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Table of Contents Foreword 1. Executive Summary 2. The Context for Intervention 3. Vision and Strategic Framework 4. Intervention Priorities The Atlantic Gateway in Cheshire and Warrington The Cheshire Science Corridor Crewe High Growth City Enabling Programmes 5. The Growth Deal The Deal Foundation Investments Table Intervention and Investment Prioritisation Strategic Conversations 6. Delivery and Programme Management Programme Management Managing Risk Managing Conflict of Interest Scalability 7. Governance and Collaboration
Annexes A) Financial Summary Table B) Transport Case for Investment C) Investment Action Plan D) Schedule of Contributing Partners E) Project Proformas
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Foreword This ten year Strategic Economic Plan is about enabling major growth and transformation in our economy and, with our Liverpool and Manchester partners, adding renewed vigour to the economic fortunes of the North West and the nation. However we are focusing on the next 3 years in particular – the accelerated delivery of 3,125 additional homes and 12,473 additional jobs for LGF investment of £124.8m, of which £48.76m would be drawn down in year one. We have welcomed the strong support from Government in the preparation of our Growth Plan, and also taken account of the feedback given at our recent meetings with the Minister Greg Clarke MP and Lord Hesletine. We are a LEP with the private sector leading the agenda, backed up by Local Authorities with strong political vision and governance. Preparation of this Economic Plan has meant that the LEP has made some hard choices. We present a clear set of deliverable projects for this initial three years, which fits within an overall integrated ‘Growth Investment Plan’ for the sub-region which has a strong pipeline of projects, many of which will be achieved without the need for any Government support but essential to delivering our ambition. Our Intervention Priorities reflect the ambition of our LEP to look outside our area and connect into the two major cities of Liverpool and Manchester through the Atlantic Gateway (what Lord Heseltine and Sir Terry Leahy termed ‘Britain’s Second Engine of Growth’), and a Science Corridor linking key centres of excellence such as Thornton, Daresbury, Birchwood and Alderley Park into the science and research community in Manchester. Sir David Higgin’s report now proposes that Crewe be at the centre of the HS2 route as a super-hub at the heart of the country’s major infrastructure network. This means that our plans for a new High Growth City for Crewe can now start to take shape. We are focusing on a small number of big interventions for the first year that best match our strategic priorities. In addition all these projects are deliverable, offer excellent value for money and have the necessary scale, to make a real impact in securing local and national economic growth. Our programme also has a major focus on enabling transport interventions to unlock economic growth. This reflects the important role that infrastructure plays in making economies successful, but also the connectivity that our sub-region has that can be further unlocked by delivering new road and rail schemes and working closely with our strategic partners in Network Rail and the Highways Agency. We also have a strong track record of delivery on infrastructure and robust governance to ensure we stay on track. Our transport programme for is on track to deliver £75m of investment from a combination of Pinchpoint, Better Stations Funding and our first round of Local Transport Board investment. But, we cannot focus on infrastructure, sites and housing without having big plans to ensure we have the skilled workforce in place and the right support in place to help our businesses to grow. Our proposals for investment in our FE colleges is just one element of a much bigger agenda for skills which starts to challenge some fundamental issues from educational systems through to work based learning. Our new models of delivering real employer-led educational choices through UTCs in Warrington and Crewe are examples of how we are pushing this agenda strongly with our local authority partners and we would welcome further dialogue with Government to debate wider policy issues that need addressing. Business Support and particular SME growth is a core element of our growth plan. We have made good progress in bringing together all the representative business organisations to form a fledging federation, and we have a single digital platform for business information; but we have much more to do on this to create a strong platform which rivals our European neighbours in Germany for example. 3
This plan has been prepared following extensive consultation and will be delivered by a range of sub regional partners. Cheshire and Warrington has already shown that partners across all sectors are united in their pursuit of growth and that difficult decisions can be made for the greater good of Cheshire and Warrington. Most encouragingly of all, we are already in delivery mode. By 2016 over 96% of premises in Cheshire and Warrington will have access to high speed broadband. This £35m project is the fastest roll out of its kind in Europe. In addition we have invested over £100m in our FE estate and generated 1,400 jobs from our Growing Places Fund programme. Cheshire and Warrington does genuinely offer 871 square miles of opportunity, innovation, ambition, inspiration and growth and I commend this plan to Government.
Christine Gaskell MBE, DL Chair, Cheshire and Warrington Enterprise Partnership 31st March 2014
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1. Executive Summary Introduction to our Strategy, Vision and Growth Plan Cheshire and Warrington Matters is a new and ambitious strategy to support growth and economic development over the next decade. Developed in response to a call from Government for sub-regionally-defined Strategic Economic Plans, it has been progressed through an extensive partner and stakeholder engagement process over a nine-month period. This Strategy sets out our investment proposals for the Local Growth Fund and how we will deploy this fund to deliver 3125 additional homes, and 12,473 new jobs over the next three years.
The Context for Intervention Cheshire and Warrington is already a strong economy, regularly ranking within the top LEPs in the country. Our ambition is to continue to build on our strengths and overcome challenges to deliver to our full potential. Some of the features of our economy that have informed our programme are summarised below. Cheshire and Warrington SEP: Context for Intervention - Key Factors Strengths/Opportunities
Weaknesses/Threats
Place Diverse offer – localised and urban economies providing wide housing and employment offer; mix of business sectors and range of site and premises. A well connected strategic location – economically linked to Liverpool and Manchester City regions and North Wales
Polycentric nature means no core to drive agglomeration, hampers optimal labour market and supply-chain connectivity. Poor East/West linkages Some sections of road amongst the top 20 most congested Rail network in need of modernisation Poor quality rolling stock Poor links to Liverpool Airport Infrastructure impeding logistics distribution and Superport freight movements. Constraints on development sites Constraints on key development sites Supporting transport infrastructure missing Costly legacy of brownfield land and industry.
Integral part of Atlantic Gateway Potential superhub for HS2 Key locations for high growth and available sites for development at: Warrington, Crewe, Chester, Ellesmere Port, Macclesfield
Attractive place to live and work
Unaffordable housing market in places Lower than average levels of housing completions
Economy One of best performing economies in England and strongest in North England (annual GVA of over £20bn) 430,000 work based employees High levels of employment growth (1998-2008 42,000 net jobs created) One of highest employment rates (74.7% in 2012) Top-10 LEP area for employment density; private employment (68 businesses per 1,000 working age); employment in export intensive industries; economic resilience
Gradual erosion of advantage (GVA 1997 116% of UK, by 2011 106%) Low levels of productivity in parts of the economy Lower proportion of population is working age (63.6% compared to 64.7% England)
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Diverse economic base: Key sectors for growth: Advanced Engineering Life Sciences and Chemicals Energy and Environment Nuclear Financial and Professional Services Manufacturing.
Assets Strong industrial and innovation assets Private sector research and industrial base University of Chester, MMU, Reaseheath, Jodrell Bank
People/Skills Highly skilled labour market (35% of working age population qualified to Level 4 or above; 43% work in highly skilled occupations) Good school and FE provision Net importer of labour (39,150 movements Source: Commute APS, ONS)
Relocation of much of AstraZeneca R&D facility will have a negative impact on Cheshire and Warrington economy Transport infrastructure hampering development of sites Ageing population will create demand for managers and professionals Recognised skills gaps and limited connection between provision and need. Loss of advanced energy skills following Shell departure from Thornton. Limited innovation/product development beyond large companies.
Training activity does not align to local employment opportunities. Need up to an extra 63,000 employees to be trained to Level 4 or higher to close gaps with top performing areas would Only 34% of graduates return 80,000 adults inactive Pockets of worklessnes in Winsford, Ellesmere Port and Crewe.
Further details of the context in which the programme has been developed and will be delivered are provided in Section 2.
Vision and Strategic Framework In response to these opportunities and challenges, an ambitious new Vision and Strategic Framework for Cheshire and Warrington has been developed. The Vision formalises our goal to reverse the decline in GVA per head experienced over the past decade and a half and establishes the following transparent growth targets:
By 2021 Cheshire and Warrington will be: An economy of £26.6bn with GVA per head 110% of the UK average By 2030 Cheshire and Warrington will be: An economy of £35bn with GVA per head 115% of the UK average Home to an additional 100,000 residents, 75,000 new jobs and 70,000 new homes
The Strategic Framework sets out how we will achieve this Vision, with a set of Strategic Imperatives that will frame and guide our actions and investments going forward. These imperatives reflect the opportunities and challenges we face as an economy and all interventions delivered through the SEP must contribute to at least one of them. The Strategic Imperatives are: are:
SI1: Specialised and differentiated sectorally, and delivering a manufacturing renaissance SI2: Attracting and retaining SI3: Equipped for market and technology change SI4: Maximising our growth assets – property and place SI5: Restoring our worker productivity premium SI6: Internationally connected and engaged
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Intervention priorities and Enabling Programmes We have identified and developed three Intervention Priorities: Atlantic Gateway in Cheshire - the world trade, logistics, business and innovation corridor stretching from Deeside and Merseyside through the northern part of Cheshire and Warrington to Manchester Cheshire Science Corridor - a string of interconnected centres of excellence located in Cheshire which are or have the potential of contributing significantly to national innovation in science Crewe High Growth City - placing Crewe at the heart of HS2 as a superhub central to the countries’ major infrastructure network These are particular spatial locations or themed opportunities which, by virtue of their spatial scale, economic relevance, profile, and long-term potential offer the prospects for substantial and accelerated growth fuelled by the Local Growth Fund and other funding opportunities. To translate the Vision and Strategic Framework from policy to practical delivery we also plan six enabling programmes to create the conditions for growth – these support the intervention priorities but also enable additional and accelerated growth in themselves. These complementary programmes are grouped into two themes: Creating the Conditions for Sustainable Growth: Transport, Housing Growth, and wider Infrastructure Accelerating Smart Growth: Business Growth, Innovation and Skills and Employment The Growth Deal Cheshire and Warrington can already demonstrate significant levels of ongoing investment from both the private and public sectors in support of economic growth. However, challenges remain in relation to: Unlocking key growth sites through removal of pinchpoints or site-specific remediation issues Improving connectivity between our LEP area, Liverpool and Manchester City Regions and North Wales in order to increase access to employment opportunities The ongoing repercussions of the financial crisis on access to finance and scheme viability for some development projects Ensuring effective and consistent support locally and sub-regionally to our businesses The Local Growth Fund is now the main route for securing allocations from the Department for Transport and from the Department for Education for the FE Capital Fund. Importantly, the Local growth Fund offers an opportunity to accelerate delivery of a series of what we call “Foundation Investments”. The combined programme for which Cheshire and Warrington is seeking Local growth Fund support is set out in the table below.
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In return for a Local Growth Fund settlement of £124.8m (of which £48.76m is in year 1) we commit to deliver: Total Outputs
2015/16 – 17/18
Jobs Homes Floorspace (sq. m) Private sector leverage Public sector leverage
12,473 3125 230,294 £172.31m £80.16m
2018/19+ 60,070 7170 972,923 over £2000 million over £70 million
Delivery and Programme Management In managing the delivery of the Growth Plan and the C&W European Programme the LEP will utilise the ‘Managing Successful Programmes’ (Office of Government Commerce) approach and methodology. The Growth Implementation Group will take the key Programme Management role for the LEP as well as managing the LEP’s Investment Programme. A Local Authority Chief Executive will lead the Group to ensure leadership and oversight. Clear Senior Responsible Owners will be identified for each of the programme components and projects - being both accountable and responsible for delivery, monitoring and feedback. The LEP Board will receive regular programme monitoring reports and important issues and successes will be escalated to it for consideration and / or resolution. A staffed Programme Office has already been established as part of the LEP Core team through secondments from the Local Authorities – this will support the Growth Implementation Group. The LEP’s Chief Operating Officer will lead the Programme Office. The delivery of the Growth Plan will be proactively managed and will have a dedicated Risk Management Plan and Register, overseen by the Growth Implementation Group. The Growth Implementation Group will escalate risks to the LEP Board, if these cannot be readily resolved. The Risk Management Plan will follow Orange Book principles and will not only identify potential risks but will identify mitigation measures to manage such risks. Governance and Collaboration In developing this plan, and the parallel EU Structural & Investment Funds Strategy, the LEP undertook a formal review of its governance arrangements to ensure they are fit for purpose and will facilitate effective delivery, whilst managing risk and maximising accountability to national and local funders. A ‘Combined Leadership Board’ has been established comprising the LEP Chair and the three Local Authority Leaders. This new Board provides the over-arching governance role to discharge Cheshire & Warrington’s twin strategic priorities of growth and public service transformation. The SEP’s strategic interventions are critical to the delivery of its growth ambitions – therefore the LEP will create groups to take an oversight role to ensure the effective delivery of these important programmes.
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LEP Governance Structure
Local Transport Body
Growth Implementation Group
Promoting the work of the LEP Communicating Success
Oversight of the delivery of Growth Plan priorities
Operational arm of the LEP Board Keeping strategies up-dated, economic intelligence & research Ensuring delivery activity is aligned to priorities
Oversight of the delivery of Growth Plan at thematic level Developing thematic delivery plans Stimulating project pipelines Ongoing partner engagement & participation
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European Group
Transport
Housing
Strategy Groups
Crewe – High Growth City
Cheshire Science Corridor
Atlantic Gateway in C&W
Marketing & PR
Big Ticket Project Teams
Skills & Employment
Programme & investment management Performance management and risk management Transport lead
Innovation
Leadership and strategic responsibility for the Growth Plan Business led A private sector / public sector fusion
Business Growth
LEP Board
Leadership, direction and performance monitoring
Infrastructure
Strategic direction, commissioning frameworks Assess funding bids Monitoring programme performance Provide technical oversight of EU programmes and projects
2. The Context for Intervention This section sets out an overview of Cheshire and Warrington, including: consideration of its characteristics, both as a place and economically; the area’s current economic performance; the rationale for intervention; and the strengths, weaknesses, opportunities and threats presented by the area’s population, business base, places and environment. This analysis has informed the focus of activity within the strategic imperatives outlined in Section 3. Why Cheshire and Warrington Matters The quality, scale, growth potential and outward-facing nature of Cheshire and Warrington’s economy, coupled with its strategic spatial positioning, mean our sub-region really matters. Cheshire and Warrington is, evidentially: One of the strongest and best performing economies in England, and the strongest in the North of England, with workforce productivity levels rivalling those generated anywhere in England outside of the capital. The economy of Cheshire and Warrington is characterised by a highly active resident population, a strong in-built enterprise culture, and a highly skilled workforce. This economic strength provides employment opportunities beyond our boundaries, with the area being a net importer of labour. A major economy with a large cohort of world-leading firms, with an annual Gross Value Added (GVA) of over £20bn, and 430,000 work-based employees. Our economy is equivalent in scale to cities such as Birmingham and Leeds. Our key firms include Bentley Motors, Tata, Vauxhall and Barclays, and we have distinctive sectoral specialisms in advanced, high-value engineering, energy, and professional and business services as well as growth potential in food, agri-tech and biological engineering. To grow, we intend to focus on our specialisms to support us to be competitive in growing markets and where we already have a competitive advantage1. A diversified and internationally-oriented economy, with around one-fifth of employment in Cheshire and Warrington in export-intensive industries, the third highest of any LEP area across England. Cheshire and Warrington has a consistently strong record in attracting new inward investment compared to the national average2, with the area offering a diverse range of investment locations for investors: in urban centres, in and around attractive market towns, and in high-quality, yet accessible, rural spaces. A private sector-led and knowledge-rich economy, with a high density of private sector jobs relative to its population, one of the highest outside of the capital. The area boasts a large private sector business base, with business density rates well above the national average; the business base contains a welldefined mix of high profile international companies, well-established and substantial medium-sized companies, and a dynamic and growing small business base. A well-connected economy, with long established linkages to Manchester and Liverpool and their city centres, higher education, and innovation assets, as well as strong economic links to North Staffordshire and the ‘Potteries’, and across the border to North Wales. Our people and businesses benefit from a high quality strategic transport infrastructure – the West Coast Main Line, the national motorway network, the M6, M62, and M56 axes – and proximity to international transport linkages at Manchester and Liverpool airports, and the Port of Liverpool.
1 Details of work completed to assess the LEP area’s smart specialisations is contained in our European Structural and Investment Funds Strategy 2014-2020 2 A recent report for BIS identified that the LEP has a location quotient of 1.269 based on employment in foreign-owned businesses.
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An attractive place where people want to live, work and visit, with the natural environment and excellent location, combined with factors such as high educational attainment and employment opportunities in quality occupations, ensuring that Cheshire and Warrington is a place offering a very high quality of life to its residents and is an attractive place to visit and do business.
Despite all of these strengths, there remains room for improvement to ensure Cheshire and Warrington exploits local, national and international opportunities and makes its full contribution to the national economy. As outlined later in this document, there are pockets of deprivation, unemployment, low skills and job losses that are harming our overall economic performance. Without intervention, Cheshire and Warrington will lose its competitive position, both against other LEPs and internationally, and fail to build on its economic assets. Cheshire and Warrington – The Place Localised and Urban Economies Cheshire was traditionally, and remains in many places, a rural area, with agriculture and land-based industries, a network of generally affluent and prosperous villages, mid-sized market towns, and one historic city (Chester), serving as important service and functional centres. Alongside their roles as retail, commercial, educational and leisure focal points, these places developed specific sectoral specialisms, including extractive industries and chemicals across the Weaver Valley, and silk manufacturing in Macclesfield. These rural areas are now increasingly home to a wide range of non-land based businesses that appreciate the rural setting, including the visitor economy. Alongside this rural dimension, significant urban economies are also present. With manufacturing and industrial strengths underpinning their development, these urban locations, notably Warrington (initially steel/wire, and then growing rapidly in the post-war period following its designation as a new town), Crewe (the railways and later automotive), and Ellesmere Port (energy, advanced manufacturing), have provided a complementary economic offer. With increasingly diversified offers, these major ‘urbanisation economies’ contribute substantially to the overall economy of the sub-region, and also serve as important retail, leisure and service centres. The diversity of spatial offer is a real strength for Cheshire and Warrington, providing a wide housing and employment offer to residents, a diversified mix of business sectors to employees, and a range of sites and premises to investors. However, it also confers challenges, including no immediately recognisable economic ‘core’ to drive agglomeration, meaning that the poly-centric nature of the geography can hamper optimal labour market and supply-chain connectivity. A Strategic Location Cheshire and Warrington is a major economy in its own right but it also shares important economic linkages with its neighbours, and the wider national and international economy. Crucially, the sub-region is bounded by the Liverpool and Manchester City Regions. This link matters fundamentally to the area; Manchester and Liverpool are – on any measure – cities of international stature, and – with a major port and two international airports, universities of international repute, and strong cultural identities – both are global economic nodes that the residents and businesses of Cheshire and Warrington can exploit. Just outside the sub-region’s administrative area, but core to its functional economic area, is Daresbury Science and Innovation Campus, with its rapidly developing Enterprise Zone. The West of the area also adjoins North Wales, which provides unique opportunities for cross-border collaboration on the growth agenda. Taken together, Cheshire and Warrington is at the heart of one of the largest concentrations of people, businesses and growth assets in England, and at the apex of the national transport infrastructure including the motorway network, West Coast Main Line rail link and trans-Pennine routes. 11
Given its spatial location, Cheshire and Warrington is also key to the successful delivery of two of the most significant economic and regeneration interventions to be taken forward in England over the next two decades, namely Atlantic Gateway, which has the potential to generate major new investment and employment opportunities for the north of England, and the proposed High Speed 2 route that will run through the heart of the sub-region via Crewe High Growth City. Figure 2.1. Cheshire and Warrington LEP area
© Crown copyright and database rights 2012. Ordnance Survey 100049045
A Strong Performing Economy Performance in the Last Growth Cycle Cheshire and Warrington is one of the strongest economies in England. During the last growth cycle, pre-2008, employment growth in Cheshire and Warrington was stronger than most of the core city regions and in line with that experienced in London and competitor locations such as Cambridge/Peterborough. The number of net additional jobs created in this period in Cheshire and Warrington was significant – some 42,000, with a peak employment of over 430,000 prior to the downturn.
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Figure 2.2: Employment growth in Cheshire and Warrington over the last growth cycle 440,000 430,000 420,000 410,000
Employment Peak c.434,000 Jobs
400,000
390,000 380,000
370,000 360,000 1998
1999
2000
2001
Cheshire and Warrington
2002
2003
2004
2005
North West (trend line)
2006
2007
2008
England (trend line)
Source: Annual Business Inquiry (taken from Cheshire and Warrington Economic Synthesis Report, July 2013) This net employment growth was achieved at the same time as jobs were lost in manufacturing. However, Cheshire and Warrington retains a significant and increasingly high-value manufacturing sector on which to build, with wellestablished employment specialisms in areas such as automotive, chemicals and pharmaceuticals. A Top Ten Economy Cheshire and Warrington is competing with other leading economies across England, for investment, for jobs and for residents. However, across a range of indicators, the area is well-established as a top-performing economy, in a national context outperforming many of the leading economies in the Greater South East in a set of key indicators. Table 2.1: Cheshire and Warrington – a top-10 economy (rank descending 1=top) Employment Density
Private and other service employment
Employment in export intensive industries
Economic Resilience
Thames Valley
London
Gloucestershire
Enterprise M3
London
Thames Valley Berkshire
Northamptonshire
Bucks Thames Valley
West of England
Hertfordshire
Cheshire & Warrington
Thames Valley
Oxfordshire
Bucks Thames Valley
Cumbria
Hertfordshire
Cheshire & Warrington
Enterprise M3
Black County
Coast to Capital
Coventry and Warwickshire
Cheshire & Warrington
Leicester & Leicestershire
Cheshire & Warrington
Hertfordshire
South East Midlands
Swindon and Wiltshire
London
Northamptonshire
Coast to Capital
Thames Valley Berkshire
Oxfordshire
Enterprise M3
Swindon and Wiltshire
London
Gloucestershire
South East Midlands
West of England
Lancashire
Swindon and Wiltshire
Source: BRES, LEP Network Report – Creating Successful Local Economies
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Overall the area performs well. However, productivity has not kept pace with national performance, seeing gradual erosion in comparative terms. Furthermore, the area faces clear demographic challenges, with a smaller, and in relative terms declining, working age population. Highly Skilled Employees and Residents The Cheshire and Warrington economy benefits from a highly skilled labour market. The skills profile of the working age population has improved over the past decade as national and local initiatives to encourage upskilling have taken effect. Over time, the LEP area has typically had a slightly higher than average proportion of working age residents holding qualifications at Level 4 or above, while the proportion with no qualifications has remained low. There are, however, signs that too many people are completing training activity that does not align with local employment opportunities (see Table 2.2 for details of key sectors). For example, there is anecdotal evidence that there are too many people seeking sales and customer service roles and not enough with the skills required by the area’s engineering sector. The recently produced Employment and Skills Strategy further explores current and anticipated future skills gaps. Figure 2.3: Qualification Profile of Working Age Population, 2012 England 2005
26%
Cheshire and Warrington 2005
31%
England 2012
34%
Cheshire and Warrington 2012
35%
0%
L4+
L3
16%
15%
16%
15%
17%
40%
L2
L1
14%
14%
17%
19%
17%
20%
Apprenticeship
15%
60%
Other Qs
13%
12%
12%
80%
9%
8%
100%
No Qs
Source: Annual Population Survey3 Both the skills profile and availability of jobs, following significant employment growth, are two of the factors which contribute to the area having one of the highest employment rates. When the level of highly skilled residents is compared with other strong performing LEP areas, Cheshire and Warrington outperforms the likes of Manchester, Leeds, Birmingham and Liverpool and is most similar to the Greater Cambridgeshire and Greater Peterborough LEP area. In terms of future aspirations, in order to close the gap with the top performing areas, including Bristol and Oxfordshire, between 17,000 and 63,000 additional residents would need to be qualified at Level 4 or above. This reflects long term trends of employers demanding higher level skills and growth trends in sectors and occupations that require high skills, e.g. professional services. Replacement demand trends suggest that managers/senior officials, professional and associate professional and technical occupations will generate significant demands in the period to 2025. The 2011 Cheshire and Warrington Business Needs Survey also identified strong demand for soft skills including communication, team working, customer care and marketing across a range of sectors.
It is recognised that the Annual Population Survey and other survey based data (such as the Business Register and Employment Survey) is subject to survey sampling error which increase as geographical areas get smaller and the detail explored greater. 3
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Occupational Profile The occupational profile of both those who live in Cheshire and Warrington, and those who work in the area highlights the diversity and quality of the job opportunities available. These profiles are both broadly in line with the national average, including that for the level of highly skilled occupations (43% compared to 44% nationally). Figure 2.4: Resident and Workplace Based Occupational Profile, 2012 25% 20% 15%
10% 5% 0%
Employees
Residents
Source: Annual Population Survey It is likely that the sources of growth will differ in the coming years, and this may have implications for future changes in the profile and the associated labour market requirements. The ongoing decline of process, plant and machine operative occupations is likely to continue and whilst there will be replacement demand, given the local demographics, there will be a requirement for individuals to re-train for new advanced manufacturing sectors (e.g. low carbon or environmental technologies) or opportunities in the service sector. Cheshire and Warrington’s ageing population will create significant replacement demand, particularly amongst managerial professionals, which is also forecast to be one of the fastest growing occupational areas, as a result of expansion demand. Working Age Population Outside Employment Although Cheshire and Warrington’s employment rate is high relative to other parts of the north of England, approximately 80,000 adults are inactive. Pockets of worklessness are evident in the area, for example in parts of Winsford, Ellesmere Port and Crewe (i.e. deprived urban areas), and at least half of those that are inactive do not have at least a Level 2 qualification, which is an increasing prerequisite for employers. Challenges of low skills and high worklessness are now being compounded by limited employment opportunities in parts of the LEP area. This is accompanied by a trend for under-employment as more people enter or re-enter the labour market through parttime work. Reducing worklessness is a high priority to allow all residents to make an economic contribution, and, in the context of an ageing population and growing productivity gap, important if the economy is to deliver to its maximum potential. Increasing the proportion of the population in employment will help to raise the sub-region’s productivity, raise disposable income levels and reduce the welfare burden. DWP data for November 2012 shows that 45,000 people aged between 24 and 64 in Cheshire and Warrington experience specific barriers to employment and may therefore require more intensive forms of support to become active members of the workforce. Long term unemployment amongst young people is also a growing challenge and approximately 1,800 young people were not in education, employment or training in 2012, up from 1,500 in 2010.
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A Diverse Economic Base: Key Sectors The current LEP Business Plan identifies four key sectors as having the potential to grow further, faster: advanced engineering; financial and professional services; life sciences and chemicals; and energy and environment. Each of these sectors is covered in detail in the 2012 Mickledore Sector Research Report, which highlights important sub-sectors and strategic employers. These sectors have an important role to play in terms of wealth generation, increasing exports, research and development and innovation. Table 2.2: LEP Key Sectors, C&W 2011 Employment Advanced Engineering 23,600 Life Science and Chemicals 8,800 Energy and Environment 30,600 Financial and Professional Services 45,000 Total 108,000 Source: Mickledore 2012 based upon BRES
Companies 1,613 689 7,422 7,178 16,902
Although there are a very large number of companies in these key sectors, this number reduces to some 1,900 when micro companies (less than 10 employees) are removed. The number of medium sized companies is considerable, and many of these are major local employers, with in excess of 200 employees.
Table 2.3: LEP Key Sectors, C&W 2011 Small Medium 10-49 50-249 Advanced Engineering 280 67 Life Science and Chemicals 122 47 Energy and Environment 510 113 Financial and Professional Services 588 107 Total 1,500 334 Source: Experian
Large 250+ 21 11 27 33 92
Analysis of Cheshire and Warrington’s sectoral strengths has also been enhanced through smart specialisation research, prepared to accompany this submission. The Witty Review (published in 2013) and a subsequent report issued by BIS4 also highlighted the diverse nature of the Cheshire and Warrington economy as of 2012, including strengths in automotive (Location Quotient (LQ) 3-4), aerospace (LQ 3-4), nuclear (LQ 2-3), life sciences (LQ 12), agritech (LQ 1-2), professional and business services (LQ 1-2), oil and gas (LQ 1-2) and construction (LQ 12). An Economic Driver for Neighbouring Places The balanced economy operating across Cheshire and Warrington, as indicated in the earnings data, draws in part from the level of self-containment of the economy. The latest data available on commuting patterns indicates that over three-quarters (77%) of the employed residents of Cheshire and Warrington work within the sub-region. Viewed from the opposite perspective, 70% of employment in Cheshire and Warrington is accounted for by residents of the area. Despite the important economic linkages to neighbouring economies, including the presence 4 Localisation of
Industrial Activity across England’s LEPs: 2008 and 2012.
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of two major urban centres in Manchester and Liverpool city-regions, Cheshire and Warrington as a whole acts as a net importer of labour, i.e. more people travel into the sub-region to work than travel out of it on a daily basis. Table 2.4: Inflows and outflows from Cheshire and Warrington Type
Number
Self-containment – residents of Cheshire and Warrington working in Cheshire and Warrington
325,250
Outflow – residents of Cheshire and Warrington working elsewhere
98,150
Inflow – residents elsewhere working in Cheshire and Warrington
137,300
Net inflow to Cheshire and Warrington
39,150 Source: Commute APS, ONS
This role as a net importer of labour, more traditionally associated with large urban cores, reflects both the strength of the economy of Cheshire and Warrington itself, and to a degree the relative weakness of some of those areas that surround it. In both cases, Cheshire and Warrington plays a key role as a source of employment for the residents of other places. The locations of where Cheshire and Warrington residents work (outflow), and where employees in Cheshire and Warrington live (inflow) are shown in Table 2.5. Table 2.5: Key locations for outflows and inflows Key locations - outflow
Key locations - inflow
Local Authority
Movements
Local Authority
Movements
Manchester
18,450
Flintshire
16,350
Halton
8,400
Wirral
9,800
Stockport
8,150
Stockport
9,200
Liverpool
7,250
St. Helens
7,950
Stoke-on-Trent
6,000
Halton
7,750
Trafford
5,750
Wigan
6,700
Wirral
5,100
Trafford
6,600
Wrexham
4,250
Liverpool
6,350
Flintshire
4,150
Manchester
5,850
Salford
3,100
Newcastle-under-Lyme 5,650 Source: Commute APS, ONS
Opportunities for Growth On top of strong existing performance, the area has the growth assets and opportunities to perform even better and to drive sustainable growth over the next two decades at a national as well as local level. Specifically, Cheshire and Warrington has the locations for growth, the knowledge assets, and a range of diversified technology and market specialisms that provide significant economic opportunities. 17
Locations for Growth The area has a number of important investment locations with potential to attract new inward investment and take forward nationally significant development opportunities. Some of the key ‘locations for growth’ in Cheshire and Warrington are summarised below.
Cheshire and Warrington: key locations for growth Warrington: one of the fastest growing employment centres in England, and recently ranked as one of the top places to do business nationally, Warrington has emerged as a premier investment location for high-value and knowledge-based activities, as well as retaining a significant manufacturing base. Warrington is home to a wide range of leading companies and has a number of strategically important existing and emerging development sites e.g. Birchwood Park, Lingley Mere, and Omega. At Birchwood, Warrington hosts one of the largest clusters of nuclear research and technology firms in the UK employing an estimated 4,000 people, and supports major clusters of firms in sectors as diverse as distribution and logistics, precision engineering, energy, telecoms and software, and business services. Now with a population of around 200,000, Warrington is one of the largest urban centres in the North of England. Crewe: situated in the heart of Cheshire, Crewe is recognised as the ‘gateway to the North’ given the quality of the town’s strategic transport connections both in terms of road and rail providing connectivity to the rest of the UK. Growing as a ‘railway’ town in the 19th Century, Crewe retains industrial expertise in transport and automotive industries, and is home to the international HQ of Bentley Motors, providing over 3,500 jobs and exporting to numerous markets around the world. Crewe is the largest economic driver in the sub-region outside Warrington, to which it is linked on the West Coast Main Line (WCML). Crewe supports around 60,000 work-based employees, and contains around 5,000 businesses. Crewe will play a key role in the delivery of HS2, offering wider sub-regional benefits from the enhanced connectivity. Crewe benefits from a substantial bank of development land, which offers significant potential for future economic growth, employment and wealth creation. Major economic development proposals are currently being progressed across the locality, including the High Growth City concept, the 150ha Basford East and West strategic employment site opportunities to the south of the town and the North East Science Corridor.
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Ellesmere Port: sits at the heart of an industrial, science and technology corridor, cutting across the Atlantic Gateway, which encompasses a diverse range of high value sectors ranging from aerospace and defence, automotive, petrochemicals and energy, and applied R&D (at Daresbury Science and Innovation Campus just minutes from the sub-region). Ellesmere Port’s heritage as an industrial powerhouse remains significant today, with around a fifth of local jobs in manufacturing, well above national levels; the area also offers considerable available employment land in and around the town. Ellesmere Port is also home to Cheshire Oaks Designer Outlet, the biggest shopping centre of its type in Europe, strategically located close to the M53/M56 motorway intersection. Chester: Cheshire’s historic administrative centre, Chester continues to play a major role in the sub-regional economy, with important retail, commercial and academic assets, as well as a growing cultural and visitor economy offer. Chester supports a strong financial and professional service sector, including leading names such as MBNA, M&S Financial Services and Santander. Plans for a new business district will complement investment in transport and other investments, building on a strong leisure, tourism and higher education offer to support new investment in key service sectors. Macclesfield: The town grew out of the production of silk during the 19th Century, with the development of housing, transport infrastructure and a local service economy to support the industry. The town is now home to flourishing banking, finance and insurance and other service sectors. It is also working positively with AstraZeneca and partners to retain a fully functioning biotechnology centre, offering state of the art laboratory and research facilities. Plans to revitalise Macclesfield town centre with a new £90m retail and leisure scheme are progressing, with a planning application approved by Cheshire East Council in mid-2013. Knowledge Assets Cheshire and Warrington hosts an exceptional private sector research and industrial base, supported by world class brands and companies, taking advantage of globalisation and smart specialisation. Key assets in the private sector and industrial research base include the Waters Corporation’s new Mass Spectrometry (MS) Facility near
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Wilmslow, the National Nuclear Laboratories and AMEC Laboratories in Warrington, Birchwood Park Nuclear Cluster, Bentley Motors in Crewe, and the collection of firms forming the North East Cheshire Science Corridor. However, the knowledge and research excellence across the region is not confined to these major sites, with a high proportion of businesses across Cheshire and Warrington engaged in knowledge-based and high-technology activity. The area is in the top 10 in England in terms of the proportion of employment in high and medium technology production and the knowledge economy5, well above major urban centres such as Greater Manchester, Leeds and Birmingham. Further to the industrial base, the area is home to two major teaching universities, the University of Chester and Manchester Metropolitan University (at Crewe), and hosts key sites for two leading research-oriented Russell Group Universities, with the Jodrell Bank Centre for Astrophysics of the University of Manchester, and University of Liverpool Veterinary School both based in the sub-region. The local universities and research sites are important employers and further expansion plans will increase their economic contribution, including through the development of the University of Chester’s Thornton Research Centre, a high quality international technology campus focused on advanced engineering, including the University of Chester’s engineering faculty. The LEP area is also home to a strong Further Education base, with eight colleges catering for almost 50,000 students. This provision allows for the development of technical and generic skills required by employers, including specialisms for example through Reaseheath College’s expertise in animal husbandry and agri-tech. The Need for Intervention Despite its strengths, Cheshire and Warrington faces some major challenges which emphasise the need for intervention to allow the LEP area to satisfy its economic potential. Four key challenges have been identified through the data analysis and wide consultation process to inform the development of the LEP’s Strategic Economic Plan and this ESIF. Maximising our Potential and the Productivity Imperative Headline statistics indicate that Cheshire and Warrington performs strongly on the key economic measure of GVA per head. The latest data from ONS for 2011 show that GVA per head in Cheshire and Warrington was c.£22,750, compared to c.£21,350 in the UK, i.e. sub-regional GVA per head was 106% of the national level. However, despite this positive ‘current’ position, sub-regional growth in nominal terms has not kept pace with the national trend over the past decade and a half, in total GVA or GVA per head, as shown in Figure 2.4 below.
5
LEP Network, Review of Local Enterprise Partnership area economies in 2012
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Figure 2.5: GVA growth and GVA per head trends 1997-2011 Total GVA growth
GVA per head
Source: ONS These trends are reflected in annual GVA growth rates over the long-term (1997-2011), medium term (2003-2011), and short-term (2007-11), the last period accounting for the effects of the recession and subsequent sustained downturn on the sub-region, as shown in the table below. Table 2.6: Annual Nominal GVA Growth Rates to 2011 Period Cheshire and Warrington UK 1997-2011 3.4% 4.3% 2003-2011 3.1% 3.6% 2007-2011 1.4% 1.6% Source: ONS Taken together, the data indicate that Cheshire and Warrington performs well, but that GVA performance in the sub-region is not fully meeting its potential, with growth in recent years consistently below the national level. Put simply, GVA performance in Cheshire and Warrington could be higher. Understanding the GVA ‘missed opportunity’ … What explains this missed opportunity? At a very headline level, GVA performance is dependent upon a number of key factors:
how many people are available to work;
how many of those are in work;
how many hours they work; and
how productive they are in what they do.
Table 2.7 shows Cheshire and Warrington’s performance against each of these indicators, indexed to the UK average. In terms of the employment rate the sub-region outperforms the national level, and the hours worked in 21
the sub-region is the same as nationally. However, productivity is below the UK level (based on Cambridge Econometrics data) and the proportion of the population who are of working age is also below the national level. Table 2.7: The GVA missed opportunity in Cheshire and Warrington Prosperity (indexed to UK)
GVA per head
Components of GVA (indexed to the UK = 100) How many How many How much How people are people work people work productive available to workers are work (i.e. productive potential) WAP as % of Employment Hours per GVA/ total rate worker employment population 105% 100% 98.6% 97.6%
Cheshire and 106% Warrington Source: SQW analysis of ONS, NOMIS, ASHE and APS data, and data produced by Cambridge Econometrics. Note that the data for population, employment and hours per worker are on a residential basis; the data for productivity are on a workplace basis From an economic development and sub-regional public policy perspective, addressing the proportion of the population who are of working age is challenging; although policy decisions and investment can have an effect – ensuring that the area provides the employment, housing and lifestyle offer required to retain and attract people of working age – long-term demographic and structural economic factors will be the driving factors. The inference therefore is that the primary issue in responding to the GVA ‘missed opportunity’ in Cheshire and Warrington is to address the underperformance (albeit modest) in workforce productivity. … and the productivity deficit The evidence above suggests that productivity performance is acting as a drag on economic growth across Cheshire and Warrington. Given that the sub-region is home to some global innovation assets, especially in the manufacturing and engineering sector, the high skills of the population, and the strong employment and business base, we might expect productivity performance to be higher, at the level of, or potentially above, the UK. A wide range of factors influence overall productivity performance, however, at a sub-regional level the sectoral mix of the business base, and the level of productivity within each sector is crucial. In terms of the sectoral mix, over time, the sub-region has seen a structural shift away from manufacturing towards service jobs, both those driven by population, and business-related services: in 1981 manufacturing accounted for 26% of employment in Cheshire and Warrington, by 2011, just 9%. This shift in the sectoral mix of the economy has been experienced across the UK, however, it matters fundamentally for productivity in Cheshire and Warrington given the scale of the manufacturing base in the area where productivity has been consistently above other sectors over the past decade and a half, even as (and to a degree because of given increasing automation) employment in the sector was reducing. Figure 2.5 below shows the current share of employees in Cheshire and Warrington in detailed sectors (the vertical y axis, shows the scale of the sector in the area), and the location quotient of employment compared to the UK average (the horizontal x axis, UK = 1, shows in relative terms how the area compares to the national picture). It is evident that Cheshire and Warrington‘s is over-represented in a number of typically lower productivity sectors such as retailing, distribution, agriculture and basic metal, and underrepresented in some high productivity sectors such as electrical engineering/instruments and insurance. However, the sub-region also has an over22
representation of employment in generally more productive sectors in both services (professional services, banking and finance), and production sectors (electricity, chemicals), and importantly a lower representation in public administration, education and health and social work. Figure 2.6: Share of employment in Cheshire and Warrington and relative concentration against the UK
Source: SQW analysis based on Cambridge Econometrics. Note: GVA in 2005 prices Overall, the data suggest that the sectoral composition of the economy is generally conducive to strong productivity performance. As such, it is the levels of productivity within individual sectors that is likely to be key to the (modest) productivity deficit, and addressing sectoral productivity is key to addressing the ‘missed opportunity’ in terms of GVA. Figure 2.6 therefore shows current (2011) productivity in Cheshire and Warrington and the UK. The data indicate that some sectors are more productive in Cheshire and Warrington than the UK, such as motor vehicles, electrical engineering/instrumentation, and communications. However, the analysis also suggests that Cheshire and Warrington’s productivity is lower than average in a number of important (largely service-based) sectors such as professional services, banking and finance, and insurance, as well as chemicals, mechanical engineering and distribution.
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Figure 2.7: Sectoral productivity in Cheshire and Warrington and the UK
C&W above UK average
C&W below UK average
Source: SQW analysis based on Cambridge Econometrics. Note: GVA in 2005 prices If productivity in all the sectors that the sub-region underperforms matched the UK level (and the scale of employment and productivity in other sectors remained constant), the economy of Cheshire and Warrington would generate an additional £2bn per annum (at 2005 prices). However, based on the scale of the sectors (in a number of areas, a deficit is evident, but the scale of the sector in the area is small, for example, electronics), the data suggest that productivity enhancement in a number of key (well defined) sectors will be crucial to closing the productivity deficit. These sectors include:
professional services
banking and finance
other business services
distribution
chemicals.
Manufacturing – Decline and Renaissance Cheshire and Warrington’s place in the top division of LEP areas has been based in part on a very strong, high end manufacturing base. The manufacturing base remains important to the economy, with production responsible for 21% of sub-regional GVA in 2010, compared to 14% across the UK.6 However, the traditional manufacturing base in the area is slowly eroding: both in terms of GVA (the equivalent proportion of GVA in 2000 was 29%), and in employment terms, with the area losing around one third of its manufacturing jobs in a ten year period (some 25,000 jobs) to 2008. This loss of often high-productivity manufacturing activity is impacting upon sub-regional GVA performance.
6
ONS, Headline1 GVA2,3 by 10 industries at current basic prices, September 2012
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The renaissance of manufacturing in Cheshire and Warrington, capitalising on the skills and industrial legacy in the sub-region, is therefore critical to maintaining Cheshire and Warrington’s position in the leading group of LEPs. Realistically, given shifts in global economic patterns, the re-thinking of where goods can be manufactured, and smart specialisation based on local/regional strengths, delivering employment growth in the manufacturing base is not realistic. However, as the manufacturing base concentrates on advanced manufacturing, there is an opportunity to stabilise employment in the sector through new investment, innovation, supply chain development and global trade, thereby driving up productivity and generating additional GVA. Public Sector Employment Despite the large cohort of businesses and high level of employment in the private sector in Cheshire and Warrington outlined above, public sector employment accounted for almost half (32,000 jobs, 46%) of total employment growth in the last growth cycle. This growth of public sector jobs, whilst helping to maintain employment levels, contributed to the productivity deficit that emerged in the sub-region. Figure 2.8: Employment Change 1998-2008 20,000
18,269 15,302
15,000 12,391 10,000 5,524 5,000
4,886
4,124
3,084
2,802
2,213
1,597
537
0
Source: Annual Business Inquiry This scale of employment growth in the public sector will not be repeated in the next growth cycle, and nor would this be a preferred option. Employment growth will need to be private sector-led, capitalising on the enterprise culture and key growth assets in the sub-region. Ensuring Opportunities for All Not all of Cheshire and Warrington’s residents make a full contribution to or fully benefit from the area’s success. The 2010 Index of Multiple Deprivation shows that there are pockets of deprivation across the area, for example 8.8% of Warrington’s Super Output Areas fall within the 10% most deprived parts of the country. In March 2013, 115,200 16-64 year olds in the LEP area were classified as economically inactive. We recognise that there are groups within our society that face barriers to economic engagement for a variety of reasons including physical disabilities, caring responsibilities and a lack of qualifications. Whilst it will not be appropriate for all of these people to be engaged, we need to help remove the barriers for those residents who do wish to engage in training activities and employment.
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Unemployment is therefore a challenge to be overcome if Cheshire and Warrington is to deliver to its potential. In August 2013, claimant count unemployment in the LEP area stood at almost 15,000 (2.6% of 16-64 year olds). There are persistent pockets of unemployment within the LEP area that must be overcome if all residents are to make a contribution to growth. Department for Work and Pensions Benefits Data (as reported in the Cheshire and Warrington Employment and Skills Strategy) shows high concentrations of out of work benefit claimants in the urban areas of Warrington, Ellesmere Port and Crewe where some Lower Super Output Areas have over 30% of working age residents claiming out of work benefits. Rationale for Investment There are a number of core market opportunities which are influencing our investment priorities in Cheshire and Warrington. These include: Changing technologies, which are allowing regions to capitalise on technical enterprise and their company bases to develop new areas of competitive advantage.
Growing global markets, with the increasing purchasing power of the developing economies opening up new markets in areas such as healthcare.
The economic value of the natural environment as an underpinning contributor to sustainable development, with a greater recognition of the value of the environment to realising ambitions.
Opportunities to develop the low carbon economy, for example through new technologies and products such as renewable energy.
Building on the exceptional SME base, its breadth and depth, particularly with regard to advanced manufacturing.
Taking advantage of location and the ability to accommodate significant investment in locations such as Warrington and Crewe and through Atlantic Gateway.
While these factors provide opportunities for Cheshire and Warrington, there are a number of well documented constraints which need to be addressed in order to remove barriers to growth. These include: The risks and development costs of undertaking innovation and commercialisation, a key strand in improving productivity.
The resources and expertise available to SMEs to develop growth and business improvement plans, another key strand in improving productivity.
The uncertainty over exporting, particularly with regard to new markets, a key strand in maintaining manufacturing competitiveness and employment. This is resulting in a focus on near place exporting.
Infrastructure costs and uncertainty over commercial returns in terms of unlocking sites and providing premises such as grow on space and incubation facilities. Many bottlenecks are too costly to be addressed by the private sector and too small to become a strategic transport priority.
Market failure with regard to sustainable development objectives, with a number of outputs and outcomes regarded as social goods, rather than commercial activities which the private sector could undertake.
Company relevance to undertake and/or support training, including apprenticeships.
Skills shortages, particularly for technical skills, with many employers reluctant to invest as the successful trainee is likely to leave7.
The need to actively engage all groups in society to contribute to the area’s success.
7 The poaching of skilled staff was identified by stakeholders surveyed as part of the Cheshire and Warrington Employment and Skills Strategy’s development and is frequently cited in national research.
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The employability of young people, where poor information, advice and guidance leads to uninformed choices and limit job opportunities.
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Cheshire and Warrington’s Strengths, Weaknesses, Opportunities and Threats Drawing on the analysis above and wider findings of the programme development process, the tables below present strengths, weaknesses, opportunities and threats evident in Cheshire and Warrington. The analysis has been presented under the headings of people, business, place and environment to provide a rounded assessment. Business Strengths Weaknesses A number of leading world class companies in key manufacturing sectors Low levels of productivity in parts of the manufacturing base Large private sector employment base Low levels of productivity in many parts of the service sector Growing business and professional services base Uneven spread of employment opportunities Exceptionally large number of businesses Variable export record amongst the small business base, with many focused on local markets Above average levels of business start ups Innovation and product development focussed on a narrow group of large Good superfast broadband companies Close to major markets in Liverpool and Manchester City Regions Limited business network due to the size of the Cheshire and Warrington National and international connectivity for business travel and economy logistics/freight Constraints on key sites limiting the development of new commercial space Robust and diverse rural economy for companies Opportunities Threats Forecast increase in global trade over the next ten and twenty years. Continued slow growth in the national and international economies, particularly the Eurozone New markets as developing economies move from producers to producers/consumers Increased competition from developing economies, including in medium skilled manufacturing production Increasing demand for low carbon goods and services Investment in key enabling technologies by advanced economies such as Increased use of ICT connections to improve and expand product/service Germany and the USA ranges and client reach Critical mass of Manchester in developing growth in key financial and Major cities becoming expensive, increasing demand in value for money professional services sector locations Rationalisation of and out-sourcing by key major employers. Logistics, as increases in global trade and e-shopping increase demand for the movement of goods Over-crowded South East, more accessible North West
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People Strengths High and growing proportion of residents employed at Level 4 or above Lower than average unemployment rates Diverse occupational profile, including a strong professional and managerial workforce A large number of entrepreneurs and business managers Two Universities offering a range of under-graduate degrees in both technical and academic subjects Strong Further Education provision, across eight colleges with nearly 50,000 students, plus strong community learning High quality school provision plus new school and college facilities Opportunities Increasing demand for well qualified young people in key sectors such as creative and digital. Identified growth sectors/smart specialisations offering a range of occupational opportunities, including business services and logistics Increase in home working enabled by ICT infrastructure and flexible work arrangements Two Universities offering local employers new graduates in a range of disciplines Increasing levels of graduate retention from the area’s universities Development of new training and education facilities (e.g. Studio Schools and University Technical Colleges) that reflect local sectoral specialisms High paid/high skilled employment opportunities boosted by proximity to Manchester and Liverpool City Regions Local employers able to access personnel from wider labour market due to good transport links
Weaknesses Low skills levels amongst some parts of the population, including poor basic skills and poor educational attainment Persistence of pockets of deprivation and social exclusion within the area Low employment rates amongst certain groups, including those with disabilities Recognised skills gaps, including sector specific skills and skills required across a range of occupations (e.g. ICT, leadership and management and communication skills) Limited connection between current education and training provision and employer skills requirements Threats Ageing population, many continuing to work, reducing employment opportunities for young people Key workers attracted to larger centres, including London and the South East Companies unable or unwilling to recruit apprentices and new graduates Companies unable to recruit key experienced technical skilled workers e.g. engineers Increasing demand for better skilled candidates at all levels of the workforce Increasing demand for good STEM knowledge for school and college leavers Fewer employment opportunities to help reduce deprivation and worklessness Lack of connection between education and training provision and employer needs plus reform of career guidance system
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Place Strengths Outstanding historic city in Chester Fast growing, dynamic, major new town with significant employment land at Warrington Crewe central location and potential HS2 connection Very attractive rural villages and significant market towns Ellesmere Port waterfront Quality and attractiveness of the housing offer and neighbourhoods in many parts of the geography Strong strategic location, including connections to Manchester, Liverpool and North Wales Two Universities providing a large student population, attracted from elsewhere in the UK and internationally Strong rail connectivity to London through frequent, fast services plus strong infrastructure connections to Manchester, including Manchester Airport Opportunities Strategic investment sites available to meet demand for new and continued development to help retain existing and attract new businesses Long term development of HS2 providing opportunities for early investment to help prepare to maximise potential positive and minimise potential negative impacts A number of science park type developments with capacity for growth to meet demand Investing in our cultural and media assets to grow leisure and tourist visitors and increase spend in rural areas and key locations such as Chester Attractive locations for live work initiatives, particularly in rural areas
Weaknesses Many housing and employment sites constrained by lack of infrastructure and road access Local congestion which inhibits new investment at key locations Negative perceptions of Ellesmere Port, despite offering a strong economic location Low levels of house building and affordability constrains population growth and retention of young people High house prices and perceptions of house prices Lack of recent speculative office, industrial and warehouse development limits opportunities for existing businesses to expand and therefore for the area to retain jobs Differential in residential and commercial land values hampers the ability to promote sites for employment use
Threats Transport network may not be able to cope with increased demands to be placed on it by new development Intense competition from other areas to capture new development and inward investment Low levels of house building and affordability continues to constraint population growth Internet shopping could lead to reduction in retail units and undermine town centres Too few quality jobs leads to an exodus of young people Younger families find many towns and villages unaffordable
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Environment Strengths Chester’s outstanding heritage environment Manchester Ship Canal Ellesmere Port waterfront Weaver Valley rural landscape Cheshire Peak District Attractive market towns and villages Upper Mersey Valley Forest Park An extensive and high quality network of green infrastructure Reaseheath College (including the Food and Product Development Centre and Food Engineering Centre) and the University of Chester’s forthcoming Food Innovation Centre Opportunities Increasing demand for quality leisure activities in a rural setting Support for bio-diversity Renewable energy, expansion of the low carbon economy and demand for new technologies and products such as micro-generation Locally sourced food plus opportunities for sustainable intensification of food production and improved competitiveness in food production and processing Demand for agri-skills Opportunities to build on the quality brand of the rural economy The potential for green infrastructure to support economic growth Waste management and re-cycling Business cost savings and improved productivity through greater resource efficiency
Weaknesses Presence of some high energy use businesses and ‘dirty’ sectors Legacy of brownfield land and industrial activities Under-acknowledged scale and scope of the rural economy Road congestion Limited understanding of the economic value of green infrastructure and the natural environment more widely
Threats Climate change and the potential for key development locations to be affected Changes to agricultural policy Flood and the costs on managing risk Costs of bringing brownfield land back in to use Cheap food imports Increasing costs of land management Highways capacity Security of environmental resources, including materials, energy and water
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3.
Vision and Strategic Framework
In gearing up to meet the challenges and capitalise on the opportunities set out in Section 2, the LEP has developed a clear Vision and Strategic Framework to guide its prioritisation and decision making processes. Our Vision for Cheshire & Warrington Delivering economic growth consistently above the UK level, Achieving GVA per head of 110% of the UK average and an economy of £26.6 billion by 2021 making progress towards re-establishing fully our productivity premium advantage, with GVA per head of at least 115% of the UK average and an economy of around £35 billion by 2030 By 2030 to grow our population by 100,000, create 75,000 new jobs and 70,000 new homes Recognised as a modern, strong, sophisticated and attractive business and residential location, both urban and rural and known increasingly for our innovation, enterprise and skills. Strategic Framework Building Blocks The plan is ambitious, but grounded in a commitment to growth and a clear understanding of our economic context. The framework of our vision comprises 5 mutually reinforcing elements backed by independent evidence and research:
A high level Vision (above) Our Strategic Imperatives – these are critical imperatives that enable our vision – it is critical that all the elements of our Growth Plan priorities must contribute to these Intervention Priorities – those particular spatial locations or themed opportunities that offer the prospects for substantial and accelerated growth fuelled by the Local Growth Fund and other funding opportunities Enabling Programmes – proposals that enable and support our Growth Plan: Creating the Conditions for Sustainable Growth – Transport, Housing Growth and Infrastructure Accelerating Smart Growth – Business Support, Innovation, Skills (including Levels 5-8) and Employment
Investment Programme – our work and investment programme that outlines our delivery activity and enables us to plan our resources effectively to enable our aspirations
These are shown in Figure 3.1, below. This plan is strongly grounded by independent evidence and a clear understanding of our economic context. We understand Cheshire and Warrington and our plan is derived from the messages this evidence provides. This context and evidence in contained at Annex B. The vision formalises our goal to reverse the decline in relative GVA per head experienced over the past decade and a half, and moving over the longer-term to re-establish our significant lead over the UK on this key measure of economic performance. The vision also establishes a transparent, communicable, and visible growth target: economic projections suggest under a ‘policy off’ scenario our economy will reach £25.6bn by 2021; through the SEP we will add an additional £1bn, making Cheshire and Warrington a £26.6bn economy in the same time frame.
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With a view to the longer-term, it seeks to provide a focal point and incentive for partners to accelerate the rate of growth, ensuring we remain on course to be a £35bn economy by 2030. Figure 3.1: Strategic Vision and Framework
Our Vision
By 2021 Cheshire and Warrington will be: An economy of £26.6bn with GVA per head 110% of the UK average By 2030 Cheshire and Warrington will be: An economy of £35bn with GVA per head 115% of the UK average Home to an additional 100,000 residents, 75,000 new jobs and 70,000 new homes
Our Strategic Imperatives
Intervention Priorities
Enabling Programmes
Specialised & differentiated sectorally, & a manufacturing renaissance
Atlantic Gateway in C&W
Equipped for market & technology change
Housing Growth
GVA per Head of 110% of the UK average
Maximising our growth assets – property & place
Cheshire Science Corridor
Creating the conditions for sustainable growth
Transport
Success means that by 2021 we will have achieved
Attracting & retaining talent
Infrastructure
Restoring our worker productivity premium
Internationally connected & engaged
Crewe High Growth City
Accelerating smart growth
Business Support
An economy of £26.6 billion
Innovation
Skills & Employment
Made progress towards reestablishing our premium advantage, aiming at GVA per Head of 115% of the UK average & an economy of around £35 billion by 2030
Translating the Vision and Strategic Framework from policy to practical delivery, will involve focused effort on: Creating the Conditions for Sustainable Growth, through delivery in the areas of Transport, Housing, and wider Infrastructure, and Accelerating Smart Growth, through delivery in the areas of Business Growth, Innovation, and Skills and Employment.
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In addition, to achieve the vision, six strategic imperatives will be crucial. Whilst emphases will vary, all interventions delivered through the SEP must contribute to at least one of them:
SI1: Specialised and differentiated sectorally, and delivering a manufacturing renaissance, exploiting the key science and technology strengths that will enable us to access new and high value markets, and modernise and exploit new/emerging economic activities, as well as driving forward the renaissance of manufacturing – increasingly advanced, content-rich and competitive internationally – in terms of productivity
SI2: Attracting and retaining talent ensuring that we provide the housing offer, employment opportunities, and quality of life that will keep talented and economically active people and families in Cheshire and Warrington
SI3: Equipped for market and technology change, ensuring we are equipped to operate in the increasingly complex world of markets and technologies, and that our businesses, investors, and decision makers allow, and plan, for these challenges
SI4: Maximising our growth assets – property and place, as a polycentric economy, we must make the most of our existing urban centres, significant endowment of sites, premises and development opportunities, including through the development of a fit-for-purpose transport and infrastructure platform
SI5: Restoring our worker productivity premium, moving progressively to a position where all of our main sectors generate productivity in line with, or above, the UK average, and where our workers and businesses compete effectively on content and quality in the global economy
SI6: Internationally connected and engaged to ensure Cheshire and Warrington’s has access to all those factors, such as sources of R&D, innovation, business expertise, knowledge networks, and specialist labour which will allow the economy to develop its long-term growth potential
To give real impetus to the programme the LEP has made a clear and bold move by prioritising the three intervention priorities set out below. These have been selected as they are aligned with with our strategic imperatives; and they offer the best opportunities for delivering new jobs, additional houses and GVA growth in the short term. They are truly transformational and will take not only Cheshire and Warrington’s economy forward but will transform the North of England’s economic future and have national and international impact.
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4. Intervention Priorities The Growth Plan for Cheshire and Warrington is both bold and clear and is highly focused on delivering our three most important opportunities – our intervention priorities - and a set of enabling programmes: The Intervention Priorities: The Atlantic Gateway in Cheshire & Warrington – reinforcing and grasping the opportunities of what Lord Heseltine and Sir Terry Leahy termed ‘Britain’s Second Engine of Growth’ – the world trade, logistics, business and innovation corridor stretching from Deeside and Merseyside through the northern part of Cheshire and Warrington to Manchester. Warrington, one of the UK’s most important locations for investment and business growth, coupled with Chester and Ellesmere Port form integral components of this growth corridor.
The Cheshire Science Corridor – connecting into the Cities of Manchester and Liverpool, there are a string of interconnected centres of excellence located in Cheshire which are or have the potential of contributing significantly to national innovation in science – Capenhurst, Thornton, SciTech Daresbury, Birchwood Park, Jodrell Bank and Alderley Park
Crewe High Growth City – the major development hub centered on Crewe with accelerated growth potential in both business and homes. Sir David Higgin’s report now places Crewe at the heart of HS2 as a superhub central to the countries’ major infrastructure network – a national hub for transport connectivity. This puts in place the key driver for High Growth City.
The Enabling Programmes: Creating the Conditions for Sustainable Growth
Transport – investments in critical infrastructure to drive growth and productivity plus tackling congestion
Housing growth – to broaden our housing offer to support our economic aspirations
Infrastructure – maximising our growth assets – property and place
Accelerating Smart Growth
Business support – to help existing businesses to grow, new businesses to start and to attract new foreign direct investment
Innovation – equipping our businesses for market and technology change
Skills & Employment – to help build the workforce of the future to support our dynamic and growing business base including high level skills. This includes the FE Capital Fund – investment to keep our key educational institutions as centres of excellence for our young people.
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Intervention Priority 1 - The Atlantic Gateway in Cheshire and Warrington– Britain’s second engine of growth Rationale for Intervention The Atlantic Gateway is the most significant opportunity in the UK to attract investment, accelerate growth and rebalance the economy. It is a proposition to create a critical mass to achieve a new level of growth not previously achieved in the UK outside of London. By 2030, there is the potential for some 250,000 new jobs to be created in the Atlantic Gateway area generating £14 billion of new investment. Atlantic Gateway represents an opportunity to invest in high growth innovation driven sectors and major large scale infrastructure projects that will stimulate demand in the economy much quicker than supply side measures. Atlantic Gateway identifies the strategic assets and opportunities across the area and provides the forum for a greater degree of collaboration across LEPs to accelerate investment and growth. It also provides a medium for working across Government to inform policy and establish national priorities for investment to rebalance the economy. Atlantic Gateway also provides a platform to promote low carbon sustainable growth and support the development of green infrastructure and sustainable travel. The Atlantic Gateway is about more than just high value jobs, logistics, connectivity and infrastructure – it is a major opportunity to drive development and growth in the cores of two of our principle urban centres – Warrington and Chester – for commerce, jobs, new homes, retailing and culture. They will become ‘beacons’ of urban life and commerce on the Atlantic Gateway. Figure 3: Atlantic Gateway Corridor
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Activities The Greater Manchester/Cheshire & Warrington/Liverpool City Region LEPs and the North East Wales authorities are working closely together to examine the areas in which our economies are inter-related and therefore the added value of joint work and a long term planning approach from LEPs, local government and national government to drive jobs, growth and inward investment. This work is being progressed through the Atlantic Gateway area and we are clear that, in that area, opportunities do exist for joint projects to exploit the economic potential, particularly building on assets in relation to:
Life Sciences/Big Science (e.g. Liverpool Science Park, Daresbury, Alderley Park, Corridor Manchester) Logistics/Freight (e.g. Liverpool 2, Port Bridgewater, Port Warrington, Port Salford, Omega/Warrington) Wider infrastructure (e.g. HS2, Northern Hub, Liverpool & Manchester Airports) Digital and Creative (e.g. Media City)
Many of the Cheshire and Warrington Atlantic Gateway projects are longer term – however the LEP wishes to build upon the momentum built up through areas such as Omega Ellesmere Port and Birchwood as well as delivering the essential foundations of growth in the Gateway. In the last x years there has already been significant investment in projects under Atlantic Gateway in Cheshire and Warrington. OMEGA North has delivered [sq m] of new logistics and distribution space creating over 1,400 new jobs. Working in partnership with private sector partners such as Miller Homes, Peel Holdings over £0.5 billion has been invested or committed. Cheshire and Warrington Atlantic Gateway Priorities: Warrington Waters: a programme of projects which together will expand Warrington’s Town Centre and create a new major mixed use development area set alongside the Manchester Ship Canal and River Mersey – including expanding Port Warrington and enhancing bridge crossings. This includes the Warrington Engineering UTC and Incubator driven by major local businesses being delivered this year
Warrington West: A programme of projects which together enable business locations of international importance and scale – reinforcing Warrington as a nationally important hub for energy, engineering, software and telecoms and logistics – focusing on Omega and Lingely Mere
Warrington East: unleashing one of the most successful business locations in the UK and the home of Warrington’s Nuclear Cluster – the largest concentration of nuclear engineering and design companies in the Country – focusing on Birchwood Park
Chester Central: a major new development programme in the heart of the City – the One City Plan (Northgate and Chester Central Business District) and the Investment in a major upgrading of Chester’s transport infrastructure to accommodate and unlock these opportunities
Ellesmere Port Strategic Regeneration Framework: a vision and framework for economic development in Ellesmere Port – complementing its bid for Assisted Area Status
Halton Curve: Improving strategic connectivity to North Wales and Merseyside including into Liverpool Airport through re-instatement of the Halton Curve
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Outputs Chester Central: 5,170 jobs, 440,000 sq. ft. Grade A office space, 250 residential units, 500,000 sq. ft. of retail, £150 pa million GVA. Warrington Waters: 32,000 jobs, 1,615 homes £500m million private sector investment enabled, £646 million GVA pa. Warrington North: 19,750 jobs, 1300 homes, £522 million private sector investment enabled, £1.25 billion GVA pa. Ellesmere Port Strategic Regeneration Framework: 6,000 jobs, 8,500 residential units.
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Intervention Priority 2 - The Cheshire Science Corridor – an international corridor of science and innovation connected into a wider strategy for science linked to Liverpool and Manchester City Regions Rationale for Investment The Government has stressed the importance of developing our research and development capacity. To quote the Department of Business Innovation and Skills: ‘Science and research is at the heart of the UK’s growth, prosperity and wider well being. Public investment in Science and research is an investment in the nation’s future, ensuring that the UK has a productive economy, healthy society and contributes to a sustainable world’8. Cheshire has some of the most significant science based assets in the north of England some of which are of global importance: - in advanced scientific analysis and research, pharmaceuticals R&D, pharmaceuticals manufacturing, chemical engineering, energy and nuclear engineering, radio-astrophysics and astronomy. The key assets are: Capenhurst Thornton Science Park Sci-tech Daresbury (in Liverpool City Region LEP area) Birchwood Park’s Nuclear and Forensics Clusters Alderley Park Jodrell Bank and the Square Kilometre Array, the largest and most sensitive radio telescope in the world This growing science includes scientific manufacturing in Macclesfield, leading astrophysics research at Jodrell Bank, world class life sciences research hub at Alderley Park, and the world’s largest mass spectrometry headquarters at the Waters Corporation in Wilmslow. This concentration of science excellence is a strong base to underpin the fantastic offer of research in the North West, which extends to the Manchester Science Park, Science Corridor development, Media Park in Trafford, Sci-Tech Daresbury, Capenhurst and Thornton Science Park. The area is host to a concentration of globally significant companies which represent a hotbed of intellectual capacity and entrepreneurship. A high quality environment, with good connectivity that transcends the sub-region, and an outstanding track record of creating and building new businesses and attracting investment gives Cheshire – as part of a wider North West Science & Technology cluster - the potential to become a UK leading area for future investment and innovation in many of the ‘Eight Great Technologies’. Activities The potential of the corridor will be delivered by:
Creating a virtual and real Network of Innovation in Science and Technology through the leadership of existing global brands and high growth SMEs, together with leading higher education and research institutions, and government
https://www.gov.uk/government/policies/investing-in-research-development-and-innovation/supporting-pages/science-andresearch-funding 8
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Developing new finance and investment tools and target existing funding opportunities to help grow companies with high growth potential Providing the right sites in the right locations with the right infrastructure, enhanced by the highest quality of life in order to attract the best talent to the area Building a workforce for the future and develop the existing skills base by ensuring that the right skills provision and education is in place
These assets are enhanced by the indigenous presence of University of Chester, Manchester Metropolitan University, Reaseheath Further Education College and the strength and accessibility of the expertise and teaching of several neighbouring institutions including University of Manchester interests at Jodrell Bank and Alderley Park and Liverpool University’s veterinary campus. Either “on site” from University of Chester or accessible through the gateway of the MMU Cheshire campus are academic and consultancy expertise, teaching and research that will support the Cheshire Science Corridor objectives in the areas of Advanced manufacturing and materials, High Level Computing, Aerospace and Automotive, Alternative Energy, Chemical and Bio chemical science. The Science Corridor will build on this and promote, enable and coordinate wider investment from public and private sector sources to form an overall investment plan to build these important science assets to stimulate jobs and growth. Cheshire Science Corridor Priorities: Thornton Science Park - the University of Chester and public and private sector partners are investing £23m to develop an internationally recognised centre of excellence in Advanced Energy Systems to capitalise on it’s unique legacy assets. One of the signature projects is the SMART Grid Demonstrator - a shared facility to meet the growth needs of the energy sector, allowing businesses to test new technologies and model energy usage with combinations of old and new energy sources
Alderley Park Science for Life – harnessing this site’s world class, highly valuable and specialist R&D facilities and its existing supply chains and related businesses, into a location of national and international excellence for advanced scientific analysis and research – with a particular focus on human health science, R&D, technologies and processes. This is a joint project with Greater Manchester LEP.
Greater Manchester & Cheshire Life Science Investment Fund - A collaborative venture with Greater Manchester to provide access to specialist investment finance to support cluster development. The Government-led Alderley Park Task Force commissioned a detailed Demand Study for Life Sciences in 2013 which made a number of detailed recommendations which now inform this proposal. The Investment Programme will build a UK Life Science ecosystem to attract, develop and reward talent, and overcome barriers to promote innovation through the following actions: o o o
Creation of a £40m Investment Fund to support growth in life science SME’s Strengthen the existing ecosystem in the sub-region through networking and mentoring Align existing resources for business support with the requirements of the sector. Align existing resources for business support with the requirements of the sector
Outputs 4690 jobs created, 500 homes, and 82,970m2 floorspace will be delivered. 41
Intervention Priority 3 - Crewe High Growth City - A ‘constellation new city’ with a rail superhub at its heart Rationale for Investment Crewe is located at the centre of a strategic road and rail network with 4.9million people with one hour’s travel. It is a focal point and hub for regional connectivity and it provides an unrivaled opportunity for growth and economic development. Already well connected nationally and regionally, our future growth focuses on the potential provided by a ‘cluster’ of towns being at the centre of a strategic road network and Crewe being a superhub in the HS2 system. This has recently been highlighted by Sir David Higgin’s report which reinforces the role of Crewe in the HS2 project. Our growth plan for Crewe and its surrounding market towns will take advantage of current and future connectivity, capacity for growth and growing competitiveness based on recent investments by Bentley (£800 million). High Growth City combines four key elements that make it an exceptional opportunity:
Unconstrained land for growth – both homes and employment A strong technological and human capital base with some of the UK’s leading businesses such as Bentley, Siemens and Senior Aerospace A constellation of towns that strongly interact as a single integrated market area – with strong individual identities and strong interrelationships Connectivity through its transportation infrastructure – which the Superhub and M6 Smart Motorway will reinforce.
Figure 8: Crewe High Growth City
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Activities High Growth City is obviously a long term project – however the LEP is keen to start laying the foundations for this exciting business industrial and socially transforming initiative now. This includes plans to work with universities to develop the national HS2 Rail Academy and University Technology College in the City. These assets plus the existing HE and FE presence will enhance capability in the region in relevant technology/engineering/science and management, leadership, business growth and commercial development. Crewe High Growth City Priorities: Crewe Superhub Station - new rail hub on the HS2 network – enabling Crewe to be a major focus for rail and transport connectivity and major growth: o Basford West Crewe o Super Hub Station
Growing the Constellation City – critical infrastructure to enable the development of strategic employment and housing development sites: o Middlewich Eastern Bypass o Crewe Green Link Road o Crewe Northern Growth Corridor o The Congleton Link Road
Skills and Workforce Development – development of a hub for engineering skills, innovation and expertise underpinned by an growing educational platform which closely links our educational offer to the needs of current and future business growth i.e. University Technical College led by Bentley, OSL, Jacobs specialising in engineering and design, and a developing bid to host the National Rail College in Crewe led by MMU.
Outputs GVA will increase by £379m pa GVA by 2031, 25,000 homes, 10,000 jobs created and 320 ha of additional employment land will be delivered.
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Enabling Programmes As well as our Priority Projects and the Foundation Investments we also plan six enabling programmes to create the conditions for growth – these support the intervention priorities but also enable additional and accelerated growth in themselves. These complementary programmes are grouped into two themes: Creating the Conditions for Sustainable Growth: Transport, Housing Growth, and wider Infrastructure Transport Based on the spatial objectives of the SEP to deliver growth, the current transport network of the area, and the need to address its inherent weaknesses, the rationales for investment in transport infrastructure are:
To improve connections to neighbouring sub-regions, and in particular international gateways to ensure business has connectivity to global markets and to facilitate the economic benefits of both out and in commuting that takes place on a daily basis Pinch points and congestion in the transport network, both road and rail, act as barriers to growth if left unaddressed. Delays and unpredictable journey times affect business activity directly and indirectly, and influences commuting flows Network resilience needs to be addressed to deliver predictable and efficient journey times to support business productivity Make best use of the existing road (e.g. smart motorways) and rail network (e.g. electrification), to capitalise on existing infrastructure, offers efficient mechanisms for improvement, and will help deliver best value for money from investment Capacity constraints on the West Coast Mainline are restricting the enhancement of improved rail connectivity in the sub-region
The objectives of the transport priority are to:
Transform connectivity across, and to and from, the Atlantic Gateway World Trade Corridor Unlock the opportunity that is High Growth City focused on Crewe and connected Mid-Cheshire towns and facilitate delivery of the HS2 Crew Hub Station Improve access to unlock priority employment and housing sites across the LEP area including the Science Corridor
Housing Growth The rationales for investment in the sub-regional housing market are:
Increase the level of housing construction above current levels to accommodate a resident workforce with a requisite balance of skills Ensure that the housing offer across Cheshire and Warrington responds to demographic shifts, meeting the needs of an ageing population while providing for the formation of new households Test and develop the viability and deliverability of new innovative products and approaches to promoting housing delivery. Intervention is required to: co-ordinate the market and the main players in order to champion growth Address key barriers to housing delivery. These include the costs associated with site remediation and the delivery of enabling infrastructure as well as restricted access to bank and institutional funding
There are four objectives under the housing investment priority: 44
Support the creation and ongoing development of a coordinated housing strategy and implementation plan for Cheshire and Warrington Work with partners in the private and public sector to create the right conditions (in relation to site availability, infrastructure and finance) that enable the housing market to respond effectively to demand and to support sustainable population and economic growth Assemble a toolkit of interventions that enables the LEP to facilitate the delivery of high quality housing schemes that meet the needs of current and future communities Actively promote opportunities within Cheshire and Warrington to test high quality, innovative and sustainable housing solutions
Infrastructure The rationales for intervention in the infrastructure priority are:
Accommodating significant new investment, including international investment, requires a forward looking infrastructure plan which needs to incorporate power and water, as well as land supply. In addition, it is necessary to look ahead to the next steps in digital connectivity, beyond superfast broadband, benchmarked against the leading regions in the world, including Asia There are some developments, such as Atlantic Gateway, which are of national significance; facilitating this growth will contribute to national growth targets Market forces alone will not bring forward key elements of the economic infrastructure needed to support economic growth
There are five objectives under our infrastructure theme:
Provide a portfolio of market responsive, readily available employment sites that meet the needs of key economic sectors and clusters, as well as attract inward investors and new investment by indigenous businesses Ensure Cheshire and Warrington business locations have access to adequate power, water and waste disposal facilities to meet the needs of current and future key economic sectors and clusters, inward investors and new investment by indigenous businesses Ensure critical infrastructure is in place to support Cheshire and Warrington’s Transformational Projects - High Speed 2 at Crewe and Atlantic Gateway are nationally significant projects with the potential to generate significant economic benefits across Cheshire and Warrington and beyond Ensure Cheshire and Warrington’s businesses and residents have access to market leading digital connectivity, taking advantage of the opportunities of superfast broadband and looking beyond to the next generations of digital connectivity, benchmarked against the best in the world Develop Infrastructure Investment Funding Models to accelerate investments. There is a need to bring together both public and private sector investment finance to accelerate and de-risk the infrastructure investment needed to accelerate employment and residential locations
Accelerating Smart Growth: Business Support, Innovation, and Skills and Employment Business Support The rationales for investing in this priority are:
To create a highly supportive and competitive environment for our world-leading large and mediumsized firms so that they remain resilient and steadfastly embedded locally 45
Our business base is large and diverse, spatially, sectorally, technologically, and in terms of core markets; as a result, the business support landscape has often been locally focused, providing a spatially bespoke but somewhat un-coordinated offer; as a result, opportunities for improved businessto-business linkages, shared learning/good practice, and delivery efficiencies have not been maximised Given global market, technology and innovation trends, the competitive advantage of our manufacturing base is slowly eroding, impacting on our economic performance and productivity; alongside growing other sectors and industries in which we have specialisms, revitalising our manufacturing base – moving increasingly up the value chain – is critical. Supporting SME growth plans through better promotion and marketing of existing and new funding sources and financial instruments Ensuring access to a larger share of public resources for Cheshire and Warrington businesses
There are five objectives under our business support theme:
Increase the contribution to the economy of industries, supply chains, and technologies with high growth potential and where we have embedded existing strengths and capacity; this includes R&D in natural sciences, engineering and technical consultancy, energy, automotive, chemicals and agri-tec Develop Cheshire and Warrington into a leading destination for UK and international inward investment, securing additional inward investment in higher value-added industries, especially in our defined niche areas of specialisation Provide existing and viable start-up businesses and social enterprises with a fully resourced and marketed business support capability, embracing additional business skills to meet their growth, quality, innovation, and competitiveness enhancement needs including the exploitation of incubation and spin out opportunities from across the Higher Education base Help our businesses to build quality external relationships, taking advantage of national and international networks (business, university, and R&D related relationships), growth markets, and global supply chains Ensure adequate and suitable Investment Finance is made available to – and accessed by sub-regional firms and social enterprises – to support their business growth ambitions
Innovation The rationales for investing in the innovation priority are:
Prospects for economic growth in Cheshire and Warrington are dependent on the continued competitiveness of key innovation-intensive sectors, including ‘Advanced Engineering’, ‘Life Science and Chemicals’, ‘Energy and Environment’, and ‘Financial and Professional Services’. If the innovation demands of these critical industries are not served adequately, the offer afforded by other locations may lead to our firms leaving the area. Advancing globalisation increasingly challenges business to differentiate, extend their value-added proposition, and shift towards the ‘non-routine’. If Cheshire and Warrington is not recognised as a supportive host for this activity relative to other regions of the UK and Europe, investment in growth could be stifled. In developed economies, potential destinations for start-up or expansion are appraised increasingly in terms of their connectivity and agglomerative benefits. Accessible and productive networks, internal and external, are fundamental to an area’s innovation proposition but are slow to grow in the absence of ‘pump-priming’, facilitating intervention. Innovation is core to the business-driven export and productivity gains sought by Cheshire and Warrington. At present, the area’s innovation capacity is focussed on ‘incremental innovation’ focussed on improvements to existing products in existing markets. However, ‘disruptive innovation’, focussed on 46
new products for new markets, is inhibited by its inherent risk and high costs. Intervention is required to ‘de-risk’ disruptive innovation and unlock the benefits for the economy and area. The knowledge networks fundamental to innovation systems typically fail on the grounds of a weak, or unfocussed knowledge production and an inability amongst businesses to connect that knowledge to the market (otherwise termed ‘low absorbtive capacity’). Currently, mismatches in Cheshire and Warrington knowledge production and exploitation processes render the area’s innovation system ‘leaky’. Intervention is required to unify and optimise knowledge production and exploitation processes – ensuring that new knowledge is able to find a path to market and filling gaps via targeted relationships with external players.
There are four objectives under our innovation theme:
Ensure our investments in innovation are informed by a thorough, current, and well-developed understanding of innovation and knowledge agendas that apply to the private, public, and third sectors Define and articulate our areas of Smart Diversification, emphasising the role that innovative business, connectedness, and relatedness will play on our ongoing economic base Develop and maintain actively, innovation and knowledge networks and linkages with Centres of Excellence elsewhere in the UK and internationally, which support our Smart Diversification imperatives Build and maintain actively, a functioning innovation ecosystem that enables innovation and Smart Diversification across and between our sectors and communities, and leverages linkages with international Centres of Excellence and markets
Skills The rationales for investing in the skills are:
Economic productivity in Cheshire and Warrington has declined in the last fifteen years requiring intervention to drive improvements within the existing workforce and increase engagement towards full employment, particularly in the context of an ageing population (contributing to a declining working age population) and pockets of worklessness Securing the skills needs of employers is fundamental to supporting economic growth and responding to replacement demand. There is a need to equip both young people and adults with the skills that employers need and ensure that the area provides an attractive employment proposition to attract and retain workers, particularly those with high level skills Employers need to be supported to drive skills provision that responds to their needs, retaining flexibility to respond to evolving requirements Residents, including young people, need to be alert to the range of local employment opportunities currently available and expected to be created over coming years to allow them to develop skills and gain qualifications that enhance their career prospects. Skills requirements are diverse and there is a need to ensure an appropriate workforce is available to accommodate replacement demand across the economy as well as growth sectors if Cheshire and Warrington is to maximise its economic contribution From 2015 the responsibility for FE Capital funds will transfer from The Skills Funding Agency to Local Enterprise Partnerships. This includes ensuring high quality FE estate and supporting capital investments to support economic growth. Intervention is required in FE facilities to ensure a high quality, employer-focused further education infrastructure, which is essential to achieve our ambitions. The prioritised FE Capital projects form a coherent package. They demonstrate that the LEP is committed to addressing its category C or D FE estate, to ensure that the FE offering across the LEP 47
geography is consistent. The full package is designed to deliver immediate impact whilst establishing long-term infrastructures that will be flexible enough to respond to future changing economic priorities. There are ten objectives under our skills theme, incorporating both revenue and capital funding:
Put employers at the forefront of skills delivery to meet the skills needs of their current and future workforce by establishing a framework of Higher Education led interventions (in partnership with FE Colleges) to increase High Level Skills capacity and take up by business and individuals e.g. under graduate and graduate employability programmes; extra curricula enterprise skills/ entrepreneurship programmes; post graduate modules and courses Develop a partner co-designed employability programme, through ESF 2014-2020 programme Agree a Big Lottery funded programme to engage disadvantaged groups and those furthest from the labour market, through ESF 2014-2020 programme Continue to work with the Skills Funding Agency and to accept the offer of additional support to deliver our skills programmes Invest in national centres of excellence e.g. agri-tech Invest in facilities to support employer led skills provision eg UTCs at Warrington and Crewe Build on existing sector strengths e.g. automotive manufacturing and advanced engineering while developing new ones for the future Support our focus on HS2 and developing the skills required now and in the future (either as the Hub for the FE College or one of the spokes) Develop sector specialist employer/ business hubs to realise the potential in the polycentric nature of Cheshire and Warrington Complete the renewal of our estate, 22% of which is currently classed as category C or D.
These priorities are not new, neither are they just conceptual aspirations, they already exist – our plan is to:
Build upon the momentum already existing in these areas Put in place the additional building blocks to enable them to drive forward – we term these our ‘Foundation Investments’ – our immediate deliverables over the next 3 years Plan for the future – to enable them to reach their true potential Focus the energies of both the public sector and private sector into delivering these priorities and reinforcing the conditions for their sustainable growth through transport, homes, digital connectivity, support for businesses, support for higher and further education and providing the skills to fuel these economic engines.
The objectives of Cheshire and Warrington Matters frame the projects and programmes progressed through both private and public sector mechanisms, including the Growth Fund, Regional Growth Fund and European Structural Funds.
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5.
The Growth Deal
Cheshire and Warrington can already demonstrate significant levels of ongoing investment from both the private and public sectors in support of economic growth. Our three Local Authority partners alone have committed capital investment programmes totalling almost £1 billion over the next three years in support of economic development and regeneration. In addition, we are working with partners to identify and maximise the opportunities presented by existing national and European funding streams such as the Homes and Communities Agency’s ‘Affordable Homes Programme’, Local Infrastructure Fund, Regional Growth Fund, Growing Places Fund and Local Authority prudential borrowing. However, challenges remain in relation to:
Unlocking key growth sites through removal of pinchpoints or site-specific remediation issues
Improving connectivity between our LEP area, Liverpool City Region and North Wales in order to increase access to employment opportunities
The ongoing repercussions of the financial crisis on access to finance and scheme viability for some development projects
Ensuring effective and consistent support locally and sub-regionally to our businesses
The Local Growth Fund is now the main route for securing allocations from the Department for Transport (such as the Local Sustainable Transport Fund) and from the Department for Education for the FE Capital Fund. Importantly, the Local growth Fund offers an opportunity to accelerate delivery of a series of what we call “Foundation Investments”. The combined programme for which Cheshire and Warrington is seeking Local growth Fund support is set out in the table below. Funding of £124.8m from Local Growth Fund will attract a further £252m of public and private finance over the initial three year period (2015/6 – 2017/18), equivalent to over £2 additional funding for every £1 of LGF. Over the longer term, the developments enabled by the foundation projects set out in Table 5.2 will lever in almost £2 billion of private sector investment, equivalent to over £16 of private money for every £1 of LGF. In addition, we commit to deliver the short and longer term additional outputs set out in Table 5.1, below:
Foundation Investment Table Table 5.1: Summary Outputs Total Outputs
2015/16 – 17/18
Jobs Homes Floorspace (sq. m) Private sector leverage Public sector leverage
12,473 3125 230,294 £172.31m £80.16m
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2018/19+ 60,070 7170 972,923 over £2000 million over £70 million
Priority Intervention Summary
Outputs
Costs
Atlantic Gateway
LGF: £45.87m Total Investment: £76.28m
45,955 jobs 1300 homes £1,912m private sector investment 732,450 sq m floorspace £593.1m additional GVA
Science Corridor
LGF: £36.4m Total Investment: £98.08m
4,690 jobs 500 homes 82,968 sq m floorspace £78m private sector investment £214m additional GVA
Crewe High Growth City (Phase 1)
LGF: £52.6m Total Investment: £108.98m
7850 jobs 3970 homes 143,000 sq m floorspace £33.78m private sector investment £8m additional GVA
Local Growth Fund provides the opportunity to bring forward our project pipeline, accelerating the delivery of a series of major development projects which the early interventions unlock and enable. The brief project details of the “Foundation Investments” that comprise this headline proposal are set out in Table 5.2, below. More detailed financial information on each project can be found within the Financial Summary table located at Annex A. Further information on each project is contained in the detailed project proformas set out in Annex E. Table 5.2: Foundation Investments
Atlantic Gateway
Priority Intervention
Project Chester Central (including access to Central Business Quarter)
Strategic Imperative Supported SI 2 SI 4
Description Unlock major office and retail development opportunities in Chester Central Business Quarter and at Northgate through investment in strategic transport infrastructure
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Costs Total Cost: £25.1m LGF: £16.2m Other Public: £8.9 m
Gross Lifetime Outputs Private sector leverage £540m Jobs created: 5,170 Land: 10Ha Floorspace: 97,750m2
Provide essential access to the Central Business Quarter development opportunity through investment in a strategic transport maintenance scheme
Halton Curve
SI 2 SI 4
Warrington West OMEGA – M62 Junction 8 Highway Improvements
Warrington West Station
SI 4 SI 6
SI 4 SI 6
Start Date: 2015 Joint transport infrastructure project with Liverpool City Region LEP and Merseytravel to upgrade the existing Halton Curve railway line allowing scheduled passenger journeys and access to employment opportunities between North Wales, Cheshire and Warrington and Liverpool Start Date: 2016 Facilitate the ongoing development of key development sites at OMEGA and Lingley Mere in West Warrington through investment in essential Strategic highway improvements Start Date: 2016 Local Transport Body priority scheme to provide a new station and enhanced regional public transport access to the OMEGA and Lingley Mere developments.
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Total Cost: £13.4m
Jobs created: 10,500
LGF: £10.4m
Total Cost: £10.8m LGF: £8.3m Other Public: £1.25m Private: £1.25m
Total Cost: £12.36m LGF: £3.53m Precommitted LGF: £8.35m Other Public: £0.48m
Private sector leverage £522m Jobs created: 19,750 Homes: 1,300 Land: 137Ha Floorspace: 559,700m2
Included above
Warrington Waterfront access infrastructure phase 1
Warrington East Birchwood Pinchpoint Programme
SI 4 SI 6
SI 1 SI 4 SI 6
Alderley Park Science for Life
SI 1 SI 2 SI 3 SI 4
Start Date: 2016 Create a major development opportunity in Warrington Town Centre by investment in strategic transport infrastructure Start Date: 2016 Unlock three development sites within the highly successful Birchwood Employment Area in North East Warrington through investment in essential transport infrastructure Start Date: 2015 Initial phase to remodel the former Astra Zeneca site at Alderley Park to commercialise the site’s unique, highly specialist R&D facilities
Total Cost: £11m LGF: £5.3m Precommitted LGF: £5.7m
Total Cost: £3.62m LGF: £2.14m Other Public: £0.4m Private: £1.08m
Total Cost: £4.0m LGF: £2.0m Private £2.0m
Private sector leverage £500m Jobs created: 3,535 Land: 19Ha
Private sector leverage £350m Jobs created: 7000 Floorspace: 76,000m2
Private sector leverage £2m Jobs created: 170 Floorspace: 78,968m2
SI 5
Science Corridor
Start Date: 2015 GM & Cheshire Innovation Fund
SI 6 SI 1 SI 3 SI 5
Thornton Science Park
SI 1 SI 2 SI 3
A collaborative venture with Greater Manchester LEP to provide access to specialist investment finance to support cluster development Start Date: 2015 Transforming the former Shell Research & Development facility at Thornton into a world leading centre for Advanced Energy 52
Total Cost: £40m LGF: £10m Other Public: £10m Private £20m
Total: £22.08m LGF: £8.0m Other Public: £9m
Private sector leverage £20m Jobs created: 2,000
Private sector leverage £46m Jobs created: 1,900 Floorspace: 4000m2
SI 4 SI 5
Poynton Relief Road
SI 6 SI 4 SI 6
Middlewich Eastern Bypass
SI 2 SI 4
Congleton Link Road
SI 2
Crewe High Growth City
SI 4
Systems operated by the University of Chester Start Date: 2015 Local Transport Body priority scheme. Provision of a new 3km Relief Road to support the economic, physical and social regeneration north east Cheshire, in particular Poynton and Macclesfield and improve links to Manchester Airport Start Date: 2017 Facilitate the expansion of the Midpoint 18 Business Park Provision by investing in a 2.2km stretch of carriageway to complete the Middlewich Eastern Bypass Start Date: 2015 Unlock development opportunities to the north and west of Congleton for housing and employment development, improving access to the existing Radnor Park industrial estate and Congleton business park by the provision of a 5.5km single carriageway road linking the A534 and A536. Start Date: 2016 53
Private £5.08m
Total Cost: £32m LGF: £16.4m Precommitted LGF: £5.6m Private £10m
Total Cost: £22m LGF: £2.5m Other Public: £4.1m Private: £15.4m
Total Cost: £75m LGF: £45m Other public: £15m Private: £15m
Private sector leverage £10m Jobs created: 620 Homes: 500
Private sector leverage £15.4m Jobs created: 2,800 Homes: 450 Floorspace: 143,000m2
Private sector leverage £15m Jobs created: 3,500 Homes: 2,200
Crewe Green Roundabout
SI 2 SI 4
Crewe Northern Growth Corridor – Sydney Road Bridge
Housing Investment Fund
SI 2 SI 4
SI 2
Enabling Programmes
SI 4
Business Growth Hub
SI 1 SI 2 SI 5
Unlock strategic employment sites at Basford, Capricorn (J17) and directly open up an allocated housing site by investing in highway improvements to remove a key congestion pinchPoint on the main distributor network Start Date: 2016 Local Transport Body priority scheme as part of the Crewe Northern Growth Corridor. Open up development sites of Leighton West, Coppenhall East and Maw Green by the removal of the Sydney Road Bridge pinchpoint Start Date: 2015 Develop a specific revolving fund (as an extension of our existing Growing Places Fund) targeted at unlocking housing sites which have stalled. Start Date: 2015 Establish a common branded, single point of access Business and Innovation Growth Hub for SMEs
SI 6 Start Date: 2015
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Total Cost: £5.0m LGF: £3.0m Other Public: £1.0m Private: £1.0m
Total Cost: £6.98m LGF: £2.1m PreCommitted LGF: £2.5m Private £2.38m
Total Cost: £97.5m LGF: £12.5m (includes £1.5m revenue) Private: £85m
Total Cost: £12.10m LGF: £1.8m Other public: £6.3m Private: £4.0m
Private sector leverage £1m Jobs created: 750 Homes: 570
Private sector leverage £2.38m Jobs Created: 800 Homes: 750
Private sector leverage £119m Jobs Created: 375 Homes: 1400
Private sector leverage £4.0m Jobs: 1,200
FE Capital Fund
SI 1 SI 2 SI 3
Capital investment in new and existing FE facilities: Agri-tech Food and Life Science Facility at Reaseheath College;
SI 5 Start Date: 2016/17
Total Cost: £36.4m LGF: £12.1m Other Public: £17.5m Private: £6.8m
Engineering Excellence in South Cheshire; Start Date: 2015/16 Estate renewal at Reaseheath and MidCheshire Colleges; Start Date: 2015/16 Employer-Business hubs Start Date: 2016/17 Integrated Transport Block – Minor Schemes
Local Sustainable Transport Fund
SI 4
SI 2 SI 4
Local Transport Body schemes delivered and funded as part of the Integrated Transport Block – Minor Schemes programme
Total Cost: £8.37m
A package of minor works forming part of the Local Transport Body programme delivered and funded as part of the Local Sustainable Transport Fund
Total Cost: £4.46m
55
LGF: £8.37m
LGF: £4.46m
Private sector leverage £6.8m Floorspace: 13,375m2
Critical Infrastructure Maintenance
SI 4 SI 6
A package of works forming part of the Local Transport Body programme of critical infrastructure maintenance
Total Cost: £2.0m LGF: £2.0m
Note: References to ‘Other Public’ funding include Local Authority contributions, ERDF and ESF There is no realistic prospect of these projects commencing by their forecast start date without the support of the Local Growth Fund.
Intervention and Investment Prioritisation The prioritisation of Interventions and Investments has been undertaken using a combination of qualitative and quantitative methods. The LEP utilised external input from partners to initially identify and prioritise and assess the “Big Ticket Items” for inclusion in the draft SEP (Alderley Park 2021, Crewe High Growth City, Atlantic Gateway, Housing Investment Fund, FE Capital Investment and Thornton Science Park) looking at: alignment to overall Strategic Framework; alignment to theme; implementation scale (timing, cost, constraints); implementation and delivery risks; indicative value for money. Subsequently, the LEP Board agreed to present Thornton Science Park and Alderley Park 2021, as one Intervention priority - the Cheshire Science Corridor, due to the innovation synergies between the projects. It was also agreed that the Housing Investment and FE Capital Investment programmes were more appropriately considered as enabling thematic programmes. In addition, the LEP considered any “asks” that were required to help move these projects forward. A shortlist of priority Foundation Investments, which support the priority Interventions, and can be delivered in the next three years, has been developed using a qualitative prioritisation based on the following three overarching criteria: Contribution to policy objectives – both local and wider objectives and policies (including CWLTB) including environmental and social / distributional impacts; support for Value for money – scheme cost/affordability, benefit cost ratio plus a qualitative assessment of other factors which is critical particularly when a BCR is not available; and Deliverability – including the promoting authority’s commitment to develop the scheme to Full Approval; engage both public and private sectors. The prioritisation of transport schemes has been undertaken using the same assessment framework as was employed for the LTB devolved majors. Further details of the transport prioritisation is included in Annex B. Economic Impact Assessment The total economic effects of infrastructure investments has been undertaken using proven tools (either Green Book, Webtag or Regeneris). The Regeneris tool was developed, as part of the Community Budget Growth Strategy Project in 2012, in conjunction with BIS civil servants and Treasury, who considered the tool to be 56
innovative and good practice. The tool has been used to inform CWAC Planning and Investment Decisions since summer 2013. The data underpinning the modelling and assumptions is updated appropriately to keep the tool current. The Tool covers the full range of sources of economic impact:
Direct: jobs located within the facility itself, or directly supported by visitor expenditure (visitor attractions) or by resident expenditure (housing developments) Indirect: jobs supported within the supply chain of the facility Induced: jobs supported by the personal expenditure of employees whose jobs are supported through the direct and indirect
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Strategic Conversations In addition to this “deal” Cheshire and Warrington wishes to enter into a strategic conversation with Government in respect of two opportunities as follows:
Strategic Conversation with Government 1 - Warrington Growth Pilot Opportunity Warrington South is a significant opportunity for additional housing growth – comprising 350 ha of land in the ownership of the Homes and Communities Agency. The LEP wishes to enter into a strategic dialogue with Government on the Warrington Growth Pilot – a collaboration project between the Homes and Communities Agency, the LEP, Warrington Borough Council and Peel Holdings to positively unlock and utilise the extensive HCA land assets to enable the major expansion of Warrington creating some 6,000+ additional new homes, land for businesses (enabling 11,000 new jobs) and provide essential infrastructure for the Town. Essentially this completes ‘Warrington New Town’ vision The opportunity would also tackle significant access and congestion issues for the town generally, particularly the Town Centre. This project would provide increased fixed, high level canal and river crossings thereby unleashing the growth potential of Warrington still further. Barrier These HCA land assets are not currently allocated in Warrington’s Local Plan. This Growth Pilot will provide the justification and impetus for allocation and Warrington Borough Council would move speedily to an immediate revision to its Local Plan to release the land. The new homes and employment enabled through this opportunity would be all net additional – they are not currently part of the Warrington Local Plan Core Strategy housing and employment number counts. Ask Warrington Borough Council will bring forward the review of its Local Plan to immediate and allocate the HCA land at Warrington South for development. In return, our ask of Government is that the proceeds of sale from the HCA land are ring-fenced within a revolving infrastructure fund managed by a special purpose vehicle comprising HCA, WBC and Cheshire and Warrington LEP. The funds will be deployed to fund essential infrastructure to open up Warrington Waterfront. – a component of the Warrington Waters priority intervention as outlined earlier. In total this would provide some 6000 net additional new homes and create 11,000 new jobs.’ Total Outputs (at programme completion)
Jobs enabled: Employment Floorspace created: Homes enabled: Total private sector investment attracted:
11,000 222,000 sq m (net additional) 6,000 (net additional) £3.7bn
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Figure 5.1: Warrington Land and Regeneration Pilot
59
Strategic Conversation with Government 2 – Preparing for HS2 Opportunity High Growth City is ideally placed to ensure the benefits of HS2 are maximised, as identified by HS2 Growth Taskforce led by Lord Deighton. Phase 1 – 2015-18 – A package of investments have been identified to provide infrastructure and develop employment sites. Phase 2 – (2018-21) Crewe Station relocation – Package of infrastructure measures, including procurement and development of sites, delivering 370 dwellings and 96,850 sqm of employment space. Longer term relocation of Crewe Station will relieve network capacity constraints. Figure 5.2: The Proposed Crewe Super Hub Station
Phase 3 - (2021-2033) Crewe Superhub Station. The potential is that the SuperHub station would enable some 63,000 jobs and 27,500 new homes - generating a GVA of £3.5 billion. Barrier HS2 proposals have impacted on certainty of sites and are preventing development. Ask The LEP wishes to enter into a strategic dialogue now with Government in anticipation of the announcement of the Secretary of State, to prepare for HS2 by exploring the options for the early acquisition of the site earmarked for the relocation of Crewe Station and the HS2 superhub and to establish and maintain a dedicated publicprivate Development Corporation/Company to:
Further develop and deliver our HS2 Growth Strategy Co-ordinate funding streams relating to infrastructure and development associated with our proposal for a SuperHub station, including development land for employment and housing. Build upon our initial masterplanning around Crewe SuperHub, to extend to other towns and cities, building upon work to date with our Local Plan, and capture land values associated with enhanced connectivity and growth. Develop detailed plans for how the proposed SuperHub station will be accessed from the local, regional and national perspective to ensure connectivity opportunities are optimised and development opportunities maximised. 60
Capture the necessary strategic and local planning powers, with a highly resourced team to ensure proactive dialogue with all key agencies and partners, accelerate decision-making and simplify decisionmaking processes, utilising Local Development Orders and other mechanisms as appropriate. Lead on implementation of the masterplan through site assembly / acquisition and development of sites in partnership with commercial developers to maximise economic and wider regenerative benefits. Develop detailed economic action plans, aligned to our LEP’s Strategic Economic Plan, to ensure a coherent approach to the delivery of the economic opportunities that HS2 brings, including those related to HS2 delivery (e.g. High Speed Rail College), harnessing business growth that would otherwise locate overseas and those resulting from increased capacity on the existing rail network (e.g. rail freight)
Ahead of the establishment of this body, we will establish a Shadow body to lead on these key workstreams, but in particular the over-arching HS2 Growth Strategy. Figure 5.3: Wider Benefits of Crewe Super Hub
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6. Delivery and Programme Management Programme Management In managing the delivery of the Growth Plan and the C&W European Programme the LEP will utilise the ‘Managing Successful Programmes’ (Office of Government Commerce) approach and methodology. The LEP has a clear commitment to strong and transparent programme management and delivery. The Growth Implementation Group will take the key Programme Management role for the LEP as well as managing the LEP’s Investment Programme. A Local Authority Chief Executive will lead the Group to ensure leadership and oversight. Clear Senior Responsible Owners will be identified for each of the programme components and projects - being both accountable and responsible for delivery, monitoring and feedback. Regular programme monitoring reports will be made to the LEP Board and important issues and successes will be escalated to the LEP Board for consideration and / or resolution. A staffed Programme Office has already been established as part of the LEP Core team through secondments from the Local Authorities – this will support the Growth Implementation Group. The LEP’s Chief Operating Officer will lead the Programme Office.
Managing Risk The delivery of the Growth Plan will be proactively managed and will have a dedicated Risk Management Plan and Register, overseen by the Growth Implementation Group, with the LEP’s Chief Operating Officer acting as Senior Responsible Officer for this. The Growth Implementation Group will escalate risks to the LEP Board, where these cannot be readily resolved. The Risk Management Plan will follow Orange Book principles and will not only identify potential risks but will identify mitigation measures to manage such risks.
Managing Conflicts of Interest The LEP Board acknowledges that from time to time conflicts of interest will arise. Therefore it has put in place the mechanics to manage such instances, such as:
Preparing a written policy covering such conflicts Keeping a log of anticipated and actual conflicts of interest for ongoing review and reference Formally declaring such conflicts of interest at an early stage LEP members not playing a part is decision making where there could be such a conflict LEP members not being involved in any subsequent discussions, for example around performance or investment decisions
These processes will be kept under regular review and continuous improvement.
Scalability By scalability we mean how the LEP’s business model and Growth Plan aspirations change with increased or decreased financial support– how we will scale up or scale down and our ability to quickly anticipate these changed circumstances and how we positively react to them. The LEP is able to cope with such situations via the same flexible four components of its business model:
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Prioritised Pipeline - We realise that the nature of LGF funding is complicated as elements of LGF are essentially ‘ring fenced’ to particular national streams, e.g. FE Capital. Nevertheless our prioritised pipeline would enable us to assess projects and bring them forward or back in relation to these funding channels. The LEP Board makes the final decision on the prioritisation of pipeline projects based upon the advice these assessment models provide.
Flexible resource deployment – Our organisational structure is flexible. It is a network of committed and co-ordinated partner resources (pooled, seconded, joint teams etc) supported by a LEP team and three major unitary local authorities. One of the roles of the Growth Implementation Group is to tactically deploy and commission delivery resources in relation to demand. The LEP can call upon a wider resource pool when required. The Growth Implementation Group (GIG) will actively plan ahead in relation to its funding and delivery horizons. This is all about proactive and flexible programme management- being ‘fleet of foot’ and non-bureaucratic in our resource deployment and decision-making. We are able to flex effectively and respond to the additional demands and responsibilities which we will gather.
Investment Programming – The LEP has a whole range of funding mechanisms available to it – from private sector investment, LGF, ESIF, RGF, Growing Places Funding, local authority capital and revenue, Lottery, the NW Evergreen Fund, etc. One of the key roles of the GIG is to effectively manage the LEP’s Investment Plan – actively seeking sources of funding and matching packages of funding to our priority projects and activities – the project pipeline. We are gearing up the essential funding skills and capacity in the LEP core team to strengthen this activity. This investment programming coupled with a robustly assessed project pipeline managed by the GIG will enable the LEP to bring projects forward as funding packages are developed or are made available.
‘Shovel readiness’ – the flexible process of investment programming and our assessed project pipeline will be enhanced through our commitment to developing projects and activities to an advanced stage of readiness ahead of funding being made available – so we can quickly react to funding opportunity as they arise.
In the likely event that LGF will be oversubscribed, we will review our prioritised list to identify a balanced package of projects which will: maximize our ability to meet our strategic objectives; deliver most growth; lever in maximum private sector funding; offer best value for money and can demonstrate deliverability. We will let fewer projects through the project pipeline ‘gate’. There will obviously be the ability for dialogue with government departments around this; and this will be conducted in relation to the ‘ring fencing’ requirements of the LGF and any value reengineering of projects. Likewise if any additional funding is reallocated between LEPs, due for example to under spending elsewhere, our shovel ready approach to project development coupled with our project pipeline and flexible resource deployment approach will enable us to be best placed to react positively. If our LGF award is lower than our ‘ask’ then our highest scoring projects which we would look to progress would be:
Omega Junction 8 (M62) – because of the high numbers of jobs and homes it would produce in relation to the investment required Alderley Park Science for Life – because of our innovation policy imperative FE Capital Fund – because this project can flex as it is targeted at a range of individual projects and it is aimed at this ring fence funding stream of the LGF as well as it being assessed highly
63
Our Transport Programme – because of the high scoring nature of its component projects and because it can be flexed as it is composed of a number of projects – the number of projects we would put forward would depend upon the level of funding achieved and the transport ring fencing requirements of LGF.
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7. Governance and Collaboration Governance The Cheshire and Warrington sub-region has a long legacy of joint working in delivering economic development for many years culminating in Cheshire & Warrington Enterprise Partnership (LEP).The LEP Board is very clear about the leadership of the growth agenda in Cheshire and Warrington – i.e. it is a strong collaboration between the private sector and the public sector – with leadership from key business leaders. Economic growth is delivered by business – it is the job of the three local authorities to create the conditions for sustainable growth and to ‘unleash’ the energies of businesses and unlocking barriers to their growth In developing this plan, and the parallel EU Structural & Investment Funds Strategy, the LEP undertook a formal review of its governance arrangements to ensure they are fit for purpose and will facilitate effective delivery, whilst managing risk and maximising accountability to national and local funders. A ‘Combined Leadership Board’ has been established comprising the LEP Chair and the three Local Authority Leaders. This new Board provides the over-arching governance role to discharge Cheshire & Warrington’s twin strategic priorities of growth and public service transformation.
Figure 7.1: Governance Structure for Cheshire & Warrington
LEP Board
Local Transport Body
Growth Implementation Group
Sub Regional Leaders Board Combined Leadership Board
Driving Economic Growth
Sub Regional Management Board
Driving Public Sector Transformation
Although this document focuses on the growth agenda, there is a parallel collaborative approach to public service transformation that is clearly within the remit of the public sector. 65
Our Single Strategic Growth Agency Approach Although the local authorities are currently exploring a ‘Combined Authority’ model, our immediate energies are being focused in collaborating with and pooling recourses in the LEP and building, at a pace, its leadership, delivery and management capacity and capability – so we have a strong, single integrated body driving the agenda and being our engine for delivering our Growth Plan. Both business leaders and political Leaders on the LEP Board are totally committed to this ‘single strategic growth agency’ approachand this agenda. Ongoing partner engagement and participation will be encouraged and ensured through their involvement in the LEP’s Strategy Groups. This will provide wider ownership and participation from business, public sector, colleges and the voluntary sector in LEP activities and programmes. The Growth Plan’s strategic interventions are critical to the delivery of its growth ambitions – therefore the LEP will create groups to take an oversight role to ensure the effective delivery of these important programmes. Figure 7.2: LEP Governance Structure
Growth Implementation Group (Employment Board)
Promoting the work of the LEP Communicating Success
Oversight of the delivery of Growth Plan priorities
Operational arm of the LEP Board Keeping strategies up-dated, economic intelligence & research Ensuring delivery activity is aligned to priorities
Oversight of the delivery of Growth Plan at thematic level Developing thematic delivery plans Stimulating project pipelines Ongoing partner engagement & participation
N.B: Cheshire East Council will continue to act as the LEP’s ‘Accountable Body’.
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European Group
Skills & Employment
Strategy Groups
Transport
Crewe – High Growth City
Cheshire Science Corridor
Atlantic Gateway in C&W
Marketing & PR
Big Ticket Project Teams
Innovation
Local Transport Body
Leadership and strategic responsibility for the Growth Plan Business led A private sector / public sector fusion
Business Growth
Programme & investment management Performance management and risk management Transport lead
Infrastructure
LEP Board
Leadership, direction and performance monitoring
Housing Growth
Strategic direction, commissioning frameworks Assess funding bids Monitoring programme performance Provide technical oversight of EU programmes and projects
The Collaborative ‘Engine’ Model The above diagram is all about governance – delivery will be all about how the LEP, its core team and the three local authorities collaborate. We call this our ‘engine’ of delivery. We recognise that the LEP’s core team should be lean and that it should have a strategic remit – however delivery has to be driven and the ambitious Growth Plan and its components and the EUSIF requires programme management. Critical ‘central’ LEP functions are required – economic intelligence and marketing for example. Both the LEP Board and its component Local Authorities have committed themselves to: Gearing up the Core team of the LEP – through important appointments, secondments and appointment of key advisors. This will ensure adequate capacity and capability in the Core LEP team. Pooling Council resources and staff in the LEP in critical functions Harnessing the wider sub-regional network of council officers in active LEP led teams – thereby bringing greater recourses, capacity and skill in the hands of the LEP Bringing to bear the capacity and skilled individuals from other partners such as the University and colleges and for example the HCA – to deepen the LEP’s capacity and capability. The Councils and the LEP will knit together at five levels At Leadership level through the Combined Leadership Board – the LEP Chair and the three Council Leaders – this provides a strong governance role At The LEP Board itself where key business leaders and Council Leaders come together At LEP Growth Implementation Group – were local authority Executive Directors and Chief Executives come together with key LEP Board members to programme manage the Growth Plan investment and delivery programmes and deploy joint resources Within the Core of the LEP – pooling, seconding and positively engaging in the LEP’s core team At the collaborative team level – creating the conditions for growth and taking the LEP and Growth agenda back into the heart of council activity. The Growth Implementation Group The Growth Implementation Group becomes an important part of our structure – managing the delivery of the Growth Plan and taking a key role in Investment Programming together with tactical deployment of our joint resource. The Growth Implementation Group will essentially be the equivalent of the ‘Employment Board’ for the sub region – but embedded into the LEP’s structure in the same way as the Local Transport Board. This approach creates a fusion of the Local Authorities and the LEP that: Puts economic growth at the heart of the Local Authorities’ agendas The strategic leadership of the economic growth agenda is embodied in a single business led organization – the Cheshire & Warrington Enterprise Partnership ensures that the LEP really drives and leads the growth agenda for the sub-region, and Multiplies the human and financial resources available to the LEP so it is not just dependent upon its core team.
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Figure 7.3: Our Collaborative Approach – collaborating in the LEP
Cheshire & Warrington EP Core Team
LEP Co-ordinated Functions
Central Functions
Economic Intelligence
Programme management
Accelerating Smart Growth Growth Implementation Group
Business Growth
Innovation
Skills & Employment
Housing Growth
Planning
Place & Place Teams
Programme Management Infrastructure
Transport
Investment Management Tactical joint recourse deployment
Creating the Conditions for Growth
Local Authority Co-ordinated Functions
Cheshire East Council
Cheshire West & Chester Council
Warrington Borough Council
Collaborative ‘Engine’ Approach – pooling / sharing / secondments / team working
The Role of Cheshire & Warrington Place Teams There are a number of ‘Place Teams’ actively operating and delivering business growth and regeneration activity in local areas – for example Warrington & Co, Engine of the North, and Chester Renaissance. These are private / public partnerships delivering real change on the ground. The energies of these teams will not be lost and will be effectively harnessed as part of our LEP Strategy Groups and, more importantly, as part of our Collaborative Approach. These groups add additional depth, capacity and capability to our delivery, and also would provide local insight and wider participation in the LEP’s agenda – they will become additional arms of the LEP’s intelligence, delivery capacity and capability.
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Working Pan-LEP Cheshire & Warrington Enterprise Partnership has a strong and growing relationship with the Liverpool City Region and Greater Manchester as do our constituent Councils. All three LEP come together in the Atlantic Gateway Partnership Board and we have a strong working relationship on our Big Ticket priorities e.g. the Cheshire Science Corridor. We will continue build on these relationship to build a strong Pan-LEP approach to growth in the North West. These three LEP neighbours are increasingly working together and should be seen as the collective driver for economic growth in the North West. Cheshire and Warrington sub region is important in this regard – it provides the cog between the two major NW conurbations fusing this engine of growth – enabling it to operate.
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ANNEX A: FINANCIAL SUMMARY TABLE
Project and Programme Information Table Name of LEP: Cheshire and Warrington Enterprise Partnership
Summary ask of LGF (15/16) Area Transport
Total LGF 15-16 35.46
Skills Capital
0
Housing
0
Other
13.30
Total
48.76
Financial information
70
Total
2020/21
2019/20
2018/19
2017/18
[Capital or Resource]
Profile (£m)
2016/17
Theme of Project or Programme
Funding type
2015/16
Project or Programme Name & Brief Summary
Sources of funding [include rows for each funding type: precommitted LGF; competitive LGF; LA funding; private investment etc]
Further info on project *
Project output information:
(SEP page reference)
(e.g. jobs, houses, qualifications– specify all that apply)
[e.g. precommitted LGF] A
[Transport, Housing, Skills, other – specify all that apply]
[e.g. Local Authority] [e.g. Private Investment] [e.g. competitive LGF]
Atlantic Gateway Chester Central
Transport
Competitive LGF
Capital
CWAC Council
Capital
Private Investment
4.50
Atlantic Gateway
5.10
3.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
13.50
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Capital
155 0
7.50
Land: ha
10
Floorspace sqm: Life Time Leverage Jobs GVA £m
0.00
0.00
0.00
0.00
0.00
0.00
0.00
12.90
8.10
0.00
0.00
0.00
0.00
21.00
2.70
0.00
0.00
0.00
0.00
0.00
2.70
71
Jobs (direct): Homes:
Capital
Sub total Competitive LGF
8.40
7500 5170 149
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Jobs:
As above
Chester Central
Transport
Access to Chester Central Business Quarter
CWAC Council
Capital
Private Investment
Capital
Sub total Competitive LGF L'pool CR LEP,M'travel
Atlantic Gateway Chester Central
Capital LGF Capital
1.40
0.00
0.00
0.00
0.00
0.00
1.40
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.10
0.00
0.00
0.00
0.00
0.00
4.10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10.40
0.00
0.00
0.00
0.00
0.00
10.40
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OMEGA
Capital
Sub total
Atlantic Gateway
Transport
West Warrington OMEGA M62 Junction 8 -
Competitive LGF
Capital
Warrington Borough Council
Capital
Private Investment
OMEGA
Warrington West Station
Transport
As above
Floorspace sqm:
As above
Leverage £Bn GVA £m
As above As above
Jobs Pan:
Competitive LGF
Capital
LTB precommitment
Capital
Private Investment
Capital
Warrington Borough Council
Capital
Sub total
0.00
0.00
0.00
0.00
0.00
0.00
0.00
10.40
0.00
0.00
0.00
0.00
0.00
10.40
0.00
2.50
2.50
0.00
0.00
0.00
5.00
0.38
0.87
0.00
0.00
0.00
0.00
1.25
0.00
1.13
0.12
0.00
0.00
0.00
1.25
0.38
4.50
2.62
0.00
0.00
0.00
7.50
0.00
3.53
0.00
0.00
0.00
0.00
3.53
Floorspace sqm: Life Time Leverage Jobs GVA £m Page 51
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10,500
Jobs (direct):
7750
Homes: Life Time Homes:
750 1300
Land (Life Time): Floorspace sqm: Life Time Floorspace: Life Time Leverage Jobs GVA £m
Capital
Sub total
Atlantic Gateway
Land:
Land:
Private Investment
Rail infrastructure
As above
Homes:
Transport Halton Curve - Joint LEP Project (C&W and LCR)
Homes:
137 197419 559,741 19,750 522.6
Jobs (direct): Homes: Life Time Homes:
As Above As Above
2.00
4.53
0.00
0.00
0.00
0.00
6.53
Land (Life Time):
As Above
0.91
0.91
0.00
0.00
0.00
0.00
1.82
Floorspace sqm: Life Time Floorspace:
As Above
0.24
0.24
0.00
0.00
0.00
0.00
0.48
3.15
9.21
0.00
0.00
0.00
0.00
12.36
Life Time Leverage Jobs: GVA £m
As Above As Above
72
Atlantic Gateway OMEGA
Transport
Warrington Waterfront/Swing Bridge
Competitive LGF Warrington Borough Council Private Investment
Capital
OMEGA
Transport
Birchwood Pinchpoint
GM & Cheshire Investment Programme
Capital
Warrington Borough Council
Capital
Private Investment
Capital
Other
Public Private Investment
0.00
0.00
5.30
2.04
2.58
0.00
0.00
0.00
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Capital Capital
Capital
Competitive LGF
Capital
Public
Capital
Jobs:
5.70
Land: Floorspace sqm: Life Time Leverage £m GVA £m
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2.08
3.94
4.98
0.00
0.00
0.00
11.00
2.14
0.00
0.00
0.00
0.00
0.00
2.14
0.40
Sub total
Science Corridor
0.00
Capital
Sub total
Science Corridor
2.40
Homes:
1.08
Competitive LGF
Competitive LGF
1.90
Capital
Sub total
Atlantic Gateway
1.00
0.00
0.00
0.00
0.00
0.00
0.40
1.08
0.00
0.00
0.00
0.00
0.00
1.08
3.62
0.00
0.00
0.00
0.00
0.00
3.62
0.00
0.00
0.00
0.00
0.00
0.00
10.00
0.00
0.00
0.00
0.00
0.00
0.00
10.00
0.00
0.00
0.00
0.00
0.00
0.00
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0.00
0.00
0.00
0.00
0.00
40.00
0.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
19
500 80.3 < 109.3
1000
Homes: Land: Life Time Job Created:
75 3.25 7000 8000 350 76000
Jobs: Homes: Private Sector Leverage £m Floorspace sqm: Life Time Leverage Jobs: GVA £m
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0
Jobs Created
Floorspace sqm: Life Time Private Sector Leverage £m Life Time Floorspace sqm:
20.00
0.00
73
Page 51
150
Jobs (direct): Homes:
20
2000
170
Alderley Park Science for Life
Other
Physical Infrastructure
Private Investment
Capital
Sub total
Science Corridor Thornton Science Park
Other
Competitive LGF
Capital
Competitive LGF
Revenue
Private Investment
Revenue
Public
Capital
Private Investment
Capital
Centre for Advanced Engineering - Energy Systems
Sub total
Science Corridor
Competitive LGF
Poynton Relief Road
Transport
LTB precommitment Private Investment
Capital Capital
Capital
Sub total Competitive LGF
Crewe High Growth City Congleton Link Road
Capital Capital
Transport
LTB/Local
0.00
0.00
0.00
0.00
0.00
0.00
2.00
0.00
0.00
0.00
0.00
0.00
0.00
4.00
2.55
3.40
0.85
0.00
0.00
0.00
6.80
0.00
0.00
0.00
0.45
0.60
0.15
1.20
0.20
2.675
0.00
0.00
0.00
3.075
9.00
0.00
0.00
0.00
0.00
0.00
9.00
1.00
1.00
0.00
0.00
0.00
0.00
2.00
13.20
5.20
3.675
0.00
0.00
0.00
22.075
0.00
0.00
6.40
10.00
0.00
0.00
16.40
0.00
0.00
3.60
2.00
0.00
0.00
5.60
0.00
4.00
6.00
0.00
0.00
2
Jobs:
200
Land:
Page 63
0.00
14.00
18.00
0.00
0.00
32.00
0.00
5.00
15.00
25.00
0.00
0.00
45.00
0.00
0.00
10.00
5.00
0.00
0.00
15.00
Life Time Jobs:
1900
Floorspace sqm:
4,000
Leverage £m GVA £m
5.075 205 pa
Jobs created:
81
Jobs retained Life Time Homes unlocked:
500
Floorspace sqm:
10.00
0.00
74
Page 59
78968
Homes:
0.20
0.00
Land: Life Time Floorspace sqm: Private sector funding £m GVA £m
BCR GVA £m
Page 51
Jobs created:
>3.0 7.6
432
Life Time Jobs:
3458
Homes unlocked:
2,200
Private Investment
Capital
Sub total
Competitive LGF
Crewe High Growth City Middlewich Eastern Bypass
RGF
0.00 0.00
0.00 5.00
5.00 30.00
10.00 40.00
0.00 0.00
0.00 0.00
BCR GVA £m
75.00
Capital Capital
Floorspace sqm:
15.00
Capital
Sub total Competitive LGF
Crewe High Growth City Crewe Green Roundabout
Transport
LTB/local
Capital Capital
2.50
0.00
0.00
0.00
0.00
0.00
2.50
4.10
0.00
0.00
0.00
0.00
0.00
4.10
Jobs Created:
15.40
0.00
0.00
0.00
0.00
0.00
Homes unlocked: Life Time Floorspace sqm: Life Time Leverage £m GVA £m
15.40
22.00
0.00
0.00
0.00
0.00
0.00
22.00
0.00
3.00
0.00
0.00
0.00
0.00
3.00
0.00
1.00
0.00
0.00
0.00
0.00
1.00
1260
143,000m2 £15.4m
Page 36/7 Construction Jobs:
150
Homes:
50
Land:
Private Investment
Capital
Sub total
Crewe High Growth City
Competitive LGF
Crewe Northern Growth Corridor
LTB precommitment
Transport
£1.153bn
Page 36/7
Transport Private Investment
3.1
Private Investment Sub total
Capital Capital
Capital
0.00
1.00
0.00
0.00
0.00
0.00
0.00
5.00
0.00
0.00
0.00
0.00
5.00
0.00
2.10
0.00
0.00
0.00
0.00
2.10
0.00
2.50
0.00
0.00
0.00
0.00
2.50
0.00 0.00
1.00 5.60
1.38 1.38
75
0.00 0.00
0.00 0.00
0.00 0.00
Floorspace sqm:
1.00
2.38 6.98
BCR GVA £m
5.3 167
Jobs created:
150
Page 36/7 Homes unlocked: Life Time Leverage Jobs:
50 800
Floorspace sqm: BCR GVA £m
>2.0 43
Other
Housing Investment Fund
Other
Competitive LGF
Capital
Competitive LGF
Revenue
Public
Capital
Capital
Sub total
Other
Competitive LGF
Business Growth Hub
Public Private Investment
Revenue Revenue
Revenue
Sub total Competitive LGF
Other FE Capital Fund
Other
Public
4.00
2.00
0.00
0.00
0.00
10.00
0.50
0.50
0.50
0.50
0.50
0.00
2.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Jobs:
Life Time Homes:
375
1400
17.00
34.00
34.00
0.00
0.00
0.00
85.00
21.50
38.50
36.50
0.50
0.50
0.00
97.50
0.60
0.60
0.60
0.00
0.00
0.00
1.80
2.10
2.10
2.10
0.00
0.00
0.00
6.30
1.33 4.03
1.33 4.03
1.34 4.04
0.00 0.00
0.00 0.00
0.00 0.00
4.00
119
Jobs:
600
New business starts
600
Companies assisted
3210
Business improved
750
Leverage £m GVA £m
12.10
Capital Capital
Page 51
Life Time Leverage £m GVA £m
4
Page 67/8
5.20
6.90
0.00
0.00
0.00
0.00
12.10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Jobs: Homes: Land:
Private Investment
Capital
Sub total
Other
Competitive LGF
Integrated Transport Block - Minor schemes
LTB precommitment
Transport
4.00
Land:
Private Investment
Other
Page 44/5
Capital Capital
10.50
13.80
0.00
0.00
0.00
0.00
24.30
Floorspace sqm: Leverage £m GVA £m
15.70
20.70
0.00
0.00
0.00
0.00
36.40
4.74
3.63
0.00
0.00
0.00
0.00
8.37
Jobs:
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Homes: Land:
Capital
0.00
0.00
0.00
76
0.00
0.00
0.00
0.00
Floorspace sqm:
13375 6.8
Private Investment Sub total Competitive LGF
Other Local Sustainable Transport Fund
Transport
Package of minor works
LTB precommitment Private Investment
Capital Capital
Leverage £Bn GVA £m
4.74
3.63
0.00
0.00
0.00
0.00
8.37
3.08
1.38
0.00
0.00
0.00
0.00
4.46
Jobs:
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Homes: Land:
Capital
Sub total
0.00 3.08
0.00 1.38
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
Floorspace sqm:
0.00
Leverage £Bn GVA £m
4.46 0.00
Competitive LGF
Other Critical Infrastructure Maintenance
Transport
LTB precommitment Private Investment
Capital Capital
1.50
0.00
0.00
0.00
0.00
2.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Page 51
Jobs: Homes: Land:
Capital
Sub total
TOTALs
0.50
0.00 0.50
LGF combined
0.00 1.50
0.00
0.00
48.76
437.87
121.38
0.00
393.8 7
58.50
0.00
0.00
2.00
97.20
0.00
0.00
0.00
116.29
0.00
0.00
0.50
GM & Cheshire Investment Programme and Alderley Park Science for Life Phasing To Be Confirmed
77
44.00
Floorspace sqm: Leverage £Bn GVA £m
Cheshire and Warrington Matters - A Strategic Economic Plan for Cheshire and Warrington The Transport Case
ANNEX B: Transport Case for Investment
Contents Transport to Promote Sustainable Growth Transport Theme-level Actions Value for Money and Deliverability Governance, Programme Management and Delivery Annex A: Transport Investment Programme
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Transport to Promote Sustainable Economic Growth Context 7.1
Figure 1.1 below shows the strategic context of the C&W economy at the heart of the Atlantic Gateway and positioned between the two major city regions of Liverpool and Manchester.
Figure 1.1 – Strategic Location of Cheshire & Warrington
7.2
Figure 1.2 below shows the transport context of Cheshire & Warrington
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
© Crown copyright and database rights 2012. Ordnance Survey 100049045
Strategic Transport Case 7.3
Improved connectivity is a central and recurring theme of our Strategic Economic Plan. Improved transport connectivity is essential to unlock strategic and other development sites for housing and employment as well as relieving the many congested areas of our local and strategic transport networks.
7.4
The diagram below provides a summary overview of our strategic transport case to facilitate delivery of our Strategic Economic Plan.
Resource Collaboration
LTB Assurance Framework
Track Record of Delivery
Commitment to Connectivity
Deliver Economic Growth
Investment in Development
7.5
It confirms:
C&W’s commitment to improved transport connectivity to deliver economic growth. We have an agreed vision, and strong, joined-up leadership to drive and oversee this commitment;
that C&W is capable and has a track record of delivering a large transport investment programme, including major transport schemes and local pinch point and sustainable travel measures – currently delivering £75m on transport investment;
that C&W has committed significant funds to the development and delivery of key transport schemes – over £28m committed to the priority transport schemes;
that the approved LTB Assurance will be used for ensuring value for money;
the three local authorities are committed to collaborating in scheme development and delivery; and
the delivery of economic growth from the transport investment – the transport priorities are all linked boosting connectivity and accessibility to create economic growth
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Drivers and Context 7.6
Cheshire & Warrington is a successful economy, an attractive location where people want to live, and is well connected regionally and nationally. It is one of the best performing economies in England and the strongest economy in the North of England. It has a strong presence of international and export orientated companies including many in the high skill sectors and is a net importer of labour. Despite these excellent assets, the growth in GVA per head has been lower than the national average over the last ten years; and this, in part is due to a lack of investment to boost transport connections.
7.7
The sub-region suffers from congested motorways and congested links to motorways, poor road connections between the main areas of population as well as some poor quality, indirect and infrequent rail services all impacting on commuters, business travellers and vital freight and logistics operations.
7.8
The sub-region offers great potential for economic growth; it is rich with many strategic investment sites that will deliver major housing and employment developments but these are frustrated by congested transport networks and the lack of good connectivity. This requires a substantial investment in transport improvements to unlock the potential of these strategic sites.
7.9
Through this SEP, Cheshire & Warrington is committing to create a step-change in the economic performance of the sub-region, building on the success of the existing strong economy and skills base. To achieve this, requires a substantial increase in the level of investment to improve transport infrastructure and public transport to better connect people to jobs and businesses to their customers whether local, regional, national or international. The transport investment set out in this SEP is vital to create the step-change in provision that will unlock and facilitate the growth ambitions of the sub-region as well as ensuring that the transport networks are more resilient against future disruptions. Spatial Drivers
7.10
The SEP has three priority areas for growth (see Figure 1-1) that will not only transform the economy of the subregion but will contribute to the national imperative for growth and development:
9
It is at the heart of the Atlantic Gateway international trade corridor – recognised as England’s second most important opportunity for economic growth.
The North Cheshire Science Corridor - based at the following sites offering substantial potential for high value job creation: Alderley Park, Booths Park, Hurdsfield, Jodrell Bank, Radbroke Hall and the new state of the art Mass Spectometery facility at Waters Wilmslow
The High Growth City concept focused on the opportunity of Crewe and its surrounding Market Towns which not only is the gateway to the North West but its regeneration and growth will transform the economies of the north midlands; with the case for improved connectivity further emphasised by the recent HS2 reports by Sir David Higgins9 and Lord Deighton10.
HS2 Plus, A Report by David Higgins, March 2014 High Speed 2: Get Ready, A report to the Government by the HS2 Growth Taskforce, March 2014
10
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
7.11
The sub-region has significant major growth assets, such as:
Strategic areas and sites at Chester, Congleton, Ellesmere Port, Northwich, Omega, Thornton, and Warrington Waterfront offering major real potential for both new homes and job creation.
7.12
All of these priority areas are hampered in reaching their true economic potential – due to the limitations of both internal and external connectivity and accessibility and these areas need unlocking by investment in transport infrastructure and better local sustainable travel opportunities.
7.13
The Atlantic Gateway and High Growth City in their totality have the real potential to create two of the most important growth centres outside the South East of England – they are, therefore, the LEP’s clear priorities for major transport infrastructure investment followed by investment to better connect the Science Corridor.
7.14
Omega is the SEP’s principal development opportunity within the Atlantic Gateway that requires highway infrastructure to unlock enormous potential for sustainable employment and housing.
7.15
Chester is a key sub-regional centre within the Atlantic Gateway corridor that will service and provide for the priority growth areas in Cheshire and Warrington, for example, through the provision of housing, education, retail, and health services. Investment in transport connectivity to and from Chester is vital to secure its future place as such a centre serving both the sub-region and North Wales.
7.16
High Growth City focuses on the growth potential of Crewe and its surrounding market towns which offer unrivalled development opportunities, which could be accelerated and expanded if the proposed HS2 SuperHub Station is given the go ahead.
7.17
The Cheshire Science Corridor has a concentration of knowledge and research based organisations, including Alderley Park, Waters Corporation, Astrazeneca (Hurdsfield), Barclays Technology Centre, Booths Park and Jodrell Bank. Collectively the 8 companies employ over 10,000 people. Alderley Park 2021 is identified as a ‘Big Ticket’ intervention in the SEP due to the economic relevance and long term potential.
The Strategic Road and Rail Network 7.18
An inspection of the national map shows that Cheshire and Warrington is a well-connected economy, sitting at the heart of the strategic road and rail network; the area is served by nationally significant motorways (M6 and M62), providing both north/south and east/west connectivity, and locally important motorways (M56 and M53) and trunkroads (e.g. A55 providing links to North Wales). Warrington is particularly well connected in terms of road infrastructure, having the M6 immediately to the east and bordered on other sides by the M62 (to the north) and the M56 (south).
7.19
The sub-region is also well placed in terms of the strategic rail network. Crewe and the two main Warrington stations (Bank Quay and Central) provide access to rail services on the West Coast Main Line (London-Scotland) and Trans-Pennine services (Liverpool-Manchester-Leeds-East England). However, much of the rail network is in need of modernisation, currently subject to slow journey times and a poor service pattern, coupled with poor quality rolling stock. The West Coast Main Line (WCML) is an important freight route, but the M6 carriers ten times the tonnage of the WCML emphasising the importance of this motorway to the sub-regional economy.
7.20
Despite the apparently good motorway connections, significant peak period congestion is a regular occurrence. Evidence from the DfT shows that some sections of roads within the sub-region are amongst the top 20 most congested routes in the country. The Highways Agency predicts certain routes, particularly the M6, M53 and the M56, will become significantly more congested with the anticipated growth in traffic. A consequence of these 81
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
motorways operating at or close to capacity is that even a minor incident during the peak periods can lead to major disruption for long periods on the wider road network, with a consequent impact on business productivity. A particularly substantial impact is felt in Warrington town centre or on the A34 Corridor through Congleton when there is an incident on the M6 as they both serve as key diversion routes. 7.21
The West Coast Main Line running through C&W provides the principal rail link southwards from the North West to the Midlands, London and the South East and the Channel crossings. It is Europe’s busiest mixed-traffic rail corridor and Network Rail’s 2011 WCML Route Utilisation Strategy (RUS) identified that the line is operating close to its capacity. While HS2 will release capacity at the southern end of the WCML, Phase 1 of HS2 will place further pressure on the region’s rail network as proposed high-speed services extend onto the classic network north of Lichfield.
7.22
Cheshire & Warrington's key location on the 'West Coast Spine' has resulted in the development of a number of regional or national freight distribution facilities, particularly at Crewe, Middlewich, Northwich and Arpley (Warrington). Thus, in addition to the line being a key long-distance passenger route, it is an essential freight corridor, daily carrying over 30,000 tonnes of freight south of Crewe. Freight demand is forecast to grow on the route which is driven by expansion of the container market, particularly from the expanded Port of Liverpool.
7.23
Despite the recent extensive WCML upgrade there remain a number of capacity constraints on the WCML through the Cheshire and Warrington area; for example, the layout of Crewe station and the large number of conflicting movements to the north and south of the station which limit line capacity and increase journey times. Further north, the predominantly two-track railway between Winsford and Runcorn/Warrington limits the capacity on the section of the WCML that provides access to the Port of Liverpool and other important strategic freight facilities at Ditton, Halewood and Garston. The electrified route between Crewe and Stoke has a short single line section which limits capacity, while other lines that feed into the WCML are not electrified, limiting the ability to maximise network utilisation.
7.24
Further South, line capacity on the WCML is also limited. In the past 15 years, the number of trains using the West Coast Main Line has doubled and spare capacity is now at a premium, with a variety of competing demands as passenger and freight traffic is forecast to continue to grow in the future. These capacity constraints limit the scope for expansion of both local and long distance rail services from our sub-region as well as limiting the opportunity to transfer more freight from road to rail given the expected growth in freight from the increased economic activity.
7.25
In addition to the WCML, the sub-region has a number of other rail corridors and together, these networks cater for eight Train Operating Companies providing services in these franchises. This demonstrates and reinforces the huge national importance of the sub-region’s rail network.
7.26
The importance of Crewe to the national rail network has been recognised and emphasised in the recent HS2 report by Sir David Higgins11. Sir David proposes that the Government should accelerate Phase Two as soon as possible to take the line 43 miles further north than planned in Phase One, to a new transport hub at Crewe which could be completed by 2027, six years earlier than planned. This means that other necessary transport infrastructure to enable the new hub station has to be prioritised and developed to ensure it is in place in time for the arrival of HS2 and would support the delivery of a vast connectivity boost and resultant economic growth opportunity in this sub region.
11
HS2 Plus, A Report by David Higgins, March 2014
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
International Gateways 7.27
Aviation is critically important to the C&W economy and to its future growth. Again, the sub-region is very well placed: close to international airports at Manchester and Liverpool as well as Birmingham International Airport to the south of the sub-region, supporting Cheshire and Warrington’s status as a premier location for business, and as a connected place to live. However, despite the proximity of these airports rail connections to them are poor from much of the LEP area and the strategic road network is congested and subject to unreliable journey times.
7.28
For access to the global markets and to attract overseas inward investors, Manchester Airport is of prime importance to the C&W economy. With its two runways, Manchester Airport has the capacity to support significant growth in passenger numbers and freight. The government’s committed investment in the Northern Hub is very welcome and this will substantially improve rail journeys and services passing through Manchester and also serving Manchester Airport – particularly from the north and east. Despite this investment, however, there will still be no direct rail connection from the west (Cheshire & Warrington) to the Airport. Road access to Airport will also be significantly improved with the planned A6 to Manchester Airport Relief Road. But this again provides an improvement mainly to journeys from the east. Western access is via the congested M56 that is subject to stopstart conditions on an almost daily basis. It is essential, that investment is made in appropriate surface access to exploit the economic potential of the Airport and including potential employment opportunities at the Airport City Enterprise Zone for C&W residents.
7.29
The recent government funding commitment and loan guarantees will ensure delivery the Mersey Gateway project which, although out with the C&W area, will nevertheless bring significant economic benefits and improve access from the area to Liverpool Airport and the Port of Liverpool.
Ports and Logistics 7.30
In addition, the sub-region also has the advantage of a significant water transport asset in the shape of the Manchester Ship Canal, which carries a high volume of freight through the area and serves a number of ports along its length within the LEP area. The forecast increase in freight through the Liverpool Superport, post Panamax, will result in a significant increase in water borne freight along the Manchester Ship Canal. The Canal currently ships around 8 million tonnes of freight per annum, but has spare capacity of 6 million tonnes per annum.
Sub-regional and Local Network 7.31
Away from the strategic networks, transport links in Cheshire and Warrington are not strong enough, with poor quality connectivity between significant centres. Unless significant improvements are made, transport infrastructure will act increasingly as a barrier to, rather than an effective enabler of, economic growth. Most notably, within the sub-region:
The sub-regional rail offer is poor and this is a barrier not only to access to jobs but also to achieving greater levels of sustainable travel. Internal rail connections are sub-optimal, with an extensive network, but limited service, for example poor journey times and frequency of services from Chester to Manchester and to Manchester Airport. Rail modernisation is needed not only within the LEP area but also across the boundaries with North Wales, the Potteries and the Liverpool and Manchester City Regions.
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Access to the major rail interchanges at Warrington Bank Quay and Crewe is sub-standard with congestion and insufficient parking at both sites. The poor environment at both stations creates a poor first impression of these ‘Gateways’ to both our sub-region and the wider North West region. It is critical that measures which promote sustainable modes of travel and behavioural change are implemented in parallel with new infrastructure.
The sub-regional road network is inadequate and heavily congested at key locations and network resilience is poor. East-west road linkages across the sub region are poor, in part owing to congestion and severance caused by the M6, for example the A500 at Junction 16. Strategic points across the local road network are at or reaching capacity, for example the A49 through Warrington and the A34 Corridor through Congleton. A range of infrastructure improvements are required to both relieve congestion and support a shift to more sustainable modes or travel, particularly for shorter journeys.
The development of prime brown-field land in sustainable locations is frustrated because the supporting transport infrastructure is missing, for example, Warrington Waterfront and in Crewe.
The growth of waterborne freight along the Manchester Ship Canal and the resultant increase in operation of three swing bridges brings an unfortunate increase in road closures that have a significant negative impact on the local economy and environment in Warrington.
Surface access to regional airports (Liverpool and Manchester, and also Birmingham International) from the LEP area is poor, due to a combination of congested motorways and lack of direct train services. For example, road access to Manchester Airport from C&W is constrained by the congested M56 and A556. There are poor indirect rail services from the key population centres of Chester, Crewe, Ellesmere Port and Warrington to Manchester airport, often requiring a change of train in Manchester.
Infrastructure supporting public transport and other sustainable modes of travel is not comprehensive enough to offer a realistic alternative to car travel – this is particularly important for low income groups without access to a private car. Achieving an increase in travel by sustainable modes will play a key role in addressing congestion on our highway networks Revenue support for public transport services is diminishing; this hampers labour market mobility and will be a major barrier to improving the scope of bus and rail services. The integration of Local Sustainable Transport Fund revenue and capital programmes is seen as an integral element of the SEP programme
7.32
The transport challenge for C&W is not only to solve current problems but to also provide the necessary supporting and enabling infrastructure to facilitate the substantial growth in housing and employment as set out in more detail in earlier sections of this Plan. This also requires close working with the Highways Agency and Network Rail in influencing the development of the strategic transport network.
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Implications of Inaction 7.33
The growing level of congestion along with the gaps in existing transport provision is a real barrier to economic growth. The congestion on the highway network significantly affects journey time reliability that is essential for business and to a lesser extent for the commuter also. It also adversely impacts on access to key employment sites and thus constrains the ability of business located at these sites to grow. There is a real danger that with increasing congestion, businesses will not be able to achieve the growth they plan and will seek to relocate from their current premises. Whilst this relocation may be to elsewhere within C&W, it could equally be to an adjacent area or another country resulting in a real, direct loss to both the C&W and UK economy.
7.34
We have real examples of where businesses have complained about the adverse impact upon their business of local congestion. Analysis of the 2011 Cheshire & Warrington Business Needs Survey has found that 15% of Crewe businesses identified traffic congestion as a disadvantage of their local authority area. Indeed, congestion is such a concern in Crewe that the owners of the two largest retail undertakings in the Town (The Market Centre and Grand Junction Retail Park) have commissioned their own transport studies in an attempt to seek solutions. Case Study – PepsiCo Northern Logistics “Birchwood’s unique selling point for attracting industry to the area is its proximity to the main road networks of the M62/M6. Maintaining an efficient infrastructure in the local area is critical to our business and on-going commitment to staying in the Birchwood area” Ian Rooney, Senior Operations Manager, PepsiCo Northern Logistics
7.35
Congestion on the motorway network is a significant constraint to economic growth in many ways. The C&W area is traversed by a number of motorways and efficient operation of these is critical to the economic well-being of the area. We have numerous examples of incidents on the M6 leading to massive diversion of traffic through Warrington and Congleton with the obvious consequent adverse impacts. The development of Manchester Airport City Enterprise Zone brings significant employment opportunities for C&W residents. But the road access is constrained due to the congested M56 motorway and public transport accessibility is poor due to the lack of direct services from C&W. The same issues impact on business users wishing to use Manchester Airport for international travel.
7.36
Without significant improvements to the strategic highway network, the increasing road traffic volumes will simply translate to increased traffic congestion which in turn creates increased travel costs for business as well as increased unreliability of journeys which particularly impact the freight sector which is a key part of the C&W economy. Case Study – MEPC, Birchwood Park “Birchwood Park is a 1.2 million sq.ft. business park which is home to over 150 companies and 5,500 staff. Since our initial purchase of the estate in 1998 our company has invested over £60m on the estate. We are now looking ahead and considering further development activity. We have however independently concluded that in the absence of improvements to the local highway network that the increased levels of traffic congestion which are now being experienced could provide a barrier to our continued investment in this location. For this reason we have agreed to financially support this project (Birchwood Pinch Point).” Jonathan Walsh, Managing Director, MEPC Birchwood
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
7.37
The poor internal LEP area linkages add significant travel costs to businesses, lead to unreliable journeys and constrain the area of search for those seeking employment. There are for example, poor quality links between the M6 and the towns of Crewe and Congleton that sit only a short distance from the motorway. This hinders efficient economic activity and constrains economic growth as well as adding additional travel costs for all road users. Increasing traffic volumes will exacerbate this situation particularly where there are existing capacity constraints on the network. Increased economic activity and jobs growth requires improved transport connectivity and reliability.
7.38
A Business specific consultation undertaken as part of the Cheshire East Local Plan, identified poor East West links transport links and access to the Motorway as a problem. In Congleton, a collection of 48 local businesses, including multi –national companies such as Siemens and Senior Aerospace have formed a lobby group ‘Link to Prosperity’12 to support proposals for a new link road around Congleton to address poor transport links that are harming the local economy. In the recent Congleton route option consultation exercise 231 individual businesses responded in total, all in support of the new link. 99.6% of the business community cited the reason for support as ‘economic benefits’. Warrington – Impact of Manchester Ship Canal In Warrington two key issues of internal connectivity are evident. Firstly, the severance caused by the increasing number of bridge swings on the Manchester Ship Canal is both a barrier to growth and brings significant environmental disbenefits. Through working with Manchester Ship Canal Company some of these problems can be mitigated in the short term with a package of management protocols and better travel information. However, in the longer term, the only way to support both the increased use of freight on the Ship Canal and deliver the full Warrington Waterfont development is to construct major new infrastructure including a high level bridge crossing.
7.39
Warrington suffers from the legacy of an incomplete new town road network. In north Warrington, the development of Birchwood, Gemini, Omega and much of north west Warrington was predicated on the construction of a dual carriageway spine road connecting east and west. Unfortunately this network is only partially complete and was abandoned over the last 20 years. The solution is now to greatly enhance public transport accessibility along this axis through a combination of new services and infrastructure improvements to allow public transport to bypass the key locations of congestion and delay.
7.40
Similarly, East-West rail journeys are slow and of poor quality which again limit the attractiveness of rail as a mode of travel choice and constrain the ability of those without access to a car to pursue employment opportunities outside of their local areas. Current over-crowding places a real constraint on increased use of the service to access employment opportunities. Case Study – Mid Cheshire Rail Line The Mid Cheshire Railway Line links Chester and Manchester. It is a vital route for commuting to work and accessing local services as well as opportunities for leisure journeys for shopping, outdoor pursuits and cultural activities. The line provides an hourly train service and is used amongst others, by employees at the large employment site at Radbroke Hall. The morning peak hour service is known locally as the ‘sardine train’ because of the level of over-crowding. Often people are not able to board the train due to the over-crowding. Anecdotal evidence indicates a 10% per annum rate of passenger growth but this cannot growth further during the peak hours. It is
12
http://www.link2prosperity.co.uk/about-us.html
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not practical or reasonable for passenger unable to board the over-crowded train to wait one hour for the next train. 7.41
Access to the two WCML railway stations at Crewe and Warrington Bank Quay, and car parking at them is constrained which limits the number of people able to make efficient use of these stations. This means that the use of the station is constrained due to the access problems faced by people.
7.42
Significant development opportunities on Brownfield land are frustrated because of the lack of adequate transport infrastructure. Case Study – Basford East & West The delivery of the Basford Development Sites is one of the sub regions regeneration and economic growth priorities, a scheme that by virtue of its nature, location and quantum of development will have a transformational impact on Crewe and the surrounding area These development sites have the potential to create facilities for up to 6,000 jobs in high value employment as well as over 1000 new homes ;the two sites together provide around 150 hectares of development opportunity for B1, B2 and B8 uses, and therefore present a significant opportunity because of their size and strategic location. The comprehensive delivery of these sites is key to the delivery of the All Change for Crewe Strategy, which seeks to deliver a step change in Crewe’s economic performance. This requires an improved highway link up to the M6 motorway (A500 Barthomley Link) that will provide the additional capacity on the corridor and at J16 to facilitate the full development at the sites. If the HS2 SuperHub Station is confirmed these sites will one of the UK’s prime development opportunities over the next 20 years being located at the heart of the UK’s economic geography.
7.43
This SEP sets out C&W’s vision for a step-change in growth. Delivery of this ambitious vision depends in a large part on the right transport interventions delivered through the investment set out in this Plan.
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Rationale for Intervention 7.44
Against this context a series of rationales for intervention in the transport arena are evident if the area is to address its transport weaknesses and deliver growth against its growth opportunities:
Strategic
Improve connections to neighbouring sub-regions, and in particular international gateways to ensure business has connectivity to global markets. Currently, surface access to Liverpool and Manchester airports, and also Birmingham International, from the LEP area is poor, due to a combination of congested motorways and lack of direct train services. Good connectivity to employment locations in adjacent areas for C&W residents and businesses is important to facilitate the economic benefits of both out and in commuting that takes place on a daily basis.
Pinch points and congestion in the transport network, both road and rail, act as barriers to growth if left unaddressed. Delays and unpredictable journey times are a market failure that affect both business activity directly and indirectly, and influences commuting flows.
Capacity constraints on the West Coast Mainline are restricting the enhancement of improved rail connectivity in the sub-region. Preparing for HS2 The recent Sir David Higgins Report13 on HS2 confirmed Crewe as a location for a hub station. The subsequent Lord Deighton Report14 has recommended that detailed consideration of HS2 should be included in Local Plans and Strategic Economic Plans and that a HS2 Growth Strategy is established by the end of 2014.
Network resilience needs to be addressed to deliver predictable and efficient journey times to support business productivity. The effectiveness of the wider network to absorb the impact of unplanned events (such as accidents or adverse weather conditions) is limited, and such events have a significant adverse impact on productivity.
Make best use of the existing road (e.g. smart motorways) and rail network (e.g. electrification), to capitalise on existing infrastructure, offers efficient mechanisms for improvement, and will help deliver best value for money from investment. For example, the forecast increase in freight travelling by barge rather than using the road network will result in an increase in road closures and traffic queues in Warrington due to operation of the three swing bridges over the Manchester Ship Canal, unless this is addressed through the construction of a new high level crossing.
13 14
HS2 Plus, A Report by David Higgins, March 2014. High Speed 2: Get Ready, A report to the Government by the HS2 Growth Taskforce, March 2014
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Sub-Regional
Significant new transport infrastructure, including investment in local rail, is required to unlock sustainable sites that are currently unavailable for development due to the lack of transport links. Such sites are currently a missed opportunity for growth.
Improve internal LEP area connectivity and accessibility across the sub region and between the main urban centres, larger built up areas, and mid-sized built up areas to accommodate demand for travel associated with development sites and growth in employment and housing.
Local
Local sustainable transport improvements , including projects to encourage low carbon and nonmotorised travel, are needed to ensure LEP residents can access employment opportunities and key services. In addition, shift from car travel to walking, cycling and public transport can help release capacity in the highway network and help the network accommodate increased demand for travel arising from new development and housing. This rationale is emphasised in the Local Sustainable Transport Fund submissions from the partner LEP local authorities, which focus on the need to align revenue and capital activity to help to unlock growth through delivering modal shift.
A balanced approach to freight transport (in terms of road and rail connectivity, and short sea shipping) is needed alongside the development of Atlantic Gateway, to support the most sustainable movement of freight while minimising any negative impact on local networks.
Long Term
Through this forthcoming transport investment period for both the SEP and Network Rail, it will be necessary to put in place schemes that will enable the SEP area to fully exploit the potential benefits of HS2 across the sub-region. Planning for HS2 has already commenced. If the HS2 SuperHub Station is confirmed, the sub region has its strategy ready.
Objectives 7.45
Based on the spatial objectives of the SEP to deliver growth, the current transport network of the area, and the rationale for intervention to address its inherent weaknesses, the objectives of the transport theme are:
Objective 1: To transform connectivity across, and to and from, the Atlantic Gateway World Trade Corridor.
Objective 2: To unlock the opportunity that is High Growth City focused on Crewe and connected Mid-Cheshire towns and facilitate delivery of the HS2 Crew Hub Station.
Objective 3: Improve access to unlock priority employment and housing sites across the LEP area including the Science Corridor.
Areas of Action Emphasis 7.46
In order to deliver these Objectives partners from across the sub-region have collectively prioritised the following Actions / key interventions: 89
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Action 1: Prioritise sustainable transport infrastructure in the Atlantic Gateway and enhance the Gateway’s national and international connectivity.
Deliver major enhancements to connectivity across the Atlantic Gateway corridor – by rail, water, and road – to exploit employment and housing growth potential including capacity and service enhancements on the strategic road and rail network.
Enhance the connectivity of the gateway to the rest of the UK and internationally to enable it to fulfil its role as a major world trade cluster – through airports, ports and road and rail connections. Direct rail access to Manchester Airport is a real barrier to growing businesses facing international markets. There is therefore a need to urgently investigate options for direct rail access to Manchester Airport from the west.
Deliver the package of improvements forming the Chester Central Package to unlock major retail, commercial and other development and enable growth across the city.
Deliver infrastructure required to unlock Warrington Waterfront major development and significantly improve connectivity and network resilience across Warrington town centre.
Deliver the LTB priority scheme of a new station Warrington West to connect the West Warrington area including Omega, Lingley Mere and Gemini to the wider rail network and allow residents locally access opportunities across the Atlantic Gateway Corridor.
Support the delivery of growth at major sites including Birchwood, Ellesmere Port, and Warrington North (including Omega).
Maintain and enhance the resilience of transport networks by prioritising critical highway and structural maintenance projects.
Deliver complementary local sustainable transport improvements, that improve accessibility to employment sites, deliver behavioural change, and accommodate some of the increase in demand for travel that will be a consequence of economic and population growth (currently delivered using the Local Sustainable Transport Fund)
Action 2: Improve connectivity between Crewe, M6 and mid-Cheshire towns to unlock development in Crewe High Growth City and facilitate delivery of the HS2 Crew Hub Station.
Improve local and strategic road and public transport connectivity across the High Growth City area and at Crewe to take advantage of the areas and Crewe’s strategic connectivity and employment and housing growth potential. Step 1 – A major package of new roads, local pinch point schemes and public transport improvements to deliver planned growth.
Ensure transport improvements are aligned with and unlock the development of key housing and employment sites in Crewe, Congleton, Macclesfield, Northwich, Middlewich and Winsford, including the Congleton Link Road.
Maintain and enhance the resilience of transport networks.
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Step 2 – Deliver national investment in improved strategic road and rail connectivity to link High Growth City and Crewe with the adjacent major economies.
Ensure transport improvements complement key national infrastructure investment such as the Smart Motorway scheme (M6 J16-19), major M6 junction upgrade at J16, improved rail connections, electrification and the delivery by 2020 of a new Crewe Station with improved local transit and road connections for all users.
Step 3 – Deliver a full HS2 Super-Hub Station at Crewe by 2027 with the arrival of HS2 and capture this unique growth opportunity by boosting connectivity across the High Growth City area and beyond
Ensure transport and land-use developments in the Crewe area are planned with full cognisance of HS2 and the proposed early delivery as set out by Sir David Higgins in his report HS2 Plus15.
Action 3: Improve access to unlock priority employment and housing sites across the LEP area including the Science Corridor
Deliver the LTB priority scheme: A523 Poynton Relief Road to improve travel conditions along this important corridor between Macclesfield and Greater Manchester via the new SEMMMS A6MARR scheme and unlock housing and employment development on the former BAe site at Woodford.
Deliver complementary local sustainable transport improvements, that improve accessibility to the Science Corridor’s key employment sites, deliver behavioural change, and accommodate some of the increase in demand for travel that will be a consequence of economic and population growth (currently delivered using the Local Sustainable Transport Fund).
Consideration of both capital and revenue funded schemes to deliver behaviour change and increase the capacity of the transport network as a whole.
Platforms on which to build Strategic 7.47
We have a strong existing strategic transport network, including the West Coast Main Line, the national motorway network, and proximity to international airports/ports. Enhancing this network will strengthen the economic potential of the LEP.
7.48
The Cheshire and Warrington Local Transport Body (CWLTB) is a strategic partnership that has been established with a primary goal to ensure that the sub-region’s transport investments support and enable economic growth and regeneration. It brings together the three unitary local authorities (Cheshire East Council, Cheshire West and Chester Council and Warrington Borough Council) along with the Cheshire and Warrington Local Enterprise Partnership, and key stakeholders, such as the Highways Agency and Network Rail in an advisory role. Its single strategic objective is to improve transport infrastructure to secure significant connectivity gains in the support of economic growth and prosperity. As well as supporting economic growth, it is recognised that transport investment must also contribute towards wider social and environmental objectives.
15
HS2 Plus, A Report by David Higgins, March 2014.
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7.49
The CWLTB has regular dialogue with the Highways Agency and Network Rail in order to understand their strategic priorities but also to influence their priorities across the networks within or adjacent to Cheshire & Warrington. The LTB has endorsed the strategic ‘asks’ set out in this SEP.
7.50
We are investing significant officer resource in working with the HA on:
A556 major scheme; and The Strategic Pinchpoint schemes: M6 Junction 17 A55 / A483
7.51
Other significant and welcome transport developments are the approval of funding for the new Mersey Gateway crossing and the SEMMMS A6MARR. These cross boundary schemes, will have a significant bearing on traffic levels and route options within our C&W LEP area and will assist business connectivity and opportunity.
Sub-Regional – Major Schemes 7.52
In summer 2013 the CWLTB, supported by the LTB Officer Group, established a range of transport objectives for the sub-region and against these delivered a robust prioritised package of the following major transport schemes for delivery in the 2015-19 funding period.
Atlantic Gateway Warrington West new station on the CLC line between Liverpool and Manchester.
High Growth City Crewe Northern Growth Corridor - Sydney Road Railway Bridge
Science Corridor A523 Poynton Relief Road
Case Study – Poynton Relief Road The South East Manchester Multi-Modal Strategy (SEMMMS) includes parts of north east Cheshire and aims to deal with existing and predicted transport problems and will enable significant growth opportunities in the Science Corridor. The SEMMMS Relief Road scheme includes the A6 to Manchester Airport Relief Road (A6MARR) and the proposed Poynton Relief Road. The A6MARR is programmed to open in 2017 and the proposed PRR could open in late 2018. The schemes will reduce traffic congestion, improve sub regional connectivity and improve links between Macclesfield, the Wider Science Corridor and the significant growth opportunities of Airport City and the wider Airport Enterprise Zone. The scheme has been prioritised by the LTB with an initial funding allocation of £5.6m and a contribution to the scheme from the Greater Manchester Combined Authority in recognition of its cross boundary importance. 7.53
The LTB also approved a longer-term Development Pool of major schemes that form the core of our Ask within this SEP bid. A review of the prioritisation criteria has been undertaken to ensure the delivery of schemes continues to reflect LEP priorities as set out in this SEP. 92
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Case Study – Congleton Link Road Congleton’s future is not as a dormitory town but as a thriving working town. Congleton was the preferred location for a second Siemens factory but this opportunity was lost due to lack of a suitable site. In recent years on the Radnor Park Estate the opportunity for 140 jobs were lost when suitable premises were not available to house the HQ of Healthcare Enterprise Group Plc who acquired an existing company. The Congleton Link Road will open up 20 Hectares of new employment land, preventing further missed opportunities whilst unlocking land to provide 2200 new homes. The scheme will help address the existing congestion and air quality issues experienced in the town and improve East-West strategic highway links. The scheme has been under development since 2012, has a robust transport business case and, subject to funding, construction could begin in early 2017. A recent public consultation exercise demonstrated strong public support for the scheme. 7.54
The three Local Transport Authorities (LTAs) and the LTB are very clear that strong collaborative working is required to develop future transport plans and use these to develop and subsequently deliver essential transport improvements to facilitate delivery of the strategic growth objectives of Cheshire and Warrington as set out in the SEP.
7.55
Each LTA is working closely with its planning colleagues in the preparation of the constituent Local Plans, all of which are at an advanced stage of preparation which has had the great benefit of allowing the growth ambitions of the LEP to be considered consistently across the whole sub-region during their development. This will mean that the Local Plans within the sub-region and the Strategic Economic Plan will be completely aligned in a very short timescale. The LTAs are committed to ensuring that the transport needs of new housing and employment related developments are fully considered in developing the transport plans and interventions.
7.56
For the development and delivery of individual transport schemes, there is also a commitment from the three LTAs to explore further, more far reaching opportunities for collaboration and resource pooling in the future.
Local 7.57
At the local level the three LTAs continue to deliver successful integrated transport plans, strategies and schemes on the ground to ensure effective movement of people, goods and services.
7.58
Furthermore the three LTAs continue to engage constructively, actively and on an ongoing basis to maximise the effectiveness of their Local Transport Plans to support economic and housing growth within Cheshire and Warrington. This has allowed the close alignment of the current Local Sustainable Transport Fund programmes with existing and emerging policy.
Jointly, the authorities can show a successful track record of delivery of in excess of £95m of transport interventions including: A34 Alderley Edge and Nether Alderley Bypass; Northwich Town Centre Gyratory / Leicester Street Roundabout; Crewe Rail Exchange A49/A50 Warrington major junction reconfiguration; and LSTF capital programmes 93
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Over £12.7m of sustainable travel projects is being delivered across the LEP area through the 2012-2015 Local Sustainable Transport Fund (LSTF). Headline projects include: New cycling and walking routes linking jobs and homes. Supported bus services to improve connectivity Travel planning programmes with employers and residents to promote the new facilities and encourage modal change.
There are over £80m of schemes in the pipeline including: Six local and strategic pinch point schemes; Chester Bus Interchange; Crewe Green Link Road South; and Warrington West new station on the CLC line between Liverpool and Manchester.
A forward capital programme has been allocated in excess of £28m to develop and implement this pipeline.
Local Sustainable Transport Fund (LSTF) Bids 7.59
The aim of ‘Creating Sustainable Conditions for Growth’ is underpinned by the need to improve the local transport offer to both maximise the capacity of our networks and promote sustainable travel behaviour. To demonstrate this, the LEP partners through the LTB have developed complementary LSTF funding bids which target our key economic sites with improved sustainable travel options which can deliver modal shift. The revenue based activity contained within the bids is reinforced by corresponding physical improvements identified for funding through the Local Growth Fund capital allocation.
7.60
The LSTF work is now the driving force behind our approach to smarter choices, cycling and walking. We recognise the immense benefits that sustainable transport projects have in supporting local growth strategies. In particular LSTF projects add value to the existing transport networks by encouraging modal shift to low carbon forms of travel.
7.61
The SEP investment programme includes over £4 m of new LSTF capital schemes for 2015/16 and later years. Bids to the 2015/16 LSTF revenue programme is being made by the authorities which will serve to lock in the benefits generated by the capital works. The SEP fully supports the bids and hopes that this will be the start of a longer term programme of revenue support for local sustainable transport projects.
Resourcing and Value for Money 7.62
Detailed work has been undertaken to cost fully, comprehensively, and transparently the range of significant Transport interventions set out in this SEP, including the identification of specific funding streams for individual interventions and schemes. The details of scheme cost and funding streams along with the contribution we are seeking through this SEP is set out later in our submission. Significant back-up material and evidence justifying the investment in the individual schemes and programmes is available for more detailed scrutiny.
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7.63
C&W LTB successfully secured DfT approval for its Assurance Framework that was developed for the delivery of the devolved major schemes. C&W LEP has committed to the use of this approved document as the framework within which the transport investment will be managed and delivered. This should provide government with strong confidence that C&W will deliver good value for money for the transport investment through rigorous application of the Assurance framework, including compliance with WebTAG guidance and independent review and scrutiny of scheme business cases.
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8. Transport Theme-level Actions T1: Prioritise sustainable transport infrastructure in the Atlantic Gateway and enhance the Gateway’s national and international connectivity Rationale
Improve connections to neighbouring sub-regions, and in particular international gateways to ensure business has connectivity to global markets. Currently, surface access to Liverpool and Manchester airports, and also Birmingham International, from the LEP area suffers from stress at peak times. Whilst the network has served us well in the past, it needs to be made more robust, efficient and resilient to realise our economic ambitions over the next 10 years. Good connectivity to employment locations in adjacent areas for C&W residents and businesses is important to facilitate the economic benefits of both out and in commuting that takes place on a daily basis. Pinch points and congestion in the transport network, both road and rail, act as barriers to growth if left unaddressed. Delays and unpredictable journey times are a market failure that affect both business activities directly and indirectly, and influences commuting flows. Network resilience needs to be addressed to deliver predictable and efficient journey times to support business productivity. The effectiveness of the wider network to absorb the impact of unplanned events (such as accidents or adverse weather conditions) is limited, and such events have a significant adverse impact on productivity. Making best use of the existing road (e.g. smart motorways) and rail networks (e.g. electrification), to capitalise on existing infrastructure, offers efficient mechanisms for improvement, and will help deliver best value for money from investment. For example, the forecast increase in freight travelling by barge rather than using the road network will result in an increase in road closures and traffic queues in Warrington due to operation of the three swing bridges over the Manchester Ship Canal, unless this is addressed through the construction of a new high level crossing. C&W LEP has been working closely with the Highways Agency and Network Rail to ensure they understand our economic growth proposals and how these relate to the strategic transport networks. C&W LEP wishes to continue to work closely with the HA and NR in order to influence and shape their future investment programmes and priorities to ensure that they align with, and support our strategic investment sites and thus help maximise delivery of new housing and job creation.
Objective
Objective 1: To transform connectivity across, and to and from, the Atlantic Gateway world trade corridor
Strategic Asks
Rail Improvements The rail priorities consist of a package of rail infrastructure improvements to enable Cheshire & Warrington to accelerate increased economic growth through improved rail accessibility and connectivity and also to position the area to fully exploit the benefits from HS2. The individual package elements are listed below. Warrington Bank Quay - Commitment to the provision of Classic Compatible Train Services to go with the implementation of HS2. This is a key station on the WCML and it is vital that both the platforms and facilities are put in place at the station to accommodate these trains and the associated passenger needs.
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Warrington Arpley - Full implementation of the Warrington Arpley works which is required help to facilitate delivery of the Warrington Waters major regeneration scheme. This scheme truly unlocks land for development close to the town centre. Improved Connectivity to Manchester Airport HS2 Station - The HS2 proposals include a new station at Manchester Airport. This new station provides an opportunity for extending the benefits of HS2 across the north of the C&W LEP area but this will require new public transport connectivity. The DfT should commission a feasibility study to investigate options for direct public transport access to Manchester Airport and the proposed HS2 from C&W. Capacity, Line Speed and Service Improvements - East-west rail travel across the area is slow, infrequent and of poor quality. This is a barrier in accessing employment and thus impedes economic growth. We see electrification as a solution but are keen to have a dialogue with Network Rail to work towards the most appropriate solutions. The following are key areas that require investment:
Line between Holyhead, Chester, Warrington and Crewe Capacity and line speed improvements between Wrexham and Chester Frequency improvements of the current Wrexham – Neston – Bidston service Frequency improvement on the Mid Cheshire line (Chester – Northwich – Manchester)
Motorway Capacity Improvements There are a number of pinch points on the strategic road network that directly impact on the economy of the C&W LEP area. C&W asks that it can have dialogue with the HA to influence its Route Based Strategies to prioritise capacity improvements (Smart Motorways) on the most immediate transport barriers to growth across the Atlantic Gateway:
M53 between junctions 5 and 11 to improve accessibility to Ellesmere Port M56 between junctions 5 and 12 to improve accessibility to Manchester Airport, including a new Junction 11a to improve access to the new Mersey Gateway bridge that sits just outside the C&W area M62 between junctions 8 and 11 along with capacity improvements at Junction 8 (Burtonwood) and Junction 10 (Croft) to improve accessibility along this main route between the Liverpool and Manchester City Regions and unlock development at the Omega strategic site.
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ANNEX C – Draft Action Plan Ref:
Outcome(s)
Achieved By (Actions)
T.1
Prioritise connectivity in the Atlantic Gateway by road, rail and water, and enhance the Gateway's national and international connectivity
Improving pinchpoints and providing additional capacity on the strategic road network to address the most immediate transport barriers to growth in the Atlantic Gateway. Influencing the Highways Agency to ensure its Route-Based Strategies prioritise capacity improvements at key motorway junctions and sections (Smart Motorways) Developing and delivering solutions to facilitate economic growth on key Atlantic Gateway corridors
Rail improvements: to ensure centres of population and employment are connected by reliable and frequent services and provide improved access by rail to employment opportunities and international markets.
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Delivered Through (activities and projects) Smart Motorways at M6 (Jn 16 - 19), M56 (Jn 5 - 12) and M62 (Jn 8 - 10)
Delivered By (Resources)
Key Dates
Highways Agency, Local Transport Body (LTB), Local Growth Fund (LGF)
as above
LTB, Local Authorities
Capacity improvements along the A54 corridor (between the M6 and Winsford and through to the A51 at Tarvin), improved link between M6 and Congleton and improvements to the A51 corridor Reinstate the Halton Curve to passenger traffic; electrification of Liverpool to Manchester Cheshire Lines; electrification of Crewe to Holyhead line; improvements to increase line speeds and frequencies; upgrade to mid-Cheshire Line; commission feasibility study to investigate options for direct rail access to Manchester Airport from C&W
LTB, LGF, Local Authorities
Network Rail, Merseytravel, Cheshire West & Chester Council
2016/17
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions) Improve network resilience: develop and deliver solutions to address reliability problems on the network, improve access to Port Warrington to facilitate increased freight to travel along the Manchester Ship Canal
T.2
Improve connectivity between Crewe, M6 and mid-Cheshire towns to unlock development in Crewe High Growth City
LTB Major schemes: deliver schemes in the Development Pool to improve transport conditions for economic growth Unlock new development land; open up currently inaccessible land for potential development in sustainable locations through delivery of new infrastructure
T.3
Improve access to unlock priority employment and housing sites across the LEP area
Work with Local Transport Authorities, planning authorities, developers and transport operators to deliver a range of viable sustainable transport mode options for work and leisure
99
Delivered Through (activities and projects) New high level crossing of the Manchester Ship Canal in Warrington; upgrading existing swing bridges to improve network efficiency; maintain critical structures on key routes Crewe Green Roundabout Congleton Link Road Middlewich Eastern Bypass Crewe Northern Growth Corridor Rail electrification; improved accessibility in key growth corridors; improve A500 south of Crewe, safeguarding existing key routes (A51 and A54) progressing a number of nondevelopment pool LTB schemes; Chester Transport Strategy Phase 1 and 2; Warrington Waterfront Transport Infrastructure Schemes Phase 3 (east and west); Omega local roads; A34 improvements at Handforth East
Delivered By (Resources)
LTB, LGF, Cheshire East Council
Cheshire East Council, Network Rail, LGF
LTB, Local Authorities, LGF
Key Dates
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions)
H.1
Resourcing the sub-region to champion housing growth - a Housing Action Team
Creation of a Housing Core Team focussed on co-ordinating the market and bringing together private, public and RP investors and facilitators, providing intelligence, strategy development, programme management and operational support to the Housing Board
H.2
Housing Innovation Support
Delivered Through (activities and projects) Market coordination (ensuring full communication between the market and its players), housing intelligence, sub-regional housing strategy development and investment planning, promoting the delivery of high quality homes and places, programme management and delivery, operational support
Delivered By (Resources)
Key Dates
Creation of three new posts at a sub-regional level, supplemented by secondments as appropriate. Suggested annual cost of £250,000 per year to cover staffing, overheads and provide a budget for commissioning
2015/16
Creation of a time-limited Housing Taskforce focussing on securing development by helping, where appropriate, consented schemes through to implementation.
Providing focus on sites where there are barriers to the delivery of new homes, working with landowners to identify a range of potential responses.
Estimated cost of £150,000 per year for 3 - 5 years to cover staffing and overheads (less partner secondments)
2015/16
Testing the viability and deliverability of emerging models and niche markets to meet the needs of current and future communities across Cheshire and Warrington.
Build to Rent pilots - commissioning research to gauge the requirements of investors and reflecting this to review development opportunities; commissioning a study to establish the spectrum of needs across Cheshire and Warrington for retirement housing and to coordinate identified need with potential development sites; commission a study to review alternative opportunities for promoting self-build and custom self-build within the private and public sector
Registered Providers, Developers, Local Authorities
2016/17
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Ref:
Outcome(s)
Achieved By (Actions) Coordinating private and public sector partners to assemble a package of support (particularly in relation to funding guarantees, expertise and land assets) to facilitate the delivery of pilot projects.
In.1
Promoting Cheshire and Warrington as open for business
A series of activities delivered that focus on Cheshire and Warrington's assets and designed to increase the profile of Cheshire and Warrington as a place to invest and do business
In.2
Developing a 20-year Infrastructure Investment Plan
Mapping of infrastructure investment requirements across a range of infrastructures Identification of funding opportunities and delivery mechanisms to take require infrastructure works forward
101
Delivered Through (activities and projects) Bring forward proposals for initial pilots for Build to Rent, innovative specialist retirement housing and self build. Establish and promote opportunities for self-build Development of a plan setting out priorities for promotional activities; publicising the area's existing physical assets in promotional materials; marketing the strengths of Cheshire and Warrington a place to live and do business; demonstrating support for planned investments; active marketing of Cheshire and Warrington to potential incoming investors; publicising new investments as they are made Commissioning of mapping activity
Delivered By (Resources)
Key Dates
Registered Providers, Developers, Local Authorities
2016/17
Alignment of existing partner activity plus estimated additional £50,000 - £100,000 per annum.
2016/17
Indicative requirement of £100,000 - £150,000 identified for this work included above
2015/16
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions)
B.1
Supporting Business Excellence in Cheshire and Warrington
Development of core business support programme
B.2
Cheshire and Warrington Energy Cluster Development
Developing a series of key high level activities to support the development of an energy cluster in Cheshire and Warrington
102
Delivered Through (activities and projects) Development and ongoing management of a consistent Business Support Service; support for the Social Enterprise Sector; facilitation of access to National programmes; strengthening relationships between SME supply chains and 'larger' businesses; enhancing sub-regional capacity to manage external business relationships and attract investment from outside the sub-region; building on and strengthening existing private sector networks as sources of advice to businesses Development and communication of a long-term cluster development strategy; provision of executive capacity to oversee delivery of the strategy; support for firms within the cluster to develop linkages; supporting creation of an 'open innovation' ecosystem; undertaking a regular programme of market intelligence / foresight research; developing competitive hard and soft infrastructures
Delivered By (Resources)
Key Dates
Indicative cost of £1m per annum
2015/16
Energy Cluster Development Manager (to be appointed); website development; programme of networking events; research foresight activity (to be commissioned). Indicative annual cost £200k
2016/17
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Iv.1
Innovation and Smart Specialisation Plan
Achieved By (Actions) Developing an Innovation Plan for the sub-region, providing a clearly articulated framework for innovation development for the next 10 years
Research and refine innovation roadmaps for principle components, sectors and technologies of Cheshire and Warrington's innovation offer.
Iv.2
Innovation Networks and Engagement Activity
Stimulating and developing a range of networks, operating across the subregion, to promote and facilitate innovative thinking and behaviours.
103
Delivered Through (activities and projects) Formation of an Innovation Plan Working Group and Governing Board; development of the Innovation Plan including evidence gathering, specification an consultation phases; specifying, costing and readying a detailed and substantive action plan comprising short, medium and long term actions SWOT analysis; reference to the European 'Smart Specialisation' agenda for smart differentiation; review of (and benchmarking with) good practice in similar economies (UK and globally) Designing, developing and publishing annually the 'Cheshire and Warrington Innovation Index' benchmarking innovation in the subregion with selected competitor areas Appointment of dedicated Innovation Networks Animateur; developing an active programme of events to build innovation networks within and without the sub-region; development, installation and maintenance of a digital platform for the network;
Delivered By (Resources)
Key Dates
Indicative cost of £85k to prepare the Innovation and Smart Specialisation Plan (to be commissioned); £200k per annum for Innovation plan Implementation Team; £150k per annum of campaign funds over five years
2016/17
TBC
TBC
Indicative cost £40k per year
2016/17
£100k per annum for Networks Animateur; £25k for development of digital platform; £25k per annum maintenance for digital platform; £60k per annum for Innovation Community Chest; £50k per annum for publicity, publications and media
2016/17
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions) Using the above networks within the Cheshire and Warrington geography to support a stronger and more connected sub-region, where there is greater understanding of what is being done around innovation and purposeful opportunities for collaboration around innovation issues identified and brokered
S.1
Developing a partner co-designed employability programme
Delivered Through (activities and projects) Developing a strong emphasis on establishing innovation networking as a 'second-nature' activity, and trying to develop a pervasively more 'open to innovation' culture within and across the sub-region
Delivered By (Resources)
Key Dates
included above
2016/17
Radically growing Cheshire and Warrington's connectedness on innovation issues (at home and abroad), to other places and their centres of expertise.
included above
2016/17
Establishing the network as a branded asset serving inward investment.
included above
2016/17
£40 million over seven years primarily sourced from ESF matched by opt-in partner resources.
From 2015/16
Included above
From 2015/16
Contributing to the SEP-wide vision to achieve an active and engaged community through high levels of employment
Supporting the strategic imperative to achieve Smart Specialisation and 104
Support for skills development in those sectors and areas of expertise in greatest demand amongst local employers; brokering opportunities between local residents and employers to secure work placements, apprenticeships and direct employment opportunities; promoting and supporting selfemployment, entrepreneurship and enterprise as routes out of worklessness Innovative initiatives to support disengaged young people and adults
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions) restore the productivity premium by increasing engagement levels and supporting people to play an active role in growing sectors of the economy Supporting the LEP vision to improve economic engagement and performance
S.2
Agreeing a Big Lottery funded programme to engage disadvantaged groups and those furthest from the labour market
S.3
High quality FE estate and supporting capital investments to support economic growth
Interventions to ensure FE facilities remain fit for purpose, eliminating any estate that is category C or D, and supporting growth in national centres of excellence.
S.4
Increased employer investment and demand for skills
A high quality, employer-focussed further education infrastructure
105
Delivered Through (activities and projects) to enter and progress in employment, including community led approaches to support engagement.
Delivered By (Resources)
Key Dates
Addressing barriers to training and work amongst target communities; developing locally specific inclusion initiatives; providing work experience opportunities to help people build their skills and confidence; supporting capacity building within social enterprises and community groups to address support needs. Estate improvements at Reaseheath College and Mid Cheshire College. Investment in specialised facilities for Agri-Tec and Engineering at Reaseheath College.
£22 million over seven years funded by ESF and the Big lottery Fund
FE Capital Fund, FE providers,
2015/16 – 2016/17
Development of Employer Business Hubs at Warrington Collegiate, West Cheshire College, Macclesfield College, Reaseheath College, Mid Cheshire College and South Cheshire College.
FE Capital Fund, FE providers,
2016/17
From 2015/16
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Ref:
Outcome(s)
Achieved By (Actions)
F.1
Develop fund to support investment in SME's through a mixture of debt, equity and quasi-equity
Developing further phase of North West Fund
F.2
Develop fund to support investment in employment-led projects and developments
Developing further phase of Evergreen Fund
F.3
Development of Local Impact Fund
Delivered Through (activities and projects) Support for skills development in those sectors and areas of expertise in greatest demand amongst local employers; brokering opportunities between local residents and employers to secure work placements, apprenticeships and direct employment opportunities; promoting and supporting selfemployment, entrepreneurship and enterprise as routes out of worklessness Innovative initiatives to support disengaged young people and adults to enter and progress in employment, including community led approaches to support engagement. Addressing barriers to training and work amongst target communities; developing locally specific inclusion initiatives; providing work experience opportunities to help people build their skills and confidence; supporting capacity building within social enterprises and community groups to address support needs.
Development of LEADER Programme
106
Delivered By (Resources)
Key Dates
£40 million over seven years primarily sourced from ESF matched by opt-in partner resources.
From 2015/16
Included above
From 2015/16
£22 million over seven years funded by ESF and the Big lottery Fund
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
ANNEX D: Partners and Stakeholders engaged in developing the SEP Working Groups Access to Finance Alex Thompson, Cheshire East Council Andrew Hague, Howard Worth Anton Stirrett, Hillyer McKeown LLP Caroline O’Brien, Cheshire East CVS Cllr Keith Musgrave, Cheshire West and Chester Cllr Peter Raynes, Cheshire East Council Cllr Russ Bowden, Warrington Borough Council Council Cllr Terry O’Neill (Chair), LEP Board Member and Warrington Borough Council Danny Mather, Warrington Borough Council Dave Furnival, National Westminster Bank plc Gordon Richardson, Make It Macclesfield Kevin Janes, Cheshire and Warrington Social Enterprise Partnership Lynton Green, Warrington Borough Council Mary Gillie, Mary Gillie Associates Paul Breen, Business Finance Solutions Richard Fair, National Farmers Union
Building our Business Base Carol Young, Cheshire East Council Caroline Bedell, Country Landowners Association Cllr Dan Price, Warrington Borough Council Cllr Don Hammond, Cheshire West and Chester Council Cllr Peter Groves, Cheshire East Council Colin Brew, West Cheshire and North Wales Chamber of Commerce David Pollock, Chess Telecom Iain Paton, Cheshire West and Chester Council Jeff Hardman, Barnhill Marketing and Institute of Directors Jim Gill, Specialist Adviser
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Building our Business Base Kevin Janes, Cheshire and Warrington Social Enterprise Partnership Martin Wood, BIS Matthew Morris, Bolesworth Estate and Rural Regeneration Board Nigel Schofield (Deputy Chair), LEP Board Member and Northenden Diamond Travel Phil Orford, Forum of Private Business Richard Goodwin, Country Landowners Association Robert Davis, (Chair) LEP Board Member and EA Technology Steve Harvey, Hillyer McKeown LLP Steve Park, Warrington & Co Susan Spibey, Birchwood Forum
European Working Group Colin Billingsley, DWP Cllr Ken Butler, ChALC Frank Collins, Learning Together and The Hope Centre Pernille Kousgaard, Strategic Special Advisor Cllr Mike Jones, LEP Board Member and Cheshire West and Chester Council (Co-Chair) Francis Lee, Cheshire West and Chester Council Paul Nolan, The Mersey Forest Krista Patrick, Enworks Mike Rance, Make It Macclesfield CIC Charlie Woodcock, University of Chester The Venerable Ian Bishop, Faith Communities Lynn Collins, TUC Liz Demaisen, on behalf of Warrington & Co. Ola Dykes, DCLG – GDT Andy Farrall, Warrington Borough Council Peter Henderson, Bank of America David Hunter, DeFRA Revd Stephen Kingsnorth, Faith Communities Nicola Lavin, DCLG – GDT Cllr Herbert Manley, Cheshire West and Chester Council Cllr Terry O’Neill, LEP Board Member and Warrington Borough Council (Co-Chair) Paul Radcliffe, Environment Agency
108
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
European Working Group David Rowlands, Country Land and Business Association Caroline Simpson, Cheshire East Council
Infrastructure and Connectivity Andrew Ross, Cheshire East Council Cllr Kay Loch, Cheshire West and Chester Council Cllr Linda Dirir, Warrington Borough Council Cllr Michael Jones, LEP Board Member and Cheshire East Council (Chair) David Smyth, Swansway Garages Delyse Bayley, Homes and Communities Agency Gary Collins, Cheshire and Warrington LEP Gordon Richardson, Make It Macclesfield Henry Brooks, Tatton Estate Jeannie Gardiner, Cheshire Voluntary Action [Andy – check organisation please] Julian Cobley, Cheshire East Council Louise Morrissey, LEP Board Member and Peel Holdings (Deputy Chair) Mark Chadwick, Environment Agency Mark Waite, Bloor Homes and House Builders Federation Paul Molloy, Paul Molloy Associates Pete Waterman, LEP Board Member (Deputy Chair) Philip Jackson, ChALC Steve Hunter, Warrington BC
Innovation Aidan Manley, Cheshire and Warrington LEP Alison Cullen, Warrington Voluntary Action Alison Knight, Cheshire West and Chester Council (representing Charlie Seward) Andy Duxbury, Aaron and Partners Andy Farrall (Warrington Borough Council) Andy Smith, Federation of Small Businesses Charlie Seward, Cheshire West and Chester Council Cllr Andrew Dawson, Cheshire West and Chester Council Dr Martin Ashcroft, Deputy Chair, Tata Chemicals and LEP Board Member Helen Seagrave, EnWorks 109
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Jez Goodman, Cheshire East Council (representing Caroline Simpson) Joanne Shelley, Hillyer McKeown LLP Kate Gamble, Environment Agency Lawrence Bellamy, University of Chester Lynne Jones, Make It Macclesfield Mike Rance, Make it Macclesfield Professor Malcolm Bennett, University of Liverpool Professor Tim Wheeler, Chair, University of Chester and LEP Board Member Steve Bennett, Transition Plus
Promoting Cheshire and Warrington: Barrie Kelly, Marketing Cheshire Brendan Flanagan, Cheshire East Council Carol Berry, Chester Voluntary Action Chris Koral, Chair Cheshire Region Local Nature Partnership Cllr Gareth Anderson, Cheshire West and Chester Council Elaine Dunn, EPN AOVC Graham Ramsbottom (Deputy Chair), LEP Board Member and Wheatsheaf Investments Ltd Howard Hopwood (Chair), LEP Board Member and Harman Technology Ltd Katrina Michel, Marketing Cheshire Lesley Brown,Cheshire and Warrington LEP Mitch Pool, Warrington Borough Council Paul Gallon, Park Royal Hotel Richard Milkins, Cheshire East Council Sarah Flannery, Dimension Creative Limited Tony Jones, Make It Macclesfield and Orbit Developments
Skilled and Productive Workforce: Annette McDonald, Reaseheath College Chris Baker, Learning Together Cheshire and Warrington and LEP Board Member (Deputy Chair) Cllr David Brown, Cheshire East Council Cllr Tom Parry, Cheshire West and Chester Council Colin Brew, West Cheshire and North Wales Chamber Debbie Corcoran, Skills Funding Agency Diane Wright, Manchester Metropolitan University 110
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Skilled and Productive Workforce: Gareth Hopkins, Warrington Borough Council Ian Knowlson, Selling Success Jacky Forster, Warrington Borough Council Janet O’Connor, Job Centre Plus Janice Wooley, Total People Justine Watkinson, Hillyer McKeown LLP Laura Smith, Disability Information Bureau Lesley Brown, Cheshire and Warrington LEP Lisa Conway, Cheshire West and Chester Council Meredydd David, Reaseheath College and LEP Board Member (Chair) Paul Hafren, Warrington Collegiate Peter Cavanagh, Cheshire East Council Phil Orford, Forum of Private Business Roz Atherton, Cheshire and Warrington LEP Sharon Inch, Oliver Valves Limited Susan Spibey, Birchwood Forum
Strategic Workshops Stakeholders Alan Barton, Square One Lifestyle Homes Alan Tranter, baker tilly Alison Amesbury, Cheshire West & Chester Council Andrew Ross, Cheshire East Council Andy Gatcliffe, Warrington Wolves Andy Seddon, Cheshire West & Chester Council Brian Birtwistle, Birtwistle Property Consultants Carol Young, Cheshire East Council Charlie Woodcock, university of chester Chris Capes, CW&C Christine Gaskell MBE, Cheshire & Warrington Local Enterprise Partnership Christophe Hesbert, Abode Chester Cllr Terry O'Neill, Warrington Borough Council Colin Brew, West Cheshire & North Wales Chamber of Commerce Colin Daniels, Warrington Chamber of Commerce & Industry
111
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Stakeholders Darren Lawless, Cheshire East Council Dave Furnival, Nat West Bank David Rowlands, European Single Programme Working Group David Watson, East Cheshire Chamber of Commerce Diane Wright, Manchester Metropolitan University Dr Martin Andrews, Northwest Automotive Alliance Edward Greenhalgh, E.E.G. Consultants Elaine Chadwick, West Cheshire College Francis Lee, Cheshire West and Chester Council Helen Seagrave, ENWORKS Herbert Manley, Cheshire West and Chester Iain Paton, Cheshire West & Chester Council Ian Foster, National Westminster Bank Jane Baker, Cheshire West & Chester Council Jane Harrad-Roberts, Marketing Projects Jane Pearson, University of Chester Jane Staley, Groundwork Cheshire Janice Woolley, Total People Limited Jo Lappin, Cheshire & Warrington Local Enterprise Partnership John Newton-Jones, West Cheshire Karl Connelly, Cheshire West & Chester Council Kevin Janes, Cheshire & Warrington Social Enterprise Partnership Kevin Murphy, BiG Storage Ltd Laura Evans, Marketing Cheshire Laura Young, Marketing Cheshire Lesley Brown, Programme Office - Cheshire & Warrington Lesley Bassett, Cheshire West & Chester Council Lisa Conway, Cheshire West & Chester Council Mark Briegal, Aaron & Partners LLP Mark Chadwick, Environment Agency Mark Waite, Bloor Homes Martin Wood, Department for Business, Innovation & Skills Melissa Parsons, Cheshire West and Chester Council Michael Holligan, Barclays Bank
112
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
Stakeholders Mike Dowse, Square One Lifestyle Homes Mike Hawes, Bentley Motors Neville Chamberlain, Cheshire Business Leaders Nicola Lavin, DCLG Nigel Schofield, Northenden Diamond Travel Ola Dykes, DCLG Paul Gallon, The Park Royal Hotel - Q Hotels Paul Hafren, Warrington Collegiate Paul Kirkbright, University of Chester Paul Molley, Paul Molley Associates Ltd Paul Taylor, Taylor Estates Peter Crompton, BE GROUP Peter Swift, South Cheshire College Phil Orford, Forum of Private Business Robert Davis, LEP Board Member Sarah Lalieu, Canal & River Trust Stuart Hulse, ChALC Susan Spibey, Birchwood Forum
113
Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
ANNEX E: Project Proformas
PROVIDED UNDER SEPARATE COVER
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Cheshire and Warrington Matters - a Strategic Economic Plan for Cheshire and Warrington DRAFT as at 25 March 2014
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