Robert Hetherington

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Robert Hetherington

• Economic Development Manager
• Oxford City Council

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A Strategic Approach to Economic Growth in the
City

• Clear strategic focus for growth
• Oxford Economic Growth Strategy
• City Deal
• Strategic Economic Plan
• European Investment Strategy
• Focused on enterprise, skills, connectivity and
  place shaping.

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The Oxford Economy - a well known narrative.

• Oxford
• is a national economic asset
• is the engine of the Oxfordshire economy -
  provides about 1/3 of the countys jobs half of
  those who work in city live elsewhere
• offers a very diverse, knowledge based economy
  which is riding the worst of recession - but no
  room for complacency
• is one of the countys growth areas alongside
  Bicester and Science Vale
• Oxfords future economic prosperity
• must build from Oxfords assets and addressing
  known barriers to growth

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City Deal
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Summary of City Deal Approach Deal approach
Necessary Infrastructure creating an accessible
workforce
Housing
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Context of Oxford Area

• The focus on innovation is dependent on the
  supporting infrastructure being in place, through
  skills, transport and housing
• Our central Location, with transport links to
  London, Heathrow, and the Midlands, as well as
  the South Coast and West Country. However, we are
  aware that these links need to be better to bring
  in further business and sustain it.
• The Innovation Arc runs from Science Vale in the
  south, through Oxford, to the development area of
  Bicester in the north.
• It is serviced by rail, and links the motorway
  system as well as the developing London Oxford
  Airport

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City Deal Proposition

• The City Deal programme
• 2,179.4m investment programme
• 1,341.6m private sector investment
• 641.8m public sector investment
• Accelerated housing growth with up to 1,095
  additional houses within the City.
• Net ongoing Jobs 19,055
• Average GVA per job 40,000
• Gross GVA 845.6 m
• Net Ask 196.0m
• Ratio 1 Ask 2.54 GVA
• Capex per job 103,096
• Our Total programme for Growth
• 4.23bn investment programme
• 2.82bn private sector investment
• 1.02bn public sector investment

• Oxford and Oxfordshire has the greatest potential
  of any location in the UK to deliver world
  leading technology and business innovation.
• We intend to establish in partnership with
  government, universities and private sector
  business a Knowledge Economy Spine
• Oxfordshires GVA per capita has tracked the UK
  average (1980-2006) despite our latent potential,
  and we believe that we can accelerate that growth
• Prioritised our key innovation projects, as our
  City Deal Programme, with key infrastructure
  needed to deliver them. Our wider ambition will
  be delivered through the Local Growth Deal
• Without this investment the potential of the city
  region to drive significant and sustainable
  growth of the UK economy will be lost to global
  rivals.

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What will be Delivered

• new innovation and incubation centres
• The Harwell Innovation Hub focused on open
  innovation
• The UKAEA Culham Advanced Manufacturing Hub
  focused on remote handling technologies
• The Oxford BioEscalator focused on the life
  sciences sector
• The Begbroke Innovation Accelerator focused on
  advanced engineering sectors.
• Science Transit Scheme
• Road Improvements
• A40 /A44 link
• Improved access to Harwell

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Oxford Economic Growth Strategy
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Oxford Economic Growth Strategy -

• Oxford
• is the UKs most prosperous, resilient, diverse,
  globally competitive knowledge-based economy
• is a world leader in research, development and
  innovation driven by two universities,
  multi-national companies, and a wide range of
  small companies
• seeks and welcomes global investors and
  businesses serving global markets
• enables and supports growth of new
  start-up/spin-out ventures
• is Oxfordshires primary retail centre and a
  strong international tourist destination
• ensures that young people gain the skills needed
  access to jobs in the city through their
  enrolment in the Citys high performing schools
• offers a readily available supply of affordable
  homes for sale, and for rent
• ..is demonstrating, in practice, how best to
  promote economic growth and establish Oxford as a
  truly sustainable City.

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Key sector strengths

• Automotive industry
• Centre of motorsport valley, strong exporter,
  4,871 jobs
• Publishing
• 100 businesses and 3,500 jobs
• Tourism
• 6th most visited city, 9.5m visitors and 770m
  income
• Retail
• Employ 8,000 and support tourism offer
• Creative and cultural industries
• Underpinned by theatres, museums and vibrant
  music scene
• Professional services
• Employ 10,200 and support local business base

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Barriers to growth

• 7.4 workforce hold no qualifications higher
  than Oxfordshire (6.6) and South East (6.9)
• educational attainment at all ages in state
  schools are below regional and national averages
  
• housing is the most unaffordable location
  outside parts of London this seriously hinders
  recruitment median price of 290,000 higher
  than County or region median price to wages
  higher private rents are higher
• severe congestion, particularly on the A34 and
  A40, weakens Oxfords competitive advantage
• notwithstanding a strong commitment to
  sustainable development, the supply of employment
  land in or adjacent to the city is limited.

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Economic Growth Strategy - Strategic priorities

• Expand knowledge economy
• Support growth of existing companies
• Ensure an ample supply of employment land
• Strengthen city centre retail offer
• Increase value of Oxfords tourism to the region

• 6. Strengthen skills and educational attainment
• 7. Increase the supply of housing
• 8. Secure investment in broadband
• 9. Address environmental challenges from growth
• 10. Invest in transport
• 11. Create single delivery team

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Immediate Opportunities

• Superfast broadband
• Vouchers for business
• Free wifi in public places

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European Structural Funds investment Strategy
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PROPOSED EU GROWTH PROGRAMME 2014-2020 KEY
FEATURES

• A new single EU Growth Programme to be financed
  by ERDF and ESF with a contribution from EAFRD,
  rationalised from 12 separate ones for 2007-13
• LEPs to be the fundamental building blocks
  receiving a 7 year notional allocation giving
  certainty in an uncertain world.
• Less than 5 top slicing? for national
  programmes compared to over 50 in current
  programmes.
• Significant shift away in decision-making powers
  from Whitehall to local level - new
  responsibilities for LEPs (including a broader
  partnership)
• Funds to be more integrated, transparent and
  streamlined under one programme (Managing
  Authorities (ie DCLG / DWP / DEFRA) will hide
  the wiring from LEPs and end beneficiaries as
  far as possible to reduce administrative burdens)
  
• LEPs to identify their preferred EU fund
  investment strategy as part of their wider growth
  strategy, for agreement by the national Growth
  Programme Board (responsible for overall
  programme governance).

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Purpose of Structural Funds

• European Structural and Investment Funds are
  designed to improve economic growth and social
  wellbeing.
• All Member States receive some form of
  assistance.
• The Structural Funds (ERDF and ESF) cover a wide
  range of activities, all designed to improve
  economic competitiveness and employment.

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Allocations Based on Economic Performance and
Population
National Picture Allocation m
England 5,277
Wales 1,833
Scotland 680
Northern Ireland 390
EU STRUCTURAL FUNDS BUDGET IN ENGLAND 3 CATEGORIES OF AREAS EU STRUCTURAL FUNDS BUDGET IN ENGLAND 3 CATEGORIES OF AREAS GDP (as of EU average) Allocation m
Less developed Less developed Less developed Less developed
Cornwall the Isles of Scilly Cornwall the Isles of Scilly 73.2 457
Transition Transition Transition Transition
Cumbria Cumbria 89.5 70
Devon Devon 88.1 65
East Yorkshire N. Lincolnshire East Yorkshire N. Lincolnshire 85.8 123
Lancashire Lancashire 84.9 205
South Yorkshire South Yorkshire 84.5 137
Shropshire Staffs Shropshire Staffs 83.9 217
Merseyside Merseyside 80.2 156
Lincolnshire Lincolnshire 79.8 81
Tees Valley Durham Tees Valley Durham 78.5 277
More developed Rest of country Includes Oxfordshire Includes Oxfordshire Includes Oxfordshire
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Local Allocations
Black Country 177.4
Buckinghamshire Thames Valley 13.9
Cheshire and Warrington 142.2
Coast to Capital 67.3
Cornwall and the Isles of Scilly 592.9
Coventry and Warwickshire 136.0
Cumbria 91.4
Derby, Derbyshire, Nottingham and Notts 249.7
Dorset 47.3
Enterprise M3 45.7
Gloucestershire 38.3
Greater Birmingham and Solihull 255.8
Greater Cambridge Greater Peterborough 75.5
Greater Lincolnshire 133.5
Greater Manchester 415.6
Heart of the South West 118.3
Hertfordshire 69.5
Humber 102.4
Lancashire 266.3
Leeds City Region 391.2
Leicester and Leicestershire 126.3
Liverpool City Region 221.9
London 748.6
New Anglia 94.5
North Eastern 539.6
Northamptonshire 55.0
Oxfordshire LEP 19.4
Sheffield City Region 203.4
Solent 43.1
South East 185.9
South East Midlands 88.3
Stoke-on-Trent and Staffordshire 161.6
Swindon and Wiltshire 43.6
Tees Valley 202.6
Thames Valley Berkshire 28.7
The Marches 113.7
West of England 68.6
Worcestershire 68.1
York and North Yorkshire 97.5
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Minimum spending levels at national level required by the regulations Minimum spending levels at national level required by the regulations Minimum spending levels at national level required by the regulations
CORE THEMES Less Developed Regions Transition Regions More Developed Regions
Innovation At least 50 ERDF must be spent on these 4 themes, of which approx 12 on low carbon ( tbc) At least 60 ERDF must be spent on these 4 themes, of which approx 15 on low carbon ( tbc) At least 80 ERDF must be spent on these 4 themes (of which at least 20 on low carbon)
SME Competitiveness At least 50 ERDF must be spent on these 4 themes, of which approx 12 on low carbon ( tbc) At least 60 ERDF must be spent on these 4 themes, of which approx 15 on low carbon ( tbc) At least 80 ERDF must be spent on these 4 themes (of which at least 20 on low carbon)
Low Carbon At least 50 ERDF must be spent on these 4 themes, of which approx 12 on low carbon ( tbc) At least 60 ERDF must be spent on these 4 themes, of which approx 15 on low carbon ( tbc) At least 80 ERDF must be spent on these 4 themes (of which at least 20 on low carbon)
ICT At least 50 ERDF must be spent on these 4 themes, of which approx 12 on low carbon ( tbc) At least 60 ERDF must be spent on these 4 themes, of which approx 15 on low carbon ( tbc) At least 80 ERDF must be spent on these 4 themes (of which at least 20 on low carbon)
Climate Change Adaptation Lower priority Lower priority
Environmental Protection Lower priority Lower priority
Sustainable Transport Lower priority Lower priority
Employment At least 60 ESF must be spent on up to 4 sub- priorities within these themes At least 70 ESF must be spent on up to 4 sub-priorities within these themes At least 80 ESF must be spent on up to 4 sub-priorities within these themes
Skills At least 60 ESF must be spent on up to 4 sub- priorities within these themes At least 70 ESF must be spent on up to 4 sub-priorities within these themes At least 80 ESF must be spent on up to 4 sub-priorities within these themes
Social Inclusion (at least 20 value of ESF) At least 60 ESF must be spent on up to 4 sub- priorities within these themes At least 70 ESF must be spent on up to 4 sub-priorities within these themes At least 80 ESF must be spent on up to 4 sub-priorities within these themes
Institutional Capacity At least 60 ESF must be spent on up to 4 sub- priorities within these themes At least 70 ESF must be spent on up to 4 sub-priorities within these themes At least 80 ESF must be spent on up to 4 sub-priorities within these themes
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Oxfordshire Allocation by Theme(ERDF)
         
Themactic Objective / Distribution Investment areas Allocation within Theme Annual 7 years (mean)
ERDF 8,600,000   1,228,571  
TO1 Innovation 45 3,870,000 Collaborative networking between institutions 50 1,430,000 276,428
    Commercialisation support 50 1,440,000 276,428
TO1/TO3 Financial instrument   Access to finance fund TO1 900,000 TO3 300,000  
TO3 SME Competitiveness 35 3,010,000 Building growth capacity 50 1,400,000 215,000
    Fostering entrepreneurial culture 50 1,400,000 215,000
TO4 Low Carbon 20 1,720,000 Building low carbon market 50 860,000 122,857
    Non domestic LC technologies 50 860,000 122,857
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Oxfordshire Allocation by Theme(ESF)
Themactic Objective / Distribution Investment areas Allocation within Theme Annual 7 years (mean)
ESF 8,600,000   1,228,571  
Employment / Labour mobility Access to employment 30 2,580,000 Retraining older workers 25 645,000 92,142
    Literacy and numeracy for young people 25 645,000 92,142
    Gender in-balance in technology sectors 25 645,000 92,142
    Enhancing pathways for long term unemployed 25 645,000 92,142
Social inclusion active inclusion (20 mandated) 1,720,000 Early intervention to avoid NEET inc work with families 25 430,000 61,428
    Community Grants scheme 25 430,000 61,428
    CLLD 50 860,000 122,857
Education, skills lifelong learning (50)   Collaborative projects for placements 20 860,000 122,857
    SME capacity for higher skills placements 20 860,000 122,857
    Apprenticeships and traineeships in priority sectors 20 2,580,000 368,571
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Role of Local Enterprise Partnerships in EUSIF

• The LEP has three key roles in this work
• Lead the development of an European Structural
  and Investment Funds Strategy,
• Consult and engage all interested parties,
  including rural interest.
• Develop a pipeline of compliant projects which
  deliver the strategy from late 2014 onwards.

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Oxfordshire Strategic Economic Plan (Growth Deal)
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A Strategy for Economic Growth

• By 2030 Oxfordshire will be recognised as a
  vibrant, sustainable, inclusive, world leading
  economy, driven by innovation, enterprise and
  research excellence.

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Growth Deal Funding - Competitive Pot
Source million 2015 /2016
Local Authority Transport Majors 819
Local Sustainable Transport Fund (Capital) 100
Integrated Transport Block 200
Further Education Capital 330
European Social Fund Match 170
New Homes Bonus 400
Total 2,019
Of which, capital 1,449
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Oxfordshire Growth Deal

• Headington Eastern Arc transport improvements
• Oxford flood defence scheme
• Oxford University Centre for Superconductivity
• Cycle tracks in Science Vale
• Oxford Centre for Technology (Oxford City College
  Blackbird leys Campus)
• Abingdon College New building
• Didcot Rail Station Car Park
• Bicester London Road Level Crossing
• Package worth 108m to 2021
• 16m in 2015/16

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Impacts on Headington
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Bioescalotor
ORC Old Road Campus JR John Radcliffe CH
Churchill NOC Nuffield Orthopaedic Centre WF
Warneford
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• Translate science into business
• Launch pad for sustainable new companies
• Centre for industrial collaboration
• Located on university / hospital site
• Advice and support as well as facilities
• Drug Discovery, MedTech, Diagnostics, TeleHealth,
  Data Analyses

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Strategy for the Eastern Arc

• Delivering a form of high quality rapid transit
  public transport (which could be high quality
  conventional bus, light rail or guided
  trolleybus), serving park and ride sites and
  major employment and housing areas in the Eastern
  Arc
• Working with employers to develop travel plans
  and reduce the availability of car parking for
  staff
• Improving the reliability of local bus services,
  and improving cycling links, to encourage mode
  switch away from car travel for shorter journeys
• Investigating how bus interchange can be improved
• Tackling congestion at key junctions on the ring
  road.