1. Long-term economic plans John Gourd Chairman

3. Current Picture (1) Our economy is growing again – GVA grew by 0.6% to 3.9% over 2012-2013 – 6 th highest growth across 39 LEPs – Hertfordshire is now a £30.4bn economy – Fifth largest upper tier economy outside London Back towards full employment – Workforce of 600,000 – Lowest level claiming JSA since 2008 – 2014 Unemployment rate at 4.6% (UK 7.6%) – Still wide sub-county variances

4. Current Picture (2) Growing business population – Circa 50,000 businesses – During the recession the county lost over 1,000 SMEs – From 2012-14 and increase of 3,630 businesses (net). – Average business size is increasing Signs of overheating? – House prices rose by 13.2% (UK average 7.6% ) – Skills shortages emerging – Lack of suitable employment sites

5. The SEP - smart growth Key Principles: –Anchoring/growing high value sectors, jobs and skills in the county –Unblocking connectivity constraints –Being clear on what growth and where (jobs and homes) –Working across boundaries where it adds value

6. Global excellence in science, technology & creativity

8. Key Drivers - Innovation Strengths High levels of corporate R&D High concentrations of Knowledge Intensive Business Large professional, scientific & technical services sector High levels of University/Business collaboration Weaknesses Public R&D investment Corporate R&D dominated by a single sector – Life Sciences Below average concentrations of product and process innovators Publication of scientific papers & research

9. Key Drivers - Enterprise Strengths Large SME base Above average start-up rates Total number of SME’s lost since the recession have been replaced High rates of private sector jobs growth Weaknesses Slower to grow £1m+ turnover businesses High than avg micros (<10 employees) Below average presence in non-micro SME 90% SMEs don’t make it to 10 th birthday

10. Key Drivers - Infrastructure No major infrastructure projects on local highways network planned beyond 2019 to meet growth impacts. Poor East-West routes Employment floorspace being lost to residential – through permitted development and planning applications. The lowest level of new house building in the last two years in Hertfordshire. Housing affordability and link to availability of workforce/ability to attract and retain staff

11. INSERT MAP FROM GAF Growth is complicated…

12. Delivering success through new Growth Areas

13. Conclusions Our economy will grow, regardless of public intervention – we can help shape it or accept the consequences We have a high value, diverse, complex economy that is a net contributor to UK plc – we need to work hard to keep it that way There isn’t a simple linear path for growth – each area is different and requires a different roadmap We need to shift the perception of Hertfordshire from ‘no growth’ to ‘smart growth’

14. We have been here before…