APPENDIX A SUFFOLK LOCAL AUTHORITIES AND CHAMBER (DRAFT) RESPONSE

DRAFT: Suffolk Growth Board’s Response to: ‘Building Our Industrial Strategy’ Green Paper Suffolk welcomes the publication of the Industrial Strategy Green Paper and the opportunity to work with Government in delivering a world class economy for the UK. Good for local people and places a thriving economy encourages thriving communities and vice versa. This is the inclusive growth that drives Suffolk’s ambition. It is coupled with `a proven track record of delivery, innovation and effective collaboration across the public sector, with local communities, businesses and LEPs. A credible partner for Government, business and education sectors, our City Deal, Growth Fund investments and Enterprise Zones, demonstrate that Suffolk’s ambition is built on a firm foundation of delivery and history of innovation. A fast growing county, Suffolk boasts: [DN: need to update with latest data and ensure figures relate to a Suffolk geography:

o Suffolk’s energy coast with nationally significant offshore wind, offshore engineering, renewables and Sizewell’s nuclear energy plant

o Globally-leading research in life sciences o Flourishing key sectors in:

Advanced Manufacturing

Agri-tech and life sciences, in Sudbury and Haverhill, with firms such as Philips

Avent and Genzyme

Equine cluster in Newmarket (racing, breeding, bloodstock & equine services)

ICT: BT’s Global Centre for Innovation and Growth based at Adastral Park in

Martlesham

Finance and Insurance: Ipswich

Ports & logistics: Major ports at Felixstowe and Ipswich with nearly 17,000 jobs

in the sector

o Pioneering technical innovations in ICT research and development with Adastral Park home to BT’s Global Research and Development Headquarters and Innovation Martlesham – an established cluster of 89 high-tech ICT Companies and thriving hub for like-minded individuals sharing knowledge and expertise.

o Felixstowe - the UK’s busiest container port o A fast-growing creative digital sector, recently recognised by Tech City UK o Market-leading food and drink producers. o Our first-class cultural heritage mean tourism is worth £xbillion in Suffolk. o As well as an innovative, collaborative and mature public sector that is willing to be

bold in transforming public services] A county with coastal, urban and rural communities, connectivity is absolutely critical in growing Suffolk’s economy as well as enabling people to fulfil their potential and for communities to thrive. Suffolk is one of the largest county economies in England, ranking 22nd in terms of jobs and 16th in terms of business numbers out of the 206 counties. The County is home to 32,000 businesses and 316,000 jobs. Suffolk’s economy grew by 1.8% over 2015, and is now worth £16.9 billion to the UK economy.

Suffolk’s natural environment is an important part of our existing infrastructure that is also an important consideration as we grow our economy. Many sectors are closely linked with the quality of Suffolk’s environment, such as tourism and agriculture and there are strong links between it and mental and physical well-being and thereby a health workforce and inward investment. 36% of the county is either nationally or locally designated for its wildlife or landscape value, this includes 7% of the county either nationally or internationally designated for wildlife and 12% of the county designated as Area of Outstanding Natural Beauty or the Norfolk & Suffolk Broads. Ipswich as the major town, is a key driver for growth in Suffolk. Through Ipswich Vision its delivering its ambition to regenerate the town; supporting town centre redevelopment by improving the retail offer and introducing more leisure, commercial and residential provision. It is developing the business case for the Ipswich Northern Relief Road, along with existing major development such as working with Foster and Associates to deliver the Upper Orwell Crossings and further development at the iconic Waterfront with new heritage and records facility the Hold in partnership with the University of Suffolk. [DN: Placeholder text – comments welceome] Understanding local places and people, supported by locally based evidence is critical to enabling sustainable and inclusive economic growth. Suffolk has many assets but they are under leveraged. Greater connectivity is critical to fulfilling their potential. A place based approach provides a holistic view of strengths and areas of need, enabling more coherent investment in the right levers for sustained economic growth such as: supply chains, infrastructure, developing local skills and inward investment. Suffolk’s public sector is clear, that there is a symbiotic relationship between economic prosperity and prospering communities, which needs to focus the way public resources are prioritised. As this Green Paper response demonstrates, Suffolk is focussed on influencing inclusive, sustainable growth – growth that unlocks wider benefits to communities - providing the: environment, jobs, schools, healthcare, homes and connectivity that people need to be successful and to do so in a way that doesn’t cost shunt or perversely impact partners and businesses. This is why a more effective join up between Government and local partners is essential for the Industrial Strategy to deliver its ambition of a “stronger economy and fairer society”. Not only will this improve local areas’ contribution to UK plc, it will identify opportunities for scaling up economic strengths. Locally and nationally, the public sector need to collaborate so that their interventions have the greatest positive impact. Equally, they need to be clear where they do not have a role and should get out of the way and let entrepreneurial spirit flourish. Moreover, Government needs to recognise that LEPs along with local government have a locally grounded and strategic perspective on their local economy. And as such, in delivering its Industrial Strategy, Government needs to devolve more resource and responsibility locally to maximise opportunities for growth. More joined up, longer term economic policy across Government would also help in creating greater certainty and in turn, unlock productivity and growth. Home to global businesses, a renowned environment and an innovative, collaborative public sector with a record for delivery, Suffolk looks forward to working with Government to realise the economic ambition to unlock growth, drive up productivity and create a stronger, fairer economy for all.

Suffolk is ambitious for its economy and its communities. The content of the Green Paper complements the approaches taken locally across Suffolk and therefore, this response does not slavishly respond question by question to the consultation but sets it against our strategic priorities for growth that are grounded in local places. These are:

1. Sector based deals for:

Energy – nuclear based deal with EDF around Sizewell

ICT/data – based around Adastral Park

Agri-tech

Logistics [DN: Something Suffolk Public Sector Leaders wanted to focus on within the response’s priorities]

2. Public Sector interventions:

More joined up working between local public sector and Government developing the Assets & Infrastructure Board agreed within devolution deals.

Demonstrating how public sector can best use the levers and assets available (as a land/property owner, builder, investor)

Longer term, joined up planning coupled with understanding of place

3. Skills, Health & Work:

Pay & Progression - eg (from local government): co-design local careers provision and pilot to support career/pay progression for those on Universal Credit and co-design work and health programme

Social Opportunity projects

Sector skills (area based review, exploring IoTs) [DN: construction skills something SPSL wanted to highlight]

4. Developing places with the right Infrastructure:

Mildenhall significant potential for housing development

Broadband and 5G

Road Investment Strategy 2 (post 2020)

Ely junction to connect the UK’s largest container port with the Midland’s engine

A120 and A12 key growth corridors

5. The means to deliver inclusive growth

Evidence/focus on Labour force to increase productivity and deliver inclusive growth (stronger and fairer economy for all)

Investment strategy: the priorities, investment models and delivery mechanisms to unlock the right growth for Suffolk

1. Sector based deals for:

Energy – nuclear based deal with EDF around Sizewell The economic opportunity of Energy is a key element of Suffolk’s economic offer. It is a diverse sector and therefore, we need to work with industry and Government to ensure it reaches its potential – powering the world. Suffolk’s coastline, along with neighbouring Norfolk supports a range of energy-related sectors including renewables (offshore wind) existing and new nuclear (Sizewell C). As a result of this significant energy offer and the proximity to Bradwell power nuclear power station, Suffolk wants to help the Government to develop its longer term strategy around nuclear power by drawing on understanding of its impact on local places in order to ensure positive, sustainable outcomes.

There is an excellent opportunity to develop a more coherent, nationally collaborative approach to developing this sector. For example, learning from development of Hinkley and Bradwell including how local supply chains can support the development of each plant. The construction phase of Sizewell is expected to last nearly a decade but the project has the potential to create an even longer-lasting economic legacy during its 60 year operational phase. The proposed build presents significant opportunities and challenges for Suffolk’s businesses. The anticipated capital cost (£16 to £24 billion) makes it the largest infrastructure project located in the East of England. It can be compared with other large projects such as the Olympic Park (£6 billion) and Crossrail (£15 billion). Uplift in GVA has been estimated at £100m per year during the 10-year construction phase and £40m per year thereafter. In addition, the potential for increased business rates and indirect positive opportunities are significant. In terms of the local economy the build has the potential to create a lasting economic legacy but the construction phase could also disrupt existing business operations. In order to manage this, five priorities have been identified for Economic Development (ED) within the overall strategy for Sizewell. These priorities are:

1. Maximising the supply chain opportunities for local companies 2. Attracting Inward Investment from companies who are seeking to service/supply the construction/operational phases 3. Identifying an aspect or aspects that could be a driver for innovation change within the local economy 4. Mitigating negative impacts on local businesses (for example, tourism) in terms of, for example, labour supply and congestion 5. Ensuring the project acts as a driver for new business formation.

There is existing infrastructure that supports this significant work to bring together key stakeholders including local businesses, politicians and the local communities, such as the Joint Local Authorities Group. The Suffolk Energy Gateway Board, led by Therese Coffey MP, is an example of where key local stakeholders have galvanised ensure that economic growth is supported by the right infrastructure and happens in a positive way for local communities. More coherent, longer term and holistic planning for the whole energy sector, working with local public sector to ensure approaches are sustainable and maximise opportunities. Beyond our nuclear energy sector deal, there are a number of issues Suffolk wishes to raise in relation to delivering affordable energy and clean growth.

Probably the biggest opportunity to limit energy costs is to focus on efficiency improvements to

existing buildings, the UK has some of the most inefficeint housing stock in Europe and the vast

majoirty will be in use well into the future.

Our power grid infrastructure is also not fit for purpose, designed for a now outdated energy

supply model. This has proven to be the key blocker for further scaling up levels of renewable

energy production, as well as being a costly barrier to growth, both for new housing and

business/industrial developments that need a grid connection. The social acceptability of some

technologies is also a key area to consider. For example, capacity studies show that Norfolk and

Suffolk still have high levels of untapped onshore wind potential, but growth in this area has

been slow, partly because of the opportunity cost for developers compared to sites in Scotland

but also understandable resistance from communities, an issue that is now recognised in

changes to the planning system that effectively limit the use of this potential resource.

o Energy improvements for existing buildings – improving the energy efficiency of

existing homes and businesses to reduce cost should be treated as an infrastructure

priority with its own budget. This can be part financed via the Energy Company

Obligation, but should involve local authorities as the honest broker for residents and

businesses to ensure the available funds are well targeted and deliver high quality

installs at best value.

o Role in Regional Power Grid improvements – Enabling LEPs/LAs to make strategic

investment in partnership with DNOs , removing grid constraints and unlocking the

growth potential of the onshore energy and development sectors.

o Community Energy ESCOs – Empower communities to be involved in developing

onshore energy infrastructure including heat networks, embedded renewables, grid

connected renewables and storage. This could be delivered through the existing

Neighbourhood Planning system and could also enable housing development if

renewable energy provision does not have to funded by the developer.

o Creating a regional energy supply market – Local generation alongside smart metering

creates opportunities to provide affordable energy to SMEs and households whilst

boosting revenues for renewable energy developers, getting us closer to subsidy free

delivery.

o Holistic approach to infrastructure – Public and Community ownership of energy supply

will create revenues that stay within the region that could be reinvested in building and

maintaining other critical infrastructure like flood defences.

Certainty or a more predictable model in subsidy is important in supporting the sector

Investing in clean refuelling infrastructure – greening the transport sector is a major challenge for our region. Having strategic clean fuel infrastructure in place will give people and businesses the confidence to invest in low emission vehicles. This includes a fast/rapid charging network for electric vehicles, Compressed Natural Gas (CNG) for the haulage sector to ensure links with existing CNG stations in the Midlands, and LNG for shipping at the Port of Felixstowe to ensure future competitiveness.

EU investment in energy is significant (c£12m) therefore, how will that be offset following withdrawal from the EU? Equally, we want to work with Government to define what future success regimes may look like.

Use of public procurement and energy efficeincy standards to drive behaviour change –

often businesses (especially SMEs) continue to do what they have always done in terms of

energy and equipment purchasing, the government should examine the opportunity to

enable businesses to “discover” new technologies by driving change in the market using

stringent energy efficiency standards for products and services.

Creation of support to replace EU Structural Funds post Brexit – funding to provide support

to SMEs to develop a low carbon / resource effieicnt ecomony has an important role to

communicate and deliver behaviour change and realise the opportunities. This has

traditionally been sourced from EU Structural Funds to support advice and grants, some

form of replacement post Brexit would be required for this important engagment to

continue.

ICT/data – based around Adastral Park While Suffolk has a solid presence in some high value activities such as advanced manufacturing, it generally under-performs in knowledge based services.

Adastral Park is recognised as one of the world’s leading ICT Innovation Hubs. It is home to BT’s Global Research HQ and the Innovation Martlesham cluster of 100 ICT companies ranging from start-ups to global multinationals. The site has huge potential to become a global centre for the digital economy. The Adastral Park 2025 Vision will take the site to a new level as a major national strategic asset and a growth engine for the UK ICT sector. It will see the creation of: the Tommy Flowers Institute for post-graduate ICT industrial research; the world’s largest converged networks research facility; and the UK’s Centre for Internet of Things (IoT) operations development. These facilities will help deliver UK leadership in the global ICT sector, accelerate the growth of the UK’s emerging telecoms software manufacturing sector and grow the Innovation Martlesham cluster to over 200 ICT companies and academic partners. It is an example of the game changing projects which local partners are keen co-invest in. This provides exciting opportunities to generate innovative approaches to challenges in both the public sector (such as reducing service demand) and private sector (such as attracting talent and generating income). The project has already secured significant private sector commitment. In addition to funding from BT, there is commitment from a major UK technology institution to locate capability on the site, plus expressions of interest from two major ICT multinationals with the intent to invest (with further interest from a third), and a number of UK Universities. There is confidence that additional industry investment in the tens of millions of pounds will be forthcoming Include use of open data as a means for encouraging innovation and solutions to public sector challenges Agri-tech Food, drink and agriculture are important to Suffolk. Agriculture employs over 10,000 people and food and drink processing employs a further 9,000 people. Major employers include Aspalls, Adnams, Greene King, Muntons, British Sugar, Birds Eye and Copella. There is also particular potential for growth in Suffolk’s specialist food and drink offer, driven by national demand for high-quality, locally sourced food. Key constraints which may limit growth include the availability of technical and marketing skills, and water supplies. [DN: placeholder text from Suffolk Growth Strategy] Ports and Logistics Suffolk’s ports and logistics sector employs over 13,000 people and indirectly supports many more jobs. Suffolk’s ports provide our firms with a distinct competitive advantage when exporting their products. The Port of Felixstowe is Britain’s biggest and busiest container port, and one of the largest in Europe. The port handles more than 4million TEUs (Twenty-foot Equivalent Units) and welcomes approximately 3,000 ships each year, including the largest container vessels afloat today – crucially, the port provides some of the deepest water close to the open sea of any European port. Around 30 shipping lines operate from Felixstowe, offering approximately 90 services to and from 400 ports around the world. Felixstowe is a key economic asset for the county, the East of England, and the UK as a whole. It supports a major logistics and distribution sector – extending up the A14 corridor to Ipswich, and beyond – and gives Suffolk businesses a significant advantage when exporting their products to the world.

The Port of Ipswich is a short sailing time from the North Sea shipping lines with rail and road connectivity. Whilst, in the north of Suffolk, Lowestoft serves as a major supply centre for the North Sea offshore oil and gas industry; and for the development, construction and maintenance of offshore wind farms. 3.25 UK container traffic is likely to grow steadily over the next 15 years and there are opportunities for further growth through diversifying its bulk-breaking and postprocessing capabilities. [DN: placeholder text from Suffolk Growth Strategy and Port of Felixstowe home page. Paul Wood following up with Paul Davey, Port of Felixstowe]

Drafting Questions:

What are the specific ‘deals’/offers/asks we want to highlight against these sectors?

Are these the only sectors we want to focus on?

Have the right local places/stakeholders/priorities been highlighted?

Any specific focus for Agri-tech?

2. Public Sector interventions: The symbiotic relationship between economic prosperity and prospering communities needs to focus the way public resources are prioritised. The public sector will be challenged to influence inclusive, sustainable growth – growth that unlocks wider benefits to communities - providing the: environment, jobs, schools, healthcare, homes and connectivity that people need to be successful and to do so in a way that doesn’t cost shunt or perversely impact partners and businesses. This, coupled with demographic and societal changes means the demand and expectation of public services will change and require innovative responses. To be effective and relevant, those responses need to be:

locally driven - devolved funding and responsibility to ensure relevance to local context,

maximisation of assets and that needs are met;

collaborative - across public, private and voluntary sectors as well as directly with local

people

innovative - entrepreneurial public sector workers, breaking down organisational

boundaries, designing new delivery models, being more commercial in driving savings and

focussing on inclusive growth

accountable - transparent and evidence-based decision making

flexible and responsive - not constrained by a fixed point in time or focus on structures but

driven by outcomes and , with longer term planning, responsive to future opportunities and

challenges.

Shifts in Public Sector Role: Maximising Levers and Assets Austerity and the need to create sustainable funding models means that the public sector needs to collaborate to better use the resources and assets it has. The focus on the continuum between inclusive growth and health and care (highlighted in the model above) means the public sector becoming more innovative and clear on how best to galvanise and utilise the assets, levers and

influence we have. For example, some local authorities in Suffolk are joint owners of Barley Homes - a commercial company limited by shares, for the purpose of developing housing for sale and private rent, and affordable rent and low-cost home ownership. Devolution deals have included the establishment of a Joint Investment and Assets Board to review land and property held by the public sector (including central Government departments, local authorities, the NHS, Homes and Communities Agency and MoD land). This would build on the success of the One Public Estate Programme – an area of significant collaborative success for Suffolk. Such a Board would ensure there is a sufficient, balanced supply of readily available sites for commercial and residential development to meet the demands of a growing economy. It is critical that this is across the whole public sector including NHS and police in order to increase local control over public service estates and capital assets to unlock them for the benefit of local communities and economic growth more widely. The value of this approach is also demonstrated in the early work on the RAF Mildenhall vision, detailed in the infrastructure section. Procurement Through public sector procurement and commissioning the public sector is increasingly outcome and externally focused want to work with Partners to find solutions to problems for procurement in particular, approaches could include:

Simplification of terms and conditions for procurement and greater standardisation would enable more creative collaboration across the public sector and beyond as well supporting more positive relationships with private sector

Greater attention to social value in procurement would assist. In Suffolk the Government’s scorecard was used in the procurement for the Lowestoft and Ipswich river crossings infrastructure investments. A simplified version of this would be helpful in aligning social value to organisational priorities for lower value procurement.

Greater emphasis on early engagement with the market would also be helpful

More support from government on providing simplified procurement documents that can be used across the wider public sector to make procurement more accessible and understandable for SME’s i.e. less time invested in going over different terms and conditions, standard and simplified Invitations to Tender.

Emphasis on providing practical support around use of the ‘Innovation Procedure’ as defined in the Public Contracts Regulations, specifically in dealing with intellectual property and on-going development / exploitation of innovative ideas.

The Strategy contains some interesting examples to deliver social value; however, there remains a mismatch between the way it is tackled centrally and locally – once again, greater coherence in approach coupled with more local collaboration and autonomy from Government to local partners

Once again, the local public sector is well placed to generate social value in contracts and supply chains and do so to support SMEs as well as large scale contractors given the range of procurement across the public sector including diversity of scale.

In support of innovative work with private sector (for example, developing apps) it would be interesting to explore with Government how to make this more sustainable – for example, intellectual property.

Public Sector Institutions

New Anglia LEP, the Growth Hubs and Local Authorities will work with Government

to develop a strategic approach to regulatory delivery, building on the Better

Business for All national programme which will remove regulatory barriers to growth

for businesses.

based on economic geographies rather than organisational boundaries and therefore, need sufficient flexibility to work together within sub national boundaries for example, through Sub National Transport Bodies as highlighted in the Infrastructure section.

More diversified approach to local places and their economies coupled with greater local autonomy

However, delivering Suffolk’s global ambition is less about institutions and more about being dynamic, reacting at pace and building robust relationships (not focussing on structures and sovereignty); however, there is a need to ensure that institutions, both locally and nationally, are streamlined and working collaboratively on delivering inclusive growth.

Drafting questions:

Are these the right areas?

Any gaps/misunderstandings? Eg: public health commissioning? Healthy living etc)

3. Skills, Health & Work: Building on recent success to raise skills and employment levels in Suffolk is absolutely key if we are to realise the full potential of our economy to thrive and grow and ensure that local people capitalise on the opportunities that this growth provides. Suffolk at a Glance Early indications suggest that educational attainment in Suffolk (2015) is continuing to improve and we are now above national averages at GCSE1. This is a good basis on which to build our ambitions for young people moving forward but we still face several key skills and employment challenges if we are to raise productivity levels and support inclusive growth.

1 https://www.gov.uk/government/statistics/revised-gcse-and-equivalent-results-in-england-2015-to-2016

Skills levels are relatively low across the Suffolk population with a relatively high level of those without basic skills and a low proportion of those holding qualifications at higher levels (28% of 16-64 year olds qualified to NVQ level 4, compared to 37% nationally). Reflective of skills levels, wages in Suffolk have remained persistently lower than the national average for more than the last decade. Also, whilst overall employment levels have remained consistently high across Suffolk over the past decade in comparison with other areas of the UK, this county level picture obscures pockets of deprivation and high NEET figures in certain areas. Four Suffolk districts are judged to be in the 20% least social mobile in the UK (according to the Government’s 2016 Social Mobility Index). Added to this, overtime Suffolk’s population – and subsequently our workforce - is becoming progressively older at an increased rate than that of the rest of the UK with a subsequent impact on the relative proportion of economically active to economically inactive citizens. These challenges are set against a changing economic landscape. Whilst employment in managerial and professional occupations is lower than the national average2, we know that the number of jobs in Suffolk requiring a high level of technical and professional skills is rising, especially in science, technology, engineering and mathematics related roles within our key growth sectors. An increase in these roles will help to drive productivity. Alongside this remains a need for large levels of employment in service roles. We must therefore ensure we plan for and respond to the needs of growth but also continue to provide the skills needed to service replacement demand. This will be of a particular relevance to those areas of our economy that currently rely on ageing or migrant workforces and may be therefore be disproportionally impacted by Brexit. When considered together, the increase in higher level technical roles to drive growth and the pressures of replacement demand necessitates a skills and employment system that is effective at upskilling the current workforce, providing opportunities for career progression and increasing the proportion of the population that is economically active as well as providing young people with the right skills to enter the workforce. Pay and Progression Health and Social Care is one area in Suffolk in which there will be significant skills pressures with an increasing demand for services from an ageing population, a workforce which is ageing and reliant to some degree on a migrant workforce and has a high turnover of staff. Basic Skills In order to tackle the County’s basic skills deficiencies, we need an effective but flexible system that ensures a requirement for basic skills is balanced intelligently with the benefit of getting individuals into employment in areas of needs. Our post 16 providers need to be resourced sufficiently to raise their standards to become regional centres for basic skills excellence. Devolution of the Adult Education Budget (AEB)to a local or regional level would strengthen the development of a collaborative approach to planning and delivery to ensure it is used effectively to meet basic skills needs including digital literacy. This would enable us to locally align funding with sources such as the European Social Fund for which a local call has already been developed to help address basic skills gaps in the adult workforce. In order to make the proposed transition year a success Suffolk could be used as a potential testbed area for pilots looking to tackle a lack of basic skills and high levels of NEET. Such activity could be aligned with the emerging programmes of activity and investment connected to the Ipswich Opportunity Area and locally led projects also focussed on improving life chances and social mobility.

2 ONS Annual Survey of Hours and Earnings 2016

Youth Unemployment The Greater Ipswich City Deal, agreed with Government in 2013, focused as a main priority on addressing youth unemployment, and resulted in the establishing of the UK’s first dedicated youth employment centre - an innovative approach to youth unemployment. We have continued to build on this approach across the county by rolling out and further testing elements of the model and, working across the LEP area, by establishing the New Anglia Youth Pledge - a regional commitment to providing the support that young people need to enter the right training or employment for them. Whilst much has been achieved through this approach, we believe there is much more that can be achieved and therefore welcome further dialogue with Government on further developments. Work and Health Suffolk has seen a steady increase in the proportion of working-age people with long-term health problems or disabilities over recent years. We believe that, in line with the vision for the new national Work and Health Programme, an integrated health, employment and skills system would have the potential to tackle deep seated barriers to work and improve health, life quality, skills levels, progression and productivity in Suffolk. Working with DWP and building on the experience of creating an integrated person centred service as part of the City Deal, Suffolk would be a fertile testbed for further pilot work. Industry Need and Provision As highlighted in the Industrial Strategy green paper, aligning industry need with provision is a key component of an effective skills system. The reform of skills nationally is reliant on employers defining new technical, vocational standards and investment opportunities and success will ultimately hinge on levels of employer ownership and engagement. Working closely with the New Anglia LEP, significant progress has already been made to align Suffolk’s industry needs with regional provision. The New Anglia Skills Board places employers at the heart of decision making around skills and several of the initiatives the Board has overseen, such as the New Anglia Skills Deals programme, has aligned public and private investment to enable innovative approaches to addressing mismatches between industry need and the provision on offer. For example, in line with local industry requests, new welding and fabrication provision will now be delivered at Suffolk New College. This programme is testing an approach that could be developed further - potentially through the use of devolved AEB. Suffolk has a clear commitment to increasing the amount of quality apprenticeship starts in the region as demonstrated by the significant local investment in the Apprenticeships Suffolk service. With apprenticeships due to play a key role in delivering the vision for technical education – (4 of the 15 routes to be delivered solely through apprenticeships) and the upcoming apprenticeship reforms, this local work with employers, young people and the wider public is vital. As the Suffolk economy is dominated by non-app levy payers this activity becomes even more significant in mitigating any possible (albeit unintended) negative impacts of the reforms on apprenticeship take-up and employee upskilling in Suffolk. Such impact would be at a counter to the Government’s objective to drive growth across the country. Flexibilities in how the apprenticeship levy is used locally could provide a further dimension to local activity and strengthen our ability to ensure a smooth transition to the new apprenticeship system. Our providers in Suffolk, including our colleges and the University of Suffolk play a crucial role in supplying skills to service local industry and will be integral to meeting an increasing demand for higher technical level positions.

To meet our ambitions for growth and the expectations of a new technical education system outlined by Government we must build on these strengths and invest in our existing provider base to enable them to be responsive, whilst encouraging ever increasing collaboration between providers to ensure a clear and effective system. Implementation of the key recommendations from the recent regional Post-16 area review is a good starting point. Further strategic influence at a regional level over post-16 provision, education and skills would support this. The local Further Education offer includes several specialisms directly related to local need. These specialisms could be enhanced through the creation of Institutes of Technology. Key stakeholders are already collaborating across Norfolk and Suffolk to respond with a clear regional proposal to the Government's announcements on Institutes of Technology. As well as capitalising on our providers’ specialisms, the Institute of Technology status is an opportunity to help raise aspiration levels in Suffolk by increasing local understanding of higher level technical qualifications and the associated roles in our economy. To ensure provision is aligned to need we are improving our understanding of the current and future skills needs of our industries by developing regional Sector Skills Plans. This information will also help to inform and further develop the work inspiration activity being undertaken in Suffolk including the work of the Enterprise Advisers matched with schools and colleges through the New Anglia Enterprise Adviser Network and the development of icanbea… - our innovative online platform showcasing local career opportunities. ICT/Digital Skills Suffolk is home to one of the world’s leading ICT innovation hubs - the Adastral Park Innovation Centre (Martlesham, near Ipswich). This includes a cluster of over 100 ICT companies ranging from start-ups to global multinationals. The job ‘structure’ for the sector is becoming more high skilled, more ‘IT technical’ and professional overall, creating therefore an even greater demand in degree and above qualifications. In addition to this there is an expanding digital economy in Suffolk - with marketing, finance, public services and tourism- all actively recruiting in digital roles. Therefore, the demand for digital workers with digital skills, which are transferable across sectors, is set to increase. Our educational establishments generate a strong supply of skills in areas such as computer science, software engineering, television and media studies, video games art, design, digital photography, animation and film. The University of Suffolk has a strong games design offer as well as specialising in several other areas of digital tech including collaborating with BT to boost high end ICT skills and offering globally recognised industrial certification in cyber security. An industry group has been established to harness the efforts of stakeholders across the region to build on our strength in this sector. As part of their remit - Tech East - which is supported by many local businesses – is working with local and national educational partners to develop the relevant sector skills and linking with cutting edge research. The first step of this work will be the production of a sector skills plan for Norfolk and Suffolk. Energy Our Suffolk Energy Coast provides an excellent opportunity to drive forward economic growth, raise

skills aspirations and create thousands of jobs.

The area already has a recognised heritage in the oil and gas industry, is at the centre of the world’s

largest market for offshore energy and the UK’s most dense offshore wind development. Nuclear

power is also witnessing substantial investment with decommissioning and the proposal for a new

power station at Sizewell.

Skills availability is considered a potential constraint to growth for a sector of real significance to the Suffolk economy. The sector includes high value activities that The sector continues to change are considered a possible Effect of Brexit on migrant workforce? Ports and Logistics Skills requirements for the ports plus requirements around logistics – east-west corridor etc.

4. Developing places with the right Infrastructure Suffolk has a highly connected economy. To achieve our aim of inclusive growth, infrastructure is vital, not simply in terms of transport links, but providing the: environment, technology, jobs, schools, healthcare, homes and connectivity that people need to be successful. Suffolk needs transport infrastructure to maximise its growth potential. Suffolk’s coast is home to Felixstowe, the UK’s busiest container port so road and rail infrastructure is essential. The A14 and Ely junction rail hub provide vital connections with the Midland’s engine and beyond; whilst, the A12 and Norwich to London mainline connect Suffolk to London. The coastline is also known as the all energy coast, a diverse energy offer ranging from renewable wind to nuclear with Sizewell that is looking to expand with the new Sizewell C plant. Infrastructure improvements would also unlock more productivity locally – nearly a quarter of Suffolk’s GVA3 is linked to the efficient operation of the road. We also support NALEP’s campaign for better rail services enabling ‘Suffolk in Sixty’ (Ipswich to London in an hour) and ‘Norwich in Ninety’ (Norwich to London in 90 minutes). Suffolk’s ambition, however, is not growth for its own sake. Inclusive growth, defined recently by the RSA Commission on Inclusive Growth as: “Enabling as many people as possible to contribute and benefit from growth that supports “is Suffolk’s ambition, as outlined in detail in the previous public sector interventions section. Consequently, infrastructure development should take full account of natural capital accounting in decision-making to ensure that our natural capital (the world’s stocks of natural assets which include geology, soil, air, water and all living things) is not unsustainably depleted. There is much evidence, for example in the UK National Ecosystem Assessment , to demonstrate the benefits of the natural environment to mental and physical health and quality of life, and thereby to a healthy workforce, to inward investment in an area where the natural environment remains a strong asset, and to economic prosperity itself. In 2015 a Suffolk wide poll demonstrated that the countryside & coast is seen by the vast majority of respondents as the best thing about living in Suffolk. Similarly, Visit Suffolk’s market segmentation analysis in 2015, showed that natural and heritage attractions were by far the most visited. Investment Models

As highlighted in section 2 (the public sector), there is an important role for LEPs, public and private sector agencies in brokering positive public/private sector relationships – this is increasingly important as local government and the rest of the public sector have a bigger role in using their own financial assets to develop the local economy and improve their own financial sustainability

3 Ernst & Young A14 study: ‘The Economic Impact of Congestion’ March 2014

We are working with the private sector to help provide creative solutions to public sector challenges – for example, working with leading technology companies to help solve the problems facing local government. For example, we are currently exploring the opportunities of the internet of things in preventing the need for social care support and developing an app to improve access to transport in rural areas. This emphasises the importance of local leadership and autonomy in determining the best interventions for local communities and places.

Private sector insight needs to be harnessed to ensure infrastructure investment is realistic equally, Government needs to ensure that it is easier to access (rather than divided across multiple agencies and funding regulations) and facilitates certainty and longer term planning.

There needs to be a more holistic approach to strategic infrastructure planning. This is particularly important where there are numerous public sector organisations involved in decision making. Without coherent strategic planning opportunities are likely to be missed. This is an area where Government could benefit from more engagement with local partners in order to realise opportunities.

Longer term planning and certainty

In addition to more holistic planning, longer term planning would support more coherent infrastructure investment. Funding rounds that are announced year by year, whilst a valuable means for securing necessary infrastructure do not enable (due to the time constraints) a more coherent approach in deciding the optimum schemes for investment.

Securing sustainable funding models will become increasingly critical to investment in infrastructure. As public sector finances become increasingly stretched, the ability to unlock the right homes and the right jobs in the right places will rely on the ability to

The public sector’s role in its economy is changing. It is becoming an investor, developer and business partner as well as land/property owner as it seeks creative ways to stimulate economic growth and support its local communities.

Sub National Transport Bodies

The Strategy highlights MCAs devolved resources and responsibilities; therefore, an infrastructure/structural point about devolved (“improving local involvement in infrastructure policy”) approaches improving infrastructure in non-metropolitan areas without an MCA.]

Local transport funding for local roads and transport is vital to delivering success for Suffolk’s connected economy There is an opportunity to link up the Oxford-Cambridge corridor to Suffolk’s international businesses such as: the all energy coast, Adastral Park and the UK’s largest container port at Felixstowe. We are very interested in working across our borders to improve connectivity and productivity. Key corridors for Suffolk include the A120, A12 and A14 as well as the Norwich to London mainline and remodelling of Ely North junction to improve passenger and freight connections from Suffolk to the midlands engine. Suffolk would be interested in exploring further the opportunities that a Sub national transport body might present in unlocking infrastructure investment. [DN: may want to cross reference to structures ‘pillar’ (Qs 36-38)]

Housing and Strategic Planning

Greater local autonomy and responsibility is essential in ensuring more effective infrastructure investment, this could include maximising opportunities arising from Government agreement that housing can be associated development for National Infrastructure Projects. This includes: housing developments. Housing Infrastructure fund highlighted as a means of improving joined up planning for housing and infrastructure.

Locally there is recognition this needs to improve (but also that to deliver the extent of housing needed and break the history of under-delivery. Local understanding of what sort of development is needed and where, along with sufficient resources are essential in breaking the cycle of under-delivery.

Longer term planning and investment is important. Certainty is a key enabler in unlocking economic growth. Again, devolved and partnership working with local government and LEPs will ensure this is effectively targeted.

Suffolk specific infrastructure priorities RAF Mildenhall: Following engagement with the local people, Government and local key partners, a Vision and Prospectus for the future of RAF Mildenhall was published at the end of 2016. It sets out clear principles and legacy objectives to enable mixed use, sustainable development with jobs at the forefront. This significant opportunity highlights the need for locally grounded, collaborative, long term planning. We are asking Government to work in partnership with us, to respond to this prospectus and to accelerate and clarify decisions where possible about the timing of the USVF withdrawal. There are a number of specific issues where working with Government and its agencies will be critical, including:

Availability of capacity funding to assess the requirement and costs of new infrastructure required and to develop business cases which demonstrate the return on this investment.

providing a funding package to be repaid from sale proceeds of the land when it becomes developed to meet the costs of the required improvements to infrastructure and services to facilitate new development.

exploring the benefits of designations such as Enterprise Zones, Housing Zones and development corporations to support delivery of the Vision.

jointly developing a masterplan for the site building on the Vision and Prospectus to deliver sustainable and inclusive growth good for local communities and UK plc.

Sharing information so that we can jointly assess the need for further work to be commissioned jointly.

Connectivity Suffolk has a diverse economy with significant sectoral clusters, infrastructure and innovation as well as 96.6% of registered businesses that are SMEs. Coupled with its diverse urban, rural and coastal geography, connectivity is absolutely essential to improving productivity and economic growth. Consequently, there are a number of Suffolk specific proposals, we would like to explore further with Government: Connectivity: Broadband and 5G

Suffolk has completed the first contract with BT that took the circa 50% existing fibre coverage in Suffolk and extended it up to around 85% coverage of all premises in the county. Suffolk’s second scheme is under way and will see us reach over 96% premises coverage in the county by 2019. In the 2017 Spring budget, the Chancellor highlighted Investment in training, and investment in infrastructure, will start addressing the UK’s productivity challenge and announced a range of investments including a £16 million for a new 5G mobile technology hub. [DN: very much placeholder text – are these what we want to highlight?]

Connectivity: Growth corridors

Road Investment Strategy 2 (post 2020) ensuring the [DN: do we want to refer to/suggest schemes for the Spring Budget announcement of a £690 million competition for local authorities across England to tackle urban congestion]

Ely junction to connect the UK’s largest container port with the Midland’s engine

A120 and A12 key growth corridors

Drafting Questions:

Is there any appetite for public private partnerships for infrastructure investment?]

X-reference to the skills questions (Qs 10-14)

Are there any specific schemes to mention for: o Mildenhall (beyond/instead of those included) o Broadband and 5G? o RIS2, A120 and A12 and Ely

5. The means to deliver inclusive growth

Suffolk’s is clear in its ambition to deliver inclusive growth – a prospering economy, with both nationally and internationally significant contributions that also unlocks wider benefits enabling local people and places to thrive. To achieve this in a time of global uncertainty and economic pressure, is a significant challenge and therefore, one that requires effective join up between local and national partners. Therefore, further exploration with Government and local partners would be welcome on: Suffolk’s people and places: Understanding our economy and local labour market

Evidence/focus on Labour force to increase productivity and deliver inclusive growth (a stronger and fairer economy for all). Such information is also important in understanding potential barriers or ‘shocks’ to local economic growth.

Currently, just over 10% of Suffolk’s workforce is made of people born outside of the UK. This sort of information will be increasingly

Suffolk’s GVA is 14% lower than the England average and now stands at £22,781 per head. There is a solid presence in high value activities such as advance manufacturing; however, it generally under performs in knowledge based services. Lower productivity activities (eg: retail, hospitality and agriculture) are more prevalent in the Suffolk’s economy than nationally.

Investment models for sustained inclusive growth

Investment strategy: the priorities, investment models and delivery mechanisms to unlock the right growth for Suffolk

Better access to capital markets and understanding the scale of investment needed – venture capital investment does not necessarily require single large amounts; therefore, we need to explore how to maximise investment opportunities. We also want to explore more creative means of funding such as: social bonds, venture capital

Uncertainty will be a major factor in preventing longer term investment. Locally grounded intelligence, coupled with more coherent central investment policy will help to mitigate this

Some successful examples of crowdfunding in our community resilience space; however, is it more for public sector to work with businesses on jointly meeting these challenges (similar to the approach with BT on internet of things as a means of solving public sector problems).

support existing business but look at new users and new demand with focus on attracting investment both on two levels - national and international {LEP SEP workshop 11/2/17)

European Union

For Suffolk, much longer term funding support is provided by the EU. Suffolk has secured (wholly Suffolk projects or where we have a share in a larger New Anglia project) some £15.584 million in successful funding bids from the current (2014-2020) programmes so far – with the larger projects the precise split between Suffolk and the rest of the New Anglia area.

Given the importance of agriculture, tourism and energy to Suffolk’s economy, it provides a good foundation for working with Government and local communities and businesses to understand how to harness sustainable economic growth in these sectors for the future.

In terms of skills retention, we need work with Government on understanding the potential impact on the local labour market the Brexit negotiations may have. This is not simply in terms of labour supply but also the sustainability of key sectors such as care given Suffolk’s demographic trend for an ageing population.

Support to businesses

Orbis and Innovation Martlesham – are examples of sector based networks where new businesses have been supported to start and grow.

Supporting business to enhance productivity – particular focus on building the leadership skills within businesses, connecting supply chains, using our collective expertise to connect businesses. (10/2/17 LEP SEP review workshop)

Maximising Suffolk’s natural capital in supporting business but also communities’ wellbeing. The natural environment is crucial to the quality of life in Suffolk and part of the foundation for our prosperity and economy. Factors cited by companies investing in Suffolk include the area’s landscapes, nature and quality of life. The national environment underpins key sectors, such as tourism, agriculture, food and drink and supports the recruitment of skilled staff by businesses.”

Drafting questions:

Are these the right areas?

Any gaps/misunderstandings? In summary Suffolk has global ambition, world class businesses, sectors, talent and environment and clarity that to be good for local people and places, a thriving economy and supports thriving communities and vice versa. Inclusive growth is how Suffolk will deliver “an economy that works for everyone”. To achieve that, we will want to work with Government on existing strengths and areas where we need

1. Sector based deals for:

Energy; ICT and digital; Agri-tech and Ports and Logistics 2. The Right Public Sector interventions:

Capitalising on Suffolk’s collaborative ways of working to better use the levers and assets available and through more local autonomy make longer term, joined up planning and decisions rooted in an understanding of place

3. Growing, attracting and retaining the right skills:

Working with Government, across sectors and with local people to ensure everyone can fulfil their potential

4. Developing places with the right Infrastructure:

Investing in key road, rail and digital infrastructure to unlock growth and deliver housing needed – to support Suffolk’s growing and connected economy

5. Securing the means to deliver inclusive growth

Through better evidence and intelligence increase productivity and deliver inclusive growth, using innovative investment models and delivery mechanisms to unlock the right growth for Suffolk