20:20 vision - pwc

20:20 VisionThe strategic potential of Devon and Cornwall

www.pwc.co.uk

November 2014

I have always been hugely proud of working and living in the South West; Devon and Cornwall is a thriving commercial region with beautiful beaches and areas of outstanding beauty. PwC has been based in Plymouth for over 30 years, advising a number of iconic businesses in the region working with them as they change, diversify or grow. During the 25 years that I have lived in the region, I have seen a transformation in the nature of the businesses based in, or choosing to relocate to, the region; expanding their brand both nationally and internationally; recognising the benefits of being based in the South West.

Devon and Cornwall is a powerful brand and in this publication we explore how the region can secure a robust and durable recovery to achieve its strategic potential. This document begins to explore how we need to work to bridge the gap between where we are now and where we want to be in 2020. We look forward to you joining the debate and providing leadership in how we can work together to maximise the strength of the region’s brand to continue to make Devon and Cornwall a great business community to live and work in.

Heather Ancient, Plymouth Office Senior Partner

It is a great privilege, as PwC’s Chairman for the West Region, to introduce this 20:20 Vision document setting out the opportunities and potential of Devon & Cornwall.

Our Plymouth Team has researched, engaged with a range of stakeholders and created a document to help focus the narrative for the medium term strategic development of the region as one of the most attractive, liveable and workable places in the UK.

The range and quality of iconic companies successfully operating in Devon and Cornwall is impressive and can in itself help build the identity, profile and reputation of the region as a place to invest in sustainable growth for our next generation. Many of the nominees and finalists in the PwC West of England Business of the Year Awards, held annually in July, are businesses started with the entrepreneurial spirit in the region, as were this year’s winners Gro Group International (trading as the Gro Company), based in Exeter.

Alongside Heather I feel passionate about the role PwC is now taking to stimulate the 20:20 Vision and move this debate forward positively. I hope you enjoy reading and discussing this document and that it is a catalyst to generate wider opinion and ultimately more investment in the South West. We also look forward to being a stakeholder in the development of the region.

Matthew Hammond, Regional Chairman in the West & Wales Region

Contents

Executive summary ................................................................. 2

Signs of recovery? .................................................................... 3

Playing to the region’s strengths ............................................. 5

Underpinning growth with infrastructure .............................. 6

Let’s pause … ........................................................................... 9

How can Devon and Cornwall attract and retain skills and businesses? ................................................. 10

How can the region leverage the skills and experience of the existing pensionable population? .............. 14

How should the underlying infrastructure support these first two aims? ................................................. 15

How can the region fund the necessary changes? ................... 21

Agenda for action .................................................................. 24

About the authors ................................................................. 26

PwC | 20:20 Vision – The strategic potential of Devon and Cornwall | 1

Executive summary

Devon and Cornwall, like the rest of the economy, have been hit hard by the longest depression in a century, with output still well below pre-recession levels.

With productivity in the region on the rise and unemployment falling, signs of recovery are starting to emerge. However, the future has been altered indefinitely by the recession, and local public and business leaders are under increasing pressure to deliver long-term growth in this new, changed environment. Devon and Cornwall face tough decisions in order to drive forward a sustainable strategy for recovery. So how can the region secure a robust, durable recovery in the face of the current challenges?

The first step is for the region to play to its strengths. Devon and Cornwall has considerable resource at its disposal, including the skills and experience of a large pensionable population. The area is also home to some of the most beautiful natural landscapes in the UK, as well as key flagship companies and a growing retail and tourism trade. The region needs a carefully crafted marketing strategy to help promote this ‘Devon and Cornwall package’. It must sell itself as one brand – a critical mass that can offer what individuals and businesses need.

But the region must also provide sufficient skills and infrastructure to underpin its claims as a great place to live and to do business.

To begin with, this means matching skills supply with demand through collaboration between flagship companies and the public sector. As well as increasing the existing skills base, the focus should be on attracting and maintaining further talent. The region’s large pensionable population also offers a wealth of skills and experience that can be used to benefit local communities and the wider economy, as well as to increase engagement of these individuals. This might be through retirees volunteering in community groups, or mentoring local entrepreneurs (Devon and Cornwall have a higher-than-average rate of self-employment).

Consideration needs to be given to the region’s internal and external infrastructure. This means addressing problems with the transport infrastructure and long journey times to other UK hubs, as well as the acute lack of affordable, suitable housing in the region. Devon and Cornwall also have a significant opportunity to lead the way in digital connectivity, further boosting the region’s image.

In this 20:20 Vision – The Strategic Potential of Devon and Cornwall we set out the key issues Devon and Cornwall need to address in order to bridge the gap between where they stand now and where they want to be in 2020.

The document focuses on four key questions:

1. How can the region attract and retain skills and businesses?

2. How can the region leverage the skills and experience of the existing pensionable population?

3. How should the underlying infrastructure support these first two aims?

4. How can the region fund the necessary changes?

In order to address these questions and implement the points set out in the agenda for action, it is imperative that all stakeholders – public and private – work together closely. Only by engaging in open dialogue and pooling resources can solutions be identified and prioritised that benefit the region’s businesses and residents alike.

Competition for the funding and financing required to implement these changes remains fierce. But here too the region’s external perception can play a pivotal role. Financing requires returns, so the marketing of the region must be effective to generate interest and ensure delivery of these returns.

2 | 20:20 Vision – The strategic potential of Devon and Cornwall | PwC

Signs of recovery?

In December 2013, the Office for Budget Responsibility (OBR) upgraded the UK’s growth forecast by a third. Additionally, current Bank of England analysis suggests the target of 7% unemployment will be achieved in the relative short term, up to 18 months earlier than originally expected. Steadier inflation and increasing export demand also indicate that the tentative recovery seen in late 2013 now has momentum. The South West is no exception to this trend, with strong output growth predicted for 2014 (Graph 1)1.

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Graph 1: Growth output projections by region

1 PwC Economic Outlook, November 20132 Lloyds Bank South West Business Activity Index

This forecast is supported by Purchasing Managers Index (PMI) data from the latest Lloyds Bank Business Activity Index2, which tracks changes in the output of the region’s manufacturing and service sectors. Here, the South West is outperforming the national average.

The OBR’s Economic and fiscal outlook published in March 2014 predicted GDP growth of 2.7% in 2014 and 2.3% in 2015.


The UK labour market has been surprisingly resilient in the face of adverse economic conditions. The 2011 peak in unemployment (8.5%) was the highest in 16 years3, but lower than predicted. Devon and Cornwall also fared well in this area.

The region’s unemployment is consistently below national levels, on average at around 4%, despite considerable fluctuation between urban and rural labour markets. This is partly due to a higher-than-average rate of self-employment. For example, 15.5% of Cornwall’s working age population is self-employed4. Is this mainly the result of strong innovation and entrepreneurial spirit, or due to a lack of high-quality employment opportunities in the region?

3 Office of National Statistics, Labour Market Statistics4 Cornwall’s Economy at a Glance, January 2013, Cornwall Council5 Cornwall Council, Economic Monthly Monitoring Update, April 20146 ONS Annual Survey of Hours and Earnings – Work Area Analysis 2010 – 2013 (Graph 7)

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So, how can Devon and Cornwall manage its recovery to ensure sustainable long-term growth and prosperity in the face of these challenges?

Wages are also considerably below the national average5 (as illustrated in the ONS Annual Survey shown). As well as being a potential driver of self-employment, with individuals forced to fend for themselves as businesses fail to provide sufficient income, wages are also a key factor in the perception of quality of life.

Graph 26 below shows that there are some very positive signs for the region’s future; however, there are still challenges to be overcome.

Graph 2: Average Gross (Median) Weekly Earnings by Work Area


By...

Playing to the region’s strengths

Irrespective of the economic challenges, Devon and Cornwall enjoy considerable strengths. The region is home to many globally renowned companies, including Babcock, Pennon, Ginsters and Wrigley, to name a few. A number of high-profile government bodies, such as Exeter & Plymouth Land Registry and the Met Office, are also based in the region. Couple this with highly respected universities and it quickly becomes clear how the region is able to punch above its weight.

Nowadays, the contributions of more traditional sectors such as tourism, agriculture and food and drink (with the likes of Rick Stein, Michael Caines, Jamie Oliver, Mitch Tonks and the Tanner Brothers leading the way) are matched by growing innovation and retail presence. New science parks in Exeter and Plymouth and new retail complexes such as Drake Circus and Princesshay can drive and contribute to growth. The region offers both visitors and residents a complete package, and these qualities must be consistently highlighted to market Devon and Cornwall as ‘the place to be’ in the UK.

7 Complete University Guide League Table 2014 (published in association with HESA)8 Office of National Statistics, Labour Market Statistics, August 20139 Defined as: Percentage of individuals available in the labour market but not in work10 Office of National Statistics, Labour Market Statistics for South West, May 2014

Devon and Cornwall boast one of the UK’s top ten universities7, with more than 55,000 students in training or education in the region at any one time. However, designation surveys show that the vast majority of these students leave the region after graduating, taking their knowledge and skills with them.

Youth unemployment in the UK stands at around one million8. In the South West, the economic inactivity rate9 among 16 to 24 year olds is 33.3%10, one of the highest in the country, and is increasing year on year. This raises questions as to whether young workers should be expected to move to where the jobs are, or whether employers should focus more on tapping into the existing talent pool. Fundamental to answering this question is another: Does the current training and education system meet the needs of industry?

Recent reviews by the London School of Economics and Lord Heseltine suggest skills provision in the UK as a whole is too supply-led. The consequence is a mismatch between the skills demanded and those available, leading to shortages in specialist skills and a rising number of vacancies that cannot be filled.

The challenge facing Devon and Cornwall is to develop a responsive skills system that is aligned with the changing needs of local businesses, and to appeal to national and international companies as an attractive location with high potential.

Further Education providers have a role in bridging the supply-demand gap, talent spotting, and actively marketing the region as the place to build a career.

Keeping the right skills in the region

Do the right skills attract businesses, or do you need businesses to bring in skills?

EducationAtt

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Embed skills

What’s more, how can the region go about attracting both?


Hard infrastructure, such as road and rail networks, and affordable and suitable housing are key influencers in firms’ decisions around where to locate, and in individuals’ ability to move for work. Reducing the time it takes someone to travel from where they live to where they work also means they are more likely to be able to enjoy a good quality of life. In a similar vein, affordable housing and utilities provide a further platform for growth. Access to health and social care is also a key differentiator in choosing where to live.

Average house prices in Devon and Cornwall are 4% higher than the UK average11, driven by demand for second properties and holiday homes, as well as a steady influx of retirees attracted by the region’s natural beauty and quality of life.

According to the National Housing Federation Home Truths 2011 report, the average South West home is priced at nearly 12 times average income levels. Affordability is further strained by the high number of second homes and general housing shortfall across the region.

The housing affordability index, which looks at the ratio between lower quartile earnings and lower quartile housing prices in the first-time buyer market, indicates that Devon and Cornwall is more expensive than the national average. In 2012 the ratio was 8.79 for Devon, 6.19 for Plymouth and 8.15 for Exeter – compared with a national average of 6.59. Cornwall shows similar trends. While some areas are clearly more attractive than others (for example, Plymouth is an affordable base in Devon and Cornwall), this presents a further challenge to the region’s efforts to attract and retain graduates and labour.

Housing and utilities now account for around a quarter of total household spending and this is set to rise beyond 30% by 203012.

Rural households face living costs that are up to 24% higher than urban households13. Most of these extra costs are for transport, which makes up between 60 and 100% of the difference, with domestic fuel costs accounting for the rest. The more rural the location, the greater the additional cost becomes.

Underpinning growth with infrastructure

Road and rail networks Affordable and suitable housing Access to health and social care

11 Lloyds Banking Group, Housing Price Indices for Q3 201312 PwC UK Economic Outlook, November 201313 Devon County Council Strategic plan 2011-2015


14 Somerset County Council website

Housing and utilities as a percentage of total household spending

5430

National Rural

It is therefore essential to ensure that both transport and communications provide access for those living in rural areas.

In Cornwall, the cost of the road repair backlog increased by £2m following the 2013 winter storms and now amounts to £204m. Meanwhile, Devon, which has almost 8,000 miles of roads to service – more than the whole of Belgium – estimates its costs at £64m per annum. Bringing the entire network up to standard would require £750m.

The average rail journey time from Penzance and Plymouth to London puts many people off commuting to the capital. A shorter 3.07 hour journey time between Plymouth and London Paddington has helped make the region more accessible to both business and leisure travellers, with the 5.53am departure reaching London at 9.00am (subject to delays). However, this high-speed service only runs three times daily, Monday to Friday. Trains also leave Exeter St Davids several times a day for London Paddington and Waterloo. Journey times vary from two hours upwards.

Rail travel into the region presents similar challenges, with many commuters unable to reach destinations in Devon and Cornwall before 9.00am. For example, a traveller from Birmingham to Plymouth cannot reach the city until nearly 11.00am. The same applies for travellers departing London, unless they use the outdated Night Riviera sleeper service. Even Bristol, which is just 120 miles away, requires an early start to ensure a timely arrival (6.00am from Plymouth or 7.30am from Exeter). Travel further down into Cornwall and you are looking at an additional 60-minute journey at least. In general, journeys beyond Plymouth into Cornwall pose even more challenges, with services often slower, sparse and weather dependent.

However, it is worth noting that regular travel to and from the region is not only costly and time intensive, eating into commuters’ work-life balance, but is also unsustainable for both individuals and the environment.

So how can the region remain connected?

Staying connectedDigital technology has transformed the scope, scale and potential of business over the last decade. A fast, reliable broadband connection is becoming increasingly important for companies and residents alike. With the growth of the Internet and online services, not having access to a reliable fast broadband connection can put you at a serious disadvantage.

The Coalition Government sees investment in ‘superfast’ broadband as vital to economic growth, and has created a £530m fund to support investments in broadband infrastructure14.

Regional deployment programmes are in progress across Devon and Cornwall which, once completed, will provide the region with one of the best superfast broadband connections in Europe.

Western Morning News

16 January 2014

‘Road network falling into ruin’

Thousands of miles of rural routes in the Westcountry could be on the road to ruin after cash-strapped councils admitted they simply cannot afford spiralling repair costs.


Attracting individuals to the regionAttracting businesses is one element. Attracting individuals is another. Classified as the most rural English region, the South West Peninsula (which covers Devon and Cornwall) is the largest of the nine English regions but has the lowest population density. That said, the population is growing, with individuals attracted by the quality of life offered in Devon and Cornwall.

In fact, the region’s population increased faster than in England as a whole between 2001 and 2010, growing by 6.7% compared to the national average of 5.6%15.

Over the next 25 years, the number of people living in the South West is predicted to grow by 20%. This will only intensify demand for services and infrastructure and put greater pressure on the environment in terms of housing developments and waste management.

This net growth is driven by migration into the region rather than organic growth (the net of births and deaths). This trend is reflected nationally, with 19,000 new UK citizens a year. Of those, approximately 3,000 come to Devon alone – however, the majority are over 65. Pre-retirement age individuals are leaving the area at a rate of 1,000 a year16. So how can the region keep hold of key skillsets?

As well as an increasing population, people are living longer. Nationally there is expected to be a 39% increase in the number of 65-84 year olds by 2032, with the 85+ age group growing by 106%.

By 2030, it is estimated that over 25% of the region’s population will be aged 65 or over, while the proportion of people of working age will have grown very little17.

At a subregional level, the population’s age structure is more varied. In Exeter and Plymouth, for example, the proportion of the population that is of working age is much greater than for the region as a whole.

While demographic changes like these do bring benefits, such as an increase in community volunteering and more experience in the job market, they will also lead to increased pressure on health and social care. The ‘old age dependency ratio’, which is the number of people over the state pension age for every 1,000 adults of working age, is set to rise from 314 in 2009 to 349 in 2032 – and this increase will be exacerbated in Devon and Cornwall given the region’s demographics18.

The rural nature of the region also brings challenges, for example, in making sure that everyone can access the services they need.

Furthermore, with the pension age rising, a key challenge for the region in the future will be providing suitable employment for an ageing workforce.

15 South West Observatory, The Changing State of the South West 2012 Report16 South West Observatory, The Changing State of the South West 2012 Report, ONS – Immigration17 South West Observatory, The Changing State of the South West 2012 Report18 The Kings Fund, 2013

How can the region leverage the skills and experience of its pensioners for the benefits of the wider economy?

For example, could entrepreneurs and businesses benefit from the expertise of retired professionals in a sponsor, mentor or non-executive director capacity?

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Population analysis – Devon and Cornwall


As highlighted in our analysis so far, there are a number of questions that need to be answered if Devon and Cornwall are to achieve sustained growth in the future.

We believe the most pressing four questions are:

1. How can the region attract and retain skills and businesses?

2. How can the region leverage the skills and experience of the existing pensionable population?

3. How should the underlying infrastructure support these first two aims?

4. How can the region fund the necessary changes?

In Section 2 of this document we address these questions and provide an agenda for action. In short, we look at what needs to be done and how the region can go about doing it.

Let’s pause …

where does this analysis

leave us?


How can Devon and Cornwall attract and retain skills and businesses?

The potential benefits The challenge Skills really do matter

A skilled workforce and business investment are two key requirements for any region wanting to thrive.

Upskilling the local workforce would bring numerous benefits for both individuals and the local economy in Devon and Cornwall. A skilled workforce can attract investment to the region, create high-quality, secure employment opportunities and increase productivity – the key to long term economic growth.

To secure inward investment, Devon and Cornwall must be promoted as an attractive and beneficial place to do business. Investment will not only bring industry strength to the area, but will have a knock-on effect for the supply chain and regional/national profile.

Attracting business to the region will generate more opportunities in Devon and Cornwall, enabling individuals to find suitable employment locally and benefit from the quality of life offered in the area. This, in turn, will help retain skills.

Additionally, increased tax receipts will help reduce the funding gap in essential services such as healthcare, which must be a priority for the region given its ageing demographic.

The region’s consistently low unemployment rate suggests that there are positions available for individuals looking to settle in Devon and Cornwall. In fact, government statistics show the region has weathered the recession better than most in this respect. However, market analysis also shows that a significant proportion of these positions are part-time or seasonal posts, potentially making them less attractive to professionals. The mix of positions goes some way to explaining the low average wages per full-time equivalent employee seen in Devon and Cornwall. The region suffers from a net outflow of graduates each year, with talent drawn to the higher salaries and progression opportunities available in larger towns and cities.

‘Hidden unemployment’ (individuals seeking work but not claiming benefits) and ‘underemployment’ (a high proportion of part-time posts and few suitable full-time opportunities) further add to the challenge of attracting and retaining skills within the marketplace.

The region’s cyclical dilemma is therefore plain to see. Attracting and retaining talent is difficult in the context of unskilled jobs and lower salaries (around 20% of the working population earn lower than the living wage19). The flagship companies based in the region that are trying to recruit are faced with a mismatch of skills. In other words, they have positions available but few suitable applicants to choose from – despite the fact that the average number of applicants per vacancy generally exceeds the national average20. New businesses will not invest in the region unless they see a suitable pool of skills for their workforce.

This cycle can be broken, but will require renewed efforts and collaboration from local government, businesses and public sector organisations alike.

At a business and wider economic level, the returns are seen in higher productivity. For government, the outcome is higher employment resulting in higher tax receipts and lower unemployment benefits. And for the individual, the reward is higher lifetime earnings as well as job satisfaction.

Practical action must be taken to better connect people with opportunities. Businesses need to be in the driving seat, creating more good jobs. This must be supported by a demand-driven skills system – and a more outcome-focused Jobcentre Plus. These principles are the cornerstone of the future health of our regional labour market.

Acquiring the right skills is essential in order to achieve the public’s desired outcomes of jobs and income. It is also a top priority for businesses and necessary for wider societal outcomes such as improved social mobility and reduced poverty. Skills are also essential for the regional economy and to improve the UK’s relative competitiveness and growth rate. The most desirable outcome is one of rising pay and productivity – a virtuous circle.

19 EU investment strategy – Headline evidence base for C&IoS, Europe 202020 Plymouth’s Economic Review Issue 3: March 213 – Plymouth City Council

Skills

High-quality jobs


21 PwC Stepping Stones for Growth, 201322 PwC Stepping Stones for Growth, 2013

The strategyThere are three facets to the strategy aimed at breaking the skills/jobs cycle:

1. Increasing the existing skills base.

2. Attracting additional investment (people and business).

3. Retaining the enlarged skills base.

Increasing existing skills

Well-paid, highly skilled positions are only created where there are sufficient skills to fill them. Therefore, developing skills within the region to ensure demand and supply are aligned is the first step to breaking the cycle. It is arguably also the most difficult step.

Employers often complain that young people are not ready for work and lack basic practical skills, despite being more qualified on paper21. It is therefore necessary for education and training providers to develop their programmes and curricula based on the skills that businesses actually need.

This is not to take away from academic, theory-led education. But if Devon and Cornwall are to improve overall job prospects and attract both businesses and skills, local education and training providers must work with the commercial community to understand their needs. In turn, businesses must articulate their demands early and clearly enough so that education and training can be adapted accordingly. Only then will supply and demand be aligned and improvement be seen.

So what can be done to improve workforce skills and enhance employability, especially among young people? The UK already has programmes and initiatives in place to support employers in upskilling their workforces. To help make provision more demand-led, the Government has put particular emphasis on greater

employer ownership of the skills agenda, often providing public money to match employer contributions. There has also been a major apprenticeships drive, particularly for those providing routes to more professional skills and qualifications.

However, these initiatives all require a responsive skills system. Learning providers must be attuned to the needs of business; employers must engage earlier and more closely with individuals; and the result must be a better experience for the learner and the right outcome for the employer. With these elements in place, a ‘win win’ outcome can be achieved.

We are currently seeing an increased national focus on autonomy for schools and setting up partnerships between training providers and business. Devon and Cornwall have a real opportunity to take the lead here for regional Britain and drive this agenda forward.

For example, apprenticeships are very much the focus of national government. This presents opportunities for local work placement schemes if firms are willing to be involved. Schemes such as these are largely self-funding and provide a ready source of bespoke, skilled labour going forward. However, research shows children begin thinking about their career choices as young as 11 years old22, so flagship companies should aim to engage with schools as early as possible.

The careers advice offered to children generally needs improvement. At present the service is extremely fragmented and variable across Devon and Cornwall, with only 1 in 12 schools offering it at all. Little wonder then that only 2 in 100 secondary students go into vocational training, with the rest opting for sixth form instead. A general lack of engagement with education institutions means that chances to link individuals with the right positions are being missed.


This is a long-term solution to a long-term problem. The process of improving skills in the workforce will take some time, and it will be even longer before the benefits are felt across Devon and Cornwall. But given the region’s historically low wage/low skilled job structure, and the need to replenish its ageing workforce, it is clear that these improvements should be a key priority.

Attracting people and business

Improving the skillset of the region’s existing workforce is just one element of this strategy. Another is attracting new individuals and businesses to the region in order to bolster both the demand and supply of skills and broaden the region’s expertise. Although the main pull for qualified individuals is the quality of jobs on offer in an area, there are many other factors in favour of Devon and Cornwall, such as the higher quality of life on offer compared to competing regions. In quality of life indexes, Devon and Cornwall rate highly for most social measures, including work-life balance

To get the right person for the job, employers need to take greater responsibility and communicate more effectively. Education providers (schools, further education colleges or universities) and individuals need to know the key facts about a business:

1. The type of employer they are, from their size to what they do (products/services).

2. The type of skills they want – these must be articulated both to education providers and when advertising specific posts directly to potential employees. Who will thrive in their business? What qualifications do they need, and why? What value do these qualifications bring?

3. The benefits to employees, especially in terms of non-monetary rewards.

and health indicators – and this is often a major reason for relocating to the area. The graphic shows that the region also scores highly in life expectancy statistics23, particularly Devon.

These qualities must be promoted more widely to raise the region’s profile with individuals and businesses outside Devon and Cornwall. This alone will go some way to increasing interest in the region and potentially attracting talent/investment. We look at promoting the region in more detail a little further on.

Strong community spirit is something that is hard to quantify and is therefore unlikely to be reliably measured; but lifestyle surveys often flag the region as being an extremely positive place to live in this respect. Anyone living in Devon and Cornwall would concur that there is a strong sense of regional identity. Often, however, community programmes are aimed at the ageing population. There needs to be greater focus on engaging a younger, socially aware audience and promoting the region’s entrepreneurial spirit, which will help promote up-and-coming businesses and boost interest in the region. All key stakeholders have a role to play in attracting talent.

65.6 to 70.3 (30)63.3 to 65.5 (30)61.4 to 63.2 (30)59.6 to 61.3 (30)55.0 to 59.5 (30)No data available3 (2)

23 Office of National Statistics, Interactive Map

There are a number of obstacles to talent entry that need to be addressed. The cost of living in rural areas is considerably higher than many people can afford and discourages young skilled workers from settling in the region. On top of this, Devon and Cornwall face high utility prices and transport costs. Poor connections with the rest of the country can also put off talent from migrating to Devon and Cornwall. The region needs to ensure that it advertises itself as connected to the other economic centres of the country and that the necessary infrastructure is in place to meet the needs of individuals settling in Devon and Cornwall. We consider this further later in this section.

Life expectancy by county in England

Life expectancy (in years)


“Devon is the best place to live, with no other county matching its credentials for top landscapes, green spaces and scrumptious local food.”

“Devon and Cornwall are among the best places to live in the country, according to the Telegraph national newspaper.”

“Cornwall is being hailed as one of the best places to live in the country after charting close to the top of Cameron’s first annual ‘happiness’ index.”

As mentioned, attracting individuals is only one side of the coin; businesses also have a role to play in securing the economic future of the region. More emphasis must be placed on the region’s flagship companies, which largely operate below the radar at present.

Too few people are aware of the number of major groups that have a strong presence in the region, such as Centrax, Babcock, Toshiba and Wrigley, many of which work on a regional, national and international basis, or the strong healthcare and education centres and other key public service providers, such as the Met Office.

Furthermore, the challenges in attracting and retaining the right skills in Devon and Cornwall are exacerbated by the lack of awareness outside the region of some of the key brands based in the region, such as Lazy Jacks, Frugi and Crew Clothing.

More needs to be done to increase the visibility of brands outside the region. Best practice should then be shared with businesses entering the market, helping them to make their regional presence successful.

Some companies based in the region are more well-known overseas than in the UK or even than within their immediate locality. Companies need to overcome

their modesty and promote themselves if they wish to thrive in an increasingly competitive environment.

Connectivity, both physical and virtual, has a role here too. Local and central government need to create a working environment that affords the quality of life the region has to offer, but also promotes strong commercial ties with London and allows businesses to benefit from the innovative digital marketplace where they now operate.

Retaining skills

Persuading skilled workers, particularly young skilled workers, to stay in the region has always been a challenge for Devon and Cornwall. There is no reason to assume the region would have any more success holding onto the young professionals it attracts. Retention strategies are therefore critical to the region’s future skills base.

The vast majority of young people in the region decide to stay in full time education upon leaving school. With less than half of young people aged 17-30 in England participating in HE in 201224, the importance of further education and training programmes in preparing young people in the region for future careers is clear.

Businesses and key education providers need to engage more proactively to bridge future skills supply and demand and help the region spot talent, such that efforts can be focussed on retaining those skills needed locally.

As the importance of building a global network increases and the buzz of a city lifestyle become more desirable, young people are attracted not just to cities, but to big cities. The prospect of higher wages and a wider range of job opportunities is a strong pull on young people.

More must be done to retain skilled workers, whether they are native to the region or not. Devon and Cornwall are home to several high-quality universities and a number of successful schools and colleges. Thousands of students pass through their doors every year. Tapping into this pool of rich talent is vital. Better links are needed between businesses and the education sector to make students aware of the local opportunities available to them. There should be a focus on key sectors in which the region excels, such as marine technology, engineering and renewable energy.

A larger, more focused work placement programme would also provide a greater incentive for students to remain in the area after graduation, targeting them with job opportunities before competitors from other regions. The same could be said of apprenticeships for young people across both counties.24 http://www.hefce.ac.uk/media/hefce/content/pubs/2013/201328/HEFCE_2013_28.pdf


We are all too used to seeing negative headlines about our ageing population. There is often an assumption that the older generation is responsible for increasing pressure on health and social care and other public services, which are already under growing cost pressure. However, this suggestion is short-sighted. In Devon and Cornwall the contribution made by people aged 65 and over – through taxes, volunteering, social care and spending – has been valued at £40 billion. This figure is forecast to reach £77 billion by 2030. The taxes paid by people of retirement age are double the amount collected in council tax.

To maintain the engagement of older people in the community and support future generations, it is essential that the skills and experience of retirees are not lost.

Research findings highlight that 60% of retirees with professional skills and experience say these are wasted when they retire. Furthermore, 79% state that people could learn from their skills and experience and 49% say that society values them less since retiring25.

One way to leverage the skills and experience of the region’s pensionable population is to increase the range of volunteering opportunities available.

These could take several forms:

How can the region leverage the skills and experience of the existing pensionable population?

In addition to the benefits felt by recipients of this support, volunteering would deliver significant benefits for the retirees in terms of well-being and health outcomes.

To facilitate the implementation of these recommendations, it is important to recognise the changes that will need to be embraced and the barriers that need to be overcome26.

Firstly, there must be a cultural shift to ensure that the contributions of those of pensionable age are fully recognised by local authorities, public sector bodies and enterprise organisations, as well as among the beneficiaries. This will ensure that volunteering is perceived as an attractive, rewarding and stimulating option for the region’s professional and skilled retired population.

Secondly, initiatives that seek to enhance the well-being of older people must be introduced and monitored. Older people with good levels of health and independence must be given opportunities to take an active role in shaping the social connectedness they seek, for example, through the creation of community groups.

Thirdly, the pensionable population must also be involved in shaping volunteer programmes. Research shows older people have skills and experience younger members of society would benefit from.

25 UK Commission for Employment and Skills, 2011

26 Shaping Our Age, Royal Voluntary Service, 2013

Monitoring

Cultural shift

Sustainable

partnershipsInvolvem

ent

Lastly, support systems will be needed within the local community to ensure any programmes developed are sustainable. Strong relationships will be required, with commercial organisation and relevant community groups working in partnership if such schemes are to be successful.

Maximising the potential of the population by leveraging retirees’ extensive skills and experience is a key critical success factor for Devon and Cornwall.

The recommendation to support the region’s high number of self-employed individuals through volunteering, for example, in a Non-Executive Director or mentor capacity, presents a significant opportunity. Through sharing professional skills in a specific area (such as finance, marketing, sales, human resources, property or legal), individuals can support networking and business growth, which in turn contributes to the wider economy.

Further volunteering aimed at specific social groups and needs can not only bolster existing teaching, social work, health and social care services, but can also engage the younger community (through education/employment schemes). This would go some way to making the region more attractive to young people and supporting talent retention.

xxx

Assisting self-employed

individuals

Maintaining social

connectedness Working with specifi c groups

addressing targeted needs

Volunteeringoptions


How should the underlying infrastructure support these first two aims?

Now more than ever, cities are motivated by their need to drive growth, increase investments, create jobs and raise standards of living. Finding, attracting and retaining talent is vital to their success.

A huge factor in professionals’ decisions around where to live and work lies in the potential quality of life – places must have good infrastructure, public services and education combined with ample leisure and cultural attractions.

The 2013 Opinium ‘UK Best Places to Live’ study featured two of the region’s cities in the top five and as a whole the region scored favourably. In fact, Devon and Cornwall consistently feature highly in quality of life surveys. Unemployment rates are usually lower than the national average. Additionally, the region benefits from the presence of several UK flagship companies, strong entrepreneurial spirit, good public and private schooling, a healthy leisure industry and a thriving food and drinks market, with a number of award winning bars and restaurants. It also enjoys a rich agricultural and marine heritage.

A number of significant projects have been completed in recent years, focused on attracting more people into the region. For example, the development of Exeter Science Park at M5 Junction 29 has brought significant investment into the area and improved the surrounding road network.

Meanwhile, the Plymouth Life Centre, opened in March 2012, has made sports and recreational activities accessible to a wider audience through an increased offering and capacity.

Advertising is vitalNo matter how wonderful a product or service is, if it isn’t advertised, nobody will know about it. The same applies to regions.

Here are our top five tips to help regions plan and execute a successful advertising campaign:

1 2 3 4 5

An advertising cam-paign should be geared toward your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of the target audience.

One of the keys to advertising is to accentuate the unique selling points of the product, service or, in this case, region. What makes you stand out from the crowd?

Image matters. Too many advertisers do not work to build a consistent image, and in doing so they are missing a chance to make an impres-sion on the target audience.

Research your target market to under-stand who they are and determine what they read, watch and listen to. Advertise in that space.

No one place will be everyone’s cup of tea. Focus on your key message and target the individuals you want to appeal to.

Highlight competitive advantage

Establish an image

Advertise in the right places

Don’t try to be everything to everyone

Define your target audience

Transport infrastructure

Further plans are in place to improve the regional rail network (in terms of speed and access), along with major renovations of both the A38 and the A30, the main roads connecting the region to the rest of the UK. The £27m link road in Cornwall, which will be finished by 2015, is expected to generate 5,500 jobs and attract 7,500 new homes alone over the next 20 years27.

The transport infrastructure must continue to be improved in order to maintain the accessibility of the region for business and leisure. Strategic investment in the transport network

could also deliver significant benefits. For example, the A38 lane expansion has a cost benefit ratio estimated to be three times that of the HS2 project, the latter being around 1.228.

Further consideration must also be given to national projects that could benefit the region, such as improvements on the A303 or signalling maintenance on the South West rail line.

Housing remains an obstacle to attracting new residents, with average prices considerably above the national average. Disparity across the region provides further challenges in finding not just affordable but suitable housing.

27 www.bbc.co.uk, Regional Reports, November 201228 ‘HS2: Predicted benefits lowered in new government report’, www.bbc.co.uk/news/business-24721214, October 2013


Marketing the region

The challenge in marketing the region is to ensure the right messages reach the rest of the UK.

Growth requires funding. Some of this will be obtained through the strained coffers of the public sector (local and national government), but increasingly funding is required from external financiers. Competition for financing is tough and local councils, businesses and other stakeholders need to consider how best to market themselves to attract investment. Investment also requires return. So what can be done?

Stakeholders within Devon and Cornwall need to consider how the region should be marketed. If the priority is attracting skills and business to the area, then media campaigns should advertise the region as a great place to work. Thought should be given to the decisions people take when choosing where to work (and often live), and advertising should focus on showing as many advantages to living in the region as possible. There are inevitably downsides, such as the transport infrastructure, which cannot be fixed

overnight. But often a person’s decision involves some compromise and the focus here should be on the ‘quick wins’ and outweigh any perceived negatives (housing prices and connectivity) with the region’s strengths (complete package, great quality of life, strong community focus).

Just for a moment, consider a world where the region is seen as the place that has everything. As the diagram below shows, it does.

The region offers more than 500 miles of stunning coastline, plus places of natural beauty such as Bodmin, Exmoor and Dartmoor National Parks where you can experience breath-taking views in some of the most undisturbed wilderness in the UK.

Add to this the shopping opportunities at Exeter’s refurbished Princesshay centre and surrounding niche stores. It is then just a 40-minute journey to Drakes Circus in Plymouth, or slightly further to the shopping districts of either Truro or Barnstaple, which offer a range of chains and independent stores.

Round your day off with a trip to one of the region’s many heritage sites, which include Land’s End, Dartmoor Castle, Exeter and Truro Cathedrals, and Tavistock Markets to name a few. Then see out the evening at one of the local award-winning restaurants hosted by Rick Stein, Jamie Oliver, Hugh Fearnley-Whittingstall, the Tanner Brothers or Michael Caines. Alternatively take in some culture, perhaps at Plymouth’s Theatre Royal, Tate St Ives or one of the many museums in the region.

Devon and Cornwall – the complete package

Place of natural beauty

Sector specialism

Heritage site

Retail hub Food and drink expertise

Are the region’s unique selling points

reflected in its interaction with the rest of the country?

What is the region known

for?


Business also thrives in the region, with centres of excellence covering a wide range of industries. The marine sector is focused in Plymouth, with Devonport Royal Dockyard taking pride of place, supported by Sutton Harbour developments, the attractive new Royal William Yard and a strong track record of marine education at the local university. Agriculture steps to the forefront in Cornwall, which has more farm land per square mile than any other region and produces a number of prominent products from its green pastures. Sustainable energy also has a strong presence in the county, following substantial EU funding in recent years.

Manufacturing and construction are well represented in the region, in towns such as Newton Abbot, while many of the region’s smaller towns and villages benefit significantly from the tourism trade. The retail trade centres around Exeter.

This is just an overview of the region’s advantages – but how much more powerful are Devon and Cornwall when you look at everything they have to offer at a glance? The market sees Devon and Cornwall as one area, rather than looking at individual towns and cities. So would towns and cities benefit from marketing themselves under a larger, umbrella brand rather than marketing themselves individually?

The public and private sectors will face many investment challenges and demands as the economy continues to find its feet, both to fund the economic infrastructure demanded by business but also to maintain the social infrastructure and services required to support and attract residents and workers. Resources are constrained and the capacity to invest is therefore limited. For this reason, a ‘priority approach’ is needed. Priority services should be maintained as efficiently as possible while freeing up maximum possible resources for continued re-investment.

If Plymouth were located in the US, cities the distance away of Truro and Exeter would be collaborators. But within the UK’s geography, neighbouring cities are often competitors for inward investment. Local authorities and other stakeholders should take a more flexible and universal approach, working together to generate critical mass and inward investment for the region and to achieve growth.

Private sector leaders want to see the right local conditions for their businesses to prosper – whether that’s a skilled workforce, fast and efficient transport links or affordable and suitable housing. Councils and other public bodies want to see their local areas thrive, attracting more residents and businesses to contribute to the local economy. The public themselves have told us that jobs, income and health feature highly in their definition of economic success – good growth29.

29 Good Growth for Cities, 2013 – Participant Data


A number of stakeholders are critical to making growth happen on the ground. Through our work around the world, we have seen the benefits of bringing together the key stakeholders needed to collaborate and provide a common platform for growth – including universities, the not-for-profit sector, the general public and the private sector along with local, regional or national government. Stakeholders need to be clear on their roles and how they are collectively responsible for good growth. This includes creating business cases for others, in central government and in other countries, to invest in their regions.

Practical action must be taken to better connect people with opportunities. Industry must understand the needs and aspirations of the next generation of job applicants – in terms of career development, brand, image, mobility – and engage with them early. In turn, universities and other education and training providers should tailor courses to meet the needs of industry. Increasing the local supply of skills will help to attract and retain more industry players and enhance the region’s reputation. There must also be long-term investment in scholarships, apprenticeships and graduate programmes relevant to the region.

Apprenticeships and traineeships

The abolishment of Train to Gain has meant that the Apprenticeships scheme is now the main vocational education opportunity. Finding employers to take on new apprentices in the current climate is challenging. However, uptake has been good across the local authorities, to varying extents. Uptake has been concentrated in a small number of sectors – those considered to be target expansion sectors: construction, engineering, nuclear, social care and retail. It is estimated that 750,000 new apprenticeships will be offered by 2014/15. These target sectors are strong across the region, so the Apprenticeships scheme offers a good opportunity to improve the skills available to businesses locally and provide a ready source of future skilled labour. With funding available to support the scheme, these Apprenticeships would also allow individuals to contribute directly to the regional economy.

Traineeships are an important part of the Government’s drive to tackle youth unemployment. They give young people aged 16-23 the skills and experience they need to be able to compete for Apprenticeships. It’s essential that providers engage with employers to ensure the opportunities available are appropriately designed.

Inspiration Vision

Launched in September 2013, the Government’s Inspiration Vision calls on employers, schools and colleges to work together to provide more inspiration for young people. The aim is to provide more real-life contact with the world of work and support them in making important life decisions such as where to work.

Local, regional

and national leadership

University Private sector

Not-for-profit associations

Enthusiastic citizens

Dialogue Enabling

Creation of prototypes Supporting

Renewal Open attitude

Source: Future of Government: Tomorrow’s leading public body. PwC, June 2013, page 28.


Digital connectivity

Better connectivity is not only required in how the region works together, both across cities and between stakeholders. Better connectivity is also needed in the digital space.

Social, mobile, data analytics and cloud computing are changing the game, putting more power in customers’ hands and forcing organisations to prove their relevance. Businesses need to change the way in which they work and support clients.

In May 2011, Devon and Somerset were successful in securing £31 million of Broadband UK (BDUK) funding to improve coverage across the two counties. The project covers Plymouth, Torbay, Devon County Council, Somerset County Council and North Somerset areas. Boosted by a further £10 million from the local councils, work is well underway to deliver improved rural broadband. 800,000 premises, 65,000 businesses and 1.6 million residents will be covered by superfast broadband by 2020.

Cornwall is also making major inroads. Superfast Cornwall, which is jointly funded by the EU, BT and Cornwall Council, is bringing fibre optic broadband to Cornwall and the Isles of Scilly. By 2015, 95% of homes and businesses will be covered by one of the best quality broadband provisions in the world.

Overall, Devon and Cornwall have one of the best deployment programmes in Europe and enough superfast fibre optic cable to lap the world three times. This level of progress is unprecedented in Europe and should support business and residential infrastructure going forward. It will also help the public sector deliver better and more efficient services.

The opportunity to lead the way here is substantial. Investment is already secured, so the focus should now be on maximising its potential and attracting business to the region. This can be done by promoting the ease with which regional hubs can connect with London and other key locations, and marketing the higher quality of life made possible by using the latest technology.

Affordable housing

Housing is another key variable in assessing quality of life. In October 2013, the housing charity Shelter called for action to tackle a ‘desperate shortage’ of affordable homes, quoting that only six in every 100 homes in Devon and Cornwall were affordable. Furthermore, the Institute for Public Policy Research concluded that not only were houses too expensive in proportion to wages, but there was a lack of housing stock in general.

A lack of land in rural locations and a lengthy planning process result in poor uptake in building affordable housing. With house prices and council waiting lists growing, the property sphere is under increasing pressure.

The lack of affordable homes for individuals and families living in Devon and Cornwall is one of the most serious problems facing rural communities in the 21st century. People are being forced to move away from the countryside, particularly in the more picturesque areas of the region, and house prices vary significantly even within a relatively small radius.

In Plymouth, the average house price over the last three years was £225,019. In South Hams, 18 miles to the west, the average increases to £455,000. Redruth in Cornwall averages £169,904, while buyers 11 miles to the west in Truro need in the region of £267,000. High interest areas such as Exeter also generate a premium on price, with average selling prices in excess of £230,00030. When we consider that the UK average is £173,685, it is clear why housing is such a key driver for the region.

The process of developing housing in rural communities is complex and time consuming. Some of the key challenges include identifying robust evidence of housing need, a site with a willing landowner who has the potential to gain planning permission, and a scheme that will stack up financially.

Balancing the attractions of a rural location (green belt areas are a big plus for the region’s tourism and agriculture activities) with the need for affordable and suitable housing is delicate.

How can the region maximise its natural resources while providing housing stock to meet existing needs, as well as the affordable housing required to attract labour and business?

30 Land Registry, rolling three year average of house prices, April 2014


31 English housing survey headline report 2012 to 2013, published 26February 2014, Department for Communities and Local Government

One way to improve the situation is to promote ‘empty house’ initiatives that aim to reclaim empty properties and put them back on the market at affordable rates. This prevents buildings from standing empty and preserves housing stock, without requiring any additional land stock. Although schemes like this are run throughout the region, there is generally a lack of promotion and awareness of them.

Another way to support the development of new stock is to improve the planning permission process. Often, housing developers hold land stock for several months or even years before permissions to build can be obtained. This often deters developers from investing in the region; after all, the value in their business is housing stock, not land stock.

Consideration must also be given to the suitability of housing, alongside affordability. Affordable properties in more urban towns and cities are often smaller and less long-term solutions for families migrating into the area. As a result, people are often forced to look to more rural towns to find a property that meets their needs. As well as being more expensive, these properties’ rural location drives up the cost of living, as discussed in section 1.

It is essential that developers and local government work together to offer affordable, suitable housing in key locations across the region, designed to support the labour force and community as a whole.

More radical ideas for addressing the housing shortage, as suggested by certain quarters, include offering tax breaks to individuals willing to downsize and put their properties back on the market. 49% of owner occupied properties were under-occupied in 2012-1331. Such action would have a significant impact in Devon and Cornwall, where it is estimated that even higher volumes of properties are underused (given the higher proportion of second homes in the area). This problem is exacerbated by the region’s age structure.

Other mechanisms, such as banning second homes or applying the same council tax rate to second properties (which currently receive a tax break in

many parts of the UK) have already been implemented across the region. In April 2013, South Hams became the latest Council to ban preferential council tax rates for second homes, delivering some tax savings. However, future regional savings are expected to be limited. Additional, more extreme property tax measures would be difficult to police.

Far easier options include promoting existing schemes designed to assist individuals onto the property ladder, and targeted marketing on current developments. Such actions would ensure properties reach those who need them most in a timely, efficient manner – returning the benefit to the economy as quickly as possible.


How can the region fund the necessary changes?

Unfortunately, this well-known lyric continues to hold true in times of recession. A lack of funding is still holding back growth, particularly in funds to support fledgling businesses and maintain essential services. The Government is increasingly looking at alternative funding streams, such as competitive funds, to leverage private sector investment – for example, the Single Local Growth Fund launched in March 2013. In this increasingly competitive environment, it is vital that local partners collaborate to secure much needed funds.

Competition is also rife for private sector investment. This necessitates a strong, connected marketing strategy that highlights the benefits of investing in the region, as outlined earlier in this section. In this context, collaboration is essential to ensure that finance is distributed in line with regional priorities and in a way that provides investors with the expected return.

Priority must therefore be given to a small number of areas that will have the biggest impact for the local population. Success in these areas will boost confidence in the region and enable local businesses to deliver growth on the ground.

Key investment criteria

Developing a strategic plan for investment requires an evidence-based, objective view of the current state of affairs and of the infrastructure needed by business to prosper in the area. In addition, it requires a clear vision of where this infrastructure needs to evolve in order to deliver future growth. The first task is to assess the existing infrastructure supporting growth.

Categories might include transport (all modes), utilities, telecoms (including broadband), housing and commercial property, public spaces as well as education, cultural and leisure facilities. A number of questions must then be asked:

• Is this infrastructure adequate?

• If not, which parts are sub-standard?

• Which parts are outstanding and attractive to inward investors?

Based on this assessment, key local (and regional/national) stakeholders should then identify future projects and goals, and prioritise them for investment.

• Public – Is there public support for priority projects?

• Access to finance – Are the relevant parts of local and central government able to work with the private sector to fund and finance this project?

• Collaboration – Are the public and private sectors willing to engage with one another to plan and deliver the priorities?

• Track record – Does the lead public agency have the track record required to deliver on time and to budget?

• Supply – Does the construction sector and its supply chain have the required capacity, labour, skills and materials?

Based on the answers to these questions, the final step is to put together the strategic infrastructure plan. This should outline a list of investment priorities and those responsible for them, along with the required resources and support. Public and private sector bodies must then work together to put the plan into action.

Money makes the world go

round!


The Heart of the South West LEP has secured £2.9m from DEFRA to develop a Rural Growth Network (RGN). The aim is to create a sustainable rural economy through a network of rural enterprise hubs. These offer an extensive package of support for businesses across Devon and Somerset, helping to overcome barriers to growth. The Devon and Somerset RGN is the result of a collaboration between Devon County Council (the Accountable Body) and Somerset County Council, on behalf of the Heart of the South West LEP.


It is also vital that the region plays to its strengths. Going forward, its key assets are: its international reputation for marine-related industries, further bolstered by the award of the Plymouth and Peninsula City Deal, its strength in nuclear construction and operations and leadership position in manufacturing and agriculture, along with its strong public sector presence. Together with these things, the region’s high-quality environment, social enterprises and wider community support will provide a solid framework for future growth. It will also make the area more attractive to new and existing residents, tourists and inward investors. It is critical that the message to market is positive and highlights the strengths of the region, rather than the more negative aspects that have historically been a focus.

There are a number of ‘quick wins’ available to Devon and Cornwall – projects that can be implemented at little cost and potentially deliver significant benefits for the region.

We have already alluded to some of these in this document:

• Funded apprenticeship schemes – Linking businesses and skills together.

• Volunteering/non-exec mentoring – Leveraging the skills and experience of the retired population to support businesses and entrepreneurs in the region.

• Maximising connectivity – Making full use of the region’s strong digital framework to attract business and extend the region’s reach.

The cost associated with the above is largely administrative. But with collaboration between stakeholders, relevant processes and activities could be coordinated and monitored easily, with limited financial investment. This is what makes these ‘quick wins’ compared to more extensive projects, such as the remediation works needed on the transport network following the storms of Winter 2013.

With public funding in short supply, competition for funds is here to stay. The same holds true for private investment. It is imperative that both public and private funds are put to the best possible use, maximising the returns for taxpayers and adding value in the most appropriate way for a local area. It is also vital that neighbouring local enterprise partnerships (LEPs) and other public bodies do not compete for funds. Instead they should work together to ensure investment is brought into the wider region. Benefit for one is benefit for all.

Private sector companies also have a responsibility here. Businesses need to ensure that they make use of the existing support available to them, such as the Apprenticeships scheme, to drive future growth.

Although purse strings are still tight, they are beginning to loosen. There are funds available for stakeholders who work together to make a good business case and articulate clear aims that are aligned with delivering benefits for the wider economy and driving growth.


Agenda for action

In 20:20 Vision – The Strategic Potential of Devon and Cornwall we set out the key challenges facing Devon and Cornwall in the medium term if they are to bridge the gap between where they stand now and where they want to be in 2020. There is a continuing agenda for action needed across a range of stakeholders if the region is to bridge this gap and achieve success in the changed climate (the future has been altered indefinitely by the recession and stakeholders must now focus on what the ‘new future’ looks like).

City leaders and other local public bodies• Balance a necessary internal focus on

efficiency, cost-cutting and reform with an external focus on growth.

• Define the region’s identity (or brand) so that it is attractive to both businesses and the public. Provide a clear marketing strategy for the region aimed at attracting talent and business and supporting retention of the existing talent pool.

• Play a leading role in encouraging collaboration between public and private sectors.

• Lead by example in talent management by accelerating apprenticeship offers and designing jobs that engage and motivate individuals.

• Work together with businesses, education providers and other stakeholders to define the region’s vision – what does the region want to be famous for and what are its priorities?

• Working with other stakeholders, draw up a strategy that outlines the enablers for the region to succeed and grow – skills, infrastructure and investment – as well as plans for implementing this strategy.

Central government• Devolve decision-making powers to a

local level, alongside responsibility for delivery, to enable local bodies to prioritise for their regions.

• Set out a clear and transparent mechanism for assessing and distributing funds, providing easier access to these.

• Drive the development of demand-led skills provision and empower individuals to make well-informed decisions around their careers and other key life choices.

• Remove the administrative burden on local government in terms of approving housing schemes and other developments, facilitating improvements to infrastructure.

• Continue to focus on balancing the cost of living with wages, effectively reducing the ‘artificial’ competitive advantage held by larger towns and cities and making rural areas more attractive.

Education providers• Improve dialogue with businesses on

their training and skills requirements.

• Promote and welcome business engagement in schools and colleges to inspire talent in their future career choices.

• Be responsive and agile to the needs of both businesses and students to maximise the chances of matching people with available opportunities.

• Develop a shared language with employers and collaborate to ensure courses are demand-led.


Businesses and other private sector individuals

• Agree clear, consistent public-private priorities and then collaborate to deliver on them.

• Articulate clear education and training needs in discussion with education and training providers.

• Take greater responsibility for delivering on economic and strategic goals, such as engaging with schools to help young people understand the world of work and the local opportunities available, to capture talent early.

• Make active use of apprenticeships at all levels as part of the range of career paths into employment.

• Use the existing skills and experience available in the region’s retired population to help support up-and-coming businesses/individuals.

• Raise the profile of their companies in the region through marketing themselves move widely outside the region.

Individual residents and the wider public

• Engage with employers to understand the world of work while still in education.

• Become better informed about the opportunities in the region to ensure you make an informed decision about where to settle.

• Volunteer in the community, using your skills and experience for the wider good.

The drivers behind the agenda for action are summarised in the three key principles below:

Creating the conditions for growth – the enabling landscape

Maximising opportunities within the region – improvements in infrastructure and employment

Building on the region’s distinctiveness – playing to your strengths

• Improving transport and accessibility

• Providing sustainable solutions to weather conditions (flood defences, snow management)

• Unlocking the delivery of stalled housing sites and increasing overall housing stock

• Delivering energy infrastructure

• Enhancing digital infrastructure

• Delivering demand-led education

• Ensuring collaboration between businesses and the public sector

• Increasing use of employment schemes such as Apprenticeships

• Increasing use of retired population through volunteering, non-exec roles and mentoring

• Executing a better marketing strategy focused on the benefits

• Covering all major areas of interest

• Concentrating on key sectors such as marine and nuclear


About the authors

Heather AncientOffice Senior Partner

01752 [email protected]

Heather joined PwC in 1994 and leads the Plymouth office. She is responsible for a number of the firm’s private and public sector clients in the South West. Heather had overall editorial responsibility for the document and is its sponsor to market.

Stephen PateyAssurance Director


Stephen is an experienced director based in our Plymouth office and has overall responsibility for the audit of a number of high profile regional clients, many of which are owner managed businesses. Stephen sat alongside Pippa on the project Steering Group, assisting with the review of content and facilitating the consultation events.

Pippa ClarkeTax Director


Pippa joined PwC in 2014 and leads the Plymouth office tax team. Having settled in the region a number of years ago, Pippa has extensive experience working with local businesses and individuals, advising them on a range of tax issues. Pippa was a member of the project Steering Group and assisted the team by reviewing the initial content. She also facilitated the consultation phase of the initiative.

Alison McCormickSenior Manager


Alison is an experienced Senior Manager in the Plymouth office and led the Steering Group for 20:20 Vision – The Strategic Potential of Devon and Cornwall. Alison took overall responsibility for the initial content of the document, research and the marketing campaign. She is its principal author.


Vicky BoyesMarketing Support


Vicky is a member of the support staff whose primary role is to support the office’s marketing function. She coordinated the marketing campaign for the Steering Group and assisted in a support capacity throughout the preparation and publication phases.

Research

Rob WattsAssociate


Adam CroneySenior Associate


Adam is a Senior Associate in our Plymouth office and was a member of the Steering Group for the project. He has a background in health and social care and led the research into the people stream of 20:20 Vision – The Strategic Potential of Devon and Cornwall, as well as assisting with the marketing campaign.

Rob joined the Plymouth office in 2013 and works on a number of private and public sector clients across Devon and Cornwall. He was a member of the Steering Group for the project. He conducted economic research in support of the programme and assisted with the marketing campaign.


This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2014 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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