BLEDP-EEDA Business Plan Appendix A – Key Strategic Changes

Introduction

The BLEDP stakeholders’ workshop on 23 November identified 10 possible key strategic changes to the local economy. There was a near unanimity to divide these changes into two groups: those where BLEDP will actively pursue EEDA funding and those changes which BLEDP will pursue by other means. The main criteria used to make this division were

  • An assessment of the importance of the proposed change on reaching the JEDS 50,000 jobs target
  • The likely relevance to existing EEDA products, policies and priorities
  • The relative priority of each change compared to another.

More details are given on each key strategic change in the tables below. For those where BLEDP is seeking additional funding, each table shows the reasons why this change has been given priority for EEDA funding in this Plan, the local priority issues which remain for BLEDP to consider and a list of possible intervention activities. For each activity, we show the EEDA product we feel is an appropriate source of funding, the potential scale of funding required, the Tier 3 outputs the activity will produce and how the activity will produce strategic value within the overall key change area. It is important to note that

  • This is not an exhaustive list of possible interventions. More may be forthcoming as partners begin to think in terms of key change prioritisation and clear gaps emerge.
  • Those listed are examples only for the purposes of discussion with EEDA about the overall strategic direction.
  • BLEDP has not conducted any prioritisation of the possible interventions listed.
  • The responsibility for seeking funding for any particular intervention will be responsibility of individual BLEDP partners, with BLEDP expertise and support if required.
  • The levels of funding shown are indicative at this stage.

Key Changes Seeking EEDA funding

Change:Commercialising Ideas
Reasons why pursuing EEDA funding
The UK has taken the strategic decision to pursue high value added economic development based on innovation and the exploitation of ideas. This is also a key EEDA priority. BLEDP is ideally placed to exploit this, based centrally tothe Oxford to Cambridge Arc and blessed with several world class RD centres such as Unilever and CranfieldUniversity. The development of NIRAH would add another.
Local Priority Issues
Priorities for Enterprise Hubs which meet local sectoral needs and local abilities to exploit commercial opportunities which arise. BLEDP is also aware of the increasing importance of environmental issues in innovation and will seek to include them in developing interventions, in particular those which underpin or can contribute to the reduction of carbon emissions.
Possible Intervention Activities / EEDA Product / Likely Scale of EEDA funding
£k / T3 Outputs / Strategic Value
ColworthSciencePark / E Hub / £3m Cap / 1, 3, 4, 4a, 5 / The creation of a Knowledge Hub at Colworth in 2007 will bring together academics and SMEs to encourage spin-out of life sciences technology. The second phase of development is an Innovation Centre to include a substantial amount of lab space. The medium-term aspiration for the site is to raise the level of employment to 1500 jobs, subject to planning and access requirements, and create a centre of excellence in life sciences technology.
Sport & Health Enterprise Hub / E Hub / B Supp / £200k Rev over 3 years / 1, 3, 4 / Bedford Borough Council, with support from EEDA, has carried out a feasibility study into the impact of an enterprise hub to develop the sport and health sector and encourage innovation.
Butterfield Enterprise Hub / E Hub / £120K per annum / Business support and brokerage based at IBB Butterfield but available across Luton/Dunstable/Houghton Regis. Some focus on City Growth sectors and also continuing City Growth work
Film / Media Hub at Cardington / E Hub / Specialist long term economic future for the hangars plus possible specialised accommodation for related industries.
LutonCity Growth / E Hub / 4 / Launched in 2005 with an independent Board, LCG is developing a number of cluster activities around four main sectors – airport, ICT, aerospace and food and drink.
NIRAH – Innovation elements / E Hub / NIRAH has received support from EEDA and local partners for the development of its business plan. It is not clear at this stage what funding, if any, will be required from the public sector once construction begins.
Investments supporting Encouraging Innovation not seeking / not appropriate for EEDA Funding
Milton Keynes Enterprise Hub Support / E Hub / B Supp / £50k Rev per annum / Business support and brokerage facilities for occupants of iLab, Cranfield Tech Park/CUBIC and Colworth.
Aerodynamics Enterprise Hub / E Hub / £3m Cap / 1, 2, 3, 4, 4a / Aircraft Research Association (ARA) in Bedford are in dialogue with a number of university partners re the creation of an enterprise hub which would allow access to aerodynamics research facilities and engage the supply chain.
Cranfield Centre for Competitive Creative Design (C4D) / E Hub / £Xm Cap / New facilities and programmes for Competitive Design.
Cranfield Radio Frequency Identification Demonstration Lab / E Hub / £40k Cap / Investment in facilities and equipment for a new laboratory.
CranfieldTechnologyPark – Access and Sub-station / EHub or R Ren / £1m / 1, 3 / Speed up TechnologyPark expansion to deliver new jobs. The detailed planning of this project will continue and it is possible it will seek EEDA funding at some stage in 2007-08.
CranfieldAirport Control Tower / EHub / £2.5m - £2.0m / Capitalise on Transport Gateway opportunity through Corp Jet traffic
Enterprise Hub to encourage new businesses; Protect existing airport and jobs; Re-profileCranfieldAirport
CranfieldTechPark - Lecture theatre implementation 250 seat - Phased development / EHub / £0.3m / Used by Cabair and other companies; Used by Chamber Business and other agencies; Regional resource
Change: Expanding the Tourism and Leisure Industries
Reasons why pursuing EEDA funding
Beds and Luton has a one off opportunity to increase employment dramatically in the tourism and leisure sector. These job opportunities will be created in both rural and urban areas, supporting the JEDS aim of reducing out-commuting and internal commuting flows. There are three potential sources of significant job increases: (1) the possibility of Center Parcs making Bedfordshire a major holiday destination for the first time, (2) the possibility of NIRAH creating a major new visitor attraction and (3) the expansion of LondonLutonAirport. Even without these potential step changes, recent research has shown that the area has better potential to increase the number of visitors if existing attractions were packaged and marketed in a better way. This could create a further 5000 jobs in the sector in addition to those expected to be created by the growth of LondonLutonAirport.EEDA has ring-fenced Tourism funding within the Business Support product.
Local Priority Issues
Implementing the agreed local Tourism Strategy. This may mean some EEDA funding is required to seed corn some critical developments.
Exploiting the potential multiplier effect of the new tourism developments. BLEDP and its partners are also keep to explore eco-tourism and environmental impacts of tourism, as many tourism developments proposed are in rural locations or contribute to a wider environmental sustainability agenda (for example Bedford River Valley Park).
Possible Intervention Activities / EEDA Product / Likely Scale of EEDA funding£k / T3 Outputs / Strategic Value
Tourism Growth Strategy Implementation PLUS Innovative Fund / B Supp / £180k Rev (£60k per annum) plus £70k / 1, 4 / The first year of implementation of the Tourism Strategy will focus on creating of new marketing packages, primarily aimed at the family market. It will also include the development of baseline information on accredited and unaccredited accommodation within Beds and Luton. Other key activities will include the development of a more formal Tourism Partnership for Beds and Luton and exploring the viability of a shared conference desk with Milton Keynes and Northamptonshire. These would deliver an additional 1000 jobs over the 4000 anticipated from proposed capital investments being funded through a mixture of public and private sector support.
In addition the Tourism Partnership is submitting a proposal for £70k which will develop the VFR market, pilot resident open days and ‘passport’ schemes. Crucially, this will help Bedfordshire and Luton’s product close the gap with others in the region.
Investments supporting expansion of Tourism sector not currently seeking EEDA funding:
Center Parcs
Luton Hoo
RSPB Visitor Facilities
Bedford River Valley Park inc Rowing Lake
NIRAH – Tourism elements
Eco-Tourism Cluster development
Bromham Mill
Hanson Brickworks
Moggerhanger Park Conservatory
Riverside Quarter
Wixham Hotels & Leisure
Milton Keynes to BedfordCanal
Shuttleworth Water-based Leisure Developments
Napier Park Casino - Luton
Butterfield – Hotel
/ Comment:
There is a great deal of planned and proposed investment in the Tourism sector during the life of this Business Plan. Some investment will require BLEDP/EEDA support – not necessarily financial – but all will benefit from a more coherent and strategic approach to Tourism development as outlined above.
Change: Regenerating Town Centres
Reasons why pursuing EEDA funding
Beds and Luton has not enjoyed the expansion in jobs in the retail sector which most of Britain and neighbouring sub-regions have enjoyed over the past 20 years. Our principal town centres have declined in both absolute and relative terms. The competition from the rapid expansion of Milton Keynes has been a principal reason for this.
BLEDP wishes to reverse this decline through new investment in our town centres.
Local Priority Issues
To determine priorities for development in the context of Town Centre Masterplans (Bedford and Luton).
Possible Intervention Activities / EEDA Product / Likely Scale of EEDA funding
£k / T3 Outputs / Strategic Value
Bedford Bus Station Development / R Ren / ? / 1, 2, 3, 5, 5a
James Street Environmental Improvements / R Ren / 640k / 1, 2 / This programme has been identified to improve connectivity within Bedford Town Centre. Has wide support from public.
Luton Gateway/ Station Redevelopment / R Ren / ? / 1,2,3, 5,5a / Creating a public transport interchange and large number of housing units, and improvements to public realm.
InvestmentsSupportingRegeneratingTown Centres not seeking EEDA funding:
Bedford Square Houghton Regis / In the context of the Town Centre Master Plan for Houghton Regis and supported by Growth Area funding, a number of improvements are planned including community facilities and improved shopping facilities.
Various town centre Improvement schemes / R Ren / 500k / 1, 2, 3, 5, 5a / Town Centre schemes not included within Bedford or Luton Masterplans, eg Biggleswade.
Change:: Increasing Availability of QualityCommercialLand and Premises
Reasons why pursuing EEDA funding
At present, Beds and Luton is being seriously out competed for nearly all types of investment by all the surrounding sub-regions and especially Milton Keynes. They have a much better stock of land and premises to offer new companies. Recent research has shown that the bulk of the existing stock of employment premises is aging and not fit for modern commercial and industrial uses.
Very few of the office buildings in the principal town centres have been built since the 1970s. Therefore much of the stock is not efficient for modern ICT uses. Most of the out of town business parks are nearing capacity and there are few planned in the pipeline.
Similarly, much of the stock of industrial premises is of an equivalent age. In many cases, the locations were determined by the proximity to railways for moving goods, especially in Luton and Dunstable. The overall appearance of many key industrial estates is run down and landlords seem reluctant to invest in their upkeep.
While new employment locations have been identified (see Appendix B) which could meet the 50,000 jobs target, jobs growth here could easily be offset by job losses in the traditional employment areas if these continue to decline.
We propose to revitalise old industrial and commercial premises, give them an environmental audit to see how they could recycle/reduce their carbon footprint and become better places to do business (inward investment/retention) with better planting, safer footpaths, cycleways lighting etc., plus energy efficiency measures or sustainable energy replacement measures within the premises. Thismight be an EEDA/Local Authority/business scheme which wouldthen use the local networks brought together for such action to promote business support/inter-trading etc. We will have to be fully aware of any State Aids issues in such a scheme.
In addition, there are gaps in the market for specific, critically strategic types of premises which the private sector seems reluctant to fill. We have very few locations and premises suitable for modern financial services sector, the expansion of which during the last twenty years has passed by Beds and Luton. There is a general lack of small firms’ premises for non high tech users, both for start ups and for expansion when established.
Local Priority Issues
We would need to decide which individual premises require the most urgent treatment and target them effectively and in the context of sustainable development.
Possible Intervention Activities / EEDA Product / Likely Scale of EEDA funding
£k / T3 Outputs / Strategic Value
Tomorrow's Bright Green Business Space
(Bright for knowledge economy, Green for sustainable environmental improvements,Tomorrow for forward looking.) / R Ren / 500pa Cap / 1, 2, 5, 5a / Addresses the key needs as stated above.
Would lever 50% capital funding from other sources.
Would avoid state aids issues when concentrating on public realm improvements such as highways, security, landscaping.
Energy reduction or sustainable replacement measures may require careful consideration of State Aids issues.
Would encourage land owners to invest in their stock
Would greatly assist inward investment efforts, currently hampered by lack of suitable premises to offer prospective employers.
By working closely with Herts Prosperity on equivalent schemes, a large number of small improvement schemes over several years will lead to a strategic uplift in the quality of premises available locally and provide a major impact on regional economic performance.
Would seek to use ERDF and Renewables East funds to provide match funding as much as possible.
Creation of new industrial estates and employment sites / R Ren / 1,000 pa Cap from 08/09 onwards / 1, 3, 5, 5a / There are particular needs in Bedford/Kempston and South Beds areas. Because of a vicious spiral of low investment leading to low demand leading to low rent levels, it has been difficult for decades to interest the private sector in developing new industrial estates except for distribution. Traditionally, the local authorities have provided these. There is a need to revive this public sector entrepreneurialism, preferably with innovative governance methods and low carbon methods of delivery to act as exemplars. This would support the sustainable communities plan.
Legacy Interventions with existing EEDA commitment
Brewers Hill Road, Dunstable / R Ren / 1, 3, 5, 5a / EEDA owns part of this mixed-use site. An urban design framework has just been produced.
Butterfield / R Ren / A major EEDA investment in 2006/07, EEDA / BLEDP will been keen to support activity on the site as it develops from the creation of the innovation centre. See also Tourism activity in relation to hotel investment on this site.
WybostonLakes Development / EEDA owned site – bring forward for development.
Investments supporting Improving Stock of CommercialLand and Premises not currently seeking EEDA funding:
PrioryBusinessPark
NapierPark
StrattonPark, Biggleswade
Redundant Farm Buildings programme
/ Comment:
Partners have not indicated a wish to pursue funding for these specific sites at present but there may be elements that the Partnership would wish to revisit in the context of wider Industrial Estates Improvements.
Change: Improving Number and Quality of Business Start-ups
Reasons why pursuing EEDA funding
Traditionally, the Beds and Luton economy has been dominated by large companies, often multinationals. As a result, there has been less of a culture of entrepreneurship in this area than elsewhere and fewer businesses started. BLEDP has been seeking to change this and increase the number of local business start-ups for some time. We have used EEDA capital funding to create 3 linked Enterprise Centres designed to encourage this process. The local Enterprise Agency was incorporated into the Beds and Luton Business Link several years ago. BL then used its local financial flexibility to increase the resource available for start-up business to meet this local strategic need. The University of Bedfordshire has an active programme of support for local start-up and small businesses. All of this was beginning to have the desired effects of changing the culture and increasing the number and quality of start-up businesses in the area.