Sheffield City Region
Baseline Report
Prepared for Sheffield City Region Local Enterprise
Partnership
September 2013
Preamble
Executive Summary
The Sheffield City Region (SCR) Local Enterprise Partnership commissioned Oxford Economics in
July 2013 to undertake a baseline report summarising the existing evidence, data and findings of
the Independent Economic Review and other relevant reports, publications and submitted
stakeholder evidence.
This report will inform the development of a concise Economic Strategy for SCR.
SCR’s Executive Team and partners worked closely with Oxford Economics to provide, collate,
develop and debate the evidence base to inform this report.
This report aims to provide an open, honest and holistic assessment of SCR’s place within the local
and national economy and identify its unique attributes, good and bad, and most important
emerging messages of relevance to economic strategy development.
Overleaf, we have provided a summary strength, weakness, opportunity and threat (SWOT)
analysis of the SCR. This analysis is a way of filtering the full report, with a view to drawing out a
balanced assessment of the most important messages. As such, this analysis is not an attempt to
identify all the strengths, weaknesses, opportunities and threats within the SCR, but the ones
Oxford Economics has identified as most important.
2
This report draws together evidence from the call for evidence and
Independent Economic Review to highlight the main strengths and
weaknesses of the Sheffield City Region economy
SCR as a place
to grow
business and
invest
Strengths
Weaknesses
-
Accessibility
Low cost of doing business
Space for development
Securing investment from
existing firms
-
-
Skills improving
Universities
-
Collaborative model for
advanced manufacturing
World class research
capability
Cultural amenities, natural
environment, and tourism offer Affordable housing
(Slides 14-21)
-
The skills base
(Slides 22-25)
Innovation &
collaboration
(Slides 26-29)
Quality of life
(Slides 30-33)
Rebalancing &
delivering
sustainable
growth
-
-
Advanced Manufacturing Park
and the Enterprise Zone
recognised as UK leaders
-
-
(Slides 34-47)
Opportunities
(Slides 48-54)
3
-
-
Distinctive sub-regions create
diversity of opportunities within the SCR
Space / land for development
Threats
Entrepreneurialism and
private sector job generation
FDI record
Broadband
High quality office space
-
HS2 opportunity, but benefits only realised
far into future
Robin Hood Airport / airport growth corridor
/ logistics development
Midland Mainline / East Coast electrification
Resilience to
external shocks
Still relatively low share of
highest skill workers
Supply & demand mismatch
Educational attainment
-
Even closer links between universities and
other training providers, and the local
economy
e-learning
-
Other city regions
not standing still
-
More fully realising the underlying
commercial potential from universities and
collaboration
-
Higher education
budget cuts
-
National level comparative advantage in
high value services
Renewed government focus on
manufacturing
Stronger links to neighbouring cities
Ability to be a world-class innovator already
demonstrated in certain niches
Priority sectors not
unique to SCR
Risk of focusing
on areas requiring
public subsidy in
low-carbon sector
Transport developments will reinforce
potential of priority locations
Combined Authority status should
strengthen governance and unlock funding
Devolution will provide more control over
how investment is focussed
Scope to develop Sheffield city centre
Flooding remains
a risk in certain
areas earmarked
for development
Commercial potential not yet
being realised
Perceptions
Quality of life very low in
certain sub-regions
Current strengths in low
productivity sectors
Reliance on public sector
and local demand
-
-
The spatial
dimension
Executive summary
Certain areas isolated from
job opportunities in Sheffield
-
-
Introduction
4
Introduction
The Sheffield City Region
This report draws on information
from a range of sources. Where data
relate to Sheffield City Region, they
are labelled “Sheffield City Region”
or “SCR”. Data relating only to the
Sheffield City Council area are
labelled “Sheffield”.
It is worth noting that when writing
this report, in some cases, we were
constrained by available data
relating to SCR as a whole. For
example, some data/ evidence was
only available at the South Yorkshire
level.
Sheffield City Region key facts 20121
(1) Source: Oxford Economics Local Database
5
Population
1.8 million
GVA
£28,700 million
Employment
810,000
GVA per head
£15,807
GVA per worker
£35,478
This baseline report collates evidence from the call for evidence and
Independent Economic Review to produce a baseline report of SCR’s
current strengths, weaknesses, opportunities and threats
Sources
Independent Economic Review
Submissions to the call for evidence
(over 150 pieces of evidence from around 50 contributors)
Oxford Economics in house databases and models
Focus
Objective evidence to place the SCR in context (comparing to national average,
other city regions)
Identifying what makes SCR unique (or at least different to most other LEP areas)
Identifying the most important messages within the evidence, with a view to
informing a focused economic strategy
It is not
A comprehensive review of every economic indicator or a description of all SCR’s
characteristics
A review of current policies
A set of recommendations for future policies or strategies (although the Economic
Strategy will set out where future efforts should be focused)
Note: The ‘call for evidence’ submissions were key in adding value to this report. For a full list of those
organisations who submitted evidence please see Annex B.
6
Introduction
This baseline report will provide the foundation for the Economic
Strategy which will, in turn, enable SCR to achieve its vision and
deliver its objectives
The March 2013 Sheffield
City Region Economic
Overview proposed a
vision and set of
objectives for SCR
This baseline report is
structured around the six
themes identified in the
vision and objectives,
with the addition of a
seventh theme to take
into account the spatial
dimension
7
1.
2.
3.
4.
5.
6.
(7.
Need to increase GVA and employment
Growing a business and investment
Skills base
Collaboration and innovation
Quality of life
Rebalance and delivering sustainable economic growth
The spatial dimension)
Introduction
1) The need to increase GVA and employment
8
SCR is expected to lose ground compared to other northern
LEP areas over the coming decade
SCR achieved strong GVA growth between 1998 and 2007,
but the OE baseline forecast is for growth at below the
national rate going forward
GVA growth 1998-20211
170
SCR has enjoyed mixed fortunes since 1998 in terms of
employment
Employment growth 1998-20211
1998=100
120
1998=100
UK excl. London
Leeds City Region
160
Greater Manchester
UK excl. London
115
North Eastern LEP
150
Greater Manchester
Leeds City Region
Sheffield City Region
140
Sheffield City Region
110
North Eastern LEP
Liverpool City Region
Liverpool City
Region
130
GVA & employment
105
120
100
110
95
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
100
The charts in this section of the report show Oxford Economics’ ‘baseline’ or ‘policy neutral’ forecasts, i.e. what could happen if there
were no significant changes in policy, and the structure of local economies evolves broadly in line with past trends
(1) Source: Oxford Economics local economic model. Oxford Economics GVA and employment forecasts differ slightly from those by Experian, but the
broad underlying messages remain the same
9
GVA per head and per worker lag behind comparator areas and
have displayed little sign of converging since 1998
Despite relatively strong GVA growth, GVA per head
remains significantly below the national average and other
northern city LEP areas
GVA per head 1998-20211
24,000
£ per head
(2005 prices)
22,000
Productivity levels in SCR lag benchmark regions
GVA per worker 1998-20211
45,000
£ per worker
(£2005 prices)
UK excl. London
43,000
UK excl. London
Greater Manchester
41,000
Greater Manchester
Leeds City Region
20,000
Leeds City Region
39,000
North Eastern LEP
North Eastern LEP
37,000
18,000
Liverpool City Region
Sheffield City Region
16,000
Liverpool City Region
35,000
Sheffield City Region
33,000
31,000
14,000
29,000
12,000
27,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
(1) Source: Oxford Economics local economic model
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
25,000
10,000
10
GVA & employment
A lack of jobs is holding SCR back, and there will need to be a
significant uplift in private job creation to offset the ending of public
sector jobs growth
Unemployment remains a challenge, although there is a
mixed picture across SCR’s sub-regions
Claimant count unemployment rate 1998-20211
GVA & employment
Employment growth in SCR between 1998 and 2008 was
entirely attributable to the public sector
Net employment change 1998-20082
%
6
80,000
Net Priv ate and Public
Sector Growth
Net Public Sector Growth
60,000
5
Doncaster
Barnsley
Sheffield
4
40,000
20,000
Rotherham
UK
Chesterfield
3
-20,000
Bassetlaw
Bolsover
2
-40,000
North East Derbyshire
Derbyshire Dales
1
Private
0
(1)
(2)
11
Source: Oxford Economics local economic model
Source: Independent Economic Review
Public
All economic forecasts are subject to uncertainty, but SCR may be
poorly equipped to cope with unforeseen shocks
GVA & employment
SCR is one of the least resilient LEP areas in Experian’s 2012 Resilience Index1
Experian Resilience Index for LEP Areas, 2012
The Experian index
defines resilience as
“the ability of an area to
withstand and respond
to shocks in the
external environment”.
SCR’s poor
performance is
associated with lower
levels of enterprise,
entrepreneurship and
self employment; higher
vulnerability to long
term unemployment;
lower rates of labour
market participation;
and lower earnings.
(1) Source: The LEP Network (2012) Review of Local Enterprise Partnership area economies in 2012
12
Research by the LEP Network highlights a number of areas of concern
for SCR
SCR
England
Rank (1 = best)
Above Average Performance1
Employment in manufacturing
Economic output per head change, 1998-2008
11.6%
54.5%
8.9%
60.6%
13th out of 39
13th out of 39
Average Performance1
Employment in top output growth sectors
Employment in high-medium technology industries
48.1%
3.9%
49.8%
4.4%
17th out of 39
17th out of 39
17.1%
N/A
24th out of 39
46.3%
9.1%
25.0%
13.7%
£15,000
3.8%
34.1%
54.8%
7.5%
31.1%
11.1%
£21,000
10.6%
30.0%
33rd out of 39
33rd out of 39
33rd out of 39
33rd out of 39
34th out of 39
35th out of 39
39th out of 39
6.4%
37.4%
39th out of 39
Employment in export-intensive industries
Below Average Performance1
Employment in private and other services
Unemployment rate, March 2011
Adults with degree-level qualifications
Adults with no qualifications
GVA per head, 2009
Patents per 100,000 residents, 2007
Share of unemployment claimants aged 18-24
Share of total turnover in foreign-owned enterprises
Source: LEP Network Review of Local Enterprise Partnership Area Economies 2012
(1)
13
GVA & employment
Source: LEP Network Review of Local Enterprise Partnership Area Economies 2012 (also presented in Independent Economic Review)
2) Sheffield City Region as a place to grow a
business and invest
14
Grow business
& invest
SCR’s accessibility is a significant asset
Travel times by road from Sheffield compare favourably
with other major cities1
To
London
To
Birmingham
To
Leeds
To
Manchester
Sheffield
2h 58mins
1h 35mins
51mins
1h 12mins
Birmingham
2h 8mins
N/A
1h 56mins
1h 35mins
Leeds
3h 20mins
1h 56mins
N/A
57mins
Manchester
3h 31mins
1h 35mins
57mins
N/A
Road
Rail journey times also compare favourably and could
improve further with HS21
Rail
(with HS2)
To
London
To
Birmingham
To
Leeds
There is significant growth potential at Robin Hood airport
• The airport’s masterplan forecasts up to 5,000 jobs in the
Airport Business Park by 2016
• From 2015, the FARRRS project will provide a new highway
from M18 junction 3 to Robin Hood airport, with links to the
Inland Port development
• Doncaster Council propose developing a multimodal logistics
hub along the developing Airport Growth Corridor
DfT’s constrained forecast suggest strong passenger
growth after 2030 as other airports hit capacity constraints
Million terminal passengers per annum2
To
Manchester
2011
Sheffield
2h 8mins
(1h 19mins)
1h 11mins
(48 mins)
40 mins
(20 mins)
51 mins
Birmingham
1h 24mins
(49 mins)
N/A
1h 58mins
(57 mins)
1h 28mins
(41 mins)
2030
Leeds
2h 13mins
(1h 22mins)
1h 58mins
(57 mins)
N/A
55mins
2040
Manchester
2h 9mins
(1h 8mins)
1h 28mins
(41 mins)
55 mins
N/A
2050
2020
Electrification of the Midland Mainline and enhancements to the
East Coast mainline will enable faster and increased rail
connections from Chesterfield, Doncaster and Sheffield by
20193
(1)
(2)
(3)
15
Source: Google Maps; HS2 – Engine for Growth, available at : http://www.hs2.org.uk/
Source: Department for Transport (2013) UK Aviation Forecasts, available at: https
://www.gov.uk/government/uploads/system/uploads/attachment_data/file/223839/aviation-forecasts.pdf
Source: SYPTE response to call for evidence
0.8
0.8
0.9
1.1
1.3
1.3
Constrained (central)
Unconstrained
1.7
2.3
2.1
6.5
Grow business
& invest
Roads are less congested than most benchmark areas, and
congestion has eased during the downturn
Average journey times on A roads during the morning peak1
2
Change 2008/09 to 2011/12, per cent
Greater Manchester
1
Leicester
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
-1 West Midlands County
South Yorkshire
Merseyside
-2
West Yorkshire
-3
-4
Tyne and Wear
Average peak journey time 2011/12, minutes per mile
16
Nottingham
0
-5
(1)
Bristol
Source: Department for Transport (2013) Congestion and Reliability Statistics, available at:
https://www.gov.uk/government/organisations/department-for-transport/series/road-congestion-and-reliability-statistics
3.6
3.8
4.0
The cost of doing business is potentially a USP for SCR, but there is
a need for more evidence and a stronger narrative
Average wages in SCR are 61% those in London, and also
lower than in Manchester, Leeds, Birmingham and
Liverpool
2012 average workplace based wages1
£490
Office rents are 58 per cent lower than in London. Total
office occupancy costs are 39 per cent lower than in
London2
Q2 2013 Prime headline and net effective rents, £ sq. ft.3
£700
£470
£450
£430
£410
£390
£370
£350
Greater
London
(1)
(2)
(3)
17
Greater
Brimingham
and Solihull
Greater
Manchester
Leeds City
Region
Grow business
& invest
Liverpool City North Eastern Sheffield City
Region
Region
Source: Oxford Economics local economic database
Sheffield City Region Green Investment Bank Self Assessment
Knight Frank Research (2013) Sheffield Offices Market update Q2 2013 , available at: http://my.knightfrank.co.uk/researchreports/sheffield-(romp).aspx
There is ample land available for development, but SCR lacks a highquality city centre office district
There is a small undersupply of office space in Sheffield,
but there is a lack of high-quality Grade A space suitable
for large companies
Bulk class per business versus rateable value 20081
¾
(1)
18
Grow business
& invest
Sheffield has more than double the median amount of
vacant or derelict land per capita amongst English cities
Vacant and derelict land and buildings1
In Sheffield, nearly 75 per cent of major planning applications are decided within 13 weeks, a greater proportion
than in all but one of the core cities1
Source: Centre for Cities (2011) Advancing Ambitions: Creating a sustainable economic future for Sheffield
Low broadband speeds hinder business activity in rural areas1
Grow business
& invest
Whilst 40% of Peak
District properties
(theoretically) have
access to broadband of
up to 7.5mbps, 34%
receive speeds less
than 2mbps and 17%
receive speeds of less
than 1mbps.2
(1) Table from Centre for Cities (2013) Small Business Outlook 2013 , available at: http://www.centreforcities.org/assets/files/2013/13-07-10Small-Business-Outlook-Final.pdf.
Based on underlying data from Ofcom
(2) Source: Peak District Partners response to call for evidence
19
A low business density and start-up rate suggest a lack of
entrepreneurialism within the SCR
Business density in Sheffield is amongst the lowest of all
core cities
Stock of businesses per 10,000 population 20121
Grow business
& invest
Business density is particularly low amongst those sectors
earmarked to drive future growth3
Exceeds or is close to National Average
Production
Motor trades
Transport & storage (inc. postal)
70-90% of National Average
Retail
Construction
Wholesale
Accommodation & food services
Arts, entertainment, recreation
Less 70% of National Average
Business administration / support services
Finance & insurance
Property
Professional, scientific & technical
Information & communication
Per 1,000
working age
residents
%
National
Average
%
Excluding
London
4.0
1.9
2.0
107%
98%
98%
100%
90%
94%
6.3
5.7
2.6
3.2
3.2
90%
83%
82%
78%
70%
90%
81%
84%
79%
74%
2.8
1.0
1.4
5.0
1.9
62%
61%
61%
53%
43%
65%
69%
67%
58%
49%
Source: Business Demography
A low rate of business start ups and
deaths suggests a lack of
entrepreneurial behaviour within the
SCR2
0.90
England = 1
0.85
0.80
0.75
0.70
0.65
0.60
Birth Rate Relative to England
0.55
Death Rate Relative to England
0.50
2004
2005
2006
(1) Source: Sheffield Economic Monitor 2012
(2) Source: Oxford Economics analysis based on data presented in the Independent Economic Review
(3) Source: Independent Economic Review, based on information from Business Demography
20
2007
2008
2009
2010
2011
SCR has a disappointing record in attracting investment. Existing
investors are the main source of growth
SCR has a disappointing record in attracting FDI
UKTI jobs created through FDI, 2012-131
3,000
2,500
2,000
1,500
Grow business
& invest
There is little data on investment by domestic firms, but
figures for major investment projects by both foreign and
domestic investors do not suggest domestic investment is
compensating for a lack of FDI
Investment projects by foreign and domestic investors that
generated 20 jobs or more, 2011/122
Local Enterprise Partnership
Jobs
Projects
North East LEP
4,165
15
Greater Manchester
2,786
15
Stoke & Staffordshire
2,637
12
London
2,290
10
Liverpool City Region
1,935
8
Coast to Capital
1,560
4
Tees Valley
1,498
9
Leeds City Region
1,401
12
Sheffield City Region
1,120
3
Greater Birmingham
1,094
7
1,000
500
-
More detailed analysis of UKTI projects reveals SCR has
enjoyed success in attracting additional investment by
existing investors
92% of 26 project wins to SCR were by existing investors
83% of jobs gained were in expansion projects rather than new projects
(1)
(2)
21
Source: UKTI
Source: East West Locations / Breeze Strategy analysis on behalf of North East LEP
3) The skills base
22
Despite recent improvements, skills remain unexceptional and are
not well matched to local employer needs
Skills are improving, but still lag the
national average and the strongest
LEPs
The proportion of Sheffield firms
reporting skills gaps is amongst the
highest in the country2
Working age residents with NVQ4+ skills1
Skills
Analysis by the OECD suggests
Sheffield is characterised by a skills
surplus. Other major SCR centres
are in a low skills equilibrium4
40%
35%
30%
25%
20%
15%
10%
2004
2005
2006
2007
2008
2009
2010
2011
2012
Top Performer within peer group
England
SCR
Bottom performer in peer group
Sheffield
Barnsley, Doncaster, Rotherham
Proportion of vacancies that are hard to fill3
England
SCR
23%
45%
Despite a good supply of high-skill workers from its
two universities, Sheffield’s labour market is
characterised by low wage/productivity/skill jobs.
Many of those graduating from Sheffield universities
are unable to find jobs locally.
Chesterfield College’s business advisers notes that
across Chesterfield and North East Derbyshire
degree educated employees often have skills not
relevant to their job5
(1) Source: Independent Economic Review (2) Source: Centre for Cities (2013) Small Business Outlook 2013 , available at:
http://www.centreforcities.org/assets/files/2013/13-07-10-Small-Business-Outlook-Final.pdf. Based on data from the Employer Skills Survey on the
incidence of skills gaps (3) Sheffield City Region Skills for Growth Partnership (2013) The scale of our ambition workshop (4) Source: OECD (2012)
Skills for Competitiveness : Country Report for United Kingdom , available at: http://www.oecdilibrary.org/docserver/download/5k9bb1vc6skf.pdf?expires=1377609152&id=id&accname=guest&checksum=05F305C3935114BBA2668C07FFDE3511
(5) Source: Chesterfield College response to call for evidence
23
The SCR’s two universities are a significant asset and produce around
19,000 graduates each year. But could more be done to match courses
and graduates to local needs?
•
•
Skills
Member of the Russell Group of leading UK higher education institutions
Publically funded research income of £150m per year, and £45m of industrially funded research
The University of Sheffield performs well in subjects linked to SCR’s priority sectors
QS World Rankings1
Environmental science
Materials sciences
Civil & structural engineeering
Mechanical, aeronautical & manufacturing engineering
Chemistry
Biological sciences
Electrical and electronic engineering
Chemical engineering
Physics
•
•
UK rank
4
6
7
8
9
10
11
12
13
World rank
22
51-100
51-100
51-100
51-100
51-100
101-150
101-150
101-150
Third largest university in the UK. Fifth most popular university for UCAS applications
68 per cent of research rated international quality or above (RAE 2008)
19% of Sheffield Business School placements were in the SCR in 2012-13
2
18% of 2010-11 graduates from Sheffield Business School employed in Sheffield and Doncaster postcode areas
2
2010-11 graduates from the Faculty of Arts, Computing and Sciences employed in Sheffield and Doncaster
24% ofpostcode
areas
(1)
(2)
24
Source: Independent Economic Review
Source: Sheffield Hallam University
2
Below-average school performance directly impacts the skills of those
entering the labour market, and makes it more difficult to attract skilled
professionals to the area
Per cent of pupils achieving 5+ GCSEs at grades A* to C (including English
and Maths) 20121
Skills
Per cent of SCR schools in the top and bottom 10 and 20 per cent nationally1
25
70.0%
20
60.0%
15
50.0%
10
40.0%
5
30.0%
0.0%
14%
25
England
SCR
Bottom Performing
Authority
SCR
Engl and
Bottom10%
Bottom 20%
Secondary Schools
of adults have no qualifications (SCR ranks 33 out of 39 LEPs on this measure)1
Source: Independent Economic Review
Top 20%
Top 10%
Pri mary Schools
Top Performing
Authority
(1)
Bottom10%
10.0%
Bottom 20%
20.0%
Top 20%
Top 10%
0
4) Innovation & collaboration
26
SCR has significant innovative potential, but this is not yet being
fully realised
Innovation
& collaboration
Research by the Work Foundation identifies Sheffield as having ‘Innovation Potential’1
High performing innovators
High GVA, high productivity, strong private sector led
growth, specialised in a range of knowledge intensive
activities
Service sector innovators
High GVA, high productivity, specialised in high tech
services and business services, and highly skilled
Technological innovators
High GVA , high productivity, and specialised in hightech manufacturing
Innovative potential
Evidence of key sector strengths in either services or
high tech manufacturing but relatively low GVA and low
wages
Low innovation cities
Below average GVA and productivity, low skilled,
negative private sector jobs growth and over-reliance of
the public sector for jobs and growth
R&D spend in Sheffield’s manufacturing sector is significantly below the national average2
Centre for Cities R&D intensity rating
Sheffield
National average
(1)
(2)
27
1.9
2.9
The Centre for Cities estimates R&D intensity by
weighting employment in manufacturing subsectors by the proportion of profits spent by that
sector at the national level
Source: The Work Foundation (2011) Streets Ahead: what makes a city innovative?
Source: Centre for Cities (2011) Advancing Ambitions: Creating a sustainable economic future for Sheffield
The University of Sheffield is well established in the second tier of UK
universities, but some cities with lower research ratings have more
R&D firms
Research Assessment Exercise Ratings versus R&D companies1
Reading
Surrey
Birmingham
Sheffield
Edinburgh H-W
(1)
28
Source: University of Sheffield and Sheffield Hallam University (2010) New Industries New Jobs - Shaping the Future of the Sheffield City
Region, available at: http://www.sheffieldcityregion.org.uk/wpcontent/themes/lepress/Downloads/Shaping%20the%20Future%20of%20the%20SCR%20Economy%20January%202010.pdf /
Innovation
& collaboration
Research by NESTA into high-growth firms does not place SCR
cities amongst the strongest performers
Innovation
& collaboration
NESTA Geography of Growth results1
Top three sectors 2007-10
NESTA define high-growth
as:
- Surviving a three year
period (2002-05, 2005-08,
and 2007-10)
- Employing 10 or more
people at start of the
period
- Average annual
employment growth of
more than 20 per cent
over the three-year period
(1) Source: http://www.nesta.org.uk/home1/assets/features/geography_of_growth
29
Sheffield
Other business services
Manufacturing
Construction
Doncaster
Hotels & restaurants
Retail
Leisure
Barnsley
Other business services
Manufacturing
Construction
5) Quality of life
30
Quality of life is a selling point for SCR, although some areas within
SCR are still subject to high levels of deprivation
Average house prices are lower than in benchmark cities
Average house prices 20111
£200,000
Quality of life
Housing in SCR is relatively affordable, even once low
wage levels are taken into account
Average house price / average earnings, 20111
£180,000
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
£160,000
Greater Brimingham and Solihull
£140,000
£120,000
Leeds City Region
£100,000
Greater Manchester
£80,000
£60,000
Sheffield City Region
£40,000
Liverpool City Region
£20,000
£0
North Eastern
Greater
Brimingham
and Solihull
Leeds City
Region
Greater
Liverpool City Sheffield City North Eastern
Manchester
Region
Region
Some areas of SCR are subject to significant deprivation
Indices of Deprivation, rank of most deprived locality within
district out of 32,482 English localities (lower number indicates
greater deprivation)3
Sheffield
Doncaster
76
Across the SCR as a whole, crime rates compare
favourably with other Northern LEP areas
Total criminal offences, 2012/132
700
Crimes per 10,000
people
650
118
600
Bassetlaw
Rotherham
Barnsley
Chesterfield
185
550
230
432
500
1,041
450
Bolsover
NE Derbyshire
Derbyshire Dales
(1)
(2)
(3)
31
1,837
400
3,010
3,600
Leeds City
Region
Greater
Brimingham
and Solihull
Greater
Manchester
Source: Oxford Economics Local Database
Source: Home Office (2013) Crime Statistics, available at: https://www.gov.uk/government/publications/police-recorded-crime-open-datatables
Source: ONS Neighbourhood Statistics. Data are for lower layer super output areas
Sheffield City Liverpool City North Eastern
Region
Region
Leisure and cultural amenities, and the surrounding natural
environment, are a USP
SCR is positioned next to the Peak District National Park, one of the
most visited national parks in the world. Potential for it to be one of
the most cycle-accessible national parks
Sheffield is the most wooded city in Britain
Sheffield has a diverse range of museums and galleries and the
Showroom Workstation complex, which includes one of the largest
independent cinemas in Europe
Largest theatre complex and best theatre outside of London1
Leisure assets include international swimming and diving facilities at
Ponds Forge and the English Institute of Sport
(1) http://www.bbc.co.uk/news/uk-england-south-yorkshire-20892038
32
Quality of life
Consultations with firms in the healthcare sector highlighted that
perceptions remain a challenge1
"We just don't shout about
what's going on here. I see other
locations making far more noise
when they have far less of a
story than Sheffield“
"Selling Sheffield is still a major
issue. It's a great place to live
and work with plenty going on
and you've got the Peak District
practically in your back-yard"
"to those who've never
experienced it for themselves, it's
still a run-down industrial city with
all the problems of twenty years
ago. That makes recruiting senior
people from down south a major
problem.“
(1)
33
Source: Breeze Strategy (2011) Maximising Opportunities from Healthcare Technologies in the Sheffield Region
Quality of life
6) Rebalancing and delivering sustainable
economic growth
34
This section summarises evidence on a cross-sector basis, and then identifies
the principle strengths, weaknesses, opportunities and threats of individual SCR
sectors. A number of cross-cutting issues have been identified
Rebalancing
The Independent Economic Review notes that the SCR priority sectors cover the large majority of the private employment
base. It suggests prioritising those which:
Operate in national and international markets
SCR has expertise, facilities and assets, a strong business base and access to growth markets
These are:
Financial, professional and business services
Creative and digital
Advanced manufacturing and materials, and healthcare technologies
Low carbon
Logistics
From reviewing the evidence and discussions with local stakeholders, Oxford Economics have noted the following issues that
could warrant further discussion:
What is meant by “priority”? Can nine sectors which cover the large majority of the private employment base all
be “priorities”?
What are the overall goals (increase in GVA, lower unemployment etc.) that the priority sectors are building towards?
Should there be priority sectors at all, or should the LEP focus its efforts on developing overall competitiveness and
attractiveness to high-growth firms?
Some of the sectors are very broadly defined. For example, business, professional and financial services is likely to
include a range of higher and lower productivity activities
If there are to be priority sectors, consideration should be given to how and when they should be reviewed to enable SCR
to remain responsive to broader economic developments
What are the policy implications for potential interventions which would promote the priority sectors?
Should there be a distinction between primary wealth generation sectors and secondary support sectors?
35
Current areas of specialisation are concentrated in lower productivity
sectors1
Location quotients measure an economy’s degree of specialisation relative to the national average. A
value greater than 1 indicates SCR is more specialised in a particular sector than the country as a whole
(1) Source: Leeds City Council Regional Economic Intelligence Unit submission to call for evidence
36
Rebalancing
Sheffield is more reliant on local markets than other large northern
cities, although certain sub-sectors are expanding exports
Real wage growth, 2007-2011
Sheffield is more reliant on the local market than other major northern
cities. Local reliance is much greater in Barnsley and Doncaster1
There was little change in the destination of
South Yorkshire outputs between 2000 and
2010, although metals and medium-knowledge
intensive manufacturing firms have increased
the share of output exported outside the EU
Destination of exports from South Yorkshire3
2000
Other UK Other EU
More reliant on local markets
A 2013 survey by the South Yorkshire Chambers of Commerce suggests
more could be done to encourage exporting2
60 per cent of firms that do not export stated their product/service was not suitable for export
35 per cent of firms that do not export cited barriers, such as cultural and language issues,
information gaps, and access to contacts and agencies, despite the host of support available
from the Chambers of Commerce and UKTI
(2)
(3)
37
2010
% of establishments operating primarily within the local market, 2011
(1)
Rebalancing
Rest of
the World
Total production
87%
5%
8%
Metals and metal products
60%
12%
28%
Financial and business services
98%
2%
0%
73%
12%
15%
74%
14%
13%
73%
10%
17%
Agriculture
89%
7%
4%
Total production
89%
5%
7%
Metals and metal products
47%
8%
45%
Financial and business services
94%
6%
0%
77%
9%
14%
69%
11%
20%
70%
9%
21%
89%
9%
3%
High Know ledge Intensive
Manufacturing
Medium-High Know ledge
Intensive Manufacturing
Medium-Low Know ledge
Intensive Manufacturing
High Know ledge Intensive
Manufacturing
Medium-High Know ledge
Intensive Manufacturing
Medium-Low Know ledge
Intensive Manufacturing
Agriculture
Source: Centre for Cities (2013) Small Business Outlook 2013 , available at: http://www.centreforcities.org/assets/files/2013/13-07-10-SmallBusiness-Outlook-Final.pdf
Source: Independent Economic Review, using data from Chambers of Commerce survey
Source: Independent Economic Review, based on original data from Dutch Environmental Assistance Agency
The highest productivity sectors represent a relatively small number of
jobs within SCR. The strongest employment growth is forecast in lower
productivity sectors1
The size of the bubble indicates current employment
in each sector
Sectors in red are GVA drivers
Sectors in green are large employers (support sectors)
Sectors in blue are job drivers
(1) Source: Experian
38
Rebalancing
Baseline forecasts by Experian suggest employment growth to 2020
will be concentrated in the service sector
In absolute terms, the largest number of new jobs are
expected to come in business and financial services,
and a range of lower value service activities
SCR sectors with net employment growth, 2013-20211
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
(1) Source: Independent Economic Review based on Experian forecasts
39
Rebalancing
Employment is expected to decline in a number of the
SCR’s priority sectors
SCR sectors with net employment decline, 2013-20211
-1,000
-2,000
-3,000
-4,000
-5,000
-6,000
-7,000
-8,000
-9,000
-10,000
Manufacturing sector SWOT overview
• Advanced Manufacturing Park
• Advanced Manufacturing Research Centre (AMRC) with
Boeing – experienced in collaborating with major private
sector partners, world class manufacturing facilities, expertise
• Top UK Enterprise Zone for modern manufacturing and
technology2 (15 occupiers and 228 new jobs since April 2012)
• Current business stock, including Tata, Outokumpu, Sheffield
Forgemasters
• Brands: Made in Sheffield and Sheffield Steel
• Areas of specialism: high-precision engineering, metal and
alloy projection, high quality design and manufacturing
• Supply high-growth industries such as nuclear energy,
offshore wind, low carbon energy, aerospace, automotive,
defence, medical, and oil and gas
SCR has a clear specialisation in low and med-low tech manufacturing
Employment share of low and med-tech manufacturing, 20111
9.0
Rebalancing
W
O
T
• Employment focused in low-tech manufacturing
• Renewed focus within central government on developing the
manufacturing sector and export markets
• Best performing sector nationally for FDI in 2012/13
• Further employment reductions expected
Other northern LEP areas have up to twice the SCR’s employment share
in advanced manufacturing
Employment share of advanced manufacturing, 20111
7.0
62,000
6.0
% of total employees in sector
% of total e m ployees in sector
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
40
4.0
20,300
3.0
2.0
1.0
0.0
Sheffield
CR
(1)
(2)
5.0
D2N2
Leeds CR
Gr.
Tees Valley
Manchester
Source: Independent Economic Review
Rated by Financial Times fDi magazine
NE LEP
Cheshire &
W.
Cheshire &
W.
NE LEP
Tees Valley
D2N2
Gr.
Leeds CR
Manchester
Sheffield
CR
Creative and digital industries SWOT overview
• Data centres, building on the strengths noted above
• Public services transformation (shift to cloud)
• Collaboration with other priority sectors:
• telehealthcare and remote diagnostics could help
control healthcare costs
• low carbon sector
• advanced manufacturing, including simulation and
optimisation of techniques and processes
• Strong export and FDI potential
• University of Sheffield establishing the Advanced Digital
Research Centre, based on the AMRC model. Will have
close links to the healthcare technologies sector
• Benefit from CDI growth in Manchester and Leeds
• Scope for greater collaboration between the two universities,
which have complementary expertise: Sheffield Hallam is
strong in arts, design, communications and technology, but
lacks a computer science department, an area in which the
University of Sheffield has expertise
(1) Source: Independent Economic Review
41
W
• Sector is relatively small in SCR compared to other northern
cities
• Neighbouring cities, especially MediaCityUK in Salford. Risk of
winner takes all?
• Creative industries are particularly vulnerable to changes in
economic conditions and other sectors
T
The CDI sector is under-developed relative to other northern LEP areas
and the national average
Employment share of CDI, 20111
8.0
7.0
% of total em ployees in sector
• Two universities provide research and graduates
• Site availability and power supply
• Sub-sector strengths include: IT and software, interactive
media, e-learning, design, cloud adoption
• CDI Sector Group suggest the sector is growing faster in SCR
than anywhere else in UK in terms of specialist companies and
new jobs
Rebalancing
6.0
5.0
27,600
4.0
3.0
2.0
1.0
0.0
Cheshire &
Gr.
W.
Manchester
NE LEP
Leeds CR Tees Valley
D2N2
Sheffield
CR
Healthcare technologies SWOT overview
• Growing and ageing population
• Potential for even stronger links between universities,
healthcare providers, teaching hospitals, manufacturers,
materials technology firms, and digital design
• Links to the CDI sector, particular around healthcare
communications technology
• University of Sheffield plans to develop a Medical Advanced
Manufacturing Research Centre, which could encourage
medical technology companies to local in the SCR
• Centre for Assistive Technologies and Connected Healthcare
brings together a world class multi-disciplinary research group
• South Yorkshire and Bassetlaw designated as one of seven
pathfinder sites to scale up deployment of assistive
technologies.
(1) Source: Independent Economic Review
42
• 2011 research by Breeze Strategy notes that even in those niche
areas where SCR appears to be strong, “SCR would not be
regarded as a stand-out global or even national hotspot, in fact
there appears to be more of a cluster in the neighbouring Leeds
city region”
• Sector is very small in absolute terms
W
• Healthcare and medical technology being targeted by almost
every major city region in the world
• Low cost locations, particular in Asia
T
SCR has an employment specialism in healthcare technologies
compared to the national average and a number of other northern LEP
areas, although the sector still employs only 3,100 people
Employment share of CDI, 20111
0.8
0.7
% of total em ployees in sector
• Employment specialism compared to the national average
• World class research at universities
• National Centre for Sports and Exercise Medicine brings
together local government, universities, the NHS and
businesses to work towards reducing healthcare costs
• Strong collaboration between international companies, local
companies, and universities
• Advanced manufacturing driving innovation in medical devices
and other healthcare technologies, building on local skills and
expertise (Breeze Strategy)
• Sub-sector specialisms include advanced wound care,
orthopaedics, manufacture of surgical instruments and
medical equipment
• Highest concentration of medical device companies in UK
Rebalancing
0.6
3,100
0.5
0.4
0.3
0.2
0.1
0.0
Cheshire &
W.
NE LEP
Sheffield
CR
Leeds CR
D2N2
Gr.
Tees Valley
Manchester
Rebalancing
Low carbon industries SWOT overview
S
W
• SCR less specialised in this sector than other northern regions
The employment share of low carbon industries in SCR is slightly below
the national average
Employment share of low carbon industries, 20111
2.5
% of total em ployees in sector
• Sheffield is at the forefront of the UK’s efforts to implement lowcarbon energy generation (see next slide)
• Expertise in advanced manufacturing and metals brings
opportunities to develop and supply new products to the
nuclear, wind, tidal and geothermal sub-sectors
• R&D capability includes Siemens UK Wind Power Research
Centre at the University of Sheffield and the Advanced
Manufacturing Research Centre
2.0
9,600
1.5
1.0
0.5
0.0
Tees Valley Cheshire &
W.
• National and local policies to decarbonise growth will present
opportunities to develop new goods and services
• Retrofitting of public buildings, housing stock
• Potential to develop specialist research, training and support
services to reduce carbon emissions across all sectors
• Potential to develop links to other SCR priority sectors
• National and EU funding mechanisms to decarbonise the
economy
• Innovas suggest SCR could position itself as a manufacturing
and development centre for the UK low carbon sector
NE LEP
Leeds CR
Shef field
Gr.
CR
Manchester
Research by the Centre for Low Carbon Futures identified potential
win-win investments across the SCR sub-regions2
T
• Risk of focussing on activities which require public support
• Risk of focussing too locally
(1) Source: Independent Economic Review
(2) Source: Centre for Low Carbon Futures (2013) The Economics of Low Carbon Cities - A Mini-Stern Review for the Sheffield City Region,
available at: http://www.lowcarbonfutures.org/sites/default/files/SCR%20Mini%20Stern%20Final%20Report.pdf
43
D2N2
SCR is at the forefront of the UK’s efforts to implement low-carbon
energy infrastructure
Sheffield has the largest district heating network in the UK1
• Produces electricity and heat from un-recyclable waste. Handles 225,000 tonnes of waste per
year - less than 17 per cent of Sheffield’s waste is sent to landfill
• Up to 60 MW heat supplied to 140 buildings, then network continues to expand. Up to 19 MW of
electricity generated for National Grid
• Emissions monitored and data published
• Plan to re-cycle ‘waste’ heat from industry into the network
The EON biomass power station is working with Sheffield City Council to develop
a self-sufficient energy plan1
• 30MW renewable energy plant, operational from mid 2014, supporting 30 full time jobs
• Will convert UK sourced recycled waste wood into electricity, reducing CO2 emissions by
80,000 tonnes per year
• Onsite visitor centre and community benefits fund worth £25,000 a year
Rotherham is home to the largest hydrogen mini grid system in the UK1
• First system to use both high pressure hydrogen for vehicle re-fuelling and a fuel cell to generate
electricity
• Comprises an electrolyser fed by a 325kW wind turbine
• HMGS will use the facility to develop a commercial model for hydrogen generation systems,
power-to-gas and refueling stations
(1) Source: Low Carbon Sector Group (2013) Low Carbon Sector Highlights – Sheffield City Region
44
Rebalancing
Financial & business services SWOT
overview
S
W
O
T
• Low cost base and fast access to London
• No high quality business district in the SCR to attract corporate
and HQ investments
• Tendency to focus on lower value activities, e.g. back office
functions
• The F&BS sector in SCR is characterised by unrealised potential
• The UK has an international comparative advantage in this sector
and strong growth is expected at the national level
• Competition to attract financial and business services activity is
fierce amongst British cities
• Risk of continuing reliance on lower value elements of F&BS
S
W
• Growth generates additional traffic and can be detrimental to the
living environment
• Doncaster Inland Port – UK’s largest port and logistic complex;
5.75m sqft of rail linked distribution warehousing and intermodal
container facility, with direct access to motorway and direct rail
to port container services
• Macro trend for continued growth in world trade and internet
shopping
• Expansion potential at Robin Hood airport
O
SCR is strongly specialised in logistics
Employment share of the logistics sector, 20111
16.0
4.5
14.0
4.0
12.0
68,300
10.0
8.0
6.0
4.0
2.0
0.0
28,300
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Cheshire &
Gr.
Leeds CR
W.
Manchester
(1) Source: Independent Economic Review
45
• SCR has a genuine and realised competitive advantage in
logistics, based on its location and infrastructure
• Strong road, rail, and air links, including road links to ports
• Existing base of world class companies including Amazon,
Asda/Walmart, ASOS, B&Q, BMW, Ikea, Next, Tesco, TNT
% of total e mployees in sector
% of total em ployees in s ector
The financial and business services sector in SCR is undeveloped
Employment share of the financial and business services sector, 20111
Rebalancing
Logistics SWOT overview
D2N2
Sheffield Tees Valley
CR
NE LEP
Sheffield
CR
Cheshire & Leeds CR Tees Valley
Gr.
W.
Manchester
D2N2
NE LEP
Rebalancing
Sport, leisure and tourism SWOT overview
S
O
• Geographical position adjoining the Peak District National Park
• Strong base of visitor attractions including Chatsworth House,
Magna, Doncaster Racecourse, Sheffield theatres
• Sheffield is the most physically active city in Britain (LEP Sector
Group)
• Extensive investment over the last 30 years has left SCR with an
extensive legacy of international standard sports facilities
• Job creation potential, including for those with low skills
• Scope to increase the duration of visitor stays
• Increasing trend for domestic tourism as air fares rise
W
T
• Less employment than national average and other northern
LEPs
• Lack of a large accommodation base
• Sports and national park tourism very seasonal
• Major Events Strategy notes that other cities have developed
more attractive infrastructure for hosting major events
• Intense competition for visitors
• Other UK and foreign cities investing heavily in major
conference facilities
Despite its asset base, SCR is relatively unspecialised in sport, leisure and tourism
Employment share of the sport, leisure and tourism sector, 20111
% of total em ployees in sector
12.0
10.0
8.0
50,700
6.0
4.0
2.0
0.0
NE LEP
(1) Source: Independent Economic Review
46
Tees Valley Cheshire &
Gr.
W.
Manchester
D2N2
Leeds CR
Sheffield
CR
Construction SWOT overview
S
• Already an employment specialism for SCR
W
• The sector continues to be affected by slowdown in commercial
development and low housing completions
• Employment will be driven by investment in housing, transport
infrastructure and new commercial developments
• Retrofitting of energy efficiency measures to social housing
O
T
The sector faces national level challenges including:
• Addressing empty business rates
• Access to finance
• Resources to support training
• Workforce retention in a cyclical industry
• Barriers to SME participating in public procurement
S
W
O
T
• High employment share compared to other northern LEPs and
national average (although partially reflects weak employment
based in other private service sectors)
• The retail sector is characterised by its reliance on local demand,
and is not a significant generator of wealth in its own right
• Attracting additional spend from other areas is a ‘zero-sum’ game
at national level
• Potential for job creation, including for low skill groups
• Scope to widen the leisure offer to offset the threat from online
shopping
• Broad trend towards more online shopping is reducing demand
for shop space and associated employment
• Sector’s growth will remain limited unless wealth-generating
sectors also grow
The construction sector share of SCR employment is above average
Employment share of the construction sector, 20111
SCR is a significant retail centre
Employment share of the retail sector, 20111
11.0
7.0
40,100
5.0
4.0
3.0
2.0
1.0
10.6
10.4
10.2
10.0
9.8
9.6
9.4
9.2
0.0
Tees Valley Sheffield
CR
D2N2
(1) Source: Independent Economic Review
47
78,400
10.8
% of total em ployees in sector
% of total em ployees in sector
6.0
Rebalancing
Retail SWOT overview
NE LEP
Cheshire &
Gr.
Leeds CR
W.
Manchester
Sheff ield
CR
D2N2
Cheshire & Tees Valley
W.
NE LEP
Gr.
Leeds CR
Manchester
7) The spatial dimension
48
Each sub-region within the SCR has a distinct role to play
49
Spatial dimension
Planned transport interventions are focused on growth areas
Source: South Yorkshire PTE SCR Spatial Mapping
50
Spatial dimension
Commuting data enable analysis of the economic relationships
amongst SCR sub-regions
Barnsley is dependent up on the labour
market of neighbouring areas and has
strong links to both the Sheffield and
Leeds city regions
Spatial dimension
Doncaster is a significant centre for
employment but its distance from
Sheffield limits commuting
Bassetlaw has linkages with Doncaster,
Rotherham and Sheffield
Sheffield and Rotherham are seen as a
single economic entity
The Centre for Cities notes that only 0.4
per cent of Sheffield residents commute
to Manchester. Whilst there is potential
for closer links between the two cities,
these appear hampered by transPenine transport links.
Linkages between Chesterfield, North
East Derbyshire, Derbyshire Dales and
South Yorkshire and focused on
Sheffield
By contrast Doncaster and Leeds have
good rail connections due to
convergence of East Coast Mainline,
Transpennine Line.
The East Midlands districts are
interconnected. There are strong
commuter flows into
Chesterfield, reflecting its role
as an important employment
centre with East Derbyshire
Bolsover’s labour market is isolated from
Sheffield’s employment opportunities
Travel to work movements within SCR (000s)1
(1) Source: South Yorkshire Passenger Transport Executive submission to call for evidence
51
Current residential plans suggest population growth may not occur
in the same places as employment growth
There is a reasonable read-across from ONS-based
population forecasts to OE’s baseline (policy-neutral)
employment growth expectations1
Spatial dimension
But the read-across is less clear when using “planned
provision” population projections, which are based on the
housing targets presented in local plans1
Population change
2010-2030
Employment change
16,000
2010-2030
Employment change
16,000
2010-2030
48,000
14,000
42,000
60,000
12,000
36,000
12,000
50,000
10,000
30,000
10,000
40,000
8,000
24,000
8,000
30,000
6,000
18,000
6,000
20,000
4,000
12,000
4,000
10,000
2,000
6,000
2,000
80,000
Population change
2010-2030
Population (ONS-based, left scale)
Employment (right scale)
70,000
0
0
-2,000
-10,000
Sheffield
Bolsover
Barnsley Rotherham North East Derbyshire Bassetlaw Doncaster Chesterfield
Derbyshire
Dales
Population (planned provision, left scale)
Employment (right scale)
14,000
0
0
-6,000
-2,000
Sheffield
Bolsover
Barnsley Rotherham North East Derbyshire Bassetlaw Doncaster Chesterfield
Derbyshire
Dales
To the extent that population growth occurs in different locations to employment growth, there will be an increase
in commuting and it will be necessary to ensure there is sufficient capacity on transport infrastructure to enable
this.
(1) Population forecasts from Sheffield City Region Heads of Planning (March 2013) Forecasts of populations and households for the
Sheffield City Region. Employment forecasts are baseline forecasts from the Oxford Economics Local Economic Database
52
Flooding has economic and wider consequences for those affected,
and can have longer term reputational costs, particularly if repeated
Spatial dimension
Local authority
Main flood risks
Sheffield
• Some areas under pressure from future development at risk of flooding from rivers.
• Flooding in June 2007 highlighted the need to consider localised flooding in Sheffield as an integral part of the
planning process. Uncontrolled flooding as a result of heavy rains can create significant damage and disruption
(1,200 homes and 1,000 businesses were flooded in 2007)
• Although the proportion of properties at risk of flooding is low for a city of Sheffield’s size, the location of this risk
is critical with major transport links and key infrastructure at risk2
Rotherham
• Three river valleys run through Rotherham and a proportion of Rotherham Borough is at risk of flooding.
• Some of the areas at risk of flooding from rivers are under pressure from future development
Doncaster
• Some built up areas at risk of flooding.
• Although the probability of flooding in the Don and Trent Valleys is low, the consequences of flooding are large.
High risk of tidal flooding in the north and north east of the district.
Barnsley
• Flood risks are linked to the Dearne and Upper Don rivers and tributaries
• Flooding from other sources has demonstrated that areas outside the floodplain can still be at risk
Chesterfield,
Bolsover & NE
Derbyshire
• Some areas of Chesterfield assessed as being at significant and/or frequent risk of flooding
• There do not appear to be any major flood defences in NE Derbyshire where breach could significantly affect
existing or future development sites
Bassetlaw
• High risk of flooding from rivers. Retford and Worksop have minimal flood defences
Derbyshire
Dales
• Many properties at risk in Bakewell where the indicative flood zones widen significantly
• A number of locations at risk of flooding that are currently protected by permanent defences within the
Derbyshire Dales plan area, including Matlock
Whilst work to understand flood risks is valuable, it is unclear whether SCR is exposed to a greater degree of flood risk than other
benchmark city regions
(1) Source: Information drawn from SCR Spatial Planning Assessment, September 2010
(2) Source: Sheffield Flood Risk Management Strategy, Sheffield City Council
53
Central government policy presents a number of opportunities, but
there is a need to develop thinking on SCR’s approach
Spatial dimension
The move towards combined authority status will strengthen governance and unlock funding,
and the devolution agenda will give SCR considerably more control over how funding is allocated
The Independent Economic Review proposes developing the City of Sheffield as an engine of
growth, reflecting its role as the major employment centre. This could enable SCR to capitalise on
the government’s renewed focus on cities through the Core Cities Group and City Deals
This model has been proven to work well in Manchester, where the city centre exerts a strong ‘pull’
over the LEP area and dominates commuting patterns (Manchester is ‘strongly monocentric’)1
However, Sheffield does not exert such a strong ‘pull’ over the SCR as Manchester does over it’s
surrounding areas. Sheffield has secondary employment centres such as Chesterfield and
Doncaster, and weaker links with neighbouring towns and cities (SCR is ‘weakly monocentric’)
Developing Sheffield as the focus of growth in the SCR would require strong leadership
from the City of Sheffield, and a concerted effort to prioritise development of the City over
other areas
(1) City Relationships: Economic linkages in Northern City Regions, available at:
http://www.theworkfoundation.com/DownloadPublication/Report/227_227_City%20Relationships%20Report.pdf
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Conclusion
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Conclusion
Key messages from our analysis
SCR needs to:
• Restructure its economy
• Create more and better jobs
• Focus on high growth businesses in all sectors
• Focus where SCR has a USP, strengths and opportunities (however, bear in
mind that we full do not have a picture on SCR’s sub-sectors at this stage)
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Annex A: Evidence gaps
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Annex A
Evidence gaps
•
A much more granular analysis of all sectors and sub-sectors is needed to understand where SCR’s
specialisms lie at a detailed level, and to understand how SCR’s firms interact with national and global
supply chains. This should also explore whether low levels of productivity and innovation reflect SCR’s
sectoral mix, or reflect low productivity relative to the average for firms undertaking similar activities
elsewhere in the country
•
It is unclear whether low levels of exporting within SCR result from a lack of business success in growing
export markets, or simply that SCR specialises in goods and services that are not suitable for export. This
should be explored through a more detailed survey of firms
•
Whilst there are data on foreign direct investment, it is unclear what type of UK firms may be investing and
creating jobs. Understanding their needs (and why certain firms chose not to come to SCR) will be crucial
in developing a strategy to attract more investment to the City Region
•
Deciding whether SCR’s needs are best-served by focusing growth on Sheffield is an extremely complex
question. Any decision on this should be informed by a detailed analysis of the likely costs and benefits
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Annex B
Call for Evidence Submissions
Call for Evidence Submissions - Organisations
Barnsley MBC
Peak Rural (LEADER Programme)
Bassetlaw DC
Ready Unlimited
Beta Technology (Doncaster)
Rotherham MBC
Bolsover & NE Derbyshire (LEADER Programme)
SCR Advanced Manufacturing and Materials Sector Group
Bolsover DC
SCR Creative and Digital Industries Sector Group
Business Link - LEP Area Quarterly Report
SCR Economic Development Cabinet Members
Business Peak District
SCR Heads of Planning Group
Centre for Cities
SCR Healthcare Technologies Sector Group
Chersterfiled BC
SCR Innovation Scoping Work (including local and national reports used to inform this report)
Chesterfield College
SCR Labour Market Analysis
CPRE (South Yorkshire)
SCR Low Carbon Sector Group
Cultural Industries Quarter, Sheffield
SCR Property and Construction Sector Group
D2N2 LEP
SCR Retail Sector Group
Dearne Valley College
SCR Rural Baseline Report (including local and national reports used to inform this report)
Dearne Valley Eco Vision Board
SCR Skills for Growth Partnership
Derbyshire Dales DC
SCR Skills Provider Network
Doncaster Chamber of Commerce
SCR Sport, Leisure and Tourism Sector Group
Doncaster College
Sheffield CC
Doncaster MBC
Sheffield Chamber of Commerce
Doncaster-Sheffield Airport
Sheffield College
East Peak Innovation Partnership (LEADER Programme)
Sheffield Community Network Programme (and partners)
Electronic Systems Challenges and Opportunities - Research Report
Sheffiled Hallam University
Environment Agency
South Yorkshire Forset (Local Nature Partnership)
Export Research (including local and national reports used to inform this report)
South Yorkshire Integrated Transport Authority (ITA)
Grant Thorton
South Yorkshire Passenger Transport Executive (SYPTE)
JRF
Spatial Priority Work (work jointly developed by SYPTE and SCR Heads of Planning)
Locality/Burton Street Foundation, Sheffield - on behalf of Sheffield based Development Trust
The Homes and Communities Agency
McKinsey Consultants
The Social Economy Forum for SCR
Nabarro
The Technology Strategy Board
NE Derbyshire DC
University of Sheffiled
NESTA
Yorkshire Wildlife Park
Peak District Partners (Derbyshire Dales DC/Peak District Leader/ Rural & Farming Network
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