Local Industrial Strategy: updateNeil Hayes – Executive Director

Hertfordshire LEP

What does good look like?

Based on evidence

Co-designed with key stakeholders and Government

Sets clear priorities

Focuses on what makes a local area distinctive

Considers the five Foundations of Productivity and

the four Grand Challenges

1

2

3

4

5

Building on our vision

By 2030, Hertfordshire will be among the UK’s leading economies, helping to

realise the full potential of the assets and opportunities of the Golden Triangle.

Maintaining global

excellence in science

& technology

Priority 1 Priority 2

Harnessing our

relationship with

London & elsewhere

Priority 3

Re-invigorating our

places for the 21st

century

Priority 4

Foundations for

growth

Headlines from our Economic Outlook

• Strong business birth rate, and

fast growth in the business

population since 2010

• Jobs growth in recent years

have been notably faster than

average

• Skilled jobs have grown more

slowly than the national

average

• Productivity has fallen in

relative terms

The boundaries are already very permeable

This reflects (and causes) commuting patterns

Source: Produced by SQW 2018. Licence 100030994

Contains OS data © Crown copyright [and database right] [2018]

And the footprint linked to major sectors

Source: Produced by SQW 2018. Licence 100030994 Contains OS data © Crown copyright [and database right] [2018]

Jobs growth

• County-wide jobs growth

has been strong

• Watford has seen

substantial growth over

recent years

• Three districts/boroughs

have grown more slowly

than the national average

and one has seen jobs loss

Source: Jobs density dataset, ONS

Earnings

• Overall, residents earn more

than people working full time

in Hertfordshire, reflecting the

consequences of commuting

• Full time employees working in

Watford earn less than the

national average

• Locally, resident earnings are

high but this is not consistently

the case

Source: Annual Survey of Hours and Earnings

Index of multiple deprivation (IMD)

Source: Produced by SQW 2018. Licence 100030994 contains Ministry of Housing, Communities &

Local Government data: English indices of deprivation 2015

Employment in Hertfordshire

Hertfordshire’s GVA per job

The elephant in the corner

Analysis by LSE found that

Watford and East Herts are

among the 10 areas most

‘at-risk’ from Brexit due to

local sector specialisms:

• Financial services and

aerospace have particularly

strong EU supply chain

• The financial services sector

nationwide relies heavily on

migrant labour

Our Local Industrial Strategy principles

Building on our strengths & opportunities

Addressing challenges - deep dives

Dialogue & debate

Making the case for investment

1

2

3

4

East-West growth axis

• Will accommodate 50% of Hertfordshire

housing growth

• Garden Towns

• 2 Enterprise Zones, 10,000+ jobs

• Transport constraints – digital solutions?

• Sector potential – enviro-tech, off-site

construction, life sciences, ICT

• Should be of national significance

• How can this address the Grand

Challenges?

Source: Hertfordshire Infrastructure and Funding Prospectus

Identified housing sites in Hertfordshire to 2031

Stevenage Innovation District

• Home to an emerging cell and gene therapy

cluster of international significance

• 1000 jobs, £1bn investment over past 5 years

• A focus for advanced engineering and

manufacturing

• Live issue – accommodating growth

• Potential testbed for convergence

• How can this benefit neighbouring localities

and settlements?

London fringe – deep dive

Opportunities:

• Watford regeneration

• Growth of film and TV and related tech sector

• Digital growth – home working

Challenges:

• Broxbourne’s economic performance

• Loss of employment land – housing pressures

• Lack of investment

• Iterative growth

• Need to assess in line with outer London (M25)

• What is our offer for investors?

Source: AECOM

770,000+ sq. m. commercial floor space has

been lost over the last decade, equivalent to:

• 10% of total Hertfordshire office stock

• More than the entire stock of St Albans,

Stevenage and Watford combined

Loss to residential represents 50% of office

losses and 25% industrial losses:

• Rate of loss has doubled over the last 5 years.

• 130,000 sq. m. office floor space lost due to

Permitted Development Rights

• This is a live issue, but needs a long term

solution

Loss of employment land

Source: Hertfordshire Infrastructure and Funding Prospectus

Identified employment sites in Hertfordshire to 2031

From start-up to scale-up – deep dive

• We do not seem able to scale up

our SMEs as well as we should

• We need to understand barriers

better e.g.

• Premises

• Skills

• Finance

• Technology

• Mixed picture depending on sectors

• Key role for University of

Hertfordshire

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Incidence rate of small high growth firms (adding at least 8 employees in 3 years)

Skills attainment

There are significant variations in skills and

school level attainment across the county.

• The proportion of residents qualified to

degree level ranges from 25% in

Broxbourne to 56% in St Albans

• Jobs are changing profoundly thanks to

digitisation e.g. retail – logistics

• How can technology reduce our reliance on

commuting?

• Do we need to prepare for Jobless growth

Dialogue & debate

• Driven by business and academic innovation

• Need for Local Industrial Strategy to dovetail with

emerging growth and infrastructure picture

• Engage with neighbouring Local Industrial Strategy

development where relevant e.g. sector development

• ‘Co-design’ with government – essential that HMG

have clear understanding of issues & opportunities

• Are we being ambitious enough?

Making the case

• Communications and Advocacy campaign is

crucial

• Fronted by business – with endorsement from

MPs and local partners

• Competitive landscape

• Funding uncertain – clear Business Case

needed

Key milestones

How you can get involved