www.seeda.co.uk

Going for Growth?

SUSTAINABLE ECONOMIC DEVELOPMENT IN THE SOUTH EAST

Rob Douglas

www.seeda.co.uk

The South East Economy

• A successful regional economy but faces strong international competition

• Excellent in knowledge economy inputs i.e. basic research, knowledge and creativity but lags in terms of translating these inputs into economic value such as household income and GVA

• Significant sub-regional disparities• Key challenges include housing, transport and skills

www.seeda.co.uk

SEEDA’s Statutory Objectives

Under the Regional Development Agencies Act 1998, each Agency has five statutory purposes, which are:

1. To further economic development and regeneration

2. To promote business efficiency, investment and competitiveness

3. To promote employment

4. To enhance development and application of skills relevant to employment

5. To contribute to sustainable development

www.seeda.co.uk

Measuring Success

• GDP/GVA per head is not the best measure of economic well being, but no alternative at national and international level

• We use multiple indicators to track performance - economic, social and environmental – total 25 objectives in the IRF and around 10 high level targets from government for SEEDA

• The Index of Multiple Deprivation (IMD 2004) is based on a broad set of indicators and forms a key consideration for policy

www.seeda.co.uk

National and International Context

• Productivity of the South East ranks 31st compared with the top performing 40 global regions – similar to the UK productivity gap with the US and Germany

• If we could match the average productivity of the 40 regions, we would add extra £40 billion to the UK economy without any significant extra pressure on physical infrastructure

• Real incomes in the South East are amongst the lowest in the UK

www.seeda.co.uk

Cost of Living Adjusted Incomes

100.0

89.4 87.3 87.1 87.1 86.682.7 81.6 80.2

76.3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

London NorthWest

WestMidlands

SouthWest

Yorkshireand theHumber

Wales NorthEast

Eastern EastMidlands

SouthEast

Inde

x, L

ondo

n =

100

Source: Barclays plc

www.seeda.co.uk

Deprivation Challenge

• 176,000 people unemployed• 271 neighbourhoods (Super Output Areas) falling in the

most deprived 20% areas in England• 370,000 claiming income support• Gross Household incomes in Milton Keynes, Isle of Wight,

Portsmouth, Southampton and Medway below national average

• 1 in 8 people lack basic literacy and numeracy skills

www.seeda.co.uk

The Way Forward

• Tackle transport, housing, skills and inclusion issues• If we could improve GVA per head of lagging areas to

match the regional average, it would add £10 billion (8%) extra to the regional economy (GDP)

• Smart Growth – accommodate change, build high value added knowledge economy