Economic Development Strategy June 2006

Transcription

1 Strategy June 2006

2 Foreword We believe it is essential that South Holland has a thriving economy, one where local people can find well paid work that suits their personal circumstances. We are aware that we have a traditional agriculturally based economy which is susceptible to many factors beyond our control. We want to help to diversify the local economic base and in so doing make South Holland more sustainable in the long term. We are facing a number of competing demands on our scarce resources. Following a recent review of the Council s Corporate Plan, Housing has emerged as the Council s highest priority for the immediate future. The traditionally low wages available in the district, combined with the national and local rise in house prices, has given particular emphasis to the need for affordable housing. An on-going challenge of recent years has been the effective support of non-uk migrant workers within the district putting additional strain on limited affordable housing stock. Diversifying the economy is the Council s second most important priority in its Corporate Plan. We want South Holland to be more than a satellite for Peterborough or Kings Lynn. We want to reduce out-commuting for work and to be able to offer suitable employment choice locally. We can support the economy not only through direct contact and support with businesses and our partners but most importantly, by ensuring we support suitable employment development through our land use planning and other policies. The Strategy seeks to achieve that balance. We hope that in the future local people will find well paid enjoyable work closer to their homes and that those jobs offer the sort of challenges and prospects that will be a credit to the area. Contents 1 Introduction 2 About South Holland 3 Vision and Priorities Priority 1 Help create an environment in which existing businesses can grow Priority 2. Support the start-up and location of new businesses in South Holland Priority 3: Generate a high quality of life so that people will want to both live and work in the district Priority 4: Work with partners to tackle issues holding back economic growth 4 The Economy of South Holland 5 Working with communities and other stakeholders 6 Resources 7 Action Plan 8 onitoring and Review Appendices page Appendix 1 Appendix 2 Appendix 3 Links to further information Consultees SWOT analysis of the South Holland Economy Gary Porter Leader South Holland District Council Terry Huggins Chief Executive South Holland District Council

3 1 Introduction South Holland District Council (SHDC) does not have a specific statutory duty to undertake economic development activities. However, in the Local Government Act 2000 all local councils were given legal powers to allow them to safeguard the economic, social and environmental well-being of their areas. It might be argued that there was little need for this legislation in South Holland, as for many years the Council has been delivering the right environment for business growth through its land use planning functions. SHDC also has a considerable history of supporting the local economy through initiatives such as town centre management, tourism promotion, control of parking provision, supply of small industrial business units and ensuring its commercial areas are environmentally clean. In addition, the Council has supported the annual flower parade; a major event which has given the District an international profile. South Holland has benefited from considerable private sector investment during the last five years, including new retail outlets in and around Spalding and Holbeach and two new power stations, one in Spalding and one at Sutton Bridge. However, despite this, the most important business sectors for the district are still the traditional ones of agriculture, horticulture, food production, retailing and short-break tourism. The district is a profoundly rural area, where the population is one of the sparsest in the East idlands. Certainly the district has an over reliance on the food industry which faces considerable international challenge. The food sector also generally offers poor rates of pay, uses little advanced technology and consequently demands low levels of skill. Over time this has had an adverse impact on South Holland s economy. The Council has recognised that it needs to continue to do all that it reasonably can to encourage the local economy to diversify and so generate quality jobs for local people. Its Local Plan has provided employment land across the district and polices that will support suitable growth. South Holland s housing market is buoyant and is heavily influenced by Peterborough. However the seasonal nature of the local economy, combined with the sheer volume of temporary jobs generated, has given rise to a considerable demand for migrant workers who are mainly sourced from Eastern Europe and who still need to be fully integrated into local communities. The district s schools have good academic achievements, but it is lacking in further or higher education provision and consequently loses its more able younger people to centres offering more diverse employment and training opportunities. The district is a popular place for people to retire to and the number of larger detached houses in the local market shows the potential spending power of this age group. SHDC has produced this Strategy as its response to the issues that the district is facing. The Council seeks to become more proactive in its support for its local business base, and to find out and provide local information that will assist future sustainable development. This strategy provides information about the local economy and, 3

4 based on this information, the Council has decided to pursue four priorities that it hopes will deliver the type of change that will benefit the district s economy. We acknowledge that economic development cannot be undertaken in isolation. The diagram on page 3 demonstrates how the economic development strategy will have a positive impact on other Council and partner activity. The overall purpose of this strategy is for the Council to support the provision of quality jobs, goods and services, of benefit to its residents. The strategy s Action Plan details how this will be achieved. 4

5 2 About South Holland South Holland is a sparsely populated rural area, set in the south of Lincolnshire, in the Fenland sub-region of the English east midlands. As well as its role as one of Lincolnshire s districts, it has many economic links across county and regional boundaries into Rutland, Nottinghamshire, Cambridgeshire and Norfolk. In particular there are many direct links with the city of Peterborough to South Holland s immediate south. The eastern boundary of the district is the unspoilt coastline of the Wash. Some facts about the district: The area consists of 74,238 hectares made up of small rural communities and five towns: Crowland, Holbeach, Long Sutton, Spalding and Sutton Bridge. The district population is 79,400 (id-2003 population estimates) One third of the population live in the administrate centre of Spalding. In 2002 the average population density was 107 people per kilometre compared to 207 for the east midlands region and 380 for England as a whole. In the 20 years between 1982 and 2002 the population of the district grew by 27% and this growth is set to continue. The Census 2001 showed and average age of South Holland s population as 42.8 years against an average for England and Wales of The id-2003 population estimates showed 5% of resident population were children under five and 25% were of retirement age. The equivalent figures for England and Wales overall were 6% children and 19% of retirement age. In South Holland 3% of the resident population aged years were school pupils or full-time students (Census 2001) compared with 7% of the population of England and Wales. In the academic year 2003/04 57% of pupils in Lincolnshire achieved 5 or more GCSEs graded A* to C compared to an average for England of 54%. The Census 2001 showed 97% of the resident population being white British. The district has had full employment for many years and relies on a significant community of migrant workers to support the seasonal agricultural economy of the district, however the exact number if unknown. The Indices of ultiple Deprivation rank South Holland district at 210 out of 354 English districts, thus giving it a marginally above average score. The mean gross annual earnings of people living in South Holland are lower than the national figure at 20,396 compared to 23,400 (Annual Survey of Hours and Earnings (ASHE) 2005). Sources of data used in this strategy (and potential further reading) are noted in Appendix 1. Political and management structures within South Holland South Holland is a district council located in the county of Lincolnshire and within the administrative region of the East idlands Government Office. The council has 38 elected embers made up of: Conservatives 26 Independent 10 Others 2 Political direction and policy is driven by a Cabinet, with a number of working groups in support. Aspects of the operational requirements of the economic development function are progressed through the Capital programme group, the Risk anagement group and the Spalding Town Forum. South Holland District Council recognises that economic development is a complex, cross-cutting activity. There are close working relationships between the economic development team, the planning service, property services and community development. In addition, wherever possible, the Council works with its external partners to support and grow the local economy. 5

6 3 Vision and Priorities Our vision is for South Holland to be a thriving, living and working rural community 6 The South Holland District Council Corporate Plan aims to develop and promote its vision through four themes, and within this it has some specific objectives for its economic development strategy: PROVIDING to provide a safe, secure and healthy place to live. Provide high quality affordable housing - it is essential for workers to be able to live close to their place of work and so reduce reliance on commuting by car, especially when local wages are below the national average. DEVELOPING to develop a thriving rural community. Improve the diversity of employment - the district has an over-reliance on the food production sector and needs to grow higher paid and higher quality work opportunities. In so doing it may help reduce out commuting for work in Peterborough. LEADING to be a leading edge authority providing value for money, quality services. LISTENING to listen and involve the community, and work with partners. Improve access to and delivery of customer services - SHDC is host to a range of partners at its Spalding offices that also deliver economic development services for local people. By acting in this way SHDC can provide a central hub of information for local people and help cut confusion in terms of provision. Priorities Within that context, the Council s Key Priorities for its economic development strategy are to: 1 help create an environment in which existing businesses can grow 2 support the start-up, and location, of new businesses in South Holland 3 generate a high quality of life so that people will want to both live and work in the district 4 work with partners to tackle issues holding back economic growth. These are our priorities because these are the priorities of the people of South Holland, the businesses already choosing to operate here and our partners. They have been agreed based upon: the need to develop our Strategy in a way that is consistent with our corporate objectives and with other policies and strategies, including our Local Plan and our financial plans. consistency with other service priorities. consistency with the objectives of the Community Plan consultation with local people, businesses and partners during the finalisation of the strategy - the section working with communities and other stakeholders provides details of the consultation adopted for this strategy, while Appendix 2 lists those partners who responded directly. collation of a range of research and knowledge about the local economy, and South Holland s economic role within the Fenland sub-region.

7 How the Strategy fits in Diagram 1 shows how the development strategy fits in with the Council s objectives and plans. The Strategy is informed by and informs other key policies and strategies. The policy framework is a holistic set of documents that provide an integrated Corporate Plan. United Kingdom national and local economic polices are increasingly shaped by international trade. Given the central role of the economy to the UK way of life, it is little wonder that many government departments and agencies as well as other organisations have a key influence on domestic economic policies. For example the government through the Department of Trade and Industry (DTI) looks at how the UK competes in a global marketplace one in which China has just joined the World Trade Organisation and countries such as India are producing 3 million graduates a year. In addition to its role in import and export control and advice and international trade, the DTI also provides funding for the national Business Link network, Regional Agencies and science and innovation support which impact on the delivery of domestic economic development. The government also intervenes with the operation of the domestic market in terms of payment for employment. The Department for Work and Pensions (and bodies such as the Child Support Agency) works closely with employers and employees through the delivery of personal benefits such as pensions, and with support for people who are looking for work through the Jobcentre Plus network. Despite that, the government has delegated the delivery of much of its local economic activity to either its Regional Government Offices or its network of Regional Agencies. The East idlands Agency (EDA) measures its success in terms of the regional economy s performance against other regions in Europe. A long standing aim of EDA has been to reach the top 20 in European ranking; it is currently in 28th position. At the time of preparing this strategy EDA s Regional Strategy (RES) was being renewed with consultation closing on 18th April The information quoted in later parts of this strategy is taken from the consultation copy of the RES. In order to respond to very local need, such as that in the South Holland district, EDA has asked sub-regional partnerships to co-ordinate local economic development work; the one supporting South Holland being Lincolnshire Enterprise. In land use planning terms South Holland is included in the regional spatial strategy and the forthcoming Regional Plan, which will establish the levels of growth for the Region and so for the districts within it. 7

8 Priority 1 Help create an environment in which existing businesses can grow Planned actions ake sure that there is a range of suitable land and premises available for business expansion though the planning process, and work with the Local Plan/ Local development Framework to deliver this. Where there is market failure, work with partners to develop suitable commercial premises. Support partners such as Business Link to provide specialist business advice. Encourage the on-going development of commercial services sector and local business to business networking though the establishment of local business forums. Assist companies to up-skill their workforce to help them to keep a competitive advantage. Assist companies to adopt modern working practices, including research and development, by adopting new technology. What government wants: Options for involvement The government wants a healthy and diverse private business base that will be able to compete on global terms. This will generate revenues for the government and income for individuals. The government has put many initiatives in place to specifically support small and medium sized enterprises (SEs). Nationally 80% of businesses employ 10 or fewer staff. any do not want to grow beyond the owner s span of control. However, while growth might not always be achieved in terms of new jobs generated, it can be achieved in terms of business efficiency thus often giving rise to increased turnover and profitability. This provides security of employment for existing workers and boosts the economy through increased productivity. For those businesses that do grow in terms of plant size and/or employment size, then suitable land and premises will be an issue. SHDC would not wish to see these existing business move out of district due to a lack of suitable sites. 8

9 What the East idlands Region is seeking: Relevant to this priority the draft Regional Strategy has the aims: To become a region of highly productive, globally competitive businesses. To ensure that the quality and supply of development land and balance between competing land uses, contributes towards sustainable growth of the regional economy. To move more people into better jobs in growing businesses. In 2005 and early 2006 economic development organisations and businesses from across Lincolnshire worked together to establish the Lincolnshire Strategy (LES). The LES has identified that Lincolnshire is heavily dependent on well-established and mature industries, in particular those associated with agriculture and land-based activities. There is some concentration of engineering and related manufacturing business in larger settlements, although at a lower contribution than historically has been the case. And although tourism has been growing, it has not been doing so at the national growth rate in this sector. There is little by way of new and technology-based industry emerging in the county. In order to address this issue, the LES proposes to develop a more balanced and diversified industrial structure that moves the economy more towards innovation, and to greater levels of competitiveness in the business population. This will require renewal and rejuvenation in established and existing sectors as well as the development of and diversification into more innovative and higher value-added sectors, and markets, such as sustainable energy and similar upstream sectors. SHDC will support the growth and development of businesses by adopting a sectoral approach to its economic development activity, which will emphasise support for existing businesses in: the food production sector, particularly with the application of new technologies, retailing, and particularly small unit, non-chain speciality shopping services linked to tourism development such as cafes, accommodation, restaurants, attractions and similar In addition this will help achieve the objectives of the Council s Corporate Plan: Use opportunities from the Wingland Power Station contribution to create secure and diverse employment Encourage business clusters around the University Food Campus at Holbeach, and the Search environment site at Long Sutton. SHDC will not employ business advisors directly, but will work through partners in the public and private sectors, to ensure that their services can be accessed by local businesses. The Council s statutory planning process will assist with the availably of suitable land and premises. There is a large amount of commuting to Peterborough for work, and it is hoped that growth of high quality jobs locally might help to reduce this in the future. Responses to local issues: There are in excess of 1,850 businesses already operating in South Holland. any are linked to traditional sectors of agriculture and are susceptible to changes in local and global markets. The RAZ s Community Strategy notes that people say they want: Support for shops and businesses An improvement in long term job opportunities. Agriculture to invest in and protect the natural and built environment 9

10 Priority 2 Support the start-up, and location, of new businesses in South Holland Planned actions Ensure that there is a range of suitable premises available for business start up on an easy in/easy out basis. Ensure that there is a range of suitable land and premises available for relocating businesses though the planning process. Develop a range of key site marketing materials to help promote South Holland as a suitable location for businesses. Support partners such as Business Link to provide specialist business start-up advice. Support partners such as the County Council (through Invest Lincolnshire) and Lincolnshire Enterprise to provide specialist support to potential inward locating businesses. What government wants: Options for involvement The government wants to ensure the UK is competitive in a global market. It actively promotes the UK as a suitable business location to overseas companies through its international diplomatic routes, and is active in supporting British export markets through trade delegations. It funds the national Business Links network to expressly encourage and support business start ups. There are two routes by which new businesses can come into South Holland, either by local people starting a new one up, or through the re-location of an existing business from elsewhere. Each type of business has quite different needs. A new start-up business generally requires capital, premises, staff and a considerable amount of skill and entrepreneurial acumen. any businesses start as sole traders or partnerships, and take a number of years to fully establish within their markets. Re-locating businesses tend to be those already well established that have outgrown their current premises or want to locate closer to a key business partner - such as a local customer base, or to be nearer to a supplier or transport hub. 10

11 What the East idlands Region is seeking: Relevant to this priority the draft Regional Strategy has the aims: To develop a dynamic region founded upon innovative and knowledge focused businesses competing successfully in a global economy. To improve the quality of regional infrastructure, to enable better connectivity within and outside the region. To ensure that the quality and supply of development land and balance between competing land uses, contributes towards sustainable growth of the regional economy. The Lincolnshire Strategy (LES) has identified that there is a pressing need for more enterprise, through business start-up, and growth through innovation. It also identifies that the skills position is weak. Almost one third of adults in Lincolnshire have no qualifications. The county has a lower proportion of people with qualifications at level 3 or higher (21%) than the region (24%) and England (28%). Although Lincolnshire performs well at A-level it has one of the lowest levels of Higher Education participation in the country. The county suffers from a serious brain drain of young people leaving for Higher Education and high skilled jobs, and not returning. In order to address these issues, the LES proposes to move from a low wage, low skills economy by increasing the skills, qualifications and capability of the workforce, and by encouraging more businesses involved in higher valueadded activities. This will require an overall improvement in skills levels and participation in vocational further education, higher education, and continuing and lifelong learning. It will also require higher levels of business start-up, particularly in competitive industries and markets, and greater success in attracting existing businesses active in these sectors. Lincolnshire County Council has worked in partnership with Lincolnshire Enterprise the County s district councils to provide Invest Lincolnshire its inward investment activity arm. This service will provide a bespoke service to potential inward investors with links to a specialist web site with local property data. Responses to local issues: The RAZ s Community Plan notes that local people want new businesses attracted to the area. The Council s Corporate Plan specifically notes activities to be delivered in support of this priority: Use opportunities from the Spalding Power Station contribution to enable new managed workspace for starter business Set up a Food Heritage Centre Work with Partners to establish the Fens Waterways Link, and create a marina at Spalding. There is anecdotal evidence to suggest a need for modern serviced office accommodation in the district. The existing office stock is located in older ex-residential buildings that do not provide modern office facilities such as air conditioning, computer cabling and similar. Newly forming businesses also prefer serviced office accommodation so that they do not have the responsibility of maintaining reception areas, conferencing facilities and such like while they are small. This is particularly the case with knowledge based companies. However the true level of local need would have to be ascertained through a feasibility study. It is the district council that has the statutory responsibility for land use planning, and works within guidance and structure managed through the Department for Communities and Local Government. At the time of preparing this strategy the Council s Local plan was at enquiry stage which might alter the amount of land allocated for employment uses. However the Council has tried to ensure a spread of suitable sites across the district. It has adopted this approach in order to ensure that employment opportunities are located close to areas of population density in the hope that this will not only provide choice to businesses, but also assist their employees to live close to their place of work and so diminish commuting. While South Holland may be able to offer land and premises, it is somewhat remote from large centres of population and industry which will be a disadvantage to it in terms of inward investment. Employment growth also needs to be balanced against population growth in the district and the surrounding area of Peterborough. SHDC is not resourced to deliver its own direct inward investment activity but it will work pro-actively with partners in the region to promote the district as a suitable business location, particularly by the identification and marketing of key sites. 11

12 Priority 3 Generate a high quality of life so that people will want to both live and work in the district. Planned actions Support the active management of town centres - especially Spalding Support the accessibility and enhancement of vocational training facilities Support the ongoing development of the Rural Action Zone s (RAZ s) economic theme group. Assess local demand for affordable childcare to enable parents to access employment and vocational training. Assist with the integration of migrant workers into local communities. Help grow tourism services and products that will also enhance choice for local people. 12 Options for involvement The local economy provides not only jobs but also services for local people. For example a high quality offer from the retail and catering sectors has a significant impact on people s choices, and so adds to their perceived quality of life. The ability to afford to live near to your work place is valued when off set against a long daily commute. High performance schools can influence housing markets, with parents eager to move into the catchment area, and then staying for the duration of the children s education. The local council impacts on quality of life issues at many levels, not just through its economic strategy but also through the direct provision of services such as cleansing, parks maintenance, and leisure actives and similar. Partners such as the Lincolnshire County Council are also integral to this agenda through the provision of education services and social support for those in need. What government wants: uch of the government s policy work related to this area is grouped under the term sustainability. A widely-used and accepted international definition of sustainable development is: 'development which meets the needs of the present without compromising the ability of future generations to meet their own needs'. The government has four priorities for this agenda: Sustainable Consumption and Production Climate Change and Energy Natural Resource Protection and Environmental Enhancement Sustainable Communities In 2003 the Office of the Deputy Prime inister (ODP) published the Sustainable Communities white paper which set the context for the national house building agenda. This strategy provided for considerable growth in the southern region around London and its commuter belt. It also called for large scale house clearances in the north. South Holland is just outside the northern peak of the East of England Region s growth area of Cambridge, Peterborough and Stansted. The Sustainable Communities policy work has directed national planning matters which need to link housing growth to jobs growth. This link has been made to reduce work related commuting distances.

13 Government also funds the national Learning and Skills Council which aims to ake England better skilled and more competitive. They are responsible for planning and funding high-quality vocational education and training for everyone. What the East idlands Region is seeking: A Sustainable Communities growth zone around ilton Keynes and Northampton overlaps into the East idlands region. South Holland s location just outside of Peterborough s growth zone means that while it will not get approvals for dramatic increases in its housing allocations, it may well experience pressure in other aspects of activity, for example a growth of day trip leisure users from Peterborough. In terms of EDA, the draft Regional Strategy has the aims: To ensure that the quality and supply of development land and balance between competing land uses, contributes towards sustainable growth of the regional economy. To create enterprising and sustainable communities through economic renewal To enhance and mobilise social capital to contribute to the regions adaptive capacity and a more equitable, inclusive and productive economy. The Lincolnshire Strategy (LES) has identified that parts of Lincolnshire are experiencing real deprivation. Of Lincolnshire s 392 Super Output Areas, 63 are in the bottom 25% according to deprivation indices and 13 are in the lowest deciles. The Eastern areas, and in particular the coastal strip, have lower levels of wealth and higher levels of disadvantage Responses to local issues: The RAZ s community strategy notes that people want: Support for shops and businesses Town centres to be good places in which to live, work and socialise People to be encouraged to continue with learning and training ore basic skills training to be available especially literacy, numeracy and information technology Chances for all, including migrant workers, to improve basic skills ore affordable housing South Holland has seen considerable population growth, which has been matched with growing out commuting for work to Peterborough, rather than in a growth of local employment. In addition, the traditional food linked sectors have relied on migrant workers who are increasingly being sourced from countries such as Latvia, Poland and Lithuania rather than from within the UK as in past decades. This has given rise to language and cultural integration issues within communities. The South Holland labour market is characterised by a higher than average number of low skilled jobs with consequently low wage rates. Local people who want to increase their vocational skills usually have a long distance to travel to access higher or further educational establishments. any employers are concerned that they will not have the correct skills to assist their businesses to grow in the future. It is the Council s aim to work with appropriate partners to support the local economy to provide a broader range of employment opportunities that include the growth of higher skilled and better quality jobs. any rural areas and settlements across Lincolnshire have low and dispersed populations and low average per capita income levels. In order to address this issue, the LES proposes to address the dispersed, peripheral and largely rural nature of Lincolnshire by enhancing integration with other markets, raising local levels of economic integration, and building critical mass in the local economy. Increasing connectivity, through ICT and via improvement of the physical infrastructure, is critical. 13

14 Priority 4 Work with partners to tackle issues holding back economic growth Planned actions Strengthen partnership working with county, regional and national agencies to raise an understanding of South Holland s issues Lobby effectively for funding support to deliver additional opportunities within South Holland Strengthen partnership working locally in terms of business to business networking. Strengthen partnership working with the Peterborough Sub-region. What government wants: The government controls national transport policy and road building programmes through the Highways Agency. Lincolnshire is identified as having a generally poor road infrastructure. However, set against that, it is a rural area with little or no congestion and has a number of A routes running nearby or through it. Options for involvement It is important that all organisations that are interested in the well-being of the South Holland economy work together in an appropriate manner, and mutually support each other s area of expertise and responsibility. This will enable local businesses and other organisations to access and maximise aid and support, which can seem confusingly diverse. Regional and national plans can have considerable consequences for the local economy. The government is aware that changes in the European Union s (EU s) Common Agricultural Policy (CAP) can have a significant impact on farmers and producers in the UK, and negotiates to this effect within the EU s structures. The Department for the Environment, Food and Rural Affairs (DEFRA) leads on domestic rural issues. DEFRA is concerned with providing environmental leadership in terms of supporting energy efficiency and eliminating fuel poverty. The have a priority of putting sustainable development into practice by providing guidance on rural housing, streamlining funding provisions, and protecting natural resources. This department is also responsible for farming regulation. The Environment Agency is also very important to South Holland as it regulates many of the issues relating to drainage and flood risk in partnership with local Internal Drainage Boards. 14

15 What the East idlands Region is seeking: Lincolnshire County Council is responsible for the local transport strategy. Within this South Holland s road links with Peterborough will be improved with a better link along the A1073, to the A47 to the south east of the district. South Holland has a good passenger rail link between Spalding and Peterborough and Lincoln. Government Office for the East idlands (GOE) states that it is important that we work together to improve productivity and developing enterprise and communities in the region. GO-E provides the secretariat to the East idlands Rural Affairs Forum (ERAF), which brings together local organisations working in the rural community to influence and implement rural policy in the region. It also leads the Think Farming and Food, the Regional Farming and Food Delivery Plan, and participates in the England Rural Programme. The Lincolnshire Strategy (LES) identifies that Lincolnshire has low and falling GDP per capita, relative to the UK average. According to the latest data, in 2002 Lincolnshire s GDP was 74% of the UK average, down from 76% in Real growth from 1995 to 2002 was 0.7% per year, compared with 2.7% for the rest of the East idlands and 3.1% for the UK over the same period. Over that period, GVA indices fell from 87% of the national average to 74%, indicating substantial slipping back in comparison with the UK as a whole. Not only is Lincolnshire below the regional and national average, by some margin, but the gap is widening because of the very low relative annual growth rate. On current trends, the rest of the East idlands and the UK will grow away from Lincolnshire, leaving it with a falling relative GDP rate. Responses to local issues: The rural nature of South Holland is important to local people. The RAZ s Community Plan notes that people want to be involved in protecting and improving our environment agriculture to invest in and protect the natural and built environment. South Holland is a man-made landscape that requires constant maintenance. Thus much of the area is at risk of flooding from a rise in sea levels. The decisions made by a wide range of national agencies could have significant impacts on local conditions. These types of issues are too complex for SHDC to have impact on alone. It needs to work with partners to achieve results and to make sure that its concerns and the voice of its people are heard. In addition SHDC has limited resources. One way that it can directly influence the development of its local economy is to match-fund other agencies, to both draw them in and so add value to the limited resources that it does have. SHDC currently hosts a range of partner s staff within its own office accommodation in Spalding, such as Education Business Link Organisation (EBLO) and the County Council s Rural Academy. This has many advantages both by adding to SHDC s own understanding of local issues, and by offering support and structure to staff working remotely from their own employers. SHDC will continue to offer this resource to its partners in the future and will seek to act as a hub for local delivery of partners advice and services. This latter issue will also assist the Council to achieve one of the priorities under its Corporate Plan of Listening by Improving access to and delivery of customer services. The Lincolnshire Rural Strategy estimates that the cost of actions to ensure that Lincolnshire can start to catch up with the UK average GVA are in the region of million over 10 years. This will include the creation of 1,000 jobs a year and 160 million of additional external investment each year, and an extra 50 million worth of business support. The partnership is now preparing a 3 year action plan to address the issues raised in the LES. 15

16 4 The Economy of South Holland South Holland covers 74,238 hectares and is a sparsely populated rural area set in the south of Lincolnshire. It is part of the man-made drained Fens and as such, whilst it offers beautiful flat open landscapes with extremely fertile soils, a large percentage of the district is subject to flood risk. South Holland has many economic links across county and regional boundaries into Rutland, Nottinghamshire, Cambridgeshire and Norfolk. Particularly there are many direct links with the city of Peterborough to its immediate south. The north eastern boundary of the district is the unspoilt coastline of the Wash. Spalding provides the main population, economic and administrative focus of the district, but there are also significant settlements at Crowland, Holbeach, Long Sutton and Sutton Bridge. 16 The A16 and A17 are the major road routes through the district, providing access to the East Anglian and idlands road networks. The A1073 links Spalding with Peterborough and is marked for improvement by the County Council. Port Sutton Bridge, in the extreme east of the district, provides a sea port from the Wash at the entrance to the river Nene and adds to the district s communications infrastructure. The Indices of ultiple Deprivation rank South Holland district at 210 out of 354 English districts, thus giving it a marginally above average score. However, this masks some difficult local conditions that have the potential to have an adverse impact on the local economy. Population The population of South Holland is 79,400 (id-2003 population estimates), one third of whom live in Spalding. The district s population is growing rapidly. In the 20 years between 1982 and 2002 the population of the district grew by 27%, and it is predicted to grow by a further 9.1% in the period to The population is sparse; in 2002 average population density was 107 people per kilometre compared to 207 for the east midlands region and 380 for England as a whole. This is reflected in high levels of car ownership, the Census 2001 which shows that only 16% of households did not own a car compared to 27% in England and Wales as a whole. This also reflects the lack of public transport in the more outlying parts of the district, which can give rise to chronic isolation from services for some vulnerable residents. South Holland is also characterised by out-migration of young people and in-migration by older people. The Census 2001 showed an average age of the population as 42.8 years against an average for England and Wales of The id-2003 population estimates showed 5% of resident population were children under five and 25% were of retirement age. The equivalent figures for England and Wales overall were 6% children and 19% of retirement age. The Census 2001 showed 97% of the resident population being white British. However, there is anecdotal evidence of a large community of Portuguese extraction living in district. Also historically as the population is sparse and the local economy has experienced considerable periods of full

17 employment, the seasonal demands of agricultural and horticultural businesses have drawn in large numbers of migrant workers. In past decades these used to be sourced from within the UK, but by 2006 there is a significant community of EU migrant workers, many of whom originated in Latvia, Lithuania and Poland. The migrant workers deployment is often organised through Gang masters. A limited survey of 135 businesses undertaken by South Holland District Council in 2005 concluded that 103 regularly used migrant workers. There are also early signs emerging from anecdotal evidence from schools that these EU migrants have aspirations to settle in South Holland, but have difficulty in affording housing to achieve this due to low wages. Housing In April 2004 here were a total of 35,604 dwellings in South Holland, 87% of which were either owner occupied or privately rented. South Holland operates in a housing market that centres on the city of Peterborough. Within that market is Rutland with the highest house prices in the east midlands region, and South Kesteven with the highest projected population growth in the east midlands. South Holland operates in tandem with Fenland District and Peterborough where house prices are just below average for the region. Between 1999 and 2004 house prices in South Holland rose by 150%. The tables below demonstrate this rise from Land Registry figures:- As can be seen the average house price in this period in 1999 was 64,245 compared to 151,038 in This raises real issues of affordability particularly for young people wanting to set up their first home. In addition, suitable housing provision for the migrant workforce is a linked issue of concern for several of the Council s support services. On the other hand, there is the potential turn over of growing levels of capital locked in the houses of a more elderly population, which could provide the district with a source of economic confidence, and so encourage associated local spending and opportunity for business. The historic significance of the area s migrant work force is still shown in the predominance of gypsy encampments. There were 796 registered gypsy caravans in the local housing market in January 2005 of which 23% were on unauthorised encampments. There was an increase of 12% in total gypsy caravans compared to January Qualifications and skills Young people do well at school in South Holland: 66% of pupils achieved 5 or more GCSEs grade A to C against a county average of 57% and a national average of 53%. It is understood that a significant disincentive to young people undertaking training or education is the time taken to commute to training premises. The nearest university to South Holland is an hour s drive away in Lincoln with limited Higher Education provision through Peterborough College. There is a tendency for more able young people to 17

18 leave the district to continue to study and not be drawn back due to the lack of higher skilled and higher paid work. This trend continues into the adult population of which 39% of working age have no qualifications against a national average of 29%. Only 11% of South Holland s working age adults are qualified to the equivalent of NVQ 4 and 5 against a national average of 20%; nearly double. Only 3% of the resident population aged years were school pupils or fulltime students (Census 2001) compared with 7% of the population of England and Wales. This once again reflects the lack of FE and HE provision locally. These figures can also be explained by the type of employment available in the district, with large numbers of jobs at lower skill levels and comparatively few managerial/technical jobs. Almost 20% of the district s residents who are qualified to NVQ levels 4 and 5 work outside the district. An above average proportion of out-commuters from South Holland are employed in financial services in Peterborough which has companies such as AP and Travelex. There is a relationship operating between availability of suitable employment and affordable house prices. Employment People living in South Holland earn a lower gross mean annual wage, at 20,396, than that of the national figure at 23,400, and less than those living in neighbouring Peterborough ( 21,513) or Rutland ( 23,895). Unemployment rates have remained very low in the district for some years as is shown in the table above: Unemployment rates in South Holland, compared to Lincolnshire, East idlands, and Great Britain. 18

19 The table below outlines the number of jobs in South Holland at different levels and makes comparisons between the split of jobs at local and regional level: Employment by occupation Employment by occupation 2002 s and senior officials 6, % 14.5% Professional 2, % 9.8% Associate professional and technical 3, % 12.1% Administrative and secretarial 4, % 12.1% Skilled trades 5, % 12.6% Personal service 1, % 6.8% Sales and customer service 2, % 7.4% Process, plant, and machine operatives 5, % 11.0% Elementary 5, % 13.7% It can be seen from this that South Holland does appear to offer fewer higher skilled jobs and proportionally more opportunities for lower skilled work. The next table shows the number of people working in key sectors and makes comparisons to the regional spread of sectors. South Holland s overreliance on the agricultural and transport sectors is apparent, as is its under representation of financial/ business and other services. Employment by sector in South Holland Employment by industry 2002 Percentage split of employment in South Holland Percentage spread of employment in South Percentage split of employment in East idlands Percentage spread of employment in the East idlands Holland Agriculture, forestry, and fishing 3, % 1.3% ining and utilities 9 0.3% 0.8% etals, minerals, and chemicals 600 Engineering % 19.5% Other manufacturing 6,800 Construction 2, % 5.0% Distribution, hotels, and catering 9, % 24.6% Transport and communications 2, % 5.7% Financial and business services 3, % 14.2% Other services 5, % 28.9% Local Trends When SHDC officers started to draft this strategy, they found that they did not have enough regular contact with local businesses to have a proper understanding of the trends operating across the local economy. This will be an action point to address in the future as part of this strategy. Officers undertook a SWOT analysis of the local economy in April 2006 and the results of this are in Appendix 3. In 2004 South Holland had 712 retail premises (including shops financial and professional services and food and drink outlets, but excluding public houses and hotels). There were also 270 office premises, 477 factories and 391 warehouses. (These totals exclude leisure and sports premises and also public facilities such as schools hospital and libraries). Thus it can be stated with reasonable confidence that there are in excess of 1,850 private businesses currently operating in South Holland. Food Production This is the most historic and significant sector in the district. It encompasses agriculture, horticulture and food processing, packaging and distribution. It gives form to the local countryside and provides the demand for migrant workers due to its seasonality. It has considerable vertical and horizontal integration with other local businesses as well as national and international linkages. Lincoln University has established a food technology sector at Holbeach that can offer even the smallest local companies access to R&D facilities. This sector is susceptible to changes in food fashion and the buying power of the large multiple supermarkets. In South Holland s favour is the natural fertility of the Fens soils, its food processing and packaging capabilities and its close proximity to the large population centres of central England and the east coast ports. Companies such as Geest dominate. 19

20 Retailing Spalding provides the main retail location for the district and has a strong offer with choice; large edge of town grocery stores and small speciality shops. Springfields retail outlet centre has recently opened on the edge of Spalding, two miles from the town centre and linked by a water taxi. Despite the geographical distance between the centre of Spalding and Springfields being too far to encourage cross-shopping, this does not seem to have undermined the traditional role of the town centre. The recent establishment of a arks and Spencer s food store is indicative of the town centre s vibrancy. It is also in no small part due to the efforts of the Council which has used the S106 monies from the Springfields development to undertake several years worth of improvements in the town centre, and to organise and run a highly professional Town Centre anagement function. However, the S106 monies are nearly expended and SHDC will not be able to sustain the momentum seen in recent years. SHDC is currently undertaking a aster Planning exercise in Spalding which will provide guidance on future interventions. The remaining town centres in the district are perceived to have reasonably good convenience shopping, but this statement requires further examination as local people have not been surveyed. Some parts of the district are very remote and there are known issues related to lack of services and lack of access for those without a car. For example it is unclear how far internet shopping is encroaching on traditional buying patterns locally. Also it is not clear how much of the district has broadband access. Tourism Spalding is home to an annual Flower Parade which has provided a large scale spectacle every spring for the past 48 years drawing in crowds of over 60,000. However, the name South Holland has proved confusing to many in the past; assuming it is part of the Netherlands. Tourists also regularly enquire at the Tourist Information Centres (TICs) when they can visit the tulip fields but these are no longer a local feature. South Holland s tourists come for a day trip or short break and are generally middle aged, middle income and middle class. any partner agencies are keen to promote the opportunities offered by the tourism sector but this can conflict with the interests of local people who want to see the area left unspoilt. The Local Plan recognises the need to assist the development of this sector, and has marked land suitable for hotel development. There are regular planning applications for tourism related developments such as caravan sites or extensions to farm houses for Bed and Breakfast accommodation, and obviously each scheme is considered on its own merits within the context of the Local Plan s polices. The Nene has seen a 20% growth in its use by leisure craft in the last five years. The development of the Fens Waterways Link should considerably add to the value of this sector. The Council has a corporate priority to assist the development of a marina in Spalding. There are also currently proposals being discussed to develop a leisure craft marina at Port Sutton Bridge. 20 SHDC is quite heavily involved in both the annual flower parade and in the provision of information to tourists through its direct support of the district s Tourist Information Centres in Spalding; one at the South Holland Centre and one at Springfields. SHDC also generates a range of printed tourist information material each year. SHDC does not currently have a clear enough focus for strategic tourism either in terms of overall development or of tourism marketing, and this is an area of action for this strategy.