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Economic Development Update
Policy and Resources Panel
14 July 2009
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• State of the Hertfordshire Economy
• Hertfordshire Works
• Emerging Vision
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National Context – mixed message
• Bank of England
• Purchasing Managers Index
• British Chamber of Commerce
• Lending
• Housing
• Commercial Property
• Construction Output
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Hertfordshire• Unemployment ILO Definition
- 5% (estimate May 2009)
- 3.7% (June 2008)
- 10% (early 1990s)
• East of England 6%
• UK 7.2%
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Claimant Count
May 2009 19657 3%
May 2008 8234 1.2%
• Stevenage 4.3%
• Sales & Customer Service
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Vacancies
May 2009 2992
April 2009 2868
March 2009 3013
May 2008 5625
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Young People NEETs
- May 2009 5.5%
- May 2008 4.5%
• Particularly 18 year olds
• Stevenage 40% higher than County average
• Learning rate up to 82.7% from 80.5% last year
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Redundancies
- 700 Jan – May 2009
- 900 expected over the next 9 months
- All sectors, all locations
- 2/3 of redundancies are in companies employing less than 100 staff
- Job levels unlikely to be regained until 2015
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Housing
- Average house price in Hertfordshire £276,300
- Nationally £197,000
- House prices fallen 14.8% from April 2008-09
- Housing completions
2008/09 3563
2007/08 4271
2006/07 4345
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Hertfordshire Works
£4m PRG through ‘Recession to Recovery Programme’- £480k already allocated to additional funding to CABX
for 5 specialist debt advisers
- £800k for Apprenticeships
- £300k for skills training for SME’s and social enterprise
- £500k capital for local shopping centres improvement fund
- £200k for Business Retention and Inward Investment
- £1.5m capital for Incubation Centre
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• Inward Investment Manager appointed
• Future Jobs Fund bid to Central Government for 200 apprenticeships for young people who are long term unemployed
• Business Advisory Groups in place
• SME Procurement and Supply Chain Initiative
• Olympics Legacy / Waltham Cross Renaissance Group
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A fresh economic vision for Hertfordshire
- Visioning Workshop 6 July 2009
- Draft Strategy by Hertfordshire Forward Conference November 2009
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STRENGTHS
- Varied Economy
- Skilled Workforce
- Proximity to London
- Quality of life
WEAKNESSES
- Weak brand/mixed messages
- Infrastructure
- High cost of Housing
- Pockets of economic disadvantage
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OPPORTUNITIES
- Build on Clusters
- Nurture SMEs
- Green Jobs
- Olympics
THREATS
- Slow recovery
- Loss of competitive advantage
- Poor quality jobs
- Congestion
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Emerging Vision
• VARIED & RESILIENT ECONOMY- Diverse, not over reliant on few sectors or
multinationals- Building on our strengths – pharmaceuticals,
hi-tech engineering, communications & media
- Retaining existing firms & encouraging them to grow
- Supporting SMEs- Promoting entrepreneurs
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• QUALITY JOBS
- High Wages, skilled jobs
- Knowledge intensive
- Personal Services
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• QUALITY LOCATIONS
- Key sites
- Flexible development briefs
- Sustainable development
- Unlocking Infrastructure
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• WELL SKILLED WORKFORCE
- Skills for the future
- Linked to what employers want
- Apprenticeships from work experience to graduates
- Key to addressing inequalities
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• INNOVATIVE AND NETWORKED
- Optimising our clusters
- Strong supply chains and networks
- Strong business engagement
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• STRONG OFFER & IDENTITY
- Clear Brand
- Culture of ‘Yes’
- Inward Investment Portal and Support
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• ‘SMART’ GOVERNMENT
- Advocacy
- Clear standards
- Appropriate interventions