The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.
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Transcript of The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.
The Hertfordshire Economy:John Gourd
Chair – Hertfordshire LEP
January 2012
Hertfordshire - the perception: - the reality:• ‘Powerhouse of UK
economy’
– GVA £25bn p/a (5th largest outside London)
– 1m people
– 47,000 businesses
• High quality of life
• Highly skilled & entrepreneurial people
• Losing our competitive edge
• Increased commuting to London
• Polarised economy – wealth/deprivation
• Business perceptions:
– ‘anti-growth’ - 60% green-belt
– Congested, creaking infrastructure
– Expensive - premises, salaries, housing etc.
The recession has hit Herts businesses…
• 915 fewer enterprises since 2008
…leading to fewer people in work…
• 10,000 people more claiming out of work benefits
• 1 in 5 young people out of work (and rising)
…and impacting on living standards.
• 6% fall in real terms incomes
There are long term issues…
• Economy actually stagnating from 2001
– Loss of small and large firms
• Polarised performance across districts
– Job creation
– Unemployment
• Lack of key employment sites
• Falling behind our competitors nationally and internationally
…and long term challenges…
• By 2031 for every three people of working age there will be two ‘dependants’
• £2.6bn infrastructure deficit
• Not enough housing to satisfy projected demand
• Increased pressure on land and other environmental resources - utilities
…however, Herts has all the key elements for growth• Key sectors
– Life sciences– Film & media– Advanced manufacturing/aerospace– Business services (financial & ICT)
• Skills base– Higher than UK average for level 2-4 skills
• Strategic location– M25, M1, A1, 3 Airports
• Quality of life
The newcomer - Hertfordshire LEP
LEP - Initial Priorities
• 2011 – ‘set up mode’ – governance, executive, premises,
website etc.
– Supporting key infrastructure bids• Croxley Rail Link
• Superfast Broadband
– Team Hertfordshire – inward investment support
• 2012– an action plan for economic growth
• Allocated £10m to kick-start growth
Conclusions:• Weathering recession but economy still ‘sliding’ over
long term• We have the component parts (sectors, skills, location)
to grow the economyBUT
• We need to convince business & government that Herts is a sound investment
• We need an ambitious, prioritised plan to grow our economy
– What, where and when (using new tools/levers)– Buy-in from private & public sector
• We need to pick up the pace…
The Hertfordshire Economy:
John Gourd
Chair – Hertfordshire LEP
January 2012