BY
RUKHSAR 2K19/BF/71
SOHAIL AHAMED 2K19/BF/81
SANDHIYA 2K19/BF/76
ASEEF 2K19/BF/17
SHERAZ 2K19/BF/79
TALHA 2K19/BF/89
Topics:
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Tax and types of taxation in pakistan .
Important of tax for the economy of pakistan.
20 taxation problems.
20 taxation effects.
20 taxation remedies.
Discuss the major of canon of taxation and
there refrences to the tax system of pakistan.
 Do you think tax system is based on the canon
of taxation.
 sujestion strategies to employment canon in
true sprits in pakistan.
TAXATION
IN
PAKISTAN
Tax
Tax is a money that people have to pay to the
government. Taxes are used to pay for people who
work for the government, such as the military and
police, provide services such as education and
health care, and to maintain and build things like
roads, bridge and sewers.
Commented [N1]:
What is taxation system in Pakistan?
Taxes are required to meet the expenditure that a
country needs to serve its people. Pakistan
operates through hybrid system whereby Federal
Board of Revenue (FBR) collects taxes on goods
and the provinces levy on services. The FBR
revenue is only 10% of the GDP, which is one of the
lowest in the world.
Types of Taxes
 Direct and Indirect Tax
Taxes can be either direct or indirect. A direct tax is one that
the taxpayer pays directly to the government. These taxes
cannot be shifted to any other person or group. An indirect tax
is one that can be passed on-or shifted-to another person or
group by the person or business that owes it.
 Direct taxes / Income Taxes
Federal income taxes are administered by the Federal Board of
Revenue. The period from July 1 to June 30 is considered as a
normal tax year for Pakistan tax law purposes.
Corporate Income tax rates Currently, the Corporate Income
tax rate is 29% for tax year 2019 and onwards whereas the
corporate tax rate is 35% for Banking Industry for TY 2019. In
addition to Corporate Tax, there are other applicable income
taxes including Super Tax, Minimum Tax, and Tax on
Undistributed reserves.
Generally, manufacturing business is taxable at Corporate
Tax rate whereas trading business and commercial imports
business is taxable as "minimum tax". For example, 5.5%
withholding income tax is applicable on commercial imports
and is payable at the import stage. This 5.5% withholding tax
will be considered as minimum tax and Corporate Tax is also
applicable, whichever is higher will be the tax liability, on
this business.
Indirect taxes
Indirect tax or more commonly knows as sales tax is also
applicable on supply of goods and provision of services.
Under the 18th amendment to the Constitution of Pakistan,
the right to charge sales tax on services has been given to the
provincial governments where as the right to charge sales tax
on goods has been given to the federal government.
Consequently, provincial revenue authorities were created to
manage and collect provincial sales tax in their respective
provinces. Below is a summary of the applicable sales tax
rates in Pakistan:
1. Sales tax on goods: 17%
2. Sindh Sales tax on services: 13%
3. Punjab Sales tax on services: 16%
4. Baluchistan Sales tax on services: 15%
5. Khyber Pakhtunkhwa (KPK) Sales tax on services: 15%
6. Islamabad Capital Territory (Tax on Services): 16%
Importance of the taxation
The tax system of Pakistan continues to under-perform, in
particular, in its ability to raise adequate revenues. The
bases of the most important taxes, such as Personal and
Corporate Income Tax and the General Sales Tax (GST),
continue to be narrow and the level of tax evasion remains
high. In modern economies taxes are the most important
source of governmental revenue. ... While taxes are
presumably collected for the welfare of taxpayers as a whole,
the individual taxpayer's liability is independent of any
specific benefit received.
Important of the tax for the economy of Pakistan:
The relationship between sales tax and consumption is also
negative; i.e. 1% increase sales tax causes 0.146% decrease in
household consumption expenditures. ... Above results show
that taxes in Pakistan have negative effects on consumption,
negative effects on investment and finally negative effects on
GDP.
Taxation Problems
Introduction:
•Tax is the most important source of government
revenue. Revenue earned by the federal government are
the relocated for the federal government's and
provincial government's expenditures.
•One of the complexities of our economic system is the
"tax problem" that every one keeps pointing out time
and time again.
•The 2020 tax season could be the season that see old
problems resurface and set a new issue emerges.
TAXATION
PROBLEM
S
Here are some of the common tax problems of 2020 that
we should all be aware of.
 The counters of Pakistan's taxation crises are well
known by now. only 0.3pc of the population pays
income tax and files a tax return one of the lowest ratio
in the world. Around 7 million Pakistanis are estimated
to be eligible to pay income tax but only less then 0.5
million do.
 Increasing tax revenue has proven to be a significant
challenge for recent Pakistani governments. The
stagnation of the GDP ratio to around 10 percent has
widely been attributed to a host of inter connected
factors including weak enforcement, fragmented
revenue administration, low compliance by taxpayers,
generous and distortionary exemptions and concession
to entire sectors of the economy and narrow tax bases.
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In case of investment incentive, high tax rates deoress the
rate of investment or slow down the growth in the capital
stock through high corporate income and individual
income tax rates, high capital income tax rates, high
payroll tax rates on production.
Multiple governments levy so many taxes on businessess
that "taxes" is the highest budget item on the ledger sheet
of most businesses. These taxes take away some of the
money other wise used to pay wages. So employers can't
pay good wages.
Because high tax cost businesses more they can't provide
as many products as they used to be able to. Property
taxes make it expensive to stock products with lower
quantities demanded and manufacturer can't afford to
produce the low demand products and also pay their
taxes. The result is that people with allergies to the
mainstream products can't buy any products they can
use.
Revenue generation has always hard core problem for the
Pakistan's economy which is why our government turned
toward structural adjustment program in the first place. The
tax problem lies with the tax base, that is considerably very
narrow as compared to the other countries.
The problem of taxation in Pakistan has been chronic being
one of the main reasons propelling consistent fiscal deficits
over the past. Low tax morale, tax rate evasion and high
compliance cost have been few major challenges that have
constrained FBRs capacity to generate sufficient revenue for
the government with limited financial levers available, the
government is unable to spend on social sector development
with further erodes the confidence of the taxpayer in the
government ability to provide public goods.
With more freelancers than ever before this also means more
taxpayers will be required to pay quarterly estimated taxes for
2019 tax year. unfortunately some people are not aware they to
do this or don't know how and when to make their payment.
The elimination of the alimony deduction is another one of
the tax cuts and job act changes that starts this year. This
means that alimony payments tied to any divorce or
separation agreement that is made this year or there after
will not be deductible for some taxpayers this is a pretty
significant change that could cost thousand of dollar.
Itisdifficulttocreateanefficienttaxadministrationwithoutwel
leducatedandwelltrainedstaff.Whenmoneyislackingtopaygoo
dwagestotaxofficialsandtocomputerizetheoperationandwhent
axpayerhavelimittedabilitytokeepaccounts.
The main problem with the taxation in any under developing
country likewise our country Pakistan is caused by the roots
of the system and administration in the upper level as they
impose and dictate the different taxes direct and indirect.
 In Pakistan the problem with the taxation in the recent year
is of high percentage of taxes in the sales with the name of
sales tax as of year 2019 sales tax in Pakistan has become 17%
e.g and 13% of Service tax.
Taxation system in Pakistan is not that much well good
because Only 0.57% of Pakistanis, or 768,000 people out of the
population of 190 million people pay the taxes as it is very big
problem to tackle down
 In Pakistan high import duty on different products just as
like vehicles and different machinaries have more than higher
300% tax these taxes become hurdles for the citizens to import
such vehicles.
Pakistan taxation get more than enough taxes from the
salary holder of government sector departments and institute
and mostly small business such as sole proprietor ship and
partnership business running in small shops earning
handsome amount of money they don’t pay taxes as they are
not registered should be registered and checked in the taxation
system of Pakistan.
 Misuses of tax is biggest problem in any country and
particularly for developing countries as like Pakistan proper
usage of taxes helps to get maximum output for to the citizen
and to get effective economy for any country
Lack of awareness is biggest hurdle and major problem for
the collection of taxes in any country
Distribution of authority is a problem seen as the mostly
authorities are given to the tax imposer and taxpayer don’t
have such authorities that he enjoys and authorize what he is
paying for.
Undocumented economy is also an issue faced by many
countries economy should be well documented and to be given
right to every citizen to check it in other words this should be
made public
At the end major problem is with the accountability system
of any state or country as far as there is no accountability in
higher authorities till the citizen just to check whether the
person is paying or not and whether the departments are
using it in a disciplined manner or not.
Effects of Taxation on Economy
Introduction:
 The most important objective of taxation is to raise required
revenues to meet expenditures. Apart from raising revenue,
taxes are considered as instruments of control and
regulation with the aim of influencing the pattern of
consumption, production and distribution. Taxes thus affect
an economy in various ways, although the effects of taxes
may not necessarily be good. There are same bad effects of
taxes too.
 Taxation can influence production and growth. Such effects
on production are analyzed under three heads:
 (i) effects on the ability to work, save and invest
 (ii) effects on the will to work, save and invest
 (iii) effects on the allocation of resources
 Imposition of taxes results in the reduction of disposable
income of the taxpayers. This will reduce their
expenditure on necessaries which are required to be
consumed for the sake of improving efficiency. As
efficiency suffers ability to work declines. This ultimately
adversely. affects savings and investment. However, this
happens in the case of poor persons.
 Taxes have different effects on various economic
activities. Taxes affect individuals’ decisions to save, the
decision of firms to produce, invest, create jobs, innovate
investment in human capital and supply of labor.
 Taxation has both positive and negative effects on GDP i.e.
income taxes have strong negative effects on economic
growth, Customs and excise duties inversely affect
economic growth.
 Corporate taxes are more harmful for economic growth
than other taxes. As higher corporate tax rates have
multiple effects on entire economy i.e. it affects
entrepreneur decisions to invest that effects
employment level as well as production and inflation
rate.
 In the case of consumption taxes have adverse effects
on house hold consumption as well as aggregate
consumption. An increase in taxes on consumption
through increase in VAT rates reduces the consumption
in short-run and a larger reduction in the long-run.
 Tax cuts that target new economic activity, reduce
distortions to capital accumulation, and are not deficit
financed are more likely to lead to economic growth.
 Primarily through the supply side. High marginal tax
rates can discourage work, saving, investment, and
innovation, while specific tax preferences can affect the
allocation of economic resources. But tax cuts can also
slow long-run economic growth by increasing deficits.
The long-run effects of tax policies thus depend not only
on their incentive effects but also their deficit effects.
 Direct taxes contribute 40% of total revenue collected by
the government. Income tax alone contributes 28% within
which only 4% is collected from personal income taxes.
This poor collection leaves the government with little
choice but to levy more number of indirect taxes to
address the shortfall.
 Taxation affects the economy in many ways. Imposing a
new tax raises the price of a commodity for the buyer,
reduces return for the seller and slows down the market
of that commodity which is called the Deadweight Loss
 Taxation is no doubt very unpleasant for every one
whether it is direct of indirect tax but it helps he economy
of any country
 Reductions in income tax rates affect the behavior of
individuals and businesses through both income and
substitution effects.
 The positive effects of tax rate cuts on the size of the
economy arise because lower tax rates raise the after-tax
reward to working, saving, and investing.
 Tax reform can raise the overall size of the economy with
a one-time change that puts the economy on a new
growth path even if it does not affect the long-term
growth rate.
 High marginal tax rates can discourage work, saving,
investment, and innovation, while specific tax
 The long-run effects of tax policies thus depend not only on
their incentive effects but also their deficit effects.
 Tax cuts can also slow long-run economic growth by
increasing deficits.
 Tax reductions can also have negative supply effects
 Tax breaks for research can encourage the creation of new
ideas that spill over to help the broader economy
 Taxation have mostly positive effect on the economy of any
country as it helps to grow the revenue of any country and
so that the citizens are rewarded and facilitated with that
tax.
Remedies for Taxation
• Introduction:
When taxpayers receive the dreaded tax notice that their tax
return or their business is going to be audited and examined,
the first thing they should do is seek professional tax advice.
Same thing when taxpayers receive collection letters
threatening levying and garnishing their wages or paychecks,
or the tax levy letter for their bank account, taxpayers should
seek professional tax advice to resolve their tax problems. The
most common options to resolve your tax problems are:
 paying the amount on the tax notice and avoiding the
confrontation with the taxing authority. Most of the time,
this option is not the best option for the taxpayer to resolve
their tax problem, as often the tax bill is inaccurate.
 paying the actual amount of taxes if you can afford it is
usually a good solution to your tax problem. This will entail
working with the taxing authority to abate the penalty
assessed. The success of penalty abatement is based on
reasonable cause and not willful neglect.
 paying the tax amount through an installment agreement is a
common way to resolve your tax problem. You should seek
professional tax advice, as the taxing authority will usually
request a large monthly payment, while professional tax
representatives will work on attaining an installment
agreement that is reasonable and you can live with without
causing a financial and economic hardship on you and your
family.
 an offer in compromise, OIC, will usually be accepted by the
taxing authority to resolve your tax problem if the amount offered
to settle your tax problem is equal or exceed the taxpayer’s
Reasonable Collection Potential, RCP. The IRS, or the State, or the
Sales Tax Agency determines RCP by using the financial analysis
tools like the 433-A for individuals and 433-B for business entities.
 Equalize the tax rates between ordinary income and capital
gains income, instead of taxing capital gains at a lower
rate.
 Remove the cap on social security taxes, so that highincome people continue to pay the tax on all their income.
 The inclusiveness of institutions, reforms in system, use of
modernized ways to analyze data, ensured trust,
accountability and transparency would be a good heads up
towards the solution of the tax problem of Pakistan.
 State Bank of Pakistan and Federal Board of Revenue have
jointly introduced the online collection of Government taxes
and duties through one-link facility.5 This would be
applicable for the payment of income tax, sales tax, excise,
and custom duties. Such a scheme is aimed at improving
payment systems especially in the context of revenue
collection besides facilitating tax payers and minimizing
incidence of leakages
 Our finding suggested that taxation in Pakistan should be
improved by increasing government on public services,
reducing gap between direct and indirect tax.
 In order to avoid the negative effects of taxation on economy
strong policy recommendations by increasing the tax base,
increasing the number of taxpayers, efficient collection of
income tax amount, reducing distortions and phasing out
exemptions, reducing the compliance costs and government's
administrative costs are required to improve tax system.
 Business registration should be mandatory for every
shopkeeper.
for example only a Pharmacist can open a medical store
business by that process the registered business from giant
businessmen to small business man everyone will pay the tax
and pay the role for the betterment of economy.
 Self responsibility is must every other citizen should be
educated by the laws and rules of taxation system and the
benefits and incentive of paying taxes.
3)Decrease the direct taxes in the industrial sector by that
incentive more and more industrialist will be encouraged to
come and start business that’ll eventually ending up creating
jobs and it also decreases the unemployment issue
 There should be an proper channel and with effective and
easy way to contact the tax collector and tax payer.
 Decrease in the import duty and taxes on vehicles will
ultimately boost up the economy as more and more peoples
will do purchases seeing that incentive it will help to boost
the economy.
 The more power accountability the more tax collection
result will be and policy makers should see this to collect
more revenue and taxes.
 Taxation should be in limit it should not be in excessive.
 Hire better trained staff who have access to the right
technology and resources of any country.
 If we take a look in the Pakistan aspect About 38% of
Pakistanis live in cities, yet they contribute to about 55% of
the GDP. This means that if Pakistan effectively manages
the tax collection in these cities, there is further revenue
potential.
 Increasing taxation is possibly the most fundamental
challenge, but it is useful to bridge the gap between
research and policymaking by integrating research
findings into policy decisions.
 After all as far as there is corruption in any state or country
there is no stopping in decrease of revenue because
corruption does not let the tax payer get what they deserve
and the allocations are also affected by that.
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Major Canons of taxation and their reference to the tax
system in Pakistan
Taxation:The most important source of revenue of the government is
taxes. The act of levying taxes is called taxation. A tax
compulsory charge or fees imposed by government on
individuals or corporations. • The persons who are taxed
have to pay the taxes irrespective of any corresponding
return from the goods or services by the government. The
taxes may be imposed on the income and wealth of persons
or corporations and the rate of taxes may vary.
Meaning of Canon of Taxation:By canons of taxation we simply mean the characteristics
or qualities which a good tax system should possess. In
fact, canons of taxation are related to the administrative
part of a tax. Adam Smith first devised the principles or
canons of taxation in 1776. • Even in the 21st century,
Smithies canons of taxation are applied by the modern
governments while imposing and collecting taxes.
Objectives of Taxes
 Raising Revenue Regulation of Consumption
and Production.
 Encouraging Domestic Industries •
 Stimulating Investment •
 Reducing Income Inequalities •
 Promoting Economic Growth •
 Development of Backward Regions •
 Ensuring Price Stability.
Taxation system in Pakistan
 Taxation in Pakistan is a complex system of
more than 70 unique taxes administered by at
least 37 agencies of the Government
of Pakistan. ... Only 0.57% of Pakistanis, or
768,000 people out of a population of 190
million pay income tax.
Direct taxes / Income Taxes
 The period from July 1 to June 30 is considered
as a normal tax year for Pakistan tax law
purposes. Corporate Income tax
rates Currently, the Corporate Income tax
rate is 29% for tax year 2019 and onwards
whereas the corporate tax rate is 35% for
Banking Industry for TY 2019.
The Tax system is based on canons of
taxation
 Meaning of Canons of Taxation:
 By canons of taxation we simply mean the
characteristics or qualities which a good tax
system should possess. In fact, canons of taxation
are related to the administrative part of a tax.
Adam Smith first devised the principles or canons
of taxation in 1776.
In my point of view in Pakistan the tax system is also
based on canon taxation system.
I am giving my point of view regarding to Canon
taxation system.
ADAM
SMITH
1) Canon of Equality:-states that the burden of taxation must
be distributed equally or equitably among the taxpayers.
However, this sort of equality robs of justice because not all
taxpayers have the same ability to pay taxes. Rich people are
capable of paying more taxes than poor people. Thus, justice
demands that a person having greater ability to pay must
pay large taxes
In Pakistan, Canon of quality is applied in all sector, tax is
based on quality and it is depended on your income, you
have to pay according to your income.
2) Canon of Certainty:-The tax which an individual has to
pay should be certain and not arbitrary. According to A.
Smith, the time of payment, the manner of payment, the
quantity to be paid.
In Pakistan there is certainty of taxation and all the
taxpayers have to pay on time according to time and
schedule and all the payment must be paid. In any case
someone will pay late tax, they surely face many troubles.
3) Canon of Economy:-This canon implies that
the cost of collecting a tax should be as
minimum as possible. Any tax that involves high
administrative cost and unusual delay in
assessment and high collection of taxes should
be avoided altogether.
According to A. Smith: “Every tax ought to be
contrived as both to take out and to keep out of
the pockets of the people as little as possible,
over and above what it brings into the public
treasury of the State.”
CREATING THE STRATEGY:
 The Vision expressed in Section One requires a
range of actions. To help explain the logic of
these actions, and to link them through to the
targets which we need, the Strategy is set out as
a list of 10 Priorities:
 Understanding the Problem
 Business Survival
 Trading Environment
 Creating Opportunities
 Enterprise Development
 Advice and Guidance
 Removing Barriers
 Skills Development
 Promoting Devonport
 Changing Cultures
These Priorities are inter-linked, and action ideas for each
Priority need to be coordinated if the Vision is to be achieved.
However, they do address key problems and needs for the area,
and may be considered as follows:
1. UNDERSTANDING THE PROBLEM:
Why is Understanding the Problem important?
This Strategy sets out the key employment issues that the DRC
will need to address – and suggests those measures that can
assist in meeting local needs and strategic objectives. Extensive
consultations and examination of survey results and other
background information sources have contributed to the study.
Research was undertaken at the time of producing the original
submission for NDC funding, and this Strategy provides a much
more detailed analysis of employment issues and problems in
the local economy.
There is a clear need to get right to the heart of the issues in
detail and to keep the analysis up to date. A clear
understanding of the nature of the problems being tackled is
critical in ensuring that public funding is deployed effectively
 Standard sources do not provide a complete and consistent
picture of the scale and nature of problems affecting
employment and the local economy
 Standard sources do not provide sufficient information to
help target initiatives to address wordlessness and the
viability of local businesses
Before developing specific projects to deal with some of these
issues, it is imperative to understand the exact nature and scale
of the problems to be addressed. Other NDCs have shown how
detailed local work, including local residents in the survey
process, can yield very useful information.
Strategic Aim:
Progress towards meeting the key employment objectives of
Devonport Peoples Dreams shall be informed by up-to-date
information and a clear understanding of the nature and the
scale of the problems which the regeneration programmer
exists to address
Key Objectives:
The key objectives for the ‘Understanding the Problem’
Priority are as follows:
 To achieve a clear and detailed understanding of the
economic problems of Devonport based on up-to-date
information specific to the neighborhood.
 To establish a robust and detailed baseline position
against which future project and programmed activity
can be assessed and reviewed. (this should build on
earlier research and survey work, particularly the
baseline study for this Strategy and the baseline for the
Development Framework).
 To research the underlying issues of long-term
unemployment and understand more clearly the causes
of worklessness in Devonport.
 To encourage project partners and agencies to adopt a
consistent approach to data gathering and monitoring
which focuses on the Devonport neighborhood.
Targets:
The targets against which progress should be judged
for this Priority are:
 set up a survey and local research process within
one year, and update research every two years
 train and employ ten local residents (on a
temporary or part-time basis) per year to assist in
local surveys
 by the end of two years’ experience, consider
establishing a small community research unit as a
business trading across Plymouth.
BUSINES
S
SURVIVA
L
2. BUSINESS SURVIVAL:
Why is Business Survival important?
A healthy and diverse local business community is important to the
welfare of the whole of Devonport. As well as providing a source of
employment for local residents, the services and products of the
business community support the day-to-day needs of the neighborhood,
in addition to generating interest and investment from outside the area.
In deprived areas, the role of local businesses is particularly important
in the regeneration process as the resident population may experience
difficulties in accessing services and products further afield due to
limited transport options.
Local businesses have made a real commitment to the area. In
Devonport, many businesses have invested significantly in their
premises and employees over many years and have developed an
affinity with the area – which is reciprocated by a loyalty from their
customers. Residents appreciate that it is often difficult for businesses to
operate successfully in deprived neighborhoods and, therefore, the
commitment shown by established employers and the contribution they
make to the local area is particularly valued.
Strategic Aim:
 To create the right conditions for Devonport
businesses to survive and grow
Key Objectives:
 The key objectives for the Business Survival
Priority are as follows:
 To commence and sustain a meaningful dialogue
with the local business community which is
committed to understanding the needs of
employers.
 To lobby effectively on key issues that will have a
direct impact on the Devonport business
community.
 To seek to convene and sustain a local business
forum that will connect Devonport businesses
with key initiatives, agencies and sources of
support.
 To proactively engage with Plymouth City
Council in order to identify opportunities for
Devonport businesses in the wider regeneration
priorities for Plymouth.
 To develop and deliver NDC-funded support
packages for existing businesses that are easily
accessible and meet the established needs of
employers (whilst still enabling progress
towards DRC targets).
Targets:
The targets against which progress associated with
the actions developed under this priority will be
assessed are:
 Increased turnover – up by 20% on average in
existing Devonport businesses by 2011
 Stabilized business community – reduced number
of business closures
(both targets will need early and regular research
to confirm baseline numbers and change over time)
3. TRADING ENVIRONMENT:
Why is the Trading Environment important?
Consultations have shown that local businesses are concerned that
the condition and perceptions of the Devonport environment impacts
upon their operations. Attempts to increase trade are hampered by a
wider perception that the quality and range of local services have
diminished in recent times, that the area is generally run-down and
unattractive for customers and that there are certain areas where
personal safety and security are concerns. Providing a safe and
attractive environment is critical to the welfare of existing
businesses and will also be instrumental in aiding efforts to attract
new employment to Devonport.
Investment in the environment will directly benefit existing
businesses – providing a link with Priority Two, Business Survival.
Recent consultation exercises (see Appendix B) reveal that
environmental issues are considered to be particularly important by
local businesses. Even those employers who are not dependant upon
customer visits to their premises cite the poor quality of the local
infrastructure and public realm as priorities for resolution.
Strategic Aim:
To create a safe, vibrant and attractive environment in which to do
business
Key Objectives:
The key objectives for the enhancing the quality of the trading
environment are as follows:
 To ensure that planned improvements (envisaged under the Urban
Village and Devonport Development Framework programmed) create
the opportunity to enhance the vitality of the trading environment.
 To ensure that capital works programmed do not impact negatively
upon the operations of existing businesses.
 In the light of planned developments, to assess the long-term viability
of business districts within Devonport and explore a range of options
for ensuring the continued and successful operation of established
businesses within the new environment.
 To ensure that the views of local businesses are sought in connection
with crime reduction initiatives and other projects that will have an
impact on the physical environment. In this respect, to work towards
achieving business representation on DRC environment and
community safety working groups.
 To consider priorities for investment in the public realm that will
Targets:
The targets against which progress associated with the
actions developed under this priority will be assessed are:
 Increased footfall in retail areas – up by 100% by 2011
 Reduction in number of vacant business premises – down
by 25% by 2011
(both targets will require early and regular research to
provide baseline figures and assessment of change over
time)
4. CREATING OPPORTUNITIES:
Why is Creating Opportunities important?
Although Devonport residents and businesses are affected
by a number of socio-economic problems that are now
ingrained in the neighborhood, there are also a number of
particular opportunities that exist in the area.
Consultations have shown that there are a number of key
employers and sectors where targeted support and
assistance (e.g. through the development of new skills
within the community) would assist in strengthening the
local economy. Special attention should be paid to
creating further opportunities in these fields – thereby
enhancing Devonport’s competitiveness in key areas.
The economic decline of Devonport is linked to an overreliance on traditional industries (such as shipbuilding, port
and dock operations and manufacturing) which now play a
less significant role in the regional economy – employing
fewer people as a consequence. In Devonport, the established
presence of the Royal Naval Dockyard and associated
activities has traditionally been regarded as a mainstay of
the local economy. The relevance of many traditional skills to
other sectors is low – and local people have traditionally
aspired to work within the trades that have been historically
associated with Devonport.
Strategic Aim:
To recognize the inherent strengths of Devonport as a
business location, support key sectors through targeted
assistance and maximize local employment opportunities
Key Objectives:
The key objectives for creating opportunities are as follows:
 To identify potential growth sectors within the Devonport
economy and priorities project development activity to
support these sectors.
 To encourage dialogue with key potential and existing
employers aimed at building an awareness of the factors and
constraints which affect business within growth sectors –
and working together to develop solutions.
 To maximize the training and employment opportunities
associated with the implementation of major regeneration
initiatives in the Devonport area, to the direct benefit of local
residents.
Targets:
The targets against which progress associated with
the actions developed under this priority will be
assessed are:
 Increase business floor space by at least
6,500sqm by 2011
 Increased number and diversity of local
businesses to at least 200 businesses across a
range of sectors (including shops, offices, marinerelated industries, social enterprises, visitor
facilities) by 2011
 Increase in number of jobs in Devonport by at
least 500 jobs by 2011
5. ENTERPRISE DEVELOPMENT:
Why is Enterprise Development important?
NDC partnerships can do much to create the right
conditions for new job creation within their target areas.
Ultimately, it is to be hoped that changed perceptions of
deprived neighborhoods will actually result in increased
inward investment with new companies and businesses
relocating or setting-up in the area. In the meantime, it
may be more realistic (and desirable) to concentrate on the
organic growth of jobs and businesses from within the
existing community. Locally-grown small businesses tend
to demonstrate loyalty to their host communities by
employing local people and making a long-term
commitment to the business location. The nurturing of such
businesses can help to foster an entrepreneurial culture and
further embed the values of investment and employment
within communities.
At the present time, the same factors that combine
to put pressure on existing businesses (see Sections
Four and Five) also impact upon the business
start-up rate in Devonport. It is simply not a
conducive environment in which to establish and
run a business. Measures proposed under Priority
Two, Business Survival, will also support new
business – as will more effective targeting of
advice and guidance (see Section Eight).
Strategic Aim:
To foster, within the Devonport community, an
entrepreneurial spirit that supports business development
and encourages start-ups
Key Objectives:
The key objectives for enterprise development are as
follows:
 To raise awareness of agencies involved in Business
Start-up and enterprise development and improve access
to information.
 In consultation with project partners and relevant
agencies, to identify the opportunities for social and
community enterprise activity associated with DRCsupported regeneration projects.
 To assess the availability of business floor space within
Devonport to meet the requirements of new businesses
and enterprises, in consultation with property
professionals and business advisors (e.g. commercial
property agents, Plymouth City Council estates
department, Business Link etc.).
Targets:
The targets against which progress associated with the
actions developed under this priority will be assessed
are:
 Provide a new business incubation/managed
workspace Centre of around 1,850sqm, with full
range of enterprise support initiatives
 70 more Devonport residents in self-employment by
2011
 At least 5 new social/community enterprises by 2011
 Business start-up rate increased by 20% by 2011
(requires research and monitoring)
6. ADVICE AND GUIDANCE:
Why is Advice and Guidance important?
In order to effect change on the scale envisaged by DRC, it is
necessary to devise and implement project responses that are
proportionate to the issues being tackled. Because Devonport
is experiencing severe deprivation, it will not be enough to
merely roll-out more of the standard provision and support.
Mainstream services need to be shaped to meet the particular
needs of deprived communities – and this is a significant
challenge for established service providers. NDC funding is
made available to deliver additional services and benefits –
not to subsidies current operations. It provides an
opportunity to get at the underlying reasons that certain
areas are disadvantaged and deliver a measured response.
The ways in which different partnerships have responded to
the challenge of bending mainstream services and meeting
local needs demonstrates the wide range of options available
to communities.
In restoring Devonport to a level where it is competitive with
other neighborhoods, the stated intention of key agencies and
strategies is to ‘narrow the gap’. This approach requires a
clear understanding of the particular problems within
Devonport and a willingness to address them in innovative
and creative ways. This Strategy will illustrate ways in which
service providers can meet this challenge whilst still making
progress in meeting their corporate objectives and floor
targets.
Strategic Aim:
To encourage and assist service providers to ‘bend’
mainstream advice and guidance programmers to meet the
particular needs of Devonport residents
Key Objectives:
The key objectives for improving advice and guidance
provision are as follows:
 To ensure that DRC-supported project activity delivers
advice and guidance which is driven by the needs of
Devonport people and is available through a variety of
means that are easily accessible to the local community.
 To encourage service providers to adopt new methods of
delivery and to monitor the impacts of project activity
specifically within the Devonport neighborhood area.
 To reflect in project design and delivery, the need for
focused and resource-intensive methods of engagement
in order to successfully meet the needs of ‘hard to reach’
groups (e.g. long-term unemployed, residents
experiencing ‘multiple deprivations’ – e.g. chaotic
lifestyles, substance misuse etc.)
Targets:
The target against which progress associated with the
actions developed under this priority will be assessed
is:
 Reduced unemployment levels by 137 Devonport
residents by 2011.
7. REMOVING BARRIERS:
Why is it important to Remove Barriers?
In Devonport, there are a disproportionately large number of
people (in relation to the total population) who are
‘economically-inactive’. There are many reasons why people
are not economically-active within their communities – some
are to do with choice and some are down to circumstance. In
deprived communities there are many barriers preventing
active participation in the day-to-day functioning of the area
and access to training and employment opportunities can be
especially difficult. There is a need to develop project responses
which create the opportunity for people to work. This approach
can also be considered to remove excuses not to work.
Our research (see Appendix One) suggests that much of the
unemployment and economic-inactivity in Devonport is long
term in nature and consultations have shown that Devonport
residents face a number of particular obstacles in accessing
training and employment such as care commitments, low
early educational attainment, low aspirations, poor health,
care commitments, ‘chaotic’ lifestyles, cultural barriers, poor
access to transport etc. These personal circumstances prevent
many residents from playing a full and active role in the local
community and can often be insurmountable obstacles to
employment.
Strategic Aim:
To assist Devonport residents to participate fully in the
economic renaissance of their neighborhood by removing
barriers to training and employment opportunities
Key Objectives:
The key objectives for the Removing Barriers Priority are as
follows:
 To understand more clearly the range of issues that
prevent local residents from accessing training and
employment opportunities, and developing tailored
responses that are driven by the needs of the individual.
 To identify the particular needs of the minority ethnic
community and develop a framework for support and
inclusion that will assist full integration with the wider
Devonport business community.
 To develop project responses which are focused on the
needs of small, hard to reach groups whose needs are not
wholly met by existing activities. In this respect, to
recognize the wider value of initiatives that may benefit a
comparatively small number of residents – but actually
address some of the most ingrained problems in
Devonport.
Targets:
The targets against which progress associated with the
actions developed under this priority will be assessed are:
 Reduced unemployment levels to Plymouth average (by
137 people) by 2011
 Increase adult qualifications of 420 additional residents
by 2011
 Increased take-up of employment and training
opportunities by the BME community – up by 50% by
2011.
8. SKILLS DEVELOPMENT:
Why is Skills Development important?
Communities within deprived areas often lack the full range of
skills to enable them to compete effectively for jobs and
investment. This may be due to structural issues within the
local economy – for example, where there has been a
disproportionate reliance on traditional industries that are
now in decline. In such circumstances, the specialist skills that
are abundant within the community may have little or no
relevance to the needs of growing business sectors – where the
bulk of new employment opportunities are to be found. It is
often difficult for communities to adjust to fundamental
change – especially where a particular way of life and type of
employment has traditionally represented the limit of local
ambitions.
Agencies involved in the regeneration of Devonport must
seek to equip residents with the skills that are required in
growth sectors or that are transferable between jobs. The
wider Plymouth sub-region should be regarded as forming
the natural jobs-market for Devonport residents, and
specialist training support will be required in order for local
people to take advantage of new opportunities across the
wider City.
Strategic Aim:
To equip Devonport residents with the skills they need to
compete effectively for jobs in the Plymouth sub-region
Key Objectives:
Progress towards the strategic aim will be made through
focusing on key objectives that are deliverable through the
DRC ‘Devonport Peoples Dreams’ programmer. The key
objectives for the Skills Development Priority are as follows:
 To identify locally-significant sectors that require particular
skills and to work with partners to produce tailored
packages that will meet the needs of employers by ensuring
a supply of adequately trained people within the Devonport
workforce.
 To encourage partners and service providers to identify the
long-term aspirations of their client group in order to
inform future training provision and project activity.
Targets:
The target against which progress associated with the actions
developed under this priority will be assessed is:
 Greater numbers of adults with recognized qualifications.
9. PROMOTING DEVONPORT:
Why is Promoting Devonport important?
For the Devonport economy to become sustainable in the
long-term will require a broader awareness across Plymouth
and the South West of the opportunities associated with the
area. As the regeneration programmer becomes established,
Devonport should aspire to become a top quality business
location – adding a new and distinct offer within the wider
Plymouth sub-region. Targeted and focused initiatives such
as area branding and marketing will assist established local
businesses to raise their profile and will also boost efforts to
attract inward investment to the neighborhood.
The perception of Devonport as a declining neighborhood
needs to be challenged – both within the area and beyond. The
opportunity presented by NDC funding and improvements
envisaged under associated programmers should be regarded
as one which can instill a culture of optimism within the area.
The experience of many local businesses is that the
regeneration programmer has yet to deliver real benefits – and
this skepticism needs to be replaced by an attitude that is
supportive of the work of the DRC and its partners. While this
will only ultimately be achieved through tangible
improvements to the area, it is important to publicize positive
improvements locally, and to "tell the world" about them.
Strategic Aim:
To promote the sustainable future of the Devonport business
community by raising awareness of local development
opportunities, targeting inward investment and publicizing
change
Key Objectives:
The key objectives for the promoting Devonport are as follows:
 To develop an effective strategy for disseminating
programmer and project progress within the Devonport
neighborhood.
 To develop creative approaches to marketing Devonport as
a high quality business environment – both locally and
regionally.
 To ensure that communications are effective – dependent on
the target audience.
Targets:
The target against which progress associated with the actions
developed under this priority will be assessed is:
 Successful implementation of individual
measures/activities proposed under the Communications
Strategy.
10. CHANGING CULTURES:
Why is Changing Cultures important?
As well as being a priority in its own right, the need to change cultures
can also be regarded as a crosscutting theme that should shape activity
across all priority areas. New Deal for Communities provides a unique
opportunity to take a long-term view of the regeneration of deprived
neighborhoods – building capacity and deploying NDC resources over a
ten-year period. The ‘ring fenced’ nature of the funding is unlike other
regeneration programmers and is committed to particular areas where
the scale of social and economic deprivation is such as to demand
intensive and focused corrective action.
In understanding the problems that face Devonport residents and
businesses, it is important to recognize that earlier economic
regeneration initiatives have not been successful in reversing the
fortunes of the area. This is not to say that there have not been
examples of projects that have made a real difference to people’s lives –
however, it is clear that the scale of the economic problems in
Devonport require a greater level of intervention if they are to be
resolved.
Strategic Aim:
To challenge perceptions of Devonport by raising aspirations
and expectations within the community
Key Objectives:
The key objectives for the Changing Cultures Priority are as
follows:
 To re-engage local residents and businesses through
encouraging participation in project activity and
demonstrating the value and importance of their input – both
to themselves and the wider community.
 To ‘champion’ project successes – demonstrating positive
impacts on businesses and individuals – to inspire others to
get involved in the regeneration process.
 To raise awareness of Devonport’s assets and potential –
building on it’s unique heritage and sense of place to restore
civic pride.
 To work with service providers and key organizations to
encourage methods of working and intervention that meet the
particular needs of the Devonport community – and to embed
 With DRC leading by example, to promote a ‘can do’ attitude
to project development and delivery which supports, at an
appropriate level, initiatives that will meet the needs of the
Devonport community in a creative and innovative way. • To
strengthen local partnerships between business and
education providers – encouraging younger Devonport
residents to raise their aspirations from an early age.
 To examine the role of Devonport within the wider Plymouth
sub-region and encourage Devonport residents to access
training and employment opportunities across the City.
Targets:
The targets against which progress associated with the actions
developed under this priority will be assessed are:
 Increased number of economically-active Devonport
residents.
 Greater numbers of school leavers moving into further
Conclusion:
The Employment Strategy builds on the aspirations of the
‘Devonport People’s Dreams’ Delivery Plan to provide a
framework that will guide project activity over the
lifetime of the DRC programmer. It highlights the
priorities for attention and recommends specific
measures that can address the key issues that have
emerged through research and consultation. It has also
been informed by the experience of earlier and current
initiatives – seeking to build on the successes, fill the gaps
and promote new thinking on the way forward.
It will be apparent to those involved in the regeneration
process – just as it is apparent to local residents and
businesses – that turning Devonport around will not be
easy. There is a combination of factors present in the
neighborhood which results in ingrained and complex
However, this should not disguise the fact that there are
significant opportunities present in the local area upon which
the economic renaissance of Devonport can be grounded.
Locally-important sectors and major development projects
across the Plymouth sub-region provide the potential to
generate new, well-paid jobs in Devonport – and, critically, will
also provide the stimulus that encourages people back to (or
into) work.
This Strategy performs the dual tasks of identifying the
problems to be overcome whilst acknowledging the
opportunities that should be embraced. Project activity should
be encouraged that will make obvious links between problems
and solutions – meeting the most pressing needs of local
residents and businesses in a way which encourages their
support for the wider programmed. In this way, Devonport
people will be encouraged to contribute to the regeneration of
their neighborhood through taking action that will improve
BY:
RUKHSAR, SANDIYA,
SOHAIL, ASEEF,
TALHA, SHEERAZ.