1.

Summary

The following decision is sought:

Adoption of the South Hampshire Economic Strategy and Action Plan and Approval of the principle of participation by the County Council within an economic development forum for south west Hampshire and Southampton.

2.

Reason

The County Council in its corporate strategy states its commitment to economic prosperity and the south Hampshire Economic Strategy is a key building block for the County Council and its partners.

3.

Other Options considered and rejected

Cabinet may wish to "fine tune" some of the elements of the strategy, but failure to adopt would undermine the complex process of consultation, which has already been undertaken and could jeopardise its implementation.

4.

Conflicts of Interest declared by the decision maker or a member or officer consulted

None.

5.

Dispensation granted by the Standards Committee

Not applicable.

6.

Reason(s) for the matter being dealt with if urgent

Not applicable.

Approved by:- Date:-

1.

Background

In June 2001, Hampshire Economic Partnership (HEP) commissioned a study of the economic needs of south Hampshire from Consultants GHK International. The work was funded by the South East England Development Agency (SEEDA), HEP and the Local Authorities of south Hampshire.

The terms of reference sought five key "deliverables":

1. review of current strategies

2. "SWOT" of the local economy

3. strategy, policy and actions, linking with the "Regional Economic Strategy"

4. engagement of partners within the consultation process

5. recommendations on improvements to the partnership structures aimed at promoting economic prosperity.

The focus of the study was to be on action and delivery within a 5 year time frame. It was intended to be complementary to the sub-regional planning and transportation study currently being undertaken in south Hampshire.

The study and its recommendations have now been published and a copy has been sent to every Member of the Cabinet.

2.

Key conclusions

The study took into account the issues of business competitiveness and social inclusion, and identified eight main areas for action:-

2.1

INNOVATION

The sub-region has great strengths in research, innovation and Higher Education. Recent programmes such as "Enterprise Hubs" have started to help translate innovation into enterpreneurial activity but more could be done. Examples of how the County Council could respond are:-

- assist the re-inforcement of the role of Chilworth Science Park

- identify another site in the County for a "research park".

2.2

UNDERSTANDING BUSINESS NEEDS

More work needs to be undertaken to identify business needs, assist develop local impact through supply chain initiatives, added value and international trade.

The report identifies a number of "pillar companies", which are seen to be important "drivers" of the local economy.

Possible County Council response - the Best Value review of "Economic Prosperity" has identified the need to develop a clearer "Business Plan", which can give guidance on the Council's view of Hampshire's economic future and the policies it will be adopting. The "Outcome Report" will make specific recommendations. In addition, the Economic Development Office is allocating more resources to developing closer relationships with business ("aftercare programme") and supporting international trade seminars and missions.

2.3

ENGAGING THE LARGE COMPANIES

Local economic partnerships and the Local Authorities should make more effort to involve the large employees in the area.

Response: The County Council is committed to support for Hampshire Economic Partnership and has directly assisted in the recruitment of a new "Executive Manager". It is a specific remit of this post to seek greater involvement in HEP of the larger corporate companies both in time and funding. HEP is the appropriate vehicle for this.

2.4

MANAGEMENT COMPETENCIES

The report sees these as critical to economic success, but can identify no agency with a clear remit to assist in this area. This issue needs to be considered by SEEDA, the local Learning and Skills Council and Business Link Wessex.

2.5

SUSTAINABLE LAND USE POLICIES

The report identifies the importance of linked policies on housing, labour and land for economic success. Under-supply of housing is seen to contribute to shortages of affordable housing and, thus skills. This issue needs to be addressed in the land-use studies currently underway.

2.6

COMMUTING

The report sees this as detrimental both to economic efficiency and environmental quality. Efforts should be made to reduce journey to work distances. This issue is to be addressed in the transport strategies for south Hampshire.

2.7

URBAN RENAISSANCE

More use can be made of the opportunities in the two Cities of Southampton and Portsmouth, both by increasing densities and regenerating brownfield sites. The roles of SEEDA and to some extent the MOD are crucial. The County Council response will be to focus on areas of greatest need, such as Havant and Gosport. Local Strategic Partnerships will be the key vehicles.

2.8

RURAL RENAISSANCE

The report identifies the basic issues taken up in much more detail in the recently published Curry Commission report on the future of farming and food. These include CAP reform, development of local produce, improved sustainability etc. The response will be led by HEP's "Rural Task Group" supported by the County Council in its various projects for the countryside and the economy in rural areas.

3.

Partnership Issues

The report reinforces the key role of HEP, which is seen by SEEDA as its key strategic partner in the area. The County Council endorses this view and supports HEP both at Board level and through many of the "Task Groups".

The Report also identifies the absence of an effective co-ordinating body for economic issues and initiatives in the south west of the County, in and around Southampton. It draws comparisons with the successes, which have been achieved in south east Hampshire and recommends partners to set up a similar body to the "Harbour Forum", which is a Member-led body for the Local Authorities around Portsmouth Harbour.

4.

Conclusion

The report and its recommendations are a useful starting point for the development of more co-ordinated, integrated actions by HEP and its partners. South Hampshire's economy is widely regarded as "under-performing". It will only be through the alignment of the strategies and plans of all the public agencies (Local Authorities, SEEDA, Learning and Skills Council, Business Link Wessex, Universities etc) that success will be strengthened.

HEP and its Board will be considering how action is taken forward in the future and by whom. The County Council will make its contribution, based on its corporate aim of "achieving economic prosperity".

The County Council will also need to consider its position in relation to the proposals to set up a co-ordinating economic development forum for south west Hampshire and the Southampton area.