Health and Well-being Board

Economic Update

David MooreHead of Regeneration, CMBC

26th July 2011

Agenda

• Introduction to Calderdale’s Economy• Economic update

– Impact of recession/ “Economic Resilience” – Local Economic Assessment

• Council’s response– Economy and Enterprise Strategy– Economic Task Force

Introduction to Calderdale’s Economy

3

Manufacturing

Construction

Retail

Hotels & restaurants

Transport&comms

Finance

BusinessServices

Public admin

Education

Health & social work

Other community services

0.50

1.00

1.50

2.00

2.50

3.00

-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Inde

x of

Spe

cilis

ation

(Loc

ation

Quo

tient

, Eng

land

=1)

Average Annual Growth Rate

Economic Update (1 of 3)

Economic Update (2 of 3)

Potential Impact of recession on Employment in Calderdale

7

90

95

100

105

110

115

2007 2008 2009 2010 2011 2012 2013 2014

Scenario 1

Scenario 2

Scenario 3

Source: EKOS 2008, based on Yorkshire Forward Chief Economists Unit / Experian Business Strategies, 2008

Economic resilience 2011EKOSGEN

Calderdale

0.0

20.0

40.0

60.0

80.0

0.0

20.0

40.0

60.0

80.0Economic Structure

Skilled Workforce

Enterprise

Economic Inclusion

Places and Population

Infrastructure andConnectivity

Calderdale Index Average

Local Economic Assessment – SWOT (1 of 2)

Strengths

• Manufacturing and finance sectors• Tourism and CDI – growth potential.• Affordable housing.• Prosperous areas, desirable locations to live.• Low public sector dependence.• Direct rail link to London and Access to major

transport hubs• Strategic position between 2 major city regions• Access to in excess of 5m people within an hour’s

drive of Leeds and Manchester.• Connections – extra capacity on the Caldervale line• Good bus networks – deprived areas are wellconnected• 70% of the district is rural• High GVA and business start ups• Excellent schools and attainment levels• Access to 7 universities within an hour’s travel• FE degree offer from Calderdale College

Weaknesses• Manufacturing output decline and employment.• Vulnerability of finance sector.• Reliance on several large employers• Topography / geography for development /infrastructure.• High levels commuting out – ‘commuter town’ risk.• No higher education institution presence – interms of student spend, vibrancy etc• Deprivation – gap between rich and poor• Unemployment levels• Absence of locally available employment land.• Significant retail spend leakage• Poor rail connections and roads at capacity • Congestion may constrain economic growth–although not as much as in Leeds/Manc’r or London• Business survival rates

Local Economic Assessment – SWOT (2 of 2)

Opportunities• Finance sector developing cluster.• Advanced manufacturing.• Creative Digital sector- high growth.• Diversify the business base.• Encourage further enterprise.• Improve mentoring/support for Businesses• Environment, landscape and tourism.• Media City – Salford.• Strategic position between 2 major city regions and

access to 7 universities• Improved connectivity to Leeds and Manchester• Up-skilling of residents.• Develop retail offer – growth of jobs.• Harness spend in Calderdale instead of Leeds/Manc’r• Reduce unemployment.• Reduce transport congestion.• Electrification of Caldervale line and links to East Lancs• Integrate bus and rail offer.• Links with LCR Green Infrastructure Strategy.

Threats•Manufacturing decline• Finance; reliance on one large employer.• Leeds City Region retail developments.• Transport congestion.• High unemployment.• Capacity for tourism• Cost of up skilling employees • Access to finance to fund opportunities.• Public sector cuts; impact on jobs and theprivate sector supply chain

Local Economic Assessment – Key messages

New Ways of Working:Leeds City Region and Local Enterprise Partnership

Council’s response (1)– Revise Economy and Enterprise Strategy (Action Plan)

13

Council’s response 2; Economic Task Force

• Cross party Member group to respond to economic recession: £2.1m allocated to over 40 projects to date

• Encourage enterprise and diversification– Enterprise support (including social enterprise)– Sector focus – Manufacturing and Finance, as well as growth sectors

(Creative, Tourism, “Green”)– Support for new and existing business networks

• Tackle unemployment;– Apprenticeships, Future Jobs Fund (now Workchoice, Work Programme),

provide support to help people into employment

• Improve skills and Innovation– EU funded project to provide access to University research, graduates,

support for local Supply Chains

Council’s response;3. Support Physical Regeneration

• Halifax – The Shay– Broad Street– Piece Hall

• Sowerby Bridge• Elland• Upper Calder Valley

– Hebden Bridge– Todmorden

• Encourage Investment– Increase profile– Work with City Region

Summary• Economic situation being closely monitored• Response to Economic recession• Adapting to new ways of working

– City Region, not Regional focus– Less funding– More working with partners (including private and

voluntary sectors)• Initial successes

– But... more investment needed– Continue focus on employment, enterprise, diversification,

skills, innovation and physical regeneration