The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

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The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012

Transcript of The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

Page 1: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

The Hertfordshire Economy:John Gourd

Chair – Hertfordshire LEP

January 2012

Page 2: 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.

Page 3: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

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

Page 4: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

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

Page 5: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

…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

Page 6: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

…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

Page 7: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

The newcomer - Hertfordshire LEP

Page 8: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

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

Page 9: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

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…

Page 10: The Hertfordshire Economy: John Gourd Chair – Hertfordshire LEP January 2012.

The Hertfordshire Economy:

John Gourd

Chair – Hertfordshire LEP

January 2012