Economic Development Strategy 2011- 2016

Econom

www.milton-keynes.gov.uk/council-business

Economic Development Newsletter

June 2012

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INTRODUCTION Welcome to our June results and latest news from the Milton Keynes Council Economic Development Team. Great news for Milton Keynes – unemployment falls for the third month in a row. Lots of sporting news to shout about too: our resident F1 team, Red Bull, were narrowly out of the top spots in both the Canadian and Italian races but victorious at home at Silverstone. Some exciting goals were seen in the Euro 2012 as well as great tennis at Wimbledon. Even June’s damp weather could not spoil our celebrations of the Queen’s Diamond Jubilee! Inward Investment update June’s enquiry figures, 28 for the month, show a continuing trend of industrial enquiries this month. Our investment successes for 2012/13 now stand at eighteen, thanks to four new companies coming to Milton Keynes and eight expansions within the city. Seven of these are from our target group of high growth, high-value, knowledge-based businesses and operate in the customer experience, point of sale, exercise technology, software for telecoms, call centre, engineering and re-generation sectors. The twelve successes contributed a total of 233 new or retained jobs to our local economy. We met with several of our commercial property agents, developers and other partners within and outside of the Milton Keynes Council as part of our programme of joint working. We also attended the opening of the recently refurbished industrial space in Stacey Bushes, owned by Universities Superannuation Scheme (USS) and were impressed by the changes. This refurbishment has not only uplifted the units but also the area and it is now a more modern looking and desirable location for business. Bidwells are currently marketing the refurbished units of between 3,750 – 15,000 sqf.

Investor enquiries this month …

We hosted a meeting with a potential manufacturing investor and the UKTI, HCA and a developer. We have assisted them with their land and premises search and are now supporting them in other areas moving them closer to a decision making position. AG Barr … chomping at the bit The AG Barr development at Magna Park has gained approval from the DCC and MKC and they have project managers in place to begin work as soon as the consultation period closes. Production from the new facility is on target to commence mid 2013. MKC has received praise from AG Barr for the professionalism and speedy handling of their enquiry. Well done everyone involved, Irn-Bru’s all round!

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One of our recent inward investment successes supports their local community … We put one of our successes, a solar blind company, in touch with local schools in their area. It’s great to see how new business can get involved and become key to community and school support and development. The Economic Development team has now started to provide the strategic link between businesses and Council services, such as rates, schools and regeneration, which help enable businesses to deliver their Corporate Social Responsibility programmes and integrate into the wider Milton Keynes community. We have been recognised for our expertise in enquiry handling …. Thanks to the hard work and relationship building of the team, we will be handling all UKTI enquiries for the SEMLEP. This new process will mean we are the hub for all enquiries coming in to our area from around the world. The process went live on the 9 July. One of the team also attended the UKTI Accreditation Training which will enable us to better understand UKTI processes but also to stay closer to enquiries across the area. Great news for future employment opportunities …

On 12 July CLT agreed to take forward an Integrated Employment and Skills Programme. The programme will deliver a more co-ordinated and integrated approach to delivering employment and skills opportunities via the Council’s planning and procurement policies, which is based in part on similar successful programmes run by other local authorities. This means that developers, end-users and contractors will be required: via either a voluntary agreement or a legal obligation; to provide employment opportunities such as apprenticeships, work placements and training programmes as part of their developments and contracts. The programme will work across a number of Council services, such as planning, procurement and regeneration, as well as with local partners, including MK College, and most importantly with developers, end-users and contractors. While the programme is only in its very early stages it is anticipated that it will deliver a significant step-change in the delivery of employment and skills opportunities for local residents. Milton Keynes Local Investment Plan … The Local Investment Plan (LIP) lists the key items of infrastructure to be built by 2026 to support new homes, new jobs and increasing economic prosperity. The LIP aids decision makers in allocating funds; supporting the business case for new investment into Milton Keynes; galvanises support to deliver key projects; improves

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programme management; and tells the story of Milton Keynes’ continuing planned development. A draft LIP is currently out for public consultation until 31st August 2012, to have your say please go to www.milton-keynes.gov.uk/mkgrowth or contact Darren Gray, MKC Infrastructure Coordination & Delivery Service on 01908 253652. The current consultation has already stimulated a number of new investment enquiries. All aboard … station improvements As the main gateway to Milton Keynes, Station Square’s new look enhances visitors first impressions when arriving in the city. It will be completed shortly and the improvements include new bus lanes, bus stops, ‘kiss and drop’ loading and taxi drop off points. The new Wolverton Railway Station was officially opened on 21st June 2012. The modern yet traditional looking station building is a key achievement in the rejuvenation of Wolverton. Both schemes were funded through the government’s Growth Area Fund allocated locally by Milton Keynes Council. For more information on this or any other transport project visit www.milton-keynes.gov.uk/transport Two stroke Cities - Milton Keynes … The latest Centre for Cities report details how cities with a two stroke economy – who are able to attract foreign owned business as well as having a strong domestic enterprise base – are in the best position for growth. Milton Keynes comes out well on both foreign companies and local enterprise so is set to be one of the better performing cities yet again. Keep in touch with our own and other business news from Milton Keynes by following our Twitter feed: www.twitter.com/InvestMK Best wishes

Pam Gosal Corporate Head of Economic Development Planning, Economy and Development Group Milton Keynes Council

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INVESTMENT SUCCESS UPDATE

June 2012 Year to Date

Companies arriving in or relocating within Milton Keynes

12 18

From Target Group* 7 10

Total Jobs Created 35 52

Total Jobs Retained 198 242 ∗ High growth, high value, knowledge-based businesses

Successes 2010 - 2013

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Jobs Retained 2010- 2013

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ENQUIRY ACTIVITY UPDATE The chart below shows the trends for commercial land and premises enquiries from 2010 – 2013.

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We received 28 enquiries this June compared to 39 last year and therefore the cumulative total for the year to date is 69 against 72 in 2011. Our current caseload is 41 category ‘A’ and 37 category ‘B’ enquiries. Category ‘A’ Enquiries are from UKTI and foreign owned businesses; land enquiries; industrial premises over 50k sq ft; office premises over 10k sq ft and key business sectors. Category ‘B’ Enquiries cover all other requests for support

Enquiries by Sector June

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Office 13 10

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SOURCE OF ENQUIRIES The table below shows enquiry origin and variance between 2011/12 and 2012/13.

SOURCE

Enquiries

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2011

Enquiries

June

2012

Enquiries Year 2011/12

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June

2011

Enquiries Year 2012/13

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June

2012

Yellow Pages 0 0 0 0

HCA 1 2 4 3

Business Link 0 0 2 0

MK Chamber 0 1 1 3

MK Council 3 5 7 14

UKTI (formerly SEEDA)

2 0 3 3

Property Agents and Developers

19 16 23 30

IMK Website 14 4 32 16

Marketing Campaign 0 0 0 0

Total 39 28 72 69

LABOUR MARKET UPDATE The Labour Market in Milton Keynes: June 2012 Unemployment claimant count fell for the third month in a row to 6,352 claimants in June 2012 from 6,496 in May 2012, thus, 144 fewer job seekers. The unemployment rate in Milton Keynes fell to 3.9% in June 2012, a decrease 0.1% on the May 2012 rate. At 3.9%, the MK unemployment rate was at the same level as the UK rate,

Industrial 22 15

Retail 0 1

Land 4 2

Total for Year so far 72 69

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compared to the South East rate of 2.5% in June 2012 as shown in Figure 1. In the South East Midlands Local Enterprise Partnership area the unemployment rate was 3.3% in June 2012, a 0.1% decrease on the May 2012 proportion. Figure 1: Unemployment Rate in MK, South East and UK, June 2012

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There were 2,600 job vacancies notified to Jobcentre Plus in Milton Keynes in June 2012 compared to 1,946 jobs vacancies in May 2012, an increase of 654 job vacancies (33.6%). By comparison, there were 1,708 job vacancies in June 2011. The job vacancy situation in Milton Keynes remains stable even though there are fluctuations month to month. The Banking and Finance sector has provided most of the notified job vacancies in MK since January 2009: 68.7% of all job vacancies in June 2012 and 73.3% in May 2012. Within this sector, most of the jobs were in Other Business Activities (Business & Management Consultancy, Legal & Accountancy Services, Labour Recruitment & Provision of Personnel, Software Consultancy & Supply, etc), 67.1% in June 2012 and 69.4% in May 2012. Figure 2 shows the unemployment rate and job vacancy trends to illustrate the trade-off between the two economic indicators. There were 2 job seekers per vacancy in June 2012, compared to 3 in May 2012, and 8 in January 2009, illustrating how the level of economic activity in Milton Keynes is changing. Figure 2: Unemployment & Job Vacancies, MK, March 09 to June 2012

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Unemployment and Job Vacancies, MK, March 2009 - June

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