Chapter 12-economic-performance-and-diversity

Surrey Minerals Plan Environmental Report – November 2009 407
Chapter 12: Economic Performance & Diversity
12.1 Introduction
The economic performance & diversity criterion covers effects on the economic performance of the
county and effects on the composition of the business base, and particularly the development and
growth of new and emerging forms of economic activity.
The criterion covers the topic of ‘material assets’ as required by the European Directive and UK
Regulations on the environmental assessment of plans and programmes.
12.1.1 Receptor sensitivity to mineral working
Mineral working has an important supporting part to play in the county’s economy, by providing the
raw materials that are needed to construct and maintain key physical infrastructure including buildings,
transport networks and utilities, which businesses and other economically active organisations require
in order to undertake their work.
The performance of the economy is constantly changing, and the activities of the minerals industry
could give rise to temporary and reversible effects (in that shortages of local supply could have
implications for the timing and cost of physical development, but would be unlikely to prevent it from
going ahead altogether).
Minerals resources can be obtained from a range of sources, not just those indigenous to Surrey, and
consequently the county’s economy would be moderately sensitive to mineral working.
12.1.2 Relationship to the wider policy context for economic performance &
diversity
The relationship of the Surrey Minerals Plan to the wider policy context (i.e. other plans and
programmes and environmental protection objectives) for the economic performance and diversity
receptor is detailed in the first annex to this chapter (Annex 12A).
The wider policy context covered in the review is composed of the following policies, plans,
programmes and sources of environmental protection objectives listed in Table 12.1. Details have
been compiled of the objectives, indicators and targets that have been set in policy, plans and
programmes at international, European, national, regional and county levels for the performance and
diversity of the economy.
Table 12.1: Policy Context for the Economic Performance & Diversity receptor
International Report on the World Summit on Sustainable Development: Johannesburg, South Africa 2002
European
Sixth Community Environment Action Programme
Renewed EU Sustainable Development Strategy 2006.
National
Enterprise: Unlocking the UK’s Talent (The UK Government’s Enterprise Strategy 2008)
Innovation Nation (The UK Government’s Innovation Strategy) 2008
Securing the Future: the UK Government Sustainable Development Strategy
Quality of Life Counts – UK Government Sustainable Development Indicators
Planning Policy Statement (PPS) 1: Delivering sustainable development
Planning Policy Guidance (PPG) 4: Industrial, commercial development & small firms
Draft Planning Policy Statement 4 – Planning for Prosperous Economies (2009)
PPS 6: Planning for town centres
PPS7: Sustainable Development in Rural Areas
Minerals Policy Statement 1: Planning & Minerals

Regional
South East Regional Sustainability Framework 2008
The South East Plan: Regional Spatial Strategy for the South East of England
Regional Economic Strategy 2006-2016: A Framework for Sustainable Prosperity
County
Surrey Economic Partnership Economic Strategy 206-2011 (Draft Final Version)
Surrey Hills AONB Management Plan 2009
12.2 The State of the County: Economic Performance & Diversity
12.2.1 Economic performance
The contributions to the British economy made by individual producers, industries and sectors are
measured in terms of their Gross Value Added. For Surrey, in 2002 that figure stood at £21,957 billion
(1)
. The county’s economy has exhibited a steady annual growth rate of 3.8% since 1982, exceeding
the annual trend growth rate of the UK (at 2.5%). Growth was particularly strong and sustained
between 1982 and 1988, and from 1992 to 1999. The output of the Surrey economy was forecast to
continue growing above the UK trend growth rate during 2003 and beyond.
In 2003, the single largest sector in output terms was business services, including activities such as
professional services, information technology services, and consultancy. The sector contributed £400
million to the county’s output, almost twice that of the second largest producer in Surrey, the retail
sector. The contributions of the manufacturing industries to the total output of Surrey were modest, the
largest being the paper, printing and publishing sector which contributed £30 million or 1.5% of total
output.
The performance of the Surrey economy, relative to other sub-regions in the South East of England is
highlighted when the levels of Gross Value Added per head of population are examined. In 2002
Surrey exhibited the third highest level of Gross Value Added per head of population in the South
East, with a figure of £20,689. Only Berkshire, with a figure of £25,178 and Milton Keynes, with a
figure of £22,139 performed better than Surrey. The average figures for Gross Value Added per head
of population for the South East region and the UK for the same year were £17,565 and £15,980
respectively (2)
.
House prices can provide another useful guide as to the relative performance of the Surrey economy.
Data from the Land Registry relating to property sales between April 2004 and June 2004 indicates
that the average price of a house in Surrey was £300,647 compared to an average for the South East
region of £213,828.
12.2.2 Economic diversity
A structural analysis of the economy of Surrey undertaken in 2003 examined the potential of those
sectors considered best able to sustain local competitive advantage in terms of both high value output
and diverse and high quality employment opportunities (3)
. That analysis noted that Surrey provided a
particularly strong focus for the knowledge based sectors of the economy, which included the financial
and professional services, and research and development. In terms of employment, the banking,
financial and insurance services sector accounted for 29% of all employees working within Surrey in
2002, closely followed by the hotel, restaurant and distribution sector at 25% of all employees and the
public administration, education and health service providers with 21% of all employees (4)
.
The future growth of the county’s economy is likely to be based on a continued increase in the
demand for the services of the knowledge based and information intensive industries and those
sectors that serve the market for ‘experience’ consumerism (e.g. tourism and recreation).
1
NUTS 3 Regional Gross Value Added (1995-2002), 2004, National Statistics: London
2
Region in Figures: South East, 2005, National Statistics: London.
3
Information drawn from a study by ECOTEC Research & Consulting, 2003.
4
The Surrey Economic Audit 2004, Surrey Economic Partnership.

The high value nature of the Surrey economy is reflected in the presence of a number of large multi-
national companies within the county. Clusters and specialist sectors have also developed within the
county that are competing effectively in the global market place and exhibit significant potential for
future growth and development. Those sectors and clusters include:
• Advanced electronics and engineering and air transport (Redhill & Reigate area)
• Advanced electrical and electronic engineering research and development (Guildford)
• Pharmaceuticals sector (Windlesham in the borough of Surrey Heath)
• Biotechnology industry and food research centre of excellence (Leatherhead)
Surrey is recognised as being a good place in which to do business, and performs well in respect of
the formation and survival of new businesses. Levels of self-employment are relatively high, providing
the foundations for the creation and further development of new micro and small businesses.
The rates of survival exhibited by businesses that are based in Surrey are slightly higher than those
observed across the South East region and the UK as a whole. In Surrey 69.9% of businesses that
registered for VAT in 1999 were still trading in 2002 (3 years on), compared with 69.7% for the South
East region and 66.5% for the UK (5)
.
12.3 Key issues & future challenges for economic performance & diversity
The Surrey economy is robust and growing at a rate in excess of that of the UK economy as a whole.
The aggregates industry is important to the county’s economy because of its role, alongside the
construction sector, in enabling the physical development that is vital for economic growth and
development.
Surrey’s economy is predicated on the knowledge based and service sector industries, with banking,
financial and insurance services accounting for over a quarter of the people who work in the county,
followed closely by the hospitality and catering industries.
Demand for the services of those sectors, and their role in the county’s economy is expected to
continue to grow into the future.
The future implications for the minerals industry of continuing changes in the structure of Surrey’s
economy include an ongoing need for physical infrastructure, and to safeguard the quality of the
county’s environment in view of the growing importance of the tourism and leisure sectors.
12.4 Findings & conclusions for the assessment of the Submission Draft
of the Minerals Core Strategy DPD and the Preferred Options Draft of
the Restoration SPD
The submission draft of the Minerals Core Strategy DPD is composed of six objectives and eighteen
policies that set the strategic framework for the production of mineral resources in Surrey between
2009 and 2026. The preferred options draft of the Restoration SPD does not include any policies, but
does set out preferred options for the restoration of the silica sand preferred area identified in the
Minerals Core Strategy DPD.
The working and processing of minerals is an activity that has the potential to give rise to direct and
indirect impacts on the performance and diversity of the economy, primarily at the local level.
The findings of the SEA and SA for the objectives and policies of the Minerals Core Strategy DPD with
respect to the economic performance and diversity receptor are summarised in Table 12.2
5
The Surrey Economic Audit 2004, Surrey Economic Partnership.

Table 12.2 Assessment Summary for the Minerals Core Strategy DPD
Strategically Significant Effects Adverse Beneficial
High No objectives or policies No objectives or policies
Medium No objectives or policies
Objective 1, Objective 2, Objective 3,
Policy MC1, Policy MC5, Policy MC6,
Policy MC7, Policy MC8, Policy MC9,
Policy MC12, Policy MC13
Low No objectives or policies
Objective 5, Policy MC15, Policy
MC16
Locally Significant Effects
(may require EIA at planning application)
No objectives or policies No objectives or policies
No significant effects
Objective 4, Objective 6, Policy MC2, Policy MC3, Policy MC4, Policy MC10,
Policy MC11, Policy MC14, Policy MC17, Policy MC18
12.4.1 Summary of main opportunities for beneficial effects
The implementation of the policies and delivery of the objectives of the Surrey Minerals Plan will result
in the extraction and processing of mineral resources to provide the raw materials that are vital to the
functioning of the local, regional and national economies, and particularly the activities of the
construction sector.
The Minerals Core Strategy DPD identifies sites at which silica sand would be produced (Policy MC8)
and brick clay would be extracted and processed (Policy MC9), both of which activities would provide
the raw materials required to manufacture a range of products that are important from an economic
perspective.
The Minerals Core Strategy DPD does not identify sites for the extraction of other non-aggregate
minerals or mineral resources, but does identify the circumstances in which building stone might be
exploited within the county, which would contribute to economic activity in the minerals and
construction sectors at a very local level.
12.4.2 Summary of main enhancement measures
The role of the Surrey Minerals Plan is to make provision for the allocation of sufficient areas of land
from which mineral resources that are important to the functioning of the economy can be extracted.
The demand for mineral resources will be determined by the action of the market and macro-economic
forces that are beyond the remit of the MPA to influence. The most significant way in which the
Minerals Plan can influence the economy is by ensuring that sufficient landbanks are allocated of the
key mineral resources found within Surrey to meet anticipated demand for the lifetime of the Plan.
The majority of the mineral resources found within Surrey are important to the economy at the local
and regional levels, primarily as a result of their uses within the construction industry (e.g. sand and
gravel for concrete and mortar, brick clay for bricks and tiles). The silica sand deposits in the north
east of the county within the district of Tandridge are of national important, due to the scarcity in the
UK of this important mineral resource, which is vital to the activities of the glass industry.
12.5 Findings & conclusions for the assessment of the Submission Draft
of Primary Aggregates DPD & the Preferred Options Draft of the
Restoration SPD
The submission draft of the Primary Aggregates DPD is composed of three policies that identify the
locations in Surrey at which primary aggregate resources, including concreting aggregate and soft
sand, will be extracted between 2009 and 2026. The preferred options draft of the Restoration SPD

does not include any policies, but does set out preferred options for the restoration of the primary
aggregate preferred areas identified in the Primary Aggregates DPD.
The findings of the SEA and SA for the objectives and policies of the Primary Aggregates DPD with
Table 12.3 Assessment Summary for the Primary Aggregates DPD
Medium No objectives or policies Policy MA1, Policy MA2, Policy MA3
Low No objectives or policies No objectives or policies
No significant effects No objectives or policies
The Primary Aggregates DPD identifies sites at which concreting aggregate (Policy MA2) and soft
sand (Policy MA3) would be produced and, in some cases, processed which would provide the raw
materials required to manufacture a range of products that are important from an economic
perspective as they meet the needs of the construction industry.
The majority of the mineral resources found within Surrey are important to the economy at the local
and regional levels, primarily as a result of their uses within the construction industry (e.g. sand and
gravel for concrete and mortar, brick clay for bricks and tiles). The silica sand deposits in the north
east of the county within the district of Tandridge are of national important, due to the scarcity in the
UK of this important mineral resource, which is vital to the activities of the glass industry.
12.6 Findings & conclusions for the assessment of the Preferred Options
Draft of the Aggregates Recycling DPD
The preferred options draft of the Aggregates Recycling DPD is composed of three policies that
identify the locations in Surrey at which construction, demolition and excavation wastes will be
processed to produce recycled aggregates between 2009 and 2026.

The findings of the SEA and SA for the objectives and policies of the Aggregates Recycling DPD with
Table 12.4 Assessment Summary for the Aggregates Recycling DPD
Medium No objectives or policies Policy AR1, Policy AR2, Policy AR3
Low No objectives or policies No objectives or policies
No significant effects No objectives or policies
The Aggregates Recycling DPD identifies sites at which temporary and permanent aggregate
recycling facilities (Policy AR1 and Policy AR2) would be developed, and requires that proposals for
aggregate recycling (Policy AR3) have a demonstrable ability to deliver the maximum achievable
range of recycled materials, which activities would provide the raw materials required to manufacture a
range of products that are important from an economic perspective as they meet the needs of the
construction industry.
The majority of the recycled aggregate resources that would be produced at the allocated sites in
Surrey would be important to the economy at the local and regional levels, primarily as a result of their
uses within the construction industry (e.g. recycled materials can be used in foundations and as
hardcore in place of virgin materials).
12.7 Review of findings & conclusions of previous phases of the SEA &
SA of the Surrey Minerals Plan
The main findings of the previous stages of the SEA and SA for the policy, objective, strategic and site
options that have been considered during the preparation of the Surrey Minerals Plan are presented in
the second annex to this chapter of the Environmental Report (Annex 12B).
The Annex covers the findings for the policies and objectives included in the submission versions of
the Minerals Core Strategy DPD and the Primary Aggregates DPD, and the preferred options version
of the Aggregates Recycling DPD and indicates the relationship of those policies and objectives and
the earlier versions of the Plan.

The findings of the SEA and SA for the objectives, core strategy options, policies and policy options
and site selection options considered during the earlier stages (2005, 2006 and 2008) of the
preparation of the Minerals Plan with respect to the economic performance and diversity receptor are
summarised in Table 12.5
Table 12.5 Summary for previous SEA & SA phases for the Economic Performance &
Diversity receptor
Anticipated Effects Surrey Minerals Plan
2005 -
2006 -
Adverse – High
strategic significance
2008 -
2005 Policies MD3 & MD14
2006 -
Adverse – Medium
2008 Policy Option SS3
2005 Objectives 5 & 6, & Policies MC9 & MD15
2006 -
Adverse – Low
2008 -
2005 -
2006 -Beneficial – High
2008
Policy SS1
Silica Sand Site Options 1a, 1b, 2a, 3a & 3b
2005
Objectives 1, 2 & 3, & Policies MD1, MD2, MC3, MC4, MC5, MC6 & MD5
Core Strategy Options 1a, 1b, 1c, 1d,1e, 2a, 2b, 3a, 3b & 3c
Site Option Scenarios 1, 2, 3, 4, 5, 6 & 7
2006 Objectives 1 & 2, & Policies MC3, MD1, MC4, MC5, MC6, MA1, MA2, MA3, MA4 & MA5Beneficial – Medium
2008
Policies MC1, MC2, MC5, MCxx (Brick Clay), MCxx (Oil & gas), MCxx (Gas storage) &
MCx (Rail aggregate depots)
Policy Options RSA1, SS1, SS2, SS4, SS5, BC1, BC2, BC3, BC4, GS1, GS2, RA1, RA2
& RA3
Silica Sand Site Options 1c & 2b
2005 Objective 4 & Policies MD8, MC1, MC2, MD4, MC8 & MD12
2006 Objective 4 & Policies MC8 & MD4
Beneficial – Low
2008 -
2005 Policies MD7, MD9, MD10, MD11, MC7, MD6 & MD13
2006
Objectives 3 & 5, & Policies MD5, MD6, MD7, MC1, MD2, MC2, MA6, MC7, MD3, MC9 &
MD8No strategically
significant effects
2008
Policy MCxx (Other non-aggregate minerals)
Policy Options BS1, BS2, BS3, Ck1, Ck2, Ck3, Ck4, FE1, FE2, FE3, Pt1, Pt2 & OG1
The main conclusion that has been drawn over the course of the SEA and SA process for the Surrey
Minerals Plan with respect to the economic performance and diversity receptor has been that the
implementation of the Plan through the allocation and subsequent development of sites will provide
the raw materials that are essential to the functioning of the economy, and in particular the
The demands of the economy that mineral working and associated activities must respond to have
been addressed within the various iterations of the Minerals Plan through the inclusion of policies that
provide for the allocation of sufficient land to provide landbanks of key mineral resources including
primary aggregate, brick clay and silica sand.

Assessment for the Economic Performance & Diversity Receptor – Surrey Minerals Plan DPDs & SPD
Key
Adverse – low significance Adverse – medium significance Adverse – high significance
Beneficial – low significance Beneficial – medium significance Beneficial – high significance
Could implementation
of the policy affect…
Description of risks & opportunities
Characterisation of
unmitigated risks &
opportunities
Mitigation & Enhancement
Residual
(mitigated) risks
& opportunities
Receptor Economic performance & diversity (Moderate sensitivity)
Objective 1: Reduce
demand for minerals
Growth in the county’s capacity for the recovery and recycling of construction and
demolition waste could help to ensure that a level of self-sufficiency for minerals
supply is retained over the longer term as indigenous stocks of primary aggregate
diminish and the cost of extracting them becomes prohibitive. The scale of the
benefits achieved is likely to be modest in the short term, as Surrey has sufficient
primary mineral reserves to meet projected demand for the lifetime of the plan
although if recycling rates achieve the target proposed for the county by the minerals
policies in the regional spatial strategy of 0.8 million tonnes per year by 2016 the
projected lifespan of the county’s primary aggregate reserves could be extended.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
None recommended – the role of the minerals plan is to provide a framework within
which planning permissions can be granted for sufficient mineral workings to meet
the current and likely needs of the market for primary aggregates and non-aggregate
mineral resources. Future demand can be projected (based on past use and
changes in patterns and methods of usage) but cannot be accurately predicted
which requires that the minerals plan is sufficiently flexible to respond to the needs of
the market.
Moderate strategic
beneficial effect
Objective 2:
Safeguard the supply
of minerals
The commitment to safeguard the county’s reserves of mineral resources from
sterilisation by other forms of development should help to ensure that sufficient
material (up to 34.06 million tonnes of primary aggregate over the life of the plan and
an unspecified volume of other types of mineral resources) is available to meet the
needs of the local economy for physical development.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
the market.
Moderate strategic
beneficial effect
Objective 3: Meet the
need for minerals
The commitment to maintain landbanks for soft sand (7 years of supply at a
production rate of 0.6 million tonnes per year), concreting aggregate (7 years of
supply at a production rate of 0.9 million tonnes per year), silica sand (10 years of
supply) and brick clay (25 years of supply) at the levels required by the minerals
policies in the regional spatial strategy could ensure that supplies of key materials,
including primary aggregates, clays and silica sands are maintained at levels
adequate to meet the needs of the local and regional economies.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
the market.
Moderate strategic
beneficial effect
Objective 4: Address
adverse impacts from
minerals development
on communities and
the environment
No strategically significant risks or opportunities anticipated during the lifetime
of the plan – although the commitment to safeguard (where possible) the county’s
environmental asset base (i.e. landscape, nature conservation interest,
archaeological and historic interest, etc.) from the adverse impacts of mineral working
may be of some benefit at the local level to the tourism, leisure and associated
industries.
No strategically significant
impacts anticipated
The MPA has given a commitment (paragraph 6.3 of the Minerals Core Strategy
DPD) to require the screening of all planning applications for mineral developments
to determine whether they need environmental impact assessment, which would
include consideration of the risk of significant impacts on archaeology and the
historic environment, the natural environment and biodiversity and the landscape.
The MPA has identified archaeology and the historic environment, the natural
environment and biodiversity and the landscape as a key considerations to be taken
into account in proposals for mineral working and associated development (Policy
MC14 the Minerals Core Strategy DPD).
No strategically
significant impacts
anticipated
Objective 5: Address
adverse impacts from
the transportation of
minerals
The commitment to minimise the risks of adverse impacts associated with the
transportation of mineral and derivative products affords the MPA an opportunity to
require operators to take steps that reduce their reliance on road transport as the
principal means of getting goods to the market. A drop in the levels of minerals
related traffic, and in particular heavy goods vehicles, could help to reduce the
incidence of congestion on Surrey’s road network.
Avoidable Indirect &
Regional
Beneficial & Low
significance
the market.
Minimal strategic
beneficial effect
Objective 6: Restore
mineral workings to
the highest standards
No strategically significant risks or opportunities anticipated during the lifetime
of the plan – although the requirement that areas affected by mineral working be
restored would have cost implications, both in terms of the capital outlay associated
with the implementation of the agreed restoration plans and the revenue costs
associated with ongoing aftercare of the restored sites.
impacts anticipated
No mitigation or enhancement measures recommended
No strategically
significant impacts
anticipated

Key
Characterisation of
unmitigated risks &
opportunities
Residual
(mitigated) risks
& opportunities
Core Strategy Policy
MC1 – Spatial strategy
for mineral
development in
Surrey
The spatial strategy for the minerals plan sets the context for the continued working
of primary aggregate, silica sand, and brick clay, the production of oil and gas, and
the storage of gas within the county over the period up to 2026. All the minerals that
would be produced within the county during the lifetime of the minerals plan have
important roles to play in the performance of the local, regional and national
economies. The production of sands, gravels and clays provides the raw materials
that are required by a wide range of industries, but most particularly the construction
industry. Silica sand is a nationally scarce mineral, occurring in very few areas of the
country and being necessary for a number of high quality end uses, including the
production of specialist medical and scientific equipment. The economy of the UK is
still largely carbon based in terms of the types of energy sources that are utilised,
and therefore the production of oil and gas and the provision of facilities for the
underground storage of gas would make important contributions to the country’s
security of energy supply, and consequently to the performance of the economy.
Avoidable, Indirect &
National & International
Beneficial & Medium
significance
None recommended – it would be inappropriate to suggest an increase in minerals
extraction over that proposed by the plan, even though such an approach might be
beneficial to the performance of the local, regional and national economies.
Moderate strategic
beneficial effect
MC2: Spatial Strategy
– protection of key
environmental
interests in Surrey
No strategically significant risks or opportunities anticipated within the lifetime
of the plan – although the commitment to seek to avoid mineral working within or
close to sites of national or higher level nature conservation or geological interest
could help to safeguard the asset base (e.g. landscape, nature conservation interest,
archaeological and historical sites and features, etc.) that is crucial to the activities of
the tourism, leisure and associated sectors.
impacts anticipated
historic environment, nature conservation, and the landscape.
The MPA has identified the landscape, the natural environment and archaeological
and heritage assets as key considerations to be taken into account in proposals for
mineral working and associated development (Policy MC14 (iii) Impacts on
the…landscape…, Policy MC14 (iv) Impacts on the natural environment and
biodiversity, and Policy MC14 (v) Impacts on historic landscapes, sites or structures
and their settings and sites of existing or potential archaeological interest and their
settings, in the Minerals Core Strategy DPD).
No strategically
significant impacts
anticipated
Core Strategy MC3:
Spatial Strategy –
mineral development
in the Green Belt
of the plan – although the commitment to seek to avoid mineral working within the
Green Belt could help to safeguard the asset base (e.g. landscape, nature
conservation interest, archaeological and historical sites and features, etc.) that is
crucial to the activities of the tourism, leisure and associated sectors.
impacts anticipated
historic environment, nature conservation, and the landscape.
No strategically
significant impacts
anticipated
Core Strategy MC4:
Efficient use of
mineral resources
No strategically significant risks or opportunities anticipated during the
lifetime of the plan – a drop in demand for minerals should not give rise to any
major adverse effects in terms of economic performance so long as the change in the
level of consumption is a consequence of a shift in the efficiency with which materials
are used rather than an economic downturn. In the longer term growth in the use of
materials efficient construction and manufacturing techniques could be beneficial to
the diversity and continued development of the economy, as it could create demand
for new knowledge, skills and services.
Although the use of borrow pits would facilitate the delivery of major construction
projects, it should be noted that those schemes would be likely to proceed even if the
use of borrow pits were not feasible, as the necessary mineral resources would be
sourced from elsewhere at, perhaps, slightly greater cost.
impacts anticipated
the market.
No strategically
significant impacts
anticipated

Key
Characterisation of
unmitigated risks &
opportunities
Residual
(mitigated) risks
& opportunities
MC5: Aggregates
recycling
The continued operation of existing facilities for the production of recycled and
secondary aggregate, and the provision of new permanent and temporary facilities
elsewhere in the county would help to maintain supplies of aggregate (providing at
least 0.8 million tonnes of material per year) and meet the needs of the construction
industry for materials, even in the event of a decline of local production of primary
aggregate.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
There is limited scope in terms of the scale of the benefits that the MPA is in a
position to deliver in respect of the goal of increasing the market share of recycled
and secondary aggregates in construction. The MPA has given a commitment (Policy
MC5 (Aggregates recycling) in the Minerals Core Strategy DPD) to make provision
for the facilities and infrastructure necessary to the supply of secondary and recycled
aggregate, but cannot require or enforce the use of such materials. The MPA has
given a commitment (Policy MC4 (Efficient use of mineral resources), in the Minerals
Core Strategy DPD) to work in partnership with the district and borough councils and
the construction and development industries to promote and enable a rise in the use
of secondary and recycled aggregates.
Moderate strategic
beneficial effect
MC6: Safeguarding
The commitment to safeguard mineral resources that are currently being worked or
that could be worked in the future from sterilisation by other forms of development
could ensure the continuity of local supply of key construction materials in the short
to medium term enabling the further development and maintenance of the physical
infrastructure (e.g. workplaces, transportation networks, telecommunications
networks, etc.) that is vital to the functioning of the local economy.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
mineral resources. Future demand can be projected (based on past use and changes
in patterns and methods of usage) but cannot be accurately predicted which requires
that the minerals plan is sufficiently flexible to respond to the needs of the market.
Moderate strategic
beneficial effect
MC7: Aggregate
minerals supply
The commitment to identify sufficient areas of extraction to produce up to 25 million
tonnes of primary aggregate over the life of the Plan should ensure that supplies of
soft sand and concreting aggregate are maintained at levels adequate to meet the
needs of the local and regional economies.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
Moderate strategic
beneficial effect
MC8: Silica sand
The policy makes provision for the extraction of up to 6.2 million tonnes of silica sand
from the preferred area at Pendell Farm near Bletchingley, which would support a
range of industries. The British Geological Survey’s Minerals Planning Factsheet on
Silica Sand advises that the value of UK silica sand sales in 2004 was £67 million
and that the industry employed 550 people (in terms of employees subject to the
provisions of the Mines & Quarries Act) in the same year. The glass industry is the
biggest consumer of silica sand, and in 2004 produced 1.9 million tonnes of container
glass with a value of £615 million, and 1 million tonnes of flat glass with a value of
more than £265 million. In 2004 the special glass sector produced 200,000 tonnes of
glass based products (e.g. lighting, television tubes, oven hobs, specialist medical
and technical or scientific products) worth about £200 million, and the glass fibre
industry produced an estimated 200,000 tonnes with a sales value of £315 million.
Avoidable, Direct & National
& International
Beneficial & Medium
significance
None recommended – it would be inappropriate to suggest any further increase in
silica sand production over that proposed and demand for the resource will be
determined by the needs of the market.
Moderate strategic
beneficial effect
MC9: Brick clay
Provision for the maintenance of a 25 year landbank of brick clay would support the
activities of a range of industries. The British Geological Survey’s Minerals Planning
Factsheet on Brick Clay advises that the total value of sales of clay-based
construction products in 2004 was £632 million, and that the brick clay industry
supports the construction industry that in 2005 undertook £107 billion worth of work
in the UK. It is not known what proportion of UK total production of bricks, and related
products, are manufactured by the brickworks located in Surrey.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
None recommended – it would be inappropriate to suggest any further increase in
brick clay and brick production over that proposed and demand for the resource will
be determined by the needs of the market.
Moderate strategic
beneficial effect

Key
Characterisation of
unmitigated risks &
opportunities
Residual
(mitigated) risks
& opportunities
MC10: Other non-
aggregate minerals
supply
No strategically significant risks or opportunities are anticipated during the
lifetime of the Minerals Plan – Provision for the future supply of building stone in
Surrey would help support the activities of the construction industry, particularly those
businesses specialising in the repair and restoration of historic buildings or those
working with traditional methods and vernacular materials on new build schemes. It is
anticipated that the scale of any economic benefits arising from the provision of local
building stone would be modest when placed within the context of the County’s
economic performance as a whole. The minerals plan indicates that it is not
anticipated that chalk, fuller’s earth or peat would be worked over the plan period.
impacts anticipated
No strategically
significant impacts
anticipated
MC11: Mineral
extraction outside
preferred areas
lifetime of the plan – the policy is unlikely to give rise to the production of
substantial volumes of aggregate or other mineral resources and is not likely to be of
major benefit to the economy.
impacts anticipated
No strategically
significant impacts
anticipated
MC12: Oil and gas
The development of exploration, appraisal or production facilities for oil and gas
within Surrey could give rise to modest economic benefits, as the identification of
resources that could be exploited in the longer term and that would contribute to the
security of energy supplies would be beneficial to the economy. The scale of any
benefit that would be delivered would depend on the extent of the county’s
recoverable resources of oil and gas.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
None recommended – it would be inappropriate for the MPA to set targets for the
exploration, appraisal and potential extraction of the county’s oil and gas reserves as
demand for the resource will be determined by the needs of the market.
Moderate strategic
beneficial effect
MC13: Underground
gas storage
Fossil fuels remain a mainstay of the global economy as the primary source of
energy. The provision of underground storage capacity for natural gas is of
considerable importance to the UK’s security of supply as reserves of North Sea gas
are depleted. The British Geological Survey’s Mineral Planning Factsheet for
Onshore Oil & Gas reports that the UK lags behind fellow members of the EU in
terms of its existing capacity for gas storage (the UK has the equivalent of 12 days
supply, compared with 91 days for France and 77 days for Germany). Any proposals
that would increase domestic capacity for gas storage would have a beneficial effect
on the economy. The estimated storage capacity for two potential sites in Surrey
identified in the BGS Factsheet is equivalent to 1,775 million m
3
or 1.56% of the 114
billion m
3
consumed by the UK on an annual basis.
Avoidable, Direct & National
& International
Beneficial & Medium
significance
None recommended – it would be inappropriate for the MPA to set targets for the
development of gas storage capacity within the county’s stocks of suitable geological
structures as demand for such facilities will be determined by Government policy on
gas storage capacity and the needs of the market.
Moderate strategic
beneficial effect
Core Strategy MC14:
Reducing the adverse
impacts of mineral
working
lifetime of the plan – although the commitment to safeguard (where possible) the
county’s environmental asset base (i.e. landscape, nature conservation interest,
archaeological and historic interest, etc.) from the adverse impacts of mineral
working may be of some benefit at the local level to the tourism, leisure and
associated industries.
impacts anticipated
include consideration of the risk of significant impacts on archaeology and the historic
environment, nature conservation, and the landscape.
No strategically
significant impacts
anticipated

Key
Characterisation of
unmitigated risks &
opportunities
Residual
(mitigated) risks
& opportunities
MC15: Transportation
The commitment to minimise the risks of adverse impacts associated with the
transportation of mineral and derivative products affords the MPA an opportunity to
require operators to take steps that reduce their reliance on road transport as the
principal means of getting goods to the market. A drop in the levels of minerals
related traffic, and in particular heavy goods vehicles, could help to reduce the
incidence of congestion on Surrey’s road network.
Avoidable, Indirect &
Regional
Beneficial & Low
significance
Minimal strategic
beneficial effect
MC16: Rail aggregate
depots
The continued operation of the existing rail aggregate depot at Woking and the
upgrading and bringing into operation of the site at Salfords (to the south of Reigate)
and the potential for the provision of new facilities elsewhere in the county afforded
by the adoption of a criteria based policy would enable the county to maintain
sufficient supplies of aggregate (the proposed developments at the Salfords site
alone would yield 200,000 to 300,000 tonnes of annual capacity for aggregate
import) to meet the needs of the construction industry even in the event of a decline
of local production capacity.
Avoidable, Direct & Local
Beneficial & Low
significance
No further mitigation or enhancement recommended, the need for further rail
aggregate depot capacity will be determined by the demands of the market for
mineral resources that cannot be locally won and that need to be imported from
outside Surrey.
Minimal strategic
beneficial effect
MC17: Restoration of
mineral workings
of the plan – although the restoration and ongoing management of former mineral
sites would have cost implications in terms of both the initial capital outlay required to
deliver the planned restoration scheme, and the revenue costs associated with the
management and maintenance of the restored site.
impacts anticipated
No strategically
significant impacts
anticipated
MC18: Restoration
and enhancement
of the plan – although the restoration and ongoing management of former mineral
sites would have cost implications in terms of both the initial capital outlay required to
deliver the planned restoration scheme, and the revenue costs associated with the
management and maintenance of the restored site.
impacts anticipated
No strategically
significant impacts
anticipated
Primary Aggregates
Policy MA1:
Aggregate
requirements
The commitment to supply up to 25 million tonnes of concreting aggregate and soft
sand between 2009 and 2026 should ensure that the majority of the county
economy’s needs for primary aggregate are met from local supplies thus enabling the
continued physical development that is necessary for economic growth and
safeguard the role of the minerals industry as an economic player.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
Moderate strategic
beneficial effect
Primary Aggregates
Policy MA2: Preferred
Areas for concreting
aggregate
The commitment to supply up to 15 million tonnes of concreting aggregate between
2009 and 2026 should ensure that the majority of the county economy’s needs for
such materials are met from local supplies thus enabling the continued physical
development that is necessary for economic growth and safeguard the role of the
minerals industry as an economic player.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
Moderate strategic
beneficial effect

Key
Characterisation of
unmitigated risks &
opportunities
Residual
(mitigated) risks
& opportunities
Primary Aggregates
Policy MA3: Preferred
areas for soft sand
The commitment to supply up to 10 million tonnes of soft sand between 2009 and
2026 should ensure that the majority of the county economy’s needs for such
materials are met from local supplies thus enabling the continued physical
development that is necessary for economic growth and safeguard the role of the
minerals industry as an economic player.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
Moderate strategic
beneficial effect
Aggregates Recycling
Policy AR1:
Aggregates recycling
facilities
The provision of new permanent and temporary aggregate recycling facilities at the
twelve sites across the county identified in the Aggregates Recycling DPD would help
to maintain supplies of aggregate (providing at least 0.8 million tonnes of material per
year) and meet the needs of the construction industry for materials, even in the event
of a decline of local production of primary aggregate.
Avoidable, Direct &
Regional
Beneficial & Medium
significance
Moderate strategic
beneficial effect
Policy AR2:
at mineral sites
The provision of new temporary aggregate recycling facilities at the seven primary
aggregate preferred areas identified in the Aggregates Recycling DPD would help to
maintain supplies of aggregate (providing at least 0.8 million tonnes of material per
year) and meet the needs of the construction industry for materials, even in the event
of a decline of local production of primary aggregate.
Beneficial & Medium
significance
Moderate strategic
beneficial effect
Policy AR3:
– high value recovery
The requirement that proposals for aggregate recycling demonstrate the capacity to
maximise the range of recyclable materials that are recovered could have significant
implications for the materials efficiency of the economy, by ensuring that the
usefulness of construction, demolition and excavation wastes is optimised, the need
for virgin materials in construction projects is reduced, and the maximum value is
derived from materials.
Beneficial & Medium
significance
Moderate strategic
beneficial effect

Annex 12A:
Policy Context for the Economic Performance &
Diversity Receptor
Relevant policies & strategies for the economic performance & diversity
receptor
The following policies, plans and programmes have been reviewed to establish the wider policy context
for the economic performance and diversity receptor. Details have been compiled of the objectives,
indicators and targets that have been set in policy, plans and programmes at international, European,
national, regional and county levels for economic performance and diversity. Those objectives,
indicators and targets that are relevant to the Surrey Minerals Plan are highlighted in blue in the
following tables.
International Policy
Report on the World Summit on Sustainable Development: Johannesburg, South Africa 2002
European Policy
Sixth Community Environment Action Programme (Decision No. 1600/2002/EC of the European
Parliament & of the Council of 22 July 2002)
Renewed EU Sustainable Development Strategy as adopted by the European Council on 15/16 June
2006.
National Policy
Securing the Future: the UK Government Sustainable Development Strategy
Quality of Life Counts – UK Government Sustainable Development Indicators
Planning Policy Statement (PPS) 1: Delivering sustainable development
Planning Policy Guidance (PPG) 4: Industrial, commercial development & small firms
Draft Planning Policy Statement 4 – Planning for Prosperous Economies (2009)
PPS 6: Planning for town centres
PPS7: Sustainable Development in Rural Areas
Minerals Policy Statement (MPS) 1: Planning & Minerals
Regional Policy
South East Regional Sustainability Framework 2008
The South East Plan: Regional Spatial Strategy for the South East of England
Regional Economic Strategy 2006-2016: A Framework for Sustainable Prosperity
Surrey Strategies & Plans
Surrey Economic Partnership Economic Strategy 2006-2011 (Draft Final Version)
Surrey Hills AONB Management Plan 2009

Annex 12A Policy Context for the Economic Performance & Diversity Receptor
Relevant international, European, national, regional
& local sustainable development objectives
Actions, Indicators & Targets
Provide assistance & mobilise resources to enhance industrial productivity & competitiveness as well as industrial development in
developing countries, including the transfer of environmentally sound technologies on preferential terms, as mutually agreed.
(Paragraph 10(a), page 12)
Provide assistance to increase income-generating employment opportunities, taking into account the Declaration on Fundamental
Principles & Rights at Work of the International Labour Organisation. (Paragraph 10(b), page 12)
Promote the development of micro, small & medium-sized enterprises, including by means of training, education & skill
enhancement, with a special focus on agro-industry as a provider of livelihoods for rural communities. (Paragraph 10(c), page 12)
Provide financial & technological support, as appropriate, to rural communities of developing countries to enable them to benefit
from safe & sustainable livelihood opportunities in small-scale mining ventures. (Paragraph 10(d), page 12)
Provide support to developing countries for the development of safe low-cost technologies that provide or conserve fuel for
cooking & water heating. (Paragraph 10(e), page 12)
Strengthen the contribution of industrial development to poverty
eradication & sustainable natural resource management.
(Paragraph 10, page 12)
Provide support for natural resources management for creating sustainable livelihoods for the poor. (Paragraph 10(f), page 12)
Encourage industry to improve social & environmental performance through voluntary initiatives, including environmental
management systems, codes of conduct, certification & public reporting on environmental & social issues, taking into account such
initiatives as the International Organisation for Standardisation standards & Global Reporting Initiative guidelines on sustainability
reporting, bearing in mind principle 11 of the Rio Declaration on Environment & Development. (Paragraph 18(a), page 15)
Encourage dialogue between enterprises & the communities in which they operate & other stakeholders. (Paragraph 18(b), page 15)
Encourage financial institutions to incorporate sustainable development considerations into their decision making processes.
(Paragraph 18(c), page 15)
Enhance corporate environmental & social responsibility &
accountability. (Paragraph 18, page 15)
Develop workplace-based partnerships & programmes, including training & education programmes. (Paragraph 18(d), page 15)
Continue to promote open, equitable, rule-based, predictable & non-discriminatory multilateral trading & financial systems that
benefit all countries in the pursuit of sustainable development. Support the successful completion of the work programmed
contained in the Doha Ministerial Declaration & the implementation of the Monterrey Consensus. Welcome the decision contained
in the Doha Ministerial Declaration to place the needs & interests of developing countries at the heart of the work programme of
the Declaration, including through enhanced market access for products of interest to developing countries. (Para. 47(a), pp.37-38)
Encourage ongoing efforts by international financial & trade institutions to ensure that decision-making processes & institutional
structures are open & transparent. (Paragraph 47(b), page 38)
Enhance the capacities of developing countries, including the least developed countries, landlocked developing countries & small
island developing States, to benefit from liberalised trade opportunities through international cooperation & measures aimed at
improving productivity, commodity diversification & competitiveness, community-based entrepreneurial capacity & transportation &
communication infrastructure development. (Paragraph 47(c), page 38)
Support the International Labour Organisation & encourage its ongoing work on the social dimension of globalisation, as stated in
paragraph 64 of the Monterrey Consensus. (Paragraph 47(d), page 38)
Globalisation offer opportunities & challenges for sustainable
development. We recognise that globalisation &
interdependence are offering new opportunities for trade,
investment & capital flows & advances in technology, including
information technology, for the growth of the world economy,
development & the improvement of living standards around the
world. At the same time, there remain serious challenges,
including serious financial crises, insecurity, poverty, exclusion
& inequality within & among societies. The developing countries
& countries with economies in transition face special difficulties
in responding to those challenges & opportunities. Globalisation
should be fully inclusive & equitable, & there is a strong need
for policies & measures at the national & international levels,
formulated & implemented with the full & effective participation
of developing countries & countries with economies in
transition, to help them to respond effectively to those
challenges & opportunities. (Paragraph 47, page 37)
Enhance the delivery of coordinated, effective & targeted trade-related technical assistance & capacity-building programmes,
including taking advantage of existing & future market access opportunities, & examining the relationship between trade,
environment & development. (Paragraph 47(e), page 38)

Implement the outcomes of the Doha Ministerial Conference by the members of the World Trade Organisation, further strengthen
trade-related technical assistance & capacity-building & ensure the meaningful, effective & full participation of developing countries
in multilateral trade negotiations by placing their needs & interests at the heart of the work programme of the WTO. (Paragraph 48,
page 38)
Actively promote corporate responsibility & accountability, based on the Rio principles, including through the full development &
effective implementation of intergovernmental agreements & measures, international initiatives & public-private partnerships &
appropriate national regulations, & support continuous improvement in corporate practices in all countries. (Paragraph 49, page 38)
Strengthen the capacities of developing countries to encourage public-private initiatives that enhance the ease of access,
accuracy, timeliness & coverage of information on countries & financial markets. Multilateral & regional financial institutions could
provide further assistance for these purposes. (Paragraph 50, page 38)
Strengthen regional trade & cooperation agreements, consistent with the multilateral trading system, among developed &
developing countries & countries with economies in transition, as well as among developing countries, with the support of
international finance institutions & regional development banks, as appropriate, with a view to achieving the objectives of
sustainable development. (Paragraph 51, page 38)
Sustainable development in a globalising world. (Section V, pages
37-39)
Assist developing countries & countries with economies in transition in narrowing the digital divide, creating digital opportunities &
harnessing the potential of information & communication technologies for development through technology transfer on mutually
agreed terms & the provision of financial & technical support &, in this context, support the World Summit on the Information
Society. (Paragraph 52, pages 38-39)
European Union Sixth Community Environment Action Programme
Encouraging reforms of subsidies that have considerable negative effects on the environment & are incompatible with sustainable
development, inter alia by establishing, by the mid-term review, a list of criteria allowing such environmentally negative subsidies
to be recorded, with a view to gradually eliminating. (Article 3, paragraph 4, page 5)
Analysing the environmental efficiency of tradable environmental permits as a generic instrument & of emission trading with a view
to promoting & implementing their use where feasible. (Article 3, paragraph 4, page 5)
Promoting & encouraging the use of fiscal measures such as environmentally related taxes & incentives, at the appropriate
national or Community level. (Article 3, paragraph 4, page 5)
Promotion of sustainable production & consumption patterns by
effective implementation of the principles set out in Article 2, to
internalise the negative as well as the positive impacts on the
environment through the use of a blend of instruments,
including market based & economic instruments. (Article 3,
paragraph 4, page 5)
Promoting the integration of environmental protection requirements in standardisation activities. (Article 3, paragraph 4, page 5)
Promoting an integrated product policy approach throughout the Programme that will encourage the taking into account of
environmental requirements throughout the life-cycle of products, & more wide-spread application of environmentally friendly
processes & products. (Article 3, paragraph 5, page 5)
Encouraging wider uptake of the Community’s Eco-Management & Audit Scheme (EMAS) & developing initiatives to encourage
companies to publish rigorous & independently verified environmental & sustainable development performance reports. (Article 3,
paragraph 5, page 5)
Establishing a compliance assistance programme, with specific help for small & medium enterprises. (Article 3, paragraph 5, page 5)
Improving collaboration & partnership with enterprises & their
representative bodies & involving the social partners,
consumers & their organisations, as appropriate, with a view to
improving the environmental performance of enterprises &
aiming at sustainable production patterns. (Article 3, paragraph 5,
page 5)
Stimulating the introduction of company environmental performance award schemes. (Article 3, paragraph 5, page 5)

European Union Sixth Community Environment Action Programme
Stimulating product innovation with the aim of greening the market including through improved dissemination of results of the LIFE
Programme. (Article 3, paragraph 5, page 5)
Improving collaboration & partnership with enterprises & their
representative bodies & involving the social partners,
consumers & their organisations, as appropriate, with a view to
improving the environmental performance of enterprises &
aiming at sustainable production patterns. (Article 3, paragraph 5,
page 5)
Encouraging voluntary commitment or agreements to achieve clear environmental objectives, including setting out procedures in
the event of non-compliance. (Article 3, paragraph 5, page 5)
Encouraging the uptake of eco-labels & other forms of environmental information & labelling that allow consumers to compare
environmental performance between products of same type. (Article 3, paragraph 6, page 5)
Encouraging the use of reliable self-declared environmental claims & preventing misleading claims. (Article 3, paragraph 6, page 5)
To help ensure that individual consumers, enterprises & public
bodies in their roles as purchasers, are better informed about
the processes & products in terms of their environmental impact
with a view to achieving sustainable consumption patterns.
(Article 3, paragraph 6, page 5)
Promoting a green public procurement policy, allowing environmental characteristics to be taken into account & the possible
integration of environmental life cycle, including the production phase, concerns in the procurement procedures while respecting
Community competition rules & the internal market, with guidelines on best practice & starting a review of green procurement in
Community Institutions. (Article 3, paragraph 6, page 5)
Considering a voluntary initiative with the financial sector, covering guide-lines for the incorporation of data on environmental cost
in company annual financial reports, & the exchange of best policy practices between Member States. (Article 3, paragraph 7, page 5)
Calling on the European Investment Bank to strengthen the integration of environmental objectives & considerations into its
lending activities in particular with a view to supporting a sustainable development of Candidate Countries. (Article 3, paragraph 7,
page 5)
To support environmental integration in the financial sector.
(Article 3, paragraph 7, page 5)
Promoting integration of environmental objectives & considerations into the activities of other financial institutions such as the
European Bank for Reconstruction & Development. (Article 3, paragraph 7, page 5)
European Union Renewed Sustainable Development Strategy
Sustainable Consumption & Production Overall Objective: To promote sustainable consumption & production patterns. (Document
10917/06 Page 12)
Operational objective & target – Promoting sustainable consumption & production by addressing social & economic development
within the carrying capacity of ecosystems & decoupling economic growth from environmental degradation. (Document 10917/06
Page 12)
Operational objective & target – Improving the environmental & social performance for products & processes & encouraging their
uptake by business & consumers. (Document 10917/06 Page 12)
Operational objective & target – Aiming to achieve by 2010 an EU average level of Green Public Procurement (GPP) equal to that
currently achieved by the best performing Member States. (Document 10917/06 Page 12)
Promote a prosperous, innovative, knowledge-rich, competitive
& eco-efficient economy which provides high living standards &
full & high-quality employment throughout the European Union.
(Key Objective – Economic Prosperity, Document 10917/06 Page 4)
Safeguard the earth’s capacity to support life in all its diversity,
respect the limits of the planet’s natural resources & ensure a
high level of protection & improvement of the quality of the
environment. Prevent & reduce environmental pollution &
promote sustainable consumption & production to break the link
between economic growth & environmental degradation. (Key
Objective – Environmental Protection, Document 10917/06 Page 3) Operational objective & target – The EU should seek to increase its global market share in the field of environmental technologies
& eco-innovations. (Document 10917/06 Page 12)

European Union Renewed Sustainable Development Strategy
Global Poverty & Sustainable Development Challenges Overall Objective: To actively promote sustainable development worldwide
& ensure that the European Union’s internal & external policies are consistent with global sustainable development & its
international commitments. (Document 10917/06 Page 20)
Operational objective & target – Make significant progress towards meeting the commitments of the EU with regard to
internationally agreed goals & targets, in particular those contained in the Millennium Declaration & those deriving from the World
Summit on Sustainable Development held in Johannesburg in 2002 & related processes such as the Monterrey Consensus on
Financing for Development, the Doha Development Agenda & the Paris Declaration on Aid Harmonisation. (Document 10917/06
Page 20)
Contribute to improving international environmental governance, in particular in the context of the follow-up to the 2005 World
Summit outcome, & to strengthening multilateral environmental agreements. (Document 10917/06 Page 20)
Raise the volume of aid to 0.7% of Gross National Income (GNI) by 2015 with an intermediate target of 0.56% in 2010. (Document
10917/06 Page 20)
Promote sustainable development in the context of the WTO negotiations, in accordance with the preamble to the Marrakech
Agreement establishing the WTO which sets sustainable development as one of its main objectives. (Document 10917/06 Page 20)
Increase the effectiveness, coherence & quality of EU & Member States aid policies in the period 2005-2010. (Document 10917/06
Page 20)
Promote a prosperous, innovative, knowledge-rich, competitive
& eco-efficient economy which provides high living standards &
full & high-quality employment throughout the European Union.
(Key Objective – Economic Prosperity, Document 10917/06 Page 4)
Include sustainable development concerns in all EU external policies, including the Common Foreign & Security Policy, inter alia
by making it an objective of multilateral & bilateral development cooperation. (Document 10917/06 Page 20)
Insolvency rules – the Government proposes to change the law by the end of 2009 so that insolvency officers have the discretion
to decide whether or not to place an advertisement in the local press with the aim of reducing the embarrassment & risk of stigma
in the local community & associated fear of failure. (Culture: key policy new proposals, page 32)
Global Entrepreneurship Week – Building on the success of the UK’s Enterprise Week, run annually since 2004, 35 countries will
now join in the first Global Entrepreneurship Week in 2008, involving 14-30 year olds, schools & universities, & a wide range of
entrepreneurs, businesses, & non-profit organisations. (Culture: key policy new proposals, page 32)
Erasmus for young entrepreneurs – Government will support the pan-European pilot programme (currently known as ‘Erasmus for
young entrepreneurs’) to offer cross-border mentoring & work placements in SMEs. (Culture: key policy new proposals, page 32)
Premier League – The Government will work with the English Premier League football clubs to promote enterprise & deliver
enterprise education through the football clubs’ community programmes. This will include working with schools & wider members
of the clubs’ local communities. (Culture: key policy new proposals, page 32)
Women’s enterprise campaign – The Government will run a high level media campaign around women’s enterprise – ‘Spark an
idea’, to be coordinated by Enterprise Insight. (Culture: key policy new proposals, page 32)
Culture: Develop a culture, where talent can be unlocked &
flourish, recognising differences in enterprise culture across
different social groups, reducing fear of failure that prevents
start-ups, & giving everyone the opportunity to be
entrepreneurial. (Paragraph 1.10, page 10)
Over 50s Campaign – The Government will work with Enterprise Insight, PRIME (the Prince’s Initiative for Mature Entrepreneurs)
& South East of England Development Agency to develop a campaign to encourage older people to realise the benefits of
unlocking their talent & exploiting their skills & knowledge to be active in enterprise. (Culture: key policy new proposals, page 32)

Government has committed a further £30 million to extend enterprise education from secondary schools into primary & tertiary
education. (Knowledge & Skills: key policy new proposals, page 46)
Entrepreneur Peter Jones is working with the Government to launch a National Enterprise Academy (NEA). (Knowledge & Skills: key
policy new proposals, page 46)
Government will work with the RDAs to pilot Women’s Business Centres (WBCs). (Knowledge & Skills: key policy new proposals, page
46)
Government will provide enterprise support focused on women through RDAs & Business Link. (Knowledge & Skills: key policy new
proposals, page 46)
A national mentoring network for women in business will be coordinated to recognise & support the distinctive nature of women’s
business start-ups & growth. (Knowledge & Skills: key policy new proposals, page 46)
Government will work through Children’s Centres to make enterprise support & advice more women-friendly & more readily
available. (Knowledge & Skills: key policy new proposals, page 46)
Government will extend & improve the Train to Gain programme. (Knowledge & Skills: key policy new proposals, page 46)
Government will increase its investment in the Leadership & Management Programme for small businesses. (Knowledge & Skills: key
Government will work with the RDAs, & the leading private sector agencies, to establish better links between existing mentoring
programmes & the business support network overall. (Knowledge & Skills: key policy new proposals, page 46)
Government will work with A4e over the next four years to develop a full understanding of good practice in corporate mentoring.
(Knowledge & Skills: key policy new proposals, page 46)
Knowledge & Skills: Ensure that individuals & businesses have
access to & are able to develop the best possible knowledge &
skills to support the growth of their businesses. (Paragraph 1.10,
page 10)
The Government has been working in partnership with the newly formed Institute of Business Consulting to create a new set of
national standards for all organisations involved in the delivery of business support. (Knowledge & Skills: key policy new proposals, page
46)
Extend the eligibility of Small Firms Loan Guarantee (SFLG) to businesses with growth ambitions that are more than five years old,
including but not limited to those who have changed ownership. (Access to Finance: key policy new proposals, page 60)
An additional £30 million capital commitment to stimulate the delivery of mezzanine finance through Enterprise Capital Funds
commitment to stimulate delivery through SFLG. (Access to Finance: key policy new proposals, page 60)
Commitment of £12.5 million for capital fund focused primarily on investing in women-led businesses. (Access to Finance: key policy
new proposals, page 60)
Launch of a third round of Enterprise Capital Funds, with around £50 million available to invest. Further £100 million available to
commit in two subsequent rounds. (Access to Finance: key policy new proposals, page 60)
Access to Finance: Enable new & growing businesses & those
people seeking to exploit their ideas to have access to the
appropriate level of finance & advice. (Paragraph 1.10, page 10)
Commitment that businesses that use invoice/debt factoring are eligible to compete for public sector contracts. (Access to Finance:
key policy new proposals, page 60)

Expansion of the Money Advice Trust’s Business Debtline service. (Access to Finance: key policy new proposals, page 60)
Support & work with British Business Angel Association to develop & build capacity in UK’s Business Angel sector. (Access to
Finance: key policy new proposals, page 60)
Development of a national framework for the delivery of investment readiness support, including targeted support for under-
represented groups such as women. (Access to Finance: key policy new proposals, page 60)
Access to Finance: Enable new & growing businesses & those
people seeking to exploit their ideas to have access to the
appropriate level of finance & advice. (Paragraph 1.10, page 10)
Commitment to explore further non-legislative approaches to tackling late payment. (Access to Finance: key policy new proposals, page
60)
The Government will consult on the introduction of a new system of regulatory budgets for Departments that would set out the cost
of new regulation that can be introduced within a given period – ‘regulatory budgets’ as suggested by the Better Regulation
Taskforce (BRTF) report. (Regulatory Framework: key policy new proposals, page 73)
The Government will introduce a new approach to regulating small firms in line with its ‘think small first’ policy. In the first instance,
it will examine whether small firms can be fully exempted from new regulatory requirements or be subject to simplification of
enforcement. Where this is not possible Departments will seek to work with small firms to design specific approaches for them.
(Regulatory Framework: key policy new proposals, page 73)
The Government will review existing legislation, ensuring the Hampton principles are embedded, introducing new, or amended,
exemptions for small firms &, wherever possible, simplified inspection & enforcement. (Regulatory Framework: key policy new proposals,
page 73)
Regulatory Framework: Renew our focus on reducing regulatory
burdens, recognising that unnecessary or overly complex
regulation can stifle enterprise & have a disproportionate impact
on small firms. (Paragraph 1.10, page 10)
The Government will establish an independent review to make recommendations on ways of ensuring firms can place greater
reliance on official guidance & thereby reduce the cost of compliance. (Regulatory Framework: key policy new proposals, page 73)
Government to investigate the role that innovation vouchers can have in encouraging firms to innovate. (Business Innovation: key
Refocused Small Business Research Initiative (SBRI). (Business Innovation: key policy new proposals, page 85)
Three month trial period for new firms registering on supply2gov.uk. Government will do more to encourage public sector buyers to
register & post opportunities on the site. (Business Innovation: key policy new proposals, page 85)
National Council for Graduate Entrepreneurship to establish university enterprise networks. (Business Innovation: key policy new
proposals, page 85)
Independent review of broadband led by Francesco Caio looking at the possible barriers to any new models for investment.
(Business Innovation: key policy new proposals, page 85)
Innovation in Services project to understand the barriers to innovation & determine how the Government can stimulate & support
innovation. (Business Innovation: key policy new proposals, page 85)
Business Innovation: Reinforce innovation’s role as a driver of
enterprise itself & at the root of all entrepreneurial activity,
complementing the Government’s new Innovation Strategy.
(Paragraph 1.10, page 10)
Intellectual property training programme for all Business Link & UKTI advisers. (Business Innovation: key policy new proposals, page 85)

Each Government Department will include an Innovation Procurement Plan as part of its commercial strategy, setting out how they
will drive innovation through procurement & use innovative procurement practices. (Box, page 26)
Department for Innovation, Universities & Skills (DIUS) will work with the Technology Strategy Board, Office of Government
Commerce (OGC) & with Departments with experience in promoting innovation through procurement to support others to use their
procurement power effectively in support of innovation. (Box, page 26)
DIUS and the CBI will work together to facilitate the interchange of innovation expertise between the private sector & Government
Departments, for example, through secondments & mentoring in innovative procurement & the design of services, products &
processes. (Box, page 26)
Demanding Innovation: Demand drives innovation by
encouraging innovators to meet new, advanced needs. Early
users, whether they be individuals, businesses or Government,
shape innovations in their most important phase of development
& provide critical early revenue. Regulation can help or hinder
innovation by setting stretching standards for new technologies
or constricting freedom to innovate. It the UK is to become an
Innovation Nation, it must complement the supply-side
innovation measures with demand-side policies. (Paragraph 3.1,
page 23) DIUS will reform the SBRI, refocused on technology based research, prototyping this with the Ministry of Defence & the
Department of Health & will extend the revised SBRI to all participating Departments by April 2009.
BSI will undertake an analysis of the role of standards within the service sector & will publish a strategy. (Box, page 39)
BSI will publish a revised standard on the management of innovation for April 2009. (Box, page 39)
DIUS will produce technology roadmaps for the National Measurement System (NMS) Programmes & publish a new strategic plan
to identify & address the metrology barriers to innovation. (Box, page 39)
The UK Intellectual Property Office (IPO) will examine whether there is a role for Government in helping small firms obtain
investment through better reporting of their intangible assets, by the end of 2008. (Box, page 39)
Government’s main task is to maintain framework conditions in
which business can innovate with confidence & to correct
market failures. The UK is a strong performer on innovation &
ranks in the leading group of EU economies; manufacturing,
services & creative industries are all internationally competitive.
The Technology Strategy Board is well placed to support UK
business in retaining a technological & innovative advantage
over competitors, notably through its innovation platforms. We
also posses a world class innovation infrastructure. However,
accessing finance & managing intellectual property can be a
problem for some innovative companies, & there is scope for
Government to create a more integrated escalator of financial
support for business. (Paragraph 4.1, page 31)
By the summer of 2009 all UKTI export & Business Link advisors will receive training from the UK-IPO in advising businesses on
IP management. UK-IPO will provide online support to help small businesses exploit their IP through licensing & other means
which are increasingly important to innovative businesses. This network will be used to promote an awareness-raising programme
on the importance & changing nature of intellectual property. (Box, page 39)
DIUS will maintain the growing investment in UK science & will broaden knowledge exchange between the research base &
businesses into the arts & humanities & service sectors such as the creative industries. (Box, page 48)
The UK-IPO will continue to develop the ‘Lambert’ online toolkit of model university-business licensing agreements which cuts the
costs & complexity of IP transactions. (Box, page 48)
World-class research in the UK is crucial to maintaining
economic prosperity & responding to the challenges &
opportunities of globalisation. Research in universities &
Government research laboratories is not the only source of
knowledge creation but it is an important part of our innovation
ecosystem. (Paragraph 5.2, page 41)
DIUS has commissioned a study to look at how universities should manage IP for their own benefit & for the benefit of the wider
economy. (Box, page 48)
DIUS will assume responsibility for leading & managing the Foreign & Commonwealth Office (FCO) Science & Innovation Network
(SIN). In the future, DIUS & FCO will co-fund this network & DIUS will host a management team of DIUS & FCO staff to oversee
the network’s operation. (Box, page 54)
During 2008 DIUS will produce an international strategy which will draw together inter-related policies within DIUS’ remit,
encompassing higher & further education, skills, research & innovation. (Box, page 55)
Science & innovation are international endeavours. Businesses
are internationalising their R&D, supply chains & customer
bases & adopting ‘open innovation’ models of value creation.
Scientists, engineers & entrepreneurs are increasingly mobile.
(Paragraph 6.1, page 49)
The Technology Strategy Board will develop, as part of its international strategy, a marketing plan to help deliver a step change in
the ability of UK business to compete for grants in EU Framework Programme 7. (Box, page 55)

Chapter 12-economic-performance-and-diversity

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