Sheffield’s Economic Strategy Sheffield Executive Board Wednesday 12 th September 2012 Diana Buckley and Karen Ramsay Economic Policy Officers, Creative Sheffield

Contents 2008 Masterplan – Why refresh? What will the strategy do? Diagnosis: Key economic challenges Developing the new strategic framework  New economic vision  Drivers and enablers of economic growth What we need from you? Process / timeline to complete the new strategy Questions and comments

1 st stage Arresting the decline – mid 1980s to nd stage Revival – clear improvement in economic indicators rd stage Transformation – 2004 onwards The Sheffield Economic Masterplan was launched in January 2008 to provide a long term vision for the economy

Economic, Financial and Political Change

Large scale regeneration projects, climate typified by cheap land and labour Rapid expansion of business and financial services – which would continue to drive step change in the economy Public sector expansion and retail would be further areas of job growth Facilitating economic growth by ensuring city has the right infrastructure and assets The 2008 Economic Masterplan

What will the strategy do?

What does the strategy do? Diagnosis of the economic challenge Set the city’s economic priorities to 2020 Gives us the framework and focus to proactively manage growth  Guiding delivery  Helping to make critical investment decisions  Tool for bringing city partners together The “script that we stick to”  Ambition, challenges and the direction the city is heading

Local Enterprise Partnership City Centre Masterplan Sheffield’s Economic Strategy Lower Don Valley Masterplan City StrategyCorporate Plan Economic Programme of activity for the city Test and reshape current delivery Identify gaps in delivery Leadership for new activity

The strategy gives a diagnosis of key economic challenges

Self Employed 33, Start up 1, Closures VAT/PAYE 16, Improve business stock and dynamism

VAT/PAYE (16,100) Breakdown Sector and Size , % % % % % %

Significant progress on skills 2005 profile 2010 profile

But more to do.. Future talent  Number of pupils gaining 5+ GCSEs at grade A*-C including English and maths is low (49%) compared to a national average (58%). Skills gaps  Developing skills gap at technician level as an ageing workforce retires in the SCR manufacturing industry  580 apprenticeships are required from major businesses located in the Sheffield City Region in the next 3 years Up-skilling the current workforce  70% of the existing workforce is already employed in businesses.  More intermediate and technical level 3 skills are needed in the labour market  Skills profile has been static at Level 3 (16.6% in 2005, 16.5% in 2010).  A significant decrease in apprenticeships from 2005 – High level skills  Too may graduates are not utilised by the city’s SMEs  Lack of leadership and management skills

Unemployment and worklessness remains a significant problem 17,837 JSA claimants 24,460 people claiming Employment Support Allowance or Incapacity Benefit 5,330 Income Support

Deprivation and inequality remain an issue for cities

The strategy sets the city’s economic priorities to 2020

By 2020, our vision is for Sheffield to have: “A strong sustainable, resilient and internationally successful economy that is driven by growth in the private sector and provides jobs for local people”

New Strategic Framework Sheffield to be a city with a strong sustainable, resilient and internationally successful economy that is driven by growth in the private sector and provides jobs for local people. Economic DriversEconomic Enablers Driver / Enabler More and better businesses High Value sectors A skilled workforcePlacePeopleProfile What we want to achieve A dynamic private sector with a strong pipeline of new businesses and a productive, competitive and growing business base delivering growth that generates jobs. Strong high value sectors that will transform the city’s long term competitiveness, drive up productivity, create high value jobs and give profile to Sheffield’s economic strengths. A highly skilled and productive workforce with the level and type of skills that meet business needs and support growth Unrivalled quality of place with the right infrastructure and environment to support the city’s competitiveness, enabling businesses to run efficiently and grow, and for people to enjoy a high quality of life. A more resilient and inclusive city economy, where we tackle deprivation and inequalities at source, to ensure that people can achieve their full potential and participate in the social and economic life of the city. An enhanced city reputation locally, nationally and internationally, with Sheffield known as a destination of choice and an attractive place to live, work, invest and visit. Economic Priorities to 2020 Fostering a culture of enterprise Assisting businesses to start up, survive and grow Driving up productivity and competitiveness Attracting and embedding inward investment Building sector profile and leadership Delivering bespoke sector support packages Championing game changing sector initiatives Nurturing young talent to build a skills base for the future Up skilling the current workforce Cultivating and utilising high level skills Developing a business focused skills system Strengthening the city’s infrastructure Ensuring that Sheffield is well- connected Harnessing the potential of the city’s physical assets Building a sustainable low-carbon city Connecting people to training and jobs Tackling the route causes of poverty Promoting fairness and equality Building a resilient local economy Enhancing the city’s reputation for doing business Raising the profile of the city’s assets Maximising the Sheffield city brand Governance and Economic Leadership Financial Tools for growth Effective Partnership

How will we know when we get there?

What we need from SEB? Help to refine the strategy  Do you agree with the economic challenges?  Is the balance of drivers / enablers right?  Are the economic priorities to 2020 right? Commitment to delivering the priorities in the strategy Recognise the role SEB and your individual organisations can play – leading, enabling, risk sharing, intelligence

Process and Timescales to complete the new strategy Strategy development – August/September Consultation – September/October Amendments to the strategy – September/October Cabinet - November

Any questions / comments?

Further slides on the drivers / enablers

Driving Growth: More and Better Businesses Ambition: A dynamic private sector with a strong pipeline of new businesses and a productive, competitive and growing business base delivering growth that generates jobs. Challenge: Sheffield’s business density and start up rates are low compared to other UK cities, as is the productivity of our sectors and businesses. Priority areas for actions: Fostering a culture of enterprise Assisting businesses to start up, survive and grow Driving up productivity and competitiveness  (innovation, international trade, sustainability) Attracting and embedding inward investment

Driving Growth: More and Better Businesses Scarcity of regional / national business support Recognise role of SME’s as well as big employers An issue in start up rate of VAT / PAYE businesses Focusing resources 1 to few Next generation business leaders Tailored support for ‘growth’ firms All business receiving basic support 1 to many 1 to 1

Driving Growth: High Value Sectors Achieving growth in.. Advanced manufacturing and materials Business, professional and financial services Creative and digital industries Energy, environmental and low carbon industries Healthcare technologies Leadership from within the sector Differentiate our offer - focus on our competitive edge Working across SCR and with LEP Delivering the big initiatives and conditions to accelerate sector growth

Driving Growth: A skilled workforce Building a highly skilled and productive workforce in partnership with business Improving educational attainment is important to maintaining a strong skills pipeline Upskilling the workforce and improving on apprenticeships Better connecting our highly skilled people and businesses – knowledge transfer, graduate utilisation, leadership and management skills for SMEs Skills system that delivers what is right for Sheffield businesses and people

The Skills ‘Deal’ 4,000 new apprentices by the creation of an SCR apprenticeship hub which includes an Apprenticeship Training Agency (ATA) and a sector-based Group Training Association (GTA). 2,000 newly up-skilled people – supporting businesses to access the skills they need to grow 61% locally funded model - with £23.8m from Government, £37.5m from local business and at least £6.5m from local authorities. Establish a Skills and Employment Board for Sheffield City Region with businesses, providers and local partners co-ordinating the delivery of the new skills model for Sheffield.

Enabling Growth: Place Unrivalled quality of place We need the right infrastructure and environment to support growth and job creation Sustainable growth – energy, waste, flood resilience Well connected city – HS2, delivering on Tram-Train and BRTNorth Key areas – City Centre Masterplan, Lower Don Valley Masterplan Low carbon credentials – improving local energy generation and low carbon energy, retrofit and construction

Enabling growth: People Deprivation and inequality can cost Sheffield future economic growth A resilient and inclusive city economy provides opportunities for everyone to participate in the social and economic life of the city Connecting people to jobs and training Tackling route causes of poverty Promote fairness and equality Building resilient local economy

Fairness Commission Consider the nature, extent and impact of major inequalities on the City of Sheffield. To stimulate and listen to a debate amongst the people of Sheffield To consider evidence on what has worked with regard to reducing inequalities and prioritising fairness within the city and elsewhere. To prepare a report for publication in September 2012 which both details the nature, extent, causes and impact of major inequalities and makes recommendations to the Council and other key bodies about what short and long term measures are required to reduce those inequalities.

Enabling growth: Profile We now have a comprehensive Sheffield brand Challenge remains to use this brand to enhance the city’s reputation as a location for doing business, to raise the profile of the city to attract investment, talented individuals as well as visitors.