Surrey Connects Lep Eo I


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Surrey Connects - Local Enterprise Partnership - Expression of Interest (Sept 2010)

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Surrey Connects Lep Eo I

  1. 1. Surrey connects Local Enterprise Partnership - expression of interest surrey economic partnership
  2. 2. surrey economic partnership The Rt Hon Vince Cable MP and Rt Hon Eric Pickles MP Department for Business, Innovation & Skills 1 Victoria Street 1 September 2010 It is in areas such as Surrey, therefore, that investment for economic growth will prove beneficial to the Exchequer. London SW1H 0ET With your support, we are aiming for a target of an extra £1billion contribution to the Exchequer. Dear Sirs Surrey’s Local Enterprise Partnership will continue to drive strong outcomes, particularly in three main areas: We strongly welcome the invitation to submit an expression of interest to form a Surrey Local Enterprise Partnership. After reading our expression of interest we hope you agree it is critical that we are fully endorsed as a Local Enterprise Partnership. • infrastructure (with initiatives such as digital inclusion meaning 100% super fast broadband coverage for Surrey) • business development (including higher business survival rates and a target for new business start ups) We are proud of Surrey’s achievements to date and of the invaluable contribution we make to the Exchequer. Surrey has • skills and workforce (which involves increasing the number of people ready for employment at all skill levels) a strong track record of growth and expansion based on our existing platform of success. We have a GVA of £26.5billion, contribute £5billion net per year to the Exchequer and within our economic geography, we have six of the top 25 most Surrey is uniquely placed in the heart of the South East and has close links with areas such as Buckinghamshire, competitive districts according to the UK competitiveness index 2010. Hampshire, West Sussex, East Sussex, Kent, Bracknell Forest, Reading, Slough, Wokingham and Windsor and Maidenhead, as well as the London boroughs of Croydon, Hounslow, Hillingdon, Kingston upon Thames, Richmond We must continue to invest in Surrey’s success to ensure the whole of the UK continues to benefit from our powerhouse upon Thames and Sutton. As outlined in the following expression of interest, we will continue to work collaboratively economy. We must also support Surrey to ensure its economic success does not stall in relation to the rest of the world. with other Local Enterprise Partnerships in the spirit of our vision of ‘Surrey connects’. In order to maximise our Local Enterprise Partnership’s potential we need to leverage full resource participation from central government to meet the challenges that our businesses have already set. Our expression of interest is strengthened by research undertaken by Oxford Economics which showed that a £1billion investment in the South East would yield Rosco Paterson Andrew Povey significantly more return in UK GDP (some £160million), relative to the same investment in the Midlands (£119million), and Chair Leader the North (£76million). Surrey Economic Partnership Surrey County Council 1 2
  3. 3. 1. Surrey Local Enterprise Partnership Surrey has a strong, well-connected, knowledge-driven and wealth-creating goods and services and paying taxes. Surrey acknowledges that it has economy. It supports a diverse business base of local, national and global to adopt a high-growth strategy for business to achieve these aims. companies. Surrey has the potential to drive a world-class regional economy. As significant net contributors to the UK Exchequer, some The Surrey Local Enterprise Partnership will be governed by an £5billion net per year, Surrey partners recognise that they must continue independent private/public board and business chair - reflecting business to work together. The partnership is already strong, and we will build on needs and balancing strategy and delivery requirements with business and it further, by establishing a Local Enterprise Partnership. enterprise at the centre. It will utilise available public resources to unblock barriers to business growth. The intent is to maintain and grow a local economy that is outward looking and well positioned, to support the future economic growth of the Taking advice from key partners in Surrey and neighbouring areas, the UK. The nature of its business base gives Surrey a central position, driven emerging Local Enterprise Partnership vision can be articulated as follows: by its location, as a functional economic area. Surrey’s enviable geographic location, environment, history and cultural assets continue to play an ‘Surrey connects’: important role in shaping its economy. But latest evidence warns us that Surrey’s economy needs to be nurtured. To progress a Local Enterprise Surrey’s pivotal position at the centre of major Partnership in Surrey presents a significant opportunity to corridors of growth means it can optimise enterprise help secure local and national prosperity. opportunities that link the region together. Critical to the successful establishment of the Surrey Local Enterprise Partnership is the leadership taken by business in developing this Surrey’s unique location and superb communication Expression of Interest. This is key to the Local Enterprise Partnership, networks connect us, and our neighbours, to the rest as ultimately it is business who deliver economic development outcomes; of the world and global opportunities. creating jobs, innovating, investing in research and development, buying 3 4
  4. 4. It will be a partnership led by businesses, able to tackle their needs and Surrey’s Local Enterprise Partnership will build on the established private/ help the economy grow, while at the same time strong and articulate public partnership model of the Surrey Economic Partnership. This enough to reach out to work with surrounding functional economic areas: provides a sustainable strategic vehicle, and harnesses a significant business network. Surrey Economic Partnership is chaired and led by business, • through continued joint working with West Sussex deliver the priorities with the direct involvement of global and local businesses, working with of the Gatwick Diamond Initiative1 which the Surrey Economic business representative organisations (Confederation of British Industry, Partnership established Institute of Directors, Federation of Small Business and Surrey Chambers • with West London and Berkshire harness the inward investment and of Commerce), the County Council, Surrey Local Government Association, supply chain spin-offs of Heathrow airport three universities (Surrey, Royal Holloway and the Creative Arts) and the • with Hampshire along the Blackwater Valley grow and maximise the community, voluntary and faith sector. strengths of the Aerospace, Defence and IT sectors. Ultimately, the challenge for Surrey going forward is not to be complacent The Surrey Local Enterprise Partnership will seek ‘pragmatic coalitions’ (ie to rely on past success), but to build on inherent strengths to ensure with these and other surrounding areas, to solve common problems and Surrey’s competitive future and continued high levels of contribution to issues, and to maximise the opportunity of key transport corridors and UK plc. the airports. More can be achieved by working together than alone. 1 Established in 2003 the Gatwick Diamond Initiative is already a successful Tackling issues such as super fast broadband, transport infrastructure collaborative business-led private/public partnership. It aims to facilitate, and needs of small businesses are better dealt with on a wider scale coordinate and lead actions necessary to create the right environment for business growth in the area surrounding Gatwick airport – an area covering by cooperation between Local Enterprise Partnerships. three districts in East Surrey and three in North West Sussex. 5 6
  5. 5. 2. Tangible outcomes In response, Surrey’s Local Enterprise Partnership will take forward the concept and action to establish a ‘New Business Plan for Surrey’, engaging entrepreneurial flair and location for major international companies will increase the contribution to the Exchequer by growing the economy. Surrey exhibits many of the downsides of success; congestion, high house partners to deliver real change and a focus on outcomes. The main Surrey’s partners have identified key actions required to support the prices, pressures on infrastructure and growing socio-economic disparities. towns will be the focus for development of the core knowledge-based delivery of business critical infrastructure, business development and It is vital that private and public sector partners have a shared vision for Surrey economy. Building on Guildford’s continued strength as the to ensure we have the right skills base for business to thrive. the spatial and economic needs of Surrey formed within a strong and UK’s most competitive location outside of London, its innovation base, accountable structure. Surrey’s Local Economic Assessment2 identifies a number of key challenges for the Surrey economy: Tangible outcomes sought from Surrey’s Local Enterprise Partnership • comparator economies are catching and overtaking Surrey’s economic Infrastructure Business Development Skills and Workforce performance • Digital inclusion - 100% super fast • Higher business survival rates • Increasing the number of people ready for • increasing pressure on economic infrastructure broadband coverage for Surrey • Higher rates of R&D spend employment at all skill levels • rising unemployment from a low base, especially for young people • Airtrack delivered • Support for innovation agenda • No NEETs by 20203 • growing importance of the relationship with London • Redevelopment of Gatwick airport station • Stimulation of business creation • Maximise university, education and • large reliance on employment in the public and financial services • Improved road access to the 70 acre Surrey • Active stimulation of inward investment offer business linkages sectors Research Park • Increase Business Angels and venture captial • Develop social enterprise models • increasing environmental pressures • Development of low carbon economy availability • the need for an appropriately skilled workforce • Sector specific support ie tourism, digital • contraction of the working age population. 3 People Not in Education or Training reduced to 2% by 2015, and full participation in education, training and employment by 2020 (at 19 years by 2015). 2 Surrey County Council in collaboration with Surrey Economic Partnership Ltd, Surrey’s Local Economic Assessment Draft for Consultation, July 2010, Surrey’s Local Economic Assessment Emerging Findings, June 2010 7 8
  6. 6. 3. Developing Surrey’s Local Enterprise Partnership It will build on existing strong business relationships, coupled with a robust economic research and intelligence function, developing the existing strong Governance In developing Surrey’s Expression of Interest for a Local Enterprise Following consultation with partners, we propose a Local Enterprise private sector led private/public partnership, and working on the following Surrey Economic Partnership (with a private sector approach and strategic Partnership, business and the public sector have held many conversations Partnership to the current administrative boundary of Surrey, with an strategic objectives: focus to economic development) has operated successfully since 1997, and business meetings across Surrey and with its neighbours. Surrey explicit intention for collaboration with other areas, due to Surrey’s bringing private and public sector partners together to set the shared Economic Partnership has hosted significant workshops with large pivotal location and excellent business connectivity. Many of the issues • economic competitiveness with world-class aspirations and capitalising vision for the economic needs of Surrey. It has also brought resource into numbers of business leaders and other partners to develop a shared that we face overlap with those of our neighbours, such as supporting on Guildford’s competitiveness ranking the county for broadband, innovation, inward investment, skills and getting vision for our Local Enterprise Partnership proposal. Discussions have innovation and enterprise, raising skills at all levels, maximising inward • stimulate the culture of local entrepreneurship creating new businesses people back into work. been supported by innovative use of networking media channels led by investment, and capitalising on the global economic links provided by and jobs for sustainable and diverse business growth Surrey Economic Partnership. Heathrow and Gatwick airports. The Surrey Local Enterprise Partnership • deliver sustainable economic infrastructure: SMART growth, super-fast By using an established base, and transitioning to the Surrey Local will collaborate with the surrounding areas of Buckinghamshire, Hampshire, broadband, roads, rail, and a world-class business support mechanism Enterprise Partnership, this approach will be able to take advantage of Once ‘Surrey connects’ is approved as a Local Enterprise Partnership, we West Sussex, East Sussex, Kent, Bracknell Forest, Reading, Slough, • support a ‘can-do’ response from the public sector on spatial planning new opportunities that emerge from the universities, the social enterprise will confirm the mechanism to deliver the vision and objectives, within the Wokingham and Windsor and Maidenhead, as well as the neighbouring and getting the most out of new investment, such as the Local sector, the 2012 legacy, the two international airports, and the significant parameters of available funding. London boroughs of Croydon, Hounslow, Hillingdon, Kingston upon Investment Plan environmental and leading edge technology, and R&D activity being shaped Thames, Richmond upon Thames and Sutton. • raise productivity and innovation with a focus on open innovation, within Surrey. SMEs, social enterprises, and emerging technologies, tackling barriers to growth • maximise inward investment building on the existing strong locational opportunities with the provision of world class facilities • ensure a skilled workforce and capitalise on existing education strengths. 9 10
  7. 7. Surrey Local Enterprise Partnership - delivering for the UK Surrey LEP . . . Where are we now Strategic Activities for future wealth creation the future response Surrey’s GVA in 2008 = Identification of resources to Innovation Transition of established activity to Surrey Local Enterprise Partnership: £26billion, 15% of the south be re-focussed on Surrey in action east’s GVA. Surrey largest Economic Support Surrey to drive economic recovery for the whole UK net contributor to the resilience Exchequer after London - some £5billion a year Inward investment Global competitiveness Need to keep the engine Needs to be business room of the UK economy focused - rebalancing the Economic research Invest in success oiled economy and intelligence + Business focused projects Surrey enabled for quicker Surrey’s GVA grew by 32% and greater marginal return between 2000-07, but GVA on government investment per capita stagnant Strategic/business critical infrastructure Skills for wealth World class business Increasing strain on Surrey’s creation location - easy access to two infrastructure impeding its international airports and ability to attract investment, strategic road network drive economic growth and Implementing sustain tax revenues the LEA 11 12
  8. 8. Surrey connects Annex 1 - why Surrey? Surrey’s success comes from geographical proximity to London and two European regions (down from 12th in 2004). If the relative rank of the international airports (Heathrow and Gatwick). It has a diverse global South East economy is falling, then it follows that Surrey’s is also falling, business base, three universities (Surrey, Royal Holloway and the Creative although within the UK Competitiveness Index (ranking 12 regions), Arts), highly qualified residents, and a high quality natural environment. for the first time the South East has displaced London into 2nd place. It is an attractive environment for international businesses and has a According to the UK Competitiveness Index 2010, six Surrey districts strong culture of enterprise and innovation. are within the top 25, and the county town of Guildford is deemed the most competitive ‘city’ in the UK (outside London). Surrey also has three Surrey is well recognised as one of the powerhouse economies of the districts within a previously identified growth point, the Gatwick Diamond, UK, with Gross Value Added (GVA) of £26.5billion (around £24,000 per within its administrative boundaries. head of population). Surrey has the largest sub-regional economy in the South East, accounting for 15% of regional GVA, and has an economy Overall, Surrey demonstrates strong performance in a number of areas comparable in size to that of Birmingham and Liverpool combined4. (relative to comparator areas). It has a high proportion of jobs in Surrey is the most densely populated shire county in the South East knowledge-based industries, business start-up rates and residents with with a current population of 1.1m. The core county area is home to high-level qualifications – all of which are important drivers of productivity. over 61,000 businesses, of which over 250 are global companies (the As a result, resident and workplace earnings, as well as total GVA, are largest concentration in the UK outside of London). generally higher in Surrey than the rest of the South East. The World Knowledge Competitiveness Index (2008), shows that the 4 The size of Surrey’s economy is similar to that Birmingham and Liverpool South East of England was ranked 74th out of 145 global regions (down (England’s second and third largest cities by population) combined (based on 2007 from 40th rank in 2004) – London is now 102nd down from 46th data - £26.5bn vs combined total of £27bn respectively). Surrey’s economy is also comfortably larger than that of Liverpool and Leeds (third and fourth largest cities in 2004. The South East region has also slipped within the European combined (£26.5bn vs combined total of £25bn respectively). Competitiveness Index (2006/07) being ranked 16th among 118 13 14
  9. 9. Annex 2 - challenges and opportunities Like many local economies in the 21st century, Surrey is increasingly In championing this dialogue with other local enterprise partnerships, we affected by external events and competition on a global scale. Despite can also look outwards to maximise opportunities from emerging markets Surrey’s past economic successes, in relative terms Surrey is slipping in in China and India, and the transition to a low carbon future. Since growth the competitiveness stakes. We need to focus attention on aspects of follows communications corridors, connecting our activity will maximise the regional, national and international economy where we can have a benefits for all, whether they are NEETs or commuters, owners of urban tangible influence. or rural businesses, micro or multi national, home-grown or from overseas, as well as social enterprises and the voluntary sector. The largest employment sector in Surrey is currently finance, business and insurance. The sector with the biggest losses of employment in Our vision recognises that some connections needs to be faster, bigger Surrey 1998 – 2008 was manufacturing, transport and communications. and better, such as fast speed broadband, and connectivity by rail Now a re-balancing from the public sector to private sector is implied. (including freight), air and roads. We recognise the opportunity for high This is welcomed, but given the public sector accounts for 24% of Surrey’s growth among our large base of small businesses5, so they can reap employment base, we need to ensure opportunities for employment the benefit of international supply chains, and continue to enhance the in the private sector arise in response to avoid unnecessary and costly county’s reputation for entrepreneurship and high growth potential. worklessness. We need to generate significant added value and maximise our returns on both public and private sector investment in Surrey. Collectively we can make much more of the economic development resource in Surrey 5 In Surrey 99.5% of businesses are small and medium enterprises. Of these Surrey has a relatively low level of medium-sized businesses, with only 2.3% of its businesses falling across the private and public sectors. Together we can also champion the into the 50-199 employees category. dialogue with government on key business barriers that are stifling growth. 15 16
  10. 10. Mark Pearson Chief Executive Surrey Economic Partnership Ltd T: 01483 685230 E: Susie Kemp Assistant Chief Executive Surrey County Council T: 020 8541 9008 E: Designed by Surrey County Council Communications CS1901/AS/09/10