Functional Economic Market Areas and Economic Linkages in the South West Final Report July 2010 Functional Economic Market Areas and Economic Linkages in the South West Final Report Contents Executive Summary .................................................................................................................. i 1: Introduction and Objectives ...............................................................................................1 2: Functional Economic Market Areas...................................................................................6 3: Existing Knowledge on Functional Economic Market Areas ........................................14 4: The Spatial Economic Analysis Tool ...............................................................................29 5: Initial analysis of the spatial dynamics of the South West............................................39 6: Future influences on Functional Economic Market Areas ............................................87 Annex A: Methodology ........................................................................................................ A-1 Annex B: Existing Knowledge on Functional Economic Market Areas ......................... B-1 Annex C: Mapping against LEA core themes ................................................................... C-1 Annex D: Themes and Layers............................................................................................. D-1 Annex E: Guidance Manual................................................................................................. E-1 Annex A: Methodology ........................................................................................................ A-1 Annex B: Existing Knowledge on Functional Economic Market Areas ......................... B-1 Annex C: Mapping against LEA core themes ................................................................... C-1 Annex D: Themes and Layers............................................................................................. D-1 Annex E: Guidance Manual................................................................................................. E-1 Contact: Matt Sales Tel: Approved by: Gareth Jones Date: 020 7307 7170 email: [email protected] 9July 2010 Director www.sqw.co.uk Functional Economic Market Areas and Economic Linkages in the South West Final Report Executive Summary Purpose of the Project 1. The purpose of this project is to investigate functional economic market areas (FEMAs) in the South West, which play an important role in Local Economic Assessments (LEAs). A core objective of LEAs is to, “identify the economic linkages between the area assessed and the wider economy” (CLG guidance 1). This project was commissioned to develop a shared evidence base to help to identify FEMAs and other spatial economic linkages in the South West, to support partners responsible for developing LEAs and those involved in policy and strategy making at other geographical levels. 2. The purpose of the project has not been to arrive at a single set of defined FEMA boundaries across the region. Rather the project has explored functional geographies of different themes that influence economic development, for example labour markets and retail catchments, gathering appropriate indicators to evidence the themes. 3. There are three main outputs of the research: • an interactive Spatial Economic Analysis Tool (based on a GIS package) to enable stakeholders to identify FEMAs • a guidance manual for using the Spatial Economic Analysis Tool • this final report which sets out the work that has been undertaken and includes some analysis of the spatial dynamics of the region. A springboard from which users of the Spatial Economic Analysis Tool can undertake their own analysis. 4. The project has sought to develop a jointly owned means of understanding the economic linkages between the South West’s local authority administrative areas and the wider economy. The research has involved a literature review of previous regional analysis of economic links and functional geographies; consultations with upper tier authorities and regional organisations to understand the needs of future users; a workshop in April 2010 to which all stakeholders were invited to help design the specification of the project outputs; data collection and mapping in the Tool; and final reporting. 5. A key aspect of this project has been to identify and respond to the requirements of the stakeholders who will be the end users of the Spatial Economic Analysis Tool. A broad consultation programme has been undertaken, and the table below summarises stakeholders’ requirements for the project outputs. 1 Department of Communities and Local Government, Local Economic Assessments: Consultation on Draft Statutory Guidance, December 2009 i Functional Economic Market Areas and Economic Linkages in the South West Final Report Table 1: Ways in which the project will support preparation of Local Economic Assessments and policy and strategy making at other geographical levels Issue Detail Help inform joint working • Improve shared understanding of the region and sub-regions, to enable policy development • Provide justification for (or against) partnership areas • Support basis for joint working between local authorities and with their partners • Create a shared evidence base Provide evidence to inform a consistent approach • Provide evidence which can be used in a variety of ways at different geographical scales Meet requirements in national guidance • Add robustness to the evidence base • Enhance mapping to aid interpretation of data • Development of LEAs, and in some cases economic development and planning strategies • Initial work for Regional Strategy • Unspecific investment decisions • Explore variety of issues related to FEMAs • However, there was no common clear set of region-wide ‘big issues’ identified • Some expectations beyond the scope of the project included comparison with other regions/ places • Potentially useful to help identify LEPs Support policy development Inform understanding of FEMAs and geographic and economic relationships Source: SQW Consulting Functional Economic Market Areas 6. The geography of economic activity is increasingly complicated. People often live, work and undertake leisure activities in different administrative areas and links for business and people can be truly global. There is a strong argument that economic analysis is best undertaken at the spatial level at which the market operates. This can support better policy making, by allowing consideration of the full costs and benefits of policies and ensuring that wider barriers and opportunities are considered. It can also help to reduce co-ordination failures and ensure that policies support wider interests. 7. Understanding FEMAs helps to understand the roles of different places and can provide a common evidence base and shared understanding of the nature, extent and distribution of economic activity. 8. There is no universally agreed approach to defining FEMAs and no definitive map of FEMAs. They vary in size and boundary, depending on the issue under consideration (e.g. labour market, retail catchments) and the criteria used to define them. 9. CLG has defined FEMAs as, “the area over which the local economy and its key markets operate” 2. The LEA guidance also states that, “functional economic market areas are spatial areas that can be mapped by a combination of the key indicators of economic activity and 2 Department of Communities and Local Government, Functional Economic Market Areas: An economic note, February 2010. ii Functional Economic Market Areas and Economic Linkages in the South West Final Report across areas”. FEMAs reflect the real world in which the economy operates, extending beyond the administrative area level (districts, unitary authorities, county or regional boundaries) at which economic development policy is generally made. Existing Knowledge on FEMAs in the South West 10. There has been previous analysis of functional market areas in the South West. The assessments undertaken have been from a regional and sub-regional perspective, to help inform regional planning and regional economic strategy. The previous FEMA work considers: • Sub-regions • Economic activity zones • Character areas • Retail Catchment Areas • Housing Market Areas (HMAs). 11. Existing knowledge on FEMAs in the South West includes the identification of three subregional spatial areas in regional planning policy, seven functional activity zones, four character zones and 13 Housing Market Areas (HMAs). The FEMAs have been explored primarily to inform regional policy making. There has been limited assessment of FEMAs at a local area. 12. At a sub-regional level broadly, there is consistency in the characterisation of different parts of the region between the FEMAs. At a sub-regional level, the north and east of the region is regarded to have the strongest economic potential. The overall framework of the seven functional economic activity zones has remained consistent over time. Perhaps the most significant change has been the identification of sub-zones within the North East Triangle. The settlement structure has been a key determinant of the functional economic activity zones and HMAs. 13. External links to London and the South East economies has been an influence on how FEMAs have developed and been characterised. Distance to markets is seen as a constraint on the economic potential of the western area of the South West. 14. Work has been undertaken outside the South West, but this is similar in nature to previous work undertaken within the South West, and does not provide the level of functionality provided in the Spatial Economic Analysis Tool. 15. The previous work has focused on FEMAs primarily at the sub-regional level. The work undertaken for this project, culminating in the Spatial Economic Analysis Tool allows identification and analysis of FEMAs below the sub-regional level, with many data sources broken down to Lower Super Output Area (LSOA) level; and also importantly provides functionality for users to investigate aspects of their FEMAs and local economies in far more detail. This project takes the South West far in advance of other recent work in the North East and West Midlands which do not provide a similar level of functionality. iii Functional Economic Market Areas and Economic Linkages in the South West Final Report The Spatial Economic Analysis Tool 16. 17. The Spatial Economic Analysis Tool – and the spatial analysis in this report – has been developed to help: • identify and describe current FEMAs • investigate themes in the LEA guidance • understand what is happening and the story of place. The Tool includes data relating to a range of FEMA themes. The tool includes 100 layers which are summarised in the table below. Table 1-2: Themes and layers Theme Layer Folder Access to services Distance to food store, GP premises, Post Office, primary school, Further Education Colleges South West England Higher Education Institutions South West England Base layers Background maps Higher tier Rail Roads Rural urban definitions South West outline Unitaries boroughs Demography Pensionable age Population change 01 08 Population forecasts Working age population Economy Average distance to work Business units Claimants Commuting self cont Economic inactivity Employment by occupational group Forecasts FTE workers GVA change iv Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Layer Folder GVA total IDBR age bands IDBR local units IDBR local units size Job density Knowledge economy Knowledge economy locational quotient Sectoral employment Self employment 2001 Sole traders and partnerships TTWAS 2001 TTWAS 1991 Value tourism Weekly income Work from home Workplace earnings Housing 2009 affordability ratio 2009 median house price Natural environment Area of Outstanding Natural Beauty National parks Places Association of Market Towns classification Brownfield Growth points Local Delivery Vehicles Rateable value Strategically significant cities and towns Previous FEMA Housing markets LGA zones South West RDA character zones South West RDA functional zones Qualifications GCSE score Skills no-qualification v Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Layer Folder Skills NVQ3+ Skills NVQ4+ Retail Retail catchments 1-2 Retail catchments 1-3 Social IMD score Claimant count Claimants LSOA Out of work benefits 18. The Spatial Economic Analysis Tool is available from the South West Observatory (SWO) Core Unit on a DVD and uses free-to-use GIS software. The Tool will be updated over time as new data become available and will be made available by SWO. A guidance manual has been prepared for the Tool. This takes users through various steps – launching the Tool, using the data layers, adding data layers to hard drives, exporting and printing maps and undertaking more bespoke analysis. The guidance manual is available at Annex E to this report. 19. The core functionality of the Spatial Economic Analysis Tool includes: 20. • ability to display & overlay multiple layers (turn on/ off) • zoom and move about the map • print or export the map displayed • link to underlying data • legend listing all layers and scale bar. It is also possible to import the data in the Spatial Economic Analysis Tool into more sophisticated desk-top GIS systems to enable more detailed analysis. Further details are provided in the guidance manual at Annex E to this report. Identifying FEMAs Using the Spatial Economic Analysis Tool 21. In the main body of the report some initial analysis has been undertaken using the Tool to illustrate some of the key themes identified in the LEA guidance. This has been undertaken in three main areas: • Multivariate analysis which gives a first cut of the data and a starting point for further analysis; vi Functional Economic Market Areas and Economic Linkages in the South West Final Report • Thematic analysis which uses the Spatial Economic Analysis Tool to undertake some preliminary analysis on the LEA themes at the South West level, as a starting point for further local analysis; and • Some initial views on these key themes at the upper tier local authority level. 22. The multivariate analysis looks for correlations between the 100 datasets and focuses on those with the greatest correlation. These correlated datasets are then brought together into clusters or groupings of datasets with the greatest similarities. The seven clusters that emerge from this analysis are: 23. Four primarily urban clusters: 1. (Badly housed mixed neighbourhoods) These areas are characterised by poor housing, ethnic diversity, higher proportions of students and high population density. They form parts of the centres of most cities and larger towns 2. (Deprived, poor neighbourhoods) These areas are characterised by low incomes, skills and educational attainment, single parent households and high claimant rates. These are also found in most cities and larger towns, but are not confined to the centre of settlements. 3. (Low skill working neighbourhoods) These areas are characterised by public sector housing, low skills, and routine and semiroutine occupations. These are also found in most cities and larger towns, and also in some more rural locations. 4. (Middle-aged, diverse neighbourhoods) These areas are characterised by relatively high proportions of middle aged people, ethnic minorities, high car ownership and high population density. Again these are mainly urban neighbourhoods, but also appear on the outskirts of some cities and towns. 24. And three rural and suburban clusters: 5. (Resorts & retirement) These areas are characterised by a high proportion of public sector employment, second homes, and residents of retirement age. There are also higher proportions of houses in multiple occupation. There is a strong coastal distribution of these areas, though they also appear in attractive, rural inland areas. 6. (Rural communities) These areas are characterised by high proportions of employment in agriculture and fishing, poor access to services, small businesses (both size and turnover), home-working and high car ownership and longer distance commuting. The make up the 'rest of' the countryside which is not commuter belt or a resort or retirement area. vii Functional Economic Market Areas and Economic Linkages in the South West Final Report 7. (Urban fringe) These areas are characterised by high car ownership, well-qualified residents and also by prevalence of small businesses. They clearly define the areas of attractive countryside close to cities and larger towns which are the locations of choice for commuters. 25. These clusters can be seen in the map of the South West, below. Figure 1-1: MVA Cluster Map of the South West Source: SQW Consulting 26. As an example of the thematic analysis which can be carried out by users, the figure below illustrates the location of deprivation (where red is the highest level of deprivation, blue the medium and green the lowest) and benefits claimants (where pink hatching shows medium levels of claimants and brown dots the highest levels), and the coincidence of the two. This can be used to investigate economic inclusion as part of the process of identifying a FEMA. viii Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 2: Map for ‘Economic Inclusion’ theme, showing concentrations of deprivation and of benefit claimants Key: Index of Multiple Deprivation (IMD, 2007) score: Green = low (<10); Blue = medium (10-20); Red = high (>20). Benefit claimant concentrations (see description below) Pink hatching= medium (0.02 – 0.03) ; Brown dots = high (>0.03) 27. The figure below shows the coincidence of employment in the knowledge economy (where yellow shows a high concentration and brown the highest concentration) with low levels of deprivation (shown as green hatching) and the location of Higher Education Institutes and Further Education Colleges (shown as crosses). In this case the Spatial Economic Analysis Tool can be used to test whether these factors are co-located. ix Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 3: Map for ‘Enterprise & Innovation’ theme, showing the Knowledge economy, along with areas of lowest deprivation and HEIs Key: Knowledge economy concentrations: Yellow = high (5.8 – 10.2%) ; Brown = very high (10.2 – 93.7%). Hatched areas = lowest deprivation scores. Cross symbol = HEIs 28. The figure below shows how the Tool can be used to focus in on a more local area to understand what is happening at this level. x Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 4: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Public administration, education and health sector (focused on Dorset) Key: Proportion of employees in Public administration, education and health: Light blue = 25 – 50 % ; Dark blue = >50 %. Red dots = SSCTs Future Influences on FEMAs 29. The main report provides some discussion about the factors that are likely to influence any future change in FEMAs, although such drivers are by their nature uncertain. The table below reviews some examples of key drivers of change in the future, and suggests how they might influence FEMAs. It is important to note that some of the trends and their possible implications contradict each other. However, at the time of writing there are significant changes taking place to the political and economic landscape of the UK, and the implications of these changes are not known. Table 3: Examples of key drivers of change and their implications for FEMAs Driver of change Possible implication for FEMAs Growth of the knowledge economy Could lead to increase in size of FEMAs in knowledge economy intensive areas as population grows in response to economic opportunities. Could lead to strengthening of FEMAs in these areas as knowledge-intensive economies become more robust. Structural changes to economy – decline of manufacturing and growth in health, retailing, education and services Changes in activity and employment in key sectors of the economy will lead to the re-shaping of FEMA boundaries, with contraction and weakening in those FEMAs based on declining industries, and growth and strengthening in those FEMAs based on growing industries. Improved ICT infrastructure and connectivity Opposing predictions have been made about whether greater knowledge intensity and greater ICT connectivity will lead to a lesser need for face-to-face contact to conduct business in the future, or this will remain as important as it is today. Clearly these opposing patterns will have different impacts on the shape and size of FEMAs in the future. Whilst opposing, these patterns are not necessarily contradictory as the xi Functional Economic Market Areas and Economic Linkages in the South West Final Report Driver of change Possible implication for FEMAs way in which business is conducted may change, to incorporate both more remote working, combined with regular face-to-face working. This could make FEMAs larger but weaker. In the non-business realm improved ICT connectivity may weaken FEMAs as people participate in leisure activities (e.g. viewing films from home rather tan in a cinema) and retail remotely and so do not need to be located in close proximity to such facilities. Increasing congestion on key transport routes Could lead to a reduction in long-distance commuting and the growth and strengthening of FEMAs with high employment concentrations. Could lead to greater reliance on public transport, hence the evolution of FEMAs to better map to public transport infrastructure. Could lead to more home-working, hence weakening of FEMAs characterised by strong employment centres. Climate change Higher risks in certain areas (e.g. coastal areas) may lead to population contraction and consequential shrinkage of FEMAs; and climate change impacts on activities such as agriculture may lead to changes in the size and shape of FEMAs, particularly in more rural areas Increased energy costs Could lead to greater reliance on public transport, hence the evolution of FEMAs to better map to public transport infrastructure. Could lead to greater home-working, hence breakdown of commuting relationships to urban areas, and consequential contraction or reshaping of FEMAs. Steadily increasing number of retirees and older people moving into the region, and a net outflow of young people aged 16 to 24 Relative importance of the drivers of FEMAs likely to change, with functions such as healthcare and retail becoming more important in defining FEMAs in areas with high concentrations of retired residents. FEMAs covering areas which are attractive to retirees may grow and strengthen. xii Functional Economic Market Areas and Economic Linkages in the South West Final Report 1: Introduction and Objectives Key messages A core objective of LEAs is to, “identify the economic linkages between the area assessed & the wider economy” (CLG guidance). Analysis of economic geography is also promoted in the development of an evidence base for the South West. Economic linkages are expressed in terms of Functional Economic Market Areas (FEMAs), “the area over which the local economy and its key markets operate” (CLG definition). This requires analysis of how areas fit into wider markets beyond administrative boundaries. This project was commissioned to develop a shared evidence base to help to identify FEMAs and other spatial economic linkages in the South West to support partners responsible for developing LEAs and other strategy making. Introduction 1.1 This report has been prepared by SQW Consulting (SQW) working in association with c4g following the completion of the Functional Economic Market Areas (FEMAs) and economic linkages research project. The research was commissioned by the South West Observatory (SWO) Core Unit on behalf of a wider partnership including South West Regional Development Agency (SWRDA), fifteen upper tier local authorities and the Regional Improvement and Efficiency Partnership (RIEP). 1.2 The purpose of this project is to investigate FEMAs in the South West, which play an important role in Local Economic Assessments (LEAs) and policy and strategy making at other geographical levels. Local Economic Assessments and strategy making at other geographical levels 1.3 The Local Democracy, Economic Development and Construction Act received Royal Assent in November 2009 3. The Act has placed a statutory duty on upper tier local authorities in England to prepare an LEA 4. LEAs should tell the story of place and set out the evidence base on economic conditions and performance. They are also expected to describe how they will support sustainable economic growth – economic growth that can be sustained and is within environmental limits, but also enhances environmental and social welfare and avoids greater extremes in future economic cycles. 1.4 At the time of preparing this report, the new Conservative – Liberal Democrat Coalition government has not made any policy statements on LEAs. In the Queen’s Speech, the new 3 4 This remains in place at the time of writing In the South West region, there are 16 authorities with responsibility for preparing a LEA. 1 Functional Economic Market Areas and Economic Linkages in the South West Final Report government announced its intention to abolish Regional Spatial Strategies and return some planning and housing responsibilities to local authorities. This makes it extremely unlikely that new regional strategies will be taken forward. However, the need to understand how functional economic geographies operate across administrative boundaries remains. These developments have taken place in the later stages of the research, so consequently the report and its analysis still considers FEMAs from a South West and LEA perspective. Functional economic market areas 1.5 Guidance published by Communities and Local Government (CLG) to support the preparation of LEAs 5 and regional strategies 6 (which remains in place at the time of writing) calls for some consideration of functional economic geographies. 1.6 With regard to LEAs, one of the core objectives of LEAs is, “to identify the local economic geography, including the linkages between the area being assessed and the wider economy”. CLG guidance goes on to state that, “The Government believes that local economic assessments should, as far as possible, match real economic geographies or functional economic market areas”. The Policy Statement on regional strategies places emphasis on developing polices for sub-regions within each region and advises that the identification of sub-regions should have regard to, “the economic geography of the region and functional relationships”. 1.7 Chapter Two provides a discussion on the definition of FEMAs and their importance to economic development policy making. CLG has defined FEMAs as, “the area over which the local economy and its key markets operate” 7. The LEA guidance also states that, “functional economic market areas are spatial areas that can be mapped by a combination of the key indicators of economic activity and across areas”. FEMAs reflect the real world in which the economy operates, extending beyond the administrative area level (districts, unitary authorities, county or regional boundaries) at which economic development policy is generally made. Economic geography is different to political geography, requiring the analysis of economic flows and linkages insofar as they affect economic development policy at the scale at which the economic markets operate. Project objectives 1.8 Against this backdrop, the SWO and RIEP are supporting upper tier local authorities in developing LEAs, and have appointed a LEA evidence coordinator to help achieve this aim. These regional institutions and SWRDA are keen to inform consistent approaches to the consideration of FEMAs within the South West, to support effective policy and strategy making. 5 Department of Communities and Local Government, Local Economic Assessments: Consultation on Draft Statutory Guidance, December 2009. 6 Department of Communities and Local Government and Department for Business, Innovation and Skills, February 2010, Policy Statement on Regional Strategies 7 Department of Communities and Local Government, Functional Economic Market Areas: An economic note, February 2010. 2 Functional Economic Market Areas and Economic Linkages in the South West Final Report 1.9 This research project was commissioned to help support this process. The primary purpose of the project has been to develop a shared evidence base to inform the identification of FEMAs and other spatial economic linkages in the region to help the preparation of LEAs and strategy making at other geographical levels. 1.10 The purpose of the project has not been to arrive at a single set of defined FEMA boundaries across the region. Rather the project has explored functional geographies of different themes that influence economic development, for example labour markets and retail catchments, gathering appropriate indicators to evidence the themes. 1.11 The outputs of the study have been designed to help: • define and describe current FEMAs • investigate themes in the LEA guidance • understand what is happening and the story of place • provide a common and shared evidence base that can be used by local authorities and other stakeholders in the South West to enable consistency of spatial economic analysis. Project outputs 1.12 1.13 There are three main outputs of the project: • a Spatial Economic Analysis Tool, together with the data behind it, which maps data indicators relating to functional market areas. The tool is based on a GIS system and has been designed to enable users to combine – and potentially add – different datasets (or data layers) to allow them to undertake unique analysis to understand local functional geographies, and particular local issues • a guidance manual for using the Spatial Economic Analysis Tool • this final report which sets out the work that has been undertaken and includes some initial analysis of the spatial dynamics of the region, which allows stakeholders to take this analysis further. Further details on the Spatial Economic Analysis Tool are provided in Chapter Four. The tool uses free to use GIS software and is available from the SWO on a DVD. The Tool will be updated over time as new data become available. Methodology 1.14 The project has sought to develop a jointly owned means of understanding the economic linkages between the South West’s local authority administrative areas and the wider economy. The project involved three main stages of work and seven inter-linked tasks. These are depicted in the figure below. 3 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 1-1: Project methodology I: Induction Meeting Phase 1: Background & Preparation Phase 2: Understanding Stakeholders’ Requirements Phase 3: Delivering a System II: Literature & Data Review III: Understanding Local/ Regional Requirements IV: Defining the System V: Data Collection VI: Modelling & Analysis VII: Reporting & Delivery Source: SQW Consulting 1.15 A full description of the methodology followed can be found in Annex A. A key feature of the methodology has been Phase 2 which involved extensive consultation with stakeholders throughout the South West to ensure that their needs were understood and that the outputs of the project met these needs as far as it was possible to do so. Report Structure 1.16 The remainder of the report is structured into five chapters: • Chapter Two provides a discussion on why FEMAs are important to economic development policy making and stakeholders’ views on how the study can support the preparation of LEAs and regional policy. The chapter also discusses approaches to understanding FEMAs and stakeholders’ views on factors that are of most importance in the South West • Chapter Three provides a review of the existing state of knowledge on functional geography and economic linkages in the South West from an analysis of previous regional research and policy • Chapter Four sets out the specification of the project outputs • Chapter Five provides high-level advice on FEMAs in the region based on the analysis of layers in the Spatial Economic Analysis Tool 4 Functional Economic Market Areas and Economic Linkages in the South West Final Report • Chapter Six provides a high-level understanding of how FEMAs and other economic linkages are developing over time. 5 Functional Economic Market Areas and Economic Linkages in the South West Final Report 2: Functional Economic Market Areas Key messages The geography of economic activity is increasingly complicated. People often live, work and undertake leisure activities in different administrative areas and links for business and people can be truly global. There is a strong argument that economic analysis is best undertaken at the spatial level at which the market operates. This can support better policy making. Understanding FEMAs helps to understand the roles of different places and can provide a common evidence base and shared understanding of the nature, extent and distribution of economic activity. The study was regarded by stakeholders as being useful to supporting the preparation of LEAs and for policy making at other geographical levels, including in terms of ensuring consistency in approach and improving understanding of FEMAs and geographic and economic relationships. There is no universally agreed approach to defining FEMAs and no definitive map of FEMAs. They vary in size and boundary, depending on the issue under consideration (e.g. labour market, retail catchments) and the criteria used to define them. In the consultation programme stakeholders had a good high-level understanding of FEMAs in relation to TTWAs, housing and the settlement structure. Understanding of economic linkages was much more limited. The consultations revealed limited examples of local analysis of FEMAs or primary survey data relating to economic linkages. The assessment of FEMAs is not just a question of data. It relies on judgement and qualitative evidence. The interpretation of data and of analysis will often include subjective opinion as well as more objective assessment. Introduction 2.1 The purpose of this chapter is to set out the benefits of undertaking analysis of FEMAs in developing economic development policy and to provide guidance on factors that are of interest in considering FEMAs. The chapter also provides feedback on the consultation process in respect of how the study was seen as supporting the process of developing LEAs and policy making at other geographical levels. 6 Functional Economic Market Areas and Economic Linkages in the South West Final Report Increasing complexity of economic activity 2.2 2.3 Implicit within the CLG guidance on LEAs and regional strategies 8 is a recognition that the geography of economic activity is increasingly complicated: • people often live in one administrative area, work in a second, and they may travel to a third to do their weekly shopping or go to the cinema • at the same time, there is a distinctive functional geography which exists within administrative boundaries: smaller town centres or market towns have their own catchments, while highly localised patterns of service provision may be important for the well-being of individual neighbourhoods • for the business community, functional geographies can be genuinely global; flows of knowledge and capital typically pay scant regard to international boundaries, let alone those associated with local government • looking to the future, there are many examples of planned housing growth sited in one administrative area while the employment growth – which the new housing is intended to service – is substantively located in another. Additionally, any particular place may exist in many “layers” of functional space. A town like Bath, for example, is simultaneously both a significant hub in relation to much of north and east Somerset but also strongly part of the Bristol labour market catchments; and has commercial and commuting relationships with London. Through its heritage assets – and arguably its university – it certainly has an international profile and it attracts many international visitors and students every year. Hence to understand thoroughly the economy of Bath – and its strengths, weaknesses, opportunities and threats – there is a need to recognise this broad geography of flows and the position of Bath within it. How the assessment of FEMAs can support economic development policy making 2.4 This complexity of economic activity presents opportunities and challenges for economic development policy making. Given that economic flows and linkages extend beyond administrative areas, there is a strong argument that FEMAs are the most appropriate unit for economic development policy analysis – and these will vary according to the subject being analysed. This is because economic analysis is best undertaken at the spatial level at which the market under consideration operates. So, for example, analysis of labour market issues in a local authority area needs to consider the skills of the local population and the profile and strengths of the business base, but it should also consider flows of workers into and outside of the area to understand its role in the wider economy, and the skills and business profile of neighbouring areas. 2.5 Determining policy at the most appropriate scale can lead to better policy making. This is because: 8 In place at the time of writing 7 Functional Economic Market Areas and Economic Linkages in the South West Final Report • policies developed at a national or regional level do not reflect local differences between places, e.g. in economic conditions • policies developed at an individual local authority level may not consider the full costs and benefits of the policies beyond the administrative boundaries. Decisions taken at a FEMA level can ensure: ¾ the costs and benefits are fully considered in the decision-making, thus spatial ‘spillovers’ (e.g. negative or unintended impacts) are minimised ¾ policies are based on a full understanding of wider barriers and opportunities • policies can promote wider interests, for example those of neighbouring local authorities or at the sub-regional, regional or national level • policies can promote partnership working between local authorities and public sector organisations, helping to overcome co-ordination failures in the public sector and providing a common platform for negotiating with tiers and agencies of government. 2.6 There are others reasons that support the case for FEMA analysis. One of the strengths of FEMA analysis is that it seeks to consider the role of places in the wider economy across a range of domains. Consequently, it can help to support better integration between policy areas, for example land use planning and transport. Such integration does of course happen already, but FEMA analysis can support it further and ask new questions of the data. 2.7 Most importantly, FEMAs help to understand the roles of different places and can provide a common evidence base and shared understanding of the nature, extent and distribution of economic activity. Stakeholders views 2.8 Stakeholders were asked how the project process and its results will support the production of LEAs and strategies at other geographical levels. The majority of stakeholders (but not all) expected the project outputs to be useful to support work underway or planned to prepare LEAs and in developing the strategies at other geographical levels. Stakeholders identified a range of benefits of the project. These are summarised in the table below. Table 2-1: Ways in which the project will support preparation of Local Economic Assessments and the Regional Strategy Issue Detail Help inform joint working • Improve shared understanding of the region and sub-regions, to enable policy development • Provide justification for (or against) partnership areas • Support basis for joint working between local authorities and with their partners • Create a shared evidence base Provide evidence to inform a consistent approach • Provide evidence which can be used in a variety of ways at different geographical scales Meet requirements in national guidance • Add robustness to the evidence base 8 Functional Economic Market Areas and Economic Linkages in the South West Final Report Issue Support policy development Inform understanding of FEMAs and geographic and economic relationships Detail • Enhance mapping to aid interpretation of data • Development of LEAs, and in some cases economic development and planning strategies • Initial work for Regional Strategy • Unspecific investment decisions • Explore variety of issues related to FEMAs • However, there was no common clear set of region-wide ‘big issues’ identified • Some expectations beyond the scope of the project included comparison with other regions/ places • Might be useful to help identify LEPs Source: SQW Consulting Help to inform joint working… 2.9 Some stakeholders identified that by developing a shared understanding of FEMAs and economic linkages, the project would provide a basis for joint working between services within local authorities; between local authorities; and between local authorities and other partners. Informing joint working is an outcome of a consistent approach to LEAs in the South West. The evidence is expected to enable analysis of the rationale of current partnership arrangements and future discussions on the most appropriate administrative areas to use in decision making and policy development. Ensure consistency in approach… 2.10 It was widely perceived by stakeholders that by undertaking the project across the South West, the findings would provide insight into the wider linkages between places in the South West while being finely grained enough to explore FEMAs within local areas. The nature of wider linkages between places was a topic felt by some stakeholders to be a weakness in their present understanding. 2.11 Some stakeholders felt that a benefit of the project would be the consistent approach it would provide to the assessment of FEMAs through collecting and analysing data across the whole region. Meeting requirements in guidance… 2.12 Chapter One introduced the requirements in national guidance for the exploration of economic linkages in preparing LEAs and the regional strategies. This project is regarded as being an important contributor to meeting these requirements, although there was an expectation that further analysis will be undertaken by stakeholders of the project outputs at the local level. 2.13 The project was expected to improve the robustness of the evidence bases for LEAs and strategy making at other geographical levels in terms of the topics covered and the interpretation and mapping of data. Some stakeholders also valued the independence of the research. 9 Functional Economic Market Areas and Economic Linkages in the South West Final Report 2.14 The consultations revealed that the upper tier authorities were at various stages in the development of the LEAs, with the majority of the first LEAs expected to be finalised between September and December 2010. Local authorities are waiting for this study to inform their analysis of FEMAs in their evidence bases under preparation for the LEAs. In the meantime local authorities are focusing effort on other requirements in the guidance, for example preparing policy statements (e.g. on worklessness) and implementing consultation strategies. Explore FEMAs and geographical and economic relationships… 2.15 The main benefit of the project identified by stakeholders was to explore FEMAs and economic relationships as they operate across the region. Consultees referred to a range of issues of relevance to the LEAs and regional level strategies, including: • labour market catchments and commuting patterns • supply-chains and economic linkages – e.g. business-to-business trade, customer flows • influences on business location decisions • social issues – e.g. the distribution of wealth and measures of wealth such as earnings, household income and housing costs • retail catchment areas • the geography of inward investment ‘areas’ • learning and education – e.g. travel to learning flows, locations of education institutions, influence of Higher Education Institutions on economic development • cross-border links – the main interest was on exploring links within the region but external links to the South East, West Midlands and Wales was of interest to some stakeholders • future patterns of FEMAs. 2.16 The topics that emerged as being most important across the consultation programme including the regional workshop in April were: Travel To Work Areas (TTWAs); supplychains and economic linkages; transport catchment areas and infrastructure; and retail catchment areas. These are important region-wide issues, but what also came across as strongly from the consultation programme was the significant variety in the topics of interest to local areas and consultees. A specific set of region-wide ‘big issues’ did not emerge from the consultation programme, perhaps partly because consideration of economic linkages and FEMAs is less well advanced in the preparation of LEAs. 2.17 The regional workshop discussed the spatial scale at which the project should consider FEMAs. It was agreed that the spatial analysis needs to be appropriate to the economic linkages under consideration, but that the project should aim to enable finer grained analysis than in previous regional research. 10 Functional Economic Market Areas and Economic Linkages in the South West Final Report 2.18 It has not been the intention of this project to arrive at a set of best-fit FEMA boundaries across the region. This approach was supported in the consultations undertaken with upper tier authorities, with consultees looking for the project to provide high-level advice on FEMAs but not to be prescriptive in defining specific boundaries. Supporting policy development… 2.19 Although the project was regarded to be most useful for analytical purposes, by improving understanding of conditions and linkages the project was also expected to have wider uses in supporting policy development. Aside from the LEAs and regional strategy, stakeholders said the work would support economic development strategy development (e.g. sector specific work), Local Development Frameworks and proposals for housing and site developments. Some local authorities also thought that the project could assist investment decisions, although this was described in general terms. Approaches to assessing Functional Economic Market Areas 2.20 To date, there has been no standard definition of FEMAs and no definitive map of FEMAs across England. The CLG definition of functional market areas provided in Chapter One is a relatively recent development. A methodological challenge for assessing FEMAs is that they vary in their size and strength, depending on how they are defined and the policy area being considered. 2.21 The table below presents a list of factors that can be used to define FEMAs. Table 2-2: FEMA analysis themes in previous research Theme Travel to Work Areas (TTWAs) - usually defined as at least 75% of the economic active residents working in the area and at least 75% of the people working in the area also living in the area Self-containment – the proportion of people living and working in the same area Housing Market Areas (HMAs) – often defined as containing 70% of local housing moves Supply chains/ industrial structure – e.g. market and supply links of businesses and business services Service markets – the spatial area of users of goods and services (including higher order goods and services such as museums) Administrative areas – they are not always defined by political boundaries and have been established to respond to issues of interest to FEMA analysis e.g. regeneration areas Historical relationships Retail markets Transport catchment areas. Source: SQW Consulting 2.22 The assessment of FEMAs also generally involves spatial analysis and the mapping of socioeconomic data in a GIS system to reveal patterns, relationships and the roles of places in their wider area. 11 Functional Economic Market Areas and Economic Linkages in the South West Final Report 2.23 Given the multi-faceted nature of FEMAs, the strength of any analysis will be improved if a range of economic, social and environmental issues are considered in seeking to understand FEMAs. Challenges and pitfalls 2.24 There are a number of methodological challenges to FEMA analysis. The most significant is the availability of data. Previous FEMA work has found limited availability of robust data on supply chains and economic linkages. Much of the socio-economic data available relates to stocks rather than linkages or flows. Data that measure flows or linkages are limited, and are often gathered through primary surveys for particular purposes. 2.25 The assessment of FEMAs is not just a question of data. It relies on judgement too, and qualitative evidence. The interpretation of data and of analysis will often include subjective opinion as well as more objective assessment. 2.26 Lastly, the criteria or thresholds used to define FEMAs can have a bearing on the results. For example, the pattern of TTWAs will look different depending on the threshold used. Using inappropriate spatial levels or thresholds can lead to misleading results. Stakeholder views on approaches to understanding Functional Economic Market Areas 2.27 The consultation programme asked consultees to identify factors that help to understand FEMAs and to identify the FEMAs of most importance to economic development in their local area. The table below presents the key findings of the consultations. Table 2-3: Definition and understanding of FEMAs Issue Detail Factors that help to understand FEMAs Stakeholders most often defined FEMAs in terms of TTWAs and labour markets Much less knowledge and understanding of FEMAs in terms of supply-chains and economic linkages Understanding of FEMAs tended to be based on knowledge of the area, rather than being underpinned by local research to back up perceptions on FEMAs Some, but limited sub-regional analysis of FEMAs FEMAs of most importance to economic development The main FEMA themes felt to influence economic development varied by consultee/ area. Most commonly selected themes were: • Labour markets/ TTWAs • Supply-chains/ economic linkages • Retailing • Transport and infrastructure (including availability and quality of broadband in rural areas). Source: SQW Consulting 2.28 Consultees most often discussed FEMAs in terms of TTWAs, housing markets, settlement types, and the roles of settlements and places in their wider structure. Stakeholders tended not to define FEMAs from the perspective of economic linkages and supply chains, although 12 Functional Economic Market Areas and Economic Linkages in the South West Final Report some stakeholders did discuss the importance of sectors such as tourism, the defence industry and aerospace to particular places. 2.29 Consultees had a good understanding of FEMAs relating to labour market catchments, commuting and housing. The influence of commuting flows and transport links on economic performance was referred to by stakeholders, particularly in relation to large settlements such as Bristol and Swindon and links to major employment centres such as London and Southampton. Generally, descriptions of FEMAs in places further away from larger cities in the region tended to include more localised issues, including town and village relationships. Geographical barriers were identified as affecting the direction of economic linkages between places in a number of cases, as well as affecting the size and shape of the FEMAs. 2.30 Prior to commissioning this work stakeholders’ understanding of FEMAs tended to be relatively high-level. It was informed by consultees’ knowledge and understanding of places and tended not to be underpinned by local research. For example, aside from some analysis of TTWAs at the district and ward levels, the consultations revealed few previous examples of research to assess FEMAs. There also appear to have been few previous attempts to map socio-economic data. The commissioning local authorities have been waiting for this work to help inform their analysis of FEMAs. Data and indicators for FEMA analysis 2.31 Stakeholders were consulted on sources of data and evidence to explore FEMAs across the region and the availability of research, particularly primary survey data relating to economic linkages and supply chains. The table below summarises the key findings from this part of the consultation programme. Table 2-4: Data and indicators for FEMA analysis • Some examples of regional, sub-regional and local research identified • National datasets were identified for data indicators • Very limited availability of primary survey data. Where undertaken, this has tended not to consider economic links and flows e.g. business to business supply chains Source: SQW Consulting 2.32 Consultees identified data and indicators which could be useful for the project. Most of the data suggested was from official national datasets, including data on business start-ups, economic output and commuting flows. Some stakeholders referred to examples of local research (e.g. ward level analysis of TTWA, neighbourhood mapping) but this was not extensive. The project has not had the resources to undertake a detailed review of local research and policy, which should be taken forward by local partners in the next step in the development of the Spatial Economic Analysis Tool. 2.33 It was hoped that primary data resources would be identified through the consultation programme, for example on business to business trade flows and customer markets. Unfortunately very few examples of primary survey data were identified. Similarly, the consultation programme revealed few instances of socio-economic data having been mapped in a GIS system, whether at a local, sub-regional or regional level. 13 Functional Economic Market Areas and Economic Linkages in the South West Final Report 3: Existing Knowledge on Functional Economic Market Areas Key messages Existing knowledge on FEMAs in the South West includes the identification of three sub-regional spatial areas in regional planning policy, seven functional activity zones, four character zones and 13 Housing Market Areas (HMAs). The FEMAs have been explored primarily to inform regional policy making. There has been limited assessment of FEMAs at a local area. At a sub-regional level broadly, there is consistency in the characterisation of different parts of the region between the FEMAs. At a sub-regional level, the north and east of the region is regarded to have the strongest economic potential The overall framework of the seven functional economic activity zones has remained consistent over time. Perhaps the most significant change has been the identification of sub-zones within the North East Triangle The settlement structure has been a key determinant of the functional economic activity zones and HMAs. External links to London and the South East economies has been influential on how FEMAs have developed and been characterised. Distance to markets is seen as a constraint on the economic potential of the western area. Work has been undertaken outside the South West, but this is similar in nature to previous work undertaken within the South West, and does not provide the level of functionality provided in the Spatial Economic Analysis Tool. Introduction 3.1 The main focus of this chapter is on previous work on functional geography that has been undertaken in the South West, but we have also looked at some work that has been undertaken in other regions to identify any lessons from this. 3.2 There has been previous analysis of functional market areas in the South West. The assessments undertaken have been from a regional and sub-regional perspective, to help inform regional planning and regional economic strategy. This chapter presents the findings of a review of relevant existing resources and their assessment of: • sub-regions • economic activity zones • character areas 14 Functional Economic Market Areas and Economic Linkages in the South West Final Report • retail Catchment Areas • Housing Market Areas (HMAs). Sub-regional emphases 3.3 The draft RSS 9 distinguishes three broad sub-regions in the South West and includes policy approaches for each. Details on each of the sub-regions and their FEMA characteristics and links are provided in Annex A. 3.4 The sub-regions are: • the north and centre of the region – where the policy objective is to realise growth potential • the south east of the region – where policy emphasis is on managing growth • the western peninsula – where the objective in the draft RSS is to stimulate the economy. 3.5 The three areas are not formal sub-regions but are differentiated between in regional planning for spatial emphasis in policy approaches. Within each sub-regional designation, the draft RSS seeks to steer development and growth to Strategically Significant Cities and Towns (SSCTs) in order to support their economic and service roles and regeneration potential 10. Figure 3.1 overleaf shows the location of the SSCTs. 3.6 The sub-regions and the SSCTs were identified in regional policy from the assessment of the characteristics of the region and functional analysis of the role of places and key settlements. The selection of the SSCTs was not based just on settlement size. 3.7 The draft RSS also discusses the fragmentation in the traditional distinction between urban and rural areas in the South West, with people residing in rural areas but living urban lifestyles and being reliant on employment and other services in nearby towns and cities. The number of medium sized towns is also identified as a distinguishing feature of the region. These towns serve an important role in rural areas as centres of employment and service provision. The draft RSS notes that the relationship between market towns and smaller settlements and rural areas is becoming increasingly complex. In some places traditional links have been broken by increased personal mobility. 9 South West Regional Assembly, 2006, The Draft Regional Spatial Strategy for the South West 2006-2026 The SSCTs in the current draft RSS are Barnstaple, Chippenham, Taunton, Bath, Dorchester, Torbay, Bournemouth, Exeter, Trowbridge, Bridgwater, Gloucester, Weston-super-Mare, Bristol, Plymouth, Weymouth, Camborne/ Pool/ Redruth, Poole, Yeovil, Falmouth-Penryn, Truro, Salisbury, Cheltenham, Swindon. 10 15 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 3-1: Draft RSS Strategically Significant Cities and Towns Source: SQW Consulting 16 Functional Economic Market Areas and Economic Linkages in the South West Final Report Functional economic zones 3.8 The RES 11 supports the spatial strategy in the draft RSS. The RES identifies seven overlapping functional economic zones in the South West which each display consistent economic and social functions 12. 3.9 The zones are depicted in Figure 3.2 overleaf and further explanation on each zone is provided in tables in Annex A. The boundaries of the zones overlap and are not intended to be fixed. 3.10 The seven functional zones are: • North East Triangle – this is the largest and most powerful of the zones, containing three sub-zones: West of England; Swindon and the adjacent M4 corridor; and Gloucester, Cheltenham and the adjacent M5 corridor • A303 Corridor – the least coherent zone defined by the road link and including the towns of Salisbury and Yeovil • South East Coastal – centred around the prosperous Bournemouth-PooleChristchurch conurbation but also including less affluent rural Dorset • M5 Corridor – a bridging zone between the North East Triangle in the more prosperous north and the zones in the less affluent south. It includes Exeter, Westonsuper-Mare and Taunton • South Central – containing the key settlements of Exeter, Plymouth and Torbay, the southern part of the zone has performed relatively slowly and parts of the zone are remote • North Peninsula – a predominantly rural zone with no major urban centres • Western Peninsula – the most peripheral of the zones, containing three major towns (Truro, Falmouth-Penryn and Camborne-Pool-Redruth), smaller local centres and rural areas. 11 South West Regional Development Agency, 2006, Regional Economic Strategy for South West England 20062015 12 South West Regional Development Agency, 2006, Spatial Implications – Place Matters. 17 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 3-2: South West Functional Economic Zones Source: South West Regional Development Agency, 2006, Regional Economic Strategy for South West England 2006-2015 18 Functional Economic Market Areas and Economic Linkages in the South West Final Report 3.11 In headline terms, there has been little change in the designation of the functional zones over the past 10 years. The seven zones were first identified by consultants in 2000 to give spatial specificity to the delivery of the first regional strategy, with a second study updating the work in 2001 13. The zones were defined based on ‘fundamental economic geography’ – having relatively self-contained labour markets (largely informed by commuting data from 1991 and 1997) and similar economic characteristics. A further study was completed in 2004 14 although this did not undertake significant new functional analysis and re-confirmed the same albeit renamed 15 zones that appear in the current RES. The 2004 report did recommend further analysis of the relationship between Weymouth and Portland and Yeovil and consideration of whether this would warrant extending the M5 Corridor zone or adjusting the shape of the A303 Corridor zone. 3.12 The regional workshop in April 2010 asked stakeholders if the functional economic zones still had currency. Stakeholders generally agreed with the zones, although they identified the analysis of patterns within zones as a weakness. A key feature of this current work and the Spatial Economic Analysis Tool that has been developed is that it allows stakeholders to analyse data at a local level rather than to rely on regional level analysis and boundaries that are determined by others. The Tool allows users to undertake analysis at a lower level than previous work because many of the datasets are available at LSOA level. Characteristic zones 3.13 Although the Spatial Dynamics 2004 study referred to above did not undertaken significant fresh analysis of the functional economic zones, the study did undertake new characteristic analysis. Characteristic zones were defined as areas of common economic, social and environmental characteristics. The study assessed the character of the region through the analysis and mapping of data on the economy, social issues, access, culture, population, environment, housing and deprivation. 3.14 The research identified four characteristic areas. These are shown in the figure below. They are: • The Western Edge - including much of the northern peninsula coastal belt and the Forest of Dean in the north. Predominantly a rural area, this zone was defined based on shared population, housing and social characteristics • The South Peninsula – this zone has a similar geography to the South Central functional zone. It was defined on cultural/ identity grounds • The North East – the zone maps closely to the North East Triangle functional zone. The area shares similar characteristics in economics, access, population, housing and social domains, with the zone extending into parts of neighbouring regions 13 DTZ Pieda Consulting, 2001, South West RDA Spatial Prioritisation, Review of Economic Activity Zones. South West Regional Development Agency, 2004, Spatial Dynamics Final Report 15 In the 2000 and 2001 studies the South East Coastal zone was called Dorset Coastal, South Central was the South Devon zone, North Peninsula the North Devon and Exmoor zone and the Western Peninsula was named the Cornwall and Isle of Scilly zone. 14 19 Functional Economic Market Areas and Economic Linkages in the South West Final Report • The South East – this zone includes much of the A303 and South East Coastal functional zones, with links to the South East region. This zone was defined based on ‘average’ characteristics in many domains. Figure 3-3: Characteristic zones Source: DTZ Pieda Consulting, 2004, Spatial Dynamics Final Report 3.15 The analysis that informed the designation of the characteristic zones was from a regional rather than local perspective and the report recognises that it does not consider issues of importance to each local area. Retail catchment areas 3.16 The draft RSS refers to four broad retail catchment areas in the region, although they are not identified in the document. The draft RSS does list the main centres in the region as including Barnstaple, Bath, Bournemouth, Bristol, Cheltenham, Exeter, Gloucester, Plymouth, Poole, Salisbury, Swindon, Taunton, Torquay, Truro, Weston-super-Mare, Yeovil, Cribbs Causeway and Clarks Village in central Somerset. 3.17 Studies were undertaken in 2004 on the retail performance of urban centres 16 and in 2005 for the SSCTs on retail, office and leisure uses 17. This work was updated for the Examination in 16 17 CACI, 2004, Baseline Retail Assessment of the Regional/ Sub-Regional Centres in the South West DTZ, 2005, South West’s Town Centres Regional Study. 20 Functional Economic Market Areas and Economic Linkages in the South West Final Report Public (EIP) of the draft RSS in 2007. The table below shows the ranking of the top fifteen centres in this work 18. Table 3-1: Retail ranking hierarchy Ranking CACI 2007 retail ranking - centres DTZ 2007 retail ranking - centres 1 Plymouth Cheltenham 2 Cheltenham Bath 3 Bristol (not including Broadmead redevelopment) Bristol Broadmead 4 Bath Exeter 5 Exeter Salisbury 6 Cribbs Causeway Plymouth 7 Cribbs Retail Park Swindon 8 Bournemouth Cribbs Causeway 9 Swindon Bournemouth Central 10 Salisbury Taunton 11 Gloucester Gloucester 12 Taunton Torquay 13 Truro Poole 14 Yeovil Yeovil 15 Torquay Truro Source: http://www.swcouncils.gov.uk/nqcontent.cfm?a_id=3041 3.18 The two indices are broadly consistent, with Cheltenham, Plymouth, Bath, Bristol and Exeter retail centres appearing at the top of both lists. The table is included here for illustrative purposes, as the draft RSS does not include a retail hierarchy. Housing market areas 3.19 Research undertaken in 2004 for the South West Housing Body 19 defined 12 sub-regional Housing Market Areas (HMA)s and one character area which did not constitute a subregional HMA but shared common housing characteristics. The HMAs were defined as typically containing 70% of household moves, excluding long distance moves associated with a major lifestyle change. The HMAs were identified from the analysis of household moves and travel to work data and consultations with stakeholders. 3.20 The HMAs and character area are shown in Figure 3.4 overleaf and listed in the table below. 18 The updated CACI retail index ranked 30 town and city centres and all of the SSCTs as of 2007 (May 2007); the updated DTZ retail index ranked 30 centres as of 2006 (May 2007) 19 DTZ Pieda Consulting, 2004, Analysis of Sub-Regional Housing Markets in the South West 21 Functional Economic Market Areas and Economic Linkages in the South West Final Report Table 3-2: Description of Housing Market Areas and Character Area Area Description 1. West Cornwall • Comprising the former districts of Penwith, Kerrier, Carrick and Restormel and extending into parts of North Cornwall • Similar in character to the North Cornwall and North Devon polycentric character area (number 13) • Extending from Plymouth outwards as far as Totnes, Tavistock and Liskeard • Less extensive HMA than other major cities in the region because of the relatively small employment base in Plymouth • Extends into South Hams and Teignbridge districts • Relatively tightly drawn round the urban area reflecting relatively poorer economic performance • Large HMA reflecting high accessibility of Exeter and employment growth • HMA extends into East Devon, South Somerset, parts of Taunton Deane, Mid Devon and Teignbridge 5. Taunton • HMA stretches along road networks covering all of Taunton Deane District, and taking in much of West Somerset, and parts of East Devon, South Somerset, Mendip and Sedgemoor. 6. Weymouth Dorchester • Relatively small HMA comprising Weymouth and Portland and the southern parts of West Dorset District 7. Bournemouth Poole • Covering all of conurbation and Purbeck district and much of North Dorset and East Dorset • Extends into the New Forest District of the South East region 8. South Somerset – West Dorset • Small HMA focused on Yeovil and Sherborne and including much of South Somerset and the northern part of West Dorset 9. Salisbury • Centred on Salisbury but extending out including into parts of South East region 10. West of England • Large HMA, extending into Somerset, Wiltshire and Gloucestershire • Analysis suggests HMA also extends into Wales 11. Swindon • Comprises urban area and westwards into former Cotswold, North Wiltshire and Kennet districts 12. Gloucester Cheltenham • Centred on the Gloucester and Cheltenham urban areas • Influenced by WoE and Swindon HMAs and by HMAs in the West Midlands 13. North Devon/ North Cornwall Character Area • Large area including Exmoor National Park, North Devon, Torridge and North Cornwall districts • Comprises series of local markets, reflecting rural character and absence of a dominant employment centre 2. Plymouth 3. Torbay 4. Exeter Source: DTZ Pieda Consulting, 2004, Analysis of Sub-Regional Housing Markets in the South West The HMAs map reasonably well against the economic activity zones. In the regional workshop stakeholders reported that the HMAs continue to be relevant. The HMAs are in the main associated with major urban centres in the region. Where this is the case, the HMAs reflect the strength of employment in the urban centres. 22 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 3-4: Housing Market Areas Source: South West Regional Housing Board, 2004, Analysis of Sub-regional Housing Markets in the South West 23 Functional Economic Market Areas and Economic Linkages in the South West Final Report Travel to work areas Table 3-3: 2001 Travel to Work Areas 3.21 The Travel to Work Areas (TTWAs) are a widely recognised set of functional economic geographies in the South West. A TTWA is an area within which the bulk of the resident population also work in the same area. According to the ONS “The fundamental criterion is that, of the resident economically active population, at least 75 per cent actually work in the area, and also, that of everyone working in the area, at least 75 per cent actually live in the area.” 20 The current TTWAs were defined in 2007 using 2001 Census information on home and work addresses, and are based on Lower Layer Super Output areas, with the data being modelled. TTWAs may iron out any local detail and can be less useful nearer the edges, particularly where concentrations of employment are close together. For example the divide between Bristol and Bath is not as clear as the TTWA boundary suggests. A more detailed view of travel to work patterns can be determined using CommuterView 21 (a tool available via the ONS website), but this does not allow the regional-level mapping that TTWAs provide. Functional economic market area analysis outside the South West 3.22 Work from two other regions has been reviewed – from the West Midlands and the North East. 20 http://www.statistics.gov.uk/geography/ttwa.asp http://www.neighbourhood.statistics.gov.uk/dissemination/Info.do;jessionid=ac1f930d30d6607d8e10d00d41368 254cd248c020d82?m=0&s=1277279395984&enc=1&page=analysisandguidance/analysisarticles/CommuterView. htm&nsjs=true&nsck=true&nssvg=false&nswid=1680 21 24 Functional Economic Market Areas and Economic Linkages in the South West Final Report The North East 3.23 Three pieces of work have been undertaken to inform understanding of Functional Economic Market Areas in the North East. 3.24 The first was entitled Spatial Analysis of Economic Flows in the North East (2006 22). This work used a number of datasets including: census commuting data; flows data from Experian household survey on travel patterns around High Street shopping locations, retail parks, for groceries from market towns. Data was used at various sub-regional levels to: • identify economic hotspots of varying sizes • identify possible physical barriers to economic flows • identify links between deprivation and areas of relative self containment • identify economic linkages between different areas • identify the extent of city regions, as measured using catchment area data • identify the links between rural and urban areas. 3.25 The report produced an alternate set of ‘commuting zones’, as Travel to Work Areas were deemed to be outdated. 3.26 A second report was produced on Exports from the Region and Supplies to the Region (2007) 23. The research tried to map supply chains and markets, which had not been done in the first report as no robust region-wide data was available. Although deemed as not adding much value when the West Midlands analysis was undertaken 24, an input-output model (operated by Durham University for One North East) was used to identify the interactions between economic sectors. 3.27 A third report on The Economic Geography of the North East looks in further detail at the FEMAs as part of the process to develop evidence for the regional strategy and LEAs. The research is being conducted in two phases; the first to provide a broad body of evidence and the second to focus on a small number of key issues. Through a literature review and spatial data analysis of each element, the work aims to: ¾ analyse commuting data at a smaller area level than in the 2006 report, to enable better understanding between different parts of the North East ¾ define economic hotspots (the locations with the highest concentrations of employment, broken down by sector). This is also intended to include consideration of supply chains and markets for business, presumably using the 2007 input-output model analysis ¾ examine the geography of pockets of deprivation, and the influencing factors. 22 http://nerip.co.uk/library/view.aspx?id=259 http://nerip.co.uk/library/view.aspx?id=513 24 Association of Regional Observatories, Economic geography: regional observatory approaches 23 25 Functional Economic Market Areas and Economic Linkages in the South West Final Report 3.28 The resulting analysis describes functional economic areas in the North East and provides a very simple regional level map. West Midlands 3.29 A report entitled Analysis of Sub-regional Dynamics in the West Midlands was commissioned by Advantage West Midlands and the West Midlands local authorities, to enable a better understanding of FEMAs. The document is caveated as producing the fullest picture possible using the best available data, with a lack of data availability meaning some potentially interesting functional links (such as supply chains) are not explored. 3.30 The approaches to identifying functional sub-regional areas and further analysis are set out below: Industry and Economy • Supply chains and markets: There is little in the literature about the economic links between local areas. Given the complex and global nature of markets, it was claimed in Economic Geography: Regional Observatory Approaches that there was no adequate approach to provide reliable information in the West Midlands. It was judged that the North East approach of using Input-Output modelling would not add much value. Thus no analysis of supply chains and markets is provided in the analysis. • Industrial mix: Analysis and mapping the sectoral mix of employment tends to be approached using location quotients. The Observatory argue that location quotients can show an unclear pattern, as they reflect the location of individual firms including small ones in areas with very low levels of employment. The results were ‘clarified’ by identifying the concentrations of employment in a particular sector (using up-todate employment data), and then using census travel to work data to establish commuting patterns to those areas. Labour Market • Commuting data: An adapted Travel to Work Area approach using census data was used for the Analysis of Sub-regional Dynamics in the West Midlands. The adaptations aimed to simplify the methodology, and included conducting analysis at a ward rather than super output area level. Areas with low-levels of self containment were treated as a single zone, and analysis was limited to the West Midlands region and neighbouring areas rather than the whole country. Some analysis was also provided of how trends have changed since 2001, based on analysis of the Annual Population Survey at local authority level. • Socio-economic classifications: ONS Area Classifications were reviewed, but found to provide little valuable information at the sub-regional level. • Labour market classifications: Key labour market characteristics (including occupational mix, economic activity and skills levels) were mapped, but were found 26 Functional Economic Market Areas and Economic Linkages in the South West Final Report to be of limited value, as most sub-regions (once a certain ‘suitable’ size) tended to include a mix of socio economic characteristics. Housing 25 3.31 3.32 In the West Midlands, the Observatory argued that two of the CLG’s methods of identifying sub-regional housing market areas could add value to analysis. These are: • House prices and rates of change in house prices, which reflect household demand and preferences for different sizes and types of housing in different locations. • Household migration and search patterns, reflecting preferences and the trade-offs made when choosing housing with different characteristics. Full details of these methods can be found in Identifying sub-regional housing market areas. Geography and Environment 3.33 Limited data were found in the audit for Analysis of Sub-regional Dynamics in the West Midlands. Of that which was found most was generally argued to be of little value in defining sub-regions. The data included: • Urban-Rural Classifications: There is a well established series of classifications of areas into urban and rural categories. In addition to these categories, an alternate classification was also used (following development by the North East Regional Information Partnership). This alternate classification recognises the relationships between rural areas and nearby urban areas, using commuting data. • Land use: Data on different types of land use did not add value to the understanding of sub-regions beyond highlighting the difference between urban and rural areas. • Natural Environment: Natural environment classifications such as Landscape Character Areas and River Catchments added limited value. Community • Wider travel patterns: Experian ‘retail catchments’ and ‘big night out’ data were used to understand travelling patterns for shopping and leisure. Local authority level Travel to Learn data was collected from the Learning and Skills Council. • Community identity: Analysis of newspaper circulation from JICREG provides details of circulation areas of different regional and local newspapers. Analysis of the most read purchased newspaper across the region gave a clear sub-regional pattern. • Demographic characteristics: Mapping of demographic characteristics including age and ethnicities was undertaken, but added little value to analysis. 25 See CLG guidance on the three approaches to defining the sub-regional housing market (http://www.communities.gov.uk/documents/planningandbuilding/pdf/323693.pdf) 27 Functional Economic Market Areas and Economic Linkages in the South West Final Report Conclusion 3.34 There have been several previous pieces of work which investigate functional economic geography within the South West and in other regions in the UK. Through consultation, we have identified that there has been broad support for the functional geographies arrived at in the above work. However, analysis has been primarily at a regional level, with limited analysis at lower levels,, meaning that it is of limited use for developing LEAs and understanding relevant FEMAs, which requires investigation at the local level. The previous work also arrives at a set of boundaries which cannot be tested further at the local level. 3.35 This current piece of work (culminating in the Spatial Economic Analysis Tool) provides the opportunity for stakeholders investigate below the regional level of previous work: • With the functionality to look at different datasets which have been collected to help inform the LEA process either individually or in combination; • And the ability to zoom in and look at a far more local level, particularly where data are available at the LSOA level. 3.36 Work done outside the South West does not provide this level of functionality, and again arrives at a set of boundaries prescribed at the regional level (as has previously been the case in the South West.) Other key messages emerging from the work undertaken elsewhere include: recognition that robust supply-chain mapping is not possible with currently available data; and recognition of limitations of the ONS Area Classifications (which has been addressed in this work by undertaking new multivariate analysis) 3.37 All of the boundaries produced within these previous functional analyses of the South West region are included in the Spatial Economic Analysis Tool as layers so that they can be investigated in more detail and at a local level if stakeholders wish to do this. 28 Functional Economic Market Areas and Economic Linkages in the South West Final Report 4: The Spatial Economic Analysis Tool Key messages The main study output is a Spatial Economic Analysis Tool. The tool maps various datasets to explore and understand FEMAs in the South West. The Tool provides a common platform to undertake this analysis. The Spatial Economic Analysis Tool is available on a DVD and utilises free-to-use GIS software. The Tool can be used to identify and describe current FEMAs, investigate themes in the LEA guidance and understand what is happening and the story of place. A guidance manual has been prepared to provide advice on how to use the Spatial Economic Analysis Tool. Introduction 4.1 This chapter introduces the outputs of the project and how they can be used to support the preparation of LEAs and for policy making across various geographical areas. It sets out the content and functionality of the Spatial Economic Analysis Tool and introduces the guidance manual that has been prepared to help use the it. Lastly, the chapter provides high-level advice on the on-going management of the Tool. Project outputs 4.2 There are three outputs of the project: • a Spatial Economic Analysis Tool (based on a GIS package), together with the data behind it, which maps data indicators relating to functional market areas • a guidance manual for using the Spatial Economic Analysis Tool • this final report. 4.3 The Spatial Economic Analysis Tool maps 100 socio-economic datasets to explore and understand FEMAs. It helps to understand FEMAs in the South West and the roles of different places. The Tool provides a common platform by which to undertake this analysis. 4.4 The tool has been designed to enable users to combine – and potentially add – different datasets (or data layers) to allow them to undertake unique analysis to understand local functional geographies, and particular local issues. It is possible to update the Spatial Economic Analysis Tool over time as new data become available. Further details on the Spatial Economic Analysis Tool are provided below. 29 Functional Economic Market Areas and Economic Linkages in the South West Final Report 4.5 The Spatial Economic Analysis Tool is available from the SWO on a DVD and utilises freeto-use GIS software. A guidance manual is available to help users of the Tool and is appended to this report at Annex E. Please contact the SWO to receive a copy of the Tool. The intended use of the Spatial Economic Analysis Tool 4.6 4.7 The Tool – and the spatial analysis in this report – has been developed to help: • identify and describe current FEMAs • investigate themes in the LEA guidance • understand what is happening and the story of place. The Tool will be of use in understanding and identifying FEMAs at different spatial scales across the region. The analysis of spatial dynamics in Chapter Five has been structured to explore the following FEMA issues: • Structure of economy • Enterprise and innovation • Demography and geography • Labour market • Skills • Economic inclusion • Natural environment • Transport infrastructure • Housing • ‘Place’. 4.8 These topics map against many of the core LEA themes in the latest national guidance 26. Further details on how the content of the Tool maps against LEA themes is provided in Annex B to this report. 4.9 The Tool will also be of use to policy makers operating at the sub-national level in terms of providing a consistent resource to explore FEMAs at different geographical levels, from LSOA level up to regional level. Analysis has been undertaken at the regional scale and some preliminary analysis at the upper-tier authority level in Chapter Five. 4.10 A requirement of this project has been to undertake high-level assessment of FEMAs across the region. The analysis in Chapter Five provides some initial assessment using the Tool and drawing out patterns and relationships for different places. The Spatial Economic Analysis 26 Department of Communities and Local Government, Local Economic Assessments: Consultation on Draft Statutory Guidance, December 2009. 30 Functional Economic Market Areas and Economic Linkages in the South West Final Report Tool has been developed to enable further analysis to be undertaken by users of the tool beyond that set out in this project. 4.11 An additional buffer of one local authority district beyond the South West border has been included within the Tool to allow cross-border analysis, except for the border with Wales where differences in the way that data is collected and made available mean that this has not been possible. Content of the Spatial Economic Analysis Tool 4.12 The Tool includes data relating to a range of FEMA themes. 4.13 The starting point for deciding on the content of the Spatial Economic Analysis Tool was the list of factors that can be used to explore FEMAs in Table 2.2. These themes were tested with stakeholders in the consultation programme to identify those that were most important and data that could be included in the Tool to evidence them. 4.14 A long list of data indicators against the themes was prepared. A prioritisation exercise was undertaken to identify the highest priority and tested with the project Steering Group. The indicators were prioritised against the project objectives, the desire to include data to enable finer grained analysis to be undertaken, the resources available for the project and the need to keep the Tool manageable. 4.15 There were trade-offs in selecting the final list, between the desire for the data to be available at the lowest spatial scale and the reliability of the data; and between data reliability and the age of the data. Where more than one indicator was potentially available, the most suitable indicator was selected. 4.16 The final selection has involved an element of judgement. The data list is not intended to be exhaustive. Further data are available that could be included in the Tool in the future. However, the priority going forward should be to include data where there are currently gaps in the Tool. 4.17 A full list of the datasets that have been included in the Tool as layers is set out in the Table below. More detail on the rationale for choosing these layers and excluding others is set out in Annex D. 4.18 These layers have been selected to provide a good range of socio-economic data to inform LEAs and other regional policy making; to keep the Spatial Economic Analysis Tool manageable and usable; and to deliver a tool within the timescale and budget available for this project. However, a key feature of the Tool is that it can be updated and further layers added in the future as required. 4.19 Where possible, data have been collected and layers mapped at Lower Super Output Area (LSOA) level 27. 27 An LSOA is a Census data collection unit and represents around 1,500 residents. Therefore, the geographical area and the business activity within LSOAs will vary. 31 Functional Economic Market Areas and Economic Linkages in the South West Final Report Layers Table 1: Spatial Economic Analysis Tool Layers Theme Layer Folder Year Source Data description Access to services Distance to food store 2007 IMD Population weighted average road distance (KM) to a food store Distance to GP premises 2007 IMD Population weighted average road distance (KM) to GP premises Distance to Post Office 2007 IMD Population weighted average road distance (KM) to a Post Office Distance to primary school 2007 IMD Population weighted average road distance (KM) to a primary school Further Education Colleges South West England 2009 Association of Colleges Locations of further education colleges Higher Education Institutions South West England 2008/9 HESA data return 08/09 Locations of higher education institutions Background maps 2010 OS OpenData Two background maps 2010 OS OpenData Background map 2010 OS OpenData Higher tier local authorities OS OpenData Rail lines 2010 OS OpenData A roads 2010 OS OpenData Motorways Rural urban definitions 2004 ONS Rural urban definitions South West outline 2010 ONS LSOAs Outline of the South West region Base layers Higher tier Rail Roads 32 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Demography Economy Layer Folder Year Source Data description Unitaries boroughs 2010 OS OpenData Unitary and borough local authorities Pensionable age 2008 ONS ONS Resident Population Estimates Population change 01 08 2008 ONS ONS Resident Population Estimates Population forecasts 2006 ONS Sub national population projections Working age population 2008 ONS ONS Resident Population Estimates Average distance to work 2001 2001 Census Average distance to work (km) Business units 2008 Econ-I Number business units Claimants 2010 Nomis Claimants as % working age population Commuting self cont 2001 2001 Census Commuting self containment Economic inactivity 2004-2009 Annual Population Survey Average economic inactivity % working age population Employment by occupational group 2001 2001 Census Combined occupational groups 2001 2001 Census Combined occupational groups 2010 South West Economy Module Workers: full time equivalent change 2009-2015 2010 South West Economy Module Gross value added change (%) 2009-2015 2010 South West Economy Module Workers: full time equivalent change 2015-2030 2010 South West Economy Module Workers: full time equivalent change 2015-2030 FTE workers 1998-2008 South West Economy Module Workers: full time equivalent change (%) 1998-2008 GVA change 1998-2008 Econ-I Gross value added change 1998-2008 Forecasts 33 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Layer Folder Year Source Data description 2003-2008 Econ-I Gross value added change 2003-2008 GVA total 2008 Econ-I Gross value added total IDBR age bands 2009 IDBR Enterprise age band <2 years (%) 2009 IDBR Enterprise age band 2-3 years (%) 2009 IDBR Enterprise age band 4-9 years (%) 2009 IDBR Enterprise age band 10+ years (%) IDBR local units 2009 IDBR Local units count IDBR local units size 2009 IDBR Local units size band 0-4 employees (%) 2009 IDBR Local units size band 5-9 employees (%) 2009 IDBR Local units size band 10-19 employees (%) 2009 IDBR Local units size band 20+ employees (%) Job density 2008 IDBR, ONS Total employees / working age population Knowledge economy 2008 ABI OECD 2003 3 Digit SIC Code Definition Knowledge economy locational quotient 2008 ABI OECD 2003 3 Digit SIC Code Definition – locational quotient Sectoral employment 2008 ABI Broad industrial group (SIC A,B) (SIC C,E) (SIC D) (SIC F) (SIC G,H) (SIC I) (SIC J,K) (SIC L,M,N) (SIC O,P,Q) Self employment 2001 2001 2001 Census Self employment Sole traders and partnerships 2008 IDBR Sole traders & partnerships TTWAS 2001 2001 ONS Travel to work areas 34 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Housing Natural environment Places Previous FEMA Layer Folder Year Source Data description TTWAS 1991 1991 ONS Travel to work areas Value tourism 2008 SOUTH WEST Tourism Tourism total spend Weekly income 2007-2008 ONS Weekly income - net 2007-2008 ONS Weekly income - total Work from home 2001 2001 Census Works mainly from home Workplace earnings 2004-2009 Annual Survey of Hours and Earnings Full time weekly workplace earnings 2009 Annual Survey of Hours and Earnings Full time weekly workplace earnings 2009 affordability ratio 2009 South West Councils Lower quartile affordability ratio 2009 median house price 2009 South West Councils Median house price Area of Outstanding Natural Beauty 2010 MAGIC Areas of Outstanding Natural Beauty National parks 2010 MAGIC National Parks Association of Market Towns classification 2009 Association of Market Towns Classification of market towns Brownfield 2010 HCA Brownfield land sites Growth points 2010 HCA Growth Points Local Delivery Vehicles 2010 HCA Local Delivery Vehicles Rateable value 2005 HCA Rateable value £ per m2 Strategically significant cities and towns 2008 Draft South West RSS Strategically significant cities and towns Housing markets 2004 DTZ Sub regional housing markets 35 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Qualifications Retail Social Layer Folder Year Source Data description LGA zones 2007 LGA Thriving Local Communities, Mapping Sub Regions South West RDA character zones 2004 DTZ Spatial dynamics South West RDA functional zones 2004 DTZ Spatial dynamics GCSE score 2008-2009 ONS Average level 3 QCA point score per entry Skills no-qualification 2006-2008 Annual Population Survey No Qualification Skills NVQ3+ 2006-2008 Annual Population Survey NVQ3+ Skills NVQ4+ 2006-2008 Annual Population Survey NVQ4+ Retail catchments 1-2 2010 Acxiom Primary and secondary retail catchments Retail catchments 1-3 2010 Acxiom Primary and secondary retail catchments IMD score 2007 IMD Overall score Claimant count 2010 Nomis Unemployment claimant count rate (% of working age population) Claimants LSOA 2010 Nomis Unemployment claimant count rate (% of working age population) Out of work benefits 2009 DWP % of working age population claiming out of work benefits 36 Functional Economic Market Areas and Economic Linkages in the South West Final Report Using the Spatial Economic Analysis Tool 4.20 A guidance manual has been prepared for the Spatial Economic Analysis Tool and is attached at Appendix E. This takes users through various steps – launching the tool, using the data layers, adding data layers to hard drives, exporting and printing maps and undertaking more bespoke analysis. The guidance manual has been circulated separately in this version of the report. 4.21 The core functionality of the Spatial Economic Analysis tool includes: 4.22 • ability to display & overlay multiple layers (turn on/ off) • zoom and move about the map • print or export the map displayed • link to underlying data • legend listing all layers and scale bar. Ensuring effective analysis is very important when using the tool. For this reason, keeping the number of layers displayed to a manageable and discernable level has been a very important aspect of the project. Management of the Spatial Economic Analysis Tool 4.23 The tool has been developed with the intention that it will be updated over time with new data and information as it becomes available. This can be done centrally by the SWO as the coordinators of the tool, or separately by users of the tool. 4.24 The Spatial Economic Analysis Tool will ideally be updated annually, as new data becomes available, or more regularly if new data becomes available that will significantly improve the sophistication of the tool. Potential future enhancement of the Tool 4.25 The focus within this project has been on creating a tool that is practical and straightforward to use, to enable stakeholders to undertake analysis to inform LEAs and other strategies and policies. There has been a limit to the time and resource available to do this. The current version of the tool is intended to be a starting point, with regular updates. In this section, we discuss some areas which could be enhanced in the future. 4.26 The main areas for future development of the Spatial Economic Analysis tool that should be pursued if data and resources become available are: • Inward investment flows – as a proxy of attractiveness to business investment and globalisation (for foreign direct investment). Data may be available from ONS. • Business supply chains. This has been identified as a key requirement by stakeholders, but this is dependent on primary data. Other regional work outside the 37 Functional Economic Market Areas and Economic Linkages in the South West Final Report South West discussed in Chapter Three also investigated this issue but was unable to address it. There is a lack of primary data in the South West, as there is in every other region. A potential proxy is to look at industrial concentrations, supply relationships (ascertained from the regional input-output model econ-i) and then concentrations of supply sectors. This approach doesn’t in practice reveal supply chains, but highlights co-located concentrations of sectors that may have supply chain relationships. However, this is likely to be very time-consuming and there are concerns about the quality of the result (which were raised in the work undertaken in the West Midlands referred to in Chapter Three). As a starting point to addressing business locations, the Spatial Economic Analysis Tool has layers with data on Broad Industrial Groups: • Agriculture & fishing • Banking, finance and insurance • Construction • Distribution, hotels and restaurants • Energy & water • Manufacturing • Other services • Public administration, education and health • Transport and communications • and knowledge economy • Business customer markets • Commuting – this was not included because of the resources that would be required to analyse commuting flows across the region. The recent commuting data release (Annual Population Survey) is also only available at district level. • Strategic employment land and housing land allocations • Priority regeneration areas • House price data – at low spatial scale (the Tool includes house price data at district level) • Transport accessibility, for which data may be available from SWRDA • Transport congestion • Location of cultural attractions. 38 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5: Initial analysis of the spatial dynamics of the South West Introduction 5.1 This section presents some examples of maps created using the Spatial Economic Analysis Tool with available layers, and a commentary on these maps. These examples provide some initial analysis of the spatial dynamics of the South West which can be taken forward through individual LEA or policy/strategy development processes. Commentary is provided on observable patterns and relationships at the South West and sub-regional level, as well as on a more local (zoomed-in) example illustrating key points within each theme. 5.2 Where possible, maps have been presented using fine grain data built up from the Lower Super Output Area (LSOA) level. It is important to be aware that, as much of the land area of the region is rural, the LSOAs appear as relatively large shapes due to low population density in these areas, which do not necessarily indicate high concentrations. 5.3 The presentation and analysis in this chapter is broken down into three areas: 5.4 • A review of the Multivariate Analysis within the Tool, which is a first cut of the data, but provides some initial findings to be investigated further; • A review of some of the key LEA themes at a regional level; and • Some initial observations on how these key themes are represented at the Upper Tier Local Authority level. There are many other potential uses of the Tool, and this chapter is intended as a starting point which can be taken further by other stakeholders. The chapter gives some initial ideas about which layers can be used and combined into projects. All of the following projects are available on the Spatial Economic Analysis Tool DVD, so can be used by stakeholders to enable further analysis. Multivariate analysis 5.5 Multivariate analysis was developed as a tool in consumer and market research as a way of distilling a large number of variables into a much smaller set of 'summary variables'. This is a way of revealing the main underlying relationships and patterns in a much larger data set. The technique used in this instance was a cluster analysis – a way of grouping data units with the greatest similarities together. In this case, the data units were lower super output areas (LSOAs), and so each LSOA was allocated to a cluster based on all of the variables used for the final stage of the analysis. 5.6 The process is complex, but the result is simple: a statistically robust way of grouping the LSOAs according to the strongest features they have in common. In use, then, the analysis provides an incisive geographical summary of socio-economic characteristics. 39 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.7 ONS have already produced a cluster analysis of Census 2001 variables, deriving seven main clusters (or 'Super Groups'), 20 sub-clusters (or 'Groups') and a further level of 'Sub Groups'. It is a robust and useful analysis, but is based only on Census variables, and so its origins are becoming dated. Our analysis sought to build on this work by adding more up-to-date variables from sources other than the Census, such as the Annual Business Inquiry (ABI), the Interdepartmental Business Register (IDBR), the Index of Multiple Deprivation (IMD) the Department for Work and Pensions (DWP) and ONS. This means that the analysis contains data from a number of different years – a potential weakness, but as the analysis produces a 'high level' summary only, this was thought to be acceptable. Selecting variables 5.8 The first part of the analysis is a method of reducing a large amount of variables to a sufficiently small set of variables for the cluster analysis. An initial set of 103 variables was selected for the analysis. These were standardized before being used for the next stages. A correlation table was produced using all the variables. Each variable is then checked to see if and how it is correlated with the other variables. Any variable with a correlation of less than 0.375 with more than one other variable was dropped. All variables with correlations of more than 0.7 were examined for similarity and the number of variables reduced to leave single variables capable of representing other variables. The objective at this stage was to reduce the variable set to one sufficiently representing the wider set yet small enough to allow meaningful cluster analysis. 5.9 A final set of 34 variables was derived in this way: Variable Source Year Percentage of jobs in Agriculture and Fishing 2008 ABI 2008 Average distance km travelled per person to fixed place of work Census 2001 Average household size persons per household Census 2001 Housing tenure Percentage of houses in multiple occupation shared dwelling Census 2001 Housing tenure Percentage of second or holiday homes Census 2001 Percentage of economically active people aged 16 to 74 who work part time Census 2001 Percentage of households that are private other rented accommodation Census 2001 Percentage of households that are public sector rented accommodation Census 2001 Percentage of households which are lone parent households with dependent children Census 2001 Percentage of households with 2 or more cars or vans Census 2001 Percentage of households with one person who is not a pensioner Census 2001 Percentage of people aged 16 to 74 in employment who work mainly from home Census 2001 Percentage of people aged 16 to 74 who are students Census 2001 Percentage of people aged 16 to 74 with a higher education qualification Census 2001 Percentage of people aged 16 to74 in employment usually travel to work by public transport Census 2001 40 Functional Economic Market Areas and Economic Linkages in the South West Final Report Variable Source Year Percentage of people aged 16 to74 in employment working with routine or semi routine occupations Census 2001 Percentage of people identifying as Indian Pakistani or Bangladeshi Census 2001 Population density people per hectare Census 2001 Percentage of population claiming IB SDA average of 4 quarters 2006 to 2007 DWP 2006/7 Percentage of population claiming JSA average of 4 quarters 2006 to 2007 DWP 2006/7 Enterprise turnover band IDBR 2009 Number of Local Units with 0 to 4 Employed IDBR 2009 Number of Local Units with public status IDBR 2009 Percentage enterprise age band more than 10 years IDBR 2009 Average KS4 points score ID 2007 IMD 2007 Children Young People Sub Domain Score IMD 2007 Difficulty of access to owner occupation IMD 2007 Education skills and training score IMD 2007 Income score IMD 2007 Not entering higher education rate IMD 2007 Population weighted average road distance KM to a food store IMD 2007 Percent of resident population aged 25 to 44 ONS 2008 Percent of resident population aged 45 to 64 ONS 2008 Percentage of pensionable age population 60 to 65 ONS 2008 0-49,000 Cluster analysis 5.10 The cluster analysis (using the K-means method) produced seven as the ideal number of clusters based on the 34 variables. As each LSOA was allocated to a cluster the next stage was to map the distribution of the clusters. A description of each cluster was produced based on the variables most strongly defining the cluster (ascertained by examination of the means and standard deviations for all variables across all clusters and all of the LSOAs as whole). Findings 5.11 The analysis produced seven clusters which identify variables with the best correlations. The clusters are: 1. (Badly housed mixed neighbourhoods) These areas are characterised by poor housing, ethnic diversity, higher proportions of students and high population density. They form parts of the centres of most cities and larger towns 2. (Deprived, poor neighbourhoods) 41 Functional Economic Market Areas and Economic Linkages in the South West Final Report These areas are characterised by low incomes, skills and educational attainment, single parent households and high claimant rates. These are also found in most cities and larger towns, but are not confined to the centre of settlements. 3. (Low skill working neighbourhoods) These areas are characterised by public sector housing, low skills, and routine and semiroutine occupations. These are also found in most cities and larger towns, and also in some more rural locations. 4. (Middle-aged, diverse neighbourhoods) These areas are characterised by relatively high proportions of middle aged people, ethnic minorities, high car ownership and high population density. Again these are mainly urban neighbourhoods, but also appear on the outskirts of some cities and towns. 5. (Resorts & retirement) These areas are characterised by a high proportion of public sector employment, second homes, and residents of retirement age. There are also higher proportions of houses in multiple occupation. There is a strong coastal distribution of these areas, though they also appear in attractive, rural inland areas. 6. (Rural communities) These areas are characterised by high proportions of employment in agriculture and fishing, poor access to services, small businesses (both size and turnover), home-working and high car ownership and longer distance commuting. The make up the 'rest of' the countryside which is not commuter belt or a resort or retirement area. 7. (Urban fringe) These areas are characterised by high car ownership, well-qualified residents and also by prevalence of small businesses. They clearly define the areas of attractive countryside close to cities and larger towns which are the locations of choice for commuters. 5.12 These clusters can be seen in the map below. The MVA map is available as a layer in the Tool. 42 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-1: MVA Cluster Map of the South West Source: SQW 43 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.13 The first four clusters mainly describe urban areas, and the last three rural areas. The region's largest urban areas all contain a mix of areas of four urban clusters. It is important to note that deprivation, poor housing, low skilled work and more diverse and younger neighbourhoods are found up and down the region, in all of the Strategically Significant Cities and Towns (SSCTs). 5.14 Smaller towns, though, often only show one or two of the urban clusters, indicating less diversity of conditions, town by town. Clusters 1 and/or 2 are most often absent, indicating lower levels of deprivation and associated characteristics 5.15 Of the rural clusters, there is a clear concentration of resorts and retirement areas (cluster 5) in Cornwall and along the south coast of Devon and Dorset, though there are also pockets on the north coast and in attractive rural areas such as Dartmoor, Exmoor and the Cotswolds. 'Commuter belts' (cluster 7) are more prevalent in the North and East of the region, probably reflecting both the presence of larger towns and cities and better transport infrastructure. Cluster 6 broadly represents rural communities and so 'fills in' the remaining rural areas. 5.16 In use the main value of these clusters is that they are based on the region and buffer and so summarise that whole area. Therefore for smaller areas such as local authorities they summarise the nature of the areas in terms of the region and buffer as a whole. It follows that they also allow comparison of one area with another. So, for more local analysis, they provide a starting point for further investigation using the wide range of layers in the Spatial Economic Analysis Tool. Thematic analysis 5.17 The commentary in this section has been structured by several of the key themes for LEAs as follows: • Structure of economy • Enterprise and innovation • Demography and geography • Labour market • Skills • Economic inclusion • Natural environment • Transport infrastructure • Housing, and • ‘Place’. 44 Functional Economic Market Areas and Economic Linkages in the South West Final Report Structure of the economy 5.18 5.19 This section presents sample maps for some of the major sectors of the economy. It examines patterns across the region, and explores potential sub-regional groupings with similar sectoral structure in the economy. We have chosen to look at four Broad Industry Groups (BIGs) which are particularly important for the South West economy, but other BIGs may be of interest for more local level analysis. The following sectors have been mapped: • Public administration, education and health • Manufacturing and construction • Agriculture and fishing • Banking, finance and other services. To avoid over-complexity, we have looked at each sector in a separate map to discern the patterns that they show. Figure 5-2: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Public administration, education and health sector Key: Proportion of employees in Public administration, education and health: Light blue = 25 – 50 % ; Dark blue = >50 %. Red dots = SSCTs 5.20 This map shows which areas within the South West are more dependent on public sector employment. We have also added the SCCTs which are useful to understand whether and where concentrations of employment focus on the towns and cities of the region. Data are from the ABI (2008), and the symbology has been adjusted to show those areas with more than 25% and more than 50% of employment in the public sector. This map is useful to 45 Functional Economic Market Areas and Economic Linkages in the South West Final Report identify those areas that are dependent on public sector employment, which is an increasingly important question in a time of public spending cuts. 5.21 The heaviest concentrations of those working in the public sector appear to be in the east of the region, although there are also significant proportions in Devon. The map above shows seven ‘clusters’ of concentrations of public sector employees as a proportion of total employees. 5.22 Below we present a closer examination of public sector employment in Dorset, to give an example of the more localised capabilities of the Tool. Particular concentrations are apparent in the main centres of Poole, Bournemouth, Weymouth and Dorchester as well as Yeovil in Somerset More information on the patterns of public sector employment at the level of upper tier Local Authorities is shown in the next part of this chapter. 46 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-3: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Public administration, education and health sector (focused on Dorset) Key: Proportion of employees in Public administration, education and health: Light blue = 25 – 50 % ; Dark blue = >50 %. Red dots = SSCTs Figure 5-4: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Manufacturing and Construction sectors Key: Proportion of employees in Manufacturing & Construction higher than 20%. Blue = Manufacturing; Green = Construction. Red dots = SSCTs: 47 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.23 In the above map, we show those areas which are more dependent on employment in manufacturing and in construction. For both sectors we have highlighted those areas in which more than 20% of employment is found in either sector. Concentrations of employment in the construction sector appear to be fairly evenly spread across the region. In terms of concentrations of manufacturing, the patterns are slightly more pronounced; a band of manufacturing exists in the north of the region in Gloucestershire, and the heaviest concentrations appear to run in a band from east Somerset into central Wiltshire. Figure 5-5: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Agriculture and Fishing sectors Key: Blue = Proportion of employees in Agriculture & Fishing higher than 5%. ; Red dots = SSCTs 5.24 The above map shows those areas which are more dependent on the Agriculture & Fishing sector, with LSOAs with more than 5% employment in this sector highlighted. We have also added the SSCTs to the map, which highlights the inverse of the map of public sector employment, i.e. that this sector tends not to be located in the SSCTs. The proportion of employees in agriculture across the region is smaller than the previous two sectors, but examining a map of where at least 5% of employment is in this sector, a large band in the middle of the region becomes apparent. Much of north Devon, east Cornwall and west Somerset appears to be reliant on agriculture as a mainstay of the economy. Other smaller bands of concentration appear in west/central Dorset and through mid-Gloucestershire, as well as mid-Cornwall. 48 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-6: Map for ‘Structure of Economy’ theme, showing concentrations of employment in the Banking, Finance and Other service sectors Key: Proportion of employees in Service sectors higher than 25%. Blue = Banking & Finance; Pink = Other service sectors. Red dots = SSCTs 5.25 In this map we have combined Banking & Finance and Other Services to show both sectors on the same map. This gives a representation of large parts of the service sector. We have also added the SSCTs to see whether the location of these sectors is driven by the SSCTs. 5.26 The service sectors tend to be clustered towards the east of the region; and concentrations seem to increase still further just outside the region to the east, which may link functionally with those in east Wiltshire and Gloucestershire. However, the mapping shows that there are significant clusters of places in the west of the region where the service sector is strong, for example along parts of the A30 and around the larger cities of Exeter and Plymouth. There are also specific clusters of employment in banking and finance in mid-Cornwall around Truro, and in east Devon. 5.27 Taking all four of the above maps together, agriculture appears to be more prominent in the centre of the region throughout Devon, west Somerset and west Dorset, as well as in parts of Gloucestershire. There is a clear focus on service sectors towards the east of the region, with smaller pockets around larger cities in the region and dotted through the other counties. There are stronger concentrations of manufacturing as an employment sector in the far north of the region, and to the south of Bristol, including a large band from east Somerset into central Wiltshire. Employment in public administration, education and health is fairly widespread across the region, with particular concentrations apparent in Dorset and Devon and west Gloucestershire. This South West level overview provides a starting point for more local area analysis which can be undertaken with the Tool. 49 Functional Economic Market Areas and Economic Linkages in the South West Final Report Enterprise and innovation 5.28 This section examines two indicators linked to enterprise and innovation: self-employment and the proportion of small businesses. We also map the concentrations of the knowledge economy and compare this with locations of Higher Education Institutions (HEIs). 5.29 Caution should be exercised when dealing with self-employment as it could be driven by need (e.g. lack of other employment opportunities) rather than by the desire to be entrepreneurial – so can be limited in respect of identifying entrepreneurial hotspots – particularly in rural areas where employment opportunities can be more limited. Figure 5-7: Map for ‘Enterprise & Innovation’ theme, showing areas of low self-employment Key: Self-employment: Blue = >15 % ; Dark green = 5 – 15 % ; Light green = <5 % . 5.30 In the above map the highest level of self-employment is coloured blue, with lower levels in green and the lowest levels in light green. There are high rates of self-employment throughout large parts of the region (shown above in blue), with much of the region having more than 15% of the local population self-employed. Those areas with the highest proportions of self-employment are found in the most rural areas – particularly across north Cornwall and north Devon. Places with the lowest proportion of self-employment (<5%) are evident in Bristol and in Plymouth. Interestingly, there are also pockets in the east in areas which are not around SSCTs. Closer inspection shows these to be in and around the army ‘camps’ of the (southern) Salisbury Plain, Warminster, Bovington, Blandford and RAF Lyneham. 50 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-8: Map for ‘Enterprise & Innovation’ theme, showing proportions of small businesses Key: IDBR Unit size 0-4: Blue = 0 - 67 % ; Dark green = 67 – 80 % ; Light green = >80%. 5.31 The map above showing micro-enterprises is another indicator of entrepreneurialism – although as mentioned above, caution should be exercised when determining whether a significant proportion of small businesses is driven by need or desire. The prevalence of micro-enterprises in rural areas is probably more driven by need. Light green areas represent the highest concentrations of micro-enterprises, with dark green being lower concentrations and blue the lowest concentrations. 5.32 Much of the region is characterised by high proportions (more than 80%) of businesses being micro-enterprises (0-4 employees; light green in the above map). Areas with the smallest proportions of micro-enterprises (shaded in blue) tend to coincide with urban areas. But there are large areas with small proportions of micro-enterprises – most obvious above are parts of Dartmoor and the Salisbury Plain, although note that these are likely to represent large LSOAs. 51 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-9: Map for ‘Enterprise & Innovation’ theme, showing the Knowledge economy, along with areas of lowest deprivation and HE locations Key: Knowledge economy concentrations: Yellow = high (5.8 – 10.2%) ; Brown = very high (10.2 – 93.7%). Hatched areas = lowest deprivation scores. Cross symbol = HEIs and FECs 5.33 The above map combines several layers relating to the knowledge economy 28 (concentration of employment in knowledge economy and the location of Higher Education Institutes (HEIs) and Further Education Colleges (FECs)). In addition, we have added an indicator of higher quality of life by showing those areas with the lowest Index of Multiple Deprivation (IMD) scores. 5.34 From the map it can be seen that HEIs and FECs tend to be located near the centre of clusters of activity in the knowledge economy, although there are several instances (e.g. in west Dorset) where this is not true. The strongest linkages between the presence of HEIs, FECs, clusters of the knowledge economy and areas of low deprivation occur in the north of the region in south Gloucestershire and north Wiltshire. 5.35 A sub-regional section of the above map is provided below in more detail, focused on Bristol, Bath, northern Wiltshire and Gloucestershire. HEIs and FECs can be seen to be near, but not necessarily in, areas with the highest concentrations of the knowledge economy, whilst the same can be said of the areas of lowest deprivation. Knowledge economy workers may tend to live in such areas, and commute to work. 28 The OECD identifies high and medium tech manufacturing; high value added “knowledge intensive” market service industries such as finance and insurance and telecommunications; and business services. The current OECD definition also includes education and health 52 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-10: Map for ‘Enterprise & Innovation’ theme, showing the Knowledge economy, along with areas of lowest deprivation and HEIs (local example) Key: Knowledge economy concentrations: Yellow = high (5.8 – 10.2%) ; Brown = very high (10.2 – 93.7%). Hatched areas = lowest deprivation scores. Cross symbol = HEIs 5.36 Together these maps for ‘Enterprise and Innovation’ indicate that, as might be expected, micro-enterprises and high self-employment tend to be concentrated in rural areas, indicating that there are likely to be high levels of enterprise in the more rural parts of the region (visible exceptions to this include those rural areas which include military garrisons), most likely driven by need. There is a cluster of HEI and FEC locations in Bristol and in a band running roughly southwest and northeast from Bristol. Much of the knowledge economy is clustered in the east of the region, which may be functionally linked across the boundary to the closest parts of the South East region. Demography and geography 5.37 This section shows how some of the datasets can be used to understand the demography and geography of the region, including population change (2001-08), average distance travelled to work and concentrations of people of pensionable age. 53 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-11: Map for ‘Demography & geography’ theme, showing population change 2001-2008 Key: Green = population loss ; Blue = population gain 5.38 In the map above, the layer showing population change has been simplified to show those areas experiencing population loss (coloured in green) and those showing population gain (coloured in blue). The map shows population change from 2001 to 2008. Areas of recent population loss include large parts of Gloucestershire, Somerset and Wiltshire, south Dorset, and parts of west Devon and central Cornwall. It also includes several urban areas such as large parts of Swindon, Poole and Bournemouth UAs. 54 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-12: Map for ‘Demography & geography’ theme, showing concentrations of people of pensionable age, and AONBs/National Parks Key: Proportion of population of pensionable age; Blue = >30% of population. SSCTs = Red dots. AONBs = Pale green hatching; National Parks = Dark green hatching. 5.39 This map looks at areas where there is a high concentration of people of retirement age (coloured in blue), AONBs and National Parks to investigate the hypothesis that retired people tend to locate in these more attractive areas. Again, the SSCTs are shown on the map both to help to understand the relationship with these towns and cites and also to give some indication of place in the region. There are clear concentrations of pensioners around the coastal settlements in the west of the region. There is some sign that there are higher numbers of pensioners living in or near Areas of Natural Beauty (AONBs) and National Parks, including the Cotswolds (seen in more focus in the map below) but particularly around the coasts, although this is less distinct for Dartmoor, for example. 5.40 There are much lower proportions of population of pensionable age in and around the main SSCTs. Wiltshire, North Somerset, Bristol and B&NES appear to have relatively low proportions of population of pensionable age. The more detailed map below looks at the Cotswolds and shows where there is a coincidence of greater proportion of retired residents in the AONB area. 55 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-13: Map for ‘Demography & geography’ theme, showing concentrations of people of pensionable age, and AONBs/National Parks (local example) Key: Proportion of population of pensionable age; Blue = >30% of population. SSCTs = Red dots. AONBs = Pale green hatching; National Parks = Dark green hatching. 5.41 Taken together, it is apparent that, whilst much of the region has experienced population growth, there are particular areas of recent population loss mainly in rural areas, but notably also in Swindon, Poole and Bournemouth. There is some evidence of clustering amongst the region’s older population around AONBs and National Parks; and areas of population loss appear to coincide with areas with relatively high concentrations of population of pensionable age, at least in much of the southern part of the region. Labour market 5.42 The maps below illustrate two key facets of the region’s labour market: the concentrations of working age population and average distance travelled to work. 56 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-14: Map for ‘Labour market’ theme, showing concentrations of working age population Key: Proportion of population of working age. Light green = 27-55% ; Dark green = 55-60% ; Blue = >60% 5.43 The map above shows those areas with the highest concentration of working age population (in blue) and areas with lesser concentration (in dark green and then light green). Those areas with the highest proportions of population of working age are to be found in the largest settlements in the region. However, there are also some interesting patterns of high proportions of working population across the region, which appear to follow ‘spines’ – for example through the middle of Cornwall and Devon, with higher concentrations of ‘dependents’ (i.e. those not of working age) towards the coasts of North Somerset, South Devon and Dorset. The M4 corridor also appears to show a band of high proportions of working-age population, running into the South East region (see zoomed map below). 57 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-15: Map for ‘Labour market’ theme, showing concentrations of working age population (local example) Key: Proportion of population of working age. Light green = 27-55% ; Dark green = 55-60% ; Blue = >60%. Motorways = black line Figure 5-16: Map for ‘Labour market’ theme, showing average distance travelled to work Key: Yellow = >20km ; Light brown = 10-20kms ; Dark brown = <10kms. Roads: Blue = motorways; Red = A-roads 58 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.44 The map above shows average distance to work, with those areas with lowest distance to work (less than 10km) in dark brown, medium distance to work in light brown (10-20km) and greatest distance in yellow (>20km). This has been overlaid with the road network to see how the distance travelled relates to major road accessibility. Unsurprisingly, there is clear clustering around the main towns of population who do not have long commutes. There is also a clear indication of commuting zones around many of the main settlements in the region. The most rural areas, including much of central Devon, east Cornwall and the western tip of Cornwall demonstrate much higher average distances travelled to work. 5.45 However, there are pockets in some rural areas or around relatively smaller towns with very low average distances travelled. These include around the military camps of the Salisbury Plain and in Blandford, but also around Glastonbury/Street in Somerset and Bideford in Devon. On the other hand, there are larger numbers of middle-distance commuters living in Plymouth, where shorter travelling distances might have been expected. 5.46 Across the region, there are relatively high concentrations of working-age population in and around the main towns and cities, but also in particular ‘bands’ including most noticeably to the east of Bristol along the M4 corridor. Those living in the most rural areas tend to have longer average commutes, despite there being greater instances of self-employment, whilst the military garrison areas are typified by shorter commute distances. Skills 5.47 Skills data are available at a range of different levels and qualifications. Here we present areas with particularly high concentrations of high and low skilled residents (including a comparison with average household income), as well as picking out those areas with the lowest GCSE scores to examine any patterns emerging. 59 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-17: Map for ‘Skills’ theme, showing areas with high skills (average of >30% with NVQ4+, 200608) and areas of low skills (average >10% of population having no qualifications, 2006-08) Key: Areas with >10% of population having no qualifications (2006-08 average) = hatched; Areas with >30% of population having NVQ4+ (2006-08 average) =green. 5.48 In the map above we have looked at those areas with higher concentrations of residents with no qualifications (hatched) together with those areas where qualifications are highest (i.e. areas where more than 30% of residents have NVQ 4+, shaded in green). We have used two different symbologies because these areas overlap (i.e. areas with high concentrations of both residents with no qualifications and residents with high qualifications), so it is useful to be able to see those areas where there are overlaps. 5.49 There are concentrations of people with no formal qualifications in Cornwall, Somerset and Dorset, Poole, Plymouth and Bristol. There are concentrations of highly qualified residents in much of eastern Gloucestershire, Bristol, North Somerset, B&NES, North and West Dorset and South Hams (Devon). Both West Dorset and Bristol exhibit populations with polarised skills profiles – with relatively high concentrations of both groups. 60 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-18: Map for ‘Skills’ theme, showing areas with lowest GCSE scores Key: GCSE scores of less than 675 = Green 5.50 The map shows areas with the lowest GCSE scores, with scores below 675 shaded in green. There are relatively high concentrations in east Cornwall/West Devon and in eastern Wiltshire. The area around Bristol is expanded below, showing the ‘doughnut’ effect of low GCSE scores around the edge of Bristol and into south Gloucestershire. 61 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-19: Map for ‘Skills’ theme, showing areas with lowest GCSE scores (local example) Key: GCSE scores of less than 675 = Green Figure 5-20: Map for ‘Skills’ theme, showing average weekly household income along with concentrations of population with no qualifications Key: Areas with >10% of population having no qualifications (2006-08 average) = hatched; Average weekly household income: Light green = £400-£600 per week ; Dark green = £600-£700 p.w. ; Blue = >£700 p.w. 62 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.51 The map above explores the coincidence of lower household incomes and lack of qualifications. In this map we have used different symbology for the two datasets to be able to represent both on a single map. Those areas where there is the highest concentration of population with no qualification is hatched, whilst the colours are used to show variations in average weekly household income, with blue showing the highest levels of income (>£700 p.w.), dark green showing lesser incomes (£600-£700 p.w.), and lighter green showing lowest incomes (£400-£600 p.w.). Most of Cornwall and much of North Devon, along with large parts of Bristol, have a concentration of both unqualified population and the lowest levels of average weekly household income. 5.52 There is some consistency between areas with low average qualifications and low average household income. Whilst there are pockets of low skills and low wages in Bristol and Gloucester for example, the highest skill levels coincide with the highest average incomes in the east of the region. There are concentrations of people with no formal qualifications in Cornwall, Somerset and Dorset, Poole, Plymouth and Bristol, and of low GCSE scores in east Cornwall / West Devon and in eastern Wiltshire. Economic inclusion 5.53 This section examines several key representations of economic inclusion: concentrations of deprivation and benefit claimants, and economic (in)activity, as well as a representation of average weekly household income across the region. Figure 5-21: Map for ‘Economic Inclusion’ theme, showing economic inactivity rates Key: Economic inactivity rates: Blue = high (>20 %); Dark green = medium (16 – 20 %); Light green = low (<16 %) 63 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.54 The map above shows data collected at local authority level rather than LSOA level. The highest rates of economic inactivity are coloured in blue (>20%), with 16-20% inactivity coloured in dark green, and the lowest levels (<16%) in light green. The map above shows that the highest rates of economic inactivity are centred around the region’s larger settlements (Plymouth, Bristol, Exeter, Bournemouth) as well as throughout Cornwall and northwest Devon, Torbay, northwest Somerset, B&NES, west Gloucestershire and east Dorset. Figure 5-22: Map for ‘Economic Inclusion’ theme, showing concentrations of deprivation and of benefit claimants Key: Index of Multiple Deprivation (IMD, 2007) score: Green = low (<10); Blue = medium (10-20); Red = high (>20). Benefit claimant concentrations (see description below) Pink hatching= medium (0.02 – 0.03) ; Brown = high (>0.03) 5.55 The map above shows Index of Deprivation - overall score (IMD) 2007 (with red showing the highest IMD scores, blue showing medium and green showing the lowest scores). It also shows claimant count (March 2010) data divided by working age population (population estimates in mid 2008) to give a measure of claimant count concentration, which is represented by pink hatching for medium levels and brown hatching for high levels. Again, different symbologies have been used for different layers to distinguish between them. 5.56 The red areas depict the areas with the highest IMD scores, which include much of Cornwall, West Devon and north west Somerset, as well as pockets of southern Dorset, Poole and Bournemouth, and parts of Bristol. Combined with the layer showing high concentrations of benefit claimants, there are several areas of concentrated deprivation spread across the region, and circled in the map above. 64 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.57 A zoomed-in map of the area around Torbay and south Exeter (below) illustrates the coincidence of high concentrations of benefit claimants in the most deprived areas of this part of the region. Figure 5-23: Map for ‘Economic Inclusion’ theme, showing concentrations of deprivation and of benefit claimants (local example) Key: Index of Multiple Deprivation (IMD, 2007) score: Green = low (<10); Blue = medium (10-20); Red = high (>20). Benefit claimant concentrations (see description below) Pink hatching= medium (0.02 – 0.03) ; Brown = high (>0.03) 65 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-24: Map for ‘Economic inclusion’ theme, showing weekly household income Key: Light green = £400-£600 per week ; Dark green = £600-£700 p.w. ; Blue = >£700 p.w. 5.58 The map above shows household income data as a single layer (which has already been shown in combination with lack of qualifications, above). In this single layer map those areas with lowest household income are shown in light green, medium incomes in dark green, and highest incomes in blue. There is a clear pattern of higher average household income in the east of the region, notably in large parts of Gloucestershire and Wiltshire, east Dorset and much of the West of England Partnership area around Bristol. Devon and Cornwall, including Torbay and Plymouth have significantly lower average household incomes, with pockets of high income in the commuter belt around Plymouth, for example. Bournemouth and Bristol also have relatively low average household incomes. 5.59 The highest rates of economic inactivity coincide with the patterns of higher deprivation and benefit claimants, as well as lower household incomes. These are particularly focused around the region’s larger settlements (Plymouth, Bristol, Exeter, Bournemouth), as well as throughout large parts of Cornwall and Devon. We have drawn some lines on this map to give a simple indication of how the region could be broken down into fairly distinctive zones based on these data. Natural environment 5.60 This section illustrates the natural environment of the region, and compares it with the value of tourism to illustrate the hypothesis that the natural assets of the region drive the tourist economy. 66 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-25: Map for ‘Natural environment’ theme, showing distribution of National Parks (dark green) and AONBs Key: Dark green = National Parks ; Light Green = AONBs 5.61 The map above shows national parks shaded in dark green and AONBs shaded in lighter green. The South West is renowned for its natural beauty, and contains two National Parks – shown above in dark green – Dartmoor and Exmoor. Large parts of the region are designated as Areas of Outstanding Natural Beauty (AONB), including the Cotswolds and much of the region’s coastline. The map below explores how these areas of natural beauty might impact on the tourist economy, by combining these layers with data on the value of tourism and concentration of employment in Distribution, Hotels & Catering. Tourism spend is represented by shading from dark pink (for highest levels of tourism spend), through light pink to yellow (lowest level of tourism spend). Areas with a high concentration of employment in Distribution, Hotels & Catering (more than 40%) are shaded in blue. Despite all of these layers using colours as a symbology, it is possible to make out patterns in the map below. 67 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-26: Map for ‘Natural environment’ theme, showing Value of Tourism (by county), concentrations of employment in the Distribution, Hotels & Restaurant sectors, and AONBs/National Parks Key: Counties shaded by value of tourism (Dark Pink = >£334m; Light Pink = £100m - £334m ; Yellow = <£100m ); AONBs and National Parks cross-hatched in green. Proportion of employees in Distribution, Hotels & Restaurants higher than 40 % shaded in Blue. 5.62 The upper-tier authorities with the highest value of tourism (above £334m annually) are focused in the west, with Cornwall, Devon and Dorset being joined by Bristol (city) and Gloucestershire in the north of the region. Authority areas with smaller tourism income include North Somerset, South Gloucestershire, Poole, Swindon and Plymouth. 5.63 There are clear correlations between the authorities with the highest value of tourism income and employment in the distribution, hotels and restaurants sectors (used here as a proxy for tourism). Clear clusters of employment intensity in these sectors are apparent in well-known holiday destinations, including both coasts of Cornwall, the south Devon coast (expanded as a local example below), Jurassic coast and the English Riviera around Torbay. Other clusters are apparent in the north of the region around the Cotswolds and Bristol/Bath. 5.64 Whilst Bristol is amongst the authorities with the highest value from its tourist industry, large parts of the region which are designated as Areas of Natural Beauty (AONB), including the Cotswolds and much of the region’s coastline, which can be seen to coincide with clustering of those sectors which best represent the tourist industry. Cornwall, one of the most deprived authorities, also has one of the highest value tourist industries in the region. 5.65 The map below shows a zoom into this map in the South Hams and South Devon area. 68 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-27: Map for ‘Natural environment’ theme, showing Value of Tourism (by county), concentrations of employment in the Distribution, Hotels & Restaurant sectors, and AONBs/National Parks (local example) Key: Counties shaded by value of tourism (Dark Pink = >£334m; Light Pink = £100m - £334m ; Yellow = <£100m ); AONBs and National Parks cross-hatched in green. Proportion of employees in Distribution, Hotels & Restaurants higher than 40 % shaded in Blue Transport infrastructure 5.66 This section presents some of the key transport infrastructure within the region, including main roads (motorways, A-roads) and rail. We overlay areas with poor access to two key services (GP and primary school) to illustrate any identifiable patterns at the level of the region. 69 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-28: Map for ‘Transport infrastructure’ theme, showing main roads (motorways and A-roads), rail and access to nearest GP and primary school Key: Transport: Motorway = blue ; A-roads = red ; Rail = thick dashed line. Access to services: grey (Access to nearest GP >1km = grey ; Access to nearest primary school = red) 5.67 The map shows that transport connections (with a focus on motorways, road and rail) are much denser in the east of the region. Nonetheless, there are still parts of the east of the region which have limited access to primary schools and GPs. In Devon and Cornwall, those areas with the poorest access to key services tend to be further away from the main road network. Housing 5.68 This section presents a map of one of the key housing indicators for the local economic assessment, housing affordability – a measure reflecting the ratio of house prices to average earnings. 70 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-29: Map for ‘Housing’ theme, showing housing affordability Key: Housing affordability: Pink = high (<7.5) ; Dark pink = medium (7.5 – 9) ; Red = low (9 – 11.2) 5.69 The map shows the 2009 lower quartile affordability ratio (SW Councils), with highest ratios (i.e. lowest affordability) shown in red, medium levels in dark pink, and lowest ratios (i.e. highest affordability) in light pink. The areas with the lowest affordability are throughout much of Devon, west and east Dorset, northwest Somerset and east Gloucestershire. This coincides with proximity to the national parks and several key AONBs, including the Cotswolds. ‘Place’ 5.70 This section examines some of the key aspects of ‘designation’ or formal allocations of particular areas which help to define ‘place’, including brownfield land, growth areas and eco-towns. We examine coincidence of brownfield land with growth areas, as well as key transport routes. 71 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-30: Map for ‘Place’ theme, showing Brownfield land, Growth Areas, SSCTs Key: Blue – Brownfield land; Brown – Growth areas; Red circles – SSCTs; Blue/Red Lines – Motorways / A-roads 5.71 The region has 21 SSCTs (red circles on this map). These are mostly in and around the designated ‘growth points’ (brown areas). 5.72 The map also shows (in blue) the locations of brownfield land designated for development. A broad spread of brownfield land exists across the South West, with heaviest concentrations in Cornwall, Somerset, and in the Growth Area around Bristol. Brownfield land tends to be clustered around the SSCTs, and/or Growth Areas. However, there appears to be a significant swathe of brownfield land throughout Dorset and Somerset which is neither within a SSCT or a Growth Point (except for Yeovil; 1), and a large part of northern Devon and Cornwall which has very little designated brownfield land (2). 5.73 Even more apparent is the clustering around major roads, providing easy access to these potential development areas. 5.74 The map below presents a local example, focused on mid-Cornwall. The clustering of brownfield land around Camborne, Pool and Redruth (CPR) is clear. The proposed Imerys Clay country eco-town development(s) is highlighted in green. 72 Functional Economic Market Areas and Economic Linkages in the South West Final Report Figure 5-31: Map for ‘Place’ theme, showing Brownfield land, Growth Areas, SSCTs, Eco-towns (local example) Key: Blue – Brownfield land; Brown – Growth areas; Red circles – SSCTs; Blue/Red Lines – Motorways / A-roads. Proposed eco-towns = Green. Analysis by Upper Tier Authority 5.75 To take the analysis to a lower geographical level, we have carried out a high-level review of the above themes for the sixteen upper tier authorities to identify some important messages that can be investigated further by local authorities using the Spatial Economic Analysis Tool to inform their LEAs. This is not meant to be a comprehensive assessment of each area, but suggests areas for further investigation. 73 Functional Economic Market Areas and Economic Linkages in the South West Final Report 5.76 This sub-region analysis has been carried out for several of the sample projects (or maps) provided on the DVD. When examining these maps, it is important to note that areas of apparently high levels of activity or concentration (e.g. covering large areas of the map) may simply reflect the different shapes/sizes of administrative geographies. In particular, the more rural areas tend to have low population densities, and so a single LSOA (Lower Super Output Area) 29 may cover a large surface area and appear to be over-represented visually on the map. When examining the maps below therefore, we have taken two factors into consideration which may be helpful for users when carrying out further analysis: • first, the maps have in general been drawn with boundaries removed between administrative areas for the data presented at lower level geographies (e.g. LSOAs), to show patterns more clearly. For analysis, we have turned on the boundaries (right-click the layer; select Properties; change ‘Outline’ for relevant layer and/or bands to be examined) so as to examine whether large areas covered represent one or more administrative areas • second, where clustering is less apparent, we have altered the thresholds for bandings to identify stronger patterns. Table 5-1: Sub-regional description of employment clusters for selected sectors of the economy Cornwall UA Structure of economy: Transport & Communication (>10% employment) Structure of economy: Public admin, education & health Structure of economy: Manufacturing (>20% employment) Structure of economy: Services (including Banking & Finance, and Other Services; each >25% employment) Structure of economy: Agriculture & Fishing (>5% employment) Transport focus around Liskeard (particularly to south), and between Truro and Redruth Strong public sector clusters around Truro, Camborne and Redruth with many LSOAs having >50% employment in the sector. Manufacturing accounts for >20% employment in parts of Cornwall, particularly at certain points around the A30 trunk road. Banking and finance clusters around Redruth and Truro, as well as to the east near Plymouth (e.g. Saltash). A bank of >5% employment in agriculture runs roughly north-south close to the A39 to the north of Truro. Also at Helston and Falmouth, Bodmin, St.Austell and Liskeard. Isles of Scilly UA 29 Transport & comms a major employer Functional linkages at Saltash & Torpoint with Plymouth. For example, in a band from Camelford to Launceston, to the south of Launceston and up into Devon, to the south and southwest of Bodmin, and between Falmouth & Redruth. No strong pattern No strong pattern Other services clustered around A30, including pockets at Bodmin and Launceston, as well as in the far southeast, between Liskeard and Plymouth. No strong pattern Another area of focus in the northeast of the Unitary, which appears functionally similar to much of northwest Devon. Agriculture accounts for more than 5% of employment across the Isles of Scilly. NB: LSOAs have between 1000 and 3000 people living in them with an average population of 1,500 people 74 Functional Economic Market Areas and Economic Linkages in the South West Final Report Devon County Structure of economy: Transport & Communication (>10% employment) Structure of economy: Public admin, education & health Structure of economy: Manufacturing (>20% employment) Structure of economy: Services (including Banking & Finance, and Other Services; each >25% employment) Structure of economy: Agriculture & Fishing (>5% employment) Clear M5 Transport corridor, from Exeter northeast past Tiverton into Somerset. Strong representation of this sector in the main towns and along the south coast in particular. There are higher proportions of employment in manufacturing around Plymouth to the north and east (and extending into Saltash in Cornwall), around Bideford and Barnstaple in the north, and in parts of Tiverton. There are also several manufacturing locations around the M5. A thin cluster of areas dependent on banking & finance appears to exist between Honiton in the southeast and Barnstaple in the northwest. Pockets of relatively heavy employment in agriculture in the northwest (west of Bideford, north of Okehampton); to the west and south of Exeter (towards Torbay); and in the rural areas around Honiton and Tiverton – stretching into Somerset. Eastern Exeter transport hub along A30 towards airport Functional linkages with Plymouth in surrounding LSOAs. Heavy clustering around Dawlish, Teignmouth & Newton Abbott in the south, and Bideford & Barnstaple in the north. Largest concentration of banking/finance employment in central Exeter and in a band to the immediate south of Exeter, with other small clusters further south (Exmouth and Budleigh Salterton). Another strong clustering in Exeter throughout the city, with particularly high proportions around the edges of the city centre. City of Plymouth UA Transport employment clustered around main roads (e.g. A379), and particularly ringing the city centre An extremely strong sector, supporting >50% employment across much of the city. Functional linkages to Saltash & Torpoint Manufacturing clusters apparent in the north of the city, stretching into surrounding parts of Devon. Banking & Finance sector is a major employer in parts of the centre of town, with other services well-represented in other parts of Plymouth. No strong pattern Torbay UA No strong pattern An extremely strong sector, supporting >50% employment across much of Torquay and Paignton. No strong pattern Parts of Torquay and Paignton support jobs in the banking & finance sector, with other services to the south of Paignton, running into Devon county. No strong pattern Dorset County Main transport around B’mouth intl airport As with many counties, a strong sector. Particular clusters around Dorchester, Weymouth and Portland in the south, and around Shaftesbury and Blandford Forum in the north. Parts of north Dorset (e.g. around Sherborne) may link functionally to the manufacturing clusters in South Somerset. Pockets of areas with high proportions of employment in Banking & Finance to the east of Dorchester, around Wimborne and in the Cranborne Chase. There is a band stretching west from Blandford Forum towards Beaminster and then south to the coast with strong representation of employment in agriculture Parts of eastern Dorset (e.g. around Wareham and Wimborne) may link to the manufacturing clusters in Poole. Another manufacturing cluster Other pockets in the east may be linked to Ringwood, and in Christchurch may be functionally linked to Bournemouth and Poole. 75 Functional Economic Market Areas and Economic Linkages in the South West Final Report Structure of economy: Transport & Communication (>10% employment) Structure of economy: Public admin, education & health Structure of economy: Manufacturing (>20% employment) Structure of economy: Services (including Banking & Finance, and Other Services; each >25% employment) Structure of economy: Agriculture & Fishing (>5% employment) is apparent in Christchurch. Bournemout h UA No strong pattern Significant sector throughout the authority, and strong linkage with Poole. No strong pattern Banking & Finance makes up more than 25% of employment for much of south Bournemouth. No strong pattern Poole UA Transport sector hub to north of town, along main roads Strong clustering of the sector around the town centre, and strong functional linkage with Bournemouth. Manufacturing cluster apparent in the northern fringe of town Banking & Finance makes up more than 25% of employment for several parts of the UA, in the south and around the edges of the urban area. No strong pattern Somerset County Transport hub around Shepton Mallet and north linked to B&NES. Heavy clustering in south and west Taunton. Other clusters apparent in Burnham on Sea, Bridgwater, Bruton and to the west of Yeovil. Significant clusters of manufacturing employment are apparent across the county – in the southwest between Taunton and Yeovil (including around Chard, Crewkerne and Ilminster); around the M5 corridor north of Bridgwater. Pockets of strong employment representation in the Banking & Finance sectors exist in Taunton, Burnham on Sea and Frome, and around the A303 at South Petherton and Martock. Agriculture employs >5% of the workforce across most of Exmoor and between Bridgwater and Wiveliscombe, possibly functionally similar to east Devon. M5 corridor: around Bridgwater & Taunton, southwards to Devon There is also a band stretching from Taunton to Shepton Mallet with strong representation of employment in agriculture. Other clusters in Wellington, around Bruton and around Frome (possibly linking functionally to MN-R in B&NES) Bath & North East Somerset UA Functional linkages with transport hub in Somerset in south (Paulton & Radstock) A strong sector in the east of the authority area, particularly in the north and southern fringes of Bath. Manufacturing clusters in the west of Bath, around Midsomer Norton & Radstock (possibly linking functionally to Frome), and Keynsham (possibly linking functionally to South Bristol). Banking & Finance make up >25% of employment across large parts of central Bath and to the south of the city, with other pockets in the rural area around Keynsham and in the far west of the authority. No strong pattern City of Bristol UA Around Avonmouth, part of M4/M5 Transport hub, linked to S.Gloucs and N. Somerset Large swathes of public sector employment across South Bristol and in the northern fringes into South Gloucestershire as well as in the east. Areas of high dependence on manufacturing employment in Avonmouth, around the M5, as well as parts of South and East Bristol. Most of central Bristol has >25% employment in the Finance & Banking sectors, extending to large parts of north Bristol and isolated parts of south Bristol. No strong pattern Also clusters around 76 Functional Economic Market Areas and Economic Linkages in the South West Final Report Structure of economy: Transport & Communication (>10% employment) Structure of economy: Public admin, education & health Structure of economy: Manufacturing (>20% employment) Structure of economy: Services (including Banking & Finance, and Other Services; each >25% employment) Structure of economy: Agriculture & Fishing (>5% employment) M32 and A38 North Somerset UA Clear M4/M5 Transport hub, linked to Bristol and S.Gloucs Clusters at Weston-s-Mare, Nailsea and Portishead. Clusters of manufacturing employment following much of the M5 corridor through the local authority, including around Portishead and Clevedon Clusters of banking & finance employment around Nailsea, Weston and Clevedon. Part of the banking & finance cluster in the authority area in the east may be linked functionally to Bristol. No strong pattern Swindon UA N.Swindon transport industry located around railway lines, to north and west of town centre, linked to east Wiltshire A cluster in the south and a cluster in the north of the city are apparent. Manufacturing clusters in the east and the far west of the borough. Banking & Finance is a major employment sector in the central and west of the town. No strong pattern Wiltshire UA Transport hub along railway in north: Bradford-ChippenhamWootton Bassett, perhaps linked to South Gloucestershire Particular focus in and around Trowbridge and Salisbury urban centres. Particular dependence on manufacturing in the western part of the county, for example around Westbury and Warminster, around Devizes and Melksham stretching to the east of Bradford-on-Avon. Strong clusters of employment in banking & finance in the north of the UA (e.g. around Chippenham); in Bradford-onAvon and to the west (which is likely to be functionally linked to B&NES); between Westbury and Frome (Somerset); in Salisbury and to the east (possibly functionally linked to parts of Hampshire). No strong pattern Also around Bulford and Larkhill. Also in west Salisbury along A36 South Gloucesters hire UA Clear M4/M5 Transport hub, linked to Bristol and N. Somerset South of the authority area has very similar levels of public sector employment to the north and east of Bristol. No strong pattern Particular clusters in Banking & Finance around Thornbury and to the south, in the northern fringe of Bristol and around Yate. No strong pattern Gloucesters hire Transport zone around River Severn and into Gloucester Strongest clusters around Cheltenham (esp to the west) and Gloucester (to the north and east). Other clustering around Stroud and Cirencester. Areas of relatively high dependence on manufacturing sector in and around M5 corridor, particularly to the south of Stroud, parts of Gloucester and Cheltenham. Also much of the north of the authority area, stretching northeast from Cheltenham, A band of strong employment in banking and finance exists between Gloucester and Cheltenham, continuing to the east. There is a band stretching to the east of Stroud with relatively strong representation of employment in agriculture (>5%). Other pockets exist around the edges of Stroud and in / around Cirencester. Other areas of strong employment in this sector in the north (e.g. around Stow on the Wold) may be functionally linked with 77 Functional Economic Market Areas and Economic Linkages in the South West Final Report Structure of economy: Transport & Communication (>10% employment) Structure of economy: Public admin, education & health Structure of economy: Manufacturing (>20% employment) Structure of economy: Services (including Banking & Finance, and Other Services; each >25% employment) possibly linking functionally with parts of Worcestershire. neighbouring authority areas. Structure of economy: Agriculture & Fishing (>5% employment) Source: SQW analysis using Spatial Economic Analysis Tool Table 5-2: Sub-regional description of other data layers Cornwall UA Enterprise & Innovation: IDBR unit size 0-4 (>80%; >90%); Knowledge economy Demography & Geography: % population of pension age; % population of working age; population growth; ave weekly household income Labour market / Demog & Geog: ave distance to work: Areas with highest proportions of micro-businesses include: the western tip of Cornwall, patches in the centre – mostly those furthest away from A-roads, and most of the eastern end of the UA, extending into western Devon. Parts of the UA have >90% - e.g. in Bodmin, north of Launceston and several LSOAs in CPR. Significant stretches of LSOAs with >30% population of pensionable age, particularly along the southern coast from Looe to the Lizard. A large part of east Cornwall has to travel more than 20km to work on average, as well as the far west. Pockets of knowledge economy clustering on outskirts of Truro, Falmouth and Redruth. Also at St. Austell and Wadebridge. Most of the area between Newquay & Bodmin, north to Wadebridge and south to St. Austell has very low levels of knowledge economy. Areas of highest population growth were around Helston and Redruth in the west, and central Cornwall including Bodmin and St. Austell. Highest weekly household income is in the southeast corner of Cornwall, linked to the Plymouth commuter belt extending into Devon. Most of the northeast of Cornwall, down as far as (but not including) Bodmin has high self-employment (>20%) and a high proportion of people (>25%) working from home. Isles of Scilly UA >80% of business units in Isles of Scilly have <4 employees; a high proportion of residents (>25%) are self-employed, and almost 1 in 4 work from home. Low levels of knowledge economy (<10%). Isles of Scilly lost population between 2001 - 2008. No strong pattern Devon County Devon contains a large proportion of the LSOAs in the region with >25% self-employment rates; particularly strong in the east (around Exmoor) and to the east of Honiton; parts of Dartmoor and south of Totnes. Lowest Most of the county experienced significant housing growth, particularly in and around Exeter, stretching down towards Torbay. Much of central and west Devon is similar to east Cornwall in demonstrating high average distances travelled to work. Highest weekly household incomes are found in the 78 Functional Economic Market Areas and Economic Linkages in the South West Final Report Enterprise & Innovation: IDBR unit size 0-4 (>80%; >90%); Knowledge economy Demography & Geography: % population of pension age; % population of working age; population growth; ave weekly household income levels of self-employment in LSOAs in central and outskirts of Exeter. commuter belt surrounding Plymouth, and to the SE of Exeter. The lowest incomes are along much of the southern coast (functionally linked to Torbay), as well as most of the northern half of Devon. This pattern mostly coincides with levels of homeworking; large parts of the county are characterised by high proportions (>20%) of people working from home (particularly north of Dartmoor and up to Exmoor). Several parts of Exeter, and several LSOAs around Newton Abbott and Kingsteinton have > 90% micro businesses. Labour market / Demog & Geog: ave distance to work: The south coast also displays a dominance of pensioners (>30% of the population), as well as the area around Bideford in the north and in east Devon extending northwards into Exmoor. City of Plymouth UA Low levels of self-employment throughout Plymouth, with lowest levels around perimeter of city centre. Several LSOAs in the north and east of the urban area with >90% of the business stocks micro-businesses; both similar to levels at the edge of Saltash in Cornwall. Plymouth is typified by a high proportion of working-age population, and particularly in the city centre, low average weekly household incomes for most of the city, as well as high rates of population growth. No strong pattern Torbay UA Although the area is characterised by very low levels of home-working (mostly <10%), in much of the area around and between Paignton and Taunton >80% of businesses are micro-enterprises. Torbay experienced significant population growth (>10%) across much of the urban parts of the UA from 2001-08, a pattern which extends beyond Torbay up to Exeter. No strong pattern Pockets of knowledge economy concentration (>10% of businesses) to the west and south of Paignton – linking with an area in Devon to the east of Totnes. Dorset County Several pockets of knowledge economy activity in the east, potentially linked to Poole and Bournemouth. High proportions of home-working (>25%) in the far west of the county, linking to areas with similarly high rates in east Devon. Similarly, high levels of self-employment (>20%) in the far west, and in the north around Gillingham, linking with parts of rural east Somerset. Torbay has amongst relatively low household incomes, similar to much of the rest of the south Devon coast. East Dorset and Christchurch experienced higher rates of population growth, perhaps linked to proximity to Poole and Bournemouth. No strong pattern Dorset has high proportions of pensioners in the far west (linked to Devon), in the north (bordering Somerset) particularly around Sherborne, around Swanage and in the far east of the county (linked to Hants). Most of the west of the county, extending to the north and west of Dorchester, has >80% micro-enterprises. Bournemout h UA Large parts of Bournemouth with >80% micro-businesses, several parts in the north with >90%. Knowledge Bournemouth and Poole are both typified by large areas of low average household income; both gained population No strong pattern 79 Functional Economic Market Areas and Economic Linkages in the South West Final Report Enterprise & Innovation: IDBR unit size 0-4 (>80%; >90%); Knowledge economy Demography & Geography: % population of pension age; % population of working age; population growth; ave weekly household income economy clusters (>10% of businesses) around edge of town, no particular link apparent to HEI. around the town centres, but lost population at the outskirts of town. Concentrations of older population along the coast. Poole UA Large parts of Poole with >80% micro-businesses, several parts with >90%. Most of the urban area has very low proportions (<8%) working from home. Bournemouth and Poole are both typified by large areas of low average household income; both gained population around the town centres, but lost population at the outskirts of town. Concentrations of older population along the coast. No strong pattern Somerset County High levels of self-employment in rural west, from Bridgwater to Exmoor – extending into Devon; also in the far east around Shepton Mallet and to the south of Frome. These areas are closely matched by patterns of high levels of home-working. Low levels of both indicators clustered around Yeovil, Bridgwater and Taunton. Lowest weekly household incomes are found in the far west of the county, around Exmoor, similar to low incomes in east Devon. Highest average distances travelled to work are in the west and into Exmoor. There is a cluster of high proportion (>90%) of microbusinesses around Yeovil. Bath & North East Somerset UA Highest rates of population growth 2001-08 were found on the Devon boundary, in a zone along the A37 and in several settlements: notably Taunton, Wells and Frome (and not Yeovil, despite it being a SSCT). Somerset has concentrations of pensioners towards the Dorset boundary, surrounding Taunton and then in the north coast on Bridgwater Bay. Low levels of home working, with particularly low levels (<8%) in SW Bath and in MN-R. A high proportion of pensioners to the east of Bath, linking to Bradford on Avon in Wiltshire. Knowledge economy focused in the north of the UA: particularly pockets throughout Bath. High rates of population growth throughout much of the UA, in line with the rest of the West of England authorities, particularly around MN-R and Bath; some population loss close to Keynsham. A band of high proportion of micro-enterprises (>90%) in the south of Bath. Labour market / Demog & Geog: ave distance to work: No strong pattern Highest average weekly incomes are found around the perimeter of the UA. City of Bristol UA Knowledge economy focus in centre and north of City (with small pockets in South Bristol). Clustered concentration of micro-enterprises (>90%) across South Bristol and to the immediate northwest of the city centre. Low levels of home working, and very low levels (<5%) of High proportion of working-age population; high rates of population growth throughout much of the UA – particularly around the edge of the city – in line with the rest of the West of England authorities; some population loss in South Bristol. No strong pattern Average weekly household incomes; high average 80 Functional Economic Market Areas and Economic Linkages in the South West Final Report North Somerset UA Swindon UA Enterprise & Innovation: IDBR unit size 0-4 (>80%; >90%); Knowledge economy Demography & Geography: % population of pension age; % population of working age; population growth; ave weekly household income self-employment in city centre, and throughout much of South Bristol, Avonmouth and the far north of the authority area. incomes around Redland and north of the city. Low levels of home working. Very low levels of home working and of self-employment in eastern edge of Weston. High proportions of pensioners on the Somerset boundary (and Weston) and on the Bristol boundary. High proportions of micro-enterprises (>90%) in Portishead and Clevedon. High rates of population growth throughout much of the UA, in line with the rest of the West of England authorities. Pockets of knowledge economy north of Nailsea and around Weston-s-M and Clevedon. High weekly income across most of the UA, with the exception of Weston-s-M and Clevedon. Very low levels of working from home throughout urban area, and of self-employment for much of the urban area. Large parts of Swindon experienced population loss over 2001-08. There is a cluster of LSOAs with a high % of pensioners in the south of the town. Knowledge economy focused in southern edge of town, perhaps linked to the Bath-Swindon band of activity through Wiltshire. Wiltshire UA Very low levels of self-employment around the camps in the east Salisbury Plain, and around Warminster. Pockets of very high proportions (>90%) of microenterprise on the outskirts of some settlements, including Trowbridge, Warminster, Chippenham, Melksham and Devizes and Salisbury. High levels (>10% of businesses) of knowledge economy along western edge of the UA, linking with Hampshire, as well as in a band between Bath and Swindon, and in the north linking into Gloucestershire. South Gloucesters hire UA Areas of high proportion of knowledge economy in centre of UA, extending into Gloucestershire in the east. Low levels of home working. Labour market / Demog & Geog: ave distance to work: No strong pattern No strong pattern Low average household income in Swindon itself, is untypical of the surrounding areas. Low levels of working age population in the southwest, bordering Dorset, coinciding with high proportions of pensioners. Much of Wiltshire has a long average commute to work (>20km), with the obvious exception of the Garrison towns. Highest rates of population growth in the north of the county, and a large portion of the county demonstrates a high average household income, in line with the rest of the east of the region and into the southeast. Northern fringe also has a high proportion of working-age population, and there is a higher proportion throughout much of the UA compared with B&NES and North Somerset. Parts of the northern fringe of Bristol demonstrate low average distance to work (<10km), along with much of Bristol. Highest rates of population growth around the M5 corridor. 81 Functional Economic Market Areas and Economic Linkages in the South West Final Report Enterprise & Innovation: IDBR unit size 0-4 (>80%; >90%); Knowledge economy Demography & Geography: % population of pension age; % population of working age; population growth; ave weekly household income Labour market / Demog & Geog: ave distance to work: High weekly income across most of the UA, with lower incomes towards Bristol. Gloucesters hire High levels of self-employment in the east of the county (across much of the Cotswolds). Band of knowledge economy activity between Gloucester and Cheltenham (extending further to the east), and another concentration in the south of the county, from Stroud and Cirencester southwards, extending into South Gloucs and north Wiltshire. High average weekly incomes across much of the south and east of the county, with lowest incomes between Gloucester and Cheltenham. Cotswolds in the east and the south of the county have high average distances to work (>20km). High proportions of pensioners between Cheltenham and Gloucester, to the east of Cheltenham and to the north and south of Stroud. No areas of concentrated home-working (>25%) Source: SQW analysis using Spatial Economic Analysis Tool Table 5-3: Sub-regional description of other data layers Cornwall UA Skills: GCSE scores; those with no qualifications; NVQ3+; NVQ4+ Economic inclusion: economic inactivity; claimant counts; deprivation score (IMD) Housing: Median house price; affordability ratio Cornwall has an average of 10.5% of its population with no qualifications, one of the highest in the region; this is similar to neighbouring Plymouth (10.2%) and Torridge (16.7%). Cornwall has an average of over 20% of the workforce economically inactive – in the highest bracket, a pattern which extends eastwards into Torridge and Plymouth; claimant counts are also amongst the highest in the region. With a median house price of £177k, Cornwall has an average housing affordability ratio. Much of the northeast of Cornwall has amongst the lowest GCSE scores (<675), similar to west Devon. Torpoint in the southeast is also very similar in this sense to Plymouth. Camborne/ Redruth also has clusters of low scores. Many of the highest average scores (>800) are clustered in and around Truro and parts of Falmouth. Cornwall exhibits the highest concentration of the most deprived LSOAs in the region, particularly in the far west and in the northeast of the region, spreading over into northwest Devon. The least deprived area is in the southeast, on the edges of Saltash and Torpoint, similar to other parts at the edges of Plymouth. Isles of Scilly UA Isles of Scilly has low GCSE scores, an average score of 668 No strong pattern No data available Devon Torridge district has an average of 16.7% of its population The districts with the highest level of economic inactivity Most of the southern half of Devon (except Teignbridge 82 Functional Economic Market Areas and Economic Linkages in the South West Final Report County Skills: GCSE scores; those with no qualifications; NVQ3+; NVQ4+ Economic inclusion: economic inactivity; claimant counts; deprivation score (IMD) Housing: Median house price; affordability ratio with no qualifications, the highest in the region; this is similar to Plymouth (10.2%) and Cornwall (10.1%). (>20%) are Torridge and Exeter; this is similar to Cornwall and Plymouth to the west, Torbay and West Somerset to the east. Mid Devon by contrast has a relatively low rate of economic inactivity, under 16%. and the two UAs) are amongst the most expensive districts for house prices regionally. West Devon has the lowest GCSE scores, which appears to link it with east Cornwall. Low average scores are also found on the north coast and throughout Exeter and Newton Abbott, and parts of Exmouth. Some of the highest GCSE scores (>800) are found in the southeast of the county (south of Honiton and around Ottery), linking with those found in nearby Dorset and Somerset. The highest skilled district is South Hams, with over a third (35.6%) having NVQ4+; both South Hams and neighbouring Teignbridge and Exeter have >50% with NVQ3+. Claimant count rates are average to low across the county, with the lowest in South Hams, and then central Devon from West Devon to Mid Devon and East Devon (extending eastwards to South Somerset and West Dorset). Much of Devon is in the top bracket for affordability (i.e. least affordable houses). Only Mid-Devon is in the most affordable bracket and Teignbridge, as with neighbouring Torbay, has an average housing affordability ratio. South Hams, Torridge, West Devon and East Devon are all in the top bracket. The highest levels of deprivation are found in the north and west of the county, notably around Barnstaple, Bideford and Ilfracombe, and bordering Somerset / Exmoor in the northwest of the county, as well as much of Dartmoor and west of Okehampton to the Cornwall boundary. Pockets of LSOAs with the lowest deprivation scores are found in the south of the county, notably to the southeast of Plymouth, to the immediate north and east of Exeter, to the south of Newton Abbott, and around Exmouth (to the north), Sidmouth and Ottery. City of Plymouth UA Torbay UA Plymouth has a high proportion of LSOAs with low average GCSE scores, but several in the outskirts with scores of over 800, similar to nearby parts of Devon (e.g. Ivybridge). Plymouth has a high level of economic inactivity (over 20%), similar to Cornwall and Torbay, and claimant counts are also amongst the highest in the region. No strong pattern Torbay has a high level of economic inactivity (over 20%), similar to Plymouth and Exeter, and has the highest rate of claimant counts in the region. Plymouth UA is in the most affordable bracket. A ring of high levels of deprivation circles the city, with pockets of the lowest levels appearing in the north of the city and the far southeast (extending into Devon). Torbay, as with neighbouring Teignbridge has an average housing affordability ratio. Areas of high deprivation are clustered in the urban areas of Paignton, Brixham and Torquay. Dorset County West and North Dorset have the highest skilled adults (>50+ with NVQ3+); West Dorset also has a high proportion (>10%) with no qualification, similar to much of Weymouth & Portland district and East Dorset both have a high level of economic inactivity (over 20%), whilst Purbeck has one of the lowest levels in the region North Dorset, as with neighbouring Purbeck and Wiltshire – as well as Poole and Bournemouth – has an average housing affordability ratio. 83 Functional Economic Market Areas and Economic Linkages in the South West Final Report Skills: GCSE scores; those with no qualifications; NVQ3+; NVQ4+ Economic inclusion: economic inactivity; claimant counts; deprivation score (IMD) Housing: Median house price; affordability ratio Somerset. (14.5%). However, whilst Weymouth & Portland has some of the highest claimant counts in the region, East Dorset has one of the lowest (along with most of the rest of the county further north and west). East Dorset has the highest affordability ratio (least affordable housing compared to average salaries). Dorset has few areas with high levels of multiple deprivation. Those that exist are predominantly in the south of the county, around Bridport, Abbotsbury, Lulworth and Weymouth. Areas with the lowest levels of deprivation are in the east of the county, notably around Wimborne and extending south into Poole. Bournemout h UA Bournemouth has a high level of economic inactivity (over 20%), similar to East Dorset, and claimant counts are amongst the highest in the region. Various clusters of areas with relatively high deprivation exist in the far north of the authority and along much of the seafront and main town area. Poole and Bournemouth have an average housing affordability ratio. Poole UA Poole has relatively high (11.4%) of population with no qualifications. Claimant counts in Poole are amongst the highest in the region. The north of the UA has low levels of deprivation (extending north into Dorset) and around Parkstone and Branksome Park. The highest levels of deprivation are scattered across the centre of the authority. Poole and Bournemouth have an average housing affordability ratio Somerset County South Somerset, West Somerset and Sedgemoor have relatively high (>10%) proportions of population with no qualifications. West Somerset district has the highest level of economic inactivity in the region (25.7%). However, the highest level of claimant counts are in Sedgemoor, whilst South Somerset has the amongst the lowest levels in the region (extending to North and West Dorset and into Devon). West Somerset, including Exmoor, has one of the highest (least affordable) affordability ratios Areas of the highest deprivation are clustered in the northwest of the county, around Bridgwater Bay and Exmoor (extending into mid-east Devon). Other pockets are found around Bridgwater, Taunton, Highbridge, Burnham-on-Sea and Glastonbury. Sedgemoor and South Somerset, linking to North Somerset UA, have one of the most affordable housing affordability ratios. Mendip, as with neighbouring B&NES and North Dorset has an average housing affordability ratio. Areas with the lowest deprivation are found in the north (bordering North Somerset), in the middle and south (along parts of the A303), and on the edges of Bruton, Bridgwater and Taunton. 84 Functional Economic Market Areas and Economic Linkages in the South West Final Report Skills: GCSE scores; those with no qualifications; NVQ3+; NVQ4+ Economic inclusion: economic inactivity; claimant counts; deprivation score (IMD) Housing: Median house price; affordability ratio Bath & North East Somerset UA >50% of population has NVQ3+ , as with other parts of the West of England area (except South Gloucs); and the UA has <10% with no qualifications, as with other parts of the West of England area (except Bristol). B&NES has a high level of economic inactivity (over 20%), similar to Bristol, but some of the lowest claimant counts in the region. B&NES, as with neighbouring Mendip, and Wiltshire has an average housing affordability ratio. City of Bristol UA >50% of population has NVQ3+, as with other parts of the West of England area (except South Gloucs). Bristol has a high level of economic inactivity (over 20%), similar to B&NES, and one of the highest rates of claimant counts in the region. Bristol has relatively high (11.6%) of population with no qualifications. Much of the UA has relatively low levels of deprivation, particularly in the east (extending into Wiltshire) and west (into North Somerset and Somerset). The highest levels of deprivation are found in Bath (central and to the southwest at Twerton). Bristol, as with South Gloucs and North Somerset has one of the most affordable housing affordability ratios. Much of the authority exhibits high levels of deprivation, much like Cornwall, with particular concentrations in south and east Bristol and in Avonmouth. Pockets of low levels of deprivation exist to the north of the city around Clifton and Redland and further north. North Somerset UA >50% of population has NVQ3+, as with other parts of the West of England area (except South Gloucs) ; and the UA has <10% with no qualifications, as with other parts of the West of England area (except Bristol). Low levels of deprivation in the east extend into B&NES and Somerset, whilst other areas of low deprivation are found around Nailsea, Clevedon and Portishead. Most of Weston-s-Mare exhibits high levels of multiple deprivation. North Somerset, as with neighbouring Bristol and Sedgemoor / South Somerset (Somerset) has one of the most affordable housing affordability ratios Swindon UA The UA has an average of <10% of its population with no qualifications. Low GCSE scores apparent in the town centre, with better scores outside town. Swindon has some of the lowest rates of economic inactivity in the region (<16%), similar to most of Gloucestershire, but conversely some of the highest claimant counts. Swindon UA is in the most affordable bracket The east of the authority has relatively low levels of deprivation, whilst large parts of the urban area – particularly in the south and west – exhibit relatively high levels of deprivation. Wiltshire UA The UA has an average of <10% of its population with no qualifications. High GCSE scores (>800) are concentrated in LSOAs in the southeast, east of Salisbury, bordering the SE region, and in the far north bordering Gloucestershire. Much of the county is amongst the least deprived areas in the region. Pockets of high levels of deprivation exist in Salisbury, Devizes, Melksham, Trowbridge and Chippenham. The areas with least deprivation border on Gloucestershire to the north, B&NES to the west and Wiltshire, as with neighbouring Mendip, B&NES and North Dorset has an average housing affordability ratio 85 Functional Economic Market Areas and Economic Linkages in the South West Final Report Skills: GCSE scores; those with no qualifications; NVQ3+; NVQ4+ Economic inclusion: economic inactivity; claimant counts; deprivation score (IMD) Housing: Median house price; affordability ratio Hampshire to the east. South Gloucesters hire UA Gloucesters hire Relatively low skilled (just 46.1% of population with NVQ3+); but the UA has <10% with no qualifications, as with other parts of the West of England area (except Bristol). South Gloucestershire has some of the lowest rates of economic inactivity in the region (<16%), similar to most of Gloucestershire. Higher skills (>50% with NVQ3+) in east of the county. Just Gloucester has >10% of its population with no qualifications. Forest of Dean district in the west has a high level of economic inactivity (over 20%), whilst the rest of the county (excluding Gloucester) has some of the lowest rates in the region (<16%). Good GCSE results (>800) to the south of Stroud and towards the Wiltshire boundary, between Cirencester and Cheltenham and in Cheltenham itself. The highest claimant counts are in the west (Forest of Dean) as well as Cheltenham and Gloucester, whilst the lowest are in the Cotswolds. South Gloucestershire, as with neighbouring Bristol and western Gloucestershire has one of the most affordable housing affordability ratios. The authority is characterised by low levels of deprivation throughout with small pockets of high deprivation around the northern fringe of Bristol and Kingswood. Gloucestershire is divided roughly in two. The east is amongst the least affordable in the region, whilst the west is amongst the most affordable. Indeed, Cotswolds district has the highest median house price in the region (£260k). Most of the county has average levels of deprivation, with pockets of high deprivation around the urban areas of Stroud, Cheltenham and Gloucester (as well as Coleford and Cinderford in the west). Source: SQW analysis using Spatial Economic Analysis Tool 86 Functional Economic Market Areas and Economic Linkages in the South West Final Report 6: Future influences on Functional Economic Market Areas Introduction 6.1 This chapter provides high-level advice on how FEMAs and other linkages are developing over time 30. The section draws on research undertaken in 2004 on potential scenarios for the South West to 2026 31, on recent socio-economic trends in the South West as set out in the State of the South West report 32 and on the inputs of stakeholders consulted as part of the project. Drivers of change 6.2 Considering the future of social, economic and political systems is uncertain, particularly today with major areas of uncertainty around the economy, the pace and path of any recovery from recession and with the future of public finances, with major cuts in government spending to be announced to reduce the national debt. The South West Scenarios 2026 study commented that little can be said with certainty about the ways in which societies will develop. Consequently, considering the future of FEMAs is fraught with uncertainty. 6.3 The scenarios research was undertaken to stimulate thinking about the future of the region. The research was completed to consider forces of change in the region and plausible scenarios to 2026 for imaging the future. The research included a comprehensive future research programme across five themes – society, technology, economy, environment and politics. The conclusion from this programme was that there is likely to be a continuation and intensification of existing trends. A summary of some of the key drivers of change identified in this research is provided in the table below. Table 6-1: Summary of forces of change in South West Scenarios 2026 research Forces for change Description Economy • Expansion of new economy – particularly knowledge based economy • Globalisation – closer integration in world and the world economy. Recent consequences have included off-shoring of production and services, increase in labour market movement, increased mobility in capital, increased competition • Ageing population • Increased inequality – view that income inequalities will increase. In part because of further skill-biased technological changes resulting from the expected growth in knowledge based economy and freer markets forcing down wages for low-skilled • Warming climate – global temperatures expected to increase by between 1 and 3.5 degrees Celsius by 2100. • Impacts are hard to predict – but expected to include rising sea levels, increase in Demography Climate change 30 This has been written in June 2010 at a time of change in the political and economic landscape of the UK. There has recently been a change in central government and significant cuts in public spending are taking place. At the time of writing the implications of these changes are not fully known. 31 Centre for Future Studies, 2004, South West Scenarios 2026 32 South West Observatory, 2010, State of the South West 2010 87 Functional Economic Market Areas and Economic Linkages in the South West Final Report Forces for change Description extreme weather conditions, changes in crops and wildlife habitats • Increase in oil prices • Energy security – reduce dependence on importing energy • Increased social freedom – view that barriers between groups in society are being broken down • Individualised values – view that people’s values are harder to define e.g. Political allegiance, stance on important issues • Communities based on choice – greater freedom for people to choose which communities they belong to. People becoming less likely to base their sense of belonging on where they live or on the extended family Business • Dispersal or concentration – view that expected trend for growth in knowledge based economy may result in people and business needing more not less proximity Technology • Technological advancements – difficult to predict due to the pace of recent technological changes. But could include further advancements in communication devises, internet advancements, remote sensing (e.g. monitoring elderly in home) Energy Attitudes and values Source: SQW Consulting analysis of Centre for Future Studies, 2004, South West Scenarios 2026 State of the South West 6.4 This section discusses some of the recent past trends in issues relevant to understanding the future of FEMAs in the region. The table below summarises some of the past trends as set out in the State of the South West report and regional policy. This list is not meant to be exhaustive but to identify key issues. Table 6-2: Recent trends in South West performance Theme Past trend/ performance Economy South West has performed well in terms of real growth in economic output – output and output per head of population has doubled in the past 25 years Structural changes to economy – decline of manufacturing and growth in health, retailing, education and services Relatively low engagement of businesses in international trade The larger cities have tended to be the main engines for the regional economy (RES) Impacts of the economic recession have been felt severely in some of the region’s key economic centres, including Swindon, Bournemouth and Bristol, with strong contraction in manufacturing, construction and related business services in 2008 and 2009 Major intra-regional differences across a range of economic performance indicators between the north and east of the region (strong) and the south and west of the region (weaker). The north east of the region is better positioned, benefiting from a higher concentration of more productive industries, a more highly skilled workforce and higher average earnings than the south and west of the region. Distance to markets is a major barrier for the western parts of the region View that businesses in the north and east of the region are more influenced by the competitive pressures of the region’s neighbours than the more isolated south and west Labour market High rates of part-time employment, particularly in rural areas Relatively high regional economic activity - 82% of residents economically active. However, 33 Cornwall (72.9%), Plymouth (73.2%) and Torbay (73.4%) are below the national average. The region is comparatively well-qualified - 30% of working age economically active residents have at least a degree level qualification, the highest outside London and the 33 As set out in Hardwick, S., 2010, State of the South West 88 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Past trend/ performance South East Skill shortages in some areas – particularly skilled trade occupations and machine operatives Bristol, Exeter, Swindon and Plymouth within the top 20% of district and unitary authorities in England with the highest proportions of working age population Demography Population growing faster than the English rate Greater proportion of inhabitants of pensionable age than any other English region, with a steadily increasing number of retirees and older people moving into the region, and a net outflow of young people aged 16 to 24 Population growth from inward migration, largely from residents from London and the South East, but also from the North and the Midlands Housing Strong demand for new housing, particularly from single-person households (62% of demand to 2026) and the elderly. One in three households in 2031 expected to be headed by person aged 65+ High rates of second home ownership - 2% of the South West housing stock compared to 1% in England Significant challenges in affordability of housing, especially in some coastal and rural areas Transport Relatively high dependency on private car transportation Increase in congestion Draft RSS states compared to other regions, the South West has the lowest proportion of households within a 13 minute walk of an hourly bus service (83% in 2007/8). The region is travel intensive – with the average person travelling distances ten per cent in excess of the national average. Prosperity South West consistently scores well on measures of wellbeing which include environmental and social factors But significant and persistent pockets of deprivation remain Tourism Second most popular tourist destination after London Climate change Draft RSS states that global warming in the South West has resulted in an increase of the o average daily temperature in the region by almost 1.4 C between 1961 and 2006 79,000 properties at serious risk of flooding from rivers or the sea in the South West – concentred in Devon/ Cornwall and Somerset/ Dorset/ Wiltshire and South Gloucestershire Carbon dioxide emitters – business & commerce 38%, domestic sector 30% and transport 31% (excluding aviation) By 2080 inland flooding is expected to increase by four to six times Urban and rural Increase in attractiveness of large urban areas as centres for investment (RES) Ongoing structural changes in rural areas with decline of traditional industries Dispersed population raises challenges for the delivery of services and access to services for parts of the population in rural areas Source: SQW Consulting analysis of State of South West report unless otherwise stated Stakeholders perceptions on influences on Functional Economic Market Areas 6.5 The consultation programme explored stakeholders’ views on how FEMAs have changed in recent years and perceptions on how they may change in the future. The table below provides a summary of the findings of the consultations. 89 Functional Economic Market Areas and Economic Linkages in the South West Final Report Table 6-3: Recent and future influences on FEMAs Themes Recent influences on FEMAs Future influences on FEMAs Economy/ sectors • Spread of knowledge intensive industries • Trends expected to continue • Increased sector specialism • • Parts of regional economy have suffered from manufacturing decline Location of growing/ competitive sectors e.g. knowledge based economy • Effort to develop creative industries, knowledge intensive sector and services Increased concentration of employment in key centres • Changes to tourism – increase in demand for active holidays/ extreme sports • Future of agri industry and rural economy • Role of Further Education and Higher Education in education provision e.g. location of colleges, take-up of further education, specialism • Continuation of ageing population • Research & Education Demography Labour markets Housing Transport & infrastructure • Congestion on key road routes • Pull of economic centres and markets in South East and London • Increased role for research organisations in economy e.g. links between Higher Education Institutions and science parks, innovation centres • Increase in students • More complex travel to learning flows • Ageing population • Increased leisure time e.g. increased travelling, shopping • Increase in inequality • Increased demand for professional and service based occupations • TTWAs are getting bigger as people travel more and over longer distances • Increased intensity in commuting patterns • Some evidence of increased home working but may not fundamentally change patterns • • Rising house prices – forcing people to access jobs further afield ? • Housing affordability • Transport links influence on economic development e.g. M5 Corridor zone, Dorchester – Weymouth road links • New transport investment e.g. in West of England, Devon relief road, Weymouth relief road • Growth in importance of transport gateways as people travel more often and further • High capacity broadband a major constraint in areas with poor coverage • Impact of increased broadband coverage/ take-up e.g. on retailing, TTWAs, less dispersed employment, access to services • Recent increases in employment land may encourage alternate sectors • Major development proposals – Bristol Deep Sea Port, Exeter East, Westonsuper-Mare regeneration ¾ Land use e.g. location of airports, docks/ferry ports, motorways and rail access points • Large retail developments – Bristol Broadmead, Cabot Circus, Cardiff Bay, Gloucester Key • Pressures on availability of employment land in face of housing demand • Shortage of quality employment space to meet business needs ¾ • Will change absolute demand and pattern of demand for services for elderly population Trend for increased commuting distance likely to continue ¾ Long distance daily commuting may become unsustainable because of expected fuel price increases and environmental considerations Home working expected to increase (as energy prices increase and broadband infrastructure improves) 90 Functional Economic Market Areas and Economic Linkages in the South West Final Report Themes Recent influences on FEMAs Future influences on FEMAs Administrative areas • • Uncertainty about future role of RDA • Increased sub-regional role e.g. delivery of services • Potential employment losses • Over-dependence in parts of the region on public sector employment • Relocation of public sector staff out of London • Risks on public sector projects • Changes to service patterns • Trends to continue • Increased economic opportunities in low carbon economy • Increased risk of flooding • Potential impact of rising energy prices on spatial patterns e.g. TTWAs • Increased public investment to support low carbon economy Political geography influences on joint working Public finances/ expenditure Globalisation • Supply chains more global • Off-shoring • Rise in the internet & internet shopping Climate change Source: SQW Consulting 6.6 A wide range of factors was identified as having influenced FEMAs in recent years. Of most importance was the growth of the knowledge based economy, the influence of transport on economic development and commuting habits, with people travelling more often and over longer distances. Despite the long list of influences on FEMAs, there was also recognition that FEMAs change relatively slowly. A number of stakeholders said recent patterns, for example in commuting, had tended to reinforce existing patterns. Weston-super-Mare was offered as an example of a place where the FEMA has changed but over a long period, with the town now seen as being part of the Bristol TTWA. 6.7 Stakeholders also expressed views on how they expected FEMAs to change in the future. A number of trends were expected to continue, although the influence of climate change was noted in relation to a number of areas. The table includes some potentially contradictory trends, which may reinforce existing trends (e.g. commuting trends continuing) or challenge the spatial structure (e.g. increase in home working from spike in energy prices). Examples of future drivers of change and their implications 6.8 In the table below we draw out some examples of the key drivers of change identified in the sections above and suggest how they may influence FEMAs in the future 34. The table is not meant to be predictive about what may happen, but highlights the possible implications of 34 With the caveat that at the time of writing there is rapid change in the socio-economic policy context at national and sub-national levels, and the extent of these changes and their implications are not known. However, it is likely that the need for evidence will remain strong and the Spatial Economic Analysis Tool for the South West will be an important part of the evidence base in the future. 91 Functional Economic Market Areas and Economic Linkages in the South West Final Report some examples of the key drivers of change. The purpose of this analysis is to suggest themes that should be monitored when the boundaries of FEMAs are being considered in the future. It should be noted that some of the trends and implications contradict each other – but this is the nature of future gazing. Table 6-4: Examples of key drivers of change and their implications for FEMAs Driver of change Possible implication for FEMAs Growth of the knowledge economy Could lead to increase in size of FEMAs in knowledge economy intensive areas as population grows in response to economic opportunities. Could lead to strengthening of FEMAs in these areas as knowledge-intensive economies become more robust. Structural changes to economy – decline of manufacturing and growth in health, retailing, education and services Changes in activity and employment in key sectors of the economy will lead to the re-shaping of FEMA boundaries, with contraction and weakening in those FEMAs based on declining industries, and growth and strengthening in those FEMAs based on growing industries. Improved ICT infrastructure and connectivity Opposing predictions have been made about whether greater knowledge intensity and greater ICT connectivity will lead to a lesser need for face-toface contact to conduct business in the future, or this will remain as important as it is today. Clearly these opposing patterns will have different impacts on the shape and size of FEMAs in the future. Whilst opposing, these patterns are not necessarily contradictory as the way in which business is conducted may change, to incorporate both more remote working, combined with regular face-to-face working. This could make FEMAs larger but weaker. In the non-business realm improved ICT connectivity may weaken FEMAs as people participate in leisure activities and retail remotely and so do not need to be located in close proximity to such facilities. Increasing congestion on key transport routes Could lead to a reduction in long-distance commuting and the growth and strengthening of FEMAs with high employment concentrations. Could lead to greater reliance on public transport, hence the evolution of FEMAs to better map to public transport infrastructure. Could lead to more home-working, hence weakening of FEMAs characterised by strong employment centres. Climate change Higher risks in certain areas (e.g. coastal areas) may lead to population contraction and consequential shrinkage of FEMAs Increased energy costs Could lead to greater reliance on public transport, hence the evolution of FEMAs to better map to public transport infrastructure. Could lead to greater home-working, hence breakdown of commuting relationships to urban areas, and consequential contraction or re-shaping of FEMAs. Steadily increasing number of retirees and older people moving into the region, and a net outflow of young people aged 16 to 24 Relative importance of the drivers of FEMAs likely to change, with functions such as healthcare and retail becoming more important in defining FEMAs in areas with high concentrations of retired residents. FEMAs covering areas which are attractive to retirees may grow and strengthen. 92 Functional Economic Market Areas and Economic Linkages in the South West Final Report Annex A: Methodology Figure 6-1: Project methodology I: Induction Meeting Phase 1: Background & Preparation Phase 2: Understanding Stakeholders’ Requirements Phase 3: Delivering a System II: Literature & Data Review III: Understanding Local/ Regional Requirements IV: Defining the System V: Data Collection VI: Modelling & Analysis VII: Reporting & Delivery Phase 1: Background and Preparation Task I: Induction Meeting A.1 An induction meeting with the project steering group was completed, to confirm the scope of the work, and amendments to SQW’s original proposal. The discussion at the induction meeting was formalised in a Project Initiation Document. Task II: Literature and Data Review A.2 We collected literature and data on FEMAs in the South West. The research has involved a literature review of previous regional analysis of economic links and functional geographies. Previous work on functional economic geography in the South West is discussed in Chapter Three of the main report and Annex B. A-1 Functional Economic Market Areas and Economic Linkages in the South West Final Report Phase 2: Understanding Stakeholders’ Requirements Task III: Understanding Local and Regional Requirements A.3 A key aspect of this project has been the importance of achieving buy-in from local and regional stakeholders, and designing a system that they will use in the future. To achieve this, we have carried out consultations with key stakeholder representatives to understand their requirements and what is already being done in the region, and can be used to inform this system, building on the requirements set out in the project brief. An important part of this consultation process has been testing the first draft specification of the system that was developed in the previous task. A.4 We undertook telephone consultations with fourteen of the upper tier local authorities. The purpose of these consultations was to discuss the first draft specification and to understand: • their requirements – what they want out of this, and how they want to use it (e.g. web interface or other) • their views on the functional economic market areas that they operate within • their views on the best data to use and data that can be made available to the study team • primary data that they have been able to make available e.g. surveys. A.5 Lower tier authorities have not been engaged directly by the consultant team, but indirectly through the upper tier authorities. A.6 Telephone consultations were undertaken with a small number of regional stakeholders – the SWO, SWRDA, South West Councils and Local Authorities. The purpose of these consultations was to understand regional requirements, previous work that has been undertaken and data availability. A pro-forma requesting information was sent to other regional stakeholders – the respective leaders of the SWO modules, RIEP, NHS, and HCA. The SWO has coordinated responses from these organisations and the collation of relevant data and information. A.7 To test the consultation findings, and allow for interactive discussions, we held a workshop with local and regional stakeholders on 13 April 2010 in Taunton. The purpose of the workshop was to: • present the draft system specification (updated to take account of stakeholders’ feedback) in terms of both its content and form • receive feedback from participants • run thematic working groups to identify and test perceptions of functional economic market areas around the core themes, and to discuss and identify further datasets • discuss prioritisation of the data sets, to determine which are the most important in determining FEMAs. A-2 Functional Economic Market Areas and Economic Linkages in the South West Final Report A.8 The output of this task was an understanding of stakeholders’ requirements, building on the requirements in the project brief; their views on data sources; and perceptions of FEMA boundaries based on key themes within the region. Task IV: Defining the System A.9 The next task was then to refine and finalise the proposed specification of the system. This included: • the list of key themes to be mapped using GIS • a prioritised list of data sources used to map each theme (based on prioritisation by stakeholders at the workshop), with a description of the limitations of each data set • recognition of different approaches or different weighting of data in different types of area e.g. urban and rural. A.10 A scoping meeting was held with SWO to discuss their IT requirements and capabilities. A.11 Discussions were held about hosting the final Spatial Economic Analysis Tool on a website, but a stand-alone system operating from a DVD was found to be the most practical way of delivering the required functionality given the constraints of the IT systems available. A.12 The output from this task was the finalised specification for the system to be developed. This was discussed and agreed with the client team at a Steering Group meeting in on 6 May 2010. Phase 3: Delivering a System Task V: Data Collection A.13 This task involved data collection, including primary data that has been offered by local authorities and other stakeholders. We worked with the client steering group to agree the prioritisation of data sets that were collected and coded within the time available. A.14 Lower Super Output Areas (LSOAs) were used as the basic geographical units for the work that we undertook wherever possible. That data which is available at LSOA level was collected at that level, whereas data only available at higher levels was allocated across the relevant LSOAs. A.15 A full list of datasets collected is set out in the main body of the report in Chapter 4 and there is further discussion on datasets in Annex D. A.16 The output of this task was the data used in the GIS-based analysis in the next task. This was developed as a collection of data sets which are available to stakeholders in the project to allow them carry out their own analysis in the future. The database has been developed in such a way that it is updateable in the future as new data sets become available. A-3 Functional Economic Market Areas and Economic Linkages in the South West Final Report Task VI: The Spatial Economic Analysis Tool – South West A.17 In this stage we undertook GIS modelling. The first part of this modelling was to map each dataset to provide a set of layers for the system. The layers can be viewed individually or combined together around the key themes, or other combinations, to start the process of looking for patterns in the data that will help to inform FEMAs. The analysis that has been undertaken in the main body of the report helps to identify where there are consistencies and inconsistencies within and across the key themes, but is not intended to arrive at a single set of prescriptive FEMA boundaries. A.18 The output of this task has been the Spatial Economic Analysis Tool with some limited initial analysis of the findings, which has been tested with the client steering group and refined accordingly. The Tool has been designed so that it can be used by external stakeholders. To achieve this, it has the functionality to allow layers to be combined as required by users to investigate particular local, sub-regional or regional issues. A.19 A key part of the analysis was multivariate analysis (MVA) which involved analysis of more than one statistical variable at a time. The results of the MVA can be put alongside other analysis to explore the spatial dynamics of the region and the main FEMAs that operate. The MVA uses two groups of input variables (data): • a 'short list' of census variables from the ONS National Statistics Area Classification (2001); and • a 'long list' of additional variables including three additional census variables, and others from ABI, ONS, IMD, DCFS and DWP. A.20 The review of potential data sources and the MVA analysis provides a first indication of the key themes that are worthy of further investigation. A.21 More detail on the MVA methodology is included in Chapter 5. A.22 A workshop was held with the client steering group to test the initial outputs and analysis. This workshop tested: A.23 • the suitability of the outputs to meet the needs of local authorities and other local, sub-regional and regional stakeholders • the findings of the initial analysis We have given some high-level consideration to how FEMAs are evolving, and the factors that will change them in the future. This covers issues such as home working, commuting patterns, transport infrastructure changes, and low-carbon impacts. Whilst this is not intended to impact on current mapping of FEMAs, it identifies some useful issues to monitor in the future. A-4 Functional Economic Market Areas and Economic Linkages in the South West Final Report Task VII: Reporting and Delivery A.24 As well as the database and the Spatial Economic Analysis Tool, we have developed a draft and then this final report. A draft report was provided, and we took comments on this from the client steering group. A.25 To facilitate the training of users, we have prepared a guidance manual on how to use and update the database, and how to use the interactive Spatial Economic Analysis Tool. We have carried out one training workshop, which was combined with the final presentation on 18 June 2010. A-5 Functional Economic Market Areas and Economic Linkages in the South West Final Report Annex B: Existing Knowledge on Functional Economic Market Areas Sub-regional emphases Table B-1: Draft Regional Spatial Strategy sub-regional structure Sub-regions FEMA characteristics and links North and centre of the region • The SSCTs in the north and centre of the region have strong economic potential, in part due to their relatively good links with London and the South East (particularly in Swindon and Bristol) • However, the realisation of such growth is reliant on the maintenance and improvement of connectivity by road and rail, and the provision of sufficient housing linked with job growth • Joint working recommended to develop strategies for the functional areas of the SSCTs – This sub-region includes: • the West of England (Bath, Bristol, Weston-superMare and associated towns), • Swindon and the associated town of Cirencester • Gloucester and Cheltenham and the associated towns of Stroud and Tewkesbury • the main towns of the Forest of Dean, Exeter and the associated town of Newton Abbot • Taunton and Bridgwater and the associated town of Wellington • Trowbridge, Chippenham and Yeovil. The south east of the region the South East Dorset conurbation (of Bournemouth and Poole and Christchurch, and associated towns) • Weymouth • Dorchester • Salisbury. The Western Peninsula Plymouth • Torbay • the main Cornish Towns of Camborne-PoolRedruth, Falmouth-Penryn and Truro and the associated towns of Penzance, Newquay and St Austell • ¾ Bristol/ Bath ¾ Bristol/ Weston-super-Mare ¾ Cheltenham/ Gloucester ¾ Exeter/ Newton Abbot ¾ Exeter/ Exmouth ¾ Swindon/ Chippenham ¾ Taunton/ Bridgwater ¾ Yeovil/ Sherborne. Strong connections with areas further east, which has had positive effects on economic performance and the demand for residential accommodation • In the past 20 years, the area has experienced significant economic and housing growth. • However, there is now a shortage of affordable housing, and future growth is constrained by internationally important environmental assets. • Joint working recommended to develop strategies for the functional areas of SSCTs – ¾ South East Dorset Conurbation: Bournemouth/ Poole/ Christchurch ¾ Dorchester/ Weymouth. • Very high environmental quality, with two national parks and an extensive coastline • One of the main tourism areas in the region • Long distance from London and other national markets, and as such transport links are key • The area has experienced the effects of major restructuring of key industries • It has relatively low productivity and wages, and a high proportion of retirees and second home owners • The area is reliant on many small towns and service centres for jobs • Joint working recommended to develop strategies This sub-region includes: • Bath/ Chippenham/ Trowbridge/ Frome • This sub-region includes: • ¾ Barnstaple and the associated town of Bideford/Northam. B-1 Functional Economic Market Areas and Economic Linkages in the South West Final Report Sub-regions FEMA characteristics and links for the functional areas of SSCTs – ¾ Barnstaple/ Bideford ¾ Camborne/ Pool/ Redruth, Falmouth-Penryn, Truro. Source: SQW Consulting analysis of Draft RSS Functional economic activity zones Table B-2: Description of Functional Economic Zones Zone Description North East Triangle Functional Zone • The North East Triangle Is the largest zone in the region and contains 44% of the population • It is the most prosperous, economically diverse and accessible zone, with links to Wales, the West Midlands, London and the South East. It also has strong links into the M5 Corridor and A303 Corridor zones. • High proportion of large companies compared to other zones, a strong small business sector, in recent years strong employment growth and high levels of skills. It has a relatively young population. • The A303 Corridor is argued to be a not particularly distinct or economically coherent zone; with focuses around the A303, the Exeter/Waterloo rail corridor and the activity in and around key market towns near the A303 and A30. • There is a strong MoD presence in the zone. • The area’s priority sectors include Advanced Engineering, Food and Drink, Biotechnology and Environmental Technology. • Although employment and economic activity rates in the zone are relatively high, as of 2006, business formation rates were not – ranging from average to low. Includes 3 sub-zones: • Bristol, Bath, Weston-super-Mare and its hinterland – the West of England • Swindon and the adjacent M4 corridor • Gloucester, Cheltenham and the adjacent M5 corridor. A303 Corridor Functional Zone • • Includes the key towns of Salisbury and Yeovil, and other towns of Shaftesbury, Gillingham, Sherborne, Crewkerne, Chard, Axminster and Honiton Taunton is included in the western edge of the zone, overlapping with the M5 Corridor zone B-2 Functional Economic Market Areas and Economic Linkages in the South West Final Report Zone Description South East Coastal Functional Zone • The South East Coastal functional zone is one of contrast; with the prosperous Bournemouth-Pool-Christchurch conurbation with strong business formation and high levels of inward investment, and rural Dorset • With its World Heritage Status Coastline, the zone is focused on Tourism and Leisure and Marine Technology (as well as Advanced Engineering). As such employment is subject to seasonal variation It is also variable across the zone • There is an ‘urban elite’ of high paid residents who work within the zone or in the South East • There are also a relatively high proportion of retired residents, as the zone is a major retirement destinations. • Focused around the BournemouthPool-Christchurch conurbation, and other connected towns. • The zone also includes Weymouth, Dorchester and Swanage. B-3 Functional Economic Market Areas and Economic Linkages in the South West Final Report Zone Description M5 Corridor Functional Zone • Defined by flows along the north-south transport routes, linking the prosperous north and less prosperous south of the region • The zone overlaps other functional zones, and there are strong links between towns inside and outside of the zone; between Weston-super-Mare and Bristol in the north and Exeter, Newton Abbot and Torbay in the south • The M5 Corridor graph is argued to have been largely due to distribution and logistics related to consumer service provision • There are also hot spots of high-tech and high value adding business, in the sectors of Aerospace and Biotechnology. • Relatively good transport links within and to other zones, although parts of the zone are relatively remote • The economy has grown slowly relative to other zones in recent years, with the exception of Exeter • As of 2006, despite gradually falling unemployment levels across the zone, the three centres still had relatively high levels of unemployment, and particularly long term and seasonal unemployment. • The key industries of tourism and manufacturing were struggling to adapt to changing or declining markets. • • Includes the strategic settlements of Exeter, Weston-super-Mare and Taunton, and other towns of Wellington, Bridgwater and Tiverton Weston-super-Mare also forms part of the North East Triangle South Central Functional Zone Includes 3 main centres: • Exeter • Plymouth • Torbay B-4 Functional Economic Market Areas and Economic Linkages in the South West Final Report Zone Description North Peninsula Functional Zone • The North Peninsula functional zone has no major urban areas, poor transport links and is sparsely populated • The area has a number of market town and villages; of which Barnstaple and Bideford are the recognised centres for jobs, houses and services • The economy is dependent on tourism, consumer services and land based industries, has low wages, seasonal employment and high levels of deprivation. • The main towns are Barnstaple, Bideford and Ilfracombe, but the zone has no major urban areas. B-5 Functional Economic Market Areas and Economic Linkages in the South West Final Report Zone Description Western Peninsula Functional Zone • The Western Peninsula Functional Zone has issues around peripherality, with relatively poor infrastructure, physical boundaries (including a long coastline) and a dispersed population • Tended to perform poorly economically; with low economic activity, employment and skill levels • Most work tends to be in low value added sectors, including food and drink, tourism and leisure, creative industries and recently in manufacturing • The smaller towns tend to act largely as local centres of employment and services, which form a network of complementary centres. • Has three main ‘towns’ of Truro, Falmouth-Penryn and Camborne-PoolRedruth • and a further 11 local centres including Bodmin, Bude, Hayle, Helston, Launceston, Liskeard, Newquay, Penzance, St. Austell, St. Ives and Wadebridge. Source: SQW Consulting: compiled from SWRDA, 2006, Spatial Implications – Place Matters B-6 Functional Economic Market Areas and Economic Linkages in the South West Final Report Annex C: Mapping against LEA core themes C.1 The national guidance for LEAs includes a set of core themes for LEAs to cover. The guidance also provides suggestions on topics within the core themes. The table below maps the content of the tool as of June 2010 against the LEA core themes and topics to illustrate how the study outputs will be of use in preparing the LEAs. Table C-1: Mapping of Spatial Economic Analysis Tool against core LEA themes LEA core themes Suggested sub-areas in guidance Use of Spatial Economic Analysis Tool Fit within sub-regional and regional markets and links between urban and rural economies. Tool has been designed to explore economic linkages where possible. The data and evidence in the tool may need to be put alongside other evidence to explore economic linkages and the case for partnership working. Economic geography Economic linkages Areas where new links between local authorities could be forged or strengthened Business & Enterprise Structure of economy Sectoral structure including comparator strengths Employment in broad sectors and knowledge economy included Spatial Economic Analysis Tool does not provide assessment of relative strengths of sectors by area Economic specialism’s/ clusters e.g. low carbon sectors Location Quotient analysis included for employment in knowledge economy Spatial Economic Analysis Tool does not include cluster analysis Enterprise & innovation Business start-ups/ closures Age of businesses included in tool Businesses by size e.g. SMEs, selfemployment Size of businesses included in tool Employment in high growth/ knowledge based sectors – challenges & opportunities Employment and location quotient analysis included for knowledge economy HE universities & links to business Location of universities included and employment in broad education sector Tool does not include analysis of links between universities and business Business needs Constraints to business investment & economic growth Not currently included in Tool Business views on services including regulatory services Not currently included in Spatial Economic Analysis Tool Population profile, including trends Population profile and projections included in Tool Population density Not currently included in Tool Occupational structure Employment by higher occupational groups included People and communities Demography & geography Labour market C-1 Functional Economic Market Areas and Economic Linkages in the South West Final Report LEA core themes Suggested sub-areas in guidance Use of Spatial Economic Analysis Tool Employment rates Economic inactivity rate included. Employment rates not currently included Unemployment rates Claimant count included Worklessness Labour market data indicators included in Tool. Tool will need to be put alongside other evidence to assess worklessness Skills Economic inclusion TTWA patterns 1991 and 2001 TTWAs included Benefit claimants Data on benefit claiming included in Spatial Economic Analysis Tool Educational attainment GCSE attainment included Skill levels e.g. basic and whether this is a barrier to participation No qualifications, NVQ3+ and NVQ4+ included in tool Skill gaps Tool does not currently include data on skills gaps as not available at low spatial scales Extent to which skills profile meets business needs (including in neighbouring areas) See above Deprivation 2007 IMD score included Economic exclusion Indicators relating to economic exclusion included (e.g. qualifications, unemployment) but further evidence will be required to assess economic exclusion Economic & social barriers to economic participation Will need to be separately assessed Links to exclusion, Health, Child poverty, Crime Not currently included in Tool Natural environment – pressures from growth Not currently included in Tool Natural environment – opportunities for protection and enhancement from economic prosperity Tool includes major environmental designations, but other evidence will be needed to assess this topic Biodiversity Not currently included in Tool Waste Not currently included in Tool Carbon emissions (reducing greenhouse gases) Not currently included in Tool Increasing renewable energy capacity Will need to be considered separately Sustainable economic growth Environmental sustainability – protection and enhancement of natural and historic environment C-2 Functional Economic Market Areas and Economic Linkages in the South West Final Report LEA core themes Suggested sub-areas in guidance Use of Spatial Economic Analysis Tool Environmental risks and opportunities – impact on economic activity (e.g. resilience of infrastructure and business) Not currently included in Tool Low carbon economy Trends, challenges and opportunities in environmental goods and services Not currently included in Tool Transport provision and other infrastructure How transport supports economic development/ links Major transport routes/ links included in base maps of Spatial Economic Analysis Tool, but no data collected on influence of transport on economic development Other non-transport infrastructure improvements to support economic development e.g. reducing congestion No data included in Tool on transport improvements Capacity of infrastructure to support local economy e.g. broadband, energy Housing Housing provision (including mix of sizes) Not currently included in Tool Housing affordability Indicator of affordability included in tool Overall competitiveness & productivity Will need to be separately assessed Strengths and weaknesses Will need to be separately assessed based on evidence base for LEA Economic competitiveness Overall competitiveness & productivity Source: SQW Consulting analysis of consultation on draft statutory guidance, December 2009 C-3 Functional Economic Market Areas and Economic Linkages in the South West Final Report Annex D: Themes and Layers Table 5: Themes data table Theme Sub-area Data indicator PREVIOUS FEMA ANALYSIS Previous FEMA analysis PLACES Places Year(s) Scale Source Justification Functional economic activity zones 2005 Sub-regional RES (Regional Economic Strategy) Included in tool as zones form part of RES Characteristic zones 2005 Sub-regional DTZ/ SWRDA Included in tool as formed part of DTZ 2005 research on regional/ sub-regional spatial dynamics which updated the functional economic activity zones Sub-regional housing markets 2008 Sub-regional Draft RSS (Regional Spatial Strategy) Included in tool to show housing market areas identified in draft RSS Local Government Association sub- 2007 regional analysis Sub-regional LGA/ PACEC Included in tool to illustrate previous example of FEMA analysis Strategic Significant Cities and Towns (SSCTs) 2008 Point Draft RSS Included in tool as SSCTs form part of draft RSS and useful indicator of settlement hierarchy Rural Urban Definitions 2004 Census output ONS areas Included in tool as indicator of characteristic of places and robust data Market town typology 2009 Point AMT Included in tool as market towns are important economic and service centres in parts of the region. Captures places not included in SSCTs Strategic employment land allocations Unknown Point Local Planning Authorities and Regional Planning Not included as geo-coded data has not been made available to the study Priority regeneration areas 2007 Point Draft RSS Not included as data has not been made available to the study Brownfield land sites Various Point Included in tool to show potential availability of sites for Homes Communities Agency based on Local new development Planning Authority returns All Bulk Classes Rateable Value per square metre 2008 MSOA Homes Communities Agency (Valuation Office) Included in tool as proxy of attractiveness of places as business location. Rateable values are based on a range of factors, including the type of floorspace in each area D-1 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area ECONOMIC LINKAGES Economic output Employment Data indicator Year(s) Scale Source Justification Growth Points Unknown District and upper tier Homes Communities Agency Included to show location of places identified as having potential for housing and other growth Local Delivery Vehicles Unknown Point Homes Communities Agency Included to show location of administrative areas to support economic development GVA - Total (£m) and % change 1998-2008 Upper tier Econ-I (SWO/ SWRDA) Included to show total economic output by area and % change (1998-08 and 2003-08). GVA total and change by broad sector could be added to tool GVA - per Full Time Equivalent (FTE) worker 2008 Upper tier Econ-I (SWO/ SWRDA) Not included as total and change prioritised. Could be added to tool Exports by industry 2008 Regional Econ-I (SWO/ SWRDA) Not included as only available at regional scale. Data includes exports by broad industry (£m), industry share of export market, % of industry sales and exports to markets FTE workers - % change 1998-2008 Upper tier Econ-I (SWO/ SWRDA) Included as Econ-I FTE data includes estimates of both employees and self-employees (ABI includes employees only). Change included rather than total ('000s) as indicator of economic performance over time. Change in FTE workers by broad sectors and RDA priority sectors not included but could be added to tool FTE workers - total ('000s) 1998-2008 Upper tier Econ-I (SWO/ SWRDA) Not included as % change in FTE workers prioritised in tool. FTE workers total by broad sectors and RDA priority sectors could be added to tool Employees by broad sector (workplace) - % 2008 LSOA ABI Included to show relative concentration of employees by broad sector. Employment in detailed sectors could be added to tool but data may be suppressed at LSOA scale so may have to be at district scale. Change in total employees by broad sector not included as only possible to compare 2006-2008 using ABI due to discontinuities in data Employees in knowledge economy (workplace) - % 2008 LSOA ABI Included to show concentration of employees in knowledge economy, an important indicator of future economic performance. OECD definition of knowledge economy used. Change in employees not included as only possible to compare 2006-2008 using ABI due to discontinuities in data Employees in knowledge economy - 2008 Location Quotient analysis LSOA ABI Included to show relative concentration of employees in knowledge economy compared with South West. Location D-2 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale Source Justification Quotient analysis of employees in broad sectors (and by business units) has not been included in tool due to time & resources available but could be added to tool. Economic forecasts Household earnings Tourism Self-employment - % of those aged 2001 16-74 who are self employed LSOA Census 2001 Included to show concentration of self-employment, an important source of employment in rural areas and other parts of the region. 2001 Census data included as it is available at LSOA and is robust. Annual Population Survey data only available by district/ upper tier Sole Traders and Partnerships - % of total enterprise units 2009 LSOA IDBR Included as up to date proxy of self-employment. Units rounded to nearest ten. Employment by senior and less senior occupation groups - % 2001 LSOA Census 2001 Included as resident based proxy of skills of workers. Senior occupation group combines Managers and Senior Officials and Professional Occupations groups. Less senior occupation group combines Process, Plant and Machine Operatives and Elementary Occupations groups. Other broad occupation groups could be added to tool Employees per working age population (job density) 2008 LSOA ABI/ ONS Included as proxy of job density. Total employees divided by working age population. Forecast FTE workers - % change 2009-15, 2015-30 Upper tier Econ-I (SWO/ SWRDA) Included as proxy for potential change in future employment. Spring 2010 forecasts. Forecasts by broad sector could be added to tool Forecast GVA - % change 2009-15, 2015-30 Upper tier Econ-I (SWO/ SWRDA) Included as proxy for potential change in economic output. Spring 2010 forecasts. Forecasts by FTE workers and by broad sector could be added to tool Household income - % change in average weekly household income total (2004/5 - 2007/8) 2007/08 MSOA ONS Workplace earnings - change in median weekly pay (gross) for fulltime workers (2004-2009) 2009 District and upper tier Annual Survey of Hours Included as measure of change in workplace earnings and Earnings Visitor Numbers - South West attractions 2003 - 2007 Individual attractions SW Tourism Not included as tourism spend data prioritised. Could be added to tool if geo-coded Tourism - total spend (£) 2008 SW Tourism Included to provide indicator of strength of tourism sector. Other lower priority data available that could be added to tool: UK, overseas, total trips; UK, overseas, total nights; District and upper tier Included as proxy of change in household wealth D-3 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale Source Justification tourism day visits & spend; total business turnover; staying tourist supported. Businesses Enterprise Inward investment Business units - total 2009 LSOA IDBR Included as measure of count of local units of businesses. IDBR includes PAYE and VAT data. Various data on business units also available from Econ-I (e.g. Size, by broad and RDA priority sectors). Not included as only available at higher spatial scale Business units by size - 0-4 employees, 5-9, 10-19, 20+ - % change 2009 LSOA IDBR Included as proxy for size of local units. Data presented by banding of number of employees Business turnover by band (enterprises) - £ 2009 LSOA IDBR Not included as does not capture all small businesses and because of time and resources available. Could be added to tool Business legal status (public and non-public) 2009 LSOA IDBR Not included as % employment in public administration included and because of time and resources available. Could be added to tool Business industrial clusters Latest Unknown SWRDA Not included as region-wide research on economic clusters has not been completed within study timeframe Business units Location Quotient analysis 2009 LSOA IDBR Not included due to time and resources available and the need to keep the tool manageable. Could be added to tool over time to show sectoral over/ under-representation of businesses by broad sector compared with South West Business skills gaps Unknown Various Various Not included in tool as no comprehensive data available at finer scale across region. Business units by age band (<2 years, 2-3, 4-9, +10) - % change 2009 LSOA IDBR Included as proxy of enterprise and survival rates Business survival rates (3 and 5 years) - % 2008 District and upper tier ONS Included as measure of enterprise. Data shows survival rates of all new enterprises registered in 2003 after 3 and 5 years (i.e. % of businesses still trading after 3 and 5 years). Business start-ups and closures per 2009 10,000 resident population LSOA IDBR/ ONS Not included as alternative proxies of enterprise included. Foreign Direct Investment - £m Regional UKTI/ RDA Not included as data not available below regional level. Latest D-4 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme LABOUR MARKETS DEMOGRAPHY Sub-area Travel to work Data indicator Year(s) Scale Source Justification Travel to Work Areas (1991 and 2001) 1991 and 2001 TTWA Census 1991 and 2001 Included in tool to show labour catchments. Analysis of TTWA data (for example by occupational group, gender, self-containment thresholds) was beyond the time and resources available to the study Self containment - % of working population who commute within the district 2001 Local authority Census 2001 Included as available region-wide and self-containment is useful proxy of commuting patterns. Commuting flows 2008 Local authority Annual Population Survey Not included as commuting flow data only available district to district which does not reveal patterns within districts Average distance to work (km) 2001 LSOA Census 2001 Included as valuable measure of distance to work % of population aged 16-74 in employment usually travel to work by public transport 2001 LSOA Census 2001 Not included in tool as will not reflect new public transport investments across region % of population aged 16-74 in employment who work mainly from home 2001 LSOA Census 2001 Included as only comprehensive region-wide measure of home working at low spatial scale. Tool can be updated with other primary data where it is available Worklessness Economic inactivity - average % (2004-09) of working age population who are economically inactive 2009 District and upper tier Annual Population Survey Included in tool. Average % of economic inactivity over 2004-09 included because of sampling errors in any one year Skills/ education Qualification levels - average % (2006-08) of residents with no qualifications, NVQ3+ and NVQ4+ 2008 District and upper tier Annual Population Survey Included in tool. Average % of residents with no, NVQ3+ and NVQ4+ qualifications over 2006-08 included because of sampling errors in any one year GSCE attainment - average level 3 QCA point score per entry 2008-09 LSOA ONS Included as measure of educational attainment. Population Population - % change 2001-2008 LSOA ONS Included in tool as indicator of attractiveness of places Working age population - as % of 2008 LSOA ONS Included in tool to show distribution of working age D-5 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale Source total population Justification population Elderly population - % of people of pensionable age (60/65+) as a proportion of total population 2008 LSOA ONS Included in tool to show distribution of pensionable aged population Ethnic minority population 2001 LSOA Census 2001 Not included in tool as lower priority within time and resources available Population projections Population projections - % change 2006-2031 District and upper tier ONS Included in tool as indicator of future change. 2006-based sub national population projections. Projections by age group not included to keep tool size manageable but could be added depending on importance of demography issues by area Housing change Housing allocation targets Various Local and sub- Local Planning regional Authorities and Draft RSS Not included in tool as population projections included instead Households - number 2006 District and upper tier ONS/ CLG Not included as population included instead of households Annual net additions to dwelling stock (new build and conversions) 1996/72008/9 Various South West Councils Not included as new dwellings are small proportion of total housing stock and local planning authorities is lowest spatial scale available. Brownfield land sites included in tool as indicator of potential location of new housing and other development Household projections 2006-2031 District and upper tier ONS/ South West Councils Not included as population projections included in tool instead Housing affordability - ratio of lower 2009 quartile house price to lower quartile earnings District and upper tier South West Councils Included in tool as housing affordability is an important issue in the South West. House prices - median 2009 District and upper tier South West Councils Included in tool as component of housing market areas and as one proxy of attractiveness of areas Second or holiday homes - % of households 2001 LSOA Census 2001 Not included as lower priority within time and resources available to study RETAIL CATCHMENTS Retail catchments Retail catchments 2010 Place South West Observatory (Acxiom) Included in tool as retail catchments are an important factor in assessing FEMAs ACCESS TO SERVICES Access to services Population weighted average road 2007 LSOA Index of Multiple Included as indicator of accessibility to services HOUSING MARKETS Housing markets D-6 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale distance (KM) to a primary school ADMINISTRATIVE Administrative areas AREAS & HISTORICAL PARTNERSHIPS TRANSPORT & INFRASTRUCTURE Transport Source Justification Deprivation Population weighted average road distance (KM) to a food store 2007 LSOA Index of Multiple Deprivation Included as indicator of accessibility to services Population weighted average road distance (KM) to GP premises 2007 LSOA Index of Multiple Deprivation Included as indicator of accessibility to services Population weighted average road distance (KM) to a Post Office 2007 LSOA Index of Multiple Deprivation Included as indicator of accessibility to services Higher Education Institutions location 2010 Site Higher Education Statistics Agency Included as indicator of accessibility to services and because of links between HEIs and knowledge economy. HEIs not campuses Further Education Colleges locations 2010 Site Association of Colleges Included as indicator of accessibility to services Hospitals locations / PCT boundaries Latest Site Unknown Political control - Members of Parliament and local authorities Latest Constituencies Central and local government / local authorities Not included in tool as May 2010 General Election completed during study Sub-regional partnership boundaries Latest Sub-regional Various Not included in tool because lower priority within time and resources available to study and data not made available Sub-regional business organisations Latest - organisation of Chambers of Commerce, Chambers of Trade, Sector Bodies Sub-regional Various Not included in tool because lower priority within time and resources available to study New transport investments Latest Route Various Not included in tool as geo-coded data has not been made available and lower priority within time and resources available for study Public transport accessibility Latest Place Unknown Not included as region-wide data source has not been made available and insufficient resources available to investigate local sources. A significant proportion of workers travel to work by private car in the region Congestion Latest Route Unknown Not included as region-wide data source has not been made available and insufficient resources available to Not included because region-wide data has not been made available and lower priority within time and resources available to study D-7 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale Source Justification investigate local sources CULTURE & IDENTITY SOCIAL NATURAL ENVIRONMENT Percent of households with 2 or more cars 2001 LSOA Census 2001 Not included as lower priority within time and resources available to study Infrastructure Broadband - access and demand Latest Site SWRDA Not included as region-wide data has not been made available within the study timeframe. Research has recently been completed on behalf of SWRDA on broadband accessibility and demand and GIS maps are being produced. These can be added to the tool in time Culture Cultural attractions - regional/ sub- Latest regionally significant (e.g. museums, galleries, concert halls) Site Unknown Not included in tool because geo-coded data has not been made available and lower priority within time and resources available to the study Heritage and Historical attractions - Latest e.g. Listed Buildings, Scheduled Ancient Monuments, Heritage Sites Site Various Not included in tool because lower priority within time and resources available to study. Multiple point dots added minimal value. Ticket sales Unknown Unknown Unknown Not included as data has not been made available Regional and local identity Unknown Unknown Unknown Not included as no region-wide data available on perceptions of identity TV regions Latest Sub-regional Unknown Not included in tool as lower priority within time and resources available Local newspaper circulation Latest Sub-regional Unknown Not included in tool given general trend for falling circulation and increase in digital media LSOA Index of Multiple Deprivation Required. IMD should have been mapped - check SWO Claimant count unemployment rate 2010 (March) District and upper tier NOMIS Included in tool as administrative not sample data. Not available at low spatial scale across region because of suppression of data. ILO unemployment not included in tool but could be added Benefit claimants - % of working age 2009 population claiming out of work benefits LSOA DWP Included in tool as indicator of worklessness. Data also available by gender and age that could be added to tool over time Site MAGIC Included in tool as indicator of quality of place Social Natural environment Index of Deprivation - overall score 2007 Natural environment - National Parks and Areas of Outstanding Natural Beauty Latest D-8 Functional Economic Market Areas and Economic Linkages in the South West Final Report Theme Sub-area Data indicator Year(s) Scale Source Justification Latest Natural England - Ancient Woodland, Local Nature Reserves, National Nature Reserve, Ramsar Sites, Special Protection Areas, Special Areas Of Conservation, Historic Parks, SSSI sites Site Various Not included in tool as lower priority within time and resources available Flood Zones Latest Site Environmental Agency Not included in tool as geo-coded data has not been made available and lower priority within time and resources available for study Energy consumption by sector 2007 District and upper tier Department for Energy Not included in tool as data available at district level and and Climate Change lower priority within time and resources available to study D-9 Functional Economic Market Areas and Economic Linkages in the South West Final Report Annex E: Guidance Manual Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual June 2010 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Contents 1: Introduction .......................................................................................................................... 1 2: Working with Layers..........................................................................................................11 3: Exporting maps..................................................................................................................13 4: Symbology..........................................................................................................................14 5: Projects...............................................................................................................................15 6: Advanced use.....................................................................................................................17 Annex A: Methodology ........................................................................................................ A-1 Annex B: Existing Knowledge on Functional Economic Market Areas ......................... B-1 Annex C: Mapping against LEA core themes ................................................................... C-1 Annex D: Themes and Layers............................................................................................. D-1 Annex E: Guidance Manual................................................................................................. E-1 Contact: James Shorten Approved by: Gareth Jones email: Date: [email protected] 16/06/2010 Director www.sqw.co.uk Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 1: Introduction 1.1 This is the guidance manual for the Spatial Economic Analysis GIS (Geographic Information System) Tool (SEAT-SW) produced for the South West Observatory's Functional Economic Market Areas (FEMA) research. The GIS Tool is based on a fully functional GIS system – QGIS 35. This manual will guide you through using the Tool to view and manipulate the layers assembled for the Tool. As QGIS is a fully functional GIS system you can do much more than simply use the preloaded layers. Guidance on more advanced use of QGIS is available in section 6. Basics 1.2 The dvd-rom containing the Tool has the following on it: • an introductory web page • QGIS software • Over 100 layers • a copy of this manual Starting GQIS 1.3 The dvd-rom has been tested to run on all recent versions of Windows 36. When you put the dvd-rom into your computer it should automatically open the introductory web page. This explains how to start the QGIS software. For some versions of Windows you have to give permission when prompted for the dvd-rom to open this way. If this still does not work just open Explorer and navigate to the dvd-rom and then click on the file index.html on the dvd. If you cannot open the file index.html then click on QuantumGIS-all_layers on the dvd. This will open the software with all of the FEMA layers loaded. This takes a few minutes as there is a lot of data to load. Settings 1.4 There are five settings changes you should make at this stage to improve the performance of QGIS: 35 36 QGIS is free, open source software Windows XP, Windows Vista, Windows 7 1 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual • Go to Settings – Options – and in the tab Rendering & SVG enter value 1000 in the field Number of features to draw before updating the display – this will help your maps draw faster. • Go to Plugins - Manage plugins and select the NorthArrow plugin to give you a north arrow. • Go to Plugins - Manage plugins and select the ScaleBar plugin to give you a scale bar. • Go to Plugins - Manage plugins and select the CopyrightLabel plugin to add the copyright label. • Go to Plugins - Manage plugins and select the Quick Print plugin – you will need this to export maps. You only need to do this once for each computer you use the cd on – these settings will be automatically saved. Projects 1.5 When you open QGIS it will open empty – without any layers loaded. The next step is to open a project. Projects are collections of layers which QGIS will open automatically. The dvd-rom has a number of projects already saved on it. You can also make up and save your own projects – section 5. There is a project containing all of the layers available on the dvd icon, and then navigate to the projects rom which you should open next. Click on the folder on the dvd-rom and open the project all_layers.qgs. The project will open with all of the layers loaded but with none of the layers switched on. Layers 1.6 Layers are the building blocks of GIS. They are maps of features (roads, administrative boundaries etc.) or data (population, employment etc.). The layers in the Tool have been chosen through the research and consultation work of the project. They are a mix of what is useful and what is available for better understanding FEMAs in the South West. 1.7 The full list of the layers in the Tool is below in the table SW FEMAs GIS Tool Layers. This also includes a note of the 'geography' the data is mapped to – these are the units for which the data was available and so the scale at which it could be mapped. Most of the layers in the Tool are mapped to Lower Super Output Areas (LSOAs), which are relatively small, and so allow greater detail to be seen. However some data was only available for larger areas – Medium Super Output Areas (MSOAs), or local authorities. Other layers such as Travel to Work Areas and Retail Catchments are different again. 1.8 The layers are stored on the dvd in the same order as the table below in the folder /layers. If you look in these folders you will see that each layer saved as a 'shapefile' – a type of GIS file format. Shapefiles are actually made up of six separate files (you can ignore this), each with the same name, and then one 'readme.txt' – details of the source of the data in the layer can be found here. 1.9 Now you have the all_layers.qgs project open the next step is to understand how to work with the layers. 2 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Table 1-1: GIS Tool Layers Theme Layer Folder access_to_services base_layers Layer name Date Source Data description distance_to_food_store distance_to_food_store 2007 IMD Population weighted average road distance (KM) to a food store distance_to_GP_premises distance_to_GP_premises 2007 IMD Population weighted average road distance (KM) to GP premises distance_to_post_office distance_to_post_office 2007 IMD Population weighted average road distance (KM) to a Post Office distance_to_primary_school distance_to_primary_school 2007 IMD Population weighted average road distance (KM) to a primary school FECs_sw_england FECs_in_the_southwest 2009 Association of Colleges Locations of further education colleges HEIs_sw_england HEIs_in_the_southwest 2008/9 HESA data return 08/09 Locations of higher education institutions background_maps 1_250000 2010 OS OpenData Background map MiniScale 2010 OS OpenData Background map higher_tier higher_tier 2010 OS OpenData Higher tier local authorities rail rail OS OpenData Rail lines roads Sub Folder a_roads a_roads 2010 OS OpenData A roads motorways motorways 2010 OS OpenData Motorways rural_urban_defins rural_urban_defins 2004 ONS Rural urban definitions sw_outline sw_outline 2010 ONS LSOAs Outline of the SW region unitaries_boroughs unitaries_boroughs 2010 OS OpenData Unitary and borough local authorities 3 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Layer Folder demography economy Layer name Date Source Data description pensionable_age pensionable_age 2008 ONS ONS Resident Population Estimates population_change_01_08 population_change_01_08 2008 ONS ONS Resident Population Estimates population_forecasts population_forecasts 2006 ONS Sub national population projections working_age_population working_age_population 2008 ONS ONS Resident Population Estimates ave_dist_work ave_dist_work 2001 2001 Census Average distance to work (km) business_units business_units 2008 Econ-I Number business units claimants claimants 2010 Nomis Claimants as % working age population commuting_self_cont commuting_self_cont 2001 2001 Census Commuting self containment econ_inactivity econ_inactivity 2004-2009 Annual Population Survey Average economic inactivity % working age population less_senior employment_by_occupational_group_less_senior 2001 2001 Census Combined occupational groups senior employment_by_occupational_group_senior 2001 2001 Census Combined occupational groups 09_15 forecasts_fte_09_15 2010 South West Observatory Economy Model Workers: full time equivalent change 2009-2015 forecasts_gva_09_15 2010 South West Observatory Economy Model Gross value added change 20092015 employment_by_occupationa l_group forecasts Sub Folder 4 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Layer Folder Sub Folder Layer name Date Source Data description 15_30 forecasts_fte_15_30 2010 South West Observatory Economy Model Workers: full time equivalent change 2015-2030 forecasts_gva_15_30 2010 South West Observatory Economy Model Workers: full time equivalent change 2015-2030 fte_workers_1998_2008 1998-2008 Econ-I Workers: full time equivalent change 1998-2008 98_08 gva_change_98_08 1998-2008 Econ-I Gross value added change 19982008 03_08 gva_change_03_08 2003-2008 Econ-I Gross value added change 20032008 gva_total 2008 Econ-I Gross value added total 2to3 idbr_age_bands_less2 2009 IDBR Enterprise age band <2 years 4to9 idbr_age_bands_2to3 2009 IDBR Enterprise age band 2-3 years 10plus idbr_age_bands_4to9 2009 IDBR Enterprise age band 4-9 years less2 idbr_age_bands_10plus 2009 IDBR Enterprise age band 10+ years idbr_local_units 2009 IDBR Local units count 0_4 dbr_unit_size_0_4 2009 IDBR Local units size band 0-4 employees 5_9 idbr_unit_size_5_9 2009 IDBR Local units size band 5-9 employees 10_19 idbr_unit_size_10_19 2009 IDBR Local units size band 10-19 employees fte_workers gva_change gva_total idbr_age_bands idbr_local_units idbr_local_units_size 5 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Layer Folder Sub Folder Layer name Date Source Data description 20_plus idbr_unit_size_20_plus 2009 IDBR Local units size band 20+ employees job_density job_density 2008 IDBR, ONS Total employees / working age population knowledge_economy knowledge_economy 2008 ABI OECD 2003 3 Digit SIC Code Definition knowledge_economy_lq knowledge_economy_lq 2008 ABI OECD 2003 3 Digit SIC Code Definition – locational quotient employment _agriculturefishing employed_agriculture-fishing 2008 ABI Broad industrial group (SIC A,B) employment _bankingfinanceinsurance employment_banking-finance-insurance 2008 ABI Broad industrial group (SIC J,K) employment _constructio n employed_construction 2008 ABI Broad industrial group (SIC F) employment _distribhotelsrestaurant employed_distrib-hotels-restaurant 2008 ABI Broad industrial group (SIC G,H) employment _energywater employed_energy-water 2008 ABI Broad industrial group (SIC C,E) employment _manufacturi ng employed_manufacturing 2008 ABI Broad industrial group (SIC D) sectoral_employment 6 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Layer Folder Sub Folder Layer name Date Source Data description employment _otherservices employed_other-services 2008 ABI Broad industrial group (SIC O,P,Q) employment _public_admi n-educationhealth employed_public_admin-education-health 2008 ABI Broad industrial group (SIC L,M,N) employment _transportcommunicati on employed_transport-communication 2008 ABI Broad industrial group (SIC I) self_emp_2001 self_emp 2001 2001 Census Self employment sole_traders_ptnrs sole_traders_ptnrs 2008 IDBR Sole traders & partnerships ttwas_2001 ttwas_2001 2001 ONS Travel to work areas ttwas_1991 ttwas_1991 1991 ONS Travel to work areas value_tourism value_tourism 2008 SW Toruism Tourism total spend net weekly_household_net_income 2007-2008 ONS Weekly income - net total weekly_household_tot_income 2007-2008 ONS Weekly income - total work_from_home 2001 2001 Census Works mainly from home 2004to2009 workplace_earnings_2004to2009 2004-2009 Annual Survey of Hours and Earnings Full time weekly workplace earnings 2009 workplace_earnings_2009 2009 Annual Survey of Hours and Earnings Full time weekly workplace earnings weekly_income work_from_home workplace_earnings 7 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Layer Folder housing natural_env places previous_fema qualifications Sub Folder Layer name Date Source Data description 2009_affordability_ratio 2009_affordability_ratio 2009 SW Councils Lower quartile affordability ratio 2009_median_house_price 2009_median_house_price 2009 SW Councils Median house price aonbs aonbs 2010 MAGIC Areas of Outstanding Natural Beauty national_parks national_parks 2010 MAGIC National Parks amt_classific amt_classific 2009 Association of Market Towns Classification of market towns brownfield brownfield 2010 HCA Brownfield land sites growth_points growth_points 2010 HCA Growth Points ldvs ldvs 2010 HCA Local Delivery Vehicles rateable_value rateable_value 2005 HCA Rateable value £ per m2 sscts sscts 2008 Draft SW RSS Strategically significant cities and towns housing_markets subregional_housing_markets 2004 DTZ Sub regional housing markets lga_zones lga_sub_regions 2007 LGA Thriving Local Communities, Mapping Sub Regions rda_character_zones rda_character_zones 2004 DTZ Spatial dynamics rda_functional_zones rda_functional_zones 2004 DTZ Spatial dynamics gcse_score gcse_score 2008-2009 ONS Average level 3 QCA point score per entry 8 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme retail Layer Folder Layer name Date Source Data description skills_no-qualification skills_no-qualification 2006-2008 Annual Population Survey No Qualification skills_nvq3+ skills_nvq3+ 2006-2008 Annual Population Survey NVQ3+ skills_nvq4+ skills_nvq4+ 2006-2008 Annual Population Survey NVQ4+ retail_catchments_1-2 SW_retail_catchments_1-2_district 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_local 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_major-city 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_major-district 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_major-regional 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_minor-district 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_regional 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-2_sub-regional 2010 Acxiom Primary and secondary retail catchments SW_retail_catchments_1-3_district 2010 Acxiom Primary and secondary retail catchments retail_catchments_1-3 Sub Folder 9 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Theme Social Layer Folder Sub Folder Layer name Date Source Data description SW_retail_catchments_1-3_local 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_major-city 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_major-district 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_major-regional 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_minor-district 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_regional 2010 Acxiom Primary, secondary and tertiary retail catchments SW_retail_catchments_1-3_sub-regional 2010 Acxiom Primary, secondary and tertiary retail catchments imd_score imd_score 2007 IMD Overall score claimant_count claimant_count 2010 Nomis Unemployment claimant count rate (% of working age population) claimants_LSOA claimant_LSOA 2010 Nomis Unemployment claimant count rate (% of working age population) out_of_work_benefits out_of_work_benefits 2009 DWP % of working age population claiming out of work benefits 10 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 2: Working with Layers 2.1 Make sure you have the project all_layers.qgs open. You will see all of the layers, grouped by theme, in the map legend down the left hand side. You can turn layers on and off by clicking the box next to them. Click on the + sign to show the key for each layer. You can also change the order of the layers by dragging and dropping them up and down the map legend. This is important as the order in which they appear in the map legend is the order in which they will appear on the displayed map in the map view window. 2.2 QGIS Window, overleaf, shows you what the different parts of the QGIS window are called. 2.3 Turn on the layer higher_tier from the base_layers theme . It will appear in the map view window. Then turn on pensionable_age from the demography theme. The layer higher_tier appears on top of pensionable_age so you can clearly see the boarders of the higher tier authorities. You can now: • move around the map using the • zoom in and out using the • identify the data 'under' the pointer using the icon for the active layer, which is the layer you currently have highlighted in the map legend. • view all of the data in the layer by using the attribute table for the active layer. icon. icons, or by rolling your mouse wheel. icon to display the 2.4 You can only have one active layer at once – this is the layer you are 'working' on, such as looking at data in it or changing its appearance or 'symbology' – see section 4. 2.5 The two base layers, 1_250000 and MiniScale, are different in that they are large background map images. Due to their size they significantly slow down turning layers on and off and moving around the map in QGIS. How much they slow things down will depend on the speed of your computer, but you may find it better to only turn them on when you need them rather than leaving them on all the time. QGIS Window. 11 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual Figure 2-2: QGIS window – example image Bar Legend – where the key for the map appears Bar View – where the map appears 12 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 3: Exporting maps 3.1 You have three options for exporting the map you are looking at: • click file, Save as image... and you will be able to save what you can see in the map view window – pick the image file type you want. • click the Quick Print icon , and you can give your map a title and name, and save it as an image (pick the image file type you want, such as .jpeg) which will include a legend, scale bar and north arrow. • you can produce a more sophisticated map using Print Composer – this is an advanced use, explained in the QGIS documentation. The main benefits are that you can adjust all elements of the map individually, but its more complex to use. 3.2 Once you have exported your map as an image you can import it into documents etc.. 3.3 All maps you export need to feature a licence label. This should appear automatically, but if it does not please ensure that this text appears immediately below any maps you use in publications: ‘Contains Ordnance Survey data © Crown copyright and database right 2010’. 13 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 4: Symbology 4.1 4.2 Symbology is the term for how the layer is displayed in the map. Right click in the map legend on the pensionable_age layer you already have open and select Properties. This will open all of the properties of the layer, one of which is Symbology. This is where the settings for the display of the layer are. You will see that for this layer: • the map is displaying five quantiles • which have a fill (shading) from dark purple to light pink, with no outline. • the layer is set to 40% transparency so that you can see other layers below it. You can change all of these settings to change what the layer looks like: • classification ¾ type of classification – mode ¾ number of classes ¾ click classify to apply • fill colours and patterns • outline type and colours • transparency. 4.3 One of the most useful things this allows you to do is to remove the colour from some of the classes, such as leaving only the highest classes coloured in so overlaying the layer with other layers is easier to interpret. There are examples of this in the other projects on the dvd-rom section 5. 4.4 The type of classification, and fill and outline options are changed via drop-down menus. The number of classes is changed by selecting a new number. Transparency is controlled via the slider, top right. 4.5 If you have changed the symbology of a layer and you close QGIS, when you re-open QGIS the original symbology will be displayed again. If you want to save your own symbology you need to save a new project – section 5. 14 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 5: Projects 5.1 In addition to the all_layers.qgs project there are also the following projects you can open, all in the \layers folder: t all_layers.qgs all fema layers empty_project.qgs for you to build your own project in Project_1.Structure_of_economy.qgs Structure of the economy Project_2.Enterprise_&_Innovation.qgs Enterprise & Innovation Project_3.Demography_&_Geography.qgs Demography & Geography Project_4.Labour_market.qgs Labour markets Project_5.Skills.qgs Skills Project_6.Economic_inclusion.qgs Economic & inclusion Project_7.Natural_envt.qgs Natural Environment Project_8.Transport.qgs Transport Project_9.Housing.qgs Housing Project_10.Future_change.qgs Future change Project_11.Place.qgs Place 5.2 You can open them in the same way: click on the icon, and then navigate to the projects folder on the dvd-rom and open the project you want. These projects will open with symbology altered to suit the purposes of each project. 5.3 In addition, you can save your own projects, both in order to save symbology you have altered, or to put together a new project from layers you chose to open. In both cases you will icon and then choosing a place to need to save a project file. You do this by clicking the save the project file. There are three important things you need to know here: • you cannot save the project file on the dvd, as its is read-only – you will have to save the project file on the hard drive of your computer – it is suggested that you save all project files in a single projects folder in a location you choose • the project file that you save does not contain all of the layers – it is a small file which records where to find the layers, and how to organise and symbolise them. This means that you will need to have the dvd in the drive to use the project (though if QGIS cannot find the layers for a project it will ask you to find them for it) • name your folders and projects without spaces in the name, e.g. new_project. 15 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 5.4 If you wish to put together a new project, you should first name and save it. Then you can add layers. There are two types of layer you might want to add: • vector layers are added with this icon layers • raster layers are added with this icon - the two basemaps 1_250000 and MiniScale are the only two raster layers. - most of the layers are vector 5.5 For both types of layer browse to find the layer you want on the dvd and open it. It will appear in the map legend and map view window. You can then work with the layers in your new project as described in section 2 above. 5.6 There are many project properties settings, but using these will suit most purposes: click file, project properties, and then select the Coordinate Reference System (CRS) tab, pick the British National Grid as the project CRS, and tick Enable 'on the fly' CRS transformation. 5.7 Don't forget to save your project before you exit QGIS so that you can start where you left off next time. 16 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 6: Advanced use 6.1 As QGIS is a fully-functional GIS system there are many things you can do in addition to those described above, should you wish to. The QGIS documentation, particularly the user manual, explain what is possible and how to do it. A copy of the user manual is in the user_manual folder on the dvd. This section gives a brief introduction to some more advanced features you might want to use. Selecting features and creating new layers 6.2 You can select features from within the active layer using the select tool - #, either by drawing a rectangle around them or selecting them one at a time with the ctrl key held down. You can then save your selection as a new layer by clicking Layer, Save selection as shapefile... . Shapefiles are the default form of layer for QGIS (and other GIS systems). 6.3 As for projects you will need to save your new layer on your hard drive, and do not use spaces in the folder or layer names. If you are prompted for a Coordinate Reference System (CRS) choose the British National Grid. 6.4 You can then open your new layer as for other layers, but will have to apply a fresh symbology to it. Using additional layers 6.5 QGIS will open a wide range of types of layer, so you can open additional layers from your own or other organisations and include then in your projects. Open them in the same way as for layers on the dvd-rom. 6.6 You will have to apply a fresh symbology for these layers. Installing GIS on your computer 6.7 The QGIS software loads from the dvd-rom. This means that it works more slowly that if it were installed on your computer. If you want to you can install QGIS on your computer and it will work faster. There are downloads for most operating systems (including Windows and Mac) here: http://www.qgis.org/en/download/current-software.html 6.8 You can then use the layers from the dvd, new layers you have created and load additional layers. Using the layers in other GIS systems 6.9 The layers on the dvd-rom are stored as shapefiles. Most GIS systems can open these, and so they can be opened from the dvd or copies taken and opened. However, the symbology QGIS applies to the layers will not 'transfer' into other GIS systems, as each system has its own approach to applying symbology. 17 Spatial Economic Analysis Tool South West (SEAT - SW) GIS Tool Guidance Manual 18
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