A strategy for jobsThe City of Edinburgh Council’s Economic Strategy for 2012-17

contents3 Ourvision6 Investinginjobs8 Challengesandopportunities14 TheCouncil’sapproach20 Programme1:investinthecity’sdevelopmentandregeneration26 Programme2:supportinwardinvestment32 Programme3:supportbusinesses38 Programme4:helpunemployedpeopleintoworkorlearning44 Trackingourprogress47 Ourcalltoaction

Our vision

A confident, creative and inspiring capital city, powering

growth and jobs for the city region and Scotland.

A city whose quality of life and commitment to sustainability draws talent and investment from around the world.

A city where the public, private and third sectors collaborate with common purpose.

And ultimately, a city which puts the people of Edinburgh at the heart of

its economic success.

Ourvision–page3

Hugh RutherfordChairoftheEdinburghBusinessForum

page4

Andrew BurnsCouncilLeaderTheCityofEdinburghCouncil

Sue BruceChiefExecutiveTheCityofEdinburghCouncil

“This strategy sets out our ambitious programme for

sustainablegrowthinjobsandinvestment inEdinburgh’s

economy.Theprogrammewasdevelopedthroughclose

collaboration between the Council and partners

across the public sector and Edinburgh’s

business community. Such cooperative

working represents a key theme of the

approach set out in this strategy. Only

by working together can we meet our

goalsforthecityandthepeoplewho

liveandworkhere”.

SueBruce,ChiefExecutive,withCouncilApprenticesrecruitedaspartoftheEdinburghGuarantee2011-13.

Investing in jobs

During a time of considerable economic instability, Edinburgh stands out as a remarkably successful and resilient city. It responded swiftly to the global financial crisis and came through the recession better than other UK cities. Despite these strengths, the city faces some serious challenges. Not least, unemployment is rising, with the demand for jobs projected to grow at up to twice the rate of supply.

It is in response to this challenge that our Economic Strategy is built firmly around the theme of ‘sustainable growth from investment in jobs’. The strategy reflects our renewed sense of urgency around this theme as we seek to strengthen Edinburgh’s prosperity in difficult economic times.

The jobs challengeGiven the scale of the jobs challenge and its implications for communities across the city, supporting the economy must be at the heart of every Council service. This is why our strategy makes every Council service accountable for growth in jobs and investment. In doing so, this approach follows the recommendations of the Christie Commission on the Future Delivery of Public Services by seeking to prevent the social costs of unemployment from generating financial burdens on the economy.

The global economy remains fragile but we are privileged to live in a city with remarkable assets. Time and again we are told by investors that they are attracted to Edinburgh by its quality of life, culture, institutions, skills, and history. With all this on our side, we believe Edinburgh will increasingly draw talent and investment from around the world, powering growth and jobs for Scotland.

Collaboration and partnershipThis strategy has been developed in partnership with the private sector through the contributions of the Edinburgh Business Forum. Throughout our consultations, forum members have particularly encouraged the ‘whole Council’ approach to economic development which this strategy embodies.

As we move through this decade, we must continue to encourage community-wide support for the strategy and its goal of generating growth in jobs and investment. The challenges are significant and meeting them will require a strong sense of shared purpose and collaboration between business, the public sector and communities. Only by focusing our joint efforts on supporting the economy, will we be able to deliver our ambitions for the city.

Building a strong sustainable futureThe task ahead of us is difficult, but achievable. Edinburgh has the ingredients needed to build a strong and sustainable future. The city has strength in a wide range of industry sectors, global reach in many fields, and new opportunities emerging. Amongst these is the city region’s potential for jobs growth in the renewable energy sector. This has been highlighted by the Scottish Government identifying major opportunities at Leith Harbour. And the move towards a low carbon, low emission economy, whilst recognising the practical and cost implications for businesses, is nevertheless vital for our long term prosperity.

This strategy recognises the scale of these, and other, challenges and opportunities. Its key role is to focus Council efforts on creating the conditions needed to capitalise on the city’s assets.

Investinginjobs–page7

Investing in jobs

page8–Challegesandopportunities

“Creating the conditions for growth and jobs must be the Council’s number one economic priority”

Edinburgh has a successful economy and future projections show potential for economic growth over the next 20 years. But the 2011 Economic Review shows us there are challenges ahead and opportunities to be grasped if we are to improve quality of life for residents. The Council has a vital role in coordinating innovative responses to these challenges and opportunities.

Creating the conditions for growth and jobsThe Economic Review estimates that the number of people looking for work in Edinburgh could grow by up to 1.2 percent per year but job supply may only grow by 0.3 percent. By 2018 there could be up to 37,000 more people looking for work in the city than there are available jobs. Young and disadvantaged people will be hit hardest. Creating the conditions for growth and jobs must be the Council’s number one economic priority.

Unlocking the investment pipelineHigh quality infrastructure and public spaces are vital to Edinburgh’s continuing competitiveness. They are also an essential foundation for business growth and job creation. New investment is badly needed but there is less private sector funding available since the global economic downturn. Innovative solutions are needed to unlock investment to meet a development funding gap estimated to be standing at some £1.3 billion. The Council’s services should work even more closely together to ensure a unified approach is taken to supporting new development.

EdinburghWaverleyStation-subjectofamajorupgradeandrefurbishmentfrom2010.

EdinburghTrams.

Challengesandopportunities–page11

“High quality infrastructure and public spaces are vital to Edinburgh’s continuing competitiveness”

Reducing poverty and promoting equality of opportunityIncreased economic activity is acknowledged as a key factor in tackling poverty and inequality, and the resulting economic and social costs. The Economic Review calculated the cost of joblessness to the city at £309 million per annum in lost output alone. Every service in the Council has levers it can pull to help create the conditions for growth and jobs, and improve the employment and earning prospects of disadvantaged people.

The Council can collaborate with employers and skills providers to enhance the prospects for career progression. And it can help ensure that all citizens have the opportunity to share in the city’s economic success by providing access to education, care services, affordable housing, and culture and leisure facilities. Improved fairness and equity are key to ensuring that growth is economically, socially and environmentally sustainable.

Dealing with the consequences of public spending cutsCuts in public spending could result in some 4,200 direct job losses in the city by 2014/15, fewer job opportunities for graduates and scarcer supply chain opportunities for local businesses. A renewed effort therefore needs to be made to help the private sector create jobs and capitalise on business opportunities.

Exploiting our international connectionsAs a capital city, we have a vast array of cultural, diplomatic and business connections around the world. The Council has established civic links with many international destinations. Through our close partnership with Scottish Development International, we are increasingly exploiting these links to attract more investment to Edinburgh.

Improving business growth and exportsThe Economic Review suggests that small and medium-sized enterprises (or SMEs) are the main source of new private sector jobs. But the Review also told us that too few SMEs are exporting or growing to be able to realise that potential. Business leaders and the Council agree that support needs to be directed towards developing the entrepreneurial and management skills of businesspeople.

Capitalising on the tram projectSuccessful completion is important for the transport benefits it will bring and is also vital to the city’s confidence and its reputation with potential investors. The tram project is transformational and will benefit the city’s image, unlock new development, and raise property values along the planned routes. Integration with other transport modes will be the key to realising these benefits.

Lothian Buses plc is the leading bus operator in Edinburgh. Serving more than 50 routes in Edinburgh and the Lothians, Lothian Buses carries around 350,000 passengers each weekday on its 600-strong fleet of buses. In November 2011, Lothian Buses was named ‘Top City Operator of the Year’ at the UK Bus Awards.

In addition to keeping Edinburgh’s economy moving - over a quarter of commuters in Edinburgh travel by bus - Lothian Buses also plays a vital role in Edinburgh’s tourism sector. More than 500,000 sightseers experience the company’s Edinburgh Bus Tours each year, while the AIRLINK service provides a direct public transport link between Edinburgh Airport and the city centre.

“LothianBusesisakeypartnerinthesustainableeconomicdevelopmentofEdinburgh,”saysSteveJohnson.“Alongwithgettingpeopletoworkontime,we’realsoequippingyoungpeopleinEdinburghwithvaluablecommercialexperiencethroughinitiativessuchastheSchoolEnterpriseChallengeandtheEdinburghGuarantee.”

“We are constantly working to reduce our

impact on the environment

by making use of green

technologies.”Steve JohnsonEnvironmentalManagerLothianBuses

Casestudy:SteveJohnson–page13

page14–TheCouncil’sapproach

The Council is proud of its track record on supporting the economy. With some major achievements behind us and many projects in the pipeline, we have a firm foundation on which to build. The whole Council has a responsibility to create the right conditions for economic success and to encourage job creation and business growth. From 2009-2012, we have helped deliver:

• 5,000 business start-ups• New loan funds for growing businesses• Expanded business support services• £500 million of new investment in the city’s

physical regeneration• £56 million of new commercial investment• 8,600 people with barriers to economic

participation brought into employment, education or training.

The case studies included in this document bring to life the impact that this work has had on residents and businesses.

The Council’s approach to economic development has become more innovative

and collaborative. An important part of this approach has been the commitment to maintaining and enhancing a strong evidence base for all our policies and initiatives. This has improved our understanding of how the Council can use its limited economic development budget to influence others and to lever in new investment. We have examined how we can play our part in ensuring that Edinburgh is recognised as a smart, innovative city, capable of achieving a more sustainable and connected, low carbon economy. We have also begun to identify opportunities for more cooperation across the Council, including an improved service to businesses and investors.

As we look to the future, we think there are three ways in which the Council can put the people of Edinburgh at the heart of the city’s economic success:

Focus on jobsOur economic goal will be to bridge the gap between the number of people looking for work and the number of jobs. Creating the conditions for sustainable jobs will be at the top of our

investment criteria and jobs growth will be our key measure of success. We will also be focused on increasing economic participation, helping people into work or learning.

Engage the whole Council in supporting the economyThe Council is a major player in the Edinburgh economy. Its policies on recruitment and procurement are of major significance to jobseekers and supplier businesses. Its central role in running the city is of great importance to the economy. For example, it provides a range of vital services such as: education; housing; local area planning; regeneration; waste collection; leisure; community care; transport; and looking after the city’s environment. It also has scope to rationalise the use of its own property assets to lever in investment. That is why this strategy is for the whole Council, recognising the interconnections between all of its services and how creating the conditions for new jobs is everyone’s business.

The Council’s approach

Events and festivals

Supporting the

economySupporting businesses

Developm

ent and regeneration

Supporting inward investors

Employability and skills

Supporting vulnerable residents

Safe, sustainable communities

Schools and education services

Children and young people’s services

Social work services

Community learning and adult education

Early years and pre-birth

services

Plann

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and

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Environm

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Envi

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Asset management

Housing services and investm

ent

Roads and transport

Libraries and information services

Housing and homelessness support Community protection Revenues and benefits services

Payments and procurement

Culture and sport

Corporate and support services

TheCouncil’sapproach–page15

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Facilitate greater collaborationCollaboration, a sense of common purpose, and shared leadership, are all fundamental to the city’s success. No one partner or organisation has sufficient influence to support the full development of the economy. So pooling the knowledge, expertise, connections and resources of the Council and its partners is the way to enhance our capacity to support the economy. The Economic Action Resilience Network (EARN), developed in the wake of the 2009 global financial crisis, was an excellent example of this. The more that our plans join up, the clearer the city’s vision will be, giving a sense of continuity and certainty. We plan to enhance our existing collaborations between public, private and third sectors, within the City Region, with other Scottish and UK cities, and with international contacts.

These three approaches will be central to the way the Council tackles the city’s economic development challenges and opportunities.

The Council’s approach

Invest in the city’s

development and

regeneration

Help unemployed

people into

work or learning

Support inward

investment

Support businesses

GOALSustainable

growth from

investment in jobs

TheCouncil’sapproach–page17

Four investment programmesThe Council’s support for the economy will be coordinated through four interconnected programmes. Within each programme there will be a number of priorities for action. Some of these will be led by the Economic Development Service but increasingly there will be more cross-Council projects led by different parts of the Council, more collaboration with other agencies, and more levering in of private sector investment. Investment in the city’s development and regeneration will improve the quality of the city’s capital assets and environment. Such improvements will underpin the Council’s efforts to attract new inward investment and support businesses in the city. These three areas of activity combine to support the growth in jobs needed to help unemployed people into work or learning. All four programmes are therefore required to achieve the goal of sustainable growth from investment in jobs.

For each programme, the strategy explains the priority outcomes, the Council’s approach, and the priority areas for action. We recognise that there may be other outcomes which could result from these programmes but the Council has been urged by stakeholders to be clear and realistic about which outcomes are the priorities.

AnnConfreyChiefExecutiveProscotPR

“Close partnership with the

Council has been crucial. Their

involvement maintained a focus

on Granton, and the connections

between staff across the Council

and those working with land

owners, helped achieve a joint

approach to planning and service

provision. Continuing to work

together is definitely the best

way to deliver a truly sustainable

community here at Edinburgh’s

Waterfront.”

Casestudy:AnnConfrey–page19

The Forthquarter, Granton – a district in the north of Edinburgh – forms part of Edinburgh’s Waterfront development zone. National Grid, landowner and development facilitator of this 110 acre site, is promoting the area to investors and businesses and facilitating links with local residents.

“IworkinpartnershipwiththeCounciltoensurethatpeopleinthewiderGrantonareabenefitfromtheregenerationattheForthquarterandneighbouringsites,”saysAnnConfrey,ChiefExecutiveatProscotPRwhichrepresentsNationalGrid.“Iliveintheareaandamanactivecontributortomanycommunityprojectsandneighbourhoodpartnershipinitiatives.It’sbeenverypositivetoseehowcollaborativeeffortshelpeddeliveraWaterfrontrecruitmentcentre,theconstructionacademyatEdinburgh’sTelfordCollegeandtheupgradingofthecoastalpromenade.”

Enhancementofthepublicrealm,StAndrewSquareGarden.

Programme one:

Invest in the city’s development and regeneration

Programmeone:Investinthecity’sdevelopmentandregeneration–page21

Priority Outcomes for 2012-17

• The City Region’s connectivity will be improved as a result of the tram line linking Edinburgh Airport with other strategic locations.

• Edinburgh will lead the way in the use of innovative funding and delivery mechanisms to support development and regeneration focused on job creation.

• Investment in the public realm will transform the city centre and strengthen retail performance.

• Edinburgh’s expertise in low carbon technologies will generate local benefits, in particular improving the energy performance of the city’s housing stock.

• The city’s care for its heritage and focus on sustainability will ensure that new development is of the highest possible environmental standard and sympathetic to the city’s character.

• The city’s four development zones will progress, creating opportunities for affordable housing and renewed demand for commercial development.

page22–Programmeone:Investinthecity’sdevelopmentandregeneration

The Council’s approachThe Council has supported over £500 million of new investment in the city’s physical regeneration between 2009-2012. We recognise that a well-targeted programme of investment in development and regeneration is critical to ensuring the sustainable economic growth of the city. Such investment helps improve the attractiveness of Edinburgh as place in which to live and work, by providing excellent connectivity, public realm improvements, and affordable housing. It also encourages the development of new industries and markets. We will therefore continue to look for innovative ways of using the Council’s limited resources to lever in new investment to the city’s development and regeneration, building on the Tax Incremental Financing pilot scheme.

The Council will prioritise its investment on those capital projects with the greatest potential to create sustainable jobs. And we will work with partners to secure the long-term investment required to realise the city’s development potential.

We will enhance the focus on job creation by aligning our development activity with our employability programmes. This means that residents receiving employment support will have the best chance of accessing the new employment and training opportunities provided by new investment. Throughout this programme, the Council will use its power and influence to minimise any adverse environmental impacts from new developments. It will also look to showcase exemplar low carbon projects.

Priority areas for Council action

Capital ProjectsWe will prioritise our efforts on capital projects with the potential to make the biggest impact on job creation. Our focus will include: enhancing the city’s accessibility and connectivity such as integrating the tram with other transport modes; improving the city centre public realm, which in turn can help improve retail performance; and promoting sustainable transport in all four priority investment zones.

Priority investment zonesWe will deliver Council-wide development plans for each of the four priority investment zones: the City Centre, South and East Edinburgh, the Waterfront, and West Edinburgh. These plans will reflect the different regeneration and investment propositions in each zone, and will involve local people in design and implementation.

City management and town centre developmentWe will support and enhance the vibrancy of Edinburgh’s town and local centres. The town centres are: Corstorphine; Gorgie/Dalry; Morningside/Bruntsfield; Tollcross; Nicolson Street/Clerk Street; Stockbridge; Leith Walk; Leith Central; and Portobello. In addition, where resources allow, we will support local centres.

Review delivery mechanismsWe will seek new ways to fund capital projects and combine resources across Council functions to boost the investment pipeline into the city.

“The Council will prioritise its investment on those capital projects with the greatest potential to create sustainable jobs.”

QuartermileOne:alandmarkredevelopmentoftheformerEdinburghRoyalInfirmarysite.

Valvona & Crolla is a family business founded in 1934. It is now Scotland’s oldest delicatessen and Italian wine merchant with outlets throughout Edinburgh.

As part of the Council’s ongoing activities to support town centres and businesses during the recession and tram works, a dedicated business co-ordinator has helped businesses in Leith, one of the areas where Philip Contini runs his business.

Philip explains,“ouradvisorhashelpedusandfellowbusinessesbyorganisingpromotionalactivitiestoraisetheprofileandidentityofLeithanddrivefootfallintothearea.ThesehaveincludedcampaignsusingcolourfulbannersalongLeithWalktohighlightlocalpeopleandplaces,andcreatingthe‘ILoveLeith’brand.Anewbusinesshubandtrainingcentrehasalsobeeninstalledinthelocallibrary,offeringawideprogrammeoffreeBusinessGatewayworkshops.Topicsrangefrombusinessstartup,tofinanceandcashflow,tosocialnetworking.”

“It is important for us to have a single point of contact, who will not only help us promote our business but also offer us ongoing practical advice and support.”

Philip Contini Chairmanand

ManagingDirectorValvona&CrollaLtd

Casestudy:PhilipContini–page25

TheCouncilworkswithinnovativefirmslikePufferfishtopromotethecitytoinwardinvestors.

Priority Outcomes for 2012-17

• Edinburgh will maintain its position as a globally competitive business location due to its skills base, connectivity and supportive business climate.

• Edinburgh Airport will offer a widened range of direct air routes to selected international business hubs, bringing investors, and leisure and business visitors to the city.

• Edinburgh will dominate city rankings as a leading visitor and conference destination and host high value sporting and cultural events.

• Edinburgh will benefit from the influx of tourists and investment resulting from events, such as the 2014 Commonwealth Games.

• Edinburgh and Fife will be established among the Scottish centres of excellence in renewable energy.

• The financial services sector will reinforce its reputation in the wake of the global financial crisis.

• Joined-up Council services will provide effective, targeted support for investors.

Programme two:

Support inward investment

Programmetwo:Supportinwardinvestment–page27

page28–Programmetwo:Supportinwardinvestment

The Council’s approachEdinburgh has had considerable success in attracting inward investment from major global companies, attracting over 70 projects between 2006-2010. Such investment brings substantial benefits: improved productivity; job creation; enhanced skills; improved innovation performance; benefits for residents such as new community facilities and housing; and supply chain opportunities for existing businesses. Attracting international investors is also important to ensuring that the city takes full advantage of new growth opportunities, such as those related to the low carbon economy. However, the competition is intense. The Council believes it can sustain and improve the city’s success rate by complementing and adding value to Scottish Development International’s (SDI) lead role.

This is a programme where the opportunities for greater collaboration are considerable. Examples of these opportunities include: exploiting international civic connections; promoting investment opportunities to business visitors; joining up services within the Council and with partners to create a competitive package for new investors; ensuring that residents receiving employability support

can access new job opportunities created by investments; and, raising awareness of investor needs within the Council. By collaborating with partners across the City Region and other cities in this way, we can improve our combined offer to investors.

Key to this is a ‘Team Scotland’ approach to attracting international investment to Scotland. Edinburgh will add value to the overall Scottish investment proposition by working closely with Scottish Development International, the Scottish Government and, through Marketing Edinburgh, with VisitScotland and our convention business.

Priority areas for Council action

Attract new investmentWe will promote Edinburgh as a destination for new investors. Such activity will emphasise the city’s offer to investors, while complementing and adding value to national inward investment campaigns. In doing so, we will work with national and local agencies - particularly SDI and Marketing Edinburgh - to develop a single set of complementary messages for investors. We will also seek to capitalise on

the opportunities for investment arising from business visitors to the city. Our approach will incorporate activity to help local firms and residents gain maximum benefit.

Support new investors We will provide a seamless service to new investors in the city, joining up the services offered by the Council and its partners. The package will include guidance and support on local planning and building standards, advice on housing and schools, assistance in sourcing office space, and support for staff recruitment and training. Such activities will help new companies embed themselves in the community and maximise their potential for growth and job creation.

Improve the city’s competitivenessWe will work with partners to provide a level of support and quality of place which enhances our competitive offer to potential investors. We will continue to research our understanding of markets and supply chains, and the rationale for business location decisions. Then we will use the research to improve our investment offer.

“We will provide a seamless service to new investors to the city, joining up the services offered by the Council and its partners”

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Avaloq Innovation is a global software development company which focuses on providing front, middle and back office software solutions for banks and financial institutions. Avaloq began in 1985 in Switzerland and now employs over 1,200 highly qualified banking and IT specialists in Zurich, Edinburgh and a variety of international offices. Edinburgh is the United Kingdom’s number two financial market and home base to many global players in the financial sector. This was one of many factors which led the company to invest in Edinburgh in 2011, creating 500 professional jobs in its development centre in the city.

Simon Kauth speaks highly of the support he received from the Council during the process. “TheCouncil’steamwasessentialinsolvingdailyobstacles,introducingustothelocalfinancialcommunity,andsteeringandadvisingustohelpmanagetherisktakenwhencreatinghundredsofjobs”.

Brian Conley from Scottish Development International, adds: “thecontributionofcolleaguesfromtheCouncilwasinstrumental.Theyinjectedspecialisedlocalknowledgeonissuessuchascommercialandresidentialproperty.AndthewarmwelcometheyextendedtoseniormembersoftheAvaloqprojectteam,includingpersonalisedsupporttothoseexploringrelocationwiththeirfamiliesfromZurich,contributedtotheperceptionthat‘TeamScotland’wasfullyalignedinitsdesiretowinthisinvestmentandtosupportthecompany’sfuturegrowth.WeknowthiswasoneofthekeyfactorscitedbyAvaloqinreachingitsdecision.”

Simon KauthManagingDirector,AvaloqInnovationLtd

“The Council’s team was essential in solving

daily obstacles, introducing us to

the local financial community, and

steering and advising us to help manage

the risk.”

Casestudy:SimonKauth–page31

TheUniversityofEdinburgh’sInformaticsForum:aworldclassfacilityforresearch,teachingandcommercialisationininformatics.

Priority Outcomes for 2012-17

• Businesses in the city will have a single point of contact for all business-facing Council services.

• Business Gateway support will be fully integrated with other Council services.

• The creative industries sector will thrive, following investment in innovative workspace for start-ups.

• The city’s year-round programme of festivals will be used to champion the creative industries and provide a platform for their innovative products.

• The Council will engage with high growth firms to ensure that the potential benefits of growth are realised.

• Edinburgh will develop its strong entrepreneurial culture with rising levels of self-employment.

• Edinburgh’s businesses will be recognised as exemplars of good practice in adopting sustainable and low carbon business models.

• Spin-outs from the city’s universities will demonstrate innovation in knowledge sectors such as renewable energy and life sciences.

Programme three:

Support businesses

Programmethree:Supportbusinesses–page33

page34–Programmethree:Supportbusinesses

The Council’s approachThrough our Business Gateway services, the Council has supported almost 5,000 start-ups and existing businesses per year over the period 2009-2012. We will step up our efforts on business support, continuing to support start-up businesses and also improving our focus on companies with growth potential. Our programme will build on the Business Gateway model to help firms develop their business skills, access new markets, introduce new products, and promote an entrepreneurial culture in Edinburgh.

We will increasingly align our business support activities with other business-facing Council services to ensure a joined-up approach to helping businesses prosper. Embedded in our approach, is a focus on helping businesses create and retain jobs, and overcome barriers to growth. Entrepreneurial activity is not just about start-up companies, as important as these are. Supporting established businesses in the city has an equally important role in our approach, both in terms of helping firms sustain their existing activity, and supporting those with the potential to generate sustainable growth in jobs and investment. Across all our programmes, we will complement and add value to the work of national agencies and other partners. Key strategic partners include Scottish Enterprise, Scottish Development International,

Edinburgh Chamber of Commerce, the Federation of Small Businesses, and local third sector enterprises, colleges and universities.

Priority areas for Council action

A single access point to the Council We will establish a single, accessible point of contact for customers, which aligns the support provided through Business Gateway with other business-facing Council services.

Business supportWe will continue to improve our business support services to enhance the entrepreneurial skills of new and existing firms in the city. This will include a refreshed Business Gateway service which supports new and growing businesses through workshops, web tools and one-to-one advice.

Encourage innovationWe will promote open innovation and collaboration among Edinburgh’s businesses, support research and development activity, and encourage knowledge transfer.

Support key sectors We will encourage growth in key sectors of Edinburgh’s economy. These include sectors in

which the city has significant existing strengths - financial and business services, health and education, and tourism - as well as emerging sectors with the potential to grow. Examples of support will include encouraging growth and collaboration in Edinburgh’s vibrant creative sector, providing effective support to the social enterprise sector, and promoting the opportunities offered by the transition to a low carbon economy.

Enhance and support local supply chainsWe will research city and regional supply chains and use our research to improve the ability of local firms to benefit from supplier opportunities in the private and public sector. We will use the Supplier Development Programme to manage new initiatives. We will use our information on local suppliers to improve our investment proposition, and help local firms to benefit from the opportunities created through new investment.

Support new investment by Edinburgh businessesWe will complement the activities of Scottish Enterprise by working with local firms to encourage and assist their plans for expansion and investment.

“We will establish a single, accessible point of contact for customers”

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IceRobotics Ltd is an electronics and software company which specialises in monitoring dairy cattle behaviour and welfare.

Following the start of the economic downturn in 2008, the company found it difficult to obtain loan finance from banks, even when the directors were able to increase their share capital in the business. Instead, IceRobotics applied for and received development finance from the East of Scotland Investment Fund (ESIF) which is managed by the Council.

Robert Boyce explains,“togetherwithmatchingfundsfromtwoindividualinvestors,theloanwasprovidedataverycriticaltime–beforethecompanyhaddevelopedasufficienttrackrecordofongoingsalesforitsbanktoprovideoverdraftorotherloanfacilities.”

RobertBoyce

Co-founderandDirector,IceRoboticsLimited

Casestudy:RobertBotce–page37

“Dealing with the Council was a

very refreshing experience. They

took the time to properly understand the company’s business case and trusted our potential.”

Edinburgh’semployabilityprogrammestrainyoungpeopleinavarietyofskills.

Priority Outcomes for 2012-17

• Employability initiatives, backed by a variety of public and private sector employers, will help reduce unemployment amongst young people.

• Effective employability services will help long term unemployed residents back into work.

• The Council and its partners will work better together to equip school leavers and young people with employability and entrepreneurial skills.

• Employability services for priority client groups and in priority areas of the city, will equip people with skills that enhance their chances of increasing their earnings from work.

• The use of community benefit clauses in tenders will help secure new employment and training opportunities for local residents.

• Coordination of employability and skills services will improve value for money and enhance the clarity and quality of services provided to clients.

Programme four:

Help unemployed people into work and learning

Programmefour:Helpunemployedpeopleintoworkorlearning–page39

“We will offer apprenticeships and support to help school leavers and young people move into a job, education, volunteering, training , or self-employment.”

page40–Programmefour:Helpunemployedpeopleintoworkorlearning

The Council’s approachThe Council has helped over 8,000 people into work, education or training between 2009-2012. Our efforts have been focused on supporting people with significant barriers to work, whose particular circumstances are not fully met by nationally funded services.

In future, we will build on this by adopting a bolder, more joined-up approach to service delivery, and a greater focus on young people through initiatives such as the Edinburgh Guarantee. The main collaboration partners will be Edinburgh’s business community, Capital City Partnership, Skills Development Scotland, Jobcentre Plus, Edinburgh Chamber of Commerce, Edinburgh’s colleges and universities, NHS Lothian, the Neighbourhood Partnerships, and the ‘third sector’.

To achieve greater engagement with the private sector, we will use the city-wide employment hubs to manage activity in the four priority investment zones and other centres of employment or opportunity.

Priority areas for Council action

Coordination of employability servicesWe will build a coordinated approach across the Council to developing employment and skills. This will improve the clarity and quality of service offered to our customers, make services easier to understand and access, and deliver better results and value for money. Our approach is set out in a single Council employability commissioning strategy. The re-commissioning of relevant services will result in a closer fit with strategic priorities and ensure best value for our customers. We will also improve the coordination of services with national agencies and work more closely with employers, helping them understand what we can offer. Our new employment hubs will help increase our engagement with the private sector.

Helping school leavers and young people (14-19yrs) make the transition into workWe will seek to increase the number of school leavers and young people going on to work or further learning. To achieve this, we will engage with schools, and lead the Edinburgh Guarantee and follow-on initiatives. We will offer apprenticeships and support to help school leavers and young people move into a job, education, volunteering, training, or self-employment.

Early intervention on unemployment We will provide support to help residents who have recently become unemployed.

Supporting those in low paid or insecure employmentWe will provide support to help individuals progress in work and thus raise their earnings.

Providing employability support for regeneration areas and vulnerable individuals We will complement national services to support individuals in priority groups. This includes programmes to help older and long-term unemployed residents return to work, training or education.

CouncillorTomBuchananandAngelaConstanceMSP,MinisterforYouthEmployment,withJob,Education

&TrainingProgramme(JET)awardwinners.

Aged only 16, William McArthur left school with few qualifications and struggled to find an opportunity to progress his career. Unable to secure a further education place or employment, William was referred by Careers Scotland to the Capital Skills programme, Get Ready for Work. Through the Council’s community benefit work, Capital Skills were able to tap into work experience for him. This proved to be an excellent starting point.

As William explains, “whenanopportunityarosefromSirRobertMcAlpineforanEngineeringAssistant,CapitalSkillsfullysupportedme,helpingmepasstheBuildingEngineeringServicesTest(BEST)soIcouldgoforwardforaninterview.Afteratwoweekworktrial,Iwasofferedthepostpermanentlywhich,asayoungpersoninthecurrentjobmarket,wasjustfantasticandthebestpossiblestartforme.”

Andrew Day, Community Liaison Manager at Sir Robert McAlpine was equally pleased with William’s success and with the quality of training and support from the Council.

WilliamMcArthur

EngineeringAssistantSirRobertMcAlpineLtd

Casestudy:WilliamMcArthur–page43

“We are very pleased to have been able to take on trainees

like William. They have all responded to the world of work with enthusiasm and a ‘willing to learn’ attitude. The quality of trainee has

been excellent.”

Andrew Day,Community Liaison

Manager, Sir Robert

McAlpine Ltd

Tracking ourThe Council will track the progress of the strategy in three main ways: monitoring progress against the Single Outcome Agreement indicators; measuring the economic wellbeing of residents and businesses; and assessing the impact of our activities against key performance indicators: • Support the creation or safeguarding of

20,000 jobs in Edinburgh• Support £1.3 billion of development in

Edinburgh• Support the movement into work or learning

of 10,000 people.

Monitoring the performance of the city’s economy against the Single Outcome AgreementThe Edinburgh Partnership and the Council are committed to ensuring that Edinburgh’s economy delivers increased investment, jobs and opportunities for all. This represents one of four outcomes within the Partnership’s overall vision for a ‘thriving, successful and sustainable capital city in which all forms of deprivation and inequality are reduced’. The Single Outcome Agreement (SOA) between the Partnership and

the Scottish Government reflects this vision and includes the following 13 outcome indicators against which the performance of the city’s economy will be assessed.

Single Outcome Agreement indicators1. The new business start-up rate2. New business survival rates3. Changes in the city’s business stock4. Business expenditure on research and

development5. Gross value added per capita6. Median earnings of city residents7. Economic activity rates8. Employment rates9. Claimants in receipt of out-of-work benefits10. Young claimants in receipt of out-of-work

benefits11. Children in households dependent on

benefits12. Population with low or no qualifications13. Workers undertaking job-related training.

Trackingourprogress–page45

The Edinburgh Partnership will monitor performance against these indicators on a six monthly basis and publish an annual report showing progress towards the short and long term targets outlined in the SOA. In addition to these annual reports, regular updates showing trends against each indicator will be published on the Edinburgh Partnership’s ‘Understanding Edinburgh’ website.

Measuring the economic wellbeing of city residents and businessesThe Council measures the economic wellbeing of Edinburgh’s residents using responses to questions in the Edinburgh People’s Survey, an annual residents’ survey commissioned by the Council. We will use responses to the following questions to gauge residents’ views on their personal finances, their optimism about opportunities for them within Edinburgh’s labour market, and satisfaction with their employment:

• How has your personal financial situation changed over the last 12 months?

• How confident are you about your current and future job/career prospects in Edinburgh?

• To what extent do you feel under or over-qualified for the work you are currently doing?

We will measure the economic wellbeing of businesses in Edinburgh using responses to the triennial Business Perceptions Survey conducted by the Council. Responses to the survey will be used to monitor challenges facing businesses in Edinburgh and discuss opportunities and barriers to growth.

Assessing the impact of our activities against key performance indicators The Economic Development Service (‘the Service’) will regularly report on its progress towards delivering the strategy. The Service will monitor performance at two levels: the number and scale of activities undertaken under each of the four strategic programmes, and the economic impact generated by these activities. The three Key Performance Indicators shown in the accompanying diagram will form the headline measures. The target figures shown, represent gross targets for the service over the five-year period of the strategy.

The Service’s three-year operational plans set out its objectives and work programmes under each of the four programmes. The plan includes a framework for measuring the contribution of its activities towards each of the three targets in the diagram, and calculating the additional benefits generated by its services.

At present, this measurement framework relates only to the activities of the Economic Development Service. If all Council services were included, the economic impacts – and potential targets - generated would be far in excess of those quoted. In line with the aim of engaging the whole Council in supporting the economy, one priority for action during the period of the strategy, will be to broaden this monitoring approach and demonstrate the full impact of the Council’s activities on the city’s economic development.

progress

Economic Development service key performance indicators 2012-17

Strategic programmes Key performance indicators (gross figures)

Outcome goal

Routes to impact

Invest in the city’s

development and regeneration

Support the creation or

safeguarding of 20,000 jobs in

EdinburghSupport inward investment

Support business

Help unemployed

people into work or learning

Our call to action“The analysis and consultation we have undertaken in developing this economic strategy has confirmed our conviction that Edinburgh can indeed build a strong and sustainable future. But we can only do this by working closely with our business and public sector partners in the city and wider region, and beyond. We believe that this is best way to ensure that Edinburgh’s people remain at the heart of the city’s economic success.

Please contact us to discuss how we can work together to create a more successful and prosperous city and achieve our vision for a confident, creative and inspiring capital.”

Councillor Tom BuchananConvener of the Economic Development Committee, The City of Edinburgh Council

Contact us on:Email: economicstrategy@edinburgh.gov.ukWebsite: www.edinburgh.gov.uk/economicstrategyTelephone: 0131 529 4849

Ourcalltoaction–page47

You can get this document on tape, in Braille, large print and various computer formats if you ask us. Please contact

Interpretation and Translation Service (ITS) on 0131 242 8181 and quote reference number 12-0471. ITS can also give

information on community language translations.

Designed by the City of Edinburgh Council 12.028/IF/SfC/August 2012