SOLENT LOCAL ENTERPRISE PARTNERSHIP TRANSFORMING THE SOLENT ECONOMY

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SOLENT LOCAL ENTERPRISE PARTNERSHIPTRANSFORMING
THE SOLENT ECONOMY

• Anne-Marie Mountifield
• Chief Executive, Solent Local Enterprise
  Partnership (LEP)
• Informing Hampshire , April 25 th 2014

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The Solent LEP Who we are?

• The Solent LEP was formed after the Government
  offered local areas the opportunity to take
  control of their future economic development.
• It is a locally-owned partnership between
  businesses and local authorities and plays a
  central role in determining local economic
  priorities and undertaking activities to drive
  economic growth and the creation of local jobs.
• Our fully-elected board of 15 directors, with a
  private sector Chairman, comprises business, the
  Further Education and Higher Education sector,
  three unitary authorities, eight district
  councils and one county council.
• Registered as a company limited by guarantee, we
  were incorporated on 18 March 2011.

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• Solent Economy Headlines

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The Solent Economy Overview

• The Solent area is an internationally-recognised
  key economic hub anchored around the three
  International Gateways, the Isle of Wight, the
  two cities of Portsmouth and Southampton, the M27
  corridor and the Solent waterway.
• Economic output equates to 48.5bn (GVA of
  23.7bn), with over 50,000 businesses operating
  in the area, supporting 485,000 full-time
  equivalent jobs.
• At the heart of our economy are the two cities of
  Portsmouth and Southampton and their associated
  ports and three leading Universities. Together
  these two cities provide nearly 39 of
  high-skilled jobs in the Solent and contribute
  37 of our total economic output.
• The maritime and marine sector accounts for
  20.5 of our GVA and provides 40,000 jobs
  locally, and supports over 3,000 businesses.
  Over the period to 2025 these sectors are
  projected to grow by 5 in the Solent.
• The Solent sub-region also plays a significant
  role in advanced manufacturing with significant
  clusters linked to our key economic assets of the
  Port of Southampton, Portsmouth Naval Base and
  the marine and defence cluster.

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The Solent Economy Overview
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Solent LEP Strategic Economic Plan the do
nothing scenario

• Solent is forecast to grow at 2.8 per annum and
  will continue to lag the average annual UK GVA
  growth rate of 2.9 per annum and 3.0 per annum
  for the South East.
• The area will continue to be dependent on public
  sector employment and large employers making it
  vulnerable to business failure and public sector
  cuts.
• Manufacturing is forecast to decline. By 2030,
  manufacturing is expected to contract by 20.6
  with the shedding of 9,900 jobs.
• Increasing levels of congestion in the Solent
  area will prevail. This will restrict future job
  creation and there is a potential loss of GVA of
  1.3 per annum by 2025.
• A lack of available space for expansion and
  development - stalled sites and significant
  infrastructure requirements will block the
  delivery of two major strategic housing sites and
  employment land to support the growth of the
  international gateways and the maritime sector.
• Significant tracts of prime development land and
  waterside access are owned by the MoD and will
  not be put to productive economic use,
  constraining the growth of the Port and the
  marine and maritime sector.
• Demographic change and replacement demand will
  place significant pressures on the labour market
  and this will inhibit growth
• Poor achievement at key stage 4, particularly in
  STEM subjects will result in significant skills
  deficits

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• Solent LEP Strategic Economic Plan and Local
  Growth Deal Headlines

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Our Priorities

• The LEP has six strategic priorities
• Supporting new businesses, enterprise and
  ensuring SME survival and growth
• Enabling infrastructure priorities including land
  assets, transport and housing, reducing flood
  risk and improving access to superfast broadband
• Establishing a single inward investment model to
  encourage companies to open new sites in the
  region, supported by effective marketing
• Investing in skills to establish a sustainable
  pattern of growth, ensuring local residents are
  equipped to take up the jobs that are created and
  businesses can source local skills and labour to
  underpin growth
• Developing strategic sectors and clusters
  (interconnected groups and businesses) of marine,
  aerospace and defence, advanced manufacturing,
  engineering, transport and logistics businesses,
  low carbon and the visitor economy establishing
  the area as a business gateway, at both local and
  international levels and developing local supply
  chains
• Building on our substantial knowledge assets to
  support innovation and build innovative capacity
  in the Solent area to stimulate growth in Solent
  businesses and in new high growth sectors,
  particularly linked to our HE excellence.

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Solent LEP Strategic Economic Plan Priorities

• Transforming Solent, our Strategic Economic Plan
  builds on our comparative economic advantages and
  has prioritised interventions that will promote
  this area as a leading location for the marine,
  maritime and advanced manufacturing sectors both
  at home and more importantly in the global
  marketplace. The key focal points are
• The critical role of the connectivity of the
  Solent with our wider UK and global markets.
• Overcoming physical constraints to growth through
  the assembly of public (especially MOD) and
  private land, which will support the development
  of housing and employment sites.
• Providing an appropriate housing offer.
• Addressing our skills shortages and deal with
  educational under-achievement at key stage 4 and
  skills deficits in STEM.
• Investing in the business base to address the
  Solents poor performance in SME business
  start-up and survival, by supporting new
  businesses and our supply chains.

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The Strategic Economic Plan (SEP) and Local
Growth Deal

• A 1.8bn proposal, with
• 100m local contributions
• 1.4bn private sector leverage
• 300m Local Growth deal funding ask
• An ask for greater influence over key levers
  affecting local growth and some freedoms and
  flexibilities
• It demonstrates a wider commitment to growth and
  goes beyond what is directly managed under the
  Local Growth Fund and it will deliver 3.1 GVA
  growth per annum and an increase in productivity
  of over 6,800 per job

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• Solent LEP Strategic Economic Plan and the role
  of key local partners some examples

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Proposed Capital investment for skills
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• Further information see
• http//solentlep.org.uk/downloads