Economic Strategy
ETAG 14th September 2011
Graeme Rigg
The City of Edinburgh Council
Economic Development
Strategy & Research
Edinburgh Economic Strategy 2012-2017
• Justification
• Purpose
• Product
• Implementation
The Challenges
Economic Review
Business Perceptions Survey
Consultation
Stakeholders meetings
Councillor’s Away Day
1st Draft Strategy
Final Strategy
The Process
Further
Consultation
Input 1 -The Economic Review
Edinburgh Economic
Review
Economic context
Economic Futures
Productivity Employability and Skills
Enterprise and
Innovation
Jobs and Investment -
synthesis for key sectors
Low Carbon Economy
https://www.edinburgh.gov.uk/economicreview2011
Recap: Economic Review findingsStrengths
• Edinburgh continues to deliver on Tourism spend & attract ‘replacement’ Finance jobs
• FDI attracted to ECR - with projects up 70% between August 2010 and 2011
• New firm formation is relatively healthy with 3.8 per 1000 residents pa
• 44% working age residents have HNC/HND+ and relatively few unskilled
Weaknesses
• Although resilient Edinburgh has lost 7,400 jobs from 2005 peak. Forecast not to regain until 2014
• We are part of a global market place and indebted finance system
• Businesses lag behind UK on innovation and internationalisation
• High unemployment amongst state school leavers
Opportunities
• Further exploitation of University sector – innovation and commercialisation
• Support ‘Innovation City’ and/or ‘Visitor Destination’ scenarios
• Edinburgh’s population is expected to grow c. 9% over 10 years
Threats• A growing population needs increased
Jobs (private sector based) and housing
• Cuts in public sector spend is expected to result in 4,200 direct job losses in the city between 2011/12 and 2014/15
• Between 2010 and 2020, major net job losses are forecast in the city in public administration (2,200), manufacturing (2,200) and utilities (700)
Threats
• Reliance on a limited number of sectors?
• Potential skills gap between current demands and demands of the future
Economic Review findingsTourism
• Bank of Scotland Purchasing Managers Index published in 2011- Tourism is one of the fastest growing sectors
• Retail, wholesale, hotels & catering together account for 26% of the business base
• 9 out of 108 FDI projects into the ECR between 2006-11 were in Hotels & Tourism. These totalled $328.8m
Economic Review findingsTourism
• Reliance on in-migration as a source of labour
• Big Issues - retention, customer service, management & leadership development
• Greater opportunity to exploit ICT?
• Potential tension between air travel and a low carbon economy?
Input 2: Business Perceptions
0% 20% 40% 60% 80% 100%
Improving the employability and skillsof disadvantaged residents
Providing strategic direction and high-quality market information
Supporting new development andfacilitating regeneration
Attracting new inward investors to thecity
Providing support to new and growingbusinesses
Promoting the city as a place to live,visit and do business in
Very important
Somewhat important
Neither important norunimportant
Somewhat unimportant
Very unimportant
Input 3: Consultation & Stakeholder meetings
• Public Consultation – on paper or surveymonkey
• Expert verifiers and specialists
• ETAG, EDSP, Jobs Strategy Group, CoC, MEL, Essential Edinburgh….
• EBF
…and Councillors / Officer input
Milestones• May 2011 Committee - Draft Economic Review
• Committee Awayday 23 August – Review findings and Strategic Options
• 20 June to 16 Sept - open to public consultation
• Various meetings and workshops
• Oct 2011 Committee – Outline Economic Strategy
• Dec 2011 Committee – Draft Economic Strategy including new KPIs and draft operational plan
• March 2012 - Launch of Economic Strategy
Ongoing opportunitiesto input
• https://www.edinburgh.gov.uk/economicreview2011
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