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CORNWALL AND

ISLES OF SCILLY

LOCAL INDUSTRIAL

STRATEGY

Draft consultation

Autumn 2019

Photo by: Avanti Communications, Cornwall Trade and Investment


THE LOCAL INDUSTRIAL

STRATEGY NEEDS TO RESPOND TO KEY QUESTIONS.

What are our distinctive features? Where are the strengths to build on?

Where are the weaknesses to address?

This document seeks to

respond to the first questions

around our strengths and

weaknesses and starts to

develop our strategic priorities

and what actions we can take

to deliver them.

Throughout the document there

are quotes from stakeholders

noted at LIS round-table

events.

How should we deliver it? What are the specific actions/projects?

What are our strategic priorities? What needs to be done to address these?

What will success look like?

www.cioslep.com


10 OPPORTUNITIES

DRAFT: Not for circulation

The Local Industrial Strategy for Cornwall and Isles of

Scilly doesn’t replace other strategies, but builds on

opportunities already identified. The Local Industrial

Strategy is about maximising productivity and this

strategy will inform our conversation with government.

VISION 2030


Cornwall and the Isles of Scilly is rich in social, cultural and

natural capital and alive with opportunity, but we must

move beyond the economy of the past in order to realise

the region’s full potential.

Our Local Industrial Strategy sets a course for a

decarbonised and sustainable future. Our pioneering spirit

and culture of innovation and creativity will take us there

first, by exploring tomorrow’s solutions today. We will look

to the horizon in terms of ideas, global markets and even

the potential of Space.

But we are challenging with a purpose and our people are

at the heart of our strategy. Improvements to our economy

must be inclusive and within environmental limits.

VISION ‘By 2030, the carbon neutral economy of

Cornwall and the Isles of Scilly will create

opportunities for businesses to thrive and

people to enjoy an outstanding quality of life’

www.cioslep.com


ADDRESSING THE

PERFORMANCE AND

PRODUCTIVITY OF OUR

EXISTING BUSINESS BASE

DRAFT: Not for circulation

Business innovation to

improve efficiency and to

develop new ideas and

solutions to local and

global challenges.

Redefining productivity for the

CIoS economy: quality of the

environment, wellbeing, quality

of work and access to

opportunity.

Inspiring talent through higher

and further education

infrastructure and training;

providing opportunities to make a

distinctive new offer for our

people, businesses and schools.

Encouraging better jobs for local

people to achieve inclusive

growth; the real living wage,

access to flexible working and

personal development.

Delivering the enabling

infrastructure CIoS needs to

do what its people do best –

make connections and make

change happen.

Protecting and enhancing our

natural assets; promoting

sustainable business investments

that consider environmental

impact and biodiversity net gain.

What are the key objectives for

Cornwall and the Isles of Scilly?

So far our evidence base has

highlighted the following as areas

that need addressing.

1 2 3

4 5 6

www.cioslep.com


OUR FOUNDATIONS

OF PRODUCTIVITY

PLACE

a carbon neutral

economy that enhances

our business

performance alongside

our natural and cultural

capital.

PEOPLE

an inspired, skilled and

valued workforce

across all ages and

communities, enjoying

quality of life

INFRASTRUCTURE

a connected and

accessible economy and

environment

BUSINESS

ENVIRONMENT

thriving businesses and

pioneering start ups

working together

IDEAS nurturing an

entrepreneurial culture

and embedding

Research, Development

and Innovation in

business


CORNWALL AND THE ISLES OF SCILLY

THE ‘PLACE’

OUR STRENGTHS

A trailblazer for how devolved powers

and funding can unleash the potential

of non-metropolitan regions:

→ Levering £17m private investment

into our bus network

→ Generating business growth through

our simplified Growth and Skills Hub

→ Levering £7.5m into our Warm and

Well programme

Our landscape provides for a strong tourism

and agri-food sector.

→ Cornwall is home to three of the top 20 most

visited gardens

→ Cornwall is home to 10% of the World’s best

cheeses in 2019

→ 27% of land is designated as an area of

outstanding natural beauty.

→ Mining World Heritage status

→ Cornwall voted best UK holiday destination

for 9 of the last 10 years

The natural assets and climate means

Cornwall and the Isles of Scilly is a

leading area in the UK’s production of

renewable energy.

→ The best solar and geothermal

resource in the UK and huge potential

for marine, wind and bioenergy.

→ 38% of annual electricity consumption

is generated by renewable energy

www.cioslep.com

Our Local Industrial

Strategy should

have the strongest

sense of place and

local identity of any

in the country”


CORNWALL AND THE ISLES OF SCILLY:

THE ‘PLACE’ —

OUR CHALLENGES

→ Our economy lags behind the rest of the UK. We

produce £17,334 GVA per head, compared to

£23,138 in the SW and £27,095 in the UK.

→ A higher than average number of people suffer fuel

and food poverty.

→ Average house price on the Isles of Scilly in 2019

was £370k (£225k in Cornwall and £240k in

England). Second homes account for 5.2%.

→ Cornwall has a net outflow of more than 5,000

workers commuting to Plymouth, mainly from the

South East of the county.

→ 9 Air Quality Management Areas have been

identified where air pollution is higher than the

national objectives.

→ Our dispersed settlement pattern and low

population density are a constraint to economic

growth.

People know about Cornwall’s

beaches – they don’t know about

things like Spaceport, mining and

geothermal for example and what

makes it a great place to work.”

www.cioslep.com


‘PEOPLE’

OUR STRENGTHS

→ Unemployment is low (CIoS = 2%, UK = 3.8%)

→ Life expectancy is higher than the England average

and 70% of our population visit green spaces at least

once per week.

→ Our Careers Hub is performing in the top quartile of

the 38 LEPs

→ A higher than average proportion of residents with

NVQ3 level qualifications, equivalent to A-levels.

→ One of only 3 LEPs to have been approved for the

second wave of funding for our Digital Skills

Partnership aimed at increasing digital capability.

→ The collaborative Institute of Technology will help to

deliver higher level technical education and training

to address technical skills gaps

There is underutilised talent

and experience in the older

population that could be applied

within communities to support

small businesses”

www.cioslep.com


‘PEOPLE’

OUR CHALLENGES → A population of 566 thousand people, growing at a faster

rate than the UK and South West averages (CIoS=4.4%,

SW=4.1%, UK=3.6%) However IoS is declining (-4.5%)

→ A large proportion of residents are aged 50 and over

(CIoS=46%, SW=42%, UK=37%).

→ The working age population is smaller (CIoS = 58.6%, UK =

62.7%) and levels of economic inactivity have risen by 9%

in the last five years.

→ Larger than average proportion of the workforce is in skilled

trade and elementary occupations, far fewer are in

professional occupations.

→ There are large pockets of deprivation across CIoS, 34% of

employees earn below the real living wage (UK= 23%)

→ We face health challenges including a higher incidence of

stroke and higher level of emergency hospital admissions

than the England average.

Care workers leave jobs at the start of the holiday

season for hospitality jobs that pay better and

return when the season ends.”

£10,000

£15,000

£20,000

£25,000

£30,000

£35,000

£40,000

GV

A p

er h

ead

Cornwall Isles of Scilly

Cornwall and Isles of Scilly South West

United Kingdom

Picture of care worker or

hospitality?

www.cioslep.com


‘INFRASTRUCTURE’

OUR STRENGTHS

→ The Smart Islands project, case studied in the UK Industrial

Strategy is delivering smart solutions to energy, waste, water

and sewerage services on IoS.

→ Average download speeds in Cornwall are 27 Mbit/s and 39

Mbit/s in IoS. This surpasses the rural average (18.3 Mbit/s).

→ Recent investments: Rail Signalling (£11.9m) Green space

(£2.5m), Coastal defenses (£10m)

→ Cornwall’s One Public Transport System – a fully integrated

public transport system across rail, bus and ferry services

→ Goonhilly Earth Station is the world's largest satellite earth

receiving station

→ Newquay Spaceport – in partnership with Virgin Orbit and UK

Space Agency to deliver a horizontal launch facility at Cornwall

Airport Newquay by 2021, creating a satellite technology

cluster of national importance.

Investment into broadband

should enable a smart working

revolution and open up

opportunities to more people”

www.cioslep.com


‘INFRASTRUCTURE’

OUR CHALLENGES

→ The coverage of super-fast broadband is above average

for rural areas but below the UK average.

→ Transport connections to the Isles of Scilly have

experienced a number of challenges. This year hundreds

of holidaymakers were airlifted after being stranded for a

number of days after the only passenger ferry broke

down.

→ Limited demand or supply capacity on the electricity

network is a barrier to renewable energy and growth

across Cornwall. In 2017 the IoS undersea power cable

failed leaving the Islands reliant on fossil fuel generators

to provide electricity.

→ Our people are heavily reliant on car travel. Improved

public transport would improve access to services and

jobs for everyone.

→ Impact of tourists on our health services, roads, pollution

Digital has helped businesses (e.g.

remote working, health and well-being)

but affordability is an issue for the

inclusive growth imperative”

www.cioslep.com Photo

by:

Isle

s o

f S

cill

y T

ravel


‘BUSINESS

ENVIRONMENT’

OUR STRENGTHS

Launchpad is an

innovative, post-graduate

incubation and

acceleration programme

that create digital

businesses in 12 months

• £158m European structural and

investment fund investments into

Enhancing the Competitiveness of SMEs

• CIoS Growth Hub - finding the right

guidance and support to help businesses

work smarter, develop and grow

• IoS Investment Fund- a revolving

investment fund to which businesses can

apply for start-up and growth investment in

perpetuity

• Marine Hub , the world class hub creating

the marine technology businesses of the

future

• The Isles of Scilly Voucher Scheme

available for local businesses to improve

and grow their existing island based

business

• Cornwall Trade and Investment , helping

businesses explore the opportunities

available in Cornwall

CIoS Growth Hub

Finding the right guidance and

support to help businesses work

smarter, develop and grow

European Structural and Investment

Fund investments into enhancing the

competitiveness of small and

medium-sized enterprises.

CIoS Investment Fund

a revolving investment fund to which

businesses can apply for debt and

equity investment

FSB-SW

Providing a wide range of vital

business services including

advice, financial expertise,

support to 400 CIoS

members and a powerful

voice heard in government.

The Isles of Scilly

Voucher Scheme

available for local

businesses to

improve and grow

their existing island

based business

£158m

Cornwall Chamber of Commerce

as a dynamic and fully autonomous

business organization representing

more than 500 businesses

throughout the Cornwall area

Photo

by:

Gro

wth

Hub

www.cioslep.com


‘BUSINESS

ENVIRONMENT’

THE CHALLENGE

The Innovation Centre

provided much needed

support until funding ran

out.”

We are home to 24k businesses,

and experienced only 13.2% growth

in the business base between 2013

and 2018, compared to 23.2% UK

average in the same period.

30.8% of total employment is found

within micro firms (0 to 9 people). This

is the highest across all 38 LEP areas

Only 1.1% of start-ups with

profit below £500k in 2015

reached over £1m profit by 2018,

lower than the England average

of 2.0%.

We have a business churn rate of

19.1%. (25.2% for the UK and

23.1% for the SW); the higher the

business churn, the more

economically dynamic the area is.

In 2017, 32% of jobs (76,000) were in Retail and Hospitality

Retail and hospitality, is one of the highest GVA producers at

£1.9bn. Moreover, it is one of the sectors that has seen the

highest GVA growth between 2012-2017, with an increase of

3.8%. Employment has also risen along with this increase in

GVA by 9.4%. However average wages in this sector are low.

www.cioslep.com


‘IDEAS’

OUR STRENGTHS

→ Satellite Applications Catapult’s

South West Centre of Excellence

→ Camborne School of Mines- a world-

class combined geoscience and

mining department, tackling some of

the world’s most important

environmental challenges

→ Launchpad - an innovative, post-

graduate incubation and acceleration

programme that creates new digital

businesses to meet identified market

demand in just 12 months

→ The Environment and Sustainability

Institute - an interdisciplinary facility

to tackle environmental changes, and

includes research capabilities for

unmanned aerial vehicles , wave

power and pollinators

→ Centre for Ecology and Conservation

- ranked 6th in the world for the

quality of its research on ecology and

biodiversity

www.cioslep.com

We benefit from three complementary universities, Falmouth as a specialist for

creative and digital sectors, Plymouth working across e-health, marine and

agri-tech, and Exeter as a member of the Russell Group and ranked 10th in

the UK. Between them, these universities are home to the following specialist

facilities:


‘IDEAS’ THE

CHALLENGE

We have the lowest share of

employment within large companies

and the highest within micro firms.

Access to match funding and capacity

to innovate is a challenge.

KTP’s are not tailored to meet

local need, small businesses

just cannot afford the match

funding and time required”

We rank the 2nd lowest for research

expenditure in UK, spending 0.39% of

GDP in 2016, some way behind the

current UK level (1.7%) and the UK

target of 2.4% by 2027.

Businesses have relatively low numbers of

R&D tax credit claims (7.2 per 1,000

compared to 13.2 across the South West

and 14.8 UK wide) and secured only 0.14%

of funding from Innovate UK between 2004

and 2019.

www.cioslep.com


FUTURE MARKET

OPPORTUNITIES

As well as identifying

interventions to support our

productivity framework and vision

it is important to identify longer

term opportunities that CIoS can

respond to and capitalise on.

We’re exploring:

Leading energy innovation in

local and global solutions;

deep geothermal, bio-energy,

floating offshore wind (FLOW)

and local energy markets.

1 Mining critical materials for

the low carbon transition;

vital components of electric

vehicles, wind turbines, and

digital technologies.

2 Deliver a world class, carbon

neutral built and natural

environment and smart lifetime

homes, promoting a circular

economy and local supply

chain.

3

Providing low carbon, low

impact, high value visitor

experiences for business,

marine, leisure, and event

tourism year round.

4

Capitalising on Spaceport and

Goonhilly, using satellite Big

Data to drive innovation across

the economy and to the benefit

of our environment.

5 Revolutionise connectivity

using digital and mobile

technology, the role of mixed

reality and the creative

economy in a rural region.

6

www.cioslep.com

Innovation across agri-tech;

lifting the performance of

our agri-food sector and

capitalising on

environmental growth and

natural capital.

7 P

hoto

by:

Princip

le P

ow

er

8 Developing capabilities in

geotechnics and autonomy to

capitalise on marine

renewables, aquaculture and

maritime transport.


1. Does our vision reflect the priorities we

should have for our economy?

2. Does this document highlight the right

objectives for addressing productivity and

performance in our existing businesses?

3. Do the productivity aims by ‘foundation’

reflect the key considerations?

4. Have we demonstrated our

foundations’ strengths?

5. Have we identified the key foundation

challenges faced by local businesses of all

sizes?

6. Have we identified the key future market

opportunities to deliver clean and inclusive

growth?

7. How can we support all places across

CIoS?

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