specialisms for Cheshire East, Cheshire West and Chester and Warrington, Figure 3: Cheshire and Warrington’s key sectors measured using Location Quotients (LQs). The figure in brackets indicate how concentrated a particular industry is, profession or cluster is compared to the Manufacturing Life Sciences Energy & national average (1.00). Environment • 22.8% of our GVA • Employs c.6,500 (2,000 working in manufacture of • c.31,000 employees in • 25% by value of the North Cheshire East Cheshire West & Chester Warrington pharmaceuticals) broader sector and over West’s manufacturing 7,000 businesses output • Key asset at Alderley Park • Nationally significant Professional, scientific and Business administration Business administration and • Employs over 24k people including Medicines nuclear cluster technical (1.43) and support services (1.45) support services (1.77) including c.6,800 in Discovery Catapult automotive • AZ in Macclesfield • United Utilities, based in Manufacturing (1.32) Financial and insurance Mining, quarrying and Warrington, is the North (1.31) utilities (1.63) • Growing at 3 times generates 1% of UK Financial and Insurance West’s only FTSE 100 listed national rate exports by value (1.20) Retail (1.26) Transport and storage (1.52) company Chemicals Finance & Logistics and Business Services Distribution The high LQ for in the Mining, quarrying and utilities category for Warrington is • Employs c.5,000 most likely due to it being Headquarters for United Utilities, Britain’s largest listed • 50% of UK’s pure white • Employs in excess of • Almost 18% of GVA water utility and the North West’s only FTSE 100-listed company. salts 45,000 people including • Almost 5% of employment 15k in finance and • 40% of UK’s fertilizer needs • Includes OMEGA which insurance • 16% of UK’s road fuels has created 7,000+ jobs • Make up almost 20% of and 3 million sq ft of produced in Ellesmere Port 2 GVA per filled job £51,947 compared to £43,741 (North West) and £48,823 (UK), Office For National GVA output floorspace over the last Statistics Sub Regional Productivity (March 2016 release). three years 3 NOMIS (2017), Official Labour Market Statistics 4 New Economy (2017), Review of LEPs’ opportunities with reference to Manufacturing – baseline report 12
Our key sector strengths are was confirmed that General Motors and in addition to its expanded considered in more detail below. had completed the sale of Vauxhall to manufacturing capacity the facility the PSA Group, parent company to contains enhanced research and The Manufacturing and Advanced Peugeot and Citroen. development capabilities. Engineering Sector remains the cornerstone of the Cheshire and Bentley, now part of the Volkswagen Siemens (Congleton) employs over 500 Warrington economy, generating Group, has been manufacturing cars staff and produces over 1.3 million almost £6.5 billion of GVA in 2016, at its Crewe factory since 1946. Since variable speed motor drives used to representing almost 23% of our 1998 the company has benefited from control systems such as production economy by value. Our manufacturing £1 billion of investment and is the lines and baggage handling systems output accounts for a quarter of the world’s leading luxury car around the world. 98% of the drives total manufacturing output of the manufacturer – I in 4 cars sold around produced at the plant are exported. north west4. The area is home to a the world above €150,000 is a Bentley significant automotive cluster, Cheshire and Warrington has a long accounting for over £1 billion of anchored by Bentley Motors (Crewe) and distinguished history of working in exports per year5. A long-term and Vauxhall (Ellesmere Port). Within a the Life Sciences and Masterplan for the Crewe site was one hour drive of Ellesmere Port are Pharmaceutical industries. Alderley unveiled in November 2016 with the Jaguar Land Rover (Halewood), Getrag aim of supporting the company’s Park, at the eastern end of the Ford (Halewood), Toyota’s engine plant position as a core component of the Cheshire Science Corridor, has been in Deeside and Leyland Trucks Cheshire East economy. home to some of the world’s most (Preston). 95% of UK car production lies skilled and experienced science within a three-hour drive of our area, A recent addition to the automotive professionals for over 50 years. Some presenting significant opportunities for supply chain in the area is Plastic of the world’s most successful anti- the automotive supply chain. Omnium which opened a 240,000 sq ft cancer treatments have been state-of-the-art manufacturing facility developed at the site. Following Vauxhall has assembled seven in Warrington in 2016. The company AstraZeneca’s decision to dispose of generations of the Astra at Ellesmere provides bumpers and plastic body the site to Manchester Science Parks Port plant, including the multi-award parts for Jaguar Land Rover’s (MSP) in 2014, a £30 million capital winning Mark 7 launched in 2015. Halewood plant. investment programme was Employing around 1,200, production is currently running at nearly 75,000 cars Wilmslow is home to Waters announced which will deliver 1.5 a year, a significant proportion of Corporation’s ‘International Centre of million sq ft of lettable laboratory and which are exported to Europe under Excellence’ for Mass Spectrometry. The workspace and support some 7,000 the Opel badge. In summer 2017 it 37-acre site employs some 500 staff jobs planned on-site by 2025. 13 5 http://www.cheshireeast.gov.uk/council_and_democracy/council_information/media_hub/media_releases/bentley-motors-unveils-long-term-ambitions-for-crewe-site.aspx
Already Alderley Park, which is now nasal sprays for treatment of asthma; and located at the western end of the part of the Cheshire Science Corridor Dechra Pharmaceuticals based in Cheshire Science Corridor, the site Enterprise Zone, has become home to Northwich is an international specialist dates back to the 1930s with research over 150 bio-tech and life science veterinary pharmaceuticals business. into the development of aircraft businesses, including the opening of engines and fuels, and later high Much of Cheshire and Warrington’s BioHub, and in 2015 the Headquarters performance motor fuel and oils. early economic success was founded on of the UK Medicines Discovery Catapult Thornton sits next to the UK’s second the Chemicals industry and today the opened on site. The LEP, alongside largest oil refinery, Stanlow, owned by sector remains a significant contributor Greater Manchester LEP, has invested Essar Oil (UK) since its purchase from to the local and national economy. into a dedicated £45 million Life Shell in 2010. The site produces 16% of Science Fund to support business Salt mining has been mainstay of the the UK’s road transport fuels including growth and development in this sector. local economy for centuries and British 4.4 billion litres of diesel and 3 billion Salt (now part of Tata Chemicals litres of petrol every year6. It also AstraZeneca’s second largest Limited), headquartered in Middlewich, produces 2 billion litres of jet fuel a manufacturing site globally is located supplies over half of the UK’s pure white year and has a chemical plant on site at Hurdsfield near Macclesfield. salts from its state-of-the-art plant and which manufactures a range of Employing some 1,800 staff the site is exports across the globe. Salt Union polymers, lubricants, detergent also AZ’s European Centre for Packing (Compass Minerals) owns and operates alcohols and toluene (used in foams and manufactures, packs and Britain’s oldest and largest rock salt for furniture and bedding). distributes medicines to 130 global mine in Winsford, and is the country’s markets. Products include ‘Zoladex’, Northwich-based Tata Chemicals leading supplier of rock salt (principally one of the world’s leading treatments Limited (TCL), formerly Brunner Mond, for use in gritting roads in winter). for prostate cancer. is one of Europe’s leading producers of Unilever has its historic roots in sodium carbonate, soda ash and Alongside AZ, there are a number of Warrington with the opening of Lever sodium bicarbonate. other high profile firms within Brothers’ first factory in 1885. Well Cheshire and Warrington’s life CF Fertilisers, Headquartered at Ince known soap powders including Persil sciences and pharmaceutical sector. near Chester, was established in 1965 and Surf are still manufactured in the These include Advanced Medical and produces 40% of the UK’s fertiliser town today. Solutions (Winsford), a leading needs. The Ince plant employs around developer and manufacturer of Some of the earliest research into bio- 400 staff and specialises in ‘True surgical, woundcare and wound fuels was carried out at the then Shell Granular Compound Fertilisers’ closure products; Sanofi (Holmes Technology Centre in Thornton. Now (NPKS), producing one million tonnes Chapel) manufactures inhalation and owned by the University of Chester, of fertiliser a year. 14 6 Source: Essar Oils UK
Despite being hard hit following the in Birchwood since 2004. The Group’s continues today. Birchwood Park is global financial crisis in 2008, Financial turnover in 2016 was over half a billion home to much of Britain’s nuclear and Business Services still accounts for pounds with almost £11 billion industry including National Nuclear one fifth of Cheshire and Warrington’s wagered. Laboratories, Wood, Rolls Royce economy, and just under 15% of Nuclear, the Nuclear Innovation and The Government’s Clean Growth Research Office and the HQ of employment. Financial services are Strategy, published in October 2017, particularly important to Cheshire West Sellafield Ltd. The research, highlights the importance of providing engineering and design expertise of and Chester, with over 7,500 employed affordable energy and clean, low these companies is at the heart of the in 2015 – as many as Cheshire East and carbon growth. This was further next generation of nuclear power Warrington combined. Financial and emphasised when Clean growth was stations and the safe Business Services covers a range of identified as one of the four ‘Grand decommissioning of existing plants in activities including banking, credit Challenges’ in the Industrial Strategy the UK and around the world. Urenco, provision, insurance and pension White Paper. It is an area that Cheshire based in Capenhurst, produces 30% of funding, wealth management, legal and and Warrington is well placed to the world’s enriched Uranium and in accounting, and involves many high deliver on with Energy and 2012 took over the decommissioning profile, global brands. Environment a particular strength. and storage operations previously The area has an established and undertaken at the site by Sellafield Key companies include Lloyds, Virgin growing cluster of industrial expertise Limited on behalf of the Nuclear Money, Royal London, M&S Financial in clean energy and energy innovation, Decommissioning Authority. Services, UK Fuels (part of Crewe- building on a legacy of historic based Radius Payment Solutions, one government investment in electricity In 2015 Amec Foster Wheeler (now of Europe’s largest fuel card systems and distribution (the part of Wood) was selected to lead a management companies), Exchequer project to set up a new high- Electricity Council Research Centre Solutions and Fircroft. Barclays Bank temperature facility in the UK for opened at Capenhurst in 1965, later has its Global Technology Centre testing materials used in current and becoming EA Technology) and nuclear located at Radbroke Hall near future nuclear reactors. Funded by a energy (the UK Atomic Energy Knutsford and a large client servicing £2 million research grant from Authority was established at Risley – team for its Corporate Banking and Government the facility, opened at now Birchwood Park – in 1954, Birchwood in 2016, will provide open Business Banking Divisions located at heralding the start of the UK’s civil access for research organisations to Gadbrook Park in Northwich. nuclear programme). test materials for applications such as Betfred, the UK’s fourth largest That history of industry-led research, Generation IV nuclear fission, nuclear bookmaker has been headquartered development and innovation fusion and advanced gas turbines. 15
Cheshire and Warrington is leading the itself in Cheshire and Warrington, way in researching the implications for through groupings such as the Cheshire energy networks from the growing use Energy Hub9 and the Energy Innovation of Electric Vehicles (EVs). By 2040 Centre10 is taking a lead in researching Government wants all new vehicles to and developing new solutions. produce zero carbon emissions and Thornton is also the chosen location for research projects such as the UK’s new ‘earth observatory’ ‘MyElectricAvenue’7 and ‘Elecric Nation’8 (Energy Security and Observation (the world’s largest EV trial of its kind), System for the Sub-Surface – ESIOS) led by Capenhurst-based EA funded by National Environment Technology, aim to build an Research Council and British Geological understanding of the potential impact Society and due to open in 2018. that the increasing uptake of EVs will Protos, on the south bank of the have on local electricity networks and Manchester Ship canal near Ellesmere look to develop technical solutions to Port, is a new strategic energy hub smooth demand. which features as the only energy- Affordability and security of energy focussed development in the supplies are also of huge importance Government’s recently unveiled locally given the large number of heavy Northern Powerhouse Investment energy users located in the area, Opportunities Portfolio and could utilising energy not only to power their eventually attract £1.5 billion of production lines but also as a investment and 13,000 jobs. feedstock. Supporting these industries The unique geography, geology and in the transition to a low carbon industrial mix within Cheshire and economy will be challenging and Warrington also opens up opportunities require support for and investment in for developments in hydrogen energy innovations and smart energy (including hydrogen fuel cells) and systems. 7 http://myelectricavenue.info/ geothermal heat networks. The area is The LEP has supported the already the location of some of the UK’s 8 http://www.electricnation.org.uk/ development of the Intelligent Energy largest underground natural gas 9 http://www.cheshireenergyhub.co.uk/ Systems Demonstrator at Thornton storage facilities, utilising former salt 10 http://energyinnovationcentre.com/ Science Park, and the energy industry caverns. 16
Strategically located between suitable large-scale investment sites, Innovation Centre, National Centre for C&W include Cogent, Genus ABS, Liverpool and Manchester and at the will be ideally placed to capitalise on te Horticulture, the Environment and Chester Zoo, Bolesworth Estate, heart of the North West’s motorway new, post-Brexit trading relationship Sustainable Technology and a LEP- Harthill Stud, Wheatsheaf and network, Cheshire and Warrington has with the world. supported Advanced Agricultural Aviagen. enhanced its reputation as a centre for Engineering Academy which, when Although currently small in overall GVA Logistics and Distribution. Omega, completed, will be one of the most and employment terms, as a largely located on the former United States sophisticated education centres of its rural geography Agri-tech and Food Air Force base at Burtonwood, north type in Britain. Partners in the initiative have been identified through the Warrington, is one of the most include CLAAS, CaseIH, New Holland, Northern Independent Economic successful logistics centres in the UK JCB, Amazone and Kuhn, many of Review as having growth potential for today, having created over 7,000 new which have donated advanced Cheshire and Warrington. The area jobs and over 3 million sq. ft. of engineering machinery and has well-developed Agriculture, Dairy floorspace over the last three years. A equipment. and Food Production sectors, and loan from the LEP’s Growing Places companies such as Fayrefield Foods The new specialist facility will enable Fund was instrumental in unlocking (Crewe), Meadow Foods (Chester) and Reaseheath lecturers to deliver the infrastructure for the first phase of County Milk Products (Wilmslow) are training in the latest crop production Omega and subsequent funding from amongst the largest independent dairy systems, including technical training in Local Growth Fund is helping improve companies in the UK. Glambia Cheese precision farming, to agricultural access to Omega South. based in Northwich is Europe’s largest engineering students and science manufacturer of mozzarella cheese subjects such as agronomy and data The area is also well positioned to take and NWF Group, with a turnover of mapping to agricultural students. In advantage of the continued major £465m (2015) is a leading national 2015 part of the College campus was investment in the Port of Liverpool supplier of ruminant animal feed and designated by Government as a Food including the new post-Panamax has grown to be the third largest fuel Enterprise Zone. container terminal which opened in distributer in the UK. 2016. Added to this, development of There are also a number of niche improved port facilities along the Reaseheath College is one of the areas of expertise for C&W. In 2015 an Manchester Ship Canal – including leading specialist land-based colleges £85k grant from the GREAT UK Port Ince and Port Warrington – and in the UK with almost 4,000 students Challenge Fund helped to boost the easy access to Liverpool and in Further Education, Higher area’s reputation and profile as a Manchester airports with their freight- Education, Apprenticeships and work- super hub for breeding and animal forwarding capabilities, mean Cheshire based learning. Facilities include an science. Key organisations already and Warrington, with a range of industry-backed £7 million Food working in this specific sub-sector in • Reaseheath College’s Food Innovation Centre 17
People and Place Cheshire West and Chester is the second largest in population (37%), Cheshire was traditionally, and while Warrington contains 22% of the remains in many places, a rural area, LEP’s residents. with agriculture and land-based industries, a network of generally Between 2005 and 2015, the LEP affluent and prosperous villages, mid- experienced population growth of 4.2%, sized market towns (including barely half the rate experienced Congleton, Crewe, Macclesfield, nationally (7.8%) over the same period Winsford and Middlewich), and one (see Figure 4). Warrington experienced the highest growth rate at 7.6%, and historic city (Chester), serving as important service and functional # ) 2 Cheshire West and Chester the lowest, at 2.0%. Cheshire East population centres. Warrington, the largest urban increased by 4.3% over the same period. centre in the LEP area, developed as a ! $ $8 $ $ ;$ $ $ : New Town growing quickly following its designation in 1968 and reaching a population of over 200,000 by the MABBBABBBPBB) HDIF HDIF 2011 Census. Alongside their roles as @ANBBABBBPBB) retail, commercial, educational and leisure focal points, these places @ABBBABBBPBB) HDJF H HD JF developed specific sectoral !ANBBABBBPBB) specialisms, including extractive EDGF EDGF CDEF CDEF industries and chemicals across the !ABBBABBBPBB) Weaver Valley, and silk manufacturing NBBABBBPBB) in Macclesfield. These rural areas are now increasingly home to a wide ? HI'2I1%')X)G/%%1.;+#. HI'2I1%')X)G/%%1.;+#. 7%'/+'%)*/.&I'2+'% 7%'/+'%)*/.&I'2+'% H H#K'.+%-)X) #K'.+%-)X) >.+'%J%12')*M >.+'%J%12')*M range of non-land based businesses G/%U1&Y2I1%' G/%U1&Y2I1%' that appreciate the rural setting, @BBN @B!N W#JP);%#U+I)@BBN?!N W#JP);%#U+I)@BBN?!N including the visitor economy. Almost 1 million people (917,000) lived Z[ W#J$3/+1#.)S@B!NT()KIBLLMBMMM W#J$3/+1#.)S@B!NT()KIBLLMBMMM in Cheshire and Warrington’s LEP area W#J$3/+1#.);%#U+I)@BBN?!N()HDJF W#J$3/+1#.);%#U+I)@BBN?!N()HDJF in 2015, with Cheshire East accounting for 41% of the total residents. Figure 4: Cheshire and Warrington Population Growth (2005 – 2015) 18
W ) ) ) '2 $ $ $ $ Fig.5 Population Clusters $ In addition, the LEP has significantly lower numbers of younger people in the 20 – 35-year age bracket (just over 163,000 or 17.8% of our population) compared to the UK average of 21.5%. Projections by the Office for National Statistics estimate that by 2039 the Cheshire and Warrington population will have grown to around 990,000, a projected growth rate of just 7.9% over the period, compared to 15.5% for England. This represents a significant challenge, with increasing numbers of older, retired residents supported by a decreasing resident y workforce. It also highlights the importance of working with the Department for Work and Pensions, and others such as Age UK to take forward the inclusive work agenda so that the potential of all working-age residents to contribute to our G'/3+I-)^$/3141':)) economic performance is realised. '2+/L312I':)4/0131'2 ) Whilst the majority of Cheshire and 53:'%)'2+/L312I': ) Warrington can be considered prosperous, there are pockets of b#$.;)/.:)^$/3141':) deprivation across the sub-region. The $%L/.)%'21:'.+2 ) analysis undertaken as part of the SEP c$2+)9L#$+)*/./;1.; ) ) refresh also highlighted areas where large numbers of residents fall into *#2+):'J%1K':)/%'/2 ) ) the ‘just about managing’ classification. This is shown in Figure 5, right. ) ) ) ) ) ) ) ) ) ) 19 Source: Metro Dynamics analysis of ONS Census 2011 and Ordnance Survey data
Skills and Education careers and many of these young engineering and manufacturing people are unaware of the technologies and only 2% in science One of the factors underpinning our opportunities of STEM-related careers. and mathematics. performance has been our highly As a result, the sub-region is not skilled resident workforce. Cheshire Replacement demand from an ageing generating enough learners with and Warrington has one of the highest population is the highest driver of suitable STEM skills. In 2014/15 only proportions of workers qualified to future labour demands in Cheshire 4.71% of total apprenticeship starts in NVQ4 and above (39.1%) and lower and Warrington (230,000 jobs by Cheshire and Warrington were higher than average numbers of residents 2025). Replacement demand is a level apprenticeships and these were with no qualifications at all (7.3%). The significant sector issue for almost all (92%) in health, public picture on skills is not all positive with manufacturing (35% of the workforce service and care and business under-performance on delivery of are 50+); public administration, administration and law. Only 11.5% of technical-level skills which is a education and health (33% of the all apprenticeship starts were in STEM potential barrier to growth. workforce are 50+)12 and transport and subjects, compared to 15% nationally The proportion of people aged 20 – 39 C communication (27% of the workforce and 16% in the North West. For non- / ) 1 with degree level qualifications increased by only 1.5 percentage ) + + apprenticeship SFA 19+ provision for the six FE colleges in the sub-region, are 50+) .When looking to meet this demand we have a potential deficit of points between 2004 and 2012, only 4% of delivery in 2014/15 was in up to 60,000 graduates. compared to 9.6 percentage points in ! $ $ $ $ $ the UK11. There appears to be a dumbbell, with higher than average CN CB numbers of people with degrees, and MN higher than average numbers of MB • West Cheshire College people with low qualifications. This is @N @B exacerbated each year by 5,000 young !N people leaving to go to Universities !B outside Cheshire and Warrington N B Much of our business base is reliant Q)U Q)U1+I)68\C]) 1+I)68\C]) Q)U Q)U1+I)68\M)#.3- 1+I)68\M)#.3- Q)U Q)U1+I)68\@)#.3- 1+I)68\@)#.3- Q)U Q)U1+I)68\!)#.3- 1+I)68\!)#.3- Q)U Q)U1+I).#) 1+I).#) ^$/3141&/+1#.2) ^$/3141&/+1#.2) on STEM skills, however not enough S68\T young people are gaining the basic HI'2I1%')/.:)G/%%1.;+#. HI'2I1%')/.:)G/%%1.;+#. H#K'.+%-)/.:)G/%U1&Y2I1%' H#K'.+%-)/.:)G/%U1&Y2I1%' English and maths skills that would 7 %'/+'%)*/.&I'2+'% 7%'/+'%)*/.&I'2+'% >.+'%J%12')*M >.+'%J%12')*M 6/+1#./3)9K'%/;' 6/+1#./3)9K'%/;' enable them to progress into STEM 20 11 CWLEP Area Based Review of Further Education Skills Priorities: Skills Conclusion, January 2016. 12 Ibid
) 0 )J )' ) 2 $ $ $ ; $ $ #$ : N$'%0/O2P+?")#+412')#"')/#2+/%+5,-+(12)41#'2 */.&I'2+'% */.&I'2+'% #%0/O2P+?")#+Q0"&12+/%+(12)41#&1+/%+5,-+O/(R1(2+ businesses to develop on-going main places where residents commute relationships with young people so to work, and where workers travel G1%%/3 !!AODE that they are inspired by new from. a31.+2I1%' a 31.+2I1%' !!ACNC technologies and understand career "+#&YJ#%+ " +#&YJ#%+ !BABNO B The overall level of commuting is high opportunities. The LEP believes that by
Connectivity significant new national investment in A further phase of the programme infrastructure, especially the planned (‘Digital 2020’) is now underway which Notwithstanding the challenges, new high speed rail network (HS2 and aims to tackle some of the harder-to- Cheshire and Warrington remains one Northern Powerhouse Rail). To reach spots, increasing fibre of the best-connected locations in maximise the economic potential of broadband coverage to 99% by 2020. England. The motorway network, rail these investments it will be necessary network, Manchester Ship Canal, two Connecting Cheshire has also worked to plan and deliver associated international airports – including the with local businesses to make sure improvements in local rail connectivity busiest outside of London – and easy that they have the digital skills needed (as shown in the ‘Growth Track 360’ access to the Ports of Liverpool and to take advantage of the new cross-border study published in Holyhead supports our visitor broadband infrastructure. 2016)14 and in road connectivity. economy and offers business and leisure travellers and companies Now, and increasingly in the future, seeking access to international successful places will need to be Digital Connectivity ‘smart’ and digitally connected, markets a significant range of options and opportunities. As well as physical infrastructure, access especially if business productivity is to to affordable, reliable high speed and improve. Digital connectivity can also Work undertaken for the LEP by Jacobs reliable broadband and mobile make lives better through supporting shows that the network is a potential networks (including superfast the creation of easier, more accessible constraint on growth and is already broadband, 4G and 5G) is essential to services, and our Digital and Creative demonstrating reduced resilience in support future growth, innovation and the face of increased traffic levels . sector has been identified as an area improved productivity. Government of future growth with emerging Continued investment in transport estimates that every 10% increase in infrastructure, particularly increased clusters in Macclesfield, Wilmslow and broadband penetration yields 0.25 per investment in the local road network Warrington. cent increase in GDP Growth.15 and improved public transport will be Our ambition is to make our sub- essential not only for Cheshire and Through the sub-regional Connecting Cheshire programme, Cheshire and region one of the most connected Warrington’s economic well-being, but digital areas in the UK. We will achieve also for that of North Wales, Liverpool Warrington enjoys some of the best coverage by high-speed fibre this through working with a range of City Region, Greater Manchester and infrastructure providers using both broadband in the UK. By summer 2017 North Staffordshire. existing and innovative methods to it is expected that 98% of residents The sub-region has the opportunity to and businesses will have access to deliver this essential service to all secure transformational benefits from superfast broadband. areas of Cheshire and Warrington. 22 14 http://www.growthtrack360.com/home/resources/ 15 see research by Aberdeen and Oxford Universities https://abdn.ac.uk/news/8127/
) ) ) L - Fig.6: $ Housing $ Affordability $ $ (Source: Metro Dynamics analysis of ONS and Ordnance Survey data) Housing centres could be a key factor in making the area more attractive and Despite often difficult market affordable to younger people. conditions since the economic crash, Similarly, there are many older Cheshire and Warrington has delivered residents unable to downsize from almost 16,000 new homes in the their large family homes due to a lack period 2010 – 2015 which represents of suitable smaller properties and the highest level of completions per specialist older person’s 1,000 households in the North West accommodation. and a level above the England average of 6 completions per 1,000 The LEP believes that successful households. Across the three local delivery of the major projects within its authority areas approvals are in place three spatial priority areas (Mersey for a further 33,500 homes and local Dee, Constellation Partnership area plans to 2030 currently provide for and Warrington New City) could lead around a further 70,000. to a need for up to 127,000 new homes by 2040. This equates to However, large parts of the sub-region around 9,000 above current local plan are unaffordable to families living on targets if current levels were average incomes and to younger extrapolated to 2040, but this figure people. In the map below the darker remains subject to ongoing strategy areas correspond with the highest development work, particularly in the average house prices. These areas also Constellation partnership area. tend to have high proportion of ) ) ) ) ) ) ) ) ) detached properties with lower numbers of smaller houses and flats. There is also a need to ensure that the right types of housing are being provided in the right locations to meet the needs of the current and future population. For instance, an increase in the provision of flats in the private rented sector within our man urban 23
SECTION 2 OUR GROWTH AMBITION BY 2040 WE AIM TO... In developing policies and supporting strategies to deliver our growth ambitions, the LEP is keen to ensure that it has a clear idea of what ‘success’ would look like beyond the headline numbers. Whilst not a comprehensive list, the following section considers some of the outcomes and measures that will be used to measure our progress and ensure that economic growth delivers benefits across the LEP area. Greater detail on the practical steps needed to realise these outcomes will be contained in a delivery plan to be published later in 2017 and underpinned by specific strategies for skills and employment, transport, digital, housing, science and innovation and energy. • Consistently one of the best performing economies in the UK: The LEP area will continue to outperform the UK average in terms of GVA per head and GVA per worker. ...and create an economy • Diverse, inclusive economy, resilient to economic shocks: Cheshire and Warrington will maintain a diverse economy with strengths in a number of key sectors and a high that works for all level of jobs available per worker. Our economy will grow through supporting success in our existing business base and providing the right conditions for new businesses to locate and invest and to adapt as the economy and technology changes. 24
• Home for and attractive to a well- • An area offering high quality to start their own business) will have households and an energy educated, highly skilled, urban and rural places: quality easy access to the advice and infrastructure that is smart and adaptable workforce: Higher skills built environment and ‘blue and guidance they need. Effective adaptable to changing peaks and levels are key to achieving increased green’ infrastructure attractive to support will be available through our troughs in demand. productivity, to supporting business young wealth creators, Business Growth Hub and other • An area that has responded growth and for delivering business entrepreneurs and skilled workers programmes to new business start- positively and pro-actively to the and product innovation, research and their families ups and entrepreneurs and for Government’s emerging Industrial and development. Cheshire and existing business looking to develop • A balanced, well-functioning Strategy and played a full and Warrington will have one of the best and grow. housing market to support active role in building the qualified workforces in the UK and economic growth: offering a good • Somewhere that is outward facing Northern Powerhouse, ensuring we will work with business to ensure mix of properties in terms of type, – both nationally and internationally that the voice of non-Core City that young people are inspired by tenure and affordability – and open to working with and places is properly heard and taken new technologies and career learning from others to achieve account of. This includes working • One of the best-connected places opportunities and demand the common goals. with Government, business and in the UK (digital, road, rail, air appropriate training from HE and FE. other institutions to make sure the and sea): broadening our labour • A place where innovation and new We will also build on existing good right structures are in place to market catchment and giving thinking is encouraged and practice where businesses work with support people, industries and business easy access to markets and supported: Focussed on but not FE and HE to design and deliver the places. opportunities. limited to the Cheshire Science training and education that Corridor we will offer a fertile employers need including through • A place where it is easy to do location for academic and industrial Apprenticeships and more technical business and to locate and grow a research and development, working business: A sub-region that can routes. We will work with employers to support a strong innovation offer high quality, readily available and others to make sure that we ecosystem that can develop and sites for industry and commerce to make the most of the skills and deliver practical commercial invest in, with a fast and responsive experience that sit in our older solutions. planning and regulatory system to workforce. support investment proposals. • Evidence-led strategy and policy • High quality, vibrant town Continued ability to attract inward underpinning a robust, viable and centres: creating places that are investment, underpinned by our prioritised investment plan appealing to, and meet the retail, Quality of Place offer, to the benefit • An area that has successfully leisure and cultural needs of the of the whole of the North transitioned to a low carbon people we need to attract and retain • A comprehensive, coherent economy, with secure and if our businesses are to be business support landscape: affordable energy to meet the successful. Businesses (including those looking demands of business and 25
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