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Leicestershire’s Rural Economy Executive Summary
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Foreword The Leicestershire Rural Partnership (LRP) is committed to ensuring that the quality of life for those living and working in rural areas is constantly improved. The LRP has a proven track record for identifying and addressing key issues which are facing our rural communities, businesses, and the countryside. Rural areas across the country are facing new challenges and opportunities as a result of pressures for the strong demand for housing, increasing traffic on rural roads, and the declining importance of traditional industries such as agriculture. With this in mind, the LRP in conjunction with Leicester Shire Economic Partnership and Leicester Shire Intelligence sought consultants to undertake an in-depth analysis of the Rural Economy in Leicestershire. The study will be used to shape future policy, strategy and delivery programmes and indicate new areas of research which the LRP and its partners need to address. I am pleased to present to you this summary which provides an overview of the key findings and recommendations brought to light through the baseline ‘Rural Economy’ report. This document highlights the key recommendations arising from a detailed SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Leicestershire’s rural economy. In addition, the summary has been shaped and informed by a broad review of national, regional and local policy documents which are driving rural delivery, including, the National Rural Strategy 2004, the East Midlands Rural Delivery Framework, Regional Economic Strategy, the UK Sustainable Farming and Foods Strategy, as well as key sub-regional strategic documents.
The future and focus for rural development has been at a cross roads for some time. Since Lord Haskins reported to the Government in 2003, there has been a variety of changes to key organisations and strategic documents that have made this an appropriate and necessary time to take stock, assess, and prioritise for the future. This summary will prove to be a significant driver for implementing the 2026 vision for rural Leicestershire, and encourage everyone to look forward, and recognise the opportunities that rural areas provide. Finally, the report recommends a move towards tailoring future rural business support and grant programmes to reflect the differing needs and characteristics of the North/South and East/West areas of the County. If the 2026 vision for rural Leicestershire is to be achieved, existing and future interventions need to be developed to target programmes and resources, more effectively. A separate review of Rural Transport in Leicestershire has indicated a similar approach to delivery. Future programmes need to better consider and address cross-cutting issues such as rural transport, if the ‘sustainable community’ vision is to be realised.
Mrs Lesley Pendleton
Chairman of Leicestershire Rural Partnership
Executive Summary Leicestershire’s Rural Economy
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Contents Introduction 4 Vision 5 Recommendations 6 SWOT Analysis 13 Appendices
A: Maps 18
B: Headline Statistical Analysis 19
C: Key Statistics Graphs and Tables 22
Produced by Leicester Shire Intelligence Based on the study by Land Use Consultants Ltd Ashby Castle
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Introduction This executive summary is based on a detailed report produced by Land Use Consultants Ltd who were commissioned by Leicester Shire Intelligence (LSI) and Leicestershire County Council on behalf of the Leicestershire Rural Partnership (LRP). The study has established a detailed and robust baseline of evidence on Leicestershire’s rural economy and provides recommendations for intervention which will be very valuable to local policy and decision makers alike to influence, inform, identify and involve. Local agencies should align their work to develop a coordinated and integrated approach to tackle the issues raised here. Leicestershire’s Rural Economy should be read alongside the recently completed Leicestershire Rural Transport Study as both consider closely interrelated issues.
Both reports are available to download from the LSI website www.lsint.info or the Rural Partnership website www.oakleaves.org.uk Purpose The purpose of the study was to “provide a comprehensive and objective review of the strengths, weaknesses, threats and opportunities facing the Leicestershire rural economy, examining where we are now and where we want to be in 20 years time”. Next steps • The LRP will use this research to provide part of the basis for a
2026 rural Leicestershire Vision Implementation Plan • There is commitment to review this study and update it every 5
years to evaluate progress towards the 2026 vision and monitor intervention.
Executive Summary Leicestershire’s Rural Economy
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Vision 2026 The vision for rural Leicestershire in 2026 has been developed and adopted by the Leicestershire Rural Partnership. In 2026 rural Leicestershire will be made up of thriving and sustainable communities, towns and villages, each of which will have at least one key community resource (e.g. school, church, pub, shop, post office, village hall). It will be recognised locally, regionally, nationally and internationally for its;
1. Thriving communities that enjoy a high qualify of life, have a broad social balance, and are empowered to influence and manage their own future, supported by an active voluntary and community sector.
2. Economic activity that plays to the County’s strengths, including its location, heritage, culture, specialist
products and services, leisure, tourism, and environment. 3. Profitable and entrepreneurial businesses trading in strong local supply chains and networks, maximising
the value of their products and services. 4. Access to services and facilities (good quality health services, housing, education, and employment
opportunities), supported by high quality transport and information services. 5. Diverse and well-managed countryside that is valued and accessed by all. Towns and villages that provide
a high quality sense of place for residents, which play to their cultural, heritage and environment strengths. 6. Ability to develop skills (through universities, colleges, schools, employers and the voluntary sector) that
meet the needs of local people, communities and businesses.
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Recommendations These recommendations are based on the Leicestershire Rural Economy SWOT analysis, the factual analysis of data and statistical information and the 20 year vision. The recommendations are for the Leicestershire Rural Partnership and the Leicester Shire Economic Partnership to consider. There are a number of key issues and actions that should receive attention in relation to the sustainable development of the County’s rural economy and the attainment of the vision by 2026. These key areas are:
1. Improve the performance of rural businesses, through high quality advice and skills
2. Advance the role of key ‘embedded’ sectors (transport and
warehousing, tourism and hospitality, food and drink, and the land-based industries)
3. Encourage the location and growth of knowledge-based and
creative industries 4. Support and develop the employment and service role of
market towns and other rural settlements 5. Enhance the natural environment and increase the recognition
of the value of the environment as an asset to the rural economy
6. Mitigate and adapt to the impact of climate change 7. Rural proofing1 of strategic policy development
1 Rural proofing means that as policies are developed, policy makers systematically consider whether their policy is likely to have a different impact in rural areas
There are also some overarching issues from the study. These are:
• Different types of rural economy • Broad and mobile sub-regional economy • Increased access to and use of ICT • Home or close-to-home working • Funding of rural programmes • Benefits of diverse communities • Greater cultural exchange
Overarching Issues • The County consists of two quite different types of rural
economy (see Map 1). The data has shown that there are differences between the districts and that there are more pockets of deprivation in rural areas of Charnwood and North West Leicestershire and higher levels of affluence in Harborough, and to a lesser extent, Melton districts. Therefore, these areas may require different approaches, with perhaps more active policy interventions required in the ‘regenerative’ rural economy in the west of the county. The rural economy in south and east Leicestershire has “diversification opportunities” that may be encouraged by softer policy interventions among rural communities that encourage new activities and promote sustainable local businesses.
• Leicestershire’s rural residents are very fluid in terms of their
choice of employment location. Some towns are important for local employment but it does not mean that they are focal centres in definable employment ‘hinterlands’. Businesses in Leicestershire’s towns and countryside exist within a broad and mobile sub-regional economy.
Executive Summary Leicestershire’s Rural Economy
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North-West Area Characteristics
• Rural population* approx. 124,000 (63% of Leicestershire’s rural population) • More densely populated rural areas • Closer proximity between rural areas and urban centres • Former coal mining ‘regenerative’ rural economy • More pockets of rural deprivation • Higher levels of
people with no qualifications • Higher levels of rural
unemployment • Higher proportions of
Residents working in semi- routine or routine occupations
• Lower significance of farming to land use and employment • Higher relative importance of tourism • Rural economy closer in character to its urban areas
than to the rural economy in the east of the County
* as defined by the urban/rural classification adopted by Defra
South-East Area Characteristics
• Rural population* approx. 74,000 (37% of Leicestershire’s rural population)
• Less densely populated rural areas.
Dispersed settlement pattern.
• More rural in terms of area, population coverage and relative importance of land-based sectors
• Highly mobile rural
workforce
• High levels of employment, especially self-employment
• Higher levels of home working
• Higher levels of affluence
• Higher levels of car ownership
• Lower proportions of people with
no qualifications and higher proportions of people with level 4/5 qualifications
• Poorly serviced by public transport • Deprivation difficult to identify • Higher proportion of people in managerial and
professional occupations • High cost of housing
Map 1: Leicestershire Rural Economy: North-West / South-East Split
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• While public policy may wish to promote more self-sufficient ‘sustainable’ communities, embedded local supply chains and co-located clusters of like-minded businesses, interventions must take account of the strong economic and social drivers that have led to current patterns. Macro-policy has effectively encouraged households to build in greater and greater mobility into the patterns of their lives.
• Cross boundary interactions both within the sub-region and with
areas outside of Leicestershire are strong.
• Levels of home working are already high in Leicestershire and this suggests that emphasis should be placed on encouraging higher levels of home, or close to home, working (for instance through business centres for peripatetic employees) as well as subsidising public transport.
• Funding of rural programmes from bodies such as emda
needs to dovetail closely with the work of Natural England and funding from these bodies needs to be sufficiently long-term to ensure continuity of delivery.
• More prosperous rural communities are seen to prefer
developments of larger more expensive housing and oppose cheaper developments. There is, therefore, a need to encourage rural residents to recognise the benefits of a socially diverse community.
• The strong rural culture in the county and the vibrant ethnic
culture present in the City and many of the larger towns have much to offer one another both socially and economically. There is scope for greater cultural exchange with the arts and
education and development of equestrian sports taking the lead in bringing this to communities.
Executive Summary Leicestershire’s Rural Economy
Market Harborough
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Key Recommendations 1. Improve the performance of rural businesses, through high quality advice and skills 1.1 Improve and increase advice and training on ICT use 1.2 Improve general management skills 1.3 Improve technological and innovation skills (to be able to add
value to products and services) 1.4 Improve rural craft, management and recreation skills 1.5 Improve further education and vocational skills training to
meet the needs of rural businesses, while increasing the role the universities have in advancing technological research and innovation
1.6 Increased use of Access Centres for advice, job, career and childcare guidance and generic training on numeracy, literacy and ICT
1.7 Provide access to good quality business support 1.8 Regularly review appropriateness of advice and training
provided 1.9 Involve Sector Skills Councils in developing training provision
to make sure that it meets industry needs 1.10 Develop schemes to give advice to people thinking of starting
a business to encourage and promote business start-ups 1.11 Provide mentoring schemes for small businesses and new
start-ups and the provision of quality work spaces and studios to help retain new graduates and aid business survival
1.12 Take account of the likely increase in the number of non-traditional land managers in terms of the development of business support and advice, to make sure their needs are met
1.13 Develop transferable skills and the habit of life-long learning, as
employees in key sectors in rural areas tend to move frequently during their careers.
2. Advance the role of key ‘embedded’ sectors (transport and warehousing, tourism and hospitality, food and drink, and the land-based industries) Transport & Warehousing:
2.1 Develop access to flexible labour and to employment
opportunities 2.2 Promote the development of a flexible planning system to
enable business location near transport nodes 2.3 Promote the sector across the county. It is important for
North West Leicestershire and Hinckley & Bosworth districts but also the Melton and Harborough areas
2.4 Overcome issues including the perceptions of negative landscape impact and volumes of traffic generated. Develop a clearer policy
Tourism & Hospitality:
2.5 Develop the tourism offer to enhance the County’s
destinations and the way they are perceived by others. 2.6 Raise the quality and value of provision, incorporating
additional value into the visitor experience/offer 2.7 Raise standards of service 2.8 Promote links with the rural environment and cultural identity 2.9 Promote particular destination experiences such as the
National Forest rather than the county as a whole 2.10 Develop tailored policies to improve access to and from the
countryside, especially by public transport
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2.11 Make sure that visitors contribute to the area’s environmental management and to the communities and businesses that maintain them
2.12 Exploit the potential of the horse industry sector and sports tourism
2.13 Develop local offers that are distinctive and differentiate the product/service offer between different areas within Leicestershire, for example, as detailed in ‘Blueprints’ developed by Leicester Shire Promotions and the several destination management partnerships
2.14 Encourage and facilitate further responsible tourism and infrastructure development where emerging demand is identified
2.15 Encourage and promote an increased number of overnight stays within rural Leicestershire
Land-based Industries
2.16 Recognise the importance of environmental land management
in safeguarding the Leicestershire landscape 2.17 Increase the business skills (particularly marketing) of smaller
scale value-adding producers 2.18 Improve the availability of high quality market intelligence,
particularly in relation to the cost and availability of marketing, transport and retailing.
2.19 Use the Leicestershire food networks and the farmers markets to support the development of this sector
2.20 Encourage investment in abattoirs, sawmills and manufacturers producing grain and starch products (e.g. flour millers) which are needed to add value to local products.
2.21 Increase the opportunities provided by the processing of dairy and meat products to add value locally
2.22 Increase the use of locally sourced wood products (e.g. wood for fuel and building materials)
2.23 Take advantage of the commercial opportunities in the forestry sector which are likely to centre on high quality timbers sold on the basis of their local provenance and high quality.
2.24 Promote the wider public benefits to ‘multi-purpose’ forestry and woodland management.
2.25 Enhance the potential of the horse industry sector by encouraging changes in the horse industry that extend beyond the land-based sector and developing initiatives with stakeholders that promote its development
3. Encourage the location and growth of knowledge-based and creative industries 3.1 Develop high quality environment and working facilities to
encourage knowledge-based and creative industries to locate in rural areas.
3.2 Influence planning systems to encourage these companies to move to more remote or deprived rural areas
3.3 Develop a strong rationale for public sector support in these companies in rural areas
3.4 Develop rural ‘innovation parks’, especially where there is access to a highly skilled workforce. Research suggests that knowledge businesses will not be easily attracted away from urban centres where they are currently clustered. However, once a rural hub is created there is no reason why it shouldn’t grow.
3.5 Enhance the knowledge base of horse businesses while strengthening professional and training networks
Executive Summary Leicestershire’s Rural Economy
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4. Support and develop the employment and service role of market towns and other rural settlements 4.1 Change policy to reflect that market towns no longer
command a tightly defined hinterland or provide self-contained centres of employment. Larger urban areas (e.g. Leicester, Loughborough, Nottingham, Birmingham, Coventry, Derby, Corby, Nuneaton and Peterborough) are the dominant employment centres for rural residents
4.2 Identify and work to the strengths of each market town rather than a one-size-fits-all approach to market town policy
4.3 Discourage the increased use of cars in rural Leicestershire, for example by encouraging people to shop locally, will assist the sustainability of rural settlements and communities
4.4 Promote policies that encourage greater localisation of service use and employment
4.5 Discourage the notion of a strong urban/rural socio-economic division in rural Leicestershire - rural households frequently make up significant parts of their lifestyles and livelihoods in urban areas
4.6 Encourage the role that market towns have in providing local services and encouraging investment in the local economy
5. Enhance the natural environment and increase the recognition of the value of the environment as an asset to the rural economy 5.1 Develop policy to take account of the fact that Leicestershire’s
countryside is likely to change significantly in the next 20 years or so
5.2 Develop the potential of the under-valued economic asset of the environment
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plants for individual communities or groups of businesses 6.4 Explore the opportunity to exploit renewable energy sources
such as wind power 7. Rural proofing of strategic policy development Need to check that strategic policy development in rural areas contributes to the overall vision Does the policy:
7.1 Encourage the development of socially diverse rural
communities? 7.2 Promote economic activity that is based around raising quality
and value and environmental distinctiveness? 7.3 Help rural businesses form stronger trading relationships with
others in the area? 7.4 Provide the rural workforce with the skills they need to access
the developing sectors in their local economy? 7.5 Promote rural Leicestershire’s different landscapes and
settlements as places for high quality recreation and leisure? 7.6 Increase understanding and appreciation of the countryside
and changing need for management?
5.3 Promote specific areas such as Charnwood Forest as tranquil visitor destinations
5.4 Provide land-owners with the knowledge and skills for effective environmental management and ensure that they capture the greatest possible amount of subsidy
5.5 Recognise that the cultural and environmental character of rural areas is most clearly defined in the tourism and leisure offer
5.6 Improve the perception and understanding of how Leicestershire’s residents and visitors view our countryside
5.7 Develop mechanisms for channelling money from tourism and leisure back into supporting the maintenance of a high quality environment, e.g. visitor payback schemes
5.8 Explore opportunities in terms of ‘re-wilding’ areas of low productivity that may experience the withdrawal of agricultural management as a results of the reforms of the CAP, for example in areas in Charnwood. This would require high levels of consultation and public engagement
5.9 Develop and promote a more holistic and integrated approach to cultural, leisure, recreation, tourism and sport development and delivery within Leicestershire through encouraging partnership working as well as engaging with industry stakeholders
6. Mitigate and adapt to the impact of climate change 6.1 Develop policies to reduce car travel through the better
provision of public transport, car sharing and more local working
6.2 Promote woodland planting and growing or harvesting sources of renewable energy
6.3 Develop a programme of local scale combined heat and power
Executive Summary Leicestershire’s Rural Economy
Melton’s Farmers Market
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Leicestershire Rural Economy SWOT Analysis This SWOT analysis is based on the empirical evidence from the main study and feedback and consultation with key stakeholders. The SWOT has been divided into the subheadings used in the vision and the key issues for partners to consider have been highlighted in bold. Strengths • The Leicestershire Rural Partnership has an established track
record in addressing rural issues Communities • Relatively prosperous communities with low overall levels of
deprivation Economic Activity • High value food and drink sector • Strong horse industry sector with activities that closely link to
rural communities Businesses • Position of the County at the centre of the national
transport infrastructure – motorway, rail and air - with easy access to London and Europe. The location of Nottingham East Midlands Airport (NEMA) at Castle Donington. Transport and warehousing are key sectors
Access to Services • Highly mobile rural workforce but also relatively high levels of
home working especially in the rural areas of Harborough and Melton districts
• A range of accessible and attractive market towns and rural centres which are providers of key services
• Highly rated local health service Countryside • High quality and varied natural environment • A highly valued and diverse historic environment. Environmental
quality is closely bound up with the County’s cultural heritage. Leicestershire has many attractive villages, historic buildings and ancient monuments with interesting histories.
• Rural environment a draw for tourism and recreation which is another key sector of the rural economy – The National Forest is an exemplar at a national scale
• Relatively high quality agricultural land Skills • Relatively high levels of educational qualifications
especially in the East of the County. Almost a quarter of residents in rural areas have degree level qualifications
• Specialist training for the land-based sectors available from Brooksby Melton College
• Three world class universities within Leicestershire and a new veterinary school will be located at Sutton Bonington, close to the Leicestershire border
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Access to Services • Many small rural settlements particularly in the east of
the county are poorly served by public transport • Isolation is a key problem for those without access to a
car, and particularly for the disadvantaged Countryside • Low woodland cover and low levels of designated
landscapes/sites give rise to the perception of a bland rural environment
• The county’s countryside can be considered as an under-valued feature/asset
• Only 23% of Leicestershire’s Sites of Special Scientific Interest (SSSI) area is considered to be in favourable condition for nature conservation. Lack of suitable management is the main problem
Skills • Skills shortages constraining the development of several
sectors of the economy including agriculture and environmental management by non-farming landowners; transport and storage; horse industry; and tourism
• Higher proportions of people with no qualifications in the west of the county and in the south-west in the areas surrounding Coalville and Hinckley
Weaknesses Communities • Deprivation in some rural communities is widely
dispersed and is often difficult to identify • High cost of housing for first time buyers and young
families and lack of affordable properties to rent, tending to exclude them from many rural communities
• A poor image and identify for the sub-region and hence a weak sense of ‘belonging’ for communities
• Lack of recreational facilities for young people • Lack of community engagement and social capital in some
commuter settlements • More people travel further distances to work in rural
Leicestershire than the average for the East Midlands Economic Activity • Rural tourism dominated by day trips and relatively low
visitor spend • The value of primary production from land-based products is
modest and profitability is low • Fragmented horse industry sector interests and specialities • In general market towns have relatively weak employment roles Businesses • Lack of accessible infrastructure for small farm
businesses to add value to their products, e.g. abattoirs, sawmills, dairies or flour mills
Executive Summary Leicestershire’s Rural Economy
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development opportunities offered by the expansion of operations at NEMA and the overheating of the South East economy and the influence of the expanding Milton Keynes and South Northamptonshire (MKSN) Growth Area, which should be embraced
• Engaging local planning authorities to overcome barriers to development in rural areas
• Location continues to be an advantage and opportunity for the distribution and communications sectors
• Encouraging knowledge based employers to locate in rural areas where there is currently under-representation
• Highly skilled and well qualified workforce and the growth potential of Knowledge-based industries which have access to a broad range of markets, both domestic and international
• City/County interactions. Develop urban/rural networks and interrelationships
• Develop the large number of day visitors, significant business tourism and conference sector. Increase the number of overnight stays and visitor spend
• Develop sports tourism and recreation (utilising the links with Loughborough University) as a joined up, coherent offer across Leicestershire
Businesses • Develop Leicestershire’s good reputation for high
quality speciality foods. • Local food culture (old and new, e.g. pork pies and curries) and
food heritage. • Local food procurement for public sector organisations e.g.
schools and hospitals
Opportunities Communities • Cascade the cultural diversity present in the urban areas
into rural areas to encourage more socially diverse and sustainable rural communities
• An active voluntary sector and high levels of community engagement and participation in many traditional rural communities
• Engage local schoolchildren in countryside issues through education and learning. Link with the national curriculum
Economic Activity • Leicestershire’s central location in terms of access to
consumers (e.g. tourism opportunities) and the possibility of capitalising on the buoyant economy of London, the South East and also Europe (via NEMA and the rail network). There will be
Kilby Village
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Countryside • Raise the profile of the County’s tranquil and varied rural
environment and cultural heritage to local residents and visitors alike, and develop this undervalued asset
• Promote Leicestershire’s rural character which is currently less well appreciated than other rural areas in the East Midlands
• Development of disused railways, canals and other industrial heritage as a tourism asset and link these to the relatively dense network of public rights of way that already exists – few areas of the Leicestershire countryside are inaccessible to the public
• Climate change – increases in temperatures and winter rainfall – could enable farmers to grow new crops such as grain, maize, sunflowers and vines
Skills • Utilisation of ICT and new ways of working and providing
training and skills, e.g. in the rural knowledge economy or less accessible parts of the county
• Proximity to three world class universities, a strong FE sector and a new veterinary college
• Increase consumer awareness and demand for products that have a strong local provenance, e.g. through Leicestershire food networks
• Develop the National Forest, Conkers and other visitor destination experiences
• Adding value to local products • Connections should be made between large food processors and
local farmers, with ingredients being sourced locally. For example by improving supply chain links between the ethnic food manufacturers in Leicester City and local farmers and growers
• The buoyant market for rural properties will see an increase in the number of small holdings managed primarily for recreation rather than commercial objectives which will provide the opportunity to develop niche markets and specialist products, e.g. food production, the craft industry, tourism and recreation.
• Increasing affluence among Leicestershire’s residents creating consumer demand for high value added, high quality, locally sourced products
• Diversification of farms and the business opportunities available outside of agriculture
• Potential for further development of the local horse industry sector by strengthening business performance
• Transfer of CAP funds to broader Rural Development Programmes
Access to Services • Develop and support rural communities to add value and
innovate in how services are provided across rural areas • Promote and encourage the development and use of local rural
services
Executive Summary Leicestershire’s Rural Economy
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Access to Services • Current low levels of use may result in cuts in public transport
provision in rural areas. Currently difficult to justify funding on economic grounds
Countryside • Withdrawal of agricultural management of some areas
resulting in a changed landscape character and potentially the loss of high quality landscape that the tourism and leisure sector relies on
• Climate change. Uncertainty over impacts makes planning difficult. Possible impacts include, change in habitat, soil erosion, pressure on water resources and reduction in agricultural productivity
• Possible negative impact of the transport and warehousing sector on the county’s rural landscape
Skills • Low wage sectors fail to attract suitably skilled workforce,
reducing the ability of businesses to add value and differentiate themselves
Threats • Short time scales associated with public funding creates
lack of continuity in the delivery of programmes • Changes to the Countryside Agency and other bodies Communities • High cost of rural housing prevents development of
socially diverse ‘balanced’ communities. Property prices out of the reach of many young and first time buyers
• NIMBYism2 of local communities to new development and affordable housing projects
• Highly mobile workforce and long commuting distances at odds with socially balanced communities and local supply chains
• Whether villages and smaller towns can accommodate national requirements for new dwellings without a major change in their character
• High average levels of affluence may be masking pockets of deprivation
• An aging population. This is an issue for both urban and rural areas
Economic Activity • The current planning system and policies constrain
business development Businesses • Impact of supermarkets on local producers and markets • Cost and supply of fuel and energy 2 NIMBY - someone who objects to siting something in their own neighbourhood that is believed to be dangerous, unsightly, or otherwise undesirable but does not object to it being sited elsewhere; an acronym for not in my backyard
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Appendices Executive Summary Leicestershire’s Rural Economy
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Labour Market Economic activity is slightly higher in Leicestershire’s rural areas than its urban areas (72% compared to 70%). Self employment is more common in rural areas than in urban areas (12% compared to 8%). Unemployment levels are lower in rural areas (3% compared to 2%) but there are pockets where unemployment in rural areas is higher than the national average of 3.35%. 15-20% of rural Census Output Areas in Charnwood and North West Leicestershire have unemployment rates above the national average (Census 2001). Rural areas in Leicestershire have high proportions of residents working in occupational groups 1, 2 and 4 (higher and lower managerial/professional occupations and small employers and own account workers), and lower proportions working in occupational groups 5-8 (lower to routine occupations and long-term unemployment). There are however ‘pockets’ in the rural areas where higher proportions of residents are in employment groups 6-8 (semi-routine or routine occupations or long-term unemployment). 38% of COAs in Charnwood and 42% in NW Leicestershire districts have higher than national average proportions of residents in these occupations. Qualifications Fewer people have no qualifications in rural areas compared to in urban areas.
Appendix B - Key Statistical Analysis The Leicestershire Rural Economy Study applied the national classification of urban and rural geographies adopted by Defra at Census Output Area (COA) level to define the geography of rural Leicestershire (see Appendix A). Using the national classification, all of rural Leicestershire falls within the less sparse classification. Sparseness or remoteness is an expression of relative population density. Demographics A high proportion of Leicestershire’s3 land area is considered rural, 175,204 ha (81%). However, the population that live in these rural areas only make up 22% (195,690) of Leicestershire’s total population. These proportions rise when considering Leicestershire County on its own (84% and 32%, respectively). Harborough and Melton are the most rural districts in terms of both land area and population coverage. Oadby & Wigston is the only district that has no areas that are defined as rural. Blaby and Charnwood districts have the most densely populated rural areas (3.0 and 2.0 persons per ha respectively). Melton has the least densely populated rural area (0.5 persons per ha). Leicestershire’s rural areas have lower proportions of one person and lone parent households and higher proportions of couple only households than its urban areas.
3The area covered by Leicestershire County and Leicester City - also referred to as Leicester Shire
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in rural areas, compared to in urban areas. Fewer people travel short distances to work (<5km) in the rural areas in Leicestershire compared to the rural areas in the East Midlands (27% in rural Leicestershire compared to 31% in the rural areas of the East Midlands). This is particularly marked in the rural areas of the Harborough, Hinckley and Bosworth and Melton districts. High proportions of rural residents travel 5-20km to work (40% in rural Leicestershire compared to 34% in the rural parts of the East Midlands). Through an analysis of travel to work patterns, it is significant that a number of the market towns in the County have employment roles that are considerably weaker than conventional policy towards market towns anticipates. Larger urban areas (e.g. Leicester, Loughborough, Nottingham, Birmingham, Coventry, Derby, Corby, Nuneaton and Peterborough) are the dominant employment centres in and adjacent to Leicestershire, and high proportions of people living in the rural settlements and smaller urban settlements travel to large urban centres for work. Employment The 2003 Annual Business Inquiry shows that Leicestershire County had a total workplace workforce of around 235,857 (both urban and rural areas). This compares to the residential workforce recorded in the 2001 Population Census of 304,300 (the difference is likely to be due to patterns of commuting to places such as Leicester City
Overall, residents in the rural areas have attained higher qualifications than those in the urban areas. The proportions of residents who have attained levels 2 or 3 are similar for rural and urban areas, but noticeably higher proportions of residents in rural areas have attained level 4/5. Mapping the percentage of residents with no qualifications shows a particularly high concentration in the west of the county (in the area surrounding Coalville) and in the south-west (in the area surrounding Hinckley). The south-east of the county shows lower proportions of individuals with no formal qualifications. Private Transport 13% of households in rural areas in Leicestershire have no car/van compared to 19% in urban areas. Higher proportions of rural households have 3+ cars, but the average in both rural and urban areas is approximately the same (1.5 in rural areas compared to 1.25 in urban areas). Car ownership is greatest in rural areas in Harborough where only 10% of households do not own a car and over half of households own 2+ cars. Travel to Work Higher proportions of people work from home in rural areas, particularly in the Melton and Harborough Districts. Higher proportions of people travel to work by a car/van in rural areas and significantly less people travel to work by bike or on foot
Executive Summary Leicestershire’s Rural Economy
21
For the hotel and restaurant sector the majority of net in-commuting would appear to be into village and hamlet wards rather than town wards. A high proportion of net out-commuting in the manufacturing and public sectors is from village and hamlet wards. The figures suggest that people commute into rural areas to work in sectors that are relatively strong in these areas, and commute out to work in urban areas in sectors that are relatively weak in rural areas. This emphasises that there is not a strong match between where people work and where they live and that there are other reasons why people choose to live in rural areas other than for employment. In the knowledge-based economy, 6,627 (or 20%) of the 32,653 jobs in this sector are located in rural wards. In terms of the importance to the rural economy, this sector accounts for 10% of workplace employment in rural wards compared to 15% in urban wards, suggesting it is relatively less important in rural areas. Land-based Industries The 2004 agricultural census shows a total of 5,882 people employed on farms in the county which is equivalent to 1.9% of total employment. A rough and indicative estimate of farmgate production in the main agricultural sectors in 2004, taking no account in the value added to these commodities in the county, was around £123m, of which, perhaps surprisingly, the largest proportion comes from the dairy sector (31%). CAP receipts from the main commodity schemes in 2004 accounted for 20% of gross farmgate income.
and to the differences in the way the two datasets are collected). Approximately 32% of Leicestershire’s residential workforce recorded in the 2001 Census live in rural areas compared to 68% who live in urban areas. The ABI shows that 73% (171,232) of the County’s jobs are in urban wards, while 27% (64,625) are in rural wards (42,454 are in town wards and the remaining 21,171 in village or hamlet wards). Only in Harborough district does employment in rural wards (65%) exceed that in urban wards (35%). Manufacturing, the wholesale/retail trade and the public sector are the largest sectors in both rural and urban wards in the County. The sectors that are more significant in the rural wards than in the urban wards are the transport, storage and communications sector, hotels and restaurants and the construction and utilities sectors.
Within the rural areas, employment in manufacturing is particularly important in the Melton Borough and wholesaling and retailing is important in the Harborough District. The hotels and restaurants sector is most significant in Charnwood and Hinckley and Bosworth. Public sector employment is significantly lower in North West Leicestershire’s rural wards. The data suggests that there is net commuting into rural areas to work in the transport, storage and communication sector and in hotels and restaurants, but net out-commuting to work in the public sector, manufacturing, wholesale and retail trade, financial intermediation and real estate sectors.
22
Executive Summary Leicestershire’s Rural Economy
Appendix C - Key Statistics
Land area classified by settlement type
Total area (ha) Urban Town and fringe Village Hamlet and isolated
dwelling Leicestershire 208,313 16% 10% 58% 17% Blaby 13,047 52% 16% 27% 5% Charnwood 27,912 29% 16% 42% 12% Harborough 59,179 5% 9% 63% 24% Hinckley and Bosworth 29,744 19% 11% 57% 13% Melton 48,137 5% 3% 77% 15% NW Leicestershire 27,936 18% 13% 48% 20% Oadby and Wigston 2,358 100% 0% 0% 0% Leicester City 7,352 97% 0% 0% 3% Leicester Shire 215,665 19% 9% 56% 16% East Midlands 1,560,775 12% 9% 53% 27%
Source: 2001 Population census, dataset UV02 Population in 2001 by settlement type – All Ages
Total population Urban Town and fringe Village Hamlet and isolated
dwelling Leicestershire 609,578 68% 19% 12% 2% Blaby 90,252 79% 16% 3% 1% Charnwood 153,462 74% 18% 6% 1% Harborough 76,559 32% 40% 25% 3% Hinckley and Bosworth 100,141 72% 16% 11% 1% Melton 47,866 53% 10% 34% 3% NW Leicestershire 85,503 56% 24% 16% 3% Oadby and Wigston 55,795 100% 0% 0% 0% Leicester City 279,921 100% 0% 0% 0% Leicester Shire 889,499 78% 13% 8% 1% East Midlands 4,172,174 70% 16% 11% 3%
Source: 2001 Population census, dataset UV02
23
Economic activity of 16-74 year olds by settlement type
Economically active Economically inactive
All
Peop
le (
16-7
4)
All
Econ
omic
ally
A
ctiv
e
Empl
oyee
Self-
empl
oyed
Une
mpl
oyed
Full-
time
Stud
ents
All
Econ
omic
ally
In
activ
e
Ret
ired
Stud
ent
Look
ing
afte
r ho
me
/ fam
ily
Perm
anen
tly
sick
/ dis
able
d
Oth
er
Urban 301,648 70% 57% 8% 3% 3% 30% 14% 6% 5% 4% 2% Leicestershire Rural 144,747 72% 57% 12% 2% 2% 28% 14% 3% 6% 3% 2% Urban 52,464 73% 60% 8% 2% 2% 27% 14% 3% 4% 3% 2% Blaby Rural 13,720 74% 60% 10% 2% 2% 26% 14% 3% 4% 3% 2% Urban 84,747 66% 52% 7% 3% 4% 34% 13% 12% 5% 3% 2% Charnwood Rural 28,950 73% 58% 11% 2% 2% 27% 14% 3% 5% 3% 2% Urban 17,869 72% 59% 9% 2% 2% 28% 15% 3% 5% 3% 2% Harborough Rural 37,679 74% 58% 13% 2% 2% 26% 13% 3% 5% 2% 2% Urban 52,848 73% 60% 8% 3% 2% 27% 14% 3% 5% 4% 2% Hinckley and Bosworth Rural 20,663 71% 55% 12% 2% 2% 29% 15% 3% 6% 3% 2% Urban 18,426 72% 60% 7% 3% 3% 28% 15% 3% 6% 3% 2% Melton Rural 16,314 72% 54% 15% 2% 2% 28% 14% 3% 6% 3% 2% Urban 34,707 70% 58% 7% 3% 2% 30% 14% 2% 6% 5% 2% NW Leicestershire Rural 27,421 70% 57% 10% 2% 2% 30% 14% 3% 7% 4% 2% Urban 40,587 69% 55% 8% 3% 4% 31% 15% 6% 5% 3% 2% Oadby and Wigston Rural - - - - - - - - - - - - Urban 198,563 62% 48% 5% 5% 4% 38% 11% 9% 8% 6% 5% Leicester City Rural 406 82% 66% 10% 3% 3% 18% 4% 5% 5% 3% 1% Urban 2,123,572 67% 54% 6% 4% 3% 33% 13% 5% 6% 6% 3% East Midlands Rural 897,107 68% 53% 11% 2% 2% 32% 16% 3% 6% 4% 2%
Source: 2001 Population census, dataset UV28
24
Executive Summary Leicestershire’s Rural Economy
Socio-economic classification of 16-74 year olds by settlement type
All
Peop
le (
16-7
4)
1. H
ighe
r m
anag
eria
l and
pr
ofes
sion
al
occu
patio
ns
2. L
ower
m
anag
eria
l and
pr
ofes
sion
al
occu
patio
ns
3. In
term
edia
te
occu
patio
ns
4. S
mal
l em
ploy
ers
and
own
acco
unt
wor
kers
5. L
ower
su
perv
isor
y an
d te
chni
cal
occu
patio
ns
6. S
emi-r
outin
e oc
cupa
tions
7. R
outin
e oc
cupa
tions
8. N
ever
wor
ked
and
long
-ter
m
unem
ploy
ed
9. N
ot C
lass
ified
Urban 301,648 8% 18% 10% 7% 8% 12% 11% 2% 24% Leicestershire Rural 144,747 11% 21% 9% 10% 7% 10% 9% 1% 21% Urban 52,464 9% 21% 12% 8% 8% 11% 10% 2% 20% Blaby Rural 13,720 9% 21% 11% 9% 8% 11% 10% 1% 20% Urban 84,747 8% 16% 9% 6% 8% 11% 10% 2% 30% Charnwood Rural 28,950 11% 21% 10% 9% 7% 11% 9% 2% 21% Urban 17,869 11% 22% 10% 8% 7% 11% 9% 1% 22% Harborough Rural 37,679 12% 24% 10% 10% 7% 9% 8% 1% 19% Urban 52,848 7% 18% 10% 7% 9% 12% 14% 2% 20% Hinckley and Bosworth Rural 20,663 10% 21% 9% 10% 7% 10% 9% 2% 23% Urban 18,426 6% 17% 9% 6% 9% 16% 13% 2% 22% Melton Rural 16,314 12% 21% 8% 12% 7% 10% 8% 1% 21% Urban 34,707 7% 18% 8% 7% 9% 13% 13% 2% 22% NW Leicestershire Rural 27,421 9% 19% 9% 8% 9% 12% 11% 2% 22% Urban 40,587 8% 18% 11% 7% 7% 11% 9% 2% 26% Oadby and Wigston Rural - - - - - - - - - - Urban 198,563 5% 13% 8% 5% 7% 13% 15% 7% 28% Leicester City Rural 406 19% 29% 11% 6% 4% 8% 6% 3% 15% Urban 2,123,572 7% 16% 9% 6% 8% 13% 12% 4% 25% East Midlands Rural 897,107 9% 19% 8% 9% 8% 11% 9% 2% 24%
Source: 2001 Population census, dataset UV31
25
Workplace employment in selected categories of Broad Industrial Groups
All
Wor
kpla
ce
Empl
oym
ent
Man
ufac
turin
g (D
)
Con
stru
ctio
n an
d ut
ility
sup
ply
(F a
nd E
)
Who
lesa
le a
nd
reta
il tr
ade
(G)
Hot
els
and
rest
aura
nts
(H)
Tra
nspo
rt, s
tora
ge
and
com
mun
icat
ion
(I)
Rea
l est
ate,
ren
ting
and
busin
ess
activ
ities
(K
)
The
pub
lic s
ecto
r (L
, M a
nd N
)
Oth
er s
ecto
rs
(A, B
, C, J
and
O)
Urban 171,232 72.6% 15.7% 3.5% 16.5% 3.7% 4.2% 7.5% 15.5% 5.9% Leicestershire Rural 64,625 27.4% 4.8% 1.9% 4.8% 2.1% 4.4% 3.3% 4.4% 1.8% Urban 32,478 91.8% 10.4% 4.8% 25.1% 5.1% 6.7% 8.9% 20.3% 10.6% Blaby Rural 2,901 8.2% 1.6% 0.6% 1.5% 0.5% 0.6% 0.9% 2.1% 0.3% Urban 46,898 83.9% 19.1% 4.7% 18.5% 3.1% 3.5% 8.2% 22.1% 4.7% Charnwood Rural 9,000 16.1% 3.3% 1.3% 2.1% 1.7% 0.9% 1.7% 3.9% 1.2% Urban 10,364 34.6% 5.0% 0.9% 7.9% 1.6% 2.2% 4.9% 6.5% 5.5% Harborough Rural 19,590 65.4% 7.7% 2.6% 19.6% 3.9% 8.8% 9.5% 10.3% 3.0% Urban 29,326 78.2% 21.1% 4.0% 17.2% 4.3% 3.0% 7.8% 12.5% 8.2% Hinckley and Bosworth Rural 8,175 21.8% 4.5% 0.8% 2.5% 2.2% 3.3% 3.2% 4.0% 1.4% Urban 10,769 61.7% 16.1% 1.6% 13.3% 2.7% 4.5% 6.2% 14.2% 3.2% Melton Rural 6,684 38.3% 9.5% 2.2% 3.2% 3.0% 2.4% 5.2% 7.6% 5.2% Urban 24,861 57.6% 14.3% 3.2% 11.3% 4.5% 5.1% 6.9% 9.9% 2.5% NW Leicestershire Rural 18,301 42.4% 7.5% 4.6% 5.0% 3.1% 12.5% 3.9% 3.4% 2.5% Urban 16,510 100.0% 26.2% 3.1% 23.0% 4.6% 4.4% 9.4% 21.9% 7.5% Oadby and Wigston Rural - - - - - - - - - - Urban 156,588 100.0% 17.3% 5.1% 16.7% 4.1% 3.4% 13.0% 32.1% 8.3% Leicester City Rural - - - - - - - - - - Urban 1,403,249 79.8% 14.7% 3.8% 15.9% 4.2% 4.1% 9.9% 21.1% 6.0% East Midlands Rural 355,208 20.2% 3.7% 1.4% 3.0% 1.8% 1.7% 2.2% 4.8% 1.5%
Source: 2003 Annual Business Inquiry
26
Executive Summary Leicestershire’s Rural Economy
Relative importance of employment in different sectors within Leicestershire’s urban and rural areas
0%
5%
10%
15%
20%
25%
Manufacturing Construction &utility supply
Wholesale & retailtrade
Hotels &restaurants
Transport, storage& communication
Real estate, etc. Public sector Other sectors
Perc
ent o
f tot
al e
mpl
oym
ent w
ithin
urb
an a
nd
with
in ru
ral w
ards
Urban wards Rural wards
Source: 2003 ABI, Broad Industrial Groups
Inferred levels of commuting in and out of rural areas for selected industrial sectors
-10
-5
0
5
10
Transport, storage & communication
Hotels & restaurants
Real estate, etc. Financialintermediation
Wholesale & retail trade
Manufacturing Public sector
Net
diff
eren
ce in
the
resi
dent
ial a
ndw
orkp
lace
wor
forc
e (th
ousa
nds) Leicestershire village and hamlet wards
Leicestershire town and fringe wards
Net out-commuting from rural areas to work in urban areas and out of the County
Net in-commuting to rural areas
Source: 2003 ABI and 2001 Population Census
27
The significance of farming to land use and employment
Farmed land as % of total
land area Agriculture, hunting and fishing employment as % of total
residential employment Labour use on farms as % of total
residential employment
Leicestershire 80% 1.6% 1.9% Blaby 80% 1.0% 0.9%
Charnwood 67% 1.0% 1.0%
Harborough 94% 2.9% 4.5%
Hinckley and Bosworth 79% 1.5% 1.9%
Melton 85% 3.8% 4.7%
NW Leicestershire 60% 1.6% 1.9%
Oadby and Wigston 20% 0.5% 0.1%
Leicester City 7% 0.3% 0.0%
Leicester Shire 77% 1.3% 1.4%
East Midlands 82% 1.9% 2.2% Source: 2004 Agricultural census (columns 2 & 4) and 2001 Population census (column 3)
Summary of agricultural land use types Arable crops and set-aside Grazed land Horticulture All other agricultural land
Leicestershire 86,489 52% 69,421 42% 406 0.2% 9,750 6% Blaby 5,249 50% 4,302 41% 13 0.1% 904 9%
Charnwood 9,663 52% 7,587 41% 30 0.2% 1,391 7%
Harborough 25,523 46% 25,307 46% 217 0.4% 4,490 8%
Hinckley and Bosworth 12,890 55% 9,966 42% 35 0.1% 654 3%
Melton 23,745 58% 15,896 39% 12 0.0% 1,068 3%
NW Leicestershire 9,300 56% 6,071 36% 99 0.6% 1,193 7%
Oadby and Wigston 118 26% 291 63% 0 0.0% 50 11%
Leicester City 291 57% 209 41% 1 0.1% 8 2%
Leicester Shire 86,780 52% 69,629 42% 406 0.2% 9,758 6%
East Midlands 719,730 59% 358,493 29% 40,600 3.3% 105,367 9% Source: 2004 Agricultural census
Leicestershire Rural Partnership Chief Executive’s Department Leicestershire County Council County Hall Leicester LE3 8RA Tel: 0116 265 7937 E-mail: [email protected] Tom Gill Rural Officer
LSEP Charnwood Court 5b New Walk Leicester LE1 6TE Tel: 0116 257 5684 E-mail: [email protected] Caroline Boucher Project Manager, Leicester Shire Intelligence
Leicestershire County Council Chief Executive’s Department Leicestershire County Council County Hall Leicester LE3 8RA Tel: 0116 265 7341 E-mail: [email protected] Jo Miller Senior Research Officer
