FINAL REPORT OF THE ESSEX ECONOMIC COMMISSION … · (mainly North-South links) and to the coastal regions. Improving the rail network for freight and passengers can play a vital

FINAL REPORT OF THE ESSEX ECONOMIC COMMISSION

ENTERPRISING ESSEX:MEETING THE CHALLENGE

March 2018

Essex Economic Commission: Role and membership 2

Chairman’s Foreword 3

Recommendations 4

Sections

1. Exploiting the potential of the Greater Essex economy 6

2. Enabling business growth 7

Deepening the business base 7

Addressing the shortage of commercial workspace 8

Exploiting growth and employment opportunities in key sectors 10

3. Addressing the skills challenge 12

4. Improving connectivity 14

Upgrading transport infrastructure 14

Extending the reach of superfast broadband 16

Dealing with challenges in coastal districts 16

Appendix

1. Main sources of information 20

CONTENTS

Contents 1

Role of Commission

The Essex Economic Commission is an advisory body set up in May 2016 to help shape the economy of one of the UK’s most exciting growth areas. Local authorities across the Greater Essex area (covering Southend-on-Sea, Thurrock and the County of Essex) have an ambition to deliver inclusive economic growth.

Dr Andrew Sentance CBE was invited by local authority leaders to lead the independent Economic Commission that would provide advice and analysis over a period of two years. The Commission has engaged with key business groups and partnerships (e.g. Essex Partners, the Essex Business Board, Opportunity South Essex) and education partners (i.e. Anglia Ruskin University, the University of Essex and South Essex College of Further and Higher Education). Members of the Commission have been participating in a personal capacity.

Since its inaugural report Enterprising Essex: Opportunities and Challenges, the Commission has gone on to produce a series of reports on key challenges highlighted in the initial publication.

The titles of these reports are:

- Tackling skills requirements in Greater Essex

- Addressing the shortage of commercial workspace in Greater Essex

- Dealing with challenges of coastal communities in Greater Essex

The Commission’s reports are posted on its website www.essexgrowth.co.uk.

This report Enterprising Essex: Meeting the Challenge draws on the findings of these published reports. It seeks to confront the main challenges and to map out a way forward.

Members of the Commission

Chair Position Representation

Andrew Sentance Senior Economic Adviser, PwC Economist

Members

*Kate Barker Non-Executive Director, Taylor Wimpey plc, amongst other roles Economist

*Andy Barratt Chair & Managing Director, Ford of Britain Business

Jason Falkingham Head of Business & Corporate Banking for Barclays in Essex Business

Jonathan HaskelProfessor of Economics & Academic Director, Imperial College Business School, Imperial College London

Academic

Angela O’DonoghuePrincipal/Chief Executive, South Essex College of Further & Higher Education

Academic

Gary Packham Pro Vice Chancellor & Dean, Business School, Anglia Ruskin University Academic

Eric Smith Professor of Economics, Essex University Academic

Guy Smith Vice President, National Farmers Union Business

*Peter Ward Commercial Director, Port of Tilbury London Ltd Business

Nick Wargent General Counsel & Company Secretary, e2v technologies plc Business

Duncan McKenzie Economics Consultant to Commission

ESSEX ECONOMIC COMMISSION

*Kate Barker and Andy Barratt were involved in the earlier work of the Commission but not in its later work including this final report. Peter Ward replaced Perry Glading as Forth Ports’ representative: Perry was involved in the earlier work of the Commission.

2 Essex Economic Commission

The economy of Greater Essex has many economic advantages and great potential. It is close to London, one of the leading cities in the world. It is home to nearly 2 million people (including the unitary authorities of Thurrock and Southend-on-Sea as well as the County of Essex).

Essex is well connected to Europe and the rest of the global economy through its airports and ports, and by its proximity to London. Two of the airports in the London airport system – Stansted and Southend - are located in Essex. It has major port facilities along the Thames estuary and on the east coast.

There are also well-established transport links along three major transport corridors: London-Harlow-Cambridge; London-Chelmsford-Colchester; and London-Thurrock-Basildon-Southend-on-Sea.

Essex also has a strong entrepreneurial culture – a large number of smaller businesses, which support employment, and have established a good track record for new business start-ups.

And yet the economy of Essex is underperforming relative to its potential. Economic growth has lagged behind other counties in the South-East and East Anglia. Productivity levels are below other counties in the South-East of England. We are punching below our weight in our contribution to the UK economy.

The Essex Economic Commission was established in 2016 to gather evidence and provide recommendations as to how this county/region might realise its full economic potential, providing a stronger engine of growth for the UK economy. The Commission brought together expertise from economists, business, finance, universities and colleges of further and higher education to provide a stronger analytical base for policy-makers and to make proposals for action.

This is our final report, though a number of Commission members plan to take a close interest in follow-up action. A number of earlier reports have set out more detailed analysis on the strengths and weaknesses of the Essex economy, as well as shedding light on specific issues – the availability of premises for expanding businesses, skills and education, and the challenges facing coastal areas.

The Commission sees the need for action in four main areas.

First, we need a much more “joined-up” approach to developing the Essex economy, which often operates in a disjointed and fragmented way, for understandable reasons. The institutions which are charged with boosting investment, employment and economic growth should be strengthened and given stronger support.

Second, we need to remove barriers to growth and improve the conditions which enable businesses across Essex to expand and prosper. In particular, ways should be found to ensure more commercial premises are made available to growing businesses across the county/region.

Third, concrete steps are needed to address the skills deficit, which appears linked to low productivity and growth. Essex is home to two excellent universities – University of Essex and Anglia Ruskin University. It also has a strong network of colleges of further and higher education, though this sector of the UK education system appears seriously under-resourced and strained, not just locally but nationally. Many of the issues facing skills and education development in Essex are national policy issues. But an Essex-wide strategy for skills and education development - including better co-ordination between national and local bodies, including the Local Enterprise Partnership - is badly needed.

Finally, transport and digital connectivity across Essex can and should be improved. There are well-developed plans for improving the existing transport corridors, but more emphasis needs to be put on the transport links between these corridors (mainly North-South links) and to the coastal regions. Improving the rail network for freight and passengers can play a vital role in relieving the pressure on roads. And improving broadband access is a key issue for supporting growth sectors and reinvigorating the more deprived coastal regions.

Essex is a very multi-faceted economy, with a number of substantial centres of activity across the county and a very diverse range of sectors contributing to economic growth. The ability of different local interests to work together to engage national policy-makers and support broader economic growth will be the key to its economic success.

Andrew Sentance CBEChair, Essex Economic Commission

CHAIRMAN’SFOREWORD

Chairman’s Foreword 3

In its first report Enterprising Essex: Opportunities and Challenges, launched early in 2017, the Essex Economic Commission highlighted the progress that was being made across the county but indicated that there was still much to do. It cited a number of key challenges, particularly for smaller businesses, around deficiencies of skills and a shortage of grow-on business premises. More widely the Commission noted the growing pressure on transport infrastructure, and concerns about disconnected coastal communities. Rising demand means that key sectors have the opportunity to sustain steady growth over the long term: these include logistics, social care, health, digital and creative services, and advanced manufacturing. But these sectors need sufficient numbers of people with the right skills to deliver goods and services that meet that demand.

This final report of the Commission Enterprising Essex: Meeting the Challenge draws on the findings of its in-depth reports on skills, commercial workspace and coastal districts to map out a way forward so that these key challenges can be addressed. Key recommendations are as follows:

Exploiting the potential of the Greater Essex economy

The multi-centred character of Essex means that economic development has crystallised into a number of corridors. Development in these corridors can support and complement county-wide strategic initiatives, but some coastal communities are encountering particular difficulties. Recommendations therefore need to take account of the three higher cross-cutting themes referenced above.

1. Promoting investment in Essex by building on locational advantages: Essex needs to capitalise on the opportunities offered in Essex by continuing to promote the benefits of locating business in Essex. These include: firstly, Essex proximity to London and to the London-Stansted-Cambridge corridor; secondly, access to UK and international markets; and thirdly, lower employment and property costs relative to rest of South East England.

2. Supporting development that is appropriate to the requirements of each corridor: A distinctive approach is required for the development of each corridor. Investment in improved connections between the corridors is important: while the primary focus would be in improving transport links, cross-county partnerships should also address skills, coastal and sectoral initiatives, as well as in alleviating deprivation.

3. Regenerating coastal communities: Coastal regeneration needs to address a range of challenges through a county or regional grouping such as the SELEP Coastal Communities Group or Essex Coastal Forum. Challenges facing some coastal communities include lower pay, poorer qualifications and skills, higher levels of deprivation and costs associated with a larger local population aged 65+. Developing seaside tourism forms part of coastal regeneration, with progress here also dependent on local strategies. An example of a broader local strategy for tourism is ‘Destination Southend-on-Sea’ and of a focused coastal heritage strategy is Tendring’s ‘Resorting to the Coast’.

4. Supporting coordination and development of public sector institutions: Effective operation of businesses in the Greater Essex economy can be hindered by fragmentation of public sector organisations and lack of a joined-up approach. A more cohesive approach is required across local authorities and other public sector institutions throughout Essex to ensure effective delivery of key policy areas, such as upskilling, sector development, infrastructure investment and expansion of workspace. It is also important to ensure that the business environment in which firms and other organisations operate is as seamless as possible across the local authorities in the county. It is important that Essex maximises its influence within the South East LEP, which has not been working to Essex’s full advantage.

RECOMMENDATIONS

4 Recommendations

5. Ensuring local economic information is available, up-to-date and accessible: A key theme of the Commission’s work programme has been the assembling of data on the local economy in Greater Essex; developing a profile of its constituent corridors and local authorities; as well as positioning the county in a national and regional context. This has contributed to an improved understanding of the issues in the county and it is therefore important that public sector organisations, particularly local authorities, compile and assemble data on the local economy, ensuring that it is available, up-to-date and accessible.

Enabling business growth

6. Expanding workspace: Build on a successful start-up record by implementing strategies that address the shortage of commercial workspace and facilitate business expansion. Mixed use development should be a priority to head off all developments being devoted only to residential. The public sector, particularly local authorities, should take account of workspace requirements in disposal of land and consider the funding options and other interventions that can be deployed.

7. Develop key sectors, capitalising on Sector Deals: The capacity to exploit growth and employment opportunities in key sectors hinges on meeting the challenges of enhancing skills, improving careers advice, expanding workspace and upgrading transport infrastructure. Essex also needs to capitalise on Sector Deals agreed or under discussion with Government.

Addressing the skills challenge

8. Effective engagement with government: Develop an effective engagement with government to deliver policies on skills development and careers advice that are closely aligned with local needs. A stronger local voice in funding should be accompanied by clearer accountability for delivery and outcomes.

9. Support employer-led approach: Continue to support the employer-led approach of Employment and Skills Board (ESB) in enhancing skills. The key priorities that need to be supported by appropriate funding include:

- Development of new models of training and apprenticeships for self-employed.

- Development of extra-curricular learning to introduce pre-16s to technical and vocational skills.

- Identify and promote clear pathways into technical and adult education.

- Set out clear priorities for action and investment in post-16 education.

- Enabling local businesses to navigate the skills system.

- Raising attainment at schools, particularly at A-Level.

- Enabling more young people to acquire the soft skills and right mind set for employment.

10. Increase the uptake and achievement of higher level technical skills for both young people and adults: This will be supported by colleges refocussing on Level 4/5 provision in both apprenticeships and more part time evening/weekend/online programmes for adults. New initiatives such as Institutes of Technology (IoTs) will also play a part in increasing the higher level skills offer in key priority areas such as logistics and transport; and advanced engineering and construction. Serious consideration should be given by Government to expressions of interest in IoTs in these sectors in Essex.

Improving connectivity

11. Extending superfast broadband: Superfast Essex need to deliver on its plans to reach 97% of premises by 2020 and to nearly everyone by 2021. Comprehensive coverage of superfast broadband is required by businesses and households alike. Coverage is weakest in inland rural areas of Essex, but there are weak spots in coastal areas as well.

12. Upgrading transport infrastructure: Key arterial road routes across the county, including the A13, A127 and A130 all require further upgrading. Sustained investment in rail infrastructure is vital to maximise opportunities from Essex close connectivity to London and to support the ongoing expansion of ports and logistics, particularly in South Essex. This investment is required to address the growing pressure being placed on transport infrastructure. While plans for the new Lower Thames Crossing are welcome, they need to be accompanied by associated improvements to make the most of new infrastructure.

13. Developing ports and logistics: The development of the Port of Tilbury and London Gateway is contributing to the revival of the local economy, particularly in Thurrock. Harwich has significant potential for growth in offshore energy, with 5% of UK energy now supplied by offshore wind.

14. Supporting offshore and other energy: Government needs to provide support and impetus to develop South East Centre for Offshore Renewable Engineering (CORE), which includes Harwich and Brightlingsea, one of only six such centres in England. Eventual approval of a new nuclear reactor at Bradwell would establish Essex as a key national provider of nuclear energy.

In addressing these challenges it is crucial that local authorities and other public services work together in close partnership with the business community in order to deliver policies and solutions that meet the needs of the local economy. Addressing the challenges identified in this report will enhance the attraction of Essex as a location for investment and business expansion.

The Commission has focused on the key challenges to be addressed, but it is important that all aspects of public policy are kept under review. Where public policy is not meeting the requirement of the local community it should be adapted and revised.

Growth of Greater Essex 5

1. Exploiting the potential of the Greater Essex economy

Greater Essex has an enterprising local economy that is being driven by the highest rate of start-ups in the UK, an improving skills base and a strong presence in a wide range of sectors. Being the eighth largest regional economy outside London is an indicator of Essex importance. The multi-centred character of Essex has created a diverse economy and means that economic development has crystallised into a number of corridors. Development in these corridors can support and complement county-wide strategic initiatives, but coastal regions in particular are encountering difficulties. Recommendations therefore need to take account of the following cross-cutting themes:

i. Promoting investment in Essex by building on locational advantages including:

- Proximity to London: Important for many businesses that refer to their premises in the county as their London office. The opening of Crossrail will enhance access to and across London.

- Proximity to London-Stansted-Cambridge corridor: Important for suppliers to that corridor as well as to business parks, such as Chesterford Research Park in Uttlesford, that link with the local biotech cluster.

- Cost advantages related to employment and property: Costs are lower in Essex than London, Cambridge or Oxford for sectors such as logistics and advanced manufacturing.

- Access to UK, European and international markets; Proximity to the three sea ports and two airports in Essex facilitates access to European and international markets for those moving goods into and out of the UK. Integration with the UK motorway network facilitates movement within the UK.

Invest Essex needs to capitalise on the opportunities offered in Essex, by continuing to promote the benefits of locating business here. The five years to mid-2017 saw 163 projects landed involving new investment by UK companies and a further 34 investments by companies whose ultimate ownership lay elsewhere in the world (Table 1).

Current uncertainty around the outcome of Brexit makes it more difficult to bring foreign companies to Essex and the UK generally. However in the longer term this needs to be a high priority for Invest Essex and other organisations seeking to attract businesses to locate here.

SECTIONS

Table 1Enquiries Landed by Invest Essex sector

March 2013 - June 2017

TotalSuccessfully

LandedOn-going

High-Technology 31 22 9

Business & Financial Services 60 50 10

Agri Food 3 2 1

Chemical 2 1 1

Construction 27 18 9

Consumer & Leisure 22 14 8

Creative Industries 21 16 5

Education 5 2 3

Energy & Environmental (inc. low carbon)

12 9 3

ICT 18 13 5

Life Science & Healthcare (inc. pharma)

22 16 6

Ports & Logistics 67 34 33

290 197 93

*Advanced manufacturing, aerospace, automotive, advanced engineering and R&D Source: Invest Essex

6 Report on Greater Essex Economy

ii. Supporting development that is appropriate to the requirements of each corridor: Each of the Greater Essex corridors is different in nature and requires a distinctive approach. The primary focus for this is improving transport links, but extends to building on existing partnerships in education and skills. Alleviation of deprivation, particularly in coastal districts, should be an outcome of these partnerships.

iii. Regenerating coastal districts: Coastal regeneration should be addressed through a county or regional grouping such as the SELEP Coastal Communities Group or Essex Coastal Forum that is commissioned to take forward coastal issues in partnership with a range of stakeholders. Challenges facing some coastal communities are highlighted by lower pay, poorer qualifications and skills, higher levels of deprivation and costs associated with a larger local population aged 65+. Developing seaside tourism forms part of coastal regeneration, with progress most likely to be based on a mix of broader strategies for tourism, such as ‘Destination Southend-on-Sea’ and other locally focused initiatives, such as Tendring’s ‘Resorting to the Coast’. More detail on addressing coastal issues is set out In Section 4.

iv. Supporting coordination and development of public sector institutions: Effective operation of businesses in the Greater Essex economy can be hindered by fragmentation of public sector organisations and lack of a joined-up approach. A more cohesive approach is required across local authorities and other public sector institutions throughout Essex to ensure effective delivery of key policy areas, such as upskilling, sector development, infrastructure investment and expansion of workspace. It is also important to ensure that the business environment in which firms and other organisations operate is as seamless as possible across the local authorities in the county. It is important that Essex maximises its influence within the South East LEP, which has not been working to Essex’s full advantage.

v. Ensuring local economic information is available, up-to-date and accessible: A key theme of the Commission’s work programme has been the assembling of data on the local economy in Greater Essex; developing a profile of its constituent corridors and local authorities; as well as positioning the county in a national and regional context. This has contributed to an improved understanding of the issues in the county and it is therefore important that public sector organisations, particularly local authorities, play a role in compiling and bringing together data on the local economy, and ensuring that it is available, up-to-date and accessible.

2. Enabling business growth

i. Deepening the business base Essex is an enterprising economy which is reflected in a strong start-up rate. The rate of start-ups in Greater Essex is much higher than the UK average, with an average of 254 start-ups for each £1bn of GVA between 2010 and 2015: higher than any other counties in the region and compared with 190 in the UK as a whole (Chart 1). Moreover, the survival rate is in line with the UK’s so a high start-up rate hasn’t been followed by a lower survival rate.

Many smaller businesses face significant constraints to further growth, including low skills and difficulties in finding new premises for those enterprises looking to expand. One consequence of constraints to business growth is that the size distribution of businesses in Greater Essex is skewed towards smaller businesses when compared with the typical size distribution for the UK. This is due in part to a higher start-up rate, but structural factors such as lower skills and shortage of suitable premises also constrain growth.

0 40 80 120 160 200 240 280

UK

Cambridges.

Norfolk

Sussex

Suffolk

Surrey

Herts.

Kent

G. Essex

Chart 1Start-ups in Essex

Number of start-ups between 2010 and 2015 as % share of £1bn GVA in 2014


Table 2Size distribution of local businesses

% share of local units in each employment size band, 2016

Employment size band

0-4 5-9 10-19 20-49 50-99 100-249 250+ Total

Cambridgeshire 70.9 13.2 7.8 4.9 1.72 1.11 0.40 100

Oxfordshire 70.8 13.0 8.0 5.2 1.67 0.99 0.39 100

Hertfordshire 75.8 11.1 6.3 4.2 1.44 0.80 0.36 100

Suffolk 68.8 14.7 8.4 5.3 1.67 0.87 0.32 100

Norfolk 68.0 14.7 8.7 5.7 1.74 0.90 0.29 100

Surrey 76.0 11.3 6.4 4.0 1.35 0.74 0.30 100

Sussex 72.4 13.0 7.5 4.7 1.50 0.74 0.28 100

G. Essex 73.4 12.4 7.1 4.5 1.52 0.76 0.28 100

Kent 73.0 12.6 7.3 4.6 1.51 0.75 0.28 100

UK 70.8 13.2 7.8 5.1 1.72 0.92 0.40 100

Source: ONS UK Business: Activity, Size and Location

Local units of larger businesses with over 250 employees account for 0.28% of all local units in Greater Essex in 2016 (Table 2). This is less than Cambridgeshire, Oxfordshire and Hertfordshire, and the UK average of 0.40%, although in line with Norfolk, Surrey, Sussex and Kent.

Fostering growth of businesses so that they transition from medium-sized companies to larger companies with more than 250 people will help to deepen and strengthen the business based in Essex. Development of a wider range of commercial workspace forms part of the solution.

ii. Addressing the shortage of commercial workspace

In Greater Essex the decline in availability of office and industrial space has been much steeper and more pronounced than for the UK as a whole. Industrial space availability has dropped from over 5 m sq.ft in 2012 to around 2.0 to 2.2m sq.ft. in 2016 and 2017 (Chart 2), while the requirement for industrial space remained high at 8m sq.ft. The quality of supply has improved with Grade A accounting for 45% of available industrial space. Availability of office space has declined steadily from 1.65m sq.ft. in 2012 to 0.62m sq.ft. in Q3 2017 (Chart 3). Quality office space remains in short supply. Prime rents for office and industrial space in Essex tend to be lower than many other centres in the south east, providing an opportunity to attract more business to the county.

With availability of both office and industrial space down to less than 5% of total stock, indications of the shortage and lack of quality of space are illustrated by:

- The limited supply of Grade A space is largely located in Chelmsford, and over 80% of office units are second hand Grade B accommodation.

- While 37 research and development (R&D) units were taken up between 2013 and 2016, only nine are currently available all in the Colchester area.

- Critical shortage of industrial space, with the exception of Thurrock where there are a larger number of sites and potential for sizeable further developments at London Gateway Port.

Challenges and potential constraints: Opportunities to develop the market for new workspace face a number of challenges, including:

- Competition from other types of use, such as housing and retail, where higher and more secure returns for the developer can be secured over the long term.

- A decline in lending to construction, including commercial premises, evident in recent years.

- Insufficient land allocated to commercial workspace.

- Land values that can be too high to justify construction of commercial workspace so housing may be the only viable development.


Take up of industrial space

Industrial space availability (end-year)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Q1-Q3 2017*20162015201420132012

*2017 includes availability at end Q3 and take up for the first nine months, with an estimate for full year take up Source: Glenny, Essex Economic Commission estimates

Take up of office space

Office space availability (end-year)

0

250

500

750

1000

1250

1500

1750

Q1-Q3 2017*20162015201420132012

Chart 2Industrial space in Essex: availability and take-up

Chart 3Office space in Essex: availability and take-up

*2017 includes availability at end Q3 and take up for the first three quarters, with estimate for full year take up Source: Glenny, Essex Economic Commission estimates

For grow-on space there may be additional challenges:

- Higher construction cost, based on requirement for multiple units.

- Mismatch of interests of occupier and developer: grow-on businesses may want short-term, flexible renting arrangements, while developers prefer larger tenants with long leases.

- Investors, such as pension funds, are looking for long-term investments with stable secure returns.

- Rental values may be too low in some socially deprived areas to justify investment in a grow-on project.

Future strategy and options for development: The Commission has put forward a range of strategies and options for review and consideration in its working paper on ‘Addressing the scarcity of commercial workspace in Greater Essex’:

Types of development: New developments will need to maximise the benefits from the limited supply of available land, with a focus on creating new jobs as well as on new housing:

- Mixed use residential and commercial development: Mixed use should be considered given the pressure on land availability.

- High quality regional offices: The option of developing high quality office space with a sector focus in the main urban centres of Greater Essex should be taken into account. This would include flexible workspace for which there is growing demand from start-ups and small businesses.

Public sector role:

- Disposal of land: Allocation of commercial workspace to be a key consideration in disposal of land owned by public sector.

- Delivery of Local Plans: Strengthening district councils’ role in the monitoring and delivery of sites allocated to commercial workspace in Local Plans, so that such sites aren’t allocated solely to residential by default.

- Other interventions: Interventions should be considered by the public sector in the development of grow-on space. These include infrastructure improvements; planning frameworks for new communities; and allocating sites for specific use. Interventions with pension funds and agents may help to facilitate growing supply of commercial workspace.

- Funding options: Options include applying direct and indirect forms of public sector funding such as rent guarantees and empty space rates relief; interest-free loans; gifting or underwriting land for new space; and direct funding of new sites to kick start development.

New technology platform:

- Developing modern technology platforms for the commercial real estate market.

Thousand square feet Thousand square feet


iii. Exploiting growth and employment opportunities in key sectors

Greater Essex is the eighth largest local economy outside London and the fourth biggest of counties in the South East and East Anglia, based on original county boundaries (Table 3). Economic growth across Greater Essex picked up to an average 1.7% a year between 2010-2015, following a period of zero growth between 2005 and 2010. This reflected an upturn in the wider UK economy, following the recession in 2008 and 2009. Within the county it also represented a marked turnaround for Thurrock where growth recovered to 1.9% a year on average between 2010 and 2015, from an average drop of 1.9% a year in the previous five-year period.

Opportunities exist in Essex for people to deploy skills in jobs across a wide range of sectors. The Employment and Skills Board in Essex has identified seven priority sectors with strong potential to drive growth, and where a range of openings exist (Table 4). These include:

Advanced manufacturing: Manufacturing accounts for 10% of GVA. Key opportunities for growth in higher value or advanced manufacturing activities exist in:

- Basildon and Rochford, with the presence of major employers in automotives such as Ford.

- Harlow with the Enterprise Zone.

- Uttlesford, associated with London Stansted Airport and Chesterford Science Park.

- Braintree, Chelmsford and Brentwood, which offer other opportunities.

Key drivers shaping the performance of the sector involve taking advantage of enabling technologies and therefore translating technological innovation in such technologies into growth. An outward view to maximise export opportunities is key as well as adapting to low carbon technologies.

Table 3Gross Value Added

£bnaverage annual real % change

2015 2005-10 2010-15

Hampshire 50.2 0.8 1.2

Surrey 39.1 0.9 2.4

Sussex 38.2 0.8 1.9

G. Essex 38.1 0.0 1.7

Kent 37.8 -0.1 1.8

Berkshire 35.8 -0.8 2.2

Hertfordshire 33.9 -0.7 1.8

Bucks 26.1 1.3 2.7

Oxfordshire 21.9 0.4 3.4

Cambridgeshire 18.8 1.4 3.2

Suffolk 16.9 0.4 1.6

Norfolk 18.5 -0.6 1.8

Essex Haven Gateway 9.2 -0.1 1.4

Heart of Essex 7.8 0.5 1.4

West Essex 7.5 0.5 2.4

Essex Thames Gateway 7.2 -0.3 2.1

Thurrock 3.3 -1.9 1.9

Southend 3.1 0.6 0.2

UK 1666.3 0.4 1.8

Source: ONS Gross Value added income approach

Table 4Priority sectors in Essex

2015

EmploymentThousands

Job vacanciesThousands

% of jobs advertised

with salaries over £30,000

Construction 65 10 58

Manufactg. & Engineerg. 50 13 58

Health 47 12 54

Care 45 6 34

Logistics 37 7 17

IT, Digital & Creative 30 17 67

Finance & Insurance 26 12 42

Source: Essex Employment and Skills Board Evidence Base Spring 2016

Table 5People in 65+ age range

% share aged 65+ in each local authority

2015

Tendring 29.4 Uttlesford 19.0

Castle Point 24.7 Southend 19.0

Maldon 23.8 Chelmsford 18.8

Rochford 22.7 Colchester 17.2

Brentwood 20.2 Basildon 17.1

Epping Forest 19.5 Harlow 15.3

Braintree 19.1 Thurrock 13.8

Greater Essex 19.5

Essex CC 20.2

Source: ONS population estimates


Life sciences, health and care: Key opportunities are offered by:

- Uttlesford with the development of Chesterford Research Park.

- Anglia Ruskin University’s plans to create Med Tech facilities at Harlow and Southend in addition to the campus in Chelmsford.

- University of Essex development of healthcare in Colchester in care and assisted living.

- Tendring where it is a key priority given the higher share of people in the older age group.

Life sciences, health and care is a key priority for the government, with demographic trends pointing to a growing share of people in older age groups. As a result there will be more people requiring care, particularly in supported living. In Greater Essex the share of people aged 65+ is forecast to rise from 19.5% in 2015 to 25.8% in 2035. Most districts and unitary authorities will experience some increase in this age bracket but it is likely to be greatest in districts where the 65+ share is already high, such as Tendring 29.4%, Castle Point 24.7% and Maldon 23.8% (Table 5).

Technological advancements enable more independence and less direct support. As a result, the healthcare sector offers significant potential for innovation and the development and implementation of new technologies. Coastal districts in Essex need to capitalise on this opportunity.

Digital and creative services: The four most important centres in Greater Essex included in over 200 centres listed in the ONS Geography of Creativity data are Chelmsford, Southend, Colchester and Clacton. Other locations with strengths in digital and creative industries including Harlow, Epping Forest, Brentwood and Basildon. Advances in technologies are generating cross-over between IT and creative industries and therefore more job openings.

Thurrock also aspires to develop a digital cluster: the council’s proposed scheme of building a new town centre in Purfleet is to have at its heart a film, television and media village. This would be the largest facility of its kind in Europe, and the first purpose-built studio complex in the UK in 50 years. More widely, access to Tech City UK, near the eastern fringe of the City of London, offers potential benefits to firms in Greater Essex looking for access to Tech City UK but not necessarily immediate proximity.

Finance and business services: Brentwood, Basildon and Chelmsford are important in professional and financial services. There is also important activity in Braintree, Witham and Southend. Future opportunities could arise from proximity to London, as well as urban areas that offer potential as regional centres.

Logistics: Expertise in logistics is linked with presence of major sea ports and airports, with particular opportunities in:

- Thurrock where logistics is a major sector already and is set to expand substantially with development of logistics parks at Tilbury Port and London Gateway.

- Tendring which includes the East Coast ports.

- Uttlesford with links to London Stansted Airport.

- Southend with the development of London Southend Airport.

Low carbon and renewables: Opportunities are centred around:

- Tendring and Colchester with Harwich International Port already servicing offshore wind.

- Thurrock with the development of Thames Enterprise Park, a centre for energy and environmental technologies.

- Other smaller sector strengths in Uttlesford, Brentwood, Basildon and Rochford.

Low carbon and renewables are at the heart of government policy to reduce emissions, with the further development of technologies involving innovation and high value employment.

Other sectors also regarded as important as population grows include wholesale and retail services, education, construction, tourism and food production.

It is important that Essex capitalises on Sector Deals between Government and industry that have been agreed or are in advanced discussion. Most sectors that are the subject of these Sector Deals feature prominently in Essex priority sectors, with agreements reached for life sciences, construction, artificial intelligence and automotive industries. Sectors in advanced discussion that are also important for Essex including creative industries, nuclear and industrial digitisation.

Many of the policy priorities for exploiting growth and employment opportunities involve:

- Improving perceptions of sectors including manufacturing and logistics as it is crucial that employers in these sectors can attract and recruit people of sufficient calibre, who have an objective understanding of the sector and potential employment opportunities.

- Continuing to develop the skills base so that people are equipped with technical and professional qualifications that meet the current and future demands of employers.

- Strengthen education and careers advice; development of extra-curricular learning; and other initiatives set out in section 3 on addressing the skills challenge.


3. Addressing the skills challenge

Symptoms of skills challenge: While there is great potential, Essex also faces a skills challenge, evident not only in recruiting sufficient people with higher level skills, but also in skills deficiencies amongst some existing employees. Symptoms of the skills challenge in Essex are highlighted by a lower share of people of core working age with at least Level 4 qualification. This has been rising but at 29%, is well below the UK average of 37%. Other symptoms are slow productivity growth and a high start-up rate which hasn’t yet fed through into a faster rate of growth. Inadequate soft skills are also a drawback, especially for some young people seeking employment. Local authorities with lower than average levels of qualifications tend to have job vacancies that offer lower incomes (Table 6). Job vacancies are concentrated in a few local authority districts. More details on the Commission’s research can be found in its report ‘Tackling skills requirements in Greater Essex’.

Developing soft skills and the right mind set: For young people, development and acquisition of soft skills is crucial to employability. Soft skills at this stage may focus on transitioning to work, including essential requirements such as punctuality at work and appropriate dress. Experience of part time work in late teens can be a significant advantage in this context. A Reed survey of 2,300 young people aged 18-25, found that 70% of those who had a part time job at school or college were in employment at the time of the study, compared with 42% for those who hadn’t had a part-time job. Typically such jobs were in shops or in a bar or restaurant.

Other research has also flagged up the importance of the right mind set to employers. The mind set encompasses not only the soft skills such as communication and presentation, which are crucial at interview, but also evidence of drive, resilience and determination to succeed. Research amongst 800 employers by James Reed and Paul Stoltz revealed a gulf between what young people consider important and what employers are looking for. The survey showed that 96% of employers put the desired mind set of applicants ahead of a complete skill set compared with only 40% of young people (Chart 4). This means that 60% of young people thought that having a complete skill set was more important than the right mind set but only 4% of employers thought likewise.

Qualifications across Greater Essex: The broad range of provision includes:

Higher education (HE): Graduates from Essex University, Anglia Ruskin University and Writtle University College, are a source of high level skills for local and national labour markets.

Further education and apprenticeships: A vibrant further education (FE) sector includes 40,000 students enrolled at FE colleges and a further 40,000 working towards FE qualifications with other providers. There were 14,480 apprenticeship starts in 2015/16, with take up highest in district and unitary councils where A-Level entrants tend to be at their lowest (Chart 5). The number of higher level apprenticeships has grown from 70 to 790 in the past four years.

0 20 40 60 80 100

% share of jobapplicants who

think employers would prefer to

recruit applicantsthat have:

% share of employers whose

preference is to recruit job

applicants with:

Complete skillset but lacking desired mindset

Desired mindset but lacking complete skillset

96% 4%

40% 60%

Source: James Reed, Paul Stoltz

Table 6Higher level qualifications and vacancies 2015

Ranking share of people with Level 4 qualification

Ranking weighted average salaries for job vacancies

% share of authority £

Uttlesford 38.2 Brentwood 35,100

Maldon 35.4 Chelmsford 33,141

Epping Forest 35.0 Basildon 30,981

Chelmsford 33.7 Harlow 30,122

Brentwood 32.5 Southend 29,774

Colchester 32.5 Colchester 29,602

Basildon 28.9 Epping Forest 28,530

Braintree 27.5 Uttlesford 26,518

Southend 26.0 Thurrock 26,311

Rochford 25.1 Rochford 25,648

Thurrock 24.3 Tendring 25,578

Harlow 20.9 Maldon 25,335

Tendring 19.4 Braintree 24,281

Castle Point 19.0 Castle Point 23,103

Source: Essex Employment and Skills Board, NOMIS

Chart 4Relative importance to employers of mindset and skillsetof job applicants


A-Level and GCSE attainment: 22 core state-funded schools (which do not include grammar schools) in Greater Essex achieved at least the England average grade in 2015/16, while 36 such schools were below average. This indicates that there is room for improvement in A-Level attainment. At GCSE or Key Stage 4 in 2015/16, 52 schools in Greater Essex gained an above-average Attainment 8 score, and 42 schools a below-average score.

Developing Greater Essex strategies for developing skills:

The employer-led Employment and Skills Board (ESB) is core to the developing skills strategy in Essex. The ESB is at the forefront of identifying skills requirements, frequently driven by technological change. The ESB’s impact and influence is demonstrated in building up an evidence base, establishing a network of over 150 businesses, holding job fairs to facilitate local recruitment, and engagement with young people about scope of career opportunities.

Long term vision for skills in Greater Essex economy: Key aspects should include:

- Employer-led system with employers at the centre of influencing training and skills.

- Sufficient supply of people with higher level qualifications that can be recruited by employers.

- Retention and up skilling of those already in employment.

- Life time learning with individuals having opportunities to develop competences and skills.

- Awareness of career opportunities amongst young people and mature students.

- Government policy that is aligned with and supports local long-term strategic objectives.

- Making Greater Essex a destination of choice for local, national and international businesses.

The Commission is proposing measures that would enhance delivery of skills in Greater Essex:

- Raise attainment at GCSEs and A Levels: Reviewing how attainment at GCSEs and A Levels at schools can be improved and in which areas. Average A Level results at core state-funded schools across many parts of Essex are below average.

- Strengthen education and careers advice: Advice and guidance on education and career options post-16 should be strengthened with greater coordination across agencies involved. This would include schools establishing stronger links with the FE sector so that 16 year olds can make more informed choices. The Careers and Enterprise Company proposed by the Government needs to bring clarity and coordination, otherwise it will risk adding to the current complexity of provision in education and careers advice.

- Develop extra-curricular learning to introduce pre-16s to technical and vocational education: Providing funding so that more school students and young people can be involved, for example, in extra-curricular learning at the weekend. This would enable students to find out more about sectors, such as logistics, to improve their understanding of those sectors and spark motivation that could lead to a career choice.

- New models for training and apprenticeships: This should include provision for people entering professions where self-employment is the only viable career option and therefore formal in-work training options are limited.

- Development of clear pathways into technical/professional education as clear alternatives to ‘A’ Levels: Students need to have a better understanding of the range of technical and professional routes that are available post-16, in order to make an informed choice.

- Set out clear priorities for action and investment in post-16 education: Essex needs to agree clear priorities on how it believes the skills agenda can best be delivered, including priorities for 16-19 year olds, for apprenticeships and for adult education. This will help to ensure that both local and national sources of funding can be channelled into areas which are most in need of resources.

- Review Essex approach to engagement with government: Engagement with government on skills has had limited success and needs to be improved to ensure that Essex is best positioned to develop a local agenda that suits its requirements and makes the most of public funding.

Chart 5 Apprenticeship starts and A Level entrants

0 200 400 600 800 1000 1200 1400 1600

Brentwood

Uttlesford

Maldon

Rochford

Castle Point

Harlow

Epping Forest

Chelmsford

Braintree

Thurrock

Southend

Colchester

Tendring

Basildon

A-Level entrants

Apprenticeship starts

Source: Department for Education, Skills Funding Agency

Number of apprentices and students, 2015/16


Taking forward the UK Government’s Strategy for skills: The Commission has also highlighted ways in which the Government’s response to the skills element of its Green paper on industrial strategy can support development of skills in Greater Essex. Key initiatives relate to:

- Supporting an employer-led approach to enhancing skills: Employers to have a key role identifying sector-specific skills shortages; influencing technical education routes provided by colleges of further and higher education; and promoting awareness of career opportunities.

- Increasing accountability and local voice in funding: A stronger local voice in funding decisions, along with clearer accountability for delivery and outcomes, is required to enable local employment and skills boards to deliver new skills based on local evidence.

- Expanding and enhancing provision of higher level technical education in Greater Essex: Greater Essex needs to be able to scale up capability of FE colleges to deliver more professional and technical courses at the higher levels of 4 & 5 so that more students can gain qualifications that are required. These should be promoted through apprenticeships and other part time evening/weekend/online programmes for adults. New initiatives such as Institutes of Technology (IoTs) can also play a part in increasing the higher level skills offer in key priority areas in Essex such as logistics and transport; and advanced engineering and construction. The IoT for transport and logistics is being proposed by South Essex College of Further and Higher Education in partnership with DP World, Port of Tilbury and Stobart Group.

- Recruitment and retention of qualified teachers in technical education: A larger number of teachers and lecturers of sufficient calibre need to be recruited and suitably rewarded to deliver qualifications that address skills shortages in key sectors. The Government needs to provide funding that enables the FE sector to offer competitive salaries if they are going to be able to recruit experienced professionals who have the skills to teach technical qualifications.

- Better information for students on education and career choices: Government needs to ensure that students in school, sixth form college, FE or HE are properly informed about the range of qualifications and career options available locally. Closer involvement of the FE sector in schools is key.

- Ensuring coherence in government delivery of skills: In contrast with the confusion and short-termism that characterises some current programmes.

- Enabling local businesses to navigate the skills system: Greater coherence in the national skills system would make it easier for smaller businesses to navigate and access the skills system locally.

4. Improving connectivity

i. Upgrading transport infrastructure

Plans to develop and upgrade road and rail routes are essential to improving the attractiveness of Essex as a business location. Both national and local projects have a role to play, which means that many of the 700+ larger projects in the National Infrastructure Pipeline are of benefit to Greater Essex. This includes projects such as the upgrade to the A14 in Cambridgeshire which are outside Essex but are crucial to building connectivity. Road, rail, air and sea transport meet differing requirements but all play a crucial role in the Greater Essex economy.

Road and rail: Transport by road and rail is vital for commuting to work; local movement of freight for retail and other commercial purposes; and for freight in transit to and from elsewhere in the UK. The growth corridors in the local economy have major arterial routes, notably:

- M11 and West Anglia mainline, linking West Essex and Stansted with London and important to the extended London-Cambridge corridor.

- A12 and East Anglia mainline, connecting Heart of Essex and Essex Haven Gateway, particularly Chelmsford and Colchester, to London.

- A127, A13, and the two Southend to London rail routes connecting South Essex to London.

- A120, linking M11 and Stansted airport from the East.

These routes are under increasing pressure, with capacity constraints resulting in growing congestion. Current plans for development of road routes are set out in Table 10 on page 19. The plans include upgrading of the key corridor routes as well as other road developments taking place further afield such as the A14. Essex will also now benefit from the decision on a route for the Lower Thames Crossing in April 2017, with construction of the crossing expected to start in 2020. The strategy driving road investment puts a strong priority on improving connections between town and cities and well as improving the efficiency of movement locally around towns.

Sustained investment in rail infrastructure is also vital to maximise opportunities from Essex’s close connectivity with London and to support the ongoing expansion of ports and logistics, particularly in South Essex, where both London Gateway and Port of Tilbury are growing.


Table 7Air passenger and freight traffic

2016 Passengers Freight

Thousand

millions % share tonnes % share

London Heathrow 75.7 28.2 1541.0 64.4

London Gatwick 43.1 16.1 79.6 3.3

Manchester 25.6 9.5 109.6 4.6

London Stansted 24.3 9.1 223.2 9.3

London Luton 14.6 5.5 25.4 1.1

Edinburgh 12.3 4.6 20.4 0.9

Birmingham 11.6 4.3 30.0 1.3

Glasgow 9.3 3.5 12.9 0.5

Bristol 7.6 2.8 - -

Belfast Int. 5.1 1.9 7.6 0.3

Newcastle 4.8 1.8 4.6 0.2

Liverpool 4.8 1.8 0.3 0.0

East Midlands Intl. 4.7 1.7 300.1 12.5

London City 4.5 1.7 0.1 0.0

London Southend 0.9 0.3 - -

Other airports 19.3 7.2 36.6 1.5

Total 268.4 100.0 2391 100.0

Source: Civil Aviation Authority

0

1000

2000

3000

4000

5000

6000

7000

2016201520142013201220112010

Harwich

London Gateway

Port of Londoninc. Tilbury

Chart 6Freight exports from Greater Essex sea ports

Sea ports: Ports and sea transport are vital to international trade and movement of freight. HMRC statistics, which only cover non-EU trade, indicate total exports of £7bn, 4% of the UK total by value, from London Gateway, Port of London including Tilbury, and Harwich. Essex proximity to the European continent means that a larger proportion of port traffic is directed to the EU than in other parts of the UK. Indeed port traffic by volume indicates that Port of London and Harwich account for around 10% of total UK trade by tonnage. Value of freight exports from the ports is shown in Chart 6. Ports in Greater Essex are looking to develop and to expand capacity.

Port of Tilbury, part of the Port of London and operated by Forth Ports, is a diverse port handling a range of cargoes. Tilbury has 34 operational berths and is the UK’s third largest container terminal, handling over half a million containers per year. Tilbury 2 involves the establishment of a new port terminal and associated facilities on land that previously formed part of Tilbury power station. A new 70 acre facility, London Distribution Park, is under construction, adjacent to the port which will make Tilbury a key logistics and distribution hub.

London Gateway is a container port and logistics park, operated by DP World. The logistics park is the largest in Europe. Three berths are currently in operation with two further berths planned. Five warehouses so far have been built on the logistics park, with the potential to employ 12,000 people directly and a further 20,000 indirectly.

Harwich International Port is a multi-purpose freight and passenger port. With 4.6m tonnes of freight moved in 2016 it accounts for 1% of total UK seaborne freight. It has considerable potential to support the offshore energy sector, as set out on page 18.

Airports: Air transport caters for short to medium haul business travel and tourism, as well as high value air freight. London Stansted and London Southend are both key to air traffic from Essex and the South East.

London Stansted is the fourth largest airport with 24.3 million passengers in 2016, and the third largest for air freight with 223,000 tonnes in 2016 (Table 7); these totals each represented 9% of the UK market for air passengers and for air freight in 2016. Stansted’s planning cap allows for growth in passengers to reach 35 million a year, although its existing runway has the ability to serve around 44 million passengers a year.

London Southend is an emerging airport which handled 900,000 passengers in 2016. It has received £130m investment since its opening in 2008. The new Airport Business Park will create one million square feet of office space and potential for 6,000 jobs.

£m, value of UK freight exports to countries outside the UK*

HMRC trade statistics *Statistics for EU countries not available


Table 8Superfast broadband availability

% of premises, 2017

Harlow 96.3

Southend 95.6

Castle Point 93.9

Basildon 93.3

Thurrock 92.8

Colchester 91.9

Epping Forest 89.6

Rochford 88.2

Tendring 87.1

Brentwood 84.3

Chelmsford 84.0

Braintree 83.2

Maldon 79.8

Uttlesford 75.5

Essex County 89.0

UK 94

Source: Broadband Delivery UK

Essex coastal districts

Essex non-coastal

districts

UK exc. London

10

13

16

19

22

25

2015201220092006200320001997

UK inc. London

*Source: ONS

Chart 7Nominal GVA per head

ii. Extending the reach of superfast broadband

Coverage of superfast broadband has improved steadily in recent years. Latest detailed dataset in 2017 showed 89% coverage for Greater Essex to be behind the UK figure of 94% (Table 8). The four coastal districts in South Essex have some of the best coverage in the county, mostly in excess of 90% coverage. Inland districts Uttlesford and Braintree, with a larger widespread rural population, have lower availability at 76% and 83% respectively. Coastal districts in the eastern part of Essex, Tendring and Maldon, with coverage of 87% and 80% respectively, also have less coverage.

While broadband coverage is steadily improving, further progress is required: SuperfastEssex, part of the Superfast Britain programme, aims to improve broadband coverage so that by 2020 97% of the county has access to fibre broadband, with the ambition ‘to reach nearly everyone by the end of 2021’. The programme is also seeking to ensure that a minimum of 2mb/s download speed is available across the county. Despite sustained progress in the installation of superfast broadband, significant blank areas remain.

Superfast Essex therefore needs to deliver on its plans to reach 97% of premises by 2020 and nearly everyone by 2021. Comprehensive coverage is required by businesses, so that when, for example, a business expands and moves to a larger more suitable location, it needs to be assured that the broadband coverage and speed will be sufficient in its new premises.

iii. Dealing with challenges in coastal districts

The five districts and two unitary authorities of Greater Essex that front the coast and Thames estuary face a range of challenges. Independent research highlights particularly problems facing places such as Clacton, Harwich and Jaywick, all in Tendring, although other places in Essex, including other towns in Tendring are faring better. The nature of the challenge emerges from findings set out in the Commission’s report ‘Dealing with challenges of coastal communities in Greater Essex’, although the scale of the challenge varies between the authorities. Out of a total of 14 districts and unitary authorities in Greater Essex, many of the seven coastal districts do not score well on the following criteria:

- Economic growth: growth has been slower in coastal districts than non-coastal districts over the past 20 years (Chart 7).

- Economic inactivity and unemployment: four of the six authorities with highest economic labour market inactivity are in coastal districts.

- Pay: five out of the seven authorities where gross pay is lowest are coastal.

- Qualifications: five of the six authorities with lowest share to reach Level 4 are coastal.

- A-Levels: in core state-funded schools only four out 25 schools in coastal districts attained results that were at least in line with the England average.

- Share of population 65+: four authorities with the highest share of residents aged 65+ are coastal.

£000s, gross value added per head


- Commuting: the four authorities with the lowest net inflow of commuters are coastal.

- Deprivation: five of the six authorities with the largest share of local areas in the two most deprived deciles are coastal.

Positive findings for coastal districts are fewer:

- Tourism: three coastal districts record the largest number of visits (Table 9).

- Apprenticeship starts: two of the three authorities with highest apprenticeship starts are coastal.

- Start-ups: these are higher across Greater Essex, including coastal districts, than the UK average.

Commission’s policy agenda for coastal districts includes addressing generic issues related to skills, workspace and superfast broadband. Policies that have a specific coastal dimension include:

Coastal regeneration: Regenerating coastal communities involves a broad mix of initiatives, often small scale. For tourism this should include improving the offer to visitors covering culture, special events, retail and local accommodation. Investment in good transport links with nearby urban centres and the region generally is vital to improved connectivity. Upgrading of skills is also key given the shortfall in many coastal districts and this will be crucial to underpinning expansion of some sectors such as logistics and care. Individual communities may also look to target particular growth sectors. Expanding availability of suitable business premises is required to facilitate expansion of local businesses. Ensuring access to superfast broadband is important for businesses and residents. Initiatives need to connect with vulnerable households and address problems associated with deprivation.

The Essex Coastal Forum was established in 2011 in response to the development of the Essex and South Suffolk Shoreline Management Plan, with a remit to ensure the incorporation of that Plan into a wider coastal agenda. Both the Essex Coastal Forum and the SELEP Coastal Communities Group have a county wide or regional role in addressing coastal issues.

There is scope to review the current remit of these groups. It would be useful to consider how a county-wide grouping could take a more proactive approach to managing coastal issues across Essex building on the partnership approach that is already established. The issues that could provide a focus for this grouping include shoreline management, developing seaside tourism, and promoting heritage and culture. It would also help to maximize the impact of local strategies including projects taken forward by the Coastal Community Teams and any funding secured from the Coastal Communities Fund.

Developing seaside tourism: Apart from Southend, where visitor numbers have been rising, the market for tourism as measured by trips to Essex has been waning over the past decade (Table 9). These figures are drawn from the annual GB Tourism Survey, although a separate local survey presents a contrasting picture of rising visitor numbers during this period.

Opportunities exist to promote tourism, recreation, history and culture, and landscape in Essex:

- Visit Essex should continue to work with local authorities and other local partners and review what additional steps can be taken to promote visits to coastal communities.

- Establishment of a coastal path would provide an opportunity for seaside tourism and coastal regeneration. Essex Highways need to continue to develop a plan for a coastal path in Essex working in conjunction with Natural England which is determining the route of an England Coast Path.

- Developing cultural events promoting heritage and arts, and expanding marine recreation such as sailing, angling and water sports.

Southend has improved its offer by coupling tourism with development of culture, leisure and retail activities. It has a broad ranging tourism strategy ‘Destination Southend-on-Sea’, which sets out a vision to be delivered across the borough over the decade to 2027.

Tendring’s ‘Resorting to the Coast’ is an example of a coastal heritage initiative. The project, running to 2019, enables people to rediscover and celebrate the history of local seaside resorts through a range of free events including training courses, a programme in 10 schools, and two seaside conferences to showcase British seaside heritage focusing on Tendring.

Table 9Total trips to Essex

Thousands, averaged over three years

2006-08 2014-16 % change

Tendring 348 278 -20

Southend 213 249 17

Colchester 531 248 -53

Chelmsford 285 237 -17

Uttlesford 169 132 -22

Epping Forest 103 119 16

Basildon 153 112 -27

Braintree 146 109 -25

Harlow 80 71 -11

Maldon 81 66 -18

Brentwood 75 61 -19

Thurrock 111 54 -52

Rochford 28 39 38

Castle Point 21 17 -17

Essex 2344 1792 -24

England 98265 98228 0

Source: GB Tourism Survey


Exploiting the potential of ports and logistics: Ports and logistics are important to the development of coastal districts particularly in South Essex and Tendring. The development and expansion of the Port of Tilbury and London Gateway are contributing to the revival of the local economy, particularly in Thurrock. Tilbury 2 involves the establishment of a new port terminal and associated facilities. London Gateway combines the UK’s most advanced deep sea port with one of Europe’s largest logistics parks. While the proposed Bathside Bay development at Harwich has the potential to create a deep sea container port the extent of current container capacity in the region means that it is unlikely to be developed for the foreseeable future. However, Harwich does have significant potential for growth in offshore energy.

Key drivers for the future development of logistics, particularly in South Essex, include:

- Effective deployment of new technologies, with mobile, location-based technologies and hand-held computer systems requiring greater IT competency amongst drivers and other staff.

- Recruitment of younger drivers of HGV and LGV, including more women, to replace ageing male workforce. Establishing the proposed Institute of Technology for transport and logistics could form part of the solution to building up a skilled logistics workforce. While an apprenticeship standard has been developed for LGV, it has yet to be approved for HGV.

- Ensuring that the 25 industrial sites available in Thurrock are suitable for those logistics businesses that are looking to expand into new premises.

Expanding offshore and other energy: Offshore energy provides considerable opportunities for coastal areas, such as Harwich, with 5% of UK energy now supplied by offshore wind and 63% of UK offshore wind capacity sited off the East of England coast. The Energy Sector Review by Nautilus Associates noted that the energy and low carbon sector employs over 8,000 people in Essex around 1,500 mainly smaller businesses.

Harwich, according to the Nautilus Associates report, offers an ideal location to support assembly, installation, operations and maintenance (O&M). Harwich was used as the construction port for the the Gunfleet Sands and wind farm. It will also benefit if Innogy’s application for Harwich to be the O&M base for the Galloper Wind Farm is approved in 2018. Supplementing the role of Harwich, boats operating out of Brightlingsea carry out monitoring surveys and continuing environmental studies on Gunfleet Sands as well as ferrying personnel.

Harwich and Brightlingsea form part of the South East Centre for Offshore Renewable Engineering (CORE), which also includes Kent. This is one of only six areas in the UK officially designated by Government as areas of England best able to service the offshore wind industry. The Government needs to provide more impetus to these CORE areas of strategic importance as well as other energy initiatives. This would help the Essex ports gain more recognition for their provision of specialist logistics, assembly and construction services to the offshore wind industry.

Nuclear energy: Construction of a new nuclear reactor at Bradwell is planned in a joint venture between EDF Energy and China General Nuclear. The intention is to locate the new plant next to the existing Magnox site. The proposal has gone through to the second of four phases of its official assessment by regulators, with the total process if it reaches approval likely to take four years.


Table 10Road transport infrastructure projects of benefit to Greater Essex

Scheme Name Description and Location Status Construction date

Highways England led projects

A12 Chelmsford to Marks Tey On line widening to 3 lanesFunding allocated in RIS1: Highways England

to consult on options in Jan 20172015-2020+

A12 M25 to Chelmsford On line widening to 3 lanesRIS1 funding allocated to the identification

of options for later delivery2020-2025

A12 Colchester Northern Bypass On line widening to 3 lanesRIS1 funding allocated to the identification

of options for later delivery2020-2025

A12 Technology package Smart traffic systemsFunding allocated in RIS1: Highways

England considering options and linkages to wider A12 programme

2015-2020

M25 J 28 Brook Street Junction upgradeFunding allocated in RIS1 Highways

England currently consulting on options2015-2020

M11 J7 Junction upgrade Funding allocated in RIS1 2015-2020

M11 Technology Package Smart traffic systems Funding allocated in RIS1 2015-2020

M25 J30 Junction upgrade Work underway Work underway

Lower Thames CrossingNew estuarial crossing

and link roadsRoute announced in April 2017 2020-2025

A14 Cambridge to HuntingdonWidening and junction

improvements and local realignment of route

Work underway Work underway

ECC led projects on HE network

A120 Braintree to Marks Tey Provision of a dual carriageway

Development work funded jointly by ECC and HE seeking RIS2 funding

Consultation on options January 2017 alongside A12 consultation

2020-2025

A120 Millennium Way Slips Provision of west facing slip roadsJoint ECC HE option and design work

in support of bid to LGF32020

M11 J7a and Gilden WayNew motorway junction

and link road

Joint ECC HE option & design work in support of bid to LGF3 & HE major scheme funding.

Government and ECC funding allocated to the preparation of a formal business case for submission to DfT in 2016/17

2019

M11 J8 Revised junctionJoint ECC HE option & design work in support

of bid to SELEP for LGF3, LGF1 funding contribution secured from GCGPLEP

2020

ECC led projects on locally managed strategic network

A130 south of Chelmsford to Rettendon

Opening of third lane Widening of A130 to 3 lanes about to open Work underway

A130 NE Chelmsford BP Bypass of existing A130 Preferred route defined. Seeking funding 2020-2025

A127 whole route (Phase 1) Package of improvementsJoint strategy agreed with Southend BC. Phase 1

funding allocated in LGF1. Phased work underway2015-2020

A127 Fairglen (Phase 1) New junction layoutsJoint strategy agreed with Southend BC. Phase 1 funding allocated in LGF1. Design work underway

2015-2020

A13 whole route Package of improvementsECC funding allocated to the identification of package of improvements for future delivery

2020-2025

Thurrock led A13 (A128 to Stanford-le-Hope)

On line widening to 3 lanesThurrock led scheme, business case

under development, funding provisionally allocated within SELEP Growth Deal

2020


Main sources used in compiling this report are detailed below.

Broadband Delivery UK

Superfast broadband delivery, 2017

Civil Aviation Authority

Air passenger and freight traffic at UK airports, 2016

Essex Economics Commission

Enterprising Essex: Opportunities and Challenges, January 2017

Addressing the scarcity of commercial workspace in Greater Essex, 2017

Tackling skills requirements in Greater Essex, 2017

Dealing with Challenges of coastal communities in Greater Essex, 2017

Essex Employment and Skills Board

Evidence Base Spring, 2016 & 2017

Department for Education

A-Level entrants, 2015/16

Glenny

Databook, Q3, 2017

HMRC Trade Statistics

Freight exports from Greater Essex ports, 2016

Office for National Statistics

Business demography: start ups, 2015

Gross value added – income approach, 2015

Nomis: % share of people reaching Level 4, 2015

Population estimates, 2015

Regional GVA, 2015

UK Business: Activity, Size and Location, 2016

Skills Funding Agency

Apprenticeship starts, 2015/16

Southend-on-Sea Borough Council

Destination Southend-on-Sea, 2017

Tendring District Council

Resorting to the Coast, 2017

Visit Britain

The Great Britain Tourism Survey (GBTS), 2016

APPENDIX 1

MAIN SOURCES OF INFORMATION

20 Main sources of information

This report is issued by:Essex Economic Commission

www.essexgrowth.co.uk

Published March 2018

The views expressed in this report do not necessarily represent the view of individual members of the Essex Economic Commission or the firms and organisations they represent.

The report is based upon material available to or supplied to the Essex Economic Commission from reputable sources, which the Commission believes to be reliable. Whilst every effort has been made to ensure its accuracy the Commission cannot offer any guarantee that factual errors may not have occurred. The Essex Economic Commission does not accept any liability or responsibility for any direct or indirect damage, consequential or other loss suffered by reason of inaccuracy or incorrectness. This publication is provided to you for information purposes and is not intended as an offer of solicitation for the purchase or sale of any financial instrument, or as the provision of financial advice.

Copyright protection exists in this publication and it may not be produced or published in any other format by any person, for any purpose without prior permission of the original data owner/publisher or the Essex Economic Commission. © Copyright March 2018

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FINAL REPORT OF THE ESSEX ECONOMIC COMMISSION … · (mainly North-South links) and to the coastal regions. Improving the rail network for freight and passengers can play a vital