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Surrey Connects proposal 2011


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Surrey Connects proposal 2011

  1. 1. Surrey ConnectsSurrey Connects Forward throughSmart Economic Growth Page 1 of 16 August 2011
  2. 2. Surrey ConnectsSurrey Connects: Forward through Smart Economic GrowthExecutive SummarySurrey has a strong economy and an excellent environment. It is simultaneously the mostwooded county in England and also the largest contributor to the national economy outsideLondon. 73% of Surrey is designated as green belt and yet the county has a higherannual output than Birmingham.The county has an enviable location and good road and rail connections. It is on theshoulder of London, with both Heathrow and Gatwick airports on its borders. One third ofthe M25 runs through Surrey and much of the South East and London is within easycommutable distance.Surrey has a highly skilled workforce. More than 70% of its residents are educated to NVQlevel 2 or higher.This unique combination of advantages brings considerable challenges. Surrey is a highlydesirable place to live, but house prices are very high and there is a shortage of affordablekey worker housing. The County’s road and rail network are heavily congested with someof the highest levels of traffic in the UK. The combination of the greenbelt and previousdevelopment means that meeting the aspirations of the business sector and residents fornew development will be a challenge.Smart Economic Growth will help to achieve a sustainable Surrey rather than growth atany cost.Smart Economic Growth is extracting ‘more from less’. It means using technology, andinnovative ways of working to increase productivity without damaging the quality of life orthe environment in Surrey. Surrey Connects will optimise the potential of people, land,space and technology. A focus on sustainability creates business value, equally in timesof economic difficulty as in periods of growth. It does this by driving innovation that caninform a market-leading position.This future growth of Surrey’s economy must be carefully targeted and directed to makethe most of the county’s intrinsic strengths without adding to its problems. In particular,Surrey needs Smart Economic Growth – a focus on innovation, technology andknowledge-based industries. In an already overcrowded county, the focus will be on highvalue/ low volume sectors, new business start-ups, IT, financial services, pharmaceuticalsand corporate headquarters. This approach will add considerable economic value withoutputting further strain on the already pressurised transport networks and housing market.Businesses and local authorities in Surrey have come together to form Surrey Connects.The aim of this new partnership is to achieve Smart Economic Growth in Surrey, with theambition of doubling the real value of Surrey’s economy to £52 billion by 2030, withoutdamaging the county’s unique advantages of environment, location and strong transportlinks. Page 2 of 16 August 2011
  3. 3. Surrey ConnectsOur ambitionBy 2030, Surrey will have doubled the value of its economy to £52bn. To achieve thisSurrey Connects will be the exemplar Local Enterprise Partnership (LEP) for SmartEconomic Growth.Surrey Connects will accelerate the growth of Surrey’s key sectors by driving innovation,enterprise and global competitiveness.Surrey Connects will: grow Surrey’s innovative and knowledge economy. create the most educated and flexible workforce in Europe. make Surrey the best place in the UK to start, finance and grow a business ensure Surrey is recognised globally as a world-class sustainable business location.Smart Economic GrowthSmart Economic Growth is extracting ‘more from less’. It means using technology, andinnovative ways of working to increase productivity without damaging the quality of life orthe environment in Surrey. Surrey Connects will optimise the potential of people, land,space and technology.Surrey Connects will create the right conditions for business to grow. Surrey’s already hasa number of intrinsic assets. A diverse range of businesses – with a strong knowledgebase, highly skilled residents, and a dynamic Higher and Further Education sector – withthree world-class universities. Surrey also has attractive environment and offers a goodquality of life. Surrey has locational advantages with proximity to London, adjacency totwo global airports and pivotal position on the strategic road and rail network. Like otherareas in the southeast, Surrey’s economic influence is complex and extends well beyondits boundaries. Global Competitiveness Driving Enterprise 100% super fast broadband coverage Higher business survival rates Promotion of Surrey as a inward investment Stimulation of business creation location Delivery of flexible workspace to accommodate Delivery of major infrastructure projects – new businesses through Transport for Surrey Getting the right local business support offer Smart Economic Growth Knowledge Economy Innovation Culture Development of a world-class business/ Higher rates of R&D spend management school Support for innovation agenda Increasing the number of people ready for Increase of patent/ IP applications employment at all skill levels Development of the Community of Innovation Maximise university, education and business and the Ambassador Academy linkages through the Surrey Employment & Skills BoardSmart Economic Growth is a new and evolving approach. Surrey Connects will explore,understand, and then drive forward, what this means in practice for economic developmentacross Surrey. It may include new forms of development and the application of local Page 3 of 16 August 2011
  4. 4. Surrey Connectsauthority housing, transport and planning powers in new ways. The aim of SurreyConnects is to create a new space in which business and local government can cometogether to develop and implement this approach.This challenge is not unique to Surrey – it is, we believe, shared by Hertfordshire,Buckinghamshire, much of Berkshire and many other areas in and close to London.However, Surrey is the only would-be LEP to identify Smart Economic Growth as theabsolute priority and the primary focus for its business plan.By adopting Smart Economic Growth as the driver for future economic success, we wouldsee Surrey Connects as a trailblazer LEP; one that will support the development of jobs inkey growth sectors, thereby providing the necessary skills to meet the challenge forsustainable growth. This challenge transcends LEP boundaries; Surrey Connects willpioneer the practical application of Smart Economic Growth to the benefit of other LEPs.Our areaWith a resident population of 1.1m, annual output of £26.5bn and approaching 600,000jobs, Surrey’s economy is sizeable and impressive. It generates more value than theeconomies of Birmingham (£20.1bn), Liverpool (£8.6bn) and Leeds (£17.8bn). Surrey isthe single largest net contributor to the Exchequer (some £6bn), second only to London.Surrey is bigger than other edge-of-London and single upper tier authority areas with acounty-based LEP – bigger than Hertfordshire and almost twice the size of Oxfordshire.Surrey therefore has scale. With scale comes huge potential impact in affectingaccelerated and sustainable economic growth.Businesses, people, investors and our elected politicians recognise Surrey as a place, notas an administrative unit. Surrey’s already well established businesses, ranging from 250 Page 4 of 16 August 2011
  5. 5. Surrey Connectsinternational corporates through some 60,000 successful SMEs, are happy to identifySurrey as their home.Surrey is both a key component of the wider southeast economy and a functionaleconomic area in its own right. It has substantial daily in-out commuting flows and verystrong business-to-business linkages. With immediate access to two international airports,global connectivity is a defining feature of economic life within the county. Surrey is hometo many multinational corporate HQs including BP, Siemens, Pfizer, Unilever, Proctor andGamble, McLaren, Electronic Arts, Toyota, Sony, and Samsung Electronics.Surrey enjoys a well qualified workforce with 39% of the resident working age populationqualified to NVQ Level 4 (degree level) and above. 73% are qualified to at least NVQLevel 2 (increasingly the minimum for employability). Only 7.8% of Surrey’s working agepopulation has no qualifications. Surrey also provides a skilled workforce for London andits neighbouring areas, in excess of 190,000 workers out commute, and 145,000 workerscommute into Surrey.Currently, over half of all jobs in Surrey are in the top occupational categories: managersand senior officials; professional occupations; and associate professional/ technicaloccupations. Over the next 20 years, there is be a further shift towards the higher endoccupations, as knowledge based sectors drive innovation and enterprise. SurreyConnects will develop young people to enable them to gain sustainable employment anddevelop their careers.Our aspiration is that by 2015, all of Surrey’s 16-19 year-olds should be in education,employment or training.This means that Surrey’s businesses will be able to find local people with the right mix ofskills, which in turn will reduce road congestion problems, as fewer employees willcommute into Surrey from further afield. Our Further Education colleges will have animportant role to play in progressing skills levels. Supporting economic growth throughproductivity improvements, a key element of smart growth, means that similar levels ofGVA growth can be achieved through better use of the Surrey workforce.Surrey’s unique spatial position encompasses three interlinked functional economies(north into London and Heathrow Airport, east into Coast to Capital and Gatwick Airport,and west into Hampshire/ Enterprise M3). These three economies are different from eachother. All are facing future challenges and a proactive – but a tailored approach to SmartEconomic Growth is essential for future success.It is for this reason that Surrey Connects is strongly supportive of Enterprise M3 in thecontext of west Surrey, and Coast to Capital with its focus on the east of the county. Byworking together we can improve economic development in a more strategic way.Enterprise M3, Surrey Connects and Coast to Capital will then form a strategic partnershipthat stretches from the Thames Valley to the South Coast. Each LEP will clearly have itsown identity and priorities. Each will also be able to specialise in particular areas, such asSurrey Connects focus on Smart Economic Growth, so that the combination is strongerthan the sum of its parts. Page 5 of 16 August 2011
  6. 6. Surrey ConnectsThe Drivers for Smart Economic GrowthSurrey’s success and intrinsic assets have created a number of problems. The county hashigh levels of traffic congestion, expensive housing and a lack of affordable housing, whichleads to the importing of key workers. These challenges have been amplified by Surreybeing the most densely populated county in the south east. At the same time 73% ofSurrey designated as green belt compared to 16% of the southeast as a whole.The high quality environment limits the availability of land for new housing or businessdevelopment this means a high cost of land for development and premises. The relativelyhighly skilled workforce and low levels of unemployment mean that Surrey is not attractivefor sector that require large amounts of land and relatively lower skilled workers.Surrey’s rate of economic growth is being outpaced by comparable regions. Faced withthis challenge, the Surrey business community and its public sector partners arecommitted to marshalling the resources of the county to secure innovative, sustained andsustainable economic growth. We believe that the creation of a LEP, Surrey Connects,will act as a catalyst in this process.Central to the challenge of securing the sustainable economic growth of Surrey is theconcept of Smart Economic Growth. The LEP will make this concept a reality. It will needto deploy its full range of powers and duties to support economic growth, whilst mitigatingadverse impacts of development. But that alone will not be enough. Delivering SmartEconomic Growth will require a new form of collaboration between business and localgovernment.A new form of alliance between business and the public sector is needed. SurreyConnects will secure engagement and effective dialogue between business and localgovernment. This will allow business to have a greater say in how local government usesits statutory functions to promote economic growth. For example Surrey Connects willprovide business with a strong voice in strategic planning, along with a clear role infacilitating transport and infrastructure investment. For its part, the public sector will bringtogether economic development operations to shepherd resources to affect change.Surrey Connects, with high quality business leadership and expertise, has the potential tocreate the conditions in which that collaboration can happen.To achieve the Smart Economic Growth ambition Surrey Connects will focus its efforts onits prime growth sectors, through Driving Innovation, Enterprise and GlobalCompetitiveness, and capitalising on Surrey’s Knowledge Economy. This in turn will helpaccelerate the growth of our knowledge economy, which is important to the overallsuccess of Surrey, the greater southeast and UK plc. Page 6 of 16 August 2011
  7. 7. Surrey Connects SMART ECONOMIC GROWTH Global Competitiveness Driving Enterprise Knowledge Economy Innovation CultureInnovation CultureSurrey has an established history of innovation and delivering innovative results.Innovation is the key to delivering the necessary solutions for the ambition of SmartEconomic Growth; the Department for Business, Innovation and Skills defines innovationas ‘the process by which new ideas are successfully exploited to create economic, socialand environmental value’; Surrey has a demonstrable track record in this, withentrepreneurial, R&D, service and manufacturing activity that has included significantpublic and private sector investment: Motorsport and aviation: from the birthplace of British motorsport; the R&D and manufacture of the world’s first vertical take-off and landing (VTOL) jet, the Hawker Harrier, though to the development of space satellites. Military vehicles: The Defence Evaluation and Research Agency site at Chertsey – which specialised in tank design, and technical and engineering advice, to concept design, evaluation and in-service approval of vehicles. Food and drink: Leatherhead Food Research – the food research organisation founded to support the global food and drink sectors in Marketing, Technical analysis and research through to market data and regulatory guidance – and Campden BRI, at Nutfield, which has built on its scientific base to become the foremost provider of scientific support and technical services to the brewing industry worldwide. Life sciences/BioMedical: The Pirbright Laboratory is the government research establishment investigating diseases in farm animals and is an international reference laboratory for the diagnosis of diseases in an emergency. Computer gaming: Guildford and the Surrey Research Park is fast becoming the central hub of computer gaming in the UK. A number of the smaller successful game studios (i.e. Bullfrog, Criterion Software and Lionhead Studios) have been acquired by global brands (EA Games and Microsoft). Space: The Mullard Space Science Laboratory (MSSL) – part of the University College London – was established in Dorking in 1966; it has an international reputation for excellence and has participated in over 35 satellite missions and over 200 rocket experiments. MSSL has the unique capability of designing, building and testing instruments and other spacecraft systems on site. Page 7 of 16 August 2011
  8. 8. Surrey ConnectsSupport for innovation and high growth companies is currently through the network ofInnovation & Growth Teams, and Surrey Connects will endeavour to continue this support(including the community of innovation, coaching for high growth, access to finance andthe Ambassador Academy) to make sure its companies can continue delivering for UK Plc.Surrey Connects will support the creation of a dynamically skilled and flexible workforcethat meets the needs of Surrey businesses. Served by responsive universities, localcolleges and training providers. Surrey Connects will build on the strong links between thethree universities – University of Surrey, Royal Holloway - University of London and theUniversity of the Creative Arts – science, research and local industry. In particular we willsupport the skills needed to support our Smart Economic Growth strategy and its globallycompetitive sectors. This will be done through a reinvigorated business led SurreyEmployment and Skills Board, which will report to, and be supported by the SurreyConnects Board. This will focus on building the necessary skills to drive an innovativeeconomy, and make optimum use of the available workforce, and also engage with thespecialist colleges i.e. College of Law and The Academy of Contemporary Music.Global CompetitivenessSurrey has a mission to be a world-class economy. But, in global terms Surrey is slippingin the international competitiveness stakes. The World Knowledge Competitiveness Index(2008) shows that the southeast of England was ranked 74th out of 145 global regions(down from 40th rank in 2004). If the relative rank of the southeast is falling, then it followsthat Surrey – as a major component - is also falling. Working in partnership withneighbouring LEPs our international competitors are:Surrey Connects will work to retain, nurture and grow businesses in its globally competitivetarget sectors, as the foundation for Smart Economic Growth. Surrey Connects will deliverkey economic infrastructure projects, including one of the fastest broadband networks inEurope by 2013; this will enable Surrey businesses to innovate and both create andaccess new markets. Surrey Connects will take control of the work of Transport for Surrey– improving pan-Surrey connectivity to deliver the rail hubs of Woking and Redhill,progress sustainable transport solutions (including Electric Vehicles and charging pointinfrastructure).Surrey Connects will work with the newly focused UKTI in promoting Surrey and attractingand retaining new businesses, notably firms with stable or rising market shares in theirparticular sector. It will seek to generate high value inward investment, mainly from theBRICs (Brazil, Russia, India and China). This will mean generating new high quality jobs Page 8 of 16 August 2011
  9. 9. Surrey Connectsin Surrey, as well as strengthen the capability of Surrey businesses to grow their exports.The rise of inland Chinese cities, such as Zibo Zhoucun with which Surrey has aMemorandum of Understanding for cultural and commercial development, brings a freshopportunity for mutual economic growth and cooperation.The focus on Smart Economic Growth this will help to achieve a sustainable Surrey ratherthan growth at any cost. This will also provide a vehicle for working with existingemployers to retain them within the county, as well as attracting new smart companies toSurrey with a focus on sustainability which creates business value, equally in times ofeconomic difficulty as in periods of growth. A new inward investment offer will be createdproviding the opportunity for Surrey to build a national and global reputation as the UKcentre of sustainable excellence. ‘Sustainable Surrey’ will promote more efficient use ofexisting resources – when the five capital stocks of natural, human, social, manufacturedand financial capital are equally balanced, the greater the likelihood of wealth beinggenerated in a sustainable fashion. For example, the need for innovation and imaginativesolutions to fill, and re-use of existing empty office accommodation – which is a growingissue across the county – and the re-use of previously developed land.A recent and pioneering report 1 found that the UK is the global leader for e-commerce andthat UK businesses are actively using the Internet to expand their sales overseas. Thereport found that the UK Internet economy was worth £100 billion in 2009, representing7.2% of UK GDP – more than construction, transport or utilities – and that this share isexpected to grow to 10% of GDP by 2015. Critically, the report found SMEs that are high-web users experience higher growth and more international sales than those that are lessactive Internet users. Surrey Connects will provide access to superfast broadband to allbusinesses and residents in the county by 2013, to: stimulate the creation and development of new enterprises, particularly in rural areas help rebalance the Surrey economy through supporting export growth and international expansion drive better supply chain efficiency enable superior business interaction with customers. enable a flexible workforce, reduce the need to travel and the need for more office space enable more people either to work from home or work remotely.Driving EnterpriseSurrey has a long tradition of entrepreneurship supported by a strong record of newbusiness creation over a number of years. Surrey’s annual rate of business start-ups per10,000 adult population averaged 54 between 2000 and 2007, compared to a southeastand UK figure of 38. Surrey is home to an estimated 60,000 workplaces, of which around53,000 are VAT or PAYE registered enterprises. The vast majority of Surrey businesses(88%) are micro businesses employing fewer than 10 people.To build on our history of entrepreneurship, Surrey Connects will help small and mediumsized Surrey businesses to start and thrive, through better and more targeted businesssupport and improved access to finance. As a first step, businesses will be asked whatsupport is most needed and how this is best provided and funded locally.1 The Connected Kingdom: How the Internet Is Transforming the UK Economy, Boston Consulting Group, Oct 2010 Page 9 of 16 August 2011
  10. 10. Surrey ConnectsKnowledge EconomyThe main factors to growing a knowledge economy are people, intellectual capital,property/ infrastructure, and money and business expertise. Within Surrey, land andlabour are both in short supply, hence the focus for Surrey Connects on Smart EconomicGrowth.Surrey’s boroughs and districts are among the most competitive in the UK, based on thepercentage of knowledge-based businesses. Six of the 11 Surrey districts are in the top25, with Elmbridge ranking sixth out of 380 districts, with 36% of all businesses beingknowledge-based. Woking ranks 10th with 34%, Surrey Heath ranks 17th with 32.6%,Waverley ranks 18th with 32.5%, Guildford 19th with just over 32% and Epsom and Ewellhas almost 30%.The UK Competitiveness Index (a composite measure of competitiveness broader thansolely percentage of knowledge-based businesses) rank cities, and, in 2010, rankedGuildford as the most competitive centre in the UK outside London. Indeed, Guildford iscited in the study as ‘being one of the most important sites for high-technology andknowledge-based economic activity’. Hence, Guildford will be the focus for developmentof the core knowledge-based Surrey economy, building on Guildford’s continued economicstrength, its innovation base, entrepreneurial flair, world-class university and location bothfor major international companies and high growth start ups on the Surrey Research Park.Growth SectorsOur important growth sectors (both in terms of GVA and employment) are:Computing, professional services and banking and finance are sectors in which Surreyperforms well in terms of productivity (at £77.6k per job, £56.1k per job and £107k per jobrespectively in 2010). Other key growth sectors include retailing, distribution, construction,other business services and miscellaneous services – these consist of lower productivityjobs (albeit still above the UK average) but currently account for 38% of Surrey’s GVA.Supporting these sectors will assist Surrey in rebalancing its economy. Attracting, Page 10 of 16 August 2011
  11. 11. Surrey Connectssupporting and advancing the development of supply chains to support the growth sectorswill be vital.Computer Games Industry: In 2008, the UK computer games industry generated £2bn inglobal sales, and ranked third in the global development league. But it has since slippedto sixth place. A strong computer games cluster exists in Surrey, which is home toElectronic Arts, Kuju Entertainment, Ubisoft and Media Molecule. Surrey Connects willseek to enable this sector to grow further and to avoid the relocation of these companiesoverseas, as has happened in recent years with some UK studios, such as Eidos, whichdeveloped the TombRaider franchise. The games industry is part of a wider creative andcultural arts sector across SurreyAerospace: The UK has the second largest aerospace industry in the world. Key playersin this sector are Surrey Satellite Technology Ltd (SSTL) and the Mullard Space ScienceLaboratory (MSSL). SSTL, is the world leader in small satellite technology; it started in1985 as a commercial spin off from the University of Surrey, and has become a globalplayer in its own right, demonstrating the active links in Surrey between innovation,research and industry. SSTL is part of a wider cluster involving BAe and QinetiQ bothbased in Farnborough. QinetiQ is a member of the Surrey/ Hants Community forInnovation and Growth and, along with SSTL, is one of its big business ambassadors.Pharmaceuticals: The UK has the third-highest share of global pharmaceutical R&Dexpenditures. This sector represents a key element of Surrey’s economy, with a Novartisresearch centre in Camberley and the HQ for Pfizer’s UK operating business in Tadworth.Advanced Manufacturing: The McLaren Group, based in Woking, embraces a collectionof niche, hi-tech companies each maximising the benefits of the global name andreputation that McLaren has established in the cutting edge technology sport of Formula 1.Through the application of the principles of total commitment, quality and excellence, theMcLaren Group has established itself at the forefront of British engineering andtechnology.Stingray Geophysical was established in early 2006 to commercialise fibre-sensingtechnology licensed from QinetiQ, the UK and Europe’s largest science and technologyorganisation. Solutions based on this technology is assisting oil companies to maximisethe recovery of oil from their producing reservoirs. Stingray is based on the SurreyResearch Park in Guildford.Electrical and Mechanical Engineering: In delivering a sustainable and smart economy,low carbon transportation is vital. Frazer-Nash Research, in Mytchett, is developing DigitalHybrid power trains, and Gordon Murray Design, in Shalford, is a world leader inautomotive design with complete in-house capability for design, prototyping anddevelopment – in ‘an efficient and innovative way’.Financial and Business Services: This is a significant sector within Surrey in terms ofemployment and value, with companies such as Esure, Friends Provident and Bank ofAmerica (Merrill Lynch), Thompson Ecology, are based in the county. A substantialnumber of Surrey’s highly skilled residents commute to London to work within this sector.It is important that Surrey is a place in which knowledge and technology based firms cangrow and prosper. Surrey Connects will ensure early stage investment finance and high Page 11 of 16 August 2011
  12. 12. Surrey Connectsgrowth and leadership coaching is available to knowledge-based businesses with thecapacity and will to grow. We will also ensure that our growth sectors have access to askilled workforce so that growth prospects can be realised. Surrey Connects will do this, inpart, by facilitating education and business partnership activities.However, we will not neglect the diversity of sectors and skills which contribute to theSurrey economy. For example: the tourism sector provides not only for leisure, andfriends and family tourism, but also supports a significant business visitor economy; thereare a range of energy (oil & gas) related companies in Surrey, and a number of smalleroilfield services companies; and the Voluntary, Community and Faith sector provides adiversity of services to meet needs; and there are emerging opportunities that socialentrepreneurs and enterprises will fulfil.In meeting the challenges we face, our focus must not be diluted or fragmented, if Surreyis to achieve its ambitions. Surrey’s economy competes on a global scale, thus there is aneed for cohesion across Surrey to ensure there is advocacy for the whole of the countywhen it comes to investment decisions and to advance economic growth across all ofSurrey. The geographical boundaries of existing LEPs are less important than creatingappropriate structures that enhance Surrey’s ability to complete against the world’s mostsuccessful economic regions; as a largest net contributor to the Exchequer, this is vital forthe future prosperity of our businesses and residents and for those of the UK as a whole.Surrey Connects: Tangible OutcomesSurrey Connects will deliver tangible outcomes to advance the Surrey economy. Thefocus for economic development will be Surrey’s core knowledge and innovation base, itsentrepreneurial flair and its location for major international companies. For example:100% superfast broadband coverage, higher business survival rates, development of aworld-class business/management school, and higher rates of R&D spend and venturecapital investment. In taking forward the Smart Economic Growth principle, SurreyConnects will work with local partners on the regeneration plans of individual town centres.Importantly, Surrey connects will need to understand and map the rising threat from keyglobal competitors, some of whom may draw investment away from Surrey. Global Competitiveness Driving Enterprise Higher business survival rates 100% super fast broadband coverage Promotion of Surrey as a inward investment Stimulation of business creation location Delivery of flexible workspace to accommodate Delivery of major infrastructure projects – new businesses through Transport for Surrey Getting the right local business support offer Smart Economic Growth Knowledge Economy Innovation Culture Development of a world-class business/ Higher rates of R&D spend management school Support for innovation agenda Increasing the number of people ready for Increase of patent/ IP applications employment at all skill levels Development of the Community of Innovation Maximise university, education and business and the Ambassador Academy linkages through the Surrey Employment & Skills Board Page 12 of 16 August 2011
  13. 13. Surrey ConnectsThe Added Value of Surrey Connects as a LEPTo achieve Smart Economic Growth will require full and creative business leadership. Itwill also demand the full array of local government powers and levers in relation tohousing, planning, skills, transport and the environment. Surrey Connects LEP is the rightvehicle for this. It will provide the space for the dialogue and joint work that hitherto hasnot happened. It will also provide the focus on Smart Economic Growth that is not beingcovered by neighbouring LEPs.Surrey Connects is therefore the key to a new relationship between business, the countyand district councils and other partners, if business leadership along with the full range oflocal government’s statutory powers is to be directed to develop and implement SmartEconomic Growth.Significantly, four Surrey districts (Spelthorne, Runnymede, Elmbridge and Epsom andEwell) that border London, and that are heavily influenced either by the economy of thecapital and/ or the presence of Heathrow Airport, do not currently sit within the geographyof an approved LEP. LEP COLLABORATION – ADDING VALUE TO DELIVERYSmart Economic Growth is essential if the Enterprise M3 (which includes the Surreydistricts of Guildford, Woking, Waverley and Surrey Heath) and Coast to Capital (whichincludes the Surrey districts of Mole Valley, Reigate and Banstead and Tandridge) LEPsare to achieve their priorities.Surrey Connects will work with these and other LEPs (notably the London EnterprisePartnership and the Thames Valley, Berks LEP, for example, on surface access toHeathrow Airport as a significant proportion of the airport’s workforce commutes fromSurrey) to ensure that Smart Economic Growth is delivered. Surrey Connects will not seekto compete with the other LEPs, but will work with them both to ensure genuine synergies,and that arrangements are put in place so that the four Surrey districts not currently in aLEP are linked to their programmes, when appropriate. Both Surrey businesses andSurrey County Council are represented on the boards of Enterprise M3 and Coast toCapital. Page 13 of 16 August 2011
  14. 14. Surrey ConnectsSurrey Connects will create additional and catalytic actions that will accelerate sustainableeconomic growth. These actions will be developed through partnership working, andthrough a number of action groups that will give the necessary focus to achieve theambition.Our businesses have confirmed that a strong need remains for a Surrey-wide LocalEnterprise Partnership, to ensure all businesses in Surrey can be part of a business ledpartnership that will drive forward Smart Economic Growth.Surrey Connects will work with the private sector to bring forward projects that areattractive to the market or address market failure.While the Surrey economy is performing well, we know it can do better. The county’sbusiness community and its public sector partners are determined to shift gear and rise tothe economic challenge. At several consultation events over the last 12 months, there hasbeen a clear enthusiasm from the business community that the collective resources of thecounty are to be marshalled behind a concerted and ambitious effort to secure sustainableeconomic growth. The overwhelming view was that the establishment of Surrey Connects– a LEP for the county – was the key to galvanising action to enable Surrey to realise itsfull potential through Smart Economic Growth.This conclusion was reached in the knowledge that two existing LEPs – Enterprise M3 andCoast to Capital – already cover parts of the county.Governance and DeliverySurrey Connects will be governed by an independent private/ public Board and with abusiness Chairman – reflecting business needs and balancing strategy and deliveryrequirements. With business and enterprise at the centre, it will utilise available publicresources to unblock barriers to business growth and develop shared deliveryarrangements for the local economy to increase job and wealth creation.Surrey established a business-led Shadow Board, in April 2011, for Surrey Connects; thishas utilised the existing infrastructure and partnership arrangements across Surrey toensure that a fully operational LEP can be established by the autumn of 2011.For Surrey Connects, the governance arrangements are being designed with a number ofimportant objectives in mind: to secure the contribution both of the small and medium sized enterprises, national and international businesses in the county to craft a new relationship between the public and private sectors in order to lead the realisation of Smart Economic Growth to make a virtue of the fuzzy boundaries between Surrey Connects, Greater London and the Coast to Capital, Enterprise M3, Thames Valley Berkshire LEP and the Gatwick Diamond.The shadow board has overseen the development of this revised Surrey Connectsstrategy and the appointment processes of a prominent business chair, and board. TheBoard will comprise 15 members (a business chair, seven business representatives, three Page 14 of 16 August 2011
  15. 15. Surrey Connectsrepresenting the public sector (county and district councils), two from the key BusinessRepresentative Organisations, and two representing Higher and Further Education).The first meeting of the full Surrey Connects board will take place in September 2011.The Board will set the strategic ambition for, and oversee the delivery of Surrey Connects.Themed project groups will be established to drive forward key activities, and a detaileddelivery plan will be developed by the new Board and local delivery partners. Headline Ambition Smart Economic Growth Global Knowledge Driving Innovation Key Drivers Competitiveness Economy Enterprise CultureAn annual Surrey Connects Forum will report to partners and stakeholders on the deliveryof the business plan and overall progress towards meeting the strategic ambition.The Board will manage a newly created economic development budget of £1m per annum,which is being provided by Surrey County Council. Business having identified a priorityproject to safeguard local jobs on the Surrey Research Park, the first two years of this fundwill be used to improve access to the Park, which is seen as a key factor in staff retention.The full scheme cost is £4m and this demonstrates a unique public/private partnershipscheme with Surrey University. Further projects will be supported in future years.Surrey Connects will take a direct role in the development of transport improvements bysteering Transport for Surrey. This will give Surrey Connects a real and tangible influenceover the county’s strategic infrastructure.Working with Government is key to ensuring that Surrey Connects delivers in achieving itsambitions. We will build on the existing strong relationships with Department for Business,Innovation and Skills; Department for Communities and Local Government, UK Trade &Investment, Department for Transport, Department of Environment, Department forCulture Media and Sport. Page 15 of 16 August 2011
  16. 16. Surrey ConnectsGetting GoingHaving had its economic wake up call, business and local government in Surrey are keento get going. The overwhelming view at the consultation events, referred to above, wasthat a start should be made now.We would welcome government endorsement for Surrey Connects.We will know when we have succeeded in our mission of Smart Growth Economy whenwe have… secured the necessary levels of investment in economic infrastructure maintained and improved its above trend economic growth levels businesses that are innovative and creative and are prepared to: invest in raising skill levels work together to tackle labour supply problems reduce their environmental footprint aspire to having a good quality of life for all.Appendices 1. List of Supporting Businesses / Local Authorities/ Organisations for Surrey Connects 2. Selected Quotes from the Supporting Businesses / Local Authorities/ Organisations 3. Local Economic Assessment – Executive SummaryContactsMark Pearson Iain ReeveChief Executive Assistant DirectorSurrey Economic Partnership Strategy, Transport & PlanningSurrey Technology Centre Surrey County CouncilSurrey Research Park County HallGuildford Penrhyn RoadSurrey GU2 7YG Kingston upon Thames Surrey KT1 2DN Page 16 of 16 August 2011