Category Archives: East Devon economy

Standard

Posted by

Posted on

16 Sep 2018

Posted under

Austerity cuts, Axminster, East Devon economy, EDDC, Transport (local)

Comments

1 Comment

Axminster by-pass – east or west?

East: developers of eastern extension to the town have to chip in = cheaper solution

West: no developer funding but solves the problem of Weycroft Mill bottleneck = more expensive solution.

Owl’s guess: no common sense or forward planning = cheapest wins

“Axminster Town Council has called a special meeting to discuss plans for the town’s long awaited north-south relief road.

It follows growing concerns about the current ‘preferred’ route and will take place on Thursday, September 27, at 7.30pm in The Guildhall. It will be open to the public.

Under present proposals the £20million scheme takes the road to the East of the town, emerging on the Lyme Road.

But campaigners are becoming increasingly worried that this will not solve the major problem of the Weycroft Bridge bottleneck.

And there are calls that the alternative route – to the west of the town – should be looked at again, despite its much higher cost.

* East Devon District Council has appointed consultants to produce a masterplan for the bypass and the associated housing development which will help to fund it, following its successful bid for £10 million government money towards the project.”

http://www.midweekherald.co.uk/news/campaigners-want-route-to-go-west-of-the-town-1-5695852

Standard

Posted by

Posted on

15 Sep 2018

Posted under

Cranbrook, Developers/ Development, East Devon economy, EDDC, Greater Exeter, High Street decline

Another blow to a new Cranbrook town centre?

A large shopping centre development at Sowton was recently turned down by Exeter City Council because it did not fit in with their vision for local centres in the large new housing developments springing up in that area. The scheme called for an out-of-town shopping centre with the likes of Next, Boots, etc.

The developer, rather than appealing the decision, has swiftly withdrawn the original plans and submitted a revised application, thus avoiding the hefty cost of submitting new plans.

They now say they will (possibly) include a post office, pharmacy and gym and maybe other smaller retail elements. This, they feel, fulfills the requirement for a more local feel to the plans.

Whether Exeter City Council agrees with this, or if an appeal is successful if they still reject it remains to be seen.

But it certainly puts a damper on those retail ventures willing to open up in secondary, nearby areas such as Cranbrook and those developers willing to take a chance on anything but (highly profitable) housing.

Standard

Posted by

Posted on

13 Sep 2018

Posted under

Accountability, DCC, East Devon economy, EDDC, Local Government Finance, Post-Brexit Adjustments, Regeneration

“Bombshell No Deal Brexit documents show councils fear billions in lost funding and soaring poverty”

Remember, EDDC has confirmed it has done NO Brexit planning:

https://eastdevonwatch.org/2018/09/06/eddc-has-done-no-brexit-planning/

“Councils have compiled a dossier of No Deal Brexit documents which warn that thousands could be left destitute in communities across the country.

Local authorities fear they may be left “unable to effectively support local communities” but they warn that the Government is failing to heed the warnings.

They say that a post Brexit downturn could see businesses up and down the country go bust.

While a series of major investment proposals have been put on hold due to Brexit.

A number of councils suggested Brexit will make desperately needed regeneration projects “unviable”.

Strikingly some of the most stark warnings come from areas which voted to Leave.

Fenland District Council rank the risk associated with a no deal Brexit on the same level as that of a natural disaster.

The area in the East of England depends on unskilled labour from Eastern Europe and 70% of people living there voted to Leave.

It produced a corporate risk register in June which gave the risk of failing to take action to prepare for Brexit a score of 25/25.

That rating is reserved for items with the potential for “catastrophic impact” and equal to the threat posed by a natural disaster.

Hackney Council raised concerns over the impact of Brexit on local job growth, with one local business claiming Brexit had “traumatised our office and the sector we cover”.

Hackney also echoed other local councils in reporting a spike in hate crimes since the 2016 referendum.

Harrow Council in London also predicted an increases in levels of poverty, homelessness and health inequalities in the Borough.

Lancashire County Council highlighted the importance of EU trade, with 62% of Lancashire’s exports (£1,876 million per year) destined for the EU market.

Around 300 councils replied to the Freedom of Information requests which were put in by campaigning group Best for Britain- making the project one of the largest bodies of research into Brexit planning undertaken so far.

Commenting on the findings, Best for Britain champion Layla Moran MP said: “These internal council documents are devastating. They show Brexit will cause tremendous damage to their ability to provide the quality public services towns and cities up and down the country so desperately need.

“The only thing scarier than these documents is the fact that some councils haven’t done them – effectively they’re walking off a cliff blindfolded.

“The finger should point directly at those extremist Brexiteers in the Tory party with a gun to the country’s head. We cannot let this sinister gang of hucksters usurp common decency and sensible politics.

“Thankfully, the fight isn’t over. We can still put a stop to this madness through a people’s vote with the option to stay in the EU. Only then will the people of this country be able to compare the devastation of Brexit – as shown in these documents – with the bespoke deal we’ve been building up over the past four decades.”

https://www.mirror.co.uk/news/politics/bombshell-no-deal-brexit-documents-13238369

Standard

Posted by

Posted on

13 Sep 2018

Posted under

East Devon economy, Inequality, Rural communities, Small and Medium businesses

“Cash Machines Closing At A Rate Of More Than 250 A Month”

Rural areas and small businesses hit hardest:

“…A total of 76 protected ATMs – those which are located one kilometre or more away from one another – were lost in the period.

Of those, 43 had Post Office over-the-counter services available nearby while 12 could not be accessed by the public. Some 21 machines were shut down with no alternative access to cash.

The Federation of Small Businesses expressed concerns that the closures could hit small business owners in remote areas. …”

https://www.huffingtonpost.co.uk/entry/atm-closures_uk_5b993a88e4b0162f473313f0

Standard

Posted by

Posted on

8 Sep 2018

Posted under

Business Rates, East Devon economy, Small and Medium businesses

“Business rates ‘to blame for high street decline’ “

“The boss of Tesco has warned that if the government does not reform business rates soon it will have contributed to the decline of high streets across Britain.

Dave Lewis, chief executive of the country’s largest supermarkets group, said: “A decision not to reform business rates by the government will be a statement of policy.

“It will be a deliberate decision not to support the retail industry. We believe businesses should pay taxes, as it is the responsible thing to do, but should the government be laying a heavier burden on a shrinking industry?” He said that the government was in danger of “overmilking” the retail industry through “completely disproportionate” and excessively high business rates and risked damaging the sector.

Business rates — a tax linked to the value of property that a business occupies — have become an increasingly fractious issue in the retail industry as traditional bricks-and-mortar operators labour under a tax burden not shared by online-only rivals.

Tesco’s rates bill is almost £700 million. The total annual business rates tax take for the Treasury is £30 billion. Mr Lewis said that while corporation tax had fallen [from 28 per cent to 19 per cent since 2010], inflation-linked business rates, which hit the retail sector harder than any other, had increased.

“Business rates have gone up while corporation tax has gone down very significantly and that is very different to everywhere else. The UK has the second highest property-based tax in the Organisation for Economic Co-operation and Development at 4.5 per cent [of the total tax take]: it is only 1 per cent in France and Germany,” he said. “The approach of most of the countries in the OECD is to tax businesses on their profitability and to help businesses with investment, but business rates is a tax on any investment I make in my stores.”

Mr Lewis, who is in the middle of implementing a turnaround at Tesco, said in 2015 that retailers faced a “lethal cocktail” of rising taxes and costs at a time of falling profits. Yesterday he said that distress on the high street, where House of Fraser recently failed, showed his prediction was coming true.

Although the Treasury has made some revisions to business rates to ease pressure, Mr Lewis said that it had tinkered around the edges, despite the fact that British retailers made a huge contribution to the economy by generating employment and wider consumer spending, particularly in rural areas “where there might not be much else going on”. A recent study by KPMG estimated Tesco that contributed £37.3 billion in gross value added to the economy, a third of the construction sector’s total GVA in 2016.

There are growing calls for a tax on sales generated by online-only retailers. Mr Lewis said that if retailers were struggling to pay rates because their sales had fallen, “you need to look at where those sales have gone and if they are being taxed in the same way”. He said that a tax on online sales without a reform of business rates would result in a “double whammy” for retailers with stores and online divisions.”

Source: The Times (pay wall)

Standard

Posted by

Posted on

7 Sep 2018

Posted under

Accountability, Councillor Marianne Rixon EDA, East Devon Alliance, East Devon economy, High Street decline, Independent Councillors, Sidmouth/ Sidford/ Sidbury

Comments

3 Comments

Independent EDA Councillor Rixon speaks up for Sidford parking

Here is her speech to Cabinet which led to reconsideration of an increase in car parking charges.

“My comments echo those made earlier by Richard Eley, on behalf of Sidmouth Chamber of Commerce.

I would ask you to reconsider the proposal to standardise car park fees. Evidence in my Ward suggests that a one size fits all policy will not help small businesses to survive, let alone thrive.

Sidford is a clear example. We have already lost many shops over the years. Everyone knows that retail is suffering due to competition from online shopping from the likes of Amazon which makes huge profits but contributes little to the UK economy.

Business rates weigh heavily on SMEs, which pay a disproportionate rate by comparison with large business.

Add to this the increase in the minimum wage, high levels of VAT and general running costs.

And then the local council decides to hike up the cost of parking to your customers by a whopping 150%. Taking Sidford Spar as an example, why would anyone pay a 50p premium for half an hour to buy a loaf of bread or pint of milk when they can drive to Temple Street and park for nothing or onto Waitrose and park for nothing, or even Newton Poppleford and park for nothing?

The Operations Director of Spar told me they “lost significant customer flow when the Doctor’s surgery relocated and now these increases will only hit our business even more.”

The owner of Lexys, the hairdressers, said, “I am not happy at all with the charges proposed. If I were to raise my charges by 150%, I wouldn’t stay in business.”

Cllr Pook stated “the Council has listened carefully to what has been said during the public consultation and the cabinet report recommendations reflect the views of the respondents”.

This is not the case with regard to Sidford, where 64% agreed with the proposal to introduce free parking for the first two hours. Nor does it reflect the views of business owners.

Looking at the current revenue generated, this car park contributes only 0.32% towards annual revenue at £10,676 for 2016/17. There are 60 spaces which generate only £29 a day for the whole car park (so less than 50p per space per day). Raising the parking fees by 150% would only equate to £43.50 per day, which is still miniscule. And apparently the amount for 2017/18 was even less, £10,535, so still less than 50p per space per day).

In summary, a dramatic increase in car park charges could hasten the closure of more local businesses through lack of custom. Precisely how much do the Sidford companies pay in business rates? Could it be more than £29 per day? I would suggest that this information be made available, so that it can be reviewed by Cabinet.”

Speeches by councillors for Lympestone and Phear Park led to reconsideration of their charges as reported here:

https://www.devonlive.com/news/devon-news/parking-charges-rise-devons-cheapest-1948853

Standard

Posted by

Posted on

12 Aug 2018

Posted under

Developers/ Development, East Devon economy, East Devon Tories, EDDC

“Flybe … a perennial basket case”

Owl recalls the many, many times East Devon District Council Tories (and in particular their former Leader Paul Diviani) has used Flybe as an indicator of the district’s economic prowess … hhhhmmmm!

From today’s Sunday Times:

“As the boss of regional airline Flybe, Ourmières-Widener (her married name) is one of a handful of female airline bosses.

She has one of the toughest jobs in the industry. Flybe has been a perennial basket case, disappointing investors repeatedly in its short life as a listed company. After floating on the stock market in 2010 with a valuation of £200m, it is now worth just £90m.

In 2014, under Saad Hammad, then chief executive, it returned to investors with a begging bowl, raising £156m in a deeply discounted rights issue with a promise to build “resilience and profitable growth”. Yet its performance since then has been lacklustre at best. Flybe’s first — and only — annual profit as a listed company was £2.7m, in the year to the end of March 2016. …

Her plan is to shrink Flybe to success by cutting its fleet from a peak of 85 aircraft in May 2017 to 70 by 2020. … “

Source: Sunday Times (pay wall)

Standard

Posted by

Posted on

7 Aug 2018

Posted under

Cranbrook, Developers/ Development, East Devon economy, EDDC, Exeter City Council, Greater Exeter, Infrastructure, Sustainability

Cranbrook – just another suburb of Exeter and now unlikely to get its long-promised town centre?

Exeter City Council is working in partnership with surrounding District Council Partners, isn’t it? Or is it?

The Councils of East Devon, Teignbridge, Mid Devon and Exeter have been working for some time now towards a combined Strategic Plan – “Greater Exeter” – though we are not allowed to know EXACTLY what that means until after the next local elections in May 2019. Public consultation, which had been timetabled for this year was postponed until then but no reason given. It seems unlikely to offer good news.

But perhaps recent developments in the Exeter/Cranbrook area might shed just a little light on forward plans.

Firstly, it does makes sense to share ideas and come up with a plan to benefit the whole area rather than cram everything into the bulging-growth City of Exeter. Indeed, Plymouth is doing the same thing with its surrounding councils.

In theory, it allows the spread the housing evenly throughout the wider area, enables the building of strategic new roads and other infrastructure and improves bus and rail services to help manage the ongoing problems of congestion in the City. Basically, spread the costs, the developments, and share in the joint benefits this will bring. We see an example of this here:

https://eastdevonwatch.org/2018/08/06/western-east-devon-profits-from-extra-buses-eastern-east-devon-gets-nothing-time-to-join-west-dorset/

East Devon has been working hard with Exeter for some years now with developments in their contiguous areas, creating the new town of Cranbrook, the Exeter Science Park and Sky Park (all on East Devon land) to provide workspace and office accommodation close to the City of Exeter.

However, EDDC has found it impossible to persuade retailers (and their partner developers) to take space in their planned “Cranbrook Town Centre”, which currently consists of only half a dozen small shops and a pub. A second “town centre” was mooted for the next phase of housing development but has never been firmed up.

Cranbrook and other massive housing developments close to the Exeter city boundary (Monkerton, Pinhoe) are now simply dormitory estates to Exeter, relying on the retail offer provided by the City and Sowton to supply the ever-increasing housing in these locations.

The reluctance of retailers and developers to come forward to provide the shops in the heart to the new town of Cranbrook is not difficult to understand. Most retailers are going through a massive change with most companies reporting closures, downturn in profits and many high street names pulling away from the traditional high street.

However, in the greater Exeter area, there is yet another reason for the reluctance of investment into the Cranbrook retail offer. Despite the abandonment of the Bus and Coach Station site last year for retail redevelopment, Exeter’s planners are recommending approval for a massive new “Out of Town Retail Park” close to the MET office and only a short journey from Cranbrook:

https://www.devonlive.com/whats-on/shopping/massive-exeter-retail-park-includes-1866178

The Exeter planners state the application is contrary to their own council policy as the proposed development will not be a ‘local centre’. But the scheme does provide, as part of a wider package, a “local function” – and so it is extremely unlikely that a more ‘traditional’ local centre will be delivered within the newly built housing estates at Monkerton and Hill Barton area of the City. The City planners conclude this is the only realistic opportunity to secure local retail facilities in the area – including Cranbrook.

The applicants claim the scheme will offer a mix of use classes including food retail, non-food retail, restaurants and cafes with ancillary drive thru’ offerings too.

If this application is approved by Exeter City Council next week (13th August 2018) and goes ahead this will be another massive hurdle that East Devon will need to overcome to persuade retailers to locate in their own town centre. As a result, if Exeter planners have their way the likelihood of any retail local centre at Cranbrook coming forward look to be close to zero.

Exeter councillors are being told the City will benefit from a massive economic injection associated with the scheme – with a £15 million construction investment, 260 average construction jobs during the build, 520 FTE permanent jobs, £12 million estimated total annual wage bill across the development, £9 million estimated total annual expenditure in the UK economy by employees of the development, 160 FTE jobs supported in the wider economy by the development, £1.1 million annual business rate contribution and finally up to £2.2 million in Community Infrastructure Levy.

And if this bid fails, there are three more massive retail offerings in the pipeline within half a mile of the same area and all within the Exeter City Council boundary:

https://www.devonlive.com/news/devon-news/exeter-smyths-next-mcdonalds-costa-1769559

So where does that leave “partnership”? And Cranbrook?

Exeter Council coffers will benefit substantially, and East Devon District Council get a large “Out of Town Retail Park” on the edge of their almost shop-less Cranbrook new town.

What a great partner Exeter City Council is proving to be by cherry-picking the juicy benefits and income streams provided by their partners’ hard work in providing the dwellings that will provide the customers to flood into Exeter’s new retail park.

Cranbrook is basically becoming an eastern version of Alphington (Marsh Barton, Matford) – just another suburb of congested, polluted, not-that-great Exeter.

Standard

Posted by

Posted on

27 Jul 2018

Posted under

Accountability, Austerity cuts, East Devon economy, Local Enterprise Partnership, Scrutiny, Transparency

Comments

1 Comment

“Government proposes shake-up of Local Enterprise Partnerships”

More to folliw …

On 24 July 2018, with little or no publicity, the government brought out a review of Local Enterprise Partnerships:

https://www.gov.uk/government/publications/strengthened-local-enterprise-partnerships

“The review proposes a number of changes to boost the performance of LEPs, increase their diversity and ensure they’re operating in an open and transparent way. These include:

up to £20 million of additional funding between 2018 to 2019 and 2019 to 2020 to support the implementation of these changes and embed evidence in Local Industrial Strategies

supporting LEPs to consult widely and transparently on appointing new Chairs and improve board diversity

an aim for women to make up at least one third of LEP boards by 2020 with the expectation of equal representation by 2023

a mandate for LEPs to submit proposals for revised geographies including removing situations in which 2 LEP geographies overlap … “

https://www.gov.uk/government/news/government-proposes-shake-up-of-local-enterprise-partnerships

Standard

Posted by

Posted on

22 Jul 2018

Posted under

Accountability, East Devon economy, EDDC, Greater Exeter, Growth Strategy, Local Enterprise Partnership, Productivity

Comments

1 Comment

We MUST stop embedding Local Enterprise Partnership growth figures into local strategies

Readers know Owl bangs on about our LEP promising to double growth in Devon and Somerset up to 2030. Their figures then go on to be embedded in many Devon and Somerset council growth strategies.

Now we read (Sunday Telegraph Business – paywall) that the Office of Budget Responsibility believes that “growth” will “flatline for [at least] a decade, reaching as little as 2% over that period.

Will the Greater Exeter Strategic Plan (public consultation about which is being postponed until after 2019 local elections – a very ominous sign) use LEP figures or more pessimistic government forecasts?

And then there’s the effect of Brexit ……!

Standard

Posted by

Posted on

12 Jul 2018

Posted under

East Devon economy, East Devon Growth Point, Greater Exeter, Growth Strategy, Productivity

Good luck with that delivering of doubled growth, Local Enterprise Partnership!

And recall about EDDC and Exeter City Council wanting to make the Cranbrook “Growth Point” a digital miracle!

“Research has found that Exeter is the worst digitally connected city in the UK.

New data from GoCompare compares and contrasts 57 major business hubs across the country, taking into account an array of digital infrastructure such as WiFi availability, broadband speed and mobile/4G coverage.

Exeter ranked 57 out of the 57 cities with just 6.31 per cent 4G coverage, an average internet download speed of 26.84mbps and 1,166 people per public WiFi hotspot.

Unsurprisingly, some of the biggest cities in the UK ranked as the most connected including London, Manchester and Birmingham.”

Standard

Posted by

Posted on

2 Jul 2018

Posted under

Austerity cuts, East Devon economy, Rural communities, Transport (local)

“Bus services in ‘crisis’ as councils cut funding, campaigners warn”

Owl says: put up parking charges and encourage people to use buses … then get rid of the buses!!! This way lies madness.

“Campaigners have called for the government to act to help dwindling bus services, as a report showed council funding had almost halved since 2010.

Budgets to subsidise routes were reduced by another £20m last year and 188 services were cut, according to the Campaign for Better Transport.

Its Buses in Crisis report found that squeezed local authorities across England and Wales had taken £182m away from supported bus services over the decade, affecting more than 3,000 bus routes.

Council funding has preserved funding for services, particularly in rural areas, that private firms have deemed unviable, and where no alternative public transport exists, accounting for more than one in five journeys. But most either cut funding – or spent nothing – last year.

Spokesman Steve Chambers said the research showed “the slow death of the supported bus”, with huge implications for people accessing jobs and education, as well as local economies, health, congestion and air pollution. He added: “The government must wake up to the crisis hitting local buses before it’s too late. We want to see a proper national strategy for buses backed up by funding, like those that already exist for all other modes of transport.”

The Local Government Association said it recognised the importance of buses but that councils had been put in an impossible position by the funding squeeze and the £200m annual obligation to fund bus passes for pensioners.

LGA transport spokesman Martin Tett said: “Councils know how important buses are for their residents and local economies and are desperate to protect them. It’s nearly impossible for councils to keep subsidising free travel while having to find billions of pounds worth of savings and protect other vital services.” …

… According to research published today by another campaign group, Greener Journeys, every £1 invested in local bus infrastructure brings more than £8 in wider economic benefits, as well as combating car pollution and congestion. DfT figures due to be published this week are likely to show worsening congestion in the UK’s largest cities, where traffic speeds have fallen and traffic is 14% greater than five years ago.”

https://www.theguardian.com/uk-news/2018/jul/02/bus-services-in-crisis-as-councils-cut-funding-campaigners-warn

Standard

Posted by

Posted on

14 Jun 2018

Posted under

Accountability, Conflict of interest, Developers/ Development, East Devon economy, East Devon Growth Point, Greater Exeter, Local Enterprise Partnership, Local Plan, Planning System, Productivity

Devon and Somerset – a new Klondike gold rush?

The LEP housing numbers, anticipating 50,000 new households in Devon, are almost certainly driven in part by the heroic assumptions about the local economy, as Owl has pointed out many times.

As we know, the LEP assumption is 4% growth per annum for the next 18 years. Such a sustained economic boom would invoke a ‘Klondike’ style immigration rush into Devon and Somerset, as the economies of all of the rest of the western world failed to compete with us at that level.

East Devon’s current Local Plan is based upon an anticipated annual UK economic growth rate of 3% from 2007, which has turned out to be just over 1%.

This, of course, is why many of our employment sites are dormant (and one of the many reasons why we do not need a new site in Sidford), and all our town centres are struggling – there simply isn’t demand.

Even if economic growth was to average 3% growth from now until the end of the Plan period, which looks incredibly optimistic, we would still have 33% more employment land than we need, according to East Devon’s own numbers.

The LEP’s projections have been laughed at by everyone – especially, Owl gathers, in Whitehall.

But they feed into a whole raft of housing and economic projections, that will ultimately emerge as policy around the region.

What assumption will be used for the Greater Exeter Strategic Plan (GESP) projections, Owl wonders? Now delayed until after the next local council elections in 2019?

Will the GESP team dare to condemn the LEP numbers, or will they adopt them, even when they must know they are nonsense?

What might happen if those without vested interests in the growth of expensive housing in the area were for once denied a say due to conflict of interest?

And where are the signs of the revisions of our Local Plan, based on current realities, that are required every 5 years?

Standard

Posted by

Posted on

14 May 2018

Posted under

Austerity cuts, East Devon economy

“Unions slam Devon companies after rising number of temporary jobs leave thousands without job security”

“… Across the UK, the percentage of workers on a non-permanent contract has stayed relatively stable at around 5% over the last decade – although that still leaves 1.6 million people affected nationally.

Meanwhile, Exeter also has a particularly high proportion of temporary workers, with nearly 8% of working adults in this position – an estimated 5,400 people.

Elsewhere in Devon, the figure was also higher than average – in both Torridge and Plymouth, for example, 7% of workers are temporary, while in Torbay 6% are.

A further 5% of workers in South Hams are non-permanent, while east and north Devon both have the lowest proportion in our area, with 4% in this position. …”

https://www.devonlive.com/news/devon-news/unions-slam-devon-companies-after-1563512

Standard

Posted by

Posted on

5 May 2018

Posted under

Accountability, East Devon economy, Growth Strategy, Local Enterprise Partnership

Dear Local Enterprise Partnership: about that promise to double growth … again

“California has overtaken Britain to become the fifth biggest economy in the world in its own right. …”

as opposed to:

“In comparison, Britain’s growth has slowed to a virtual standstill in the first three months of 2018, hitting just 0.1 per cent in the first quarter.

Chancellor Philip Hammond blamed the sluggish performance on bad weather but the Office for National Statistics said that had been only a minor factor.

A contraction in construction, weak manufacturing growth and a squeeze on consumer spending led to the weakest economic activity in the country for five years.”

https://www.mirror.co.uk/news/uk-news/california-overtakes-britain-become-fifth-12483939

To paraphrase Dorothy in The Wizard of Oz:

“Devon and Somerset ain’t California, Toto”!

Standard

Posted by

Posted on

24 Apr 2018

Posted under

East Devon economy, East Devon Growth Point, Exeter City Council, Growth Strategy, Inequality

Bad news for East Devon commuters: “Exeter rated one of the worst places to make a living in the UK”

So growth doesn’t equal wealth – who would have guessed!!!

“… TotallyMoney’s research into the best places to make a living ranked Exeter ninth from the bottom of 59 towns and cities in the UK.

Featuring 59 UK towns and cities, the company analysed median take-home salary, average monthly mortgage repayment, cost of living, employment rates and business closures.”

https://www.devonlive.com/news/devon-news/exeter-rated-one-worst-places-1494891

Standard

Posted by

Posted on

9 Apr 2018

Posted under

Accountability, Austerity cuts, East Devon economy, Productivity

“Services best delivered locally, says study”

Owl sees a problem: these groups need GUARANTEED funding for minimum 5-10 years. Chances of that happening? Zero. Hand-to-mouth funding can be worse than none at all – offering false hopes.

“Commissioning local community organisations to deliver services boosts local economies, says a study.

The pilot study found that together 10 local community organisations enabled approximately 1,400 jobs and £120m of gross value to be added to the local economy.

Commissioned by Locality and conducted by NEF Consulting, the study calculated the impact of each organisation’s value chain.

The findings are part of Locality’s Keep it Local campaign, calling for local commissioning of public services, and are revealed in the charity’s Powerful Communities, Strong Economies report.

The report, published at a time when large national organisations delivering government contracts are struggling, sets out the benefits of local commissioning of public services.

It shows that not only do local organisations have the skills and capacity to deliver public services, there are huge benefits to the local economy when they do.

It sets out how local authorities can ensure the billions of pounds they spend each year on services has maximum community and economic benefit.

The Halifax Opportunities Trust (HOT) is one of the organisations included in the study.

NEF Consulting found that by hosting a range of services and enterprises, they contributed approximately 300 full time equivalent (FTE) jobs and £14m of gross value added (GVA) to the local area.

Locality also calculated the economic impact of their contract for the Jubilee Children’s Centre on the local Calderdale Council area.

It found every £1 of income generated by HOT at Jubilee Children’s Centre created £2.43 for the local economy.

HOT chief executive Alison Haskins said: “Halifax Opportunities Trust was established 17 years ago by local people to support regeneration and tackle poverty.

“Since then, we’ve grown to be an important local employer and purchaser.

“We realise that the way we operate as a community business is just as important as the activities and programmes we run to support businesses, employment, learning, families and social connections.”

Ms Haskins said HOT cared passionately about Halifax and about Calderdale.

“We will be here for the long term, not just for the length of a contract and will continue to contribute to local economic resilience and social value.”

Locality chief executive Tony Armstrong said: “Commissioners must heed the warning of the collapse of Carillion, and the profit warning at Capita.

“It’s time to halt the trend of outsourcing at scale to multi-national companies.

“Mega-contracts delivered by large national providers fails to meet people’s needs and wastes money.

“Organisations rooted in their local communities have deep knowledge and understanding of the area, strong existing relationships and the expertise to support people with complex needs.

“But their contribution goes much further – with huge impact on local jobs and the local economy.

“There is one sensible way forward for commissioning pubic services – keep it local.”

Locality is launching a set of free resources and toolkits to equip councillors, local authority commissioners and community organisations with practical advice to enable them to realise the local commissioning of services.

The three toolkits reflect the fact that council leaders, commissioners and community organisations need to work together to realise the benefits of local commissioning.”

More information about the events and toolkits to download can be found here.

http://locality.org.uk/our-work/campaigns/keep-it-local/

Standard

Posted by

Posted on

30 Mar 2018

Posted under

Accountability, East Devon economy, Greater Exeter, Growth Strategy, Local Enterprise Partnership, Scrutiny, Spin, Transparency

Don’t count your (productivity) Unicorns before they hatch!

From David Daniel:

“The “Joint Committee” (representatives from 23 organisations across Devon and Somerset – political balance rules do not apply) has just endorsed the final version of the HotSW Productivity Strategy.

But would you buy the proverbial second-hand car from an organisation that takes such a cavalier attitude to presenting facts and figures? Would you trust it to invest hundreds of millions of pounds of your taxes wisely? And, if you did, would you have any faith in its ability subsequently to deliver the goods?

Let’s start with the press release statement: “The Productivity Strategy aims to double productivity in the area over 20 years”. It does no such thing. The maximum claimed productivity gain in the strategy is to jump from a currently “assumed” 1.7% local annual productivity growth (probably nearer 1.5%) to 2.2%. No doubling here even if you accumulate the change over 20 years. For interest, historic average UK productivity growth rate is 2.0% and in the league table of LEPs, HotSW ranks 32nd out of 37 (London and South East dominate).

The 20 year timescale is a bit fuzzy as well. The introduction to the adopted strategy says: “Our ambition is simple – to double the size of the economy over 20 years.” In the consultation draft, however, it said: “Our ambition is simple – to double the economy in 18 years.” So which is it? On page 36 the Productivity Strategy is clearly marked (as it was in the consultation draft) 2018 to 2036, and none of the other numbers has changed. In my book that is 18 years, not 20!

Anyhow, what is being doubled is not productivity but the size of the economy (a combination of growth in both productivity and employment). Except the economy won’t be doubled using any of the combinations of growth in productivity and employment mentioned in the strategy, in either 18 or 20 years. The best on offer is a 3% compound growth. If that started instantaneously this year, and it obviously won’t, it would yield 70% growth in 18 years or 80% in 20 years. To double the economy, a compound growth rate of 3.94% (4%) would be required. Long term average UK growth rate is 2.6%.

It is proposed to achieve this 3% economic growth by “holding” employment growth to 0.8% per annum (add 2.2% productivity growth to 0.8% employment growth = 3%). We are effectively at full employment now. The Office for National Statistic population projections do show the South West population as a whole growing over this period at around 0.8% (0.76%) per annum. However, we have an ageing population and the annual increase of those classified as of working age is only 0.16% (16 to 64 for all genders). This will leave a shortfall of around 83,000 workers by the end of 18 years. Pension age is increasing to 66 by 2020 and to 67 between 2028 and 2028. Even if all 65 to 69 year olds are added to the work force they would not make up the shortfall. They would probably not be at the cutting edge of productivity either. So the plan can only work with major inward migration. This could be difficult in the post Brexit world.

Having ambition is one thing; plucking numbers out of the air and throwing them around without regard to the real world is quite another. There is no discussion of how long the transition from the slow to fast lane might take, delivery considerations come later. The hype assumes instantaneous change. How can anyone take this seriously?

Perhaps the members of HotSW and the Joint Committee believe they will all be long gone in 18 or 20 years and can’t be held to account. But what they have signed up to is so dramatic that failure will very soon become apparent. Brexit, surprisingly, might herald a refocussing of minds as suggested by Philip Aldrick, economics editor The Times, 20 March:
“….One theory doing the rounds is that the Treasury wants to know if its business support schemes are working. A crunch is coming. England’s 39 local enterprise partnerships, designed to boost growth, are funded largely with EU grants. For 2014 to 2020, they secured €6.51 billion of European Structural and Investment funds. Of that, €2.5 billion was allocated to “enhancing the competitiveness of small and medium enterprises”, about a tenth of which went to less developed regions.”

“After Brexit, now formally delayed until 2021 after yesterday’s transition deal, the money will no longer make the round trip via Brussels. It will come directly from Westminster, bringing with it more political accountability. If the money is not driving productivity, which it patently isn’t, the Treasury may decide the financial medicine could be administered more effectively.”

Standard

Posted by

Posted on

26 Mar 2018

Posted under

Austerity cuts, Coastal communities, East Devon economy, Inequality

Coastal towns top bankruptcy list

“Britain’s seaside towns are now hotspots for bankruptcy lawyers – with people in coastal resorts becoming insolvent far faster than anywhere else.

Seaside towns dominate a list of the top areas of the country for personal insolvencies, a new study shows. The Isle of Wight, Great Yarmouth, Scarborough, Whitby and Torquay were said to be struggling to recover from decades of decline in coastal industries and the growth of overseas holidays.

Research among almost 600 Parliamentary constituencies by accountancy firm Moore Stephens placed Plymouth Moor View at the top, with 47 insolvencies per 10,000 population, compared with a national average of around 20.

The report said seasonal tourism was being hit by increasingly cheaper flights and package holidays.

Jeremy Willmont of Moore Stephens said: “Personal debt in many British seaside towns shows no sign of improving. “Seaside areas now come with a handicap that they are struggling to shake off. People living in these towns continue to fall into insolvency as the coastal economy fails to keep up with the rest of the country. “At this point, debt in the UK’s coastal towns seems to have entered something of a downward cycle.

“As the economy along the coast declines, unemployment worsens. This may result in many more highly educated millennials relocating to larger cities, deterring new employers from relocating to the area.”

https://www.mirror.co.uk/money/overdrawn-sea-towns-twice-many-12252381

Standard

Posted by

Posted on

9 Mar 2018

Posted under

Accountability, East Devon economy, EDDC

Comments

1 Comment

Street trading in East Devon – when bureaucrats go wild!

Translation: we made what was supposed to be a simpler system MUCH more complicated and now we are frantically paddling under the water while trying to make it simpler again but, being bureaucrats, we are finding this difficult”. Good luck with that.

“… since the introduction of the new system last October, the council says that it has received commented that it can be confusing and inflexible.

… Now though the council has announced they will be reviewing the street trading policy with a view to removing the street trading application fee charge entirely, giving clearer guidance on the activities that do and don’t require consent, a less detailed application form with less supporting information required and a more streamlined procedure for processing the application. …

… Cllr Steve Hall, the chairman of the licensing and enforcement committee, said: “Having listened to our customers, the council has identified the need to make refinements to ensure that it delivers in the way which was intended.”

https://www.devonlive.com/news/devon-news/street-trading-rules-changed-too-1317267