20PLC%2009

AN ANNUAL REPORT ON THE NORTH WEST BUSINESS REGION

Master 30/9/09 11:34 Page 1

To access our range of support, visit businesslink.gov.uk/northwest or call 0845 0066 888

We can help Building a business in uncertain economic times can be tough. Knowing where to turn for help isn’t always easy either. That’s why we offer a range of support to help Northwest companies emerge from the downturn stronger than before, including: Business Finance to support start-up expansion and growth plans. Innovation and Effi ciency to improve working processes and make more effi cient use of resources. Training and Development including supportto improve workforce and leadership skills.

Advice for new and high growth businesses, intensive assistance for new start-ups and potential high growth companies.

International Trade for expansion into overseas markets.

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for your business?

North West_PLC 30/9/09 11:32 Page 66

When the credit crunch started to bite at the start

of 2008, but the full ravages of the slowdown hadn’t,

it was common to hear a note of optimism around

the North West. Credit was tight and confidence was

creaking, but orders were stable.

There was a sense – captured by Robert Hough, one

of the region’s elder statesmen and the deputy chairman

of Peel and now chairman of the Northwest Regional

Development Agency – that the region was better placed

to cope with a downturn than, say, the South East with its

dependence on financial services and consumption.

Hough said: “The extremes are not as evident in

Manchester and the North West. Our economy is more

balanced, more diverse and more sustainable.”

At the same time Liverpool’s year as Capital of

Culture lifted the city and wider North West region,

and there’s no doubt that with the opening of the

Liverpool One retail complex and its new arena,

Liverpool is now fully embraced into the mainstream

UK economy. During the last recession that wasn’t so.

And Peel itself unveiled ambitious plans to develop

Liverpool’s docks, the waterfront, the Wirral and the

Ship Canal corridor between the city and Manchester.

Peel chairman John Whittaker has called for sweeping

planning reform to assist his ambitions.

Manchester has had to refocus its inward investment

efforts during the course of the recession. While Bank

of New York Mellon have become an entrenched part

of the city’s financial economy, relocations of major US

banks to the city have been put on hold. In the last ten

years the region has secured over 900 inward

investment projects, creating or safeguarding over

85,000 jobs.

Manchester also attracted 317, 000 sports fans to

the city during World Sport 08, which included top

Nor

th W

est p

lc

championships in squash, swimming and cycling.

For manufacturers in the region times have always

seemed tough – fuel prices, competition from China

and India, the high value of sterling or rising commodity

prices. But that has bred a fighting spirit that has

served the businesses well as the next challenges

emerged. Export sales are now more favourable.

In September 2009 UK Trade & Investment reported

that the North West has moved up in the league table

of exporting regions to 2nd in the UK, from 6th.

Elsewhere there are two sectors that effectively

underpin the economies of Lancashire and Cumbria,

defence and nuclear waste. Just under 3 per cent of

all knowledge-intensive private sector jobs and 12 per

cent of knowledge intensive production sector jobs

(nearly one job in eight) in the North West are directly

generated by BAE Systems for instance.

The building blocks of support for the recovery were

put into place in 2007 when the Northwest Regional

Development Agency launched the one-stop regional

Business Link Northwest. In its first year of operation,

over 86,000 Northwest businesses accessed the new

service, a figure which rose to more than 92,500 in

2008/09. This is a 30 per cent increase on the

previous service in 20005/06. During the first quarter

of 2009/10, the service had already engaged with

23,000 businesses.

By the end of 2009 the NWDA and the European

Regional Development Fund for the region will have

put in place over £200m of support. And while details

of a new long-term £140m Venture Capital Loan Fund

for the region are worked out, an interim fund has

brought forward £25m since December 2008.

Michael Taylor is editor of North West Business Insider

Sleeves rolled up, to get on with the jobThe North West is, like all regions, being tested by thedownturn but those left standing are still optimistic

CULTURE TRIUMPH Liverpool’s year as 2008 European Capital of Culture was a huge success

67

Editor Michael TaylorResearch Rob MayfieldDesign Damien WiehlProduction director Bob Stoney Commercial manager Lynn Barnett

Boulton House17-21 Chorlton StreetManchester M1 3HYTel: 0161 907 9711Fax: 0161 236 9862Email: [email protected]©©22000088 nneewwssccoo--iinnssiiddeerr No part of this publication may be reproduced or used in any form of advertising or promotion without written permission of the editor


WHITEHAVEN

BARROW-IN FURNESS

CARLISLE

LANCASTER

BURNLEYPRESTON

BLACKPOOL

BLACKBURN

BOLTONWIGAN

MANCHESTER

ROCHDALE

LIVERPOOL

RUNCORN

CHESTER

WARRINGTON

A595

A595

A591

A590

A683

A585

A583

A582

A565

A580

A670

A523

A537 A556

A530

A666

A596

A69

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A59

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A49

A56

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A54

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A51

A55

A41

A57

A6

A6

NORTH WEST68

POPULATION 2008 SSoouurrccee ONS

6,880,000GROSS VALUE ADDED 2007 SSoouurrccee ONS

£119,700,000,000AVERAGE HOUSE PRICE (EXCLUDES CUMBRIA) Q3 2008 SSoouurrccee HBOS

£121,311TOWN/CITY OFFICE RETAIL INDUSTRIAL

Blackpool £12.50 £120.00 £4.50

Carlisle £12.00 £125.00 £4.25

Lancaster £13.50 £60.00 £4.75

Liverpool £18.00 £360.00 £5.00

Manchester £28.50 £315.00 £5.50

Preston £14.50 £160.00 £4.95

SSoouurrccee Jones Lang LaSalle Q1 2009

PRIME RENTS £/sq ft

PERCENTAGE OF WORKINGAGE POPULATION WHO ARE ECONOMICALLY ACTIVE 2008

76.3%SSoouurrccee ONS


NORTH WEST 69

TURNOVER PREVIOUS PRE-TAX PREVIOUS PRE-TAX NUMBER PREVIOUS NUMBER YEARRANK COMPANY £M TURNOVER £M PROFIT £M PROFIT £M OF EMPLOYEES OF EMPLOYEES END

1 COOPERATIVE GROUP 9,361.4 6,453.0 115.9 150.6 80,658 76,710 Jan 09

2 AMEC 2,606.4 2,356.2 306.6 151.6 19,026 17,368 Dec 08

3 UNITED UTILITIES 2,362.9 2,323.0 478.3 676.0 8,909 16,868 Mar 08

4 EUROPEAN METAL RECYCLING 2,243.1 1,690.9 119.3 104.0 2,365 1,959 Dec 07

5 TOTE BOOKMAKERS 2,196.2 1,916.7 13.6 19.1 1,960 2,760 Mar 08

6 ICELAND FOODS 2,080.9 1,789.1 86.9 34.7 19,406 18,014 Mar 09

7 MARCH UK 1,795.9 1,765.7 (148.0) (37.9) 17,810 19,296 Apr 08

8 LOOKERS 1,775.9 1,680.0 (14.9) 23.0 6,073 5,203 Dec 08

9 GB OILS 1,128.2 443.5 10.2 2.5 1,254 665 Mar 08

10 DONE BROTHERS (CASH BETTING) 1,103.5 949.1 38.9 7.9 2,282 1,975 Mar 08

11 BIBBY LINE 1,034.1 618.7 23.0 59.3 4,911 4,160 Dec 08

12 MATALAN RETAIL 1,020.0 1,017.5 53.8 53.2 15,041 14,407 Feb 09

13 MARLOWE 979.2 978.4 75.6 57.8 3,877 4,252 Dec 07

14 PHOENIX HEALTHCARE DISTRIBUTION 949.2 985.9 26.3 20.5 1,430 1,463 Jan 08

15 PRINCES 946.4 1,110.5 38.0 40.2 3,248 3,295 Mar 08

16 BENTLEY MOTORS 941.4 911.7 93.4 69.1 3,726 3,907 Dec 07

17 MAKRO SELF SERVICE WHOLESALERS 924.1 1,037.5 (19.4) (3.5) 6,113 6,390 Dec 07

18 LEYLAND TRUCKS 885.0 513.8 25.2 20.2 1,140 998 Dec 08

19 PZ CUSSONS 838.1 660.9 84.4 76.5 8,596 8,697 May 09

20 TNT UK 828.7 810.5 45.5 69.3 11,069 10,899 Dec 08

21 OPAL TELECOM 767.9 696.9 40.1 (0.4) 974 714 Mar 08

22 JJB SPORTS 718.3 811.8 (189.2) 10.8 8,123 8,833 Jan 09

23 PILKINGTON AUTOMOTIVE 681.8 540.9 33.6 23.9 993 770 Mar 08

24 MBNA EUROPE BANK 671.0 - (44.0) 284.0 5,741 5,691 Dec 08

25 JD SPORTS FASHION 670.9 592.2 38.2 35.0 5,737 4,951 Jan 09

SSoouurrccee Insider Top 500 NNoottee Banks, building societies and insurance firms use a turnover equivalent

TOP NORTH WEST COMPANIES by turnover

1 Public admin, education & health

2 Banking, finance & insurance etc

3 Construction

4 Other services

5 Agriculture & fishing

NNoottee Sectors with the highest employment growth 2004-2008SSoouurrccee Insider research, ONS

EMPLOYMENT GROWTH by sector INCREASE IN NUMBEROF JOBS 2004-2008

1.3%WORKFORCE WITHHND/DEGREE OR HIGHER

25.6%

TOWN/CITY POPULATION

Greater Manchester 2,244,931

Liverpool 816,216

Birkenhead 319,675

Preston 264,601

Blackpool 261,088

Wigan 166,840

Warrington 158,195

Burnley/Nelson 149,796

Blackburn/Darwen 136,655

Southport/Formby 115,882

SSoouurrccee ONS

TOP URBAN CENTRES

London £30,385

South East £22,624

East of England £20,524

Scotland £19,152

South West £18,195

East Midlands £17,698

North West £17,433

West Midlands £17,161

Yorkshire & the Humber £16,880

Northern Ireland £16,170

North East £15,688

Wales £14,877

United Kingdom £19,956

NNoottee GVA=gross value added, GDP is equal to GVA plus taxes less subsidiesSSoouurrccee ONS

GVA PER HEAD 2007

NUMBER OFALL STUDENTS POSTGRADUATE UNDERGRADUATE HIGH† QUALITY

INSTITUTION 2007-08 STUDENTS 2007-08 STUDENTS 2007-08 RESEARCH DEPTS

The University of Manchester 37,360 10,515 26,845 53

The Manchester Metropolitan University 33,155 5,330 27,635 12

The University of Central Lancashire 31,245 3,925 27,325 8

Liverpool John Moores University 24,445 4,465 19,980 11

Edge Hill University 20,140 7,335 12,805 0

The University of Liverpool 19,380 2,970 16,410 37

The University of Salford 19,180 3,530 15,650 14

The University of Lancaster 13,720 3,495 10,230 21

University of Chester 13,515 2,975 10,540 3

University of Cumbria 12,045 2,165 9,875 1

The University of Bolton 8,590 1,465 6,380 4

SSoouurrccee HESA, RAE '08 NNoottee † Average research quality profile is 2* and above

TOP UNIVERSITIES by students


Chairman’s vision

Robert Hough, the new chairman of the Northwest

Regional Development Agency (NWDA), sums up

his ethos in just three words – purpose, pace and

delivery.

“Purpose is about defining and communicating

our objectives effectively; pace is about getting on

with them in a timely manner; and delivery means

ensuring we achieve what we set out to achieve,”

he explains.

Sat across the table at the NWDA's headquarters

in Warrington, the Urmston-born Hough is setting

out his vision for the future. A future in which the

Northwest's knowledge-led, low carbon economy

competes on a global level, supported by a modern,

well-trained labour force, thriving cities and towns

and vibrant rural communities.

It is a grand vision, but Hough has a track record

in turning big ideas into practical realities.

Born in the west Manchester suburb in 1945, he is

the classic local boy made good. After university,

he became a corporate lawyer, specialising in

mergers, acquisitions and flotations.

The most significant point in his career was

1974. Not only was it the year he became a Partner,

fulfilling every young lawyer's professional ambition,

but it was also the year he met a young commercial

property developer called John Whittaker.

Whittaker was helping to run his family's small,

fast growing business, Peel Holdings.

“John was referred to me by another Manchester

law firm. They couldn't advise him because they

were advising one of competitors, so they gave him

my name instead,” recalls Hough.

A fortuitous referral if ever there was one. It was to

be a career-changing development. Over the next

ten-to-fifteen years, his relationship with Whittaker

and Peel Holdings came to dominate his legal and

professional life. Peel grew from a medium-sized

commercial property developer to a major force

across several key industry sectors in the Northwest,

including regeneration, retail, transport, water and

waste. And Whittaker obviously had a lot of respect

for his legal advisor, because in 1987 he asked

Hough to become executive chairman of one of his

new acquisitions, the Manchester Ship Canal

Company.

It was Hough's first major move from the legal

world to the world of business. Lawyers are sometimes

accused of being too risk averse to be successful

businessmen, and Hough himself says it was

not a particularly easy move to make. But the Ship

Canal Company was no ordinary company. Peel's

acquisition of it had been viciously fought, and it

faced a slew of technical challenges which Hough's

legal background made him an ideal candidate to

resolve.

“In hindsight, I probably didn't fully realise the step

I was taking. But I relished the challenge, and there

were some circumstances and some natural

opportunities which suited my background as a

lawyer,” he says.

His success at Manchester Ship Canal Company

didn't go unnoticed, and more appointments across

the Peel group followed, as well as numerous roles

in other organisations, including the Manchester

Commonwealth Games, the New East Manchester

urban regeneration company, Cheshire Building

Society, the University of Manchester, Provident

Financial, Styles & Wood and Alfred McAlpine.

More than 20 years at Peel Holdings gives Robert Hough the solid business background necessary to drive forward the vitality ofEngland’s Northwest. The NWDA’s new chairman explains his ethosand ambitions for the region

NORTH WEST70


GreenshootsOver the past ten years, there has been a growing

emphasis on how businesses and public agencies can

tackle climate change with practical measures that can

reduce future effects.

The NWDA was the first such agency to develop a

Climate Change Action Plan, to ensure the region not

only reduces its impact on the environment but to also

capitalise on the business opportunities it presents.

Recognising that businesses have a key role to play

by adapting the ways in which they work, in 2001 the

Agency led the establishment of ENWORKS,

a programme offering specialist business support to

improve environmental performance, reduce waste,

improve productivity and increase cost savings.

To date, for every £1 the NWDA has invested in

ENWORKS’ Waste Minimisation Programme, £9 of cost

savings have been either implemented or identified.

Over 2,200 Northwest businesses have since

benefited from the specialist advice and support

offered, with £32 million cost savings identified.

ENWORKS has proved so successful that it has

been recognised as a model of best practice which

other regions are now replicating. A second phase of

the programme has since received support from the

Agency and the European Regional Development

Fund, which is set to assist a further 1,500 businesses

and achieve an additional £31 million in cost savings.

But there is also a strong emphasis in the region on

greening the land. In 2002 the region was home to

almost 20 per cent of the UK’s total amount of

brownfield land, which have proved to be business,

housing, employment and leisure opportunities.

In 2003, the NWDA invested in the first phase of

Newlands, a large-scale programme delivered in

conjunction with The Forestry Commission to transform

over 400 hectares of brownfield land across the

Mersey Belt.

The agency’s wider approach to tackle derelict land

for new and innovative uses has already brought

almost 13,000 hectares of land back into use, an area

larger than the city of Manchester. Once complete,

the Newlands programme will increase this total by a

further 920 hectares.

Environmental initiatives have created business opportunities

NORTH WEST 71

It is a long list, but one that has recently become

much, much shorter, as he resigned all his

directorships except one (non-executive director

of Peel Holdings) on August 15th this year.

Hough's numerous business roles have led to

questions over his impartiality with his role as

Chairman of the NWDA, but it is a charge he is

happy to challenge head on.

“There are rules and processes to govern those

situations where I may have a conflict, just as there

are for any member of any board. It's nothing new

for a member or Chairman of a board to have other

interests,” he says.

What is more, the very nature of his wide business

experience is precisely what makes him eligible for

the NWDA position.

“The role requires an understanding of how the

region is organised, how it works with the public and

third sectors and how it interfaces with the private

sector. It is precisely my diverse track record in

business which makes me a suitable candidate for

the job,” he says.

He is not wholly new to the Agency and the way it

works as he has been a board member since 2007,

long enough for him to formulate his own ideas and

policy priorities. His overarching aim, he says, is to

enable the region to build on its strengths; strengths

which it can export not only across the UK, but

across the world. Perhaps surprisingly for a former

stalwart of the professional services sector, it is the

traditional industrial strengths of the region that are

central to his vision of a globally competitive

Northwest.

“I believe we have a strong foundation in sectors

like advanced manufacturing – aerospace, chemicals,

pharmaceuticals, automotive, defence – and energy

– nuclear, wind, wave and tidal - to create high value

jobs and export our expertise around the world,”

he says.

At the same time, he emphasises the Agency's

on-going focus on revitalising the more deprived

areas of the North West, and on developing the skills

base and the business environment for industries to

flourish

His appointment as chairman, taking over from

Bryan Gray, runs from 2009 to December 2012. On

paper, three years may not seem like a long time to

make your mark on one of the most dynamic regions

in the country. But Hough is confident there is plenty

that can be achieved.

“There's more than enough work to get stuck into

and make real progress within three years, and I'm

confident we can do that. Although of course, there

may be unfinished business at the end of it,” he

says, enigmatically.


ManchesterManchester has led the way in urban regeneration

over the past decade, transforming the post-industrial

gloom that existed into a stylish, modern city of

growing international repute. The array of tall gleaming

buildings, coupled with elegant post-modern

architecture, have made Manchester a desirable place

to live, work and invest.

This is reflected in the Cushman & Wakefield UK

Cities Monitor 2008 where the city comes out as a

star performer in the UK as judged by businesses

across the country.

For instance it was voted the second best city to

invest in only behind London, while it was also voted

only second to London in terms of transport systems

and links. Manchester was also regarded as the UK

city doing most to promote itself, and the best in

which to locate a back office function.

Although the credit crunch has hampered efforts to

secure big financial services firms to the city in the

wake of the success in securing major investment

from the Bank of New York Mellon, Greater Manchester

remains the largest commercial finance centre outside

London in terms of venture capital and corporate

finance activity. The business and financial services

sector employs about 240,000 people, generating an

annual wealth of more than £9bn.

At the heart of this is the city’s Spinningfields

development, which has quickly established itself as a

hub for the sector. Firms such as the Royal Bank of

Scotland, Deloitte and Grant Thornton are located

there, while BDO Stoy Hayward, Barclays and Pinsent

Masons have taken space at the scheme’s 3 Hardman

Street building.

But sector strength isn’t restricted to financial

services, particularly in the surrounding city centre

boroughs. Creative and digital industries are expected

to be a major driver for growth in the coming years

Big on business, development and culture, the city offers the completepackage for those living, working and investing in the North West

UP AND ATOM Manchester can lay

claim to a number of

historic firsts. As well

as being the world’s

first industrialised city,

it was the place where

Ernest Rutherford first

split the atom, where

the first commercial

computer was developed

in 1948, and where

the first British plane was

designed and flown by

AV Roe in 1908.

MEET FREEThe University of

Manchester is the largest

single site university in

the UK. In 2007/08 it

had more than 40,000

students. It is ranked

40th best in the world.

RANK CITY

1 MANCHESTER

2 LONDON

3 BIRMINGHAM

4 LEEDS

5 READING

6 EDINBURGH

7 BRISTOL

=8 GLASGOW

=8 CARDIFF

10 SOUTHAMPTONSSoouurrccee UK Cities Monitor 2008, Cushman & Wakefield

BEST CITIES FOR A NEW HEADQUARTERS

NORTH WEST72


thanks to the ambitious 200-acre MediaCityUK

development at Salford Quays.

MediaCityUK, based at Salford Quays lead by Peel

Media, will be Europe's leading purpose-built creative

and media development. An innovative complex

designed to bring together companies from across the

sector, the project will establish an international hub

the digital media and creative industries, incorporating

studios, offices, apartments, retail and leisure.

As a key driver of economic growth, the NWDA is

one of the key public sector partners in the project and

played a crucial role in the BBC’s decision to relocate

five key departments to the Northwest. In addition, the

Agency has supported the MediaCityUK Infrastructure

Works project which includes; Pedestrian Link Bridge;

Main Piazza and Canopies; and a high tech media

wall. The Agency is also working with partners to

establish a Media Enterprise Centre, which will support

media skills development, stimulate research activities

and offer business accelerator space for cohabiting

businesses.

Further NWDA investment of £7.2 million is also

ensuring the delivery of an additional Metrolink rail

spur, providing vital connections between MediaCityUK

and the rest of Salford Quays, as well as a service

every 6 minutes to and from Manchester city centre.

MediaCityUK opens its doors in 2011and will be

home to more than 15,000 jobs, deliver £1 billion in

additional net value to the Northwest's economy over

5 years, and provided workspace for more than 1,100

creative and related businesses. Firmly establishing the

Northwest’s reputation as a world-class hub for media

and creative industries.

The project, being undertaken by Peel Media,

should ensure that Salford becomes home to a media

hub that will complement a growing cluster of creative

and digital organisations that inward investment

agency MIDAS estimates totals 5,800 businesses and

64,000 employees.

As a city on the move, Manchester has a logistics

sector comprising 2,600 companies which is worth

more than £2.5bn a year. Although Trafford Park is the

principal logistics hub in the region, Kingsway near

Rochdale will become a major rival.

Manchester also has a thriving biotech, medical

science and healthcare industries also represent about

75 per cent of the regional total. Companies based

in the Greater Manchester area include Avecia,

Renovo, Intercytex and with Astra Zeneca just down

the A34 in Cheshire - with key regional strengths

including tissue repair, wound healing, clinical trials,

neuroscience, bioinformatics, oncology, systems

biology and genomics.

The region’s student population reflects Greater

Manchester’s position as one of the largest learning

destinations in the UK, with four universities and one

university centre home to 100,000 students. By far

the largest of the four is the University of Manchester

with 40,000 students and 10,000 staff, making it the

biggest university in the UK bar the Open University.

According to UCAS, it is also the most popular and

the most targeted by the UK’s top graduate employers.

Research strength lies in its biomedical expertise,

while it remains at the forefront of discoveries in

science and engineering.

The University of Manchester Incubator Company

(UMIC) continues to support spin-out and start-up

businesses, including current tenants such as

pharmaceutical developer Renovo and biotechnology

company Epistem.

Links with business also remain strong. The

Manchester Business School’s MBA course is ranked

fourth best in the UK by the Financial Times and the

tenth best in Europe. The same survey also places

the doctoral programme as the best in the world.

In Salford, the city’s university has fast become a

key component of the wider regeneration plan,

forging close links with the MediaCityUK development

under way at Salford Quays. It estimates that £200m

will be invested in new facilities over the coming years,

with the £10m first phase of the Salford Innovation

Park initiative opening in March 2008.

UP AND AWAYManchester Airport

welcomes almost 22

million passengers each

year and employs around

19,000 people. It now

offers direct flights to 225

destinations worldwide

from over 100 airlines.

GAME ONThe 2002

Commonwealth Games

in Manchester was the

largest multi-sport

event ever to be held

in England, eclipsing

London’s 1948 Summer

Olympics in terms of

numbers of teams and

athletes participating.

NORTH WEST 73


For more information about

investing in St.Helens please contact the

St.Helens Business Location Team.

Tel: +44 (0)1744 742 041

Email: [email protected]

www.investinsthelens.com

Connectivity, Catchment, Cost.

M53

M62

M62

M62

M60

M61

M61

M66

M65

M58

Wirral

Chester

Runcorn

Salford

BoltonWigan

Southport

Preston

Lake District

Liverpool

M60

London

Glasgow

Cardiff

Leeds

Birmingham

M6

M6

M6

M57

Warrington

St.Helens M6

M6

M56

M56

M56

M53

M56

North Wales

Manchester

Direct access to the arterial M6 & M62

The most car-friendly place in the whole region*

Within 45 minutes of two, expanding, international airports and the UK's largest Freeport zone

Within an hour's drive of 4.3 million prospective employees & 6.8 million potential customers

A relatively low cost & cost-effective location in terms of premises, house prices, & labour

*2009 Virgin Money Survey


NORTH WEST 75

LiverpoolMore than a few eyebrows were raised when Liverpool

was awarded 2008 Capital of Culture status five years

ago, with many observers saying the city would fail to

deliver. But from the moment the well-received

opening ceremony swung into action, there has been

a buzz around the place that looks set to continue way

beyond its year in the spotlight.

Estimates indicate that more than ten million people

visited Liverpool during 2008, ranking it as the UK’s

third most popular city behind London and Edinburgh.

Just about every major tourist venue in the city saw

record visitor numbers, some virtually doubling their

usual figures. One of the big winners was the Tate

Liverpool gallery at Albert Dock, which saw visitor

numbers rise 200 per cent alone between June to

August thanks to its Gustav Klimt exhibition.

The tourism boom created as a result of Liverpool

08 has helped shield the city from the worst of the

economic downturn. The Merseyside Economic Review

2008, published by inward investment agency The

Mersey Partnership, backs this up, indicating that

productivity remains ahead of the UK average. Tourism

figures have far exceeded the expectations of the

Liverpool Culture Company while the economy has

enjoyed its tenth successive year of business growth.

One of the city’s most buoyant sectors has been

its life sciences and biotech sector, with more than

100 companies contributing £1bn to Merseyside’s

economy. A further 2,000 employees work in

biomedical and clinical research in universities, hospitals

and research institutes, while the region is also home

to the world leading Liverpool School of Tropical

Medicine and the National Biomanufacturing Centre.

MerseyBIO, a life sciences sector support organisation,

also aims to sustain growth by helping start-up

companies, commercialising life science technology

and nurturing a development-friendly infrastructure.

Creative and digital industries on Merseyside is a

Its year as Capital of Culture was a triumph that changed the views of a nation

FIRST FOR RETAIL Liverpool One

POWER OF THREELiverpool’s famous three

home-grown wealth

management firms -

Rathbones, Rensburg

Sheppards and Tilney -

had combined total

funds under manage-

ment of more than

£32bn in 2008.

ON THE PITCHLiverpool is the most

successful footballing city

in England. Between

them Liverpool and

Everton have won 27

League Championships,

five European Cups,

three UEFA cups, one

Cup Winners cup, 12 FA

Cups and six League

Cups.

PHOTO: MARK McNULTY

RANK CITY % INCREASE IN OCCUPATION COST

1 MOSCOW, RUSSIA 92.7

2 OSLO, NORWAY 57.6

3 WARSAW, POLAND 32.2

4 LIVERPOOL 30

5 PRAGUE, CZECH REPUBLIC 22.8

6 LONDON (WEST END) 22.5

7 ROME, ITALY 18.7

8 GOTHENBURG, SWEDEN 18.3

9 ATHENS, GREECE 17.6

10 BRISTOL 17.1SSoouurrccee CBRE Global Market Rents, May 2008

FASTEST GROWING OFFICE MARKETS (EUROPE)


justifiably confident sector, with 2,000 businesses

operating in the cluster, employing 16,000 people and

turning over £500m.

Despite the global financial turmoil, the city’s

business and professional services sector is also

holding its own. Barclays Wealth, the asset

management arm of the banking group, opened an

office in June 2008, while the likes of Handelsbanken,

Panmure Gordon and Lloyds TSB corporate have

recently set up operations in the city.

Traditional strengths also remain. The Port of

Liverpool is the largest freeport zone in the UK and

the top UK port for UK-US and UK-Canada container

trade. It currently handles about 34 million tonnes

each year, while plans for the first Post-Panamax

container terminal (which can house larger container

ships) on the UK’s West Coast have been approved.

After years of underinvestment in skills, the Liverpool

city region has started to close the education gap.

Examination results have caught up with the national

average, while 62 per cent of the working population

has skills at NVQ level two. However, about 6,000

16 to 18 year-olds in Merseyside are not in education,

work or training – 10.9 per cent compared with 7.7 per

cent nationally.

A report by Regeneris, on behalf of Liverpool Vision,

estimates the city’s knowledge quarter supports

14,000 jobs and adds £1bn to the Merseyside

economy, or 15 per cent of Liverpool’s GVA. This

buoyant higher education sector is attracting significant

levels of funding to support a world-class programme

of teaching and research developments.

At the University of Liverpool, £200m has been

allocated for a range of enhancements including the

regeneration of the Victoria Building as a public gallery

and museum space, the development of an Active

Learning Laboratory at the Faculty of Engineering and

a £20m Biomedical Research Centre, developing one

of the UK’s leading research specialisms in tackling

infectious disease.

At Liverpool John Moores University, work

continues on the £24m Academy of Art and Design,

complementing the Liverpool Science Park.

Meanwhile a number of major development projects

also came on stream during 2008 alongside the city’s

year in the cultural headlights. Two in particular stand

out. Firstly the completion of the £1bn Liverpool One

shopping centre, a key component in the city’s

regeneration efforts that reconnects the city centre with its

historic waterfront. And secondly came the opening of the

10,600-seater Echo Arena and its neighbouring convention

and conference centre, a stunning architectural addition to

the Mersey waterfront and one which will crucially now

bring in a whole new wave of business visitors.

Elsewhere and Peel Holdings, the owner of Mersey

Docks & Harbour Company and Liverpool John

Lennon Airport, is behind Liverpool Waters; a £5.5bn,

21m sq ft scheme that could result in a world-class

mixed-use iconic development of more than 50

buildings, many more than 50 storeys high.

The company has also unveiled a £4.5bn Wirral

Waters scheme.

The NWDA supported the creation of the Liverpool

Commercial District which has driven office development

and private sector investment in city centre property.

In 2007 more than half a million sq ft of space was let

to business clients, and by 2010 more than 1 million

sq ft of new property will have been completed in the

city. New developments and refurbishments include St

Paul’s Square, Exchange Flags and 20 Chapel Street.

Liverpool’s European Capital of Culture celebrations

focused international attention on its wealth of tourist

attractions. The magnificent Three Graces form part of

the city’s world heritage site, but visitors are equally

drawn to the birthplace of the Beatles and to its

football teams.

In 2008 the city staged more than 300 events

including dozens of national and international

premieres. The summer events programme, which

included The Tall Ships’ Races, Mathew Street Music

Festival, Go Superlambananas and La Machine also

attracted 3.5 million new visitors to the city.

Construction of the new Museum of Liverpool is

close to completion, alongside an extension to the

Leeds/Liverpool Canal. The link is expected to

generate 200,000 extra visitors annually, with an

additional tourism spend of £1.9 million, while the

Museum itself is expected to become a major visitor

attraction.

WATERFRONT REVIVAL The stunning new Echo Arena and Convention CentrePH

OTO

: MA

RK

McN

ULT

Y

TOTALLYTROPICALThe world’s first School

of Tropical Medicine was

opened in Liverpool in

1898 and discovered

that malaria could be

passed by mosquito bite.

More recently a new

£26m research building

has opened at the

school.

CONSIDERABLECOLLECTION The eight museums and

galleries that make up

National Museums

Liverpool possess the

greatest collection of

artefacts, paintings,

specimens and objects

collectively held under

single ownership in the

country.

MAKING THE GRADEThe city has the biggest

collection of Grade One

listed buildings outside

London.

NORTH WEST76


NORTH WEST 77

Key projects in Blackpool, Preston and Lancaster arechanging the face of Lancashire’s roses

Lancashire district with an attractive civic and cultural quarter.

Muse Developments appointed HOW Planning

in October 2008 to act as lead planning and

environmental consultant, which will pave the way for

a detailed planning application.

An £85m upgrade and possible extension of the

town’s antiquated tram system is also a priority, while

construction is under way on the £10m university-style

higher education campus at Blackpool & The Fylde

College, designed to offer new teaching and learning

provision aligned with growth industry sectors.

East along the M55 from Blackpool and Preston is

getting its act together to compete with Manchester

and Liverpool. Preston is mounting a serious challenge

to the big two with its Tithebarn scheme – a £700m

project to replace the bus station and the surrounding

buildings with top-class architecture. A planning appli-

cation from property firms Grosvenor and Lend Lease

was submitted in 2008 with a start date of 2010.

One of the city’s successful business sectors is

aerospace. BAE Systems leads the way with sites at

nearby Warton and Samlesbury, near Blackburn. Its

military aircraft operations in the county represent the

hub of a huge regional aerospace sector with a

turnover of £6bn, 70 per cent of which is exported.

Other economic drivers include chemicals, the chemical

products industry and high-end manufacturing.

Higher education is provided for by the University

of Central Lancashire, which has grown into one of

the largest new universities with 34,000 students

and 2,000 staff. Its major strength is attracting

non-traditional students into higher education.

Think of Lancaster and you might not immediately

think of its academic credentials beyond its famous

grammar school, but they are rising fast.

Lancaster University, situated a few miles to the

south of the city and easily recognisable from the M6,

is at the forefront of upskilling the region. The university

has more than 9,000 students and has won international

recognition for the quality of its teaching and research.

As anyone driving north will testify, the campus has

also itself grown significantly in recent years.

Ranked as one of the UK’s top dozen leading

research universities, it now has a world-class

leadership centre and business school. Key knowledge

transfer projects include the Lancaster Environment

Centre and InfoLab21.

Meanwhile the city’s historic town centre has an

appealing mix of old and modern, and looks set to

boost its retail offer much further.

In 2008 £150m plans by developer Centros to

construct a new retail area anchored by a 97,000 sq ft

Debenhams store, together with space for public open

space, cultural buildings, cafes, offices and housing

were approved.

Blackpool has suffered more than most in recent

years. After failing in its bid to land the licence for

the UK’s first supercasino and the associated wealth

of riches, the town’s regeneration efforts were

hampered further by the Big Lottery Living Landmarks’

decision not to grant the People’s Playground scheme

£25m of funding.

But its resilient approach to regeneration is starting

to pay dividends, despite the setbacks. Under the

watchful eye of urban regeneration company

ReBlackpool, now chaired by highly respected

Manchester City Council chief executive Sir Howard

Bernstein and supported on the board by the NWDA’s

chief executive Steve Broomhead, several projects are

coming to fruition including the £220m Talbot Gateway

scheme.

The NWDA itself has provided a range of

complementary measures to attract investment and

increase visitor numbers to the resort. An £8m

investment has secured the Second Gate site for

comprehensive redevelopment for mixed-use, including

the site for Blackpool and the Fylde further education

college, while almost £11m of NWDA and ERDF

investment has paved the way for the remodelling of

the Central Seafront and the creation of a Blackpool

Tower Festival Headland, designed to accommodate

a diverse range of events and up to 20,000 people.

The development aims to transform the area around

Blackpool North railway station into a new business

SEASIDE RIVAL Talbot Gateway


NORTH WEST78

A new university, plans to develop air linksand investment in industry have been vitalCumbria

Carlisle is a well connected city. It is adjacent to the

M6 and with a rail station on the West Coast mainline.

Plans are also in place to develop Carlisle’s air links.

Despite Carlisle Airport owner Stobart Air withdrawing

its original proposals in June 2008 after a public

inquiry, plans for a scaled version of the £35m

development emerged in October.

But the city characterised by high employment and

low wages meaning it lacks strengths in higher value

sectors. Where it is strong - in food production, retail,

transport and services, while its tourism business is

valued at an estimated £120m - it is very strong, but

the key issue is skills.

In 2007 Carlisle became a university city, which

is hoped will raise aspirations and skills in a city that

lags behind the North West and UK average.

Improving the provision of Higher Education in the

region is essential if the North West is to attract and

retain a skilled pool of graduates. In Cumbria, a limited

provision of Higher Education opportunities was a key

issue, particularly in the challenge of moving its

economy towards higher value employment and

encouraging graduates to remain in Cumbria.

The NWDA took an active role with partners to address

this, and since 2007 has invested £36 million to

support the creation and development of a new

university, linking St. Martins College, Cumbria Institute

of the Arts in Carlisle, and two of the Cumbrian

campuses of the University of Central Lancashire.

Recruiting 28,000 students by 2017 and adding £82

million to the regional economy over the same period,

the Agency’s supporting role and funding has been

instrumental in transforming the education landscape

of Cumbria and driving young people’s progression

from Further to Higher Education.

A world pioneer of nuclear energy, the North West is

home to one of the world’s largest concentrations of

nuclear facilities and expertise. With West Cumbria

employing a quarter of the UK’s total nuclear workforce,

the area was the natural location for the Nuclear

Decommissioning Authority (NDA), created by the

Government in 2004 as well as being Britain’s Energy

Coast, with a mix of nuclear and renewable energy.

To ensure the region capitalised on the major

opportunities this presented the region to remain at the

forefront of nuclear expertise, the NWDA led a major

drive to prepare the groundwork for the National Skills

Academy for Nuclear, based in Cumbria.

The facility is delivering a national framework for

education, training and skills across the sector. Since

its launch in 2008, the Academy is already having a

significant impact across the sector, having introduced

key industry training standards and developing and

delivering foundation degrees and almost 500 National

Vocational Qualifications to date.

Working closely with the NDA, the NWDA provided

£6 million investment for the Academy’s flagship arm,

the £20 million Energus facility. Completed in 2009,

the facility has already levered in £9 million public and

private sector investment and will play a vital role in

attracting and retaining skilled young people.

A large effort is also put into support for the defence

industry, vital to the prosperity of Barrow-in-Furness.

This is important during lean times and investment of

£430,000 towards a wider support package for skills in

submarine construction was put in place by the NWDA

to help Furness College broker a specialist training

programme. As a direct result of the support, the

biggest employer in the town, BAE Systems, rapidly

increased productivity on the £3 billion Astute

submarine project, reducing its overheads by about a

quarter in under 3 years. As a result, the Ministry of

Defence increased its order from 1 to 3 submarines,

safeguarding 850 specialist jobs for the area,

which has developed a strng global reputation for

engineering expertise.

CATERING FOR ALL TASTES Carlisle’s continental market


NORTH WEST 79

Daresbury laboratory, in the heart ofCheshire, is a jewel in the regional crownCheshire

Following the loss of the major £600 million ‘next

generation light source’ project from Daresbury to Oxford

in 1999, the North West faced a serious threat to future

investment in its science and innovation capability, and

faced up to the possibility of closing the site.

But, fast forward ten years and by September 2009

Daresbury Science & Innovation Campus (Daresbury

SIC) won a prestigious United Kingdom Science Park

Association (UKSPA) Award in September at a

glittering award ceremony in the Museum of Science

& Industry, Manchester.

The long and winding road from oblivion to success

has been marked by substantial challenges and it is

no exaggeration to say that the North West region has

been steadfast in its support for a regional jewel.

Going back to 2002 the NWDA provided a

comprehensive and proactive response to the loss of

the light source project through a number of initiatives,

including the creation of the first regional Science

Council in the country. Publication of a Regional

Science Strategy in 2002 (updated in 2007) was

followed by a succession of projects including the

launch of the Northwest Science Fund.

Now, Daresbury Science & Innovation Campus,

home to the ground-breaking Daresbury Laboratory,

the Cockcroft Institute (the National Centre for

Accelerator Science) as well as nearly 100 high-tech

companies in Daresbury Innovation Centre, is a

state-of-the-art facility designed to attract science

and technology based businesses to the region.

The NWDA has moved forward with plans to build

a new 35,000 sq ft grow-on facility on Campus, for

companies progressing from the Innovation Centre and

for larger more established companies from elsewhere.

The Campus, which has since been identified by

Government as one of two national strategic science sites

in the UK, is now moving into a new and exciting phase

to fully develop its potential over the next 15-20 years.

The Daresbury Campus was recognised as the most

Outstanding Science Park 2009 – an award for the

Science Park seen to be ‘setting the pace’ and making

the most significant contribution to the exploitation of

the knowledge base. With substantial investment from

the Northwest Regional Development Agency (NWDA),

Daresbury SIC was established to help drive regional

and national competitiveness in science and innovation,

and is one of only two Government-funded science

and innovation campuses in the UK; other key

stakeholders are the Science and Technology Facilities

Council (STFC), Halton Borough Council and the

universities of Lancaster, Liverpool and Manchester.

Daresbury SIC is now seen as a major driver of the

regional economy, with over £20m of investment being

secured to date by the Campus’ tenant companies.

The Campus is now in the process of identifying a

private sector partner to develop up to 1 million square

feet of space for business, research and innovation,

providing facilities management and other services to

the Campus and realising commercial services and

investment opportunities with the Campus companies.

The process will see three of those public sector

stakeholders - the NWDA, STFC and Halton Borough

Council - enter a joint venture with a private sector

business or consortium. This will continue to bring

together businesses, universities, research organisations

and industrial partners with the business support and

investor community, to create up to 10,000 jobs.

A partner will be selected early in 2010.

DARESBURY setting the pace


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