Introduction

The North West Devon Economic Partnership (NWDEP) Strategy 2000 – 2006 covers the districts of North Devon and Torridge and the northern half of the Borough of West Devon (see Map). It replaces the North West Devon Economic Partnership Strategy 1998 – 2001, published in July 1998. It has been prepared in the light of the rapidly changing context for economic development at the European, national, regional and local levels. The main triggers for the review of the NWDEP Strategy were the launch of the SWERDA Regional Strategy in October 1999 and the EU decision to approve the South West Objective 2 Single Programming Document in December 2000. These and other changes are described below.

European Union Matters

Reform of the Common Agricultural Policy

The EU proposals for reform of the CAP were finally approved at the Berlin Summit. The reform was less radical than some member states, particularly the UK, had hoped. The implications for agriculture in North Devon are described below in the section dealing with the MAFF Strategy document "A New Direction for Agriculture". The implementation of the proposals is contained in the England Rural Development Plan, also described below.

European Structural Funds

The Objective 5b Programme closed on 31 December 1999. It is believed to have provided funding in the North West Devon area of about £12mn. The approved Objective 2 area includes the whole of Torridge and North Devon Districts and West Devon Borough. This is an increase in the area covered by Objective 5b. The Objective 2 Programme runs from January 2000 to December 2006. The programme will have the following priorities:

Priority 1: Community Economic Development

Priority 2: SME Development Technology & Innovation

Priority 3: Strategic Investment in Traditional Industries

In addition the programme will have horizontal themes covering the environment, equal opportunities and information & communication technology.

At the time of writing, the Objective 2 Single Programming Document has yet to be ratified by Brussels. It is hoped that this will be achieved before the end of the year, enabling applications for funding to be made in the New Year, (2001).

Single Currency

Since the launch of the Euro in January 1999 it has lost 20% of its launch value against the pound and the dollar. HM Treasury continues to make preparations for joining the Euro. This is to be subject to the outcome of a referendum to be held, in all probability, in the next Parliament. In the meantime the strength of the pound has contributed largely to current problems in agriculture and threatens the pace of recovery in the manufacturing sector.

UK Government Policy

Economic Policy

Interest rates continue to be the main determinant of the economic cycle. A soft landing to the anticipated downturn in the economy was achieved in 1999. The Bank of England is predicting continuing growth in the economy beyond 2000. The policy of both Government and the Bank of England is to maintain inflation within a defined band, thus ensuring economic stability. Government continues to use indirect taxation and control of public spending to manage the economy. This has the disadvantage of leaving interest rates as the only mechanism to control inflation. Any rises in interest rates are likely to contribute to continued strengthening of the pound against the Euro, with further adverse consequences particularly for the manufacturing and agricultural sectors of the economy.

Allied to the issue of interest rates is the rise in house prices nationally. Some commentators have pointed out that the housing economy was out of sync with the wage economy for most of the last century. If regional divergences are added to this, then further growth in house prices could widen regional disparities. This trend is barely sustainable in the high wage economy of the South East. In the low wage economy of the far South West it is even more divisive. Restrictions on house-building on greenfield sites could inadvertently fuel the increase in house prices, due to the higher site preparation costs in assembling and developing brownfield sites, which are scarcer in rural areas in any case. In addition to this the ownership of second homes has risen to 20% of the housing stock in some parts of the area, thereby further excluding local people from the housing market.

Another issue of broader economic policy that will continue to impact the area is that of fuel prices. Whatever fiscal policy the Government adopts on fuel, upward pressure on oil prices is only likely to increase, as global stocks diminish. This will have several implications. It is likely to set rural economies at an even greater competitive disadvantage in some sectors; it will increase the rationale for local purchasing and added value initiatives; and it will put even greater emphasis on local renewable energy initiatives. The issue therefore presents itself as both an opportunity and a threat.

New Deal

This continues to be the Government’s main initiative to deal with inequalities in the labour market and with social exclusion. There are New Deal programmes for the under 25s, Lone Parents and the over 50s. It is proving to be a successful policy, although most of the recent New Deal initiatives have been targeted on urban areas. However, there are local difficulties in the outputs for New Deal Under 25s relating to the short-term nature of employment.

Statutory Minimum Wage

This was implemented in April 1999. Early signs are that, at the relatively modest level of £3.70 an hour (from April 2000), it has had little impact on unemployment, either positively or negatively.

Review of Assisted Areas

North West Devon is no longer an Assisted Area. The Government has created a new Third Tier in the DTI Assisted Areas scheme, where Enterprise Grants will be available. These are defined, initially, by the Rural Development Areas as far as this area is concerned. Applications are on a competitive basis with calls for bids from companies each year.

Regional Development Agencies

The South West of England Regional Development Agency, (SWERDA), published a Regional Strategy in October 1999. The structure of this document has, with the Single Programming Document for the SW Objective 2 area, played a large part in shaping this Strategy.

The Regional Strategy has identified four strategic drivers. ‘Drivers’ are the driving forces for realising the aspiration behind the Vision and for attaining the quantifiable goals behind the objectives. The four strategic drivers are:

1. The Environment

2. Innovation and Technology

3. Skills and Learning

4. Partnership South West

SWERDA has prepared several Frameworks for Action. These, with some changes in emphasis, form the basis for the Action Plan in Part 2 of this Strategy. They are:

1. Inward Investment

2. Innovation and Technology

3. Skills and Learning

4. Business Support

5. Sector Development

6. Community Regeneration

7. Improvement of the Economic Infrastructure

8. Improving the Image of the Region

9. Understanding the State of the Region

Training and Enterprise Councils

Following the Government’s Post-16 Review, it was announced that Training and Enterprise Councils (TECs) would cease to operate from 31st March 2001. The role of the TECs is to be replaced by two new organisations, the Small Business Service (SBS) and the Learning and Skills Council (LSC), both of which are described below.

Small Business Service

PROSPER has won the franchise to deliver the Small Business Service within Devon and Cornwall. Broadly speaking, SBS will retain the Business Link brand of business support but in addition will signpost businesses to the most appropriate business support agency. SBS will be run in partnership with the public and private sector, through Gateway Partnerships, one of which will cover Devon, (excluding Plymouth). This should enable local partners to develop the service to suit the needs of the local area. It is hoped that a physical Business Link presence will be co-located with the other agencies comprising the NWDEP.

Learning & Skills Council

The Government will also launch a Learning & Skills Council in April 2001. This will sweep away the Further Education Funding Council (FEFC) and the training element of TECs, as well as taking over funding responsibility for post-16 education from local authorities. There are to be 47 Local Learning & Skills Councils, one of which will cover Devon & Cornwall. There are to be three Gateway Partnerships in the region, one of which will cover Devon. It also is hoped that an LSC presence can be attained in the local area.

A New Direction for Agriculture

MAFF published its Strategy for Agriculture in England in December 1999. This sets the context for agricultural policy, including support mechanisms. It was followed by the Rural Development Plan for England, approved in October 2000. The seven year £1.6bn programme is the main plank of the government’s strategy. It is a step towards switching farm spending from production support to schemes which boost the broader rural economy, advance environmentally beneficial farming practices and help to modernise and restructure the farming industry. The schemes in the programme will be financed by a combination of the allocation of funds from the EU Rural Development Regulations (RDR), proceeds from modulating farmers’ payments under Common Agriculture Policy (CAP) direct production subsidies, new government match-funding of the receipts from modulation and existing national budgets.

Performance and Innovation Unit

The Cabinet Office Performance and Innovation Unit published a report on The Rural Economy in December 1999. This has influenced the Rural White Paper, published in November 2000. The report is recognised as being a radical document challenging conventional Government policy.

Rural White Paper

This section to be inserted after publication of the RWP

National Lottery – NESTA

The National Endowment for Science, Technology and the Arts has established an Invention and Innovation programme. Its aim is to help people turn ideas into products, services or techniques with social and commercial benefit by providing a wide-ranging package of support.

A Life’s Work

The Audit Commission published a report on economic development in September 1999. This looks at the role of local authorities in delivering economic development services, in the context of Best Value. It makes a series of recommendations that will be of relevance to the Economic Partnership. In particular it emphasises the need to measure performance.

Key Issues

The following are considered to be key issues arising from the context:

1. How to ensure that the Strategy is socially inclusive

2. How to ensure that the proposals of the Strategy are sustainable

3. How to ensure that the proposals of the Strategy are targeted at the right sectors and communities

4. How to ensure the area benefits from these opportunities and works to overcome the difficulties

5. How to ensure that the implementation of the Strategy is co-ordinated between the agencies

6. How to ensure that decisions are taken at the appropriate local level

A VISION FOR NORTH WEST DEVON

The work of the Partnership encompassed in this strategy is central to the realisation of a vision for North West Devon as:

A thriving and vibrant place to live and work where environmental and cultural resources are sustained and enhanced

Within this vision, the following overall aims and key objectives have been established:

Overall aim

To work for the creation of a productive, sustainable and inclusive economy.

Objectives

1. to provide opportunities for wealth creation, employment and training

2. to improve access to services and transport

3. to target action to address identified problems

4. to secure balanced communities and vibrant towns

Underlying Principles

The following principles will guide the implementation of the strategy:

1. equity of opportunity and social responsibility will be incorporated into every action, with the aim of improving the quality of life of all who live in the area, regardless of gender, age, race or ability

2. the implementation of the strategy will be based on the principles and practice of sustainable development – ensuring the integration of economic, social and environmental objectives to achieve a sustainable future for the area

3. actions will seek to meet local needs through local resources wherever possible and to strengthen local distinctiveness

4. the agencies will adopt a co-ordinated approach and fully engage with local communities in the design, implementation and management of projects that will ensure local ownership and improve local capacity for future development

5. actions will primarily support the organic growth of the economy where development and diversification will help reduce vulnerability to external forces. Inward investment policies will aim to select companies which strengthen "business to business" trading relationships

6. the high quality of the natural and built environment – one of the foundations for the area’s future prosperity and quality of life – will be managed and maintained and, where appropriate, enhanced

SOCIO-ECONOMIC PROFILE OF NORTH WEST DEVON

The NWDEP Area*

Population Trends and Projections

In 1998, the area covered by the North West Devon Economic Partnership had an estimated population of 190,000, a 12% increase over the 1981 population. This is a rate of growth almost three times above that for the UK as a whole, largely reflecting in-migration to the area, particularly older persons. (Table 1)

The gap in population growth rate between urban and rural areas is forecast to continue over the next decade. Increases in population of between 3.8% and 7.0% are forecast for North Devon, Torridge and West Devon between 1998 and 2011. In contrast, Plymouth’s population is only expected to increase by 2.8%. (Table 2)

The growth in population in the rural areas is forecast to be a result of continued in-migration, as well as a further ageing of the population (as life expectancy increases), rather than significant increases in the birth rate or as a result of significant increases in the numbers of young persons. (Tables 3 and 4)

Key Points

1. Population growth of 12% has occurred across the NWDEP area since 1981, as people have moved into the area

2. Growth is forecast to continue at a faster rate than in the urban areas of Devon

3. The total population in the NWDEP area is forecast to increase by 7%

4.  Between 2001-2016, over one third of the population growth in the NWDEP area is forecast to be in the over 60 age group

The Working Age Population

Economic activity rates in the NWDEP Area, expressed as a proportion of those of working age, are broadly comparable to the South West average, and consequently higher than the national figure. However, in Torridge the rate is 77%, 5 points below that of the South West region. (Table 5)

There are a number of reasons for economic inactivity, most of that have negative connotations – invalidity, sickness, ill health, although economic inactivity can be due to early retirement (more relevant in the rural sub-regions).

It is worth re-emphasising the population projections for the NWDEP area which show a marked decrease in the number of young people and the working age population and striking growth in the ‘grey army’, with one third of the population in the area forecast to be over the age of 60 by the year 2016. This will have an undoubted impact on the economy of the area. (Table 6)

Key Points

1. The NWDEP Area has a relatively high level of economic activity, although this may be affected by seasonal and part time employment

2. Torridge has a lower than average level of economic activity, possibly reflecting its remoteness and adjacency to another remote district of Cornwall (an Objective 1 region)

3. The working age population in the NWDEP area will eventually begin to decline if these trends continue

*The NWDEP Area consists of all the wards within the North Devon and Torridge District Council areas and 13 wards that lie within the northern part of West Devon. Where possible data is given for the ‘Area’. However, due to the methods of data collection some data can only be sourced at a District level, therefore, where data is given for the NWDEP Districts, the data for West Devon District the southern part of the District, including Tavistock and the suburbs of Plymouth.

EARNINGS, INCOMES AND GDP

This section presents an analysis of relative prosperity in the NWDEP Area, covering Gross Domestic Product (GDP), average earnings and household income. For each indicator, it can be seen that the NWDEP area performs considerably worse than the regional and national averages.

Gross Domestic Product

GDP per capita figures often reflect concentrations of economic activity rather than necessarily household or individual wealth. With this in mind, Devon County Council has undertaken to adjust the raw GDP data produced by ONS to take into account travel to work patterns. These data represent a more accurate picture across the area. Further work on economic models for each of the Districts is being undertaken by Devon County Council and the District Councils during 2000-2002.

Overall prosperity in the NWDEP Area, as measured by GDP per capita, continues to lag significantly behind the national average. In 1995, based on an index with UK=100, GDP per capita in the NWDEP Districts was between 74% and 84%, compared to a South West average of 96. The adjusted GDP per capita is higher in North Devon because of the concentration on manufacturing and service activity in the urban centre of Barnstaple. By comparison, GDP per capita was only 74% of the UK figure in West Devon and 77% in Torridge. (Table 7)

The lower levels of GDP partly reflect the predominance of agriculture, essentially a low wage sector in these areas, as well as significant tourism employment, (another low wage industry), retirement and lack of added value.

Earnings and Incomes

Figures for average earnings from the New Earnings Survey are not available at a District level, therefore data used in Table 7 and the following text is based on figures for the Objective 2 programme area.

Average earnings are significantly below national levels – almost 20% in 1998. The disparity is more pronounced for males than for females, where earnings for males are a little over 20% lower than the English average, with earnings for females 15.8% lower. Given that the Devon data includes Exeter and the more prosperous eastern parts of the County, actual average earnings in the NWDEP Area are likely to be significantly lower than the Devon data suggests. (Table 8)

Whilst the differential between male and female earnings is not as great as nationally, time series data indicates that both male and female earnings have remained persistently below national levels, with little sign of convergence.

The prevalence of low earnings is reflected in the figures for the earnings of the lowest 10% of the workforce. While 10% of the male workforce in the UK earned less than £202 per week, a tenth of males in rural Devon earned below £178 per week, equivalent to less than £9,000 per year. Other data shows that in North Devon in 1998 47% of the working population earned less than two thirds of the national average, while in Torridge the figure was 57%, compared to the Devon figure of 39% and the GB figure of 30%. (No data available for West Devon due to small sample size). (Table 9)

The dependence of the NWDEP Area on relatively low wage sectors is reinforced by the composition of employment in the area. A Location Quotient (LQ) of greater than 1 indicates a proportionately higher proportion of employment in this sector relative to GB; the converse applies for a LQ of less than 1. These figures illustrate the significance of employment in the primary industries and tourism. (Table 10)

In contrast, the NWDEP Area is under-represented in relatively high wage sectors such as financial and business services. Changing the sectoral mix of employment will be a key aspect of improving the overall prosperity of the Area.

Average household incomes in 1997 were 12% lower than the UK average in the NWDEP Area. This partly reflects a combination of factors including low activity levels/high unemployment and/or low earnings. (Table 11)

Key Points

1. The NWDEP Area has a significantly lower GDP/capita than the national figure, and this reflects low levels of economic activity in parts of the area and an economic structure where low value added sectors are predominant

2. Average earnings and income per capita are significantly lower than the regional or national average

3. Female earnings continue to lag behind male earnings

4. Low earnings reflect the dominance of low wage sectors of tourism and agriculture in employment terms and of low added value in some sectors

5. The area is significantly under–represented in financial and business services, one of the fastest growing sectors in the UK throughout the 1990s

6. The area is significantly over-represented in low wage sectors such as agriculture and tourism

ECONOMIC ACTIVITY AND OCCUPATIONAL STRUCTURE

Economic Activity

Economic activity rates are the same as, or lower than, the rate for the South West region for which data are available. The lowest rates are in Torridge where this may be explained by a higher proportion of retirees.

There is clearly scope for increasing female economic activity rates as all registered economic activity rates for females fall below the regional average of 77%. Whilst female activity rates are always likely to lag behind male rates due to childcare responsibilities, for example, a significant number of women are likely to be keen to (re)enter the workforce, given sufficient opportunities. (Table 12)

Occupational Structure

Data on occupational structure are only available at a District level, therefore data includes figures for the whole of West Devon District rather than the 13 wards within the NWDEP Area. The Labour Force Survey figures used are based on sample surveys only and therefore will not tally with the AES figures for employment by industry.

27.9% of the workforce is employed in the top three occupational groups (managers/administrators, professional and associate professional), compared to 35.4% in the South West and 36.5% nationally. It is likely that, excluding the figures for the southern part of West Devon, the actual figure for the NWDEP area would be lower, being predominantly rural. (Table 13)

The influence of low wage sectors in the rural areas, especially agriculture and tourism, is also the principal factor behind the higher numbers employed in unskilled and ‘other’ occupations (which incorporates largely unqualified individuals undertaking routine tasks).

Craft and related occupations are strongly represented, despite reductions in employees in recent years, reflecting specialist employment in certain manufacturing sectors. Craft and related occupations are forecast to decline over the next 10 years.

Key Points

1. The rate of economic activity in the NWDEP Area is equivalent to that of the South West region, with the major exception of Torridge

2. The NWDEP Area is under-represented in higher skilled occupations and over-represented in low skilled occupations

3. Economic activity rates for women in the NWDEP area are considerably lower than for men

4. Craft and related occupations are forecast to decline over the next 10 years

EMPLOYMENT

Introduction

This section reviews the current employment structure using the data available from the Annual Employment Survey (AES). Due to the method used to conduct the survey, all employment is not fully captured, with self-employment, (which includes the majority of employment in agriculture), significantly under-represented. The AES data also excludes Ministry of Defence (MOD) employment in the Armed Forces. The most recent year for which data are available is the 1998 AES. Some of the data in the tables are suppressed due to confidentiality.

Employment By Gender and Type

The slight majority of employees in employment in 1998 in the NWDEP Area were male, (50.47%), whereas the national figure for male employment was 51.3% and the regional figure were 50.9%. This figure has increased slightly since 1991 when it was 47.7%.

Men still account for the bulk of full-time employees showing a slight increase of 1.6% between 1991 and 1998, whereas nationally the figure decreased by the same amount. Women also still account for the bulk of part-time employment, although this figure decreased by 4.6%, comparable to the national decrease of 4.3%. (Table 14)

The number of employees in employment in the NWDEP Area increased by almost 10,650 (19.8%) between 1991 and 1998, more than double the national increase of 8.2% and significantly higher than the regional increase of 8.2%. Of the total employment increase 69% was in full-time employment and a significant proportion, (64%), were taken up by men. Female full-time and part-time employment both increased more than the regional and national figures.

Employment in a number of sectors in the NWDEP area remains gender-dominated. 71.4% of all manufacturing employees are male, whilst 4 in 5 construction jobs are also occupied by males. (Table 151 and 15b)

Female employment dominates industries in the service sector, such as: the hotels and catering sector (59%), wholesale and retail (59%), financial services (54%), and particularly the health and social work sector (80%). A range of evidence suggests, however, that even in sectors where the majority of employees are female, often the bulk of managerial or other well paid posts are often occupied by men.

Key Points

1. Total employment in the NWDEP Area increased by 19.8% between 1991 and 1998, significantly higher than the UK and the South West growth

2. Male full time employment increased markedly, in contrast to national and regional figures, (23.6%) and female full-time and part-time employment also increased more than the national and regional figures (15.3% and 11.6% respectively)

3. Most of the new jobs created were full time, although male part time employment increased considerably, albeit from a very low base

4. Males continue to make up just over half of the workforce and account for the majority of full time employment

5. Although some convergence has occurred, most sectors remain dominated by one or other gender

6. Although women dominate in lower paid sectors they are well represented in the higher paid sectors of financial and business services, although evidence suggests often the bulk of managerial and well paid posts are often occupied by men.

Employment By Sector

For employment by broad industrial sector for the NWDEP Area, manufacturing employment is the most significant employment sector, accounting for 19% of all employees in employment, and 27% of all male employees. After manufacturing, the wholesale and retail sector is the next largest, employing more than 9,000 people in 1998, 15% of the total. (Table 16)

In comparison to GB, the NWDEP Area is over-represented in tourism-related employment (largely hotels and restaurants) with employment in tourism accounting for 14% of all employment in the 13 West Devon wards, 12.6% in North Devon and 8.9% in Torridge. The significance of the dependence on tourism related employment is evident in the employment figures for tourism dependent wards where the percentage of those employed in the tourism sector ranges from 35% in Lew Valley, (West Devon) to 77% in Georgeham (North Devon).

Whilst the proportion of manufacturing employment in general in the NWDEP Area is broadly similar to the national average, manufacture of food and drink (LQ 1.4) and wood products (LQ 1.8) are over-represented in the NWDEP area, in comparison with the South West and GB.

In addition to being under-represented in growth sectors such as business services, employment in the NWDEP Area is also more heavily concentrated in sectors where a large proportion of jobs are found in the public sector, namely education (LQ 1.2) and health and social work (LQ 1.2). Significant future employment growth in these areas seems unlikely. Agricultural employment concentration in the NWDEP Area, as recorded by AES, is also highlighted, with 4.5 times the concentration recorded nationally, and 3 times that of the South West region, although again opportunities for employment growth may be limited as the sector continues to rationalise. (Table 18)

Between 1991 and 1998, total employment in the NWDEP Area increased by 19.8%, or approximately 10,500 jobs. This increase was more than double the GB growth in employment of 8.2% over the same period. (Table 19)

The trend in employment in the NWDEP Area differed in a number of sectors relative to the national trend, in some quite dramatically. In the secondary industries:

1. Manufacturing - the long-term decline in employment continued nationally, whilst manufacturing employment increased by 7.5% in the NWDEP Area

2. Construction – this sector grew by 48.4% in the NWDEP Area, compared to a modest 6.7% growth nationally

Service sector employment trends were mixed:

1. Wholesale, retail, repair etc – a growth of 39.6% compared to the national increase of 13%

2. Hotels and restaurants - one of the largest employment sectors, in 1998 showed an increase of only 1.6% compared to a national increase of more than 12.4%

3. Financial Services and Other Business Services, which tend to be higher waged employment – followed the national trends of a decrease and increase respectively but less marked than the GB figures

Whilst total employment increased between 1991 and 1998, the NWDEP Area has performed poorly in those sectors where employment growth is forecast to be greatest in the future.

Key Points

1. The NWDEP Area has higher than average employment in sales, maintenance and repair of motor vehicles, hotels and catering, health and social work and education

2. Tourism is a major employer in many wards in the NWDEP area

3. The area has a low level of employment in transport and communications, other business activities and financial services, these being higher waged employment

4. Manufacturing is a significant employer, and provides more than one in four jobs for men

5. The public sector is a major employer and provides more than one in three of all jobs for women (although a significant proportion of these are likely to be lower skilled and lower paid)

6.Manufacturing performed better than the national average in relation to employment growth, but the performance of other higher paid sectors was disappointing

SELF EMPLOYMENT

Introduction

Information on self-employment within the NWDEP Area is limited. The Labour Force Survey provides the most up to date information (in this case 1998) but, due to the nature of the sampling, data are not always available.

The 1991 Census of Population provides much more detailed information, although this is now dated. The analysis focuses on the gender split and the industrial distribution of self-employment in the sub-regions.

Gender Differences

In 1991 in the NWDEP area, the percentage of people who were self employed was 17.4%, double the figure for the urban area of Plymouth. The importance of self employment in rural areas is therefore clearly demonstrated, particularly where male self employment is around one quarter of the working age population, compared to levels of 10% and below in the more urban areas. Again, the importance of agriculture to the rural economies is underlined.

Self-employment amongst females is much lower than for males, although, as with male self employment, the proportions are higher in the rural areas. Typical female self employment rates are around 7%-9% of the working age population in the rural sub-regions, and circa 3%-5% in the urban areas of the South West. (Table 20)

In total, 15,271 males and 5,019 females were self employed in 1991, which constituted 26.0% and 8.6% of the working age population of males and females respectively.

The majority of the self-employed operate as single entities, with no employees. In Devon as a whole, 68% of the self employed males and 61% of females were not employing labour, this is reflected in the figures for the three NWDEP Districts. (Table 21)

Sectoral Distribution of Self Employment

Grossing up from the 10% Census of Population sample, the significance of agriculture and tourism within the industrial distribution of the NWDEP District’s self employed is demonstrated. In the three Districts the total numbers of those self-employed in agriculture and tourism was over 51%. Construction also accounted for over 19% of those in self-employment. (Table 22)

Key Points

1. Self employment is a key source of employment in the NWDEP Area, accounting for approximately a quarter of the workforce

2. Males still comprise 75% of those self-employed

3. Self-employment remains heavily concentrated in a small number of sectors – agriculture, construction, retail and catering/tourism

UNEMPLOYMENT

Unemployment Trends

Trends in the number of unemployed claimants have been consistently downwards for much of the 1990’s. Since the beginning of 1996, the claimant count unemployment rate has fallen from 8.4% in Devon, to 3.9% in January 2000. This is a marginally faster rate of decline than the GB level, although not quite as rapid a fall as that in the South West region. Absolute numbers of unemployed in the NWDEP Area have fallen by 50.3% between January 1996 and 2000 compared with 52.8% in Devon, 64.6% in the South West and 46.4% in Great Britain. Table 23)

Such a rapid reduction in the numbers out of work and claiming benefit (the number of claimants in the three NWDEP Districts fell by 60% and in Devon 53%) is attributable to improvements in the local, regional and national economies in recent years. A small proportion of the reduction in unemployed claimants, however, has also occurred due to changes in Government reporting of unemployment and to changes in Government policy, i.e. the New Deal legislation.

In absolute numbers, North Devon accounts for the largest share of the NWDEP Area unemployed, 1,418 claimants (or 50%), disproportionately higher than its share of the population. Across the NWDEP Area as a whole, male claimants out-number females by close to three to one. (Table 24)

Although certain wards in the NWDEP Area have higher than average unemployment, claimant unemployment overall fell considerably during the 1990s, in line with national trends. Compared to 1996, the number of claimant unemployed persons in the three NWDEP Districts has more than halved. In the individual Districts unemployment numbers have reduced by 52% in North Devon, 55% in Torridge and 70% in West Devon. (Tables 25 and 26)

Key Points

1. Unemployment fell considerably during the 1990s in the NWDEP Districts – between 52% and 70%

2. In spite of the reduction, nearly 3000 people are unemployed in the area

3. Despite the downward trend, unemployment rates remain above the regional and national average

Unemployment By Age and Duration

In all, male claimant unemployed accounted for 69.7% of all claimant unemployed in the NWDEP Districts in June 2000. The greatest numbers of claimant unemployed across both genders were in the 45-54 age group. (Table 27)

There are more than twice as many males aged 45 years and over as a proportion of all male claimant unemployed in the NWDEP Area, when compared to GB. In all, 35.6% of male claimants are 45 years and over compared to the GB figure of 17%. The proportion of those unemployed aged under 25 in the NWDEP Area is broadly comparable with the national average. (Table 28)

61% of all claimants had been unemployed and claiming benefit for less than 6 months as of June 2000. This is by far the largest proportion of all claimant unemployed, reflecting the fact that most of the jobless find employment within a relatively short period. For areas reliant on the tourist industry, the number of longer-term unemployed will be artificially low, due to seasonal employment temporarily removing persons from the register without addressing underlying long-term employment needs. (Table 29)

There have been significant reductions in the numbers of long-term unemployed in the NWDEP Area over the last few years. Percentages for both males and females unemployed for more than one year are marginally less than nationally. For males, 24.2% of all claimants have been unemployed for more than 1 year, compared to 25.9% at the GB level, and for females, 14.9% of all claimants have been unemployed in excess of 1 year compared to a GB level of 16.8%. In both cases, however, the differences are marginal.

Nationally, there is also a greater proportion of males and females that have been unemployed in excess of 26 weeks than in the NWDEP Area. In all, 39.1% of all claimants in the NWDEP Area have been unemployed and claiming benefit for more than 6 months, compared to 41.5% at the GB level. However, it should be remembered that a number of those removed from the register are seasonally employed with characteristics closer to long-term unemployed e.g. low skills/qualifications, low motivation/aspiration.

There is a marked seasonality in the numbers unemployed and claiming benefit in the NWDEP Area, and this is the most likely explanation for the lower than average proportion of claimants who are short term unemployed. Seasonal employment opportunities will temporarily remove persons from the unemployment register. Therefore, whilst there is an overall downward trend in the numbers unemployed, the numbers who are unemployed increase in January when compared to July, particularly for those unemployed for up to 6 months. (Table 30)

There is clearly an issue related to the sustainability of employment opportunities in the NWDEP Area. The effects of temporary, seasonal employment on the claimant unemployed numbers clouds the analysis based on the numbers alone. There may be a much more deep-seated unemployment problem in the NWDEP Area that is masked by seasonal employment. Seasonal jobs will be most frequently in the tourist industry, and, as such, are likely to be low skilled and relatively low paid.

Unemployment by Occupation

The data on unemployment by usual occupation in the NWDEP area largely reflect the business base of the area with 29.5% of all unemployed in July 2000 being from unskilled occupations. This compares to 23.4% in the South West and 22% nationally. (See Table 29a)

Overall the NWDEP area has a slightly higher percentage of unemployed people in the unskilled and semi-skilled occupations than in the South West or the UK and a lower percentage of unemployed from skilled and professional occupations. However, when the figure is broken down between genders the comparison with national and regional figures is more marked. Female unskilled unemployed accounted for 22.1% of all female unemployment in the NWDEP area in July 2000, compared with 15% in the South West and 12.6% in the UK. Male unskilled unemployed in the NWDEP area accounted for 32.8% of all unemployed while in the South West the figure was 26.4% and in the UK 25.1%.

These figures may partly be explained by the proportion of both agricultural workers and those employed in tourism, (e.g. kitchen porters, chamber maids, cleaners), in the area.

New Deal

Although the overall figures for New Deal in the North Devon area are encouraging, recent data on New Deal for the under 25s have highlighted a problem with the short term nature of the job placements. It appears that 30% of those completing a job placement are returning to claim Job Seekers Allowance after 13 weeks and 50-60% after 26 weeks. The Employment Service locally is undertaking research into the reasons behind these figures and will work with partners to address them.

Key Points

1. 35.6% of those registered unemployed are aged 45 or older in the NWDEP Area, a much higher proportion than the national average (17%)

2. The proportion of those out of work for more than a year is comparable to the national average

3. The extent of long term unemployment is hidden by the availability of temporary seasonal employment, particularly in those unemployed for 6 months or less

4. 21.3% of all unemployed in June 2000 had been unemployed for more than a year, marginally less than the national figures

5. 29.5% of all unemployed in July 2000 were from unskilled occupations, 6.1% more than in the South West and 7.5% more than in the UK

6. Female unskilled unemployment in July 2000 was 22.1%, 7.1% more than in the South West and 9.5% more than in the UK

7. 30% of 18-25 year olds on the employment option of New Deal return to claiming Job Seekers Allowance after 13 weeks and 50-60% after 26 weeks

BUSINESS PROFILE

The Business Base

Small firms, and in particular very small businesses with between 1 and 4 employees dominate the business base in the NWDEP Area. Whilst this is the pattern across the UK, the proportion of business units in this sizeband is considerably higher than the regional and national averages.

The dominance of employment in the agriculture and tourism sectors is the prime cause of the low numbers of employees per business unit in the rural areas, where businesses typically employ fewer persons. This is a significant statistic given that the data will fail to capture the majority of self employed persons; also more highly concentrated in rural areas. (Table 31a)

The AES estimates that there were 8,507 business units in the NWDEP Area in 1998. 6,355, or 74.7% of these, employed between 1 and 4 employees, accounting for 14.9% of all employees. The number of units employing between 5 and 10 employees was a third more than the national rate, (12.9% compared with the GB figure of 9.4%), although the percentage of total employees was similar. At the other end of the scale, although the number of business units in the NWDEP Area employing 100 or more employees was below the regional and national figures, (0.9% compared to 1.3% and 1.5% for the South West and Great Britain), these size units accounted for significantly fewer employees (28.1% as compared to 38.9% in the South West and 42.3% in Great Britain). (Table 31b)

VAT registered businesses are a different measure of the business base than that given by the AES. To be VAT registered a business is required to have a turnover of more than £50,000 per annum, and so excludes businesses with a turnover less than the threshold. The AES captures a larger proportion of businesses (i.e. those that operate a PAYE scheme) although the data are less reliable (based on a smaller sample). VAT registered business lends itself to time series analysis. (Table 32)

In most parts of the South West the number of businesses has fallen between 1994-1998 and above regional and national trends.

At 5.8 businesses per 1,000 of the working age population, the NWDEP Area has more businesses than the regional (3.8 per 1,000) or the UK (3.5 per 1,000) averages. Once again, it is the sectoral make up of the rural economy with a higher numbers of smaller businesses that account for the marked difference between the NWDEP Area, the South West and the UK. (Table 33)

Key points

1. The NWDEP Area is characterised by a higher than average proportion of small businesses. This relates to the rurality of the area

2. The VAT data indicate an overall decline in the number of businesses in the NWDEP Area, with the performance much poorer than either the South West or UK

New Business Formation

Despite an overall decrease in the stock of VAT registered businesses over the 4 years to 1998, North Devon District recorded the highest number of business start-ups per year, with a significant increase in 1998 of 30%. However, the data does indicate that the turnover of businesses is high in all three Districts, with as many businesses failing as starting.
Despite this data, figures show that West Devon, North Devon and Torridge have amongst the lowest business formation rates in the 408 local authority areas in England, Scotland and Wales, ranking 21st, 23rd and 26th respectively. (Table 34)

The trend in the business birth rates per 1,000 of the working age population in the NWDEP Districts has been higher than the regional and national trends in each year since 1994, in some cases significantly. (Table 35)

Key Points

1. Business stocks are falling, although the rate of decline is falling

2.  There are signs that business registrations are increasing, but that business birth rates are being cancelled out by business de-registrations

EDUCATION, TRAINING AND QUALIFICATIONS

Educational Attainment

A useful starting point for this analysis is the number of young people who achieved passes at GCSE in the Devon LEA, (Devon here refers to that part of Devon not covered by the two unitary authorities of Plymouth and Torbay).

The results for 1998 show that educational attainment in the Devon LEA was above the English average with respect to GCSE attainment with 47% attaining 5 or more GCSEs at grades A* - C, compared with 46.3% in England. 96.3% attained 1 or more GCSEs at grades A-G compared with 93.4% in England. (Table 36)

Limited data is available at the District level, however, it is possible to chat a trend showing a gradual improvement between 1997 and 1999 in all three Districts with 53% of students in West Devon having attained 5 or more GCSEs at grades A*-C, North Devon 47% and Torridge 38%. (Table 37)

Devon is above the English average with respect to those sitting fewer than 2 A levels, (3.5 average point score compared to 3.0), whilst the point score for those sitting 2 or more A levels is less than the English average (16.3 compared to 17.8). (Table 38)

The National Curriculum is split into key stages, with Key Stage 2 covering pupils aged 9 to 11 years. Key Stage 2 tests are set by the Qualifications and Curriculum Authority (QCA), and are set for Mathematics, English and Science. In addition, teachers also assign a National Curriculum level to their pupils. The results provide some information about the educational performance of 11 year olds, written as the proportion achieving level 4 or above.

At their most simple level these results show the performance of pupils in each LEA relative to the national average. It should be noted, however, educational research has demonstrated the link between educational attainment and social background, not only for the individual pupil, but also for schools. This data tells nothing about the types of area the schools serves, which is a consideration that should be borne in mind when interpreting the figures.

Results for the three NWDEP Districts show that there has been an improvement during the 1997 to 1999 period with increases of between 4% and 9% in North Devon and Torridge and 13% in West Devon, compared to an improvement of 7% in the county as a whole. (Table 39)

Literacy and Numeracy

Results from The Basic Skills Agency"s report on literacy and numeracy problems amongst the population. This provides data at a District level.

The data presents a mixed picture. The proportion of the population in the NWDEP Districts with very low numeracy skills is significantly above the national average, from 18.4% in North Devon, 17.1% in Torridge and 16.2% in West Devon, compared to 12% nationally. However, for the more general indicator of those with low numeracy, Torridge performs the most poorly with 16.3% of the population, compared to 14.4% in North Devon and 12.6% in West Devon.

With regard to low and very low literacy levels, Torridge once again has a marginally higher proportion in this category than the UK with 15.5 % compared to the UK figure of 15%. In North Devon and West Devon the percentages are below the UK figure of 15%, with 14.9% and 12.7% respectively. (Table 40)

Educational Progression

The Cornwall and Devon Careers Service collects information about the choices made by Year 11 pupils. The 1998 survey was extended to include all young people with a statutory school leaving date of 1998. Much of the information presented in their 1998 report is aggregated to the Cornwall and Devon area, but there is some breakdown at the North Devon level.

At the aggregate level there is little difference between those in Year 11 who elect to continue with their education at school and those who choose a college of further education. However there are stark difference between the choices made by pupils in Plymouth and North Devon; in Plymouth most elect to stay at school, whereas in North Devon most choose college. The Careers Service"s report highlights that previous increases in Year 11 pupils continuing with their education was not sustained in 1998, dropping from 73% to 72%. (Table 41)

The Careers Service report also presents other destinations entered by Year 11 leavers for Devon as a whole.

The highest proportion of year 11 leavers either stay on at school or proceed to a further education (FE) college, 70% in Devon. However, it is likely that this proportion is far lower in the rural areas of the county.

Interestingly, in Devon, of those who entered employment, most were in a job that did not provide any training (485 compared to 332). (Table 42)

Key Points

1. Educational attainment of school pupils in the NWDEP Area are comparable to national levels at GCSE and A level and the data shows an improvement during the period 1997-1999

2. The NWDEP Districts have a higher proportion of the population with very low numeracy

3. There are lower than average levels of literacy and numeracy in Torridge

Education And Training Targets

The Labour Force Survey is used to monitor progress towards the national education and training targets. At a District level there is a problem of statistical unreliability due to small sample sizes.

Data for those attaining NVQ Level 3 or its equivalent in the NWDEP Area, expressed either as a proportion of the working age population or as a percentage of those of working age in employment, have been consistently lower than the South West region each year since 1997, although the share qualified to this level has increased against both indicators. Nevertheless, the difference between the national figure of those with NVQ level 3 and above, (41.4%), and the figures for North Devon and Torridge in particular, (34.7% and 35.3% respectively), is significant. In addition, whilst those with NVQ Level 3 attainment in the working age population has roughly matched the GB share over this time period, attainment of those employed in the workforce is lower than the national average, suggesting less than average skilled employees. (Table 43)

At the higher level, at NVQ Level 4 or its equivalent, the NWDEP Area falls further behind against the region and GB. As a proportion of those of working age, the NWDEP Area is three full percentage points behind the national average and the regional average, although overall there has been an improvement since 1997 when the margin was six and seven percentage points. (Table 44)

Considerable year on year differences due to the small sample sizes make it difficult to draw robust conclusions at a District level.

Those employees undertaking work related training in the NWDEP Area, although below the regional and national figures, show a steady increase during the period 1996-2000. In 1996 there was a difference of three full percentage points between the NWDEP Area and the regional and national figures, (9.9% in the NWDEP Area, 13.8% in the South West and 13.2% in Great Britain). This figure improved in 2000 to 13.5% in the NWDEP Area compared to 16.3% in the South West and 14.4% nationally. (Table 45)

Key Points

1. The NWDEP Area performs poorly at NVQ Level 3 and NVQ Level 4 against national and regional attainment levels, although there has been an improvement over time

2. There has been a general improvement in attainment levels at NVQ Level 3 and 4 since 1997

3. The NWDEP Districts are significantly below national targets for NVQs

4. There has been an increase in job related training in the period 1996-2000, although the NWDEP Area is still behind the regional and national figures

POVERTY AND DEPRIVATION

Much of the analysis in the preceding sections provides insight into the relative levels of deprivation in the NWDEP Area. Data on unemployment, economic activity rates and earnings in the NWDEP Area gives an indication of the spatial distribution of poverty and deprivation.

However, data at the local authority district level masks variations within these districts. There will be pockets of particular disadvantage in both urban and rural wards.

Benefit Dependency

The benefits referred to in the following, unless otherwise stated are: Income Support, Family Credit, Disability Working Allowance, Job Seekers Allowance.

While the NWDEP Area has 15% of it’s population claiming benefits, the figures vary between the Districts. Torridge has the highest number of claimants (16.5%), North Devon 15.7% and West Devon 11.8%. The Area-wide figures of those claiming Income Support is 5.7%, with North Devon and Torridge having 6% claimants and West Devon 4.8%. (Table 46)

Housing Benefit claimants are also a reasonable indicator of deprivation, since housing benefit claims are made by households dependent on other benefits, such as income support, and/or by persons with low incomes. West Devon and Torridge have lower proportions of claimant households than regionally or nationally, although part of the explanation for this may lie with the nature of the rural housing market and the length of time young persons remain in the family home. (Table 47)

Council Tax Benefit is available for low-income and welfare-dependent households, and represents a further indicator of deprivation. 21% of households in North Devon, 21% in Torridge and 18% in West Devon claim Council Tax benefit – a significant proportion of total households. (Table 48)

Indices of Deprivation 2000

The recently released Indices of Deprivation 2000 replaces the 1998 Index of Deprivation and, for the first time, utilises data at a sub district level.

The ID 2000 includes

1. six Domain Indices at ward level, (Income, Employment, Health Deprivation and Disability, Education Skills and Training, Housing and Geographical Access to Services)

2. An overall ward level Index of Multiple Deprivation 2000 (IMD 2000)

3. A supplementary Child Poverty ward level index

4. Summaries at the local authority district level of the overall IMD 2000

The new Indices enable a focus on deprivation at a small geographical level which was not possible before. In addition to this the data used does not, as in previous indices, rely on the outdated 1991 Census of Population.

Rankings at a District level, because of the aggregated data, do not, in the main, reflect particularly high levels of deprivation in some wards. However, as can be seen in the following section on ward level data, there are severe pockets of deprivation in all three Districts, with some wards ranking in the top 10% in the country.

Taking the rankings at a District level it can be seen that both Torridge and North Devon are the more deprived of the three Districts, although rarely appearing in the top quartile of the Index.

For the purposes of the IMD 2000, the lower the rank the higher the level of deprivation, the higher the rank the lower the level of deprivation. (Table 49)

Employment – this data relates to those who want to work but are unable to do so through unemployment, sickness or disability, thus measuring forced exclusion from the world of work.

North Devon, Torridge and West Devon rank 188, 251 and 319 out of the 354 Local Authorities.

Income – the data in this domain measures people who are on a low income. North Devon, Torridge and West Devon rank 185, 272 and 320 out of the 354 Local Authorities.

Average of Ward Scores – this measure, for Districts as a whole, takes into account the full range of ward scores across a District. By taking into account the more deprived wards that may have more ‘extreme’ scores, not revealed to the same extent in the Ward Ranks, it gives a more accurate picture. The scores for North Devon, Torridge and West Devon are 135, 104 and 182 out of the 354 Local Authorities – North Devon and Torridge both within the top 50% of the Index.

Average of Ward Ranks – this measure summarises the District taken as a whole, including both deprived and less deprived wards to obtain an average. The rankings for North Devon, Torridge and West Devon are 127, 87 and 161 out of the 354 Local Authorities – all within the top 50% of the index but Torridge within the top 25%.

Extent – this measure shows the proportion of a District’s population living in the wards that rank within the most deprived 10% of wards in the country. North Devon, Torridge and West Devon ranked 104, 157 and 158 out of the 354 Local Authorities – all within the top 50% of the Index.

Local Concentration Rank – the average of the ranks of a District’s most deprived wards that contain exactly 10% of the District’s population. North Devon, Torridge and West Devon ranked 111, 181 and 242 out of the 354 Local Authorities – North Devon lying within the top 50%.

Ward Level Deprivation

Within local authority districts, there are frequently wide differences in standards of living between areas and communities, with pockets of disadvantage often disguised by wider district figures, especially in rural areas. To discover these disadvantaged areas it is necessary to look at data on a local authority ward basis.

There are 8414 wards in England. Looking at the 30 most deprived wards in the NWDEP Area, according to the IMD 2000, the worst three ranking wards, which feature in the top decile of the Index, are Westward Ho!, Trinity (Barnstaple) and Ilfracombe Central, all urban wards. Sixteen of the NWDEP wards feature in the top quartile of the Index and all bar one feature in the top third of the Index. However, unlike previous Indices of Deprivation, these wards are not mainly urban but also rural wards, indicating the benefits of the use of domains for calculating deprivation.

Twenty-nine of the thirty wards, with the exception of Rolle, are placed within the top quartile, and amount to an estimated population of 80,669, a significant 47% of the NWDEP Area living in deprived wards. (Table 50)

INCOME

In the Income Domain of the ID 2000, which is based on data from non-overlapping counts of people in families in receipt of means tested benefits, Ilfracombe Central and Trinity wards rank within the top 5% of deprived wards in the country. There are four wards within the top decile and fifteen wards lie within the top quartile of this domain. (Table 51)

HEALTH

The Health Deprivation and Disability Domain uses indicators to identify people whose quality of life is impaired by either poor health or disability. Ilfracombe Central, Westward Ho! and Ilfracombe East all ranks in the top decile of this domain with a total of twelve wards in the top quartile. (Table 52)

EMPLOYMENT

Employment deprivation is defined as those who want to work but are unable to do so through unemployment, sickness or disability. Ilfracombe Central, Westward Ho! And Ilfracombe East all ranks within the top decile of this domain. Thirteen of the NWDEP wards rank within the top quartile. (Table 53)

EDUCATION

The Education domain measures education deprivation, predominantly by lack of qualifications amongst adults and children of different ages in a local area. Eleven of the NWDEP wards rank within the top quartile of this domain. Interestingly the top three are Hatherleigh, Okehampton and Broadheath, ranking 1108, 1182 and 1222 respectively. (Table 54)

HOUSING

Housing deprivation is classified in this domain as those people living in unsatisfactory housing and, in the extreme case, homelessness. Six wards rank within the top quartile of this domain and, although some of the urban wards feature in this number, North Tawton ranks as the most deprived in terms of housing in the NWDEP Area, (rank 1144). (Table 55)

ACCESS

Geographical access to services is an essential aspect of people’s everyday lives. However, this domain focuses solely on people with low incomes, (on benefits), for three of the four indicators used, as they are more likely to be experiencing the disadvantage of lack of access to services more acutely than those on higher incomes, who are in principle more able to afford public or private transport.

Seven of the NWDEP wards ranked in the top 1% of this domain, twenty-eight wards ranked within the top 5% of this domain and thirty-six wards ranked in the top 10%. In total forty-four of the sixty-nine NWDEP wards ranked in the top quartile of the domain which equates to 37% of the NWDEP total population. (Table 56)

CHILD POVERTY WARD LEVEL INDEX

The Child Poverty Index is a subset of the Income Domain Index and shows the percentage of children in each ward that live in families that claim means tested benefits. A Child Poverty Index score of, for example, 24.6 means that 24.6% of 0-16 year olds in that ward are living in families claiming means tested benefits.

Ilfracombe Central, Trinity and St Mary’s wards all have more than 50% of 0-16 year olds living in families claiming benefit. In total twenty-nine of the NWDEP wards have more than 30% of children living in families claiming benefit. (Table 57)

Key Points

1. 15% of the NWDEP Area population claim means tested benefits

2. 17% of North Devon District households claim Housing Benefit, higher than the regional figure

3. 47% of the total NWDEP population (29 of the NWDEP wards) rank in the top quartile of the most deprived wards in England

4. 3 NWDEP wards rank in the top 5% of Income deprived wards

5. 3 NWDEP wards rank in the top 10% of wards suffering health deprivation and disability

6. 3 NWDEP wards rank in the top 10% of employment deprived wards

7. 11 NWDEP wards rank in the top 25% of education deprived wards

7. 6 NWDEP wards rank in the top 25% of housing deprived wards

8. 7 NWDEP wards rank in the top 1% of wards with lack of access to services

9. 3 NWDEP wards have more than 50% of children 0-16 years of age living in families claiming means tested benefits

FRAMEWORKS FOR ACTION

The Regional Approach

The South West of England Regional Development Agency has developed a number of Frameworks for Action which will be the means by which the Regional Strategy will be implemented - they will also guide the work of the Agency.

The Frameworks will reflect:

1. The key elements of the Regional Strategy

2. The region’s prioritised sectors

3. Cross-linkages from one area of activity to another

The Frameworks and associated objectives are intended to guide the activities of sub-regional partners, as well as the South West RDA. For this reason the North West Devon Economic Partnership Strategy has, like many other sub-regional partnerships, adopted the same approach for it’s own Strategy. In this way the NWDEP Strategy and the Devon Economic Partnership Strategy will ‘nest’ within the South West Regional Strategy, ensuring consistency and complementarity across the region.

A summary of the South West RDA Frameworks for Action and associated objectives that have been developed so far are listed below.

Business Development

A: Improve the effective delivery of Business Support services in the region by ensuring that all potential users has awareness of these services

B: Provide a focus for the co-ordinated development of the key sectors of the regional economy to ensure the region retains its competitive position

C: Attract & retain High Growth companies in emerging and existing technologies

D: Develop a range of financial support packages that encourage growth in new and existing regional companies

Improving the Economic Infrastructure

A: Improving transport infrastructure.

B: Ensuring an adequate land supply to ensure future development of the economy

C: Encouraging better utilities and telecomms supplies to improve communications

D: Providing physical infrastructure for future investment.

E: Ensuring that any physical development will maximise regional environmental and social benefits and deliver best practice in terms of design, environmental quality and community engagement

Innovation & Technology

A: Develop a culture of Innovation throughout all organisations.

B: Ensure that Best Management Practices are employed by businesses and organisations.

C: Improve the marketing and delivery of expert technical advice and support for businesses and other organisations

D: Meet the present and future research needs of businesses and to keep research organisations at the forefront of knowledge

E: Develop a skilled and adaptable workforce that is innovative and technologically literate

F: Provide a means of access to knowledge and information that is both easy and obvious to all

G: Ensure that the region takes full advantage of the benefits of Information and Communications technologies

Inward Investment

A: To optimise the contribution of foreign direct investment to the economic and social development of the Region through the attraction and retention of high value added investment by overseas companies.

B: To retain existing investment through a co-ordinated region-wide investor aftercare programme; and ensure that established investors are embedded into the regional economy.

C: To generate good quality project leads through activities in the UK and Overseas.

D: To ensure that the region captures inward investment projects form overseas owned companies.

E: To retain and encourage the development of existing foreign investment through a co-ordinated region-wide aftercare programme.

Skills & Learning

A: Individuals, businesses, organisations and policy makers to have comprehensive, accurate and up to date information about their local and Regional economies to inform personal choice, business development and skills development and learning plans.

B: Individuals to be actively involved in education and/or training throughout their lives.

C: Individuals to have equal and open access to training, learning and employment opportunities.

D: Individuals to be expertly trained and developed to meet the demands of the South West economy with a specific focus on the sectors to be promoted and encouraged

E: Providers of training and learning – including employers – to provide accessible and complementary services to employers and individuals.

Regeneration

A: Improve the region"s ability to achieve its regeneration objectives;

B: Improve access to regeneration resources;

C: Achieve high quality regeneration outcomes through a targeted approach;

D: Address social and economic imbalances by enabling communities to become fully engaged at all stages in the regeneration process, and by ensuring that the benefits of regeneration are accessible to all.

Other Frameworks will be developed in due course.

The Partnership Approach

The Frameworks for Action and objectives developed by the NWDEP appear in the following sections of this chapter, many of which vary little from the regional objectives. However, the Partnership will be able to develop a series of actions and initiatives through the Frameworks for Action, which will help to implement the strategy at a local level.

IMPROVEMENT OF THE ECONOMIC INFRASTRUCTURE

Introduction

Within the North West Devon area there is an identified need for additional good quality and accessible land and buildings to enable the expansion of existing businesses and help with the formation of new ones. The development of facilities for the tourism, culture and heritage sectors is seen as particularly important. Key transport projects have been identified to help business development and to strengthen the viability of the areas rail lines. Careful consideration of the infrastructure needed to support agriculture is needed.

Future

The requirements for improving the area’s economic infrastructure will be driven by the aims and objectives of the economic strategy to secure a productive, sustainable and inclusive economy, primarily by making the most of what already exists. Infrastructure improvements will be needed to match the strategy’s objectives on sector development, innovation and technology and, to a more limited extent, inward investment.

Objectives and headline actions

Activities being undertaken/proposed within the North West Devon area under this framework for action include:

Objective A – Improving Transport Infrastructure

To improve transport infrastructure in the region to achieve a better integration of transport for people and freight and to address rural transport needs

1. Inter-modal freight terminal/rail improvements

2. Barnstaple Western Bypass

Objective B – Ensuring an Adequate Land Supply for Future Development

To ensure an adequate supply and range of sites and premises to enable the expansion of existing business, the formation and development of new business and for businesses wishing to relocate to the area

1. Strategic sites at Okehampton, South Molton, Bideford East the Water and Barnstaple

2. Business premises at South Molton, Bideford, Holsworthy, Braunton and Okehampton

3. Regeneration of brownfield sites at Barnstaple’s Taw riverfront

Objective C - Encouraging Better Utilities and Telecomm Supplies

To remove obstacles to business development by improving the quality and competitiveness of utility and telecomm provision whilst increasing environmental benefits and to improve opportunities for disadvantaged customers

- The partnership is in discussion with utility and telecomm suppliers to determine the best approach for future investment

Objective D – Providing Physical Infrastructure for Future Investment

To support key projects across identified sectors, including leisure and tourism, heritage and culture, regeneration

1. Proposals for Bideford Port and Quay, Westward Ho! enhancement and the National Centre for Ceramic Art

2. Development of Ilfracombe Harbour

3. Providing infrastructure for rural tourism trails and routes

Objective E – Having sustainability and local distinctiveness as core principles in the design of economic infrastructure

This objective underpins all others. To ensure that all projects follow the principles of sustainable development and use design to minimise environmental impact and are locally distinct

- The introduction of sustainability and design checks into project development criteria

Role of the Partnership

The Partnership is well placed to identify demand for infrastructure improvements, carry out feasibility studies where necessary and to co-ordinate action. The Partnership will have an important role in setting high standards for design and in ensuring the local community is engaged in need assessment and project development.

SECTOR DEVELOPMENT

Introduction

The economic analysis in this Strategy provides the basis for a strategic approach to the development of sectors of the local economy. The Strategy identifies eight sectors as being of significance to North Devon. These are:

1. Food production and agricultural development

2. Wood and forestry products

3. Recreational, cultural and sporting activities

4. Retailing

5. Health care

6. Tourism

7. Electronics

8. Pharmaceutical and cosmetic products

Of these, electronics and pharmaceuticals are considered to be suitable for inward investment and are dealt with in the section on Marketing for Inward Investment and Visitors. Tourism is dealt with here and in that section.

The Partnership has established the North and West Devon Agriculture Forum and published an Agriculture Strategy for the area. At the core of the Agriculture Strategy priorities is the need to ensure the continued and sustainable management of the countryside. This requires action at the European, national, regional and local levels. Since it is the countryside which is the foundation for the tourism industry, that industry can be the driver of change locally and the influencer of change at other levels.

The area is already the focus for an integrated rural development initiative in the South West Forest. This has successfully encouraged woodland planting through the area. In its next stage it will be turning its attention to the uses of timber. The area is already the location of significant wood product manufacturers. There is opportunity to increase the added value elements of this industry, through links with land use and tourism.

The North Devon and Torridge District Councils have prepared a Cultural Strategy for the area. This sets out a clear vision for the place of culture in support of local economic and community life and in enhancing the attractiveness of the area to visitors and investors. Increasingly tourism is expected to be driven by leisure activity opportunities rather than by accommodation. There is expected to be a growing role in the local economy for providers of cultural opportunities.

Current initiatives in retailing in the area focus on town centre management. The proposals coming forward aim to make town centres attractive and vibrant places to shop and spend leisure time. They have clear links with culture and tourism through organised events and attractions and with agriculture through farmers markets. Extension of these aims to coastal and market towns such as Holsworthy, Great Torrington, Ilfracombe and South Molton would support the rural economy.

Health care shares with tourism the same basic skills and infrastructure requirements. It can provide all year round employment and higher skills opportunities. In the past, particularly in coastal resorts it has been seen as being in competition with tourism and has sometimes been resisted. Now it is seen as being complementary to tourism and as having the potential to build on the same strengths of the area.

The establishment of the North Devon Marketing Bureau five years ago was a major step forward in integrating tourism marketing and development in the area. There is an opportunity to move ahead through preparation of a Tourism Strategy and through links with other sectors in farming, manufacturing, retailing and leisure activities.

The Future

The proposal for the target sectors is to develop a holistic approach, based on the following factors:

1. Added value

2. Branding/marketing

3. Customer care

4. Local purchasing

5. Greening (waste management and water and energy consumption)

6. Co-operation and partnership

The aim is to achieve synergy amongst the target sectors. They are linked by a strong tourism component. The tourism sector accounts for up to a third of local GDP and can act as a driver of change.

Added value

The first principle behind the holistic approach is that the Partnership should concentrate on those initiatives that add value to existing activities. The sectors that are being targeted can add value to each other. The primary (agriculture and forestry), manufacturing and service sectors can become more integrated. This is particularly important for the farming sector, which traditionally has secured little added value, through exporting raw product in bulk.

Branding/marketing

Whether it is for food products, cultural activities, surfwear or tourism, the creation of readily identifiable and locally distinctive brands is part of the key to marketing the advantages of the area. This is particularly true for meat and dairy products where national retailers dictate consumer preferences. There are considered to be significant opportunities for creating niche markets through locally distinctive branding. The current project looking at the A361/A39 route through the area can provide a basis for local branding.

Customer care

Customer care will need to be the defining characteristic of the service sector economy in North Devon, whether in tourism, retailing, leisure or health care. This will call for a significant investment in staff training throughout the sectors.

Local purchasing

Previous initiatives (Local Purchasing Initiatives Group and Regional Supply Office) have been too remote from the area to have much impact. Local initiatives (e.g. in support of the Devon NFU campaign to persuade local catering venues to purchase and provide local food) would yield greater dividends. Ultimately there has to be a competitive advantage in local purchasing.

Greening

There has been a degree of work on waste minimisation amongst local firms. Extension of that work to include waste to energy, renewable energy, green travel and energy minimisation programmes would build on local issues and opportunities. It would also take the local economy in the direction proposed in the UK Government’s report "a better quality of life – A strategy for sustainable development for the UK".

Co-operation and partnership

One of the strengths of North Devon is the extent of partnership working. This is reflected in agriculture, countryside management, tourism marketing, culture and health provision, amongst others. Private sector co-operation is in evidence in EMC Network South West, North Devon Marketing Bureau and Torridge Vale Dairy. The initiatives described in this paper will necessitate more co-operative working within and between sectors, supported in some cases by public sector funding and facilitation.

Objectives and Headline Actions

There is merit in targeting those sectors that have potential for growth, in order to meet the following objectives:

Objective A - To capitalise on the area’s strengths

- Appropriate local branding initiatives

Objective B – To add value to existing investment

1. A customer care programme in the front-line service sectors

2. An integrated rural land use and manufacturing programme

Objective C - To make best use of resources

1. A truly local purchasing initiative

2. A green economy campaign

Objective D - To set priorities for economic development

- Targeting inward investment marketing on the pharmaceuticals/cosmetics and electronics sectors

Objective E - To promote sectoral clustering in the area.

Key points

- Marketing the distinctive advantage to higher technology manufacturing provided by PARC

The Role of the Partnership

Clearly the North West Devon Economic Partnership is well placed to lead this process. To do so it needs a clear vision and strategy leading to programmes that have a longer lifecycle than hitherto. Programmes will extend at least for the life of the Objective 2 Programme (2000-2006) in order to secure sustainable development of the local economy.

BUSINESS SUPPORT

Introduction

The NWDEP area has a diverse economy dominated by SMEs. However data shows that many of these businesses are in declining or low added value sectors sectors such as agriculture and tourism. One of the key points in the profile relates to a comparatively high failure rate of businesses in the NWDEP area. In order to meet the changes being experienced by these businesses and the much needed growth in the higher added value sectors of the economy it is necessary to develop services and support that will assist all of these businesses in reaching their potential.

Future

With the advent of the Small Business Service, (still to be known as Business Link), in April 2001, the delivery of business support in the NWDEP Area will be redefined. The vision of SBS nationally is that of advice being delivered both through a national ‘Gateway’ call centre and through peripatetic business advisors. However, the main work of the Business Links will be in signposting clients to the most appropriate, (or specialist), business advisor. Indications are that Business Link will have a physical presence in North West Devon, although what form this will take is not known.

Currently the local authorities and SWERDA fund the work of the Enterprise Agencies in the area, (including an agricultural advice service), to provide free, independent advice to small and start up businesses. It is clear from recent research that there is a need and demand for the work of these agencies to complement other services. The Partnership is committed to not only retaining these agencies to meet this growing demand but ensuring that the services they provide add value and that the strong partnerships developed through their co-location are enhanced.

Objectives and Headline Actions

Objective A - Improve the effectiveness of business support services in the region by raising awareness of potential users to the support available and building on and improving existing provision

- To build on and enhance the existing business support provision to ensure that it complements other business advisory services in the NWDEP Area, including the North Devon Enterprise Agency, West Devon Business Information Point, North Devon Chamber of Commerce & Industry, Agri-BIP and South West Forest.

Objective B - Focus on the co-ordinated development of the key sectors of the sub-regional economy to ensure the region develops its competitive position

- Development of collaborative projects with major food processors

See also Framework on Sector Development

Objective C -Attract and retain high growth companies in emerging and existing technologies

See Frameworks for Innovation and Technology, Marketing for Inward Investment and Image

Objective D - Develop a range of financial support packages that encourage growth in new and existing local companies

- Development of SME grants and loans schemes

Role of the Partnership

The Partnership is aware that the development of business in the NWDEP Area is crucial to growth of the area’s GDP. To achieve this, the Partnership wish to develop a business support infrastructure that meets the needs all businesses in the area and which, coupled with skills and training support for the workforce and development of innovation and technology initiatives, will enable the economy to continue to grow and diversify.

Development by the Partnership of the North Devon portal will also support these activities (see Marketing and Inward Investment Framework for Action).

INNOVATION AND TECHNOLOGY

Introduction

The area has a wealth of innovative businesses and facilities which offer a significant strength. Efforts should be made to build on this strength by transferring best practice and expertise between firms and sectors. Considerable work is still required to assist companies and individuals to increase the rate of innovation and generate higher productivity for the area.

The Future

Innovation and Technology represents one of four strategic drivers which underpin the SW Regional Development Agency (SWERDA) strategy for the region. Taken together with the environment, skills and learning and partnership, the innovation driver will increasingly determine future priorities and delivery programmes. It is the intention of the South West RDA to place innovation firmly at the heart of the region’s institutions and businesses by applying it to the :-

1. prioritisation of inward investment

2. delivery of business support

3. development of skills

4. formulation of regeneration initiatives

Innovation can be applied to a wide range of business activities to bring about profitable and sustainable change, e.g. Strategic and operational management, finance, marketing, manufacturing and, product and service development. Developing a culture of innovation should be viewed as a long-term process which encourages individuals and companies to accept and manage risks and thereby deliver a competitive advantage to the North Devon area. Foremost among the themes within this driver is the need to encourage an innovation culture, improve access to knowledge and promote managerial best practice.

Objectives and Headline Actions

Objective A – Sector Development

1. to enhance and develop the industry sectors already strong in the sub-region; i.e. pharmaceuticals, advanced engineering, marine industry, food processing etc.

2. engage with Further and Higher Education to develop innovative projects in specific sectors, building on the experience with the EMC Centre and the PARC initiative.

3. promote technology transfer from universities, Innovation Relay Centres, DERA, etc. to increase the take-up of new technology by small and medium-sized firms, building on previous KONVER-funded initiatives.

4. encourage local businesses to examine the impact emerging technologies (biotechnology, microsystems, nanotechnology etc) will have on their current activities with a view to positioning themselves for major future technological changes.

Objective B - Improving Infrastructure

1. develop starter units across the NWDEP area which are connected by high quality IT links, to support the growth of small innovative businesses.

2. enhance the provision of information and communications technology, including the appropriate introduction of improved communications infrastructure.

3. enhance the technological aspect of the existing business support structure.

4. establish a small fund to be used to encourage knowledge based micro-businesses to take a technological risk that they would not otherwise take.

Objective C - Marketing

1. to create an environment in which North West Devon is seen throughout the EU as a place which offers encouragement and opportunity to knowledge based, high value added businesses.

2. target specific knowledge based potential new investors and visitors to North West Devon via the use of multimedia campaigns, attendance at technology transfer fairs.

Objective D - Skills Development

1. promote entrepreneurship skills to a wide constituency by introducing local entrepreneurs into schools and colleges for seminars on how local firms compete in a global market.

2. foster entrepreneurship in start-up firms by the appointment of "enterprise champions" from among leading local businesses.

3. enhance the network of mentors to transfer management skills from large firms to SMEs.

4. develop distance learning packages delivered by Higher and Further education institutions to enhance technical skills in small and medium sized firms.

Objective E - Renewable Energy &Recycling

1. building on the work of local communities such as North Tawton in increasing the use of renewable energy

2. using the findings of the joint North Devon/Torridge District Councils survey on renewable energy resources to devise and implement a strategy for the area

3. to encourage all forms of recycling in the area.

The Role of the Partnership

Building on these objectives, the North West Devon Economic Partnership will support projects which emphasise innovation in the context of the strengths and priorities at the local level. Innovation is an element to be emphasised not only in the range of business support activities, but across the wider society as a whole.

An Innovation and Technology Task Group has been established from across the public and private sectors as a vehicle for progressing new innovation projects.

MARKETING FOR INWARD INVESTMENT AND IMAGE

Introduction

Broadly there are three types of inward investment:

1. Inward-locating companies

2. Inward investment in local branch plants by external parent companies

3. Expenditure by visitors to the area

North and West Devon has built its economy over the last twenty years on the last two and on the growth of local firms. Before that there was a wave of inward-locating companies in the 1960’s and 1970’s when much of the area had development area status.

The Future

The scale of the local economy in North and West Devon suggests that there is little scope, either in labour force or environmental terms, for major inward-locating companies. There is, however, scope for attracting smaller specialist businesses and individual entrepreneurs making lifestyle choices. These are likely to be largely in information-driven, or niche businesses, where locational advantage is less significant than environmental or quality of life benefits.

There remains a significant advantage in continuing to secure parent company investment in local branch plants, some of which form major employers in the area. The benefits of the area in attracting this type of inward investment include low workforce turnover rates, established skills pools, synergy with related sectors and proximity to raw materials, as well as factors such as optimising investment and gaining environmental benefits.

Some of these factors are likely to remain fundamental in inward investment decisions, even if there is a shift away from traditional manufacturing inward investment towards information-driven or niche product businesses.

Some of the factors that attract investment in businesses are also those that attract visitors. For this reason the two SWERDA Frameworks are combined in this Strategy.

Proposals for sector targeting for inward investment

The pharmaceuticals and cosmetics sector is relatively strongly represented in North Devon, with three major employers. Whilst discussions with the sector suggest that it needs little additional support to maintain its market position, there is a view that to attract a fourth company into the area would strengthen the sector. It is therefore proposed that this sector should be targeted for inward investment.

The electronics sector has been effectively targeted over the last two years by the of the EMC Centre at Caddsdown. This facility has recently been extended by the provision of a Manufacturing Centre of Excellence, PARC, covering other environmental testing needs. This will meet the needs not only of the electronics sector but also of other higher technology manufacturers in the area. It is therefore proposed that the EMC and PARC Centres be marketed as the attraction to investment in this sector.

Objectives and Headline Actions

The following objectives are proposed for marketing for inward investment and image in North West Devon:

Objective A - To optimise the contribution to the local economy of external investment in local companies

- Establishing a programme of joint aftercare visits to externally owned local companies

Objective B - To promote and position North and West Devon regionally, nationally and internationally as an attractive area for business investment and tourism

1. Establishing a marketing programme setting out the advantages of North and West Devon as a business location, particularly for pharmaceuticals, electronics and environment based businesses

2. Ensuring that infrastructure provision takes account of the needs of appropriate inward-locating businesses