Central Cardiff Enterprise Zone. Strategic Plan 2015

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1 Central Cardiff Enterprise Zone Strategic Plan 2015 June

2 Contents Contents Page 1. BACKGROUND 3 2. VISION 5 3. KEY PRIORITIES 6 4. CROSS SECTORAL PRIORITIES 7 Transport Skills ICT Other Infrastructure Business Development and Marketing 5. PROGRESS TO DATE FUTURE PRIORITIES GOVERNANCE 15 2

3 1. BACKGROUND Wales Enterprise Zones In 2012, the Welsh Government launched seven Enterprise Zones across Wales. The Enterprise Zones are designated geographical areas that support new and expanding businesses by providing a first class business infrastructure and support. Each of the Enterprise Zones has a focus on one or more key business sectors. They are: Anglesey Enterprise Zone focusing on the energy and environment sector; Central Cardiff Enterprise Zone focusing on the financial & professional services sector; Deeside Enterprise Zone focusing on the advanced manufacturing and materials sector; Ebbw Vale Enterprise Zone focusing on the advanced manufacturing and materials sector; 3

4 Haven Waterway Enterprise Zone focusing on the energy & environment sector; Snowdonia Enterprise Zone focusing on the energy & environment, aerospace, and ICT sectors. St Athan Cardiff Airport Enterprise Zone focusing on the advanced manufacturing and materials sector and in particular its aerospace subsector. Enterprise Zone Boards Each Enterprise Zone has an independent, private-sector led advisory Board. The role of the Enterprise Zone Boards is to advise the Welsh Government on the implementation and delivery of action plans and priorities for the Zones, including: Strategic advice towards investment opportunities Encouraging supply chain development Identifying property and infrastructure needs Marketing and promotion of Enterprise Boards. A full list of Board Members is published at 4

5 2. VISION Each Enterprise Zone Board submitted a Strategic Plan for each Enterprise Zone to the Minister for Economy, Science & Transport in September The vision for each Zone is contained in summary documents published in October 2013 and December 2014: The overall vision for the Central Cardiff Enterprise Zone is to help create one of the UK s premier locations for the financial and professional services sector, with the aim of attracting new investment, facilitating the development of new high quality offices, other supporting infrastructure and to create new high quality sustainable jobs. This includes: Capitalising on the city s existing attributes and competitive advantages. Helping to deliver new, high quality developments that meet the needs of modern business. Supporting business, particularly through new and enhanced training and education packages to businesses locating to the Enterprise Zone. Securing and building upon existing transportation links locally, regionally and nationally. Building upon existing ICT and other supporting utility infrastructure, enabling Cardiff to continue to be a first class, super connected city. Tapping into the economic benefits and advantages offered by the wider Cardiff Capital Region and generating prosperity for the Region. 5

6 3. KEY PRIORITIES The primary focus is the development of new, sustainable Grade A offices, which together with improvements to transport and ICT infrastructure will help secure further business growth and job creation within the Enterprise Zone and across the wider city. In achieving this, there are a range of supportive factors and enablers, including pro-active business development, marketing and skills provision which will assist t in achieving the Deliverable and Outcomes below. Key infrastructure and property considerations Whilst Cardiff has a large stock of office accommodation across the city, it is widely recognised that Cardiff currently has a lack of modern, high quality Grade A offices available for both indigenous and inward investing companies. This is the key Board priority, which through a series of new developments and property interventions is now positively addressing this issue. The availability and provision of first class utility serves and ICT infrastructure to meet the increasingly sophisticated needs of business. Cardiff is well placed to meet this need. Deliverables and outcomes Up to 1 million square feet of new Grade A office accommodation to meet the needs of business; Improved transport connectivity between Cardiff and London and the South Wales Valleys; Enhanced railway stations and a new Public Transport Interchange around Cardiff Central Station; Improved transport connectivity between the City and the Bay; Leading edge IT infrastructure, connectivity and services, underpinned by competition and diversity of suppliers; High quality public realm and business environment; The encouragement of new developments and the physical enhancement of buildings to provide new complementary business and innovation space. 6

7 4. CROSS SECTORAL PRIORITIES In addition to identifying priority areas for delivery across the Enterprise Zones, the Enterprise Zone Boards have also considered and made recommendations on a series of key cross cutting delivery areas which are key to the future success of the Enterprise Zones. These include transport, ICT and skills. Work being undertaken across these areas includes: Transport Central Cardiff Enterprise Zone Board is a key stakeholder in the South East Wales Integrated Transport Task Force Report. The Enterprise Zones were also a consideration in the proposals for a Metro system to support economic growth and regeneration at key locations in Cardiff, including Cardiff Airport, and across South East Wales. As part of the Metro proposals within CCEZ, consideration is being given to the provision of a new public transport route linking Cardiff Central with the Bay via Callaghan Square. Major transport infrastructure improvements, including proposals for electrification of the railway lines between Cardiff and London and the South Wales Valleys are well underway to significantly improve accessibility to and from the capital; Similarly, the completion of major new station enhancements at Cardiff Central Station and at Queen Street Station will greatly enhance the customer experience of business users, visitors and residents; Plans for a major new integrated public transport Interchange are emerging at as part of a comprehensive redevelopment of Central Square. Skills Development Welsh Government Skills Strategy The Welsh Government s Policy Statement on Skills, launched in January 2014, sets out the long-term vision for employment and Skills in Wales over the next 10 years. A fundamental commitment within the policy statement was the publication of a Skills Implementation Plan, which sets out how Welsh Government will strengthen the approach to regional skills delivery, building on the regional skills structures already in place across Wales. The Plan has established three Regional Skills Partnerships across Wales to drive investment in skills and maximise opportunities for their local economies. Each partnership will develop and publish an Annual Regional Employment and Skills Plan which identifies investment priorities as well as local demands and opportunities; these will include priorities identified by the Enterprise Zone Boards. 7

8 Enterprise Zone Specific Actions Across Enterprise Zones, the development and delivery of skills support to support the employment and skills needs identified in each Zone is being taken forward. The Workforce Development and Skills Growth Wales Programmes have provided direct financial support to businesses in the Central Cardiff Enterprise Zone, helping businesses grow and supporting employees and new recruits access training and skills. A key development within the Enterprise Zone is the creation of a new Cardiff and Vale College campus. This new 45m state-of-the-art campus will serve individuals and employers across the region and will be a valuable and exciting new space for the local community and employers to utilise in the area. Completion of the project is set for summer 2015, with the first cohort of students starting courses at the new campus in autumn We are also working to develop skills with Cardiff Capital Region to achieve a demand led skills solution. ICT Connection Vouchers Businesses in Cardiff Central Enterprise Zone are eligible to apply for a Broadband Connection Voucher from Digital Cardiff at Cardiff Council. Applicants can apply for funding for the capital costs of installing a new broadband connection directly to premises in order to access high speed connectivity and capability. Internet Exchange IX Cardiff Cardiff Internet Exchange (known as IX Cardiff) was launched in October 2014 in the heart of Central Cardiff Enterprise Zone and allows businesses in Wales to decrease their reliance on expensive connectivity to London. Intellectual Property created in Wales can be retained in Wales, instead of having to be sent to the south east of England because of the current way that Wales connects to the internet. A usefully analogy is with the railway network - instead of Wales being on the end of an internet branch line, we will become a main line station. IX Cardiff has come about as a result of collaboration between the public and private sector. It is operated by the UK largest IX operator Linx, which has a strategy for establishing regional Internet Exchanges across the UK. Linx has begun to accept orders from prospective members of the exchange. IXCardiff is already the second largest regional Internet Exchange in the UK, in terms of numbers of members. 8

9 Data Centres Cardiff already benefits from the Next Generation Data Centre on the city s doorstep and the Clearstream data centre north of the city. WG is working with private sector partners to enhance competition and diversity of data centre provision in the city. Local Business Connectivity Working with both the public and private sectors, WG is exploring opportunities to enhance competition and diversity of broadband infrastructure services across CCEZ. This will be through the creation of a duct network which will be accessible on an open access basis to those who wish to build fibre networks within the Enterprise Zone. Regional Connectivity WG is exploring the potential to use its trunk road network to assist in the provision of strategically important broadband services across the region. International Connectivity WG is actively pursuing bringing in transatlantic and other world-wide broadband business connectivity via diverse routes into Cardiff. Once delivered, this strategically important infrastructure will place Cardiff in an unrivalled position in terms of global connectivity. Whilst connectivity to London will remain vital, no other business location in the UK will be able to offer diverse international connectivity without dependence upon London. Cardiff will offer diverse routes to the global telecoms network, without having to take traffic via London or the south east. Other Infrastructure Issues (e.g. utility services) WG has been investigating the availability of all key utility services in CCEZ to support current and future planned developments. Particular attention is now being focussed on the availability of resilient power supplies, data storage capacity and potable water provision to meet future business occupier requirements in the zone. 9

10 Business Development & Marketing Driving existing and new business growth is key to success of the Enterprise Zones. In this context communicating the benefits of the Zones, their relevant specialisms and bespoke support is critical. The marketing of the Enterprise Zones has been a clear priority focus since their inception, with a dedicated website (www:business.wales.gov.uk/enterprisezones), currently being refreshed, and the ongoing provision of new signage to mark the boundaries and key sites within the Zones. A package of marketing materials has been developed for Central Cardiff which includes literature, exhibition display stands, promotional videos and a 3D fly through animation. A comprehensive programme of marketing activity, which includes both generic and Zone specific work to continue to promote the Zones, is in place; Central Cardiff is being promoted extensively as part of the broader Financial & Professional Services sector offering. A Pilot Marketing/Branding campaign to promote the Capital Region and the Enterprise Zone was launched in early Aimed at generating new inward investment opportunities (by attracting middle and back office functions from London), this pilot initiative has been successful in raising business awareness of both the EZ/Region alongside WG s broader Just Ask marketing campaign. 10

11 5. PROGRESS TO DATE Progress in the Zone in support of the Board s objectives includes: International business advisory firm Deloitte having created 220 jobs in CCEZ and announced the creation up to 700 jobs as it prepares to diversify and expand its business operations Centre of Excellence in the Zone. The acquisition in March 2014 of Building No.1 Capital Quarter. The building, which was opened by the Minister for Economy, Science & Transport in June 2014, delivers 80,000 square feet of Grade A space to business. Most of the building is now let to tenants, Finance Wales, Alert Logic, with other lettings to complete shortly. US inward investing ITC Sector company, Alert Logic, having announced the creation of up to 122 new jobs in the CCEZ. Other companies having brought new investment and jobs to the CCEZ including British Gas, AA, Network Rail, Admiral, Equinity and Lewis Silkin. The completion of sale in April 2014 of the Welsh Government Herbert Street site to J R Smart Ltd for new development associated with the Capital Quarter. Welsh Government financial support for the completion and opening of the award winning, state of the art pedestrian bridge (known as the Smart Bridge) connecting the Capital Quarter development scheme with the city centre. With financial support from Welsh Government and, J R Smart Ltd in June 2014 started construction of its speculative 84,000 square feet Grade A office, Building No.2 Capital Quarter. Private developer Rightacres has commenced construction of its new 135,000 square feet Grade A office Building, One Central Square with a pre-letting local legal firm Blake Morgan now confirmed. Rightacres Central Square development scheme has also been selected as the location of the BBC s new 180,000 square feet HQ building, which together with a further 100,000 square feet of Grade A offices, has recently received planning approval. With consents in place, the projects could start in Network Rail has issued its initial visioning proposals for the redevelopment of Cardiff Central Station. This could see substantial new station improvements and circa 340,000 square feet of new office and retail floor space for business use. The business case is being developed to secure UK Government funding for the project. 11

12 Since its launch, IX Cardiff has continued to attract major new business users to the capital, already ranking 3 rd in the UK to London and Manchester. The Stage 1 CCEZ Utility Study was completed, indicating that Cardiff is well serviced to support current and proposed new developments. The subsequent Stage 2 CCEZ study is underway focussing on the availability of resilient power supplies, data storage capacity and potable water to serve future developments and business occupiers. This work is expected to be completed by summer The focus of the Central Cardiff Enterprise Zone Board remains on positive job growth and ambition. From inception to March 2014, 465 jobs have been created either through direct financial support or through wider assistance from the Welsh Government, with a further 51 safeguarded. The Board continues to focus on growing infrastructure and skills to further consolidate this growth, and since inception of the zone to March 2014, over 22.9m of finance from both the public and private sector has been invested in projects supported by the Welsh Government. This includes over 79,140 square feet (7355m2) of floor space created or refurbished in the zone and the development of Pellet Street footbridge, a key access point in the zone. In addition, a number of other key property infrastructure projects are underway including support for the construction of Building No.2 Capital Quarter (84,000 square feet of Grade A offices) and building of One Central Square (134,000 square feet of Grade A office space) and the appointment of a contractor to progress the design of a 87,000 square feet (net) of Grade A office scheme on part of site EO4 at Callaghan Square. Further major property developments are planned or under construction by the private sector at Central Square and Capital Quarter, whilst Network Rail has published its initial visioning proposals for the redevelopment of Cardiff Central Station. Since inception of the zone to March 2014, 22,833,932 of finance from the public sector has been invested, comprising 21,733,517 for buildings/infrastructure, 1,010,415 investment in business and 90,000 other Welsh Government (ancillary) funding. From inception to March 2014, 23 businesses within the Zone have been financially supported and financially assisted through Welsh Government business support programmes or direct interventions. In addition, seven businesses have benefited from support under the Enterprise Zone Business Rate Scheme to a total of 491,

13 6. FUTURE PRIORITIES The success of the Enterprise Zones ultimately depends on the jobs and growth generated by the private sector. The Welsh Government is committed to supporting such private sector activity through focussing upon delivering successful projects and outputs against Board priorities. The private sector led Enterprise Zone Boards will continue to provide regular advice on priorities as well as regular reports on progress and implementation. The continuing advice from the Enterprise Zone Boards will shape the delivery of each Zone and assist the prioritisation of additional projects that will further support the Enterprise Zones to deliver jobs, growth and wealth to Wales. Going Forward the Board will continue to:- Press for the delivery of further Grade A office led developments to support city centre uses and business activities; Support the delivery of improved transport infrastructure and services to the Zone, including further consideration of emerging city centre and Metro proposals; Encourage further investment in ICT related projects, programmes and initiatives to make Cardiff the Regional leader in digital and broadband connectivity in the UK; Work with private sector business, academia and public sector to maximise the potential for skills to drive new employment opportunities and business growth across key sectors; Support current and emerging proposals (alongside other Stakeholders) for the marketing and branding the Enterprise Zone and wider City Region, as part of the wider Welsh Government offering; Engage with the business community, and the Financial and Professional Services Sector in particular, to help attract new inward investing companies to the zone and to help promote the expansion of our existing indigenous businesses. 13

14 7. GOVERNANCE There are seven Enterprise Zone Boards, set up to advise the Minister for Economy, Science & Transport on the opportunities and needs of each of the seven individual Zones. The current appointments to the Boards were made on a task and finish group basis for a period not exceeding 18 months. Board members are not remunerated. The Boards current terms end on 31 July The Boards focus on providing the Welsh Government with advice on: The implementation and delivery of Enterprise Zone actions and priorities. Opportunity identification and securing jobs and investment in Enterprise Zones, ensuring that Equality and Diversity issues are addressed. Reviewing progress to date and activity in relation to Enterprise Zones, which may include strategic advice towards investment opportunities, encouraging supply chain development, identifying property and infrastructure needs, business support, international export, R&D, and marketing and promotion of the Enterprise Zone. Reviewing the existing strategies ensuring they remain current and reflect the opportunities presented to support Wales achieve strong growth in Jobs and wealth within Enterprise Zones. The future governance of the Enterprise Zone Boards is currently being undertaken. In May the Minister advised that Enterprise Zone Boards will be reappointed for a three year period from 1 August Recruitment is currently underway. 14

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