Milton KeynesInward Investment Plan

www.investmiltonkeynes.com

Page 1 of 12 March 2013

Milton Keynes Inward Investment Plan

Preface

I am delighted, as Deputy Leader and Cabinet Portfolio holder for Economic Development & Enterprise at Milton Keynes Council, to welcome you to the UK’s borough that is ranked first out of 353 local authority areas as ‘the authority area most likely to lead Britain out of recession’ (according to 2012 analysis of regional growth by Experian – the leading global information services company). Milton Keynes is in the process of continued major transformational change. The borough has continued to lead the country in recent years in terms of economic growth and is a dynamic and multi-cultural community. It is one of Europe’s most exciting locations and has become home to some of the UK’s most successful business investments over the past forty years. For the fourth year in a row, Milton Keynes has received a glowing report for its economic strength and overall buoyancy in the face of harsh economic conditions, in the annual Cities Outlook report. Milton Keynes has previously been identified as ‘one to watch’ by the Centre for Cities in its last three reports in 2012, 2011 and 2010. And now once again Milton Keynes tops league tables as the best place to locate and operate a business, as outlined in the Local Futures Report. Milton Keynes continues to be the ideal place to do business and its sustained economic growth in recent years has created an environment that will maximise the benefits to any companies investing and locating here. Milton Keynes pool of skilled labour and competitive operating costs mean the borough is best placed to withstand the continued rigours of the current challenging international economic environment and competes most effectively with other locations. Despite the global economic downturn, Milton Keynes has recently attracted an impressive list of new arrivals and expansions to the borough including: Red Bull Racing, AG Barr, AirWatch and, of course, Network Rail, the largest ever corporate relocation project in UK history. They join an impressive who’s who of blue chip companies who underline Milton Keynes increasing international status as a world class business location – and include Santander, Volkswagen, Coca-Cola, Marshall Amplification and many, many more. The Milton Keynes Core Strategy sets the borough a challenging growth agenda to deliver a minimum of 28,000 new homes and over 40,000 new jobs by 2026. Through the projects that will emerge from that strategy, the physical and social landscape of the borough is set to alter dramatically – raising aspirations, driving achievement and contributing to a more positive future for Milton Keynes and for those who choose to live and invest here. The Milton Keynes Core Strategy and its Smart City ethos encourages business to invest in growing the city’s business base, attracting creative, educated and capable people, embracing all sectors of industry. The borough is continuing to develop and attract new industry, through sustained investment in commercial property, the provision of transport, broadband and telecommunication channels, and ensuring easy access to both internal and external markets. Milton Keynes’ modern, mixed economy has gained a second to none, can-do reputation for success in economic performance and innovative urban regeneration. This is thanks to a superb, trained and motivated workforce and an excellent relationship between the public and private sectors. Welcome to Milton Keynes – the fastest growing and most successful business city in the UK.

Cllr David Hopkins

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“Milton Keynes, the fastest growing and most successful business city in the

UK has been built on inward investment. The attraction of new people, new

companies, new ideas and new investment is what makes us unique. This

plan shows how Milton Keynes Council and partners will work together to

continue this amazing track record.”

Background

Attracting and retaining jobs and investment is fundamental to the economic performance of

an area; and in a competitive market for inward investment, locations need a distinctive offer

and a sustained plan of investment promotion activities.

Inward investment plays a crucial role in the local economy, not only by creating thousands of

new jobs, but in supporting the wider economic growth through the development of supply-

chains that provide a major boost to existing local companies. There are significant benefits to

be had through the attraction of new high-technology inward investors in the dynamic growth

sectors such as software and digital, advanced manufacturing and value-added services. The

higher skills levels required by these kinds of employers is critical for the long-term

development of Milton Keynes as we seek to grow our own talented workforce.

The attraction of new companies, jobs and investment cannot be delivered by any one

organisation in isolation; therefore a real partnership approach between public and private

sectors is required.

The MK Vision

Our vision is to ensure that Milton Keynes, the uniquely-designed, modern, can-do business

city of the twenty-first century, becomes a key economic powerhouse in the UK, powered by

leading edge innovation, a highly skilled workforce, and a growing hub for knowledge-driven

companies; all of this set within an attractive environment in which to live and do business.

Milton Keynes Council’s Economic Development Strategy identifies six key priorities that will

make a significant contribution to the achievement and aspirations set out in the Long Term

Economic Vision. The Economic Vision states that:

‘In 2034 Milton Keynes will be a major free standing city with a diverse high value business

base offering well paid employment opportunities to all those living within the city’.

The development and delivery of the Inward Investment Plan will help deliver the Core

Strategy objective ‘to deliver economic prosperity by promoting new investment and retaining

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existing investors’. This objective requires the provision of at least 1.5 jobs per dwelling and

supports the ongoing economic growth of Milton Keynes.

This plan is directly linked to Priority 5 of the Economic Development Strategy – Articulating a

compelling ‘MK Offer’ to attract, retain and raise the profile of Milton Keynes to businesses

within the UK and worldwide, as well as supporting the delivery of the other five priorities.

The outcomes of the Economic Development Strategy will deliver the ambitions of the

Corporate Plan’s themes of ‘Working in MK’ and ‘Visiting MK’ – directly contributing to the

Outcomes:

“High Levels of Inward Investment”,

“High Levels of employment opportunities for current and potential residents,

“A strong reputation as a visitor destination nationally and internationally”.

Our Growth

Urban Milton Keynes has been built with future growth in mind and is regarded as the largest

and most successful British New Town. It has a distinctive transport layout (grid system) and

extensive green public space. It is a place fuelled by change and strong aspirations. Nothing

has ever stood still in Milton Keynes; this is what makes us different. The ability to create our

own future and manage change allows us to pursue new strategies and respond to the needs

of investors and changing economic and social circumstances faster than older, more

established cities in the UK and Europe. We have a strong track record of planning and

delivery; what we can do, have done and will do.

The population of Milton Keynes has more than quadrupled from 60,000 in 1967 to 248,800 in

2011. The population is projected to grow to 298,450 in 2026 and 305,000 in 2033.

The number of business units in Milton Keynes has risen from 8,065 in 1998 to 11,150 in

2012, an increase of 38.3%. Gross Value Added (GVA), a measure of the value of goods and

services produced, in the Milton Keynes economy increased from £2.9 billion in 1995 to £6.8

billion in 2009, an increase of 135%, which surpasses the South East region and England

over the same period. Median weekly earnings (gross) for Milton Keynes residents working

full time have risen steadily, from £456.00 in 2004 to £536.7 in 2011.

Over the last two years unemployment in Milton Keynes has fallen. The average rate of

unemployment in 2010 was 4.1%, compared to 3.9% in 2011 and an actual rate of 3.3% in

January 2013. While the fall is a positive step in the right direction, average unemployment is

still higher than the South East Midlands Enterprise Partnership (SEMLEP) area and the

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South East region averages. In January 2013, the unemployment rate was 3.1% in SEMLEP

and 2.5% in the South East region.

Milton Keynes’ strong economic performance continues to be recognised by others. In 2013,

for the third year running, Milton Keynes has been praised for its strong economy, the

standard of its workforce, and overall durability in the face of increasingly tough economic

conditions, in the latest Cities Outlook report, produced by Centre for Cities. The Centre for

Cities ranks Milton Keynes as one of the UK’s top five cities to lead the economic recovery;

and as an emerging city it has the ambition, intellectual capacity and size to nurture

innovation and technologies that can fundamentally improve the way we live.

Milton Keynes has also been singled out by business consultants Experian as the leading UK

city in terms of jobs and output growth in the next five years. In their October 2012 report,

Experian surveyed the economic prospects of 353 local authorities and concluded that Milton

Keynes has higher projected growth rates for jobs and output than anywhere else in the

country. Local Futures have also outlined that Milton Keynes tops the tables for the best place

to locate and operate a business.

The Future

The Council, in its Core Strategy, has a target to deliver 1,750 new homes per annum and

create 1.5 new jobs per dwelling. In August 2011, to support these targets and to complement

the Council’s existing economic development functions, the inward investment service was

transferred to the Council from the Homes and Communities Agency. This allows the Council

to deliver a single-point enquiry approach ‘under one roof’ to support inward investment and

business retention.

The Homes and Communities Agency (HCA) has had development control powers for the

expansion areas in Milton Keynes and a large amount of land and property assets in the

borough. As part of the localism agenda, giving the Council a greater role in delivering

economic growth in Milton Keynes, the Council has recently purchased a portfolio of 297

hectares (including 25 major sites, smaller sites and an investment portfolio comprising

buildings and obligations) from the HCA. In addition the Council has taken on all of the HCA

planning powers and the MK Infrastructure Tariff, which is funding from developers to help

pay for supporting facilities in the city’s expansion areas. These proposals have made the

Council the sole planning body in Milton Keynes and combined with the Council’s new

responsibility for inward investment, created a streamlined service for developers and

investors.

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The MK Offer

Milton Keynes has been built on inward investment. Companies from across the UK and

around the world have chosen to locate and thrive here creating jobs and wealth for the

people who live here. But tough economic conditions and greater competition for inward

investment means that Milton Keynes must continually make sure that the Milton Keynes

proposition is focussed, relevant and well-articulated.

The ‘MK Offer’ is the area’s proposition to inward investors. It says who we are and why we

are different. It provides the Council, its partners and anyone who wants to help promote

Milton Keynes with a clear set of messages that will help to enhance the profile and reputation

of the city. The Offer is not about having logo or a brochure; it is a framework to showcase

what’s best about doing business here.

Over the coming months the MK Offer will be used in a variety of campaigns that will help to

build on Milton Keynes’ position as Britain’s most successful International Business City.

The MK Offer has been constructed following detailed consultations, research and analysis.

There are ten elements to the MK Offer but for it to achieve any degree of buy-in or attention

beyond the local area it needs a hierarchy which can be seen below:

Two Main Headlines:

- Britain’s Most Successful Business City

- Uniquely Designed for Business Growth

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Three Key Pillars:

- Talent

- Innovation

- Opportunity

Five Supporting Messages:

- Location

- Service

- Growth

- Profit

- Lifestyle

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These selling messages within the MK Offer will be worked up in detail and will be supported

by facts and data from a range of reputable sources. They will then form the basis of new

marketing materials including a brand new website, new Invest Milton Keynes (IMK) video

and inward investment folder with case studies and sector profiles, and newly designed

presentation materials. This collateral will be supported and amplified through social media

campaigns and e-marketing campaigns targeting influencers, multipliers, intermediaries and

key business advisors, as well as targeting campaigns that will seek to support existing Milton

Keynes businesses by seeking to attract firms from their supply-chain to locate here.

A key task will be to continue to ensure that the MK Offer is heard and understood by both

internal and external partners, in particular UK Trade & Investment, who are promoting the

UK through 235 overseas posts in target markets such as the United States, Germany,

Japan, China and India.

The Place

Milton Keynes is ideally positioned to attract inward investment from new businesses and

encourage existing businesses to grow in Milton Keynes.

Situated at the very heart of the country with excellent road, rail and transport links and within

easy reach of London, Birmingham and Manchester, Milton Keynes’ businesses can reach

half of England’s population within a two hour drive. We are less than a two hour drive from

six international airports – London Heathrow, London Gatwick, London Luton, London

Stansted, Birmingham and East Midlands. Milton Keynes is situated on the West Coast

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Mainline, with access to central London in 35 minutes, Birmingham in under an hour and

Manchester in just over 90 minutes. Milton Keynes and Bletchley are also at the heart of the

East West Rail plans, with the Government confirming in July 2012 that they would fund the

project and electrify the Oxford to Bedford section of the route. The ports of Dover and

Felixstowe are both within 140 miles of the city.

Milton Keynes is part of the South East Midlands Local Enterprise Partnership (SEMLEP)

area. SEMLEP is based around the geography of 11 local authorities, including Bedford,

Central Bedfordshire, Aylesbury Vale and Northampton. Milton Keynes is the largest economy

in the SEMLEP area. The Invest Milton Keynes team is the nominated inward investment

partner for SEMLEP, and is therefore the first point of contact for UK Trade & Investment

enquiries.

Smart City

The Smart City programme aims to realise the vision of being an exemplar resource-efficient

city with renewable energy sources and sustainable systems. With radical building codes,

retrofit programmes, smart electricity grids and meters, local energy production and integrated

transport, power consumption per person will be reduced to reach the international ambition

of a '2000-watt society' by 2050. In this century of cities, Milton Keynes already offers a global

showcase of business-led innovation and technology where enterprises are uniquely placed

to develop custom services to sustain the economy, conserve resources and improve urban

living.

MK is integrating cooling and heating systems in the city to reduce its carbon footprint and is

also building a smart grid and data systems to smooth out peaks and troughs in electricity

consumption and allow the feed-in of energy from waste, renewable energy and

microgeneration. Over many years housing, health and social care systems have collaborated

to deliver innovative telehealth and telecare services. A programme to develop Milton Keynes

as a low carbon urban transport zone aims to integrate electric car and commercial electric

bus routes with demand-responsive small vehicle public transport. This will help synchronise

traffic flow, reduce congestion, save time and reduce emissions. Milton Keynes’ approach is

to use data gathered from the integration of these systems to cultivate an ‘innovation

ecosystem’ in which city-based alliances of communities, businesses and universities

collaborate to devise new services and applications.

Milton Keynes has demonstrated a proven ability to bring major global companies into

collaborations to pioneer innovative technologies in the city and this ethos will continue with

ongoing opportunities for businesses to develop, test and deliver city-wide projects.

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Land and Premises

Many locations claim to have a great supply of land and premises but nowhere can offer the

scale and quality of sites available in Milton Keynes. The unique design and history of Milton

Keynes enables potential inward investors to design and build their own facilities in city centre

locations to an extent that is not found anywhere else in the UK.

The new 400,000 sq ft Network Rail headquarters, the UK’s largest ever corporate relocation

with more than 3,000 people, is a great example of the ability Milton Keynes has to deliver

major sites and properties. As at March 2013, Milton Keynes has 230 hectares of

undeveloped commercial land, 1.2million square feet of B1 vacant commercial property, and

4million square feet of B2 and B8 vacant commercial property.

We also have a variety of new and planned homes for staff relocating to Milton Keynes,

providing a range of dwellings from 1 to 6 bedrooms. On average, over 1,500 new homes are

built in the borough each year. We have significant numbers of new homes planned on the

western and eastern expansion areas (such as 6,500 new homes in the Western Expansion

Area).

Existing Business Base

As the UK’s fastest growing city, the business base of Milton Keynes is constantly evolving.

We are working with new research that details the type, size and sector of Milton Keynes

businesses today. This will enable us to conduct an informed and detailed analysis of the

11,150 companies that are located here. We will then be in a better position to understand the

key industries and sectors, and respond to growth opportunities and employment patterns.

Milton Keynes is home to a number of major companies, many of whom have their UK

headquarters here. These include Network Rail, Mercedes Benz, Red Bull Racing,

Volkswagen Group, Home Retail Group, Dominos Pizza, Marshall Amplification, World Vision,

the Open University, Suzuki GB and Nissan Technical Centre Europe.

The attraction of future inward investment in Milton Keynes needs to be tied to existing

supply-chains wherever possible. This will ensure a more sustainable approach to inward

investment by adding value to those firms already here. We will be identifying major

companies in the area who are willing to collaborate with us in targeting their national and

global suppliers.

We are also conscious of the important role played by social enterprises and charitable

foundations in Milton Keynes. They are a valued and crucial part of the local economy, in

terms of the work they do, the skills that they have and the assets that they can influence.

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Skills

Milton Keynes continues to attract companies and workers that raise the skill levels in the

area. The Council and its partners are actively addressing the types of skills and qualifications

residents need to secure sustainable, long-term employment, as well as identifying what the

skills requirements of businesses are for the future.

Milton Keynes has the infrastructure and offer already in place, which is supporting the

development of future skills to meet the needs and challenges of local employers. Milton

Keynes College, for example, already offers bespoke training courses and apprenticeships for

local businesses, such as Red Bull Racing, Railcare and Nifty Lifts. Milton Keynes is

committed to an employer-led approach to skills and training so that we can home-grow our

own talent and underpin our growth with the best trained and most suitable workforce

possible.

Milton Keynes is determined to provide the high level skills that its employers demand and the

learning opportunities that students want.

Therefore Milton Keynes is taking a significant step towards creating its own city university

with the opening of the University Campus Milton Keynes (UCMK) in 2013.

UCMK, a new partnership between MK Council and the University of Bedfordshire, will deliver

a range of undergraduate and postgraduate degrees from its home in Central Milton Keynes.

Working with local and global businesses, UCMK will be a hub for enterprise-focused

continuing professional development courses. Its campus will become a base for international

research initiatives, which will include an institute for Smart Cities and a collaborative centre

for Telehealth.

Invest Milton Keynes

To promote and attract external investment in Milton Keynes, the Council working with local

businesses and other Milton Keynes organisations, offers a one-point enquiry approach

‘under one roof’ to inward investment and business retention. The Invest Milton Keynes

service offers a range of bespoke services and support which includes:

Commercial property database – search facility containing information relating to

vacant property and site information in Milton Keynes.

Business relocation and market information – customised reports covering a wide

variety of business and market information.

Assistance with relocating staff and hiring new staff – tailored presentations, support

to help recruitment from the local labour market.

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Relocating families – advice from education and childcare to leisure activities and

finding employment for partners.

List of relevant local suppliers – putting new businesses in-touch with existing local

suppliers.

City tours – taking key decision makers on ‘orientation tours’, showing them

everything Milton Keynes has to offer.

As Invest Milton Keynes (IMK) is now part of the Council there is an excellent opportunity to

integrate and expand upon the original offer and service. This will be delivered in a number of

ways, such as through:

Connecting to other Council services/departments.

Support to fast track planning applications for development, where they demonstrate

significant economic benefits.

Development of stronger sector propositions and linkages.

Attracting the supply chains of existing Milton Keynes based businesses to the city.

Development Control Committee training – to update members with economic reports

on the potential impacts of planning decisions.

Providing a package of support services including temporary office accommodation

for companies preparing to relocate to Milton Keynes.

Redesigned and updated IMK website, being more visual and providing case studies

of successful Milton Keynes based businesses.

Delivering Milton Keynes key messages the new IMK video.

Social media campaigns, using Twitter, LinkedIn and other platforms.

Targeting campaigns to ensure that key influencers, business advisors, multipliers

and intermediaries are aware of the MK Offer.

Identify potential inward investors from the high-growth sectors that complement

existing local supply-chains.

Targeted and integrated marketing campaign to promote Milton Keynes.

Work with trade and property media to ensure that the MK Offer is promoted.

Cooperating with agents and developers, sharing data and providing mutual support.

Ensure positive impact and messaging at ‘gateways’ to the city, e.g. road and rail.

Support the development of creative incentive packages for inward investors.

Target Investors

Research shows that Milton Keynes has strengths across several sectors such as

automotive, business services, financial services and logistics. These strengths will be used

to attract more investment from related industries and supply-chains; however a broader

approach that focusses on the operation rather than the industrial sector will be adopted. This

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enables us to target far more relevant opportunities with really strong messages around the

MK Offer. The functions that will be targeted are:

Headquarters

Back-Offices

Advanced Manufacturing

R&D and Technology

Logistics/Distribution.

We are confident that the quality of the MK Offer in each of these functions makes the city a

major challenger for the next wave of inward investments.

Business Support

Alongside the IMK offer to new businesses, the Economic Development team also offer

support to existing businesses to assist with retention and growth in Milton Keynes. Many of

the new inward investment opportunities in the future will be created by the growth in supply-

chains of existing businesses. This places additional importance on business support

activities which will seek to identify and cultivate such opportunities. Through better working

relationships with our existing business base, Milton Keynes Council will ensure that

economic growth and inward investment are interlinked. We will utilise and work together with

our key partners to provide support to the existing Milton Keynes’ businesses. Close

relationships with partners such as SEMLEP and UK Trade & Investment will help to ensure

that international export opportunities are highlighted as an important growth path for local

firms.

Developers and Property Agents

Our relationships with developers and property agents will be crucial in securing new

investment into the city and in successfully bringing forward new sites and premises. IMK will

work closely with local, national and international partners to ensure that all new opportunities

are maximised for the benefit of the city and the people who live and work here.

Partnership Working

Delivery of attracting investment to Milton Keynes is not done in isolation from existing

businesses, stakeholders and partners. Each of our partners plays a key role in articulating a

compelling MK offer. Our partners cover areas such as Education, Business, Visitor

Economy, Leisure and Voluntary Sector amongst others. We will utilise and work together

with our key partners to provide support to the existing and incoming businesses to Milton

Keynes; this has been recognised as being essential to providing a complete support

package.

Milton Keynes: Inward Investment Plan, March 2013

Pam GosalCorporate Head of Economic Development & Inward InvestmentMilton Keynes CouncilCivic Offices1Saxon Gate EastCentral Milton KeynesMK9 3EJ

T 01908 252192F 01908 252768E Pam.gosal@milton-keynes.gov.ukW www.milton-keynes.gov.ukW www.investmiltonkeynes.com