Meeting documents

1 THE ISSUE

1.1 Bath and North East Somerset (and its constituent places) face particular challenges which pose a threat to the prosperity of many people in the District, and if left unmanaged, also pose a threat to the prosperity of future generations. Those challenges include the actual and potential loss of jobs in traditionally strong sectors locally, and inhibited growth of jobs in other important future sectors. Knock-on effects include significant commuting to within and outside of the District and entrenched unemployment in some parts of the District. This is set against a backdrop of the need for low-carbon living, decreasing resources, an ageing population, and competition from growing economies. A working population is likely to be healthier and less dependent on public sector support. The strategy sets out an action plan to help provide the conditions for increased opportunities and therefore increased prosperity of people living in Bath and North East Somerset.

2 RECOMMENDATION

2.1 It supports the overall principles contained within the strategy.

2.2 It supports the action plan contained within the strategy.

3 FINANCIAL IMPLICATIONS

3.1 The costs associated with the delivery of projects and activities in the Action Plan falling to the Council will be managed within the approved budgets of the Directorate and incorporated into the Council's Service Planning process through the Medium Term Service & Resource Plan.

3.2 The costs of delivery for specific capital projects will be brought through the capital approval process on a case by case basis.

4 CORPORATE PRIORITIES

5 THE REPORT

5.1 Our key economic challenges are:

5.2 The total number of jobs available within the District has decreased to just under 80,000 whilst the working age population continues to gradually increase - now about 110,000. The recession will continue to exacerbate this problem - as will declining public sector resources (see the following point).

5.3 Dominance of public sector employment - around 35% of total employment.

5.4 High levels of in and out-commuting, affecting our road network and transport infrastructure. Caused in part Bath and North East Somerset (Bath in particular) providing a high number of lower-wage jobs, but having a relatively highly-skilled population.

5.5 An ageing population. The number of over 80 year olds in the District is projected to increase by 16% by 2026. This has implications for skills and entrepreneurship, but could also open up larger markets for health, wellbeing and biomedical services and products.

5.6 The need to move to a low-carbon economy. Although this presents significant challenges - we must be sure to structure our economy in a way that economic growth is sustainable - the UK low-carbon goods and environmental services market is due to be as large the pharmaceuticals market, so B&NES must take advantage of this opportunity.

5.7 The Economic Strategy's Action Plan revolves around the following key actions to help meet the above challenges:

5.8 Contribution towards ensuring that the local population - of all ages - is suitably skilled to enable economic participation, and that future skills demands from employers in growth sectors are anticipated;

5.9 Providing more business premises (particularly modern office accommodation) to allow indigenous business growth and inward investment across the District (including in the Somer Valley).

5.10 This would help solve two problems: firstly, this would help increase the pool of more highly-paid, higher-skilled jobs for our relatively highly-skilled population. Significantly, improvement in this area would also encourage growth in other business service organisations, with opportunities at many wage levels (cluster effect).

5.11 The action plan identifies Manvers Street, Avon Street, Old Mills and the Somerdale sites as potential future employment locations (although at the time of writing the Council's first aim is to support the protection of jobs at Cadbury's following the takeover by Kraft).

5.12 Supporting sector networks to encourage more innovation and collaboration, start-up and business growth locally - particularly in generally higher waged and productive sectors (technology/creative industries/ business services) to help balance lower-wage/public sector employment and offer a wider range of jobs locally.

5.13 Maintaining and strengthening our market position in nichè retail, leisure, tourism and manufacturing (quality not volume: recognising a different offer to Bristol).

5.14 The Strategy acknowledges the importance of building on our local strengths and sense of identity.

6 RISK MANAGEMENT

6.1 The report author and Lead Cabinet member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision making risk management guidance.

7 EQUALITIES

7.1 Equalities issues have been addressed as part of the consultation exercise undertaken on the Economic Strategy.

7.2 Implementing specific actions in the Economic Strategy Action Plan will require individual Equalities Impact Assessments to be undertaken.

8 RATIONALE

8.1 The Economic Strategy is the action plan for taking forward the Economic Development & Enterprise theme of the Council's Sustainable Community Strategy.

8.2 The strategy and action plan is based on statistical evidence drawn from reputable sources and anecdotal evidence collected from the business community and by expert public and private agencies. It contains an action plan which will be the basis for future work done by Council services, particularly the Economic Enterprise and Business Development team within Development and Regeneration.

9 OTHER OPTIONS CONSIDERED

9.1 "None".

10 CONSULTATION

10.1 Cabinet members; Overview & Scrutiny Panel; Staff; Other B&NES Services; Community Interest Groups; Stakeholders/Partners; Other Public Sector Bodies; Section 151 Finance Officer; Chief Executive; Monitoring Officer. Business networks (including Bath Chamber and Initiative, Midsomer Norton and Radstock Chamber, Federation of Small Businesses) and individual businesses were encouraged to respond. The strategy was also posted on the Council's website.

10.2 The strategy is owned and has been developed by the Sustainable Growth Alliance. Partners on the group consulted with their own networks (for example, the Learning Partnership held a meeting to discuss the strategy). The Local Strategic Partnership Board and Executive were consulted.

10.3 Many comments have been incorporated in the strategy. Many responses were in support of the need to diversify and strengthen the District's economy.

11 ISSUES TO CONSIDER IN REACHING THE DECISION

11.1 Social Inclusion, Sustainability; Property; Young People; Corporate.

12 ADVICE SOUGHT

12.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Strategic Director - Support Services) have had the opportunity to input to this report and have cleared it for publication.